American Realty Capital Healthcare Trust Iii 10-Q 11 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 30, 2017
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		6,955,194

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate investments, at cost:
Land	$ 10,225	$ 10,225
Buildings, fixtures and improvements	101,202	101,197
Acquired intangible lease assets	18,450	18,450
Total real estate investments, at cost	129,877	129,872
Less: accumulated depreciation and amortization	(9,538)	(8,137)
Total real estate investments, net	120,339	121,735
Cash	14,869	16,371
Restricted cash	62	37
Straight-line rent receivable	658	662
Prepaid expenses and other assets (including $144 and $129 due from related parties as of March 31, 2017 and December 31, 2016, respectively)	1,018	1,242
Deferred costs, net	9	9
Total assets	136,955	140,056
LIABILITIES AND EQUITY
Mortgage note payable, net of deferred financing costs	4,901	4,919
Mortgage premium, net	102	113
Market lease intangible liabilities, net	1,664	1,701
Accounts payable and accrued expenses (including $278 and $259 due to related parties as of March 31, 2017 and December 31, 2016, respectively)	2,241	1,904
Deferred rent	425	472
Distributions payable	923	925
Total liabilities	10,256	10,034
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding as of March 31, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 6,939,976 and 6,978,303 shares of common stock issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	69	70
Additional paid-in capital	149,290	150,109
Accumulated deficit	(23,127)	(20,621)
Total stockholders' equity	126,232	129,558
Non-controlling interests	467	464
Total equity	126,699	130,022
Total liabilities and equity	$ 136,955	$ 140,056

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Due from affiliates	$ 144	$ 129
Due to affiliates	$ 278	$ 259
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)	6,939,976	6,978,303
Common stock, shares outstanding (in shares)	6,939,976	6,978,303

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Rental income	$ 2,276	$ 2,268
Operating expense reimbursements	790	626
Resident services and fee income	742	698
Total revenues	3,808	3,592
Expenses:
Property operating and maintenance	1,563	1,257
Operating fees to related party	13	40
Acquisition and transaction related	46	30
General and administrative	604	676
Depreciation and amortization	1,316	1,577
Total expenses	3,542	3,580
Operating income	266	12
Other expense:
Interest expense	(46)	(48)
Total other expense	(46)	(48)
Income (loss) before income taxes	220	(36)
Income tax expense	(55)	(45)
Net income (loss)	165	(81)
Net income attributable to non-controlling interests	(3)	(4)
Net income (loss) attributable to stockholders	162	(85)
Comprehensive income (loss) attributable to stockholders	$ 162	$ (85)
Basic net income (loss) per share (in usd per share)	$ 0.02	$ (0.01)
Diluted net income (loss) per share (in usd per share)	0.01	(0.01)
Distributions declared per share (in usd per share)	$ 0.39	$ 0.39

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Total Stockholders' Equity	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Non-controlling Interests
Beginning balance (in shares) at Dec. 31, 2016			6,978,303
Beginning balance at Dec. 31, 2016	$ 130,022	$ 129,558	$ 70	$ 150,109	$ (20,621)	$ 464
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued through distribution reinvestment plan (in shares)	45,277
Common stock issued through distribution reinvestment plan	$ 1,075
Common stock repurchases (in shares)	(83,604)
Common stock repurchases	$ (1,904)	(1,904)	$ (1)	(1,903)
Share-based compensation	9
Distributions declared	(2,668)
Net income	165	162			162	3
Ending balance (in shares) at Mar. 31, 2017			6,939,976
Ending balance at Mar. 31, 2017	$ 126,699	$ 126,232	$ 69	$ 149,290	$ (23,127)	$ 467

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 165	$ (81)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,316	1,577
Amortization of deferred financing costs	7	8
Amortization of mortgage premium	(11)	(10)
Amortization of market lease and other intangibles	51	51
Share-based compensation	9	6
Changes in assets and liabilities:
Straight-line rent receivable	4	(137)
Prepaid expenses and other assets	223	(217)
Accounts payable and accrued expenses	337	496
Deferred rent	(47)	141
Restricted cash	(25)	0
Net cash provided by operating activities	2,029	1,834
Cash flows from investing activities:
Capital expenditures	(7)	(61)
Net cash used in investing activities	(7)	(61)
Cash flows from financing activities:
Payments on mortgage note payable	(25)	(24)
Common stock repurchases	(1,904)	0
Payments of offering costs and fees related to common stock issuances	0	(68)
Distributions paid	(1,595)	(1,808)
Net cash used in financing activities	(3,524)	(1,900)
Net change in cash	(1,502)	(127)
Cash, beginning of period	16,371	16,808
Cash, end of period	14,869	16,681
Supplemental disclosure of cash flow information:
Cash paid for interest	50	51
Cash paid for income taxes	0	64
Non-cash investing and financing activities:
Payable and accrued offering costs	228	369
Common stock issued through distribution reinvestment plan	$ 1,075	$ 837

Organization

Organization	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Note 1 — 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 elected and qualified 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 , plus 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. The Company's IPO, which was conducted by Realty Capital Securities, LLC (the "Former Dealer Manager"), as exclusive wholesale distributor, lapsed in accordance with its terms in August 2016. On January 25, 2016, the Company registered an additional 0.7 million shares to be issued pursuant to the DRIP pursuant to a registration statement on Form S-3 (File No. 333-209117). On April 28, 2017, in connection with discussions pursuant to the Strategic Review (as defined below), the Company temporarily suspended the DRIP for two monthly investment periods. As of March 31, 2017 , 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 proceeds from the IPO and the DRIP, net of share repurchases, of $170.7 million . 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, pursuant to which 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 any 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. Pursuant to this process, the Company is engaging in discussions with respect to a potential transaction. The 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 a potential transaction 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 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 March 31, 2017 , the Company owned 19 properties located in 10 states, comprised of 0.5 million rentable square feet. Substantially all of the Company's business is conducted through the OP. The Company has no 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 American Realty Capital VII, LLC, the Company's sponsor, (the "Sponsor"), as a result of which they are related parties, and each have received or may 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 may receive fees during the Company's offering, acquisition, operational and liquidation stages.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 — 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. The results of operations for the three months ended March 31, 2017 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, 2016 , which are included in the Company's Annual Report on Form 10-K filed with the SEC on March 9, 2017 . There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2017 other than the updates described below. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. 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 is evaluating the impact of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company is continuing to evaluate the allowable methods of adoption. 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 which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company has begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. The Company is continuing to evaluate 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 August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In February 2017, the FASB issued guidance on other income, specifically gains and losses from the derecognition of nonfinancial assets. The guidance clarifies the definition of ‘in substance non-financial assets’, unifies guidance related to partial sales of non-financial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of non-financial assets to joint ventures. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new guidance. Recently Adopted Accounting Pronouncements In October 2016, the FASB issued guidance where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. 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, 2017 and determined that there is no impact to the Company's consolidated financial position, results of operations and cash flows. In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when, among other things, substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. The Company has assessed this revised guidance and expects, based on historical acquisitions, that, in most cases, a future property acquisition would be treated as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. The Company has adopted the provisions of this guidance beginning January 1, 2017.

