Necessity Retail REIT (RTL) 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN FINANCE TRUST, INC.
Entity Central Index Key	1,568,162
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		65,639,969

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real estate investments, at cost:
Land	$ 345,312	$ 358,278
Buildings, fixtures and improvements	1,556,185	1,540,821
Acquired intangible lease assets	319,380	319,028
Total real estate investments, at cost	2,220,877	2,218,127
Less: accumulated depreciation and amortization	(265,183)	(215,427)
Total real estate investments, net	1,955,694	2,002,700
Cash and cash equivalents	148,993	130,500
Restricted cash	7,889	7,887
Commercial mortgage loan, held for investment, net	17,150	17,135
Prepaid expenses and other assets	24,980	21,982
Deferred costs, net	1,283	0
Assets held for sale	0	56,884
Total assets	2,155,989	2,237,088
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable, net of deferred financing costs	1,022,031	1,033,582
Mortgage premiums, net	12,651	14,892
Market lease liabilities, net	16,212	18,133
Accounts payable and accrued expenses (including $1,279 and $541 due to related parties as of June 30, 2016 and December 31, 2015, respectively)	11,409	24,964
Deferred rent and other liabilities	9,005	9,569
Distributions payable	8,860	9,199
Total liabilities	1,080,168	1,110,339
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value per share, 300,000,000 shares authorized, 65,475,650 and 64,961,256 shares issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	655	650
Additional paid-in capital	1,441,724	1,429,294
Accumulated deficit	(366,558)	(303,195)
Total stockholders' equity	1,075,821	1,126,749
Total liabilities and stockholders' equity	$ 2,155,989	$ 2,237,088

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	65,475,650	64,961,256
Common stock, outstanding (in shares)	65,475,650	64,961,256
Accounts payable and accrued expenses, due to affiliates	$ 1,279	$ 541

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental income	$ 41,176	$ 40,216	$ 81,676	$ 80,431
Operating expense reimbursements	2,871	3,053	5,817	5,704
Interest income from debt investments	230	0	570	0
Total revenues	44,277	43,269	88,063	86,135
Operating expenses:
Asset management fees to related party	4,500	4,096	9,000	4,096
Property operating	3,283	3,439	6,620	6,526
Acquisition and transaction related	734	377	1,077	506
General and administrative	2,464	3,552	5,842	5,499
Depreciation and amortization	25,538	25,386	51,031	50,773
Total operating expenses	36,519	36,850	73,570	67,400
Operating income	7,758	6,419	14,493	18,735
Other (expense) income:
Interest expense	(12,328)	(8,239)	(24,959)	(16,399)
Distribution income from other real estate securities	0	169	0	338
Gain on sale of other real estate securities	0	0	0	546
Gain on sale of real estate investments	454	0	454	0
Other income	39	27	81	57
Total other expense, net	(11,835)	(8,043)	(24,424)	(15,458)
Net (loss) income	(4,077)	(1,624)	(9,931)	3,277
Other comprehensive (loss) income:
Change in unrealized income on investment securities	0	(7)	0	(184)
Comprehensive (loss) income	$ (4,077)	$ (1,631)	$ (9,931)	$ 3,093
Basic net (loss) per share (in dollars per share)	$ (0.06)	$ (0.02)	$ (0.15)	$ 0.05
Diluted net (loss) per share (in dollars per share)	$ (0.06)	$ (0.02)	$ (0.15)	$ 0.05

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance, beginning of period (in shares) at Dec. 31, 2015		64,961,256
Balance, beginning of period at Dec. 31, 2015	$ 1,126,749	$ 650	$ 1,429,294	$ (303,195)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued through distribution reinvestment plan (in shares)	522,248	522,248
Common stock issued through distribution reinvestment plan	$ 12,605	$ 5	12,600
Common stock repurchases (in shares)	(7,854)	(7,854)
Common stock repurchases	$ (190)		(190)
Share-based compensation	20		20
Distributions declared	(53,432)			(53,432)
Net loss	(9,931)			(9,931)
Balance, end of period (in shares) at Jun. 30, 2016		65,475,650
Balance, end of period at Jun. 30, 2016	$ 1,075,821	$ 655	$ 1,441,724	$ (366,558)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net (loss) income	$ (9,931)	$ 3,277
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	33,723	33,473
Amortization of in-place lease assets	17,291	17,300
Amortization (including accelerated write-off) of deferred costs	2,267	2,608
Amortization of mortgage premiums on borrowings	(2,241)	(3,734)
Discount accretion and premium amortization on investments, net	(15)	0
Amortization of market lease intangibles, net	534	833
Share-based compensation	20	14
Gain on sale of real estate investments	(454)	0
Gain on sale of other real estate securities	0	(546)
Changes in assets and liabilities:
Prepaid expenses and other assets	(4,344)	(4,120)
Accounts payable and accrued expenses	1,929	1,115
Deferred rent and other liabilities	(564)	(178)
Net cash provided by operating activities	38,215	50,042
Cash flows from investing activities:
Proceeds from sale of commercial mortgage loans	56,884	0
Investments in real estate and other assets	(34,244)	0
Proceeds from sale of real estate investments	15,471	0
Proceeds from sale of other real estate securities	0	9,253
Net cash provided by investing activities	38,111	9,253
Cash flows from financing activities:
Payments on mortgage notes payable	(500)	(478)
Payments of deferred financing costs	0	(2,000)
Refunds of deferred financing costs	88	0
Common stock repurchases	(16,253)	(11,649)
Distributions paid	(41,166)	(24,195)
Restricted cash	(2)	0
Net cash used in financing activities	(57,833)	(38,322)
Net change in cash and cash equivalents	18,493	20,973
Cash and cash equivalents, beginning of period	130,500	74,760
Cash and cash equivalents, end of period	148,993	95,733
Supplemental Disclosures:
Cash paid for interest	23,857	17,137
Cash paid for income taxes	670	787
Non-Cash Financing Activities:
Mortgage notes payable released in connection with disposition of real estate	13,389	0
Common stock issued through distribution reinvestment plan	$ 12,605	$ 29,902

Organization

Organization	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization American Finance Trust, Inc. (the "Company"), formerly known as American Realty Capital Trust V, Inc., has acquired a diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. The Company manages and optimizes its investments in its existing portfolio of net leased commercial real estate properties (the "Net Lease Portfolio") and selectively invests in additional net lease properties. As of June 30, 2016 , the Company owned 459 properties with an aggregate purchase price of $2.2 billion , comprised of 13.3 million rentable square feet, which were 100.0% leased. In addition, the Company invests in commercial real estate mortgage loans and other commercial real estate-related debt investments (such investments collectively, "CRE Debt Investments"). The Company has financed its CRE Debt Investments primarily through mortgage financing secured by its Net Lease Portfolio, and it may use mortgage specific repurchase agreement facilities and collateralized debt obligations to finance future CRE Debt Investments. The Company, incorporated on January 22, 2013 , is a Maryland corporation that elected and qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with the taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through American Finance Operating Partnership, L.P. (the "OP"), a Delaware limited partnership, and its wholly-owned subsidiaries. On April 4, 2013, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 68.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts. The IPO closed in October 2013. Pursuant to the distribution reinvestment plan (the "DRIP"), the Company's stockholders can elect to reinvest distributions by purchasing shares of the Company's common stock at a price equal to the then-current estimated net asset value per share of the Company's common stock, approved by the Company's board of directors (" Estimated Per-Share NAV "). See Note 8 — Common Stock . The Company has no employees. The Company has retained American Finance Advisors, LLC (the "Advisor") to manage the Company's affairs on a day-to-day basis. American Finance Properties, LLC (the "Property Manager") serves as the Company's property manager. The Advisor and the Property Manager are wholly owned subsidiaries of AR Global Investments, LLC (the successor business to AR Capital, LLC, the "Sponsor"), as a result of which, they are related parties of the Company, and each have received or may receive, as applicable, compensation, fees and expense reimbursements for services related to managing the Company's business. The Company previously announced its intention to list on the New York Stock Exchange ("NYSE") under the symbol "AFIN" (the "Listing") during the third quarter of 2015. In September 2015, the Company announced that in light of market conditions, the Company's board of directors, in consultation with the Advisor, determined it was in the best interest of the Company to not pursue the Listing during the third quarter of 2015. The Company's board of directors continues to monitor market conditions and other factors with a view toward reevaluating the decision when market conditions are more favorable for a successful liquidity event. There can be no assurance that the Company's shares of common stock will be listed. On June 30, 2016, the Company announced that a special committee comprised entirely of independent directors (the "Special Committee") has initiated a strategic review process to identify, examine and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value, including potential strategic transactions involving the Company and one or more entities sponsored by affiliates of the Sponsor. The Company has engaged financial advisors, and the Special Committee has retained Pepper Hamilton LLP as its special independent legal counsel. The Special Committee and the Company's advisors have engaged in discussions with various entities’ special committees and their respective financial advisors in regards to potential strategic transactions. Although certain of these discussions have progressed, none has resulted in a definitive agreement. The Special Committee has not made a decision whether to recommend to the board of directors that the Company enter into any proposed transaction, and there can be no assurance that any of these preliminary discussions will result in a definitive agreement or that any such transactions would be approved by stockholders.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. The interim data includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results for the entire year or any subsequent interim periods. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 16, 2016 . There have been no significant changes to the Company's significant accounting policies during the six months ended June 30, 2016 , other than the updates described below. Consolidation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. Deferred Costs, Net Deferred costs, net consists of deferred leasing costs net of accumulated amortization. Deferred leasing costs, consisting primarily of lease commissions and payments made to execute new leases, are deferred and amortized over the term of the lease. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company elected to adopt this guidance effective January 1, 2016. As a result, the Company reclassified $17.7 million and $20.1 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheets as of June 30, 2016 and December 31, 2015 , respectively. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance. In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both l essees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The company is currently evaluating the impact of this new guidance.

