10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________

FORM 10-Q

_______________________________________

(Mark One)

☒QuarterlyReportPursuanttoSection 13or15(d) oftheSecuritiesExchangeActof1934

For the quarterly period ended September 30, 2015

Or

☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from  to  .

Commission File No. 000-52596

_______________________________________

DIVIDENDCAPITALDIVERSIFIEDPROPERTYFUNDINC.

(Exact name of registrant as specified in its charter)

_______________________________________

Maryland	30-0309068
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
518 Seventeenth Street, 17th Floor Denver, CO	80202
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (303) 228-2200

_______________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒ (Do not check if a smaller reporting company)	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No   ☒

As of November 5, 2015, 139,995,543 unclassified shares of common stock (referred to as “Class E” shares), 1,517,286 shares of Class A common stock, 1,506,484shares of Class W common stock, and22,981,923shares of Class I common stock of Dividend Capital Diversified Property Fund Inc., each with a par value $0.01 per share, were outstanding.

Dividend Capital Diversified Property Fund Inc.

Form 10-Q

September 30, 2015

TABLE OF CONTENTS

P
	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets	3
Condensed Consolidated Statements of Operations	4
Condensed Consolidated Statements of Comprehensive Income and Loss	5
Condensed Consolidated Statement of Equity	6
Condensed Consolidated Statements of Cash Flows	7
Notes to Condensed Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures About Market Risk	44
Item 4. Controls and Procedures	44
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	45
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3. Defaults Upon Senior Securities	46
Item 4. Mine Safety Disclosures	46
Item 5. Other Information	46
Item 6. Exhibits	47

PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and footnoted information)

	As of
	September 30, 2015		December 31, 2014
	(Unaudited)
ASSETS
Investments in real property	$	2,270,746	$	2,442,509
Accumulated depreciation and amortization		(489,395)		(513,083)
Total net investments in real property (1)		1,781,351		1,929,426
Debt related investments, net		27,775		94,951
Total net investments		1,809,126		2,024,377
Cash and cash equivalents		15,186		14,461
Restricted cash		20,258		27,452
Other assets, net		46,250		59,916
Assets held for sale		—		21,927
Total Assets	$	1,890,820	$	2,148,133
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses	$	51,056	$	49,974
Mortgage notes and other secured borrowings (2)		543,947		853,267
Unsecured borrowings		459,000		345,000
Intangible lease liabilities, net		58,649		86,243
Other liabilities		33,073		47,789
Liabilities associated with assets held for sale		—		1,880
Total Liabilities		1,145,725		1,384,153
Equity:
Stockholders’ equity:
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 165,043,370 and 178,399,679shares issued and outstanding, as of September 30, 2015 and    December 31, 2014, respectively (3)		1,650		1,784
Additional paid-in capital		1,479,403		1,586,444
Distributions in excess of earnings		(818,531)		(893,791)
Accumulated other comprehensive loss		(14,985)		(10,120)
Total stockholders’ equity		647,537		684,317
Noncontrolling interests		97,558		79,663
Total Equity		745,095		763,980
Total Liabilities and Equity	$	1,890,820	$	2,148,133

__________________

(1) Includes approximately $76.3 million and $82.7 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

(2) Includes approximately $58.5 millionand $59.4 million in consolidated mortgage notes in variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

(3) Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stockissued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share and footnoted information)

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
REVENUE:
Rental revenue	$	52,854	$	56,793	$	163,308	$	166,933
Debt related income		807		1,798		5,594		5,571
Total Revenue		53,661		58,591		168,902		172,504
EXPENSES:
Rental expense		14,877		12,804		43,412		37,947
Real estate depreciation and amortization    expense		20,851		21,918		61,404		66,481
General and administrative expenses (1)		2,477		2,581		8,157		8,187
Advisory fees, related party		4,225		4,083		13,021		11,678
Acquisition-related expenses		476		372		1,259		962
Impairment of real estate property (2)		6,500		9,500		8,124		9,500
Total Operating Expenses		49,406		51,258		135,377		134,755
Other Income (Expenses):
Interest and other income		704		424		1,500		688
Interest expense		(10,951)		(15,276)		(36,208)		(46,549)
Loss on extinguishment of debt and financing    commitments		—		—		(1,168)		(63)
Gain on sale of real property (3)		4,567		—		133,234		6,462
(Loss) income from continuing operations		(1,425)		(7,519)		130,883		(1,713)
Discontinued operations (4)		—		5		—		30,005
Net (Loss) Income		(1,425)		(7,514)		130,883		28,292
Net loss (income) attributable to    noncontrolling interests		1,297		475		(7,358)		(4,405)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(128)	$	(7,039)	$	123,525	$	23,887
Net (loss) income per basic and diluted common share:
Continuing operations	$	(0.00)	$	(0.04)	$	0.69	$	(0.01)
Discontinued operations	$	—	$	0.00	$	—	$	0.14
NET (LOSS) INCOME PER BASIC AND DILUTED COMMON SHARE	$	(0.00)	$	(0.04)	$	0.69	$	0.13
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic		174,290		178,729		179,168		177,717
Diluted		187,279		191,422		192,020		190,605
Distributions declared per common share	$	0.0895	$	0.0872	$	0.2688	$	0.2620

__________________

(1) Includes approximately $1.8 million and $1.6 million paid to our Advisor and its affiliates for reimbursable expenses during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.3 million and $4.8 million paid to our Advisor and its affiliates for reimbursable expenses during the nine months ended September 30, 2015 and 2014, respectively.

(2) Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

(3) Includes approximately $201,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended September 30, 2015, andapproximately $4.6 million and $328,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015 and 2014, respectively.

(4) Includes approximately  $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS

(Unaudited)

(In thousands)

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Net (Loss) Income	$	(1,425)	$	(7,514)	$	130,883	$	28,292
Other Comprehensive (Loss) Income:
Net unrealized change from available-for-sale    securities		—		—		—		(211)
Unrealized change from cash flow hedging    derivatives		(6,016)		1,160		(5,251)		1,389
Comprehensive (loss) income		(7,441)		(6,354)		125,632		29,470
Comprehensive loss (income) attributable to    noncontrolling interests		1,732		472		(6,972)		(4,304)
COMPREHENSIVE (LOSS) INCOME    ATTRIBUTABLE TO COMMON    STOCKHOLDERS	$	(5,709)	$	(5,882)	$	118,660	$	25,166

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

(In thousands)

	Stockholders’ Equity
								Accumulated
				Additional		Distributions		Other
	Common Stock			Paid-in		in Excess of		Comprehensive		Noncontrolling		Total
	Shares	Amount		Capital		Earnings		(Loss) Income		Interests		Equity
Balances, December 31, 2014	178,400	$	1,784	$	1,586,444	$	(893,791)	$	(10,120)	$	79,663	$	763,980
Comprehensive income (loss):
Net income	—		—		—		123,525		—		7,358		130,883
Unrealized change from cash flow    hedging derivatives	—		—		—		—		(4,889)		(362)		(5,251)
Common stock:
Issuance of common stock, net of    offering costs	11,939		119		81,490		—		—		—		81,609
Issuance of common stock,     stock-based compensation plans	618		6		942		—		—		—		948
Redemptions of common stock	(25,914)		(259)		(189,350)		—		—		—		(189,609)
Amortization of stock-based     compensation	—		—		24		—		—		—		24
Distributions declared on common     stock	—		—		—		(48,265)		—		—		(48,265)
Noncontrolling interests:
Contributions of noncontrolling    interests	—		—		—		—		—		16,517		16,517
Distributions declared to    noncontrolling interests	—		—		—		—		—		(3,508)		(3,508)
Redemptions of noncontrolling    interests	—		—		(147)		—		24		(2,110)		(2,233)
Balances, September 30, 2015	165,043	$	1,650	$	1,479,403	$	(818,531)	$	(14,985)	$	97,558	$	745,095

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	For the Nine Months Ended  September 30,
	2015		2014
OPERATING ACTIVITIES:
Net income	$	130,883	$	28,292
Adjustments to reconcile net income to net cash provided by operating activities:
Real estate depreciation and amortization expense		61,404		66,481
Gain on disposition of real property		(133,234)		(36,140)
Impairment of real estate property		8,124		9,500
Collection of accrued interest from debt investment		6,421		—
Loss on extinguishment of debt and financing commitments		1,168		63
Other adjustments to reconcile net income to net cash provided by operating    activities		3,016		7,286
Changes in operating assets and liabilities		119		(12,616)
Net cash provided by operating activities		77,901		62,866
INVESTING ACTIVITIES:
Acquisition of real property		(200,447)		(86,346)
Capital expenditures in real property		(22,043)		(10,176)
Proceeds from disposition of real property		342,157		96,602
Principal collections on debt related investments		52,945		23,688
Other investing activities		(4,931)		(1,146)
Net cash provided by investing activities		167,681		22,622
FINANCING ACTIVITIES:
Mortgage note principal repayments		(110,405)		(49,133)
Defeasance of mortgage note borrowings		(53,267)		—
Net proceeds from revolving line of credit borrowings		34,000		17,500
Net proceeds from term loan		80,000		—
Repayment of other secured borrowings		(25,796)		(844)
Redemption of common shares		(190,019)		(65,087)
Distributions on common stock		(32,080)		(30,913)
Proceeds from sale of common stock		68,851		66,041
Offering costs for issuance of common stock		(3,487)		(3,836)
Distributions to noncontrolling interest holders		(3,394)		(8,391)
Other financing activities		(9,260)		(7,789)
Net cash used in financing activities		(244,857)		(82,452)
NET INCREASE IN CASH AND CASH EQUIVALENTS		725		3,036
CASH AND CASH EQUIVALENTS, beginning of period		14,461		24,778
CASH AND CASH EQUIVALENTS, end of period	$	15,186	$	27,814
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	$	34,486	$	43,299
Supplemental Disclosure of Noncash Investing and Financing Activities:
Common stock issued pursuant to the distribution reinvestment plan	$	16,090	$	15,578
Issuances of OP Units for beneficial interests	$	7,324	$	—
Assumed mortgage	$	11,869	$	—
Non-cash investment in real property	$	11,869	$	12,232
Non-cash principal collection on debt related investments *	$	11,228	$	7,125
Non-cash disposition of real property *	$	128,008	$	94,011
Non-cash repayment of mortgage note and other secured borrowings *	$	139,236	$	101,807

__________________

*  Represents the amount of sales proceeds and debt repayments from the disposition of real property or the repayment of borrowings that we did not receive or pay in cash, primarily due to the repayment or assumption of related borrowings by the purchaser or borrower at closing.

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2015

(Unaudited)

1. ORGANIZATION

Dividend Capital Diversified Property Fund Inc. is a Maryland corporation formed on April 11, 2005 to invest in a diverse portfolio of real property and real estate related investments. As used herein, “the Company,” “we,” “our” and “us” refer to Dividend Capital Diversified Property Fund Inc. and its consolidated subsidiaries and partnerships except where the context otherwise requires.

We operate in such a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and we utilize an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through our operating partnership, Dividend Capital Total Realty Operating Partnership, L.P. (our “Operating Partnership”).

We are the sole general partner of our Operating Partnership. In addition, we have contributed 100% of the proceeds received from our offerings of common stock to our Operating Partnership in exchange for partnership units (“OP Units”) representing our interest as a limited partner of the Operating Partnership. As of September 30, 2015 and December 31, 2014, we owned approximately 92.5% and 93.6%, respectively, of the limited partnership interests in our Operating Partnership, and the remaining limited partnership interests in our Operating Partnership were owned by third-party investors. Our Operating Partnership has classes of OP Units that correspond to our four classes of common stock: Class E OP Units, Class A OP Units, Class W OP Units, and Class I OP Units. As of September 30, 2015 and December 31, 2014, our Operating Partnership had issued and outstanding approximately 12.9 million and 12.1 million Class E OP Units held by third party investors, respectively, which represent limited partnership interests issued in connection with its private placement offerings. As of September 30, 2015 and December 31, 2014, such Class E OP Units had a maximum approximate redemption value of $95.4 million and $87.0 million, respectively, based on the most recent selling price of our common stock pursuant to our primary offering. Furthermore, during the nine months ended September 30, 2015, we exercised our option to acquire, at fair value, previously sold fractional interests in a retail property in the Jacksonville, FL market for a combination of (i) approximately 1.0 million Class E OP Units issued at a price of $7.18 per OP Unit, representing approximately $7.3 million of the aggregate purchase price and (ii) approximately $783,000 in cash. The result of this activity was a net decrease in our financing obligations of approximately $17.9 million and a net increase in our noncontrolling interests of $16.2 million.

Dividend Capital Total Advisors LLC (our “Advisor”), a related party, manages our day-to-day activities under the terms and conditions of an advisory agreement (as amended from time to time, the “Advisory Agreement”). Our Advisor and its affiliates receive various forms of compensation, reimbursements and fees for services relating to the investment and management of our real estate assets.

On July 12, 2012, the Securities and Exchange Commission (the “Commission”) declared effective our Registration Statement on Form S-11 (Registration Number 333-175989) (as amended, the “Prior Registration Statement”). The Prior Registration Statement applied to the offer and sale (the “Prior Offering”) of up to $3,000,000,000 of our shares of common stock, of which $2,250,000,000 of shares were expected to be offered to the public in a primary offering and $750,000,000 of shares were expected to be offered to our stockholders pursuant to an amended and restated distribution reinvestment plan (subject to our right to reallocate such amounts). In the Prior Offering, we offered to the public three classes of shares: Class A shares, Class W shares and Class I shares with net asset value (“NAV”) based pricing.  On September 15, 2015, we terminated the Prior Offering.  Through September 15, 2015, the date our Prior Offering terminated, we had raised gross proceeds of approximately $183.1 million from the sale of approximately 25.8 million shares in the Prior Offering, including approximately $3.4 million through our distribution reinvestment plan.

On September 16, 2015, the Commission declared effective our Registration Statement on Form S-11 (Registration Number 333-197767) (the “Follow-On Registration Statement”). The Follow-On Registration Statement applies to the Company’s follow-on “best efforts” offering of up to $1,000,000,000 of the Company’s Class A, Class I and Class W shares of common stock, of which $750,000,000 of shares are expected to be offered to the public in a primary offering and $250,000,000 of shares are expected to be offered to stockholders of the Company pursuant to its distribution reinvestment plan (subject to the Company’s right to reallocate such amounts) (the “Follow-On Offering”). As of September 30, 2015, we had raised gross proceeds of approximately $389,000 from the sale of approximately 52,000 shares in the Follow-On Offering.

During the nine months ended September 30, 2015, we raised aggregate gross proceeds of approximately $87.1 million from the sale of approximately 11.9 million shares, including approximately $16.1 million raised through our distribution reinvestment plans.

8

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements

The accompanying interim condensed consolidated financial statements (herein referred to as “financial statements,” “balance sheets,” “statements of operations,” “statements of comprehensive income and loss,” “statement of equity,” or “statements of cash flows”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, these financial statements do not include all the information and disclosure required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 3, 2015. There have been no significant changes to the Company’s significant accounting policies during the nine months endedSeptember 30, 2015 other than the updates described below.

Reclassifications

Certain amounts included in the accompanying financial statements for 2014 have been reclassified to conform to the 2015 financial statements presentation with no effect on previously reported net income (loss) or equity. We reclassified approximately $157,000 and $496,000 in third-party payments related to efforts to acquire real properties that were not ultimately completed (“terminated acquisition costs”) incurred during the three and nine months ended September 30, 2014, respectively, from “general and administrative expenses” into “acquisition-related expenses”. We have also reclassified approximately $181,000 in terminated acquisition costs incurred during the six months ended June 30, 2015, from general and administrative expenses into acquisition related expenses.

Statements of operations amounts for properties disposed of or classified as held for sale as of December 31, 2013, have been reclassified to discontinued operations for all periods presented during 2014. Amounts in our segment disclosures in Note 11 reflect the reclassification of amounts related to properties that have been disposed of or classified as held for sale as of December 31, 2013.

New Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2015-16 (“ASU 2015-16”), which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The guidance eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, the guidance requires that an acquirer recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. We do not anticipate the adoption will have a significant impact on our financial statements.

The FASB issued Accounting Standards Update 2015-15 (“ASU 2015-15”) and Accounting Standards Update 2015-03 (“ASU 2015-03”) in August 2015 and April 2015, respectively, which simplify the presentation of debt issuance costs and clarify the guidance for presenting and measuring debt issuance costs related to line-of-credit arrangements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-15 permits an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The recognition and measurement guidance for debt issuance costs is not affected by the guidance. Both ASU 2015-03 and ASU 2015-15 are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015 and will require retrospective application. Early adoption is permitted for financial statements that have not been previously issued. We do not anticipate the adoption will have a significant impact on our financial statements.

In June 2015, the FASB issued Accounting Standards Update 2015-10 (“ASU 2015-10”), which (i) made technical corrections and improvements to ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”), which became effective upon the issuance of ASU 2015-10, and (ii) made technical corrections and improvements to ASC Topic 820, Fair Value Measurement and Disclosures (“ASC Topic 820”), which is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015, with early adoption permitted, including adoption in an interim period. We do not anticipate the adoption will have a significant impact on our financial statements.

9

In May 2014, the FASB issued Accounting Standards Update 2014-09 (“ASU 2014-09”), which provides new guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity 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. Additionally, this guidance expands related disclosure requirements. The new guidance specifically excludes revenue associated with lease contracts. In June 2015, the FASB agreed to defer the effective date of this guidance for a year from the original effective date outlined in ASU 2014-09, and as a result, the guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017 and will require full or modified retrospective application. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. We do not anticipate the adoption will have a significant impact on our financial statements.

3. INVESTMENTS IN REAL PROPERTY

Currently, our consolidated investments in real property consist of investments in office, industrial and retail properties. The following tables summarize our consolidated investments in real property as of September 30, 2015 and December 31, 2014 (amounts in thousands):

Real Property	Land		Building and Improvements		Intangible Lease Assets		Total Investment Amount		Intangible Lease Liabilities		Net Investment Amount
As of September 30, 2015:
Office	$	204,700	$	815,933	$	308,614	$	1,329,247	$	(18,414)	$	1,310,833
Industrial		9,572		65,153		16,436		91,161		(344)		90,817
Retail		252,310		502,817		95,211		850,338		(68,398)		781,940
Total gross book value		466,582		1,383,903		420,261		2,270,746		(87,156)		2,183,590
Accumulated    depreciation/amortization		—		(193,467)		(295,928)		(489,395)		28,507		(460,888)
Total net book value	$	466,582	$	1,190,436	$	124,333	$	1,781,351	$	(58,649)	$	1,722,702
As of December 31, 2014:
Office (1)	$	238,505	$	818,659	$	359,057	$	1,416,221	$	(21,535)	$	1,394,686
Industrial		25,502		193,878		48,421		267,801		(41,011)		226,790
Retail		237,605		464,479		86,820		788,904		(62,292)		726,612
Total gross book value		501,612		1,477,016		494,298		2,472,926		(124,838)		2,348,088
Accumulated    depreciation/amortization		—		(204,165)		(319,081)		(523,246)		38,595		(484,651)
Total net book value	$	501,612	$	1,272,851	$	175,217	$	1,949,680	$	(86,243)	$	1,863,437

__________________

(1) Includes $4.1 million in land, $19.3 million in building and improvements, and $7.0 million in intangible lease assets before accumulated depreciation of $10.2 million, related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

Acquisitions

The following table summarizes our acquisitions of real properties during the nine months ended September 30, 2015 (dollar amounts and square footage in thousands):

Real Property	Property Type	Market	Number of Properties	Date of Acquisition	Acquired Ownership	Contract Price		Net Rentable Square Feet	Percent Leased
Venture Corporate Center	Office	South Florida	1	August 6, 2015	100%	$	45,750	253	97%
Shenandoah	Retail	South Florida	1	August 6, 2015	100%		32,670	124	100%
City View	Office	Austin, TX	1	April 24, 2015	100%		68,750	274	99%
South Cape	Retail	Greater Boston (1)	1	March 18, 2015	100%		35,450	143	92%
Rialto	Office	Austin, TX	1	January 15, 2015	100%		37,300	155	94%
Total 2015 real    property    acquisitions			5			$	219,920	949	97%

__________________

(1) Our Greater Boston market comprises the greater metro area around Boston, MA. As of September 30, 2015, properties in our Greater Boston market are located in the following states: Massachusetts, Connecticut, New Hampshire, and Rhode Island.

The following table summarizes the allocations of the fair value of the real properties we acquired during the nine months ended September 30, 2015 to land, building and improvements, intangible lease assets, intangible lease liabilities, and mark-to-

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market adjustment on assumed debt (dollar amounts in thousands). We have not made any material adjustments related to these allocations.

																	Weighted-average Amortization Period (Years)
Real Property	Land		Building and Improvements		Intangible Lease Assets		Intangible Lease Liabilities		Mark-to-Market Adjustment on Assumed Debt		Total Fair Value		Prorations and Credits		Contract Price		Intangible Lease Assets	Intangible Lease Liabilities
Venture Corporate Center	$	12,047	$	22,183	$	11,968	$	(798)	$	—	$	45,400	$	350	$	45,750	6.3	6.1
Shenandoah		10,501		22,959		4,438		(4,294)		(934)		32,670		—		32,670	13.0	18.9
City View		4,606		55,868		9,382		(1,543)		—		68,313		437		68,750	4.5	3.9
South Cape		9,936		22,877		4,675		(2,038)		—		35,450		—		35,450	7.9	23.8
Rialto		5,094		26,740		5,751		(447)		—		37,138		162		37,300	5.2	2.7
Total 2015 real     property     acquisitions	$	42,184	$	150,627	$	36,214	$	(9,120)	$	(934)	$	218,971	$	949	$	219,920	6.7	15.6

For the three and nine months ended September 30, 2015, our consolidated statements of operations include aggregate revenue and net operating income (“NOI”) attributable to the real properties acquired during the nine months ended September 30, 2015 as shown in the table below (amounts in thousands):

	For the Three Months Ended September 30, 2015				For the Nine Months Ended  September 30, 2015
	Revenue		NOI (1)		Revenue		NOI (1)
Real Property
Venture Corporate Center	$	1,123	$	726	$	1,123	$	726
Shenandoah		458		342		458		342
City View		2,136		1,355		3,684		2,383
South Cape		882		684		1,931		1,496
Rialto		1,168		654		3,236		1,908
Total	$	5,767	$	3,761	$	10,432	$	6,855

__________________

(1) For a discussion as to why we view NOI to be an appropriate supplemental performance measure and a reconciliation to GAAP net income, refer to Note 11. 

Dispositions

On March 11, 2015, we completed the sale of a portfolio of twelve wholly owned office and industrial properties comprising approximately 2.7 million net rentable square feet (the “Portfolio”) to an unrelated third party, for a gross sales price of approximately $398.6 million. We incurred closing costs and fees of approximately $7.8 million upon the closing of this transaction, including approximately $4.0 million in advisory fees related to the disposition of real property paid to our Advisor. See Note 5 for information regarding financing related to the disposition of the Portfolio.

During the nine months ended September 30, 2015, we disposed of the following properties (dollar amounts and square footage in thousands):

Property Type	Market	Ownership	Net Rentable Square Feet	Percentage Leased	Disposition Date	Contract Sales Price		Gain on Sale
Land Parcel	Denver, CO	100%	N/A	N/A	August 12, 2015	$	7,577	$	1,701
Office	Los Angeles, CA	100%	111	0%	July 20, 2015		12,549		2,866
Retail	Pittsburgh, PA	100%	103	93%	May 5, 2015		12,500		—
Office and Industrial Portfolio (1)	Various (1)	100%	2,669	100%	March 11, 2015		398,635		105,542
Office	Dallas, TX	100%	177	88%	January 16, 2015		46,600		23,125
Total 2015 real property dispositions			3,060	95%		$	477,861	$	133,234

__________________

(1) The Portfolio includes (i) six office properties comprising 1.1 million net rentable square feet located in the following markets: Los Angeles, CA (three properties, of which one disposed property was a single building from a two-building office property), Northern New Jersey, Miami, FL, and Dallas, TX, and (ii) six industrial properties comprising 1.6 million net rentable square feet located in the following markets: Los Angeles, CA, Dallas, TX, Cleveland, OH, Chicago, IL, Houston, TX, and Denver, CO.

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For the nine months ended September 30, 2015, our consolidated statements of operations include approximately $6.2 million of aggregate revenue and approximately $6.1 million of NOI attributable to the Portfolio. For the three and nine months ended September 30, 2014, our consolidated statements of operations include approximately $8.5 million and $25.4 million of aggregate revenue, respectively, and approximately $8.4 million and $25.0 million of NOI, respectively, attributable to the Portfolio.

Assets Held for Sale

We did not have any assets or related liabilities classified as held for sale as of September 30, 2015. As of December 31, 2014, we had agreed to dispose of an office property to an unrelated third party. Accordingly, the assets and liabilities related to this property were classified as held for sale in the accompanying balance sheet as of December 31, 2014. We sold the property on January 16, 2015. The following table summarizes the carrying amounts of the major classes of assets and liabilities classified as held for sale as of December 31, 2014 (amounts in thousands):

	As of December 31, 2014
Land	$	4,075
Building and improvements		19,337
Intangible lease assets		7,005
Accumulated depreciation		(10,163)
Other assets, net		1,673
Assets held for sale	$	21,927
Other liabilities		1,880
Liabilities related to assets held for sale	$	1,880

Real Property Impairment

During the nine months ended September 30, 2015, we recorded approximately $1.6 million of impairment charges related to a wholly owned retail property that we acquired in May 2007 in the Pittsburgh, PA market, which was disposed of in May 2015. Prior to the disposition, the net book value of this retail property exceeded the contract sales price less the cost to sell by approximately $1.6 million. Accordingly, we recorded an impairment to reduce the net book value of the property to our estimate of its fair value less the cost to sell.

In addition, during the three months ended September 30, 2015, we recorded a $6.5 million impairment charge related to a consolidated office property located in the Chicago, IL market, which we acquired in February 2007 and we hold through a joint venture in which we are not the managing partner. We have an 80% ownership interest in the office property. As of September 30, 2015, the net book value of this office property exceeded our estimate of the fair value of the property less the cost to sell by $6.5 million. Accordingly, we recorded an impairment charge to reduce the net book value of the property to our estimate of its fair value less the cost to sell.

In the calculation of our NAV, our real estate assets are carried at fair value using valuation methodologies consistent with ASC Topic 820, Fair Value Measurements and Disclosures. As a result, the timing of valuation changes recorded in our NAV will not necessarily be the same as for impairment charges recorded to our financial statements prepared pursuant to GAAP.

Discontinued Operations

We present the results of operations and the respective aggregate net gains (losses), of (i) any property or group of properties that were disposed or classified as held for sale as of December 31, 2013 when the operations and cash flows have been (or will be) eliminated from our ongoing operations and we will not have any significant continuing involvement, and (ii) any property or group of properties, the disposal of which would represent a strategic shift that has (or will have) a major effect on our operations and financial results, when such property (or group of properties) have been disposed of or classified as held for sale, as discontinued operations in our accompanying statements of operations. Interest expense is included in discontinued operations only if it is directly attributable to these operations or properties. Discontinued operations for the three and nine months ended September 30, 2014 include the results of operations and net gain on the disposition of 12 properties classified as held for sale as of December 31, 2013. Properties sold or classified as held for sale after December 31, 2013 are not classified as discontinued operations unless the sale or classification as held for sale meets the new accounting requirements pursuant to Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, issued by the FASB in April 2014. We did not have any discontinued operations for the three and nine months ended September 30, 2015. Certain negligible amounts recorded as discontinued operations for the three months ended September 30, 2014 are not presented in the table below. The following table summarizes amounts recorded as discontinued operations for the nine months ended September 30, 2014 (amounts in thousands):

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	For the  Nine Months Ended September 30, 2014
Revenues	$	969
Rental expense		(340)
Interest expense		(296)
Other expenses		(7)
Income from discontinued operations		326
Gain on disposition		29,679
Discontinued operations		30,005
Discontinued operations attributable to noncontrolling interests		(4,462)
Discontinued operations attributable to common stockholders	$	25,543

We did not record any capital expenditures related to our discontinued operations during the three or nine months ended September 30, 2014. We did not record any significant operating or investing noncash items related to our discontinued operations during the three months ended September 30, 2014. The following table summarizes significant operating and investing noncash items related to our discontinued operations for the nine months ended September 30, 2014 (amounts in thousands):

	For the  Nine Months Ended September 30, 2014
Noncash items:
Straight-line rent adjustments	$	(41)
Non-cash disposition of real property		80,361

Rental Revenue

The following table summarizes the adjustments to rental revenue related to the amortization of above-market lease assets, below-market lease liabilities, and straight-line rental adjustments for the three and nine months ended September 30, 2015 and 2014. In addition, the following table summarizes tenant recovery income received from tenants for real estate taxes, insurance and other property operating expenses and recognized as rental revenue (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Straight-line rent adjustments	$	(286)	$	1,150	$	(684)	$	2,939
Above-market lease assets		(1,307)		(1,673)		(3,923)		(5,110)
Below-market lease liabilities		1,437		1,797		4,539		5,190
Total (decrease) increase to rental revenue	$	(156)	$	1,274	$	(68)	$	3,019
Tenant recovery income(1)	$	9,293	$	7,862	$	28,031	$	23,745

__________________

(1) Tenant recovery income presented in this table excludes real estate taxes that were paid directly by our tenants that are subject to triple net lease contracts. Such payments totaled approximately $1.4 million and $3.1 million during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.5 million and $9.3 million during the nine months ended September 30, 2015 and 2014, respectively.

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Concentration of Credit Risk

Concentration of credit risk with respect to our sources of revenue currently exists due to a small number of tenants whose rental payments to us make up a relatively high percentage of our rental revenue. The following is a summary of amounts related to the top five tenants based on annualized base rent, as of September 30, 2015 (dollar amounts and square feet in thousands):

Tenant	Locations	Industry	Annualized Base Rent (1)		% of Total Annualized Base Rent		Square Feet	% of Total Portfolio Square Feet
Charles Schwab & Co., Inc.	1	Securities, Commodities, Fin. Inv./Rel. Activities	$	23,223		13.2%	594	6.9%
Sybase	1	Publishing Information (except Internet)		17,971		10.2%	405	4.7%
Northrop Grumman	1	Professional, Scientific and Technical Services		15,901		9.1%	575	6.6%
Stop & Shop	16	Food and Beverage Stores		14,983		8.5%	911	10.5%
Novo Nordisk	1	Chemical Manufacturing		4,536		2.6%	167	1.9%
	20		$	76,614		43.6%	2,652	30.6%

__________________

(1) Annualized base rent represents the annualized monthly base rent of executed leases as of September 30, 2015.

Rental revenue from our lease with Charles Schwab & Co., Inc., as master tenant of one of our office properties, represented approximately $19.6 million, or 11.6%, of our total revenue for the nine months ended September 30, 2015. Our properties in Massachusetts, New Jersey, California, and Texas accounted for approximately 19%,  17%,  14%, and 11% respectively, of our total gross investment in real property portfolio as of September 30, 2015. A deterioration of general economic or other relevant conditions, changes in governmental laws and regulations, acts of nature, demographics or other factors in any of those states or the geographical region in which they are located could result in the loss of tenants, a decrease in the demand for our properties and a decrease in our revenues from those markets, which in turn may have a disproportionate and material adverse effect on our results of operations and financial condition.

Termination of Purchase Option

As discussed in Item 1A and Item 2 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 3, 2015, “Harborside,” an office property located in Northern New Jersey, was subject to a purchase option held by a third party with an exercise price that we estimated to be approximately $239.4 million and an exercise date in May 2016. On August 5, 2015, we paid the option holder approximately $12.0 million to terminate the option. Such payment is included within capital expenditures in real property in the accompanying consolidated statements of cash flows. As a result, the option is no longer outstanding.

4. DEBT RELATED INVESTMENTS

As of September 30, 2015 and December 31, 2014, we had invested in five and 11 debt related investments, respectively. The weighted average maturity of our debt related investments structured as mortgage notes as of September 30, 2015 was 2.9 years, based on our recorded net investments. The following table describes our debt related income for the three and nine months ended September 30, 2015 and 2014 (dollar amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,				Weighted Average Yield as of
Investment Type	2015		2014		2015		2014		September 30, 2015 (1)
Mortgage notes (2)	$	666	$	1,058	$	3,808	$	3,469	5.8%
Mezzanine debt (3)		141		740		1,786		2,102	N/A
Total	$	807	$	1,798	$	5,594	$	5,571	5.8%

__________________

(1) Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of September 30, 2015. As of September 30, 2015, all of our debt related investments bear interest at fixed rates.

(2) Four and three of our debt related investments structured as mortgage notes were repaid in full during the nine months ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015 and 2014, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments.

(3) Our debt related investment structured as a mezzanine loan was repaid in full during the three months ended September 30, 2015. During the three and nine months ended September 30, 2015, amounts recorded were offset by accelerated amortization of deferred due diligence costs.

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Repayments

During the nine months ended September 30, 2015, we received full repayments of four debt related investments structured as mortgage notes and a debt related investment structured as a mezzanine loan. We received cash proceeds from the repayments of approximately $59.9 million, which comprised principal repayments of $69.8 million (including accrued interest of approximately $6.4 million on our mezzanine debt investment) and early repayment fees of $1.3 million, partially offset by the repayments of borrowings secured by these and other debt related investments of approximately $11.2 million.

Impairment

We review each of our debt related investments on a quarterly basis, and more frequently when such an evaluation is warranted, to determine if impairment exists. Accordingly, we do not group our debt related investments into classes by credit quality indicator. A debt related investment is impaired when, based on current information and events (including economic, industry and geographical factors), it is probable that we will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the agreement. When an investment is deemed impaired, the impairment is measured based on the expected future cash flows discounted at the investment’s effective interest rate. As a practical expedient, we may measure impairment based on the fair value of the collateral of an impaired collateral-dependent debt related investment. Regardless of the measurement method, we measure impairment based on the fair value of the collateral when it is determined that foreclosure is probable.

As of December 31, 2014, we had one impaired debt related investment that was a subordinate debt related investment. As of December 31, 2014, we had a gross recorded investment in the impaired debt related investment of $3.0 million, with a related allowance for loan loss of $3.0 million. Based on our review during the nine months ended September 30, 2015, we determined that the impaired debt related investment did not have any value and therefore we recorded a direct write-off of the allowance for loan loss of $3.0 million. We did not record any current period provision for loan loss or recoveries of amounts previously charged off during the three and nine months ended September 30, 2015. As of September 30, 2015 and December 31, 2014, we did not have any impaired loans for which we have not recorded an allowance for loan loss.

As of December 31, 2014, we had one impaired debt related investment with an unpaid principal balance of approximately $3.0 million. The following table describes our recorded investment in debt related investments before allowance for loan loss, and the related allowance for loan loss as of September 30, 2015 and December 31, 2014 (amounts in thousands):

	Debt Related Investments Individually Evaluated for Impairment as of
	September 30, 2015		December 31, 2014
Debt related investments	$	27,775	$	97,951
Less: Allowance for loan losses		—		(3,000)
Total	$	27,775	$	94,951

As of December 31, 2014, our impaired debt related investment was on non-accrual status. As of September 30, 2015, we did not have any debt related investment on non-accrual status. When a debt related investment is on non-accrual status, we record income on the investment using the cash basis of accounting. All of our debt related investments that were past due 90 days or more were on non-accrual status as of December 31, 2014.

