Cole Office & Industrial REIT 10-Q 13 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Entity Information [Line Items]
Entity Registrant Name	Cole Office & Industrial REIT (CCIT II), Inc.
Entity Central Index Key	1,572,758
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		64.7
Class T Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		2.5

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Real estate assets:
Land	$ 103,418	$ 102,055
Buildings and improvements	999,434	997,738
Intangible lease assets	124,962	124,952
Total real estate assets, at cost	1,227,814	1,224,745
Less: accumulated depreciation and amortization	(119,180)	(99,882)
Total real estate assets, net	1,108,634	1,124,863
Cash and cash equivalents	2,979	4,845
Restricted cash	1,598	1,431
Rents and tenant receivables	24,838	23,321
Derivative assets, prepaid expenses and other assets	5,114	3,679
Deferred costs, net	364	760
Total assets	1,143,527	1,158,899
LIABILITIES AND STOCKHOLDERS’ EQUITY
Credit facility and notes payable, net	599,581	599,771
Accounts payable and accrued expenses	6,614	6,897
Due to affiliates	1,207	1,274
Intangible lease liabilities, net	22,627	23,783
Distributions payable	3,473	3,589
Deferred rental income and other liabilities	3,516	4,231
Total liabilities	637,018	639,545
Commitments and contingencies
Redeemable common stock	27,788	27,765
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding	0	0
Capital in excess of par value	583,279	583,279
Accumulated distributions in excess of earnings	(109,610)	(95,306)
Accumulated other comprehensive income	4,378	2,942
Total stockholders’ equity	478,721	491,589
Total liabilities, redeemable common stock and stockholders’ equity	1,143,527	1,158,899
Class A Common Stock
STOCKHOLDERS’ EQUITY
Common stock	649	649
Class T Common Stock
STOCKHOLDERS’ EQUITY
Common stock	$ 25	$ 25

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	245,000,000	245,000,000
Common stock, shares issued (in shares)	64,854,906	64,884,543
Common stock, shares outstanding (in shares)	64,854,906	64,884,543
Class T Common Stock
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	245,000,000	245,000,000
Common stock, shares issued (in shares)	2,539,719	2,515,860
Common stock, shares outstanding (in shares)	2,539,719	2,515,860

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Rental income	$ 23,290	$ 22,876	$ 46,814	$ 45,207
Tenant reimbursement income	2,966	2,406	6,100	5,219
Total revenues	26,256	25,282	52,914	50,426
Operating expenses:
General and administrative	1,179	1,176	2,216	2,271
Property operating	1,588	1,007	3,230	2,410
Real estate tax	2,034	2,099	4,135	4,055
Advisory fees and expenses	2,718	2,561	5,308	5,062
Acquisition-related	85	28	85	2,214
Depreciation and amortization	9,618	9,489	19,235	18,859
Total operating expenses	17,222	16,360	34,209	34,871
Operating income	9,034	8,922	18,705	15,555
Other income (expense):
Interest expense and other, net	(6,117)	(5,714)	(12,053)	(11,107)
Net income	2,917	3,208	6,652	4,448
Class A Common Stock
Other income (expense):
Net income	$ 2,856	$ 3,139	$ 6,498	$ 4,380
Basic and diluted weighted average number of common shares outstanding (in shares)	64,837,330	65,312,879	64,850,675	65,136,799
Basic and diluted net income per common share (in dollars per share)	$ 0.04	$ 0.05	$ 0.10	$ 0.07
Distributions declared per common share (in dollars per share)	$ 0.16	$ 0.16	$ 0.31	$ 0.31
Class T Common Stock
Other income (expense):
Net income	$ 61	$ 69	$ 154	$ 68
Basic and diluted weighted average number of common shares outstanding (in shares)	2,534,652	2,481,772	2,528,381	2,471,673
Basic and diluted net income per common share (in dollars per share)	$ 0.02	$ 0.03	$ 0.06	$ 0.03
Distributions declared per common share (in dollars per share)	$ 0.16	$ 0.16	$ 0.31	$ 0.31

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 2,917	$ 3,208	$ 6,652	$ 4,448
Other comprehensive income (loss)
Unrealized gain (loss) on interest rate swaps	586	(575)	1,952	(80)
Amount of (gain) loss reclassified from other comprehensive income into income as interest expense and other, net	(368)	222	(516)	585
Total other comprehensive income (loss)	218	(353)	1,436	505
Total comprehensive income	$ 3,135	$ 2,855	$ 8,088	$ 4,953

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Stockholder's Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands	Total	Class A Common Stock	Class T Common Stock	Common StockClass A Common Stock	Common StockClass T Common Stock	Capital in Excess of Par Value	Accumulated Distributions in Excess of Earnings	Accumulated Other Comprehensive Income
Balance (in shares) at Dec. 31, 2017		64,884,543	2,515,860	64,884,543	2,515,860
Balance at Dec. 31, 2017	$ 491,589			$ 649	$ 25	$ 583,279	$ (95,306)	$ 2,942
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				993,858	39,956
Issuance of common stock	10,802			$ 10	$ 0	10,792	0	0
Distributions declared	(20,956)						(20,956)
Redemptions of common stock (in shares)				(1,023,495)	(16,097)
Redemptions of common stock	(10,779)			$ (10)		(10,769)
Changes in redeemable common stock	(23)					(23)
Comprehensive income	8,088						6,652	1,436
Balance (in shares) at Jun. 30, 2018		64,854,906	2,539,719	64,854,906	2,539,719
Balance at Jun. 30, 2018	$ 478,721			$ 649	$ 25	$ 583,279	$ (109,610)	$ 4,378

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 6,652	$ 4,448
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, net	18,141	17,749
Amortization of deferred financing costs	706	703
Straight-line rental income	(2,291)	(2,800)
Changes in assets and liabilities:
Rents and tenant receivables	774	(295)
Prepaid expenses and other assets	1	290
Accounts payable and accrued expenses	(795)	(156)
Deferred rental income and other liabilities	(715)	1,134
Due to affiliates	32	(1,189)
Net cash provided by operating activities	22,505	19,884
Cash flows from investing activities:
Investment in real estate assets	(1,363)	(93,465)
Real estate developments and capital expenditures	(1,193)	(7,278)
Payment of property escrow deposits	(50)	(1,600)
Refund of property escrow deposits	50	1,600
Net cash used in investing activities	(2,556)	(100,743)
Cash flows from financing activities:
Distribution and stockholder servicing fees paid	(99)	(98)
Redemptions of common stock	(10,779)	(3,082)
Distributions to stockholders	(10,270)	(10,003)
Proceeds from credit facility and notes payable	20,500	103,000
Repayments of credit facility and notes payable	(21,000)	(15,000)
Deferred financing costs paid	0	(20)
Net cash (used in) provided by financing activities	(21,648)	74,797
Net decrease in cash and cash equivalents and restricted cash	(1,699)	(6,062)
Cash and cash equivalents and restricted cash, beginning of period	6,276	10,436
Cash and cash equivalents and restricted cash, end of period	4,577	4,374
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	2,979	2,959
Restricted cash	1,598	1,415
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	3,473	3,501
Accrued capital expenditures	672	1,684
Change in fair value of interest rate swaps	1,436	505
Common stock issued through distribution reinvestment plan	10,802	11,084
Supplemental Cash Flow Disclosures:
Interest paid	$ 11,478	$ 10,167

