American Realty Capital Healthcare Trust Iii 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		6,956,304

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Real estate investments, at cost:
Land	$ 10,225	$ 10,225
Buildings, fixtures and improvements	101,211	101,197
Acquired intangible lease assets	18,450	18,450
Total real estate investments, at cost	129,886	129,872
Less: accumulated depreciation and amortization	(10,939)	(8,137)
Total real estate investments, net	118,947	121,735
Cash	13,667	16,371
Restricted cash	88	37
Straight-line rent receivable	739	662
Prepaid expenses and other assets (including $129 due from related parties as of June 30, 2017 and December 31, 2016)	734	1,242
Deferred costs, net	8	9
Total assets	134,183	140,056
LIABILITIES AND EQUITY
Mortgage note payable, net of deferred financing costs	4,884	4,919
Mortgage premium, net	92	113
Market lease intangible liabilities, net	1,627	1,701
Accounts payable and accrued expenses (including $544 and $271 due to related parties as of June 30, 2017 and December 31, 2016, respectively)	2,737	1,904
Deferred rent	538	472
Distributions payable	895	925
Total liabilities	10,773	10,034
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued and outstanding as of June 30, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized, 6,956,304 and 6,978,303 shares of common stock issued and outstanding as of June 30, 2017 and December 31, 2016, respectively	70	70
Additional paid-in capital	149,684	150,109
Accumulated deficit	(26,800)	(20,621)
Total stockholders' equity	122,954	129,558
Non-controlling interests	456	464
Total equity	123,410	130,022
Total liabilities and equity	$ 134,183	$ 140,056

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Due from affiliates	$ 129	$ 129
Due to affiliates	$ 556	$ 271
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)	6,956,304	6,978,303
Common stock, shares outstanding (in shares)	6,956,304	6,978,303

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Rental income	$ 2,276	$ 2,277	$ 4,553	$ 4,545
Operating expense reimbursements	508	625	1,299	1,251
Resident services and fee income	669	709	1,411	1,407
Total revenues	3,453	3,611	7,263	7,203
Expenses:
Property operating and maintenance	1,207	1,284	2,770	2,541
Operating fees to related party	14	39	27	79
Acquisition and transaction related	1,113	103	1,159	133
General and administrative	743	545	1,347	1,221
Depreciation and amortization	1,318	1,581	2,635	3,158
Total expenses	4,395	3,552	7,938	7,132
Operating income (loss)	(942)	59	(675)	71
Other income (expense):
Interest expense	(46)	(47)	(93)	(95)
Interest and other income	0	1	0	1
Total other expense	(46)	(46)	(93)	(94)
Income (loss) before income taxes	(988)	13	(768)	(23)
Income tax benefit/(expense)	29	(28)	(26)	(73)
Net loss	(959)	(15)	(794)	(96)
Net income attributable to non-controlling interests	(4)	(5)	(7)	(9)
Net loss attributable to stockholders	(963)	(20)	(801)	(105)
Comprehensive loss attributable to stockholders	$ (963)	$ (20)	$ (801)	$ (105)
Basic and diluted weighted-average shares outstanding (in shares)	6,948,904	6,857,978	6,947,752	6,831,842
Basic and diluted net loss per share (in usd per share)	$ (0.14)	$ (0.01)	$ (0.12)	$ (0.02)
Distributions declared per share (in usd per share)	$ 0.39	$ 0.39	$ 0.77	$ 0.78

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY - 6 months ended Jun. 30, 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)	60,000		60,495
Common stock issued through distribution reinvestment plan	$ 1,437	1,437	$ 1	1,436
Common stock repurchases (in shares)			(82,494)
Common stock repurchases	(1,880)	(1,880)	$ (1)	(1,879)
Share-based compensation	18	18		18
Distributions declared	(5,393)	(5,378)			(5,378)
Distributions declared						(15)
Net loss	(794)	(801)			(801)	7
Ending balance (in shares) at Jun. 30, 2017			6,956,304
Ending balance at Jun. 30, 2017	$ 123,410	$ 122,954	$ 70	$ 149,684	$ (26,800)	$ 456

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (794)	$ (96)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,635	3,158
Amortization of deferred financing costs	15	15
Amortization of mortgage premium	(21)	(21)
Amortization of market lease and other intangibles	103	102
Share-based compensation	18	12
Changes in assets and liabilities:
Straight-line rent receivable	(77)	(267)
Prepaid expenses and other assets	530	111
Accounts payable and accrued expenses	832	406
Deferred rent	66	180
Restricted cash	(51)	(26)
Net cash provided by operating activities	3,256	3,574
Cash flows from investing activities:
Capital expenditures	(44)	(100)
Net cash used in investing activities	(44)	(100)
Cash flows from financing activities:
Payments on mortgage note payable	(50)	(48)
Common stock repurchases	(1,880)	0
Payments of offering costs and fees related to common stock issuances	0	(210)
Distributions paid	(3,971)	(3,264)
Distributions to non-controlling interest holders	(15)	0
Net cash used in financing activities	(5,916)	(3,522)
Net change in cash	(2,704)	(48)
Cash, beginning of period	16,371	16,808
Cash, end of period	13,667	16,760
Supplemental disclosure of cash flow information:
Cash paid for interest	100	101
Cash paid for income taxes	153	69
Non-cash investing and financing activities:
Payable and accrued offering costs	0	228
Common stock issued through distribution reinvestment plan	$ 1,437	$ 2,070

Organization

Organization	6 Months Ended
	Jun. 30, 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. The Company was formed to primarily acquire a diversified portfolio of healthcare-related assets, including medical office buildings ("MOBs"), seniors housing communities and other healthcare-related facilities. The Company purchased its first property and commenced real estate operations in March 2015. As of June 30, 2017 , the Company owned 19 properties located in 10 states, comprised of 0.5 million rentable square feet. 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"). On November 15, 2015, the Company announced the suspension of our IPO, effective December 31, 2015, and in August 2016, the IPO lapsed in accordance with its terms, having raised significantly less capital than expected. As of June 30, 2017 , the Company had approximately 7.0 million shares of common stock outstanding, including unvested restricted shares of common stock ("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 $171.1 million . 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, the Property Manager and Realty Capital Securities, LLC (the "Former Dealer Manager") have received or may receive fees during the Company's offering, acquisition, operational and liquidation stages. On June 16, 2017, the Company, the OP and ARHC TRS Holdco III, LLC, a subsidiary of the OP (“HT III Holdco”) entered into a purchase agreement (the “Purchase Agreement”) with Healthcare Trust, Inc. (“HTI”), Healthcare Trust Operating Partnership, L.P. (“HTI OP”) and ARHC TRS Holdco II, LLC (“HTI Holdco”), pursuant to which HTI, the HTI OP and HTI Holdco have agreed to purchase membership interests in the Company’s indirect subsidiaries which collectively own all 19 properties owned by the Company and comprise substantially all of the Company’s assets (together with the other transactions contemplated by the Purchase Agreement, the “Asset Sale”). Also on June 16, 2017, the board of directors approved a plan of liquidation and dissolution of the Company (the “Plan of Liquidation”). In connection with the Purchase Agreement, the Company entered into a letter agreement (the “Letter Agreement”) governing, if the Asset Sale closes, the fees and expenses that had become or would become payable by and to the Advisor and its affiliates, on the one hand, and the Company, on the other hand. See Note 2 — Purchase Agreement and Plan of Liquidation and Note 8 — Related Party Transactions and Arrangements. On July 18, 2017, the independent directors of the board of directors, who comprise a majority of the board of directors, unanimously approved an estimated net asset value per share of the Company’s common stock (“Estimated Per-Share NAV”) as of July 18, 2017. See Note 15 — Subsequent Events.

