Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 25, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Cole Office & Industrial REIT (CCIT II), Inc. | ||
Entity Central Index Key | 1572758 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 26,524,946 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $75 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment in real estate assets: | ||
Land | $50,549 | $0 |
Buildings and improvements, less accumulated depreciation of $4,574 and $0, respectively | 523,705 | 0 |
Acquired intangible lease assets, less accumulated amortization of $1,726 and $0, respectively | 74,272 | 0 |
Total investment in real estate assets, net | 648,526 | 0 |
Cash and cash equivalents | 11,141 | 138 |
Rents and tenant receivables | 3,421 | 0 |
Prepaid expenses and other assets | 301 | 0 |
Deferred financing costs, less accumulated amortization of $602 and $0, respectively | 4,439 | 1 |
Total assets | 667,828 | 139 |
LIABILITIES & STOCKHOLDERS’ EQUITY | ||
Credit facility and notes payable | 400,916 | 0 |
Line of credit with affiliates | 30,000 | 0 |
Accounts payable and accrued expenses | 2,548 | 39 |
Due to affiliates | 23,086 | 0 |
Acquired below market lease intangibles, less accumulated amortization of $88 and $0, respectively | 8,222 | 0 |
Distributions payable | 1,314 | 0 |
Deferred rental income and other liabilities | 1,427 | 0 |
Total liabilities | 467,513 | 39 |
Commitments and contingencies | ||
Redeemable common stock | 2,816 | 0 |
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 490,000,000 shares authorized, 24,650,094 and 20,000 shares issued and outstanding | 246 | 0 |
Capital in excess of par value | 216,491 | 200 |
Accumulated distributions in excess of earnings | -19,238 | -100 |
Total stockholders’ equity | 197,499 | 100 |
Total liabilities and stockholders’ equity | $667,828 | $139 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accumulated depreciation of building and improvements | $4,574 | $0 |
Accumulated amortization of acquired intangible lease assets | 1,726 | 0 |
Accumulated amortization of deferred financing costs | 602 | 0 |
Accumulated amortization of acquired below market lease intangible | $88 | $0 |
Preferred Stock, par value (in usd per share) | $0.01 | $0 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 |
Common stock, shares issued (in shares) | 24,650,094 | 20,000 |
Common stock, shares outstanding | 24,650,094 | 20,000 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (USD $) | 10 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Income Statement [Abstract] | ||
Rental and other property income | $0 | $15,781 |
Tenant reimbursement income | 0 | 2,065 |
Total revenue | 0 | 17,846 |
Expenses: | ||
General and administrative expenses | 100 | 1,325 |
Property operating expenses | 0 | 2,381 |
Advisory fees and expenses | 0 | 1,638 |
Acquisition related expenses | 0 | 14,726 |
Depreciation | 0 | 4,574 |
Amortization | 0 | 1,726 |
Total operating expenses | 100 | 26,370 |
Operating loss | -100 | -8,524 |
Interest and other income | 0 | 1 |
Interest expense | 0 | -4,193 |
Total other expense | 0 | -4,192 |
Net loss | ($100) | ($12,716) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (in shares) | 18,576 | 10,174,511 |
Net loss per common share: | ||
Basic and diluted (in dollars per share) | ($5.38) | ($1.25) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholder's Equity (USD $) | Total | Common Stock | Capital in Excess of Par Value | Accumulated Distributions in Excess of Earnings |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Feb. 25, 2013 | $0 | |||
Balance, shares at Feb. 25, 2013 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock (in shares) | 20,000 | |||
Issuance of common stock | 200 | |||
Balance at Feb. 26, 2013 | 0 | 0 | 0 | 0 |
Balance, shares at Feb. 26, 2013 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock (in shares) | 20,000 | |||
Issuance of common stock | 200 | 0 | 200 | |
Net loss | -100 | -100 | ||
Balance at Dec. 31, 2013 | 100 | 0 | 200 | -100 |
Balance, shares at Dec. 31, 2013 | 20,000 | 20,000 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock (in shares) | 24,631,770 | |||
Issuance of common stock | 244,906 | 246 | 244,660 | |
Distributions to investors | -6,422 | -6,422 | ||
Commissions on stock sales and related dealer manager fees | -20,638 | -20,638 | ||
Other offering costs | -4,898 | -4,898 | ||
Redemptions of common stock (in shares) | -1,676 | |||
Redemptions of common stock | -17 | -17 | -17 | |
Changes in redeemable common stock | -2,816 | -2,816 | ||
Net loss | -12,716 | -12,716 | ||
Balance at Dec. 31, 2014 | $197,499 | $246 | $216,491 | ($19,238) |
Balance, shares at Dec. 31, 2014 | 24,650,094 | 24,650,094 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 10 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($100) | ($12,716) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation | 0 | 4,574 |
Amortization of intangible lease assets and below market lease intangibles, net | 0 | 1,638 |
Amortization of deferred financing costs | 0 | 602 |
Changes in assets and liabilities: | ||
Rents and tenant receivables | 0 | -3,421 |
Prepaid expenses and other assets | 0 | -251 |
Accounts payable and accrued expenses | 39 | 2,509 |
Deferred rental income and other liabilities | 0 | 1,427 |
Due to affiliates | 0 | 4,734 |
Net cash used in operating activities | -61 | -904 |
Cash flows from investing activities: | ||
Investment in real estate assets | 0 | -628,164 |
Escrowed funds for acquisition of real estate investments | 0 | -60,378 |
Release of escrowed funds for acquisition of real estate investments | 0 | 60,378 |
Net cash used in investing activities | 0 | -628,164 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 200 | 242,073 |
Offering costs on issuance of common stock | 0 | -25,536 |
Redemptions of common stock | 0 | -17 |
Proceeds from credit facility and notes payable | 0 | 462,831 |
Repayment of credit facility and notes payable | 0 | -61,915 |
Proceeds from line of credit with affiliates | 0 | 94,800 |
Repayment of line of credit with affiliates | 0 | -64,800 |
Distributions to investors | 0 | -2,275 |
Deferred financing costs paid | -1 | -5,040 |
Payment of loan deposit | 0 | -401 |
Refund of loan deposit | 0 | -351 |
Net cash provided by financing activities | 199 | 640,071 |
Net increase in cash and cash equivalents | 138 | 11,003 |
Cash and cash equivalents, beginning of period | 0 | 138 |
Cash and cash equivalents, end of period | 138 | 11,141 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Distributions payable | 0 | 1,314 |
Escrow deposit due to affiliate on acquired real estate assets | 0 | 18,352 |
Common stock issued through distribution reinvestment plan | 0 | 2,833 |
Supplemental Cash Flow Disclosures: | ||
Interest paid | $0 | $3,031 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS |
Cole Office & Industrial REIT (CCIT II), Inc. (the “Company,” “we,” “our” or “us”) is a Maryland corporation that was formed on February 26, 2013, our date of inception, that intends to elect and qualify as a real estate investment trust (“REIT”) for federal income tax purposes. We are the sole general partner of, and own, directly or indirectly, 100% of the partnership interest in Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership (“CCI II OP”). We are externally managed by Cole Corporate Income Advisors II, LLC, a Delaware limited liability company (“CCI II Advisors”), which was, prior to the ARCP Merger (as defined below), indirectly owned by Cole Real Estate Investments, Inc. (“Cole”, formerly known as Cole Credit Property Trust III, Inc.) as a result of Cole acquiring Cole Holdings Corporation (“CHC”) on April 5, 2013 pursuant to a transaction whereby CHC merged with and into CREInvestments, LLC (“CREI”), a wholly-owned subsidiary of Cole. On February 7, 2014, American Realty Capital Properties, Inc. (“ARCP”) acquired Cole pursuant to a transaction whereby Cole merged with and into Clark Acquisition, LLC, a wholly owned subsidiary of ARCP (“Merger Sub”), with Merger Sub surviving as a wholly owned subsidiary of ARCP (the “ARCP Merger”). ARCP is a self-managed publicly traded Maryland corporation listed on The NASDAQ Global Select Market, focused on acquiring and owning single tenant freestanding commercial properties subject to net leases with high credit quality tenants. As a result of the ARCP Merger, ARCP indirectly owns and/or controls our external advisor, CCI II Advisors, our dealer manager, Cole Capital Corporation (“CCC”), our property manager, CREI Advisors, LLC (“CREI Advisors”), and our sponsor, Cole Capital®, and such entities are expected to continue to serve in their respective capacities to the Company, as discussed in Note 8 to these consolidated financial statements in this Annual Report on Form 10-K. | |
Our sponsor, Cole Capital, which is comprised of a group of affiliated entities, including CCI II Advisors, has sponsored various real estate investment programs. CCI II Advisors, pursuant to an advisory agreement with us, is responsible for managing our affairs on a day-to-day basis and for identifying and making acquisitions and investments on our behalf. Pursuant to the advisory agreement, CCI II Advisors has fiduciary obligations to us and our stockholders. Our charter provides that our independent directors are responsible for reviewing the performance of CCI II Advisors and determining whether the compensation paid to CCI II Advisors and its affiliates is reasonable. The advisory agreement with CCI II Advisors is for a one-year term and is reconsidered on an annual basis by our board of directors. | |
Pursuant to a registration statement on Form S-11 filed with the Securities and Exchange Commission (“SEC”) under the Securities Act of 1933, as amended (“Securities Act”) (Registration No. 333-187470) and declared effective by the SEC on September 17, 2013, we commenced our initial public offering on a “best efforts” basis of up to a maximum of 250.0 million shares of our common stock at a price of $10.00 per share, and up to 50.0 million additional shares pursuant to a distribution reinvestment plan (the “DRIP”) under which our stockholders may elect to have distributions reinvested in additional shares at a price of $9.50 per share (collectively, the “Offering”). | |
We were initially capitalized on February 26, 2013 when CREI acquired 20,000 shares of common stock for $200,000. On January 10, 2014, CREI deposited $2.5 million for the purchase of shares of common stock in the Offering into escrow. As a result, we satisfied the conditions of our escrow agreement and on January 13, 2014, we broke escrow and issued the initial 275,000 shares of common stock in the Offering, resulting in gross proceeds of approximately $2.5 million and commenced principal operations. On February 7, 2014, the ownership of the shares held by CREI was transferred to ARC Properties Operating Partnership, L.P. (“ARCP OP”). Pursuant to our charter, ARCP OP is prohibited from selling the 20,000 shares of our common stock that represents the initial investment in us for so long as Cole Capital remains our sponsor; provided, however, that ARCP OP may transfer ownership of all or a portion of these 20,000 shares of our common stock to other affiliates of our sponsor. As of December 31, 2014, we had issued approximately 24.6 million shares of common stock in the Offering for gross offering proceeds of $244.9 million before offering costs and selling commissions of $25.5 million. | |
The Company intends to use substantially all of the net proceeds from the Offering to acquire and operate a diversified portfolio of commercial real estate investments primarily consisting of single-tenant, income-producing necessity office and industrial properties, which are leased to creditworthy tenants under long-term leases, including distribution facilities, warehouses, manufacturing plants and corporate or regional headquarters in strategic locations. The Company expects that most of its properties will be subject to “net” leases, whereby the tenant will be primarily responsible for the property’s cost of repairs, maintenance, property taxes, utilities, insurance and other operating costs. As of December 31, 2014, the Company owned 23 properties, comprising 7.2 million rentable square feet of income-producing necessity corporate office and industrial properties located in 15 states. As of December 31, 2014, the rentable space at these properties was 100% leased. | |
Effective as of December 12, 2014, Nicholas S. Schorsch resigned as a director, the chairman of the board of directors of the Company (the “Board”), the chief executive officer and the president of the Company. In addition, effective as of December 12, 2014, Mr. Schorsch resigned as the chief executive officer of CCI II Advisors, as the executive chairman of ARCP and as director of CCC. Effective December 17, 2014, Michael T. Ezzell was appointed as a director, the chief executive officer and the president of the Company by the Board. Effective September 5, 2014, Simon J. Misselbrook was appointed chief financial officer and treasurer of the Company by the Board, and effective March 25, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board. | |
An affiliate of ARCP entered into a definitive agreement (the “RCAP Agreement”), dated as of September 30, 2014, with RCS Capital Corporation (“RCAP”) pursuant to which RCAP would have acquired Cole Capital. The acquisition would have included CCI II Advisors and CCC. Additionally, the parties entered into a strategic arrangement by which an indirect wholly-owned subsidiary of ARCP would have acted as sub-advisor to the non-traded REITs sponsored by Cole Capital (the “Managed Funds”), including the Company, and would have acquired property and managed real estate assets for the Managed Funds. | |
On November 3, 2014, RCAP publicly announced that it had notified ARCP of its purported termination of the RCAP Agreement. On November 11, 2014, ARCP filed a complaint in the Court of Chancery of the State of Delaware against RCAP alleging that RCAP’s attempt to terminate the RCAP Agreement constituted a breach of the RCAP Agreement and seeking, among other things, specific performance of the RCAP Agreement or, in the alternative, money damages. On December 4, 2014, ARCP announced that it had entered into a settlement agreement with RCAP that resolved the dispute over RCAP’s attempt to terminate the RCAP Agreement. ARCP received $60.0 million in the settlement. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. | ||
Principles of Consolidation and Basis of Presentation | ||
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Investment in and Valuation of Real Estate Assets | ||
Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. | ||
The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows: | ||
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term | |