Real Estate Investments

Real Estate Investments	3 Months Ended
	Mar. 31, 2017
Real Estate Investments, Net [Abstract]
Real Estate Investments	Note 3 — Real Estate Investments The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter as of March 31, 2017 . 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 April 1, 2017 — December 31, 2017 $ 6,716 2018 8,750 2019 8,300 2020 7,827 2021 6,431 Thereafter 18,846 Total $ 56,870 As of March 31, 2017 and 2016 , the Company had no 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. 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 March 31, 2017 and 2016 : March 31, State 2017 2016 Illinois 42.3% 49.9% Georgia 11.8% 10.3% Intangible Assets and Liabilities Acquired intangible assets and liabilities consisted of the following as of the periods presented: March 31, 2017 December 31, 2016 (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 $ 4,660 $ 11,363 $ 16,023 $ 4,058 $ 11,965 Above-market lease assets 2,427 523 1,904 2,427 434 1,993 Total acquired intangible assets $ 18,450 $ 5,183 $ 13,267 $ 18,450 $ 4,492 $ 13,958 Intangible liabilities: Above-market ground lease liabilities $ 179 $ 26 $ 153 $ 180 $ 22 $ 158 Below-market lease liabilities 1,722 211 1,511 1,722 179 1,543 Total acquired intangible liabilities $ 1,901 $ 237 $ 1,664 $ 1,902 $ 201 $ 1,701 The following table discloses amounts recognized within the consolidated statements of operations and comprehensive income (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 March 31, (In thousands) 2017 2016 Amortization of in-place leases (1) $ 601 $ 869 Amortization (accretion) of above- and below-market leases, net (2) $ 55 $ 55 Accretion of above-market ground leases (3) $ (4 ) $ (4 ) _______________ (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) April 1, 2017 — December 31, 2017 2018 2019 2020 2021 In-place lease assets $ 1,760 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Total to be added to amortization expense $ 1,760 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Above-market lease assets $ 262 $ 318 $ 309 $ 301 $ 224 Below-market lease liabilities (99 ) (132 ) (131 ) (127 ) (120 ) Total to be deducted from rental income $ 163 $ 186 $ 178 $ 174 $ 104 Above-market ground lease liabilities $ 12 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 12 $ 16 $ 16 $ 16 $ 16

Mortgage Notes Payable

Mortgage Notes Payable	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Mortgage Notes Payable	Note 4 — Mortgage Note Payable The following table reflects the Company's mortgage note payable as of March 31, 2017 and December 31, 2016 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties March 31, 2017 December 31, 2016 Interest Rate Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 4,972 $ 4,997 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (71 ) (78 ) Mortgage note payable, net of deferred financing costs $ 4,901 $ 4,919 As of March 31, 2017 , 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 March 31, 2017 and thereafter: (In thousands) Future Principal Payments April 1, 2017 — December 31, 2017 $ 75 2018 104 2019 4,793 2020 — 2021 — Thereafter — Total $ 4,972

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 5 — 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 March 31, March 31, December 31, December 31, Gross mortgage note payable and mortgage premium, net 3 $ 5,074 $ 5,070 $ 5,110 $ 5,085 _______________ (1) Carrying amount as of March 31, 2017 and December 31, 2016 includes gross mortgage note payable of $5.0 million and mortgage premium, net of $0.1 million . 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	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Common Stock	Note 6 — Common Stock The Company had 6.9 million and 7.0 million shares of common stock outstanding, including unvested restricted shares and shares issued pursuant to the DRIP, net of shares repurchased under the share repurchase program (as amended, the “SRP”), as of March 31, 2017 and December 31, 2016 , respectively. The Company had received total proceeds from the IPO and the DRIP, net of share repurchases, of $170.7 million and $171.5 million as of March 31, 2017 and December 31, 2016 , respectively. The Company has paid distributions on a monthly basis to stockholders of record equivalent to $1.56 per annum, per share of common stock, beginning on March 15, 2015. 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. 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. The shares purchased pursuant to the DRIP have the same rights and are treated in the same manner as the shares 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 to provide 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. Until the estimated per-share net asset value ("Estimated Per-Share NAV") pricing date (the "NAV Pricing Date"), the per share purchase price of shares issued pursuant to the DRIP has been and will continue to be $23.75 per share, which is equal to 95% of the offering price in the IPO. Beginning with the NAV Pricing Date, the per share price for shares pursuant to the DRIP will vary periodically and will be equal to the Company’s Estimated Per-Share NAV. The NAV Pricing Date means the date that the Company first publishes an Estimated Per-Share NAV, which will be on or prior to July 11, 2017. During the three months ended March 31, 2017 , the Company issued approximately 45,000 shares of common stock pursuant to the DRIP, generating aggregate proceeds of $1.1 million . On April 28, 2017, as a result of recent discussions pursuant to the Strategic Review, the Company temporarily suspended the DRIP for two monthly investment periods. Share Repurchase Program The Company's board of directors has adopted a 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 Estimated Per-Share 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 Estimated Per-Share 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 Estimated Per-Share 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 Estimated Per-Share NAV 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 "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 Estimated Per-Share NAV then in effect. On September 21, 2016, the board of directors of the Company further amended the Company’s SRP (the "Special 2016 SRP Amendment") to provide, solely for calendar year 2016, for one twelve-month repurchase period ending December 31, 2016. The annual limit on repurchases under the SRP remained unchanged and continued to be limited to a maximum of 5.0% of the Prior Year Outstanding Shares and was subject to the terms and limitations set forth in the SRP. Following calendar year 2016, the repurchase periods returned to two semi-annual periods and applicable limitations set forth in the SRP. The Special 2016 SRP Amendment became effective on September 22, 2016 and only applied to repurchase periods in calendar year 2016. If a stockholder requests a repurchase and the repurchase is approved by the Company's board of directors, the Company will reclassify such obligation from equity to a liability based on the 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 March 31, 2017 : Number of Shares Repurchased Weighted-Average Price per Share Cumulative repurchases as of December 31, 2016 1,021 $ 24.97 Three months ended March 31, 2017 (1) 83,604 22.77 Cumulative repurchases as of March 31, 2017 (1) 84,625 $ 22.80 _______________ (1) Excludes rejected repurchases of 0.2 million shares for $4.0 million at a weighted average price per share of $22.29 , which were unfulfilled as of March 31, 2017 . 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 upon 30 days’ prior written notice to our stockholders.