Organization and Business

Organization and Business	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS	ORGANIZATION AND BUSINESS Cole Office & Industrial REIT (CCIT II), Inc. (the “Company”) is a Maryland corporation, incorporated on February 26, 2013, that elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2014. The Company is the sole general partner of, and owns, directly or indirectly, 100% of the partnership interests in Cole Corporate Income Operating Partnership II, LP, a Delaware limited partnership. On November 13, 2017, VEREIT Operating Partnership, L.P. (“VEREIT OP”), a former affiliated entity of the Company’s sponsor, CCO Group (as defined below), entered into a Purchase and Sale Agreement with CCA Acquisition, LLC (“CCA”), a newly-formed affiliate of CIM Group, LLC (“CIM”), pursuant to which CCA agreed to acquire all of the issued and outstanding shares of common stock of Cole Capital Advisors, Inc., the direct or indirect owner of Cole Corporate Income Advisors II, LLC (“CCI II Advisors”), Cole Capital Corporation and CREI Advisors, LLC (“CREI Advisors”), the Company’s external advisor, dealer manager and property manager, respectively (the “Transaction”). On February 1, 2018, the Transaction was completed. Immediately following the completion of the Transaction, Cole Capital Advisors, Inc. and the Company’s dealer manager were each converted into Delaware limited liability companies, Cole Capital Advisors, Inc.’s name was changed to CCO Group, LLC, and the dealer manager’s name was changed to CCO Capital, LLC (“CCO Capital”). As a result of the Transaction, CIM owns and/or controls CCO Group, LLC and its subsidiaries (collectively, “CCO Group”), and CCO Group, LLC owns and controls CCI II Advisors, CCO Capital and CREI Advisors, the Company’s external advisor, dealer manager for the Offering (as defined below) and property manager, respectively. In addition, as part of the Transaction, VEREIT OP and CCO Group, LLC entered into a services agreement (the “Services Agreement”) pursuant to which VEREIT OP will continue to provide certain services to CCO Group and to the Company, Cole Credit Property Trust IV, Inc. (“CCPT IV”), Cole Credit Property Trust V, Inc. (“CCPT V”), Cole Office & Industrial (CCIT III), Inc. (“CCIT III”) and Cole Real Estate Income Strategy (Daily NAV), Inc. (“Cole Income NAV Strategy”) (CCPT IV, CCPT V, CCIT III, Cole Income NAV Strategy and the Company, collectively, the “Cole REITs ® ”), including operational real estate support. VEREIT OP will continue to provide such services through March 31, 2019 (or, if later, the date of the last government filing other than a tax filing made by any of the Cole REITs with respect to its 2018 fiscal year) (the “Initial Services Term”) and will provide consulting and research services through December 31, 2023 as requested by CCO Group, LLC. Despite the indirect change of ownership and control of the Company’s advisor, dealer manager, property manager and sponsor, the Company expects that, during the Initial Services Term of the Services Agreement, the advisory, dealer manager and property management services it receives will continue without any material changes in personnel (except as supplemented by the management oversight of CIM personnel) or material change in service procedures. CCO Group, LLC is evaluating and intends to effectuate during the Initial Services Term of the Services Agreement an appropriate transition of VEREIT OP’s services under the Services Agreement to other CIM affiliates or third parties with the goal of ensuring continuity and minimizing disruption. Pursuant to a Registration Statement on Form S-11 (Registration No. 333-187470) (the “Registration Statement”) under the Securities Act of 1933, as amended (the “Securities Act”), and declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on September 17, 2013, the Company commenced its initial public offering (the “Offering”) on a “best efforts” basis, initially offering up to a maximum of $2.5 billion in shares of a single class of common stock (now referred to as Class A Shares, as defined below) in the primary offering at a price of $10.00 per share, as well as up to $475.0 million in additional shares pursuant to a distribution reinvestment plan (the “Original DRIP”) at a price of $9.50 per share. Effective as of March 4, 2016, the Company changed the designation of its common stock to Class A common stock (the “Class A Shares”) and then reclassified a portion of its Class A Shares as Class T common stock (the “Class T Shares”) pursuant to filings of Articles of Amendment (“Articles of Amendment”) and Articles Supplementary (“Articles Supplementary”) to the Company’s Articles of Amendment and Restatement (the Articles of Amendment and Restatement, the Articles of Amendment and the Articles Supplementary, each as amended and supplemented from time to time, are collectively referred to herein as the “Charter”). All shares of common stock issued and outstanding prior to the filing of the Articles of Amendment and the Articles Supplementary were designated as Class A Shares following the filing of the Articles of Amendment and the Articles Supplementary. The Class A Shares and Class T Shares have similar voting rights, although the amount of the distributions are expected to differ due to the distribution and stockholder servicing fees, as defined in the Charter, that are payable in connection with the Class T Shares. In addition, the Charter provides that, in the event of a liquidation of the Company’s assets, distributions will be allocated between the share classes pursuant to the portion of the aggregate assets available for distribution to each class. Each holder of shares of a particular class of common stock will be entitled to receive, ratably with each other holder of shares of the same class, that portion of such aggregate cash available for distribution as the number of outstanding shares of such class held by such holder as compared to the total number of outstanding shares of such class then outstanding. On March 28, 2016, the Company’s board of directors (the “Board”) adopted an Amended and Restated Distribution Reinvestment Plan (the “Amended and Restated DRIP” and collectively with the Original DRIP, the “DRIP”) in connection with the reinvestment of distributions paid on Class A and Class T Shares. Distributions on Class A Shares are reinvested in Class A Shares and distributions on Class T Shares are reinvested in Class T Shares. The Amended and Restated DRIP became effective as of May 1, 2016. On April 11, 2016, the Company announced that the Board established an estimated per share net asset value (“NAV”) of the Company’s common stock, as of February 29, 2016, of $10.00 per share for purposes of assisting broker-dealers that participated in the Offering in meeting their customer account statement reporting obligations under National Association of Securities Dealers Conduct Rule 2340. As a result, effective April 11, 2016, the Company revised the offering price for Class A Shares pursuant to the primary offering portion of the Offering to be $10.99 per share (representing the $10.00 estimated per share NAV plus applicable selling commissions and dealer manager fees) and revised the offering price of Class A Shares pursuant to the Original DRIP to be $10.00 per share (the estimated per share NAV). In connection with Post-Effective Amendment No. 6 to the Registration Statement, which was declared effective by the SEC on April 29, 2016, the Company began offering up to $1.0 billion , of the $2.5 billion in shares that made up the primary portion of the Offering, in Class T Shares at a price of $10.53 per share in the primary portion of the Offering (representing the $10.00 estimated per share NAV plus selling commissions and dealer manager fees applicable to the Class T Shares), along with up to $1.5 billion in Class A Shares at a price of $10.99 per share in the primary portion of the Offering. The Company also began offering Class T Shares pursuant to the DRIP at a price of $10.00 per share, along with Class A Shares pursuant to the DRIP at a price of $10.00 per share. The Company ceased issuing shares in the Offering on September 17, 2016. The unsold Class A Shares and Class T Shares of $2.3 billion in the aggregate were subsequently deregistered. In addition, the Company registered an aggregate of $120.0 million of Class A Shares and Class T Shares under the DRIP pursuant to a Registration Statement on Form S-3 (Registration No. 333-213306), which was filed with the SEC on August 25, 2016 and automatically became effective with the SEC upon filing (the “DRIP Offering” and collectively with the Offering, the “Offerings”). The Company has continued to issue Class A Shares and Class T Shares under the DRIP Offering. On March 22, 2017, the Board established an estimated per share NAV of the Company’s common stock, as of December 31, 2016, of $10.32 per share for both Class A Shares and Class T Shares. Effective from March 28, 2017 to March 27, 2018, distributions were reinvested under the DRIP Offering at a price of $10.32 per share for both Class A Shares and Class T Shares, the estimated per share NAV as of December 31, 2016, as determined by the Board. No distributions were reinvested in shares of the Company’s common stock under the DRIP between the Board’s establishment of the estimated per share NAV on March 22, 2017 and the March 28, 2017 commencement date. On March 28, 2018, the Board established an updated estimated per share NAV of the Company’s common stock, as of December 31, 2017, of $10.58 per share for both Class A Shares and Class T Shares. As a result, commencing on March 28, 2018, distributions are reinvested under the DRIP Offering at a price of $10.58 per share for both Class A Shares and Class T Shares, the estimated per share NAV as of December 31, 2017, as determined by the Board. Additionally, $10.58 per share will serve as the most recent estimated per share NAV for purposes of the share redemption program. As of June 30, 2018 , the Company had issued approximately 71.1 million shares of common stock in the Offerings for gross offering proceeds of $716.2 million ( $689.2 million in Class A Shares and $27.0 million in Class T Shares) before offering costs, selling commissions, and dealer manager fees of $66.2 million . In addition, as of June 30, 2018 , the Company paid distribution and stockholder servicing fees for Class T Shares sold in the primary portion of the Offering of $376,000 and accrued an estimated liability for future distribution and stockholder servicing fees payable of $643,000 . As of June 30, 2018 , the Company owned 36 office and industrial properties, comprising approximately 11.4 million rentable square feet of commercial space located in 19 states. As of June 30, 2018 , the rentable square feet at these properties was 100% leased.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
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 condensed 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 condensed consolidated financial statements. Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2017 , and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. In connection with the adoption of Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , transfers to or from restricted cash, which have previously been shown in the Company’s investing activities section of the condensed consolidated statements of cash flows, are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows. This change resulted in an increase in cash flows used in investing activities of $2.0 million during the six months ended June 30, 2017. 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate 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; changes in anticipated holding periods; 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 six months ended June 30, 2018 or 2017 . Assets Held for Sale When a real estate asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the assets related to the property and estimate its 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 is then 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 June 30, 2018 or December 31, 2017 . 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 to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their respective fair values. 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 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 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 materially impact the Company’s results of operations. In April 2017, the Company elected to early adopt ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Beginning in April 2017, all real estate acquisitions qualified as asset acquisitions, and as such, acquisition-related fees and certain acquisition-related expenses related to these asset acquisitions were capitalized and allocated to tangible and intangible assets and liabilities, as described above. Prior to the adoption of ASU 2017-01 in April 2017, all of the Company’s real estate acquisitions were accounted for as business combinations and, as such, acquisition-related expenses related to these business combination acquisitions were expensed as incurred. Prior to April 2017, acquisition-related expenses in the Company’s condensed consolidated statements of operations primarily consisted of legal, deed transfer and other costs related to real estate purchase transactions, including costs incurred for deals that were not consummated. Development Activities Project costs and expenses, including interest incurred, associated with the development, construction and lease-up of a real estate project are capitalized as construction in progress. Once the development and construction of the building is substantially completed, the amounts capitalized to construction in progress are transferred to (i) land and (ii) buildings and improvements, and are depreciated over their respective useful lives. During the six months ended June 30, 2018 , no interest expense associated with development projects was capitalized. During the six months ended June 30, 2017 , the Company capitalized $53,000 of interest expense associated with development projects. Restricted Cash The Company had $1.6 million and $1.4 million in restricted cash as of June 30, 2018 and December 31, 2017 , respectively. Included in restricted cash was $1.4 million and $1.2 million held by lenders in lockbox accounts as of June 30, 2018 and December 31, 2017 , respectively. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Restricted cash also included $187,000 and $165,000 held by a lender in an escrow account for a certain property in accordance with the associated loan agreement as of June 30, 2018 and December 31, 2017 , respectively. Revenue Recognition Certain properties have leases where the minimum rental payment increases during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis when earned and collectability is reasonably assured. 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. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition, Accounting Standards Codification (“ASC”) Topic 605 and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company records revenue for real estate taxes and insurance reimbursed by its tenants on the leased properties, with offsetting expenses in real estate taxes and property operating expenses, respectively, within the condensed consolidated statements of operations as the Company has concluded it is the primary obligor. The Company has identified its revenue streams as rental income from leasing arrangements and tenant reimbursement income, which are outside of the scope of Topic 606. The Company adopted ASU 2014-09 using the modified retrospective approach and determined it does not have a material impact on the Company’s condensed consolidated financial statements. The Company continually reviews receivables related to rent, including any straight-line rent, and current and future operating expense reimbursements from tenants, and determines their collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts. As of June 30, 2018 and December 31, 2017 , the Company did not have an allowance for uncollectible accounts. Earnings (Loss) and Distributions Per Share The Company has two classes of common stock. Accordingly, the Company utilizes the two-class method to determine its earnings per share, which can result in different earnings per share for each of the classes. Under the two-class method, earnings per share of each class of common stock are computed by dividing the sum of the distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares for each class of common stock for the respective period. The distributed earnings to Class T Share common stockholders represents distributions declared less the distribution and stockholder servicing fees. Diluted income per share, when applicable, considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the three and six months ended June 30, 2018 and 2017 . Distributions per share are calculated based on the authorized daily distribution rate. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The amendments in this update require that most lease obligations be recognized as a right of use asset with a corresponding liability on the balance sheet. The guidance also requires additional qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 and subsequent amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The guidance, including optional practical expedients, should be implemented for the earliest period presented using a modified retrospective approach. The Company is currently in the process of assessing the inventory of its leases that will be impacted by adoption of the new guidance. The Company does not expect the adoption to have a material impact on the accounting treatment of the Company’s net leases, which are the primary source of the Company’s revenues. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). The targeted amendments in this ASU are designed to help simplify certain aspects of hedge accounting and result in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. ASU 2017-12 applies to the Company’s interest rate swaps designated as cash flow hedges. Upon adoption of ASU 2017-12, all changes in the fair value of highly effective cash flow hedges will be recorded in accumulated other comprehensive income rather than recognized directly in earnings. Under current GAAP, the ineffective portion of the change in fair value of cash flow hedges is recognized directly in earnings. This eliminates the requirement to separately measure and disclose ineffectiveness for qualifying cash flow hedges. ASU 2017-12 is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU 2017-12 is required to be adopted using a modified retrospective approach with early adoption permitted. The Company adopted ASU 2017-12 during the first quarter of fiscal year 2018 and determined there was no material impact on the Company’s condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
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 under current market conditions. 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: Credit facility and notes payable — 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. Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs. These financial instruments are valued using Level 2 inputs. As of June 30, 2018 , the estimated fair value of the Company’s debt was $600.0 million , compared to a carrying value of $601.0 million . The estimated fair value of the Company’s debt was $603.0 million as of December 31, 2017 , compared to a carrying value on that date of $601.5 million . Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of June 30, 2018 and December 31, 2017 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Other financial instruments — The Company considers the carrying values of its cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, other liabilities, due to affiliates and distributions payable to approximate their fair values because of the short period of time between their origination and their expected realization as well as their highly-liquid nature. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. 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, upon disposition of the financial assets and liabilities. As of June 30, 2018 and December 31, 2017 , there have been no transfers of financial assets or liabilities between fair value hierarchy levels. In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2018 and as of December 31, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of June 30, 2018 (Level 1) (Level 2) (Level 3) Financial assets: Interest rate swaps $ 4,378 $ — $ 4,378 $ — Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of December 31, 2017 (Level 1) (Level 2) (Level 3) Financial assets: Interest rate swaps $ 2,942 $ — $ 2,942 $ —