The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate-related assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates, or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value will be determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the year ended December 31, 2014 or for the period from February 13, 2013 to December 31, 2013. | ||
When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease a property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets. | ||
When a real estate asset is identified by the Company as being held for sale, the Company will cease depreciation and amortization of the assets related to the property, and will estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. There were no assets identified as held for sale as of December 31, 2014 or for the period from February 13, 2013 to December 31, 2013. | ||
Allocation of Purchase Price of Real Estate Assets | ||
Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition related expenses are expensed as incurred. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The Company obtains an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. | ||
The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market leases relating to that lease would be recorded as an adjustment to rental income. | ||
The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. | ||
The Company may acquire certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events. Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrow funds to the Company or the seller or a combination thereof. Contingent consideration arrangements will be based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, will be recorded upon acquisition of the respective property at their estimated fair value, and any changes to the estimated fair value, subsequent to acquisition, will be reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. | ||
The Company will estimate the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable will initially be recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance will be amortized to interest expense over the term of the respective mortgage note payable. | ||
The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could impact the Company’s results of operations. | ||
Cash and Cash Equivalents | ||
The Company considers all highly liquid instruments with maturities when purchased of three months or less to be cash equivalents. The Company considers investments in highly liquid money market accounts to be cash equivalents. | ||
Rents and Tenant Receivables | ||
Rents and tenant receivables primarily include amounts to be collected in future periods related to the recognition of rental income on a straight-line basis over the lease term and cost recoveries due from tenants. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy, if any, are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. The Company records allowances for those balances that the Company deems to be uncollectible, including any amounts relating to straight-line rent receivables. As of December 31, 2014 and 2013, no balances were deemed uncollectible and no allowance was recorded. | ||
Prepaid Expenses | ||
Prepaid expenses include expenses paid as of the balance sheet date that relate to future periods and will be expensed or reclassified to another account during the period to which the costs relate. Any amounts with no future economic benefit are charged to earnings when identified. | ||
Concentration of Credit Risk | ||
As of December 31, 2014, the Company had cash on deposit at two financial institutions, in both of which the Company had deposits in excess of federally insured levels, totaling $10.6 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. | ||
As of December 31, 2014, two of the Company’s tenants accounted for 18% and 13%, respectively, of the Company’s 2014 gross annualized rental revenues. The Company also had certain geographic concentrations in its property holdings. In particular, as of December 31, 2014, four of the Company’s properties were located in Ohio, one property was located in Arizona, and two properties were located in Alabama, which accounted for 21%, 18%, and 11%, respectively, of the Company’s 2014 total gross annualized rental revenues. In addition, the Company had tenants in the manufacturing, mining and natural resources, logistics and government and non-profit industries, which comprised 31%, 18%, 11%, and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. | ||
Deferred Financing Costs | ||
Deferred financing costs are capitalized and amortized on a straight-line basis over the term of the related financing agreement, which approximates the effective interest method. If a note payable is prepaid, any unamortized deferred financing costs related to the note payable would be expensed. Amortization of deferred financing costs, including any write-offs, for the year ended December 31, 2014 was $602,000 and was recorded in interest expense in the consolidated statements of operations. | ||
Offering and Related Costs | ||
CCI II Advisors funds all of the organization and offering costs on the Company’s behalf (excluding selling commissions and dealer manager fees) and may be reimbursed for such costs up to 2.0% of aggregate gross proceeds from the Offering. A portion of the other organization and offering expenses may be underwriting compensation. As of December 31, 2014, CCI II Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the Company’s financial statements because such costs were not a liability to the Company as they exceeded 2.0% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess costs may become payable. | ||
Interest | ||
Interest is charged to interest expense as it accrues. No interest costs were capitalized during the years ended December 31, 2014, or for the period from February 13, 2013 to December 31, 2013. | ||
Due to Affiliates | ||
Certain affiliates of CCI II Advisors received fees, reimbursements, and compensation in connection with services provided relating to the Offering and the acquisition, management, financing, and leasing of the properties of the Company. As of December 31, 2014, $23.1 million was due to CCI II Advisors and its affiliates for such services, as discussed in Note 9 to these consolidated financial statements. | ||
Stockholder’s Equity | ||
As of December 31, 2014, the Company was authorized to issue 490.0 million shares of common stock and 10.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. The Board may amend the charter to authorize the issuance of additional shares of capital stock without obtaining shareholder approval. The par value of investor proceeds raised from the Offering will be classified as common stock, with the remainder allocated to capital in excess of par value. As of December 31, 2014, the Company had 24.6 million shares of common stock outstanding and no shares of preferred stock outstanding. | ||
Distributions Payable and Distribution Policy | ||
In order to qualify and maintain its status as a REIT, the Company is required to, among other things, make distributions each taxable year equal to at least 90% of its taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). To the extent that funds are available, the Company intends to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of applicable record dates. | ||
The Board authorized a daily distribution, based on 365 days in the calendar year, of $0.001643836 per share (which equates to approximately 6.00% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 14, 2014 and ending on March 31, 2014. In addition, the Board authorized a daily distribution, based on 365 days in the calendar year, of $0.0017260274 per share (which equates to approximately 6.30% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on April 1, 2014 and ending on June 30, 2015. As of December 31, 2014, the Company had distributions payable of $1.3 million. | ||
Redeemable Common Stock | ||
Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in its consolidated balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value. | ||
Reportable Segment | ||
The Company’s commercial real estate investments consist primarily of single-tenant, income-producing necessity office and industrial properties, which are leased to creditworthy tenants under long-term net leases. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company evaluates operating performance on an overall portfolio level; therefore, the Company’s properties are one reportable segment. | ||
Revenue Recognition | ||
Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred. | ||
Income Taxes | ||
The Company intends to elect to be taxed as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2014, as it did not commence principal operations until January 13, 2014. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it or its subsidiaries may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. | ||
Earnings (Loss) Per Share | ||
Earnings (loss) per share are calculated based on the weighted average number of common shares outstanding during each period presented. Diluted loss per share considers the effect of any potentially dilutive share equivalents, of which the Company had none for the year ended December 31, 2014, or the period from February 26, 2013 (date of inception) to December 31, 2013. | ||
Recent Accounting Pronouncements | ||
In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s consolidated financial statements because the Company did not have any discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s consolidated financial statements. | ||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The Company does not believe ASU 2014-15, when effective, will have a material impact on the Company’s consolidated financial statements because the Company currently does not have any conditions that give rise to substantial doubt about its ability to continue as a going concern. | ||
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"), which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require the Company to revise its documentation regarding the consolidation or deconsolidation of such entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company does not believe ASU 2015-02, when effective, will have material impact on the Company’s financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS |
GAAP defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. | |
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: | |
Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 - Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). | |
Level 3 - Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. | |
The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities: | |
Cash and cash equivalents and restricted cash - The Company considers the amount of these financial assets to approximate fair value because of the short period of time between their origination and their expected realization. These financial assets are considered Level 1. | |
Credit facility, notes payable and line of credit with affiliate - The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. The estimated fair value of the Company’s debt was $431.3 million as of December 31, 2014, compared to the carrying value on that date of $430.9 million. The fair value of the Company’s debt is estimated using Level 2 inputs. | |
Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, on disposition of the financial assets and liabilities. As of December 31, 2014, there have been no transfers of financial assets or liabilities between fair value hierarchy levels. |
Real_Estate_Acquisitions
Real Estate Acquisitions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Real Estate [Abstract] | ||||
REAL ESTATE ACQUISITIONS | REAL ESTATE ACQUISITIONS | |||
2014 Property Acquisitions | ||||
During the year ended December 31, 2014, the Company acquired 23 commercial properties for an aggregate purchase price of $646.5 million (the “2014 Acquisitions”). The Company purchased the 2014 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation (in thousands): | ||||
December 31, 2014 | ||||
Land | $ | 50,549 | ||
Building and improvements | 528,279 | |||
Acquired in-place leases | 74,436 | |||
Acquired above-market leases | 1,562 | |||
Acquired below-market leases | (8,310 | ) | ||
Total purchase price | $ | 646,516 | ||
The Company recorded revenue for the year ended December 31, 2014 of $17.8 million and a net loss for the year ended December 31, 2014 of $12.7 million related to the 2014 Acquisitions. In addition, the Company recorded $14.7 million of acquisition related expenses for the year ended December 31, 2014. | ||||
The following table summarizes selected financial information of the Company as if the 2014 Acquisitions were completed on January 13, 2014, the date the Company commenced principal operations. The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the year ended December 31, 2014 (in thousands): | ||||
Period from January 13, 2014 to December 31, 2014 | ||||
Pro forma basis (unaudited): | ||||
Revenue | $ | 53,440 | ||
Net income | $ | 13,618 | ||
The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2014, nor does it purport to represent the results of future operations. |
Intangible_Lease_Assets
Intangible Lease Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
INTANGIBLE LEASE ASSETS | INTANGIBLE LEASE ASSETS | ||||||||
The intangible lease assets consisted of the following (in thousands, except weighted average life remaining amounts): | |||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
In-place leases, net (with accumulated amortization of $1,726 and $0, respectively and a weighted average life remaining of 11.4 and 0 years, respectively) | $ | 72,710 | $ | — | |||||
Acquired above market lease, (with a weighted average life remaining of 12.3 and 0 years, respectively) | 1,562 | — | |||||||
Amortization expense related to the in-place lease assets for the year ended December 31, 2014 was $1.7 million, which also represents accumulated amortization. No amortization expense was recorded related to the acquired above market lease for the year ended December 31, 2014. In addition, no amortization expense was incurred or recorded related to intangible lease assets for the period from February 13, 2013 to December 31, 2013. | |||||||||
Estimated amortization expense related to the intangible lease assets as of December 31, 2014, for each of the five succeeding fiscal years is a follows (in thousands): | |||||||||
Amortization | |||||||||
Years Ending December 31, | In-Place Leases | Above Market Leases | |||||||
2015 | $ | 6,482 | $ | 125 | |||||
2016 | 6,482 | 125 | |||||||
2017 | 6,482 | 125 | |||||||
2018 | 6,482 | 125 | |||||||
2019 | 6,482 | 125 | |||||||
Credit_Facilities_and_Notes_Pa
Credit Facilities and Notes Payable | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
CREDIT FACILITIES AND NOTES PAYABLE | CREDIT FACILITIES AND NOTES PAYABLE | |||||||||||||||