We did not record any interest income related to our impaired debt related investment during the three and nine months ended September 30, 2015 or 2014.

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5. DEBT OBLIGATIONS

The following table describes our borrowings as of September 30, 2015 and December 31, 2014 (dollar amounts in thousands):

	Weighted Average Stated Interest Rate as of		Outstanding Balance as of (1)				Gross Investment Amount Securing Borrowings as of (2)
	September 30, 2015	December 31, 2014	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Fixed-rate mortgages	5.9%	5.8%	$	535,967	$	807,994	$	1,026,446	$	1,625,637
Floating-rate mortgage (3)	3.2%	3.2%		7,980		8,250		16,459		16,118
Total mortgage notes	5.8%	5.8%		543,947		816,244		1,042,905		1,641,755
Repurchase facility (4)	N/A	2.8%		—		37,023		—		51,156
Total secured     borrowings	5.8%	5.6%		543,947		853,267		1,042,905		1,692,911
Line of credit (5)	2.0%	2.6%		109,000		75,000		N/A		N/A
Term loans (6)	2.6%	2.7%		350,000		270,000		N/A		N/A
Total unsecured     borrowings	2.4%	2.7%		459,000		345,000		N/A		N/A
Total borrowings	4.3%	4.8%	$	1,002,947	$	1,198,267		N/A		N/A

__________________

(1) Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

(2) “Gross Investment Amount” as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt related investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss.

(3) As of September 30, 2015 and December 31, 2014, our floating rate mortgage note was subject to an interest rate spread of 3.00% over one-month LIBOR.

(4) As of December 31, 2014, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings.

(5) As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

(6) As of September 30, 2015 and December 31, 2014, borrowings under our term loans were subject to interest at weighted average floating rates of 1.52% and 1.70%, respectively, over one-month LIBOR. However, we had effectively fixed the interest rates of the borrowings using interest rate swaps at 2.57% and 2.69% as of September 30, 2015 and December 31, 2014, respectively.

As of September 30, 2015, nine mortgage notes were interest-only and 12 mortgage notes were fully amortizing with outstanding principal balances of approximately $273.8 million and $271.1 million, respectively. None of our mortgage notes are recourse to us.

Assumption and Defeasance of Mortgage Note

As discussed in Note 3, we completed the sale of the Portfolio on March 11, 2015. Upon the disposition of the Portfolio, the buyer assumed approximately $128.0 million of a mortgage note borrowing, which is scheduled to mature in July 2020 and bears interest at 5.46%. In addition, we were released of our obligations on $44.8 million of the mortgage note borrowing that was not assumed by the buyer through a defeasance process. Accordingly, we incurred defeasance costs of approximately $8.6 million, which are included within gain on sale of real property in the accompanying statements of operations. Upon such defeasance, we derecognized the associated borrowing, which was assumed by an unrelated successor borrower.

Repayment of Mortgage Notes and Repurchase Facility

During the nine months ended September 30, 2015, we repaid six mortgage note borrowings in full during the respective free-prepayment periods prior to their scheduled maturities and repaid the borrowings under our repurchase facility in full using proceeds from our term loans and our revolving credit facility. The following table describes these repayments in more detail (dollar amounts in thousands):

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Debt Obligation	Repayment Date	Balance Repaid		Stated Interest Rate (1)	Contractual Maturity Date	Collateral Type	Collateral Market
Austin-Mueller Health Center	July 6, 2015	$	16,946	7.50%	January 1, 2016	Office Property	Austin, TX
Preston Sherry Plaza	July 1, 2015		22,292	5.85%	September 1, 2015	Office Property	Dallas, TX
Campus Road	April 10, 2015		33,501	4.75%	July 10, 2015	Office Property	Princeton, NJ
Mansfield	April 1, 2015		8,307	6.03%	October 1, 2015	Retail Property	Greater Boston
Orleans	January 2, 2015		13,818	6.02%	July 1, 2015	Retail Property	Greater Boston
Whitman	January 2, 2015		7,316	6.02%	July 1, 2015	Retail Property	Greater Boston
Total/weighted average     mortgage notes			102,180	5.81%
Repurchase facility	May 29, 2015		37,023	2.84%	May 29, 2015	Debt Related Investments	Various
Total/weighted average     borrowings		$	139,203	5.02%

__________________

(1) We had effectively fixed the stated interest rates of certain of our borrowings by using interest rate swaps.

Recast of Credit Facility

On January 13, 2015, we amended and restated our $620 million senior unsecured term loan and revolving line of credit (the “Old Facility”) to provide for a $550 million senior unsecured term loan and revolving line of credit (the “Amended Facility”) with a syndicate of 14 lenders led by Bank of America, N.A., as Administrative Agent. The Amended Facility provides us with the ability from time to time to increase the size of the Amended Facility up to a total of $900 million less the amount of any prepayments under the term loan component of the Amended Facility, subject to receipt of lender commitments and other conditions. Because many members of the lending group participated as lenders in the Old Facility, the credit agreement for the Amended Facility is an amended and restated form of the credit agreement for the Old Facility.

The $550 million Amended Facility consists of a $400 million revolving credit facility (the “Revolving Credit Facility”) and a $150 million term loan (the “$150 Million Term Loan”). The Revolving Credit Facility contains a sublimit of $50 million for letters of credit and a sublimit of $50 million for swing line loans. The primary interest rate for the Revolving Credit Facility is based on LIBOR, plus a margin ranging from 1.40% to 2.30%, depending on our consolidated leverage ratio. The maturity date of the Revolving Credit Facility is January 31, 2019 and contains one12-month extension option that we may exercise upon (i) payment of an extension fee equal to 0.15% of the sum of the amount outstanding under the Revolving Credit Facility and the unused portion of the Revolving Credit Facility at the time of the extension, and (ii) compliance with the other conditions set forth in the credit agreement. The primary interest rate within the $150 Million Term Loan is based on LIBOR, plus a margin ranging from 1.35% to 2.20%, depending on our consolidated leverage ratio. The maturity date of the $150 Million Term Loan is January 31, 2018 and contains two12-month extension options that we may exercise upon (i) payment of an extension fee equal to 0.125% of the sum of the amount outstanding under the $150 Million Term Loan at the time of each extension, and (ii) compliance with the other conditions set forth in the credit agreement.

Borrowings under the Amended Facility are available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. Upon entering into the Amended Facility on January 13, 2015, we borrowed $280 million on the Revolving Credit Facility and $100 million on the $150 Million Term Loan. We primarily used the proceeds from the Amended Facility to repay $380 million of outstanding borrowings under the Old Facility.

We accounted for the amendment and restatement of the Old Facility as a modification of debt, and recognized approximately $896,000 within loss on extinguishment of debt and financing commitments during the nine months ended September 30, 2015, primarily resulting from the write-off of a portion of the deferred financing costs incurred in connection with the issuance of the Old Facility.

Term Loan Credit Agreement

On February 27, 2015, we entered into a $200 million seven-year term loan credit agreement (the “$200 Million Term Loan”) with a syndicate of six lenders led by Wells Fargo Bank, National Association as Administrative Agent and Regions Bank as Syndication Agent. The primary interest rate within the $200 Million Term Loan is based on LIBOR, plus a margin ranging from 1.65% to 2.55%, depending on our consolidated leverage ratio. The maturity date of the $200 Million Term Loan is February 27, 2022 with no extension options.

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Borrowings under the $200 Million Term Loan are available for general business purposes including, but not limited to financing the acquisition of permitted investments, including commercial properties.

As of September 30, 2015, we had outstanding borrowings of $109.0 million and $150.0 million under the Revolving Credit Facility and $150 Million Term Loan components of our Amended Facility, respectively. As of September 30, 2015, we had outstanding borrowings of $200.0 million under the $200 Million Term Loan. As of September 30, 2015, the unused portion of our Revolving Credit Facility was approximately $288.8 million, all of which was available to us. As of December 31, 2014, we had outstanding borrowings of $270.0 million and $75.0 million under the term loan and revolving credit facility components of the Old Facility, respectively, and $189.4 million was available for us to borrow due to covenant constraints under the revolving credit facility component of the Old Facility.

The following table reflects our contractual debt maturities as of September 30, 2015, specifically our obligations under our mortgage notes and unsecured borrowings (dollar amounts in thousands):

	As of September 30, 2015
	Mortgage Notes			Unsecured Borrowings			Total
Year Ending December 31,	Number of Borrowings Maturing	Outstanding Principal Balance		Number of Borrowings Maturing	Outstanding Principal Balance (1)		Outstanding Principal Balance (2)
2015	—	$	2,823	—	$	—	$	2,823
2016	11		309,913	—		—		309,913
2017	6		206,659	—		—		206,659
2018	—		1,761	1		150,000		151,761
2019	—		1,868	1		109,000		110,868
2020	—		1,982	—		—		1,982
2021	1		10,825	—		—		10,825
2022	1		1,663	1		200,000		201,663
2023	—		978	—		—		978
2024	—		1,034	—		—		1,034
Thereafter	2		5,397	—		—		5,397
Total	21	$	544,903	3	$	459,000	$	1,003,903

__________________

(1) Unsecured borrowings presented include (i) borrowings under the $150 Million Term Loan of $150.0 million, which are scheduled to mature in 2018, subject to two one-year extension options, (ii) borrowings under the Revolving Credit Facility of $109.0 million, which are scheduled to mature in 2019, subject to a one-year extension option, and (iii) borrowings under the $200 Million Term Loan of $200.0 million, which are scheduled to mature in 2022 with no extension options.

(2) Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include the GAAP principal amortization of our restructured mortgage note of approximately $2.9 million that does not reduce the contractual amount due of the related mortgage note as of September 30, 2015, partially offset by the mark-to-market premium on assumed debt of $1.9 million as of September 30, 2015.

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6. DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

We maintain risk management control systems to monitor interest rate risk attributable to both our outstanding and forecasted debt obligations. We generally seek to limit the impact of interest rate changes on earnings and cash flows by selectively utilizing derivative instruments to hedge exposures to changes in interest rates on our unsecured floating rate borrowings. While this hedging strategy is designed to minimize the impact on our net income (loss) and cash provided by operating activities from changes in interest rates, the overall returns on our investments may be reduced. Our board of directors has established policies and procedures regarding our use of derivative instruments for hedging or other purposes to achieve these risk management objectives.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from counterparties in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amounts. We have entered into and plan to enter into certain interest rate derivatives with the goal of mitigating our exposure to adverse fluctuations in the interest payments on our one-month LIBOR-indexed debt. Certain of our floating rate borrowings are not hedged and therefore, to an extent, we have ongoing exposure to interest rate movements.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges under ASC Topic 815 is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the next 12 months, we estimate that approximately $2.6 million will be reclassified as an increase to interest expense related to active effective hedges of existing floating-rate debt, and we estimate that approximately $1.9 million will be reclassified as an increase to interest expense related to effective forward started interest rate swaps where the hedging instrument has been terminated. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The table below presents a reconciliation of the beginning and ending balances, between December 31, 2014 and September 30, 2015, of our accumulated other comprehensive loss (“OCI”), net of amounts attributable to noncontrolling interests, related to the effective portion of our cash flow hedges as presented on our financial statements, as well as amounts related to our available-for-sale securities (amounts in thousands):

		Gains and Losses on Cash Flow Hedges		Unrealized Losses on Available-For- Sale Securities		Accumulated Other Comprehensive Loss
Beginning balance as of December 31, 2014:		$	(9,069)	$	(1,051)	$	(10,120)
	Other comprehensive income:
	Amount of loss reclassified from OCI into interest expense     (effective portion) (net of tax benefit of $0)		3,538		—		3,538
	Change in fair value recognized in OCI     (effective portion) (net of tax benefit of $0)		(8,789)		—		(8,789)
	Net current-period other comprehensive income		(5,251)		—		(5,251)
	Attribution of and other adjustments to OCI     attributable to noncontrolling interests		384		2		386
Ending balance as of September 30, 2015:		$	(13,936)	$	(1,049)	$	(14,985)

Fair Values of Derivative Instruments

The table below presents the gross fair value of our derivative financial instruments as well as their classification on our accompanying balance sheets as of September 30, 2015 and December 31, 2014 (amounts in thousands):

		Fair Value of Asset Derivatives as of					Fair Value of Liability Derivatives as of
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2015		2014		Location	2015		2014
Derivatives designated as     hedging instruments     under ASC Topic 815
Interest rate contracts	Other assets, net (1)	$	—	$	543	Other liabilities (1)	$	(6,939)	$	(907)
Total derivatives		$	—	$	543		$	(6,939)	$	(907)

__________________

(1) Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

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The majority of the inputs used to value our derivative instruments fall within Level 2 of the fair value hierarchy. However, the credit valuation adjustments associated with our derivative instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of potential default by us and our counterparties. As of September 30, 2015, we had assessed the significance of the impact of the credit valuation adjustments and had determined that it was not significant to the overall valuation of our derivative instruments. As a result, we have determined that our derivative valuations are classified in Level 2 of the fair value hierarchy.

Designated Derivatives

As of September 30, 2015 and December 31, 2014, we had 12 and 11 outstanding interest rate swaps, respectively, that were designated as cash flow hedges of interest rate risk, with a total notional amount of $383.7 million and $339.2 million, respectively. In addition, as of September 30, 2015, we had (i) two interest rate swaps with a total notional amount of $100.0 million that will become effective in December 2016 and mature in January 2020 and (ii) two interest rate swaps with a total notional amount of $100.0 million that will become effective in December 2016 and mature in February 2022, all of which were designated as cash flow hedges of interest rate risk.

Non-Designated Derivatives

Derivatives not designated as hedges are not speculative and are used to hedge our exposure to interest rate movements and other identified risks but do not meet hedge accounting requirements. As of both September 30, 2015 and December 31, 2014, we did not have any outstanding derivatives that were not designated as hedges.

Effect of Derivative Instruments on the Statements of Comprehensive Income and Loss

The table below presents the effect of our derivative financial instruments on our accompanying financial statements for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Derivatives Designated as Hedging     Instruments
Derivative type		Interest rate contracts		Interest rate contracts		Interest rate contracts		Interest rate contracts
Amount of (loss) gain recognized in     OCI (effective portion)	$	(7,236)	$	421	$	(8,789)	$	(843)
Location of loss reclassified from     accumulated OCI into income     (effective portion)		Interest expense		Interest expense		Interest expense		Interest expense
Amount of loss reclassified from     accumulated OCI into income     (effective portion)	$	1,220	$	739	$	3,538	$	2,232
Location of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)
Amount of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)	$	(117)	$	9	$	(0)	$	—

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7. FAIR VALUE OF FINANCIAL INSTRUMENTS

We use the framework established in ASC Topic 820,  Fair Value Measurement and Disclosures, to measure the fair value of our financial instruments as disclosed in the table below. The fair values estimated below are indicative of certain interest rate and other assumptions as of September 30, 2015 and December 31, 2014, and may not take into consideration the effects of subsequent interest rate or other assumption fluctuations, or changes in the values of underlying collateral. The fair values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses approximate their carrying values because of the short-term nature of these instruments.

The carrying amounts and estimated fair values of our other financial instruments as of September 30, 2015 and December 31, 2014 were as follows (amounts in thousands):

	As of September 30, 2015				As of December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Investments in real estate securities	$	200	$	200	$	200	$	200
Fixed-rate debt related investments, net		27,775		28,905		69,889		71,770
Floating-rate debt related investments, net		—		—		25,062		25,157
Derivative instruments		—		—		543		543
Liabilities:
Fixed-rate mortgage notes	$	535,967	$	540,511	$	807,994	$	848,045
Floating-rate mortgage notes		7,980		7,986		8,250		8,249
Floating-rate other secured borrowings		—		—		37,023		37,023
Floating-rate unsecured borrowings		459,000		459,000		345,000		347,235
Derivative liabilities		6,939		6,939		907		907

The methodologies used and key assumptions made to estimate fair values of the financial instruments, other than derivatives disclosed in Note 6, described in the above table are as follows:

Debt Related Investments — The fair value of our performing debt related investments are estimated using a discounted cash flow methodology. This method discounts estimated future cash flows using rates management determines best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Credit spreads and market interest rates used to determine the fair value of these instruments are based on unobservable Level 3 inputs which management has determined to be its best estimate of current market values.

Mortgage Notes and Other Borrowings— The fair value of our mortgage notes and other borrowings are estimated using a discounted cash flow analysis, based on our estimate of market interest rates. Credit spreads relating to the underlying instruments are based on unobservable Level 3 inputs, which we have determined to be our best estimate of current market spreads of similar instruments.

8. STOCKHOLDERS’ EQUITY

Common Stock

On August 12, 2015, we completed a self-tender offer, pursuant to which we accepted for purchase approximately 17.2 million unclassified shares of common stock, which we refer to as “Class E” shares, at a purchase price of $7.25 per share for an aggregate cost of approximately $124.4 million. The following table describes the changes in each class of common shares during the nine months ended September 30, 2015 (shares and dollar amounts in thousands):

	Class E			Class A			Class W			Class I			Total
	Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)
Balances, December 31, 2014	163,068	$	1,670,408	1,187	$	8,518	1,117	$	7,808	13,028	$	90,320	178,400	$	1,777,054
Issuance of common stock:
Shares sold	—		—	262		1,970	306		2,253	9,159		66,738	9,727		70,961
Distribution reinvestment    plan	1,903		13,832	20		149	15		112	274		1,997	2,212		16,090
Stock-based compensation	—		—	—		—	—		—	618		972	618		972
Redemptions of    common stock	(25,534)		(186,135)	(21)		(155)	(20)		(148)	(339)		(2,462)	(25,914)		(188,900)
Balances, September 30, 2015	139,437	$	1,498,105	1,448	$	10,482	1,418	$	10,025	22,740	$	157,565	165,043	$	1,676,177

__________________

(1) Dollar amounts presented in this table represent the gross amount of proceeds from the sale of common shares, or the amount paid to stockholders to redeem common shares, and do not include other costs and expenses accounted for within additional paid-in capital, such as selling commissions, dealer manager and distribution fees, offering and organizational costs, and other costs associated with our distribution reinvestment plans and share redemption programs.

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9. RELATED PARTY TRANSACTIONS

Our day-to-day activities are managed by our Advisor, a related party, under the terms and conditions of the Advisory Agreement. Our Advisor is considered to be a related party as certain indirect owners and employees of our Advisor serve as two of our directors and all of our executive officers. The responsibilities of our Advisor cover all facets of our business, and include the selection and underwriting of our real property and debt related investments, the negotiations for these investments, the asset management and financing of these investments and the oversight of real property dispositions.

Dividend Capital Securities LLC, which we refer to as the “Dealer Manager,” is distributing the shares of our common stock in our public offering on a “best efforts” basis. The Dealer Manager is an entity related to the Advisor and is a member of the Financial Industry Regulatory Authority, Inc., or FINRA. The Dealer Manager coordinates our distribution effort and manages our relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to marketing our public offering.

On September 16, 2015, the Company entered into a Second Amended and Restated Dealer Manager Agreement (the “Second Amended Dealer Manager Agreement”) with the Dealer Manager. The Dealer Manager served as dealer manager for the Prior Offering and will serve as dealer manager for the Follow-On Offering. The Second Amended Dealer Manager Agreement is an amendment and restatement of the dealer manager agreement entered into by the Company and the Dealer Manager on February 8, 2013 in connection with the Prior Offering, as amended by Amendment No. 1 dated May 31, 2013, Amendment No. 2 dated June 26, 2013 and Amendment No. 3 dated March 20, 2014. The purpose of the Second Amended Dealer Manager Agreement is to engage the Dealer Manager with respect to the Follow-On Offering. As amended, the Second Amended Dealer Manager Agreement may be made to apply to future offerings by naming them in a schedule to the agreement, with the consent of the Company and the Dealer Manager. Pursuant to the Second Amended Dealer Manager Agreement, we pay (i) selling commissions on Class A shares sold in the primary offering of up to 3.0% of the public offering price per share, (ii) a dealer manager fee which accrues daily in an amount equal to 1/365th of 0.6% of our NAV per share of Class A and Class W shares outstanding and an amount equal to 1/365th of 0.1% of our NAV per share of Class I shares outstanding on such day on a continuous basis, and (iii) a distribution fee which accrues daily in an amount equal to 1/365th of 0.5% of our NAV per Class A share outstanding on such day on a continuous basis. Subject to Financial Industry Regulatory Authority, Inc., or FINRA, limitations on underwriting compensation, we will continue to pay the dealer manager fee and distribution fee until the earlier to occur of the following: (i) a listing of the class of such shares on a national securities exchange or (ii) such shares no longer being outstanding. Pursuant to the Follow-On Offering, we are offering on a continuous basis up to $1,000,000,000 of shares of our common stock, consisting of up to $750,000,000 of shares in our primary offering and up to $250,000,000 of shares pursuant to our distribution reinvestment plan.

Restricted Stock Unit Agreements

We have entered into Restricted Stock Unit Agreements (the “Advisor RSU Agreements”) with our Advisor. The purposes of the Advisor RSU Agreements are to promote an alignment of interests among our stockholders, the Advisor and the personnel of our Advisor and its affiliates, and to promote retention of the personnel of our Advisor and its affiliates. Pursuant to the terms of the Advisor RSU Agreements, we have granted approximately 441,000 restricted stock units (“Company RSUs”) to the Advisor that remain unvested and unsettled as of September 30, 2015. Each Company RSU will, upon vesting, be settled in one share of our Class I common stock. The Company RSUs are subject to specified vesting and settlement provisions and, upon settlement in Class I shares of Company common stock, require offsets of advisory fees and expenses otherwise payable from the Company to the Advisor based on the NAV per Class I share on the grant date of the applicable Company RSU (the weighted average grant-date NAV per Class I share with respect to the unsettled Company RSUs is $7.06 as of September 30, 2015). As of September 30, 2015, the Advisor had approximately 76,000 shares of Class I common stock issued upon settlement of Company RSUs that remained subject to fee offset.

Vesting and Payment Offset

The chart below shows the grant dates, vesting dates and Class I NAV on the grant dates of the unvested Company RSUs as of September 30, 2015 (share amounts in thousands).

Award	Grant Date	Vesting Dates	Number of Unvested Shares	Applicable Grant Date NAV per Share
Company RSU	April 7, 2014	April 15, 2016, April 15, 2017	247	$	6.96
Company RSU	February 25, 2015	April 15, 2016, April 15, 2017	59		7.18
Company RSU	February 25, 2015	April 15, 2018	135		7.18
			441	$	7.06

On each vesting date, an offset amount will be calculated and deducted on a pro rata basis over the next 12 months from the cash payments otherwise due and payable to the Advisor under our then-current Advisory Agreement for any fees or expense reimbursements. Each offset amount will equal the number of Company RSUs vesting on such date multiplied by the grant-date NAV per Class I share. For each Company RSU, the offset amount will always be calculated based on the grant-date NAV per Class

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I share, even beyond the initial grant and vesting dates. At the end of each 12-month period following each vesting date, if the offset amount has not been fully realized by offsets from the cash payments otherwise due and payable to the Advisor under the Advisory Agreement, the Advisor will promptly pay any shortfall to us.

Termination

The Advisor RSU Agreements will automatically terminate upon termination or non-renewal of the Advisory Agreement by any party for any reason. In addition, upon a change in control of us, then either the Advisor or we may immediately terminate the Advisor RSU Agreements. Further, the Advisor may immediately terminate the Advisor RSU Agreements if we exercise certain rights under the Advisor RSU Agreements to replace the Company RSUs with another form of compensation.

Upon termination of the Advisor RSU Agreements, the Advisor will promptly pay any unused offset amounts to us or, at the Advisor’s election, return Class I shares in equal value based on the Class I NAV as of the date of termination of the Advisor RSU Agreements. In addition, upon termination of the Advisor RSU Agreements, all unvested Company RSUs will be forfeited except that, unless the Advisor RSU Agreements were terminated at the election of the Advisor following a change in control of us or as a result of a premature termination of the Advisory Agreement at our election for cause (as defined in the Advisory Agreement) or upon the bankruptcy of the Advisor, then following such forfeiture of Company RSUs, the Advisor will have the right to acquire from us the number of Class I shares equal to the number of Company RSUs forfeited, in return for a purchase price equal to such number of Class I shares multiplied by the grant-date NAV per Class I share. The Advisor must notify us of its election to exercise the foregoing acquisition right within 30 days following the termination of the Advisor RSU Agreements, and the parties will close the transaction within 60 days following the termination of the Advisor RSU Agreements. 

Dividend Equivalent Payments

If our board of directors declares and we pay a cash dividend on Class I shares for any period in which the Company RSUs are outstanding (regardless of whether such Company RSUs are then vested), the Advisor will be entitled to dividend equivalents with respect to that cash dividend equal to the cash dividends that would have been payable on the same number of Class I shares as the number of Company RSUs subject to the Advisor RSU Agreements had such Class I shares been outstanding during the same portion of such period as the Company RSUs were unpaid and outstanding. Any such dividend equivalents may be paid in cash or Class I shares, at the Advisor’s election.

Summary of Fees and Other Amounts

The following table summarizes fees and other amounts earned by our Advisor and its related parties in connection with services performed for us during the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Advisory fees (1)	$	4,225	$	4,083	$	13,021	$	11,678
Other reimbursements paid to our Advisor (2)		2,176		1,953		6,590		5,923
Other reimbursements paid to our Dealer Manager		33		82		310		423
Advisory fees related to the disposition of     real properties		201		—		4,779		1,973
Development management fee		18		3		52		107
Primary dealer fee (3)		—		1,648		2,540		2,198
Selling commissions, dealer manager,     and distribution fees		102		62		271		238
Total	$	6,755	$	7,831	$	27,563	$	22,540

__________________

(1) Amounts reported for the three months ended September 30, 2015 include approximately $283,000 in consideration of the issuance of approximately 153,000 shares of our Class I common stock to the Advisor. Such shares were issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash. Amounts reported for the nine months ended September 30, 2015 include approximately $786,000 in consideration of the issuance of approximately 276,000 shares of our Class I common stock to the Advisor. Such shares include (i) approximately 153,000 shares issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and (ii) 123,000 shares issued on April 15, 2014 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014. Such Class I shares are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash.

(2) Other reimbursements paid to our Advisor primarily comprise salary, bonus, and overhead reimbursements.

(3) Amounts reported represent primary dealer fees we paid to the Dealer Manager based on the gross proceeds raised by participating broker-dealers pursuant to certain selected dealer agreements. Of the primary dealer fee earned during the nine months ended September 30, 2015, the Dealer Manager reallowed approximately $2.3 million to participating third-party broker-dealers and retained approximately $254,000. Of the primary dealer fee earned during the nine months ended September 30, 2014, the Dealer Manager reallowed approximately $2.0 million to participating third-party broker-dealers and retained approximately $220,000.

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As of September 30, 2015 and December 31, 2014, we owed approximately $2.4 million and $1.9 million to our Advisor and affiliates of our Advisor for such services and reimbursement of certain expenses, respectively. Pursuant to the Advisory Agreement, we accrue the advisory fee on a daily basis and pay our Advisor amounts due subsequent to each month-end.

10. NET INCOME (LOSS) PER COMMON SHARE

Reconciliations of the numerator and denominator used to calculate basic net income (loss) per common share to the numerator and denominator used to calculate diluted net income (loss) per common share for the three and nine months ended September 30, 2015 and 2014 are described in the following table (amounts in thousands, except per share information):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
Numerator	2015		2014		2015		2014
(Loss) income from continuing operations	$	(1,425)	$	(7,519)	$	130,883	$	(1,713)
Loss (income) from continuing operations attributable     to noncontrolling interests		1,297		475		(7,358)		57
(Loss) income from continuing operations     attributable to common stockholders		(128)		(7,044)		123,525		(1,656)
Dilutive noncontrolling interests share     of (loss) income from continuing operations		(10)		(500)		8,575		(128)
Numerator for diluted earnings     per share – adjusted (loss) income from     continuing operations		(138)		(7,544)		132,100		(1,784)
Income from discontinued operations		—		5		—		30,005
Income from discontinued operations     attributable to noncontrolling interests		—		—		—		(4,462)
Income from discontinued operations     attributable to common stockholders		—		5		—		25,543
Dilutive noncontrolling interests share     of discontinued operations		—		—		—		1,915
Numerator for diluted earnings     per share – adjusted income from     discontinued operations	$	—	$	5	$	—	$	27,458
Denominator
Weighted average shares outstanding-basic		174,290		178,729		179,168		177,717
Incremental weighted average shares effect     of conversion of OP units		12,989		12,693		12,852		12,888
Weighted average shares outstanding-diluted		187,279		191,422		192,020		190,605
INCOME (LOSS) PER COMMON SHARE-BASIC     AND DILUTED
Net income (loss) from continuing operations	$	(0.00)	$	(0.04)	$	0.69	$	(0.01)
Net income from discontinued operations		—		0.00		—		0.14
Net income (loss)	$	(0.00)	$	(0.04)	$	0.69	$	0.13

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11. SEGMENT INFORMATION

We have four reportable operating segments, which include our three real property operating sectors (office, industrial, and retail) and debt related investments. We organize and analyze the operations and results of each of these segments independently, due to inherently different considerations for each segment. Such considerations include, but are not limited to, the nature and characteristics of the investment, and investment strategies and objectives. For example, the physical characteristics of our buildings, the related operating characteristics, the geographic markets, and the type of tenants are inherently different for each of our segments. The following tables set forth revenue and the components of net operating income (“NOI”) of our segments for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	34,418	$	35,439	$	23,937	$	26,608
Industrial		1,358		5,825		885		5,220
Retail		17,078		15,529		13,155		12,161
Debt related investments		807		1,798		807		1,798
Total	$	53,661	$	58,591	$	38,784	$	45,787

	For the Nine Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	102,631	$	103,566	$	74,056	$	77,863
Industrial		7,147		17,674		5,656		15,622
Retail		53,530		45,693		40,184		35,501
Debt related investments		5,594		5,571		5,594		5,571
Total	$	168,902	$	172,504	$	125,490	$	134,557

__________________

(1) Excludes results of operations of real properties categorized as discontinued operations.

We consider NOI to be an appropriate supplemental financial performance measure because NOI reflects the specific operating performance of our real properties and debt related investments, and excludes certain items that are not considered to be controllable in connection with the management of each property, such as depreciation and amortization, general and administrative expenses, advisory fees, acquisition-related expenses, interest and other income, interest expense, loss on extinguishment of debt and financing commitments, gain on the sale of real property and noncontrolling interests. However, NOI should not be viewed as an alternative measure of our financial performance as a whole, since it excludes such items that could materially impact our results of operations. Further, our NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance.

The following table is a reconciliation of our NOI to our reported net income (loss) attributable to common stockholders for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Net operating income	$	38,784	$	45,787	$	125,490	$	134,557
Real estate depreciation and amortization expense		(20,851)		(21,918)		(61,404)		(66,481)
General and administrative expenses		(2,477)		(2,581)		(8,157)		(8,187)
Advisory fees, related party		(4,225)		(4,083)		(13,021)		(11,678)
Acquisition-related expenses		(476)		(372)		(1,259)		(962)
Impairment of real estate property		(6,500)		(9,500)		(8,124)		(9,500)
Interest and other income		704		424		1,500		688
Interest expense		(10,951)		(15,276)		(36,208)		(46,549)
Loss on extinguishment of debt and financing     commitments		—		—		(1,168)		(63)
Gain on sale of real property		4,567		—		133,234		6,462
Discontinued operations		—		5		—		30,005
Net loss (income) attributable to noncontrolling interests		1,297		475		(7,358)		(4,405)
Net (loss) income attributable to common     stockholders	$	(128)	$	(7,039)	$	123,525	$	23,887

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The following table reflects our total assets by business segment as of September 30, 2015 and December 31, 2014 (amounts in thousands):

	As of
	September 30, 2015		December 31, 2014
Segment assets:
Net investments in real property
Office (1)	$	1,018,140	$	1,069,584
Industrial		61,685		207,655
Retail		701,526		652,187
Debt related investments, net		27,775		94,951
Total segment assets, net		1,809,126		2,024,377
Non-segment assets:
Cash and cash equivalents		15,186		14,461
Other non-segment assets (2)		66,508		87,368
Assets held for sale (3)		—		21,927
Total assets	$	1,890,820	$	2,148,133

__________________

(1) Excludes approximately $20.3 million of net investments in real property related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

(2) Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable.

(3) Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

12. SUBSEQUENT EVENTS

We have evaluated subsequent events for the period from September 30, 2015, the date of these financial statements, through the date these financial statements are issued, and determined that there have been no significant subsequent events. For information regarding acquisitions, dispositions, and financing transactions that occurred subsequent to September 30, 2015, see “Subsequent Events” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Quarterly Report on Form 10-Q.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Such forward-looking statements may relate to, without limitation, our future capital expenditures, distributions and acquisitions (including the amount and nature thereof), other development trends of the real estate industry, business strategies, and the growth of our operations. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Such statements are subject to a number of assumptions, risks and uncertainties that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements are generally identifiable by the use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “continue,” or the negative of these words, or other similar words or terms. Readers are cautioned not to place undue reliance on these forward-looking statements. Among the factors that may cause our results to vary are general economic and business (particularly real estate and capital market) conditions being less favorable than expected, the business opportunities that may be presented to and pursued by us, changes in laws or regulations (including changes to laws governing the taxation of REITs), risk of acquisitions, availability and creditworthiness of prospective tenants, availability of capital (debt and equity), interest rate fluctuations, competition, supply and demand for properties in our current and any proposed market areas, tenants’ ability to pay rent at current or increased levels, accounting principles, policies and guidelines applicable to REITs, environmental, regulatory and/or safety requirements, tenant bankruptcies and defaults, the availability and cost of comprehensive insurance, including coverage for terrorist acts, and other factors, many of which are beyond our control. For a further discussion of these factors and other risk factors that could lead to actual results materially different from those described in the forward-looking statements, see “Risk Factors” under Item 1A of Part 1 of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “Commission”) on March 3, 2015, Part II, Item 1A of our Quarterly Report on Form 10-Q filed with the Commission on May 12, 2015,  and Part II, Item 1A of our Quarterly Report on Form 10-Q filed with the Commission on August 13, 2015, each available at www.sec.gov, and Part II, Item 1A of this Quarterly Report on Form 10-Q.

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of future events, new information or otherwise.

This section of our Quarterly Report on Form 10-Q provides an overview of what management believes to be the key elements for understanding (i) our company and how we manage our business, (ii) how we measure our performance and our operating results, (iii) our liquidity and capital resources, and (iv) the financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

Overview

Dividend Capital Diversified Property Fund Inc. is a Maryland corporation formed on April 11, 2005 to invest in a diverse portfolio of real property and real estate related investments. As used herein, “the Company,” “we,” “our” and “us” refer to Dividend Capital Diversified Property Fund Inc. and its consolidated subsidiaries and partnerships except where the context otherwise requires.

We operate in such a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and we utilize an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through our operating partnership, Dividend Capital Total Realty Operating Partnership, L.P. (our “Operating Partnership”). Furthermore, our Operating Partnership wholly owns a taxable REIT subsidiary, DCTRT Leasing Corp., through which we execute certain business transactions that might otherwise have an adverse impact on our status as a REIT if such business transactions were to occur directly or indirectly through our Operating Partnership. We are an externally managed REIT and have no employees. Our day-to-day activities are managed by Dividend Capital Total Advisors LLC (our “Advisor”), a related party, under the terms and conditions of an advisory agreement (as amended from time to time, the “Advisory Agreement”).

