Peakstone Realty Trust (PKST) 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 09, 2017
Class of Stock [Line Items]
Entity Registrant Name	Griffin Capital Essential Asset REIT II, Inc.
Entity Central Index Key	1,600,626
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class A
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		25,638,409
Class T
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		48,943,741
Class I
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding		934,654

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 58,478	$ 49,340
Restricted Cash	14,221	14,221
Land	119,378	117,569
Building and improvements	797,225	787,999
Tenant origination and absorption cost	232,426	227,407
Construction in progress	14	80
Total real estate	1,149,043	1,133,055
Less: accumulated depreciation and amortization	(50,478)	(39,955)
Total real estate, net	1,098,565	1,093,100
Intangible assets, net	3,352	3,528
Real estate acquisition deposits	450	250
Deferred rent	9,597	5,424
Other assets, net	14,434	18,612
Total assets	1,199,097	1,184,475
LIABILITIES AND EQUITY
Revolving Credit Facility	330,521	330,272
AIG Loan	126,221	126,200
Total debt	456,742	456,472
Restricted reserves	35,822	55,797
Accrued expenses and other liabilities	20,943	21,527
Distributions payable	1,637	1,494
Due to affiliates	23,663	22,481
Below market leases, net	55,112	55,319
Total liabilities	593,919	613,090
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $0.001 par value, 200,000,000 shares authorized; no shares outstanding, as of March 31, 2017 and December 31, 2016	0	0
Common Stock, $0.001 par value, 700,000,000 shares authorized; 75,410,597 and 70,939,647 Class A, Class T and Class I shares outstanding in aggregate, as of March 31, 2017 and December 31, 2016, respectively.	75	71
Additional paid-in capital	652,987	615,653
Cumulative distributions	(49,348)	(38,406)
Accumulated deficit	(20,665)	(23,788)
Accumulated other comprehensive loss	1,007	841
Total stockholders' equity	584,056	554,371
Noncontrolling interests	82	84
Total equity	584,138	554,455
Total liabilities and equity	1,199,097	1,184,475
Common stock subject to redemption
LIABILITIES AND EQUITY
Common stock subject to redemption	$ 21,040	$ 16,930

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred Stock, number of shares authorized (in shares)	200,000,000	200,000,000
Preferred Stock, number of shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, number of shares authorized (in shares)	700,000,000	700,000,000
Common stock, number of shares outstanding (in shares)	75,410,597	70,939,647

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Rental income	$ 21,608	$ 10,274
Property expense recovery	4,364	2,228
Total revenue	25,972	12,502
Expenses:
Asset management fees to affiliates	2,746	1,270
Property management fees to affiliates	426	195
Property operating	1,673	762
Property tax	2,412	1,296
Acquisition fees and expenses to non-affiliates	0	94
Acquisition fees and expenses to affiliates	0	870
General and administrative	922	478
Corporate operating expenses to affiliates	591	560
Depreciation and amortization	10,523	5,626
Total expenses	19,293	11,151
Income from operations	6,679	1,351
Other income, net	24	1
Interest expense	(3,579)	(2,493)
Net income (loss)	3,124	(1,141)
Less: Net (income) loss attributable to noncontrolling interests	(1)	1
Net income (loss) attributable to common stockholders	$ 3,123	$ (1,140)
Net loss attributable to common stockholders, basic and diluted (usd per share)	$ 0.04	$ (0.03)
Weighted average number of common shares outstanding, basic and diluted (shares)	74,460,141	33,356,599
Dividends declared per common share (usd per share)	$ 0.14	$ 0.14

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,124	$ (1,141)
Other comprehensive income (loss):
Change in fair value of swap agreement	166	(17)
Total comprehensive income (loss)	3,290	(1,158)
Less: comprehensive (income) loss attributable to noncontrolling interests	(1)	1
Comprehensive income (loss) attributable to common stockholders	$ 3,289	$ (1,157)

Consolidated Statements of Equi

Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Cumulative Distributions	Accumulated Deficit	Accumulated Other Comprehensive Income	Total Stockholders’ Equity	Non- controlling Interests
Beginning balance at Dec. 31, 2015	$ 224,942	$ 29	$ 250,757	$ (8,258)	$ (17,684)	$ 0	$ 224,844	$ 98
Beginning balance (shares) at Dec. 31, 2015		28,556,170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Gross proceeds from issuance of common stock	406,463	$ 40	406,423				406,463
Gross proceeds from issuance of common stock (shares)		40,700,406
Discount on issuance of common stock	(696)		(696)				(696)
Offering costs including dealer manager fees to affiliates	(43,340)		(43,340)				(43,340)
Distributions to common stockholders	(12,479)			(12,479)			(12,479)
Issuance of shares for distribution reinvestment plan	0	$ 2	15,157	(15,159)			0
Issuance of shares for distribution reinvestment plan (shares)		1,599,355
Repurchase of common stock	(1,627)	$ 0	(1,627)				(1,627)
Repurchase of common stock (in shares)		(167,442)
Additions to common stock subject to redemption	(13,531)		(13,531)				(13,531)
Issuance of stock dividends	0	$ 0	2,510	(2,510)			0
Issuance of stock dividends (in shares)		251,158
Distributions to noncontrolling interest	(11)							(11)
Net loss	(6,107)				(6,104)		(6,104)	(3)
Other comprehensive income (loss)	841					841	841	0
Ending balance at Dec. 31, 2016	$ 554,455	$ 71	615,653	(38,406)	(23,788)	841	554,371	84
Ending balance (shares) at Dec. 31, 2016	70,939,647	70,939,647
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Gross proceeds from issuance of common stock	$ 39,292	$ 4	39,288				39,292
Gross proceeds from issuance of common stock (shares)		3,938,108
Discount on issuance of common stock	(19)		(19)				(19)
Stock-based compensation		15,000
Stock-based compensation (in shares)	140		140				140
Offering costs including dealer manager fees to affiliates	(2,950)		(2,950)				(2,950)
Distributions to common stockholders	(4,672)			(4,672)			(4,672)
Issuance of shares for distribution reinvestment plan	5,395	$ 0	5,395	(5,395)
Issuance of shares for distribution reinvestment plan (shares)		575,177
Repurchase of common stock	(1,411)	$ 0	(1,411)				(1,411)
Repurchase of common stock (in shares)		(148,675)
Additions to common stock subject to redemption	(3,984)		(3,984)				(3,984)
Issuance of stock dividends		$ 0	875	(875)
Issuance of stock dividends (in shares)		91,340
Distributions to noncontrolling interest	(3)							(3)
Net loss	3,124				3,123		3,123	1
Other comprehensive income (loss)	166					166	166	0
Ending balance at Mar. 31, 2017	$ 584,138	$ 75	$ 652,987	$ (49,348)	$ (20,665)	$ 1,007	$ 584,056	$ 82
Ending balance (shares) at Mar. 31, 2017	75,410,597	75,410,597

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Activities:
Net income (loss)	$ 3,124	$ (1,141)
Adjustments to reconcile net loss to net cash provided by (used in) operations:
Depreciation of building	4,892	2,338
Amortization of tenant origination and absorption cost	5,631	3,288
Amortization of above and below market leases	(1,033)	(806)
Amortization of deferred financing costs	272	190
Deferred rent	(4,173)	(752)
Stock-based compensation	140	0
Unrealized (gain) loss on interest rate swaps	23	(96)
Other assets, net	2,510	972
Accrued expenses and other liabilities	(458)	(1,973)
Due to affiliates, net	3,263	437
Net cash provided by operating activities	14,191	2,457
Investing Activities:
Acquisition of property, net	(14,897)	(35,200)
Restricted reserves	(19,976)	0
Restricted reserves	16	0
Payments for construction in progress	(106)	0
Real estate acquisition deposits	(200)	1,450
Net cash used in investing activities	(35,163)	(33,750)
Financing Activities:
Principal payoff of indebtedness - Credit Facility	0	(55,000)
Proceeds from borrowings - Credit Facility	0	17,900
Deferred financing costs	0	(36)
Issuance of common stock, net of discounts and offering costs	36,052	94,641
Repurchase of common stock	(1,411)	(22)
Distributions paid to common stockholders	(4,528)	(1,777)
Distributions paid to noncontrolling interests	(3)	(3)
Net cash provided by financing activities	30,110	55,703
Net increase (decrease) in cash and cash equivalents	9,138	24,410
Cash and cash equivalents at the beginning of the period	49,340	17,610
Cash and cash equivalents at the end of the period	58,478	42,020
Supplemental Disclosures of Non-Cash Transactions:
Increase in fair value of swap agreement	166	0
Increase in Stockholder Servicing Fee Payable	355	0
Increase in distributions payable - common stock	143	192
Common stock issued pursuant to the distribution reinvestment plan	$ 5,395	$ 2,507

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Griffin Capital Essential Asset REIT II, Inc., a Maryland corporation (the “Company”), was formed on November 20, 2013 under the Maryland General Corporation Law and qualified as a real estate investment trust (“REIT”) commencing with the year ended December 31, 2015. The Company was organized primarily with the purpose of acquiring single tenant net lease properties that are considered essential to the occupying tenant, and has used a substantial amount of the net proceeds from its initial public offering to invest in these properties. The Company’s year end is December 31. Griffin Capital Company, LLC, a Delaware limited liability company (the “Sponsor”), is the sponsor of the Company. The Sponsor, which was formerly known as Griffin Capital Corporation, began operations in 1995 to principally engage in acquiring and developing office and industrial properties. Kevin A. Shields, the Company's Chief Executive Officer and Chairman of the Company's board of directors, controls the Sponsor. Griffin Capital Essential Asset Advisor II, LLC, a Delaware limited liability company (the “Advisor”) was formed on November 19, 2013. Griffin Capital Real Estate Company, LLC a Delaware limited liability company ("GRECO") is the sole member of the Advisor and Griffin Capital, LLC, a Delaware limited liability company ("GC") is the sole member of GRECO. The Sponsor is the sole member of GC. The Advisor is responsible for managing the Company’s affairs on a day-to-day basis and identifying and making acquisitions and investments on behalf of the Company under the terms of the Advisory Agreement (as defined in Note 10, Related Party Transactions ). The Company's officers are also officers of the Advisor and officers of the Sponsor. Griffin Capital Securities, LLC (the “Dealer Manager”) is a Delaware limited liability company and is a wholly-owned subsidiary of GC. The Dealer Manager was responsible for marketing the Company’s shares offered pursuant to the Company's initial public offering. The Company’s property manager is Griffin Capital Essential Asset Property Management II, LLC, a Delaware limited liability company (the “Property Manager”), which was formed on November 19, 2013 to manage the Company’s properties, or provide oversight of other property managers engaged by the Company or an affiliate of the Company. The Property Manager will derive substantially all of its income from the property management services it will perform for the Company. The Company’s Articles of Incorporation initially authorized 30,000 shares of common stock. On February 11, 2014, the Advisor purchased 100 shares of common stock for one thousand dollars and became the initial stockholder. Upon the Securities and Exchange Commission ("SEC") declaring the offering effective on July 31, 2014, the Company’s Articles of Amendment and Restatement were filed with the State of Maryland and authorized 700,000,000 shares of common stock allocated as 350,000,000 Class A shares and 350,000,000 Class T shares with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001 . On April 25, 2016, the Company reclassified (i) 100,000,000 authorized but unissued shares of the Company's Class A common stock, and (ii) 50,000,000 authorized but unissued shares of the Company's Class T common stock, as 150,000,000 shares of Class I common stock. The Company registered $2.2 billion in common shares in its initial public offering (“Offering”), consisting of $2.0 billion in common shares to be offered to the public in the primary public offering (“Primary Offering”) and $200.0 million in common shares for sale pursuant to the distribution reinvestment plan (“DRP”). (See Note 8, Equity, for additional details.) In September 2016, the Company's board of directors approved the close of the Primary Offering effective January 20, 2017; however, the Company continued to offer shares pursuant to the DRP. On April 6, 2017, the Company filed a Registration Statement on Form S-3 with the SEC for the registration of 3.0 million shares for sale pursuant to the DRP (the “DRP Offering”). The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. Griffin Capital Essential Asset Operating Partnership II, L.P., a Delaware limited partnership (the “Operating Partnership”), was formed on November 21, 2013. On February 11, 2014, the Advisor purchased a 99% limited partnership interest and special limited partnership interest in the Operating Partnership for $0.2 million and on February 11, 2014, the Company contributed the initial one thousand dollars capital contribution it received to the Operating Partnership in exchange for a 1% general partner interest. The Operating Partnership owns, and will own, directly or indirectly, all of the properties acquired by the Company. The Operating Partnership will conduct certain activities through the Company’s taxable REIT subsidiary, Griffin Capital Essential Asset TRS II, Inc., a Delaware corporation (the “TRS”) formed on November 22, 2013, which is a wholly-owned subsidiary of the Operating Partnership. The TRS had no activity as of March 31, 2017 .