Related Party Transactions and

Related Party Transactions and Arrangements	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Note 7 — Related Party Transactions and Arrangements As of March 31, 2017 and December 31, 2016 , 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. As of March 31, 2017 and December 31, 2016 , the Advisor held 90 units of limited partner interests in the OP ("OP Units"). 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 the Company 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 Sponsor. In May 2016, RCAP and its affiliated debtors emerged from bankruptcy under the new name Aretec Group, Inc. On March 8, 2017, the creditor trust established in connection with the RCAP bankruptcy filed suit against AR Global, the Advisor, advisors of other entities sponsored by AR Global, and AR Global’s principals (including Mr. Weil, the executive chairman of the Company's board of directors). The suit alleges, among other things, certain breaches of duties to RCAP. The Company is not named in the suit, nor are there allegations related to the services the Advisor provides to the Company. The Advisor has informed the Company that it believes the suit is without merit and intends to defend against it vigorously. Fees Incurred in Connection with the IPO The Advisor, Sponsor and Former Dealer Manager and their affiliates received 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. No offering costs were incurred during the three months ended March 31, 2017 or 2016 . As of March 31, 2017 and December 31, 2016 , the Company had $0.2 million payable to the Former Dealer Manager and its affiliates for services relating to the IPO. Fees Incurred 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) for any new acquisitions 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 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 receives distributions on unvested Class B Units equal to the distribution received on the Company's common stock. Such distributions on Class B Units are included in general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) until the performance condition is considered probable to occur. During the three months ended March 31, 2017 , the Company's board of directors approved the issuance of 9,568 Class B Units to the Advisor in connection with this arrangement. As of March 31, 2017 , the Company's board of directors had approved the issuance of 55,490 Class B Units to the Advisor in connection with this arrangement. Unless the Company contracts with a third party, the Company pays 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 also reimburses the Property Manager for property level expenses. If the Company contracts directly with third parties for such services, the Company pays them customary market fees and pays the Property Manager an oversight fee of up to 1.0% of the gross revenues of the property managed. In no event is the Property Manager or any affiliates of the Property Manager entitled to an oversight fee if any third party receives market fees greater than the property management fee, as explained above. Further, in no event does 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 income (loss). 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 income (loss). The following table details amounts incurred, forgiven and payable or receivable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended March 31, 2017 2016 Payable (Receivable) as of (In thousands) Incurred Forgiven Incurred Forgiven March 31, December 31, Ongoing fees and reimbursements: Property management fees $ 13 $ — $ 40 $ — $ (144 ) $ (129 ) Professional fees and reimbursements 55 — 67 — 49 29 Distributions on Class B Units 19 — 4 — 1 2 Total related party operating fees and reimbursements $ 87 $ — $ 111 $ — $ (94 ) $ (98 ) 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. No reimbursement was incurred from the Advisor for providing such services during the three months ended March 31, 2017 or 2016 . In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to forgive and absorb certain fees. Because the Advisor may forgive or absorb 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 are forgiven are not deferrals, and accordingly, will not be paid to the Advisor in the future. In certain instances, to improve the Company's working capital, the Advisor may elect to absorb a portion of the Company's property operating and general and administrative costs, which the Company will not repay. No such fees or expenses were forgiven or absorbed by the Advisor during the three months ended March 31, 2017 or 2016 . The predecessor to AR Global was party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory. The Company was also party to a transfer agency agreement with ANST, a subsidiary of RCAP, 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 Incurred 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 months ended March 31, 2017 or 2016 . 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 months ended March 31, 2017 or 2016 . 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 months ended March 31, 2017 or 2016 . 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 or paid during the three months ended March 31, 2017 or 2016 . 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	3 Months Ended
	Mar. 31, 2017
Economic Dependency [Abstract]
Economic Dependency	Note 8 — 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, as well as other administrative responsibilities for the Company including accounting and legal services, human resources and information technology. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that 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	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity-Based Compensation	Note 9 — Share-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 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 Shares of Common Stock Weighted-Average Issue Price Unvested, December 31, 2016 6,398 $ 22.50 Granted — — Vested — — Forfeitures — — Unvested, March 31, 2017 6,398 $ 22.50 As of March 31, 2017 , 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 3.4 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 $9,000 and $6,000 for the three months ended March 31, 2017 and 2016 , respectively. Compensation expense related to restricted shares is recorded as general and administrative expense in the accompanying consolidated statements of operations and comprehensive income (loss).

Non-Controlling Interests

Non-Controlling Interests	3 Months Ended
	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Non-Controlling Interests	Note 10 — Non-controlling Interests The Company is the sole general partner and holds substantially all of the OP Units. As of March 31, 2017 and December 31, 2016 , the Advisor held 90 OP Units, which represents a nominal percentage of the aggregate OP ownership. After holding the OP Units for a period of one year, or such lesser time as determined by the Company in its sole and absolute discretion, a holder of OP Units 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 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 months ended March 31, 2017 or 2016 . 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 investor's ownership interest in the properties. The following table summarizes the activity related to investment arrangements with the unaffiliated third party. As of March 31, 2017 As of December 31, 2016 Distributions (1) for the Three Months Ended March 31, Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of March 31, 2017 Non-Controlling Ownership Percentage as of March 31, 2017 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 2017 2016 UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 285 5 % $ 5,732 $ — $ 5,790 $ — $ — — UnityPoint Clinic - Moline, IL Dec. 2015 182 5 % 3,652 — 3,691 — — — _______________ (1) Represents distributions to unaffiliated third party investors of net cash flows from operations of the properties subject to the investment arrangements. No distributions were paid during the three months ended March 31, 2017 or 2016 .