Real Estate Assets

Real Estate Assets	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
REAL ESTATE ASSETS	REAL ESTATE ASSETS 2018 Property Acquisitions During the six months ended June 30, 2018 , the Company did not acquire any properties. 2018 Development Project During the six months ended June 30, 2018 , the Company acquired one land parcel, upon which a 120,000 square foot expansion of an existing property is expected to be constructed. The land was acquired for an aggregate cost of $1.4 million and is included in land on the accompanying condensed consolidated unaudited balance sheet. During the six months ended June 30, 2018 , the Company capitalized expenses of $1.6 million as construction in progress associated with the expansion project. Once the development and construction of the building is substantially completed, the amounts capitalized to construction in progress will be transferred to buildings, fixtures and improvements and will be depreciated over their respective useful lives. As of June 30, 2018 , the Company has committed to invest an additional estimated $6.4 million related to the development project. 2017 Property Acquisitions During the six months ended June 30, 2017 , the Company acquired three properties for an aggregate purchase price of $93.5 million (the “2017 Acquisitions”). The 2017 Acquisitions were all acquired prior to the adoption of ASU 2017-01 in April 2017 and thus were accounted for as business combinations. The Company funded the 2017 Acquisitions with net proceeds from the Offerings and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired. The following table summarizes the purchase price allocations for the 2017 Acquisitions (in thousands): 2017 Acquisitions Land $ 9,807 Buildings and improvements 73,379 Acquired in-place leases and other intangibles (1) 10,279 Total purchase price $ 93,465 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 14.1 years for the 2017 Acquisitions . The Company recorded revenue for the three and six months ended June 30, 2017 of $2.0 million and $3.0 million , respectively, and net income of $985,000 and a net loss of $624,000 for the three and six months ended June 30, 2017 , respectively, related to the 2017 Acquisitions . The following table summarizes selected financial information of the Company as if all of the 2017 Acquisitions were completed on January 1, 2016 for each period presented below. The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the three and six months ended June 30, 2017 and 2016, respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Pro forma basis (unaudited): Revenue $ 25,282 $ 22,699 $ 51,315 $ 44,769 Net income (loss) $ 3,208 $ (983 ) $ 5,850 $ (1,194 ) The unaudited pro forma information for the six months ended June 30, 2017 was adjusted to exclude $2.1 million of acquisition-related fees and expenses recorded during such period related to the 2017 Acquisitions . Accordingly, these costs were instead recognized in the pro forma information for the six months ended June 30, 2016 . 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 the period, nor does it purport to represent the results of future operations. 2017 Development Project During the six months ended June 30, 2017 , the Company capitalized expenses of $8.6 million as construction in progress associated with the expansion of an existing property. When the development project was substantially complete in September 2017, the amounts capitalized to construction in progress during the construction period were transferred to buildings and improvements and began depreciating over their respective useful lives.

Intangible Lease Assets

Intangible Lease Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE LEASE ASSETS	INTANGIBLE LEASE ASSETS Intangible lease assets as of June 30, 2018 and December 31, 2017 consisted of the following (in thousands, except weighted average life): June 30, 2018 December 31, 2017 In-place leases and other intangibles, net of accumulated amortization of $33,142 and $27,932, respectively (with a weighted average life remaining of 9.2 years and 9.7 years, respectively) $ 90,258 $ 95,459 Acquired above-market leases, net of accumulated amortization of $453 and $391, respectively (with a weighted average life remaining of 8.8 years and 9.3 years, respectively) 1,109 1,170 $ 91,367 $ 96,629 Amortization of the above-market leases is recorded as a reduction to rental revenue, and amortization expense for the in-place leases and other intangibles is included in depreciation and amortization in the accompanying condensed consolidated statements of operations. The following table summarizes the amortization expense related to the intangible lease assets for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 In-place lease and other intangible amortization $ 2,604 $ 2,577 $ 5,208 $ 5,175 Above-market lease amortization $ 31 $ 31 $ 62 $ 62 As of June 30, 2018 , the estimated amortization expense relating to the intangible lease assets for each of the five succeeding fiscal years is as follows (in thousands): Amortization Expense In-Place Leases and Other Intangibles Above-Market Leases Remainder of 2018 $ 5,208 $ 62 2019 $ 10,417 $ 125 2020 $ 10,417 $ 125 2021 $ 10,417 $ 125 2022 $ 10,417 $ 125

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITES	DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, the Company uses certain types of derivative instruments for the purpose of managing or hedging its interest rate risk. The Company did not enter into any interest rate swap agreements during the six months ended June 30, 2018 . As of June 30, 2018 , the Company had three interest rate swap agreements. The following table summarizes the terms of the Company’s executed interest rate swap agreements designated as hedging instruments as of June 30, 2018 and December 31, 2017 (dollar amounts in thousands): Outstanding Notional Amount as of Interest Rate (1) Effective Date Maturity Date Fair Value of Assets as of Balance Sheet Location June 30, 2018 June 30, 2018 December 31, 2017 Interest Rate Swaps Derivative assets, prepaid expenses and other assets $ 254,070 3.29% to 3.35% 2/10/2015 to 3/19/2015 12/12/2019 to 4/1/2020 $ 4,378 $ 2,942 ______________________ (1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread as of June 30, 2018 . Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3 — Fair Value Measurements. The notional amount under the interest rate swap agreements is an indication of the extent of the Company’s involvement in each instrument, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges in order to hedge the variability of the anticipated cash flows on its variable rate debt. The change in fair value of the derivative instruments that are designated as hedges is recorded in other comprehensive income, with a portion of the amount subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. For the three months ended June 30, 2018 and 2017 , the amounts reclassified were a gain of $368,000 and a loss of $222,000 , respectively, and for the six months ended June 30, 2018 and 2017 , the amounts reclassified were a gain of $516,000 and a loss of $585,000 , respectively. During the next 12 months, the Company estimates that an additional $2.6 million will be reclassified from other comprehensive income as a decrease to interest expense. The Company has agreements with each of its derivative counterparties that contain provisions whereby, if the Company defaults on certain of its unsecured indebtedness, the Company could also be declared in default on its derivative obligations, resulting in an acceleration of payment. If the Company breaches any of these provisions, it could be required to settle its obligations under these agreements at the aggregate termination value of the derivative instruments, inclusive of interest payments and accrued interest. As of June 30, 2018 , all derivative instruments were in an asset position. Therefore, there was no termination value as of June 30, 2018 . In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the credit quality of the Company and the respective counterparty. There were no termination events or events of default related to the interest rate swaps as of June 30, 2018 .