Real Estate Investments

Real Estate Investments	6 Months Ended
	Jun. 30, 2016
Real Estate Investments, Net [Abstract]
Real Estate Investments	Real Estate Investments The Company owned 459 properties, which were acquired for investment purposes, as of June 30, 2016 . The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2016 . There were no real estate assets acquired or liabilities assumed during the six months ended June 30, 2015 : Six Months Ended (Dollar amounts in thousands) June 30, 2016 Real estate investments, at cost: Land $ 1,729 Buildings, fixtures and improvements 29,664 Total tangible assets 31,393 Acquired intangibles: In-place leases (1) 3,162 Above-market lease assets (1) 548 Above-market ground lease liability (1) (85 ) Below-market lease liabilities (1) (774 ) Total intangible assets, net 2,851 Cash paid for acquired real estate investments $ 34,244 Number of properties purchased 4 _____________________________________ (1) Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the six months ended June 30, 2016 were 9.5 years , 9.6 years , 48.6 years and 9.5 years , respectively, as of each property's respective acquisition date. Total acquired intangible lease assets and liabilities consist of the following as of the dates presented: June 30, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 305,651 $ 84,011 $ 221,640 $ 305,245 $ 68,278 $ 236,967 Above-market lease assets 13,729 6,711 7,018 13,783 5,555 8,228 Total acquired intangible lease assets $ 319,380 $ 90,722 $ 228,658 $ 319,028 $ 73,833 $ 245,195 Intangible liabilities: Above-market ground lease liability $ 85 $ 1 $ 84 $ — $ — $ — Below-market lease liabilities 19,241 3,113 16,128 20,623 2,490 18,133 Total acquired intangible lease liabilities $ 19,326 $ 3,114 $ 16,212 $ 20,623 $ 2,490 $ 18,133 The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 In-place leases $ 8,613 $ 8,650 $ 17,291 $ 17,300 Total added to depreciation and amortization $ 8,613 $ 8,650 $ 17,291 $ 17,300 Above-market leases $ (740 ) $ (752 ) $ (1,496 ) $ (1,503 ) Below-market lease liabilities 620 335 961 670 Total deducted from rental income $ (120 ) $ (417 ) $ (535 ) $ (833 ) Above-market ground lease liability $ (1 ) $ — $ (1 ) $ — Total deducted from property operating expense $ (1 ) $ — $ (1 ) $ — The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years: (In thousands) July 1, 2016 to December 31, 2016 2017 2018 2019 2020 In-place leases $ 17,106 $ 34,212 $ 24,207 $ 24,187 $ 22,569 Total to be added to depreciation and amortization $ 17,106 $ 34,212 $ 24,207 $ 24,187 $ 22,569 Above-market leases $ (1,453 ) $ (2,906 ) $ (526 ) $ (526 ) $ (526 ) Below-market lease liabilities 1,504 3,009 974 974 974 Total to be added to rental income $ 51 $ 103 $ 448 $ 448 $ 448 Above-market ground lease liability $ (1 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) Total to be deducted from property operating expense $ (1 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) The following table presents unaudited pro forma information as if the acquisitions during the six months ended June 30, 2016 had been consummated on January 1, 2015 : Six Months Ended June 30, (In thousands, except per share data) 2016 (1) 2015 Pro forma revenues $ 88,427 $ 87,465 Pro forma net (loss) income $ (9,803 ) $ 3,886 Basic pro forma net (loss) income per share $ (0.15 ) $ 0.06 Diluted pro forma net (loss) income per share $ (0.15 ) $ 0.06 _____________________ (1) For the six months ended June 30, 2016 , aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $1.0 million and $0.5 million , respectively. The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items: (In thousands) Future Minimum Base Rent Payments July 1, 2016 to December 31, 2016 $ 79,234 2017 160,078 2018 153,784 2019 155,875 2020 150,703 Thereafter 912,235 $ 1,611,909 The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated: June 30, Tenant 2016 2015 SunTrust Bank 17.8% 17.9% Sanofi US 11.4% 11.6% C&S Wholesale Grocer 10.2% 10.4% The termination, delinquency or non-renewal of leases by one or more of the above tenants may have a material adverse effect on revenues. No other tenant represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015 . The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of the dates indicated: June 30, State 2016 2015 New Jersey 20.0% 20.3% Georgia 11.0% 11.2% The Company did not own properties in any other state that in total represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015 . Real Estate Sales On May 12, 2016 the Company entered into a purchase and sale agreement with SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc. ("SunTrust"), for, and simultaneously closed on, the sale of eight single-tenant net lease properties operated by SunTrust for an aggregate contract price of $28.9 million , exclusive of closing costs. The sale of the eight properties resulted in a gain of $0.5 million , which is reflected within gain on sale of real estate investments on the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016 . The Company did not sell any properties during the three and six months ended June 30, 2015 . The disposal of the properties referenced above did not represent a strategic shift that had a major effect on the Company's operations and financial results. Accordingly, the operating results of the properties sold remain classified within continuing operations for all periods presented until the date of disposal. Leasing Activity On May 12, 2016, the Company amended 160 of its leases for single-tenant net lease properties operated by SunTrust, which in general extended the remaining lease terms of theses leases with no modification to the contractual rent increases as set forth in these leases.

Commercial Mortgage Loans

Commercial Mortgage Loans	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Commercial Mortgage Loans	Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loan portfolio: June 30, 2016 December 31, 2015 Loan Type Property Type Par Value Percentage Par Value Percentage (In thousands) Senior Student Housing — Multifamily $ 17,200 100.0 % $ 17,200 21.6 % Senior Retail — (1) — % 18,150 (1) 22.7 % Senior Hospitality — (1) — % 44,500 (1) 55.7 % $ 17,200 100.0 % $ 79,850 100.0 % _____________________________________ (1) These loans were classified as held for sale as of December 31, 2015 and were sold during the six months ended June 30, 2016 for $56.9 million . Credit Characteristics As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows: Investment Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. All commercial mortgage loans are assigned an initial risk rating of 2. As of June 30, 2016 , the risk rating of the Company's commercial loan held for investment was 3. As of June 30, 2016 , the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. No allowance for loan losses has been recorded as of June 30, 2016 or December 31, 2015 . There were no commercial mortgage loans held for investment during the six months ended June 30, 2015 . For the six months ended June 30, 2016 , the activity on the Company's commercial mortgage loan, held for investment, was as follows: (In thousands) Six Months Ended June 30, 2016 Beginning balance $ 17,135 Discount accretion and premium amortization (1) 15 Ending balance $ 17,150 _____________________________________ (1) Includes amortization of capitalized origination fees and expenses.

Other Real Estate Securities

Other Real Estate Securities	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Other Real Estate Securities	Other Real Estate Securities The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the six months ended June 30, 2015 . As of June 30, 2016 and December 31, 2015 , the Company had no investments in other real estate securities; as such, there were no other real estate securities sold during the six months ended June 30, 2016 : (In thousands) Aggregate Cost Basis Sale Price Realized Gain Six Months Ended June 30, 2015 $ 8,707 $ 9,253 $ 546