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 11 — Net Income (Loss) Per Share The following is a summary of the basic and diluted net income (loss) per share computation for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In thousands, except share and per share amounts) 2017 2016 Computation of Basic Net Income (Loss) Per Share: Net income (loss) attributable to stockholders $ 162 $ (85 ) Basic weighted-average shares outstanding 6,946,587 6,805,706 Basic net income (loss) per share $ 0.02 $ (0.01 ) Computation of Diluted Net Income (Loss) Per Share: Net income (loss) attributable to stockholders $ 162 $ (85 ) Adjustments to net income (loss) for common share equivalents (96 ) — Diluted net income (loss) $ 66 $ (85 ) Basic weighted-average shares outstanding 6,946,587 6,805,706 Shares of unvested restricted shares (1) 6,398 — OP Units (2) 90 — Diluted weighted-average shares outstanding 6,953,075 6,805,706 Diluted net income (loss) per share $ 0.01 $ (0.01 ) _______________ (1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 6,398 shares of unvested restricted stock outstanding as of March 31, 2017 . (2) Weighted-average number of OP Units outstanding for the periods presented. There were 90 OP Units outstanding as of March 31, 2017 . Diluted net income per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock, OP Units and Class B Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented: Three Months Ended March 31, 2017 2016 Unvested restricted shares (1) — 4,799 OP Units (2) — 90 Class B Units (3) 49,005 10,548 Total weighted average antidilutive common stock equivalents 49,005 15,437 _______________ (1) Weighted average number of antidilutive shares of unvested restricted stock outstanding for the periods presented. There were 6,398 and 4,799 shares of unvested restricted stock outstanding as of March 31, 2017 and 2016 , respectively. (2) Weighted average number of antidilutive OP Units outstanding for the periods presented. There were 90 OP Units outstanding as of March 31, 2017 and 2016 . (3) Weighted average number of antidilutive Class B Units outstanding for the periods presented. There were 55,490 and 17,589 Class B Units outstanding as of March 31, 2017 and 2016 , respectively.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment Reporting	Note 12 — Segment Reporting During the three months ended March 31, 2017 and 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. 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 seniors housing — operating property ("SHOP") segment consists of direct investments in seniors housing communities, primarily providing assisted living, independent living and memory care services, which are operated 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 expense. NOI excludes all other items of expense and income included in the financial statements in calculating net income (loss). 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 reflects 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 months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,172 $ 104 $ — $ 2,276 Operating expense reimbursements 790 — — 790 Resident services and fee income — — 742 742 Total revenues 2,962 104 742 3,808 Property operating and maintenance 950 130 483 1,563 NOI $ 2,012 $ (26 ) $ 259 2,245 Operating fees to related party (13 ) Acquisition and transaction related (46 ) General and administrative (604 ) Depreciation and amortization (1,316 ) Interest expense (46 ) Income tax expense (55 ) Net income attributable to non-controlling interests (3 ) Net income (loss) attributable to stockholders $ 162 Three Months Ended March 31, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,164 $ 104 $ — $ 2,268 Operating expense reimbursements 626 — — 626 Resident services and fee income — — 698 698 Total revenues 2,790 104 698 3,592 Property operating and maintenance 788 — 469 1,257 NOI $ 2,002 $ 104 $ 229 2,335 Operating fees to related party (40 ) Acquisition and transaction related (30 ) General and administrative (676 ) Depreciation and amortization (1,577 ) Interest expense (48 ) Income tax expense (45 ) Net income attributable to non-controlling interests (4 ) Net income (loss) attributable to stockholders $ (85 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: March 31, December 31, (In thousands) 2017 2016 ASSETS Investments in real estate, net: Medical office buildings $ 105,689 $ 106,968 Triple-net leased healthcare facilities 4,513 4,554 Seniors housing — operating properties 10,137 10,213 Total investments in real estate, net 120,339 121,735 Cash 14,869 16,371 Restricted cash 62 37 Straight-line rent receivable 658 662 Prepaid expenses and other assets 1,018 1,242 Deferred costs, net 9 9 Total assets $ 136,955 $ 140,056 The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented: Three Months Ended March 31, (In thousands) 2017 2016 Medical office buildings $ — $ — Triple-net leased healthcare facilities — — Seniors housing — operating properties 7 61 Total capital expenditures $ 7 $ 61

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13 — 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 April 1, 2017 — December 31, 2017 $ 78 2018 105 2019 106 2020 109 2021 116 Thereafter 3,325 Total $ 3,839 Total rental expense from the Company's operating leases was approximately $27,000 and $34,000 during the three months ended March 31, 2017 and 2016 , respectively. 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	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 14 — 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, except for the following disclosures: On April 28, 2017, in connection with discussions pursuant to the Strategic Review, the Company temporarily suspended the DRIP for two monthly investment periods.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued revised guidance relating to revenue recognition. Under the revised guidance, an entity is required to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The revised guidance was to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption was not permitted under GAAP. 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 is evaluating the impact of this guidance, including performing a preliminary review of all revenue streams to identify any differences in the timing, measurement or presentation of revenue recognition. The Company is continuing to evaluate the allowable methods of adoption. 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 which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company has begun developing an inventory of all leases as well as identifying any non-lease components in our lease arrangements. The Company is continuing to evaluate 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 August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In February 2017, the FASB issued guidance on other income, specifically gains and losses from the derecognition of nonfinancial assets. The guidance clarifies the definition of ‘in substance non-financial assets’, unifies guidance related to partial sales of non-financial assets, eliminates rules specifically addressing the sales of real estate, removes exception to the financial asset derecognition model and clarifies the accounting for contributions of non-financial assets to joint ventures. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of this new guidance. Recently Adopted Accounting Pronouncements In October 2016, the FASB issued guidance where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. 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, 2017 and determined that there is no impact to the Company's consolidated financial position, results of operations and cash flows. In January 2017, the FASB issued guidance that revises the definition of a business. This new guidance is applicable when evaluating whether an acquisition should be treated as either a business acquisition or an asset acquisition. Under the revised guidance, when, among other things, substantially all of the fair value of gross assets acquired is concentrated in a single asset or group of similar assets, the assets acquired would not be considered a business. The revised guidance is effective for reporting periods beginning after December 15, 2017, and the amendments will be applied prospectively. Early application is permitted only for transactions that have not previously been reported in issued financial statements. The Company has assessed this revised guidance and expects, based on historical acquisitions, that, in most cases, a future property acquisition would be treated as an asset acquisition rather than a business acquisition, which would result in the capitalization of related transaction costs. The Company has adopted the provisions of this guidance beginning January 1, 2017.