Notes Payable and Credit Facili

Notes Payable and Credit Facility	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
NOTES PAYABLE AND CREDIT FACILITY	NOTES PAYABLE AND CREDIT FACILITY As of June 30, 2018 , the Company had $599.6 million of debt outstanding, including net deferred financing costs, with a weighted average interest rate of 3.8% and weighted average years to maturity of 1.9 years. The weighted average years to maturity is computed using the scheduled repayment date as specified in each loan agreement where applicable. The weighted average interest rate is computed using the interest rate in effect until the scheduled repayment date. Should a loan not be repaid by its scheduled repayment date, the applicable interest rate will increase as specified in the respective loan agreement until the extended maturity date. The following table summarizes the debt balances as of June 30, 2018 and December 31, 2017 and the debt activity for the six months ended June 30, 2018 (in thousands): During the Six Months Ended June 30, 2018 Balance as of Debt Issuance, Net Repayments Accretion Balance as of June 30, 2018 Fixed rate debt $ 295,545 $ — $ — $ — $ 295,545 Credit facility 306,000 20,500 (21,000 ) — 305,500 Total debt 601,545 20,500 (21,000 ) — 601,045 Deferred costs (1) (1,774 ) — — 310 (1,464 ) Total debt, net $ 599,771 $ 20,500 $ (21,000 ) $ 310 $ 599,581 ______________________ (1) Deferred costs relate to mortgage notes payable and the term portion of the Credit Facility, as defined below. As of June 30, 2018 , the fixed rate debt outstanding of $295.5 million included $54.1 million of variable rate debt that is fixed through interest rate swap agreements, which has the effect of fixing the variable interest rate per annum through the maturity date of the variable rate debt. The fixed rate debt has interest rates ranging from 3.3% to 4.8% per annum and matures on various dates from March 2020 to October 2023. As of June 30, 2018 , the fixed rate debt had a weighted average interest rate of 4.1% . The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt was $488.5 million as of June 30, 2018 . Each of the mortgage notes payable, comprising the fixed rate debt, is secured by the respective properties on which the debt was placed. The Company has an amended, unsecured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”), as administrative agent, and the lenders under the credit agreement (the “Credit Agreement”), that provides for borrowings of up to $400.0 million , which includes a $200.0 million unsecured term loan (the “Term Loan”) and up to $200.0 million in unsecured revolving loans (the “Revolving Loans”). The Revolving Loans mature on December 12, 2018; however, the Company may elect to extend the maturity date of such loans to December 12, 2019, subject to satisfying certain conditions described in the Credit Agreement. These conditions include providing notice of the election and paying an extension fee of 0.2% of the maximum amount of Revolving Loans. With respect to the Company’s $105.5 million of Revolving Loans maturing within the current year, the Company expects to extend the maturity date or enter into new financing arrangements in order to meet its debt obligations. The Term Loan matures on December 12, 2019. Depending upon the type of loan specified and overall leverage ratio, the Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month London Interbank Offered Rate (“LIBOR”), multiplied by the statutory reserve rate (the “Eurodollar Rate”), plus an interest rate spread ranging from 1.60% to 2.20% , or (ii) a base rate, ranging from 0.60% to 1.20% , plus the greater of: (a) JPMorgan Chase’s Prime Rate; (b) the Federal Funds Effective Rate (as defined in the Credit Agreement) plus 0.50% ; or (c) the one-month LIBOR multiplied by the statutory reserve rate plus 1.00% . As of June 30, 2018 , the amount outstanding under the Revolving Loans totaled $105.5 million at a weighted average interest rate of 4.1% , and the amount outstanding under the Term Loan totaled $200.0 million , all of which was subject to an interest rate swap agreement (the “Swapped Term Loan”). The interest rate swap agreement had the effect of fixing the Eurodollar Rate per annum of the Swapped Term Loan. As of June 30, 2018 , the all-in rate for the Swapped Term Loan was 3.3% . The Company had $89.6 million in unused capacity, subject to borrowing availability, as of June 30, 2018 . The Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Credit Agreement requires the Company to maintain a minimum consolidated net worth greater than or equal to the sum of (i) $194.0 million plus (ii) 75% of the equity issued from the date of the Credit Agreement, a leverage ratio less than or equal to 60% , a fixed charge coverage ratio equal to or greater than 1.50 , an unsecured debt to unencumbered asset value ratio equal to or less than 60% , an unsecured debt service coverage ratio greater than 1.75 , a secured debt ratio equal to or less than 40% , and recourse debt at less than or equal to 15% of total asset value. The Company believes it was in compliance with the financial covenants under the Credit Agreement, as well as the financial covenants under the Company’s various fixed and variable rate debt agreements as of June 30, 2018 . Maturities The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2018 for each of the five succeeding fiscal years and the period thereafter (in thousands): Principal Repayments Remainder of 2018 $ 105,500 2019 200,000 2020 203,465 2021 35,100 2022 — Thereafter 56,980 Total $ 601,045

Intangible Lease Liabilities

Intangible Lease Liabilities	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
INTANGIBLE LEASE LIABILITIES	INTANGIBLE LEASE LIABILITIES Intangible lease liabilities consisted of the following (in thousands, except weighted average life remaining amounts): June 30, 2018 December 31, 2017 Acquired below-market leases, net of accumulated amortization of $6,473 and $5,317, respectively (with a weighted average life remaining of 10.0 years and 10.5 years, respectively) $ 22,627 $ 23,783 Amortization of below-market leases is recorded as an increase to rental revenue in the accompanying condensed consolidated statements of operations. The following table summarizes the amortization related to the intangible lease liabilities for the three and six months ended June 30, 2018 and June 30, 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Below-market lease amortization $ 578 $ 578 $ 1,156 $ 1,172 Estimated amortization of the intangible lease liabilities as of June 30, 2018 for each of the five succeeding fiscal years is as follows (in thousands): Amortization of Below-Market Leases Remainder of 2018 $ 1,157 2019 $ 2,314 2020 $ 2,314 2021 $ 2,314 2022 $ 2,314

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
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 and claims. The Company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to the Company’s business, to which the Company is a party or of which the Company’s properties are the subject. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. In addition, the Company may own or acquire certain properties that are subject to environmental remediation. Generally, the seller of the property, the tenant of the property and/or another third party is responsible for environmental remediation costs related to a property. Additionally, in connection with the purchase of certain properties, the respective sellers and/or tenants may agree to indemnify the Company against future remediation costs. The Company also carries environmental liability insurance on its properties that provides limited coverage for any remediation liability and/or pollution liability for third-party bodily injury and/or property damage claims for which the Company may be liable. The Company is not aware of any environmental matters which it believes are reasonably likely to have a material effect on its results of operations, financial condition or liquidity.

