American Realty Capital Healthcare Trust Iii 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN REALTY CAPITAL HEALTHCARE TRUST III, INC.
Entity Central Index Key	1,609,234
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		6,898,728

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Real estate investments, at cost:
Land	$ 10,225	$ 10,225
Buildings, fixtures and improvements	101,168	101,129
Acquired intangible lease assets	18,450	18,450
Total real estate investments, at cost	129,843	129,804
Less: accumulated depreciation and amortization	(5,149)	(1,818)
Total real estate investments, net	124,694	127,986
Cash	16,760	16,808
Restricted cash	88	62
Straight-line rent receivable	420	153
Prepaid expenses and other assets	672	735
Deferred costs, net	10
Total assets	142,644	145,744
LIABILITIES AND EQUITY
Mortgage note payable, net of deferred financing costs	4,952	4,985
Mortgage premium, net	134	155
Market lease intangible liabilities, net	1,775	1,849
Accounts payable and accrued expenses (including $271 and $288 due to related parties as of June 30, 2016 and December 31, 2015, respectively)	2,083	1,827
Deferred rent	479	299
Distributions payable	883	904
Total liabilities	10,306	10,019
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of June 30, 2016 and December 31, 2015	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 6,879,894 and 6,792,797 shares of common stock issued and outstanding as of June 30, 2016 and December 31, 2015, respectively	69	68
Additional paid-in capital	147,810	145,789
Accumulated deficit	(16,022)	(10,604)
Total stockholders' equity	131,857	135,253
Non-controlling interests	481	472
Total equity	132,338	135,725
Total liabilities and equity	$ 142,644	$ 145,744

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Due to affiliates	$ 271	$ 288
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	6,879,894	6,792,797
Common stock, shares outstanding (in shares)	6,879,894	6,792,797

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental income	$ 2,277	$ 161	$ 4,545	$ 170
Operating expense reimbursements	625	31	1,251	33
Resident services and fee income	709	0	1,407	0
Revenues	3,611	192	7,203	203
Expenses:
Property operating and maintenance	1,284	34	2,541	36
Operating fees to related party	39	0	79	0
Acquisition and transaction related	103	425	133	473
General and administrative	545	259	1,221	535
Depreciation and amortization	1,581	75	3,158	79
Total expenses	3,552	793	7,132	1,123
Operating loss	59	(601)	71	(920)
Interest expense	(47)	0	(95)	0
Interest and other income	1	0	1	0
Total other expense	(46)	0	(94)	0
Loss before income taxes	13	(601)	(23)	(920)
Income tax expense	(28)	0	(73)	0
Net loss	(15)	(601)	(96)	(920)
Net income attributable to non-controlling interests	(5)	0	(9)	0
Net loss attributable to stockholders	(20)	(601)	(105)	(920)
Comprehensive loss	$ (20)	$ (601)	$ (105)	$ (920)
Basic and diluted weighted average shares outstanding (in shares)	6,857,978	2,047,581	6,831,842	1,111,122
Basic and diluted net loss per share (in usd per share)	$ (0.01)	$ (0.29)	$ (0.02)	$ (0.83)
Distributions declared per share (in usd per share)	$ 0.39	$ 0.39	$ 0.78	$ 0.46

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Total Stockholders' Equity (Deficit)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Non-controlling Interests
Beginning balance (in shares) at Dec. 31, 2015			6,792,797
Beginning balance at Dec. 31, 2015	$ 135,725	$ 135,253	$ 68	$ 145,789	$ (10,604)	$ 472
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock offering costs, commissions and dealer manager fees	$ (60)	(60)		(60)
Common stock issued through distribution reinvestment plan (in shares)	87,000		87,097
Common stock issued through distribution reinvestment plan	$ 2,070	2,070	$ 1	2,069
Equity-based compensation	12	12		12
Distributions declared	(5,313)	(5,313)			(5,313)
Net loss	(96)	(105)			(105)	9
Ending balance (in shares) at Jun. 30, 2016			6,879,894
Ending balance at Jun. 30, 2016	$ 132,338	$ 131,857	$ 69	$ 147,810	$ (16,022)	$ 481

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (96)	$ (920)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,158	79
Amortization of deferred financing costs	15	0
Amortization of mortgage premium	(21)	0
Amortization of market lease intangibles	102	(6)
Equity-based compensation	12	6
Changes in assets and liabilities:
Straight-line rent receivable	(267)	(6)
Prepaid expenses and other assets	111	(60)
Accounts payable and accrued expenses	406	182
Deferred rent	180	0
Restricted cash	(26)	0
Net cash used in operating activities	3,574	(725)
Cash flows from investing activities:
Investments in real estate and other assets	0	(15,758)
Deposits paid for real estate acquisitions	0	(250)
Capital expenditures	(100)	0
Net cash used in investing activities	(100)	(16,008)
Cash flows from financing activities:
Payments of mortgage note payable	(48)	0
Proceeds from issuance of common stock	0	84,153
Payments of offering costs and fees related to common stock issuances	(210)	(9,462)
Distributions paid	(3,264)	(236)
Advances from affiliate	0	1
Net cash used by financing activities	(3,522)	74,456
Net change in cash	(48)	57,723
Cash, beginning of period	16,808	187
Cash, end of period	16,760	57,910
Supplemental disclosure of cash flow information:
Cash paid for interest	101	0
Cash paid for income taxes	69	0
Supplemental disclosures of cash flow information:
Receivable for sale of common stock	0	746
Payable and accrued offering costs	228	627
Common stock issued through distribution reinvestment plan	$ 2,070	$ 215

Organization

Organization	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization American Realty Capital Healthcare Trust III, Inc. (including, as required by context, American Realty Capital Healthcare III Operating Partnership, L.P. (the "OP") and its subsidiaries, the "Company") was incorporated on April 24, 2014 as a Maryland corporation that intends to elect and qualify to be taxed as a real estate investment trust for U.S. federal income tax purposes ("REIT") beginning with its taxable year ended December 31, 2015. On August 20, 2014, the Company commenced its initial public offering (the "IPO") on a "reasonable best efforts" basis of up to 125.0 million shares of common stock, $0.01 par value per share, at a price of $25.00 per share, subject to certain volume and other discounts, for total gross proceeds of up to $3.1 billion , pursuant to a registration statement on Form S-11 (File No. 333-196302 ) (as amended, the "Registration Statement"), filed with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended. The Registration Statement also covers up to 26.3 million shares of common stock available pursuant to a distribution reinvestment plan (the "DRIP") under which common stockholders may elect to have their distributions reinvested in additional shares of common stock. On February 11, 2015, the Company received and accepted aggregate subscriptions in excess of the minimum offering amount for the IPO of $2.0 million in shares of common stock, broke general escrow and issued shares to its initial investors, who were admitted as stockholders of the Company. As of June 30, 2016 , the Company had 6.9 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, and had received total gross proceeds from the IPO of $169.3 million . Until the net asset value ("NAV") pricing date (as described below), the per share purchase price of shares issued under the DRIP will be equal to $23.75 per share, which is equal to 95% of the offering price in the IPO, which has been suspended. Beginning with the NAV pricing date, the per share price for shares under the DRIP will vary periodically and will be equal to the Company’s per share NAV. The NAV pricing date means the date that the Company first publishes an estimated per share NAV (the "NAV Pricing Date"), which will be on or prior to July 11, 2017, which is 150 days following the second anniversary of the date that the Company broke escrow in the IPO. On November 15, 2015, the Company suspended its IPO, which was conducted by Realty Capital Securities, LLC (the “Former Dealer Manager”), as exclusive wholesale distributor, effective December 31, 2015, and, on November 18, 2015, the Former Dealer Manager suspended sales activities it performed pursuant to the dealer manager agreement for the IPO, effective immediately. On December 31, 2015, the Company entered into a termination agreement with the Former Dealer Manager to terminate the dealer manager agreement. Due to these circumstances, it is not likely that the Company will resume the IPO. On January 25, 2016, the Company registered an additional 0.7 million shares to be issued under the DRIP pursuant to a registration statement on Form S-3 (File No. 333-209117). On April 29, 2016, the Company's board of directors announced that it had initiated a strategic review process (the "Strategic Review") to identify, examine, and consider a range of strategic alternatives available to the Company with the objective of maximizing shareholder value. The board of directors has established a special committee (the "Special Committee") comprised of the board's independent directors, which is conducting the Strategic Review and is addressing potential conflicts of interest. The Special Committee has engaged SunTrust Robinson Humphrey, Inc. as financial advisor and retained Shapiro Sher Guinot and Sandler, P.A. as special legal counsel in connection with the Strategic Review. On June 30, 2016, the Company announced that in response to the receipt of an unsolicited proposal (the “Proposal”) from an entity (the “Proposing Entity”) sponsored by an affiliate of American Realty Capital VII, LLC, the Company’s sponsor (the “Sponsor”), relating to a potential strategic transaction with the Proposing Entity (the “Proposed Transaction”), the Special Committee and its financial advisor had engaged in discussions with a special committee formed by the Proposing Entity (and its financial advisor) and with others. Although these discussions have progressed since the receipt of the Proposal, they have not resulted in a definitive agreement with any party. The Company’s board of directors has not made a decision to enter into any transaction at this time, and there can be no assurance that the discussions and evaluation will result in a definitive agreement or that any such transaction would be approved by the Company’s stockholders. The Company does not intend to provide updates on the discussions or negotiations regarding the Proposal unless or until it determines that further disclosure is appropriate or required based on the then-current facts and circumstances. The Company was formed to primarily acquire a diversified portfolio of healthcare-related assets, including medical office buildings ("MOB"), seniors housing communities and other healthcare-related facilities, for investment purposes. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire first mortgage loans secured by real estate. The Company purchased its first property and commenced real estate operations in March 2015. As of June 30, 2016 , the Company owned 19 properties located in 10 states, comprised of 467,932 rentable square feet. Substantially all of the Company's business is conducted through the OP. The Company has no direct employees. American Realty Capital Healthcare III Advisors, LLC (the "Advisor") has been retained to manage the Company's affairs on a day-to-day basis. The Company also has retained American Realty Capital Healthcare III Properties, LLC (the "Property Manager") to serve as the Company's property manager. The Advisor and the Property Manager are under common control with AR Global Investments, LLC (the successor business to AR Capital, LLC, "AR Global"), the parent of the Sponsor, as a result of which they are related parties, and each have received or will receive compensation, fees and other expense reimbursements from the Company for services related to managing the Company's business. The Advisor, Property Manager and Former Dealer Manager have received or will receive fees during the Company's offering, acquisition, operational and liquidation stages.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements of the Company included herein were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. All intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results for the entire year or any subsequent interim period. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2015 , which are included in the Company's Annual Report on Form 10-K filed with the SEC on March 4, 2016 . There have been no significant changes to the Company's significant accounting policies during the six months ended June 30, 2016 other than the updates described below. Reclassifications Certain prior year amounts within prepaid expenses and other assets, deferred costs, net and cash flows from operating activities have been reclassified to conform with the current year presentation. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance. In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption was permitted provided that the guidance was applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of this new guidance on its consolidated financial statements and has determined that the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company’s partnership interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, this standard did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance resulted in the reclassification of $0.1 million of deferred financing costs related to the Company's mortgage note payable from deferred costs, net to mortgage note payable, net of deferred financing costs in the Company's consolidated balance sheets as of June 30, 2016 and December 31, 2015. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016 and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. The Company's policy is to account for forfeitures as they occur.