Real Estate Investments (Tables

Real Estate Investments (Tables)	3 Months Ended
	Mar. 31, 2017
Real Estate Investments, Net [Abstract]
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 March 31, 2017 . 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 April 1, 2017 — December 31, 2017 $ 6,716 2018 8,750 2019 8,300 2020 7,827 2021 6,431 Thereafter 18,846 Total $ 56,870
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	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 March 31, 2017 and 2016 : March 31, State 2017 2016 Illinois 42.3% 49.9% Georgia 11.8% 10.3%
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	Acquired intangible assets and liabilities consisted of the following as of the periods presented: March 31, 2017 December 31, 2016 (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 $ 4,660 $ 11,363 $ 16,023 $ 4,058 $ 11,965 Above-market lease assets 2,427 523 1,904 2,427 434 1,993 Total acquired intangible assets $ 18,450 $ 5,183 $ 13,267 $ 18,450 $ 4,492 $ 13,958 Intangible liabilities: Above-market ground lease liabilities $ 179 $ 26 $ 153 $ 180 $ 22 $ 158 Below-market lease liabilities 1,722 211 1,511 1,722 179 1,543 Total acquired intangible liabilities $ 1,901 $ 237 $ 1,664 $ 1,902 $ 201 $ 1,701
Schedule of Finite-Lived Intangible Assets	The following table discloses amounts recognized within the consolidated statements of operations and comprehensive income (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 March 31, (In thousands) 2017 2016 Amortization of in-place leases (1) $ 601 $ 869 Amortization (accretion) of above- and below-market leases, net (2) $ 55 $ 55 Accretion of above-market ground leases (3) $ (4 ) $ (4 ) _______________ (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) April 1, 2017 — December 31, 2017 2018 2019 2020 2021 In-place lease assets $ 1,760 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Total to be added to amortization expense $ 1,760 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Above-market lease assets $ 262 $ 318 $ 309 $ 301 $ 224 Below-market lease liabilities (99 ) (132 ) (131 ) (127 ) (120 ) Total to be deducted from rental income $ 163 $ 186 $ 178 $ 174 $ 104 Above-market ground lease liabilities $ 12 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 12 $ 16 $ 16 $ 16 $ 16

Mortgage Notes Payable (Tables)

Mortgage Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The following table reflects the Company's mortgage note payable as of March 31, 2017 and December 31, 2016 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties March 31, 2017 December 31, 2016 Interest Rate Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 4,972 $ 4,997 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (71 ) (78 ) Mortgage note payable, net of deferred financing costs $ 4,901 $ 4,919
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 March 31, 2017 and thereafter: (In thousands) Future Principal Payments April 1, 2017 — December 31, 2017 $ 75 2018 104 2019 4,793 2020 — 2021 — Thereafter — Total $ 4,972

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, March 31, December 31, December 31, Gross mortgage note payable and mortgage premium, net 3 $ 5,074 $ 5,070 $ 5,110 $ 5,085 _______________ (1) Carrying amount as of March 31, 2017 and December 31, 2016 includes gross mortgage note payable of $5.0 million and mortgage premium, net of $0.1 million .

Common Stock Common Stock (Tabl

Common Stock Common Stock (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Class of Treasury Stock	The following table reflects the number of shares repurchased cumulatively through March 31, 2017 : Number of Shares Repurchased Weighted-Average Price per Share Cumulative repurchases as of December 31, 2016 1,021 $ 24.97 Three months ended March 31, 2017 (1) 83,604 22.77 Cumulative repurchases as of March 31, 2017 (1) 84,625 $ 22.80 _______________ (1) Excludes rejected repurchases of 0.2 million shares for $4.0 million at a weighted average price per share of $22.29 , which were unfulfilled as of March 31, 2017 .

Related Party Transactions an26

Related Party Transactions and Arrangements (Tables)	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services	The following table details amounts incurred, forgiven and payable or receivable in connection with the Company's operations-related services described above as of and for the periods presented: Three Months Ended March 31, 2017 2016 Payable (Receivable) as of (In thousands) Incurred Forgiven Incurred Forgiven March 31, December 31, Ongoing fees and reimbursements: Property management fees $ 13 $ — $ 40 $ — $ (144 ) $ (129 ) Professional fees and reimbursements 55 — 67 — 49 29 Distributions on Class B Units 19 — 4 — 1 2 Total related party operating fees and reimbursements $ 87 $ — $ 111 $ — $ (94 ) $ (98 )

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
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 Shares of Common Stock Weighted-Average Issue Price Unvested, December 31, 2016 6,398 $ 22.50 Granted — — Vested — — Forfeitures — — Unvested, March 31, 2017 6,398 $ 22.50

Non-Controlling Interests (Tabl

Non-Controlling Interests (Tables)	3 Months Ended
	Mar. 31, 2017
Noncontrolling Interest [Abstract]
Non-Controlling Interests	The following table summarizes the activity related to investment arrangements with the unaffiliated third party. As of March 31, 2017 As of December 31, 2016 Distributions (1) for the Three Months Ended March 31, Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of March 31, 2017 Non-Controlling Ownership Percentage as of March 31, 2017 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 2017 2016 UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 285 5 % $ 5,732 $ — $ 5,790 $ — $ — — UnityPoint Clinic - Moline, IL Dec. 2015 182 5 % 3,652 — 3,691 — — — _______________ (1) Represents distributions to unaffiliated third party investors of net cash flows from operations of the properties subject to the investment arrangements. No distributions were paid during the three months ended March 31, 2017 or 2016 .