Related-Party Transactions and

Related-Party Transactions and Arrangements	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS	RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS The Company has incurred 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. Distribution and stockholder servicing fees The Company pays CCO Capital a distribution and stockholder servicing fee for Class T Shares that is calculated on a daily basis in the amount of 1/365th of 0.8% of the per share NAV of the Class T Shares that were sold in the primary portion of the Offering. The distribution and stockholder servicing fee is paid monthly in arrears from cash flow from operations or, if the Company’s cash flow from operations is not sufficient to pay the distribution and stockholder servicing fee, from borrowings in anticipation of future cash flow. An estimated liability for future distribution and stockholder servicing fees payable to CCO Capital was recognized at the time each Class T Share was sold and included in due to affiliates in the condensed consolidated balance sheets with a corresponding decrease to capital in excess of par value. The Company will cease paying the distribution and stockholder servicing fee with respect to Class T Shares at the earliest of (i) the end of the month in which the transfer agent, on behalf of the Company, determines that total selling commissions and distribution and stockholder servicing fees paid by a stockholder within his or her individual account would be equal to 7.0% of the stockholder’s total gross investment amount at the time of the purchase of the primary Class T Shares held in such account; (ii) the date on which the aggregate underwriting compensation from all sources equals 10.0% of the gross proceeds from the sale of the Company’s shares in the Offering, excluding shares sold pursuant to the DRIP portion of the Offering; (iii) the fifth anniversary of the last day of the month in which the Offering (excluding the offering of shares pursuant to the DRIP portion of the Offering) terminates; (iv) the date such Class T Share is no longer outstanding; and (v) the date the Company effects a liquidity event. CCO Capital may, in its discretion, reallow to participating broker-dealers all or a portion of the distribution and stockholder servicing fee for services that such participating broker-dealers perform. No distribution and stockholder servicing fees are paid to CCO Capital or other participating broker-dealers with respect to shares sold pursuant to the DRIP portion of the Offering or the DRIP Offering. Acquisition fees and expenses The Company pays CCI II Advisors or its affiliates acquisition fees of up to 2.0% of: (i) the contract purchase price of each property or asset the Company acquires; (ii) the amount paid in respect of the development, construction or improvement of each asset the Company acquires; (iii) the purchase price of any loan the Company acquires; and (iv) 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, unless otherwise approved by a majority of the Board, including a majority of the Company’s independent directors, as commercially competitive, fair and reasonable to the Company. Advisory fees and expenses The Company pays CCI II Advisors a monthly advisory fee based upon the Company’s monthly average invested assets, which, for those assets acquired prior to January 1, 2018, is based on the estimated market value of such assets used to determine the Company’s estimated per share NAV as of December 31, 2017, as discussed in Note 1 — Organization and Business, and for those assets acquired subsequent to December 31, 2017, is based on the purchase price. The monthly advisory fee is equal to the following amounts: (i) an annualized rate of 0.75% paid on the Company’s average invested assets that are between $0 and $2.0 billion ; (ii) an annualized rate of 0.70% paid on the Company’s average invested assets that are between $2.0 billion and $4.0 billion ; and (iii) an annualized rate of 0.65% paid on the Company’s average invested assets that are over $4.0 billion . Operating expenses The Company reimburses CCI II Advisors or its affiliates for the operating expenses they paid or incurred in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse CCI II Advisors or its affiliates for any amount by which the operating expenses (including the advisory fee) at the end of the four preceding fiscal quarters exceed the greater of (i) 2.0% of average invested assets, or (ii) 25.0% of net income, excluding 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 or its affiliates for the salaries and benefits paid to personnel in connection with the services for which CCI II Advisors or its affiliates receive acquisition fees, and the Company will not reimburse CCI II Advisors for salaries and benefits paid to the Company’s executive officers. Disposition fees 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 one or more properties (or the Company’s entire portfolio), the Company will pay CCI II Advisors or its affiliates a disposition fee in an amount equal to up to one-half of the real estate or brokerage commission paid by the Company to third parties on the sale of such property, not to exceed 1.0% of the contract price of the property sold; provided, however, in no event may the total disposition fees paid to CCI II Advisors, its affiliates, and 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 or its affiliates 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 assets sold. During the three and six months ended June 30, 2018 and 2017 , no disposition fees were incurred for any such services provided by CCI II Advisors or its affiliates. Subordinated performance fees 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 stockholders have received, from regular distributions plus special distributions paid from proceeds of such sale, 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 stockholders and the amount of distributions necessary to generate an 8.0% annual cumulative, non-compounded return to stockholders. 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 the three and six months ended June 30, 2018 and 2017 , no subordinated performance fees were incurred related to any such events. The Company incurred fees and expense reimbursements as shown in the table below for services provided by CCI II Advisors and its affiliates related to the services described above during the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Distribution and stockholder servicing fees (1) $ 50 $ 50 $ 99 $ 98 Acquisition fees and expenses $ 85 $ 25 $ 85 $ 1,997 Advisory fees and expenses $ 2,718 $ 2,561 $ 5,308 $ 5,062 Operating expenses $ 436 $ 365 $ 749 $ 830 ______________________ (1) Amounts are calculated for the respective period in accordance with the dealer manager agreement and exclude the estimated liability for future distribution and stockholder servicing fees payable to CCO Capital of $643,000 , which is included in due to affiliates in the condensed consolidated balance sheets with a corresponding decrease to capital in excess of par value. Services Agreement Pursuant to the Services Agreement, VEREIT OP, which is affiliated with one of the Company’s directors, will continue to provide certain services to CCO Group and to the Company, including operational real estate support. The Company is not a party to the Services Agreement. See Note 11 — Economic Dependency for a discussion of the Services Agreement. Due to Affiliates As of June 30, 2018 and December 31, 2017 , $1.2 million and $1.3 million , respectively, was recorded for services and expenses incurred, but not yet reimbursed to, CCI II Advisors or its affiliates. These amounts are primarily for advisory fees and operating fees and expenses and distribution and stockholder servicing fees payable to CCO Capital. These amounts were included in due to affiliates in the condensed consolidated balance sheets for such periods.

Economic Dependency

Economic Dependency	6 Months Ended
	Jun. 30, 2018
Economic Dependency [Abstract]
ECONOMIC DEPENDENCY	ECONOMIC DEPENDENCY Under various agreements, the Company has engaged and may in the future engage CCI II Advisors or 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, as well as other administrative responsibilities for the Company including accounting services and stockholder relations. As a result of these relationships, the Company is dependent upon CCI II Advisors or 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. Services Agreement Pursuant to the Services Agreement, VEREIT OP will continue to provide certain services to CCO Group and to the Company, including operational real estate support. VEREIT OP will continue to provide such services through March 31, 2019 (or, if later, the date of the last government filing other than a tax filing made by any of the Cole REITs with respect to its 2018 fiscal year) and will provide consulting and research services through December 31, 2023 as requested by CCO Group, LLC. Despite the indirect change of ownership and control of the Company’s advisor, dealer manager, property manager and sponsor, the Company expects that, during the Initial Services Term of the Services Agreement, the advisory, dealer manager and property management services the Company receives will continue without any material changes in personnel (except as supplemented by the management oversight of CIM personnel) or material change in service procedures. During the Initial Services Term of the Services Agreement, CCO Group, LLC intends to evaluate and effectuate an appropriate transition of VEREIT OP’s services under the Services Agreement to other CIM affiliates or third parties with the goal of ensuring continuity and minimizing disruption.

Operating Leases

Operating Leases	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 , the leases had a weighted-average remaining term of 9.5 years . Certain leases include 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 real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of June 30, 2018 , was as follows (in thousands): Future Minimum Rental Income Remainder of 2018 $ 43,468 2019 87,319 2020 88,669 2021 89,868 2022 91,534 Thereafter 473,544 Total $ 874,402

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The following events occurred subsequent to June 30, 2018 . Redemption of Shares of Common Stock Subsequent to June 30, 2018 , the Company redeemed approximately 512,000 shares for $5.4 million at an average per share price of $10.53 pursuant to the Company’s share redemption program. Management, in its discretion, limited the amount of shares redeemed for the three months ended June 30, 2018 to an amount equal to the net proceeds the Company received from the sale of shares pursuant to the DRIP Offering during the period. The remaining redemption requests received during the three months ended June 30, 2018 , totaling approximately 320,000 shares, went unfulfilled.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	The condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2017 , and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q.
Principles of Consolidation	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications	Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. In connection with the adoption of Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , transfers to or from restricted cash, which have previously been shown in the Company’s investing activities section of the condensed consolidated statements of cash flows, are now required to be shown as part of the total change in cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows. This change resulted in an increase in cash flows used in investing activities of $2.0 million during the six months ended June 30, 2017.
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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Real Estate Investments, Recoverability of Real Estate Assets, and Assets Held for Sale	Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate 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; changes in anticipated holding periods; 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 six months ended June 30, 2018 or 2017 . Assets Held for Sale When a real estate asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the assets related to the property and estimate its 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 is then recorded to reflect the estimated fair value of the property, net of selling costs.
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 to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their respective fair values. 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 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 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 materially impact the Company’s results of operations. In April 2017, the Company elected to early adopt ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”), which clarifies the definition of a business by adding guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Beginning in April 2017, all real estate acquisitions qualified as asset acquisitions, and as such, acquisition-related fees and certain acquisition-related expenses related to these asset acquisitions were capitalized and allocated to tangible and intangible assets and liabilities, as described above. Prior to the adoption of ASU 2017-01 in April 2017, all of the Company’s real estate acquisitions were accounted for as business combinations and, as such, acquisition-related expenses related to these business combination acquisitions were expensed as incurred. Prior to April 2017, acquisition-related expenses in the Company’s condensed consolidated statements of operations primarily consisted of legal, deed transfer and other costs related to real estate purchase transactions, including costs incurred for deals that were not consummated.
Development Activities	Project costs and expenses, including interest incurred, associated with the development, construction and lease-up of a real estate project are capitalized as construction in progress. Once the development and construction of the building is substantially completed, the amounts capitalized to construction in progress are transferred to (i) land and (ii) buildings and improvements, and are depreciated over their respective useful lives.
Restricted Cash	The Company had $1.6 million and $1.4 million in restricted cash as of June 30, 2018 and December 31, 2017 , respectively. Included in restricted cash was $1.4 million and $1.2 million held by lenders in lockbox accounts as of June 30, 2018 and December 31, 2017 , respectively. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Restricted cash also included $187,000 and $165,000 held by a lender in an escrow account for a certain property in accordance with the associated loan agreement as of June 30, 2018 and December 31, 2017 , respectively.
Revenue Recognition	Certain properties have leases where the minimum rental payment increases during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis when earned and collectability is reasonably assured. 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. Effective January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition, Accounting Standards Codification (“ASC”) Topic 605 and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company records revenue for real estate taxes and insurance reimbursed by its tenants on the leased properties, with offsetting expenses in real estate taxes and property operating expenses, respectively, within the condensed consolidated statements of operations as the Company has concluded it is the primary obligor. The Company has identified its revenue streams as rental income from leasing arrangements and tenant reimbursement income, which are outside of the scope of Topic 606. The Company adopted ASU 2014-09 using the modified retrospective approach and determined it does not have a material impact on the Company’s condensed consolidated financial statements. The Company continually reviews receivables related to rent, including any straight-line rent, and current and future operating expense reimbursements from tenants, and determines their collectability by taking into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is uncertain, the Company will record an increase in the allowance for uncollectible accounts.
Earnings (Loss) and Distributions Per Share	The Company has two classes of common stock. Accordingly, the Company utilizes the two-class method to determine its earnings per share, which can result in different earnings per share for each of the classes. Under the two-class method, earnings per share of each class of common stock are computed by dividing the sum of the distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of shares for each class of common stock for the respective period. The distributed earnings to Class T Share common stockholders represents distributions declared less the distribution and stockholder servicing fees. Diluted income per share, when applicable, considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the three and six months ended June 30, 2018 and 2017 . Distributions per share are calculated based on the authorized daily distribution rate.
Recent Accounting Pronouncements	From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The amendments in this update require that most lease obligations be recognized as a right of use asset with a corresponding liability on the balance sheet. The guidance also requires additional qualitative and quantitative disclosures to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 and subsequent amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The guidance, including optional practical expedients, should be implemented for the earliest period presented using a modified retrospective approach. The Company is currently in the process of assessing the inventory of its leases that will be impacted by adoption of the new guidance. The Company does not expect the adoption to have a material impact on the accounting treatment of the Company’s net leases, which are the primary source of the Company’s revenues. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). The targeted amendments in this ASU are designed to help simplify certain aspects of hedge accounting and result in a more accurate portrayal of the economics of an entity’s risk management activities in its financial statements. ASU 2017-12 applies to the Company’s interest rate swaps designated as cash flow hedges. Upon adoption of ASU 2017-12, all changes in the fair value of highly effective cash flow hedges will be recorded in accumulated other comprehensive income rather than recognized directly in earnings. Under current GAAP, the ineffective portion of the change in fair value of cash flow hedges is recognized directly in earnings. This eliminates the requirement to separately measure and disclose ineffectiveness for qualifying cash flow hedges. ASU 2017-12 is effective for public entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU 2017-12 is required to be adopted using a modified retrospective approach with early adoption permitted. The Company adopted ASU 2017-12 during the first quarter of fiscal year 2018 and determined there was no material impact on the Company’s condensed consolidated financial statements.
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 under current market conditions. 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.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Investment in and valuation of real estate and related assets	The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of the fair value of the company's financial assets and liabilities	In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2018 and as of December 31, 2017 (in thousands): Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of June 30, 2018 (Level 1) (Level 2) (Level 3) Financial assets: Interest rate swaps $ 4,378 $ — $ 4,378 $ — Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Balance as of December 31, 2017 (Level 1) (Level 2) (Level 3) Financial assets: Interest rate swaps $ 2,942 $ — $ 2,942 $ —