Mortgage Notes Payable

Mortgage Notes Payable	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Mortgage Notes Payable	Mortgage Notes Payable The Company's mortgage notes payable as of June 30, 2016 and December 31, 2015 consisted of the following: Outstanding Loan Amount as of Effective Interest Rate as of Portfolio Encumbered Properties June 30, December 31, June 30, December 31, Interest Rate Maturity Anticipated Repayment (In thousands) (In thousands) SAAB Sensis I 1 $ 8,018 $ 8,190 6.01 % 6.01 % Fixed Apr. 2025 Apr. 2025 SunTrust Bank II 30 25,000 25,000 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 C&S Wholesale Grocer I 4 82,313 82,313 5.56 % 5.56 % Fixed Apr. 2037 Apr. 2017 SunTrust Bank III 116 90,045 99,677 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 SunTrust Bank IV 27 21,243 25,000 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 Sanofi US I 1 125,000 125,000 5.16 % 5.16 % Fixed Jul. 2026 Jan. 2021 Stop & Shop I 4 38,608 38,936 5.63 % 5.63 % Fixed Jun. 2041 Jun. 2021 Multi-Tenant Mortgage Loan 268 649,532 649,532 4.36 % 4.36 % Fixed Sep. 2020 Sep. 2020 Gross mortgage notes payable 451 1,039,759 1,053,648 4.76 % (1) 4.77 % (1) Deferred financing costs, net of accumulated amortization (17,728 ) (20,066 ) Mortgage notes payable, net of deferred financing costs $ 1,022,031 $ 1,033,582 _____________________________________ (1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated. As of June 30, 2016 and December 31, 2015 , the Company had pledged $2.0 billion in real estate investments as collateral for its mortgage notes payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage notes payable on the properties. During August 2015 , certain subsidiaries of the Company entered into a $655.0 million mortgage loan agreement ("Multi-Tenant Mortgage Loan") with Barclays Bank PLC, Column Financial Inc. and UBS Real Estate Securities Inc. (together, the "Lenders"). The Multi-Tenant Mortgage Loan has a stated maturity of September 6, 2020 and a stated annual interest rate of 4.30% . As of June 30, 2016 , the Multi-Tenant Mortgage Loan was secured by mortgage interests in 268 of the Company's properties. As of June 30, 2016 , the outstanding balance under the Multi-Tenant Mortgage Loan was $649.5 million . At the closing of the Multi-Tenant Mortgage Loan, the Lenders placed $42.5 million of the proceeds from the Multi-Tenant Mortgage Loan in escrow, to be released to the Company upon certain conditions, including the receipt of ground lease estoppels, performance of certain repairs and receipt of environmental insurance. As of June 30, 2016 , the Lenders had released $34.6 million of the amount originally placed in escrow to the Company. As of June 30, 2016 , $7.9 million of the proceeds from the Multi-Tenant Mortgage Loan remained in escrow and is included in restricted cash on the unaudited consolidated balance sheet as of June 30, 2016 . The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to June 30, 2016 and thereafter: (In thousands) Future Principal Payments July 1, 2016 to December 31, 2016 $ 514 2017 1,080 2018 1,143 2019 1,211 2020 650,808 Thereafter 385,003 $ 1,039,759 The Company's mortgage notes payable agreements require the compliance of certain property-level financial covenants including debt service coverage ratios. As of June 30, 2016 , the Company was in compliance with financial covenants under its mortgage notes payable agreements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred sources of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 — Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. The Company had commercial mortgage loans held for sale, which were carried at fair value on the consolidated balance sheet as of December 31, 2015 . Commercial mortgage loans held for sale were valued using the sale price from the term sheet, which is an observable input. As a result, the Company's commercial mortgage loans held for sale were classified in Level 2 of the fair value hierarchy. There were no commercial mortgage loans held for sale as of June 30, 2016 . The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 , aggregated by the level in the fair value hierarchy within which those instruments fall. There were no financial instruments measured at fair value on a recurring basis as of June 30, 2016 . Additionally, there were no financial instruments measured at fair value on a non recurring basis as of June 30, 2016 or December 31, 2015 : (In thousands) Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total December 31, 2015 Commercial mortgage-backed securities $ — $ 56,884 $ — $ 56,884 A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets and liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2016 and 2015 . There were no transfers into or out of Level 3 of the fair value hierarchy during the six months ended June 30, 2016 and 2015 . The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable and accrued expenses and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets as of June 30, 2016 and December 31, 2015 are reported in the following table: Carrying Amount at Fair Value at Carrying Amount at Fair Value at (In thousands) Level June 30, 2016 June 30, 2016 December 31, 2015 December 31, 2015 Commercial mortgage loan, held for investment 3 $ 17,150 $ 16,527 $ 17,135 $ 17,200 Gross mortgage notes payable and mortgage premiums, net 3 $ 1,052,410 $ 1,095,341 $ 1,068,540 $ 1,103,352 The fair value of the commercial mortgage loan is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The fair value of gross mortgage notes payable is based on combinations of independent third party estimates and management's estimates of market interest rates.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock	Common Stock As of June 30, 2016 and December 31, 2015 , the Company had 65.5 million and 65.0 million shares of common stock outstanding, respectively, including unvested restricted shares and shares issued pursuant to the DRIP. In April 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00452054795 per day, which is equivalent to $1.65 per annum, per share of common stock. In March 2016, the Company’s board of directors ratified the existing distribution amount equivalent to $1.65 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to $0.00450819672 per day per share of common stock, effective January 1, 2016, to reflect that 2016 is a leap year. Distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distributions payments are not assured. Share Repurchase Program The Company's board of directors has adopted the share repurchase program (as amended and restated, the "SRP"), which permits investors to sell their shares back to the Company after they have held them for at least one year, subject to certain conditions and limitations. The Company may repurchase shares on a semiannual basis, at each six-month period ending June 30 and December 31. Under the SRP, the repurchase price per share for requests other than for death or disability are as follows: • after one year from the purchase date — 92.5% of Estimated Per-Share NAV; • after two years from the purchase date — 95.0% of Estimated Per-Share NAV; • after three years from the purchase date — 97.5% of Estimated Per-Share NAV; and • after four years from the purchase date — 100.0% of Estimated Per-Share NAV. In the case of requests for death or disability, the repurchase price per share will be equal to Estimated Per-Share NAV at the time of repurchase. Under the SRP, repurchases at each semiannual period are limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Repurchases pursuant to the SRP for any given semiannual period are funded from proceeds received during that same semiannual period through the issuance of common stock pursuant to the DRIP, as well as any reservation of funds the board of directors may, in its sole discretion, make available for this purpose. If the establishment of an Estimated Per-Share NAV occurs during any semiannual period, any repurchase requests received during such semiannual period are paid at a price based on Estimated Per-Share NAV applicable on the last day of the semiannual period, as described above. On June 28, 2016, in consideration of the strategic review process, the board of directors of the Company determined to amend the SRP to provide for one twelve-month repurchase period for calendar year 2016 instead of two semi-annual periods ending June 30 and December 31. The annual limit on repurchases under the SRP remains unchanged and continues to be limited to a maximum of 5.0% of the weighted average number of shares of common stock of the Company outstanding during its prior fiscal year and is subject to the terms and limitations set forth in the SRP. Following calendar year 2016, the repurchase periods will return to two semi-annual periods and applicable limitations set forth in the SRP. The Company's board of directors reserves the right, in its sole discretion, at any time and from time to time, to reject any request for repurchase, change the purchase price for repurchases or otherwise amend the terms of, suspend or terminate the SRP pursuant to any applicable notice requirements under the SRP. Due to these limitations, the Company cannot guarantee that it will be able to accommodate all repurchase requests. When a stockholder requests repurchases and the repurchases are approved, the Company reclassifies such an obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased have the status of authorized but unissued shares. The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2016 : Number of Shares Weighted-Average Price per Share Cumulative repurchases as of December 31, 2015 2,073,645 $ 24.12 Six months ended June 30, 2016 7,854 24.17 Cumulative repurchases as of June 30, 2016 2,081,499 $ 24.12 During the six months ended June 30, 2016 , 5.0 million shares have been requested for repurchase and are not yet fulfilled. These shares, and all additional shares requested prior to December 31, 2016 will be considered for repurchase, to the extent the requests are not withdrawn by December 31, 2016. All requested shares will be subject to the annual limitations set forth in the SRP. Distribution Reinvestment Plan Pursuant to the DRIP, stockholders can elect to reinvest distributions by purchasing shares of common stock. Until November 14, 2014 , the Company offered shares pursuant to the DRIP at $23.75 , which was 95.0% of the initial offering price of shares of common stock in the IPO. Effective November 14, 2014 , the Company began offering shares pursuant to the DRIP at the then-current Estimated Per-Share NAV . The DRIP was suspended following the payment of the Company's June 2015 distribution on July 1, 2015. On April 1, 2016, the Company reinstated the DRIP and registered an additional 7.7 million shares of common stock, offered at the then-current Estimated Per-Share NAV , for use under the DRIP pursuant to a registration statement on Form S-3 (File No. 333-210532). No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Shares issued pursuant to the DRIP are recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions are declared. During the six months ended June 30, 2016 , 0.5 million shares of common stock were issued pursuant to the DRIP.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Future Minimum Ground Lease Payments The Company entered into ground lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter: (In thousands) Future Minimum Base Rent Payments July 1, 2016 to December 31, 2016 $ 458 2017 921 2018 903 2019 902 2020 674 Thereafter 4,975 $ 8,833 Unfunded Commitments Under Commercial Mortgage Loans As of June 30, 2016 , the Company had unfunded commitments which will generally be funded to finance capital expenditures by the borrowers under the Company's commercial mortgage loan. The following table reflects the expiration of these commitments over the next five years and thereafter: (In thousands) Funding Expiration July 1, 2016 to December 31, 2016 $ — 2017 2,450 2018 — 2019 — 2020 — Thereafter — $ 2,450 Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company maintains environmental insurance for its properties that provides coverage for potential environmental liabilities, subject to the policy's coverage conditions and limitations. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on its financial position or results of operations.