Real Estate Investments

Real Estate Investments	6 Months Ended
	Jun. 30, 2016
Real Estate Investments, Net [Abstract]
Real Estate Investments	Real Estate Investments The Company owned 19 properties as of June 30, 2016 . The following table presents the allocation of the assets acquired and liabilities assumed during the six months ended June 30, 2015 . The Company did not acquire any properties during the six months ended June 30, 2016 . Six Months Ended (Dollar amounts in thousands) June 30, 2015 Real estate investments, at cost: Land $ 2,496 Buildings, fixtures and improvements 12,103 Total tangible assets 14,599 Acquired intangibles: In-place leases 1,561 Market lease liabilities (402 ) Total assets acquired, net 15,758 Cash paid for acquired real estate investments $ 15,758 Number of properties purchased 4 The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of June 30, 2016 . These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items. (In thousands) Future Minimum Base Rent Payments July 1, 2016 — December 31, 2016 $ 4,403 2017 8,829 2018 8,623 2019 8,294 2020 7,824 Thereafter 25,265 Total $ 63,238 The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of June 30, 2016 and 2015 : June 30, Tenant 2016 2015 DaVita Healthcare Partners Inc. * 21.7% Fresenius Medical Care AG & Co. * 15.6% PedMed Rockwall, LLC * 14.0% Renal Hypertension Center * 21.3% Texas Health Resources * 17.8% _______________ * Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified The following table lists the states where the Company has a concentration of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015 : June 30, State 2016 2015 Florida * 58.6% Georgia 11.9% * Illinois 41.9% * Texas * 41.4% _______________ * State's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified Intangible Assets and Liabilities Acquired intangible assets and liabilities consisted of the following as of the periods presented: June 30, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 16,023 $ 2,669 $ 13,354 $ 16,023 $ 931 $ 15,092 Intangible market lease assets 2,427 257 2,170 2,427 81 2,346 Total acquired intangible assets $ 18,450 $ 2,926 $ 15,524 $ 18,450 $ 1,012 $ 17,438 Intangible market lease liabilities $ 1,902 $ 127 $ 1,775 $ 1,902 $ 53 $ 1,849 The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place lease assets, amortization and accretion of above- and below-market lease assets and liabilities, net and the accretion of above-market ground leases, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 Amortization of in-place leases (1) $ 868 $ 28 $ 1,737 $ 30 Amortization and (accretion) of above- and below-market leases, net (2) 56 (4 ) 111 (5 ) Accretion of above-market ground leases (3) (4 ) — (8 ) — _______________ (1) Reflected within depreciation and amortization expense (2) Reflected within rental income (3) Reflected within property operating and maintenance expense The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) July 1, 2016 — December 31, 2016 2017 2018 2019 2020 In-place lease assets $ 1,390 $ 2,362 $ 2,197 $ 2,022 $ 1,794 Total to be added to amortization expense $ 1,390 $ 2,362 $ 2,197 $ 2,022 $ 1,794 Above-market lease assets $ 177 $ 351 $ 318 $ 309 $ 301 Below-market lease liabilities (66 ) (132 ) (132 ) (131 ) (127 ) Total to be deducted from rental income $ 111 $ 219 $ 186 $ 178 $ 174 Above-market ground lease liabilities $ 8 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 8 $ 16 $ 16 $ 16 $ 16

Mortgage Notes Payable

Mortgage Notes Payable	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Mortgage Notes Payable	Mortgage Note Payable The following table reflects the Company's mortgage note payable as of June 30, 2016 and December 31, 2015 : Encumbered Properties Outstanding Loan Amount as of Effective Interest Rate Interest Rate Portfolio June 30, 2016 December 31, 2015 Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 5,045 $ 5,093 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (93 ) (108 ) Mortgage notes payable, net of deferred financing costs $ 4,952 $ 4,985 As of June 30, 2016 , the Company had pledged $9.0 million in real estate as collateral for the mortgage note payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage note payable on the property. The Company makes payments of principal and interest on its mortgage note payable on a monthly basis. The following table summarizes the scheduled aggregate principal payments on the Company's mortgage note payable for the five years subsequent to June 30, 2016 : (In thousands) Future Principal Payments July 1, 2016 — December 31, 2016 $ 48 2017 100 2018 104 2019 4,793 2020 — Thereafter — Total $ 5,045

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level 1 — Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 — Unobservable inputs that reflect the entity's own assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash, restricted cash, straight-line rent receivable, prepaid expenses and other assets, deferred costs, net, accounts payable and accrued expenses, deferred rent and distributions payable approximates their carrying value on the consolidated balance sheets due to their short-term nature. The fair value of the Company's remaining financial instrument that is not reported at fair value on the consolidated balance sheet is reported below. Carrying Amount (1) at Fair Value at Carrying Amount (1) at Fair Value at (In thousands) Level June 30, June 30, December 31, December 31, Mortgage note payable and premium, net 3 $ 5,179 $ 5,170 $ 5,248 $ 5,181 _______________ (1) Carrying value includes gross mortgage note payable of $5.0 million and $5.1 million and mortgage premium, net of $0.1 million and $0.2 million as of June 30, 2016 and December 31, 2015 , respectively. The fair value of the mortgage note payable is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of borrowing arrangements.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock	Common Stock The Company had 6.9 million and 6.8 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, as of June 30, 2016 and December 31, 2015 , respectively. The Company had received total gross proceeds of $169.3 million and $167.2 million as of June 30, 2016 and December 31, 2015 , respectively. The Company has paid distributions on a monthly basis to stockholders of record on a daily basis at a rate equal to $0.0042808219 per day, which is equivalent to $1.56 per annum, per share of common stock, beginning on March 15, 2015. In March 2016, the Company's board of directors ratified the existing distribution amount equivalent to $1.56 per annum, and, for the calendar year 2016, affirmed a change to the daily distribution payable to stockholders of record each day during the applicable period to $0.0042691257 per day per share of common stock to accurately reflect that 2016 is a leap year. Distributions are payable by the 5th day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time and therefore distribution payments are not assured. Share Repurchase Program The Company's board of directors has adopted a Share Repurchase Program (as amended, the “SRP”) that enables stockholders to sell their shares to the Company in limited circumstances. The SRP permits investors to sell their shares back to the Company after they have held them for at least one year, subject to significant conditions and limitations described below. Prior to the time that the Company’s shares are listed on a national securities exchange and until the Company begins to calculate NAV (other than with respect to a repurchase request that is made in connection with a stockholder’s death or disability), the repurchase price per share will depend on the length of time investors have held such shares as follows: after one year from the purchase date — the lower of $23.13 or 92.5% of the amount they actually paid for each share, and after two years from the purchase date — the lower of $23.75 or 95.0% of the amount they actually paid for each share (in each case, as adjusted for any stock distributions, combinations, splits and recapitalizations). In cases of requests for death and disability, the repurchase prices will be equal to the price actually paid for each such share. Beginning with the NAV Pricing Date, the price per share that the Company will pay to repurchase its shares will be equal to its NAV at the time of repurchase multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95.0% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100.0% , if the person seeking repurchase has held his or her shares for a period greater than four years. In cases of requests for death and disability, the repurchase prices will be equal to NAV at the time of repurchase. Subject to limited exceptions, stockholders who redeem their shares of our common stock within the first four months from the date of purchase will be subject to a short-term trading fee of 2% of the aggregate NAV per share of the shares of common stock received. Repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors. Until the First SRP Amendment (described below), the Company limited the number of shares repurchased during any calendar year to 5% of the weighted average number of shares of common stock outstanding on December 31st of the previous calendar year. In addition, the Company was only authorized to repurchase shares in a given quarter up to the amount of proceeds received from its DRIP in that same quarter. On January 25, 2016, the Company's board of directors approved and amended the SRP (the "First SRP Amendment") to supersede and replace the existing SRP. Under the SRP Amendment, repurchases of shares of the Company's common stock, when requested, are at the sole discretion of the board of directors and generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year (the "Prior Year Outstanding Shares"), with a maximum for any fiscal year of 5.0% of the Prior Year Outstanding Shares. In addition, the Company is only authorized to repurchase shares in a given fiscal semester up to the amount of proceeds received from its DRIP in that same fiscal semester. If the NAV Pricing Date occurs during any fiscal semester, any repurchase requests received during such fiscal semester will be paid at the applicable NAV then in effect. On June 29, 2016, the board of directors of the Company further amended the Company’s SRP (the "Second SRP Amendment") to provide, solely for calendar year 2016, for a nine-month repurchase period ending September 30, 2016 and a three-month repurchase period ending December 31, 2016, instead of two semi-annual periods ending June 30 and December 31. The annual limit on repurchases under the SRP remains unchanged and continues to be limited to a maximum of 5.0% of the Prior Year Outstanding Shares and is subject to the terms and limitations set forth in the SRP. Accordingly, the nine-month repurchase period ending September 30, 2016 will be limited to a maximum of 3.75% of the Prior Year Outstanding Shares and the three-month repurchase period ending December 31, 2016 will be limited to a maximum of 1.25% of the Prior Year Outstanding Shares, and in each case will continue to be subject to the terms and conditions set forth in the SRP, as amended. Following calendar year 2016, the repurchase periods will return to two semi-annual periods and applicable limitations set forth in the SRP. The Second SRP Amendment also provides, for calendar year 2016 only, that any amendments, suspensions or terminations of the SRP will become effective on the day following the Company’s public announcement of such amendments, suspension or termination. The Second SRP Amendment became effective on July 30, 2016 and will only apply to repurchase periods in calendar year 2016. When a stockholder requests a repurchase and the repurchase is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares purchased under the SRP will have the status of authorized but unissued shares. The following table reflects the number of shares repurchased cumulatively through June 30, 2016 : Number of Shares Repurchased Average Price per Share Cumulative repurchases as of December 31, 2015 (1) 1,021 $ 24.97 Six months ended June 30, 2016 (2) — — Cumulative repurchases as of June 30, 2016 (2) 1,021 $ 24.97 _______________ (1) Excludes rejected repurchases of 1,336 shares for approximately $33,000 at an average price per share of $24.95 , which were unfulfilled as of December 31, 2015 and remain rejected as of June 30, 2016 . There were no other rejected share repurchase requests for the period from April 24, 2014 (date of inception) to June 30, 2016 . (2) Excludes 0.2 million shares that have been requested for repurchase and are not yet fulfilled as of June 30, 2016 . These shares, and all additional shares requested prior to September 30, 2016 will be considered for repurchase, to the extent the requests are not withdrawn by September 30, 2016. All requested shares will be subject to the annual limitations set forth in the SRP. The SRP will immediately terminate if the Company's shares are listed on any national securities exchange. In addition, our board of directors may amend, suspend (in whole or in part) or terminate the SRP at any time, with effect the day following announcement of the amendment, suspension or termination, during calendar year 2016, and thereafter upon 30 days’ prior written notice to our stockholders. Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased under the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the IPO. The board of directors may designate that certain cash or other distributions be excluded from reinvestment pursuant to the DRIP. On June 29, 2016, the board of directors of the Company amended the DRIP such that any amendment, suspension or termination of the DRIP will become effective immediately upon (i) the Company’s public announcement of such amendment, suspension or termination and (ii) the Company’s mailing of a notice regarding the amendment, suspension or termination to each DRIP participant. Shares issued under the DRIP are recorded to equity in the accompanying consolidated balance sheets in the period distributions are declared. During the six months ended June 30, 2016 and 2015 , respectively, the Company issued approximately 87,000 and 9,000 shares of common stock pursuant to the DRIP, generating aggregate proceeds of $2.1 million and $0.2 million .