The primary sources of our revenue and earnings include rent received under long-term operating leases of our properties, including reimbursements from customers for certain operating costs, and interest payments received from our debt related investments. Our primary expenses include rental expenses, depreciation and amortization expenses, general and administrative expenses, asset management and advisory fees, and interest expenses.

As of September 30, 2015, we had total investments with an estimated fair value of approximately $2.3 billion (calculated in accordance with our valuation procedures), comprising:  

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(1)59 operating properties located in 20  geographic markets in the United States, aggregating approximately 9.8 million net rentable square feet. As of September 30, 2015, our real property portfolio was approximately 88.8% leased. Our real property portfolio consists of:

· 20  office properties located in 14 geographic markets, aggregating approximately 4.4 million net rentable square feet, with an aggregate fair value amount of approximately $1.4 billion;

· 33 retail properties located in seven geographic markets, aggregating approximately 3.5 million net rentable square feet, with an aggregate fair value amount of approximately $872.3 million; and

· six industrial properties located in three geographic markets, aggregating approximately 1.9 million net rentable square feet, with an aggregate fair value amount of approximately $88.1 million.

(2)Approximately $27.8 million in net debt related investments, all of which are structured as mortgage notes.  

Consistent with our investment strategy, we currently have four business segments, consisting of investments in (i) office property, (ii) industrial property, (iii) retail property, and (iv) real estate-related debt (which we refer to as “debt related investments”). We may have additional segments in the future to the extent we enter into additional real property sectors, such as multifamily, hospitality, and other real property types. For a discussion of our business segments and the associated revenue and net operating income by segment, see Note 11 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

Any future and near-term obligations are expected to be funded primarily through the use of cash on hand, cash generated from operations, proceeds from our public offerings and other equity offerings, proceeds from the sale of existing investments, and the issuance and assumption of debt obligations.

· Cash on hand — As of September 30,  2015, we had approximately $15.2 million of cash and cash equivalents.

· Cash available under our credit facility— As of September 30, 2015, the unused portion of our revolving line of credit was approximately $288.8 million,  all of which was available to us.

· Cash generated from operations — During the nine months ended September 30, 2015, we generated approximately $77.9 million from operations of our real properties and income from debt related investments.

· Proceeds from offerings of equity securities — We currently maintain a public offering of our shares of common stock. During the nine months ended September 30, 2015, we raised approximately $73.2 million in proceeds from the sale of Class A, W, and I shares in our prior public offering and our current follow-on public offering, including approximately $2.3 million under the distribution reinvestment plan. Additionally, during the nine months ended September 30, 2015, we received (i) approximately $13.8 million in proceeds from the distribution reinvestment plan offering of our unclassified shares of common stock, which we refer to as “Class E” shares (the “Class E DRIP Offering”), and (ii) approximately $7.3 million from partnership units (“OP Units”) issued in a real estate transaction.

· Proceeds from sales and repayments of existing investments — During the nine months ended September 30, 2015, we sold 15 operating propertiesand a land parcel for approximately $477.9 million. After buyer credits, closing costs, and the assumption of a related mortgage note, we received net proceeds of $342.2 million. In addition, during that period five of our debt related investments with aggregate principal balances of $69.8 million were repaid to us in full.

We believe that our existing cash balance, cash generated from operations, proceeds from our public offerings and our ability to sell investments and to issue debt obligations remains adequate to meet our expected capital obligations for the next twelve months.

Significant Transactions During the Nine Months Ended September 30, 2015

Investment Activity

Dispositions of Real Properties

During the nine months ended September 30, 2015, we completed (i) the disposition of 15 wholly owned properties aggregating approximately 3.1 million net rentable square feet for an aggregate sales price of approximately $470.3 million, and (ii) the sale of a wholly owned land parcel for a sales price of approximately $7.6 million. Of these sales, the most significant is the sale of a portfolio of 12 wholly owned office and industrial properties comprising approximately 2.7 million net rentable square feet to an unrelated third party for a contract sales price of approximately $398.6 million on March 11, 2015. For additional information on these dispositions, see Note 3 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

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Acquisitions of Real Properties

The following table summarizes our acquisitions of real properties during the nine months ended September 30, 2015 (dollar amounts and square footage in thousands):

Real Property	Property Type	Market	Number of Properties	Date of Acquisition	Acquired Ownership	Contract Price		Net Rentable Square Feet	Percent Leased
Venture Corporate Center	Office	South Florida	1	August 6, 2015	100%	$	45,750	253	97%
Shenandoah	Retail	South Florida	1	August 6, 2015	100%		32,670	124	100%
City View	Office	Austin, TX	1	April 24, 2015	100%		68,750	274	99%
South Cape	Retail	Greater Boston (1)	1	March 18, 2015	100%		35,450	143	92%
Rialto	Office	Austin, TX	1	January 15, 2015	100%		37,300	155	94%
Total 2015 real    property    acquisitions			5			$	219,920	949	97%

__________________

(1) Our Greater Boston market comprises the greater metro area around Boston, MA. As of September 30, 2015, properties in our Greater Boston market are located in the following states: Massachusetts, Connecticut, New Hampshire, and Rhode Island.

Financing Activity

Self-Tender Offer

On August 12, 2015, we completed a self-tender offer, pursuant to which we accepted for purchase approximately 17.2 million unclassified shares of common stock, which we refer to as “Class E” shares, at a purchase price of $7.25 per share for an aggregate cost of approximately $124.4 million. We funded the purchase with a $115.0 million draw on our Revolving Credit Facility (as defined below) and existing cash.

Recast of Credit Facility

During the nine months ended September 30, 2015, we amended and restated our $620 million senior unsecured term loan and revolving line of credit (the “Old Facility”) to provide for a $550 million senior unsecured term loan and revolving line of credit, with a syndicate of lenders led by Bank of America, N.A., as Administrative Agent (collectively, the “Amended Facility”), consisting of a $400 million revolving credit facility (the “Revolving Credit Facility”) and a $150 million term loan (the “$150 Million Term Loan”). The Amended Facility provides us with the ability from time to time to increase the size of the Amended Facility up to a total of $900 million less the amount of any prepayments under the $150 Million Term Loan, subject to receipt of lender commitments and other conditions. As of September 30, 2015, we had outstanding borrowings of $150.0 million and $109.0 million under the $150 Million Term Loan and the Revolving Credit Facility, respectively.

New Credit Agreement

During the nine months ended September 30, 2015, we entered into an unsecured credit agreement providing for a $200 million term loan with a syndicate of six lenders led by Wells Fargo Bank and National Association, which matures in February 2022 (the “$200 Million Term Loan”). As of September 30, 2015, we had outstanding borrowings of $200.0 million under the $200 Million Term Loan.

Assumption and Defeasance of Mortgage Note

Upon the disposition of a portfolio of 12 office and industrial properties during the nine months ended September 30, 2015, the buyer assumed approximately $128.0 million of a mortgage note borrowing from us, which is scheduled to mature in July 2020 and bears interest at 5.46%. In addition, we were released of our obligations on $44.8 million of the mortgage note borrowing that was not assumed by the buyer through a defeasance process. Accordingly, we incurred defeasance costs of approximately $8.6 million, which are included within gain on sale of real property in the statements of operations included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q. Upon such defeasance, we derecognized the associated borrowing, which was assumed by an unrelated successor borrower.

Mortgage Borrowings

During the nine months ended September 30, 2015, we repaid six mortgage note borrowings in full prior to their scheduled maturities with an aggregate balance of approximately $102.2 million at the time of the payoffs and a weighted average interest rate of 5.81%.  All of these mortgage notes were repaid within the open prepayment period. For additional information on these repayments, see Note 5 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

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Net Asset Value Calculation

Our board of directors, including a majority of our independent directors, has adopted valuation procedures that contain a comprehensive set of methodologies to be used in connection with the calculation of our net asset value (“NAV”) on a daily basis. Altus Group U.S., Inc., an independent valuation firm (the “Independent Valuation Firm”) manages the fundamental element of the valuation process—the valuation of our real property portfolio. Our board of directors, including a majority of our independent directors, approved the Independent Valuation Firm.

The following table sets forth the components of NAV for the Company as of September 30, 2015 and June 30, 2015 (amounts in thousands except per share information). As used below, “Fund Interests” means our Class E shares, Class A shares, Class W shares, and Class I shares, along with the OP Units held by third parties, and “Aggregate Fund NAV” means the NAV of all of the Fund Interests.

	As of September 30, 2015		As of June 30, 2015
Office properties	$	1,356,600	$	1,308,600
Industrial properties		88,050		86,850
Retail properties		872,300		835,320
Real properties	$	2,316,950	$	2,230,770
Debt related investments		27,775		56,548
Total Investments	$	2,344,725	$	2,287,318
Cash and other assets, net of other liabilities		(26,734)		(25,014)
Debt obligations		(997,517)		(818,417)
Outside investors' interests		(4,498)		(4,494)
Aggregate Fund NAV	$	1,315,976	$	1,439,393
Total Fund Interests outstanding		177,468		195,153
NAV per Fund Interest	$	7.42	$	7.38

When the fair value of our real estate assets is calculated for the purposes of determining our NAV per share, the calculation is done using the fair value methodologies detailed within the FASB Accounting Standards Codification under Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”). However, our valuation procedures and our NAV are not subject to accounting principles generally accepted in the United States (“GAAP”) and will not be subject to independent audit. In the determination of our NAV, the value of certain of our assets and liabilities are generally determined based on their carrying amounts under GAAP; however, those principles are generally based upon historic cost and therefore may not be determined in accordance with ASC Topic 820. Readers should refer to our audited financial statements for our net book value determined in accordance with GAAP from which one can derive our net book value per share by dividing our stockholders’ equity by shares of our common stock outstanding as of the date of measurement.

Our valuation procedures, which address specifically each category of our assets and liabilities and are applied separately from the preparation of our financial statements in accordance with GAAP, involve adjustments from historical cost. There are certain factors which cause NAV to be different from net book value on a GAAP basis. Most significantly, the valuation of our real estate assets, which is the largest component of our NAV calculation, will be provided to us by the Independent Valuation Firm on a daily basis. For GAAP purposes, these assets are generally recorded at depreciated or amortized cost. We generally do not undertake to mark to market our debt investments or real estate-related liabilities, but rather these assets and liabilities are usually included in our determination of NAV at an amount determined in accordance with GAAP. As disclosed in Note 7 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q, the estimated fair value of our debt liabilities, net of the fair value of our debt investments, was $3.4 million higher than the GAAP carrying balance, meaning that if we used the fair value of our debt rather than the carrying balance, our NAV would have been lower by approximately $3.4 million as of September 30, 2015.  Also for NAV purposes, we mark-to-market our hedging instruments on a frequency that management determines to be practicable under the circumstances and currently we seek to mark-to-market our hedging instruments on a weekly basis. However, our NAV policies and procedures allow for that frequency to change to be more or less frequent.Other examples that will cause our NAV to differ from our GAAP net book value include the straight-lining of rent, which results in a receivable for GAAP purposes that is not included in the determination of our NAV, and, for purposes of determining our NAV, the assumption of a value of zero in certain instances where the balance of a loan exceeds the value of the underlying real estate properties, where GAAP net book value would reflect a negative equity value for such real estate properties, even if such loans are non-recourse. Third party appraisers may value our individual real estate assets using appraisal standards that deviate from fair value standards under GAAP. The use of such appraisal standards may cause our NAV to deviate from GAAP fair value principles. We did not develop our valuation procedures with the intention of complying with fair value concepts under GAAP and, therefore, there could be differences between our fair values and the fair values derived from the principal market or most advantageous market concepts of establishing fair value under GAAP.

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We include no discounts to our NAV for the illiquid nature of our shares, including the limitations on your ability to redeem shares under our share redemption programs and our ability to suspend or terminate our share redemption programs at any time. Our NAV generally does not consider exit costs (e.g. selling costs and commissions related to the sale of a property) that would likely be incurred if our assets and liabilities were liquidated or sold. While we may use market pricing concepts to value individual components of our NAV, our per share NAV is not derived from the market pricing information of open-end real estate funds listed on stock exchanges.

Please note that our NAV is not a representation, warranty or guarantee that: (1) we would fully realize our NAV upon a sale of our assets; (2) shares of our common stock would trade at our per share NAV on a national securities exchange; and (3) a stockholder would be able to realize the per share NAV if such stockholder attempted to sell his or her shares to a third party.

The September 30, 2015 valuation for our real properties was provided by the Independent Valuation Firm in accordance with our valuation procedures and determined starting with the appraised value. The aggregate real property valuation of $2.32 billion compares to a GAAP basis of real properties (before accumulated amortization and depreciation and the impact of intangible lease liabilities) of $2.18 billion, representing an increase of approximately $133.4 million or 6.1%. Certain key assumptions that were used by our Independent Valuation Firm in the discounted cash flow analysis are set forth in the following table based on weighted averages by property type.

	Office	Industrial	Retail	Weighted Average Basis
Exit capitalization rate	6.74%	7.35%	6.50%	6.67%
Discount rate / internal rate of return ("IRR")	7.51%	8.01%	6.97%	7.32%
Annual market rent growth rate	3.17%	2.97%	2.80%	3.02%
Average holding period (years)	10.8	10.0	10.5	10.6

A change in the rates used would impact the calculation of the value of our real properties. For example, assuming all other factors remain constant, an increase in the weighted-average annual discount rate/IRR and the exit capitalization rate of 0.25% would reduce the value of our real properties by approximately 1.95% and 2.13%, respectively.

The following table sets forth the quarterly changes to the components of NAV for the Company and the reconciliation of NAV changes for each class of shares (amounts in thousands, except per share and footnoted information):

	Total		Class E Common Stock		Class A Common Stock		Class W Common Stock		Class I Common Stock		Class E OP Units
NAV as of June 30, 2015	$	1,439,393	$	1,164,065	$	10,050	$	8,798	$	159,966	$	96,514
Fund level changes to NAV
Realized/unrealized gains on net assets		5,149		4,181		35		32		562		339
Income accrual		23,391		18,683		178		165		2,744		1,621
Dividend accrual		(16,747)		(13,437)		(97)		(103)		(1,941)		(1,169)
Advisory fee		(3,847)		(3,074)		(29)		(27)		(451)		(266)
Performance based fee		(364)		(290)		(3)		(3)		(43)		(25)
Class specific changes to NAV		—		—		—		—		—		—
Dealer Manager fee		(71)		—		(16)		(15)		(40)		—
Distribution fee		(13)		—		(13)		—		—		—
NAV as of September 30, 2015
before share/unit sale/redemption     activity	$	1,446,891	$	1,170,128	$	10,105	$	8,847	$	160,797	$	97,014
Share/unit sale/redemption activity
Shares/units sold		12,201		4,539		630		1,697		5,335		—
Shares/units redeemed		(143,116)		(140,609)		—		(31)		(841)		(1,635)
NAV as of September 30, 2015	$	1,315,976	$	1,034,058	$	10,735	$	10,513	$	165,291	$	95,379
Shares/units outstanding as of June 30, 2015		195,153		157,819		1,363		1,193		21,692		13,086
Shares/units sold		1,650		616		85		229		720		—
Shares/units redeemed		(19,335)		(18,998)		—		(4)		(113)		(220)
Shares/units outstanding as of September 30, 2015 (1)		177,468		139,437		1,448		1,418		22,299		12,866
NAV per share/unit as of June 30, 2015			$	7.38	$	7.38	$	7.38	$	7.38	$	7.38
Change in NAV per share/unit				0.04		0.04		0.04		0.04		0.04
NAV per share/unit as of September 30, 2015			$	7.42	$	7.42	$	7.42	$	7.42	$	7.42

________________

(1) Amounts reported do not include approximately 441,000 restricted stock units granted to the Advisor that remain unvested as of September 30, 2015.

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How We Measure Our Operating Performance

Funds From Operations

FFO Definition (“FFO”)

We believe that FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), is a meaningful supplemental measure of our operating performance because historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time, as reflected through depreciation and amortization expense. However, since real estate values have historically risen or fallen with market and other conditions, many industry investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient. Thus, NAREIT created FFO as a supplemental measure of operating performance for real estate investment trusts that consists of net income (loss), calculated in accordance with GAAP, plus real estate-related depreciation and amortization and impairment of depreciable real estate, less gains (or losses) from dispositions of real estate held for investment purposes.

The following unaudited table presents a reconciliation of FFO to net income (loss) for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands, except per share information):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Reconciliation of net earnings to FFO:
Net (loss) income attributable to common stockholders	$	(128)	$	(7,039)	$	123,525	$	23,887
Add (deduct) NAREIT-defined adjustments:
Depreciation and amortization expense		20,851		21,918		61,404		66,481
Gain on disposition of real property (1)		(4,567)		—		(133,234)		(36,140)
Impairment of real estate property		6,500		9,500		8,124		9,500
Noncontrolling interests’ share of net (loss) income		(1,297)		(475)		7,358		4,405
Noncontrolling interests’ share of FFO		(1,594)		(1,712)		(4,874)		(5,002)
FFO attributable to common shares-basic		19,765		22,192		62,303		63,131
FFO attributable to dilutive OP Units		1,473		1,576		4,466		4,575
FFO attributable to common shares-diluted	$	21,238	$	23,768	$	66,769	$	67,706
FFO per share-basic and diluted	$	0.11	$	0.12	$	0.35	$	0.36
Weighted average number of shares outstanding
Basic		174,290		178,729		179,168		177,717
Diluted		187,279		191,422		192,020		190,605

_________________

(1) Includes amounts attributable to discontinued operations.

Company-Defined FFO

As part of its guidance concerning FFO, NAREIT has stated that the “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” As a result, modifications to FFO are common among REITs as companies seek to provide financial measures that meaningfully reflect the specific characteristics of their businesses. In addition to the NAREIT definition of FFO and other GAAP measures, we provide a Company-Defined FFO measure that we believe is helpful in assisting management and investors assess the sustainability of our operating performance. As described further below, our Company-Defined FFO presents a performance metric that adjusts for items that we do not believe to be related to our ongoing operations. In addition, these adjustments are made in connection with calculating certain of the Company’s financial covenants including its interest coverage ratio and fixed charge coverage ratio and therefore we believe this metric will help our investors better understand how certain of our lenders view and measure the financial performance of the Company and ultimately its compliance with these financial covenants. However, no single measure can provide users of financial information with sufficient information and only our disclosures read as a whole can be relied upon to adequately portray our financial position, liquidity and results of operations.

Our Company-Defined FFO is derived by adjusting FFO for the following items: acquisition-related expenses and gains, losses associated with extinguishment of debt and financing commitments, and gains and losses on derivatives. Historically, Management has also adjusted FFO for certain other adjustments that did not occur in any of the periods presented, and are further described in Item 7 of Part 1 of our Annual Report on Form 10-K, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—How We Measure Our Performance.” Management’s evaluation of our future operating performance excludes the items set forth above based on the following economic considerations:

Acquisition-related expenses — For GAAP purposes, expenses associated with efforts to acquire real properties, including efforts related to acquisition opportunities that are not ultimately completed, are recorded to earnings. We believe by excluding

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acquisition-related expenses, Company-Defined FFO provides useful supplemental information for management and investors when evaluating the sustainability of our operating performance, because these types of expenses are directly correlated to our investment activity rather than our ongoing operating activity.

Losses on extinguishment of debt and financing commitments — Losses on extinguishment of debt and financing commitments represent losses incurred as a result of the early retirement of debt obligations and breakage costs and fees incurred related to certain of our derivatives and other financing commitments. Such losses may be due to dispositions of assets, the repayment of debt prior to its contractual maturity. Our management believes that any such losses are not related to our ongoing operations. Accordingly, we believe by excluding losses on extinguishment of debt and financing commitments, Company-Defined FFO provides useful supplemental information for management and investors when evaluating the sustainability of our operating performance.

Unrealized gains and losses on derivatives — Unrealized gains and losses on derivatives represent the gains or losses on the fair value of derivative instruments due tohedge ineffectiveness. As these gains or losses relate to underlying long-term assets and liabilities, where we are not speculating or trading assets, our management believes that any such gains or losses are not reflective of our ongoing operations. Accordingly, we believe by excluding unrealized gains or losses on derivatives, Company-Defined FFO provides useful supplemental information for management and investors when evaluating the sustainability of our operating performance.

We also believe that Company-Defined FFO allows investors and analysts to compare the performance of our portfolio with other REITs that are not currently affected by the adjusted items. In addition, as many other REITs adjust FFO to exclude the items described above, we believe that our calculation and reporting of Company-Defined FFO may assist investors and analysts in comparing our performance with that of other REITs. However, because Company-Defined FFO excludes items that are an important component in an analysis of our historical performance, such supplemental measure should not be construed as a complete historical performance measure and may exclude items that have a material effect on the value of our common stock.

The following unaudited table presents a reconciliation of Company-Defined FFO to FFO for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands, except per share information):

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Reconciliation of FFO to Company-Defined FFO:
FFO attributable to common shares-basic	$	19,765	$	22,192	$	62,303	$	63,131
Add (deduct) our adjustments:
Acquisition-related expenses		476		372		1,259		962
Loss on extinguishment of debt and financing     commitments		—		—		1,168		63
Unrealized loss on derivatives		117		—		0		—
Noncontrolling interests’ share of     NAREIT-defined FFO		1,594		1,712		4,874		5,002
Noncontrolling interests’ share of     Company-Defined FFO		(1,635)		(1,736)		(5,035)		(5,070)
Company-Defined FFO attributable to     common shares-basic		20,317		22,540		64,569		64,088
Company-Defined FFO attributable to     dilutive OP Units		1,514		1,601		4,628		4,644
Company-Defined FFO attributable to     common shares-diluted	$	21,831	$	24,141	$	69,197	$	68,732
Company-Defined FFO per share-basic     and diluted	$	0.12	$	0.13	$	0.36	$	0.36
Weighted average number of shares outstanding
Basic		174,290		178,729		179,168		177,717
Diluted		187,279		191,422		192,020		190,605

Limitations of FFO and Company-Defined FFO

FFO (both NAREIT-defined and Company-Defined) is presented herein as a supplemental financial measure and has inherent limitations. We do not use FFO or Company-Defined FFO as, nor should they be considered to be, an alternative to net income (loss) computed under GAAP as an indicator of our operating performance, or as an alternative to cash from operating activities computed under GAAP, or as an indicator of liquidity or our ability to fund our short or long-term cash requirements, including

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distributions to stockholders. Management uses FFO and Company-Defined FFO as indications of our future operating performance and as a guide to making decisions about future investments. Our FFO and Company-Defined FFO calculations do not present, nor do we intend them to present, a complete picture of our financial condition and operating performance. In addition, other REITs may define FFO and an adjusted FFO metric differently and choose to treat acquisition-related expenses and potentially other accounting line items in a manner different from us due to specific differences in investment strategy or for other reasons; therefore, comparisons with other REITs may not be meaningful. Our Company-Defined FFO calculation is limited by its exclusion of certain items previously discussed, but we continuously evaluate our investment portfolio and the usefulness of our Company-Defined FFO measure in relation thereto. We believe that net income (loss) computed under GAAP remains the primary measure of performance and that FFO or Company-Defined FFO are only meaningful when they are used in conjunction with net income (loss) computed under GAAP. Further, we believe that our consolidated financial statements, prepared in accordance with GAAP, provide the most meaningful picture of our financial condition and operating performance.

Specifically with respect to fees and expenses associated with the acquisition of real property, which are excluded from Company-Defined FFO, such fees and expenses are characterized as operational expenses under GAAP and included in the determination of net income (loss) and income (loss) from operations, both of which are performance measures under GAAP. The purchase of operating properties is a key strategic objective of our business plan focused on generating operating income and cash flow in order to fund our obligations and to make distributions to investors. However, as the corresponding acquisition-related costs are paid in cash, these acquisition-related costs negatively impact our GAAP operating performance and our GAAP cash flows from operating activities during the period in which efforts are undertaken to acquire properties. In addition, if we acquire a property after all offering proceeds from our public offerings have been invested, there will not be any offering proceeds to pay the corresponding acquisition-related costs. Accordingly, such costs will then be paid from other sources of cash such as additional debt proceeds, operational earnings or cash flow, net proceeds from the sale of properties, or other ancillary cash flows. Among other reasons as previously discussed, the treatment of acquisition-related costs is a reason why Company-Defined FFO is not a complete indicator of our overall financial performance, especially during periods in which efforts are undertaken to acquire properties. Note that, pursuant to our valuation procedures, acquisition-related expenses result in an immediate decrease to our NAV.

FFO and Company-Defined FFO may not be useful performance measures as a result of the various adjustments made to net income for the charges described above to derive such performance measures. Specifically, we intend to operate as a perpetual-life vehicle and, as such, it is likely for our operating results to be negatively affected by certain of these charges in the future, specifically acquisition-related expenses, as it is currently contemplated as part of our business plan to acquire additional investment properties which would result in additional acquisition-related expenses. Any change in our operational structure would cause the non-GAAP measure to be re-evaluated as to the relevance of any adjustments included in the non-GAAP measure. As a result, we caution investors against using FFO or Company-Defined FFO to determine a price to earnings ratio or yield relative to our NAV.

Further, FFO or Company-Defined FFO is not comparable to the performance measure established by the Investment Program Association (the “IPA”), referred to as “modified funds from operations,” or “MFFO,” as MFFO makes further adjustments including certain mark-to-market items and adjustments for the effects of straight-line rent. As such, FFO and Company-Defined FFO may not be comparable to the MFFO of non-listed REITs that disclose MFFO in accordance with the IPA standard. More specifically, Company-Defined FFO has limited comparability to the MFFO and other adjusted FFO metrics of those REITs that do not intend to operate as perpetual-life vehicles as such REITs have a defined acquisition stage. Because we do not have a defined acquisition stage, we may continue to acquire real estate and real estate-related investments for an indefinite period of time. Therefore, Company-Defined FFO may not reflect our future operating performance in the same manner that the MFFO or other adjusted FFO metrics of a REIT with a defined acquisition stage may reflect its operating performance after the REIT had completed its acquisition stage.

Neither the Commission nor any other regulatory body, nor NAREIT, has adopted a set of standardized adjustments that includes the adjustments that we use to calculate Company-Defined FFO. In the future, the Commission or another regulatory body, or NAREIT, may decide to standardize the allowable adjustments across the non-listed REIT industry at which point we may adjust our calculation and characterization of Company-Defined FFO.

Net Operating Income (“NOI”)

We also use NOI as a supplemental financial performance measure because NOI reflects the specific operating performance of our real properties and debt related investments and excludes certain items that are not considered to be controllable in connection with the management of each property, such as other-than-temporary impairment, losses related to provisions for losses on debt related investments, gains or losses on derivatives, acquisition-related expenses, losses on extinguishment of debt and financing commitments, interest income, depreciation and amortization, general and administrative expenses, advisory fees, interest expense and noncontrolling interests. However, NOI should not be viewed as an alternative measure of our operating financial performance as a whole, since it does exclude such items that could materially impact our results of operations. Further, our NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance. We present NOI in the tables below, and include a reconciliation to GAAP in Note 11 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

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Our Operating Results

Three Months Ended September 30, 2015 Compared to the Three Months Ended September 30, 2014

The following unaudited table illustrates the changes in rental revenue, rental expenses and net operating income for the three months ended September 30, 2015 compared to the three months ended September 30, 2014. Our same store portfolio includes all operating properties that we owned for the entirety of both the current and prior year reporting periods. Our same store portfolio includes 51 properties acquired prior to January 1, 2014 and owned through September 30, 2015, comprising approximately 8.2 million square feet. A discussion of these changes follows the table (dollar amounts in thousands):

	For the Three Months Ended September 30,
	2015		2014		$ Change		% Change
Revenue
Base rental revenue-same store (1)	$	37,055	$	36,571	$	484	1%
Other rental revenue-same store		6,452		7,841		(1,389)	-18%
Total rental revenue-same store		43,507		44,412		(905)	-2%
Rental revenue-2014/2015 acquisitions/     dispositions (2)		9,347		12,381		(3,034)	-25%
Total rental revenue		52,854		56,793		(3,939)	-7%
Debt related income		807		1,798		(991)	-55%
Total revenue	$	53,661	$	58,591	$	(4,930)	-8%
Rental Expenses
Same store	$	11,613	$	11,103	$	510	5%
2014/2015 acquisitions/dispositions (2)		3,264		1,701		1,563	92%
Total rental expenses	$	14,877	$	12,804	$	2,073	16%
Net Operating Income
Real property-same store	$	31,894	$	33,309	$	(1,415)	-4%
Real property-2014/2015 acquisitions/     dispositions (2)		6,083		10,680		(4,597)	-43%
Debt related income		807		1,798		(991)	-55%
Total net operating income (3)	$	38,784	$	45,787	$	(7,003)	-15%

__________________

(1) Base rental revenue represents contractual base rental revenue earned by us from our tenants and does not include the impact of certain GAAP adjustments to rental revenue, such as straight-line rent adjustments, amortization of above-market intangible lease assets or the amortization of below-market lease intangible liabilities. Such GAAP adjustments and other rental revenue such as expense recovery revenue are included in the line item referred to as “other rental revenue.”

(2) Excludes amounts associated with our discontinued operations.

(3) For a discussion as to why we view net operating income to be an appropriate supplemental performance measure, refer to “—How We Measure Our Operating Performance—Net Operating Income (“NOI”)” above. See also Note 11 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

Net Operating Income

Base Rental Revenue - Same Store

The table below presents the factors contributing to the increase in our same store base rental revenue for the three months ended September 30, 2015 and 2014 (dollar amounts other than annualized base rent per square foot in thousands):

Same Store Portfolio	Base Rent for the  Three Months Ended September 30,						Average % Leased for the  Three Months Ended September 30,		Annualized Base Rent per Square Foot for the Three Months Ended September 30,
	2015		2014			$ Change	2015	2014	2015		2014
Office	$	24,578	$	24,365	$	213	90.3%	96.3%	$	31.42	$	29.20
Industrial		1,208		1,034		174	72.2%	84.1%		3.51		2.58
Retail		11,269		11,172		97	94.7%	94.9%		16.64		16.47
Total base rental     revenue - same store	$	37,055	$	36,571	$	484	87.6%	93.0%	$	20.54	$	19.11

Base rental revenue in our same store office portfolio increased for the three months ended September 30, 2015, compared to the same period in 2014, primarily due to (i) an increase in average base rent per square foot and (ii) expiration of rental concessions, partially offset by the decrease in the average leased square feet for the three months ended September 30, 2015, compared to the same period in 2014.

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Other Rental Revenue - Same Store

Same store other rental revenue decreased for the three months ended September 30, 2015, compared to the same period in 2014, primarily due to a decrease in our straight line rent adjustment within our same store portfolio due to rent increases and the expiration of concessions.

Rental Expenses - Same Store

The table below presents the amounts recorded and changes in rental expense of our same store portfolio for the three months ended September 30, 2015 and 2014 (dollar amounts in thousands):

	For the Three Months Ended September 30,
	2015		2014		$ Change		% Change
Real estate taxes	$	4,380	$	4,384	$	(4)	-0.1%
Repairs and maintenance		3,163		2,844		319	11.2%
Utilities		1,712		1,615		97	6.0%
Property management fees		839		855		(16)	-1.9%
Insurance		253		308		(55)	-17.9%
Other		1,266		1,097		169	15.4%
Total same store     rental expense	$	11,613	$	11,103	$	510	4.6%

Debt Related Income

Debt related income decreased for the three months ended September 30, 2015, compared to the same period in 2014. The decrease is primarily attributable to the repayments of debt related investments of approximately $69.8 million since June 30, 2014, partially offset by the investment of approximately $4.9 million in debt related investments in the same period.

Other Operating Expenses

Impairment of Real Estate Property

During the three months ended September 30, 2015, we recorded a $6.5 million impairment charge related to a consolidated office propertylocated in the Chicago, IL market, which we acquired in February 2007 and we hold through a joint venture in which we are not the managing partner. We have an 80% ownership interest in the office property. During the three months ended September 30, 2014, we recorded a $9.5 million impairment related to a wholly owned retail property in the Pittsburgh, PA market.

In the calculation of our NAV, our real estate assets are carried at fair value using valuation methodologies consistent with ASC Topic 820, Fair Value Measurements and Disclosures. As a result, the timing of valuation changes recorded in our NAV will not necessarily be the same as for impairment charges recorded to our financial statements prepared pursuant to GAAP.

Other Income (Expenses)

Interest Expense

Interest expense decreased for the three months ended September 30, 2015, compared to the same period in 2014, primarily due tolower average mortgage note borrowings during the three months ended September 30, 2015, and thefull repayment of our other secured borrowings and financing obligations during 2015, partially offset by an increase in interest expense on our unsecured borrowings due to higher average borrowings during the three months ended September 30, 2015. The following table further describes our interest expense by debt obligation, and includes amortization of deferred financing costs, amortization related to our derivatives, and amortization of discounts and premiums for the three months ended September 30, 2015 and 2014 (amounts in thousands):

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	For the Three Months Ended September 30,
Debt Obligation	2015		2014
Mortgage notes	$	7,966	$	12,435
Unsecured borrowings		2,985		2,194
Other secured borrowings		—		342
Financing obligations		—		305
Total interest expense	$	10,951	$	15,276

Gain on Sale of Real Property

During the three months ended September 30, 2015, we disposed of (i) an office property in the Los Angeles, CA market, for which we recorded a gain on sale of real property of approximately $2.9 million, and (ii) a land parcel in the Denver, CO market, for which we recorded a gain on sale of real property of approximately $1.7 million. During the three months ended September 30, 2014, we recorded no gain or loss on sale of real property due to a lack of disposition activity.

Nine Months Ended September 30, 2015 Compared to the Nine Months Ended September 30, 2014

The following unaudited table illustrates the changes in rental revenue, rental expenses and net operating income for the nine months ended September 30, 2015 compared to the nine months ended September 30, 2014. Our same store portfolio includes all operating properties that we owned for the entirety of both the current and prior year reporting periods. Our same store portfolio includes 51 properties acquired prior to January 1, 2014 and owned through September 30, 2015, comprising approximately 8.2 million square feet. A discussion of these changes follows the table (dollar amounts in thousands):

	For the Nine Months Ended September 30,
	2015		2014		$ Change		% Change
Revenue
Base rental revenue-same store (1)	$	111,608	$	109,336	$	2,272	2%
Other rental revenue-same store		22,805		23,413		(608)	-3%
Total rental revenue-same store		134,413		132,749		1,664	1%
Rental revenue-2014/2015 acquisitions/     dispositions (2)		28,895		34,184		(5,289)	-15%
Total rental revenue		163,308		166,933		(3,625)	-2%
Debt related income		5,594		5,571		23	0%
Total revenue	$	168,902	$	172,504	$	(3,602)	-2%
Rental Expenses
Same store	$	35,304	$	33,646	$	1,658	5%
2014/2015 acquisitions/dispositions (2)		8,108		4,301		3,807	89%
Total rental expenses	$	43,412	$	37,947	$	5,465	14%
Net Operating Income
Real property-same store	$	99,109	$	99,103	$	6	0%
Real property-2014/2015 acquisitions/     dispositions (2)		20,787		29,883		(9,096)	-30%
Debt related income		5,594		5,571		23	0%
Total net operating income (3)	$	125,490	$	134,557	$	(9,067)	-7%

__________________

(1) Base rental revenue represents contractual base rental revenue earned by us from our tenants and does not include the impact of certain GAAP adjustments to rental revenue, such as straight-line rent adjustments, amortization of above-market intangible lease assets or the amortization of below-market lease intangible liabilities. Such GAAP adjustments and other rental revenue such as expense recovery revenue are included in the line item referred to as “other rental revenue.”