Related Party Transactions and

Related Party Transactions and Arrangements	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Related Party Transactions and Arrangements As of June 30, 2016 and December 31, 2015 , American Finance Special Limited Partner, LLC (the "Special Limited Partner"), an entity controlled by the Sponsor, owned 8,888 shares of the Company's outstanding common stock and 90 units of limited partner interests in the OP ("OP Units"). After holding the OP Units for a period of one year, or upon liquidation of the OP or sale of substantially all of the assets of the OP, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, in accordance with the limited partnership agreement of the OP. The remaining rights of the limited partner interests are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. Realty Capital Securities, LLC (the " Former Dealer Manager ") served as the dealer manager of the IPO. American National Stock Transfer, LLC ("ANST"), a subsidiary of the parent company of the Former Dealer Manager, provided other general professional services through January 2016. RCS Capital Corporation ("RCAP"), the parent company of the Former Dealer Manager and certain of its affiliates that provided services to the Company, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was under common control with the Sponsor. In May 2016, RCAP and its affiliated debtors emerged from bankruptcy under the new name, Aretec Group, Inc. Fees and Participations Incurred in Connection With the Operations of the Company On April 29, 2015 , the independent directors of the board of directors unanimously approved certain amendments to the Amended and Restated Advisory Agreement, as amended (the "Original A&R Advisory Agreement"), by and among the Company, the OP and the Advisor (the "Second A&R Advisory Agreement"). The Second A&R Advisory Agreement, which superseded the Original A&R Advisory Agreement, took effect on July 20, 2015 , the date on which the Company filed certain changes to the Company's Articles of Amendment and Restatement, which were approved by the Company's stockholders on June 23, 2015 . The initial term of the Second A&R Advisory Agreement is 20 years beginning on April 29, 2015 , and is automatically renewable for another 20 -year term upon each 20 -year anniversary unless terminated by the board of directors for cause. Prior to January 16, 2016 , the Advisor was paid an acquisition fee equal to 1.0% of the contract purchase price of each acquired property and 1.0% of the amount advanced for a loan or other investment. The Advisor also has been and may continue to be reimbursed for costs it incurs in providing investment-related services, or "insourced expenses." These insourced expenses may not exceed, 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company has paid and may continue to pay third party acquisition expenses. The aggregate amount of acquisition fees and financing coordination fees (as described below) were not to exceed 1.5% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. The Second A&R Advisory Agreement terminated the acquisition fee and financing coordination fee (both as defined in the Second A&R Advisory Agreement) effective January 16, 2016 . As of January 16, 2016 , aggregate acquisition fees and financing fees did not exceed the 1.5% threshold. Further, the total of all acquisition fees, acquisition expenses and any financing coordination fees payable was not to exceed 4.5% of the Company's total portfolio contract purchase price or 4.5% of the amount advanced for the Company's total portfolio of loans or other investments. As of January 16, 2016 , the total of all cumulative acquisition fees, acquisition expenses and financing coordination fees did not exceed the 4.5% threshold. Additionally, prior to January 16, 2016 , if the Advisor provided services in connection with the origination or refinancing of any debt that the Company obtained and used to acquire properties or to make other permitted investments, or that was assumed, directly or indirectly, in connection with the acquisition of properties, the Company paid the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations. Prior to April 15, 2015, in connection with asset management services provided by the Advisor, the Company issued to the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units were intended to be profit interests and will vest, and no longer be subject to forfeiture, at such time as: (a) the value of the OP's assets plus all distributions made equals or exceeds the total amount of capital contributed by investors plus a 6.0% cumulative, pretax, non-compounded annual return thereon (the "economic hurdle"); (b) any one of the following events occurs concurrently with or subsequently to the achievement of the economic hurdle described above: (i) a listing; (ii) a transaction to which the Company or the OP is a party, as a result of which OP Units or the Company's common stock are exchanged for, or converted into, the right, or the holders of such securities are otherwise entitled, to receive cash, securities or other property or any combination thereof; or (iii) the termination of the advisory agreement without cause; and (c) the Advisor pursuant to the advisory agreement is providing services to the Company immediately prior to the occurrence of an event of the type described in clause (b) above, unless the failure to provide such services is attributable to the termination without cause of the advisory agreement by an affirmative vote of a majority of the Company's independent directors after the economic hurdle described above has been met. Unvested Class B Units will be forfeited immediately if: (x) the advisory agreement is terminated for any reason other than a termination without cause; or (y) the advisory agreement is terminated without cause by an affirmative vote of a majority of the board of directors before the economic hurdle described above has been met. The Class B Units were issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter was equal to the cost of the Company's assets multiplied by 0.1875% , divided by the value of one share of common stock as of the last day of such calendar quarter, which was initially equal to $22.50 (the initial offering price in the IPO minus selling commissions and dealer manager fees) and, as of the Initial NAV Pricing Date, to Estimated Per-Share NAV . On April 15, 2015 , the Company's board of directors approved an amendment (the "Amendment") to the Original A&R Advisory Agreement, which, among other things, provided that, effective as of April 15, 2015 until July 20, 2015 : (i) for any period commencing on or after April 1, 2015, the Company paid the Advisor or its assignees as compensation for services rendered in connection with the management of the Company’s assets an Asset Management Fee (as defined in the Original A&R Advisory Agreement) equal to 0.75% per annum of the Cost of Assets (as defined in the Original A&R Advisory Agreement); (ii) such Asset Management Fee was payable monthly in arrears in cash, in shares of common stock, or a combination of both, the form of payment determined in the sole discretion of the Advisor; and (iii) the Company would not cause the OP to issue any Class B Units in respect of periods subsequent to March 31, 2015. As of June 30, 2016 , in aggregate, the Company's board of directors had approved the issuance of 1,052,420 Class B Units to the Advisor in connection with the arrangement described above. As of June 30, 2016 , the Company could not determine the probability of achieving the performance condition, as such, no expense was recognized in connection with this arrangement during the three and six months ended June 30, 2016 and 2015 . The Advisor receives distributions on unvested Class B Units equal to the distribution amount received on the same number of shares of the Company's common stock. Such distributions on issued Class B Units are included in general and administrative expenses in the consolidated statements of operations and comprehensive (loss) income. As stated above, pursuant to the Amendment, the OP will not issue any further Class B Units. The changes made pursuant to the Amendment were incorporated into the Agreement of Limited Partnership of the OP (the "OP Agreement") through a Third Amendment to the OP Agreement, which was approved by the board of directors and entered into on April 29, 2015 . Effective July 20, 2015 , the Second A&R Advisory Agreement requires the Company to pay the Advisor a base management fee. Effective October 1, 2015, the fixed portion of the base management fee, which is equal to $1.5 million per month, is payable on the first business day of each month, while the variable portion of the base management fee, which is equal to 0.375% of the cumulative net proceeds of any equity raised subsequent to the potential Listing, is payable quarterly in arrears. Base management fees are included in asset management fees to related party on the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016 . No base management fees were incurred during the three and six months ended June 30, 2015 . In addition, the Second A&R Advisory Agreement requires the Company to pay the Advisor a variable management fee equal to (x) 15.0% of the applicable quarter's Core Earnings (as defined below) per share in excess of $0.375 per share plus (y) 10.0% of the applicable quarter's Core Earnings per share in excess of $0.50 per share, in each case as adjusted for changes in the number of shares of common stock outstanding. Core Earnings are defined as, for the applicable period, GAAP net income or loss excluding non-cash equity compensation expense, the variable management fee, acquisition and transaction related fees and expenses, financing related fees and expenses, depreciation and amortization, realized gains and losses on the sale of assets, any unrealized gains, losses or other non-cash items recorded in net loss for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income, one-time events pursuant to changes in GAAP and certain non-cash charges, impairment losses on real estate related investments and other than temporary impairment of securities, amortization of deferred financing costs, amortization of tenant inducements, amortization of straight-line rent, amortization of market lease intangibles, provision for loss loans, and other non-recurring revenue and expenses. The Company did not incur a variable management fee during the three and six months ended June 30, 2016 and 2015 . The Company reimburses the Advisor's costs of providing administrative services, but may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expenses or real estate commissions. During the three and six months ended June 30, 2016 , the Company incurred $0.6 million and $1.4 million of reimbursement expenses from the Advisor for providing administrative services, which is included in general and administrative expense on the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016 . No reimbursement expenses were incurred from the Advisor for providing administrative services during the three and six months ended June 30, 2015 . In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive certain fees. Because the Advisor may forgive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that are forgiven are not deferrals and, accordingly, will not be paid to the Advisor. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs or property operating costs. No such fees were forgiven or costs were absorbed by the Advisor during the three and six months ended June 30, 2016 and 2015 . The following table details amounts incurred and payable to related parties in connection with the operations-related services described above as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, December 31, Ongoing fees: Asset management fees $ 4,500 $ 4,096 $ 9,000 $ 4,096 $ — $ — Professional fees and other reimbursements (1) 661 913 1,523 1,548 558 541 Distributions on Class B Units (1) 432 411 864 697 142 — Total related party operation fees and reimbursements $ 5,593 $ 5,420 $ 11,387 $ 6,341 $ 700 $ 541 _________________________________ (1) These costs are included in general and administrative expense on the consolidated statements of operations and comprehensive (loss) income. During the three and six months ended June 30, 2016 , the Company incurred $1.3 million of cost reimbursements from the Advisor for lease commissions relating to the execution of new SunTrust leases. The lease commissions are included in deferred costs, net on the consolidated balance sheet as of June 30, 2016 , and are amortized over the terms of the respective leases. No such costs were incurred during the three and six months ended June 30, 2015 . The predecessor to the Sponsor was party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager ("RCS Advisory"), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. The Company was also party to a transfer agency agreement with ANST, pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by DST Systems, Inc., a third-party transfer agent ("DST"). The Sponsor received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). Fees Incurred in Connection with the Liquidation or Listing of the Company's Real Estate Assets In connection with the Listing, the Company, as the general partner of the OP, would cause the OP to issue a note (the "Listing Note") to the Special Limited Partner to evidence the OP's obligation to distribute to the Special Limited Partner an aggregate amount (the "Listing Amount") equal to 15.0% of the difference (to the extent the result is a positive number) between: • the sum of (i) the "market value" (as defined in the Listing Note) of the Company's common stock plus (ii) the sum of all distributions or dividends (from any source) paid by the Company to its stockholders prior to the Listing; and • the sum of (i) the total raised in the Company's initial public offering ("IPO") and under the Company's distribution reinvestment plan ("DRIP") prior to the Listing ("Gross Proceeds") plus (ii) the total amount of cash that, if distributed to those stockholders who purchased shares of common stock in the IPO and under the DRIP, would have provided those stockholders a 6.0% cumulative, non-compounded, pre-tax annual return (based on a 365-day year) on the gross proceeds. The "market value" used to calculate the Listing Amount will not be determinable until the end of a measurement period, the period of 30 consecutive trading days, commencing on the 180th day following the Listing, unless another liquidity event, such as a merger, occurs prior to the end of the measurement period. If another liquidity event occurs prior to the end of the measurement period, the Listing Note provides for appropriate adjustment to the calculation of the Listing Amount. The Special Limited Partner will have the right to receive distributions of "Net Sales Proceeds," as defined in the Listing Note, until the Listing Note is paid in full; provided that, the Special Limited Partner has the right, but not the obligation, to convert the entire Special Limited Partner interest into OP Units. OP Units are convertible into shares of the Company's common stock in accordance with the terms governing conversion of OP Units into shares of common stock and contained in the Second Amended and Restated Agreement of Limited Partnership of the OP by the Company, as general partner of its OP, with the limited partners party thereto (the "Second A&R OP Agreement"), which will be entered into at Listing. On April 29, 2015 , the board of directors authorized the execution, in conjunction with the potential Listing, the Second A&R OP Agreement to conform more closely with agreements of limited partnership of other operating partnerships controlled by real estate investment trusts whose securities are publicly traded and listed, and to add long term incentive plan units ("LTIP Units") as a new class of units of limited partnership in the OP to the existing common units ("OP Units"). The Company may at any time cause the OP to issue LTIP Units pursuant to an outperformance agreement. On April 29, 2015 , the board of directors approved the general terms of a Multi-Year Outperformance Agreement to be entered into with the Company, the OP and the Advisor in connection with the Listing. The Company will pay the Advisor a brokerage commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and one-half of the total brokerage commission paid, if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission, in each case, payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. During the three and six months ended June 30, 2016 , the Company incurred $0.6 million of real estate commissions from the Advisor for its services in connection with the sale of real estate investments. The impact of the real estate commissions is included in gain on sale of real estate investments on the consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2016 , and $0.6 million is included in accounts payable and accrued expenses on the consolidated balance sheet as of June 30, 2016 . No such commissions were incurred during the three and six months ended June 30, 2015 .