As of December 31, 2014, the Company had $430.9 million of debt outstanding with a weighted average interest rate of 2.74% and a weighted average remaining term of 4.4 years. | ||||||||||||||||
The following table summarizes the debt activity for the year ended December 31, 2014 (in thousands): | ||||||||||||||||
During the Year Ended December 31, 2014 | ||||||||||||||||
Balance as of | Debt Issuance | Repayments | Balance as of December 31, 2014 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Fixed rate debt | $ | — | $ | 35,100 | $ | — | $ | 35,100 | ||||||||
Credit facility | — | 427,731 | (61,915 | ) | 365,816 | |||||||||||
Line of credit with affiliates | — | 94,800 | (64,800 | ) | 30,000 | |||||||||||
Total | $ | — | $ | 557,631 | $ | (126,715 | ) | $ | 430,916 | |||||||
As of December 31, 2014, the fixed rate debt had an interest rate of 4.08%, and a maturity date of November 1, 2021. The mortgage note payable is secured by the respective properties on which the debt was placed. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt was $56.9 million as of December 31, 2014, and the assets securing the Amended Credit Facility’s (as defined below) underlying collateral pool was $591.4 million as of December 31, 2014. | ||||||||||||||||
During the year ended December 31, 2014, the Company entered into a secured revolving credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) as administrative agent. The Credit Facility allowed the Company to borrow up to $100.0 million in revolving loans (the “Revolving Loans”). In November 2014, the Company then entered into an accordion increase agreement with JPMorgan Chase, which allowed the Company to borrow up to $225.0 million in Revolving Loans. | ||||||||||||||||
In December 2014, the Company entered into an amended and restated credit agreement (the “Amended Credit Agreement”) with JPMorgan Chase, as administrative agent, swing line lender and letter of credit issuer, Regions Bank and U.S. Bank National Association as co-syndication agents, and other lending institutions that are or may become parties to the Amended Credit Agreement, which are not affiliated with the Company, its advisor, or their affiliates. The Amended Credit Agreement allows the Company to borrow up to $200.0 million in Revolving Loans and includes a $200.0 million term loan (the “Term Loan”), with the maximum amount outstanding not to exceed the borrowing base (the “Borrowing Base”), calculated as 65% of the aggregate value allocated to each qualified property comprising eligible collateral, as defined in the Amended Credit Agreement (the “Amended Credit Facility”). Up to 15% of the Revolving Loans may be used for issuing letters of credit and up to 10% of the Revolving Loans, not to exceed $50.0 million, may be used for issuing short term (ten day or less) advances. Subject to meeting certain conditions described in the Amended Credit Agreement and the payment of certain fees, aggregate borrowings under the Amended Credit Facility may be increased up to a maximum of $1.25 billion. The Revolving Loans mature on December 12, 2018; however, the Borrower may elect to extend the maturity dates of such loans to December 12, 2019, subject to satisfying certain conditions described in the Amended Credit Agreement. The Term Loan matures on December 12, 2019. If the Borrower does not reach $1.0 billion in total asset value prior to March 31, 2016, both the Revolving Loans and Term Loan will mature on September 30, 2017. | ||||||||||||||||
The Revolving Loans and Term Loan will bear interest at rates depending upon the type of loan specified by the Borrower. For a eurodollar rate loan (as defined in the Amended Credit Agreement), the interest rate will be equal to the one-month, two-month, three-month or six-month LIBOR for the interest period, as elected by the Borrower, multiplied by the Statutory Reserve Rate (as defined in the Amended Credit Agreement), plus 2.45%. For base rate committed loans (as defined in the Amended Credit Agreement), the interest rate will be a per annum amount equal to the greatest of: (i) JPMorgan Chase’s Prime Rate; (ii) the Federal Funds Effective Rate (as defined in the Amended Credit Agreement) plus 0.50%; and (iii) one-month LIBOR multiplied by the Statutory Reserve Rate plus 2.45%. The Amended Credit Agreement also includes interest rate structures should the Company convert to an unsecured revolving credit facility, or should the Company obtain an investment grade rating, subject to meeting certain conditions described in the Amended Credit Agreement. As of December 31, 2014, the Revolving Loans had $18.6 million available for borrowing and the Revolving Loans and Term Loan had a weighted average interest rate of 2.64%. | ||||||||||||||||
The Amended Credit Agreement contains customary representations, warranties, borrowing conditions and affirmative, negative and financial covenants, including minimum net worth, debt service coverage and leverage ratio requirements and dividend payout and REIT status requirements. In particular, the Amended Credit Agreement required the Company to maintain a minimum consolidated net worth of at least $194.9 million as of December 31, 2014, a leverage ratio less than or equal to 70.0% and a fixed charge coverage ratio equal to or greater than 1.50. Based on the Company’s analysis and review of its results of operations and financial condition, the Company believes it was in compliance with the covenants of the Amended Credit Agreement as of December 31, 2014. | ||||||||||||||||
In addition, during the year ended December 31, 2014, the Company entered into a modification agreement with Series C, LLC (“Series C”), an affiliate of the Company’s advisor, in order to increase the maximum principal amount of the Company’s original subordinate revolving line of credit to $60.0 million (the “Series C Line of Credit”). The Series C Line of Credit bears interest at a rate per annum equal to the one-month LIBOR plus 2.20% with accrued interest payable monthly in arrears and principal due upon maturity on January 13, 2016. The Series C Line of Credit had an interest rate of 2.36% as of December 31, 2014. In the event the Series C Line of Credit is not paid off on the maturity date, the loan includes usual and customary default provisions. The Series C Line of Credit was approved by a majority of the Board (including a majority of the independent directors) not otherwise interested in the transactions as fair, competitive and commercially reasonable and no less favorable to the Company than comparable loans between unaffiliated parties under the same circumstances. As of December 31, 2014, the Company had $30.0 million available for borrowing under the Series C Line of Credit. | ||||||||||||||||
Maturities | ||||||||||||||||
The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt for the five years and thereafter subsequent to year ended December 31, 2014 (in thousands): | ||||||||||||||||
Annual Maturities | Principal Repayments | |||||||||||||||
2015 | $ | — | ||||||||||||||
2016 | 30,000 | |||||||||||||||
2017 | — | |||||||||||||||
2018 | 165,816 | |||||||||||||||
2019 | 200,000 | |||||||||||||||
Thereafter | 35,100 | |||||||||||||||
Total | $ | 430,916 | ||||||||||||||
Acquired_Below_Market_Lease_In
Acquired Below Market Lease Intangibles | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Liabilities Disclosure [Text Block] | ACQUIRED BELOW MARKET LEASE INTANGIBLES | ||||||||
Acquired below market lease intangibles consisted of the following (in thousands, except weighted average life remaining amounts): | |||||||||
As of December 31, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
Acquired below market lease intangibles, less accumulated amortization of $88 and $0, respectively (with a weighted average life remaining of 12.4 and 0 years, respectively) | $ | 8,222 | $ | — | |||||
Amortization of the intangible lease liabilities during the year ended December 31, 2014 was $88,000 and was recorded as an addition to rental and other property income in the consolidated statements of operations. | |||||||||
Estimated amortization of the intangible lease liabilities as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands): | |||||||||
Year ended December 31, | Amortization of Below Market Leases | ||||||||
2015 | $ | 717 | |||||||
2016 | 717 | ||||||||
2017 | 717 | ||||||||
2018 | 717 | ||||||||
2019 | 717 | ||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
Litigation | |
In the ordinary course of business, the Company may become subject to litigation or claims. The Company is not aware of any pending legal proceedings of which the outcome is reasonably possible to have a material effect on its results of operations, financial condition or liquidity. | |
Environmental Matters | |
In connection with the ownership and operation of real estate, the Company potentially may be liable for costs and damages related to environmental matters. In addition, the Company may acquire certain properties that are subject to environmental remediation. The Company carries environmental liability insurance on its properties that provides limited coverage for remediation liability and pollution liability for third-party bodily injury and property damage claims. The Company is not aware of any environmental matters which it believes are reasonably possible to have a material effect on its results of operations, financial condition or liquidity. |
RelatedParty_Transactions_and_
Related-Party Transactions and Arrangements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | |||||||
The Company has incurred, and will continue to incur, commissions, fees and expenses payable to CCI II Advisors and certain of its affiliates in connection with the Offering and the acquisition, management and disposition of its assets. | ||||||||
Offering | ||||||||
In connection with the Offering, CCC, the Company’s dealer manager, receives a commission of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. CCC intends to reallow 100% of commissions earned to participating broker-dealers. In addition, up to 2.0% of gross offering proceeds from the primary portion of the Offering before reallowance to participating broker-dealers is paid and will continue to be paid to CCC as a dealer manager fee. CCC, in its sole discretion, may reallow all or a portion of its dealer manager fee to such participating broker-dealers. No selling commissions or dealer manager fees are paid to CCC or other broker-dealers with respect to shares sold pursuant to the DRIP. | ||||||||
All organization and offering expenses (excluding selling commissions and the dealer manager fees) are paid by CCI II Advisors or its affiliates and can be reimbursed by the Company up to 2.0% of aggregate gross offering proceeds. A portion of the other organization and offering expenses may be underwriting compensation. As of December 31, 2014, CCI II Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 2.0% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess costs may become payable. | ||||||||
The Company incurred fees and expense reimbursements as shown in the table below (in thousands) for services provided by CCI II Advisors and its affiliates related to the services described above for the periods indicated. | ||||||||
2014 | 2013 | |||||||
Offering: | ||||||||
Selling commissions | $ | 15,829 | $ | — | ||||
Selling commissions reallowed by CCC | $ | 15,829 | $ | — | ||||
Dealer manager fees | $ | 4,809 | $ | — | ||||
Dealer manager fees reallowed by CCC | $ | 2,358 | $ | — | ||||
Other offering costs | $ | 4,898 | $ | — | ||||
As of December 31, 2014, all of the amounts shown above had been paid to CCI II Advisors and its affiliates. As the Company did not commence principal operations until January 13, 2014, the Company did not incur any selling commissions, dealer manager fees or expense reimbursements in connection with the offering stage of the Offering for the period from February 13, 2013 to December 31, 2013. | ||||||||
Acquisitions and Operations | ||||||||
CCI II Advisors, or its affiliates, receives acquisition fees of up to 2.0% of: (1) the contract purchase price of each property or asset the Company acquires; (2) the amount paid in respect of the development, construction or improvement of each asset the Company acquires; (3) the purchase price of any loan the Company acquires; and (4) the principal amount of any loan the Company originates. In addition, the Company reimburses CCI II Advisors or its affiliates for acquisition related expenses incurred in the process of acquiring a property or the origination or acquisition of a loan, so long as the total acquisition fees and expenses relating to the transaction do not exceed 6.0% of the contract purchase price. | ||||||||
The Company pays CCI II Advisors a monthly advisory fee based upon the Company’s monthly average invested assets, which is equal to the following amounts: (1) an annualized rate of 0.75% paid on the Company’s average invested assets that are between $0 to $2.0 billion; (2) an annualized rate of 0.70% paid on the Company’s average invested assets that are between $2 billion and $4.0 billion; and (3) an annualized rate of 0.65% paid on the Company’s average invested assets that are over $4.0 billion. | ||||||||
The Company reimburses CCI II Advisors for the operating expenses it paid or incurred in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse for any amount by which its operating expenses (including the advisory fee) at the end of the four preceding fiscal quarters exceeds the greater of (1) 2.0% of average invested assets, or (2) 25.0% of net income other than any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of assets for that period. The Company will not reimburse CCI II Advisors for personnel costs in connection with the services for which CCI II Advisors receives acquisition or disposition fees. The Company recorded fees and expense reimbursements as shown in the table below (in thousands) for services provided by CCI II Advisors and its affiliates related to the services described above during the periods indicated: | ||||||||
2014 | 2013 | |||||||
Acquisition and Operations: | ||||||||
Acquisition fees and expenses | $ | 13,170 | $ | — | ||||
Advisory fees and expenses | $ | 1,630 | $ | — | ||||
Operating expenses | $ | 411 | $ | — | ||||
As of December 31, 2014, $4.7 million of the amounts shown above had been incurred, but not yet paid for services provided by CCI II Advisors or its affiliates in connection with the acquisitions and operations stage and was a liability to the Company. As the Company did not commence principal operations until January 13, 2014, the Company did not incur any fees or expense reimbursements in connection with the acquisitions and operations stage during the year ended December 31, 2013. During the year ended December 31, 2014, CCI II Advisors permanently waived its rights to expense reimbursements totaling approximately $1.5 million, and thus the Company is not responsible for this amount. | ||||||||