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a summary of the basic and diluted net income (loss) per share computation for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, (In thousands, except share and per share amounts) 2017 2016 Computation of Basic Net Income (Loss) Per Share: Net income (loss) attributable to stockholders $ 162 $ (85 ) Basic weighted-average shares outstanding 6,946,587 6,805,706 Basic net income (loss) per share $ 0.02 $ (0.01 ) Computation of Diluted Net Income (Loss) Per Share: Net income (loss) attributable to stockholders $ 162 $ (85 ) Adjustments to net income (loss) for common share equivalents (96 ) — Diluted net income (loss) $ 66 $ (85 ) Basic weighted-average shares outstanding 6,946,587 6,805,706 Shares of unvested restricted shares (1) 6,398 — OP Units (2) 90 — Diluted weighted-average shares outstanding 6,953,075 6,805,706 Diluted net income (loss) per share $ 0.01 $ (0.01 ) _______________ (1) Weighted-average number of shares of unvested restricted stock outstanding for the periods presented. There were 6,398 shares of unvested restricted stock outstanding as of March 31, 2017 . (2) Weighted-average number of OP Units outstanding for the periods presented. There were 90 OP Units outstanding as of March 31, 2017 .
Schedule of Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share	Diluted net income per share assumes the conversion of all common stock equivalents into an equivalent number of common shares, unless the effect is antidilutive. The Company considers unvested restricted stock, OP Units and Class B Units to be common share equivalents. The Company had the following common share equivalents on a weighted-average basis that were excluded from the calculation of diluted net loss per share as their effect would have been antidilutive for the periods presented: Three Months Ended March 31, 2017 2016 Unvested restricted shares (1) — 4,799 OP Units (2) — 90 Class B Units (3) 49,005 10,548 Total weighted average antidilutive common stock equivalents 49,005 15,437 _______________ (1) Weighted average number of antidilutive shares of unvested restricted stock outstanding for the periods presented. There were 6,398 and 4,799 shares of unvested restricted stock outstanding as of March 31, 2017 and 2016 , respectively. (2) Weighted average number of antidilutive OP Units outstanding for the periods presented. There were 90 OP Units outstanding as of March 31, 2017 and 2016 . (3) Weighted average number of antidilutive Class B Units outstanding for the periods presented. There were 55,490 and 17,589 Class B Units outstanding as of March 31, 2017 and 2016 , respectively.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables reconcile the segment activity to consolidated net loss for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,172 $ 104 $ — $ 2,276 Operating expense reimbursements 790 — — 790 Resident services and fee income — — 742 742 Total revenues 2,962 104 742 3,808 Property operating and maintenance 950 130 483 1,563 NOI $ 2,012 $ (26 ) $ 259 2,245 Operating fees to related party (13 ) Acquisition and transaction related (46 ) General and administrative (604 ) Depreciation and amortization (1,316 ) Interest expense (46 ) Income tax expense (55 ) Net income attributable to non-controlling interests (3 ) Net income (loss) attributable to stockholders $ 162 Three Months Ended March 31, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,164 $ 104 $ — $ 2,268 Operating expense reimbursements 626 — — 626 Resident services and fee income — — 698 698 Total revenues 2,790 104 698 3,592 Property operating and maintenance 788 — 469 1,257 NOI $ 2,002 $ 104 $ 229 2,335 Operating fees to related party (40 ) Acquisition and transaction related (30 ) General and administrative (676 ) Depreciation and amortization (1,577 ) Interest expense (48 ) Income tax expense (45 ) Net income attributable to non-controlling interests (4 ) Net income (loss) attributable to stockholders $ (85 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: March 31, December 31, (In thousands) 2017 2016 ASSETS Investments in real estate, net: Medical office buildings $ 105,689 $ 106,968 Triple-net leased healthcare facilities 4,513 4,554 Seniors housing — operating properties 10,137 10,213 Total investments in real estate, net 120,339 121,735 Cash 14,869 16,371 Restricted cash 62 37 Straight-line rent receivable 658 662 Prepaid expenses and other assets 1,018 1,242 Deferred costs, net 9 9 Total assets $ 136,955 $ 140,056 The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented: Three Months Ended March 31, (In thousands) 2017 2016 Medical office buildings $ — $ — Triple-net leased healthcare facilities — — Seniors housing — operating properties 7 61 Total capital expenditures $ 7 $ 61

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
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 April 1, 2017 — December 31, 2017 $ 78 2018 105 2019 106 2020 109 2021 116 Thereafter 3,325 Total $ 3,839

Organization (Narrative) (Detai

Organization (Narrative) (Details) $ / shares in Units, ft² in Millions	3 Months Ended	8 Months Ended	20 Months Ended
	Mar. 31, 2017ft²propertystate$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)	Jan. 25, 2016shares	Aug. 20, 2014USD ($)$ / sharesshares
Operations [Line Items]
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, par value (in usd per share) | $ / shares	$ 0.01	$ 0.01			$ 0.01
Common stock, shares outstanding (in shares)	6,939,976	6,978,303
Proceeds from issuance of common stock | $		$ 170,700,000	$ 171,500,000
Number of properties purchased | property	19
Number of states Company operates in | state	10
Area of real estate property | ft²	0.5
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)	6,939,975	6,978,303
IPO
Operations [Line Items]
Common stock, shares authorized (in shares)					125,000,000
Stock available for issuance in public offering | $					$ 3,125,000,000

Real Estate Investments (Future

Real Estate Investments (Future Minimum Payments) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Real Estate Investments, Net [Abstract]
April 1, 2017 — December 31, 2017	$ 6,716
2,018	8,750
2,019	8,300
2,020	7,827
2,021	6,431
Thereafter	18,846
Total	$ 56,870

Real Estate Investments (Geogra

Real Estate Investments (Geographic Concentrations) (Details) - Geographic Concentration Risk - Sales Revenue, Net	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Illinois
Concentration Risk [Line Items]
Concentration risk, percentage	42.30%	49.90%
Georgia
Concentration Risk [Line Items]
Concentration risk, percentage	11.80%	10.30%

Real Estate Investments (Schedu

Real Estate Investments (Schedule of Acquired Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Intangible assets:
Finite-lived intangible assets, gross	$ 18,450	$ 18,450
Finite-lived intangible assets, accumulated amortization	5,183	4,492
Finite-lived intangible assets, net	13,267	13,958
Intangible market lease liabilities
Below market lease, gross	1,722	1,722
Below market lease, accumulated amortization	211	179
Below market lease, net	1,511	1,543
Intangible liabilities, gross	1,901	1,902
Intangible liabilities, accumulated amortization	237	201
Intangible liabilities, net	1,664	1,701
In-place leases
Intangible assets:
Finite-lived intangible assets, gross	16,023	16,023
Finite-lived intangible assets, accumulated amortization	4,660	4,058
Finite-lived intangible assets, net	11,363	11,965
Above-market lease assets
Intangible assets:
Finite-lived intangible assets, gross	2,427	2,427
Finite-lived intangible assets, accumulated amortization	523	434
Finite-lived intangible assets, net	1,904	1,993
Above-market ground lease liabilities
Intangible market lease liabilities
Intangible liabilities, gross	179	180
Intangible liabilities, accumulated amortization	26	22
Intangible liabilities, net	$ 153	$ 158

Real Estate Investments (Summar

Real Estate Investments (Summary of Amortization and Accretion Recognized) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles	$ 51	$ 51
In-place leases | Depreciation and Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles	601	869
Above- and below-market leases | Rental Income
Finite-Lived Intangible Assets [Line Items]
Amortization (accretion) of above- and below-market leases, net	55	55
Above-market ground leases | Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles	$ (4)	$ (4)