Real Estate Assets (Tables)

Real Estate Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Schedule of preliminary purchase price allocation	The following table summarizes the purchase price allocations for the 2017 Acquisitions (in thousands): 2017 Acquisitions Land $ 9,807 Buildings and improvements 73,379 Acquired in-place leases and other intangibles (1) 10,279 Total purchase price $ 93,465 ______________________ (1) The weighted average amortization period for acquired in-place leases and other intangibles was 14.1 years for the 2017 Acquisitions .
Schedule of estimated revenue and net loss, on a pro forma basis	The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the three and six months ended June 30, 2017 and 2016, respectively (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Pro forma basis (unaudited): Revenue $ 25,282 $ 22,699 $ 51,315 $ 44,769 Net income (loss) $ 3,208 $ (983 ) $ 5,850 $ (1,194 )

Intangible Lease Assets (Tables

Intangible Lease Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-lived intangible assets	Intangible lease assets as of June 30, 2018 and December 31, 2017 consisted of the following (in thousands, except weighted average life): June 30, 2018 December 31, 2017 In-place leases and other intangibles, net of accumulated amortization of $33,142 and $27,932, respectively (with a weighted average life remaining of 9.2 years and 9.7 years, respectively) $ 90,258 $ 95,459 Acquired above-market leases, net of accumulated amortization of $453 and $391, respectively (with a weighted average life remaining of 8.8 years and 9.3 years, respectively) 1,109 1,170 $ 91,367 $ 96,629
Schedule of finite-lived intangible assets amortization expense	The following table summarizes the amortization expense related to the intangible lease assets for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 In-place lease and other intangible amortization $ 2,604 $ 2,577 $ 5,208 $ 5,175 Above-market lease amortization $ 31 $ 31 $ 62 $ 62
Schedule of finite-lived intangible assets, future amortization expense	As of June 30, 2018 , the estimated amortization expense relating to the intangible lease assets for each of the five succeeding fiscal years is as follows (in thousands): Amortization Expense In-Place Leases and Other Intangibles Above-Market Leases Remainder of 2018 $ 5,208 $ 62 2019 $ 10,417 $ 125 2020 $ 10,417 $ 125 2021 $ 10,417 $ 125 2022 $ 10,417 $ 125

Derivative Instruments and He26

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivative instruments	The following table summarizes the terms of the Company’s executed interest rate swap agreements designated as hedging instruments as of June 30, 2018 and December 31, 2017 (dollar amounts in thousands): Outstanding Notional Amount as of Interest Rate (1) Effective Date Maturity Date Fair Value of Assets as of Balance Sheet Location June 30, 2018 June 30, 2018 December 31, 2017 Interest Rate Swaps Derivative assets, prepaid expenses and other assets $ 254,070 3.29% to 3.35% 2/10/2015 to 3/19/2015 12/12/2019 to 4/1/2020 $ 4,378 $ 2,942 ______________________ (1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread as of June 30, 2018 .

Notes Payable and Credit Faci27

Notes Payable and Credit Facility (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Debt	The following table summarizes the debt balances as of June 30, 2018 and December 31, 2017 and the debt activity for the six months ended June 30, 2018 (in thousands): During the Six Months Ended June 30, 2018 Balance as of Debt Issuance, Net Repayments Accretion Balance as of June 30, 2018 Fixed rate debt $ 295,545 $ — $ — $ — $ 295,545 Credit facility 306,000 20,500 (21,000 ) — 305,500 Total debt 601,545 20,500 (21,000 ) — 601,045 Deferred costs (1) (1,774 ) — — 310 (1,464 ) Total debt, net $ 599,771 $ 20,500 $ (21,000 ) $ 310 $ 599,581 ______________________ (1) Deferred costs relate to mortgage notes payable and the term portion of the Credit Facility, as defined below.
Schedule of Maturities of Long-term Debt	The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2018 for each of the five succeeding fiscal years and the period thereafter (in thousands): Principal Repayments Remainder of 2018 $ 105,500 2019 200,000 2020 203,465 2021 35,100 2022 — Thereafter 56,980 Total $ 601,045

Intangible Lease Liabilities (T

Intangible Lease Liabilities (Tables)	6 Months Ended
	Jun. 30, 2018
Other Liabilities Disclosure [Abstract]
Schedule of finite-lived intangible liabilities	Intangible lease liabilities consisted of the following (in thousands, except weighted average life remaining amounts): June 30, 2018 December 31, 2017 Acquired below-market leases, net of accumulated amortization of $6,473 and $5,317, respectively (with a weighted average life remaining of 10.0 years and 10.5 years, respectively) $ 22,627 $ 23,783
Schedule of amortization expense of below market lease	The following table summarizes the amortization related to the intangible lease liabilities for the three and six months ended June 30, 2018 and June 30, 2017 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Below-market lease amortization $ 578 $ 578 $ 1,156 $ 1,172
Schedule of finite-lived intangible liabilities, future amortization expense	Estimated amortization of the intangible lease liabilities as of June 30, 2018 for each of the five succeeding fiscal years is as follows (in thousands): Amortization of Below-Market Leases Remainder of 2018 $ 1,157 2019 $ 2,314 2020 $ 2,314 2021 $ 2,314 2022 $ 2,314

Related-Party Transactions an29

Related-Party Transactions and Arrangements (Tables)	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Schedule of related party transactions	The Company incurred fees and expense reimbursements as shown in the table below for services provided by CCI II Advisors and its affiliates related to the services described above during the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Distribution and stockholder servicing fees (1) $ 50 $ 50 $ 99 $ 98 Acquisition fees and expenses $ 85 $ 25 $ 85 $ 1,997 Advisory fees and expenses $ 2,718 $ 2,561 $ 5,308 $ 5,062 Operating expenses $ 436 $ 365 $ 749 $ 830 ______________________ (1) Amounts are calculated for the respective period in accordance with the dealer manager agreement and exclude the estimated liability for future distribution and stockholder servicing fees payable to CCO Capital of $643,000 , which is included in due to affiliates in the condensed consolidated balance sheets with a corresponding decrease to capital in excess of par value.