(2) Excludes amounts associated with our discontinued operations.

(3) For a discussion as to why we view net operating income to be an appropriate supplemental performance measure, refer to “—How We Measure Our Operating Performance—Net Operating Income” above. See also Note 11 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

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Net Operating Income

Base Rental Revenue - Same Store

The table below presents the factors contributing to the increase in our same store base rental revenue for the nine months ended September 30, 2015 and 2014 (base rent dollar amounts in thousands):

Same Store Portfolio	Base Rent for the  Nine Months Ended September 30,						Average % Leased for the  Nine Months Ended September 30,		Annualized Base Rent per Square Foot for the Nine Months Ended September 30,
	2015		2014			$ Change	2015	2014	2015		2014
Office	$	74,257	$	72,276	$	1,981	94.3%	95.7%	$	30.30	$	29.05
Industrial		3,676		3,693		(17)	77.8%	84.7%		3.30		3.05
Retail		33,675		33,367		308	93.8%	94.2%		16.73		16.52
Total base rental     revenue - same store	$	111,608	$	109,336	$	2,272	90.3%	92.6%	$	20.01	$	19.11

Base rental revenue in our same store office portfolio increased for the nine months ended September 30, 2015, compared to the same period in 2014, primarily due to (i) an increase in average base rent per square foot and (ii) expiration of rental concessions, partially offset by a decrease in the average leased square feet during the nine months ended September 30 2015, compared to the same period in 2014.

Other Rental Revenue - Same Store

Same store other rental revenue decreased for the nine months ended September 30, 2015, compared to the same period in 2014, primarily due to a decrease in our straight line rent adjustment within our same store portfoliodue to rent increases and the expiration of concessions, partially offset by lease termination payments for approximately $1.5 million related to tenants in our retail and office portfolios that we received during the nine months ended September 30, 2015 and (ii) an increase in recoverable revenue due to an increase in snow removal costs incurred by properties in our Greater Boston market.

Rental Expenses - Same Store

The table below presents the amounts recorded and changes in rental expense of our same store portfolio for the nine months ended September 30, 2015 and 2014 (dollar amounts in thousands):

	For the Nine Months Ended September 30,
	2015		2014		$ Change		% Change
Real estate taxes	$	13,064	$	12,749	$	315	2.5%
Repairs and maintenance (1)		10,895		9,161		1,734	18.9%
Utilities		4,784		5,178		(394)	-7.6%
Property management fees		2,547		2,399		148	6.2%
Insurance		867		922		(55)	-6.0%
Other		3,147		3,237		(90)	-2.8%
Total same store     rental expense	$	35,304	$	33,646	$	1,658	4.9%

__________________

(1) The increase in repairs and maintenance expenses for the nine months ended September 30, 2015, compared to the same period in 2014, is primarily attributable to snow removal costs incurred by properties in our Greater Boston market.

Debt Related Income

Debt related income decreased for the nine months ended September 30, 2015, compared to the same period in 2014. The decrease is primarily attributable to the repayments of debt related investments of approximately $99.5 million during 2014 and 2015, partially offset by the investment of approximately $6.4 million in debt related investments in the same period and the receipt of early repayment fees during 2015.

Other Operating Expenses

Real Estate Depreciation and Amortization Expense

Real estate depreciation and amortization expense decreased by $5.1 million, or 8%, for the nine months ended September 30, 2015, compared to the same period in 2014, primarily due to our disposition of real properties during 2014 and 2015, partially offset by our acquisition of properties during the same period.

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Advisory Fees

Advisory fees increased by $1.3 million, or 12%, for the nine months ended September 30, 2015, compared to the same period in 2014, primarily due to (i) an increase in the performance component of our advisory fees due to an increase in our annual non-compounded investment return and (ii) an increase in the fixed component of the advisory fees resulting from an increase in our average Aggregate Fund NAV. For more information on the structure of our advisory fees, see Note 11 to our financial statements beginning on page F-1 of our Annual Report on Form 10-K filed with the Commission on March 3, 2015.

Impairment of Real Estate Property

During the nine months ended September 30, 2015, we recorded a  $6.5 million impairment charge related to a consolidated office propertylocated in the Chicago, IL market, which we acquired in February 2007 and we hold through a joint venture in which we are not the managing partner.  We have an 80% ownership interest in the office property. In addition, during the nine months ended September 30, 2015, we recorded $1.6 million of impairment charges related to a whollyowned retail propertythat we acquired in May 2007 in the Pittsburgh, PA market. During the nine months ended September 30, 2014, we recorded a $9.5 million impairment related to this retail property.

In the calculation of our NAV, our real estate assets are carried at fair value using valuation methodologies consistent with ASC Topic 820, Fair Value Measurements and Disclosures. As a result, the timing of valuation changes recorded in our NAV will not necessarily be the same as for impairment charges recorded to our financial statements prepared pursuant to GAAP.

Other Income (Expenses)

Interest Expense

Interest expense decreased for the nine months ended September 30, 2015, compared to the same period in 2014, primarily due to (i) lower average mortgage note borrowings, and (ii) our full repayment of repurchase facilities and financing obligations during 2015, partially offset by an increase in interest expense on our unsecured borrowings due to higher average borrowings. The following table further describes our interest expense by debt obligation, and includes amortization of deferred financing costs, amortization related to our derivatives, and amortization of discounts and premiums (amounts in thousands):

	For the Nine Months Ended September 30,
Debt Obligation	2015		2014
Mortgage notes (1)	$	27,709	$	38,507
Unsecured borrowings		7,779		6,398
Other secured borrowings		477		1,036
Financing obligations		243		904
Total interest expense	$	36,208	$	46,845

__________________

(1) Includes interest expense attributable to discontinued operations of $296,000 for the nine months ended September 30, 2014. 

Loss on Extinguishment of Debt and Financing Commitments

Loss on extinguishment of debt and financing commitments was approximately $1.2 million and $63,000 for the nine months ended September 30, 2015 and 2014, respectively. The loss in 2015 primarily resulted from (i) deferred financing costs written off due to the amendment and restatement of the Old Facility on January 13, 2015 (see “Significant Transactions During the Nine Months Ended September 30, 2015 – Financing Activity – Recast of Credit Facility” above and Note 5 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q for more information regarding the recast of the Old Facility), and (ii) accelerated amortization of deferred financing costs upon the repayment of borrowings under our repurchase facilities earlier than we had originally expected. The loss in 2014 primarily resulted from the accelerated amortization of deferred financing costs upon the repayment of borrowings under our repurchase facilities earlier than we had originally expected.

Gain on Sale of Real Property

During the nine months ended September 30, 2015, we disposed of (i) a portfolio of 12 office and industrial properties, for which we recorded gains on sale of real property of approximately $105.5 million, and (ii) two properties and a land parcel, for which we recorded an aggregate gain on sale of real property of approximately $27.7 million. During the nine months ended September 30, 2014, we disposed of (i) a portfolio of 12 industrial properties, for which we recorded a gain on sale of real property of approximately $29.5 million, which is classified within discontinued operations, and (ii) three properties and a land parcel, for which we recorded an aggregate gain on sale of real property of approximately $6.5 million.

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Liquidity and Capital Resources

Liquidity Outlook

We believe our existing cash balance, our available credit under our Revolving Credit Facility, cash from operations, additional proceeds from our public offerings, proceeds from the sale of existing investments, and prospective debt or equity issuances will be sufficient to meet our liquidity and capital needs for the foreseeable future, including the next 12 months. Our capital requirements over the next 12 months are anticipated to include, but are not limited to, operating expenses, distribution payments, debt service payments, including debt maturities of approximately $202.6 million, redemption payments, issuer tender offers, and acquisitions of real property and debt related investments. Subsequent to September 30, 2015, we repaid approximately $24.2 million of debt that was scheduled to mature over the next 12 months. Borrowings that are subject to extension options are also subject to certain lender covenants and restrictions that we must meet to extend the initial maturity date. We currently believe that we will qualify for these extension options. However, we cannot guarantee that we will meet the requirements to extend the notes upon initial maturity. In the event that we do not qualify to extend the notes, we expect to repay them with proceeds from new borrowings or available proceeds from our Revolving Credit Facility.

In order to maintain a reasonable level of liquidity for redemptions of Class A, Class W and Class I shares pursuant to our Second Amended and Restated Class A, W and I Share Redemption Program (the “Class AWI SRP”), we intend to generally maintain under normal circumstances the following aggregate allocation to sources of liquidity, which include liquid assets and capacity under our borrowing facilities: (1) 10% of the aggregate NAV of our outstanding Class A, Class W and Class I shares up to $1 billion of collective Class A, Class W and Class I share NAV, and (2) 5% of the aggregate NAV of our outstanding Class A, Class W and Class I shares in excess of $1 billion of collective Class A, Class W and Class I share NAV. However, as set forth in the Class AWI SRP, no assurance can be given that we will maintain this allocation to liquid assets. Our board of directors has the right to modify, suspend or terminate our Class AWI SRP if it deems such action to be in the best interest of our stockholders. As of September 30, 2015, the aggregate NAV of our outstanding Class A, Class W and Class I shares was approximately $186.6 million.

We calculate our leverage for reporting purposes as our total borrowings, calculated on a GAAP basis, divided by the fair value of our real property and debt related investments. Based on this methodology, as of September 30, 2015, our leverage was 42.8%. There are other methods of calculating our overall leverage ratio that may differ from this methodology, such as the methodology used in determining our compliance with corporate borrowing covenants.

As of September 30, 2015, we had approximately $15.2 million of cash compared to $14.5 million as of December 31, 2014. The following discussion summarizes the sources and uses of our cash during the nine months ended September 30, 2015.

Operating Activities

Net cash provided by operating activities increased by approximately $15.0 million to approximately $77.9 million for the nine months ended September 30, 2015 from approximately $62.9 million for the same period in 2014. The increase is primarily due to (i) a decrease of $8.8 million in cash paid for interest primarily resulting from our extinguishment of mortgage note and other secured borrowings,  and (ii) the receipt of approximately $6.4 million of accrued interest on our mezzanine debt investment upon repayment.

Lease Expirations

Our primary source of funding for our property-level operating expenses and debt service payments is rent collected pursuant to our tenant leases. Our operating portfolio was approximately 88.8% leased as of September 30, 2015, compared to approximately 92.8% as of September 30, 2014. Our properties are generally leased to tenants for terms ranging from three to ten years. As of September 30, 2015, the weighted average remaining term of our leases was approximately 6.8 years, based on contractual remaining base rent, 4.2 years, based on annualized base rent, and 4.5 years, based on leased square footage. The following is a schedule of expiring leases for our consolidated operating properties by annualized base rent and square footage as of September 30, 2015 and assuming no exercise of lease renewal options (dollar amounts and square footage in thousands):

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	Lease Expirations
Year	Number of Leases Expiring	Annualized Base Rent (1)		%	Square Feet	%
2015 (2)	44	$	1,996	1.2%	132	1.5%
2016	80		20,715	11.7%	821	9.5%
2017	82		42,434	24.0%	1,376	15.9%
2018	105		13,097	7.4%	617	7.1%
2019	96		24,093	13.6%	1,204	13.8%
2020	100		22,302	12.6%	1,088	12.6%
2021	41		14,929	8.5%	1,532	17.7%
2022	27		9,272	5.2%	529	6.1%
2023	21		14,310	8.1%	585	6.8%
2024	18		4,325	2.4%	295	3.4%
Thereafter	31		9,174	5.3%	482	5.6%
Total	645	$	176,647	100.0%	8,661	100.0%

__________________

(1) Annualized base rent represents the annualized monthly base rent of leases executed as of September 30, 2015.

(2) Represents the number of leases expiring and annualized base rent for the remainder of 2015. Includes eight leases with annualized base rent of approximately $110,000 that are on a month-to-month basis.

Our three most significant leases, together comprising approximately 32.5% of our annualized base rent as of September 30, 2015, will expire between December 2016 and September 2017. Based on market information as of September 30, 2015, we have obtained third-party estimates that current market rental rates, on a weighted-average basis utilizing annualized base rent as of September 30, 2015, are approximately 15%lower than our in-place leases. Accordingly, we believe replicating the cash flows from these leases would be very difficult. If any one of these tenants does not renew their respective lease, we would be at greater risk of reduced revenues due to downtime, and when the leases expire, we may be forced to lower the rental rates or offer other concessions in order to attractnew tenants. In addition, we could be required to expend substantial funds to construct new tenant improvements in the vacated space.

During the nine months ended September 30, 2015, we signed new leases for approximately 279,000 square feet and renewal leases for approximately 587,000 square feet. Tenant improvements and leasing commissions related to these leases were approximately $4.4 million and $2.5 million, respectively, or $4.97 and $2.78 per square foot, respectively. Of the leases described above, approximately 594,000 square feet were considered comparable leases related to which we realized average straight line rent growth of 21.7%. Comparable leases comprise leases for which prior leases were in place for the same suite within 12 months of executing the new lease.

Investing Activities

Net cash provided by investing activities increasedapproximately $145.1 million to approximately $167.7 million for the nine months ended September 30, 2015 from $22.6 million for the same period in 2014. The increase is primarily due to (i) an increase in proceeds from disposition of real properties during the nine months ended September 30, 2015, compared to the same period in 2014, and (ii) the payoff of five debt related investments during the nine months ended September 30, 2015, partially offset by (i) an increase in cash paid to acquire operating properties during the nine months ended September 30, 2015 compared to the same period in 2014, and (ii) an increase in capital expenditures in real property during the nine months ended September 30, 2015.

Financing Activities

Net cash used in financing activities increasedapproximately $162.4 million to approximately $244.9 million for the nine months ended September 30, 2015 from $82.5 million for the same period in 2014. The increase is primarily due to (i) extinguishment of certain mortgage notesand other secured borrowings during the nine months ended September 30, 2015, and (ii)the repurchase of our common shares pursuant to a self-tender offer and redemption of our common shares pursuant to our share redemption programs during the nine months ended September 30, 2015, partially offset by an increase in net proceeds from ourunsecured borrowing facilities during the nine months ended September 30, 2015, compared to the same period in 2014.

During the nine months ended September 30, 2015 and 2014, we raised approximately $73.2 millionand $68.6 million in proceeds from the sale of Class A, W, and I shares, respectively, including approximately $2.3 million and $549,000 under the distribution reinvestment plan, respectively. We have offered and will continue to offer Class E shares of common stock through the Class E DRIP Offering. The amount raised under the Class E DRIP Offering decreased by approximately $1.2 million toapproximately $13.8 million for the nine months ended September 30, 2015, from approximately $15.0 million for the same period in 2014. In addition, during the nine months ended September 30, 2015, we raised approximately $7.3 million from OP Units issued in a real estate transaction.

Debt Maturities

11 of our mortgage notes with an aggregate outstanding balance as of September 30, 2015 of approximately $310.8 million have initial maturities before January 1, 2017. Of these borrowings, one mortgage note with an outstanding balance of

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approximately $108.2 million as of September 30, 2015 has extension options beyond December 31, 2016. These extension options are subject to certain lender covenants and restrictions that we must meet to extend the maturity date. We currently believe that we will qualify for our extension options.

For additional information on our upcoming debt maturities, see Note 5 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

Distributions

To obtain the favorable tax treatment accorded to REITs, we normally will be required each year to distribute to our stockholders at least 90% of our real estate investment trust taxable income, determined without regard to the deduction for distributions paid and by excluding net capital gains. The payment of distributions is determined by our board of directors and may be adjusted at its discretion at any time. Distribution levels are set by our board of directors at a level it believes to be appropriate and sustainable based upon a review of a variety of factors including the current and anticipated market conditions, current and anticipated future performance and make-up of our investments, our overall financial projections and expected future cash needs.

The following table sets forth the amounts and sources of distributions declared for the three and nine months ended September 30, 2015 and 2014 (dollar amounts in thousands):

	For the Three Months Ended						For the Nine Months Ended
Distributions:	September 30, 2015		% of Total Distributions	September 30, 2014		% of Total Distributions	September 30, 2015		% of Total Distributions	September 30, 2014		% of Total Distributions
Common stock distributions     paid in cash	$	10,526	61.7%	$	10,327	61.6%	$	32,180	61.9%	$	30,955	61.7%
Other cash distributions (1)		1,277	7.5%		1,185	7.1%		3,723	7.2%		3,645	7.3%
Total cash distributions	$	11,803	69.2%	$	11,512	68.6%	$	35,903	69.1%	$	34,600	68.9%
Common stock distributions     reinvested in common    shares		5,257	30.8%		5,263	31.4%		16,085	30.9%		15,603	31.1%
Total distributions	$	17,060	100.0%	$	16,775	100.0%	$	51,988	100.0%	$	50,203	100.0%
Sources of distributions:
Cash flow from operations (2)(3)	$	17,060	100.0%	$	16,775	100.0%	$	51,988	100.0%	$	50,203	100.0%
Financial performance metric:
NAREIT-defined FFO (4)	$	21,238	124.5%	$	23,768	141.7%	$	66,769	128.4%	$	67,706	134.9%

__________________

(1) Other cash distributions include (i) distributions declared for OP Units for the respective period, (ii) regular distributions made during the period to our joint venture partners that are noncontrolling interest holders, which exclude distributions of disposition proceeds related to properties sold by the joint ventures, and (iii) dealer manager and distribution fees we pay to our dealer manager with respect to the Class A, Class W and Class I shares. 

(2) Expenses associated with the acquisition of real property are recorded to earnings and as a deduction to our cash from operations. We incurred acquisition costs of approximately $476,000 and $1.3 millionduring the three and nine months ended September 30, 2015, respectively.  We incurred acquisition costs of approximately $372,000 and $962,000 during the three and nine months ended September 30, 2014, respectively. 

(3) Our long-term strategy is to fund the payment of quarterly distributions to investors entirely from our operations. There can be no assurance that we will achieve this strategy. In periods where cash flows from operations are not sufficient to fund distributions, we fund any shortfall with proceeds from borrowings.

(4) NAREIT-defined FFO is an operating metric and should not be used as a liquidity measure. However, management believes the relationship between NAREIT-defined FFO and distributions may be meaningful for investors to better understand the sustainability of our operating performance compared to distributions made. The definition of NAREIT-defined FFO, a reconciliation to GAAP net income, and a discussion of NAREIT-defined FFO’s inherent limitations are provided in “How We Measure Our Operating Performance” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Quarterly Report on Form 10-Q.

Redemptions

The following table sets forth relationships between the amount of redemption requests received by us pursuant to our Class E Share Redemption Program (the “Class E SRP”), the resulting pro-rata redemption caps, and actual amounts of Class E shares redeemed under the redemption program for each of the last four quarterly periods (share amounts in thousands):

For the Quarter Ended:	Number of Class E Shares Requested for Redemption	Number of Class E Shares Redeemed	Percentage of Class E Shares Requested for Redemption Redeemed	Percentage of Class E Shares Requested for Redemption Redeemed Pro Rata (1)	Average Price Paid per Share
December 31, 2014	18,907	1,964	10.4%	7.4%	$	7.16
March 31, 2015	18,996	1,530	8.1%	5.9%		7.30
June 30, 2015	20,657	5,005	24.2%	21.6%		7.38
September 30, 2015	12,908	1,845	14.3%	11.1%		7.42
Average	17,867	2,586	14.5%	11.8%	$	7.33

__________________

(1) Represents redemptions of shares from investors that did not qualify for death or disability redemptions.

Additionally, during the third quarter of 2015, we (i) redeemed approximately 17.2 million Class E shares at a purchase price of $7.25 per share for an aggregate cost of approximately $124.4 million pursuant to a self-tender offer, and (ii) satisfied 100% of redemption requests received pursuant to our Class AWI SRP; we redeemed approximately 113,000 Class I shares and 4,000 Class

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W shares for a weighted average price of approximately $7.34 per share pursuant to our Class AWI SRP. See “Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds” of this Quarterly Report on Form 10-Q for more information regarding redemptions of shares during the three months ended September  30, 2015.

Subsequent Events

For information regarding significant subsequent events, see Note 12 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q. In addition, the following acquisitions, dispositions, and financing transactions occurred subsequent to September 30, 2015.

Repayments of Mortgage Notes

Subsequent to September 30, 2015, we repaid fourmortgage note borrowings in full prior to their scheduled maturities within the open prepayment periodusing proceeds from our Revolving Credit Facility. The following table describes our repayment of mortgage noteborrowings subsequent to September 30, 2015 (dollar amounts in thousands):

Debt Obligation	Repayment Date	Balance as of September 30, 2015		Stated Interest Rate	Contractual Maturity Date	Collateral Type	Collateral Market
Abington	October 1, 2015	$	4,681	6.75%	January 1, 2016	Retail Property	Greater Boston
Hyannis	October 1, 2015		4,635	6.75%	January 1, 2016	Retail Property	Greater Boston
Riverport Portfolio	October 1, 2015		8,052	7.38%	April 1, 2016	Industrial Portfolio	Louisville, KY
DeGuigne	November 2, 2015		6,871	7.78%	February 1, 2016	Office Property	Silicon Valley, CA
Total/weighted average		$	24,239	7.25%

Acquisition of Real Property

On October 8, 2015, we acquired a retail property in Chester Springs, NJ comprising approximately 223,000 net rentable square feet from an unaffiliated third party, for a gross purchase price of approximately $53.8 million. At acquisition, the property was approximately 95% leased to 34 tenants. We acquired the property using existing cash and proceeds from our Revolving Credit Facility.

Borrowing Under Mortgage Note

On November 5, 2015, we received proceeds from a new mortgage note borrowing of approximately $70.0 million bearing interest at a fixed rate of 3.80%, which matures in November 2025 and is non-amortizing. The mortgage note is secured by a retail property in the Washington, DC market.

New Accounting Pronouncements and Significant Accounting Policies

For information regarding new accounting pronouncements and significant accounting policies, see Note 2 to our financial statements included in “Item 1. Financial Statements” of this Quarterly Report on Form 10-Q.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the adverse effect on the value of assets and liabilities that results from a change in the applicable market resulting from a variety of factors such as perceived risk, interest rate changes, inflation and overall general economic changes. Accordingly, we manage our market risk by matching projected cash inflows from operating, investing and financing activities with projected cash outflows for debt service, acquisitions, capital expenditures, distributions to stockholders and unit holders, and other cash requirements. Our outstanding borrowings are directly impacted by changes in market conditions. This impact is largely mitigated by the fact that the majority of our outstanding borrowings have fixed interest rates, which minimize our exposure to the risk that fluctuating interest rates may pose to our operating results and liquidity.

As of September 30, 2015, the fair value of our fixed rate debt was $540.5 million and the carrying value of our fixed rate debt was $536.0 million. The fair value estimate of our fixed rate debt was estimated using a discounted cash flow analysis utilizing rates we would expect to pay for debt of a similar type and remaining maturity if the loans were originated as of September 30, 2015. As we expect to hold our fixed rate instruments to maturity and the amounts due under such instruments would be limited to the outstanding principal balance and any accrued and unpaid interest, we do not expect that fluctuations in interest rates, and the resulting change in fair value of our fixed rate instruments, would have a significant impact on our operations.

As of September 30, 2015, we had approximately $83.3 million of unhedged variable rate borrowings outstanding indexed to LIBOR rates. If the LIBOR rates relevant to our remaining variable rate borrowings were to increase 10%, we estimate that our annual interest expense would increase by approximately $16,000 based on our outstanding floating-rate debt as of September 30, 2015.  

We may seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs by selectively utilizing derivative instruments to hedge exposures to changes in interest rates on loans secured by our assets. We maintain risk management control systems to monitor interest rate cash flow risk attributable to both our outstanding and forecasted debt obligations as well as our potential offsetting hedge positions. While this hedging strategy is designed to minimize the impact on our net income (loss) and funds from operations from changes in interest rates, the overall returns on our investments may be reduced. Our board of directors has established policies and procedures regarding our use of derivative instruments for hedging or other purposes. In addition to the above described risks, we are subject to additional credit risk. Credit risk refers to the ability of each individual borrower under our debt related investments to make required interest and principal payments on the scheduled due dates. We seek to reduce credit risk by actively monitoring our debt related investments and the underlying credit quality of our holdings. In the event of a significant rising interest rate environment and/or economic downturn, loan and collateral defaults may continue to increase and result in further credit losses that would continue to, or more severely, adversely affect our liquidity and operating results.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this report, management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to ensure that information required to be disclosed in the reports we file and submit under the Exchange Act, is recorded, processed, summarized and reported as and when required. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file and submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1A.  RISK FACTORS

Please see the risk factors discussed in Item 1A of Part I of our Annual Report on Form 10-K filed with the Commission on March 3, 2015, Item 1A of Part II of our Quarterly Report on Form 10-Q filed with the Commission on May 12, 2015, and Item 1A of Part II of our Quarterly Report on Form 10-Q filed with the Commission on August 13, 2015.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Share Redemption Program and Other Redemptions

As of September 30, 2015, no material changes had occurred to our Class E SRP or our separate Class AWI SRP as discussed in Item 5 of our Annual Report on Form 10-K filed with the Commission on March 3, 2015.

Pursuant to the Class E SRP as of September 30, 2015, we will not redeem during any consecutive 12-month period more than 5% of the number of Class E shares of common stock outstanding at the beginning of such 12-month period.

Currently, the Class AWI SRP imposes a quarterly cap on the aggregate “net redemptions” of our Class A, Class W and Class I share classes equal to the amount of shares of such classes with a value (based on the redemption price per share on the day the redemption is effected) of up to 5% of the aggregate NAV of the outstanding shares of such classes as of the last day of the previous calendar quarter (the “Quarterly Cap”). We use the term “net redemptions” to mean, for any quarter, the excess of our share redemptions (capital outflows) of our Class A, Class W and Class I share classes over the share purchases net of sales commissions (capital inflows) of such classes in any ongoing public offering of Class A, Class W or Class I shares, whether in a primary offering or pursuant to a distribution reinvestment plan. On any business day during a calendar quarter, the maximum amount available for redemptions will be equal to (1) 5% of the NAV of our outstanding Class A, Class W and Class I shares, calculated as of the last day of the previous calendar quarter, plus (2) proceeds from sales of new Class A, Class W and Class I shares in our public offering (including reinvestment of distributions but net of sales commissions) since the beginning of the current calendar quarter, less (3) proceeds paid to redeem shares of such classes since the beginning of the current calendar quarter through the prior business day. For each future quarter, our board of directors reserves the right to choose whether the Quarterly Cap will be applied to “gross redemptions,” meaning, for any class and any quarter, amounts paid to redeem shares of such class since the beginning of such calendar quarter, or “net redemptions.” In addition, for each future quarter, our board of directors reserves the right to choose whether the Quarterly Cap and the “net redemptions” test will be applied to our Class A, Class W and Class I shares on a class-specific basis rather than on the aggregate basis described above. If our board of directors chooses to have the Quarterly Cap and the “net redemptions” test apply on a class-specific basis, then “net redemptions” of our Class A, Class W and Class I share classes will mean, for any class and any quarter, the excess of our share redemptions (capital outflows) of such class over the share purchases net of sales commissions (capital inflows) of such class in any ongoing public offering of Class A, Class W or Class I shares, whether in a primary offering or pursuant to a distribution reinvestment plan. Further, the quarterly cap will mean a quarterly cap on the “net redemptions” of each of our Class A, Class W and Class I share classes equal to the amount of shares of such class with an aggregate value (based on the redemption price per share on the day the redemption is effected) of up to 5% of the NAV of the outstanding shares of such class as of the last day of the previous calendar quarter.Additionally, our board of directors has the right to modify, suspend or terminate our share redemption programs if it deems such action to be in the best interest of our stockholders.

In aggregate, for the three months ended September 30, 2015, we redeemed (i) approximately 17.2 million Class E shares pursuant to our self-tender offer for approximately $124.4 million and (ii) approximately 2.0 million shares of common stock pursuant to the Class E SRP and the Class AWI SRP for approximately $14.5 million, as described further in the table below (number of shares in thousands).

Period	Total Number of Shares Redeemed	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Pursuant to the Program (1)
July 1 - July 31, 2015	41	$	7.35	41	—
August 1 - August 31, 2015 (2)	17,177		7.25	17,177	—
September 1 - September 30, 2015	1,897		7.41	1,897	—
Total	19,115	$	7.27	19,115	—

__________________

(1) Redemptions are limited under the Class E SRP and the Class AWI SRP as described above. We redeemed all Class A, W, and I shares that were requested to be redeemed during the three months ended September 30, 2015. As of September 30, 2015, we had capacity under the Class AWI SRP to redeem up to an aggregate of $15.7 million of Class A, W, and I shares. Pursuant to the Class AWI SRP, this capacity resets at the beginning of each quarter.

(2) Includes (i)  approximately 17.2 million Class Eshares redeemed at $7.25 per share for an aggregate cost of approximately $124.4 million pursuant to our self-tender offer and (ii)approximately 24,000 shares redeemed pursuant to the Class E SRP and the Class AWI SRP, as discussed above.

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ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.  

ITEM 5.  OTHER INFORMATION

Distribution Reinvestment Plan Suitability Requirements

Pursuant to the terms of our distribution reinvestment plan (“DRP”), participants in the DRP must promptly notify us if at any time they fail to meet the current suitability requirements for making an investment in us.

The current suitability standards require that Class E stockholders participating in the DRP other than investors in Arizona, California, Ohio and Oregon have either:

· a net worth (exclusive of home, home furnishings and automobiles) of $150,000 or more; or

· a net worth (exclusive of home, home furnishings and automobiles) of at least $45,000 and had during the last tax year, or estimate that such investor will have during the current tax year, a minimum of $45,000 annual gross income.

The current suitability standards require that Class E stockholders participating in the DRP in Arizona, California, Ohio and Oregon must have either:

· a net worth (exclusive of home, home furnishings and automobiles) of $250,000 or more; or

· a net worth (exclusive of home, home furnishings and automobiles) of at least $70,000 and had during the last tax year, or estimate that such investor will have during the current tax year, a minimum of $70,000 annual gross income.

In addition, Class E stockholders participating in the DRP in Ohio and Oregon must have a net worth of at least 10 times their investment in us and any of our affiliates (namely, Industrial Income Trust Inc. and Industrial Property Trust Inc.).

The current suitability standards for Class A, Class W and Class I stockholders participating in the DRP are listed in the section entitled “Suitability Standards” in our current Class A, Class W and Class I public offering prospectus on file at www.sec.gov and on our website at www.dividendcapitaldiversified.com.

Stockholders can notify us of any changes to their ability to meet the suitability requirements or change their DRP election by contacting us at Dividend Capital Diversified Property Fund Inc., Investor Relations, 518 17th Street, Suite 1700, Denver, Colorado 80202, Telephone: (303) 228-2200.

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ITEM 6. EXHIBITS

Exhibit Number	Description
3.1	Articles of Restatement, incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K, filed March 21, 2012
3.2	Articles of Amendment, incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed July 12, 2012
3.3	Articles Supplementary (Class A shares), incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed July 12, 2012
3.4	Articles Supplementary (Class W shares), incorporated by reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K, filed July 12, 2012
3.5	Articles Supplementary (Class I shares), incorporated by reference to Exhibit 3.4 to the Company’s Current Report on Form 8-K, filed July 12, 2012
3.6	Certificate of Correction to Articles of Restatement, incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on March 26, 2014
3.7	Sixth Amended and Restated Bylaws, incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed December 8, 2014
4.1	Fourth Amended and Restated Distribution Reinvestment Plan, incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed July 12, 2012
4.2	Class E Share Redemption Program, incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, filed July 12, 2012
4.3	Statement regarding transfer restrictions, preferences, limitations and rights of holders of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates), incorporated by reference to Exhibit 4.5 to the Company’s Registration Statement on Form S-11 (No. 333-175989), filed April 15, 2013
4.4	Second Amended and Restated Class A, W and I Share Redemption Program, incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed December 17, 2014
10.1	Second Amended and Restated Dealer Manager Agreement, incorporated by reference to Exhibit 1.1 to the Company’s Current Report on Form 8-K, filed September 16, 2015.
31.1	Rule 13a-14(a) Certification of Principal Executive Officer*
31.2	Rule 13a-14(a) Certification of Principal Financial Officer*
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
99.1	Consent of Altus Group U.S., Inc.*
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase*
101.LAB	XBRL Taxonomy Extension Label Linkbase*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase*
101.DEF	XBRL Taxonomy Extension Definition Linkbase*

__________________

*    Filed or furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DIVIDEND CAPITAL DIVERSIFIED PROPERTY FUND INC.
Date: November 12, 2015	/s/ JEFFREY L. JOHNSON
	Jeffrey L. Johnson Chief Executive Officer
Date: November  12, 2015	/s/ M. KIRK SCOTT
	M. Kirk Scott Chief Financial Officer and Treasurer

48

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer Pursuant to

Rule 13a-14(a), Under the Securities Exchange Act of 1934, As Amended

I, Jeffrey L. Johnson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Dividend Capital Diversified Property Fund Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/S/ JEFFREY L. JOHNSON
Name:	Jeffrey L. Johnson
Title:	Chief Executive Officer

Date: November  12, 2015

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer Pursuant to

Rule 13a-14(a), Under the Securities Exchange Act of 1934, As Amended

I, M. Kirk Scott, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Dividend Capital Diversified Property Fund Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ M. KIRK SCOTT
Name:	M. Kirk Scott
Title:	Chief Financial Officer and Treasurer

Date: November 12, 2015

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer Pursuant to

18 U.S.C. Section 1350

I, Jeffrey L. Johnson, as Chief Executive Officer of Dividend Capital Diversified Property Fund Inc. certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 12, 2015

	/S/ JEFFREY L. JOHNSON
Name:	Jeffrey L. Johnson
Title:	Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification of Chief Financial Officer Pursuant to

18 U.S.C. Section 1350

I, M. Kirk Scott, as Chief Financial Officer of Dividend Capital Diversified Property Fund Inc. certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 12, 2015

	/s/ M. KIRK SCOTT
Name:	M. Kirk Scott
Title:	Chief Financial Officer and Treasurer

EX-99.1

Exhibit 99.1

CONSENT OF INDEPENDENT VALUATION FIRM

We hereby consent to the reference to our name, the description of our role and the valuation of the real properties and related assumptions provided under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Net Asset Value Calculation” in Part I, Item 2 of the Quarterly Report on Form 10-Q for the period ended September 30, 2015 of Dividend Capital Diversified Property Fund Inc., being incorporated by reference in the Registration Statement on Form S-3 (No. 333-162636) of Dividend Capital Diversified Property Fund Inc., and the related prospectus. We also hereby consent to the same information and the reference to our firm under the caption “Experts” being included in the prospectus related to the Registration Statement on Form S-11 (File No. 333-197767) of Dividend Capital Diversified Property Fund Inc. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.

/s/ Altus Group U.S., Inc.