Summary of Significant Accounti

Summary of Significant Accounting Policies and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Basis of Presentation	Summary of Significant Accounting Policies and Basis of Presentation There have been no significant changes to the Company’s accounting policies since the Company filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2016 (except as noted below). For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC. Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Change in Consolidated Financial Statements Presentation Certain amounts in the Company's prior period consolidated financial statements have been reclassified to conform to the current period presentation. Corporate operating expenses to affiliates are presented separately from general and administrative expenses on the consolidated income statement for all periods presented. Real Estate Purchase Price Allocation In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-01, Business Combinations, (see “Recently Issued Accounting Pronouncements” below) that clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. This update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for transactions that have not been reported in previously issued (or available to be issued) financial statements. The Company adopted this accounting standard early effective October 1, 2016. As a result of this adoption, the Company evaluated one real estate acquisition completed during the first quarter of 2017 under the new framework and determined that the asset acquired did not meet the definition of a business. Accordingly, the Company accounted for this transaction as an asset acquisition (see Note 3, Real Estate ). Revenue Recognition Leases associated with the acquisition and contribution of certain real estate assets (see Note 3, Real Estate ), have net minimum rent payment increases during the term of the lease and are recorded to rental revenue on a straight-line basis, commencing as of the contribution or acquisition date. If a lease provides for contingent rental income, the Company will defer the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Tenant reimbursement revenue, which is comprised of additional amounts collected from tenants for the recovery of certain operating expenses, including repair and maintenance, property taxes and insurance, and capital expenditures, to the extent allowed pursuant to the lease (collectively "Recoverable Expenses"), is recognized as revenue when the additional rent is due. Recoverable Expenses to be reimbursed by a tenant are determined based on the Company's estimate of the property's operating expenses for the year, pro rated based on leased square footage of the property, and are collected in equal installments as additional rent from the tenant, pursuant to the terms of the lease. At the end of each quarter, the Company reconciles the amount of additional rent paid by the tenant during the quarter to the actual amount of Recoverable Expenses incurred by the Company for the same period. The difference, if any, is either charged or credited to the tenant pursuant to the provisions of the lease. In certain instances, the lease may restrict the amount the Company can recover from the tenant such as a cap on certain or all property operating expenses. Per Share Data The Company reports earnings per share for the period as (1) basic earnings per share computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period, and (2) diluted earnings per share computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding, including common stock equivalents. As of March 31, 2017 and December 31, 2016 , there were no material common stock equivalents that would have a dilutive effect on earnings (loss) per share for common stockholders. The Company retroactively adjusted the number of common shares outstanding in accordance with ASC 260-10, Earnings per Share. ASC 260-10 requires the computations of basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect the change in capital structure, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split. If changes in common stock resulting from stock dividends, stock splits, or reverse stock splits occur after the close of the period but before the consolidated financial statements are issued or are available to be issued, the per-share computations for those and any prior-period consolidated financial statements presented shall be based on the new number of shares. Segment Information ASC Topic 280, Segment Reporting , establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. The Company internally evaluates all of the properties and interests therein as one reportable segment. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-01, Business Combinations, that clarified the definition of a business. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this update on October 1, 2016. Refer to “ Real Estate Purchase Price Allocation ” above for a discussion of this new accounting pronouncement. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 replaces substantially all industry-specific revenue recognition requirements and converges areas under this topic with International Financial Reporting Standards. ASU No. 2014-09 implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. ASU No. 2014-09 also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. Other major provisions in ASU No. 2014-09 include capitalizing and amortizing certain contract costs, ensuring the time value of money is considered in the applicable transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. ASU No. 2014-09 was originally effective for reporting periods beginning after December 31, 2016 (for public entities). On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year, to annual reporting periods beginning after December 15, 2017. On July 9, 2015, the FASB affirmed its proposal to defer the effective date to annual reporting periods beginning after December 15, 2017, although entities may elect to adopt the standard as of the original effective date. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The amendments clarify how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09. ASU No. 2014-09 was originally effective for reporting periods beginning after December 31, 2016 (for public entities). On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year, to annual reporting periods beginning after December 15, 2017. On July 9, 2015, the FASB affirmed its proposal to defer the effective date to annual reporting periods beginning after December 15, 2017, although entities may elect to adopt the standard as of the original effective date. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements.

Real Estate

Real Estate	3 Months Ended
	Mar. 31, 2017
Real Estate [Abstract]
Real Estate	Real Estate As of March 31, 2017 , the Company's real estate portfolio consisted of 26 properties ( 34 buildings) in 16 states consisting of office, industrial, distribution, and data center facilities with a combined acquisition value of $1.1 billion including the allocation of the purchase price to above and below-market lease valuation, encompassing approximately 7.2 million square feet. Depreciation expense for buildings and improvements for the three months ended March 31, 2017 was $ 4.9 million . Amortization expense for intangibles, including but not limited to, tenant origination and absorption costs for the three months ended March 31, 2017 , was $ 5.6 million . The purchase price and other acquisition items for the property acquired during the three months ended March 31, 2017 are shown below. Paid to Advisor Property Location Tenant/Major Lessee Acquisition Date Purchase Price Approx. Square Feet Acquisition Fees and Reimbursable Expenses (1) Contingent Advisor Payment (2) Year of Lease Expiration Allstate Lone Tree, CO Allstate Insurance Co. 1/31/2017 $ 14,750 (3) 70,300 $ 402 $ 273 2026 (1) The fee consists of a 2.0% base acquisition fee and acquisition expense reimbursement for actual acquisition expenses incurred, estimated to be approximately 1% of acquisition value. (See Note 10, Related Party Transactions , for additional discussion.) (2) Pursuant to the Advisory Agreement, the Advisor is entitled to receive an acquisition fee in an amount up to 3.85% of the contract purchase price (as such term is defined in the Advisory Agreement) for each property the Company acquires. The acquisition fee consists of a 2.0% base acquisition fee and up to an additional 1.85% contingent advisor payment (the "Contingent Advisor Payment"); provided, however, that $5.0 million of amounts advanced by the Advisor for dealer manager fees and organizational and offering expenses (the "Contingent Advisor Payment Holdback") will be retained by the Company until the later of (a) the termination of the Offering, including any follow-on offerings, or (b) July 31, 2017, at which time such amount shall be paid to the Advisor. In connection with a follow-on offering, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such follow-on offering and the amount sold in prior offerings. (3) The purchase price for the Allstate property was $14.8 million , plus closing costs, less a credit in the amount of $0.4 million applied at closing. Real Estate - Valuation and Purchase Price Allocation The Company allocates the purchase price to the fair value of the tangible assets of a property by valuing the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon Level 3 inputs, which are unobservable inputs based on the Company's review of the assumptions a market participant would use. These Level 3 inputs include discount rates, capitalization rates, market rents and comparable sales data for similar properties. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. In calculating the “as-if vacant” value for acquisitions completed during the three months ended March 31, 2017 , the Company used discount rates ranging from 6.00% to 8.25% . In determining the fair value of intangible lease assets or liabilities, the Company also considers Level 3 inputs. Acquired above- and below-market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with asset acquisitions are capitalized in the period they are incurred. The following summarizes the purchase price allocation for the property acquired during the three months ended March 31, 2017 : Property Land Building and Improvements Tenant Origination and Absorption Cost In-Place Lease Valuation Above Market In-Place Lease Valuation (Below) Market Total Allstate (1) $ 1,808 $ 9,071 $ 5,019 $ — $ (1,001 ) $ 14,897 (1) The Company evaluated the transaction above, under the clarified framework for determining whether an integrated set of assets and activities meets the definition of a business, pursuant to the ASU issued in January 2017, which the Company early-adopted effective October 1, 2016. Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. Since the transaction above lacked a substantive process, the transaction did not meet the definition of a business and consequently was accounted for as an asset acquisition. The Company allocated the total consideration (including acquisition costs of approximately $0.5 million ) to the individual assets and liabilities acquired on a relative fair value basis. Future Minimum Contractual Rent Payments The future minimum contractual rent payments pursuant to the current lease terms are shown in the table below. The Company's current leases have expirations ranging from 2020 to 2044. As of March 31, 2017 Remaining 2017 $ 47,750 2018 69,793 2019 76,943 2020 78,520 2021 70,675 Thereafter 588,948 Total $ 932,629 Intangibles The Company allocated a portion of the acquired real estate asset value to in-place lease valuation and tenant origination and absorption cost, as discussed above and as shown below. The in-place lease was measured against comparable leasing information and the present value of the difference between the contractual, in-place rent and the fair market rent was calculated using, as the discount rate, the capitalization rate utilized to compute the value of the real estate at acquisition. March 31, 2017 December 31, 2016 In-place lease valuation (above market) $ 3,828 $ 3,828 In-place lease valuation (above market), accumulated amortization (476 ) (300 ) Intangible assets, net $ 3,352 $ 3,528 In-place lease valuation (below market) $ (62,070 ) $ (61,069 ) In-place lease valuation (below market) - accumulated amortization 6,958 5,750 In-place lease valuation (below market), net $ (55,112 ) $ (55,319 ) Tenant origination and absorption cost $ 232,426 $ 227,407 Tenant origination and absorption cost - accumulated amortization (29,040 ) (23,409 ) Tenant origination and absorption cost, net $ 203,386 $ 203,998 The intangible assets are amortized over the remaining lease terms of the respective properties, which on a weighted-average basis, was approximately 11.1 and 11.4 years as of March 31, 2017 and December 31, 2016 , respectively. The amortization of the intangible assets and other leasing costs for the respective periods is as follows: Amortization (income) expense for the three months ended March 31, 2017 2016 In-place lease valuation $ (1,033 ) $ (806 ) Tenant origination and absorption cost $ 5,631 $ 3,288 The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, and tenant origination and absorption costs as of March 31, 2017 for the next five years : Year In-Place Lease Valuation Tenant Origination and Absorption Costs Remaining 2017 $ (3,539 ) $ 17,485 2018 (4,719 ) 23,313 2019 (4,719 ) 23,313 2020 (4,719 ) 23,313 2021 (3,823 ) 18,829

Debt

Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt	Debt As of March 31, 2017 and December 31, 2016, the Company's debt and related deferred financing costs consisted of the following: As of March 31, 2017 As of December 31, 2016 Contractual Interest Rate (1) Payment Type Loan Maturity Effective Interest Rate (4) Revolving Credit Facility $ 333,458 $ 333,458 2.29% Interest Only December 2019 (2) 2.77% AIG Loan 126,970 126,970 4.15% Interest Only (3) November 2025 4.22% Total Debt 460,428 460,428 Unamortized deferred financing costs (3,686 ) (3,956 ) Total Debt, net $ 456,742 $ 456,472 (1) The 2.29% contractual interest rate is based on a 360 -day year, pursuant to the Revolving Credit Facility, whereas the 2.32% weighted-average interest rate is based on a 365 -day year. As discussed below, the interest rate on the Revolving Credit Facility (as defined below) is a one-month LIBO Rate + 1.50% . As of March 31, 2017 , the LIBO Rate was 0.79% . Including the effect of an interest rate swap agreement with a notional amount of $100.0 million , the weighted average interest rate as of March 31, 2017 was approximately 2.81% for the Company's fixed-rate and variable-rate debt combined. (2) The Revolving Credit Facility has an initial term of four years, maturing on December 12, 2018, and may be extended for a one -year period if certain conditions are met and upon payment of an extension fee. See discussion below. (3) The AIG Loan (as defined below) requires monthly payments of interest only, at a fixed rate, for the first five years and fixed monthly payments of principal and interest thereafter. (4) Reflects the effective interest rate at March 31, 2017 and includes the effect of amortization of deferred financing costs. Revolving Credit Facility On December 12, 2014, the Company, through the Operating Partnership, entered into a revolving credit agreement (the “Revolving Credit Facility”), co-led by KeyBank, N.A. ("KeyBank") and JPMorgan Chase Bank, N.A. with KeyBank as administrative agent, JPMorgan Chase Bank, N.A. as syndication agent, and a syndicate of lenders. Pursuant to the Revolving Credit Facility, the Company was provided with an initial commitment of $250.0 million , which commitment may be increased under certain circumstances up to a maximum total commitment of $1.25 billion . On August 11, 2015, the Company exercised its right under the credit agreement to increase the total commitments from $250.0 million to $410.0 million . On November 22, 2016, the Company, through the Operating Partnership, entered into an amendment (the "Increase Agreement") to the Revolving Credit Facility with KeyBank as administrative agent; Bank of America, N.A., SunTrust Bank, Capital One, National Association ("Capital One"), and Wells Fargo Bank, National Association, as co-syndication agents; and KeyBanc Capital Markets, Merrill Lynch, Pierce, Fenner and Smith Incorporated, SunTrust Robinson Humphrey, Inc., Capital One, and Wells Fargo Securities, LLC as joint lead arrangers and joint bookrunners to exercise its right under the Revolving Credit Facility to increase the total commitments from $410.0 million to $550.0 million . In connection with the Increase Agreement, the Company, through the Operating Partnership, also entered into a Joinder Agreement with KeyBank and U.S. Bank National Association ("U.S. Bank"), for the admission of U.S. Bank as a lender with a commitment of $50.0 million under the Revolving Credit Facility (the "Joinder Agreement"). With the admission of U.S. Bank, JPMorgan Chase Bank, N.A. terminated its commitment under the Revolving Credit Facility and no longer serves as a lender, syndication agent, joint bookrunner, or joint lead arranger under the Revolving Credit Facility. AIG Loan On October 22, 2015, six special purpose entities that are wholly-owned by the Operating Partnership entered into promissory notes with The Variable Annuity Life Insurance Company, American General Life Insurance Company, and the United States Life Insurance Company (collectively, the "Lenders"), pursuant to which the Lenders provided such special purpose entities with a loan in the aggregate amount of approximately $127.0 million (the "AIG Loan"). Debt Covenant Compliance Pursuant to the terms of the Revolving Credit Facility and AIG Loan, the Company is subject to certain loan compliance covenants. The Company was in compliance with all applicable covenants as of March 31, 2017 .