Related Party Transactions and

Related Party Transactions and Arrangements	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Related Party Transactions and Arrangements As of June 30, 2016 and December 31, 2015 , American Realty Capital Healthcare III Special Limited Partnership, LLC (the "Special Limited Partner"), an entity controlled by the Sponsor, owned 8,888 shares of the Company's outstanding common stock. The Advisor and its affiliates may incur and pay costs and fees on behalf of the Company. As of June 30, 2016 and December 31, 2015 , the Company had $0.3 million , respectively, payable to related parties. The Former Dealer Manager served as the dealer manager of the IPO. SK Research, LLC ("SK Research") and American National Stock Transfer, LLC ("ANST"), both subsidiaries of the parent company of the Former Dealer Manager, provided other general professional services through December 2015 and January 2016, respectively. RCS Capital Corporation ("RCAP"), the parent company of the Former Dealer Manager and certain of its affiliates that provided us with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's sponsor. In May 2016, RCAP and its affiliated debtors emerged from bankruptcy under the new name Aretec Group, Inc. Fees Paid in Connection with the IPO The Former Dealer Manager was paid fees and compensation in connection with the sale of the Company's common stock in the IPO. The Former Dealer Manager was paid a selling commission of up to 7.0% of the per share purchase price of the IPO proceeds before reallowance of commissions earned by participating broker-dealers. In addition, the Former Dealer Manager received up to 3.0% of the gross proceeds from the sale of shares, before reallowance to participating broker-dealers, as a dealer manager fee. The Former Dealer Manager was able to reallow its dealer manager fee to such participating broker-dealers. A participating broker dealer may have elected to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such participating broker dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option was elected, the dealer manager fee was be reduced to 2.5% of gross proceeds (not including selling commissions and dealer manager fees). The following table details total selling commissions and dealer manager fees incurred from and due to the Former Dealer Manager as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, 2016 December 31, 2015 Total commissions and fees incurred from and due to the Former Dealer Manager $ — $ 6,065 $ — $ 7,279 $ — $ — The Advisor, Sponsor and Former Dealer Manager and their affiliates receive compensation and reimbursement for services relating to the IPO. All offering costs incurred by the Company and the Advisor, Sponsor and Former Dealer Manager and their affiliates on behalf of the Company are charged to additional paid-in capital on the accompanying consolidated balance sheets. The following table details fees and reimbursable offering costs incurred and payable as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, 2016 December 31, 2015 Fees and expense reimbursements incurred from and due to the Advisor and its affiliates $ — $ 17 $ — $ 61 $ — $ 12 Fees and expense reimbursements incurred from and due to the Former Dealer Manager and its affiliates — 495 — 817 228 228 Fees and expense reimbursements incurred from and due to the Sponsor — — — — — — Total fees and expense reimbursements incurred from and due to the Advisor, Sponsor and Former Dealer Manager and their affiliates $ — $ 512 $ — $ 878 $ 228 $ 240 The Company is responsible for offering and related costs from the IPO, excluding selling commissions and dealer manager fees, up to a maximum of 2.0% of gross proceeds received from the IPO, measured at the end of the IPO. Offering costs, excluding selling commissions and dealer manager fees, in excess of the 2.0% cap as of the end of the IPO are the Advisor's responsibility. As of June 30, 2016 , offering and related costs, excluding commissions and dealer manager fees, exceeded 2.0% of gross proceeds received from the IPO by $3.8 million . After the general escrow break, the Advisor caps cumulative offering costs for the IPO, including selling commissions and dealer manager fees, incurred by the Company, net of unpaid amounts, to 15.0% of gross common stock proceeds during the offering period of the IPO. As of June 30, 2016 , cumulative offering costs were $21.4 million . As of June 30, 2016 , cumulative offering costs, net of unpaid amounts, were less than 15.0% of gross common stock proceeds. Fees and Participations Paid in Connection With the Operations of the Company The Advisor receives an acquisition fee of 1.5% of the contract purchase price of each property acquired and 1.5% of the amount advanced for a loan or other investment. The Advisor is also reimbursed for services provided for which it incurs investment-related expense, or insourced expenses. Such insourced expenses may not exceed 0.5% of the contract purchase price of each acquired property and 0.5% of the amount advanced for a loan or other investment. Additionally, the Company reimburses the Advisor for third party acquisition expenses. The Company also reimburses the Advisor for legal expenses it or its affiliates incur in connection with the selection, evaluation and acquisition of assets, in an amount not to exceed 0.1% of the contract purchase price of each property or 0.1% of the amount advanced for each loan or other investment. Once the proceeds from the IPO have been fully invested, the aggregate amount of acquisition fees and any financing coordination fees (as described below) may not exceed 2.0% of the contract purchase price and the amount advanced for a loan or other investment for all the assets acquired. In no event will the total of all acquisition fees, acquisition expenses and any financing coordination fees payable with respect to a particular investment exceed 4.5% of the contract purchase price of the Company's portfolio to be measured at the close of the acquisition phase or 4.5% of the amount advanced for all loans or other investments. If the Advisor provides services in connection with the origination or refinancing of any debt that the Company obtains and uses to acquire properties or to make other permitted investments, or that is assumed, directly or indirectly, in connection with the acquisition of properties, the Company will pay the Advisor a financing coordination fee equal to 0.75% of the amount available and/or outstanding under such financing, subject to certain limitations. For its asset management services, the Company pays the Advisor an asset management subordinated participation by causing the OP to issue (subject to periodic approval by the board of directors) to the Advisor performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units." The Class B Units are intended to be profit interests and will vest, and no longer be subject to forfeiture, at such time as any one of the following events occur: (1) the termination of the advisory agreement by an affirmative vote of a majority of the Company's independent directors without cause; (2) a listing of the Company's common stock on a national securities exchange; or (3) a transaction to which the Company or the OP is a party, as a result of which OP Units or the Company's common stock are or will be exchanged for or converted into the right, or the holders of such securities will otherwise be entitled, to receive cash, securities or other property or any combination thereof; provided that the Advisor, pursuant to the advisory agreement, is providing services to the Company immediately prior to the occurrence of an event of the type described therein (the "performance condition"). Such Class B Units will be forfeited immediately if the advisory agreement is terminated for any reason other than a termination without cause. When and if approved by the board of directors, the Class B Units are expected to be issued to the Advisor quarterly in arrears pursuant to the terms of the limited partnership agreement of the OP. The number of Class B Units issued in any quarter is an amount equal to: (i) the excess of (A) the product of (y) 0.1875% multiplied by (z) the cost of the Company's assets (until the NAV Pricing Date, then the lower of the cost of assets and the fair value of the Company’s assets) over (B) any amounts payable as an oversight fee (as described below) for such calendar quarter; divided by (ii) the value of one share of common stock as of the last day of such calendar quarter, which is equal initially to $22.50 (the IPO price minus the selling commissions and dealer manager fees). The value of issued Class B Units will be determined and expensed when the Company deems the achievement of the performance condition to be probable. The Advisor will receive distributions on unvested Class B Units equal to the distribution received on the Company's common stock. Such distributions on issued Class B Units will be expensed in the consolidated statements of operations and comprehensive loss until the performance condition is considered probable to occur. During the three and six months ended June 30, 2016 , the Company's board of directors approved the issuance of 9,197 and 19,532 Class B Units, respectively, to the Advisor in connection with this arrangement. During the three and six months ended June 30, 2015 , the Company's board of directors approved the issuance of 139 Class B Units to the Advisor in connection with this arrangement. As of June 30, 2016 , the Company's board of directors had approved the issuance of 26,786 Class B Units to the Advisor in connection with this arrangement. Unless the Company contracts with a third party, the Company will pay the Property Manager a property management fee of 1.5% of gross revenues from the Company's single-tenant net leased properties and 2.5% of gross revenues from all other types of properties. The Company will also reimburse the Property Manager for property level expenses. If the Company contracts directly with third parties for such services, the Company will pay them customary market fees and will pay the Property Manager an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event will the Company pay the Property Manager or any affiliates of the Property Manager both a property management fee and an oversight fee with respect to any particular property. Property management fees are recorded to operating fees to related party in the accompanying consolidated statements of operations and comprehensive loss. SK Research and ANST, both subsidiaries of the parent company of the Former Dealer Manager, provided other general professional services through December 2015 and January 2016, respectively. The Advisor pays general and administrative expenses on behalf of the Company, for which, the Company subsequently reimburses the Advisor. These fees and reimbursements are included in general and administrative expenses in the accompanying consolidated statements of operations and comprehensive loss. The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Payable as of (In thousands) Incurred Forgiven Incurred Forgiven Incurred Forgiven Incurred Forgiven June 30, December 31, One-time fees and reimbursements: Acquisition fees $ — $ — $ 212 $ — $ — $ — $ 236 $ — $ — $ — Acquisition cost reimbursements — — 71 — — — 79 — — — Ongoing fees and reimbursements: Property management fees 39 — — 3 79 — — 3 — 4 Professional fees and reimbursements 91 — 131 — 158 — 196 — 43 43 Distributions on Class B units 9 — — — 13 — — — — 1 Total related party operating fees and reimbursements $ 139 $ — $ 414 $ 3 $ 250 $ — $ 511 $ 3 $ 43 $ 48 The Company reimburses the Advisor's costs of providing administrative services, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company's operating expenses at the end of the four preceding fiscal quarters exceeds the greater of (a) 2.0% of average invested assets and (b) 25.0% of net income other than any additions to reserves for depreciation, bad debt, impairments or other similar non-cash expenses and excluding any gain from the sale of assets for that period (the "2%/25% Limitation"), unless the Company's independent directors determine that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, in which case the excess amount may be reimbursed to the Advisor in subsequent periods. Additionally, the Company will reimburse the Advisor for personnel costs in connection with other services during the operational stage; however, the Company may not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees, acquisition expense reimbursements or real estate commissions or for persons serving as executive officers of the Company. No reimbursement was incurred from the Advisor for providing such services during the three and six months ended June 30, 2016 or 2015 . For the four preceding fiscal quarters, the Company's operating expenses exceeded the 2%/25% Limitation by $0.1 million . The Company's board of directors concluded that the expenses in excess of the 2%/25% Limitation were due to unusual and non-recurring factors caused by the Company's limited operating history and were, therefore, justified. No reimbursement of operating expenses in excess of the 2%/25% Limitation was made by the Advisor to the Company during the three and six months ended June 30, 2016 or 2015 . In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. If the Advisor waives certain fees, cash flow from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor in cash. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's general and administrative costs. No expenses were absorbed by the Advisor during the three and six months ended June 30, 2016 or 2015 . The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. The Company was also party to a transfer agency agreement with ANST, a subsidiary of the parent company of the Former Dealer Manager, pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by DST Systems, Inc., a third-party transfer agent ("DST"). AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, the Company entered into a definitive agreement with DST to provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services). Fees and Participations Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of the Company's total return to stockholders, payable annually in arrears, such that for any year in which the Company's total return on stockholder's capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return but not to exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other event which results in the return on stockholder's capital exceeding 6.0% per annum. No subordinated performance fees were incurred during the three and six months ended June 30, 2016 or 2015 . The Company will pay the Advisor a real estate commission on the sale of property, not to exceed the lesser of 2.0% of the contract sale price of the property and 50.0% of the total brokerage commission paid if a third party broker is also involved; provided, however, that in no event may the real estate commissions paid to the Advisor, its affiliates and agents and unaffiliated third parties exceed the lesser of 6.0% of the contract sales price and a reasonable, customary and competitive real estate commission. Real estate commissions will only be payable to the Advisor if the Advisor or its affiliates, as determined by a majority of the independent directors, provided a substantial amount of services in connection with the sale. No such fees were incurred during the three and six months ended June 30, 2016 or 2015 . The Company will pay the Special Limited Partner a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors. The Special Limited Partner will not be entitled to the subordinated participation in the net sales proceeds unless investors have received a return of their capital plus a return equal to a 6.0% cumulative non-compounded annual return on their capital contributions. No participation in net sales proceeds was incurred during the three and six months ended June 30, 2016 or 2015 . If the Company's shares of common stock are listed on a national securities exchange, the Special Limited Partner will receive a subordinated incentive listing distribution from the OP equal to 15.0% of the amount by which the Company's market value plus distributions exceeds the aggregate capital contributed by investors plus an amount equal to a 6.0% cumulative, pre-tax non-compounded annual return to investors. The Company cannot assure that it will provide this 6.0% annual return but the Special Limited Partner will not be entitled to the subordinated incentive listing distribution unless investors have received a 6.0% cumulative, pre-tax non-compounded annual return on their capital contributions. No such distribution was incurred during the three and six months ended June 30, 2016 or 2015 . Neither the Special Limited Partner nor any of its affiliates can earn both the subordinated participation in the net sales proceeds and the subordinated listing distribution. Upon termination or non-renewal of the advisory agreement with the Advisor, with or without cause, the Special Limited Partner will be entitled to receive distributions from the OP equal to 15% of the amount by which the sum of the Company's market value plus distributions exceeds the sum of the aggregate capital contributed by investors plus an amount equal to an annual 6.0% cumulative, pre-tax, non-compounded annual return to investors. The Special Limited Partner may elect to defer its right to receive a subordinated distribution upon termination until either a listing on a national securities exchange or other liquidity event occurs.