Purchase Agreement and Plan of

Purchase Agreement and Plan of Liquidation	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Purchase Agreement and Plan of Liquidation	Purchase Agreement and Plan of Liquidation Purchase Agreement On June 16, 2017, the Company, the OP and HT III Holdco entered into the Purchase Agreement with HTI, the HTI OP and HTI Holdco. HTI is sponsored and advised by affiliates of the Advisor. Pursuant to the Purchase Agreement, HTI, the HTI OP, and the HTI Holdco have agreed to purchase membership interests in the Company’s indirect subsidiaries which collectively own all 19 properties owned by the Company and comprise substantially all of the Company’s assets for a purchase price of $120.0 million (the “Purchase Price”). The Purchase Price is subject to customary prorations and closing adjustments in accordance with the terms of the Purchase Agreement and will be payable on the date the Asset Sale is consummated (the “Closing Date”) less, to the extent the loan secured by the Company’s Philip Center property (the “Philip Center Loan”) is assumed by HTI, the principal balance of the Philip Center Loan. HTI will deposit $6.0 million (the “Escrow Amount”) of the Purchase Price payable on the Closing Date into an escrow account for the benefit of the Company on the Closing Date, and the Escrow Amount will be released in installments thereafter over a period of 14 months following the Closing Date. In connection with its approval of the Purchase Agreement, the board of directors also approved the Plan of Liquidation, which is subject to stockholder approval. The closing of the Asset Sale is conditioned upon stockholder approval of both the Asset Sale and the Plan of Liquidation. Thus, if stockholders do not approve the Plan of Liquidation, the Asset Sale will not be completed even if stockholders approve the Asset Sale. Likewise, the effectiveness of the Plan of Liquidation is conditioned upon stockholder approval of the Plan of Liquidation and the closing of the Asset Sale. If the Asset Sale is not approved and does not close, the Plan of Liquidation will not become effective regardless of whether or not it has been approved. The Company expects that effectiveness of the Plan of Liquidation will cause the Company’s basis of accounting to change from the going-concern basis to the liquidation basis of accounting, which requires the Company's assets to be measured at the estimated amounts of consideration the entity expects to collect in settling and disposing of its assets and liabilities are to be measured at the estimated amounts at which the liabilities are expected to be settled. On July 19, 2017, the Company filed a preliminary proxy statement related to its 2017 annual meeting of stockholders (the “Annual Meeting”), at which stockholder approval of the Asset Sale and the Plan of Liquidation will be sought, but the date on which the Annual Meeting will be held has not yet been determined. Pursuant to the terms of the Purchase Agreement, HTI has agreed to use commercially reasonable efforts (including paying early termination fees not to exceed $200,000 ) to assume the Philip Center Loan and to cause the Company to be released from the guaranty associated with the Philip Center Loan. If HTI does not assume the Philip Center Loan on the Closing Date or if the Company is not released from the guaranty associated with the Philip Center Loan, the Philip Center Loan will be repaid in full by the Company on the Closing Date and any early termination fee in excess of $200,000 will be subtracted from the Purchase Price. The consummation of the Asset Sale pursuant to the Purchase Agreement is subject to certain conditions, including, among others, the Company obtaining the affirmative vote of the holders of at least a majority of all the outstanding shares of common stock on each of (i) the Asset Sale and (ii) the Plan of Liquidation, excluding for the purposes of the approval of the Asset Sale, shares of common stock beneficially owned by the Advisor, any director of the Company or any of their respective affiliates, including AR Global (the “Stockholder Approval”). The closing of the Asset Sale is conditioned upon stockholder approval of both the Asset Sale and the Plan of Liquidation. Thus, if stockholders do not approve the Plan of Liquidation, the Asset Sale will not be completed even if stockholders approve the Asset Sale. Likewise, the effectiveness of the Plan of Liquidation is conditioned upon stockholder approval of the Plan of Liquidation and the closing of the Asset Sale. If the Asset Sale is not approved and does not close, the Plan of Liquidation will not become effective regardless of whether or not it has been approved. The Purchase Agreement contains a number of customary representations and warranties for transactions of this type made by HTI, the HTI OP and HTI Holdco (the "Purchaser Parties"), on the one hand, and the Company, the OP and HT III Holdco (the "Seller Parties"), on the other hand. The representations and warranties were made by the parties as of the date of the Purchase Agreement and generally survive (along with related indemnification obligations described below) for a period of 14 months following the Closing Date. Certain of these representations and warranties are subject to specified exceptions and qualifications contained in the Purchase Agreement and are qualified by the disclosure letters delivered in connection therewith. The Seller Parties have agreed to pay in full or cause to be cancelled or discharged all liens and encumbrances against the Properties at or prior to the Closing Date. If the Seller Parties fail to pay any liens or encumbrances at or prior to the Closing Date, Purchaser Parties may pay those amounts and credit the amount paid against the Purchase Price. The Seller Parties and the Purchaser Parties have agreed to jointly and severally indemnify, hold harmless and defend the other parties from losses in connection with certain matters, including, among others: (i) breaches of representations and warranties and failures of covenants by the other parties; (ii) with respect to indemnification by the Seller Parties only, taxes payable by the Company, its subsidiaries or any of their respective affiliates in connection with any taxable period prior to the Closing Date, and any interest and penalties thereon; and (iii) with respect to indemnification by the Seller Parties only, any stockholder litigation brought by the Company’s stockholders directly or derivatively in connection with the transactions contemplated by the Purchase Agreement, subject to certain limitations. A party will not become liable for indemnification with respect to breaches of representations and warranties and failures of covenants unless and until the aggregate amount of indemnifiable claims by the other party exceeds $500,000 and this liability may not exceed 10% of the Purchase Price. Indemnifiable losses for which the Seller Parties are liable are recoverable by the Purchaser Parties first out of the Escrow Amount and then, to the extent the indemnifiable losses exceed the Escrow Amount, from the Seller Parties, jointly and severally. The Purchase Agreement prohibits the Company from initiating, soliciting, knowingly encouraging or facilitating any inquiries or the making of any proposal, offer or other action that constitutes, or may reasonably be expected to lead to, any Acquisition Proposal (as defined in the Purchase Agreement). However, prior to receipt of the Stockholder Approval, if the Company receives a bona fide written Acquisition Proposal that did not result from a breach of these exclusivity provisions and which the Special Committee determines in good faith, after consultation with its legal and financial advisors, is or is reasonably expected to lead to a Superior Proposal (as defined in the Purchase Agreement), the Company may furnish, make available or provide access to non-public information with respect to the Company to the person who made the Acquisition Proposal, participate in negotiations regarding the Acquisition Proposal and disclose to the Company’s stockholders any information required to be disclosed under applicable law. The Purchase Agreement provides that the Company’s board of directors may, if it determines in good faith after consultation with its legal advisor (and based on the recommendation of the Special Committee) that the failure of the Company’s board of directors to take certain actions related to changing its recommendation to the Company’s stockholders with respect to its approval of the Asset Sale or the Plan of Liquidation or entering into an agreement related to an Acquisition Proposal (any such action, a “Change in Recommendation”) would be reasonably likely to be inconsistent with the standard of conduct applicable to the Company’s directors under applicable law, subject to certain conditions, (i) make a Change in Recommendation upon receipt by the Company of an Acquisition Proposal that constitutes a Superior Proposal or (ii) otherwise, under certain circumstances, make a Change in Recommendation in response to certain material events, circumstances, changes or developments that were not known to the Company’s board of directors prior to signing the Purchase Agreement. The Purchase Agreement provides for certain termination rights of the Company and HTI, including HTI’s right to terminate the Purchase Agreement upon the occurrence of a Change in Recommendation or a material violation by the Company of its exclusivity obligations under the Purchase Agreement, in which event the Company will be required to pay HTI a termination fee of $3.6 million . In addition, the Company has agreed to reimburse HTI for up to $850,000 for certain transaction-related expenses (excluding HTI’s advisor expenses) if the Purchase Agreement is terminated by either party due to the Company’s failure to obtain the Stockholder Approval at a meeting called for that purpose. If the Company terminates the Purchase Agreement due to HTI’s failure to pay the Purchase Price at closing, HTI is required to reimburse the Company for up to $750,000 in actual third party expenses incurred in connection with the Asset Sale (without excluding Advisor expenses). Similarly, if the Company has not fulfilled certain necessary conditions to close the Asset Sale, other than obtaining the Stockholder Approval, the Company is required to reimburse HTI for up to $750,000 in actual third party expenses incurred in connection with the Asset Sale (excluding HTI’s advisor’s expenses). The Plan of Liquidation Pursuant to the Plan of Liquidation, the Company will be required to pay or provide for its liabilities and expenses, distribute the remaining proceeds of the liquidation of the Company’s assets to its stockholders, wind up the Company’s operations, and dissolve. The Company’s common stock is registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). While implementing the Plan of Liquidation, the Company will remain subject to the reporting requirements under the Exchange Act. The Company may seek relief from the SEC from these reporting requirements after the Company files its articles of dissolution, but there can be no assurance that this relief will be granted. Pursuant to the Plan of Liquidation, the Company will, among other things: • pay or provide for the Company’s liabilities, obligations and expenses, which may include establishing a reserve fund to provide for payment of contingent or unknown liabilities; • liquidate and dissolve the OP and the indirect subsidiaries of the Company and the OP, and distribute the net proceeds of the liquidation in accordance with the provisions of the organizational documents of those entities and the laws of the States of Maryland and Delaware, as applicable; • distribute cash and the remaining proceeds of the Asset Sale and the Company’s liquidation to stockholders in one or more distributions after paying or providing for liabilities, obligations and expenses and taking all necessary or advisable actions to wind up the Company’s affairs; and • wind up the Company’s operations and dissolve the Company, all in accordance with the Plan of Liquidation. The Plan of Liquidation requires the Company to use commercially reasonable efforts to liquidate and dissolve the Company and to distribute all of the Company’s assets to the holders of outstanding shares of common stock no later than the second anniversary of the effective date of the Plan of Liquidation. The Plan of Liquidation also provides, however, that this final distribution will not occur earlier than the end of the 14-month survival period of the representations and warranties under the Purchase Agreement and will not occur prior to final resolution of any unsatisfied indemnification claims or other claims that are first made prior to the end of that period.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3 — 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 and six months ended June 30, 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 six months ended June 30, 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 is to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company will adopt this guidance effective January 1, 2018 and currently expects to utilize the modified retrospective transition method upon adoption. The Company has progressed with its project plan for adopting this standard, including gathering and evaluating the inventory of its revenue streams. The Company expects that this revised guidance will have an impact on the timing of gains on certain sales of real estate. The Company is in the process of evaluating any differences in the timing, measurement or presentation of revenue recognition and the impact on the Company's consolidated financial statements and internal accounting processes. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The Company has ground leases, which the Company will be required to record a right-of-use asset and lease liability equal to the present value of the remaining lease payments upon adoption of this update. The Company also expects this revised guidance to impact the presentation of these lease and non-lease components of revenue from leases for lessors. The Company progressed in its project plan for adopting this revised guidance for lessors, including developing an inventory of leases as well as the lease and non-lease components contained therein. The Company is continuing to evaluate the impact of this new guidance and the allowable methods of adoption. 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. In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The update states that modification accounting should be used unless the fair value of the award, the vesting terms of the award and the classification of the award as either equity or liability, does not change as a result of the modification. The revised guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted for reporting periods for which financial statements have not yet been issued. 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	6 Months Ended
	Jun. 30, 2017
Real Estate Investments, Net [Abstract]
Real Estate Investments	Note 4 — 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 June 30, 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 July 1, 2017 — December 31, 2017 $ 4,480 2018 8,750 2019 8,300 2020 7,827 2021 6,431 Thereafter 18,846 Total $ 54,634 As of June 30, 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 June 30, 2017 and 2016 : June 30, State 2017 2016 Illinois 42.1% 41.9% Georgia 11.8% 11.9% Intangible Assets and Liabilities Acquired intangible assets and liabilities consisted of the following as of the periods presented: June 30, 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 $ 5,261 $ 10,762 $ 16,023 $ 4,058 $ 11,965 Above-market lease assets 2,427 611 1,816 2,427 434 1,993 Total acquired intangible assets $ 18,450 $ 5,872 $ 12,578 $ 18,450 $ 4,492 $ 13,958 Intangible liabilities: Above-market ground lease liabilities $ 179 $ 30 $ 149 $ 180 $ 22 $ 158 Below-market lease liabilities 1,722 244 1,478 1,722 179 1,543 Total acquired intangible liabilities $ 1,901 $ 274 $ 1,627 $ 1,902 $ 201 $ 1,701 The following table discloses amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place lease assets, amortization and accretion of above- and below-market lease assets and liabilities, net and the accretion of above-market ground leases, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Amortization of in-place leases (1) $ 602 $ 868 $ 1,203 $ 1,737 Amortization (accretion) of above- and below-market leases, net (2) $ 56 $ 56 $ 111 $ 111 Accretion of above-market ground leases (3) $ (4 ) $ (4 ) $ (8 ) $ (8 ) _______________ (1) Reflected within depreciation and amortization expense (2) Reflected within rental income (3) Reflected within property operating and maintenance expense The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) July 1, 2017 — December 31, 2017 2018 2019 2020 2021 In-place lease assets $ 1,159 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Total to be added to amortization expense $ 1,159 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Above-market lease assets $ 175 $ 318 $ 309 $ 301 $ 224 Below-market lease liabilities (66 ) (132 ) (131 ) (127 ) (120 ) Total to be deducted from rental income $ 109 $ 186 $ 178 $ 174 $ 104 Above-market ground lease liabilities $ 8 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 8 $ 16 $ 16 $ 16 $ 16 Non-Recurring Fair Value Measurement Assessment As a result of the Company’s board of directors' approval of the Asset Sale and Plan of Liquidation, the Company reconsidered its intended holding period for all of its operating properties and evaluated the impact on its ability to recover the carrying value of such properties based on the expected cash flows over its intended holding period. The Company's estimated future cash flows expected to be generated are based on management’s experience in its real estate market and the effects of current market conditions. The assumptions are subject to economic and market uncertainties including, among others, market capitalization rates, discount rates, demand for space, competition for tenants, changes in market rental rates, and costs to operate the property. Additionally, the Company made assumptions as to the costs associated with the consummation of the Asset Sale. Such costs would have an impact on the estimated future cash flows expected to be received for the properties. As the estimates used by management are difficult to predict and are subject to alteration through future events, the cash flows estimated by management in its impairment analysis may not be achieved, and actual losses or impairment may be realized in the future. Based on the terms of the Purchase Agreement, the Company performed its analysis at the portfolio level and grouped all 19 properties together. The aggregate carrying value of the portfolio did not exceed the aggregate estimated fair value less costs to sell.