Interest Rate Contracts

Interest Rate Contracts	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Contracts	Interest Rate Contracts Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both business operations and economic conditions. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of debt funding and the use of derivative financial instruments. Specifically, the Company entered into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by expected cash payments principally related to borrowings and interest rates. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company does not use derivatives for trading or speculative purposes. Derivative Instruments On February 25, 2016, the Company entered into an interest rate swap agreement to hedge the variable cash flows associated with the LIBO Rate-based variable-rate debt, on the Company's Revolving Credit Facility. The interest rate swap is effective for the period from April 1, 2016 to December 12, 2018 with a notional amount of $100.0 million . The effective portion of the change in fair value of derivatives designated and qualifying as cash flow hedges is initially recorded in accumulated other comprehensive income ("AOCI") and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. The following table sets forth a summary of the interest rate swap at March 31, 2017 and December 31, 2016: Fair value (1) Derivative Instrument Effective Date Maturity Date Interest Strike Rate March 31, 2017 December 31, 2016 Assets: Interest Rate Swap 4/1/2016 12/12/2018 0.74% $ 1,139 $ 996 (1) The Company records all derivative instruments on a gross basis on the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. As of March 31, 2017 , the Company's derivative was in an asset position, and as such, the fair value is included in the line item "Other Assets, net" on the consolidated balance sheet. (2) Represents the notional amount of swap that was effective as of the balance sheet date of March 31, 2017 and December 31, 2016. The following table sets forth the impact of the interest rate swap on the consolidated statements of operations for the three months ended March 31, 2017 : Three Months Ended March 31, 2017 Interest Rate Swap in Cash Flow Hedging Relationship: Amount of (loss) gain recognized in AOCI on derivatives (effective portion) $ 176 Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” (effective portion) $ (10 ) Amount of (loss) gain recognized in earnings under “Interest expense” (ineffective portion and amount excluded from effectiveness testing) $ (23 ) During the next twelve months, the Company estimates that an additional $0.5 million of income will be recognized from AOCI into earnings. Certain agreements with the derivative counterparties contain a provision where if the Company defaults on any of the Company's indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender within a specified time period, then the Company could also be declared in default on its derivative obligations. As of March 31, 2017 , the fair value of interest rate swap was in an asset position excluding any adjustment for nonperformance risk related to these agreements, which was approximately $1.1 million . As of March 31, 2017 , the Company had not posted any collateral related to these agreements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company is required to disclose fair value information about all financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. The Company measures and discloses the estimated fair value of financial assets and liabilities utilizing a fair value hierarchy that distinguishes between data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities, (ii) "significant other observable inputs," and (iii) "significant unobservable inputs." "Significant other observable inputs" can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. "Significant unobservable inputs" are typically based on an entity’s own assumptions, since there is little, if any, related market activity. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers between the levels in the fair value hierarchy during the three months ended March 31, 2017 . The following tables set forth the assets/(liabilities) that the Company measures at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2017 : Total Fair Value Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Interest Rate Swaps at: March 31, 2017 $ 1,139 $ — $ 1,139 $ — December 31, 2016 $ 996 $ — $ 996 $ — Financial instruments as of March 31, 2017 consisted of cash and cash equivalents, accounts receivable, accounts payable, other accrued expenses, and borrowings. With the exception of the mortgage loan in the table below, the amounts of the financial instruments presented in the consolidated financial statements substantially approximate their fair value as of March 31, 2017 . The fair value of the mortgage loan is estimated by discounting the loan’s principal balance over the remaining term of the mortgage using current borrowing rates available to the Company for debt instruments with similar terms and maturities. The Company determined that the mortgage loan valuation in its entirety is classified in Level 2 of the fair value hierarchy, as the fair value is based on current pricing for debt with similar terms as the in-place debt, and there were no transfers into and out of fair value measurement levels during the three months ended March 31, 2017 and for the year ended December 31, 2016. March 31, 2017 December 31, 2016 Fair Value Carrying Value (1) Fair Value Carrying Value (1) AIG Loan $ 121,746 $ 126,970 $ 120,322 $ 126,970 (1) The carrying value of the AIG loan does not include deferred financing costs as of March 31, 2017 and December 31, 2016 . See Note 4, Debt , for details.

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Liabilities and Other Liabilities	Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Prepaid rent $ 8,742 $ 9,484 Leasing commission payable 3,783 3,783 Other liabilities 8,418 8,260 Total $ 20,943 $ 21,527

Equity

Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Equity	Equity Status of Offering In September 2016, the Company's board of directors approved the close of the Primary Offering effective January 20, 2017; however, the Company continued to offer shares pursuant to the DRP. On April 6, 2017, the Company filed a Registration Statement on Form S-3 with the SEC for the registration of 3.0 million shares for sale pursuant to the DRP. The DRP Offering may be terminated at any time upon 10 days’ prior written notice to stockholders. Share Classes Class A shares, Class T shares and Class I shares vote together as a single class, and each share is entitled to one vote on each matter submitted to a vote at meetings of the Company's stockholders; provided that with respect to any matter that would only have a material adverse effect on the rights of a particular class of common stock, only the holders of such affected class are entitled to vote. Each class of common stock is entitled to the same distributions as other classes, and the net asset value, or NAV, per share is the same across share classes. The following table summarizes shares issued and gross proceeds for each share class as of March 31, 2017 : Class A Class T Class I Total Gross proceeds from Primary Offering $ 240,780 $ 474,859 $ 8,381 $ 724,020 Gross proceeds from DRP $ 14,056 $ 10,959 $ 127 $ 25,142 Shares issued in Primary Offering 24,199,760 47,563,177 901,225 72,664,162 DRP shares issued 1,483,469 1,160,545 13,489 2,657,503 Stock distribution shares issued 203,109 184,489 2,451 390,049 Restricted stock units issued — — 15,000 15,000 Total shares issued prior to redemptions 25,886,338 48,908,211 932,165 75,726,714 Offering and Organizational Costs Pursuant to the Advisory Agreement, in no event will the Company be obligated to reimburse the Advisor for organizational and offering costs (effective November 2, 2015, only to the extent such costs exceed 1.0% of gross offering proceeds from the Company's public offering) incurred in connection with the Offering totaling in excess of (i) 3.5% (excluding sales commissions, dealer manager fees and stockholder servicing fees) of the gross proceeds raised in the Offering (excluding gross proceeds from the distribution reinvestment plan), and (ii) 15% (including selling commissions, dealer manager fees, stockholder servicing fees and non-accountable due diligence expense allowance but excluding acquisition fees and expenses) of the gross proceeds raised in the Offering (excluding gross proceeds from the DRP). If the organization and offering costs exceeded such limits discussed above, within 60 days after the end of the month in which the Offering terminated or was completed, the Advisor would have been obligated to reimburse the Company for any excess amounts. As long as the Company is subject to the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association (“NASAA REIT Guidelines”), such limitations discussed above will also apply to any future public offerings. As of March 31, 2017 and December 31, 2016 , organizational and offering costs were 0.8% of gross offering proceeds, for both periods presented, excluding selling commissions, dealer manager fees and stockholder servicing fees, and 10.4% and 10.6% of gross offering proceeds, respectively, including selling commissions, dealer manager fees and stockholder servicing fees. As of March 31, 2017 and December 31, 2016 , organizational and offering costs did not exceed the limitations. Organizational and offering costs incurred as of March 31, 2017 and December 31, 2016 , including those incurred by the Company and due to the Advisor, for the Offering are as follows: March 31, 2017 December 31, 2016 Cumulative offering costs $ 74,818 $ 72,009 Cumulative organizational costs $ 717 $ 717 Organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback $ 4,074 $ 4,074 Less payments $ (4,074 ) $ (4,074 ) Net organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback (1) $ — $ — Advisor Advances: Organizational and offering costs advanced by the Advisor 2,925 $ 2,477 Dealer Manager fees advanced by the Advisor 3,444 2,932 Net organizational and offering costs and Dealer Manager fees advanced by the Advisor $ 6,369 $ 5,409 (1) See Note 10, Related Party Transactions , for discussion on Contingent Advisor Payment Holdback. Distribution Reinvestment Plan The Company adopted a DRP that allows stockholders to have distributions otherwise distributable to them invested in additional shares of common stock. The plan became effective on July 31, 2014, and was amended and restated effective as of May 9, 2016. No selling commission, dealer manager fee or stockholder servicing fee are paid on shares sold through the DRP. Amendment and Restatement of Distribution Reinvestment Plan On November 15, 2016, the Company's board of directors amended and restated the Company's DRP to state that, effective as of November 28, 2016, until the Company announces an estimated net asset value ("NAV") per share, the purchase price per share under the DRP will be $9.40 per share. The Company announced the estimated NAV per share on February 16, 2017; consequently, the purchase price per share under the DRP equals the published NAV per share, which is $9.37 per share. Share Redemption Program The Company adopted a share redemption program that will enable stockholders to sell their stock to the Company in limited circumstances. As long as the common stock is not listed on a national securities exchange or over-the-counter market, stockholders who have held their stock for at least one year may be able to have all or a portion consisting of at least 25% of their shares of stock redeemed by the Company. During any calendar year, the Company will not redeem more than 5.0% of the weighted average number of shares outstanding during the prior calendar year. The cash available for redemption will be limited to the proceeds from the sale of shares pursuant to the Company’s DRP. Share redemption requests must be received by the Company no later than the last business day of the calendar quarter, and shares generally will be redeemed on the last business day of the month following such calendar quarter. The redemption price per share is expected to be the redemption rate set forth in the following table which is based upon the number of years the stock is held: Number Years Held Redemption Price per Share Less than 1 year No Redemption Allowed After one year from the purchase date 90.0% of the Redemption Amount (as defined below) After two years from the purchase date 95.0% of the Redemption Amount After three years from the purchase date 97.5% of the Redemption Amount After four years from the purchase date 100.0% of the Redemption Amount The Redemption Amount for shares purchased under the Company's share redemption program shall be the lesser of (i) the amount the stockholder paid for their shares or (ii) the NAV of the shares. The redemption price per share will be reduced by the aggregate amount of net proceeds per share, if any, distributed to the stockholders prior to the repurchase date as a result of a “special distribution.” While the board of directors does not have specific criteria for determining a special distribution, the Company expects that a special distribution will only occur upon the sale of a property and the subsequent distribution of the net sale proceeds. The redemption price per share is subject to adjustment as determined from time to time by the board of directors. As the use of the proceeds from the DRP for redemptions is outside the Company’s control, the net proceeds from the DRP are considered to be temporary equity and are presented as common stock subject to redemption on the accompanying consolidated balance sheets. The cumulative proceeds from the DRP, net of any redemptions, will be computed at each reporting date and will be classified as temporary equity on the Company’s consolidated balance sheets. As noted above, the redemption is limited to proceeds from new permanent equity from the sale of shares pursuant to the Company’s DRP. As of March 31, 2017 , $ 21.0 million of common stock was available for redemption and $1.1 million of common stock was reclassified from redeemable common stock to accrued expenses and other liabilities in the consolidated balance sheet as of March 31, 2017 . Share-Based Compensation The Company’s board of directors adopted a long-term incentive plan (“Plan”), which provides for the grant of awards to the Company's directors and full-time employees (should the Company ever have employees), directors and full-time employees of the Advisor and affiliate entities that provide services to the Company, and certain consultants that provide services to the Company, the Advisor, or affiliate entities. Awards granted under the Plan may consist of stock options, restricted stock, stock appreciation rights, distribution equivalent rights and other equity-based awards. The stock-based payment will be measured at fair value and recognized as compensation expense over the vesting period. The term of the Plan is ten years and the total number of shares of common stock reserved for issuance under the Plan will be equal to 10% of the outstanding shares of stock at any time, not to exceed 10,000,000 shares in the aggregate. During the first quarter of 2017, the Company issued an aggregate of 15,000 shares of restricted stock to the Company's independent directors. These restricted shares fully vested upon issuance.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interest	Noncontrolling Interests Noncontrolling interests represent limited partnership interests in the Operating Partnership. The Operating Partnership issued 20,000 limited partnership units for $10 .00 per unit on February 11, 2014, to the Advisor in exchange for the initial capitalization of the Operating Partnership. As of March 31, 2017 , noncontrolling interests were approximately 0.03% of total shares and of weighted average shares outstanding (both measures assuming limited partnership units were converted to common stock). The Company evaluates individual noncontrolling interests for the ability to recognize the noncontrolling interest as permanent equity on the consolidated balance sheets at the time such interests are issued and on a continual basis. Any noncontrolling interest that fails to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (a) the carrying amount, or (b) its redemption value as of the end of the period in which the determination is made. The limited partners of the Operating Partnership will have the right to cause the Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of shares, or, at the Company’s option, the Company may purchase such limited partners' limited partnership units by issuing one share of common stock for each limited partnership unit redeemed. These rights may not be exercised under certain circumstances which could cause the Company to lose its REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. The limited partnership units are reported on the consolidated balance sheets as noncontrolling interests. The following summarizes the activity for noncontrolling interests for the three months ended March 31, 2017 and the year ended December 31, 2016 : Three Months Ended March 31, 2017 Year Ended December 31, 2016 Beginning balance $ 84 $ 98 Distributions to noncontrolling interests (3 ) (11 ) Net income (loss) 1 (3 ) Other comprehensive income (loss) — — Ending balance $ 82 $ 84