Economic Dependency

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

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity-Based Compensation	Equity-Based Compensation Restricted Share Plan The Company has an employee and director incentive restricted share plan (the "RSP"), which provides for the automatic grant of 1,333 restricted shares of common stock to each of the independent directors, without any further action by the Company's board of directors or the stockholders, after initial election to the board of directors and after each annual stockholder's meeting, with such shares vesting annually beginning with the one year anniversary of initial election to the board of directors and the date of the next annual meeting, respectively. Restricted shares issued to independent directors will vest over a five -year period in increments of 20.0% per annum. The RSP provides the Company with the ability to grant awards of restricted shares to the Company's directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, certain consultants to the Company and the Advisor and its affiliates or to entities that provide services to the Company. The total number of common shares granted under the RSP may not exceed 5.0% of the Company's outstanding shares of common stock on a fully diluted basis at any time and in any event will not exceed 6.3 million shares (as such number may be adjusted for stock splits, stock dividends, combinations and similar events). Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient's employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. The following table reflects restricted share award activity for the period presented: Number of Common Shares Weighted-Average Issue Price Unvested, December 31, 2015 4,799 $ 22.50 Granted — — Vested (533 ) 22.50 Forfeitures — — Unvested, June 30, 2016 4,266 $ 22.50 As of June 30, 2016 , the Company had $0.1 million of unrecognized compensation cost related to unvested restricted share award grants under the Company's RSP. That cost is expected to be recognized over a weighted average period of 3.5 years . The fair value of the restricted shares is being expensed on a straight-line basis over the service period of five years. Compensation expense related to restricted shares was approximately $6,000 and $12,000 for the three and six months ended June 30, 2016 , respectively. Compensation expense related to restricted shares was approximately $3,000 and $6,000 for the three and six months ended June 30, 2015 , respectively. Compensation expense related to restricted shares is recorded as general and administrative expense in the accompanying consolidated statements of operations and comprehensive loss.

Non-Controlling Interests

Non-Controlling Interests	6 Months Ended
	Jun. 30, 2016
Noncontrolling Interest [Abstract]
Non-Controlling Interests	Non-Controlling Interests The Company is the sole general partner and holds substantially all of the units of limited partner interests in the OP ("OP Units"). As of June 30, 2016 and December 31, 2015 , the Advisor held 90 OP Units, which represents a nominal percentage of the aggregate OP ownership. A holder of limited partner interests has the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the holders of limited partner interests in the OP are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets. No distributions were paid to OP Unit holders during the three and six months ended June 30, 2016 or 2015 . The Company has an investment arrangement with unaffiliated third parties whereby such investors receive an ownership interest in certain of the Company's property owning subsidiaries and are entitled to receive a proportionate share of the net operating cash flow derived from the subsidiaries' property. Upon disposition of a property subject to this investment arrangement, the investors will receive a proportionate share of the net proceeds from the sale of the property. The investors have no recourse to any other assets of the Company. Due to the nature of the Company's involvement with the arrangement and the significance of its investment in relation to the investment of the third parties, the Company has determined that it controls each entity in this arrangement and therefore the entities related to this arrangement are consolidated within the Company's financial statements. A non-controlling interest is recorded for the investors ownership interest in the properties. The following table summarizes the activity related to investment arrangements with the unaffiliated third party. No distributions were made related to these investment arrangements during the three and six months ended June 30, 2016 or 2015 . As of June 30, 2016 As of December 31, 2015 Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of June 30, 2016 Non-Controlling Ownership Percentage as of June 30, 2016 Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 294 5 % $ 5,907 $ — $ 6,024 $ — UnityPoint Clinic - Moline, IL Dec. 2015 187 5 % 3,768 — 3,846 $ —

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following is a summary of the basic and diluted net loss per share computation for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net loss attributable to stockholders (in thousands) $ (20 ) $ (601 ) $ (105 ) $ (920 ) Basic and diluted weighted average shares outstanding 6,857,978 2,047,581 6,831,842 1,111,122 Basic and diluted net loss per share $ (0.01 ) $ (0.29 ) $ (0.02 ) $ (0.83 ) The Company had the following potentially dilutive securities as of June 30, 2016 and 2015 , which were excluded from the calculation of diluted loss per share attributable to stockholders as their effect would have been antidilutive: June 30, 2016 2015 Unvested restricted shares 4,266 2,666 OP Units 90 90 Class B Units 26,786 139 Total potentially dilutive securities 31,142 2,895