Liquidation/Listing | ||||||||
If CCI II Advisors or its affiliates provide a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, the Company will pay CCI II Advisors or its affiliates a disposition fee in an amount equal to up to one-half of the brokerage commission paid on the sale of the property, not to exceed 1.0% of the contract price of each property sold; provided, however, in no event may the disposition fee paid to CCI II Advisors or its affiliates, when added to the real estate commissions paid to unaffiliated third parties, exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. In addition, if CCI II Advisors or its affiliates provides a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of one or more assets other than properties, the Company may separately compensate CCI II Advisors at such rates and in such amounts as the Board, including a majority of the Company’s independent directors, and CCI II Advisors agree upon, not to exceed an amount equal to 1.0% of the contract price of the asset sold. | ||||||||
If the Company is sold or its assets are liquidated, CCI II Advisors will be entitled to receive a subordinated performance fee equal to 15.0% of the net sale proceeds remaining after investors have received a return of their net capital invested and an 8.0% annual cumulative, non-compounded return. Alternatively, if the Company’s shares are listed on a national securities exchange, CCI II Advisors will be entitled to a subordinated performance fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus all distributions paid by the Company prior to listing exceeds the sum of the total amount of capital raised from investors and the amount of distributions necessary to generate an 8.0% annual cumulative, non-compounded return to investors. As an additional alternative, upon termination of the advisory agreement, CCI II Advisors may be entitled to a subordinated performance fee similar to the fee to which it would have been entitled had the portfolio been liquidated (based on an independent appraised value of the portfolio) on the date of termination. | ||||||||
During each of the years ended December 31, 2014 and 2013, no commissions or fees were incurred for any such services provided by CCI II Advisors and its affiliates related to the liquidation/listing stage. | ||||||||
Due to Affiliates | ||||||||
As of December 31, 2014, $23.1 million had been incurred by CCI II Advisors or its affiliates, but had not been reimbursed by the Company, and was included in “due to affiliates” on the consolidated balance sheets. This amount primarily relates to property escrow deposits and acquisition costs due to CCI II Advisors or its affiliates for properties that the Company purchased during the year ended December 31, 2014. | ||||||||
Transactions | ||||||||
In connection with the real estate assets acquired during the year ended December 31, 2014, the Company entered into the Series C Line of Credit. Refer to Note 6 to these consolidated financial statements for the terms of the Series Line of Credit. As of December 31, 2014, the Company had $30.0 million outstanding under the Series C Line of Credit. The Company incurred $280,000 of interest expense due to an affiliate of CCI II Advisors related to the Series C Line of Credit during the twelve months ended December 31, 2014. During the year ended December 31, 2013, the Company did not enter into any loan agreements with affiliates of CCI II Advisors. |
Economic_Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2014 | |
Economic Dependency [Abstract] | |
ECONOMIC DEPENDENCY | ECONOMIC DEPENDENCY |
Under various agreements, the Company has engaged or will engage CCI II Advisors and its affiliates 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, the sale of shares of the Company’s common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon CCI II Advisors and its affiliates. In the event that these companies are unable to provide the Company with these services, the Company would be required to find alternative providers of these services. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY |
As of December 31, 2014, the Company was authorized to issue 490.0 million shares of common stock and 10.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. On February 26, 2013 CREI acquired 20,000 shares of common stock, at $10.00 per share. On February 7, 2014, the ownership of such shares was transferred to ARCP OP. Pursuant to the Company’s charter, ARCP OP is prohibited from selling the 20,000 shares of the common stock that represents the initial investment in the Company for so long as Cole Capital remains the Company’s sponsor; provided, however, that ARCP OP may transfer ownership of all or a portion of these 20,000 shares of the Company’s common stock to other affiliates of the Company’s sponsor. | |
Distribution Reinvestment Plan | |
Pursuant to the DRIP, the Company allows stockholders to elect to have their distributions reinvested in additional shares of the Company’s common stock. The purchase price per share under the DRIP is $9.50 per share. The Board may terminate or amend the DRIP at the Company’s discretion at any time upon ten days prior written notice to the stockholders. During the year ended December 31, 2014, approximately 298,000 shares were purchased under the DRIP for $2.8 million, which were recorded as redeemable common stock on the consolidated balance sheet, net of redemptions paid of $17,000. During the year ended December 31, 2013, no shares were purchased under the DRIP. | |
Share Redemption Program | |
The Company’s share redemption program permits its stockholders to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below. | |
The share redemption program provides that the Company will redeem shares of its common stock from requesting stockholders, subject to the terms and conditions of the share redemption program. The Company will limit the number of shares redeemed pursuant to the share redemption program as follows: (1) the Company will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited to the net proceeds the Company receives from the sale of shares under the DRIP. In an effort to accommodate redemption requests throughout the calendar year, the Company intends to limit quarterly redemptions to approximately one-fourth of 5% (1.25%) of the weighted average number of shares outstanding during the trailing 12-month period ending on the last day of the fiscal quarter, and funding for redemptions for each quarter generally will be limited to the net proceeds the Company receives from the sale of shares in the respective quarter under the DRIP. | |
During the term of the Offering, and until such time as the board of directors determines a reasonable estimate of the value of the Company’s shares, the redemption price per share (other than for shares purchased pursuant to the DRIP) will depend on the price paid for the shares and the length of time the stockholder has held such shares as follows: after one year from the purchase date, 95% of the amount paid for each share; after two years from the purchase date, 97.5% of the amount paid for each share; and after three years from the purchase date, 100% of the amount paid for each share. During this time period, the redemption price for shares purchased pursuant to the DRIP will be the amount paid for such shares. (In each case, the redemption price will be adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to the Company’s common stock.) Accordingly, the redemption price will reflect a stockholder’s reduced purchase price if such stockholder received discounted or waived selling commissions and/or a waived dealer manager fee. At any time the Company is engaged in an offering of shares, the per share price for shares purchased under the redemption program will always be equal to or lower than the applicable per share offering price. | |
Upon receipt of a request for redemption, the Company may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. If the Company cannot purchase all shares presented for redemption in any fiscal quarter, based upon insufficient cash available and/or the limit on the number of shares the Company may redeem during any quarter or year, the Company will give priority to the redemption of deceased stockholders’ shares. The Company next will give priority to requests for full redemption of accounts with a balance of 250 shares or less at the time the Company receives the request, in order to reduce the expense of maintaining small accounts. Thereafter, the Company will honor the remaining redemption requests on a pro rata basis. Following such quarterly redemption period, the unsatisfied portion of the prior redemption request must be resubmitted, prior to the last day of the new quarter. Unfulfilled requests for redemption will not be carried over automatically to subsequent redemption periods. | |
The Company redeems shares no later than the end of the month following the end of each fiscal quarter. Requests for redemption must be received on or prior to the end of the fiscal quarter in order for the Company to repurchase the shares in the month following the end of that fiscal quarter. The Board may amend, suspend or terminate the share redemption program at any time upon 30 days’ notice to the stockholders. During the year ended December 31, 2014, the Company redeemed approximately 1,700 shares under the share redemption program for approximately $17,000. |
Income_Taxes
Income Taxes | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ||||
INCOME TAXES | INCOME TAXES | |||
For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S stockholders’ basis (but not below zero) in their shares. The following table shows the character of the distributions paid on a percentage basis for the year ended December 31, 2014. | ||||
Year Ended December 31, | ||||
Character of Distributions (unaudited): | 2014 | |||
Ordinary dividends | 55 | % | ||
Nontaxable distributions | 45 | % | ||
Total | 100 | % | ||
As of December 31, 2014, the tax basis carrying value of the Company’s land and depreciable real estate assets was $641.9 million. During the year ended December 31, 2014, the Company distributed as dividends to its shareholders 100% of its taxable income for federal income tax purposes. Accordingly, no provision for federal income taxes related to such taxable income was recorded on the Company’s financial statements. During the year ended December 31, 2014, the Company incurred state and local income and franchise taxes of $110,000, which were recorded in general and administrative expenses in the consolidated statements of operations. | ||||
The Company had no unrecognized tax benefits as of or during the year ended December 31, 2014. Any interest and penalties related to unrecognized tax benefits would be recognized within the provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, as well as various state jurisdictions, and is subject to routine examinations by the respective tax authorities. |
Operating_Leases
Operating Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
OPERATING LEASES | OPERATING LEASES | ||||
The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2014, the leases had a weighted-average remaining term of 11.2 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The future minimum rental income from the Company’s investment in real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of December 31, 2014 is as follows (in thousands): | |||||
Year ending December 31, | Future Minimum Rental Income | ||||
2015 | $ | 48,986 | |||
2016 | 48,986 | ||||
2017 | 48,986 | ||||
2018 | 48,986 | ||||
2019 | 48,986 | ||||
Thereafter | 304,670 | ||||
Total | $ | 549,600 | |||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
QUARTERLY RESULTS (UNAUDITED) | QUARTERLY RESULTS (UNAUDITED) | ||||||||||||||||
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2014 (in thousands, except per share amounts). In the opinion of management, the information for the interim period presented includes all adjustments, which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period. | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Operating loss | $ | — | $ | — | $ | (18 | ) | $ | (82 | ) | |||||||
Net loss | $ | — | $ | — | $ | (18 | ) | $ | (82 | ) | |||||||
Basic and diluted net loss per common share (1) | $ | — | $ | — | $ | (0.99 | ) | $ | (4.39 | ) | |||||||
Distributions declared per common share | $ | — | $ | — | $ | — | $ | — | |||||||||
December 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Revenues | $ | 458 | $ | 1,428 | $ | 5,589 | $ | 10,371 | |||||||||
Operating loss | $ | (523 | ) | $ | (3,927 | ) | $ | (187 | ) | $ | (3,887 | ) | |||||
Net loss | $ | (803 | ) | $ | (4,304 | ) | $ | (1,305 | ) | $ | (6,304 | ) | |||||
Basic and diluted net loss per common share (1) | $ | (0.08 | ) | $ | (0.42 | ) | $ | (0.13 | ) | $ | (0.62 | ) | |||||
Distributions declared per common share | $ | 0.15 | $ | 0.16 | $ | 0.16 | $ | 0.18 | |||||||||
(1) Based on the weighted average number of shares outstanding as of December 31, 2013 and December 31, 2014, respectively. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
Status of the Offering | |
As of March 25, 2015, the Company had received $263.7 million in gross offering proceeds through the issuance of approximately 26.5 million shares of its common stock in the Offering. | |
Investment in Real Estate Assets | |
Subsequent to December 31, 2014, the Company did not acquire any real estate properties. | |
Credit Facility and Notes Payable | |
In connection with the Amended Credit Facility, the Company executed an interest rate swap agreement subsequent to December 31, 2014 that effectively fixed the variable interest rate of the Term Loan at 3.79% based on the applicable margin at the current leverage ratio. The Company also entered into three notes payable agreements totaling $135.4 million, including two note payables subject to swap agreements that effectively fixed the variable interest rate at 3.35% and 3.29%, respectively. | |
Officer Appointment | |
Effective March 25, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board, replacing Simon J. Misselbrook as principal accounting officer of the Company. Mr. Misselbrook remains the chief financial officer, treasurer and principal financial officer of the Company. |
Schedule_III
Schedule III | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Schedule III | ||||||||||||||||||||||||||||||
Gross Amount | ||||||||||||||||||||||||||||||
at Which | ||||||||||||||||||||||||||||||
Initial Costs to Company | Total | Carried At | Accumulated | |||||||||||||||||||||||||||
Buildings & | Adjustment | 31-Dec-14 | Depreciation | Date | Date | |||||||||||||||||||||||||
Description (a) | Encumbrances | Land | Improvements | to Basis | (b) (c) | (d) (e) | Acquired | Constructed | ||||||||||||||||||||||