Altus Group U.S., Inc.

November 12, 2015

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Investments in Real Property (Summary of Carrying Amounts of Major Classes of Assets and Liabilities) (Details) $ in Thousands	Dec. 31, 2014 USD ($)
Disclosure Summary Of Consolidated Investments In Real Property [Abstract]
Land	$ 4,075
Building and improvements	19,337
Intangible lease assets	7,005
Accumulated depreciation	(10,163)
Other assets, net	1,673
Assets held for sale	21,927	[1]
Other liabilities	1,880
Liabilities related to assets held for sale	$ 1,880

[1] Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

XML

Derivatives And Hedging Activities (Effect of Derivative Financial Instruments on Financial Statements) (Details) - Designated Hedges - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain recognized in income (ineffective portion and amount excluded from effectiveness testing)	$ (117)	$ 9
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
Amount of loss reclassified from accumulated OCI into income (effective portion)	1,220	739	$ 3,538	$ 2,232
Interest Rate Contract
Derivative Instruments, Gain (Loss) [Line Items]
Amount of (loss) gain recognized in OCI (effective portion)	$ (7,236)	$ 421	$ (8,789)	$ (843)

XML

Debt Obligations (Summary of Borrowings) (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate		4.30%	4.80%
Outstanding Balance	[1]	$ 1,002,947	$ 1,198,267
Gross Investment Amount Securing Borrowings	[2]	1,042,905	1,692,911
Unamortized net discount at end of period on debt payable		1,900	2,000
Troubled debt restructuring amortization		$ 2,900	2,300
Liabilities held for sale			$ 1,880
Line of credit, interest rate	[3]	2.00%	2.60%
Mortgage notes	[4]	$ 543,947	$ 853,267
Total secured borrowings	[1]	543,947	853,267
Line of credit, amount outstanding	[1],[3]	109,000	75,000
Total unsecured borrowings		459,000	$ 345,000
Long-term Debt	[5]	$ 1,003,903
Mortgages [Member]
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate		5.80%	5.80%
Outstanding Balance	[1]	$ 543,947	$ 816,244
Gross Investment Amount Securing Borrowings	[2]	$ 1,042,905	$ 1,641,755
Floating-rate mortgage notes
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR		3.00%
Repurchase Facility
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate	[6]		2.80%
Gross Investment Amount Securing Borrowings	[2],[6]		$ 51,156
Total other secured borrowings	[1],[6]		$ 37,023
Total Secured Borrowings [Member]
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate		5.80%	5.60%
Line of Credit [Member]
Debt Instrument [Line Items]
Debt, Weighted Average Interest Rate		1.99%	2.56%
Outstanding borrowings spread over LIBOR		1.40%	1.75%
Interest rate		2.84%	3.60%
Weighted average interest rate		1.99%	2.56%
Term Loan
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate	[7]	2.60%	2.70%
Outstanding borrowings spread over LIBOR		1.52%	1.70%
Interest rate		2.57%	2.69%
Line of credit, amount outstanding	[1],[7]	$ 350,000	$ 270,000
Total unsecured borrowings			$ 270,000
Unsecured Borrowings
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate		2.40%	2.70%
Total unsecured borrowings	[1]	$ 459,000	$ 345,000
Fixed-rate mortgages [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate		5.90%	5.80%
Outstanding Balance	[1]	$ 535,967	$ 807,994
Gross Investment Amount Securing Borrowings	[2]	$ 1,026,446	$ 1,625,637
Fixed-rate mortgages [Member] | Repurchase Facility
Debt Instrument [Line Items]
Interest rate		2.84%	2.84%
Floating-rate mortgages [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Weighted Average Stated Interest Rate	[8]	3.20%	3.20%
Outstanding Balance	[1],[8]	$ 7,980	$ 8,250
Gross Investment Amount Securing Borrowings	[2],[8]	$ 16,459	$ 16,118
Minimum | Repurchase Facility
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR		2.25%	2.25%
Interest Rate Swap | Line of Credit [Member]
Debt Instrument [Line Items]
Outstanding Balance			$ 30,000
Interest Rate Swap | 2.84% Interest Rate Swap [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit, amount outstanding		$ 33,700

[1] Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

[2] "Gross Investment Amount" as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt related investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss.

[3] As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

[4] Includes approximately $58.5 million and $59.4 million in consolidated mortgage notes in variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

[5] Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include the GAAP principal amortization of our restructured mortgage note of approximately $2.9 million that does not reduce the contractual amount due of the related mortgage note as of September 30, 2015, partially offset by the mark-to-market premium on assumed debt of $1.9 million as of September 30, 2015.

[6] As of December 31, 2014, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings.

[7] As of September 30, 2015 and December 31, 2014, borrowings under our term loans were subject to interest at weighted average floating rates of 1.52% and 1.70%, respectively, over one-month LIBOR. However, we had effectively fixed the interest rates of the borrowings using interest rate swaps at 2.57% and 2.69% as of September 30, 2015 and December 31, 2014, respectively.

[8] As of September 30, 2015 and December 31, 2014, our floating rate mortgage note was subject to an interest rate spread of 3.00% over one-month LIBOR.

XML

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying (Reported) Amount, Fair Value Disclosure
Assets:
Derivative instruments		$ 543
Liabilities:
Fixed-rate mortgage notes carried at amortized cost	$ 535,967	807,994
Derivative liabilities	6,939	907
Carrying (Reported) Amount, Fair Value Disclosure | Real Estate Securities
Assets:
Investments in real estate securities	200	200
Carrying (Reported) Amount, Fair Value Disclosure | Fixed-rate debt related investments, net
Assets:
Fixed-rate debt related investments, net	27,775	69,889
Carrying (Reported) Amount, Fair Value Disclosure | Floating-rate debt related investments, net
Assets:
Floating-rate debt related investments, net		25,062
Carrying (Reported) Amount, Fair Value Disclosure | Floating-rate mortgage notes
Liabilities:
Floating-rate mortgage notes	7,980	8,250
Carrying (Reported) Amount, Fair Value Disclosure | Floating rate mortgages
Liabilities:
Floating-rate other secured borrowings		37,023
Carrying (Reported) Amount, Fair Value Disclosure | Floating Rate Un-Secured Borrowings
Liabilities:
Floating-rate unsecured borrowings	459,000	345,000
Estimate of Fair Value, Fair Value Disclosure
Assets:
Derivative instruments		543
Liabilities:
Fixed-rate mortgage notes carried at amortized cost	540,511	848,045
Derivative liabilities	6,939	907
Estimate of Fair Value, Fair Value Disclosure | Real Estate Securities
Assets:
Investments in real estate securities	200	200
Estimate of Fair Value, Fair Value Disclosure | Fixed-rate debt related investments, net
Assets:
Fixed-rate debt related investments, net	28,905	71,770
Estimate of Fair Value, Fair Value Disclosure | Floating-rate debt related investments, net
Assets:
Floating-rate debt related investments, net		25,157
Estimate of Fair Value, Fair Value Disclosure | Floating-rate mortgage notes
Liabilities:
Floating-rate mortgage notes	7,986	8,249
Estimate of Fair Value, Fair Value Disclosure | Floating rate mortgages
Liabilities:
Floating-rate other secured borrowings		37,023
Estimate of Fair Value, Fair Value Disclosure | Floating Rate Un-Secured Borrowings
Liabilities:
Floating-rate unsecured borrowings	$ 459,000	$ 347,235

XML

Debt Related Investments (Recorded Investment in Debt Related Investments before Allowance for Loan Loss, and Related Allowance for Loan Loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Disclosure Recorded Investment In Debt Related Investments Before Allowance For Loan Loss And Related Allowance For Loan Loss [Abstract]
Debt related investments	$ 27,775	$ 97,951
Less: Allowance for loan losses		(3,000)
Total	$ 27,775	$ 94,951

XML

Investments in Real Property (Narrative) (Details) ft² in Thousands				3 Months Ended			9 Months Ended
		Aug. 05, 2015 USD ($)	Mar. 11, 2015 USD ($) ft² property	Sep. 30, 2015 USD ($) ft²	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) ft²	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) property	Dec. 31, 2013 property
Real Estate Properties [Line Items]
Number of properties sold | property			12
Number of properties classified as held for sale | property									1	12
Rentable square feet | ft²			2,700	2,652			2,652
Gross sales price			$ 398,600,000				$ 477,861,000
Impairment charges	[1]			$ 6,500,000		$ 9,500,000	8,124,000	$ 9,500,000
Closing costs and fees			7,800,000
Rental revenue				52,854,000		56,793,000	163,308,000	166,933,000
Gain/loss on disposition of discontinued operations				$ 0			0
Capital Expenditure, Discontinued Operations						0		0
Purchase option, estimated exercise price									$ 239,400,000
Capital expenditures							$ 22,043,000	10,176,000
Massachusetts
Real Estate Properties [Line Items]
Gross investments, real property portfolio percentage				19.00%			19.00%
New Jersey
Real Estate Properties [Line Items]
Gross investments, real property portfolio percentage				17.00%			17.00%
California
Real Estate Properties [Line Items]
Gross investments, real property portfolio percentage				14.00%			14.00%
Texas
Real Estate Properties [Line Items]
Gross investments, real property portfolio percentage				11.00%			11.00%
Contract Termination [Member]
Real Estate Properties [Line Items]
Capital expenditures		$ 12,000,000
Retail Property; Pittsburgh, PA Market [Member]
Real Estate Properties [Line Items]
Impairment charges					$ 1,600,000		$ 1,600,000
Advisory Fees
Real Estate Properties [Line Items]
Closing costs and fees			$ 4,000,000
Charles Schwab and Company, Inc.
Real Estate Properties [Line Items]
Rentable square feet | ft²				594			594
Rental revenue							$ 19,600,000
Charles Schwab and Company, Inc. | Rental Revenue [Member]
Real Estate Properties [Line Items]
Concentration percentage							11.60%
Office and Industrial Portfolio; Various Markets [Member]
Real Estate Properties [Line Items]
Gross sales price							$ 398,635,000
Disposed portfolio, NOI						8,400,000	6,100,000	25,000,000
Rental revenue						$ 8,500,000	6,200,000	$ 25,400,000
Land Parcel Property, Denver, CO Market [Member]
Real Estate Properties [Line Items]
Gross sales price							7,577,000
Office Property; Dallas, TX Market [Member]
Real Estate Properties [Line Items]
Gross sales price							46,600,000
Office Property; Chicago, IL Market [Member]
Real Estate Properties [Line Items]
Impairment charges				$ 6,500,000			$ 6,500,000
Equity Method Investment, Ownership Percentage				80.00%			80.00%

[1] Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

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Stockholders' Equity (Information of Share Transactions) (Details) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
		Aug. 12, 2015	Sep. 30, 2015	Dec. 31, 2014
Shareholders Equity [Line Items]
Balance, Shares	[1]		178,399,679
Balance, Shares	[1]		165,043,370	178,399,679
Class E
Shareholders Equity [Line Items]
Balance, Shares			163,067,835
Redemptions of common stock (in shares)		(17,200,000)
Balance, Shares			139,437,007	163,067,835
Proceeds from sale and payments for repurchase of shares	[2]		$ 1,498,105	$ 1,670,408
Class E | Distribution Reinvestment Plan [Member]
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			1,903,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 13,832
Class E | Redemption of Common Stock [Member]
Shareholders Equity [Line Items]
Redemptions of common stock (in shares)			(25,534,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ (186,135)
Class A
Shareholders Equity [Line Items]
Balance, Shares			1,187,215
Balance, Shares			1,447,984	1,187,215
Proceeds from sale and payments for repurchase of shares	[2]		$ 10,482	$ 8,518
Class A | Shares Sold [Member]
Shareholders Equity [Line Items]
Shares sold			262,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 1,970
Class A | Distribution Reinvestment Plan [Member]
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			20,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 149
Class A | Redemption of Common Stock [Member]
Shareholders Equity [Line Items]
Redemptions of common stock (in shares)			(21,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ (155)
Class W
Shareholders Equity [Line Items]
Balance, Shares			1,116,698
Balance, Shares			1,418,223	1,116,698
Proceeds from sale and payments for repurchase of shares	[2]		$ 10,025	$ 7,808
Class W | Shares Sold [Member]
Shareholders Equity [Line Items]
Shares sold			306,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 2,253
Class W | Distribution Reinvestment Plan [Member]
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			15,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 112
Class W | Redemption of Common Stock [Member]
Shareholders Equity [Line Items]
Redemptions of common stock (in shares)			(20,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ (148)
Class I
Shareholders Equity [Line Items]
Balance, Shares			13,027,931
Balance, Shares			22,740,156	13,027,931
Proceeds from sale and payments for repurchase of shares	[2]		$ 157,565	$ 90,320
Class I | Shares Sold [Member]
Shareholders Equity [Line Items]
Shares sold			9,159,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 66,738
Class I | Distribution Reinvestment Plan [Member]
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			274,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 1,997
Class I | Stock-Based Compensation [Member]
Shareholders Equity [Line Items]
Stock-based compensation, shares			618,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 972
Class I | Redemption of Common Stock [Member]
Shareholders Equity [Line Items]
Redemptions of common stock (in shares)			(339,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ (2,462)
Common Stock
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			11,939,000
Stock-based compensation, shares			618,000
Redemptions of common stock (in shares)			(25,914,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ 1,676,177	$ 1,777,054
Common Stock | Shares Sold [Member]
Shareholders Equity [Line Items]
Shares sold			9,727,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 70,961
Common Stock | Distribution Reinvestment Plan [Member]
Shareholders Equity [Line Items]
Distribution reinvestment plan, shares			2,212,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 16,090
Common Stock | Stock-Based Compensation [Member]
Shareholders Equity [Line Items]
Stock-based compensation, shares			618,000
Proceeds from sale and payments for repurchase of shares	[2]		$ 972
Common Stock | Redemption of Common Stock [Member]
Shareholders Equity [Line Items]
Redemptions of common stock (in shares)			(25,914,000)
Proceeds from sale and payments for repurchase of shares	[2]		$ (188,900)

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

[2] Dollar amounts presented in this table represent the gross amount of proceeds from the sale of common shares, or the amount paid to stockholders to redeem common shares, and do not include other costs and expenses accounted for within additional paid-in capital, such as selling commissions, dealer manager and distribution fees, offering and organizational costs, and other costs associated with our distribution reinvestment plans and share redemption programs.

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Derivatives And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

Derivatives And Hedging Activities [Abstract]

Reconciliation of Accumulated Other Comprehensive Loss

		Gains and Losses on Cash Flow Hedges		Unrealized Losses on Available-For- Sale Securities		Accumulated Other Comprehensive Loss
Beginning balance as of December 31, 2014:		$	(9,069)	$	(1,051)	$	(10,120)
	Other comprehensive income:
	Amount of loss reclassified from OCI into interest expense     (effective portion) (net of tax benefit of $0)		3,538		—		3,538
	Change in fair value recognized in OCI     (effective portion) (net of tax benefit of $0)		(8,789)		—		(8,789)
	Net current-period other comprehensive income		(5,251)		—		(5,251)
	Attribution of and other adjustments to OCI     attributable to noncontrolling interests		384		2		386
Ending balance as of September 30, 2015:		$	(13,936)	$	(1,049)	$	(14,985)

Gross Fair Value of Derivative Financial Instruments as Well as Their Classification

		Fair Value of Asset Derivatives as of					Fair Value of Liability Derivatives as of
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2015		2014		Location	2015		2014
Derivatives designated as     hedging instruments     under ASC Topic 815
Interest rate contracts	Other assets, net (1)	$	—	$	543	Other liabilities (1)	$	(6,939)	$	(907)
Total derivatives		$	—	$	543		$	(6,939)	$	(907)

__________________

(1) Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

Effect of Derivative Financial Instruments on Financial Statements

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Derivatives Designated as Hedging     Instruments
Derivative type		Interest rate contracts		Interest rate contracts		Interest rate contracts		Interest rate contracts
Amount of (loss) gain recognized in     OCI (effective portion)	$	(7,236)	$	421	$	(8,789)	$	(843)
Location of loss reclassified from     accumulated OCI into income     (effective portion)		Interest expense		Interest expense		Interest expense		Interest expense
Amount of loss reclassified from     accumulated OCI into income     (effective portion)	$	1,220	$	739	$	3,538	$	2,232
Location of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)
Amount of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)	$	(117)	$	9	$	(0)	$	—

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Debt Obligations (Summary of Borrowings Reflects Contractual Debt Maturities Footnote) (Details)		9 Months Ended
		Sep. 30, 2015 USD ($) loan item	Jan. 13, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Outstanding Balance, 2015	[1]	$ 2,823,000
Outstanding Balance, 2016	[1]	309,913,000
Outstanding Balance, 2017	[1]	206,659,000
Outstanding Balance, 2018	[1]	151,761,000
Outstanding Balance, 2019	[1]	110,868,000
Outstanding Balance, 2020	[1]	1,982,000
Outstanding Balance, 2021	[1]	10,825,000
Outstanding Balance, 2022	[1]	201,663,000
Outstanding Balance, 2023	[1]	978,000
Outstanding Balance, 2024	[1]	1,034,000
Outstanding Balance, Thereafter	[1]	5,397,000
Total Outstanding Balance	[1]	1,003,903,000
Unsecured borrowings		459,000,000		$ 345,000,000
Line of credit, amount outstanding	[2],[3]	109,000,000		75,000,000
Troubled debt restructuring amortization		2,900,000		$ 2,300,000
Mark to market adjustment on assumed debt		1,900,000
$200 Term Loan [Member]
Debt Instrument [Line Items]
Debt face amount		200,000,000
Unsecured borrowings		$ 200,000,000
Maturity date		Feb. 27, 2022
Mortgage Note
Debt Instrument [Line Items]
Troubled debt restructuring amortization		$ 2,900,000
Mortgage Notes
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		21
Outstanding Balance, 2015		$ 2,823,000
Outstanding Balance, 2016		309,913,000
Outstanding Balance, 2017		206,659,000
Outstanding Balance, 2018		1,761,000
Outstanding Balance, 2019		1,868,000
Outstanding Balance, 2020		1,982,000
Outstanding Balance, 2021		10,825,000
Outstanding Balance, 2022		1,663,000
Outstanding Balance, 2023		978,000
Outstanding Balance, 2024		1,034,000
Outstanding Balance, Thereafter		5,397,000
Total Outstanding Balance		$ 544,903,000
Mortgage Notes | 2016 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		11
Mortgage Notes | 2017 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		6
Mortgage Notes | 2021 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		1
Mortgage Notes | 2022 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		1
Mortgage Notes | Thereafter [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		2
Unsecured Borrowings
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		3
Outstanding Balance, 2018	[4]	$ 150,000,000
Outstanding Balance, 2019	[4]	109,000,000
Outstanding Balance, 2022	[4]	200,000,000
Total Outstanding Balance	[4]	$ 459,000,000
Unsecured Borrowings | 2018 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		1
Unsecured Borrowings | 2019 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		1
Unsecured Borrowings | 2022 [Member]
Debt Instrument [Line Items]
Number of Borrowings Maturing | loan		1
Amended Facility [Member] | $150 Million Term Loan [Member]
Debt Instrument [Line Items]
Debt face amount		$ 150,000,000
Unsecured borrowings		$ 150,000,000	$ 100,000,000
Maturity date		Jan. 31, 2018
Number of one year extensions | item		2
Revolving credit facility extension period		12 months

[1] Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include the GAAP principal amortization of our restructured mortgage note of approximately $2.9 million that does not reduce the contractual amount due of the related mortgage note as of September 30, 2015, partially offset by the mark-to-market premium on assumed debt of $1.9 million as of September 30, 2015.

[2] Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

[3] As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

[4] Unsecured borrowings presented include (i) borrowings under the $150 Million Term Loan of $150.0 million, which are scheduled to mature in 2018, subject to two one-year extension options, (ii) borrowings under the Revolving Credit Facility of $109.0 million, which are scheduled to mature in 2019, subject to a one-year extension option, and (iii) borrowings under the $200 Million Term Loan of $200.0 million, which are scheduled to mature in 2022 with no extension options.

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Investments in Real Property (Summary of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Investments in Real Property [Abstract]
Straight-line rent adjustments		$ (286)	$ 1,150	$ (684)	$ 2,939
Above-market lease assets		(1,307)	(1,673)	(3,923)	(5,110)
Below-market lease liabilities		1,437	1,797	4,539	5,190
Total increase to rental revenue		(156)	1,274	(68)	3,019
Tenant recovery income	[1]	9,293	7,862	28,031	23,745
Real estate taxes paid directly by tenants subject to triple net lease Contracts		$ 1,400	$ 3,100	$ 5,500	$ 9,300

[1] Tenant recovery income presented in this table excludes real estate taxes that were paid directly by our tenants that are subject to triple net lease contracts. Such payments totaled approximately $1.4 million and $3.1 million during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.5 million and $9.3 million during the nine months ended September 30, 2015 and 2014, respectively.

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Investments in Real Property (Summary of Revenue and Net Operating Income of Properties Acquired During 2014) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Significant Acquisitions and Disposals [Line Items]
Revenue		$ 53,661	$ 58,591	$ 168,902	$ 172,504
Net Operating Income		38,784	$ 45,787	125,490	$ 134,557
Ventura Corporate Center, Office Property; South Florida [Member]
Significant Acquisitions and Disposals [Line Items]
Revenue		1,123		1,123
Net Operating Income	[1]	726		726
Shenandoah, Retail Property; South Florida [Member]
Significant Acquisitions and Disposals [Line Items]
Revenue		458		458
Net Operating Income	[1]	342		342
CityView, Office Property; Austin, TX [Member]
Significant Acquisitions and Disposals [Line Items]
Revenue		2,136		3,684
Net Operating Income	[1]	1,355		2,383
South Cape, Retail Property; Greater Boston Market [Member]
Significant Acquisitions and Disposals [Line Items]
Revenue		882		1,931
Net Operating Income	[1]	684		1,496
Rialto, Office Property; Austin, TX Market
Significant Acquisitions and Disposals [Line Items]
Revenue		1,168		3,236
Net Operating Income	[1]	654		1,908
Properties Acquired During 2015 [Member]
Significant Acquisitions and Disposals [Line Items]
Revenue		5,767		10,432
Net Operating Income	[1]	$ 3,761		$ 6,855

[1] For a discussion as to why we view NOI to be an appropriate supplemental performance measure and a reconciliation to GAAP net income, refer to Note 11.

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Derivatives And Hedging Activities (Reconciliation of Accumulated Other Comprehensive Loss, Net of Amounts Attributable to Noncontrolling Interests) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance as of December 31, 2014	$ (10,120)
Amount of loss reclassified from OCI into interest expense (effective portion) (net of tax benefit of $0)	3,538
Change in fair value recognized in OCI (effective portion) (net of tax benefit of $0)	(8,789)
Net current-period other comprehensive income	(5,251)
Attribution of and other adjustments to OCI attributable to noncontrolling interests	386
Ending balance as of September 30, 2015	(14,985)
Gains And Losses On Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance as of December 31, 2014	(9,069)
Amount of loss reclassified from OCI into interest expense (effective portion) (net of tax benefit of $0)	3,538
Change in fair value recognized in OCI (effective portion) (net of tax benefit of $0)	(8,789)
Net current-period other comprehensive income	(5,251)
Attribution of and other adjustments to OCI attributable to noncontrolling interests	384
Ending balance as of September 30, 2015	(13,936)
Unrealized Gains On Available-For-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance as of December 31, 2014	(1,051)
Attribution of and other adjustments to OCI attributable to noncontrolling interests	2
Ending balance as of September 30, 2015	$ (1,049)

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Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator
Loss from continuing operations		$ (1,425)	$ (7,519)	$ 130,883	$ (1,713)
Loss (income) from continuing operations attributable to noncontrolling interests		1,297	475	(7,358)	57
(Loss) income from continuing operations attributable to common stockholders		(128)	(7,044)	123,525	(1,656)
Dilutive noncontrolling interests share of (loss) income from continuing operations		(10)	(500)	8,575	(128)
Numerator for diluted earnings per share - adjusted (loss) income from continuing operations		$ (138)	(7,544)	$ 132,100	(1,784)
Income from discontinued operations	[1]		5		30,005
Income from discontinued operations attributable to noncontrolling interests					(4,462)
Income from discontinued operations attributable to common stockholders			5		25,543
Dilutive noncontrolling interests share of discontinued operations					1,915
Numerator for diluted earnings per share – adjusted income from discontinued operations			$ 5		$ 27,458
Denominator
Weighted average shares outstanding-basic		174,290	178,729	179,168	177,717
Incremental weighted average shares effect of conversion of OP units		12,989	12,693	12,852	12,888
Weighted average shares outstanding-diluted		187,279	191,422	192,020	190,605
INCOME (LOSS) PER COMMON SHARE-BASIC
Net income (loss) from continuing operations		$ 0.00	$ (0.04)	$ 0.69	$ (0.01)
Net income from discontinued operations			0.00		0.14
Net income (loss)		$ 0.00	$ (0.04)	$ 0.69	$ 0.13

[1] Includes approximately $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

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Debt Obligations (Narrative) (Details)				9 Months Ended		12 Months Ended
		Mar. 11, 2015 USD ($) property	Jan. 13, 2015 USD ($)	Sep. 30, 2015 USD ($) entity loan item	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Mortgages sold		$ 128,000,000
Mortgage loans, interest rate		5.46%
Defeasance costs				$ (896,000)
Number of interest-only mortgage notes | loan				9
Number of amortizing mortgage notes | loan				12
Interest-only mortgage notes, outstanding balance				$ 273,800,000
Amortizing mortgage notes outstanding balance				271,100,000
Unsecured Debt				459,000,000		$ 345,000,000
Line of credit, amount outstanding	[1],[2]			109,000,000		75,000,000
Loss on financing commitments and early repayment of debt				896,000
Number of properties sold | property		12
Total unsecured borrowings				459,000,000		345,000,000
Current borrowing capacity				288,800,000		$ 189,400,000
Balance Repaid, Mortgage Notes				110,405,000	$ 49,133,000
Mortgages [Member]
Debt Instrument [Line Items]
Obligation released through defeasance		$ 44,800,000
Defeasance costs		8,600,000
Loss on financing commitments and early repayment of debt		$ (8,600,000)
Old Facility [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				620,000,000
Repaid outstanding borrowings				$ 380,000,000
Amended Facility [Member]
Debt Instrument [Line Items]
Debt issuance date				Jan. 13, 2015
Number of lenders | entity				14
Credit facility, maximum borrowing capacity				$ 550,000,000
Potential maximum borrowing capacity				900,000,000
Amended Facility [Member] | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				$ 400,000,000
Credit facility expiration date				Jan. 31, 2019
Number of one year extensions | item				1
Revolving credit facility extension period				12 months
Percentage of extension fee to outstanding principal balance				0.15%
Proceeds from lines of credit			$ 280,000,000
Amended Facility [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				$ 50,000,000
Amended Facility [Member] | Swing Line Loan [Member]
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity				$ 50,000,000
Minimum | Amended Facility [Member] | Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				1.40%
Maximum | Amended Facility [Member] | Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				2.30%
$150 Million Term Loan [Member] | Amended Facility [Member]
Debt Instrument [Line Items]
Debt face amount				$ 150,000,000
Maturity date				Jan. 31, 2018
Number of one year extensions | item				2
Revolving credit facility extension period				12 months
Percentage of extension fee to outstanding principal balance				0.125%
Unsecured Debt			100,000,000	$ 150,000,000
Total unsecured borrowings			$ 100,000,000	$ 150,000,000
$150 Million Term Loan [Member] | Minimum | Amended Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				1.35%
$150 Million Term Loan [Member] | Maximum | Amended Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				2.20%
$200 Term Loan [Member]
Debt Instrument [Line Items]
Debt issuance date				Feb. 27, 2015
Debt face amount				$ 200,000,000
Number of lenders | entity				6
Debt term				7 years
Maturity date				Feb. 27, 2022
Unsecured Debt				$ 200,000,000
Total unsecured borrowings				$ 200,000,000
$200 Term Loan [Member] | Minimum | LIBOR [Member]
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				1.65%
$200 Term Loan [Member] | Maximum | LIBOR [Member]
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				2.55%
Repurchase Facility | Minimum
Debt Instrument [Line Items]
Outstanding borrowings spread over LIBOR				2.25%		2.25%
Term Loan
Debt Instrument [Line Items]
Unsecured Debt						$ 270,000,000
Line of credit, amount outstanding	[1],[3]			$ 350,000,000		$ 270,000,000
Interest rate				2.57%		2.69%
Total unsecured borrowings						$ 270,000,000
Outstanding borrowings spread over LIBOR				1.52%		1.70%
Mortgages [Member]
Debt Instrument [Line Items]
Number of repaid mortgage note borrowings | loan				6
Mortgages [Member] | Campus Road [Member]
Debt Instrument [Line Items]
Maturity date				Jul. 10, 2015
Interest bearing on mortgage note	[4]			4.75%
Debt Instrument Interest Rate Stated Percentage	[4]			4.75%
Mortgages [Member] | Mansfield [Member]
Debt Instrument [Line Items]
Maturity date				Oct. 01, 2015
Interest bearing on mortgage note	[4]			6.03%
Debt Instrument Interest Rate Stated Percentage	[4]			6.03%
Line of Credit [Member]
Debt Instrument [Line Items]
Interest rate				2.84%		3.60%
Outstanding borrowings spread over LIBOR				1.40%		1.75%

[1] Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

[2] As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

[3] As of September 30, 2015 and December 31, 2014, borrowings under our term loans were subject to interest at weighted average floating rates of 1.52% and 1.70%, respectively, over one-month LIBOR. However, we had effectively fixed the interest rates of the borrowings using interest rate swaps at 2.57% and 2.69% as of September 30, 2015 and December 31, 2014, respectively.

[4] We had effectively fixed the stated interest rates of certain of our borrowings by using interest rate swaps.

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Organization

9 Months Ended

Sep. 30, 2015

Organization [Abstract]

Organization

1. ORGANIZATION

Dividend Capital Diversified Property Fund Inc. is a Maryland corporation formed on April 11, 2005 to invest in a diverse portfolio of real property and real estate related investments. As used herein, “the Company,” “we,” “our” and “us” refer to Dividend Capital Diversified Property Fund Inc. and its consolidated subsidiaries and partnerships except where the context otherwise requires.

We operate in such a manner so as to qualify as a real estate investment trust (“REIT”) for federal income tax purposes, and we utilize an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through our operating partnership, Dividend Capital Total Realty Operating Partnership, L.P. (our “Operating Partnership”).

We are the sole general partner of our Operating Partnership. In addition, we have contributed 100% of the proceeds received from our offerings of common stock to our Operating Partnership in exchange for partnership units (“OP Units”) representing our interest as a limited partner of the Operating Partnership. As of September 30, 2015 and December 31, 2014, we owned approximately 92.5% and 93.6%, respectively, of the limited partnership interests in our Operating Partnership, and the remaining limited partnership interests in our Operating Partnership were owned by third-party investors. Our Operating Partnership has classes of OP Units that correspond to our four classes of common stock: Class E OP Units, Class A OP Units, Class W OP Units, and Class I OP Units. As of September 30, 2015 and December 31, 2014, our Operating Partnership had issued and outstanding approximately 12.9 million and 12.1 million Class E OP Units held by third party investors, respectively, which represent limited partnership interests issued in connection with its private placement offerings. As of September 30, 2015 and December 31, 2014, such Class E OP Units had a maximum approximate redemption value of $95.4 million and $87.0 million, respectively, based on the most recent selling price of our common stock pursuant to our primary offering. Furthermore, during the nine months ended September 30, 2015, we exercised our option to acquire, at fair value, previously sold fractional interests in a retail property in the Jacksonville, FL market for a combination of (i) approximately 1.0 million Class E OP Units issued at a price of $7.18 per OP Unit, representing approximately $7.3 million of the aggregate purchase price and (ii) approximately $783,000 in cash. The result of this activity was a net decrease in our financing obligations of approximately $17.9 million and a net increase in our noncontrolling interests of $16.2 million.

Dividend Capital Total Advisors LLC (our “Advisor”), a related party, manages our day-to-day activities under the terms and conditions of an advisory agreement (as amended from time to time, the “Advisory Agreement”). Our Advisor and its affiliates receive various forms of compensation, reimbursements and fees for services relating to the investment and management of our real estate assets.

On July 12, 2012, the Securities and Exchange Commission (the “Commission”) declared effective our Registration Statement on Form S-11 (Registration Number 333-175989) (as amended, the “Prior Registration Statement”). The Prior Registration Statement applied to the offer and sale (the “Prior Offering”) of up to $3,000,000,000 of our shares of common stock, of which $2,250,000,000 of shares were expected to be offered to the public in a primary offering and $750,000,000 of shares were expected to be offered to our stockholders pursuant to an amended and restated distribution reinvestment plan (subject to our right to reallocate such amounts). In the Prior Offering, we offered to the public three classes of shares: Class A shares, Class W shares and Class I shares with net asset value (“NAV”) based pricing.  On September 15, 2015, we terminated the Prior Offering.  Through September 15, 2015, the date our Prior Offering terminated, we had raised gross proceeds of approximately $183.1 million from the sale of approximately 25.8 million shares in the Prior Offering, including approximately $3.4 million through our distribution reinvestment plan.

On September 16, 2015, the Commission declared effective our Registration Statement on Form S-11 (Registration Number 333-197767) (the “Follow-On Registration Statement”). The Follow-On Registration Statement applies to the Company’s follow-on “best efforts” offering of up to $1,000,000,000 of the Company’s Class A, Class I and Class W shares of common stock, of which $750,000,000 of shares are expected to be offered to the public in a primary offering and $250,000,000 of shares are expected to be offered to stockholders of the Company pursuant to its distribution reinvestment plan (subject to the Company’s right to reallocate such amounts) (the “Follow-On Offering”). As of September 30, 2015, we had raised gross proceeds of approximately $389,000 from the sale of approximately 52,000 shares in the Follow-On Offering.

During the nine months ended September 30, 2015, we raised aggregate gross proceeds of approximately $87.1 million from the sale of approximately 11.9 million shares, including approximately $16.1 million raised through our distribution reinvestment plans.

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Segment Information (Revenue and Components of Net Operating Income) (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) segment	Sep. 30, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment				4
Revenues		$ 53,661	$ 58,591	$ 168,902	$ 172,504
NOI		38,784	45,787	125,490	134,557
Office
Segment Reporting Information [Line Items]
Revenues	[1]	34,418	35,439	102,631	103,566
NOI	[1]	23,937	26,608	74,056	77,863
Industrial
Segment Reporting Information [Line Items]
Revenues	[1]	1,358	5,825	7,147	17,674
NOI	[1]	885	5,220	5,656	15,622
Retail
Segment Reporting Information [Line Items]
Revenues	[1]	17,078	15,529	53,530	45,693
NOI	[1]	13,155	12,161	$ 40,184	35,501
Real property
Segment Reporting Information [Line Items]
Number of operating segments | segment				3
Debt Related Investments
Segment Reporting Information [Line Items]
Revenues		807	1,798	$ 5,594	5,571
NOI		$ 807	$ 1,798	$ 5,594	$ 5,571

[1] Excludes results of operations of real properties categorized as discontinued operations.