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting During the three and six months ended June 30, 2016 , the Company operated in three reportable business segments for management and internal financial reporting purposes: medical office buildings, triple-net leased healthcare facilities and seniors housing — operating properties. During the three and six months ended June 30, 2015 , the Company did not own any triple-net leased healthcare facilities and seniors housing — operating properties and, therefore, operated in one reportable business segment. The Company evaluates performance and makes resource allocations based on its three business segments. The medical office building segment primarily consists of MOBs leased to healthcare-related tenants under long-term leases, which may require such tenants to pay a pro rata share of property-related expenses. The triple-net leased healthcare facilities segment primarily consists of investments in seniors housing communities, hospitals, inpatient rehabilitation facilities and skilled nursing facilities under long-term leases, under which tenants are generally responsible to directly pay property-related expenses. The SHOP segment consists of direct investments in seniors housing communities, primarily providing assisted living, independent living and memory care services, which the Company operates through engaging independent third-party managers. There were no intersegment sales or transfers during the periods presented. The Company evaluates the performance of the combined properties in each segment based on net operating income ("NOI"). NOI is defined as total revenues, excluding contingent purchase price consideration, less property operating and maintenance expenses. The Company uses NOI to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that NOI is useful as a performance measure because, when compared across periods, NOI reflectes the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net income (loss). NOI excludes certain components from net income (loss) in order to provide results that are more closely related to a property's results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently. The Company believes that in order to facilitate a clear understanding of the Company's operating results, NOI should be examined in conjunction with net income (loss) as presented in the Company's consolidated financial statements. NOI should not be considered as an alternative to net income (loss) as an indication of the Company's performance or to cash flows as a measure of the Company's liquidity or ability to make distributions. The following tables reconcile the segment activity to consolidated net loss for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,173 $ 104 $ — $ 2,277 $ 4,336 $ 209 $ — $ 4,545 Operating expense reimbursements 625 — — 625 1,251 — — 1,251 Resident services and fee income — — 709 709 — — 1,407 1,407 Total revenues 2,798 104 709 3,611 5,587 209 1,407 7,203 Property operating and maintenance 808 — 476 1,284 1,595 — 946 2,541 NOI $ 1,990 $ 104 $ 233 2,327 $ 3,992 $ 209 $ 461 4,662 Operating fees to related party (39 ) (79 ) Acquisition and transaction related (103 ) (133 ) General and administrative (545 ) (1,221 ) Depreciation and amortization (1,581 ) (3,158 ) Interest expense (47 ) (95 ) Interest and other income 1 1 Income tax expense (28 ) (73 ) Net income attributable to non-controlling interests (5 ) (9 ) Net loss attributable to stockholders $ (20 ) $ (105 ) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 161 $ — $ — $ 161 $ 170 $ — $ — $ 170 Operating expense reimbursements 31 — — 31 33 — — 33 Resident services and fee income — — — — — — — — Total revenues 192 — — 192 203 — — 203 Property operating and maintenance 34 — — 34 36 — — 36 NOI $ 158 $ — $ — 158 $ 167 $ — $ — 167 Acquisition and transaction related (425 ) (473 ) General and administrative (259 ) (535 ) Depreciation and amortization (75 ) (79 ) Net loss attributable to stockholders $ (601 ) $ (920 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: June 30, December 31, (In thousands) 2016 2015 ASSETS Investments in real estate, net: Medical office buildings $ 109,527 $ 112,093 Triple-net leased healthcare facilities 4,637 4,720 Seniors housing — operating properties 10,530 11,173 Total investments in real estate, net 124,694 127,986 Cash 16,760 16,808 Restricted cash 88 62 Straight-line rent receivable 420 153 Prepaid expenses and other assets 672 735 Deferred costs, net 10 — Total assets $ 142,644 $ 145,744

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company has entered into operating lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items. (In thousands) Future Minimum Base Rental Payments July 1, 2016 — December 31, 2016 $ 52 2017 104 2018 105 2019 106 2020 109 Thereafter 3,440 Total $ 3,916 Total rental expense from the Company's operating leases was approximately $34,000 and $67,000 during the three and six months ended June 30, 2016 , respectively. The Company did not own any real estate investments with operating lease agreements and did not have any related expense during the three and six months ended June 30, 2015 . Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. There are no material legal or regulatory proceedings pending or known to be contemplated against the Company. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition that it believes will have a material adverse effect on the results of operations.

Subsequent Events

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

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Reclassifications	Reclassifications Certain prior year amounts within prepaid expenses and other assets, deferred costs, net and cash flows from operating activities have been reclassified to conform with the current year presentation.
Principles of Consolidation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and consolidated joint venture arrangements in which the Company has controlling financial interests. The portions of the consolidated joint venture arrangements not owned by the Company are presented as non-controlling interests as of and during the period consolidated. All inter-company accounts and transactions have been eliminated in consolidation. The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity ("VIE"). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE's operations. A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company continually evaluates the need to consolidate joint ventures based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. The revised guidance allows entities to apply the full retrospective or modified retrospective transition method upon adoption. In July 2015, the FASB deferred the effective date of the revised guidance by one year to annual reporting periods beginning after December 15, 2017, although entities will be allowed to early adopt the guidance as of the original effective date. The Company has not yet selected a transition method and is currently evaluating the impact of this new guidance. In January 2015, the FASB issued updated guidance that eliminates from GAAP the concept of an event or transaction that is unusual in nature and occurs infrequently being treated as an extraordinary item. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Any amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption was permitted provided that the guidance was applied from the beginning of the fiscal year of adoption. The Company elected to adopt this new guidance as of September 30, 2015. The adoption of this guidance did not have a material impact on the Company's financial position, results of operations and cash flows. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company has elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of this new guidance on its consolidated financial statements and has determined that the OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company’s partnership interest in a business and the assets of the OP can be used for purposes other than settling its obligations, such as paying distributions. As such, this standard did not have a material impact on the Company's consolidated financial statements. In April 2015, the FASB amended the presentation of debt issuance costs on the balance sheet. The amendment requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB added that, for line of credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line, regardless of whether or not there are any outstanding borrowings. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted for financial statements that have not previously been issued. The Company has elected to adopt this guidance effective January 1, 2016. The adoption of this revised guidance resulted in the reclassification of $0.1 million of deferred financing costs related to the Company's mortgage note payable from deferred costs, net to mortgage note payable, net of deferred financing costs in the Company's consolidated balance sheets as of June 30, 2016 and December 31, 2015. In September 2015, the FASB issued an update that eliminates the requirement to adjust provisional amounts from a business combination and the related impact on earnings by restating prior period financial statements for measurement period adjustments. The new guidance requires that the cumulative impact of measurement period adjustments on current and prior periods, including the prior period impact on depreciation, amortization and other income statement items and their related tax effects, shall be recognized in the period the adjustment amount is determined. The cumulative adjustment would be reflected within the respective financial statement line items affected. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted. The Company elected to adopt this guidance as of September 30, 2015. The adoption of this guidance did not have a material impact to the Company's financial position, results of operations and cash flows. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance is effective on January 1, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company has adopted the provisions of this guidance beginning January 1, 2016 and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. The Company's policy is to account for forfeitures as they occur.

Real Estate Investments (Tables

Real Estate Investments (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate Investments, Net [Abstract]
Schedule of Business Acquisitions, by Acquisition	The Company owned 19 properties as of June 30, 2016 . The following table presents the allocation of the assets acquired and liabilities assumed during the six months ended June 30, 2015 . The Company did not acquire any properties during the six months ended June 30, 2016 . Six Months Ended (Dollar amounts in thousands) June 30, 2015 Real estate investments, at cost: Land $ 2,496 Buildings, fixtures and improvements 12,103 Total tangible assets 14,599 Acquired intangibles: In-place leases 1,561 Market lease liabilities (402 ) Total assets acquired, net 15,758 Cash paid for acquired real estate investments $ 15,758 Number of properties purchased 4
Schedule of Future Minimum Rental Payments for Operating Leases	The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of June 30, 2016 . These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items. (In thousands) Future Minimum Base Rent Payments July 1, 2016 — December 31, 2016 $ 4,403 2017 8,829 2018 8,623 2019 8,294 2020 7,824 Thereafter 25,265 Total $ 63,238
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The following table lists the tenants (including for this purpose, all affiliates of such tenants) whose annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis for all properties as of June 30, 2016 and 2015 : June 30, Tenant 2016 2015 DaVita Healthcare Partners Inc. * 21.7% Fresenius Medical Care AG & Co. * 15.6% PedMed Rockwall, LLC * 14.0% Renal Hypertension Center * 21.3% Texas Health Resources * 17.8% _______________ * Tenant's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified The following table lists the states where the Company has a concentration of properties where annualized rental income on a straight-line basis represented 10% or more of consolidated annualized rental income on a straight-line basis as of June 30, 2016 and 2015 : June 30, State 2016 2015 Florida * 58.6% Georgia 11.9% * Illinois 41.9% * Texas * 41.4% _______________ * State's annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	Acquired intangible assets and liabilities consisted of the following as of the periods presented: June 30, 2016 December 31, 2015 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets: In-place leases $ 16,023 $ 2,669 $ 13,354 $ 16,023 $ 931 $ 15,092 Intangible market lease assets 2,427 257 2,170 2,427 81 2,346 Total acquired intangible assets $ 18,450 $ 2,926 $ 15,524 $ 18,450 $ 1,012 $ 17,438 Intangible market lease liabilities $ 1,902 $ 127 $ 1,775 $ 1,902 $ 53 $ 1,849
Schedule of Finite-Lived Intangible Assets	The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place lease assets, amortization and accretion of above- and below-market lease assets and liabilities, net and the accretion of above-market ground leases, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2016 2015 2016 2015 Amortization of in-place leases (1) $ 868 $ 28 $ 1,737 $ 30 Amortization and (accretion) of above- and below-market leases, net (2) 56 (4 ) 111 (5 ) Accretion of above-market ground leases (3) (4 ) — (8 ) — _______________ (1) Reflected within depreciation and amortization expense (2) Reflected within rental income (3) Reflected within property operating and maintenance expense
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) July 1, 2016 — December 31, 2016 2017 2018 2019 2020 In-place lease assets $ 1,390 $ 2,362 $ 2,197 $ 2,022 $ 1,794 Total to be added to amortization expense $ 1,390 $ 2,362 $ 2,197 $ 2,022 $ 1,794 Above-market lease assets $ 177 $ 351 $ 318 $ 309 $ 301 Below-market lease liabilities (66 ) (132 ) (132 ) (131 ) (127 ) Total to be deducted from rental income $ 111 $ 219 $ 186 $ 178 $ 174 Above-market ground lease liabilities $ 8 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 8 $ 16 $ 16 $ 16 $ 16

Mortgage Notes Payable (Tables)

Mortgage Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The following table reflects the Company's mortgage note payable as of June 30, 2016 and December 31, 2015 : Encumbered Properties Outstanding Loan Amount as of Effective Interest Rate Interest Rate Portfolio June 30, 2016 December 31, 2015 Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 5,045 $ 5,093 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (93 ) (108 ) Mortgage notes payable, net of deferred financing costs $ 4,952 $ 4,985
Schedule of Maturities of Long-term Debt	The following table summarizes the scheduled aggregate principal payments on the Company's mortgage note payable for the five years subsequent to June 30, 2016 : (In thousands) Future Principal Payments July 1, 2016 — December 31, 2016 $ 48 2017 100 2018 104 2019 4,793 2020 — Thereafter — Total $ 5,045

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The fair value of the Company's remaining financial instrument that is not reported at fair value on the consolidated balance sheet is reported below. Carrying Amount (1) at Fair Value at Carrying Amount (1) at Fair Value at (In thousands) Level June 30, June 30, December 31, December 31, Mortgage note payable and premium, net 3 $ 5,179 $ 5,170 $ 5,248 $ 5,181 _______________ (1) Carrying value includes gross mortgage note payable of $5.0 million and $5.1 million and mortgage premium, net of $0.1 million and $0.2 million as of June 30, 2016 and December 31, 2015 , respectively.