Real Estate Held for Investment the Company has Invested in Under Operating Leases | ||||||||||||||||||||||||||||||
3 Phoenix, Inc.: | ||||||||||||||||||||||||||||||
Wake Forest, NC | (f) | $ | 973 | $ | 8,330 | $ | — | $ | 9,303 | $ | 62 | 9/30/14 | 2014 | |||||||||||||||||
3D Systems: | ||||||||||||||||||||||||||||||
Rock Hill, SC | (f) | 780 | 8,082 | — | 8,862 | 63 | 9/30/14 | 1992 | ||||||||||||||||||||||
Amazon.com, Inc.: | ||||||||||||||||||||||||||||||
Petersburg, VA | (f) | 3,866 | 48,404 | — | 52,270 | 302 | 10/15/14 | 2012 | ||||||||||||||||||||||
Amcor Rigid Plastics USA, Inc.: | ||||||||||||||||||||||||||||||
Franklin, IN | (f) | 1,373 | 16,530 | — | 17,903 | 233 | 6/27/14 | 1973 | ||||||||||||||||||||||
Bellevue, OH | (f) | 611 | 9,171 | — | 9,782 | 72 | 9/26/14 | 1998 | ||||||||||||||||||||||
Bellevue, OH | (f) | 498 | 7,960 | — | 8,458 | 62 | 9/26/14 | 1998 | ||||||||||||||||||||||
Avnet, Inc.: | ||||||||||||||||||||||||||||||
San Antonio, TX | (f) | 1,619 | 9,611 | — | 11,230 | 13 | 12/19/14 | 2014 | ||||||||||||||||||||||
BTS Procter & Gamble Distributing: | ||||||||||||||||||||||||||||||
Union, OH | (f) | 3,537 | 68,961 | — | 72,498 | 74 | 12/23/14 | 2014 | ||||||||||||||||||||||
County of Santa Clara: | ||||||||||||||||||||||||||||||
San Jose, CA | 14,314 | 4,561 | 17,508 | — | 22,069 | 471 | 1/13/14 | 1997 | ||||||||||||||||||||||
E.I. DuPont de Nemours and Company: | ||||||||||||||||||||||||||||||
Johnston, CO | (f) | 1,587 | 33,027 | — | 34,614 | 39 | 12/19/14 | 2014 | ||||||||||||||||||||||
FedEx Ground Package System, Inc.: | ||||||||||||||||||||||||||||||
St. Joseph, MO | (f) | 414 | 4,304 | — | 4,718 | 70 | 5/30/14 | 2014 | ||||||||||||||||||||||
Fort Dodge, IA | (f) | 123 | 2,414 | — | 2,537 | 34 | 6/2/14 | 2014 | ||||||||||||||||||||||
Las Vegas, NV | 11,541 | 1,838 | 16,439 | — | 18,277 | 248 | 6/5/14 | 2010 | ||||||||||||||||||||||
Johnstown, CO | (f) | 1,285 | 12,182 | — | 13,467 | 98 | 9/30/14 | 2014 | ||||||||||||||||||||||
Freeport-McMoRan Inc.: | ||||||||||||||||||||||||||||||
Phoenix, AZ | (f) | — | 96,553 | — | 96,553 | 330 | 11/4/14 | 2010 | ||||||||||||||||||||||
Green Mountain Coffee: | ||||||||||||||||||||||||||||||
Burlington, MA | (f) | 4,612 | 31,175 | — | 35,787 | 495 | 6/30/14 | 2013 | ||||||||||||||||||||||
ODW: | ||||||||||||||||||||||||||||||
Columbus, OH | (f) | 3,052 | 22,096 | — | 25,148 | 325 | 6/30/14 | 1992 | ||||||||||||||||||||||
Owens Corning: | ||||||||||||||||||||||||||||||
Fuera Bush, NY | (f) | 1,134 | 10,218 | — | 11,352 | 129 | 7/29/14 | 1986 | ||||||||||||||||||||||
Protein Simple: | ||||||||||||||||||||||||||||||
San Jose, CA | (f) | 10,797 | 21,611 | — | 32,408 | 138 | 10/23/14 | 1982 | ||||||||||||||||||||||
RF Micro Devices: | ||||||||||||||||||||||||||||||
Greensboro, NC | 9,245 | 865 | 11,155 | — | 12,020 | 156 | 6/12/14 | 1999 | ||||||||||||||||||||||
State of Alabama: | ||||||||||||||||||||||||||||||
Birmingham, AL | (f) | 1,950 | 26,831 | — | 28,781 | 503 | 4/30/14 | 2010 | ||||||||||||||||||||||
Subaru of America : | ||||||||||||||||||||||||||||||
Lebanon, IN | (f) | 3,041 | 27,333 | — | 30,374 | 396 | 6/23/14 | 2014 | ||||||||||||||||||||||
Wyle CAS Group: | ||||||||||||||||||||||||||||||
Huntsville, AL | (f) | 2,033 | 18,384 | — | 20,417 | 261 | 7/9/14 | 2013 | ||||||||||||||||||||||
TOTAL: | $ | 35,100 | $ | 50,549 | $ | 528,279 | $ | — | $ | 578,828 | $ | 4,574 | ||||||||||||||||||
(a) As of December 31, 2014, we owned 22 single-tenant properties and one multi-tenant commercial property. | ||||||||||||||||||||||||||||||
(b) The aggregate cost for federal income tax purposes was approximately $641.9 million. | ||||||||||||||||||||||||||||||
(c) The following is a reconciliation of total real estate carrying value for the years ended December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | — | ||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||
Acquisitions | 578,828 | — | ||||||||||||||||||||||||||||
Improvements | — | — | ||||||||||||||||||||||||||||
Total additions | 578,828 | — | ||||||||||||||||||||||||||||
Deductions | — | |||||||||||||||||||||||||||||
Cost of real estate sold | — | — | ||||||||||||||||||||||||||||
Total deductions | — | — | ||||||||||||||||||||||||||||
Balance, end of period | $ | 578,828 | $ | — | ||||||||||||||||||||||||||
(d) The following is a reconciliation of accumulated depreciation for the years ended December 31, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | — | ||||||||||||||||||||||||||
Additions | ||||||||||||||||||||||||||||||
Acquisitions - Depreciation Expense for Building & Tenant Improvements Acquired | 4,574 | — | ||||||||||||||||||||||||||||
Improvements - Depreciation Expense for Tenant Improvements & Building Equipment | — | — | ||||||||||||||||||||||||||||
Total additions | 4,574 | — | ||||||||||||||||||||||||||||
Deductions | — | — | ||||||||||||||||||||||||||||
Cost of real estate sold | — | — | ||||||||||||||||||||||||||||
Total deductions | — | — | ||||||||||||||||||||||||||||
Balance, end of period | $ | 4,574 | $ | — | ||||||||||||||||||||||||||
(e) The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the respective lease term and buildings are depreciated over 40 years. | ||||||||||||||||||||||||||||||
(f) Part of the Amended Credit Facility’s unencumbered borrowing base. As of December 31, 2014, the Company had $365.8 million outstanding under the Amended Credit Facility. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of presentation | The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. | |
Principles of consolidation | Principles of Consolidation and Basis of Presentation | |
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||
Use of estimates | Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Investment in and valuation of real estate assets | Investment in and Valuation of Real Estate Assets | |
Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred. | ||
The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows: | ||
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term | |
The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate-related assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates, or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value will be determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the year ended December 31, 2014 or for the period from February 13, 2013 to December 31, 2013. | ||
When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease a property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets. | ||
When a real estate asset is identified by the Company as being held for sale, the Company will cease depreciation and amortization of the assets related to the property, and will estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. | ||
Allocation of purchase price of real estate assets | Allocation of Purchase Price of Real Estate Assets | |
Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition related expenses are expensed as incurred. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The Company obtains an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. | ||
The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market leases relating to that lease would be recorded as an adjustment to rental income. | ||
The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. | ||
The Company may acquire certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events. Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrow funds to the Company or the seller or a combination thereof. Contingent consideration arrangements will be based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, will be recorded upon acquisition of the respective property at their estimated fair value, and any changes to the estimated fair value, subsequent to acquisition, will be reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. | ||
The Company will estimate the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable will initially be recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance will be amortized to interest expense over the term of the respective mortgage note payable. | ||
The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could impact the Company’s results of operations. | ||
Cash and cash equivalents | Cash and Cash Equivalents | |
The Company considers all highly liquid instruments with maturities when purchased of three months or less to be cash equivalents. The Company considers investments in highly liquid money market accounts to be cash equivalents. | ||
Rents and tenant receivables | Rents and Tenant Receivables | |
Rents and tenant receivables primarily include amounts to be collected in future periods related to the recognition of rental income on a straight-line basis over the lease term and cost recoveries due from tenants. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy, if any, are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. The Company records allowances for those balances that the Company deems to be uncollectible, including any amounts relating to straight-line rent receivables. | ||
Prepaid expenses | Prepaid Expenses | |
Prepaid expenses include expenses paid as of the balance sheet date that relate to future periods and will be expensed or reclassified to another account during the period to which the costs relate. Any amounts with no future economic benefit are charged to earnings when identified. | ||
Concentration of credit risk | Concentration of Credit Risk | |
As of December 31, 2014, the Company had cash on deposit at two financial institutions, in both of which the Company had deposits in excess of federally insured levels, totaling $10.6 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits. | ||
As of December 31, 2014, two of the Company’s tenants accounted for 18% and 13%, respectively, of the Company’s 2014 gross annualized rental revenues. The Company also had certain geographic concentrations in its property holdings. In particular, as of December 31, 2014, four of the Company’s properties were located in Ohio, one property was located in Arizona, and two properties were located in Alabama, which accounted for 21%, 18%, and 11%, respectively, of the Company’s 2014 total gross annualized rental revenues. In addition, the Company had tenants in the manufacturing, mining and natural resources, logistics and government and non-profit industries, which comprised 31%, 18%, 11%, and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. | ||
Deferred financing costs | Deferred Financing Costs | |
Deferred financing costs are capitalized and amortized on a straight-line basis over the term of the related financing agreement, which approximates the effective interest method. If a note payable is prepaid, any unamortized deferred financing costs related to the note payable would be expensed. Amortization of deferred financing costs, including any write-offs, for the year ended December 31, 2014 was $602,000 and was recorded in interest expense in the consolidated statements of operations. | ||
Offering and related costs | Offering and Related Costs | |
CCI II Advisors funds all of the organization and offering costs on the Company’s behalf (excluding selling commissions and dealer manager fees) and may be reimbursed for such costs up to 2.0% of aggregate gross proceeds from the Offering. A portion of the other organization and offering expenses may be underwriting compensation. As of December 31, 2014, CCI II Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the Company’s financial statements because such costs were not a liability to the Company as they exceeded 2.0% of gross proceeds from the Offering. As the Company raises additional proceeds from the Offering, these excess costs may become payable. | ||
Interest | Interest | |
Interest is charged to interest expense as it accrues. No interest costs were capitalized during the years ended December 31, 2014, or for the period from February 13, 2013 to December 31, 2013. | ||
Stockholder's equity | Stockholder’s Equity | |
As of December 31, 2014, the Company was authorized to issue 490.0 million shares of common stock and 10.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. The Board may amend the charter to authorize the issuance of additional shares of capital stock without obtaining shareholder approval. The par value of investor proceeds raised from the Offering will be classified as common stock, with the remainder allocated to capital in excess of par value. | ||
Distributions payable and distribution policy | Distributions Payable and Distribution Policy | |
In order to qualify and maintain its status as a REIT, the Company is required to, among other things, make distributions each taxable year equal to at least 90% of its taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). To the extent that funds are available, the Company intends to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of applicable record dates. | ||
The Board authorized a daily distribution, based on 365 days in the calendar year, of $0.001643836 per share (which equates to approximately 6.00% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 14, 2014 and ending on March 31, 2014. In addition, the Board authorized a daily distribution, based on 365 days in the calendar year, of $0.0017260274 per share (which equates to approximately 6.30% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on April 1, 2014 and ending on June 30, 2015. As of December 31, 2014, the Company had distributions payable of $1.3 million. | ||
Redeemable common stock | Redeemable Common Stock | |
Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in its consolidated balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value. | ||
Reportable segment | Reportable Segment | |
The Company’s commercial real estate investments consist primarily of single-tenant, income-producing necessity office and industrial properties, which are leased to creditworthy tenants under long-term net leases. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company evaluates operating performance on an overall portfolio level; therefore, the Company’s properties are one reportable segment. | ||
Revenue recognition | Revenue Recognition | |
Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred. | ||
Income taxes | Income Taxes | |
The Company intends to elect to be taxed as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2014, as it did not commence principal operations until January 13, 2014. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it or its subsidiaries may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. | ||
Earnings (loss) per share | Earnings (Loss) Per Share | |
Earnings (loss) per share are calculated based on the weighted average number of common shares outstanding during each period presented. Diluted loss per share considers the effect of any potentially dilutive share equivalents, of which the Company had none for the year ended December 31, 2014, or the period from February 26, 2013 (date of inception) to December 31, 2013. | ||