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Investments in Real Property (Summary of Concentration of Risk Respect to Accounts Receivable) (Details) ft² in Thousands, $ in Thousands		9 Months Ended
		Sep. 30, 2015 USD ($) ft² property	Mar. 11, 2015 ft²
Revenue, Major Customer [Line Items]
Number of Tenant Locations		20
Annualized Rental Revenue | $	[1]	$ 76,614
Percent of Total Annualized Rental Revenue		43.60%
Square Feet | ft²		2,652	2,700
Percent of Total Portfolio Square Feet		30.60%
Charles Schwab and Company, Inc.
Revenue, Major Customer [Line Items]
Number of Tenant Locations		1
Annualized Rental Revenue | $	[1]	$ 23,223
Percent of Total Annualized Rental Revenue		13.20%
Square Feet | ft²		594
Percent of Total Portfolio Square Feet		6.90%
Sybase, Inc.
Revenue, Major Customer [Line Items]
Number of Tenant Locations		1
Annualized Rental Revenue | $	[1]	$ 17,971
Percent of Total Annualized Rental Revenue		10.20%
Square Feet | ft²		405
Percent of Total Portfolio Square Feet		4.70%
Northrop Grumman, Inc.
Revenue, Major Customer [Line Items]
Number of Tenant Locations		1
Annualized Rental Revenue | $	[1]	$ 15,901
Percent of Total Annualized Rental Revenue		9.10%
Square Feet | ft²		575
Percent of Total Portfolio Square Feet		6.60%
Stop and Shop Supermarket Company LLC.
Revenue, Major Customer [Line Items]
Number of Tenant Locations		16
Annualized Rental Revenue | $	[1]	$ 14,983
Percent of Total Annualized Rental Revenue		8.50%
Square Feet | ft²		911
Percent of Total Portfolio Square Feet		10.50%
Novo Nordisk
Revenue, Major Customer [Line Items]
Number of Tenant Locations		1
Annualized Rental Revenue | $	[1]	$ 4,536
Percent of Total Annualized Rental Revenue		2.60%
Square Feet | ft²		167
Percent of Total Portfolio Square Feet		1.90%

[1] Annualized base rent represents the annualized monthly base rent of executed leases as of September 30, 2015.

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Net Income Per Common Share (Tables)

9 Months Ended

Sep. 30, 2015

Net Income Per Common Share [Abstract]

Details of Numerator and Denominator Used to Calculate Diluted Net Income Per Common Share

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
Numerator	2015		2014		2015		2014
(Loss) income from continuing operations	$	(1,425)	$	(7,519)	$	130,883	$	(1,713)
Loss (income) from continuing operations attributable     to noncontrolling interests		1,297		475		(7,358)		57
(Loss) income from continuing operations     attributable to common stockholders		(128)		(7,044)		123,525		(1,656)
Dilutive noncontrolling interests share     of (loss) income from continuing operations		(10)		(500)		8,575		(128)
Numerator for diluted earnings     per share – adjusted (loss) income from     continuing operations		(138)		(7,544)		132,100		(1,784)
Income from discontinued operations		—		5		—		30,005
Income from discontinued operations     attributable to noncontrolling interests		—		—		—		(4,462)
Income from discontinued operations     attributable to common stockholders		—		5		—		25,543
Dilutive noncontrolling interests share     of discontinued operations		—		—		—		1,915
Numerator for diluted earnings     per share – adjusted income from     discontinued operations	$	—	$	5	$	—	$	27,458
Denominator
Weighted average shares outstanding-basic		174,290		178,729		179,168		177,717
Incremental weighted average shares effect     of conversion of OP units		12,989		12,693		12,852		12,888
Weighted average shares outstanding-diluted		187,279		191,422		192,020		190,605
INCOME (LOSS) PER COMMON SHARE-BASIC     AND DILUTED
Net income (loss) from continuing operations	$	(0.00)	$	(0.04)	$	0.69	$	(0.01)
Net income from discontinued operations		—		0.00		—		0.14
Net income (loss)	$	(0.00)	$	(0.04)	$	0.69	$	0.13

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Schedule Of RSU Grants

Award	Grant Date	Vesting Dates	Number of Unvested Shares	Applicable Grant Date NAV per Share
Company RSU	April 7, 2014	April 15, 2016, April 15, 2017	247	$	6.96
Company RSU	February 25, 2015	April 15, 2016, April 15, 2017	59		7.18
Company RSU	February 25, 2015	April 15, 2018	135		7.18
			441	$	7.06

Schedule of Fees and Other Amounts Earned by Advisor

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Advisory fees (1)	$	4,225	$	4,083	$	13,021	$	11,678
Other reimbursements paid to our Advisor (2)		2,176		1,953		6,590		5,923
Other reimbursements paid to our Dealer Manager		33		82		310		423
Advisory fees related to the disposition of     real properties		201		—		4,779		1,973
Development management fee		18		3		52		107
Primary dealer fee (3)		—		1,648		2,540		2,198
Selling commissions, dealer manager,     and distribution fees		102		62		271		238
Total	$	6,755	$	7,831	$	27,563	$	22,540

__________________

(1) Amounts reported for the three months ended September 30, 2015 include approximately $283,000 in consideration of the issuance of approximately 153,000 shares of our Class I common stock to the Advisor. Such shares were issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash. Amounts reported for the nine months ended September 30, 2015 include approximately $786,000 in consideration of the issuance of approximately 276,000 shares of our Class I common stock to the Advisor. Such shares include (i) approximately 153,000 shares issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and (ii) 123,000 shares issued on April 15, 2014 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014. Such Class I shares are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash.

(2) Other reimbursements paid to our Advisor primarily comprise salary, bonus, and overhead reimbursements.

(3) Amounts reported represent primary dealer fees we paid to the Dealer Manager based on the gross proceeds raised by participating broker-dealers pursuant to certain selected dealer agreements. Of the primary dealer fee earned during the nine months ended September 30, 2015, the Dealer Manager reallowed approximately $2.3 million to participating third-party broker-dealers and retained approximately $254,000. Of the primary dealer fee earned during the nine months ended September 30, 2014, the Dealer Manager reallowed approximately $2.0 million to participating third-party broker-dealers and retained approximately $220,000.

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Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		9 Months Ended
	Aug. 12, 2015	Sep. 30, 2015
Stockholders Equity Note Disclosure [Line Items]
Shares repurchased, value		$ 189,609
Class E
Stockholders Equity Note Disclosure [Line Items]
Stock repurchased during period, shares	17.2
Shares repurchased, value	$ 124,400
Share price	$ 7.25

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Debt Related Investments (Narrative) (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2015 USD ($) loan security	Sep. 30, 2014 security	Dec. 31, 2014 USD ($) security
Investment [Line Items]
Number of debt investments | security		5		11
Weighted average maturity of our debt investments		2 years 10 months 24 days
Number of debt investment repaid | security		4	3
Net cash proceeds from repayment		$ 59,900,000
Principal repayment		69,800,000
Prepayment of fee		1,300,000
Repayments of borrowings		11,200,000
Recorded Investment				$ 3,000,000
Provision losses		0
Direct write off of allowance for loan loss	$ 3,000,000			3,000,000
Unpaid principal balance of impaired debt investments				$ 3,000,000
Number of impaired debt investments | security				1
Interest Income Recognized		$ 0		$ 0
Mezzanine loan
Investment [Line Items]
Number of debt investment repaid | loan		1
Accrued interest	$ 6,400,000	$ 6,400,000
Mortgage Note
Investment [Line Items]
Number of debt investment repaid | security		4

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Information [Abstract]

Revenue and Components of Net Operating Income

	For the Three Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	34,418	$	35,439	$	23,937	$	26,608
Industrial		1,358		5,825		885		5,220
Retail		17,078		15,529		13,155		12,161
Debt related investments		807		1,798		807		1,798
Total	$	53,661	$	58,591	$	38,784	$	45,787

	For the Nine Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	102,631	$	103,566	$	74,056	$	77,863
Industrial		7,147		17,674		5,656		15,622
Retail		53,530		45,693		40,184		35,501
Debt related investments		5,594		5,571		5,594		5,571
Total	$	168,902	$	172,504	$	125,490	$	134,557

__________________

(1) Excludes results of operations of real properties categorized as discontinued operations.

Reconciliation of Net Operating Income to Reported Net Income (Loss)

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Net operating income	$	38,784	$	45,787	$	125,490	$	134,557
Real estate depreciation and amortization expense		(20,851)		(21,918)		(61,404)		(66,481)
General and administrative expenses		(2,477)		(2,581)		(8,157)		(8,187)
Advisory fees, related party		(4,225)		(4,083)		(13,021)		(11,678)
Acquisition-related expenses		(476)		(372)		(1,259)		(962)
Impairment of real estate property		(6,500)		(9,500)		(8,124)		(9,500)
Interest and other income		704		424		1,500		688
Interest expense		(10,951)		(15,276)		(36,208)		(46,549)
Loss on extinguishment of debt and financing     commitments		—		—		(1,168)		(63)
Gain on sale of real property		4,567		—		133,234		6,462
Discontinued operations		—		5		—		30,005
Net loss (income) attributable to noncontrolling interests		1,297		475		(7,358)		(4,405)
Net (loss) income attributable to common     stockholders	$	(128)	$	(7,039)	$	123,525	$	23,887

Summary of Total Assets by Business Segment

	As of
	September 30, 2015		December 31, 2014
Segment assets:
Net investments in real property
Office (1)	$	1,018,140	$	1,069,584
Industrial		61,685		207,655
Retail		701,526		652,187
Debt related investments, net		27,775		94,951
Total segment assets, net		1,809,126		2,024,377
Non-segment assets:
Cash and cash equivalents		15,186		14,461
Other non-segment assets (2)		66,508		87,368
Assets held for sale (3)		—		21,927
Total assets	$	1,890,820	$	2,148,133

__________________

(1) Excludes approximately $20.3 million of net investments in real property related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

(2) Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable.

(3) Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

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Organization (Details) - USD ($)		1 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 15, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 16, 2015	Dec. 31, 2014	Jul. 12, 2012
Organization [Line Items]
Percentage of proceeds received from public offerings of common stock contributed to our Operating Partnership		100.00%		100.00%
Redemption value	[1]	$ 1,650,000		$ 1,650,000			$ 1,784,000
Units issued	[1]	165,043,370		165,043,370			178,399,679
Units issued, price per share		$ 7.18		$ 7.18
Net decrease in financing obligations				$ (9,260,000)	$ (7,789,000)
Proceeds from issuance, DRIP				$ 16,090,000	$ 15,578,000
Operating Partnership Units
Organization [Line Items]
Limited partnership interest owned in Operating Partnership		92.50%		92.50%			93.60%
Units issued		1,000,000		1,000,000
Class E OP Units [Member]
Organization [Line Items]
Operating Partnership units issued		12,900,000		12,900,000			12,100,000
Operating Partnership units outstanding		12,900,000		12,900,000			12,100,000
Redemption value		$ 95,400,000		$ 95,400,000			$ 87,000,000
NAV Offering [Member]
Organization [Line Items]
Maximum NAV share value total								$ 3,000,000,000
Maximum NAV share value primary offering								2,250,000,000
Maximum share value, DRIP								$ 750,000,000
Gross proceeds from sale of shares in the Offering			$ 183,100,000	$ 87,100,000
Shares issued			25,800,000	11,900,000
Proceeds from issuance, DRIP			$ 3,400,000	$ 16,100,000
Follow-On Offering [Member]
Organization [Line Items]
Maximum NAV share value total						$ 1,000,000,000
Maximum NAV share value primary offering						750,000,000
Maximum share value, DRIP						$ 250,000,000
Gross proceeds from sale of shares in the Offering		$ 389,000
Shares issued		52,000
Retail Property, Jacksonville, FL Market [Member]
Organization [Line Items]
Purchase of beneficial interests				783,000
Decrease in liabilities due to OP unit issuance				17,900,000
Increase in noncontrolling interest				16,200,000
Retail Property, Jacksonville, FL Market [Member] | Operating Partnership Units
Organization [Line Items]
Value of OP Units issued				$ 7,300,000

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES:
Net (Loss) Income		$ 130,883	$ 28,292
Adjustments to reconcile net income to net cash provided by operating activities:
Real estate depreciation and amortization expense		61,404	66,481
Gain on disposition of real property		(133,234)	(36,140)
Impairment real estate property	[1]	8,124	9,500
Collection of accrued interest from debt investment		6,421
Loss on extinguishment of debt and financing commitments		1,168	63
Other adjustments to reconcile net income to net cash provided by operating activities		3,016	7,286
Changes in operating assets and liabilities		119	(12,616)
Net cash provided by operating activities		77,901	62,866
INVESTING ACTIVITIES:
Acquisition of real property		(200,447)	(86,346)
Capital expenditures in real property		(22,043)	(10,176)
Proceeds from disposition of real property		342,157	96,602
Principal collections on debt related investments		52,945	23,688
Other investing activities		(4,931)	(1,146)
Net cash provided by investing activities		167,681	22,622
FINANCING ACTIVITIES:
Mortgage note principal repayments		(110,405)	(49,133)
Defeasance of mortgage note borrowings		(53,267)
Net proceeds from revolving line of credit borrowings		34,000	17,500
Net proceeds from term loan		80,000
Repayment of other secured borrowings		(25,796)	(844)
Redemption of common shares		(190,019)	(65,087)
Distributions on common stock		(32,080)	(30,913)
Proceeds from sale of common stock		68,851	66,041
Offering costs for issuance of common stock		(3,487)	(3,836)
Distributions to noncontrolling interest holders		(3,394)	(8,391)
Other financing activities		(9,260)	(7,789)
Net cash used in financing activities		(244,857)	(82,452)
NET INCREASE IN CASH AND CASH EQUIVALENTS		725	3,036
CASH AND CASH EQUIVALENTS, beginning of period		14,461	24,778
CASH AND CASH EQUIVALENTS, end of period		15,186	27,814
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest		34,486	43,299
Supplemental Disclosure of Noncash Investing and Financing Activities:
Common stock issued pursuant to the distribution reinvestment plan		16,090	15,578
Issuances of OP Units for beneficial interests		7,324
Assumed mortgage		11,869
Non-cash investment in real property		11,869	12,232
Non-cash principal collection on debt related investments	[2]	11,228	7,125
Non-cash disposition of real property	[2]	128,008	94,011
Non-cash repayment of mortgage note and other secured borrowings	[2]	$ 139,236	$ 101,807

[1] Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

[2] * Represents the amount of sales proceeds and debt repayments from the disposition of real property or the repayment of borrowings that we did not receive or pay in cash, primarily due to the repayment or assumption of related borrowings by the purchaser or borrower at closing.

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Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Reclassification of expense	$ 476,000	$ 372,000		$ 1,259,000	$ 962,000
Restatement Adjustment [Member]
Significant Accounting Policies [Line Items]
Reclassification of expense		$ 157,000	$ 181,000		$ 496,000

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Investments in Real Property (Summary of Income and Expenses Attributable to Discontinued Operations) (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
		Sep. 30, 2014	Sep. 30, 2014
Investments in Real Property [Abstract]
Revenues			$ 969
Rental expense			(340)
Interest expense			(296)
Other expenses			(7)
Income from discontinued operations			326
Gain on disposition			29,679
Discontinued operations	[1]	$ 5	30,005
Discontinued operations attributable to noncontrolling interests			(4,462)
Income from discontinued operations attributable to common stockholders		$ 5	$ 25,543

[1] Includes approximately $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

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Derivatives And Hedging Activities (Gross Fair Value of Derivative Financial Instruments as Well as Their Classification) (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair value, Gross asset			$ 543
Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives, Fair value, Gross liability		$ (6,939)	(907)
Designated Hedges | Interest Rate Contract | Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair value, Gross asset	[1]		543
Designated Hedges | Interest Rate Contract | Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives, Fair value, Gross liability	[1]	$ (6,939)	$ (907)

[1] Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
ASSETS
Investments in real property		$ 2,270,746	$ 2,442,509
Accumulated depreciation and amortization		(489,395)	(513,083)
Total net investments in real property	[1]	1,781,351	1,929,426
Debt related investments, net		27,775	94,951
Total net investments		1,809,126	2,024,377
Cash and cash equivalents		15,186	14,461
Restricted cash		20,258	27,452
Other assets, net		46,250	59,916
Assets held for sale	[2]		21,927
Total Assets		1,890,820	2,148,133
Liabilities:
Accounts payable and accrued expenses		51,056	49,974
Mortgage notes and other secured borrowings	[3]	543,947	853,267
Unsecured borrowings		459,000	345,000
Intangible lease liabilities, net		58,649	86,243
Other liabilities		33,073	47,789
Liabilities associated with assets held for sale			1,880
Total Liabilities		1,145,725	1,384,153
Stockholders' equity:
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 165,043,370 and 178,399,679 shares issued and outstanding, as of September 30, 2015 and December 31, 2014, respectively	[4]	1,650	1,784
Additional paid-in capital		1,479,403	1,586,444
Distributions in excess of earnings		(818,531)	(893,791)
Accumulated other comprehensive loss		(14,985)	(10,120)
Total stockholders' equity		647,537	684,317
Noncontrolling interests		97,558	79,663
Total Equity		745,095	763,980
Total Liabilities and Equity		$ 1,890,820	$ 2,148,133

[1] Includes approximately $76.3 million and $82.7 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

[2] Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

[3] Includes approximately $58.5 million and $59.4 million in consolidated mortgage notes in variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

[4] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

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Debt Related Investments (Schedule of Debt Related Income) (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) loan security	Sep. 30, 2014 USD ($) security
Investment [Line Items]
Debt related income		$ 807	$ 1,798	$ 5,594	$ 5,571
Weighted Average Yield	[1]	5.80%		5.80%
Number of debt investment repaid | security				4	3
Mortgage Note
Investment [Line Items]
Debt related income	[2]	$ 666	1,058	$ 3,808	$ 3,469
Weighted Average Yield	[1],[2]	5.80%		5.80%
Number of debt investment repaid | security				4
Mezzanine loan
Investment [Line Items]
Debt related income	[3]	$ 141	$ 740	$ 1,786	$ 2,102
Number of debt investment repaid | loan				1

[1] Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of September 30, 2015. As of September 30, 2015, all of our debt related investments bear interest at fixed rates.

[2] Four and three of our debt related investments structured as mortgage notes were repaid in full during the nine months ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015 and 2014, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments.

[3] Our debt related investment structured as a mezzanine loan was repaid in full during the three months ended September 30, 2015. During the three and nine months ended September 30, 2015, amounts recorded were offset by accelerated amortization of deferred due diligence costs.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net (Loss) Income	$ (1,425)	$ (7,514)	$ 130,883	$ 28,292
Other Comprehensive (Loss) Income:
Net unrealized change from available-for-sale securities				(211)
Unrealized change from cash flow hedging derivatives	(6,016)	1,160	(5,251)	1,389
Comprehensive (loss) income	(7,441)	(6,354)	125,632	29,470
Comprehensive loss (income) attributable to noncontrolling interests	1,732	472	(6,972)	(4,304)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (5,709)	$ (5,882)	$ 118,660	$ 25,166

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Related Party Transactions (Schedule Of RSU Grants) (Details) - Restricted Stock Units (RSUs) [Member]	Sep. 30, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares	441
Applicable Grant Date NAV per Share | $ / shares	$ 7.06
April 7, 2014 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares	247
Applicable Grant Date NAV per Share | $ / shares	$ 6.96
February 25, 2015 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares	59
Applicable Grant Date NAV per Share | $ / shares	$ 7.18
February 25, 2015 Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Unvested Shares	135
Applicable Grant Date NAV per Share | $ / shares	$ 7.18

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Investments in Real Property (Summary of Acquisitions of Real Property) (Details) ft² in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) ft² property
Significant Acquisitions and Disposals [Line Items]
Net Rentable Square Feet	3,060
Percent Leased	95.00%
Ventura Corporate Center, Office Property; South Florida [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	1
Date of Acquisition	Aug. 06, 2015
Acquired Ownership	100.00%
Contract Price | $	$ 45,750
Net Rentable Square Feet	253
Percent Leased	97.00%
Shenandoah, Retail Property; South Florida [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	1
Date of Acquisition	Aug. 06, 2015
Acquired Ownership	100.00%
Contract Price | $	$ 32,670
Net Rentable Square Feet	124
Percent Leased	100.00%
CityView, Office Property; Austin, TX [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	1
Date of Acquisition	Mar. 18, 2015
Acquired Ownership	100.00%
Contract Price | $	$ 35,450
Net Rentable Square Feet	143
Percent Leased	92.00%
South Cape, Retail Property; Greater Boston Market [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	1
Date of Acquisition	Jan. 15, 2015
Acquired Ownership	100.00%
Contract Price | $	$ 37,300
Net Rentable Square Feet	155
Percent Leased	94.00%
Rialto, Office Property; Austin, TX Market
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	1
Date of Acquisition	Apr. 24, 2015
Acquired Ownership	100.00%
Contract Price | $	$ 68,750
Net Rentable Square Feet	274
Percent Leased	99.00%
Office Property; Dallas, TX Market [Member]
Significant Acquisitions and Disposals [Line Items]
Net Rentable Square Feet	177
Percent Leased	88.00%
Real property
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property	5
Contract Price | $	$ 219,920
Net Rentable Square Feet	949
Percent Leased	97.00%

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Investments in Real Property (Tables)

9 Months Ended

Sep. 30, 2015

Investments in Real Property [Abstract]

Schedule of Consolidated Investments in Real Property

Real Property	Land		Building and Improvements		Intangible Lease Assets		Total Investment Amount		Intangible Lease Liabilities		Net Investment Amount
As of September 30, 2015:
Office	$	204,700	$	815,933	$	308,614	$	1,329,247	$	(18,414)	$	1,310,833
Industrial		9,572		65,153		16,436		91,161		(344)		90,817
Retail		252,310		502,817		95,211		850,338		(68,398)		781,940
Total gross book value		466,582		1,383,903		420,261		2,270,746		(87,156)		2,183,590
Accumulated    depreciation/amortization		—		(193,467)		(295,928)		(489,395)		28,507		(460,888)
Total net book value	$	466,582	$	1,190,436	$	124,333	$	1,781,351	$	(58,649)	$	1,722,702
As of December 31, 2014:
Office (1)	$	238,505	$	818,659	$	359,057	$	1,416,221	$	(21,535)	$	1,394,686
Industrial		25,502		193,878		48,421		267,801		(41,011)		226,790
Retail		237,605		464,479		86,820		788,904		(62,292)		726,612
Total gross book value		501,612		1,477,016		494,298		2,472,926		(124,838)		2,348,088
Accumulated    depreciation/amortization		—		(204,165)		(319,081)		(523,246)		38,595		(484,651)
Total net book value	$	501,612	$	1,272,851	$	175,217	$	1,949,680	$	(86,243)	$	1,863,437

__________________

(1) Includes $4.1 million in land, $19.3 million in building and improvements, and $7.0million in intangible lease assets before accumulated depreciation of $10.2 million, related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

Schedule of Acquisitions of Real Property

Real Property	Property Type	Market	Number of Properties	Date of Acquisition	Acquired Ownership	Contract Price		Net Rentable Square Feet	Percent Leased
Venture Corporate Center	Office	South Florida	1	August 6, 2015	100%	$	45,750	253	97%
Shenandoah	Retail	South Florida	1	August 6, 2015	100%		32,670	124	100%
City View	Office	Austin, TX	1	April 24, 2015	100%		68,750	274	99%
South Cape	Retail	Greater Boston (1)	1	March 18, 2015	100%		35,450	143	92%
Rialto	Office	Austin, TX	1	January 15, 2015	100%		37,300	155	94%
Total 2015 real    property    acquisitions			5			$	219,920	949	97%

__________________

(1) Our Greater Boston market comprises the greater metro area around Boston, MA. As of September 30, 2015, properties in our Greater Boston market are located in the following states: Massachusetts, Connecticut, New Hampshire, and Rhode Island.

Schedule of Allocation of the Fair Value of Acquired Real Properties

																	Weighted-average Amortization Period (Years)
Real Property	Land		Building and Improvements		Intangible Lease Assets		Intangible Lease Liabilities		Mark-to-Market Adjustment on Assumed Debt		Total Fair Value		Prorations and Credits		Contract Price		Intangible Lease Assets	Intangible Lease Liabilities
Venture Corporate Center	$	12,047	$	22,183	$	11,968	$	(798)	$	—	$	45,400	$	350	$	45,750	6.3	6.1
Shenandoah		10,501		22,959		4,438		(4,294)		(934)		32,670		—		32,670	13.0	18.9
City View		4,606		55,868		9,382		(1,543)		—		68,313		437		68,750	4.5	3.9
South Cape		9,936		22,877		4,675		(2,038)		—		35,450		—		35,450	7.9	23.8
Rialto		5,094		26,740		5,751		(447)		—		37,138		162		37,300	5.2	2.7
Total 2015 real     property     acquisitions	$	42,184	$	150,627	$	36,214	$	(9,120)	$	(934)	$	218,971	$	949	$	219,920	6.7	15.6

Schedule of Revenue and Net Operating Income of Properties Acquired During 2014

	For the Three Months Ended September 30, 2015				For the Nine Months Ended  September 30, 2015
	Revenue		NOI (1)		Revenue		NOI (1)
Real Property
Venture Corporate Center	$	1,123	$	726	$	1,123	$	726
Shenandoah		458		342		458		342
City View		2,136		1,355		3,684		2,383
South Cape		882		684		1,931		1,496
Rialto		1,168		654		3,236		1,908
Total	$	5,767	$	3,761	$	10,432	$	6,855

__________________

(1) For a discussion as to why we view NOI to be an appropriate supplemental performance measure and a reconciliation to GAAP net income, refer to Note 11.

Schedule Of Disposed Properties [Table Text Block]

Property Type	Market	Ownership	Net Rentable Square Feet	Percentage Leased	Disposition Date	Contract Sales Price		Gain on Sale
Land Parcel	Denver, CO	100%	N/A	N/A	August 12, 2015	$	7,577	$	1,701
Office	Los Angeles, CA	100%	111	0%	July 20, 2015		12,549		2,866
Retail	Pittsburgh, PA	100%	103	93%	May 5, 2015		12,500		—
Office and Industrial Portfolio (1)	Various (1)	100%	2,669	100%	March 11, 2015		398,635		105,542
Office	Dallas, TX	100%	177	88%	January 16, 2015		46,600		23,125
Total 2015 real property dispositions			3,060	95%		$	477,861	$	133,234

__________________

(1) The Portfolio includes (i) six office properties comprising 1.1 million net rentable square feet located in the following markets: Los Angeles, CA (three properties, of which one disposed property was a single building from a two-building office property), Northern New Jersey, Miami, FL, and Dallas, TX, and (ii) six industrial properties comprising 1.6 million net rentable square feet located in the following markets: Los Angeles, CA, Dallas, TX, Cleveland, OH, Chicago, IL, Houston, TX, and Denver, CO.

Carrying Amounts of Major Classes of Assets and Liabilities Included in Discontinued Operations and Classified as Held for Sale

	As of December 31, 2014
Land	$	4,075
Building and improvements		19,337
Intangible lease assets		7,005
Accumulated depreciation		(10,163)
Other assets, net		1,673
Assets held for sale	$	21,927
Other liabilities		1,880
Liabilities related to assets held for sale	$	1,880

Schedule of Amounts Recorded as Discontinued Operations

	For the  Nine Months Ended September 30, 2014
Revenues	$	969
Rental expense		(340)
Interest expense		(296)
Other expenses		(7)
Income from discontinued operations		326
Gain on disposition		29,679
Discontinued operations		30,005
Discontinued operations attributable to noncontrolling interests		(4,462)
Discontinued operations attributable to common stockholders	$	25,543

Capital Expenditures and Signficant Operating and Investing Noncash Items Related to Discontinued Operations

	For the  Nine Months Ended September 30, 2014
Noncash items:
Straight-line rent adjustments	$	(41)
Non-cash disposition of real property		80,361

Schedule of Adjustments to Rental Revenue Related to Amortization of Above-Market Lease Assets, Below-Market Lease Liabilities, and for Straight-Line Rental Adjustments

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Straight-line rent adjustments	$	(286)	$	1,150	$	(684)	$	2,939
Above-market lease assets		(1,307)		(1,673)		(3,923)		(5,110)
Below-market lease liabilities		1,437		1,797		4,539		5,190
Total (decrease) increase to rental revenue	$	(156)	$	1,274	$	(68)	$	3,019
Tenant recovery income(1)	$	9,293	$	7,862	$	28,031	$	23,745

__________________

(1) Tenant recovery income presented in this table excludes real estate taxes that were paid directly by our tenants that are subject to triple net lease contracts. Such payments totaled approximately $1.4 million and $3.1 million during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.5 million and $9.3 million during the nine months ended September 30, 2015 and 2014, respectively.

Schedule of Top Five Tenants as Percentage of Consolidated Annual Base Rent and Square Feet

Tenant	Locations	Industry	Annualized Base Rent (1)		% of Total Annualized Base Rent		Square Feet	% of Total Portfolio Square Feet
Charles Schwab & Co., Inc.	1	Securities, Commodities, Fin. Inv./Rel. Activities	$	23,223		13.2%	594	6.9%
Sybase	1	Publishing Information (except Internet)		17,971		10.2%	405	4.7%
Northrop Grumman	1	Professional, Scientific and Technical Services		15,901		9.1%	575	6.6%
Stop & Shop	16	Food and Beverage Stores		14,983		8.5%	911	10.5%
Novo Nordisk	1	Chemical Manufacturing		4,536		2.6%	167	1.9%
	20		$	76,614		43.6%	2,652	30.6%

__________________

(1) Annualized base rent represents the annualized monthly base rent of executed leases as of September 30, 2015.

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Investments in Real Property (Summary of Fair Value of Acquired Real Properties) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Real Estate Properties [Line Items]
Land	$ 42,184
Building and Improvements	150,627
Intangible Lease Assets	36,214
Intangible Lease Liabilities	(9,120)
Market-to-Market Adjustment on Assumed Debt	(934)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	218,971
Prorations and Credits	949
Ventura Corporate Center, Office Property; South Florida [Member]
Real Estate Properties [Line Items]
Land	12,047
Building and Improvements	22,183
Intangible Lease Assets	11,968
Intangible Lease Liabilities	(798)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	45,400
Prorations and Credits	350
Shenandoah, Retail Property; South Florida [Member]
Real Estate Properties [Line Items]
Land	10,501
Building and Improvements	22,959
Intangible Lease Assets	4,438
Intangible Lease Liabilities	(4,294)
Market-to-Market Adjustment on Assumed Debt	(934)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	32,670
CityView, Office Property; Austin, TX [Member]
Real Estate Properties [Line Items]
Land	4,606
Building and Improvements	55,868
Intangible Lease Assets	9,382
Intangible Lease Liabilities	(1,543)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	68,313
Prorations and Credits	437
South Cape, Retail Property; Greater Boston Market [Member]
Real Estate Properties [Line Items]
Land	9,936
Building and Improvements	22,877
Intangible Lease Assets	4,675
Intangible Lease Liabilities	(2,038)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	35,450
Rialto, Office Property; Austin, TX Market
Real Estate Properties [Line Items]
Land	5,094
Building and Improvements	26,740
Intangible Lease Assets	5,751
Intangible Lease Liabilities	(447)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total	37,138
Prorations and Credits	$ 162
Intangible Lease Assets
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	6 years 8 months 12 days
Intangible Lease Assets | Ventura Corporate Center, Office Property; South Florida [Member]
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	6 years 3 months 18 days
Intangible Lease Assets | Shenandoah, Retail Property; South Florida [Member]
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	13 years
Intangible Lease Assets | CityView, Office Property; Austin, TX [Member]
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	4 years 6 months
Intangible Lease Assets | South Cape, Retail Property; Greater Boston Market [Member]
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	7 years 10 months 24 days
Intangible Lease Assets | Rialto, Office Property; Austin, TX Market
Real Estate Properties [Line Items]
Weighted-average Amortization Period, assets	5 years 2 months 12 days
Intangible Lease Liabilities
Real Estate Properties [Line Items]
Contract Price	$ 219,920
Weighted-average Amortization Period, liabilities	15 years 7 months 6 days
Intangible Lease Liabilities | Ventura Corporate Center, Office Property; South Florida [Member]
Real Estate Properties [Line Items]
Contract Price	$ 45,750
Weighted-average Amortization Period, liabilities	6 years 1 month 6 days
Intangible Lease Liabilities | Shenandoah, Retail Property; South Florida [Member]
Real Estate Properties [Line Items]
Contract Price	$ 32,670
Weighted-average Amortization Period, liabilities	18 years 10 months 24 days
Intangible Lease Liabilities | CityView, Office Property; Austin, TX [Member]
Real Estate Properties [Line Items]
Contract Price	$ 68,750
Weighted-average Amortization Period, liabilities	3 years 10 months 24 days
Intangible Lease Liabilities | South Cape, Retail Property; Greater Boston Market [Member]
Real Estate Properties [Line Items]
Contract Price	$ 35,450
Weighted-average Amortization Period, liabilities	23 years 9 months 18 days
Intangible Lease Liabilities | Rialto, Office Property; Austin, TX Market
Real Estate Properties [Line Items]
Contract Price	$ 37,300
Weighted-average Amortization Period, liabilities	2 years 8 months 12 days

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Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2015

Debt Obligations [Abstract]

Schedule of Borrowings

	Weighted Average Stated Interest Rate as of		Outstanding Balance as of (1)				Gross Investment Amount Securing Borrowings as of (2)
	September 30, 2015	December 31, 2014	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Fixed-rate mortgages	5.9%	5.8%	$	535,967	$	807,994	$	1,026,446	$	1,625,637
Floating-rate mortgage (3)	3.2%	3.2%		7,980		8,250		16,459		16,118
Total mortgage notes	5.8%	5.8%		543,947		816,244		1,042,905		1,641,755
Repurchase facility (4)	N/A	2.8%		—		37,023		—		51,156
Total secured     borrowings	5.8%	5.6%		543,947		853,267		1,042,905		1,692,911
Line of credit (5)	2.0%	2.6%		109,000		75,000		N/A		N/A
Term loans (6)	2.6%	2.7%		350,000		270,000		N/A		N/A
Total unsecured     borrowings	2.4%	2.7%		459,000		345,000		N/A		N/A
Total borrowings	4.3%	4.8%	$	1,002,947	$	1,198,267		N/A		N/A

__________________

(1) Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

(2) “Gross Investment Amount” as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt related investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss.

(3) As of September 30, 2015 and December 31, 2014, our floating rate mortgage note was subject to an interest rate spread of 3.00% over one-month LIBOR.

(4) As of December 31, 2014, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings.

(5) As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

(6) As of September 30, 2015 and December 31, 2014, borrowings under our term loans were subject to interest at weighted average floating rates of 1.52% and 1.70%, respectively, over one-month LIBOR. However, we had effectively fixed the interest rates of the borrowings using interest rate swaps at 2.57% and 2.69% as of September 30, 2015 and December 31, 2014, respectively.