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The following table summarizes the related party costs and fees incurred, paid and due to affiliates as of March 31, 2017 and December 31, 2016 : Year Ended December 31, 2016 Three Months Ended March 31, 2017 Payable Incurred Paid Payable Advisor and Property Manager fees Acquisition fees and expenses $ — $ 402 $ 402 $ — Operating expenses 18 591 — 609 Asset management fees 807 2,746 2,634 919 Property management fees 143 426 426 143 Other costs advanced by the Advisor 12 203 — 215 Selling commissions 54 1,125 1,179 — Dealer Manager fees 18 392 410 — Stockholder servicing fee (1) 16,020 355 967 15,408 Advisor Advances: (2) Organization and offering expenses 2,477 448 (4) — 2,925 Dealer Manager fees (3) 2,932 789 (4) 277 3,444 Total $ 22,481 $ 7,477 $ 6,295 $ 23,663 (1) The Dealer Manager is entitled to receive a stockholder servicing fee with respect to Class T shares that will be payable quarterly and will accrue daily in an amount equal to 1/365th of 1.0% of the purchase price per share (or, once reported, the amount of the estimated NAV) of Class T shares sold in the Primary Offering up to a maximum of 4% of gross proceeds of Class T shares sold. (2) Pursuant to the Advisory Agreement, commencing November 2, 2015, the Company remains obligated to reimburse the Advisor for organizational and offering costs incurred after such date, but only to the extent that such costs exceed 1.0% of the gross offering proceeds of the Company’s Offering (subject to the limits discussed in Note 8, Equity ). In addition, the Advisor is entitled to receive an acquisition fee in an amount up to 3.85% of the contract purchase price (as such term is defined in the Advisory Agreement) for each property the Company acquires. The acquisition fee consists of a 2.0% base acquisition fee and up to an additional 1.85% Contingent Advisor Payment; provided, however, the Contingent Advisor Payment Holdback will be retained by the Company until the later of (a) the termination of the Offering, including any follow-on offerings, or (b) July 31, 2017, at which time such amount shall be paid to the Advisor. In connection with a follow-on offering, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such follow-on offering and the amount sold in prior offerings. (3) The Dealer Manager Agreement (as defined below and commencing on April 25, 2016 to incorporate Class I shares) provides that the Dealer Manager is entitled to receive a selling commission up to 3.0% of gross proceeds from Class T shares sold in the Primary Offering and a dealer manager fee equal to 3.0% of gross proceeds from Class T shares or Class I shares sold in the Primary Offering. Pursuant to the Dealer Manager Agreement, of the 3.0% dealer manager fee for Class T and Class I shares, 1.0% will be funded by the Company and 2.0% will be funded by the Advisor. (4) Approximately $0.1 million and $0.2 million of offering and organizational costs, respectively, related to the proposed offering. The Advisory Agreement requires, upon termination of the Offering, that any organizational and offering costs, including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 15% of gross equity raised in the Company’s Offering and that any organizational and offering costs not including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 3.5% of gross equity raised in the Company’s Offering shall be reimbursed to the Company. Advisory Agreement The Company entered into the advisory agreement with the Advisor and the Operating Partnership on July 31, 2014, as amended by Amendment No. 1 to the Advisory Agreement dated March 18, 2015, Amendment No. 2 to the Advisory Agreement dated November 2, 2015, Amendment No. 3 to the Advisory Agreement dated December 16, 2015 and Amendment No. 4 to the Advisory Agreement dated February 9, 2016 (together with such amendments, the “Advisory Agreement”). The Advisor manages the Company’s day-to-day activities pursuant to the Advisory Agreement. Pursuant to the Advisory Agreement, the Company is obligated to reimburse the Advisor for certain services and payments, including payments made by the Advisor to third parties, including in connection with potential acquisitions. The Advisory Agreement requires, upon termination of the Offering, that any organizational and offering costs, including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 15% of gross equity raised in the Company’s Offering and that any organizational and offering costs not including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 3.5% of gross equity raised in the Company’s Offering shall be reimbursed to the Company. The Advisory Agreement provides that the Company shall reimburse the Advisor for organizational and offering costs, subject to the limitations described above. In conjunction with subsequent amendments to the Advisory Agreement, commencing November 2, 2015, the Company remains obligated to reimburse the Advisor for organizational and offering costs incurred after such date, but only to the extent that such costs exceed 1.0% of the gross offering proceeds of the Company’s Offering. Acquisition Fees Commencing November 2, 2015, the Advisor is entitled to receive a fee in an amount up to 3.85% of the contract purchase price (as such term is defined in the Advisory Agreement) of each property the Company acquires. The fee consists of a 2.0% base acquisition fee and up to an additional 1.85% Contingent Advisor Payment; provided, however, that $5.0 million Contingent Advisor Payment Holdback will be retained by the Company until the later of (a) the termination of the Offering, including any follow-on offerings, or (b) July 31, 2017, at which time such amount shall be paid to the Advisor. In connection with a follow-on offering, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such follow-on offering and the amount sold in prior offerings. The amount of the Contingent Advisor Payment paid upon the closing of an acquisition will be reviewed on an acquisition by acquisition basis and such payment shall not exceed the then outstanding amounts paid by the Advisor for dealer manager fees and organizational and offering expenses at the time of such closing after taking into account the amount of the Contingent Advisor Payment Holdback described above. For these purposes, the amounts paid by the Advisor and considered as "outstanding" will be reduced by the amount of the Contingent Advisor Payment previously paid. The Advisor may waive or defer all or a portion of the acquisition fee or the Contingent Advisor Payment at any time and from time to time, in the Advisor's sole discretion. Asset Management Fee The Advisor receives an annual asset management fee for managing the Company’s assets equal to 1.0% of the Average Invested Assets, defined as the aggregate carrying value of the assets invested before reserves for depreciation. The fee will be computed based on the average of these values at the end of each month. The asset management fees are earned monthly. Operating Expenses The Advisor and its affiliates are entitled to reimbursement for certain expenses incurred on behalf of the Company in connection with providing administrative services, including related personnel costs; provided, however, the Advisor must reimburse the Company for the amount, if any, by which total operating expenses (as defined), including advisory fees, paid during the previous 12 months then ended exceeded the greater of: (i) 2% of the Company’s average invested assets for that 12 months then ended; or (ii) 25% of the Company’s net income, before any additions to reserves for depreciation, bad debts or other expenses connected with the acquisition and disposition of real estate interests and before any gain from the sale of the Company’s assets, for that fiscal year, unless the Company’s board of directors has determined that such excess expenses were justified based on unusual and non-recurring factors. The Company reimbursed the Advisor and its affiliates a portion of the compensation paid by the Advisor and its affiliates for the Company's principal financial officer, Javier F. Bitar, executive vice president, David C. Rupert, and vice president and general counsel, Mary P. Higgins of approximately $0.2 million , which is included in offering costs as of March 31, 2017 , for services provided to the Company, for which the Company does not pay the Advisor a fee. In addition, the Company incurred approximately $0.1 million in reimbursable expenses to the Advisor for services provided to the Company by certain of its other executive officers for each of the three months ended March 31, 2017 and 2016. The reimbursable expenses include components of salaries, bonuses, benefits and other overhead charges and are based on the percentage of time each executive officer spends on the Company's affairs. Dealer Manager Agreement The Company entered into a dealer manager agreement with the Dealer Manager on June 20, 2014, as amended by Amendment No. 1 to the Dealer Manager Agreement dated November 25, 2014, as amended by Amendment No. 2 to the Dealer Manager Agreement dated October 9, 2015, and Amendment No. 3 to the Dealer Manager Agreement dated April 25, 2016 and entered into participating dealer agreements with various broker-dealers authorizing them to sell shares of the Company’s stock in the Primary Offering (together with the dealer manager agreement and all amendments, the “Dealer Manager Agreement”). Through October 30, 2015, the Dealer Manager Agreement provided that the Dealer Manager was entitled to receive a selling commission and dealer manager fee equal to 7.0% and 3.0% , respectively, of gross proceeds from Class A shares sold in the Primary Offering. Commencing November 2, 2015, the Dealer Manager Agreement provided that the Dealer Manager was entitled to receive a selling commission equal to up to 3.0% of gross proceeds from Class T shares sold in the Primary Offering and a dealer manager fee equal to 3.0% of gross proceeds from Class T shares sold in the Primary Offering. Commencing April 25, 2016, the Dealer Manager Agreement provides that the Dealer Manager is entitled to receive a selling commission equal to up to 3.0% of gross proceeds from Class T shares sold in the Primary Offering and an aggregate dealer manager fee equal to 3.0% of gross proceeds from Class T shares and Class I shares sold in the Primary Offering. Pursuant to the Dealer Manager Agreement, of the 3.0% dealer manager fee, 1.0% will be funded by the Company and 2.0% will be funded by the Advisor. In addition, the Dealer Manager is entitled to receive an ongoing stockholder servicing fee with respect to Class T shares that will be payable quarterly and will accrue daily in an amount equal to 1/365th of 1.0% of the purchase price per share (or, once reported, the amount of the estimated NAV) of Class T shares sold in the Primary Offering up to a maximum of 4% of gross proceeds of Class T shares sold. The Company will cease paying the stockholder servicing fee with respect to the Class T shares sold in the Offering at the earlier of (i) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of shares in the Primary Offering (i.e., excluding proceeds from sales pursuant to the DRP); (ii) the fourth anniversary of the last day of the fiscal quarter in which the Offering (excluding the DRP offering) terminates; (iii) the date that such Class T share is redeemed or is no longer outstanding; and (iv) the occurrence of a merger, listing on a national securities exchange, or an extraordinary transaction. Upon the sale of shares by participating broker-dealers, the Dealer Manager re-allowed all of the selling commissions paid in connection with sales made by these participating broker-dealers and may, in the Dealer Manager’s discretion, re-allow all of the stockholder servicing fees paid in connection with sales of Class T shares made by these participating broker-dealers for providing ongoing or regular account or portfolio maintenance for the stockholder, assisting with recordkeeping, assisting and processing distribution payments, assisting with share repurchase requests, offering to meet with the stockholder periodically to provide overall guidance on the stockholder’s investment in the Company or to answer questions about the account statement or valuations, or providing other similar services as the stockholder may reasonably require in connection with such stockholder’s investment in Class T Shares; provided, however, that with respect to any individual investment, the Dealer Manager will not re-allow the related stockholder servicing fee to any broker-dealer if such broker-dealer ceases to hold the account related to such investment or fails to provide the aforementioned services . In any instance in which the Dealer Manager does not re-allow the stockholder servicing fee to a participating broker-dealer, the Dealer Manager will return such fee to the Company. The Dealer Manager also generally re-allowed to participating broker-dealers a portion of the 3.0% dealer manager fee earned on the proceeds raised by the participating broker-dealers as marketing fees, reimbursement of the costs and expenses of attending training and education meetings sponsored by the Dealer Manager, payment of attendance fees required for employees of the Dealer Manager or other affiliates to attend retail seminars sponsored by participating broker-dealers, or to defray other distribution-related expenses. Property Management Agreement In the event that the Company contracts directly with non-affiliated third party property managers with respect to its individual properties, the Company pays the Property Manager an oversight fee equal to 1.0% of the gross revenues of the property managed, plus reimbursable costs as applicable. Reimbursable costs and expenses include wages and salaries and other expenses of employees engaged in operating, managing and maintaining the Company's properties, as well as certain allocations of office, administrative, and supply costs. In the event that the Company contracts directly with the Property Manager with respect to a particular property, the Company pays the Property Manager aggregate property management fees of up to 3.0% , or greater if the lease so allows, of gross revenues received for management of the Company's properties, plus reimbursable costs as applicable. These property management fees may be paid or re-allowed to third party property managers if the Property Manager contracts with a third party. In no event will the Company pay both a property management fee to the Property Manager and an oversight fee to the Property Manager with respect to a particular property. In addition, the Company may pay the Property Manager or its designees a leasing fee in an amount equal to the fee customarily charged by others rendering similar services in the same geographic area. The Company may also pay the Property Manager or its designees a construction management fee for planning and coordinating the construction of any tenant directed improvements for which the Company is responsible to perform pursuant to lease concessions, including tenant-paid finish-out or improvements. The Property Manager shall also be entitled to a construction management fee of 5.0% of the cost of improvements. In the event that the Property Manager assists with the development or redevelopment of a property, the Company may pay a separate market-based fee for such services. Conflicts of Interest The Sponsor, Advisor, Property Manager and their officers and certain of their key personnel and their respective affiliates currently serve as key personnel, advisors, managers and sponsors or co-sponsors to some or all of 13 other programs affiliated with the Sponsor, including Griffin Capital Essential Asset REIT, Inc. ("GCEAR"), Griffin-American Healthcare REIT III, Inc. ("GAHR III"), and Griffin-American Healthcare REIT IV, Inc. ("GAHR IV"), all of which are publicly-registered, non-traded real estate investment trusts, Griffin-Benefit Street Partners BDC Corp. ("GB-BDC"), a non-traded business development company regulated under the Investment Company Act of 1940 (the "1940 Act"), and Griffin Institutional Access Real Estate Fund ("GIA Real Estate Fund") and Griffin Institutional Access Credit Fund ("GIA Credit Fund"), both of which are non-diversified, closed-end management investment companies that are operated as interval funds under the 1940 Act. Because these persons have competing demands on their time and resources, they may have conflicts of interest in allocating their time between the Company’s business and these other activities. Some of the material conflicts that the Advisor, the Dealer Manager or its affiliates will face are (1) competing demand for time of the Advisor’s executive officers and other key personnel from the Sponsor and other affiliated entities; (2) determining if certain investment opportunities should be recommended to the Company or another program sponsored or co-sponsored by the Sponsor; and (3) influence of the fee structure under the Advisory Agreement and distribution structure of the operating partnership agreement that could result in actions not necessarily in the long-term best interest of the stockholders. The board of directors has adopted the Sponsor’s acquisition allocation policy as to the allocation of acquisition opportunities among the Company and GCEAR, which is as follows: The Sponsor will allocate potential investment opportunities to GCEAR and the Company based on the following factors: • the investment objectives of each program; • the amount of funds available to each program; • the financial impact of the acquisition on each program, including each program’s earnings and distribution ratios; • various strategic considerations that may impact the value of the investment to each program; • the effect of the acquisition on diversification of each program’s investments; and • the income tax effects of the purchase to each program. In the event all acquisition allocation factors have been exhausted and an investment opportunity remains equally suitable for GCEAR and the Company, the Sponsor will offer the investment opportunity to the REIT that has had the longest period of time elapse since it was offered an investment opportunity. If the Sponsor no longer sponsors GCEAR, then, in the event that an investment opportunity becomes available that is suitable, under all of the factors considered by the Advisor, for both the Company and one or more other entities affiliated with the Sponsor, the Sponsor has agreed to present such investment opportunities to the Company first, prior to presenting such opportunities to any other programs sponsored by or affiliated with the Sponsor. In determining whether or not an investment opportunity is suitable for more than one program, the Advisor, subject to approval by the board of directors, shall examine, among others, the following factors: • anticipated cash flow of the property to be acquired and the cash requirements of each program; • effect of the acquisition on diversification of each program’s investments; • policy of each program relating to leverage of properties; • income tax effects of the purchase to each program; • size of the investment; and • amount of funds available to each program and the length of time such funds have been available for investment. Economic Dependency The Company will be dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of properties and other investments, management of the daily operations of the Company’s real estate portfolio, and other general and administrative responsibilities. In the event that the Advisor is unable to provide these services, the Company will be required to obtain such services from other resources.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is the Company aware of any pending or threatened litigation that would have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably.