Recent accounting pronouncements | Recent Accounting Pronouncements | |
In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s consolidated financial statements because the Company did not have any discontinued operations. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s consolidated financial statements. | ||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The Company does not believe ASU 2014-15, when effective, will have a material impact on the Company’s consolidated financial statements because the Company currently does not have any conditions that give rise to substantial doubt about its ability to continue as a going concern. | ||
In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"), which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require the Company to revise its documentation regarding the consolidation or deconsolidation of such entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company does not believe ASU 2015-02, when effective, will have material impact on the Company’s financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Investment in and valuation of real estate | The estimated useful lives of the Company’s real estate assets by class are generally as follows: | |
Buildings | 40 years | |
Tenant improvements | Lesser of useful life or lease term | |
Intangible lease assets | Lease term |
Real_Estate_Acquisitions_Table
Real Estate Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Real Estate [Abstract] | ||||
Schedule of purchase price allocation | The following table summarizes the purchase price allocation (in thousands): | |||
December 31, 2014 | ||||
Land | $ | 50,549 | ||
Building and improvements | 528,279 | |||
Acquired in-place leases | 74,436 | |||
Acquired above-market leases | 1,562 | |||
Acquired below-market leases | (8,310 | ) | ||
Total purchase price | $ | 646,516 | ||
Business acquisition, pro forma information | The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the year ended December 31, 2014 (in thousands): | |||
Period from January 13, 2014 to December 31, 2014 | ||||
Pro forma basis (unaudited): | ||||
Revenue | $ | 53,440 | ||
Net income | $ | 13,618 | ||
Intangible_Lease_Assets_Tables
Intangible Lease Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Leases [Abstract] | |||||||||
Schedule of finite-lived intangible assets | The intangible lease assets consisted of the following (in thousands, except weighted average life remaining amounts): | ||||||||
As of December 31, | |||||||||
2014 | 2013 | ||||||||
In-place leases, net (with accumulated amortization of $1,726 and $0, respectively and a weighted average life remaining of 11.4 and 0 years, respectively) | $ | 72,710 | $ | — | |||||
Acquired above market lease, (with a weighted average life remaining of 12.3 and 0 years, respectively) | 1,562 | — | |||||||
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense related to the intangible lease assets as of December 31, 2014, for each of the five succeeding fiscal years is a follows (in thousands): | ||||||||
Amortization | |||||||||
Years Ending December 31, | In-Place Leases | Above Market Leases | |||||||
2015 | $ | 6,482 | $ | 125 | |||||
2016 | 6,482 | 125 | |||||||
2017 | 6,482 | 125 | |||||||
2018 | 6,482 | 125 | |||||||
2019 | 6,482 | 125 | |||||||
Credit_Facilities_and_Notes_Pa1
Credit Facilities and Notes Payable (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of maturities long-term debt | The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt for the five years and thereafter subsequent to year ended December 31, 2014 (in thousands): | |||||||||||||||
Annual Maturities | Principal Repayments | |||||||||||||||
2015 | $ | — | ||||||||||||||
2016 | 30,000 | |||||||||||||||
2017 | — | |||||||||||||||
2018 | 165,816 | |||||||||||||||
2019 | 200,000 | |||||||||||||||
Thereafter | 35,100 | |||||||||||||||
Total | $ | 430,916 | ||||||||||||||
Schedule of debt | The following table summarizes the debt activity for the year ended December 31, 2014 (in thousands): | |||||||||||||||
During the Year Ended December 31, 2014 | ||||||||||||||||
Balance as of | Debt Issuance | Repayments | Balance as of December 31, 2014 | |||||||||||||
December 31, 2013 | ||||||||||||||||
Fixed rate debt | $ | — | $ | 35,100 | $ | — | $ | 35,100 | ||||||||
Credit facility | — | 427,731 | (61,915 | ) | 365,816 | |||||||||||
Line of credit with affiliates | — | 94,800 | (64,800 | ) | 30,000 | |||||||||||
Total | $ | — | $ | 557,631 | $ | (126,715 | ) | $ | 430,916 | |||||||
Acquired_Below_Market_Lease_In1
Acquired Below Market Lease Intangibles (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Schedule of finite-lived intangible liabilities | Acquired below market lease intangibles consisted of the following (in thousands, except weighted average life remaining amounts): | ||||||||
As of December 31, | As of December 31, | ||||||||
2014 | 2013 | ||||||||
Acquired below market lease intangibles, less accumulated amortization of $88 and $0, respectively (with a weighted average life remaining of 12.4 and 0 years, respectively) | $ | 8,222 | $ | — | |||||
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization of the intangible lease liabilities as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands): | ||||||||
Year ended December 31, | Amortization of Below Market Leases | ||||||||
2015 | $ | 717 | |||||||
2016 | 717 | ||||||||
2017 | 717 | ||||||||
2018 | 717 | ||||||||
2019 | 717 | ||||||||
RelatedParty_Transactions_and_1
Related-Party Transactions and Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of related party transactions | The Company incurred fees and expense reimbursements as shown in the table below (in thousands) for services provided by CCI II Advisors and its affiliates related to the services described above for the periods indicated. | |||||||
2014 | 2013 | |||||||
Offering: | ||||||||
Selling commissions | $ | 15,829 | $ | — | ||||
Selling commissions reallowed by CCC | $ | 15,829 | $ | — | ||||
Dealer manager fees | $ | 4,809 | $ | — | ||||
Dealer manager fees reallowed by CCC | $ | 2,358 | $ | — | ||||
Other offering costs | $ | 4,898 | $ | — | ||||
The Company recorded fees and expense reimbursements as shown in the table below (in thousands) for services provided by CCI II Advisors and its affiliates related to the services described above during the periods indicated: | ||||||||
2014 | 2013 | |||||||
Acquisition and Operations: | ||||||||
Acquisition fees and expenses | $ | 13,170 | $ | — | ||||
Advisory fees and expenses | $ | 1,630 | $ | — | ||||
Operating expenses | $ | 411 | $ | — | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Income Tax Disclosure [Abstract] | ||||
Schedule of dividends and distributions | The following table shows the character of the distributions paid on a percentage basis for the year ended December 31, 2014. | |||
Year Ended December 31, | ||||
Character of Distributions (unaudited): | 2014 | |||
Ordinary dividends | 55 | % | ||
Nontaxable distributions | 45 | % | ||
Total | 100 | % |
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Schedule of future minimum rental payments for operating leases | The future minimum rental income from the Company’s investment in real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of December 31, 2014 is as follows (in thousands): | ||||
Year ending December 31, | Future Minimum Rental Income | ||||
2015 | $ | 48,986 | |||
2016 | 48,986 | ||||
2017 | 48,986 | ||||
2018 | 48,986 | ||||
2019 | 48,986 | ||||
Thereafter | 304,670 | ||||
Total | $ | 549,600 | |||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of quarterly financial information | In the opinion of management, the information for the interim period presented includes all adjustments, which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period. | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Revenues | $ | — | $ | — | $ | — | $ | — | |||||||||
Operating loss | $ | — | $ | — | $ | (18 | ) | $ | (82 | ) | |||||||
Net loss | $ | — | $ | — | $ | (18 | ) | $ | (82 | ) | |||||||
Basic and diluted net loss per common share (1) | $ | — | $ | — | $ | (0.99 | ) | $ | (4.39 | ) | |||||||
Distributions declared per common share | $ | — | $ | — | $ | — | $ | — | |||||||||
December 31, 2014 | |||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||
Revenues | $ | 458 | $ | 1,428 | $ | 5,589 | $ | 10,371 | |||||||||
Operating loss | $ | (523 | ) | $ | (3,927 | ) | $ | (187 | ) | $ | (3,887 | ) | |||||
Net loss | $ | (803 | ) | $ | (4,304 | ) | $ | (1,305 | ) | $ | (6,304 | ) | |||||
Basic and diluted net loss per common share (1) | $ | (0.08 | ) | $ | (0.42 | ) | $ | (0.13 | ) | $ | (0.62 | ) | |||||
Distributions declared per common share | $ | 0.15 | $ | 0.16 | $ | 0.16 | $ | 0.18 | |||||||||
(1) Based on the weighted average number of shares outstanding as of December 31, 2013 and December 31, 2014, respectively. |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 10 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2014 | Feb. 26, 2013 | Dec. 04, 2014 | Jan. 13, 2013 | Apr. 01, 2014 | Jan. 14, 2014 | Mar. 20, 2013 | Sep. 17, 2013 | Jan. 13, 2014 | Jan. 10, 2014 | |
states | |||||||||||
Organization and business [Line Items] | |||||||||||
Due to affiliates | $0 | $23,086,000 | |||||||||
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 | |||||||||
Share price (in dollars per share) | $10 | $10 | |||||||||
Common stock shares issued | 20,000 | 24,650,094 | |||||||||
Issuance of common stock | 200,000 | 244,906,000 | |||||||||
Number of states in which entity owns properties | 15 | ||||||||||
Percentage of rentable space leased | 100.00% | ||||||||||
Common Stock | |||||||||||
Organization and business [Line Items] | |||||||||||
Share price (in dollars per share) | $10 | ||||||||||
Issuance of common stock, shares (in shares) | 20,000 | 24,631,770 | 20,000 | ||||||||
Issuance of common stock | 0 | 246,000 | 200,000 | ||||||||
CCI II OP | |||||||||||
Organization and business [Line Items] | |||||||||||
General partner partnership interest percentage | 100.00% | ||||||||||
Consolidated Properties | |||||||||||
Organization and business [Line Items] | |||||||||||
Number of real estate properties | 23 | ||||||||||
Gross rentable square feet | 7,200,000 | ||||||||||
RCAP Agreement Case | ARCP | |||||||||||
Organization and business [Line Items] | |||||||||||
Amount received from settlement | 60,000,000 | ||||||||||
Initial public offering | |||||||||||
Organization and business [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 250,000,000 | ||||||||||
Share price (in dollars per share) | $10 | ||||||||||
Common stock shares issued | 24,600,000 | ||||||||||
Initial public offering | Common Stock | |||||||||||
Organization and business [Line Items] | |||||||||||
Issuance of common stock | 244,900,000 | ||||||||||
Organization and offering costs, selling commissions and dealer manager fees | 25,500,000 | ||||||||||
Initial public offering | Escrow deposits | Common Stock | |||||||||||
Organization and business [Line Items] | |||||||||||
Issuance of common stock, shares (in shares) | 275,000 | ||||||||||
Initial public offering | Distribution reinvestment plan | |||||||||||
Organization and business [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 50,000,000 | ||||||||||
Share price (in dollars per share) | $9.50 | $9.50 | |||||||||
Initial public offering | Distribution reinvestment plan | Escrow deposits | |||||||||||
Organization and business [Line Items] | |||||||||||
Common stock, value, subscriptions | $2,500,000 | $2,500,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 10 Months Ended | 12 Months Ended | |||
Apr. 01, 2014 | Jan. 14, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Apr. 01, 2014 | Jan. 14, 2014 | |
financial_institutions | ||||||
Class of Stock [Line Items] | ||||||
Allowance for doubtful accounts receivable | $0 | $0 | ||||
Number of financial institutions | 2 | |||||
Amortization of deferred financing costs | 0 | 602,000 | ||||
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 | ||||
Preferred stock, shares authorized | 0 | 10,000,000 | ||||
Common stock, par value | $0.01 | $0.01 | ||||
Preferred stock, par value (in usd per share) | $0 | $0.01 | ||||
Common stock, shares outstanding | 20,000 | 24,650,094 | ||||
Dividend, common stock and preferred stock, number of days in the calendar year for the daily distribution | 365 days | 365 days | ||||
Daily distributions payable amount per share | $0.00 | $0.00 | ||||
Dividends, Yield | 6.30% | 6.00% | ||||
Share price (in dollars per share) | $10 | $10 | $10 | $10 | ||
Distributions payable | 0 | 1,314,000 | ||||
Maximum | Advisors | Other organization and offering expenses | ||||||
Class of Stock [Line Items] | ||||||
Organization and offering expense limit, percent | 2.00% | |||||
Buildings | ||||||
Class of Stock [Line Items] | ||||||
Acquired real estate asset, useful life | 40 years | |||||
Demand Deposits | Credit concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Deposits in excess of federally insured levels | $10,600,000 | |||||
Sales Revenue, Services, Net | Customer concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Number of tenants | 2 | |||||
Tenant One | Sales Revenue, Services, Net | Customer concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 18.00% | |||||
Tenant Two | Sales Revenue, Services, Net | Customer concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 13.00% | |||||
ALABAMA | Sales Revenue, Services, Net | Geographic concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 11.00% | |||||
Number of real estate properties | 2 | |||||
ARIZONA | Sales Revenue, Services, Net | Geographic concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 18.00% | |||||
Number of real estate properties | 1 | |||||
OHIO | Sales Revenue, Services, Net | Geographic concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 21.00% | |||||
Number of real estate properties | 4 | |||||
Government and Not-for-profit Industry | Sales Revenue, Services, Net | Credit concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 10.00% | |||||
Logistics Industry [Member] | Sales Revenue, Services, Net | Credit concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 11.00% | |||||
Manufacturing Industry [Member] | Sales Revenue, Services, Net | Credit concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 31.00% | |||||
Mining and Natural Resources Industry | Sales Revenue, Services, Net | Credit concentration risk | ||||||
Class of Stock [Line Items] | ||||||
Concentration risk percentage | 18.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair value, inputs, level 2, Affiliated entity, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Estimate of fair value | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Notes payable | $431.30 |
Carrying (reported) amount, fair value disclosure | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Notes payable | $430.90 |