Mortgage Notes Payable

Mortgage Notes Payable	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Mortgage Notes Payable	Note 5 — Mortgage Note Payable The following table reflects the Company's mortgage note payable as of June 30, 2017 and December 31, 2016 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties June 30, 2017 December 31, 2016 Interest Rate Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 4,947 $ 4,997 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (63 ) (78 ) Mortgage note payable, net of deferred financing costs $ 4,884 $ 4,919 As of June 30, 2017 , the Company had pledged $9.0 million of total real estate investments, net as collateral for the mortgage note payable. This real estate is not available to satisfy other debts and obligations unless first satisfying the mortgage note payable on the property. The Company makes payments of principal and interest on its mortgage note payable on a monthly basis. The following table summarizes the scheduled aggregate principal payments on the Company's mortgage note payable for the five years subsequent to June 30, 2017 and thereafter: (In thousands) Future Principal Payments July 1, 2017 — December 31, 2017 $ 50 2018 104 2019 4,793 2020 — 2021 — Thereafter — Total $ 4,947

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 6 — 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 at Fair Value at Carrying Amount at Fair Value at (In thousands) Level June 30, June 30, December 31, December 31, Mortgage note payable and mortgage premium, net 3 $ 5,039 $ 5,036 $ 5,110 $ 5,085 The fair value of the mortgage note payable is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of borrowing arrangements.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Common Stock	Note 7 — Common Stock The Company had approximately 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 June 30, 2017 and December 31, 2016 . The Company had received total proceeds from the IPO and the DRIP, net of share repurchases, of $171.1 million and $171.5 million as of June 30, 2017 and December 31, 2016 , respectively. The Company has paid distributions on a monthly basis to stockholders of record at a rate 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. On July 18, 2017, in light of the pending Asset Sale and Plan of Liquidation, the board of directors determined that the Company will cease declaring and paying regular distributions to its stockholders following the distributions to stockholders of record with respect to each day during the month of July 2017 scheduled to be paid on or before August 5, 2017. See Note 15 — Subsequent Events . 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. The Company announced on April 28, 2017, that it had determined to temporarily suspend its DRIP for two monthly investment periods. On June 16, 2017, in contemplation of the Asset Sale, the Company’s board of directors determined to suspend the DRIP indefinitely, which became effective on June 19, 2017. During the six months ended June 30, 2017 , the per share purchase price of shares issued pursuant to the DRIP was $23.75 per share which was equal to 95% of the offering price in the IPO, and the Company issued approximately 60,000 shares of common stock pursuant to the DRIP, generating aggregate proceeds of $1.4 million . On July 18, 2017, the independent directors of the board of directors, who comprise a majority of the board of directors unanimously approved an Estimated Per-Share NAV as of July 18, 2017. See Note 15 — Subsequent Events. Beginning with July 19, 2017, the date the Estimated-Per Share NAV was first published (the “NAV Pricing Date”), the per share price for shares pursuant to the DRIP would have varied periodically and would have been equal to the Company’s Estimated Per-Share NAV. 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. On June 16, 2017, in furtherance of the Asset Sale, the Company’s board of directors determined to suspend the Company’s SRP indefinitely and, as authorized by the terms of the SRP, to reject any repurchase requests that the Company has received or will receive during calendar year 2017. The suspension of the SRP became effective as of July 19, 2017. Prior to this suspension, the SRP permitted 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 began 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 depended on the length of time investors 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 were equal to the price actually paid for each such share. Beginning with the NAV Pricing Date, the price per share that the Company would have paid to repurchase its shares would have been 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 would have been 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 would have been subject to a short-term trading fee of 2% of the aggregate Estimated Per-Share NAV of the shares of common stock received. If the SRP remained effective beyond the NAV Pricing Date, which occurred after the SRP was indefinitely suspended, the price per share that the Company would have paid to repurchase its shares would have been based on Estimated Per-Share NAV. Repurchases of shares of the Company's common stock, when requested, were at the sole discretion of the board of directors. Until the 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, were 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 were 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 was 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. Any repurchase requests received during such fiscal semester were 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. 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. 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 June 30, 2017 : Number of Shares Repurchased Weighted-Average Price per Share Cumulative repurchases as of December 31, 2016 1,021 $ 24.97 Six months ended June 30, 2017 (1) 82,494 22.79 Cumulative repurchases as of June 30, 2017 83,515 $ 22.82 _______________ (1) Includes 83,604 shares repurchased in the three months ended March 31, 2017 for approximately $1.9 million at a weighted average price per share of $22.77 , net of repurchase requests with respect to 1,110 shares that were canceled during the three months ended June 30, 2017 . Excludes rejected repurchases with respect to 2016 of 181,389 shares for $4.0 million at a weighted average price per share of $22.29 , which were unfulfilled as of June 30, 2017 . On June 16, 2017, in furtherance of the Asset Sale, the Company’s board of directors determined to suspend the SRP indefinitely and, as authorized by the terms of the SRP, to reject any repurchase requests that the Company has received or will receive during calendar year 2017. The suspension of the SRP became effective as of July 19, 2017 and no shares have been, or will be, repurchased in connection with requests made during 2017.