Declaration of Distributions

Declaration of Distributions	3 Months Ended
	Mar. 31, 2017
Declaration of Distributions [Abstract]
Declaration of Distributions	Declaration of Distributions During the quarter ended March 31, 2017 , the Company paid cash distributions in the amount of $0.0015068493 per day per share per Class A share, Class T share and Class I share on the outstanding shares of common stock and stock distributions in the amount of 0.000013699 Class A shares, Class T shares or Class I shares per day per share payable to stockholders of record at the close of business on each day during the period from January 1, 2017 through March 31, 2017 . Such distributions were paid on a monthly basis, on or about the first day of the month, for the month then-ended. On March 7, 2017, the Company's board of directors declared cash distributions in the amount of $0.0015068493 per day per share per Class A share, Class T share and Class I share on the outstanding shares of common stock and stock distributions in the amount of 0.000013699 Class A shares, Class T shares or Class I shares of stock per day per share payable to stockholders of record at the close of business on each day during the period from April 1, 2017 through June 30, 2017. Such distributions payable to each stockholder of record during a month will be paid on such date of the following month as the Company's Chief Executive Officer may determine.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Offering Status As of May 9, 2017, the Company had issued 2,852,172 of the Company’s common stock pursuant to the DRP for approximately $27.0 million . Filing of Registration Statement on Form S-3 On April 6, 2017, the Company filed a Registration Statement on Form S-3 (File No. 333-217178) (the "S-3 Registration Statement") to register 3,000,000 shares of common stock to be sold pursuant to the DRP.

Summary of Significant Accoun21

Summary of Significant Accounting Policies and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates.
Change in Consolidated Financial Statements Presentation	Change in Consolidated Financial Statements Presentation Certain amounts in the Company's prior period consolidated financial statements have been reclassified to conform to the current period presentation. Corporate operating expenses to affiliates are presented separately from general and administrative expenses on the consolidated income statement for all periods presented.
Real Estate Purchase Price Allocation	Real Estate Purchase Price Allocation In January 2017, the FASB issued Accounting Standards Update ("ASU") 2017-01, Business Combinations, (see “Recently Issued Accounting Pronouncements” below) that clarifies the framework for determining whether an integrated set of assets and activities meets the definition of a business. The revised framework establishes a screen for determining whether an integrated set of assets and activities is a business and narrows the definition of a business, which is expected to result in fewer transactions being accounted for as business combinations. Acquisitions of integrated sets of assets and activities that do not meet the definition of a business are accounted for as asset acquisitions. This update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted for transactions that have not been reported in previously issued (or available to be issued) financial statements. The Company adopted this accounting standard early effective October 1, 2016. As a result of this adoption, the Company evaluated one real estate acquisition completed during the first quarter of 2017 under the new framework and determined that the asset acquired did not meet the definition of a business. Accordingly, the Company accounted for this transaction as an asset acquisition (see Note 3, Real Estate ).
Revenue Recognition	Revenue Recognition Leases associated with the acquisition and contribution of certain real estate assets (see Note 3, Real Estate ), have net minimum rent payment increases during the term of the lease and are recorded to rental revenue on a straight-line basis, commencing as of the contribution or acquisition date. If a lease provides for contingent rental income, the Company will defer the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Tenant reimbursement revenue, which is comprised of additional amounts collected from tenants for the recovery of certain operating expenses, including repair and maintenance, property taxes and insurance, and capital expenditures, to the extent allowed pursuant to the lease (collectively "Recoverable Expenses"), is recognized as revenue when the additional rent is due. Recoverable Expenses to be reimbursed by a tenant are determined based on the Company's estimate of the property's operating expenses for the year, pro rated based on leased square footage of the property, and are collected in equal installments as additional rent from the tenant, pursuant to the terms of the lease. At the end of each quarter, the Company reconciles the amount of additional rent paid by the tenant during the quarter to the actual amount of Recoverable Expenses incurred by the Company for the same period. The difference, if any, is either charged or credited to the tenant pursuant to the provisions of the lease. In certain instances, the lease may restrict the amount the Company can recover from the tenant such as a cap on certain or all property operating expenses.
Per Share Data	Per Share Data The Company reports earnings per share for the period as (1) basic earnings per share computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period, and (2) diluted earnings per share computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding, including common stock equivalents. As of March 31, 2017 and December 31, 2016 , there were no material common stock equivalents that would have a dilutive effect on earnings (loss) per share for common stockholders. The Company retroactively adjusted the number of common shares outstanding in accordance with ASC 260-10, Earnings per Share. ASC 260-10 requires the computations of basic and diluted earnings per share shall be adjusted retroactively for all periods presented to reflect the change in capital structure, if the number of common shares outstanding increases as a result of a stock dividend or stock split or decreases as a result of a reverse stock split. If changes in common stock resulting from stock dividends, stock splits, or reverse stock splits occur after the close of the period but before the consolidated financial statements are issued or are available to be issued, the per-share computations for those and any prior-period consolidated financial statements presented shall be based on the new number of shares.
Segment Information	Segment Information ASC Topic 280, Segment Reporting , establishes standards for reporting financial and descriptive information about a public entity’s reportable segments. The Company internally evaluates all of the properties and interests therein as one reportable segment.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU 2017-01, Business Combinations, that clarified the definition of a business. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The Company adopted this update on October 1, 2016. Refer to “ Real Estate Purchase Price Allocation ” above for a discussion of this new accounting pronouncement. In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of 2019. Early adoption of ASU 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU No. 2014-09”). ASU No. 2014-09 replaces substantially all industry-specific revenue recognition requirements and converges areas under this topic with International Financial Reporting Standards. ASU No. 2014-09 implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. ASU No. 2014-09 also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. Other major provisions in ASU No. 2014-09 include capitalizing and amortizing certain contract costs, ensuring the time value of money is considered in the applicable transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. ASU No. 2014-09 was originally effective for reporting periods beginning after December 31, 2016 (for public entities). On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year, to annual reporting periods beginning after December 15, 2017. On July 9, 2015, the FASB affirmed its proposal to defer the effective date to annual reporting periods beginning after December 15, 2017, although entities may elect to adopt the standard as of the original effective date. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The amendments clarify how an entity should identify the unit of accounting (i.e., the specified good or service) for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of ASU No. 2014-09. ASU No. 2014-09 was originally effective for reporting periods beginning after December 31, 2016 (for public entities). On April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year, to annual reporting periods beginning after December 15, 2017. On July 9, 2015, the FASB affirmed its proposal to defer the effective date to annual reporting periods beginning after December 15, 2017, although entities may elect to adopt the standard as of the original effective date. The Company is currently evaluating the impact of adopting the standard on the consolidated financial statements.