Real_Estate_Acquisitions_Detai
Real Estate Acquisitions (Details) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||
Total purchase price | $646,516,000 | $646,516,000 | $646,516,000 | ||||||||
Revenues | 10,371,000 | 5,589,000 | 1,428,000 | 458,000 | 0 | 0 | 0 | 0 | 0 | 17,846,000 | |
Acquisition related expenses | 0 | 14,726,000 | |||||||||
Pro forma basis | |||||||||||
Escrowed funds for acquisition of real estate investments | 0 | 60,378,000 | |||||||||
Acquisitions, 2014 | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired (in properties) | 23 | ||||||||||
Aggregate purchase price | 646,500,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||
Land | 50,549,000 | 50,549,000 | 50,549,000 | ||||||||
Building and improvements | 528,279,000 | 528,279,000 | 528,279,000 | ||||||||
Revenue since acquisition date | 12,700,000 | ||||||||||
Acquisition related expenses | 14,700,000 | ||||||||||
Pro forma basis | |||||||||||
Revenue | 53,440,000 | ||||||||||
Net income | 13,618,000 | ||||||||||
Acquisitions, 2014 | Acquired in-place leases | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||
Acquired in-place leases | 74,436,000 | 74,436,000 | 74,436,000 | ||||||||
Acquisitions, 2014 | Acquired above-market leases | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||
Acquired in-place leases | 1,562,000 | 1,562,000 | 1,562,000 | ||||||||
Acquisitions, 2014 | Acquired below-market leases | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||||||||
Acquired below-market leases | ($8,310,000) | ($8,310,000) | ($8,310,000) |
Intangible_Lease_Assets_Detail
Intangible Lease Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
In-place leases, less accumulated amortization of $1,726 and $0, respectively | $74,272,000 | $0 |
In-place leases, accumulated amortization | 1,726,000 | 0 |
Acquired in-place leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
In-place leases, less accumulated amortization of $1,726 and $0, respectively | 72,710,000 | 0 |
In-place leases, accumulated amortization | 1,726,000 | 0 |
In-place leases, useful life | 11 years 4 months 24 days | |
Amortization of intangible assets | 1,700,000 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | 6,482,000 | |
2016 | 6,482,000 | |
2017 | 6,482,000 | |
2018 | 6,482,000 | |
2019 | 6,482,000 | |
Above Market Leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
In-place leases, less accumulated amortization of $1,726 and $0, respectively | 1,562,000 | 0 |
In-place leases, accumulated amortization | 0 | 0 |
In-place leases, useful life | 12 years 3 months 18 days | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | 125,000 | |
2016 | 125,000 | |
2017 | 125,000 | |
2018 | 125,000 | |
2019 | $125,000 |
Credit_Facilities_and_Notes_Pa2
Credit Facilities and Notes Payable (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Nov. 30, 2013 | |
Debt Instrument [Line Items] | ||||
Total debt, ending balance | $430,916,000 | |||
Debt, weighted average interest rate | 2.74% | |||
Weighted average remaining term | 4 years 4 months 24 days | |||
Debt | ||||
Fixed rate debt, beginning balance | 0 | |||
Debt issuance | 557,631,000 | |||
Debt instrument, decrease, repayments | -126,715,000 | |||
Fixed rate debt, ending balance | 430,916,000 | |||
Line of credit with affiliates, ending balance | 30,000,000 | 0 | ||
Underlying collateral pool | 591,400,000 | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||||
2015 | 0 | |||
2016 | 30,000,000 | |||
2017 | 0 | |||
2018 | 165,816,000 | |||
2019 | 200,000,000 | |||
Thereafter | 35,100,000 | |||
Loans Payable | Fixed rate debt | ||||
Debt | ||||
Fixed rate debt, beginning balance | 0 | |||
Debt issuance | 35,100,000 | |||
Debt instrument, decrease, repayments | 0 | |||
Fixed rate debt, ending balance | 35,100,000 | |||
Effective interest rate | 4.08% | |||
Loans Payable | JPMorgan Chase, Revolving Credit Facility | Term Loan | ||||
Debt | ||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | |||
Line of credit | ||||
Debt | ||||
Fixed rate debt, ending balance | 365,800,000 | |||
Line of credit facilities, borrowing base calculation, percentage applied to the value of qualified properties | 65.00% | |||
Line of credit | JPMorgan Chase, credit facility | ||||
Debt | ||||
Line of credit facility minimum value of total assets required to avoid early repayment | 1,000,000,000 | |||
Line of credit | JPMorgan Chase, credit facility | Revolving credit facility | ||||
Debt | ||||
Fixed rate debt, beginning balance | 0 | |||
Debt issuance | 427,731,000 | |||
Debt instrument, decrease, repayments | -61,915,000 | |||
Fixed rate debt, ending balance | 365,816,000 | |||
Line of credit facility, maximum borrowing capacity | 200,000,000 | 100,000,000 | 225,000,000 | |
Maximum percentage reserved for letters of credit | 15.00% | |||
Maximum percentage reserved for short term advances | 10.00% | |||
Maximum amount reserved for short term advances | 50,000,000 | |||
Maximum days outstanding for short term advance | 10 days | |||
Line of credit facility potential borrowing capacity | 1,250,000,000 | |||
Line of credit facility, remaining borrowing capacity | 18,600,000 | |||
Line of credit | JPMorgan Chase, credit facility | Term Loan and Revolving Line of Credit | ||||
Debt | ||||
Minimum consolidated net worth required by debt covenant | 194,900,000 | |||
Line of credit | JPMorgan Chase, credit facility, base rate committed loan | ||||
Debt Instrument [Line Items] | ||||
Debt, weighted average interest rate | 2.64% | |||
Line of credit | JPMorgan Chase, credit facility, base rate committed loan | LIBOR | ||||
Debt | ||||
Debt instrument, basis spread on variable rate | 2.45% | |||
Line of credit | JPMorgan Chase, credit facility, base rate committed loan | Federal Funds Effective Swap Rate | ||||
Debt | ||||
Debt instrument, basis spread on variable rate | 0.50% | |||
Line of credit | Affiliated Line of Credit, Series C, LLC Loan | Revolving credit facility | ||||
Debt | ||||
Fixed rate debt, beginning balance | 0 | |||
Debt issuance | 94,800,000 | |||
Debt instrument, decrease, repayments | -64,800,000 | |||
Fixed rate debt, ending balance | 30,000,000 | |||
Line of credit with affiliates, ending balance | 30,000,000 | |||
Line of credit facility, current borrowing capacity | 60,000,000 | |||
Line of credit facility, remaining borrowing capacity | 30,000,000 | |||
Stated interest rate | 2.36% | |||
Line of credit | Affiliated Line of Credit, Series C, LLC Loan | Revolving credit facility | LIBOR | ||||
Debt | ||||
Debt instrument, basis spread on variable rate | 2.20% | |||
Line of credit | JPMorgan Chase, Revolving Credit Facility | ||||
Debt | ||||
Gross real estate assets, net of gross intangible lease liabilities | $56,900,000 | |||
Minimum | Line of credit | JPMorgan Chase, credit facility | Term Loan and Revolving Line of Credit | ||||
Debt | ||||
Debt covenant leverage ratio | 70.00% | |||
Maximum | Line of credit | JPMorgan Chase, credit facility | Term Loan and Revolving Line of Credit | ||||
Debt | ||||
Debt covenant fixed charge coverage ratio | 1.5 |
Acquired_Below_Market_Lease_In2
Acquired Below Market Lease Intangibles (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible liabilities, net | $8,222 | $0 |
Acquired below-market leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-lived intangible liabilities, accumulated amortization | 0 | 0 |
Finite-live intangible liabilities, useful life | 12 years 4 months 24 days | |
Amortization of intangible liabilities | 88 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2015 | 717 | |
2016 | 717 | |
2017 | 717 | |
2018 | 717 | |
2019 | $717 |
RelatedParty_Transactions_and_2
Related-Party Transactions and Arrangements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $23,086,000 | $0 |
Line of credit with affiliates | 30,000,000 | 0 |
Average invested assets between $0 to $2 billion | ||
Related Party Transaction [Line Items] | ||
Annualized rate percentage paid on average invested asset | 0.75% | |
Average invested assets between $2 billion to $4 billion | ||
Related Party Transaction [Line Items] | ||
Annualized rate percentage paid on average invested asset | 0.70% | |
Average invested assets over $4 bilion | ||
Related Party Transaction [Line Items] | ||
Annualized rate percentage paid on average invested asset | 0.65% | |
Maximum | Average invested assets between $0 to $2 billion | ||
Related Party Transaction [Line Items] | ||
Average invested assets | 2,000,000,000 | |
Maximum | Average invested assets between $2 billion to $4 billion | ||
Related Party Transaction [Line Items] | ||
Average invested assets | 4,000,000,000 | |
Minimum | Average invested assets between $0 to $2 billion | ||
Related Party Transaction [Line Items] | ||
Average invested assets | 0 | |
Minimum | Average invested assets between $2 billion to $4 billion | ||
Related Party Transaction [Line Items] | ||
Average invested assets | 2,000,000,000 | |
Minimum | Average invested assets over $4 bilion | ||
Related Party Transaction [Line Items] | ||
Average invested assets | 4,000,000,000 | |
Advisors | ||
Related Party Transaction [Line Items] | ||
Cumulative noncompounded annual return | 8.00% | |
Advisors | Minimum | ||
Related Party Transaction [Line Items] | ||
Operating expense reimbursement percent | 2.00% | |
Operating expense reimbursement percent of net income | 25.00% | |
Selling commissions | Dealer manager commission | Maximum | ||
Related Party Transaction [Line Items] | ||
Commissions percentage on stock sales and related dealer manager fees | 7.00% | |
Selling commissions | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 15,829,000 | 0 |
Selling commissions reallowed by cole capital | Dealer manager commission reallowed | ||
Related Party Transaction [Line Items] | ||
Commissions percentage on stock sales and related dealer manager fees | 100.00% | |
Selling commissions reallowed by cole capital | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 15,829,000 | 0 |
Dealer manager fee | Dealer manager | ||
Related Party Transaction [Line Items] | ||
Commissions percentage on stock sales and related dealer manager fees | 2.00% | |
Dealer manager fee | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 4,809,000 | 0 |
Other organization and offering expenses | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 4,898,000 | 0 |
Other organization and offering expenses | Advisors | Maximum | ||
Related Party Transaction [Line Items] | ||
Organization and offering expense limit, percent | 2.00% | |
Acquisition fees and expenses | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 13,170,000 | 0 |
Acquisition fees and expenses | Advisors | Maximum | ||
Related Party Transaction [Line Items] | ||
Acquisition and advisory fee | 6.00% | |
Acquisition fees and expenses | Advisors | Maximum | Contract purchase price of each asset | ||
Related Party Transaction [Line Items] | ||
Acquisition and advisory fee | 2.00% | |
Acquisitions and operations costs | Advisors | ||
Related Party Transaction [Line Items] | ||
Due to affiliate | 4,700,000 | |
Property sales commission | Advisors | Contract sale price of each property | Gross revenue for single-tenant properties | ||
Related Party Transaction [Line Items] | ||
Commissions performance and other fees percent | 1.00% | |
Property portfolio | Advisors | Maximum | ||
Related Party Transaction [Line Items] | ||
Commissions performance and other fees percent | 6.00% | |
Performance fee | Advisors | ||
Related Party Transaction [Line Items] | ||
Commissions performance and other fees percent | 15.00% | |
Performance fee | Advisors | Listing commission | ||
Related Party Transaction [Line Items] | ||
Commissions performance and other fees percent | 15.00% | |
Brokerage commission fee | Advisors | Maximum | ||
Related Party Transaction [Line Items] | ||
Commissions performance and other fees percent | 50.00% | |
Dealer manager fee reallowed by cole capital | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 2,358,000 | 0 |
Advisory Fees and Expenses | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 1,630,000 | 0 |
Operating expenses | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | 411,000 | 0 |
Revolving credit facility | Affiliated Line of Credit, Series C, LLC Loan | Line of credit | ||
Related Party Transaction [Line Items] | ||
Line of credit with affiliates | 30,000,000 | |
Revolving credit facility | Affiliated Line of Credit, Series C, LLC Loan | Line of credit | Series C, LLC | ||
Related Party Transaction [Line Items] | ||
Interest expense due | 280,000 | |
Waived fees and expense reimbursements | Advisors | ||
Related Party Transaction [Line Items] | ||
Fees and expense reimbursements from related party services | $1,500,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 10 Months Ended | 12 Months Ended | 0 Months Ended | 10 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 26, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 01, 2014 | Jan. 14, 2014 | Sep. 17, 2013 | Mar. 20, 2013 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 490,000,000 | 490,000,000 | 490,000,000 | 490,000,000 | |||||
Preferred stock, shares authorized | 0 | 10,000,000 | 0 | 0 | |||||
Common stock, par value | $0.01 | $0.01 | 0.01 | 0.01 | |||||
Share price (in dollars per share) | $10 | $10 | |||||||
Preferred stock, par value (in usd per share) | $0 | $0.01 | 0 | 0 | |||||
Dividend reinvestment plan, termination notice period | 10 days | ||||||||
Common stock issued through distribution reinvestment plan | $0 | $2,833 | |||||||
Stock Repurchased and Retired During Period, Value | 17 | ||||||||
Stock redemption program, number of shares authorized to be repurchased, percentage of weighted average number of shares outstanding | 5.00% | ||||||||
Stock redemption program, redemption price per share, percentage of amount paid per share, after one year | 95.00% | ||||||||
Stock redemption program, plan redemption price per share, percentage of amount paid per share, after two year | 97.50% | ||||||||
Stock redemption program, plan redemption price per share, percentage of amount paid per share, after three year | 100.00% | ||||||||
Stock redemption program, termination notice period | 30 days | ||||||||
Maximum | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock redemption program, number of shares authorized to be repurchased, percentage of weighted average number of shares outstanding | 1.25% | ||||||||
Stock redemption program, redemption priority, shares | 250 | ||||||||
Initial public offering | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 250,000,000 | ||||||||
Share price (in dollars per share) | $10 | ||||||||
Initial public offering | Distribution reinvestment plan | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 50,000,000 | ||||||||
Share price (in dollars per share) | $9.50 | $9.50 | |||||||
Common Stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Issuance of common stock, shares (in shares) | 24,631,770 | 20,000 | 20,000 | ||||||