Operating Leases (Tables)

Operating Leases (Tables)	6 Months Ended
	Jun. 30, 2018
Leases [Abstract]
Schedule of future minimum rental payments for operating leases	The future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of June 30, 2018 , was as follows (in thousands): Future Minimum Rental Income Remainder of 2018 $ 43,468 2019 87,319 2020 88,669 2021 89,868 2022 91,534 Thereafter 473,544 Total $ 874,402

Organization and Business (Shar

Organization and Business (Shares Offerings) (Details) - USD ($)	Mar. 28, 2017	Jun. 30, 2018	Mar. 28, 2018	Dec. 31, 2017	Mar. 22, 2017	Sep. 17, 2016	Apr. 29, 2016	Apr. 11, 2016	Sep. 17, 2013
Class of Stock [Line Items]
Distribution and stockholder servicing fees		$ 376,000
Distribution and stockholder fees payable		$ 643,000
Common Stock
Class of Stock [Line Items]
Share price (in dollars per share)								$ 10.99
Net asset value per share (in dollars per share)								10
Class A Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		64,854,906		64,884,543
Class A Common Stock | Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		64,854,906		64,884,543
Class T Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		2,539,719		2,515,860
Class T Common Stock | Common Stock
Class of Stock [Line Items]
Net asset value per share (in dollars per share)							$ 10
Issuance of common stock (in shares)		2,539,719		2,515,860
IPO | Common Stock
Class of Stock [Line Items]
Common stock, shares authorized, value (up to)							$ 2,500,000,000
Common stock, shares deregistered, value						$ 2,300,000,000
Issuance of common stock (in shares)		71,100,000
Gross offering proceeds		$ 716,200,000
Organization and offering costs, selling commissions and dealer manager fees		66,200,000
IPO | Class A Common Stock | Common Stock
Class of Stock [Line Items]
Common stock, shares authorized, value (up to)							$ 1,500,000,000		$ 2,500,000,000
Share price (in dollars per share)							$ 10.99		$ 10
Gross offering proceeds		689,200,000
IPO | Class T Common Stock | Common Stock
Class of Stock [Line Items]
Common stock, shares authorized, value (up to)							$ 1,000,000,000
Share price (in dollars per share)							$ 10.53
Gross offering proceeds		$ 27,000,000
DRIP
Class of Stock [Line Items]
Dividend reinvestment plan, reinvested distributions	$ 0
DRIP | Common Stock
Class of Stock [Line Items]
Common stock, shares authorized, value (up to)						$ 120,000,000
Share price (in dollars per share)								$ 10
Net asset value per share (in dollars per share)			$ 10.58
DRIP | Class A Common Stock | Common Stock
Class of Stock [Line Items]
Common stock, shares authorized, value (up to)									$ 475,000,000
Share price (in dollars per share)			10.58		$ 10.32		10		$ 9.50
Net asset value per share (in dollars per share)			10.58		10.32
DRIP | Class T Common Stock | Common Stock
Class of Stock [Line Items]
Share price (in dollars per share)			10.58		10.32		$ 10
Net asset value per share (in dollars per share)			$ 10.58		$ 10.32
Cole Corporate Income Operating Partnership II, LP
Class of Stock [Line Items]
General partner partnership interest percentage		100.00%

Organization and Business (Real

Organization and Business (Real Estate) (Details) ft² in Millions	Jun. 30, 2018ft²propertystates
Real Estate Properties [Line Items]
Number of states in which entity operates | states	19
Percentage of rentable space leased	100.00%
Consolidated properties
Real Estate Properties [Line Items]
Number of real estate properties | property	36
Net rentable area (in square feet) | ft²	11.4

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Reclassifications) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided (used) in investing activities	$ (2,556)	$ (100,743)
Accounting standards update 2016-18
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net cash provided (used) in investing activities		$ 2,000

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Real Estate) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Real Estate Properties [Line Items]
Impairment	$ 0	$ 0
Assets held for sale	0		$ 0
Capitalized interest costs	$ 0	$ 53,000
Building
Real Estate Properties [Line Items]
Acquired real estate asset, useful life (in years)	40 years
Site Improvements
Real Estate Properties [Line Items]
Acquired real estate asset, useful life (in years)	15 years

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 1,598	$ 1,431	$ 1,415
Lockbox Accounts
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	1,400	1,200
Escrow Accounts
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 187	$ 165

Summary of Significant Accoun36

Summary of Significant Accounting Policies (Revenue Recognition and Earnings per Share) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)class_of_stockshares	Jun. 30, 2017shares	Jun. 30, 2018USD ($)class_of_stockshares	Jun. 30, 2017shares	Dec. 31, 2017USD ($)
Accounting Policies [Abstract]
Allowance for doubtful accounts | $	$ 0		$ 0		$ 0
Classes of common stock | class_of_stock	2		2
Potentially dilutive share equivalents (in shares) | shares	0	0	0	0

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Estimate of fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, fair value	$ 600	$ 603
Carrying (reported) amount, fair value disclosure
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, fair value	$ 601	$ 601.5

Fair Value Measurements (Schedu

Fair Value Measurements (Schedule of Fair Value Assets and Liabilities) (Details) - Interest rate swaps - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial assets:
Financial asset	$ 4,378	$ 2,942
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Financial asset	0	0
Significant Other Observable Inputs (Level 2)
Financial assets:
Financial asset	4,378	2,942
Significant Unobservable Inputs (Level 3)
Financial assets:
Financial asset	$ 0	$ 0

Real Estate Assets (Narrative)

Real Estate Assets (Narrative) (Details) ft² in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)ft²	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)ft²propertyland_parcel	Jun. 30, 2017USD ($)property
Business Acquisition [Line Items]
Number of real estate properties acquired | property			0
Area of land available for expansion | ft²	120		120
Payments to acquire land			$ 1,400
Capitalized expenses in construction in progress	$ 1,600	$ 8,600	1,600	$ 8,600
Acquisition-related costs	85	28	85	$ 2,214
Property Acquisitions, 2017
Business Acquisition [Line Items]
Number of businesses acquired (in properties) | property				3
Aggregate purchase price				$ 93,500
Weighted average amortization period (in years)				14 years 1 month 5 days
Revenue recorded		2,000		$ 3,000
Net income (loss) recorded		$ 985		(624)
Acquisition-related costs				$ 2,100
Expansion project
Business Acquisition [Line Items]
Funding commitment to development project	$ 6,400		$ 6,400
Land
Business Acquisition [Line Items]
Number of real estate properties acquired | land_parcel			1

Real Estate Assets (Schedule of

Real Estate Assets (Schedule of Preliminary Purchase Price Allocation) (Details) - Property Acquisitions, 2017 $ in Thousands	Jun. 30, 2017USD ($)
Business Acquisition [Line Items]
Land	$ 9,807
Buildings and improvements	73,379
Total purchase price	93,465
In-Place Leases and Other Intangibles
Business Acquisition [Line Items]
Acquired in-place leases and other intangibles	$ 10,279

Real Estate Assets (Schedule 41

Real Estate Assets (Schedule of Pro Forma Revenue and Losses) (Details) - Property Acquisitions, 2017 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pro forma basis:
Revenue	$ 25,282	$ 22,699	$ 51,315	$ 44,769
Net income (loss)	$ 3,208	$ (983)	$ 5,850	$ (1,194)

Intangible Lease Assets (Detail

Intangible Lease Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Intangible lease assets	$ 91,367	$ 96,629
In-Place Leases and Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Intangible lease assets	90,258	95,459
Accumulated amortization	$ 33,142	$ 27,932
Useful life	9 years 2 months 11 days	9 years 8 months 11 days
Above-Market Leases
Finite-Lived Intangible Assets [Line Items]
Intangible lease assets	$ 1,109	$ 1,170
Accumulated amortization	$ 453	$ 391
Useful life	8 years 9 months 18 days	9 years 3 months 18 days

Intangible Lease Assets (Schedu

Intangible Lease Assets (Schedule of finite-lived intangible assets amortization expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
In-place lease and other intangible amortization
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 2,604	$ 2,577	$ 5,208	$ 5,175
Above-market lease amortization
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 31	$ 31	$ 62	$ 62

Intangible Lease Assets (Estima

Intangible Lease Assets (Estimated Amortization of Intangible lease assets) (Details) $ in Thousands	Jun. 30, 2018USD ($)
In-Place Leases and Other Intangibles
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2018	$ 5,208
2,019	10,417
2,020	10,417
2,021	10,417
2,022	10,417
Above-Market Leases
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2018	62
2,019	125
2,020	125
2,021	125
2,022	$ 125

Derivative Instruments and He45

Derivative Instruments and Hedging Activities (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)swap_agreement	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)derivativeswap_agreement	Jun. 30, 2017USD ($)
Derivative [Line Items]
Number of interest rate derivative held | swap_agreement	3		3
Amount of income (loss) reclassified from other comprehensive income (loss) into income as interest expense	$ 368,000	$ (222,000)	$ 516,000	$ (585,000)
Number of interest rate derivatives terminated			0
Interest rate swaps | Cash Flow Hedging
Derivative [Line Items]
Derivative agreement entered during period (in derivatives) | derivative			0
Interest rate cash flow hedge gain to be reclassified during next twelve months	2,600,000		$ 2,600,000
Amount required to settle obligation in case of default	$ 0		$ 0

Derivative Instruments and He46

Derivative Instruments and Hedging Activities (Schedule of Derivative Instruments) (Details) - Cash Flow Hedging - Interest rate swaps - Derivative asset, prepaid expenses and other assets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Outstanding notional amount	$ 254,070
Fair value of assets	$ 4,378	$ 2,942
Minimum
Derivatives, Fair Value [Line Items]
Interest rate (percentage)	3.29%
Maximum
Derivatives, Fair Value [Line Items]
Interest rate (percentage)	3.35%

Notes Payable and Credit Faci47

Notes Payable and Credit Facility (Fixed Rate Debt) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Long-term debt outstanding	$ 599,581	$ 599,771
Debt, weighted average interest rate (percentage)	3.80%
Weighted average years to maturity	1 year 10 months 24 days
Long-term debt, gross	$ 601,045	601,545
Fixed Rate Debt
Debt Instrument [Line Items]
Debt, weighted average interest rate (percentage)	4.10%
Long-term debt, gross	$ 295,545	$ 295,545
Net real estate assets securing the debt	$ 488,500
Minimum | Fixed Rate Debt
Debt Instrument [Line Items]
Interest rate	3.30%
Maximum | Fixed Rate Debt
Debt Instrument [Line Items]
Interest rate	4.80%
Interest rate swaps | Variable Rate Debt
Debt Instrument [Line Items]
Long-term debt, gross	$ 54,100