Related Party Transactions and

Related Party Transactions and Arrangements	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions and Arrangements	Note 8 — Related Party Transactions and Arrangements As of June 30, 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 June 30, 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. On May 26, 2017, the defendants moved to dismiss. The Advisor has informed the Company that it believes the suit is without merit and intends to defend against it vigorously. Purchase Agreement On June 16, 2017, the Company, the OP and HT III Holdco entered into the Purchase Agreement with HTI, HTI OP and HTI Holdco. HTI is sponsored and advised by affiliates of the Advisor. Pursuant to the Purchase Agreement, the Purchaser Parties have agreed to purchase membership interests in the Company’s indirect subsidiaries which collectively own all 19 properties owned by the Company and comprise substantially all of the Company’s assets for the Purchase Price, subject to reductions for debt assumed or repaid and customary prorations and closing adjustments. See Note 2 — Purchase Agreement. AR Global Arrangements In connection with the execution of the Purchase Agreement, the Company, the Advisor, the Property Manager and AR Global, as guarantor, entered into the Letter Agreement, pursuant to which, subject to the completion of the Asset Sale, the parties resolved matters related to expense reimbursements or fees previously paid by the Company to the Advisor and its affiliates (the “Excess Amount”) and made certain agreements with respect to all fees and other amounts that would be payable to the Advisor and its affiliates pursuant to the Company's advisory agreement with the Advisor (the "Advisory Agreement"), the Company's property management agreement with the Property Manager (the "Property Management Agreement") and the limited partnership agreement of the OP (the “LPA”) if the Asset Sale is completed. Letter Agreement Pursuant to the Letter Agreement, as satisfaction of the Excess Amount, the Advisor and the Property Manager will pay, tender, waive or assume certain fees, expenses and obligations, as applicable. The Excess Amount aggregates to $3.68 million consisting of the “Excess O&O Amount” and the “Excess Oversight Amount” as described below. • Pursuant to the Advisory Agreement, the Company reimbursed the Advisor and its affiliates, including subsidiaries of RCAP up to 2.0% of gross offering proceeds for organization and offering expenses, which included reimbursements to the Advisor for other organization and offering expenses that it incurred for due diligence fees included in detailed and itemized invoices. The Advisor was responsible for offering costs, excluding selling commissions and dealer manager fees, in excess of the 2.0% cap as of the end of the IPO. As of the end of the IPO, offering and related costs, excluding commissions and dealer manager fees, exceeded 2.0% of gross proceeds received from the IPO by $3.77 million . This amount includes $3.54 million already paid by the Company to the Advisor and its affiliates (the “Excess O&O Amount”) and $228 thousand of unpaid disputed fees payable to affiliates of AR Global, including subsidiaries of RCAP (the “Disputed Amount”). Pursuant to the Letter Agreement, to the extent any portion of the Disputed Amount is found to be payable, it will be paid by the Advisor (with this obligation guaranteed by AR Global) and will not be the responsibility of the Company. • Pursuant to the Property Management Agreement, the Company was responsible for paying the Property Manager an oversight fee of 1.0% of gross revenues for the Property Manager’s supervision of third parties managing certain of the Properties, which the Company had previously overpaid to the Property Manager in an amount equal to approximately $141 thousand (the “Excess Oversight Amount”). The parties have agreed, as partial satisfaction of the Excess Amount, that the Advisor and Property Manager, as applicable, will: • surrender 72,353 performance-based restricted, forfeitable partnership units of the OP designated as "Class B Units" (the "Class B Units") previously issued to the Advisor and the additional Class B Units to be issued to the Advisor during August 2017 with respect to the quarter ended June 30, 2017 in accordance with the terms of the Advisory Agreement and the LPA with the value of the Class B Units so surrendered will be calculated in accordance with the Letter Agreement, at the fair market value thereof as reasonably determined by the board of directors as of the Closing Date, which per-unit amount will be based on the per-share value as implied from the Purchase Agreement; • waive amounts that would have been payable by the Company with respect to certain transition services provided by the Advisor beginning as of January 1, 2018 and through the later of (1) dissolution of the Company and (2) 30 days following the expiration of the 14 month survival period of the representation and warranties under the Purchase Agreement, valued at $0.24 million in the aggregate assuming services would be provided for ten months; • waive amounts with respect to certain administrative expense reimbursements that would be payable to the Advisor by the Company for expenses incurred during the nine months ending December 31, 2017, valued at $0.10 million per month and $0.87 million in the aggregate; • waive amounts that would have been payable by the Advisor to the Company in accordance with the terms of the Advisory Agreement and the LPA (as amended by the contemplated amendments to the Advisory Agreement and the LPA (the Contemplated Amendments"), which have not yet been executed and will not become effective if the Asset Sale does not close), with respect to cash asset management and oversight fees for the period commencing July 1, 2017 and ending on the Closing Date; and • waive fees valued at approximately $24 thousand potentially payable by the Company to one of the subsidiaries of RCAP in addition to the Disputed Amount. Following the Closing Date, the Advisor will pay to the Company any Excess Amount in excess of the value of the foregoing bullet points in two equal installments, the first of which will be due within three days following the Closing Date and the second of which will be due within six months following the Closing Date. These payments are guaranteed by AR Global. The Letter Agreement will be null and void if the Purchase Agreement is terminated. Other than as contemplated by the Letter Agreement, if the Asset Sale is completed, no fees or other amounts are or will become due or otherwise payable under the Advisory Agreement, the Property Management Agreement, the LPA or any other agreement between the Company and the Advisor and its affiliates. Advisory Agreement and Property Management Agreement Amendments As contemplated by the Letter Agreement, concurrently with the execution of the Purchase Agreement, the Company, the OP and the Advisor entered into an amendment to the Advisory Agreement (the “Advisory Agreement Amendment”) and the Company and the Property Manager also entered into an amendment to the Property Management Agreement (the “Property Management Amendment”). Pursuant to the Advisory Agreement Amendment, the Advisor has agreed to provide the Company services required to implement the Plan of Liquidation following the Closing Date. Pursuant to the Advisory Agreement Amendment, the amounts payable by the Company to Advisor for these services will be automatically waived in partial satisfaction of the Excess Amount in accordance with the terms of the Letter Agreement, and no other amounts will be payable to the Advisor following the Closing Date. Pursuant to the Property Management Amendment, the Property Manager agreed to continue to provide any property management or wind-down services under the Property Management Agreement at no cost or charge. The Property Management Amendment will be null and void if the Purchase Agreement is terminated. The Advisory Agreement Amendment will only become effective at the Closing Date and will be of no force or effect in the event the Purchase Agreement is terminated prior to the Closing Date. Contemplated Amendments to Advisory Agreement and LPA Pursuant to the Letter Agreement, prior to the Closing Date, the Company and the Advisor agreed to enter into the Contemplated Amendments, an amendment to the Advisory Agreement and an amendment to the LPA, effective as of July 1, 2017, to facilitate the establishment of a value for Class B Units consistent with the applicable provisions of the Letter Agreement and certain of the other payments contemplated by the Letter Agreement. The Contemplated Amendments have not yet been executed. Notwithstanding the date the Contemplated Amendments are executed, they will be effective as of July 1, 2017 and only if the Asset Sale and the Plan of Liquidation are approved and the Asset Sale closes. They will be of no force or effect in the event the Purchase Agreement is terminated prior to the Closing Date. 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 and six months ended June 30, 2017 or 2016 . As of June 30, 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. Pursuant to the Letter Agreement, no acquisitions fees or related expense reimbursements will be payable following the closing of the Asset Sale. 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. Pursuant to the Letter Agreement, no financing coordination fees will be payable following the closing of the Asset Sale pursuant to the Letter Agreement. The Advisor manages the Company’s day-to-day operations. Since the Company’s inception, in lieu of paying the Advisor in cash for its asset management services, the Company has compensated the Advisor by causing the OP to issue Class B Units to the Advisor (subject to periodic approval by the board of directors). The Class B Units are intended to be profit interests that 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 price at which the Company sold shares in the IPO minus the selling commissions and dealer manager fees paid in that offering) and will be the Estimated Per-Share NAV following the NAV Pricing Date. The NAV Pricing Date occurred on July 19, 2017. 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 in cash on unvested Class B Units equal to the per share distribution paid 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 loss until the performance condition is considered probable to occur. During the three and six months ended June 30, 2017 , the Company's board of directors approved the issuance of 16,863 and 26,431 Class B Units to the Advisor in connection with this arrangement, respectively. As of June 30, 2017 , the Company's board of directors had approved the issuance of 72,353 Class B Units to the Advisor in connection with this arrangement. Pursuant to the Letter Agreement, the Company and the Advisor parties resolved matters related to expense reimbursements or fees previously paid by the Company to the Advisor and its affiliates and made certain agreements with respect to all fees and other amounts that would be payable to the Advisor and its affiliates pursuant to the Advisory Agreement, the Property Management Agreement and the LPA if the Asset Sale is completed, including that the Advisor would surrender all Class B Units previously issued to the Advisor. 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 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 loss. As acknowledged in the Letter Agreement, the Company had previously overpaid property management and oversight fees to the Property Manager in an amount equal to approximately $141 thousand . Pursuant to the Letter Agreement, any obligation the Advisor has to repay this amount will be satisfied if the Asset Sale is consummated. Since May 1, 2017, in lieu of paying the Property Manager property management fees, including oversight fees, the Company has applied all property management fees otherwise due and payable to the Property Manager against the overpaid amount. Concurrent with the Letter Agreement, the Property Manager agreed pursuant to the Property Management Amendment to continue to provide any property management or wind-down services at no cost or charge. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Payable (Receivable) as of (In thousands) Incurred Forgiven Incurred Forgiven Incurred Forgiven Incurred Forgiven June 30, December 31, Ongoing fees and reimbursements: Property management fees $ 14 $ — $ 39 $ — $ 27 $ — $ 79 $ — $ (129 ) $ (129 ) Professional fees and reimbursements 325 — 91 — 380 — 158 — — 29 Distributions on Class B Units 25 — 9 — 44 — 13 — — 2 Total related party operating fees and reimbursements $ 364 $ — $ 139 $ — $ 451 $ — $ 250 $ — $ (129 ) $ (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. $0.3 million was incurred from the Advisor for providing such services during the three and six months ended June 30, 2017 . No such reimbursements were payable during the three and six months ended June 30, 2016 . Following the closing of the Asset Sale pursuant to the Letter Agreement, no such reimbursements will be payable. Pursuant to the Letter Agreement, as partial satisfaction of the Excess Amount the Advisor has agreed to waive amounts with respect to these administrative expense reimbursements that would be payable to the Advisor by the Company for expenses incurred during the nine months ending December 31, 2017, valued at approximately $0.1 million per month and $0.9 million in the aggregate. 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. No such fees or expenses were forgiven or absorbed by the Advisor during the three and six months ended June 30, 2017 or 2016 . The predecessor to AR Global was party to a services agreement with RCS Advisory Services, LLC ( "RCS Advisory"), a subsidiary of the parent company of the Former Dealer Manager, 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. ("DST"), a third-party transfer agent. 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 and six months ended June 30, 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 and six months ended June 30, 2017 or 2016 . Under the terms of the Letter Agreement, the Company will no longer be obligated to pay a real estate commission to the Advisor following the closing of the Asset Sale. The Company will pay the Special Limited Partner a subordinated participation in the net sales proceeds of the sale of real estate assets of 15.0% of remaining net sale proceeds after return of capital contributions to investors plus payment to investors of a 6.0% cumulative, pre-tax non-compounded annual return on the capital contributed by investors. The Special Limited Partner will not be entitled to the subordinated participation in the net sales proceeds unless investors have received a return of their capital plus a return equal to a 6.0% cumulative non-compounded annual return on their capital contributions. No participation in net sales proceeds was incurred during the three and six months ended June 30, 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. The Asset Sale will not generate net proceeds in excess of this 6.0% hurdle. Thus, the Special Limited Partner will not receive a payment in respect of this subordinated participation in net sales proceeds if the Asset Sale and the Plan of Liquidation are approved and the Asset Sale closes. No such distribution was incurred or paid during the three and six months ended June 30, 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	6 Months Ended
	Jun. 30, 2017
Economic Dependency [Abstract]
Economic Dependency	Note 9 — 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. Pursuant to the Advisory Agreement Amendment, the Advisor has agreed to provide the Company services required to implement the Plan of Liquidation following the Closing Date. The amounts payable by the Company to Advisor for these services will be automatically waived in partial satisfaction of the Excess Amount in accordance with the terms of the Letter Agreement, and no other amounts will be payable to the Advisor following the Closing Date. See Note 8 — Related Party Transactions and Arrangements — AR Global Arrangements. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that the Advisor and its affiliates are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services.