Share price (in dollars per share) | $10 | ||||||||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 298,000 | 0 | |||||||
Common stock issued through distribution reinvestment plan | 2,800 | ||||||||
Stock Repurchased and Retired During Period, Value | $17 | ||||||||
Stock Repurchased and Retired During Period, Shares | 1,676 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Ordinary dividends | 55.00% |
Nontaxable distributions | 45.00% |
Dividends, Percentage | 100.00% |
Property, plant and equipment, land and real estate assets, net tax basis | $641,900,000 |
State and local income tax and franchise tax expense | $110,000 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Leases [Abstract] | |
Operating Leases of lessor, weighted average remaining lease term | 11 years 2 months 12 days |
2015 | $48,986 |
2016 | 48,986 |
2017 | 48,986 |
2018 | 48,986 |
2019 | 48,986 |
Thereafter | 304,670 |
Total | $549,600 |
Quarterly_Results_Unaudited_De
Quarterly Results (Unaudited) (Details) (USD $) | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenues | $10,371 | $5,589 | $1,428 | $458 | $0 | $0 | $0 | $0 | $0 | $17,846 | |||||||||
Operating loss | -3,887 | -187 | -3,927 | -523 | -82 | -18 | 0 | 0 | -100 | -8,524 | |||||||||
Net loss | ($6,304) | ($1,305) | ($4,304) | ($803) | ($82) | ($18) | $0 | $0 | ($100) | ($100) | ($12,716) | ||||||||
Basic and diluted net loss per common share (in dollars per share) | ($0.62) | [1] | ($0.13) | [1] | ($0.42) | [1] | ($0.08) | [1] | ($4.39) | [1] | ($0.99) | [1] | $0 | [1] | $0 | [1] | ($5.38) | ($1.25) | |
Distributions declared per common share (in dollars per share) | $0.18 | $0.16 | $0.16 | $0.15 | $0 | $0 | $0 | $0 | |||||||||||
[1] | Based on the weighted average number of shares outstanding as of December 31, 2013 and December 31, 2014, respectively. |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 10 Months Ended | 12 Months Ended | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 25, 2015 | Mar. 27, 2015 |
Subsequent Event [Line Items] | ||||
Issuance of common stock | $200 | $244,906 | ||
Notes payable | 0 | 430,916 | ||
Subsequent Event | Loans Payable | JPMorgan Chase, Revolving Credit Facility | Term Loan | ||||
Subsequent Event [Line Items] | ||||
Effective interest rate | 3.79% | |||
Subsequent Event | Loans Payable | Two Notes Payable Established in Early 2015 | ||||
Subsequent Event [Line Items] | ||||
Notes payable | 135,400 | |||
Subsequent Event | Loans Payable | Note payable one established in early 2015 | ||||
Subsequent Event [Line Items] | ||||
Effective interest rate | 3.35% | |||
Subsequent Event | Loans Payable | Note payable two established in early 2015 | ||||
Subsequent Event [Line Items] | ||||
Effective interest rate | 3.29% | |||
Initial public offering | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Issuance of common stock | $263,700 | |||
Issuance of common stock (in shares) | 26,500,000 |
Schedule_III_Details
Schedule III (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
single_tenant_property | |||
multi-tenant_property | |||
Real Estate and Accumulated Depreciation [Line Items] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances | $35,100,000 | ||
Initial Costs to Company | |||
Land | 50,549,000 | ||
Buildings and Improvements | 528,279,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 578,828,000 | [1],[2] | 0 |
Accumulated Depreciation | 4,574,000 | [3],[4] | 0 |
Number of single-tenant commercial properties owned | 22 | ||
Number of multi-tenant commercial properties owned | 1 | ||
Aggregate cost for federal income tax purposes | 641,900,000 | ||
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance, beginning of period | 0 | 0 | |
Additions | |||
Acquisitions | 578,828,000 | 0 | |
Improvements | 0 | 0 | |
Total additions | 578,828,000 | 0 | |
Deductions | |||
Deductions | 0 | ||
Cost of real estate sold | 0 | 0 | |
Total deductions | 0 | 0 | |
Balance, end of period | 578,828,000 | [1],[2] | 0 |
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance, beginning of period | 0 | 0 | |
Additions | |||
Acquisitions - Depreciation Expense for Building & Tenant Improvements Acquired | 4,574,000 | 0 | |
Improvements - Depreciation Expense for Tenant Improvements & Building Equipment | 0 | 0 | |
Total additions | 4,574,000 | 0 | |
Deductions | |||
Deductions | 0 | 0 | |
Cost of real estate sold | 0 | 0 | |
Total deductions | 0 | 0 | |
Balance, end of period | 4,574,000 | [3],[4] | 0 |
Debt, Long-term and Short-term, Combined Amount | 430,916,000 | 0 | |
3 Phoenix, Inc | Wake Forest, NC | |||
Initial Costs to Company | |||
Land | 973,000 | ||
Buildings and Improvements | 8,330,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 9,303,000 | [1],[2] | |
Accumulated Depreciation | 62,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 9,303,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 62,000 | [3],[4] | |
3D Systems | Rock Hill, SC | |||
Initial Costs to Company | |||
Land | 780,000 | ||
Buildings and Improvements | 8,082,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 8,862,000 | [1],[2] | |
Accumulated Depreciation | 63,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 8,862,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 63,000 | [3],[4] | |
Amazon.com, Inc | Petersburg, VA | |||
Initial Costs to Company | |||
Land | 3,866,000 | ||
Buildings and Improvements | 48,404,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 52,270,000 | [1],[2] | |
Accumulated Depreciation | 302,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 52,270,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 302,000 | [3],[4] | |
Amcor Rigid Plastics USA, Inc | Franklin, IN | |||
Initial Costs to Company | |||
Land | 1,373,000 | ||
Buildings and Improvements | 16,530,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 17,903,000 | [1],[2] | |
Accumulated Depreciation | 233,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 17,903,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 233,000 | [3],[4] | |
Amcor Rigid Plastics USA, Inc | Bellevue, OH 1 | |||
Initial Costs to Company | |||
Land | 611,000 | ||
Buildings and Improvements | 9,171,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 9,782,000 | [1],[2] | |
Accumulated Depreciation | 72,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 9,782,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 72,000 | [3],[4] | |
Amcor Rigid Plastics USA, Inc | Bellevue, OH 2 | |||
Initial Costs to Company | |||
Land | 498,000 | ||
Buildings and Improvements | 7,960,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 8,458,000 | [1],[2] | |
Accumulated Depreciation | 62,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 8,458,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 62,000 | [3],[4] | |
Avnet, Inc | San Antonio, TX | |||
Initial Costs to Company | |||
Land | 1,619,000 | ||
Buildings and Improvements | 9,611,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 11,230,000 | [1],[2] | |
Accumulated Depreciation | 13,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 11,230,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 13,000 | [3],[4] | |
BTS Procter & Gamble Distributing | Union, OH | |||
Initial Costs to Company | |||
Land | 3,537,000 | ||
Buildings and Improvements | 68,961,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 72,498,000 | [1],[2] | |
Accumulated Depreciation | 74,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 72,498,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 74,000 | [3],[4] | |
County of Santa Clara | San Jose, CA | |||
Real Estate and Accumulated Depreciation [Line Items] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances | 14,314,000 | ||
Initial Costs to Company | |||
Land | 4,561,000 | ||
Buildings and Improvements | 17,508,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 22,069,000 | [1],[2] | |
Accumulated Depreciation | 471,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 22,069,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 471,000 | [3],[4] | |
E.I. Dupont de Nemours and Company | Johnston, CO | |||
Initial Costs to Company | |||
Land | 1,587,000 | ||
Buildings and Improvements | 33,027,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 34,614,000 | [1],[2] | |
Accumulated Depreciation | 39,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 34,614,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 39,000 | [3],[4] | |
FedEx Ground Package System, Inc | Johnston, CO | |||
Initial Costs to Company | |||
Land | 1,285,000 | ||
Buildings and Improvements | 12,182,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 13,467,000 | [1],[2] | |
Accumulated Depreciation | 98,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 13,467,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 98,000 | [3],[4] | |
FedEx Ground Package System, Inc | St. Joseph, MO | |||
Initial Costs to Company | |||
Land | 414,000 | ||
Buildings and Improvements | 4,304,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 4,718,000 | [1],[2] | |
Accumulated Depreciation | 70,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 4,718,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 70,000 | [3],[4] | |
FedEx Ground Package System, Inc | Fort Dodge, IA | |||
Initial Costs to Company | |||
Land | 123,000 | ||
Buildings and Improvements | 2,414,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 2,537,000 | [1],[2] | |
Accumulated Depreciation | 34,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 2,537,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 34,000 | [3],[4] | |
FedEx Ground Package System, Inc | Las Vegas, NV | |||
Real Estate and Accumulated Depreciation [Line Items] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances | 11,541,000 | ||
Initial Costs to Company | |||
Land | 1,838,000 | ||
Buildings and Improvements | 16,439,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 18,277,000 | [1],[2] | |
Accumulated Depreciation | 248,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 18,277,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 248,000 | [3],[4] | |
Freeport-Mcmoran Corporation | Phoenix, AZ | |||
Initial Costs to Company | |||
Land | 0 | ||
Buildings and Improvements | 96,553,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 96,553,000 | [1],[2] | |
Accumulated Depreciation | 330,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 96,553,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 330,000 | [3],[4] | |
Green Mountain Coffee | Burlington, MA | |||
Initial Costs to Company | |||
Land | 4,612,000 | ||
Buildings and Improvements | 31,175,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 35,787,000 | [1],[2] | |
Accumulated Depreciation | 495,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 35,787,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 495,000 | [3],[4] | |
ODW | Columbus, OH | |||
Initial Costs to Company | |||
Land | 3,052,000 | ||
Buildings and Improvements | 22,096,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 25,148,000 | [1],[2] | |
Accumulated Depreciation | 325,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 25,148,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 325,000 | [3],[4] | |
Owens Corning | Fuera Bush, NY | |||
Initial Costs to Company | |||
Land | 1,134,000 | ||
Buildings and Improvements | 10,218,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 11,352,000 | [1],[2] | |
Accumulated Depreciation | 129,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 11,352,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 129,000 | [3],[4] | |
Protein Simple | San Jose, CA | |||
Initial Costs to Company | |||
Land | 10,797,000 | ||
Buildings and Improvements | 21,611,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 32,408,000 | [1],[2] | |
Accumulated Depreciation | 138,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 32,408,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 138,000 | [3],[4] | |
RF Micro Devices | Greensboro, NC | |||
Real Estate and Accumulated Depreciation [Line Items] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances | 9,245,000 | ||
Initial Costs to Company | |||
Land | 865,000 | ||
Buildings and Improvements | 11,155,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 12,020,000 | [1],[2] | |
Accumulated Depreciation | 156,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 12,020,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 156,000 | [3],[4] | |
State of Alabama | Birmingham, AL | |||
Initial Costs to Company | |||
Land | 1,950,000 | ||
Buildings and Improvements | 26,831,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 28,781,000 | [1],[2] | |
Accumulated Depreciation | 503,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 28,781,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 503,000 | [3],[4] | |
Subaru of America | Lebanon, IN | |||
Initial Costs to Company | |||
Land | 3,041,000 | ||
Buildings and Improvements | 27,333,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 30,374,000 | [1],[2] | |
Accumulated Depreciation | 396,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 30,374,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 396,000 | [3],[4] | |
Wyle CAS Group | Huntsville, AL | |||
Initial Costs to Company | |||
Land | 2,033,000 | ||
Buildings and Improvements | 18,384,000 | ||
Total Adjustments to Basis | 0 | ||
Gross Amount at Which Carried at December 31, 2014 | 20,417,000 | [1],[2] | |
Accumulated Depreciation | 261,000 | [3],[4] | |
Deductions | |||
Balance, end of period | 20,417,000 | [1],[2] | |
Deductions | |||
Balance, end of period | 261,000 | [3],[4] | |
Buildings | |||
Deductions | |||
Acquired real estate asset, useful life | 40 years | ||
Line of credit | |||
Deductions | |||
Debt, Long-term and Short-term, Combined Amount | $365,800,000 | ||
[1] | The following is a reconciliation of total real estate carrying value for the years ended December 31, 2014 and December 31, 2013: Year Ended Year Ended December 31, 2014 December 31, 2013Balance, beginning of period $— $— Additions Acquisitions 578,828 — Improvements — — Total additions 578,828 — Deductions — Cost of real estate sold — — Total deductions — —Balance, end of period $578,828 $— | ||
[2] | The aggregate cost for federal income tax purposes was approximately $641.9 million. | ||
[3] | The following is a reconciliation of accumulated depreciation for the years ended December 31, 2014 and December 31, 2013: Year Ended Year Ended December 31, 2014 December 31, 2013Balance, beginning of period $— $— Additions Acquisitions - Depreciation Expense for Building & Tenant Improvements Acquired 4,574 — Improvements - Depreciation Expense for Tenant Improvements & Building Equipment — — Total additions 4,574 — Deductions — — Cost of real estate sold — — Total deductions — —Balance, end of period $4,574 $— | ||
[4] | The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the respective lease term and buildings are depreciated over 40 years. |