Common Stock Common Stock (Tabl

Common Stock Common Stock (Tables)	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Class of Treasury Stock	The following table reflects the number of shares repurchased cumulatively through June 30, 2016 : Number of Shares Repurchased Average Price per Share Cumulative repurchases as of December 31, 2015 (1) 1,021 $ 24.97 Six months ended June 30, 2016 (2) — — Cumulative repurchases as of June 30, 2016 (2) 1,021 $ 24.97 _______________ (1) Excludes rejected repurchases of 1,336 shares for approximately $33,000 at an average price per share of $24.95 , which were unfulfilled as of December 31, 2015 and remain rejected as of June 30, 2016 . There were no other rejected share repurchase requests for the period from April 24, 2014 (date of inception) to June 30, 2016 . (2) Excludes 0.2 million shares that have been requested for repurchase and are not yet fulfilled as of June 30, 2016 . These shares, and all additional shares requested prior to September 30, 2016 will be considered for repurchase, to the extent the requests are not withdrawn by September 30, 2016. All requested shares will be subject to the annual limitations set forth in the SRP.

Related Party Transactions an26

Related Party Transactions and Arrangements (Tables)	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate	The following table details total selling commissions and dealer manager fees incurred from and due to the Former Dealer Manager as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, 2016 December 31, 2015 Total commissions and fees incurred from and due to the Former Dealer Manager $ — $ 6,065 $ — $ 7,279 $ — $ —
Schedule Of Offering Costs Reimbursements to Related Party	The following table details fees and reimbursable offering costs incurred and payable as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Payable as of (In thousands) 2016 2015 2016 2015 June 30, 2016 December 31, 2015 Fees and expense reimbursements incurred from and due to the Advisor and its affiliates $ — $ 17 $ — $ 61 $ — $ 12 Fees and expense reimbursements incurred from and due to the Former Dealer Manager and its affiliates — 495 — 817 228 228 Fees and expense reimbursements incurred from and due to the Sponsor — — — — — — Total fees and expense reimbursements incurred from and due to the Advisor, Sponsor and Former Dealer Manager and their affiliates $ — $ 512 $ — $ 878 $ 228 $ 240
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services	The following table details amounts incurred, forgiven and payable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Payable as of (In thousands) Incurred Forgiven Incurred Forgiven Incurred Forgiven Incurred Forgiven June 30, December 31, One-time fees and reimbursements: Acquisition fees $ — $ — $ 212 $ — $ — $ — $ 236 $ — $ — $ — Acquisition cost reimbursements — — 71 — — — 79 — — — Ongoing fees and reimbursements: Property management fees 39 — — 3 79 — — 3 — 4 Professional fees and reimbursements 91 — 131 — 158 — 196 — 43 43 Distributions on Class B units 9 — — — 13 — — — — 1 Total related party operating fees and reimbursements $ 139 $ — $ 414 $ 3 $ 250 $ — $ 511 $ 3 $ 43 $ 48

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	The following table reflects restricted share award activity for the period presented: Number of Common Shares Weighted-Average Issue Price Unvested, December 31, 2015 4,799 $ 22.50 Granted — — Vested (533 ) 22.50 Forfeitures — — Unvested, June 30, 2016 4,266 $ 22.50

Non-Controlling Interests (Tabl

Non-Controlling Interests (Tables)	6 Months Ended
	Jun. 30, 2016
Noncontrolling Interest [Abstract]
Non-Controlling Interests	The following table summarizes the activity related to investment arrangements with the unaffiliated third party. No distributions were made related to these investment arrangements during the three and six months ended June 30, 2016 or 2015 . As of June 30, 2016 As of December 31, 2015 Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of June 30, 2016 Non-Controlling Ownership Percentage as of June 30, 2016 Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement Net Real Estate Assets Subject to Investment Arrangement Mortgage Notes Payable Subject to Investment Arrangement UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 294 5 % $ 5,907 $ — $ 6,024 $ — UnityPoint Clinic - Moline, IL Dec. 2015 187 5 % 3,768 — 3,846 $ —

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a summary of the basic and diluted net loss per share computation for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net loss attributable to stockholders (in thousands) $ (20 ) $ (601 ) $ (105 ) $ (920 ) Basic and diluted weighted average shares outstanding 6,857,978 2,047,581 6,831,842 1,111,122 Basic and diluted net loss per share $ (0.01 ) $ (0.29 ) $ (0.02 ) $ (0.83 )
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company had the following potentially dilutive securities as of June 30, 2016 and 2015 , which were excluded from the calculation of diluted loss per share attributable to stockholders as their effect would have been antidilutive: June 30, 2016 2015 Unvested restricted shares 4,266 2,666 OP Units 90 90 Class B Units 26,786 139 Total potentially dilutive securities 31,142 2,895

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables reconcile the segment activity to consolidated net loss for the three and six months ended June 30, 2016 and 2015 : Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,173 $ 104 $ — $ 2,277 $ 4,336 $ 209 $ — $ 4,545 Operating expense reimbursements 625 — — 625 1,251 — — 1,251 Resident services and fee income — — 709 709 — — 1,407 1,407 Total revenues 2,798 104 709 3,611 5,587 209 1,407 7,203 Property operating and maintenance 808 — 476 1,284 1,595 — 946 2,541 NOI $ 1,990 $ 104 $ 233 2,327 $ 3,992 $ 209 $ 461 4,662 Operating fees to related party (39 ) (79 ) Acquisition and transaction related (103 ) (133 ) General and administrative (545 ) (1,221 ) Depreciation and amortization (1,581 ) (3,158 ) Interest expense (47 ) (95 ) Interest and other income 1 1 Income tax expense (28 ) (73 ) Net income attributable to non-controlling interests (5 ) (9 ) Net loss attributable to stockholders $ (20 ) $ (105 ) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 161 $ — $ — $ 161 $ 170 $ — $ — $ 170 Operating expense reimbursements 31 — — 31 33 — — 33 Resident services and fee income — — — — — — — — Total revenues 192 — — 192 203 — — 203 Property operating and maintenance 34 — — 34 36 — — 36 NOI $ 158 $ — $ — 158 $ 167 $ — $ — 167 Acquisition and transaction related (425 ) (473 ) General and administrative (259 ) (535 ) Depreciation and amortization (75 ) (79 ) Net loss attributable to stockholders $ (601 ) $ (920 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: June 30, December 31, (In thousands) 2016 2015 ASSETS Investments in real estate, net: Medical office buildings $ 109,527 $ 112,093 Triple-net leased healthcare facilities 4,637 4,720 Seniors housing — operating properties 10,530 11,173 Total investments in real estate, net 124,694 127,986 Cash 16,760 16,808 Restricted cash 88 62 Straight-line rent receivable 420 153 Prepaid expenses and other assets 672 735 Deferred costs, net 10 — Total assets $ 142,644 $ 145,744

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases Disclosure	These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items. (In thousands) Future Minimum Base Rental Payments July 1, 2016 — December 31, 2016 $ 52 2017 104 2018 105 2019 106 2020 109 Thereafter 3,440 Total $ 3,916

Organization (Narrative) (Detai

Organization (Narrative) (Details)	Feb. 11, 2015USD ($)	Jun. 30, 2016USD ($)ft²propertystate$ / sharesshares	Jun. 30, 2015USD ($)property	Dec. 31, 2015USD ($)$ / sharesshares	Jun. 30, 2016USD ($)ft²state$ / sharesshares	Jan. 25, 2016shares	Aug. 20, 2014USD ($)$ / sharesshares
Operations [Line Items]
Common stock, shares authorized (in shares)		300,000,000		300,000,000	300,000,000
Common stock, par value (in usd per share) | $ / shares		$ 0.01		$ 0.01	$ 0.01		$ 0.01
Subscriptions required to break escrow | $	$ 2,000,000
Common stock, shares outstanding (in shares)		6,879,894		6,792,797	6,879,894
Proceeds from issuance of common stock | $		$ 0	$ 84,153,000	$ 167,200,000	$ 169,300,000
Trading days after second year anniversary of the escrow break for determining net asset value price		150 days
Number of properties purchased | property		19	4
Number of states Company operates in | state		10			10
Area of real estate property | ft²		467,932			467,932
Common Stock
Operations [Line Items]
Share Price (in usd per share) | $ / shares							$ 25
Shares available for issuance under a distribution reinvestment plan (in shares)						700,000	26,300,000
Common stock, shares outstanding (in shares)		6,879,894		6,792,797	6,879,894
Common Stock | Minimum
Operations [Line Items]
Share Price, DRIP (in usd per share) | $ / shares		$ 23.75			$ 23.75
Share Price, DRIP, percentage of estimated value of common stock		95.00%			95.00%
IPO
Operations [Line Items]
Common stock, shares authorized (in shares)							125,000,000
Stock available for issuance in public offering | $							$ 3,125,000,000

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Narrative) (Details) - Accounting Standards Update 2015-03 - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Deferred Costs, Net
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing costs	$ 0.1	$ 0.1
Mortgage Note Payable
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred financing costs	$ (0.1)	$ (0.1)

Real Estate Investments (Narrat

Real Estate Investments (Narrative) (Details) - property	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Real Estate Investments, Net [Abstract]
Number of properties purchased	19	4

Real Estate Investments (Acquir

Real Estate Investments (Acquired Assets) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016property	Jun. 30, 2015USD ($)property
Real estate investments
Land		$ 2,496
Buildings, fixtures and improvements		12,103
Total tangible assets		14,599
Acquired intangibles:		1,561
Market lease liabilities		(402)
Total assets acquired, net		15,758
Cash paid for acquired real estate investments		$ 15,758
Number of properties purchased | property	19	4

Real Estate Investments (Future

Real Estate Investments (Future Minimum Payments) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Real Estate Investments, Net [Abstract]
July 1, 2016 — December 31, 2016	$ 4,403
2,017	8,829
2,018	8,623
2,019	8,294
2,020	7,824
Thereafter	25,265
Total	$ 63,238

Real Estate Investments (Custom

Real Estate Investments (Customer Concentration) (Details) - Sales Revenue, Net - Customer Concentration Risk	6 Months Ended
	Jun. 30, 2015
DaVita Healthcare Partners, Inc.
Concentration Risk [Line Items]
Concentration risk, percentage	21.70%
Fresenius Medical Care AG and Company
Concentration Risk [Line Items]
Concentration risk, percentage	15.60%
PedMed Rockwall LLC
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%
Renal Hypertension Center
Concentration Risk [Line Items]
Concentration risk, percentage	21.30%
Texas Health Resources
Concentration Risk [Line Items]
Concentration risk, percentage	17.80%

Real Estate Investments (Geogra

Real Estate Investments (Geographic Concentrations) (Details) - Geographic Concentration Risk - Sales Revenue, Net	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Florida
Concentration Risk [Line Items]
Concentration risk, percentage		58.60%
Georgia
Concentration Risk [Line Items]
Concentration risk, percentage	11.90%
Illinois
Concentration Risk [Line Items]
Concentration risk, percentage	41.90%
Texas
Concentration Risk [Line Items]
Concentration risk, percentage		41.40%