Economic Dependency

Economic Dependency	6 Months Ended
	Jun. 30, 2016
Economic Dependency [Abstract]
Economic Dependency	Economic Dependency Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting and legal services, human resources and information technology. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation Restricted Share Plan The Company had an employee and director incentive restricted share plan (the "Original RSP"), which provided for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company's board of directors or the stockholders, on the date of initial election to the board of directors and on the date of each annual stockholders' meeting. Restricted stock issued to independent directors vests over a five -year period following the date of grant in increments of 20.0% per annum. The Original RSP provided the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to other entities that provide services to the Company. The total number of shares of common stock granted under the Original RSP could not exceed 5.0% of the Company's shares of common stock on a fully diluted basis at any time, and in any event could not exceed 3.4 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events). Restricted share awards entitle the recipient to receive shares of common stock from the Company under terms that provide for vesting over a specified period of time. For restricted share awards granted prior to 2015, such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted share awards granted during or after 2015 provide for accelerated vesting of the portion of the unvested shares scheduled to vest in the year of the recipient's voluntary termination or the failure to be re-elected to the board. The Company accounts for forfeitures when they occur. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in shares of common stock shall be subject to the same restrictions as the underlying restricted shares. In April 2015 , the board of directors adopted an Amended and Restated RSP (the "A&R RSP") that replaces in its entirety the Original RSP. The A&R RSP amends the terms of the Original RSP as follows: • it increases the number of shares of Company capital stock, par value $0.01 per share (the "Capital Stock"), available for awards thereunder from 5.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time, not exceed 3.4 million shares of Capital Stock, to 10.0% of the Company's outstanding shares of Capital Stock on a fully diluted basis at any time; • it removes the fixed amount of shares that were automatically granted to the Company's independent directors; and • it adds restricted stock units (including dividend equivalent rights thereon) as a permitted form of award. The following table reflects restricted share award activity for the six months ended June 30, 2016 : Number of Shares of Common Stock Weighted-Average Issue Price Unvested, December 31, 2015 7,455 $ 23.34 Vested (1,563 ) 22.50 Unvested, June 30, 2016 5,892 $ 23.56 As of June 30, 2016 , the Company had $0.1 million of unrecognized compensation cost related to unvested restricted share awards granted. That cost is expected to be recognized over a weighted-average period of 2.7 years . The fair value of the restricted shares is being expensed in accordance with the service period required. Compensation expense related to restricted stock was approximately $11,000 and $7,000 for the three months ended June 30, 2016 and 2015 , respectively. Compensation expense related to restricted stock was approximately $21,000 and $14,000 for the six months ended June 30, 2016 and 2015 , respectively. Compensation expense related to restricted stock is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive (loss) income. Other Share-Based Compensation The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. There were no shares of common stock issued to directors in lieu of cash compensation during the three and six months ended June 30, 2016 and 2015 .

Net (Loss) Income Per Share

Net (Loss) Income Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net (Loss) Income Per Share	Net (Loss) Income Per Share The following table sets forth the basic and diluted net (loss) income per share computations for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share amounts) 2016 2015 2016 2015 Computation of Basic Net (Loss) Income Per Share: Basic net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,277 Basic weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,859,933 Basic net (loss) income per share $ (0.06 ) $ (0.02 ) $ (0.15 ) $ 0.05 Computation of Diluted Net (Loss) Income Per Share: Basic net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,277 Adjustments to net (loss) income for common share equivalents — — — (108 ) Diluted net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,169 Basic weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,859,933 Shares of unvested restricted stock (1) — — — 5,293 OP Units — — — 90 Diluted weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,865,316 Diluted net (loss) income per share $ (0.06 ) $ (0.02 ) $ (0.15 ) $ 0.05 _____________________________________ (1) Weighted-average number of shares of unvested restricted stock outstanding for the period presented. There were 5,892 and 5,008 shares of unvested restricted stock outstanding as of June 30, 2016 and 2015 , respectively. Diluted net (loss) income per share assumes the conversion of certain common share equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock, OP Units and Class B Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented: Three Months Ended June 30, Six Months Ended 2016 2015 June 30, 2016 Unvested restricted stock 6,716 5,485 7,086 OP Units 90 90 90 Class B Units 1,052,420 998,786 1,052,420 Total weighted-average antidilutive common share equivalents 1,059,226 1,004,361 1,059,596

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q , and determined that there have not been any events that have occurred that would require adjustments to, or disclosures in, the consolidated financial statements.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Consolidation	Consolidation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
Deferred Costs, Net	Deferred Costs, Net Deferred costs, net consists of deferred leasing costs net of accumulated amortization. Deferred leasing costs, consisting primarily of lease commissions and payments made to execute new leases, are deferred and amortized over the term of the lease.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. The Company has not yet selected a transition method and is currently evaluating the impact of the new guidance. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company elected to adopt this guidance effective January 1, 2016. As a result, the Company reclassified $17.7 million and $20.1 million of deferred issuance costs related to the Company's mortgage notes payable from deferred costs, net to mortgage notes payable in the Company's consolidated balance sheets as of June 30, 2016 and December 31, 2015 , respectively. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity's accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of the new guidance. In February 2016, the FASB issued an update which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both l essees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The company is currently evaluating the impact of this new guidance.

Real Estate Investments (Tables

Real Estate Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate Investments, Net [Abstract]
Purchase Price of Acquired Properties	The following table presents the allocation of real estate assets acquired and liabilities assumed during the six months ended June 30, 2016 . There were no real estate assets acquired or liabilities assumed during the six months ended June 30, 2015 : Six Months Ended (Dollar amounts in thousands) June 30, 2016 Real estate investments, at cost: Land $ 1,729 Buildings, fixtures and improvements 29,664 Total tangible assets 31,393 Acquired intangibles: In-place leases (1) 3,162 Above-market lease assets (1) 548 Above-market ground lease liability (1) (85 ) Below-market lease liabilities (1) (774 ) Total intangible assets, net 2,851 Cash paid for acquired real estate investments $ 34,244 Number of properties purchased 4 _____________________________________ (1) Weighted-average remaining amortization periods for in-place leases, above-market lease assets, above-market ground lease liability and below-market lease liabilities acquired during the six months ended June 30, 2016 were 9.5 years , 9.6 years , 48.6 years and 9.5 years , respectively, as of each property's respective acquisition date.
Schedule of Intangible Assets and Goodwill	Total acquired intangible lease assets and liabilities consist of the following as of the dates presented: June 30, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 305,651 $ 84,011 $ 221,640 $ 305,245 $ 68,278 $ 236,967 Above-market lease assets 13,729 6,711 7,018 13,783 5,555 8,228 Total acquired intangible lease assets $ 319,380 $ 90,722 $ 228,658 $ 319,028 $ 73,833 $ 245,195 Intangible liabilities: Above-market ground lease liability $ 85 $ 1 $ 84 $ — $ — $ — Below-market lease liabilities 19,241 3,113 16,128 20,623 2,490 18,133 Total acquired intangible lease liabilities $ 19,326 $ 3,114 $ 16,212 $ 20,623 $ 2,490 $ 18,133
Finite-lived Intangible Assets Amortization Expense	The following table presents amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 In-place leases $ 8,613 $ 8,650 $ 17,291 $ 17,300 Total added to depreciation and amortization $ 8,613 $ 8,650 $ 17,291 $ 17,300 Above-market leases $ (740 ) $ (752 ) $ (1,496 ) $ (1,503 ) Below-market lease liabilities 620 335 961 670 Total deducted from rental income $ (120 ) $ (417 ) $ (535 ) $ (833 ) Above-market ground lease liability $ (1 ) $ — $ (1 ) $ — Total deducted from property operating expense $ (1 ) $ — $ (1 ) $ — The following table provides the projected amortization expense and adjustments to revenue and property operating expense for intangible assets and liabilities for the next five years: (In thousands) July 1, 2016 to December 31, 2016 2017 2018 2019 2020 In-place leases $ 17,106 $ 34,212 $ 24,207 $ 24,187 $ 22,569 Total to be added to depreciation and amortization $ 17,106 $ 34,212 $ 24,207 $ 24,187 $ 22,569 Above-market leases $ (1,453 ) $ (2,906 ) $ (526 ) $ (526 ) $ (526 ) Below-market lease liabilities 1,504 3,009 974 974 974 Total to be added to rental income $ 51 $ 103 $ 448 $ 448 $ 448 Above-market ground lease liability $ (1 ) $ (2 ) $ (2 ) $ (2 ) $ (2 ) Total to be deducted from property operating expense $ (1 ) $ (2 ) $ (2 ) $ (2 ) $ (2 )
Business Acquisition, Pro Forma Information	The following table presents unaudited pro forma information as if the acquisitions during the six months ended June 30, 2016 had been consummated on January 1, 2015 : Six Months Ended June 30, (In thousands, except per share data) 2016 (1) 2015 Pro forma revenues $ 88,427 $ 87,465 Pro forma net (loss) income $ (9,803 ) $ 3,886 Basic pro forma net (loss) income per share $ (0.15 ) $ 0.06 Diluted pro forma net (loss) income per share $ (0.15 ) $ 0.06 _____________________ (1) For the six months ended June 30, 2016 , aggregate revenues and net income derived from the Company's 2016 acquisitions (for the Company's period of ownership) were $1.0 million and $0.5 million , respectively.
Schedule of Future Minimum Rental Payments for Operating Leases	The following table presents future minimum base rent payments on a cash basis due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items: (In thousands) Future Minimum Base Rent Payments July 1, 2016 to December 31, 2016 $ 79,234 2017 160,078 2018 153,784 2019 155,875 2020 150,703 Thereafter 912,235 $ 1,611,909
Schedule of Annualized Rental Income by Major Tenants	The following table lists the tenants (including, for this purpose, all affiliates of such tenants) from which the Company derives annualized rental income on a straight-line basis constituting 10.0% or more of the Company's consolidated annualized rental income on a straight-line basis for all portfolio properties as of the dates indicated: June 30, Tenant 2016 2015 SunTrust Bank 17.8% 17.9% Sanofi US 11.4% 11.6% C&S Wholesale Grocer 10.2% 10.4%
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The following table lists the states where the Company has concentrations of properties where annualized rental income on a straight-line basis represented 10.0% or greater of consolidated annualized rental income on a straight-line basis as of the dates indicated: June 30, State 2016 2015 New Jersey 20.0% 20.3% Georgia 11.0% 11.2%

Commercial Mortgage Loans (Tabl

Commercial Mortgage Loans (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Composition and Summary of Loan Portfolio	The following table is a summary of the Company's commercial mortgage loan portfolio: June 30, 2016 December 31, 2015 Loan Type Property Type Par Value Percentage Par Value Percentage (In thousands) Senior Student Housing — Multifamily $ 17,200 100.0 % $ 17,200 21.6 % Senior Retail — (1) — % 18,150 (1) 22.7 % Senior Hospitality — (1) — % 44,500 (1) 55.7 % $ 17,200 100.0 % $ 79,850 100.0 % _____________________________________ (1) These loans were classified as held for sale as of December 31, 2015 and were sold during the six months ended June 30, 2016 for $56.9 million . For the six months ended June 30, 2016 , the activity on the Company's commercial mortgage loan, held for investment, was as follows: (In thousands) Six Months Ended June 30, 2016 Beginning balance $ 17,135 Discount accretion and premium amortization (1) 15 Ending balance $ 17,150 _____________________________________ (1) Includes amortization of capitalized origination fees and expenses.
Summary of Credit Characteristics	As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its performing loans. The loans are scored on a scale of 1 to 5 as follows: Investment Rating Summary Description 1 Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal.