Notes Payable and Credit Faci48

Notes Payable and Credit Facility (Schedule of Debt) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Debt [Roll Forward]
Long-term debt, gross, beginning balance	$ 601,545
Deferred costs, beginning of period	(1,774)
Total debt, net, beginning of period	599,771
Debt issuances, gross	20,500	$ 103,000
Payments of debt issuance costs	0
Debt issuance, net	20,500
Repayments	(21,000)
Accretion	310
Accretion of deferred financing costs	310
Long-term debt, gross, ending balance	601,045
Deferred costs, ending of period	(1,464)
Total debt, net, ending of period	599,581
Fixed Rate Debt
Debt [Roll Forward]
Long-term debt, gross, beginning balance	295,545
Debt issuances, gross	0
Repayments	0
Long-term debt, gross, ending balance	295,545
Credit Facility
Debt [Roll Forward]
Long-term debt, gross, beginning balance	306,000
Debt issuances, gross	20,500
Repayments	(21,000)
Long-term debt, gross, ending balance	$ 305,500

Notes Payable and Credit Faci49

Notes Payable and Credit Facility (JP Morgan Chase Credit Facility) (Details)	6 Months Ended
	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Line of credit outstanding	$ 599,581,000	$ 599,771,000
Debt, weighted average interest rate (percentage)	3.80%
JPMorgan Chase Bank, N.A. | Line of credit
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity (up to)	$ 400,000,000
Line of credit facility, remaining borrowing capacity	89,600,000
Line of credit facility, covenant, minimum consolidated net worth	$ 193,969,000
Line of credit facility, covenant, minimum consolidated net worth (percentage)	75.00%
Line of credit facility, covenant, unsecured debt to unencumbered asset value, maximum	60.00%
Line of credit facility, covenant, unsecured debt service coverage ratio, minimum	1.75
JPMorgan Chase Bank, N.A. | Line of credit | Minimum
Debt Instrument [Line Items]
Interest rate	0.60%
Debt instrument, covenant, fixed charge coverage ratio	1.50
JPMorgan Chase Bank, N.A. | Line of credit | Maximum
Debt Instrument [Line Items]
Interest rate	1.20%
Line of credit facility, covenant, leverage ratio (less than or equal to) (percentage)	60.00%
Line of credit facility, covenant, secured debt ratio	40.00%
Line of credit facility, covenant, recourse debt coverage ratio	15.00%
JPMorgan Chase Bank, N.A. | Line of credit | Statutory Reserve Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (percentage)	1.00%
JPMorgan Chase Bank, N.A. | Line of credit | Statutory Reserve Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (percentage)	1.60%
JPMorgan Chase Bank, N.A. | Line of credit | Statutory Reserve Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (percentage)	2.20%
JPMorgan Chase Bank, N.A. | Line of credit | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate (percentage)	0.50%
JPMorgan Chase Bank, N.A. | Line of credit | Term Loan
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity (up to)	$ 200,000,000
Line of credit outstanding	$ 200,000,000
JPMorgan Chase Bank, N.A. | Line of credit | Term Loan | Interest rate swaps
Debt Instrument [Line Items]
Interest rate, effective percentage	3.30%
JPMorgan Chase Bank, N.A. | Line of credit | Revolving credit facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity (up to)	$ 200,000,000
Credit facility extension of maturity date, extension fee percent	0.20%
Line of credit outstanding	$ 105,500,000
Debt, weighted average interest rate (percentage)	4.10%

Notes Payable and Credit Faci50

Notes Payable and Credit Facility (Schedule Of Aggregate Principal Repayments) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Remainder of 2018	$ 105,500
2,019	200,000
2,020	203,465
2,021	35,100
2,022	0
Thereafter	56,980
Total	$ 601,045	$ 601,545

Intangible Lease Liabilities (S

Intangible Lease Liabilities (Schedule of lease liabilities) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Other Liabilities Disclosure [Abstract]
Acquired below market leases net of accumulated amortization	$ 22,627	$ 23,783
Acquired below market lease, accumulated amortization	$ 6,473	$ 5,317
Acquired below market lease, weighted average useful life	10 years	10 years 6 months

Intangible Lease Liabilities 52

Intangible Lease Liabilities (Schedule of amortization expense of below market lease) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
Below-market lease amortization	$ 578	$ 578	$ 1,156	$ 1,172

Intangible Lease Liabilities 53

Intangible Lease Liabilities (Schedule of finite-lived intangible liabilities, future amortization expense) (Details) $ in Thousands	Jun. 30, 2018USD ($)
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
Remainder of 2018	$ 1,157
2,019	2,314
2,020	2,314
2,021	2,314
2,022	$ 2,314

Related-Party Transactions an54

Related-Party Transactions and Arrangements (Distribution and stockholder servicing fees) (Details) - Affiliated entity	6 Months Ended
	Jun. 30, 2018
Distribution and stockholder servicing fees
Related Party Transaction [Line Items]
Distribution and servicing fee, termination of payments threshold, percentage of total gross investment	7.00%
Distribution and servicing fee, termination of payments threshold, percentage gross proceeds from shares in offering	10.00%
Class T Common Stock
Related Party Transaction [Line Items]
Distribution and stockholder servicing fee calculated on daily basis, percent	0.00219%

Related-Party Transactions an55

Related-Party Transactions and Arrangements (Acquisition fees and expenses) (Details) - Maximum - Affiliated entity - Acquisition fees and expenses	Jun. 30, 2018
Related Party Transaction [Line Items]
Acquisition fees and expenses (percentage)	2.00%
Acquisition fees and expenses reimbursed (percentage)	6.00%

Related-Party Transactions an56

Related-Party Transactions and Arrangements (Advisory fees and expenses) (Details)	Jun. 30, 2018USD ($)
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
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
Advisory fees and expenses | Affiliated entity | Average invested assets between $0 to $2 billion
Related Party Transaction [Line Items]
Annualized rate percentage paid on average invested asset	0.75%
Advisory fees and expenses | Affiliated entity | Average invested assets between $2 billion to $4 billion
Related Party Transaction [Line Items]
Annualized rate percentage paid on average invested asset	0.70%
Advisory fees and expenses | Affiliated entity | Average invested assets over $4 bilion
Related Party Transaction [Line Items]
Annualized rate percentage paid on average invested asset	0.65%

Related-Party Transactions an57

Related-Party Transactions and Arrangements (Operating expenses) (Details) - Minimum - Affiliated entity	Jun. 30, 2018
Related Party Transaction [Line Items]
Operating expense reimbursement percentage of average invested assets	2.00%
Operating expense reimbursement percentage of net income	25.00%

Related-Party Transactions an58

Related-Party Transactions and Arrangements (Disposition fees) (Details) - Affiliated entity - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Property sales commission
Related Party Transaction [Line Items]
Commissions performance and other fees percent	1.00%		1.00%
Related party transaction, expenses from transactions with related party	$ 0	$ 0	$ 0	$ 0
Maximum | Property portfolio
Related Party Transaction [Line Items]
Commissions performance and other fees percent	6.00%		6.00%
Maximum | Brokerage commission fee
Related Party Transaction [Line Items]
Commissions performance and other fees percent	50.00%		50.00%

Related-Party Transactions an59

Related-Party Transactions and Arrangements (Subordinated performance fees) (Details) - Affiliated entity - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Related Party Transaction [Line Items]
Cumulative noncompounded annual return	8.00%		8.00%
Subordinated Performance Fees
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	$ 0	$ 0	$ 0	$ 0
Subordinate Performance Fees On Event of Sale of Company
Related Party Transaction [Line Items]
Commissions performance and other fees percent	15.00%		15.00%
Subordinate Performance Fees For Listing
Related Party Transaction [Line Items]
Commissions performance and other fees percent	15.00%		15.00%

Related-Party Transactions an60

Related-Party Transactions and Arrangements (Schedule of related party transactions) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Related Party Transaction [Line Items]
Distribution and stockholder fees payable	$ 643		$ 643
Affiliated entity | Distribution and stockholder servicing fees
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	50	$ 50	99	$ 98
Affiliated entity | Acquisition fees and expenses
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	85	25	85	1,997
Affiliated entity | Advisory fees and expenses
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	2,718	2,561	5,308	5,062
Affiliated entity | Operating expenses
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	$ 436	$ 365	$ 749	$ 830

Related-Party Transactions an61

Related-Party Transactions and Arrangements (Due to Affiliates) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to affiliates	$ 1,207	$ 1,274
Advisors | Affiliated entity
Related Party Transaction [Line Items]
Due to affiliates	$ 1,200	$ 1,300

Operating Leases (Details)

Operating Leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Leases [Abstract]
Operating lease, weighted average remaining lease term	9 years 5 months 20 days
Operating Leases, Future Minimum Payments Receivable [Abstract]
Remainder of 2018	$ 43,468
2,019	87,319
2,020	88,669
2,021	89,868
2,022	91,534
Thereafter	473,544
Total	$ 874,402

Subsequent Events (Redemption o

Subsequent Events (Redemption of Shares of Common Stock) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 12, 2018	Jun. 30, 2018
Subsequent Event [Line Items]
Redemption of stock		$ 10,779
Share redemption requests unfulfilled (shares)		320
Subsequent event
Subsequent Event [Line Items]
Redemption of stock (in shares)	512
Redemption of stock	$ 5,400
Redemption of stock (in dollars per share)	$ 10.53