Equity-Based Compensation

Equity-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity-Based Compensation	Note 10 — 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 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 shares of common stock granted as awards 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 (533 ) 22.50 Forfeitures — — Unvested, June 30, 2017 5,865 $ 22.50 As of June 30, 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 3.2 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 $18,000 for the three and six months ended June 30, 2017 , respectively. Compensation expense related to restricted shares was approximately $6,000 and $12,000 for the three and six months ended June 30, 2016 , respectively. Compensation expense related to restricted shares is recorded as general and administrative expense in the accompanying consolidated statements of operations and comprehensive loss.

Non-Controlling Interests

Non-Controlling Interests	6 Months Ended
	Jun. 30, 2017
Noncontrolling Interest [Abstract]
Non-Controlling Interests	Note 11 — Non-controlling Interests The Company is the sole general partner and holds substantially all of the OP Units. As of June 30, 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 and six months ended June 30, 2017 and June 30, 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 June 30, 2017 As of December 31, 2016 Distributions for the Three Months Ended June 30, Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of June 30, 2017 Non-Controlling Ownership Percentage as of June 30, 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 (1) UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 279 5 % $ 5,673 $ — $ 5,790 $ — $ 9 — UnityPoint Clinic - Moline, IL Dec. 2015 177 5 % 3,613 — 3,691 — 6 — _______________ (1) No distributions of net cash flows from operations of the properties subject to the investment arrangements were paid to unaffiliated third party investors during the three months ended June 30, 2016 .

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 12 — Net Loss Per Share The following is a summary of the basic and diluted net loss per share computation for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share amounts) 2017 2016 2017 2016 Net loss attributable to stockholders $ (963 ) $ (20 ) $ (801 ) $ (105 ) Basic and diluted weighted-average shares outstanding 6,948,904 6,857,978 6,947,752 6,831,842 Basic and diluted net loss per share $ (0.14 ) $ (0.01 ) $ (0.12 ) $ (0.02 ) 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 shares, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Unvested restricted shares (1) 6,346 4,752 6,372 4,775 OP Units (2) 90 90 90 90 Class B Units (3) 65,311 23,249 57,203 16,898 Total weighted-average antidilutive common stock equivalents 71,747 28,091 63,665 21,763 _______________ (1) Weighted average number of antidilutive unvested restricted shares outstanding for the periods presented. There were 5,865 and 4,266 unvested restricted shares outstanding as of June 30, 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 June 30, 2017 and 2016 . (3) Weighted average number of antidilutive Class B Units outstanding for the periods presented. There were 72,353 and 26,786 Class B Units outstanding as of June 30, 2017 and 2016 , respectively.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Reporting	Note 13 — Segment Reporting During the three and six months ended June 30, 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 and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,172 $ 104 $ — $ 2,276 $ 4,344 $ 209 $ — $ 4,553 Operating expense reimbursements 508 — — 508 1,299 — — 1,299 Resident services and fee income — — 669 669 — — 1,411 1,411 Total revenues 2,680 104 669 3,453 5,643 209 1,411 7,263 Property operating and maintenance 682 55 470 1,207 1,632 185 953 2,770 NOI $ 1,998 $ 49 $ 199 2,246 $ 4,011 $ 24 $ 458 4,493 Operating fees to related party (14 ) (27 ) Acquisition and transaction related (1,113 ) (1,159 ) General and administrative (743 ) (1,347 ) Depreciation and amortization (1,318 ) (2,635 ) Interest expense (46 ) (93 ) Interest and other income — — Income tax benefit/(expense) 29 (26 ) Net income attributable to non-controlling interests (4 ) (7 ) Net loss attributable to stockholders $ (963 ) $ (801 ) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,173 $ 104 $ — $ 2,277 $ 4,336 $ 209 $ — $ 4,545 Operating expense reimbursements 625 — — 625 1,251 — — 1,251 Resident services and fee income — — 709 709 — — 1,407 1,407 Total revenues 2,798 104 709 3,611 5,587 209 1,407 7,203 Property operating and maintenance 808 — 476 1,284 1,595 — 946 2,541 NOI $ 1,990 $ 104 $ 233 2,327 $ 3,992 $ 209 $ 461 4,662 Operating fees to related party (39 ) (79 ) Acquisition and transaction related (103 ) (133 ) General and administrative (545 ) (1,221 ) Depreciation and amortization (1,581 ) (3,158 ) Interest expense (47 ) (95 ) Interest and other income 1 1 Income tax benefit/(expense) (28 ) (73 ) Net income attributable to non-controlling interests (5 ) (9 ) Net loss attributable to stockholders $ (20 ) $ (105 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: June 30, December 31, (In thousands) 2017 2016 ASSETS Investments in real estate, net: Medical office buildings $ 104,409 $ 106,968 Triple-net leased healthcare facilities 4,471 4,554 Seniors housing — operating properties 10,067 10,213 Total investments in real estate, net 118,947 121,735 Cash 13,667 16,371 Restricted cash 88 37 Straight-line rent receivable 739 662 Prepaid expenses and other assets 734 1,242 Deferred costs, net 8 9 Total assets $ 134,183 $ 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 June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Medical office buildings $ — $ 39 $ — $ 39 Triple-net leased healthcare facilities — — — — Seniors housing — operating properties 37 — 44 61 Total capital expenditures $ 37 $ 39 $ 44 $ 100

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 14 — Commitments and Contingencies The Company has entered into operating lease agreements related to certain acquisitions under leasehold interest arrangements. The following table reflects the minimum base cash rental payments due from the Company over the next five years and thereafter under these arrangements. These amounts exclude contingent rent payments, as applicable, that may be payable based on provisions related to increases in annual rent based on exceeding certain economic indexes among other items. (In thousands) Future Minimum Base Rental Payments July 1, 2017 — December 31, 2017 $ 52 2018 105 2019 106 2020 109 2021 116 Thereafter 3,325 Total $ 3,813 Total rental expense from the Company's operating leases was approximately $34 thousand and $67 thousand during the three and six months ended June 30, 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. Purchase Agreement In connection with its approval of the Purchase Agreement, the board of directors also approved the Plan of Liquidation, which will become effective if the Company obtains the Stockholder Approval and the Asset Sale is consummated. The consummation of the Asset Sale is also subject to the Company obtaining the Stockholder Approval as well as other conditions, and there can be no assurance the Asset Sale will be consummated on the terms contained in the Purchase Agreement, or at all. Pursuant to the Plan of Liquidation, the Company anticipates winding up its affairs and distributing the net cash proceeds available for distribution after satisfying the Company’s liabilities to the holders of its common stock in one or more liquidating distributions. See Note 2 — Purchase Agreement — The Plan of Liquidation.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 15 — 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: Suspension of Shareholder Distributions On July 18, 2017, in light of the pending Asset Sale and Plan of Liquidation, the board of directors determined that the Company will cease declaring and paying regular distributions to its stockholders following the distributions to stockholders of record with respect to each day during the month of July 2017 scheduled to be paid on or before August 5, 2017. Estimated Per-Share NAV On July 18, 2017, the independent directors of the board of directors, who comprise a majority of the board of directors unanimously approved an Estimated Per-Share NAV of $17.64 as of July 18, 2017.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 is to become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company will adopt this guidance effective January 1, 2018 and currently expects to utilize the modified retrospective transition method upon adoption. The Company has progressed with its project plan for adopting this standard, including gathering and evaluating the inventory of its revenue streams. The Company expects that this revised guidance will have an impact on the timing of gains on certain sales of real estate. The Company is in the process of evaluating any differences in the timing, measurement or presentation of revenue recognition and the impact on the Company's consolidated financial statements and internal accounting processes. In January 2016, the FASB issued an update that amends the recognition and measurement of financial instruments. The new guidance revises an entity’s accounting related to equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. Among other things, it also amends the presentation and disclosure requirements associated with the fair value of financial instruments. The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is not permitted for most of the amendments in the update. The Company is currently evaluating the impact of this new guidance. In February 2016, the FASB issued an update that sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The revised guidance supersedes previous leasing standards and is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The Company has ground leases, which the Company will be required to record a right-of-use asset and lease liability equal to the present value of the remaining lease payments upon adoption of this update. The Company also expects this revised guidance to impact the presentation of these lease and non-lease components of revenue from leases for lessors. The Company progressed in its project plan for adopting this revised guidance for lessors, including developing an inventory of leases as well as the lease and non-lease components contained therein. The Company is continuing to evaluate the impact of this new guidance and the allowable methods of adoption. 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. In May 2017, the FASB issued guidance that clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The update states that modification accounting should be used unless the fair value of the award, the vesting terms of the award and the classification of the award as either equity or liability, does not change as a result of the modification. The revised guidance is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted for reporting periods for which financial statements have not yet been issued. 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)	6 Months Ended
	Jun. 30, 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 June 30, 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 July 1, 2017 — December 31, 2017 $ 4,480 2018 8,750 2019 8,300 2020 7,827 2021 6,431 Thereafter 18,846 Total $ 54,634
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 June 30, 2017 and 2016 : June 30, State 2017 2016 Illinois 42.1% 41.9% Georgia 11.8% 11.9%
Schedule of Acquired Finite-Lived Intangible Assets by Major Class	Acquired intangible assets and liabilities consisted of the following as of the periods presented: June 30, 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 $ 5,261 $ 10,762 $ 16,023 $ 4,058 $ 11,965 Above-market lease assets 2,427 611 1,816 2,427 434 1,993 Total acquired intangible assets $ 18,450 $ 5,872 $ 12,578 $ 18,450 $ 4,492 $ 13,958 Intangible liabilities: Above-market ground lease liabilities $ 179 $ 30 $ 149 $ 180 $ 22 $ 158 Below-market lease liabilities 1,722 244 1,478 1,722 179 1,543 Total acquired intangible liabilities $ 1,901 $ 274 $ 1,627 $ 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 loss related to amortization of in-place lease assets, amortization and accretion of above- and below-market lease assets and liabilities, net and the accretion of above-market ground leases, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Amortization of in-place leases (1) $ 602 $ 868 $ 1,203 $ 1,737 Amortization (accretion) of above- and below-market leases, net (2) $ 56 $ 56 $ 111 $ 111 Accretion of above-market ground leases (3) $ (4 ) $ (4 ) $ (8 ) $ (8 ) _______________ (1) Reflected within depreciation and amortization expense (2) Reflected within rental income (3) Reflected within property operating and maintenance expense
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table provides the projected amortization expense and adjustments to revenues for the next five years: (In thousands) July 1, 2017 — December 31, 2017 2018 2019 2020 2021 In-place lease assets $ 1,159 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Total to be added to amortization expense $ 1,159 $ 2,197 $ 2,022 $ 1,794 $ 1,285 Above-market lease assets $ 175 $ 318 $ 309 $ 301 $ 224 Below-market lease liabilities (66 ) (132 ) (131 ) (127 ) (120 ) Total to be deducted from rental income $ 109 $ 186 $ 178 $ 174 $ 104 Above-market ground lease liabilities $ 8 $ 16 $ 16 $ 16 $ 16 Total to be deducted from property operating and maintenance expense $ 8 $ 16 $ 16 $ 16 $ 16