Real Estate (Tables)

Real Estate (Tables)	3 Months Ended
	Mar. 31, 2017
Real Estate [Abstract]
Aggregate purchase price of the acquisitions	The purchase price and other acquisition items for the property acquired during the three months ended March 31, 2017 are shown below. Paid to Advisor Property Location Tenant/Major Lessee Acquisition Date Purchase Price Approx. Square Feet Acquisition Fees and Reimbursable Expenses (1) Contingent Advisor Payment (2) Year of Lease Expiration Allstate Lone Tree, CO Allstate Insurance Co. 1/31/2017 $ 14,750 (3) 70,300 $ 402 $ 273 2026 (1) The fee consists of a 2.0% base acquisition fee and acquisition expense reimbursement for actual acquisition expenses incurred, estimated to be approximately 1% of acquisition value. (See Note 10, Related Party Transactions , for additional discussion.) (2) Pursuant to the Advisory Agreement, the Advisor is entitled to receive an acquisition fee in an amount up to 3.85% of the contract purchase price (as such term is defined in the Advisory Agreement) for each property the Company acquires. The acquisition fee consists of a 2.0% base acquisition fee and up to an additional 1.85% contingent advisor payment (the "Contingent Advisor Payment"); provided, however, that $5.0 million of amounts advanced by the Advisor for dealer manager fees and organizational and offering expenses (the "Contingent Advisor Payment Holdback") will be retained by the Company until the later of (a) the termination of the Offering, including any follow-on offerings, or (b) July 31, 2017, at which time such amount shall be paid to the Advisor. In connection with a follow-on offering, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such follow-on offering and the amount sold in prior offerings. (3) The purchase price for the Allstate property was $14.8 million , plus closing costs, less a credit in the amount of $0.4 million applied at closing.
Summary of purchase price allocation	The following summarizes the purchase price allocation for the property acquired during the three months ended March 31, 2017 : Property Land Building and Improvements Tenant Origination and Absorption Cost In-Place Lease Valuation Above Market In-Place Lease Valuation (Below) Market Total Allstate (1) $ 1,808 $ 9,071 $ 5,019 $ — $ (1,001 ) $ 14,897 (1) The Company evaluated the transaction above, under the clarified framework for determining whether an integrated set of assets and activities meets the definition of a business, pursuant to the ASU issued in January 2017, which the Company early-adopted effective October 1, 2016. Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. Since the transaction above lacked a substantive process, the transaction did not meet the definition of a business and consequently was accounted for as an asset acquisition. The Company allocated the total consideration (including acquisition costs of approximately $0.5 million ) to the individual assets and liabilities acquired on a relative fair value basis.
Schedule of future minimum contractual rent payments	The future minimum contractual rent payments pursuant to the current lease terms are shown in the table below. The Company's current leases have expirations ranging from 2020 to 2044. As of March 31, 2017 Remaining 2017 $ 47,750 2018 69,793 2019 76,943 2020 78,520 2021 70,675 Thereafter 588,948 Total $ 932,629
Schedule of allocated real estate asset value	The in-place lease was measured against comparable leasing information and the present value of the difference between the contractual, in-place rent and the fair market rent was calculated using, as the discount rate, the capitalization rate utilized to compute the value of the real estate at acquisition. March 31, 2017 December 31, 2016 In-place lease valuation (above market) $ 3,828 $ 3,828 In-place lease valuation (above market), accumulated amortization (476 ) (300 ) Intangible assets, net $ 3,352 $ 3,528 In-place lease valuation (below market) $ (62,070 ) $ (61,069 ) In-place lease valuation (below market) - accumulated amortization 6,958 5,750 In-place lease valuation (below market), net $ (55,112 ) $ (55,319 ) Tenant origination and absorption cost $ 232,426 $ 227,407 Tenant origination and absorption cost - accumulated amortization (29,040 ) (23,409 ) Tenant origination and absorption cost, net $ 203,386 $ 203,998
Schedule of intangible asset amortization and other leasing costs	The amortization of the intangible assets and other leasing costs for the respective periods is as follows: Amortization (income) expense for the three months ended March 31, 2017 2016 In-place lease valuation $ (1,033 ) $ (806 ) Tenant origination and absorption cost $ 5,631 $ 3,288
Schedule of estimated annual amortization (income) expense	The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, and tenant origination and absorption costs as of March 31, 2017 for the next five years : Year In-Place Lease Valuation Tenant Origination and Absorption Costs Remaining 2017 $ (3,539 ) $ 17,485 2018 (4,719 ) 23,313 2019 (4,719 ) 23,313 2020 (4,719 ) 23,313 2021 (3,823 ) 18,829

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Debt	As of March 31, 2017 and December 31, 2016, the Company's debt and related deferred financing costs consisted of the following: As of March 31, 2017 As of December 31, 2016 Contractual Interest Rate (1) Payment Type Loan Maturity Effective Interest Rate (4) Revolving Credit Facility $ 333,458 $ 333,458 2.29% Interest Only December 2019 (2) 2.77% AIG Loan 126,970 126,970 4.15% Interest Only (3) November 2025 4.22% Total Debt 460,428 460,428 Unamortized deferred financing costs (3,686 ) (3,956 ) Total Debt, net $ 456,742 $ 456,472 (1) The 2.29% contractual interest rate is based on a 360 -day year, pursuant to the Revolving Credit Facility, whereas the 2.32% weighted-average interest rate is based on a 365 -day year. As discussed below, the interest rate on the Revolving Credit Facility (as defined below) is a one-month LIBO Rate + 1.50% . As of March 31, 2017 , the LIBO Rate was 0.79% . Including the effect of an interest rate swap agreement with a notional amount of $100.0 million , the weighted average interest rate as of March 31, 2017 was approximately 2.81% for the Company's fixed-rate and variable-rate debt combined. (2) The Revolving Credit Facility has an initial term of four years, maturing on December 12, 2018, and may be extended for a one -year period if certain conditions are met and upon payment of an extension fee. See discussion below. (3) The AIG Loan (as defined below) requires monthly payments of interest only, at a fixed rate, for the first five years and fixed monthly payments of principal and interest thereafter. (4) Reflects the effective interest rate at March 31, 2017 and includes the effect of amortization of deferred financing costs.

Interest Rate Contracts (Tables

Interest Rate Contracts (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments	The following table sets forth a summary of the interest rate swap at March 31, 2017 and December 31, 2016: Fair value (1) Derivative Instrument Effective Date Maturity Date Interest Strike Rate March 31, 2017 December 31, 2016 Assets: Interest Rate Swap 4/1/2016 12/12/2018 0.74% $ 1,139 $ 996 (1) The Company records all derivative instruments on a gross basis on the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. As of March 31, 2017 , the Company's derivative was in an asset position, and as such, the fair value is included in the line item "Other Assets, net" on the consolidated balance sheet. (2) Represents the notional amount of swap that was effective as of the balance sheet date of March 31, 2017 and December 31, 2016.
Impact of Interest Rate Swap on Consolidated Statements of Operation	The following table sets forth the impact of the interest rate swap on the consolidated statements of operations for the three months ended March 31, 2017 : Three Months Ended March 31, 2017 Interest Rate Swap in Cash Flow Hedging Relationship: Amount of (loss) gain recognized in AOCI on derivatives (effective portion) $ 176 Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” (effective portion) $ (10 ) Amount of (loss) gain recognized in earnings under “Interest expense” (ineffective portion and amount excluded from effectiveness testing) $ (23 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables set forth the assets/(liabilities) that the Company measures at fair value on a recurring basis by level within the fair value hierarchy as of March 31, 2017 : Total Fair Value Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Interest Rate Swaps at: March 31, 2017 $ 1,139 $ — $ 1,139 $ — December 31, 2016 $ 996 $ — $ 996 $ — The Company determined that the mortgage loan valuation in its entirety is classified in Level 2 of the fair value hierarchy, as the fair value is based on current pricing for debt with similar terms as the in-place debt, and there were no transfers into and out of fair value measurement levels during the three months ended March 31, 2017 and for the year ended December 31, 2016. March 31, 2017 December 31, 2016 Fair Value Carrying Value (1) Fair Value Carrying Value (1) AIG Loan $ 121,746 $ 126,970 $ 120,322 $ 126,970 (1) The carrying value of the AIG loan does not include deferred financing costs as of March 31, 2017 and December 31, 2016 . See Note 4, Debt , for details.

Accrued Expenses and Other Li26

Accrued Expenses and Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consisted of the following as of March 31, 2017 and December 31, 2016 : March 31, 2017 December 31, 2016 Prepaid rent $ 8,742 $ 9,484 Leasing commission payable 3,783 3,783 Other liabilities 8,418 8,260 Total $ 20,943 $ 21,527

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Schedule of shares issued and gross proceeds for each class	The following table summarizes shares issued and gross proceeds for each share class as of March 31, 2017 : Class A Class T Class I Total Gross proceeds from Primary Offering $ 240,780 $ 474,859 $ 8,381 $ 724,020 Gross proceeds from DRP $ 14,056 $ 10,959 $ 127 $ 25,142 Shares issued in Primary Offering 24,199,760 47,563,177 901,225 72,664,162 DRP shares issued 1,483,469 1,160,545 13,489 2,657,503 Stock distribution shares issued 203,109 184,489 2,451 390,049 Restricted stock units issued — — 15,000 15,000 Total shares issued prior to redemptions 25,886,338 48,908,211 932,165 75,726,714
Organizational and Offering Costs Incurred	Organizational and offering costs incurred as of March 31, 2017 and December 31, 2016 , including those incurred by the Company and due to the Advisor, for the Offering are as follows: March 31, 2017 December 31, 2016 Cumulative offering costs $ 74,818 $ 72,009 Cumulative organizational costs $ 717 $ 717 Organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback $ 4,074 $ 4,074 Less payments $ (4,074 ) $ (4,074 ) Net organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback (1) $ — $ — Advisor Advances: Organizational and offering costs advanced by the Advisor 2,925 $ 2,477 Dealer Manager fees advanced by the Advisor 3,444 2,932 Net organizational and offering costs and Dealer Manager fees advanced by the Advisor $ 6,369 $ 5,409 (1) See Note 10, Related Party Transactions , for discussion on Contingent Advisor Payment Holdback
Share redemption price	The redemption price per share is expected to be the redemption rate set forth in the following table which is based upon the number of years the stock is held: Number Years Held Redemption Price per Share Less than 1 year No Redemption Allowed After one year from the purchase date 90.0% of the Redemption Amount (as defined below) After two years from the purchase date 95.0% of the Redemption Amount After three years from the purchase date 97.5% of the Redemption Amount After four years from the purchase date 100.0% of the Redemption Amount

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interest	The following summarizes the activity for noncontrolling interests for the three months ended March 31, 2017 and the year ended December 31, 2016 : Three Months Ended March 31, 2017 Year Ended December 31, 2016 Beginning balance $ 84 $ 98 Distributions to noncontrolling interests (3 ) (11 ) Net income (loss) 1 (3 ) Other comprehensive income (loss) — — Ending balance $ 82 $ 84

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table summarizes the related party costs and fees incurred, paid and due to affiliates as of March 31, 2017 and December 31, 2016 : Year Ended December 31, 2016 Three Months Ended March 31, 2017 Payable Incurred Paid Payable Advisor and Property Manager fees Acquisition fees and expenses $ — $ 402 $ 402 $ — Operating expenses 18 591 — 609 Asset management fees 807 2,746 2,634 919 Property management fees 143 426 426 143 Other costs advanced by the Advisor 12 203 — 215 Selling commissions 54 1,125 1,179 — Dealer Manager fees 18 392 410 — Stockholder servicing fee (1) 16,020 355 967 15,408 Advisor Advances: (2) Organization and offering expenses 2,477 448 (4) — 2,925 Dealer Manager fees (3) 2,932 789 (4) 277 3,444 Total $ 22,481 $ 7,477 $ 6,295 $ 23,663 (1) The Dealer Manager is entitled to receive a stockholder servicing fee with respect to Class T shares that will be payable quarterly and will accrue daily in an amount equal to 1/365th of 1.0% of the purchase price per share (or, once reported, the amount of the estimated NAV) of Class T shares sold in the Primary Offering up to a maximum of 4% of gross proceeds of Class T shares sold. (2) Pursuant to the Advisory Agreement, commencing November 2, 2015, the Company remains obligated to reimburse the Advisor for organizational and offering costs incurred after such date, but only to the extent that such costs exceed 1.0% of the gross offering proceeds of the Company’s Offering (subject to the limits discussed in Note 8, Equity ). In addition, the Advisor is entitled to receive an acquisition fee in an amount up to 3.85% of the contract purchase price (as such term is defined in the Advisory Agreement) for each property the Company acquires. The acquisition fee consists of a 2.0% base acquisition fee and up to an additional 1.85% Contingent Advisor Payment; provided, however, the Contingent Advisor Payment Holdback will be retained by the Company until the later of (a) the termination of the Offering, including any follow-on offerings, or (b) July 31, 2017, at which time such amount shall be paid to the Advisor. In connection with a follow-on offering, the Contingent Advisor Payment Holdback may increase, based upon the maximum offering amount in such follow-on offering and the amount sold in prior offerings. (3) The Dealer Manager Agreement (as defined below and commencing on April 25, 2016 to incorporate Class I shares) provides that the Dealer Manager is entitled to receive a selling commission up to 3.0% of gross proceeds from Class T shares sold in the Primary Offering and a dealer manager fee equal to 3.0% of gross proceeds from Class T shares or Class I shares sold in the Primary Offering. Pursuant to the Dealer Manager Agreement, of the 3.0% dealer manager fee for Class T and Class I shares, 1.0% will be funded by the Company and 2.0% will be funded by the Advisor. (4) Approximately $0.1 million and $0.2 million of offering and organizational costs, respectively, related to the proposed offering. The Advisory Agreement requires, upon termination of the Offering, that any organizational and offering costs, including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 15% of gross equity raised in the Company’s Offering and that any organizational and offering costs not including selling commissions, dealer manager fees, and stockholder servicing fees, incurred above 3.5% of gross equity raised in the Company’s Offering shall be reimbursed to the Company.