Schedule Of Repayment Of Mortgage Notes And Repurchase Facility

Debt Obligation	Repayment Date	Balance Repaid		Stated Interest Rate (1)	Contractual Maturity Date	Collateral Type	Collateral Market
Austin-Mueller Health Center	July 6, 2015	$	16,946	7.50%	January 1, 2016	Office Property	Austin, TX
Preston Sherry Plaza	July 1, 2015		22,292	5.85%	September 1, 2015	Office Property	Dallas, TX
Campus Road	April 10, 2015		33,501	4.75%	July 10, 2015	Office Property	Princeton, NJ
Mansfield	April 1, 2015		8,307	6.03%	October 1, 2015	Retail Property	Greater Boston
Orleans	January 2, 2015		13,818	6.02%	July 1, 2015	Retail Property	Greater Boston
Whitman	January 2, 2015		7,316	6.02%	July 1, 2015	Retail Property	Greater Boston
Total/weighted average     mortgage notes			102,180	5.81%
Repurchase facility	May 29, 2015		37,023	2.84%	May 29, 2015	Debt Related Investments	Various
Total/weighted average     borrowings		$	139,203	5.02%

__________________

(1) We had effectively fixed the stated interest rates of certain of our borrowings by using interest rate swaps.

Schedule of Borrowings Reflects Contractual Debt Maturities

	As of September 30, 2015
	Mortgage Notes			Unsecured Borrowings			Total
Year Ending December 31,	Number of Borrowings Maturing	Outstanding Principal Balance		Number of Borrowings Maturing	Outstanding Principal Balance (1)		Outstanding Principal Balance (2)
2015	—	$	2,823	—	$	—	$	2,823
2016	11		309,913	—		—		309,913
2017	6		206,659	—		—		206,659
2018	—		1,761	1		150,000		151,761
2019	—		1,868	1		109,000		110,868
2020	—		1,982	—		—		1,982
2021	1		10,825	—		—		10,825
2022	1		1,663	1		200,000		201,663
2023	—		978	—		—		978
2024	—		1,034	—		—		1,034
Thereafter	2		5,397	—		—		5,397
Total	21	$	544,903	3	$	459,000	$	1,003,903

__________________

(1) Unsecured borrowings presented include (i) borrowings under the $150 Million Term Loan of $150.0 million, which are scheduled to mature in 2018, subject to two one-year extension options, (ii) borrowings under the Revolving Credit Facility of $109.0 million, which are scheduled to mature in 2019, subject to a one-year extension option, and (iii) borrowings under the $200 Million Term Loan of $200.0 million, which are scheduled to mature in 2022 with no extension options.

(2) Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include the GAAP principal amortization of our restructured mortgage note of approximately $2.9 million that does not reduce the contractual amount due of the related mortgage note as of September 30, 2015, partially offset by the mark-to-market premium on assumed debt of $1.9 million as of September 30, 2015.

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CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Distributions in Excess of Earnings	Accumulated Other Comprehensive (Loss) Income	Noncontrolling Interests	Total
Beginning Balances (in shares) at Dec. 31, 2014	178,400,000					178,399,679	[1]
Beginning Balances at Dec. 31, 2014	$ 1,784	$ 1,586,444	$ (893,791)	$ (10,120)	$ 79,663	$ 763,980
Comprehensive income (loss):
Net income			123,525		7,358	130,883
Unrealized change from cash flow hedging derivatives				(4,889)	(362)	(5,251)
Common stock:
Issuance of common stock, net of offering costs (in shares)	11,939,000
Issuance of common stock, net of offering costs	$ 119	81,490				81,609
Issuance of common stock, stock-based compensation plans (in shares)	618,000
Issuance of common stock, stock-based compensation plans	$ 6	942				948
Redemptions of common stock (in shares)	(25,914,000)
Redemptions of common stock	$ (259)	(189,350)				(189,609)
Amortization of stock based compensation		24				24
Distributions declared on common stock			(48,265)			(48,265)
Noncontrolling interests:
Contributions of noncontrolling interests					16,517	16,517
Distributions declared to noncontrolling interests					(3,508)	(3,508)
Redemptions of noncontrolling interests		(147)		24	(2,110)	$ (2,233)
Ending Balances (in shares) at Sep. 30, 2015	165,043,000					165,043,370	[1]
Ending Balances at Sep. 30, 2015	$ 1,650	$ 1,479,403	$ (818,531)	$ (14,985)	$ 97,558	$ 745,095

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014
Common stock, par value		$ 0.01	$ 0.01
Common stock, shares authorized		1,000,000,000	1,000,000,000
Common stock, shares issued	[1]	165,043,370	178,399,679
Common stock, shares outstanding	[1]	165,043,370	178,399,679
Investment in real property	[2]	$ 1,781,351	$ 1,929,426
Class E
Common stock, shares issued		139,437,007	163,067,835
Common stock, shares outstanding		139,437,007	163,067,835
Class A
Common stock, shares issued		1,447,984	1,187,215
Common stock, shares outstanding		1,447,984	1,187,215
Class W
Common stock, shares issued		1,418,223	1,116,698
Common stock, shares outstanding		1,418,223	1,116,698
Class I
Common stock, shares issued		22,740,156	13,027,931
Common stock, shares outstanding		22,740,156	13,027,931
Variable interest entity investments
Investment in real property		$ 76,300	$ 82,700
Mortgage notes		$ 58,500	$ 59,400

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

[2] Includes approximately $76.3 million and $82.7 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

9. RELATED PARTY TRANSACTIONS

Our day-to-day activities are managed by our Advisor, a related party, under the terms and conditions of the Advisory Agreement. Our Advisor is considered to be a related party as certain indirect owners and employees of our Advisor serve as two of our directors and all of our executive officers. The responsibilities of our Advisor cover all facets of our business, and include the selection and underwriting of our real property and debt related investments, the negotiations for these investments, the asset management and financing of these investments and the oversight of real property dispositions.

Dividend Capital Securities LLC, which we refer to as the “Dealer Manager,” is distributing the shares of our common stock in our public offering on a “best efforts” basis. The Dealer Manager is an entity related to the Advisor and is a member of the Financial Industry Regulatory Authority, Inc., or FINRA. The Dealer Manager coordinates our distribution effort and manages our relationships with participating broker-dealers and financial advisors and provides assistance in connection with compliance matters relating to marketing our public offering.

On September 16, 2015, the Company entered into a Second Amended and Restated Dealer Manager Agreement (the “Second Amended Dealer Manager Agreement”) with the Dealer Manager. The Dealer Manager served as dealer manager for the Prior Offering and will serve as dealer manager for the Follow-On Offering. The Second Amended Dealer Manager Agreement is an amendment and restatement of the dealer manager agreement entered into by the Company and the Dealer Manager on February 8, 2013 in connection with the Prior Offering, as amended by Amendment No. 1 dated May 31, 2013, Amendment No. 2 dated June 26, 2013 and Amendment No. 3 dated March 20, 2014. The purpose of the Second Amended Dealer Manager Agreement is to engage the Dealer Manager with respect to the Follow-On Offering. As amended, the Second Amended Dealer Manager Agreement may be made to apply to future offerings by naming them in a schedule to the agreement, with the consent of the Company and the Dealer Manager. Pursuant to the Second Amended Dealer Manager Agreement, we pay (i) selling commissions on Class A shares sold in the primary offering of up to 3.0% of the public offering price per share, (ii) a dealer manager fee which accrues daily in an amount equal to 1/365th of 0.6% of our NAV per share of Class A and Class W shares outstanding and an amount equal to 1/365th of 0.1% of our NAV per share of Class I shares outstanding on such day on a continuous basis, and (iii) a distribution fee which accrues daily in an amount equal to 1/365th of 0.5% of our NAV per Class A share outstanding on such day on a continuous basis. Subject to Financial Industry Regulatory Authority, Inc., or FINRA, limitations on underwriting compensation, we will continue to pay the dealer manager fee and distribution fee until the earlier to occur of the following: (i) a listing of the class of such shares on a national securities exchange or (ii) such shares no longer being outstanding. Pursuant to the Follow-On Offering, we are offering on a continuous basis up to $1,000,000,000 of shares of our common stock, consisting of up to $750,000,000 of shares in our primary offering and up to $250,000,000 of shares pursuant to our distribution reinvestment plan.

Restricted Stock Unit Agreements

We have entered into Restricted Stock Unit Agreements (the “Advisor RSU Agreements”) with our Advisor. The purposes of the Advisor RSU Agreements are to promote an alignment of interests among our stockholders, the Advisor and the personnel of our Advisor and its affiliates, and to promote retention of the personnel of our Advisor and its affiliates. Pursuant to the terms of the Advisor RSU Agreements, we have granted approximately 441,000 restricted stock units (“Company RSUs”) to the Advisor that remain unvested and unsettled as of September 30, 2015. Each Company RSU will, upon vesting, be settled in one share of our Class I common stock. The Company RSUs are subject to specified vesting and settlement provisions and, upon settlement in Class I shares of Company common stock, require offsets of advisory fees and expenses otherwise payable from the Company to the Advisor based on the NAV per Class I share on the grant date of the applicable Company RSU (the weighted average grant-date NAV per Class I share with respect to the unsettled Company RSUs is $7.06 as of September 30, 2015). As of September 30, 2015, the Advisor had approximately 76,000shares of Class I common stock issued upon settlement of Company RSUs that remained subject to fee offset.

Vesting and Payment Offset

The chart below shows the grant dates, vesting dates and Class I NAV on the grant dates of the unvested Company RSUs as of September 30, 2015 (share amounts in thousands).

Award	Grant Date	Vesting Dates	Number of Unvested Shares	Applicable Grant Date NAV per Share
Company RSU	April 7, 2014	April 15, 2016, April 15, 2017	247	$	6.96
Company RSU	February 25, 2015	April 15, 2016, April 15, 2017	59		7.18
Company RSU	February 25, 2015	April 15, 2018	135		7.18
			441	$	7.06

On each vesting date, an offset amount will be calculated and deducted on a pro rata basis over the next 12 months from the cash payments otherwise due and payable to the Advisor under our then-current Advisory Agreement for any fees or expense reimbursements. Each offset amount will equal the number of Company RSUs vesting on such date multiplied by the grant-date NAV per Class I share. For each Company RSU, the offset amount will always be calculated based on the grant-date NAV per Class I share, even beyond the initial grant and vesting dates. At the end of each 12-month period following each vesting date, if the offset amount has not been fully realized by offsets from the cash payments otherwise due and payable to the Advisor under the Advisory Agreement, the Advisor will promptly pay any shortfall to us.

Termination

The Advisor RSU Agreements will automatically terminate upon termination or non-renewal of the Advisory Agreement by any party for any reason. In addition, upon a change in control of us, then either the Advisor or we may immediately terminate the Advisor RSU Agreements. Further, the Advisor may immediately terminate the Advisor RSU Agreements if we exercise certain rights under the Advisor RSU Agreements to replace the Company RSUs with another form of compensation.

Upon termination of the Advisor RSU Agreements, the Advisor will promptly pay any unused offset amounts to us or, at the Advisor’s election, return Class I shares in equal value based on the Class I NAV as of the date of termination of the Advisor RSU Agreements. In addition, upon termination of the Advisor RSU Agreements, all unvested Company RSUs will be forfeited except that, unless the Advisor RSU Agreements were terminated at the election of the Advisor following a change in control of us or as a result of a premature termination of the Advisory Agreement at our election for cause (as defined in the Advisory Agreement) or upon the bankruptcy of the Advisor, then following such forfeiture of Company RSUs, the Advisor will have the right to acquire from us the number of Class I shares equal to the number of Company RSUs forfeited, in return for a purchase price equal to such number of Class I shares multiplied by the grant-date NAV per Class I share. The Advisor must notify us of its election to exercise the foregoing acquisition right within 30 days following the termination of the Advisor RSU Agreements, and the parties will close the transaction within 60 days following the termination of the Advisor RSU Agreements. 

Dividend Equivalent Payments

If our board of directors declares and we pay a cash dividend on Class I shares for any period in which the Company RSUs are outstanding (regardless of whether such Company RSUs are then vested), the Advisor will be entitled to dividend equivalents with respect to that cash dividend equal to the cash dividends that would have been payable on the same number of Class I shares as the number of Company RSUs subject to the Advisor RSU Agreements had such Class I shares been outstanding during the same portion of such period as the Company RSUs were unpaid and outstanding. Any such dividend equivalents may be paid in cash or Class I shares, at the Advisor’s election.

Summary of Fees and Other Amounts

The following table summarizes fees and other amounts earned by our Advisor and its related parties in connection with services performed for us during the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Advisory fees (1)	$	4,225	$	4,083	$	13,021	$	11,678
Other reimbursements paid to our Advisor (2)		2,176		1,953		6,590		5,923
Other reimbursements paid to our Dealer Manager		33		82		310		423
Advisory fees related to the disposition of     real properties		201		—		4,779		1,973
Development management fee		18		3		52		107
Primary dealer fee (3)		—		1,648		2,540		2,198
Selling commissions, dealer manager,     and distribution fees		102		62		271		238
Total	$	6,755	$	7,831	$	27,563	$	22,540

__________________

(1) Amounts reported for the three months ended September 30, 2015 include approximately $283,000 in consideration of the issuance of approximately 153,000 shares of our Class I common stock to the Advisor. Such shares were issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash. Amounts reported for the nine months ended September 30, 2015 include approximately $786,000 in consideration of the issuance of approximately 276,000 shares of our Class I common stock to the Advisor. Such shares include (i) approximately 153,000 shares issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and (ii) 123,000 shares issued on April 15, 2014 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014. Such Class I shares are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash.

(2) Other reimbursements paid to our Advisor primarily comprise salary, bonus, and overhead reimbursements.

(3) Amounts reported represent primary dealer fees we paid to the Dealer Manager based on the gross proceeds raised by participating broker-dealers pursuant to certain selected dealer agreements. Of the primary dealer fee earned during the nine months ended September 30, 2015, the Dealer Manager reallowed approximately $2.3 million to participating third-party broker-dealers and retained approximately $254,000. Of the primary dealer fee earned during the nine months ended September 30, 2014, the Dealer Manager reallowed approximately $2.0 million to participating third-party broker-dealers and retained approximately $220,000.

As of September 30, 2015 and December 31, 2014, we owed approximately $2.4 million and $1.9 million to our Advisor and affiliates of our Advisor for such services and reimbursement of certain expenses, respectively. Pursuant to the Advisory Agreement, we accrue the advisory fee on a daily basis and pay our Advisor amounts due subsequent to each month-end.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Entity Registrant Name	Dividend Capital Diversified Property Fund Inc.
Entity Central Index Key	0001327978
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class E
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		139,995,543
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,517,286
Class W
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,506,484
Class I
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		22,981,923

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Net Income Per Common Share

9 Months Ended

Sep. 30, 2015

Net Income Per Common Share [Abstract]

Net Income Per Common Share

10. NET INCOME (LOSS) PER COMMON SHARE

Reconciliations of the numerator and denominator used to calculate basic net income (loss) per common share to the numerator and denominator used to calculate diluted net income (loss) per common share for the three and nine months ended September 30, 2015 and 2014 are described in the following table (amounts in thousands, except per share information):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
Numerator	2015		2014		2015		2014
(Loss) income from continuing operations	$	(1,425)	$	(7,519)	$	130,883	$	(1,713)
Loss (income) from continuing operations attributable     to noncontrolling interests		1,297		475		(7,358)		57
(Loss) income from continuing operations     attributable to common stockholders		(128)		(7,044)		123,525		(1,656)
Dilutive noncontrolling interests share     of (loss) income from continuing operations		(10)		(500)		8,575		(128)
Numerator for diluted earnings     per share – adjusted (loss) income from     continuing operations		(138)		(7,544)		132,100		(1,784)
Income from discontinued operations		—		5		—		30,005
Income from discontinued operations     attributable to noncontrolling interests		—		—		—		(4,462)
Income from discontinued operations     attributable to common stockholders		—		5		—		25,543
Dilutive noncontrolling interests share     of discontinued operations		—		—		—		1,915
Numerator for diluted earnings     per share – adjusted income from     discontinued operations	$	—	$	5	$	—	$	27,458
Denominator
Weighted average shares outstanding-basic		174,290		178,729		179,168		177,717
Incremental weighted average shares effect     of conversion of OP units		12,989		12,693		12,852		12,888
Weighted average shares outstanding-diluted		187,279		191,422		192,020		190,605
INCOME (LOSS) PER COMMON SHARE-BASIC     AND DILUTED
Net income (loss) from continuing operations	$	(0.00)	$	(0.04)	$	0.69	$	(0.01)
Net income from discontinued operations		—		0.00		—		0.14
Net income (loss)	$	(0.00)	$	(0.04)	$	0.69	$	0.13

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
REVENUE:
Rental revenue		$ 52,854	$ 56,793	$ 163,308	$ 166,933
Debt related income		807	1,798	5,594	5,571
Total Revenue		53,661	58,591	168,902	172,504
EXPENSES:
Rental expense		14,877	12,804	43,412	37,947
Real estate depreciation and amortization expense		20,851	21,918	61,404	66,481
General and administrative expenses	[1]	2,477	2,581	8,157	8,187
Advisory fees, related party		4,225	4,083	13,021	11,678
Acquisition-related expenses		476	372	1,259	962
Impairment of real estate property	[2]	6,500	9,500	8,124	9,500
Total Operating Expenses		49,406	51,258	135,377	134,755
Other Income (Expenses):
Interest and other income		704	424	1,500	688
Interest expense		(10,951)	(15,276)	(36,208)	(46,549)
Loss on extinguishment of debt and financing commitments				(1,168)	(63)
Gain on sale of real property	[3]	4,567		133,234	6,462
(Loss) income from continuing operations		(1,425)	(7,519)	130,883	(1,713)
Discontinued operations	[4]		5		30,005
Net (Loss) Income		(1,425)	(7,514)	130,883	28,292
Net loss (income) attributable to noncontrolling interests		1,297	475	(7,358)	(4,405)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$ (128)	$ (7,039)	$ 123,525	$ 23,887
Net (loss) income per basic and diluted common share:
Continuing operations		$ 0.00	$ (0.04)	$ 0.69	$ (0.01)
Discontinued operations			0.00		0.14
NET (LOSS) INCOME PER BASIC AND DILUTED COMMON SHARE		$ 0.00	$ (0.04)	$ 0.69	$ 0.13
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
Basic		174,290	178,729	179,168	177,717
Diluted		187,279	191,422	192,020	190,605
Distributions declared per common share		$ 0.0895	$ 0.0872	$ 0.2688	$ 0.2620

[1] Includes approximately $1.8 million and $1.6 million paid to our Advisor and its affiliates for reimbursable expenses during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.3 million and $4.8 million paid to our Advisor and its affiliates for reimbursable expenses during the nine months ended September 30, 2015 and 2014, respectively.

[2] Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

[3] Includes approximately $201,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended September 30, 2015, and approximately $4.6 million and $328,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015 and 2014, respectively.

[4] Includes approximately $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

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Debt Related Investments

9 Months Ended

Sep. 30, 2015

Debt Related Investments [Abstract]

Debt Related Investments

4. DEBT RELATED INVESTMENTS

As of September 30, 2015 and December 31, 2014, we had invested in five and 11 debt related investments, respectively. The weighted average maturity of our debt related investments structured as mortgage notes as of September 30, 2015 was 2.9 years, based on our recorded net investments. The following table describes our debt related income for the three and nine months ended September 30, 2015 and 2014 (dollar amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,				Weighted Average Yield as of
Investment Type	2015		2014		2015		2014		September 30, 2015 (1)
Mortgage notes (2)	$	666	$	1,058	$	3,808	$	3,469	5.8%
Mezzanine debt (3)		141		740		1,786		2,102	N/A
Total	$	807	$	1,798	$	5,594	$	5,571	5.8%

__________________

(1) Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of September 30, 2015. As of September 30, 2015, all of our debt related investments bear interest at fixed rates.

(2) Four and three of our debt related investments structured as mortgage notes were repaid in full during the nine months ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015 and 2014, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments.

(3) Our debt related investment structured as a mezzanine loan was repaid in full during the three months ended September 30, 2015. During the three and nine months ended September 30, 2015, amounts recorded were offset by accelerated amortization of deferred due diligence costs.

Repayments

During the nine months ended September 30, 2015, we received full repayments of four debt related investments structured as mortgage notes and a debt related investment structured as a mezzanine loan. We received cash proceeds from the repayments of approximately $59.9 million, which comprised principal repayments of $69.8 million (including accrued interest of approximately $6.4 million on our mezzanine debt investment) and early repayment fees of $1.3 million, partially offset by the repayments of borrowings secured by these and other debt related investments of approximately $11.2 million.

Impairment

We review each of our debt related investments on a quarterly basis, and more frequently when such an evaluation is warranted, to determine if impairment exists. Accordingly, we do not group our debt related investments into classes by credit quality indicator. A debt related investment is impaired when, based on current information and events (including economic, industry and geographical factors), it is probable that we will be unable to collect all amounts due, both principal and interest, according to the contractual terms of the agreement. When an investment is deemed impaired, the impairment is measured based on the expected future cash flows discounted at the investment’s effective interest rate. As a practical expedient, we may measure impairment based on the fair value of the collateral of an impaired collateral-dependent debt related investment. Regardless of the measurement method, we measure impairment based on the fair value of the collateral when it is determined that foreclosure is probable.

As of December 31, 2014, we had one impaired debt related investment that was a subordinate debt related investment. As of December 31, 2014, we had a gross recorded investment in the impaired debt related investment of $3.0 million, with a related allowance for loan loss of $3.0 million. Based on our review during the nine months ended September 30, 2015, we determined that the impaired debt related investment did not have any value and therefore we recorded a direct write-off of the allowance for loan loss of $3.0 million. We did not record any current period provision for loan loss or recoveries of amounts previously charged off during the three and nine months ended September 30, 2015. As of September 30, 2015 and December 31, 2014, we did not have any impaired loans for which we have not recorded an allowance for loan loss.

As of December 31, 2014, we had one impaired debt related investment with an unpaid principal balance of approximately $3.0 million. The following table describes our recorded investment in debt related investments before allowance for loan loss, and the related allowance for loan loss as of September 30, 2015 and December 31, 2014 (amounts in thousands):

	Debt Related Investments Individually Evaluated for Impairment as of
	September 30, 2015		December 31, 2014
Debt related investments	$	27,775	$	97,951
Less: Allowance for loan losses		—		(3,000)
Total	$	27,775	$	94,951

As of December 31, 2014, our impaired debt related investment was on non-accrual status. As of September 30, 2015, we did not have any debt related investment on non-accrual status. When a debt related investment is on non-accrual status, we record income on the investment using the cash basis of accounting. All of our debt related investments that were past due 90 days or more were on non-accrual status as of December 31, 2014.

We did not record any interest income related to our impaired debt related investment during the three and nine months ended September 30, 2015 or 2014.

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Investments in Real Property

9 Months Ended

Sep. 30, 2015

Investments in Real Property [Abstract]

Investments in Real Property

3. INVESTMENTS IN REAL PROPERTY

Currently, our consolidated investments in real property consist of investments in office, industrial and retail properties. The following tables summarize our consolidated investments in real property as of September 30, 2015 and December 31, 2014 (amounts in thousands):

Real Property	Land		Building and Improvements		Intangible Lease Assets		Total Investment Amount		Intangible Lease Liabilities		Net Investment Amount
As of September 30, 2015:
Office	$	204,700	$	815,933	$	308,614	$	1,329,247	$	(18,414)	$	1,310,833
Industrial		9,572		65,153		16,436		91,161		(344)		90,817
Retail		252,310		502,817		95,211		850,338		(68,398)		781,940
Total gross book value		466,582		1,383,903		420,261		2,270,746		(87,156)		2,183,590
Accumulated    depreciation/amortization		—		(193,467)		(295,928)		(489,395)		28,507		(460,888)
Total net book value	$	466,582	$	1,190,436	$	124,333	$	1,781,351	$	(58,649)	$	1,722,702
As of December 31, 2014:
Office (1)	$	238,505	$	818,659	$	359,057	$	1,416,221	$	(21,535)	$	1,394,686
Industrial		25,502		193,878		48,421		267,801		(41,011)		226,790
Retail		237,605		464,479		86,820		788,904		(62,292)		726,612
Total gross book value		501,612		1,477,016		494,298		2,472,926		(124,838)		2,348,088
Accumulated    depreciation/amortization		—		(204,165)		(319,081)		(523,246)		38,595		(484,651)
Total net book value	$	501,612	$	1,272,851	$	175,217	$	1,949,680	$	(86,243)	$	1,863,437

__________________

(1) Includes $4.1 million in land, $19.3 million in building and improvements, and $7.0million in intangible lease assets before accumulated depreciation of $10.2 million, related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

Acquisitions

The following table summarizes our acquisitions of real properties during the nine months ended September 30, 2015 (dollar amounts and square footage in thousands):

Real Property	Property Type	Market	Number of Properties	Date of Acquisition	Acquired Ownership	Contract Price		Net Rentable Square Feet	Percent Leased
Venture Corporate Center	Office	South Florida	1	August 6, 2015	100%	$	45,750	253	97%
Shenandoah	Retail	South Florida	1	August 6, 2015	100%		32,670	124	100%
City View	Office	Austin, TX	1	April 24, 2015	100%		68,750	274	99%
South Cape	Retail	Greater Boston (1)	1	March 18, 2015	100%		35,450	143	92%
Rialto	Office	Austin, TX	1	January 15, 2015	100%		37,300	155	94%
Total 2015 real    property    acquisitions			5			$	219,920	949	97%

__________________

(1) Our Greater Boston market comprises the greater metro area around Boston, MA. As of September 30, 2015, properties in our Greater Boston market are located in the following states: Massachusetts, Connecticut, New Hampshire, and Rhode Island.

The following table summarizes the allocations of the fair value of the real properties we acquired during the nine months ended September 30, 2015 to land, building and improvements, intangible lease assets, intangible lease liabilities, and mark-to-market adjustment on assumed debt (dollar amounts in thousands). We have not made any material adjustments related to these allocations.

																	Weighted-average Amortization Period (Years)
Real Property	Land		Building and Improvements		Intangible Lease Assets		Intangible Lease Liabilities		Mark-to-Market Adjustment on Assumed Debt		Total Fair Value		Prorations and Credits		Contract Price		Intangible Lease Assets	Intangible Lease Liabilities
Venture Corporate Center	$	12,047	$	22,183	$	11,968	$	(798)	$	—	$	45,400	$	350	$	45,750	6.3	6.1
Shenandoah		10,501		22,959		4,438		(4,294)		(934)		32,670		—		32,670	13.0	18.9
City View		4,606		55,868		9,382		(1,543)		—		68,313		437		68,750	4.5	3.9
South Cape		9,936		22,877		4,675		(2,038)		—		35,450		—		35,450	7.9	23.8
Rialto		5,094		26,740		5,751		(447)		—		37,138		162		37,300	5.2	2.7
Total 2015 real     property     acquisitions	$	42,184	$	150,627	$	36,214	$	(9,120)	$	(934)	$	218,971	$	949	$	219,920	6.7	15.6

For the three and nine months ended September 30, 2015, our consolidated statements of operations include aggregate revenue and net operating income (“NOI”) attributable to the real properties acquired during the nine months ended September 30, 2015 as shown in the table below (amounts in thousands):

	For the Three Months Ended September 30, 2015				For the Nine Months Ended  September 30, 2015
	Revenue		NOI (1)		Revenue		NOI (1)
Real Property
Venture Corporate Center	$	1,123	$	726	$	1,123	$	726
Shenandoah		458		342		458		342
City View		2,136		1,355		3,684		2,383
South Cape		882		684		1,931		1,496
Rialto		1,168		654		3,236		1,908
Total	$	5,767	$	3,761	$	10,432	$	6,855

__________________

(1) For a discussion as to why we view NOI to be an appropriate supplemental performance measure and a reconciliation to GAAP net income, refer to Note 11.

Dispositions

On March 11, 2015, we completed the sale of a portfolio of twelve wholly owned office and industrial properties comprising approximately 2.7 million net rentable square feet (the “Portfolio”) to an unrelated third party, for a gross sales price of approximately $398.6 million. We incurred closing costs and fees of approximately $7.8 million upon the closing of this transaction, including approximately $4.0 million in advisory fees related to the disposition of real property paid to our Advisor. See Note 5 for information regarding financing related to the disposition of the Portfolio.

During the nine months ended September 30, 2015, we disposed of the following properties (dollar amounts and square footage in thousands):

Property Type	Market	Ownership	Net Rentable Square Feet	Percentage Leased	Disposition Date	Contract Sales Price		Gain on Sale
Land Parcel	Denver, CO	100%	N/A	N/A	August 12, 2015	$	7,577	$	1,701
Office	Los Angeles, CA	100%	111	0%	July 20, 2015		12,549		2,866
Retail	Pittsburgh, PA	100%	103	93%	May 5, 2015		12,500		—
Office and Industrial Portfolio (1)	Various (1)	100%	2,669	100%	March 11, 2015		398,635		105,542
Office	Dallas, TX	100%	177	88%	January 16, 2015		46,600		23,125
Total 2015 real property dispositions			3,060	95%		$	477,861	$	133,234

__________________

(1) The Portfolio includes (i) six office properties comprising 1.1 million net rentable square feet located in the following markets: Los Angeles, CA (three properties, of which one disposed property was a single building from a two-building office property), Northern New Jersey, Miami, FL, and Dallas, TX, and (ii) six industrial properties comprising 1.6 million net rentable square feet located in the following markets: Los Angeles, CA, Dallas, TX, Cleveland, OH, Chicago, IL, Houston, TX, and Denver, CO.

For the nine months ended September 30, 2015, our consolidated statements of operations include approximately $6.2 million of aggregate revenue and approximately $6.1 million of NOI attributable to the Portfolio. For the three and nine months ended September 30, 2014, our consolidated statements of operations include approximately $8.5 million and $25.4 million of aggregate revenue, respectively, and approximately $8.4 million and $25.0 million of NOI, respectively, attributable to the Portfolio.

Assets Held for Sale

We did not have any assets or related liabilities classified as held for sale as of September 30, 2015. As of December 31, 2014, we had agreed to dispose of an office property to an unrelated third party. Accordingly, the assets and liabilities related to this property were classified as held for sale in the accompanying balance sheet as of December 31, 2014. We sold the property on January 16, 2015. The following table summarizes the carrying amounts of the major classes of assets and liabilities classified as held for sale as of December 31, 2014 (amounts in thousands):

	As of December 31, 2014
Land	$	4,075
Building and improvements		19,337
Intangible lease assets		7,005
Accumulated depreciation		(10,163)
Other assets, net		1,673
Assets held for sale	$	21,927
Other liabilities		1,880
Liabilities related to assets held for sale	$	1,880

Real Property Impairment

During the nine months ended September 30, 2015, we recorded approximately $1.6 million of impairment charges related to a wholly owned retail property that we acquired in May 2007 in the Pittsburgh, PA market, which was disposed of in May 2015. Prior to the disposition, the net book value of this retail property exceeded the contract sales price less the cost to sell by approximately $1.6 million. Accordingly, we recorded an impairment to reduce the net book value of the property to our estimate of its fair value less the cost to sell.

In addition, during the three months ended September 30, 2015, we recorded a $6.5 million impairment charge related to a consolidated office property located in the Chicago, IL market, which we acquired in February 2007 and we hold through a joint venture in which we are not the managing partner. We have an 80% ownership interest in the office property. As of September 30, 2015, the net book value of this office property exceeded our estimate of the fair value of the property less the cost to sell by $6.5 million. Accordingly, we recorded an impairment charge to reduce the net book value of the property to our estimate of its fair value less the cost to sell.

In the calculation of our NAV, our real estate assets are carried at fair value using valuation methodologies consistent with ASC Topic 820, Fair Value Measurements and Disclosures. As a result, the timing of valuation changes recorded in our NAV will not necessarily be the same as for impairment charges recorded to our financial statements prepared pursuant to GAAP.

Discontinued Operations

We present the results of operations and the respective aggregate net gains (losses), of (i) any property or group of properties that were disposed or classified as held for sale as of December 31, 2013 when the operations and cash flows have been (or will be) eliminated from our ongoing operations and we will not have any significant continuing involvement, and (ii) any property or group of properties, the disposal of which would represent a strategic shift that has (or will have) a major effect on our operations and financial results, when such property (or group of properties) have been disposed of or classified as held for sale, as discontinued operations in our accompanying statements of operations. Interest expense is included in discontinued operations only if it is directly attributable to these operations or properties. Discontinued operations for the three and nine months ended September 30, 2014 include the results of operations and net gain on the disposition of 12 properties classified as held for sale as of December 31, 2013. Properties sold or classified as held for sale after December 31, 2013 are not classified as discontinued operations unless the sale or classification as held for sale meets the new accounting requirements pursuant to Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, issued by the FASB in April 2014. We did not have any discontinued operations for the three and nine months ended September 30, 2015. Certain negligible amounts recorded as discontinued operations for the three months ended September 30, 2014 are not presented in the table below. The following table summarizes amounts recorded as discontinued operations for the nine months ended September 30, 2014 (amounts in thousands):

	For the  Nine Months Ended September 30, 2014
Revenues	$	969
Rental expense		(340)
Interest expense		(296)
Other expenses		(7)
Income from discontinued operations		326
Gain on disposition		29,679
Discontinued operations		30,005
Discontinued operations attributable to noncontrolling interests		(4,462)
Discontinued operations attributable to common stockholders	$	25,543

We did not record any capital expenditures related to our discontinued operations during the three or nine months ended September 30, 2014. We did not record any significant operating or investing noncash items related to our discontinued operations during the three months ended September 30, 2014. The following table summarizes significant operating and investing noncash items related to our discontinued operations for the nine months ended September 30, 2014 (amounts in thousands):

	For the  Nine Months Ended September 30, 2014
Noncash items:
Straight-line rent adjustments	$	(41)
Non-cash disposition of real property		80,361

Rental Revenue

The following table summarizes the adjustments to rental revenue related to the amortization of above-market lease assets, below-market lease liabilities, and straight-line rental adjustments for the three and nine months ended September 30, 2015 and 2014. In addition, the following table summarizes tenant recovery income received from tenants for real estate taxes, insurance and other property operating expenses and recognized as rental revenue (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Straight-line rent adjustments	$	(286)	$	1,150	$	(684)	$	2,939
Above-market lease assets		(1,307)		(1,673)		(3,923)		(5,110)
Below-market lease liabilities		1,437		1,797		4,539		5,190
Total (decrease) increase to rental revenue	$	(156)	$	1,274	$	(68)	$	3,019
Tenant recovery income(1)	$	9,293	$	7,862	$	28,031	$	23,745

__________________

(1) Tenant recovery income presented in this table excludes real estate taxes that were paid directly by our tenants that are subject to triple net lease contracts. Such payments totaled approximately $1.4 million and $3.1 million during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.5 million and $9.3 million during the nine months ended September 30, 2015 and 2014, respectively.

Concentration of Credit Risk

Concentration of credit risk with respect to our sources of revenue currently exists due to a small number of tenants whose rental payments to us make up a relatively high percentage of our rental revenue. The following is a summary of amounts related to the top five tenants based on annualized base rent, as of September 30, 2015 (dollar amounts and square feet in thousands):

Tenant	Locations	Industry	Annualized Base Rent (1)		% of Total Annualized Base Rent		Square Feet	% of Total Portfolio Square Feet
Charles Schwab & Co., Inc.	1	Securities, Commodities, Fin. Inv./Rel. Activities	$	23,223		13.2%	594	6.9%
Sybase	1	Publishing Information (except Internet)		17,971		10.2%	405	4.7%
Northrop Grumman	1	Professional, Scientific and Technical Services		15,901		9.1%	575	6.6%
Stop & Shop	16	Food and Beverage Stores		14,983		8.5%	911	10.5%
Novo Nordisk	1	Chemical Manufacturing		4,536		2.6%	167	1.9%
	20		$	76,614		43.6%	2,652	30.6%

__________________

(1) Annualized base rent represents the annualized monthly base rent of executed leases as of September 30, 2015.