Real Estate Investments (Summ37

Real Estate Investments (Summary of Intangible Assets and Liabilities Future Amortization Expense) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense April 1, 2017 - December 31, 2017	$ 1,760
Finite-lived lease amortization expense 2018	2,197
Finite-lived lease amortization expense 2019	2,022
Finite-lived lease amortization expense 2020	1,794
Finite-lived lease amortization expense 2021	1,285
Amortization Expense | In-place lease assets
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense April 1, 2017 - December 31, 2017	1,760
Finite-lived lease amortization expense 2018	2,197
Finite-lived lease amortization expense 2019	2,022
Finite-lived lease amortization expense 2020	1,794
Finite-lived lease amortization expense 2021	1,285
Rental Income
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense April 1, 2017 - December 31, 2017	163
Finite-lived lease amortization expense 2018	186
Finite-lived lease amortization expense 2019	178
Finite-lived lease amortization expense 2020	174
Finite-lived lease amortization expense 2021	104
Rental Income | Above-market lease assets
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense April 1, 2017 - December 31, 2017	262
Finite-lived lease amortization expense 2018	318
Finite-lived lease amortization expense 2019	309
Finite-lived lease amortization expense 2020	301
Finite-lived lease amortization expense 2021	224
Rental Income | Below-market lease liabilities
Finite-Lived Intangible Assets [Line Items]
Below market lease income, amortization April 1, 2017 - December 31, 2017	(99)
Below market lease income, amortization 2018	(132)
Below market lease income, amortization 2019	(131)
Below market lease income, amortization 2020	(127)
Below market lease income, amortization 2021	(120)
Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense April 1, 2017 - December 31, 2017	12
Finite-lived lease amortization expense 2018	16
Finite-lived lease amortization expense 2019	16
Finite-lived lease amortization expense 2020	16
Finite-lived lease amortization expense 2021	16
Property Operating and Maintenance Expense | Above-market ground lease liabilities
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease liability, lease income, amortization April 1, 2017 - December 31, 2017	12
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
Finite-lived lease liability, lease income, amortization 2021	$ 16

Mortgage Notes Payable (Mortgag

Mortgage Notes Payable (Mortgage Notes) (Details) $ in Thousands	Mar. 31, 2017USD ($)property	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Real estate investments relating to notes payable	$ 9,000
Mortgages
Debt Instrument [Line Items]
Outstanding loan amount	4,972
Deferred financing costs, net of accumulated amortization	(71)	$ (78)
Mortgage note payable, net of deferred financing costs	$ 4,901	4,919
Philip Professional Center - Lawrenceville, GA | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property	2
Outstanding loan amount	$ 4,972	$ 4,997
Effective Interest Rate	4.00%

Mortgage Notes Payable (Mortg39

Mortgage Notes Payable (Mortgage Principal Payments) (Details) - Mortgages $ in Thousands	Mar. 31, 2017USD ($)
Debt Instrument [Line Items]
April 1, 2017 — December 31, 2017	$ 75
2,018	104
2,019	4,793
2,020	0
2,021	0
Thereafter	0
Total Debt	$ 4,972

Fair Value of Financial Instr40

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage premium, net	$ 102	$ 113
Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, gross	4,972
Significant Unobservable Inputs Level 3 | Mortgages | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross mortgage note payable and mortgage premium, net	5,074	5,110
Significant Unobservable Inputs Level 3 | Mortgages | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gross mortgage note payable and mortgage premium, net	5,070	5,085
Philip Professional Center - Lawrenceville, GA | Mortgages
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, gross	$ 4,972	$ 4,997

Common Stock (Narrative) (Detai

Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Jun. 29, 2016	Jan. 25, 2016
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)		6,939,976		6,978,303
Proceeds from issuance of common stock				$ 170,700	$ 171,500
Distributions declared per share (in usd per share)	$ 1.5624999935	$ 0.39	$ 0.39
Common stock issued through distribution reinvestment plan (in shares)		45,277
Common stock issued through distribution reinvestment plan		$ 1,075	$ 837
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%
One Year
Class of Stock [Line Items]
Share repurchase price (in dollars per share)		$ 23.13
Repurchase price as a percent of share price		92.50%
Two Years
Class of Stock [Line Items]
Share repurchase price (in dollars per share)		$ 23.75
Repurchase price as a percent of share price		95.00%
Three Years
Class of Stock [Line Items]
Repurchase price as a percent of share price		97.50%
Four Years
Class of Stock [Line Items]
Repurchase price as a percent of share price		100.00%
Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)		6,939,975		6,978,303
DRIP share price (in usd per share)		$ 23.75
DRIP Share price as percent of estimated value of common stock		95.00%

Common Stock (Cumulative Share

Common Stock (Cumulative Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	39 Months Ended	54 Months Ended
	Mar. 31, 2017	Dec. 31, 2015	Mar. 31, 2017
Equity [Abstract]
Number of shares repurchased (in shares)	83,604	1,021	84,625
Weighted-average price per share (in usd per share)	$ 22.77	$ 24.97	$ 22.80
Share repurchases rejected (in shares)	200,000
Share repurchases rejected	$ 4
Share repurchases rejected share price (in usd per share)	$ 22.29

Related Party Transactions an43

Related Party Transactions and Arrangements (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Related Party Transaction [Line Items]
Common stock, shares outstanding (in shares)	6,939,976	6,978,303
Due to affiliate	$ 278	$ 259
Special Limited Partner | American Realty Capital Healthcare III Special Limited Partnership, LLC
Related Party Transaction [Line Items]
Common stock, shares outstanding (in shares)	8,888	8,888
Advisor | American Realty Capital Healthcare III Advisors, LLC
Related Party Transaction [Line Items]
Units outstanding (in units)	90	90	90

Related Party Transactions an44

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to affiliate	$ 278	$ 259
Fees and Expense Reimbursement, Stock Offering | Realty Capital Securities, LLC | Former Dealer Manager
Related Party Transaction [Line Items]
Due to affiliate	$ 200	$ 200

Related Party Transactions an45

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - $ / shares	3 Months Ended	8 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Share price, net (in dollars per share)	$ 22.50
Advisor
Related Party Transaction [Line Items]
Shares approved for issuance (in shares)	9,568	55,490
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%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	4.50%
Quarterly asset management fee earned	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%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	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%
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%
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%
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%
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%
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%
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%
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%
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%

Related Party Transactions an46

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
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Total related party operating fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	$ 87	$ 111
Expenses forgiven	0	0
Payable (Receivable)	(94)		$ (98)
Property management fees
Related Party Transaction [Line Items]
Expenses incurred	13	40
Expenses forgiven	0	0
Payable (Receivable)	(144)		(129)
Professional fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	55	67
Expenses forgiven	0	0
Payable (Receivable)	49		29
Distributions on Class B Units
Related Party Transaction [Line Items]
Expenses incurred	19	4
Expenses forgiven	0	$ 0
Payable (Receivable)	$ 1		$ 2