Organization - Narrative (Detai

Organization - Narrative (Details) - USD ($)	Apr. 06, 2017	Mar. 31, 2017	Dec. 31, 2016	Apr. 25, 2016	Jul. 31, 2014	Feb. 11, 2014	Nov. 20, 2013
Subsidiary, Sale of Stock [Line Items]
Common stock, number of shares authorized (in shares)		700,000,000	700,000,000		700,000,000		30,000
Common stock, number of shares outstanding (in shares)		75,410,597	70,939,647			100
Common stock value purchased by Advisor						$ 1,000
Common stock, par value (in USD per share)		$ 0.001	$ 0.001		$ 0.001
Preferred Stock, number of shares authorized (in shares)		200,000,000	200,000,000		200,000,000
Preferred Stock, par value (in USD per share)		$ 0.001	$ 0.001		$ 0.001
Offering amount in sales of shares					$ 2,200,000,000
Limited liability partnership percentage of interest held						99.00%
Limited partnership, purchase price						$ 200,000
Initial capital contribution						$ 1,000
General partner percentage interest obtained						1.00%
IPO
Subsidiary, Sale of Stock [Line Items]
Offering amount in sales of shares					2,000,000,000
Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Common stock of the Company pursuant to the distribution reinvestment plan (in shares)					$ 200,000,000
Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, number of shares authorized (in shares)				100,000,000	350,000,000
Class T
Subsidiary, Sale of Stock [Line Items]
Common stock, number of shares authorized (in shares)				50,000,000	350,000,000
Class I
Subsidiary, Sale of Stock [Line Items]
Common stock, number of shares authorized (in shares)				150,000,000
Subsequent Event | Distribution Reinvestment Plan
Subsidiary, Sale of Stock [Line Items]
Share registration of stock to be sold (shares)	3,000,000

Summary of Significant Accoun31

Summary of Significant Accounting Policies and Basis of Presentation - Narrative (Details)	3 Months Ended
	Mar. 31, 2017segment
Accounting Policies [Abstract]
Number of reportable segments	1

Real Estate - Narrative (Detail

Real Estate - Narrative (Details)	Nov. 02, 2015USD ($)	Dec. 31, 2015	Mar. 31, 2017USD ($)ft²statePropertybuilding	Mar. 31, 2016USD ($)	Dec. 31, 2016	Mar. 31, 2017USD ($)ft²statePropertybuilding
Real Estate Properties [Line Items]
Number of properties (property) | Property			26			26
Number of buildings (building) | building			34			34
Number of states (state) | state			16			16
Aggregate purchase price of acquired properties			$ 1,100,000,000			$ 1,100,000,000
Area of real estate property (in sqft) | ft²			7,200,000			7,200,000
Depreciation of building			$ 4,892,000	$ 2,338,000
Amortization expense			$ 5,600,000
Advisory fee, base rate		2.00%	2.00%			2.00%
Estimate of acquisition value (percent)			1.00%
Total acquisition fee	3.85%					3.85%
Advisory fee, contingent percentage	1.85%					1.85%
Amount retained subject to conditions	$ 5,000,000		$ 5,000,000			$ 5,000,000
Amortization period for intangible assets			11 years 1 month 6 days		11 years 4 months 24 days
Minimum
Real Estate Properties [Line Items]
As-if-vacant valuation, discount rate (percent)			6.00%
Maximum
Real Estate Properties [Line Items]
As-if-vacant valuation, discount rate (percent)			8.25%
The Allstate Property [Member]
Real Estate Properties [Line Items]
Area of real estate property (in sqft) | ft²			70,300			70,300
Purchase price			$ 14,750,000
Purchase price credit applied at closing			402,000
Purchase price consideration			$ 500,000

Real Estate - Real Estate Portf

Real Estate - Real Estate Portfolio (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)ft²
Real Estate Properties [Line Items]
Square Feet (in sqft) | ft²	7,200,000
The Allstate Property [Member]
Real Estate Properties [Line Items]
Purchase Price	$ 14,750
Square Feet (in sqft) | ft²	70,300
Acquisition fees and reimbursable expenses	$ 402
Contingent advisor payment	$ 273

Real Estate - Purchase Price Al

Real Estate - Purchase Price Allocation (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Summary of purchase price allocation
Land	$ 119,378,000	$ 117,569,000
Building and Improvements	797,225,000	787,999,000
Tenant Origination and Absorption Cost	232,426,000	227,407,000
In-Place Lease Valuation Above Market	3,828,000	3,828,000
Total real estate	1,149,043,000	$ 1,133,055,000
The Allstate Property [Member]
Summary of purchase price allocation
Land	1,808
Building and Improvements	9,071
Tenant Origination and Absorption Cost	5,019
In-Place Lease Valuation Above Market	0
In-Place Lease Valuation (Below) Market	(1,001)
Total real estate	$ 14,897

Real Estate - Future Minimum Co

Real Estate - Future Minimum Contractual Rent Payments (Details) $ in Thousands	Mar. 31, 2017USD ($)
Schedule of future minimum net rent payments
Remaining 2,017	$ 47,750
2,018	69,793
2,019	76,943
2,020	78,520
2,021	70,675
Thereafter	588,948
Total	$ 932,629

Real Estate - In-Place Lease Va

Real Estate - In-Place Lease Valuation and Tenant Origination and Absorption Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Above Market Lease [Abstract]
In-place lease valuation (above market)	$ 3,828	$ 3,828
In-place lease valuation (above market), accumulated amortization	(476)	(300)
Intangible assets, net	3,352	3,528
Below Market Lease, Net [Abstract]
In-place lease valuation (below market)	(62,070)	(61,069)
In-place lease valuation (below market) - accumulated amortization	6,958	5,750
In-place lease valuation (below market), net	(55,112)	(55,319)
Tenant Origination and Absorption Cost
Finite-Lived Intangible Assets, Net [Abstract]
Tenant origination and absorption cost	232,426	227,407
Tenant origination and absorption cost - accumulated amortization	(29,040)	(23,409)
Tenant origination and absorption cost, net	$ 203,386	$ 203,998

Real Estate - Amortization of I

Real Estate - Amortization of Intangible Assets and Other Leasing Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Schedule of amortization expense
Amortization of above and below market leases	$ (1,033)	$ (806)
Tenant origination and absorption cost	$ 5,631	$ 3,288

Real Estate - Estimated Annual

Real Estate - Estimated Annual Amortization (Income) Expense for In-Place Lease (Details) $ in Thousands	Mar. 31, 2017USD ($)
Below Market Lease, Amortization Income, Maturity Schedule [Abstract]
Remaining 2,017	$ (3,539)
2,018	(4,719)
2,019	(4,719)
2,020	(4,719)
2,021	(3,823)
Tenant Origination and Absorption Cost
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remaining 2,017	17,485
2,018	23,313
2,019	23,313
2,020	23,313
2,021	$ 18,829

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Feb. 25, 2016	Oct. 22, 2015
Debt Instrument [Line Items]
Total Debt	$ 460,428,000	$ 460,428,000
Unamortized deferred financing costs	(3,686,000)	(3,956,000)
Total debt	$ 456,742,000	$ 456,472,000
Term to determine contractual rate		360 days
Weighted average interest rate (percent)	2.81%
Term to determine weighted average interest rate	365 days
Interest Rate Swap
Debt Instrument [Line Items]
Notional amount	$ 100,000,000		$ 100,000,000
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Base rate (percent)	0.79%
Line of Credit | Key Bank Credit Facility
Debt Instrument [Line Items]
Total Debt	$ 333,458,000	$ 333,458,000
Contractual interest rate	2.29%
Effective interest rate (percent)	2.77%
Weighted average interest rate (percent)	2.32%
Term of loan	4 years
Revolving credit facility, extension term	1 year
Line of Credit | Key Bank Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.50%
Notes Payable, Other Payables | AIG Loan
Debt Instrument [Line Items]
Total Debt	$ 126,970,000	$ 126,970,000
Total debt				$ 127,000,000
Contractual interest rate	4.15%
Effective interest rate (percent)	4.22%
Duration monthly payments of interest only	5 years

Debt - Narrative (Details)

Debt - Narrative (Details)	Oct. 22, 2015USD ($)entity	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Nov. 22, 2016USD ($)	Aug. 11, 2015USD ($)	Dec. 12, 2014USD ($)
Debt Instrument [Line Items]
Number of wholly owned SPE | entity	6
Long-term debt		$ 456,742,000	$ 456,472,000
Term to determine contractual rate			360 days
AIG Loan | Notes Payable, Other Payables
Debt Instrument [Line Items]
Long-term debt	$ 127,000,000
Contractual interest rate		4.15%
Duration monthly payments of interest only		5 years
Revolving Credit Facility | Key Bank Credit Facility
Debt Instrument [Line Items]
Revolving credit facility current borrowing capacity				$ 550,000,000	$ 410,000,000	$ 250,000,000
Revolving credit facility, maximum borrowing capacity						$ 1,250,000,000
Revolving Credit Facility | U.S. Bank Facility
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity				$ 50,000,000

Interest Rate Contracts - Narra

Interest Rate Contracts - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Feb. 25, 2016
Derivative [Line Items]
Income expected to be reclassified in next 12 months	$ 500,000
Interest Rate Swap
Derivative [Line Items]
Notional amount	100,000,000		$ 100,000,000
Fair value of derivative instrument	1,139,000	$ 996,000
Collateral posted	$ 0

Interest Rate Contracts - Swap

Interest Rate Contracts - Swap Details (Details) - Interest Rate Swap - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Fixed rate on derivative (percent)	0.74%
Fair value of derivative instrument	$ 1,139	$ 996

Interest Rate Contracts - Impac

Interest Rate Contracts - Impact of Interest Rate Swap on Consolidated Statements of Operation (Details) - Interest Rate Swap - Cash Flow Hedging $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain recognized in AOCI on derivatives (effective portion)	$ 176
Amount of (loss) gain reclassified from AOCI into earnings under “Interest expense” (effective portion)	(10)
Amount of (loss) gain recognized in earnings under “Interest expense” (ineffective portion and amount excluded from effectiveness testing)	$ (23)

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of derivative instrument	$ 1,139	$ 996
Recurring | Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	1,139	996
Recurring | Interest Rate Swap | Quoted Prices in Active Markets for Identical Assets and Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0
Recurring | Interest Rate Swap | Significant Unobservable Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0
Estimate of Fair Value Measurement [Member] | AIG Loan | Notes Payable, Other Payables
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt fair value	121,746	120,322
Reported Value Measurement [Member] | AIG Loan | Notes Payable, Other Payables
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt fair value	$ 126,970	$ 126,970

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Level 1 to level 2, assets	$ 0	$ 0
Level 2 to level 1, assets	0	0
Level 3 in, assets	0	0
Level 3 out, assets	0	0
Level 1 to level 2, liabilities	0	0
Level 2 to level 1, liabilities	0	0
Level 3 in, liabilities	0	0
Level 3 out, liabilities	$ 0	$ 0

Accrued Expenses and Other Li46

Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Prepaid rent	$ 8,742	$ 9,484
Leasing commission payable	3,783	3,783
Other liabilities	8,418	8,260
Accrued expenses and other liabilities	$ 20,943	$ 21,527

Equity - Narrative (Details)