Other Real Estate Securities (T

Other Real Estate Securities (Tables)	6 Months Ended
	Jun. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Schedule of Realized Gain (Loss)	The following table details the realized gains on sale of the Company's other real estate securities, which consisted of redeemable preferred stock, during the six months ended June 30, 2015 . As of June 30, 2016 and December 31, 2015 , the Company had no investments in other real estate securities; as such, there were no other real estate securities sold during the six months ended June 30, 2016 : (In thousands) Aggregate Cost Basis Sale Price Realized Gain Six Months Ended June 30, 2015 $ 8,707 $ 9,253 $ 546

Mortgage Notes Payable (Tables)

Mortgage Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The Company's mortgage notes payable as of June 30, 2016 and December 31, 2015 consisted of the following: Outstanding Loan Amount as of Effective Interest Rate as of Portfolio Encumbered Properties June 30, December 31, June 30, December 31, Interest Rate Maturity Anticipated Repayment (In thousands) (In thousands) SAAB Sensis I 1 $ 8,018 $ 8,190 6.01 % 6.01 % Fixed Apr. 2025 Apr. 2025 SunTrust Bank II 30 25,000 25,000 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 C&S Wholesale Grocer I 4 82,313 82,313 5.56 % 5.56 % Fixed Apr. 2037 Apr. 2017 SunTrust Bank III 116 90,045 99,677 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 SunTrust Bank IV 27 21,243 25,000 5.50 % 5.50 % Fixed Jul. 2031 Jul. 2021 Sanofi US I 1 125,000 125,000 5.16 % 5.16 % Fixed Jul. 2026 Jan. 2021 Stop & Shop I 4 38,608 38,936 5.63 % 5.63 % Fixed Jun. 2041 Jun. 2021 Multi-Tenant Mortgage Loan 268 649,532 649,532 4.36 % 4.36 % Fixed Sep. 2020 Sep. 2020 Gross mortgage notes payable 451 1,039,759 1,053,648 4.76 % (1) 4.77 % (1) Deferred financing costs, net of accumulated amortization (17,728 ) (20,066 ) Mortgage notes payable, net of deferred financing costs $ 1,022,031 $ 1,033,582 _____________________________________ (1) Calculated on a weighted-average basis for all mortgages outstanding as of the dates indicated.
Schedule of Maturities of Long-term Debt	The following table summarizes the scheduled aggregate principal payments on mortgage notes payable based on stated maturity dates for the five years subsequent to June 30, 2016 and thereafter: (In thousands) Future Principal Payments July 1, 2016 to December 31, 2016 $ 514 2017 1,080 2018 1,143 2019 1,211 2020 650,808 Thereafter 385,003 $ 1,039,759

Fair Value of Financial Instr26

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	The following table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 , aggregated by the level in the fair value hierarchy within which those instruments fall. There were no financial instruments measured at fair value on a recurring basis as of June 30, 2016 . Additionally, there were no financial instruments measured at fair value on a non recurring basis as of June 30, 2016 or December 31, 2015 : (In thousands) Quoted Prices in Active Markets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total December 31, 2015 Commercial mortgage-backed securities $ — $ 56,884 $ — $ 56,884
Fair Value, by Balance Sheet Grouping	The fair values of the Company's remaining financial instruments that are not reported at fair value on the consolidated balance sheets as of June 30, 2016 and December 31, 2015 are reported in the following table: Carrying Amount at Fair Value at Carrying Amount at Fair Value at (In thousands) Level June 30, 2016 June 30, 2016 December 31, 2015 December 31, 2015 Commercial mortgage loan, held for investment 3 $ 17,150 $ 16,527 $ 17,135 $ 17,200 Gross mortgage notes payable and mortgage premiums, net 3 $ 1,052,410 $ 1,095,341 $ 1,068,540 $ 1,103,352

Common Stock Common Stock (Tabl

Common Stock Common Stock (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Schedule of Share Repurchases	The following table summarizes the repurchases of shares under the SRP cumulatively through June 30, 2016 : Number of Shares Weighted-Average Price per Share Cumulative repurchases as of December 31, 2015 2,073,645 $ 24.12 Six months ended June 30, 2016 7,854 24.17 Cumulative repurchases as of June 30, 2016 2,081,499 $ 24.12

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments for Master Leases	The Company entered into ground lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter: (In thousands) Future Minimum Base Rent Payments July 1, 2016 to December 31, 2016 $ 458 2017 921 2018 903 2019 902 2020 674 Thereafter 4,975 $ 8,833
Unfunded Commitments Under Commercial Mortgage Loans	The following table reflects the expiration of these commitments over the next five years and thereafter: (In thousands) Funding Expiration July 1, 2016 to December 31, 2016 $ — 2017 2,450 2018 — 2019 — 2020 — Thereafter — $ 2,450

Related Party Transactions an29

Related Party Transactions and Arrangements (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services	The following table details amounts incurred and payable to related parties in connection with the operations-related services described above as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, December 31, Ongoing fees: Asset management fees $ 4,500 $ 4,096 $ 9,000 $ 4,096 $ — $ — Professional fees and other reimbursements (1) 661 913 1,523 1,548 558 541 Distributions on Class B Units (1) 432 411 864 697 142 — Total related party operation fees and reimbursements $ 5,593 $ 5,420 $ 11,387 $ 6,341 $ 700 $ 541 _________________________________ (1) These costs are included in general and administrative expense on the consolidated statements of operations and comprehensive (loss) income.

Share-Based Compensation Share-

Share-Based Compensation Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	The following table reflects restricted share award activity for the six months ended June 30, 2016 : Number of Shares of Common Stock Weighted-Average Issue Price Unvested, December 31, 2015 7,455 $ 23.34 Vested (1,563 ) 22.50 Unvested, June 30, 2016 5,892 $ 23.56

Net (Loss) Income Per Share (Ta

Net (Loss) Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the basic and diluted net (loss) income per share computations for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share amounts) 2016 2015 2016 2015 Computation of Basic Net (Loss) Income Per Share: Basic net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,277 Basic weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,859,933 Basic net (loss) income per share $ (0.06 ) $ (0.02 ) $ (0.15 ) $ 0.05 Computation of Diluted Net (Loss) Income Per Share: Basic net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,277 Adjustments to net (loss) income for common share equivalents — — — (108 ) Diluted net (loss) income $ (4,077 ) $ (1,624 ) $ (9,931 ) $ 3,169 Basic weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,859,933 Shares of unvested restricted stock (1) — — — 5,293 OP Units — — — 90 Diluted weighted-average shares outstanding 65,301,764 66,045,785 65,128,592 65,865,316 Diluted net (loss) income per share $ (0.06 ) $ (0.02 ) $ (0.15 ) $ 0.05 _____________________________________ (1) Weighted-average number of shares of unvested restricted stock outstanding for the period presented. There were 5,892 and 5,008 shares of unvested restricted stock outstanding as of June 30, 2016 and 2015 , respectively.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented: Three Months Ended June 30, Six Months Ended 2016 2015 June 30, 2016 Unvested restricted stock 6,716 5,485 7,086 OP Units 90 90 90 Class B Units 1,052,420 998,786 1,052,420 Total weighted-average antidilutive common share equivalents 1,059,226 1,004,361 1,059,596

Organization (Narrative) (Detai

Organization (Narrative) (Details) $ / shares in Units, ft² in Millions, $ in Billions	Jun. 30, 2016USD ($)ft²property$ / shares	Dec. 31, 2015$ / shares	Apr. 04, 2013$ / sharesshares
Operations [Line Items]
Number of real estate properties | property	459
Purchase price | $	$ 2.2
Area of real estate property | ft²	13.3
Percentage of property leased	100.00%
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common Stock
Operations [Line Items]
Shares available in IPO (in shares) | shares			68,000,000
Share Price (in dollars per share)			$ 25

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Narrative) (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Deferred Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing costs, net	$ 17.7	$ 20.1
Mortgage Notes Payable
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing costs, net	$ (17.7)	$ (20.1)

Real Estate Investments (Narrat

Real Estate Investments (Narrative) (Details) $ in Thousands	May 12, 2016USD ($)property	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)property	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)property
Business Acquisition [Line Items]
Number of real estate properties		459		459
Number of properties sold			0		0
Gain on sale of real estate investments | $		$ 454	$ 0	$ 454	$ 0
SunTrust Bank
Business Acquisition [Line Items]
Number of properties sold	8
Sales of real estate | $	$ 28,900
Gain on sale of real estate investments | $		$ 500		$ 500
Number of property leases amended	160

Real Estate Investments (Assets

Real Estate Investments (Assets Acquired) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)property
Business Acquisition [Line Items]
Land	$ 1,729
Buildings, fixtures and improvements	29,664
Total tangible assets	31,393
Acquired leases	2,851
Above-market ground lease liability	(85)
Below-market lease liabilities	(774)
Cash paid for acquired real estate investments	$ 34,244
Number of properties purchased | property	4
In-place leases
Business Acquisition [Line Items]
Acquired leases	$ 3,162
Weighted-average amortization period	9 years 5 months 18 days
Above-market leases
Business Acquisition [Line Items]
Acquired leases	$ 548
Weighted-average amortization period	9 years 7 months
Above-market ground leases
Business Acquisition [Line Items]
Weighted-average amortization period	48 years 7 months
Below market leases
Business Acquisition [Line Items]
Weighted-average amortization period	9 years 6 months 6 days