Related Party Transactions an47

Related Party Transactions and Arrangements (Fees Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets) (Details)	Mar. 31, 2017
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 | 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%
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%
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
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 9	$ 6
Restricted Share Plan | Unvested restricted shares (1)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors (in shares)	1,333
Vesting period	5 years
Periodic vesting percentage	20.00%
Maximum authorized amount as a percentage of shares authorized	5.00%
Number of shares authorized (in shares)	6,300,000
Unrecognized compensation costs	$ 100
Weighted average period of recognition	3 years 4 months 24 days
Share-based compensation	$ 9	$ 6

Equity-Based Compensation (Acti

Equity-Based Compensation (Activity) (Details) - Restricted Share Plan - Unvested restricted shares (1)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of Shares of Common Stock
Granted (in shares) | shares	0
Vested (in shares) | shares	0
Forfeitures (in shares) | shares	0
Ending Balance (in shares) | shares	6,398
Weighted-Average Issue Price
Granted, Weighted-Average Issue Price (usd per share) | $ / shares	$ 0
Vested, Weighted-Average Issue Price (usd per share) | $ / shares	0
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	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016
Advisor | American Realty Capital Healthcare III Advisors, LLC
Noncontrolling Interest [Line Items]
Units outstanding (in units)	90	90	90

Non-Controlling Interests (Inve

Non-Controlling Interests (Investment Agreements with Third Parties) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 467		$ 464
Net Real Estate Assets Subject to Investment Arrangement	120,339		121,735
Mortgage Notes Payable Subject to Investment Arrangement	4,901		4,919
UnityPoint Clinic - Muscatine
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 285
Noncontrolling ownership percentage	5.00%
Distributions	$ 0	$ 0
UnityPoint Clinic - Muscatine | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	5,732		5,790
Mortgage Notes Payable Subject to Investment Arrangement	0		0
UnityPoint Clinic - Moline
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 182
Noncontrolling ownership percentage	5.00%
Distributions	$ 0	$ 0
UnityPoint Clinic - Moline | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	3,652		3,691
Mortgage Notes Payable Subject to Investment Arrangement	$ 0		$ 0

Net Income (Loss) Per Share (Ca

Net Income (Loss) Per Share (Calculation of EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Computation of Basic Net Income (Loss) Per Share:
Net income (loss) attributable to stockholders	$ 162	$ (85)
Basic weighted-average shares outstanding (in shares)	6,946,587	6,805,706
Basic net income (loss) per share (in usd per share)	$ 0.02	$ (0.01)
Computation of Diluted Net Income (Loss) Per Share:
Adjustments to net income (loss) for common share equivalents	$ (96)	$ 0
Diluted net income (loss)	$ 66	$ (85)
Shares of unvested restricted shares (in shares)	6,398	0
OP Units (in shares)	90	0
Diluted weighted-average shares outstanding (in shares)	6,953,075	6,805,706
Diluted net income (loss) per share (in usd per share)	$ 0.01	$ (0.01)
Unvested restricted shares (1) | Restricted Share Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested shares outstanding (in shares)	6,398	4,799
American Realty Capital Healthcare III Advisors, LLC | Advisor
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Units outstanding (in units)	90	90	90

Net Income (Loss) Per Share (An

Net Income (Loss) Per Share (Antidilutive Securities) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	49,005	15,437
Class B units outstanding (in shares)	55,490	17,589
Unvested restricted shares (1)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	4,799
OP Units (2)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	90
Class B Units (3)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	49,005	10,548
American Realty Capital Healthcare III Advisors, LLC | Advisor
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Units outstanding (in units)	90	90	90
Unvested restricted shares (1) | Restricted Share Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested shares outstanding (in shares)	6,398	4,799

Segment Reporting (Reconciliati

Segment Reporting (Reconciliation of Segment Activity) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)segment
Segment Reporting [Abstract]
Number of reportable segments | segment	3	3
Revenues:
Rental income	$ 2,276	$ 2,268
Operating expense reimbursements	790	626
Resident services and fee income	742	698
Total revenues	3,808	3,592
Property operating and maintenance	1,563	1,257
NOI	2,245	2,335
Operating fees to related party	(13)	(40)
Acquisition and transaction related	(46)	(30)
General and administrative	(604)	(676)
Depreciation and amortization	(1,316)	(1,577)
Interest expense	(46)	(48)
Income tax expense	(55)	(45)
Net income attributable to non-controlling interests	(3)	(4)
Net income (loss) attributable to stockholders	162	(85)
Medical Office Buildings
Revenues:
Rental income	2,172	2,164
Operating expense reimbursements	790	626
Resident services and fee income	0	0
Total revenues	2,962	2,790
Property operating and maintenance	950	788
NOI	2,012	2,002
Triple-Net Leased Healthcare Facilities
Revenues:
Rental income	104	104
Operating expense reimbursements	0	0
Resident services and fee income	0	0
Total revenues	104	104
Property operating and maintenance	130	0
NOI	(26)	104
Seniors Housing Communities
Revenues:
Rental income	0	0
Operating expense reimbursements	0	0
Resident services and fee income	742	698
Total revenues	742	698
Property operating and maintenance	483	469
NOI	$ 259	$ 229

Segment Reporting (Reconcilia55

Segment Reporting (Reconciliation of Segment Activity to Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 120,339	$ 121,735
Cash	14,869	16,371	$ 16,681	$ 16,808
Restricted cash	62	37
Straight-line rent receivable	658	662
Prepaid expenses and other assets (including $144 and $129 due from related parties as of March 31, 2017 and December 31, 2016, respectively)	1,018	1,242
Deferred costs, net	9	9
Total assets	136,955	140,056
Medical Office Buildings
Segment Reporting Information [Line Items]
Investments in real estate, net	105,689	106,968
Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Investments in real estate, net	4,513	4,554
Seniors Housing Communities
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 10,137	$ 10,213

Segment Reporting (Summary of C

Segment Reporting (Summary of Capital Expenditures) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Total capital expenditures	$ 7	$ 61
Medical Office Buildings
Segment Reporting Information [Line Items]
Total capital expenditures	0	0
Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Total capital expenditures	0	0
Seniors Housing Communities
Segment Reporting Information [Line Items]
Total capital expenditures	$ 7	$ 61

Commitments and Contingencies57

Commitments and Contingencies (Summary of Operating Lease Agreements) (Details) $ in Thousands	Mar. 31, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
April 1, 2017 — December 31, 2017	$ 78
2,018	105
2,019	106
2,020	109
2,021	116
Thereafter	3,325
Total	$ 3,839

Commitments and Contingencies58

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 27	$ 34