Real Estate Investments (Schedu

Real Estate Investments (Schedule of Acquired Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Intangible assets:
Finite-lived intangible assets, gross	$ 18,450	$ 18,450
Finite-lived intangible assets, accumulated amortization	2,926	1,012
Finite-lived intangible assets, net	15,524	17,438
Intangible market lease liabilities
Below market lease, gross	1,902	1,902
Below market lease, accumulated amortization	127	53
Below market lease, net	1,775	1,849
In-place leases
Intangible assets:
Finite-lived intangible assets, gross	16,023	16,023
Finite-lived intangible assets, accumulated amortization	2,669	931
Finite-lived intangible assets, net	13,354	15,092
Intangible market lease assets
Intangible assets:
Finite-lived intangible assets, gross	2,427	2,427
Finite-lived intangible assets, accumulated amortization	257	81
Finite-lived intangible assets, net	$ 2,170	$ 2,346

Real Estate Investments (Summar

Real Estate Investments (Summary of Amortization and Accretion Recognized) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease intangibles			$ 102	$ (6)
In-place Leases and Other Intangible Assets | Depreciation and Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease intangibles	$ 868	$ 28	1,737	30
Above and Below Market Leases | Rental Income
Finite-Lived Intangible Assets [Line Items]
Accretion of Below-Market Lease Liabilities and Amortization of Above-Market Lease Assets, Net	56	(4)	111	(5)
Above Market Ground Lease | Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease intangibles	$ (4)	$ 0	$ (8)	$ 0

Real Estate Investments (Summ41

Real Estate Investments (Summary of Intangible Assets and Liabilities Future Amortization Expense) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2016 - December 31, 2016	$ 1,390
Finite-lived lease amortization expense 2017	2,362
Finite-lived lease amortization expense 2018	2,197
Finite-lived lease amortization expense 2019	2,022
Finite-lived lease amortization expense 2020	1,794
Amortization Expense | In-place leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2016 - December 31, 2016	1,390
Finite-lived lease amortization expense 2017	2,362
Finite-lived lease amortization expense 2018	2,197
Finite-lived lease amortization expense 2019	2,022
Finite-lived lease amortization expense 2020	1,794
Rental Income
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2016 - December 31, 2016	111
Finite-lived lease amortization expense 2017	219
Finite-lived lease amortization expense 2018	186
Finite-lived lease amortization expense 2019	178
Finite-lived lease amortization expense 2020	174
Rental Income | Above Market Leases
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2016 - December 31, 2016	177
Finite-lived lease amortization expense 2017	351
Finite-lived lease amortization expense 2018	318
Finite-lived lease amortization expense 2019	309
Finite-lived lease amortization expense 2020	301
Rental Income | Below Market Lease
Finite-Lived Intangible Assets [Line Items]
Below market lease income, amortization July 1, 2016 - December 31, 2016	(66)
Below market lease income, amortization 2017	(132)
Below market lease income, amortization 2018	(132)
Below market lease income, amortization 2019	(131)
Below market lease income, amortization 2020	(127)
Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2016 - December 31, 2016	8
Finite-lived lease amortization expense 2017	16
Finite-lived lease amortization expense 2018	16
Finite-lived lease amortization expense 2019	16
Finite-lived lease amortization expense 2020	16
Property Operating and Maintenance Expense | Above Market Ground Lease
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease liability, lease income, amortization July 1, 2016 - December 31, 2016	8
Finite-lived lease liability, lease income, amortization 2017	16
Finite-lived lease liability, lease income, amortization 2018	16
Finite-lived lease liability, lease income, amortization 2019	16
Finite-lived lease liability, lease income, amortization 2020	$ 16

Mortgage Notes Payable (Mortgag

Mortgage Notes Payable (Mortgage Notes) (Details) $ in Thousands	Jun. 30, 2016USD ($)property	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Real estate investments relating to notes payable	$ 9,000
Mortgages
Debt Instrument [Line Items]
Outstanding loan amount	5,045
Deferred financing costs, net of accumulated amortization	(93)	$ (108)
Mortgage notes payable, net of deferred financing costs	$ 4,952	4,985
Philip Professional Center - Lawrenceville, GA | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property	2
Outstanding loan amount	$ 5,045	$ 5,093
Effective Interest Rate	4.00%

Mortgage Notes Payable (Mortg43

Mortgage Notes Payable (Mortgage Principal Payments) (Details) - Mortgages $ in Thousands	Jun. 30, 2016USD ($)
Debt Instrument [Line Items]
July 1, 2016 — December 31, 2016	$ 48
2,017	100
2,018	104
2,019	4,793
2,020	0
Thereafter	0
Total Debt	$ 5,045

Fair Value of Financial Instr44

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage premium, net	$ 134	$ 155
Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, gross	5,045
Significant Unobservable Inputs Level 3 | Mortgages | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	5,179	5,248
Significant Unobservable Inputs Level 3 | Mortgages | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	5,170	5,181
Philip Professional Center - Lawrenceville, GA | Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, gross	$ 5,045	$ 5,093

Common Stock (Narrative) (Detai

Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2016	Mar. 31, 2016	Dec. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2016	Jun. 29, 2016	Jan. 25, 2016
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)				6,879,894		6,879,894			6,792,797	6,879,894
Proceeds from issuance of common stock						$ 0	$ 84,153		$ 167,200	$ 169,300
Dividends declared per day (in dollars per share)	$ 0.0042808219	$ 0.0042691257
Distributions declared per share (in usd per share)	$ 1.56			$ 0.39	$ 0.39	$ 0.78	$ 0.46
Short term trading fee						2.00%
Percentage of weighted average outstanding stock for fiscal semester												2.50%
Percentage of weighted average outstanding stock for fiscal year											5.00%	5.00%
Common stock issued through distribution reinvestment plan (in shares)						87,000	9,000
Common stock issued through distribution reinvestment plan						$ 2,070	$ 215
One Year
Class of Stock [Line Items]
Repurchase price as a percent of share price				92.50%		92.50%				92.50%
Two Years
Class of Stock [Line Items]
Repurchase price as a percent of share price				95.00%		95.00%				95.00%
Three Years
Class of Stock [Line Items]
Repurchase price as a percent of share price				97.50%		97.50%				97.50%
Four Years
Class of Stock [Line Items]
Repurchase price as a percent of share price				100.00%		100.00%				100.00%
Maximum | One Year
Class of Stock [Line Items]
Share repurchase price (in dollars per share)				$ 23.13		$ 23.13				$ 23.13
Repurchase price as a percent of share price				92.50%		92.50%				92.50%
Maximum | Two Years
Class of Stock [Line Items]
Share repurchase price (in dollars per share)				$ 23.75		$ 23.75				$ 23.75
Repurchase price as a percent of share price				95.00%		95.00%				95.00%
Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)				6,879,894		6,879,894			6,792,797	6,879,894
Scenario, Forecast
Class of Stock [Line Items]
Percent of weighted average outstanding stock authorized for repurchase			1.25%					3.75%

Common Stock (Cumulative Share

Common Stock (Cumulative Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	39 Months Ended	45 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2016
Equity [Abstract]
Number of shares repurchased (in shares)	0	1,021	1,021
Average price per share (in usd per share)	$ 0	$ 24.97	$ 24.97
Remaining number of shares authorized to be repurchased (in shares)	1,336		1,336
Unfulfilled repurchases, value	$ 33
Unfilled requests, average cost per share (in usd per share)	$ 24.95
Number of shares in unfulfilled requests (in shares)	200,000		200,000

Related Party Transactions an47

Related Party Transactions and Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Common stock, shares outstanding (in shares)	6,879,894	6,792,797
Due to affiliate	$ 271	$ 288
American Realty Capital Healthcare III Special Limited Partnership, LLC | Special Limited Partner
Related Party Transaction [Line Items]
Common stock, shares outstanding (in shares)	8,888	8,888

Related Party Transactions an48

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) $ in Millions	Jun. 30, 2016USD ($)
Related Party Transaction [Line Items]
Cumulative offering costs	$ 21.4
Dealer Manager
Related Party Transaction [Line Items]
Aggregate costs borne by related party	$ 3.8
Maximum
Related Party Transaction [Line Items]
Liability for offering and related costs from IPO	2.00%
Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Dealer Manager
Related Party Transaction [Line Items]
Sales commissions as a percentage of benchmark	7.00%
Cumulative Offering Costs | Dealer Manager
Related Party Transaction [Line Items]
Maximum cumulative offering costs for IPO	15.00%
Option One | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Maximum | Dealer Manager
Related Party Transaction [Line Items]
Fee earned by related party, percentage of benchmark	3.00%
Option Two | Realty Capital Securities, LLC | Gross Proceeds, Common Stock | Dealer Manager
Related Party Transaction [Line Items]
Fee earned by related party, percentage of benchmark	2.50%
Transaction Fee Upon Consummation of the Sale | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	2.50%
Gross Proceeds, Common Stock | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	7.50%
Fee Paid at Anniversary of Sale | Option Two | Gross Proceeds, Common Stock | Maximum | Participating Broker-Dealer
Related Party Transaction [Line Items]
Brokerage fee as a percentage of benchmark	1.00%

Related Party Transactions an49

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO, Selling Commissions and Dealer Manager Fees) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Due to affiliate	$ 271		$ 271		$ 288
Realty Capital Securities, LLC | Total commissions and fees incurred from and due to the Dealer Manager | Dealer Manager
Related Party Transaction [Line Items]
Total commissions and fees incurred from the Dealer Manager	0	$ 6,065	0	$ 7,279
Due to affiliate	$ 0		$ 0		$ 0

Related Party Transactions an50

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO, Offering Costs and Reimbursements) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Due to affiliate	$ 271		$ 271		$ 288
Fees and Expense Reimbursement, Stock Offering | American Realty Capital Healthcare III Advisors, LLC | Advisor
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	$ 17	0	$ 61
Due to affiliate	0		0		12
Fees and Expense Reimbursement, Stock Offering | Realty Capital Securities, LLC | Dealer Manager
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	495	0	817
Due to affiliate	228		228		228
Fees and Expense Reimbursement, Stock Offering | Realty Capital Securities, LLC | Sponsor
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	0	0	0
Due to affiliate	0		0		0
Fees and Expense Reimbursement, Stock Offering | Realty Capital Securities, LLC | Advisor, Sponsor and Former Dealer Manager
Related Party Transaction [Line Items]
One-time fees and reimbursements:	0	$ 512	0	$ 878
Due to affiliate	$ 228		$ 228		$ 240