Equity - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended	17 Months Ended
	Mar. 31, 2017USD ($)voteshares	Dec. 31, 2016USD ($)shares	Mar. 31, 2017USD ($)shares	Apr. 06, 2017shares	Feb. 16, 2017$ / shares	Nov. 15, 2016$ / shares
Class of Stock [Line Items]
Common stock equivalents that would have a dilutive effect on earnings (loss) per share (in shares) | shares		0
Percent of costs that are not reimbursed by the offering (percent)	1.00%		1.00%
Percent of gross proceeds reimbursed from organizational and offering costs limit (percent)	3.50%
Percent of organizational and offering costs limit (percent)	15.00%
Days required for reimbursement of excess amounts	60 days
Organizational costs as a percentage of gross offering proceeds, excluding sales commissions and dealer fees (percent)	0.80%	0.80%
Organizational costs as a percentage of gross offering proceeds (percent)	10.40%	10.60%
Summary of Redemption Price Per Share [Abstract]
Redemption price per share within 1 year, percent	0.00%
Redemption price per share year 1, percent	90.00%
Redemption price per share year 2, percent	95.00%
Redemption price per share year 3, percent	97.50%
Redemption price per share year 4 and greater, percent	100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	10.00%
Number of shares authorized (in shares) | shares	10,000,000		10,000,000
Share Redemption Program
Class of Stock [Line Items]
Minimum holding period for redemption of stock	1 year
Minimum redemption percentage	25.00%
Maximum redemption percentage of weighted average shares outstanding (percent)	5.00%
IPO
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	$ 724,020		$ 724,020
Distribution Reinvestment Plan
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	25,142		25,142
Price per partnership unit (in USD per share) | $ / shares					$ 9.37	$ 9.40
Summary of Redemption Price Per Share [Abstract]
Value of shares tendered for redemption	$ 1,100		1,100
Class T
Class of Stock [Line Items]
Number of votes (in votes) | vote	1
Class T | IPO
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	$ 474,859		474,859
Class T | Distribution Reinvestment Plan
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	10,959		10,959
Class A | IPO
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	240,780		240,780
Class A | Distribution Reinvestment Plan
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	$ 14,056		14,056
Class I
Class of Stock [Line Items]
Number of votes (in votes) | vote	1
Class I | IPO
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	$ 8,381		8,381
Class I | Distribution Reinvestment Plan
Class of Stock [Line Items]
Gross proceeds received to date of shares issued	127		127
Common Stock Subject to Mandatory Redemption
Summary of Redemption Price Per Share [Abstract]
Common stock subject to redemption	$ 21,040	$ 16,930	$ 21,040
Subsequent Event | Distribution Reinvestment Plan
Class of Stock [Line Items]
Share registration of stock to be sold (shares) | shares				3,000,000
Restricted Stock
Summary of Redemption Price Per Share [Abstract]
Aggregate number of shares issued | shares	15,000

Equity - Shares Issued and Gros

Equity - Shares Issued and Gross Proceeds (Details) $ in Thousands	Mar. 31, 2017USD ($)shares
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	75,726,714
Class A
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	25,886,338
Class T
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	48,908,211
Class I
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	932,165
IPO
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 724,020
Common stock, number of shares issued (in shares)	72,664,162
IPO | Class A
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 240,780
Common stock, number of shares issued (in shares)	24,199,760
IPO | Class T
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 474,859
Common stock, number of shares issued (in shares)	47,563,177
IPO | Class I
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 8,381
Common stock, number of shares issued (in shares)	901,225
Distribution Reinvestment Plan
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 25,142
Common stock, number of shares issued (in shares)	2,657,503
Distribution Reinvestment Plan | Class A
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 14,056
Common stock, number of shares issued (in shares)	1,483,469
Distribution Reinvestment Plan | Class T
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 10,959
Common stock, number of shares issued (in shares)	1,160,545
Distribution Reinvestment Plan | Class I
Class of Stock [Line Items]
Gross proceeds received to date of shares issued | $	$ 127
Common stock, number of shares issued (in shares)	13,489
Share Distribution
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	390,049
Share Distribution | Class A
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	203,109
Share Distribution | Class T
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	184,489
Share Distribution | Class I
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	2,451
Restricted stock units issued
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	15,000
Restricted stock units issued | Class A
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	0
Restricted stock units issued | Class T
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	0
Restricted stock units issued | Class I
Class of Stock [Line Items]
Common stock, number of shares issued (in shares)	15,000

Equity - Organizational Costs (

Equity - Organizational Costs (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Cumulative offering costs	$ 74,818	$ 72,009
Cumulative organizational costs	717	717
Organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback	4,074	4,074
Less payments	(4,074)	(4,074)
Net organizational and offering costs advanced by the Advisor, excluding Contingent Advisor Payment Holdback(1)	0	0
Due to affiliates	23,663	22,481
Net organizational and offering costs and Dealer Manager fees advanced by the Advisor	6,369	5,409
Organizational and offering costs advanced by the Advisor
Related Party Transaction [Line Items]
Due to affiliates	2,925	2,477
Dealer Manager fees advanced by the Advisor
Related Party Transaction [Line Items]
Due to affiliates	$ 3,444	$ 2,932

Noncontrolling Interests - Narr

Noncontrolling Interests - Narrative (Details) - Operating Partnership - $ / shares	Mar. 31, 2017	Feb. 11, 2014
Noncontrolling Interest [Line Items]
Ownership percentage by noncontrolling owners (percent)	0.03%
Limited Partner
Noncontrolling Interest [Line Items]
Limited partnership units issued (in shares)		20,000
Price per partnership unit (in USD per share)		$ 10

Noncontrolling Interests - Sche

Noncontrolling Interests - Schedule of Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning balance	$ 84	$ 98
Distributions to noncontrolling interest	(3)	(11)
Net loss	3,124	(6,107)
Other comprehensive income (loss)	166	841
Ending balance	82	84
Non- controlling Interests
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Distributions to noncontrolling interest	(3)	(11)
Net loss	1	(3)
Other comprehensive income (loss)	$ 0	$ 0

Related Party Transactions - Sc

Related Party Transactions - Schedule of Transactions (Details) - USD ($)	Nov. 02, 2015	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2017
Due to Related Parties [Roll Forward]
Beginning of Period			$ 22,481,000
Incurred			7,477,000
Paid			6,295,000
End of Period			$ 23,663,000	$ 23,663,000	$ 23,663,000
Organizational and offering costs advanced by and due to the Advisor (percent)	4.00%		4.00%	4.00%	4.00%
Percent of costs that are not reimbursed by the offering (percent)			1.00%		1.00%
Total acquisition fee	3.85%				3.85%
Advisory fee, base rate		2.00%	2.00%		2.00%
Advisory fee, contingent percentage	1.85%				1.85%
Amount retained subject to conditions	$ 5,000,000		$ 5,000,000	$ 5,000,000	$ 5,000,000
Acquisition fees and expenses
Due to Related Parties [Roll Forward]
Beginning of Period			0
Incurred			402,000
Paid			402,000
End of Period			0	0	0
Operating expenses
Due to Related Parties [Roll Forward]
Beginning of Period			18,000
Incurred			591,000
Paid			0
End of Period			609,000	609,000	609,000
Asset management fees
Due to Related Parties [Roll Forward]
Beginning of Period			807,000
Incurred			2,746,000
Paid			2,634,000
End of Period			919,000	919,000	919,000
Property management fees
Due to Related Parties [Roll Forward]
Beginning of Period			143,000
Incurred			426,000
Paid			426,000
End of Period			143,000	143,000	143,000
Other costs advanced by the Advisor
Due to Related Parties [Roll Forward]
Beginning of Period			12,000
Incurred			203,000
Paid			0
End of Period			215,000	215,000	215,000
Selling commissions
Due to Related Parties [Roll Forward]
Beginning of Period			54,000
Incurred			1,125,000
Paid			1,179,000
End of Period			0	0	0
Dealer Manager fees
Due to Related Parties [Roll Forward]
Beginning of Period			18,000
Incurred			392,000
Paid			410,000
End of Period			0	0	0
Stockholder servicing fee payable
Due to Related Parties [Roll Forward]
Beginning of Period			16,020,000
Incurred			355,000
Paid			967,000
End of Period			15,408,000	15,408,000	15,408,000
Organizational and offering costs advanced by the Advisor
Due to Related Parties [Roll Forward]
Beginning of Period			2,477,000
Incurred			448,000
Paid			0
End of Period			2,925,000	2,925,000	2,925,000
Dealer Manager fees advanced by the Advisor
Due to Related Parties [Roll Forward]
Beginning of Period			2,932,000
Incurred			789,000
Paid			277,000
End of Period			3,444,000	$ 3,444,000	$ 3,444,000
Offering expenses
Due to Related Parties [Roll Forward]
Incurred			100,000
Organizational expenses
Due to Related Parties [Roll Forward]
Incurred			$ 200,000
Class T
Due to Related Parties [Roll Forward]
Organizational and offering costs advanced by and due to the Advisor (percent)	1.00%
Sales commission on stock offering	3.00%			3.00%
Dealer manager fee percentage on stock offering	3.00%			3.00%
Percent of dealer manager fees funded by company	1.00%			1.00%
Percent of dealer manager fees funded by advisor	2.00%			2.00%

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($)	Nov. 02, 2015	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016	Oct. 30, 2015	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2017
Related Party Transaction [Line Items]
Percent of organizational and offering costs limit (percent)			15.00%
Percent of gross proceeds reimbursed from organizational and offering costs limit (percent)			3.50%
Percent of costs that are not reimbursed by the offering (percent)			1.00%					1.00%
Total acquisition fee	3.85%							3.85%
Advisory fee, base rate		2.00%	2.00%					2.00%
Advisory fee, contingent percentage	1.85%							1.85%
Amount retained subject to conditions	$ 5,000,000		$ 5,000,000			$ 5,000,000		$ 5,000,000
Average invested assets for preceding 12 months (percent)			2.00%
Percentage of Company's net income before addition of reserves (percent)			25.00%
Incurred			$ 7,477,000
Organizational and offering costs advanced by and due to the Advisor (percent)	4.00%		4.00%			4.00%		4.00%
Gross revenue percentage			1.00%
Property management fees percentage			3.00%
Construction management fee percentage							5.00%
Term for share based compensation plan			10 years
Percentage of common stock reserved for issuance			10.00%
Number of shares authorized (in shares)			10,000,000			10,000,000		10,000,000
Class T
Related Party Transaction [Line Items]
Sales commission on stock offering	3.00%					3.00%
Dealer manager fee percentage on stock offering	3.00%					3.00%
Percent of dealer manager fees funded by company	1.00%					1.00%
Percent of dealer manager fees funded by advisor	2.00%					2.00%
Organizational and offering costs advanced by and due to the Advisor (percent)	1.00%
Underwriting compensation, percent of gross proceeds	10.00%
Advisory Agreement
Related Party Transaction [Line Items]
Asset management fee percentage of average invested assets			1.00%
Dealer Manager Agreement
Related Party Transaction [Line Items]
Dealer manager fee percentage					3.00%
Dealer Manager Agreement | Class A
Related Party Transaction [Line Items]
Sales commissions percentage					7.00%
Dealer Manager Agreement | Class T
Related Party Transaction [Line Items]
Daily accrual rate for Class T shares sold (percent)			0.00274%
Reimbursement, Services Provided That Are not Entitled to Advisor Fees | Griffin Capital Essential Asset Advisor, LLC
Related Party Transaction [Line Items]
Incurred			$ 200,000
Reimbursement, Reimbursible Expenses | Griffin Capital Essential Asset Advisor, LLC
Related Party Transaction [Line Items]
Incurred			$ 100,000	$ 100,000

Declaration of Distributions -

Declaration of Distributions - Narrative (Details) - $ / shares	Mar. 07, 2017	Mar. 31, 2017	Mar. 31, 2016
Declaration of Distributions [Abstract]
Dividends paid (in USD per share)		$ 0.00150684932
Stock dividend (in shares)		0.000013699
Dividends declared (usd per share)	$ 0.00150684932	$ 0.14	$ 0.14
Stock dividend declared (in shares)	0.000013699

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended	33 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	May 09, 2017	Apr. 06, 2017
Subsequent Event [Line Items]
Issuance of shares for distribution reinvestment plan	$ 5,395	$ 2,507	$ 0
Distribution Reinvestment Plan | Subsequent Event
Subsequent Event [Line Items]
Issuance of shares for distribution reinvestment plan (shares)				2,852,172
Issuance of shares for distribution reinvestment plan				$ 27,000
Share registration of stock to be sold (shares)					3,000,000