Mortgage Notes Payable (Tables)

Mortgage Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The following table reflects the Company's mortgage note payable as of June 30, 2017 and December 31, 2016 : Outstanding Loan Amount as of Effective Interest Rate Portfolio Encumbered Properties June 30, 2017 December 31, 2016 Interest Rate Maturity (In thousands) (In thousands) Philip Professional Center — Lawrenceville, GA 2 $ 4,947 $ 4,997 4.0 % Fixed Oct. 2019 Deferred financing costs, net of accumulated amortization (63 ) (78 ) Mortgage note payable, net of deferred financing costs $ 4,884 $ 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 June 30, 2017 and thereafter: (In thousands) Future Principal Payments July 1, 2017 — December 31, 2017 $ 50 2018 104 2019 4,793 2020 — 2021 — Thereafter — Total $ 4,947

Fair Value of Financial Instr25

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 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 at Fair Value at Carrying Amount at Fair Value at (In thousands) Level June 30, June 30, December 31, December 31, Mortgage note payable and mortgage premium, net 3 $ 5,039 $ 5,036 $ 5,110 $ 5,085

Common Stock Common Stock (Tabl

Common Stock Common Stock (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Class of Treasury Stock	The following table reflects the number of shares repurchased cumulatively through June 30, 2017 : Number of Shares Repurchased Weighted-Average Price per Share Cumulative repurchases as of December 31, 2016 1,021 $ 24.97 Six months ended June 30, 2017 (1) 82,494 22.79 Cumulative repurchases as of June 30, 2017 83,515 $ 22.82 _______________ (1) Includes 83,604 shares repurchased in the three months ended March 31, 2017 for approximately $1.9 million at a weighted average price per share of $22.77 , net of repurchase requests with respect to 1,110 shares that were canceled during the three months ended June 30, 2017 . Excludes rejected repurchases with respect to 2016 of 181,389 shares for $4.0 million at a weighted average price per share of $22.29

Related Party Transactions an27

Related Party Transactions and Arrangements (Tables)	6 Months Ended
	Jun. 30, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Payable (Receivable) as of (In thousands) Incurred Forgiven Incurred Forgiven Incurred Forgiven Incurred Forgiven June 30, December 31, Ongoing fees and reimbursements: Property management fees $ 14 $ — $ 39 $ — $ 27 $ — $ 79 $ — $ (129 ) $ (129 ) Professional fees and reimbursements 325 — 91 — 380 — 158 — — 29 Distributions on Class B Units 25 — 9 — 44 — 13 — — 2 Total related party operating fees and reimbursements $ 364 $ — $ 139 $ — $ 451 $ — $ 250 $ — $ (129 ) $ (98 )

Equity-Based Compensation (Tabl

Equity-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 (533 ) 22.50 Forfeitures — — Unvested, June 30, 2017 5,865 $ 22.50

Non-Controlling Interests (Tabl

Non-Controlling Interests (Tables)	6 Months Ended
	Jun. 30, 2017
Noncontrolling Interest [Abstract]
Non-Controlling Interests	The following table summarizes the activity related to investment arrangements with the unaffiliated third party. As of June 30, 2017 As of December 31, 2016 Distributions for the Three Months Ended June 30, Property Name (Dollar amounts in thousands) Investment Date Third Party Net Investment Amount as of June 30, 2017 Non-Controlling Ownership Percentage as of June 30, 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 (1) UnityPoint Clinic - Muscatine, IA Dec. 2015 $ 279 5 % $ 5,673 $ — $ 5,790 $ — $ 9 — UnityPoint Clinic - Moline, IL Dec. 2015 177 5 % 3,613 — 3,691 — 6 — _______________ (1) No distributions of net cash flows from operations of the properties subject to the investment arrangements were paid to unaffiliated third party investors during the three months ended June 30, 2016 .

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a summary of the basic and diluted net loss per share computation for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, Six Months Ended June 30, (In thousands, except share and per share amounts) 2017 2016 2017 2016 Net loss attributable to stockholders $ (963 ) $ (20 ) $ (801 ) $ (105 ) Basic and diluted weighted-average shares outstanding 6,948,904 6,857,978 6,947,752 6,831,842 Basic and diluted net loss per share $ (0.14 ) $ (0.01 ) $ (0.12 ) $ (0.02 )
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 shares, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Unvested restricted shares (1) 6,346 4,752 6,372 4,775 OP Units (2) 90 90 90 90 Class B Units (3) 65,311 23,249 57,203 16,898 Total weighted-average antidilutive common stock equivalents 71,747 28,091 63,665 21,763 _______________ (1) Weighted average number of antidilutive unvested restricted shares outstanding for the periods presented. There were 5,865 and 4,266 unvested restricted shares outstanding as of June 30, 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 June 30, 2017 and 2016 . (3) Weighted average number of antidilutive Class B Units outstanding for the periods presented. There were 72,353 and 26,786 Class B Units outstanding as of June 30, 2017 and 2016 , respectively.

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,172 $ 104 $ — $ 2,276 $ 4,344 $ 209 $ — $ 4,553 Operating expense reimbursements 508 — — 508 1,299 — — 1,299 Resident services and fee income — — 669 669 — — 1,411 1,411 Total revenues 2,680 104 669 3,453 5,643 209 1,411 7,263 Property operating and maintenance 682 55 470 1,207 1,632 185 953 2,770 NOI $ 1,998 $ 49 $ 199 2,246 $ 4,011 $ 24 $ 458 4,493 Operating fees to related party (14 ) (27 ) Acquisition and transaction related (1,113 ) (1,159 ) General and administrative (743 ) (1,347 ) Depreciation and amortization (1,318 ) (2,635 ) Interest expense (46 ) (93 ) Interest and other income — — Income tax benefit/(expense) 29 (26 ) Net income attributable to non-controlling interests (4 ) (7 ) Net loss attributable to stockholders $ (963 ) $ (801 ) Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (In thousands) Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Medical Office Buildings Triple-Net Leased Healthcare Facilities Seniors Housing — Operating Properties Consolidated Revenues: Rental income $ 2,173 $ 104 $ — $ 2,277 $ 4,336 $ 209 $ — $ 4,545 Operating expense reimbursements 625 — — 625 1,251 — — 1,251 Resident services and fee income — — 709 709 — — 1,407 1,407 Total revenues 2,798 104 709 3,611 5,587 209 1,407 7,203 Property operating and maintenance 808 — 476 1,284 1,595 — 946 2,541 NOI $ 1,990 $ 104 $ 233 2,327 $ 3,992 $ 209 $ 461 4,662 Operating fees to related party (39 ) (79 ) Acquisition and transaction related (103 ) (133 ) General and administrative (545 ) (1,221 ) Depreciation and amortization (1,581 ) (3,158 ) Interest expense (47 ) (95 ) Interest and other income 1 1 Income tax benefit/(expense) (28 ) (73 ) Net income attributable to non-controlling interests (5 ) (9 ) Net loss attributable to stockholders $ (20 ) $ (105 ) The following table reconciles the segment activity to consolidated total assets as of the periods presented: June 30, December 31, (In thousands) 2017 2016 ASSETS Investments in real estate, net: Medical office buildings $ 104,409 $ 106,968 Triple-net leased healthcare facilities 4,471 4,554 Seniors housing — operating properties 10,067 10,213 Total investments in real estate, net 118,947 121,735 Cash 13,667 16,371 Restricted cash 88 37 Straight-line rent receivable 739 662 Prepaid expenses and other assets 734 1,242 Deferred costs, net 8 9 Total assets $ 134,183 $ 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 June 30, Six Months Ended June 30, (In thousands) 2017 2016 2017 2016 Medical office buildings $ — $ 39 $ — $ 39 Triple-net leased healthcare facilities — — — — Seniors housing — operating properties 37 — 44 61 Total capital expenditures $ 37 $ 39 $ 44 $ 100

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 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 July 1, 2017 — December 31, 2017 $ 52 2018 105 2019 106 2020 109 2021 116 Thereafter 3,325 Total $ 3,813