Related Party Transactions an51

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended		26 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016
Related Party Transaction [Line Items]
Share price, net (in dollars per share)	$ 22.50		$ 22.50		$ 22.50
Advisor
Related Party Transaction [Line Items]
Shares approved for issuance (in shares)	9,197	139	19,532	139	26,786
American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.50%		1.50%		1.50%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%		0.50%		0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	4.50%		4.50%		4.50%
Quarterly asset management fee earned	0.1875%		0.1875%		0.1875%
American Realty Capital Healthcare III Advisors, LLC | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.50%		1.50%		1.50%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%		0.50%		0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	4.50%		4.50%		4.50%
American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price, All Assets Acquired | Advisor
Related Party Transaction [Line Items]
Acquisition fees and financing coordination fees, fee cap earned by related party, percentage of benchmark	2.00%		2.00%		2.00%
American Realty Capital Healthcare III Advisors, LLC | Amount Available or Outstanding Under Financing Arrangement | Advisor
Related Party Transaction [Line Items]
Financing coordination fees	0.75%		0.75%		0.75%
American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	1.50%		1.50%		1.50%
American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	2.50%		2.50%		2.50%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Reimbursed legal fees to related party, percentage of benchmark	0.10%		0.10%		0.10%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Reimbursed legal fees to related party, percentage of benchmark	0.10%		0.10%		0.10%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Managed Properties | Advisor
Related Party Transaction [Line Items]
Oversight fees earned by related party	1.00%		1.00%		1.00%
Greater Of | Maximum | American Realty Capital Healthcare III Advisors, LLC | Average Invested Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	2.00%		2.00%		2.00%
Greater Of | Maximum | American Realty Capital Healthcare III Advisors, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	25.00%		25.00%		25.00%
Greater Of | Maximum | American Realty Capital Healthcare III Advisors, LLC | Average Invested Assets and Net Income Excluding Additions to Non-Cash Reserves and Gains on Sales | Advisor
Related Party Transaction [Line Items]
Operating expenses limitation	$ 0.1		$ 0.1		$ 0.1

Related Party Transactions an52

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Due to affiliate	$ 271		$ 271		$ 288
Total related party operating fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	139	$ 414	250	$ 511
Expenses forgiven	0	3	0	3
Due to affiliate	43		43		48
Acquisition fees | Nonrecurring Fees
Related Party Transaction [Line Items]
Expenses incurred	0	212	0	236
Expenses forgiven	0	0	0	0
Due to affiliate	0		0		0
Acquisition cost reimbursements | Nonrecurring Fees
Related Party Transaction [Line Items]
Expenses incurred	0	71	0	79
Expenses forgiven	0	0	0	0
Due to affiliate	0		0		0
Property management fees | Recurring Fees
Related Party Transaction [Line Items]
Expenses incurred	39	0	79	0
Expenses forgiven	0	3	0	3
Due to affiliate	0		0		4
Professional fees and reimbursements | Recurring Fees
Related Party Transaction [Line Items]
Expenses incurred	91	131	158	196
Expenses forgiven	0	0	0	0
Due to affiliate	43		43		43
Distributions on Class B units | Recurring Fees
Related Party Transaction [Line Items]
Expenses incurred	9	0	13	0
Expenses forgiven	0	$ 0	0	$ 0
Due to affiliate	$ 0		$ 0		$ 1

Related Party Transactions an53

Related Party Transactions and Arrangements (Fees Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets) (Details)	Jun. 30, 2016
American Realty Capital Healthcare III Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark	6.00%
Subordinated performance fee as a percentage of benchmark	15.00%
American Realty Capital Healthcare III Special Limited Partnership, LLC | Excess of Adjusted Market Value of Real Estate Assets Plus Distributions Over Aggregate Contributed Investor Capital | Special Limited Partner
Related Party Transaction [Line Items]
Subordinated participation fees as a percentage of benchmark	15.00%
Distribution upon nonrenewal of advisory agreement	15.00%
American Realty Capital Healthcare III Special Limited Partnership, LLC | Net Sale Proceeds, after Return of Capital Contributions and Annual Targeted Investor Return | Special Limited Partner
Related Party Transaction [Line Items]
Subordinated performance fee as a percentage of benchmark	15.00%
Annual Targeted Investor Return | American Realty Capital Healthcare III Special Limited Partnership, LLC | Special Limited Partner
Related Party Transaction [Line Items]
Cumulative capital investment return to investors as a percentage of benchmark	6.00%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Pre-tax Non-compounded Return on Capital Contribution | Advisor
Related Party Transaction [Line Items]
Subordinated performance fee as a percentage of benchmark	10.00%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	2.00%
Maximum | Brokerage Commission Fees | American Realty Capital Healthcare III Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	50.00%
Maximum | Real Estate Commissions | American Realty Capital Healthcare III Advisors, LLC | Contract Sales Price | Advisor
Related Party Transaction [Line Items]
Real estate commissions as a percentage of benchmark	6.00%

Equity-Based Compensation (Narr

Equity-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation			$ 12	$ 6
Restricted Share Plan | Unvested restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors (in shares)	1,333		1,333
Vesting period			5 years
Periodic vesting percentage	20.00%		20.00%
Maximum authorized amount as a percentage of shares authorized			5.00%
Number of shares authorized (in shares)	6,300,000		6,300,000
Unrecognized compensation costs	$ 100		$ 100
Weighted average period of recognition			3 years 6 months
Equity-based compensation	$ 6	$ 3	$ 12	$ 6

Equity-Based Compensation (Acti

Equity-Based Compensation (Activity) (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning Balance (in shares) | shares	4,799
Granted (in shares) | shares	0
Vested (in shares) | shares	(533)
Forfeitures (in shares) | shares	0
Ending Balance (in shares) | shares	4,266
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Beginning Balance, Weighted-Average Issue Price (usd per share) | $ / shares	$ 22.50
Granted, Weighted-Average Issue Price (usd per share) | $ / shares	0
Vested, Weighted-Average Issue Price (usd per share) | $ / shares	22.50
Forfeitures, Weighted-Average Issue Price (usd per share) | $ / shares	0
Ending Balance, Weighted-Average Issue Price (usd per share) | $ / shares	$ 22.50

Non-Controlling Interests (Narr

Non-Controlling Interests (Narrative) (Details) - shares	Jun. 30, 2016	Dec. 31, 2015
Advisor | American Realty Capital Healthcare III Advisors, LLC
Noncontrolling Interest [Line Items]
Units outstanding	90	90

Non-Controlling Interests (Inve

Non-Controlling Interests (Investment Agreements with Third Parties) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 481	$ 472
Net Real Estate Assets Subject to Investment Arrangement	124,694	127,986
Mortgage Notes Payable Subject to Investment Arrangement	4,952	4,985
UnityPoint Clinic - Muscatine
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 294
Noncontrolling ownership percentage	5.00%
UnityPoint Clinic - Muscatine | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	$ 5,907	6,024
Mortgage Notes Payable Subject to Investment Arrangement	0	0
UnityPoint Clinic - Moline
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 187
Noncontrolling ownership percentage	5.00%
UnityPoint Clinic - Moline | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	$ 3,768	3,846
Mortgage Notes Payable Subject to Investment Arrangement	$ 0	$ 0

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net loss attributable to stockholders	$ (20)	$ (601)	$ (105)	$ (920)
Basic and diluted weighted average shares outstanding (in shares)	6,857,978	2,047,581	6,831,842	1,111,122
Basic and diluted net loss per share (in usd per share)	$ (0.01)	$ (0.29)	$ (0.02)	$ (0.83)

Net Loss Per Share (Antidilutiv

Net Loss Per Share (Antidilutive Securities) (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	31,142	2,895
Unvested restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	4,266	2,666
OP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	90	90
Class B Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	26,786	139

Segment Reporting (Reconciliati

Segment Reporting (Reconciliation of Segment Activity) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2016USD ($)segment	Jun. 30, 2015USD ($)segment
Segment Reporting Information [Line Items]
Number of reportable segments | segment		1	3	1
Rental income	$ 2,277	$ 161	$ 4,545	$ 170
Operating expense reimbursements	625	31	1,251	33
Resident services and fee income	709	0	1,407	0
Revenues	3,611	192	7,203	203
Property operating and maintenance	1,284	34	2,541	36
NOI	2,327	158	4,662	167
Operating fees to related party	(39)	0	(79)	0
Acquisition and transaction related	(103)	(425)	(133)	(473)
General and administrative	(545)	(259)	(1,221)	(535)
Depreciation and amortization	(1,581)	(75)	(3,158)	(79)
Interest expense	(47)	0	(95)	0
Interest and other income	1	0	1	0
Income tax expense	(28)	0	(73)	0
Net income attributable to non-controlling interests	(5)	0	(9)	0
Net loss attributable to stockholders	(20)	(601)	(105)	(920)
Operating Segments | Medical Office Buildings
Segment Reporting Information [Line Items]
Rental income	2,173	161	4,336	170
Operating expense reimbursements	625	31	1,251	33
Resident services and fee income	0	0	0	0
Revenues	2,798	192	5,587	203
Property operating and maintenance	808	34	1,595	36
NOI	1,990	158	3,992	167
Operating Segments | Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Rental income	104	0	209	0
Operating expense reimbursements	0	0	0	0
Resident services and fee income	0	0	0	0
Revenues	104	0	209	0
Property operating and maintenance	0	0	0	0
NOI	104	0	209	0
Operating Segments | Seniors Housing Communities
Segment Reporting Information [Line Items]
Rental income	0	0	0	0
Operating expense reimbursements	0	0	0	0
Resident services and fee income	709	0	1,407	0
Revenues	709	0	1,407	0
Property operating and maintenance	476	0	946	0
NOI	$ 233	$ 0	$ 461	$ 0

Segment Reporting (Reconcilia61

Segment Reporting (Reconciliation of Segment Activity to Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 124,694	$ 127,986
Cash	16,760	16,808	$ 57,910	$ 187
Restricted cash	88	62
Straight-line rent receivable	420	153
Prepaid expenses and other assets	672	735
Deferred costs, net	10
Total assets	142,644	145,744
Operating Segments | Medical Office Buildings
Segment Reporting Information [Line Items]
Investments in real estate, net	109,527	112,093
Operating Segments | Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Investments in real estate, net	4,637	4,720
Operating Segments | Seniors Housing Communities
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 10,530	$ 11,173

Commitments and Contingencies62

Commitments and Contingencies (Summary of Operating Lease Agreements) (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2016 — December 31, 2016	$ 52
2,017	104
2,018	105
2,019	106
2,020	109
Thereafter	3,440
Total	$ 3,916

Commitments and Contingencies63

Commitments and Contingencies (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 34,000	$ 0	$ 67,000	$ 0