Real Estate Investments (Acquir

Real Estate Investments (Acquired Leases) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 319,380	$ 319,028
Finite-lived intangible assets, accumulated amortization	90,722	73,833
Intangible assets, net	228,658	245,195
Finite-lived intangible liabilities, gross	19,326	20,623
Finite-lived intangible liabilities, accumulated amortization	3,114	2,490
Intangible liabilities, net	16,212	18,133
Below market lease, gross	19,241	20,623
Below market lease, accumulated amortization	3,113	2,490
Below market lease, net	16,128	18,133
In-place leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	305,651	305,245
Finite-lived intangible assets, accumulated amortization	84,011	68,278
Intangible assets, net	221,640	236,967
Above-market leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	13,729	13,783
Finite-lived intangible assets, accumulated amortization	6,711	5,555
Intangible assets, net	7,018	8,228
Above-market ground leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible liabilities, gross	85	0
Finite-lived intangible liabilities, accumulated amortization	1	0
Intangible liabilities, net	$ 84	$ 0

Real Estate Investments (Summar

Real Estate Investments (Summary of Amortization Expense and Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of leases			$ 17,291	$ 17,300
Depreciation and Amortization
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	$ 8,613	$ 8,650	17,291	17,300
Depreciation and Amortization | In-place leases
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	8,613	8,650	17,291	17,300
Rental Income
Finite-Lived Intangible Assets [Line Items]
Amortization (accretion) of leases	(120)	(417)	(535)	(833)
Rental Income | Above-market leases
Finite-Lived Intangible Assets [Line Items]
Amortization of leases	740	752	1,496	1,503
Rental Income | Below market leases
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	620	335	961	670
Property Operating Expense
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	1	0	1	0
Property Operating Expense | Above-market ground leases
Finite-Lived Intangible Assets [Line Items]
Accretion of leases	$ 1	$ 0	$ 1	$ 0

Real Estate Investments (Lease

Real Estate Investments (Lease Amortization) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Depreciation and Amortization
Finite-Lived Intangible Assets [Line Items]
July 1, 2016 to December 31, 2016	$ 17,106
2,017	34,212
2,018	24,207
2,019	24,187
2,020	22,569
Depreciation and Amortization | In-place leases
Finite-Lived Intangible Assets [Line Items]
July 1, 2016 to December 31, 2016	17,106
2,017	34,212
2,018	24,207
2,019	24,187
2,020	22,569
Rental Income
Finite-Lived Intangible Assets [Line Items]
Below market leases, July 1, 2016 to December 31, 2016	51
Below market leases, 2017	103
Below market leases, 2018	448
Below market leases, 2019	448
Below market lease, 2020	448
Rental Income | Above-market leases
Finite-Lived Intangible Assets [Line Items]
July 1, 2016 to December 31, 2016	(1,453)
2,017	(2,906)
2,018	(526)
2,019	(526)
2,020	(526)
Rental Income | Below market leases
Finite-Lived Intangible Assets [Line Items]
Below market leases, July 1, 2016 to December 31, 2016	1,504
Below market leases, 2017	3,009
Below market leases, 2018	974
Below market leases, 2019	974
Below market lease, 2020	974
Property Operating Expense
Finite-Lived Intangible Assets [Line Items]
July 1, 2016 to December 31, 2016	(1)
2,017	(2)
2,018	(2)
2,019	(2)
2,020	(2)
Property Operating Expense | Above-market ground leases
Finite-Lived Intangible Assets [Line Items]
July 1, 2016 to December 31, 2016	(1)
2,017	(2)
2,018	(2)
2,019	(2)
2,020	$ (2)

Real Estate Investments (Pro Fo

Real Estate Investments (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Real Estate [Abstract]
Pro forma revenues	$ 88,427	$ 87,465
Pro forma net (loss) income	$ (9,803)	$ 3,886
Basic pro forma net (loss) income per share (in usd per share)	$ (0.15)	$ 0.06
Diluted pro forma net (loss) income per share (in usd per share)	$ (0.15)	$ 0.06
Revenue since acquisition	$ 1,000
Net income since acquisition	$ 500

Real Estate Investments (Minimu

Real Estate Investments (Minimum Lease Payments) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Real Estate Investments, Net [Abstract]
Operating Leases, Future Minimum Payments Receivable, Current	$ 79,234
July 1, 2016 to December 31, 2016	458
2,016	160,078
2,017	153,784
2,018	155,875
2,019	150,703
Thereafter	912,235
Total	$ 1,611,909

Real Estate Investments (Concen

Real Estate Investments (Concentrations) (Details)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
New Jersey
Concentration Risk [Line Items]
Concentration risk	20.00%	20.30%
Georgia
Concentration Risk [Line Items]
Concentration risk	11.00%	11.20%
SunTrust Bank
Concentration Risk [Line Items]
Concentration risk	17.80%	17.90%
Sanofi US
Concentration Risk [Line Items]
Concentration risk	11.40%	11.60%
C&S Wholesale Grocer
Concentration Risk [Line Items]
Concentration risk	10.20%	10.40%

Commercial Mortgage Loans (Comp

Commercial Mortgage Loans (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Sales of commercial mortgage loans	$ 56,900
Commercial Portfolio Segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 17,200	$ 79,850
Percentage	100.00%	100.00%
Commercial Portfolio Segment | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 0	$ 18,150
Percentage	0.00%	22.70%
Commercial Portfolio Segment | Student Housing - Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 17,200	$ 17,200
Percentage	100.00%	21.60%
Commercial Portfolio Segment | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Par Value	$ 0	$ 44,500
Percentage	0.00%	55.70%

Commercial Mortgage Loans (Roll

Commercial Mortgage Loans (Rollforward of Loan Portfolio) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance	$ 17,135
Discount accretion and premium amortization	15
Ending balance	$ 17,150

Other Real Estate Securities (S

Other Real Estate Securities (Summary of Realized Gains) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities	$ 0		$ 0		$ 0
Sale Price			0	$ 9,253
Realized Gain	$ 0	$ 0	$ 0	546
Other Real Estate Securities
Schedule of Available-for-sale Securities [Line Items]
Aggregate Cost Basis				8,707
Sale Price				9,253
Realized Gain				$ 546

Mortgage Notes Payable (Summary

Mortgage Notes Payable (Summary of Mortgage Notes Payable) (Details) - Mortgage notes payable and premiums, net $ in Thousands	Jun. 30, 2016USD ($)property	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Encumbered Properties | property	451
Outstanding Loan Amount	$ 1,039,759	$ 1,053,648
Effective Interest Rate	4.76%	4.77%
Deferred financing costs, net of accumulated amortization	$ (17,728)	$ (20,066)
Mortgage notes payable, net of deferred financing costs	$ 1,022,031	1,033,582
SAAB Sensis I
Debt Instrument [Line Items]
Encumbered Properties | property	1
Outstanding Loan Amount	$ 8,018	$ 8,190
Effective Interest Rate	6.01%	6.01%
SunTrust Bank II
Debt Instrument [Line Items]
Encumbered Properties | property	30
Outstanding Loan Amount	$ 25,000	$ 25,000
Effective Interest Rate	5.50%	5.50%
C&S Wholesale Grocer I
Debt Instrument [Line Items]
Encumbered Properties | property	4
Outstanding Loan Amount	$ 82,313	$ 82,313
Effective Interest Rate	5.56%	5.56%
SunTrust Bank III
Debt Instrument [Line Items]
Encumbered Properties | property	116
Outstanding Loan Amount	$ 90,045	$ 99,677
Effective Interest Rate	5.50%	5.50%
SunTrust Bank IV
Debt Instrument [Line Items]
Encumbered Properties | property	27
Outstanding Loan Amount	$ 21,243	$ 25,000
Effective Interest Rate	5.50%	5.50%
Stop & Shop I
Debt Instrument [Line Items]
Encumbered Properties | property	4
Outstanding Loan Amount	$ 38,608	$ 38,936
Effective Interest Rate	5.63%	5.63%
Sanofi US I - New Loan | Sanofi US I
Debt Instrument [Line Items]
Encumbered Properties | property	1
Outstanding Loan Amount	$ 125,000	$ 125,000
Effective Interest Rate	5.16%	5.16%
Multi-Tenant Mortgage Loan
Debt Instrument [Line Items]
Encumbered Properties | property	268
Outstanding Loan Amount	$ 649,532	$ 649,532
Effective Interest Rate	4.36%	4.36%

Mortgage Notes Payable (Narrati

Mortgage Notes Payable (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016USD ($)property	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)	Aug. 30, 2015USD ($)
Debt Instrument [Line Items]
Restricted cash	$ 7,889,000		$ 7,887,000
Restricted cash released	(2,000)	$ 0
Mortgage notes payable and premiums, net
Debt Instrument [Line Items]
Collateral pledged	$ 2,000,000,000		2,000,000,000
Encumbered Properties | property	451
Outstanding Loan Amount	$ 1,039,759,000		1,053,648,000
Mortgage notes payable and premiums, net | Multi-Tenant Mortgage Loan
Debt Instrument [Line Items]
Face amount				$ 655,000,000
Interest rate				4.30%
Encumbered Properties | property	268
Outstanding Loan Amount	$ 649,532,000		$ 649,532,000
Restricted cash	7,900,000			$ 42,500,000
Restricted cash released	$ 34,600,000

Mortgage Notes Payable (Future

Mortgage Notes Payable (Future Minimum Payments) (Details) - Mortgage notes payable and premiums, net - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
July 1, 2016 to December 31, 2016	$ 514
2,017	1,080
2,018	1,143
2,019	1,211
2,020	650,808
Thereafter	385,003
Long-term Debt	$ 1,039,759	$ 1,053,648

Fair Value of Financial Instr48

Fair Value of Financial Instruments (Schedule of Fair Value, Assets Measured on Recurring Basis) (Details) - Mortgage-Backed Securities - Fair Value, Measurements, Recurring $ in Thousands	Dec. 31, 2015USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	$ 56,884
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	56,884
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities, at fair value	$ 0

Fair Value of Financial Instr49

Fair Value of Financial Instruments (Fair Value of Financial Instruments) (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 17,150	$ 17,135
Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	16,527	17,200
Mortgage notes payable and premiums, net | Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	1,052,410	1,068,540
Mortgage notes payable and premiums, net | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt	$ 1,095,341	$ 1,103,352

Common Stock (Details)