Organization (Narrative) (Detai

Organization (Narrative) (Details) $ / shares in Units, ft² in Millions	6 Months Ended		8 Months Ended	14 Months Ended
	Jun. 30, 2017ft²propertystate$ / sharesshares	Jun. 30, 2016property	Dec. 31, 2016USD ($)$ / sharesshares	Jun. 30, 2017USD ($)ft²state$ / sharesshares	Aug. 20, 2014USD ($)$ / sharesshares
Operations [Line Items]
Common stock, shares authorized (in shares)	300,000,000		300,000,000	300,000,000
Common stock, par value (in usd per share) | $ / shares	$ 0.01		$ 0.01	$ 0.01	$ 0.01
Common stock, shares outstanding (in shares)	6,956,304		6,978,303	6,956,304
Proceeds from issuance of common stock | $			$ 171,500,000	$ 171,100,000
Number of properties purchased | property	19	19
Number of states Company operates in | state	10			10
Area of real estate property | ft²	0.5			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)					26,300,000
Common stock, shares outstanding (in shares)	6,956,303		7,000,000	6,956,303
IPO
Operations [Line Items]
Common stock, shares authorized (in shares)					125,000,000
Stock available for issuance in public offering | $					$ 3,125,000,000

Purchase Agreement and Plan o34

Purchase Agreement and Plan of Liquidation (Details)	Jun. 16, 2017USD ($)	Jun. 30, 2017property	Jun. 30, 2016property
Business Acquisition [Line Items]
Number of properties purchased | property		19	19
Termination fee	$ 3,600,000
Reimburseable third party fees	750,000
Healthcare Trust Inc.
Business Acquisition [Line Items]
Purchase price	120,000,000
Escrow amount	$ 6,000,000
Installment period	14 months
Early termination fee cap	$ 200,000
Indemnifiable claims	$ 500,000
Indemnifiable claims, percentage of sales price, cap	10.00%
Termination fee for certain transaction-related expenses	$ 850,000

Real Estate Investments (Future

Real Estate Investments (Future Minimum Payments) (Details) $ in Thousands	Jun. 30, 2017USD ($)
Real Estate Investments, Net [Abstract]
July 1, 2017 — December 31, 2017	$ 4,480
2,018	8,750
2,019	8,300
2,020	7,827
2,021	6,431
Thereafter	18,846
Total	$ 54,634

Real Estate Investments (Geogra

Real Estate Investments (Geographic Concentrations) (Details) - Geographic Concentration Risk - Sales Revenue, Net	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Illinois
Concentration Risk [Line Items]
Concentration risk, percentage	42.10%	41.90%
Georgia
Concentration Risk [Line Items]
Concentration risk, percentage	11.80%	11.90%

Real Estate Investments (Schedu

Real Estate Investments (Schedule of Acquired Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Intangible assets:
Finite-lived intangible assets, gross	$ 18,450	$ 18,450
Finite-lived intangible assets, accumulated amortization	5,872	4,492
Finite-lived intangible assets, net	12,578	13,958
Intangible market lease liabilities
Below market lease, gross	1,722	1,722
Below market lease, accumulated amortization	244	179
Below market lease, net	1,478	1,543
Intangible liabilities, gross	1,901	1,902
Intangible liabilities, accumulated amortization	274	201
Intangible liabilities, net	1,627	1,701
In-place leases
Intangible assets:
Finite-lived intangible assets, gross	16,023	16,023
Finite-lived intangible assets, accumulated amortization	5,261	4,058
Finite-lived intangible assets, net	10,762	11,965
Above-market lease assets
Intangible assets:
Finite-lived intangible assets, gross	2,427	2,427
Finite-lived intangible assets, accumulated amortization	611	434
Finite-lived intangible assets, net	1,816	1,993
Above-market ground lease liabilities
Intangible market lease liabilities
Intangible liabilities, gross	179	180
Intangible liabilities, accumulated amortization	30	22
Intangible liabilities, net	$ 149	$ 158

Real Estate Investments (Summar

Real Estate Investments (Summary of Amortization and Accretion Recognized) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles			$ 103	$ 102
In-place leases | Depreciation and Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles	$ 602	$ 868	1,203	1,737
Above- and below-market leases | Rental Income
Finite-Lived Intangible Assets [Line Items]
Amortization (accretion) of above- and below-market leases, net	56	56	111	111
Above-market ground leases | Property Operating and Maintenance Expense
Finite-Lived Intangible Assets [Line Items]
Amortization of market lease and other intangibles	$ (4)	$ (4)	$ (8)	$ (8)

Real Estate Investments (Summ39

Real Estate Investments (Summary of Intangible Assets and Liabilities Future Amortization Expense) (Details) $ in Thousands	Jun. 30, 2017USD ($)
Amortization Expense
Finite-Lived Intangible Assets [Line Items]
Finite-lived lease amortization expense July 1, 2017 - December 31, 2017	$ 1,159
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 July 1, 2017 - December 31, 2017	1,159
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 July 1, 2017 - December 31, 2017	109
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 July 1, 2017 - December 31, 2017	175
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 July 1, 2017 - December 31, 2017	(66)
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 July 1, 2017 - December 31, 2017	8
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 July 1, 2017 - December 31, 2017	8
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

Real Estate Investments (Narrat

Real Estate Investments (Narrative) (Details) - property	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Real Estate [Abstract]
Number of properties purchased	19	19

Mortgage Notes Payable (Mortgag

Mortgage Notes Payable (Mortgage Notes) (Details) $ in Thousands	Jun. 30, 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	4,947
Deferred financing costs, net of accumulated amortization	(63)	$ (78)
Mortgage note payable, net of deferred financing costs	$ 4,884	4,919
Philip Professional Center - Lawrenceville, GA | Mortgages
Debt Instrument [Line Items]
Encumbered Properties | property	2
Outstanding loan amount	$ 4,947	$ 4,997
Effective Interest Rate	4.00%

Mortgage Notes Payable (Mortg42

Mortgage Notes Payable (Mortgage Principal Payments) (Details) - Mortgages $ in Thousands	Jun. 30, 2017USD ($)
Debt Instrument [Line Items]
July 1, 2017 — December 31, 2017	$ 50
2,018	104
2,019	4,793
2,020	0
2,021	0
Thereafter	0
Total Debt	$ 4,947

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Details) - Significant Unobservable Inputs Level 3 - Mortgages - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage note payable and mortgage premium, net	$ 5,039	$ 5,110
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage note payable and mortgage premium, net	$ 5,036	$ 5,085

Common Stock (Narrative) (Detai

Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 15, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 30, 2017	Jun. 29, 2016	Jan. 25, 2016
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)		6,956,304		6,956,304		6,978,303	6,956,304
Proceeds from issuance of common stock						$ 171,500	$ 171,100
Distributions declared per share (in usd per share)	$ 1.5624999935	$ 0.39	$ 0.39	$ 0.77	$ 0.78
Common stock issued through distribution reinvestment plan (in shares)				60,000
Common stock issued through distribution reinvestment plan				$ 1,437	$ 2,070
Short term trading fee				2.00%
Share repurchase limitation for calendar year before SRP Amendment				5.00%
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		$ 23.13			$ 23.13
Repurchase price as a percent of share price		92.50%		92.50%			92.50%
Two Years
Class of Stock [Line Items]
Share repurchase price (in dollars per share)		$ 23.75		$ 23.75			$ 23.75
Repurchase price as a percent of share price		95.00%		95.00%			95.00%
Three Years
Class of Stock [Line Items]
Repurchase price as a percent of share price		97.50%		97.50%			97.50%
Four Years
Class of Stock [Line Items]
Repurchase price as a percent of share price		100.00%		100.00%			100.00%
Common Stock
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)		6,956,303		6,956,303		7,000,000	6,956,303
DRIP share price (in usd per share)		$ 23.75		$ 23.75			$ 23.75
DRIP Share price as percent of estimated value of common stock		95.00%		95.00%			95.00%

Common Stock (Cumulative Share

Common Stock (Cumulative Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended		51 Months Ended	57 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 30, 2017
Equity [Abstract]
Number of shares repurchased (in shares)	83,604	82,494		1,021	83,515
Weighted-average price per share (in usd per share)	$ 22.77	$ 22.79		$ 24.97	$ 22.82
Common stock repurchases	$ 1,900	$ 1,880	$ 0
Share repurchases rejected (in shares)		181,389
Share repurchases rejected		$ 4,000
Share repurchases rejected share price (in usd per share)		$ 22.29

Related Party Transactions an46

Related Party Transactions and Arrangements (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Related Party Transaction [Line Items]
Common stock, shares outstanding (in shares)	6,956,304	6,978,303
Due to affiliate	$ 556	$ 271
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 an47

Related Party Transactions and Arrangements (Letter Agreement) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)shares
Letter Agreement
Related Party Transaction [Line Items]
Transaction amount	$ 3,680
Gross offering percentage benchmark	2.00%
Gross revenues percentage benchmark	1.00%
Units forfeited (in units) | shares	72,353
Timeframe within survival period	30 days
Potential expenses waived	$ 240
Expenses waived	24
Gross Proceeds in Excess of IPO
Related Party Transaction [Line Items]
Transaction amount	3,770
Excess O&O Amount
Related Party Transaction [Line Items]
Transaction amount	3,540
Disputed Amount
Related Party Transaction [Line Items]
Transaction amount	228
Excess Oversight Amount
Related Party Transaction [Line Items]
Transaction amount	141
Advisor | Certain Administrative Expenses
Related Party Transaction [Line Items]
Transaction amount	870
Monthly basis of transaction	$ 100

Related Party Transactions an48

Related Party Transactions and Arrangements (Fees Paid in Connection with the IPO) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Due to affiliate	$ 556	$ 271
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 an49