Common Stock (Details) - $ / shares	Apr. 09, 2013	Mar. 31, 2016	Jun. 30, 2016	Apr. 01, 2016	Dec. 31, 2015	Nov. 14, 2014
Class of Stock [Line Items]
Common stock, outstanding (in shares)			65,475,650		64,961,256
Dividends declared per day (in dollars per share)	$ 0.00452054795	$ 0.00450819672
Dividends declared (in dollars per share)	$ 1.65	$ 1.65
Percentage of weighted average outstanding stock for fiscal semester			2.50%
Percentage of weighted average outstanding stock for fiscal year			5.00%
Number of shares in unfulfilled requests (in shares)			5,000,000
Shares available for issuance under a distribution reinvestment plan (in shares)				7,700,000
Common stock issued through distribution reinvestment plan (in shares)			522,248
Common Stock
Class of Stock [Line Items]
Share price for Drip (in dollars per share)						$ 23.75
Minimum | Common Stock
Class of Stock [Line Items]
Drip Share price (in dollars per share)						95.00%
One Year | Maximum
Class of Stock [Line Items]
Percentage of value of capital paid			92.50%
Two Years | Maximum
Class of Stock [Line Items]
Percentage of value of capital paid			95.00%
Three Years | Maximum
Class of Stock [Line Items]
Percentage of value of capital paid			97.50%
Four Years | Maximum
Class of Stock [Line Items]
Percentage of value of capital paid			100.00%

Common Stock (Stock Redemption)

Common Stock (Stock Redemption) (Details) - $ / shares	6 Months Ended	35 Months Ended	41 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2016
Equity [Abstract]
Number of Shares (in shares)	7,854	2,073,645	2,081,499
Weighted Average Price per Share (in dollars per share)	$ 24.17	$ 24.12	$ 24.12

Commitments and Contingencies52

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2016 to December 31, 2016	$ 458
2,017	921
2,018	903
2,019	902
2,020	674
Thereafter	4,975
Total	$ 8,833

Commitments and Contingencies53

Commitments and Contingencies (Summary of Unfunded Commitments Under Commercial Mortgage Loans) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2016 to December 31, 2016	$ 0
2,017	2,450
2,018	0
2,019	0
2,020	0
Thereafter	0
Total	$ 2,450

Related Party Transactions an54

Related Party Transactions and Arrangements (Narrative) (Details) - American Realty Capital Trust V Special Limited Partner, LLC - Special Limited Partner - shares	Jun. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Common stock held by related party (in shares)	8,888	8,888
OP units outstanding (in shares)	90	90

Related Party Transactions an55

Related Party Transactions and Arrangements (Fees and Participations Paid in Connection With the Operations of the Company) (Details) - USD ($)	Jul. 20, 2015	Apr. 29, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Apr. 15, 2015
Related Party Transaction [Line Items]
Total commissions and fees from the Dealer Manager			$ 4,500,000	$ 4,096,000	$ 9,000,000	$ 4,096,000
Advisory Agreement | Advisor
Related Party Transaction [Line Items]
Related party transaction, term		20 years
Base Management Fee | Advisor
Related Party Transaction [Line Items]
Related party fee, quarterly payments	$ 1,500,000
Related party fee, quarterly payments, percent of net proceeds from equity financing	0.375%
Annual Subordinated Performance Fee | Advisor
Related Party Transaction [Line Items]
Related party fee, percent of earnings in excess of benchmark one	15.00%
Related party fee, earnings per share used in calculation, benchmark one (in usd per share)	$ 0.375
Related party fee, percent of earnings in excess of benchmark two	10.00%
Related party fee, earnings per share used in calculation, benchmark two (in usd per share)	$ 0.50
Sales Commissions and Dealer Manager Fees
Related Party Transaction [Line Items]
Share Price (in dollars per share)			$ 22.50		$ 22.50
American Realty Capital Advisors | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Acquisition fees earned by related party percentage			1.00%		1.00%
Financing advance fees earned by related party percentage			1.00%		1.00%
Expected third party acquisition costs reimbursable			0.50%		0.50%
Quarterly asset management fee earned			0.1875%		0.1875%
Antidilutive shares (in shares)					1,052,420
American Realty Capital Advisors | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Expected third party acquisition costs reimbursable			0.50%		0.50%
American Realty Capital Advisors | Amount Available or Outstanding Under Financing Arrangement | Advisor
Related Party Transaction [Line Items]
Financing coordination fees earned			0.75%		0.75%
American Realty Capital Advisors | Maximum | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Acquisition fees and acquisition related expenses			4.50%		4.50%
American Realty Capital Advisors | Maximum | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Financing advance fees earned by related party percentage			4.50%		4.50%
American Realty Capital Advisors | Maximum | Contract Purchase Price, All Assets Acquired | Advisor
Related Party Transaction [Line Items]
Acquisition fees and acquisition related expenses			1.50%		1.50%
American Realty Capital Advisors | Lease Commissions
Related Party Transaction [Line Items]
Amount of transaction			$ 1,300,000	0	$ 1,300,000	0
American Realty Capital Advisors | Annual Asset Management Fee as Percentage of Assets | Advisor
Related Party Transaction [Line Items]
Related party transaction, annual asset management fee percentage							0.75%
American Realty Capital Advisors | Administrative Services | Advisor
Related Party Transaction [Line Items]
Total commissions and fees from the Dealer Manager			$ 600,000	$ 0	$ 1,400,000	$ 0
American Realty Capital Advisors | Annual Targeted Investor Return | Pre-tax Non-compounded Return on Capital Contribution | Advisor
Related Party Transaction [Line Items]
Cumulative capital investment return			6.00%		6.00%

Related Party Transactions an56

Related Party Transactions and Arrangements (Fees and Participations Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Expenses incurred	$ 4,500	$ 4,096	$ 9,000	$ 4,096
Total related party operation fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	5,593	5,420	11,387	6,341
Due to Affiliate	700		700		$ 541
Asset management fees
Related Party Transaction [Line Items]
Expenses incurred	4,500	4,096	9,000	4,096
Due to Affiliate	0		0		0
Professional fees and other reimbursements
Related Party Transaction [Line Items]
Expenses incurred	661	913	1,523	1,548
Due to Affiliate	558		558		541
Distributions on Class B Units
Related Party Transaction [Line Items]
Expenses incurred	432	$ 411	864	$ 697
Due to Affiliate	$ 142		$ 142		$ 0

Related Party Transactions an57

Related Party Transactions and Arrangements (Fees and Participations Paid in Connection with the Liquidation or Listing of the Company's Real Estate Assets) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Total commissions and fees from the Dealer Manager	$ 4,500,000	$ 4,096,000	$ 9,000,000	$ 4,096,000
Cash Distribution | Special Limited Partner
Related Party Transaction [Line Items]
OP’s obligation to distribute to Special Limited Partner, percentage	15.00%		15.00%
Minimum cumulative, non-compounded pre-tax annual return	6.00%		6.00%
Brokerage Commission Fees | Maximum | Contract Sales Price | American Realty Capital Advisors | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	2.00%		2.00%
Real Estate Commissions | Advisor
Related Party Transaction [Line Items]
Total commissions and fees from the Dealer Manager	$ 600,000	$ 0	$ 600,000	$ 0
Due to Affiliate	$ 600,000		$ 600,000
Real Estate Commissions | Maximum | Contract Sales Price | American Realty Capital Advisors | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	6.00%		6.00%

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2015	Apr. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Apr. 04, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)			$ 0.01		$ 0.01		$ 0.01	$ 0.01
Distribution Reinvestment Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, par value (in dollars per share)		$ 0.01
Restricted Share Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors (in shares)			1,333		1,333
Vesting period					5 years
Periodic vesting percentage			20.00%		20.00%
Maximum authorized amount as a percentage of shares authorized	5.00%	10.00%			5.00%
Number of shares authorized (in shares)		3,400,000	3,400,000		3,400,000
Unrecognized compensation costs			$ 100		$ 100
Weighted average period for recognition					2 years 8 months 26 days
Share based compensation expense			$ 11	$ 7	$ 21	$ 14
Shares outstanding (in shares)			5,892	5,008	5,892	5,008

Share-Based Compensation (Summa

Share-Based Compensation (Summary of Unvested Restricted Stock Activity) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Vested (in shares) | shares	(1,563)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Vested (in usd per share) | $ / shares	$ 22.50
Restricted Share Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of shares unvested - beginning balance (in shares) | shares	7,455
Number of shares unvested - ending balance (in shares) | shares	5,892
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value - beginning balance (in usd per share) | $ / shares	$ 23.34
Weighted average grant date fair value - ending balance (in usd per share) | $ / shares	$ 23.56

Net (Loss) Income Per Share (De

Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share, Basic [Abstract]
Net (loss) income	$ (4,077)	$ (1,624)	$ (9,931)	$ 3,277
Basic weighted-average shares outstanding (in shares)	65,301,764	66,045,785	65,128,592	65,859,933
Basic net (loss) per share (in dollars per share)	$ (0.06)	$ (0.02)	$ (0.15)	$ 0.05
Earnings Per Share, Diluted [Abstract]
Adjustments to net income (loss) for common share equivalents	$ 0	$ 0	$ 0	$ (108)
Diluted net income (loss)	$ (4,077)	$ (1,624)	$ (9,931)	$ 3,169
Shares of unvested restricted stock (in shares)	0	0	0	5,293
OP Units (in shares)	0	0	0	90
Diluted weighted-average shares outstanding (in shares)	65,301,764	66,045,785	65,128,592	65,865,316
Diluted net (loss) per share (in dollars per share)	$ (0.06)	$ (0.02)	$ (0.15)	$ 0.05
Antidilutive shares (in shares)	1,059,226	1,004,361	1,059,596
Restricted Stock
Earnings Per Share, Diluted [Abstract]
Antidilutive shares (in shares)	6,716	5,485	7,086
OP Units
Earnings Per Share, Diluted [Abstract]
Antidilutive shares (in shares)	90	90	90
Class B Units
Earnings Per Share, Diluted [Abstract]
Antidilutive shares (in shares)	1,052,420	998,786	1,052,420
Restricted Stock | Restricted Share Plan
Earnings Per Share, Diluted [Abstract]
Shares outstanding (in shares)	5,892	5,008	5,892	5,008