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended		8 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2017
Related Party Transaction [Line Items]
Share price, net (in dollars per share)	$ 22.50	$ 22.50
Advisor
Related Party Transaction [Line Items]
Shares approved for issuance (in shares)	16,863		26,431	72,353
American Realty Capital Healthcare III Advisors, LLC | Advisor
Related Party Transaction [Line Items]
Transaction amount	$ 300	$ 300
American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.50%	1.50%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%	0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	4.50%	4.50%
Quarterly asset management fee earned	0.1875%	0.1875%
American Realty Capital Healthcare III Advisors, LLC | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Acquisition fees as a percentage of benchmark	1.50%	1.50%
Reimbursed fees to related party, percentage of benchmark, expected third party acquisition costs	0.50%	0.50%
Total one-time operating fees earned by related party, percentage of benchmark, fee cap	4.50%	4.50%
American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price, All Assets Acquired | Advisor
Related Party Transaction [Line Items]
Acquisition fees and financing coordination fees, fee cap earned by related party, percentage of benchmark	2.00%	2.00%
American Realty Capital Healthcare III Advisors, LLC | Amount Available or Outstanding Under Financing Arrangement | Advisor
Related Party Transaction [Line Items]
Financing coordination fees	0.75%	0.75%
American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	1.50%	1.50%
American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties | Advisor
Related Party Transaction [Line Items]
Property management fees	2.50%	2.50%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Contract Purchase Price | Advisor
Related Party Transaction [Line Items]
Reimbursed legal fees to related party, percentage of benchmark	0.10%	0.10%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Advance on Loan or Other Investment | Advisor
Related Party Transaction [Line Items]
Reimbursed legal fees to related party, percentage of benchmark	0.10%	0.10%
Maximum | American Realty Capital Healthcare III Advisors, LLC | Gross Revenue, Managed Properties | Advisor
Related Party Transaction [Line Items]
Oversight fees earned by related party	1.00%	1.00%
Greater Of | Maximum | American Realty Capital Healthcare III Advisors, LLC | Average Invested Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	2.00%	2.00%
Greater Of | Maximum | American Realty Capital Healthcare III Advisors, LLC | Net Income, Excluding Additions to Non-cash Reserves and Gains on Sales of Assets | Advisor
Related Party Transaction [Line Items]
Operating expenses as a percentage of benchmark	25.00%	25.00%
Scenario, Forecast | American Realty Capital Healthcare III Advisors, LLC | Advisor
Related Party Transaction [Line Items]
Reimbursements payable amounts to be waived, per month					$ 100
Reimbursements payable amounts to be waived					$ 870

Related Party Transactions an50

Related Party Transactions and Arrangements (Fees Paid in Connection With the Operations of the Company, Incurred, Forgiven and Payable) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Total related party operating fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	$ 364	$ 139	$ 451	$ 250
Expenses forgiven	0	0	0	0
Payable (Receivable)	(129)		(129)		$ (98)
Property management fees
Related Party Transaction [Line Items]
Expenses incurred	14	39	27	79
Expenses forgiven	0	0	0	0
Payable (Receivable)	(129)		(129)		(129)
Professional fees and reimbursements
Related Party Transaction [Line Items]
Expenses incurred	325	91	380	158
Expenses forgiven	0	0	0	0
Payable (Receivable)	0		0		29
Distributions on Class B Units
Related Party Transaction [Line Items]
Expenses incurred	25	9	44	13
Expenses forgiven	0	$ 0	0	$ 0
Payable (Receivable)	$ 0		$ 0		$ 2

Related Party Transactions an51

Related Party Transactions and Arrangements (Fees Paid in Connection with a Listing or the Liquidation of the Company's Real Estate Assets) (Details)	Jun. 30, 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 18	$ 12
Restricted Share Plan | Unvested restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted automatically upon election to board of directors (in shares)	1,333		1,333
Vesting period			5 years
Periodic vesting percentage	20.00%		20.00%
Maximum authorized amount as a percentage of shares authorized			5.00%
Number of shares authorized (in shares)	6,300,000		6,300,000
Unrecognized compensation costs	$ 100		$ 100
Weighted average period of recognition			3 years 2 months 12 days
Share-based compensation	$ 9	$ 6
Allocated Share-based Compensation Expense			$ 18	$ 12

Equity-Based Compensation (Acti

Equity-Based Compensation (Activity) (Details) - Restricted Share Plan - Unvested restricted shares	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of Shares of Common Stock
Beginning Balance (in shares) | shares	6,398
Granted (in shares) | shares	0
Vested (in shares) | shares	(533)
Forfeitures (in shares) | shares	0
Ending Balance (in shares) | shares	5,865
Weighted-Average Issue Price
Beginning Balance, Weighted-Average Issue Price (usd per share) | $ / shares	$ 22.50
Granted, Weighted-Average Issue Price (usd per share) | $ / shares	0
Vested, Weighted-Average Issue Price (usd per share) | $ / shares	23
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) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Noncontrolling Interest [Line Items]
Distributions to non-controlling interest holders	$ 15	$ 15	$ 0
Advisor | American Realty Capital Healthcare III Advisors, LLC
Noncontrolling Interest [Line Items]
Units outstanding (in units)	90	90	90	90

Non-Controlling Interests (Inve

Non-Controlling Interests (Investment Agreements with Third Parties) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 456		$ 464
Net Real Estate Assets Subject to Investment Arrangement	118,947		121,735
Mortgage Notes Payable Subject to Investment Arrangement	4,884		4,919
Non-controlling Interests
Noncontrolling Interest [Line Items]
Distributions	15
UnityPoint Clinic - Muscatine
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 279
Noncontrolling ownership percentage	5.00%
Distributions	$ 9	$ 0
UnityPoint Clinic - Muscatine | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	5,673		5,790
Mortgage Notes Payable Subject to Investment Arrangement	0		0
UnityPoint Clinic - Moline
Noncontrolling Interest [Line Items]
Third Party Net Investment Amount	$ 177
Noncontrolling ownership percentage	5.00%
Distributions	$ 6	$ 0
UnityPoint Clinic - Moline | Non-controlling Interests
Noncontrolling Interest [Line Items]
Net Real Estate Assets Subject to Investment Arrangement	3,613		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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Computation of Basic Net Income (Loss) Per Share:
Net loss attributable to stockholders	$ (963)	$ (20)	$ (801)	$ (105)
Basic and diluted weighted-average shares outstanding (in shares)	6,948,904	6,857,978	6,947,752	6,831,842
Basic and diluted net loss per share (in usd per share)	$ (0.14)	$ (0.01)	$ (0.12)	$ (0.02)

Net Income (Loss) Per Share (An

Net Income (Loss) Per Share (Antidilutive Securities) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 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)	71,747	28,091	63,665	21,763
Class B units outstanding (in shares)	72,353	26,786	72,353	26,786
Unvested restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	6,346	4,752	6,372	4,775
OP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	90	90	90	90
Class B Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	65,311	23,249	57,203	16,898
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	90	90
Unvested restricted shares | Restricted Share Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unvested shares outstanding (in shares)	5,865	4,266	5,865	4,266	6,398

Segment Reporting (Reconciliati

Segment Reporting (Reconciliation of Segment Activity) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)segment	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment		3	3
Revenues:
Rental income	$ 2,276	$ 2,277	$ 4,553	$ 4,545
Operating expense reimbursements	508	625	1,299	1,251
Resident services and fee income	669	709	1,411	1,407
Total revenues	3,453	3,611	7,263	7,203
Property operating and maintenance	1,207	1,284	2,770	2,541
NOI	2,246	2,327	4,493	4,662
Operating fees to related party	(14)	(39)	(27)	(79)
Acquisition and transaction related	(1,113)	(103)	(1,159)	(133)
General and administrative	(743)	(545)	(1,347)	(1,221)
Depreciation and amortization	(1,318)	(1,581)	(2,635)	(3,158)
Interest expense	(46)	(47)	(93)	(95)
Interest and other income	0	1	0	1
Income tax benefit/(expense)	29	(28)	(26)	(73)
Net income attributable to non-controlling interests	(4)	(5)	(7)	(9)
Net loss attributable to stockholders	(963)	(20)	(801)	(105)
Medical Office Buildings
Revenues:
Rental income	2,172	2,173	4,344	4,336
Operating expense reimbursements	508	625	1,299	1,251
Resident services and fee income	0	0	0	0
Total revenues	2,680	2,798	5,643	5,587
Property operating and maintenance	682	808	1,632	1,595
NOI	1,998	1,990	4,011	3,992
Triple-Net Leased Healthcare Facilities
Revenues:
Rental income	104	104	209	209
Operating expense reimbursements	0	0	0	0
Resident services and fee income	0	0	0	0
Total revenues	104	104	209	209
Property operating and maintenance	55	0	185	0
NOI	49	104	24	209
Seniors Housing Communities
Revenues:
Rental income	0	0	0	0
Operating expense reimbursements	0	0	0	0
Resident services and fee income	669	709	1,411	1,407
Total revenues	669	709	1,411	1,407
Property operating and maintenance	470	476	953	946
NOI	$ 199	$ 233	$ 458	$ 461

Segment Reporting (Reconcilia59

Segment Reporting (Reconciliation of Segment Activity to Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 118,947	$ 121,735
Cash	13,667	16,371	$ 16,760	$ 16,808
Restricted cash	88	37
Straight-line rent receivable	739	662
Prepaid expenses and other assets (including $129 due from related parties as of June 30, 2017 and December 31, 2016)	734	1,242
Deferred costs, net	8	9
Total assets	134,183	140,056
Medical Office Buildings
Segment Reporting Information [Line Items]
Investments in real estate, net	104,409	106,968
Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Investments in real estate, net	4,471	4,554
Seniors Housing Communities
Segment Reporting Information [Line Items]
Investments in real estate, net	$ 10,067	$ 10,213

Segment Reporting (Summary of C

Segment Reporting (Summary of Capital Expenditures) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Total capital expenditures	$ 37	$ 39	$ 44	$ 100
Medical Office Buildings
Segment Reporting Information [Line Items]
Total capital expenditures	0	39	0	39
Triple-Net Leased Healthcare Facilities
Segment Reporting Information [Line Items]
Total capital expenditures	0	0	0	0
Seniors Housing Communities
Segment Reporting Information [Line Items]
Total capital expenditures	$ 37	$ 0	$ 44	$ 61

Commitments and Contingencies61

Commitments and Contingencies (Summary of Operating Lease Agreements) (Details) $ in Thousands	Jun. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
July 1, 2017 — December 31, 2017	$ 52
2,018	105
2,019	106
2,020	109
2,021	116
Thereafter	3,325
Total	$ 3,813

Commitments and Contingencies62

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 34	$ 67	$ 67	$ 100

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details)	Jul. 18, 2017$ / shares
Subsequent Event
Subsequent Event [Line Items]
Estimated per-share NAV (in dollars per share)	$ 17.64