Rental revenue from our lease with Charles Schwab & Co., Inc., as master tenant of one of our office properties, represented approximately $19.6 million, or 11.6%, of our total revenue for the nine months ended September 30, 2015. Our properties in Massachusetts, New Jersey, California, and Texas accounted for approximately 19%,  17%,  14%, and 11% respectively, of our total gross investment in real property portfolio as of September 30, 2015. A deterioration of general economic or other relevant conditions, changes in governmental laws and regulations, acts of nature, demographics or other factors in any of those states or the geographical region in which they are located could result in the loss of tenants, a decrease in the demand for our properties and a decrease in our revenues from those markets, which in turn may have a disproportionate and material adverse effect on our results of operations and financial condition.

Termination of Purchase Option

As discussed in Item 1A and Item 2 of Part I of our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 3, 2015, “Harborside,” an office property located in Northern New Jersey, was subject to a purchase option held by a third party with an exercise price that we estimated to be approximately $239.4 million and an exercise date in May 2016. On August 5, 2015, we paid the option holder approximately $12.0 million to terminate the option. Such payment is included within capital expenditures in real property in the accompanying consolidated statements of cash flows. As a result, the option is no longer outstanding.

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Debt Related Investments (Tables)

9 Months Ended

Sep. 30, 2015

Debt Related Investments [Abstract]

Details of Debt Related Income

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,				Weighted Average Yield as of
Investment Type	2015		2014		2015		2014		September 30, 2015 (1)
Mortgage notes (2)	$	666	$	1,058	$	3,808	$	3,469	5.8%
Mezzanine debt (3)		141		740		1,786		2,102	N/A
Total	$	807	$	1,798	$	5,594	$	5,571	5.8%

__________________

(1) Weighted average yield is calculated on an unlevered basis using the amount invested, current interest rates and accretion of premiums or discounts realized upon the initial investment for each investment type as of September 30, 2015. As of September 30, 2015, all of our debt related investments bear interest at fixed rates.

(2) Four and three of our debt related investments structured as mortgage notes were repaid in full during the nine months ended September 30, 2015 and 2014, respectively. During the three and nine months ended September 30, 2015 and 2014, amounts recorded include early repayment fees received and accelerated amortization of origination fees offset by accelerated amortization of deferred due diligence costs related to certain of these repayments.

(3) Our debt related investment structured as a mezzanine loan was repaid in full during the three months ended September 30, 2015. During the three and nine months ended September 30, 2015, amounts recorded were offset by accelerated amortization of deferred due diligence costs.

Recorded Investment in Debt Related Investments before Allowance for Loan Loss, and Related Allowance for Loan Loss

	Debt Related Investments Individually Evaluated for Impairment as of
	September 30, 2015		December 31, 2014
Debt related investments	$	27,775	$	97,951
Less: Allowance for loan losses		—		(3,000)
Total	$	27,775	$	94,951

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Segment Information

9 Months Ended

Sep. 30, 2015

Segment Information [Abstract]

Segment Information

11. SEGMENT INFORMATION

We have four reportable operating segments, which include our three real property operating sectors (office, industrial, and retail) and debt related investments. We organize and analyze the operations and results of each of these segments independently, due to inherently different considerations for each segment. Such considerations include, but are not limited to, the nature and characteristics of the investment, and investment strategies and objectives. For example, the physical characteristics of our buildings, the related operating characteristics, the geographic markets, and the type of tenants are inherently different for each of our segments. The following tables set forth revenue and the components of net operating income (“NOI”) of our segments for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	34,418	$	35,439	$	23,937	$	26,608
Industrial		1,358		5,825		885		5,220
Retail		17,078		15,529		13,155		12,161
Debt related investments		807		1,798		807		1,798
Total	$	53,661	$	58,591	$	38,784	$	45,787

	For the Nine Months Ended September 30,
	Revenues				NOI
	2015		2014		2015		2014
Real property (1)
Office	$	102,631	$	103,566	$	74,056	$	77,863
Industrial		7,147		17,674		5,656		15,622
Retail		53,530		45,693		40,184		35,501
Debt related investments		5,594		5,571		5,594		5,571
Total	$	168,902	$	172,504	$	125,490	$	134,557

__________________

(1) Excludes results of operations of real properties categorized as discontinued operations.

We consider NOI to be an appropriate supplemental financial performance measure because NOI reflects the specific operating performance of our real properties and debt related investments, and excludes certain items that are not considered to be controllable in connection with the management of each property, such as depreciation and amortization, general and administrative expenses, advisory fees, acquisition-related expenses, interest and other income, interest expense, loss on extinguishment of debt and financing commitments, gain on the sale of real property and noncontrolling interests. However, NOI should not be viewed as an alternative measure of our financial performance as a whole, since it excludes such items that could materially impact our results of operations. Further, our NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance.

The following table is a reconciliation of our NOI to our reported net income (loss) attributable to common stockholders for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Net operating income	$	38,784	$	45,787	$	125,490	$	134,557
Real estate depreciation and amortization expense		(20,851)		(21,918)		(61,404)		(66,481)
General and administrative expenses		(2,477)		(2,581)		(8,157)		(8,187)
Advisory fees, related party		(4,225)		(4,083)		(13,021)		(11,678)
Acquisition-related expenses		(476)		(372)		(1,259)		(962)
Impairment of real estate property		(6,500)		(9,500)		(8,124)		(9,500)
Interest and other income		704		424		1,500		688
Interest expense		(10,951)		(15,276)		(36,208)		(46,549)
Loss on extinguishment of debt and financing     commitments		—		—		(1,168)		(63)
Gain on sale of real property		4,567		—		133,234		6,462
Discontinued operations		—		5		—		30,005
Net loss (income) attributable to noncontrolling interests		1,297		475		(7,358)		(4,405)
Net (loss) income attributable to common     stockholders	$	(128)	$	(7,039)	$	123,525	$	23,887

The following table reflects our total assets by business segment as of September 30, 2015 and December 31, 2014 (amounts in thousands):

	As of
	September 30, 2015		December 31, 2014
Segment assets:
Net investments in real property
Office (1)	$	1,018,140	$	1,069,584
Industrial		61,685		207,655
Retail		701,526		652,187
Debt related investments, net		27,775		94,951
Total segment assets, net		1,809,126		2,024,377
Non-segment assets:
Cash and cash equivalents		15,186		14,461
Other non-segment assets (2)		66,508		87,368
Assets held for sale (3)		—		21,927
Total assets	$	1,890,820	$	2,148,133

__________________

(1) Excludes approximately $20.3 million of net investments in real property related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

(2) Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable.

(3) Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

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Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

We use the framework established in ASC Topic 820, Fair Value Measurement and Disclosures, to measure the fair value of our financial instruments as disclosed in the table below. The fair values estimated below are indicative of certain interest rate and other assumptions as of September 30, 2015 and December 31, 2014, and may not take into consideration the effects of subsequent interest rate or other assumption fluctuations, or changes in the values of underlying collateral. The fair values of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses approximate their carrying values because of the short-term nature of these instruments.

The carrying amounts and estimated fair values of our other financial instruments as of September 30, 2015 and December 31, 2014 were as follows (amounts in thousands):

	As of September 30, 2015				As of December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Investments in real estate securities	$	200	$	200	$	200	$	200
Fixed-rate debt related investments, net		27,775		28,905		69,889		71,770
Floating-rate debt related investments, net		—		—		25,062		25,157
Derivative instruments		—		—		543		543
Liabilities:
Fixed-rate mortgage notes	$	535,967	$	540,511	$	807,994	$	848,045
Floating-rate mortgage notes		7,980		7,986		8,250		8,249
Floating-rate other secured borrowings		—		—		37,023		37,023
Floating-rate unsecured borrowings		459,000		459,000		345,000		347,235
Derivative liabilities		6,939		6,939		907		907

The methodologies used and key assumptions made to estimate fair values of the financial instruments, other than derivatives disclosed in Note 6, described in the above table are as follows:

Debt Related Investments — The fair value of our performing debt related investments are estimated using a discounted cash flow methodology. This method discounts estimated future cash flows using rates management determines best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. Credit spreads and market interest rates used to determine the fair value of these instruments are based on unobservable Level 3 inputs which management has determined to be its best estimate of current market values.

Mortgage Notes and Other Borrowings — The fair value of our mortgage notes and other borrowings are estimated using a discounted cash flow analysis, based on our estimate of market interest rates. Credit spreads relating to the underlying instruments are based on unobservable Level 3 inputs, which we have determined to be our best estimate of current market spreads of similar instruments.

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Related Party Transactions (Summary of Fees and Other Amounts Earned by Advisor and Its Related Parties) (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Apr. 15, 2015	Dec. 31, 2014	Apr. 15, 2014
Related Party Transaction [Line Items]
Related party transaction expense		$ 6,755,000	$ 7,831,000	$ 27,563,000	$ 22,540,000
Common stock, shares issued	[1]	165,043,370		165,043,370			178,399,679
Class I
Related Party Transaction [Line Items]
Common stock, shares issued		22,740,156		22,740,156		153,000	13,027,931	123,000
Acquisition Fees | Class I
Related Party Transaction [Line Items]
Common stock, shares issued		276,000		276,000
Advisory Fees [Member]
Related Party Transaction [Line Items]
Related party transaction expense	[2]	$ 4,225,000	4,083,000	$ 13,021,000	11,678,000
Advisory Fees [Member] | Class I
Related Party Transaction [Line Items]
Related party transaction expense				786,000
Other Reimbursements Paid To Our Advisor [Member]
Related Party Transaction [Line Items]
Related party transaction expense	[3]	2,176,000	1,953,000	6,590,000	5,923,000
Other Reimbursements Paid To Our Dealer Manager [Member]
Related Party Transaction [Line Items]
Related party transaction expense		33,000	82,000	310,000	423,000
Advisory Fees Related to the Disposition Of Real Properties [Member]
Related Party Transaction [Line Items]
Related party transaction expense		201,000		4,779,000	1,973,000
Development Management Fees
Related Party Transaction [Line Items]
Related party transaction expense		18,000	3,000	52,000	107,000
Selling Commissions, Dealer Manager, and Distribution Fees [Member]
Related Party Transaction [Line Items]
Related party transaction expense		$ 102,000	62,000	271,000	238,000
Primary Dealer Fees [Member]
Related Party Transaction [Line Items]
Related party transaction expense	[4]		$ 1,648,000	2,540,000	2,198,000
Reallowed amount to third-party brokers				$ 2,300,000	$ 2,000,000
Restricted Stock Units (RSUs) [Member]
Related Party Transaction [Line Items]
Common stock, shares issued		153,000		153,000
Restricted Stock Units (RSUs) [Member] | Class I
Related Party Transaction [Line Items]
Common stock, shares issued		76,000		76,000
Restricted Stock Units (RSUs) [Member] | Advisory Fees [Member]
Related Party Transaction [Line Items]
Related party transaction expense		$ 283,000

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

[2] Amounts reported for the three months ended September 30, 2015 include approximately $283,000 in consideration of the issuance of approximately 153,000 shares of our Class I common stock to the Advisor. Such shares were issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash. Amounts reported for the nine months ended September 30, 2015 include approximately $786,000 in consideration of the issuance of approximately 276,000 shares of our Class I common stock to the Advisor. Such shares include (i) approximately 153,000 shares issued on April 15, 2015 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014 and February 25, 2015, and (ii) 123,000 shares issued on April 15, 2014 upon the settlement of restricted stock units issued to our Advisor on April 7, 2014. Such Class I shares are recognized as advisory fees expense over a one year period as an offset to amounts otherwise payable in cash.

[3] Other reimbursements paid to our Advisor primarily comprise salary, bonus, and overhead reimbursements.

[4] Amounts reported represent primary dealer fees we paid to the Dealer Manager based on the gross proceeds raised by participating broker-dealers pursuant to certain selected dealer agreements. Of the primary dealer fee earned during the nine months ended September 30, 2015, the Dealer Manager reallowed approximately $2.3 million to participating third-party broker-dealers and retained approximately $254,000. Of the primary dealer fee earned during the nine months ended September 30, 2014, the Dealer Manager reallowed approximately $2.0 million to participating third-party broker-dealers and retained approximately $220,000.

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Debt Obligations

9 Months Ended

Sep. 30, 2015

Debt Obligations [Abstract]

Debt Obligations

5. DEBT OBLIGATIONS

The following table describes our borrowings as of September 30, 2015 and December 31, 2014 (dollar amounts in thousands):

	Weighted Average Stated Interest Rate as of		Outstanding Balance as of (1)				Gross Investment Amount Securing Borrowings as of (2)
	September 30, 2015	December 31, 2014	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Fixed-rate mortgages	5.9%	5.8%	$	535,967	$	807,994	$	1,026,446	$	1,625,637
Floating-rate mortgage (3)	3.2%	3.2%		7,980		8,250		16,459		16,118
Total mortgage notes	5.8%	5.8%		543,947		816,244		1,042,905		1,641,755
Repurchase facility (4)	N/A	2.8%		—		37,023		—		51,156
Total secured     borrowings	5.8%	5.6%		543,947		853,267		1,042,905		1,692,911
Line of credit (5)	2.0%	2.6%		109,000		75,000		N/A		N/A
Term loans (6)	2.6%	2.7%		350,000		270,000		N/A		N/A
Total unsecured     borrowings	2.4%	2.7%		459,000		345,000		N/A		N/A
Total borrowings	4.3%	4.8%	$	1,002,947	$	1,198,267		N/A		N/A

__________________

(1) Amounts are presented on a GAAP basis and are net of (i) unamortized premiums to the face value of our outstanding fixed-rate mortgages of $1.9 million and $2.0 million as of September 30, 2015 and December 31, 2014, respectively, and (ii) GAAP principal amortization related to troubled debt restructurings of $2.9 million and $2.3 million as of September 30, 2015 and December 31, 2014, respectively.

(2) “Gross Investment Amount” as used here and throughout this document represents the allocated gross basis of real property and debt related investments, after certain adjustments. Gross Investment Amount for real property (i) includes the effect of intangible lease liabilities, (ii) excludes accumulated depreciation and amortization, and (iii) includes the impact of impairments. Amounts reported for debt related investments represent our net accounting basis of the debt related investments, which includes (i) unpaid principal balances, (ii) unamortized discounts, premiums, and deferred charges, and (iii) allowances for loan loss.

(3) As of September 30, 2015 and December 31, 2014, our floating rate mortgage note was subject to an interest rate spread of 3.00% over one-month LIBOR.

(4) As of December 31, 2014, borrowings under our repurchase facility were subject to interest at a floating rate of 2.25% over one-month LIBOR. However, we had effectively fixed the interest rate of the borrowings using interest rate swaps at 2.84% for the term of the borrowings.

(5) As of September 30, 2015 and December 31, 2014, borrowings under our line of credit were subject to interest at a floating rate of 1.40% and 1.75% over one-month LIBOR, respectively. However, as of September 30, 2015, we had effectively fixed the interest rate of approximately $33.7 million of the total of $109.0 million in borrowings using interest rate swaps at 2.84%, resulting in a weighted average interest rate on the total line of credit of 1.99%. As of December 31, 2014, we had effectively fixed the interest rate of approximately $30.0 million of the total of $75.0 million in borrowings using interest rate swaps at 3.60%, resulting in a weighted average interest rate on the total line of credit of 2.56%.

(6) As of September 30, 2015 and December 31, 2014, borrowings under our term loans were subject to interest at weighted average floating rates of 1.52% and 1.70%, respectively, over one-month LIBOR. However, we had effectively fixed the interest rates of the borrowings using interest rate swaps at 2.57% and 2.69% as of September 30, 2015 and December 31, 2014, respectively.

As of September 30, 2015, nine mortgage notes were interest-only and 12 mortgage notes were fully amortizing with outstanding principal balances of approximately $273.8 million and $271.1 million, respectively. None of our mortgage notes are recourse to us.

Assumption and Defeasance of Mortgage Note

As discussed in Note 3, we completed the sale of the Portfolio on March 11, 2015. Upon the disposition of the Portfolio, the buyer assumed approximately $128.0 million of a mortgage note borrowing, which is scheduled to mature in July 2020 and bears interest at 5.46%. In addition, we were released of our obligations on $44.8 million of the mortgage note borrowing that was not assumed by the buyer through a defeasance process. Accordingly, we incurred defeasance costs of approximately $8.6 million, which are included within gain on sale of real property in the accompanying statements of operations. Upon such defeasance, we derecognized the associated borrowing, which was assumed by an unrelated successor borrower.

Repayment of Mortgage Notes and Repurchase Facility

During the nine months ended September 30, 2015, we repaid six mortgage note borrowings in full during the respective free-prepayment periods prior to their scheduled maturities and repaid the borrowings under our repurchase facility in full using proceeds from our term loans and our revolving credit facility. The following table describes these repayments in more detail (dollar amounts in thousands):

Debt Obligation	Repayment Date	Balance Repaid		Stated Interest Rate (1)	Contractual Maturity Date	Collateral Type	Collateral Market
Austin-Mueller Health Center	July 6, 2015	$	16,946	7.50%	January 1, 2016	Office Property	Austin, TX
Preston Sherry Plaza	July 1, 2015		22,292	5.85%	September 1, 2015	Office Property	Dallas, TX
Campus Road	April 10, 2015		33,501	4.75%	July 10, 2015	Office Property	Princeton, NJ
Mansfield	April 1, 2015		8,307	6.03%	October 1, 2015	Retail Property	Greater Boston
Orleans	January 2, 2015		13,818	6.02%	July 1, 2015	Retail Property	Greater Boston
Whitman	January 2, 2015		7,316	6.02%	July 1, 2015	Retail Property	Greater Boston
Total/weighted average     mortgage notes			102,180	5.81%
Repurchase facility	May 29, 2015		37,023	2.84%	May 29, 2015	Debt Related Investments	Various
Total/weighted average     borrowings		$	139,203	5.02%

__________________

(1) We had effectively fixed the stated interest rates of certain of our borrowings by using interest rate swaps.

Recast of Credit Facility

On January 13, 2015, we amended and restated our $620 million senior unsecured term loan and revolving line of credit (the “Old Facility”) to provide for a $550 million senior unsecured term loan and revolving line of credit (the “Amended Facility”) with a syndicate of 14 lenders led by Bank of America, N.A., as Administrative Agent. The Amended Facility provides us with the ability from time to time to increase the size of the Amended Facility up to a total of $900 million less the amount of any prepayments under the term loan component of the Amended Facility, subject to receipt of lender commitments and other conditions. Because many members of the lending group participated as lenders in the Old Facility, the credit agreement for the Amended Facility is an amended and restated form of the credit agreement for the Old Facility.

The $550 million Amended Facility consists of a $400 million revolving credit facility (the “Revolving Credit Facility”) and a $150 million term loan (the “$150 Million Term Loan”). The Revolving Credit Facility contains a sublimit of $50 million for letters of credit and a sublimit of $50 million for swing line loans. The primary interest rate for the Revolving Credit Facility is based on LIBOR, plus a margin ranging from 1.40% to 2.30%, depending on our consolidated leverage ratio. The maturity date of the Revolving Credit Facility is January 31, 2019 and contains one12-month extension option that we may exercise upon (i) payment of an extension fee equal to 0.15% of the sum of the amount outstanding under the Revolving Credit Facility and the unused portion of the Revolving Credit Facility at the time of the extension, and (ii) compliance with the other conditions set forth in the credit agreement. The primary interest rate within the $150 Million Term Loan is based on LIBOR, plus a margin ranging from 1.35% to 2.20%, depending on our consolidated leverage ratio. The maturity date of the $150 Million Term Loan is January 31, 2018 and contains two12-month extension options that we may exercise upon (i) payment of an extension fee equal to 0.125% of the sum of the amount outstanding under the $150 Million Term Loan at the time of each extension, and (ii) compliance with the other conditions set forth in the credit agreement.

Borrowings under the Amended Facility are available for general business purposes including, but not limited to, refinancing of existing indebtedness and financing the acquisition of permitted investments, including commercial properties. Upon entering into the Amended Facility on January 13, 2015, we borrowed $280 million on the Revolving Credit Facility and $100 million on the $150 Million Term Loan. We primarily used the proceeds from the Amended Facility to repay $380 million of outstanding borrowings under the Old Facility.

We accounted for the amendment and restatement of the Old Facility as a modification of debt, and recognized approximately $896,000 within loss on extinguishment of debt and financing commitments during the nine months ended September 30, 2015, primarily resulting from the write-off of a portion of the deferred financing costs incurred in connection with the issuance of the Old Facility.

Term Loan Credit Agreement

On February 27, 2015, we entered into a $200 million seven-year term loan credit agreement (the “$200 Million Term Loan”) with a syndicate of six lenders led by Wells Fargo Bank, National Association as Administrative Agent and Regions Bank as Syndication Agent. The primary interest rate within the $200 Million Term Loan is based on LIBOR, plus a margin ranging from 1.65% to 2.55%, depending on our consolidated leverage ratio. The maturity date of the $200 Million Term Loan is February 27, 2022 with no extension options.

Borrowings under the $200 Million Term Loan are available for general business purposes including, but not limited to financing the acquisition of permitted investments, including commercial properties.

As of September 30, 2015, we had outstanding borrowings of $109.0 million and $150.0 million under the Revolving Credit Facility and $150 Million Term Loan components of our Amended Facility, respectively. As of September 30, 2015, we had outstanding borrowings of $200.0 million under the $200 Million Term Loan. As of September 30, 2015, the unused portion of our Revolving Credit Facility was approximately $288.8 million, all of which was available to us. As of December 31, 2014, we had outstanding borrowings of $270.0 million and $75.0 million under the term loan and revolving credit facility components of the Old Facility, respectively, and $189.4 million was available for us to borrow due to covenant constraints under the revolving credit facility component of the Old Facility.

The following table reflects our contractual debt maturities as of September 30, 2015, specifically our obligations under our mortgage notes and unsecured borrowings (dollar amounts in thousands):

	As of September 30, 2015
	Mortgage Notes			Unsecured Borrowings			Total
Year Ending December 31,	Number of Borrowings Maturing	Outstanding Principal Balance		Number of Borrowings Maturing	Outstanding Principal Balance (1)		Outstanding Principal Balance (2)
2015	—	$	2,823	—	$	—	$	2,823
2016	11		309,913	—		—		309,913
2017	6		206,659	—		—		206,659
2018	—		1,761	1		150,000		151,761
2019	—		1,868	1		109,000		110,868
2020	—		1,982	—		—		1,982
2021	1		10,825	—		—		10,825
2022	1		1,663	1		200,000		201,663
2023	—		978	—		—		978
2024	—		1,034	—		—		1,034
Thereafter	2		5,397	—		—		5,397
Total	21	$	544,903	3	$	459,000	$	1,003,903

__________________

(1) Unsecured borrowings presented include (i) borrowings under the $150 Million Term Loan of $150.0 million, which are scheduled to mature in 2018, subject to two one-year extension options, (ii) borrowings under the Revolving Credit Facility of $109.0 million, which are scheduled to mature in 2019, subject to a one-year extension option, and (iii) borrowings under the $200 Million Term Loan of $200.0 million, which are scheduled to mature in 2022 with no extension options.

(2) Outstanding balance represents expected cash outflows for contractual amortization and scheduled balloon payment maturities and does not include the GAAP principal amortization of our restructured mortgage note of approximately $2.9 million that does not reduce the contractual amount due of the related mortgage note as of September 30, 2015, partially offset by the mark-to-market premium on assumed debt of $1.9 million as of September 30, 2015.

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Derivatives And Hedging Activities

9 Months Ended

Sep. 30, 2015

Derivatives And Hedging Activities [Abstract]

Derivatives And Hedging Activities

6. DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

We maintain risk management control systems to monitor interest rate risk attributable to both our outstanding and forecasted debt obligations. We generally seek to limit the impact of interest rate changes on earnings and cash flows by selectively utilizing derivative instruments to hedge exposures to changes in interest rates on our unsecured floating rate borrowings. While this hedging strategy is designed to minimize the impact on our net income (loss) and cash provided by operating activities from changes in interest rates, the overall returns on our investments may be reduced. Our board of directors has established policies and procedures regarding our use of derivative instruments for hedging or other purposes to achieve these risk management objectives.

Cash Flow Hedges of Interest Rate Risk

Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from counterparties in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amounts. We have entered into and plan to enter into certain interest rate derivatives with the goal of mitigating our exposure to adverse fluctuations in the interest payments on our one-month LIBOR-indexed debt. Certain of our floating rate borrowings are not hedged and therefore, to an extent, we have ongoing exposure to interest rate movements.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges under ASC Topic 815 is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the next 12 months, we estimate that approximately $2.6 million will be reclassified as an increase to interest expense related to active effective hedges of existing floating-rate debt, and we estimate that approximately $1.9 million will be reclassified as an increase to interest expense related to effective forward started interest rate swaps where the hedging instrument has been terminated. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The table below presents a reconciliation of the beginning and ending balances, between December 31, 2014 and September 30, 2015, of our accumulated other comprehensive loss (“OCI”), net of amounts attributable to noncontrolling interests, related to the effective portion of our cash flow hedges as presented on our financial statements, as well as amounts related to our available-for-sale securities (amounts in thousands):

		Gains and Losses on Cash Flow Hedges		Unrealized Losses on Available-For- Sale Securities		Accumulated Other Comprehensive Loss
Beginning balance as of December 31, 2014:		$	(9,069)	$	(1,051)	$	(10,120)
	Other comprehensive income:
	Amount of loss reclassified from OCI into interest expense     (effective portion) (net of tax benefit of $0)		3,538		—		3,538
	Change in fair value recognized in OCI     (effective portion) (net of tax benefit of $0)		(8,789)		—		(8,789)
	Net current-period other comprehensive income		(5,251)		—		(5,251)
	Attribution of and other adjustments to OCI     attributable to noncontrolling interests		384		2		386
Ending balance as of September 30, 2015:		$	(13,936)	$	(1,049)	$	(14,985)

Fair Values of Derivative Instruments

The table below presents the gross fair value of our derivative financial instruments as well as their classification on our accompanying balance sheets as of September 30, 2015 and December 31, 2014 (amounts in thousands):

		Fair Value of Asset Derivatives as of					Fair Value of Liability Derivatives as of
	Balance Sheet	September 30,		December 31,		Balance Sheet	September 30,		December 31,
	Location	2015		2014		Location	2015		2014
Derivatives designated as     hedging instruments     under ASC Topic 815
Interest rate contracts	Other assets, net (1)	$	—	$	543	Other liabilities (1)	$	(6,939)	$	(907)
Total derivatives		$	—	$	543		$	(6,939)	$	(907)

__________________

(1) Although our derivative contracts are subject to master netting arrangements which serve as credit mitigants to both us and our counterparties under certain situations, we do not net our derivative fair values or any existing rights or obligations to cash collateral on the consolidated balance sheet.

The majority of the inputs used to value our derivative instruments fall within Level 2 of the fair value hierarchy. However, the credit valuation adjustments associated with our derivative instruments utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of potential default by us and our counterparties. As of September 30, 2015, we had assessed the significance of the impact of the credit valuation adjustments and had determined that it was not significant to the overall valuation of our derivative instruments. As a result, we have determined that our derivative valuations are classified in Level 2 of the fair value hierarchy.

Designated Derivatives

As of September 30, 2015 and December 31, 2014, we had 12 and 11 outstanding interest rate swaps, respectively, that were designated as cash flow hedges of interest rate risk, with a total notional amount of $383.7 million and $339.2 million, respectively. In addition, as of September 30, 2015, we had (i) two interest rate swaps with a total notional amount of $100.0 million that will become effective in December 2016 and mature in January 2020 and (ii) two interest rate swaps with a total notional amount of $100.0 million that will become effective in December 2016 and mature in February 2022, all of which were designated as cash flow hedges of interest rate risk.

Non-Designated Derivatives

Derivatives not designated as hedges are not speculative and are used to hedge our exposure to interest rate movements and other identified risks but do not meet hedge accounting requirements. As of both September 30, 2015 and December 31, 2014, we did not have any outstanding derivatives that were not designated as hedges.

Effect of Derivative Instruments on the Statements of Comprehensive Income and Loss

The table below presents the effect of our derivative financial instruments on our accompanying financial statements for the three and nine months ended September 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended  September 30,
	2015		2014		2015		2014
Derivatives Designated as Hedging     Instruments
Derivative type		Interest rate contracts		Interest rate contracts		Interest rate contracts		Interest rate contracts
Amount of (loss) gain recognized in     OCI (effective portion)	$	(7,236)	$	421	$	(8,789)	$	(843)
Location of loss reclassified from     accumulated OCI into income     (effective portion)		Interest expense		Interest expense		Interest expense		Interest expense
Amount of loss reclassified from     accumulated OCI into income     (effective portion)	$	1,220	$	739	$	3,538	$	2,232
Location of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)		Interest and other income (expense)
Amount of (loss) gain recognized in     income (ineffective portion and amount     excluded from effectiveness testing)	$	(117)	$	9	$	(0)	$	—

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Stockholders' Equity

9 Months Ended

Sep. 30, 2015

Stockholders' Equity [Abstract]

Stockholders' Equity

8. STOCKHOLDERS’ EQUITY

Common Stock

On August 12, 2015, we completed a self-tender offer, pursuant to which we accepted for purchase approximately 17.2 million unclassified shares of common stock, which we refer to as “Class E” shares, at a purchase price of $7.25 per share for an aggregate cost of approximately $124.4 million. The following table describes the changes in each class of common shares during the nine months ended September 30, 2015 (shares and dollar amounts in thousands):

	Class E			Class A			Class W			Class I			Total
	Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)
Balances, December 31, 2014	163,068	$	1,670,408	1,187	$	8,518	1,117	$	7,808	13,028	$	90,320	178,400	$	1,777,054
Issuance of common stock:
Shares sold	—		—	262		1,970	306		2,253	9,159		66,738	9,727		70,961
Distribution reinvestment    plan	1,903		13,832	20		149	15		112	274		1,997	2,212		16,090
Stock-based compensation	—		—	—		—	—		—	618		972	618		972
Redemptions of    common stock	(25,534)		(186,135)	(21)		(155)	(20)		(148)	(339)		(2,462)	(25,914)		(188,900)
Balances, September 30, 2015	139,437	$	1,498,105	1,448	$	10,482	1,418	$	10,025	22,740	$	157,565	165,043	$	1,676,177

__________________

(1) Dollar amounts presented in this table represent the gross amount of proceeds from the sale of common shares, or the amount paid to stockholders to redeem common shares, and do not include other costs and expenses accounted for within additional paid-in capital, such as selling commissions, dealer manager and distribution fees, offering and organizational costs, and other costs associated with our distribution reinvestment plans and share redemption programs.

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Segment Information (Schedule of Total Assets by Business Segment) (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Segment assets:
Net investments in real property	[1]	$ 1,781,351	$ 1,929,426
Debt related investments, net		27,775	94,951
Non-segment assets:
Cash and cash equivalents		15,186	14,461	$ 27,814	$ 24,778
Other non-segment assets	[2]	66,508	87,368
Assets held for sale	[3]		21,927
Total Assets		1,890,820	2,148,133
Segment Reconciling Items [Member]
Non-segment assets:
Total Assets		1,809,126	2,024,377
Office
Segment assets:
Net investments in real property	[4]	1,018,140	1,069,584
Office | Held-for-sale [Member]
Segment assets:
Net investments in real property			20,300
Industrial
Segment assets:
Net investments in real property		61,685	207,655
Retail
Segment assets:
Net investments in real property		701,526	652,187
Debt Related Investments
Segment assets:
Debt related investments, net		$ 27,775	$ 94,951

[1] Includes approximately $76.3 million and $82.7 million, after accumulated depreciation and amortization, in consolidated real property variable interest entity investments as of September 30, 2015 and December 31, 2014, respectively.

[2] Other non-segment assets primarily consist of corporate assets including restricted cash and receivables, including straight-line rent receivable.

[3] Includes other assets and restricted cash related to properties classified as held for sale in the accompanying balance sheet as of December 31, 2014.

[4] Excludes approximately $20.3 million of net investments in real property related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

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Segment Information (Reconciliation of Net Operating Income to Reported Net Income (Loss)) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reconciliation of net operating income attributable to common shareholders
Net operating income		$ 38,784	$ 45,787	$ 125,490	$ 134,557
Real estate depreciation and amortization expense		(20,851)	(21,918)	(61,404)	(66,481)
General and administrative expenses	[1]	(2,477)	(2,581)	(8,157)	(8,187)
Advisory fees, related party		(4,225)	(4,083)	(13,021)	(11,678)
Acquisition-related expenses		(476)	(372)	(1,259)	(962)
Impairment of real estate property	[2]	(6,500)	(9,500)	(8,124)	(9,500)
Interest and other income		704	424	1,500	688
Interest expense		(10,951)	(15,276)	(36,208)	(46,549)
Loss on extinguishment of debt and financing commitments				(1,168)	(63)
Gain on sale of real property	[3]	4,567		133,234	6,462
Provision for loss on debt related investments				0
Discontinued operations	[4]		5		30,005
Net loss (income) attributable to noncontrolling interests		1,297	475	(7,358)	(4,405)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS		$ (128)	$ (7,039)	$ 123,525	$ 23,887

[1] Includes approximately $1.8 million and $1.6 million paid to our Advisor and its affiliates for reimbursable expenses during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.3 million and $4.8 million paid to our Advisor and its affiliates for reimbursable expenses during the nine months ended September 30, 2015 and 2014, respectively.

[2] Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

[3] Includes approximately $201,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended September 30, 2015, and approximately $4.6 million and $328,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015 and 2014, respectively.

[4] Includes approximately $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

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Investments In Real Property (Consolidated Investments in Real Property) (Details) $ in Thousands	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($) property		Dec. 31, 2013 property
Real Estate Properties [Line Items]
Investment in real property, Gross book value	$ 2,270,746	$ 2,472,926
Intangible lease liabilities, Gross book value	(87,156)	(124,838)
Real estate investments, Gross book value	2,183,590	2,348,088
Accumulated depreciation and amortization	(489,395)	(523,246)
Intangible lease liabilities, accumulated amortization	28,507	38,595
Accumulated depreciation/amortization	(460,888)	(484,651)
Investment in real property	1,781,351	1,949,680
Intangible lease liabilities, Net book value	(58,649)	(86,243)
Real estate investments, Net book value	1,722,702	1,863,437
Land		4,075
Building and improvements		19,337
Intangible lease assets		7,005
Accumulated depreciation		$ (10,163)
Number of properties classified as held for sale | property		1		12
Land
Real Estate Properties [Line Items]
Land	466,582	$ 501,612
Building and Building Improvements
Real Estate Properties [Line Items]
Building and Improvements	1,383,903	1,477,016
Accumulated depreciation and amortization	(193,467)	(204,165)
Real estate investments, Net book value	1,190,436	1,272,851
Intangible Lease Assets
Real Estate Properties [Line Items]
Intangible Lease Assets	420,261	494,298
Accumulated depreciation and amortization	(295,928)	(319,081)
Real estate investments, Net book value	124,333	175,217
Office
Real Estate Properties [Line Items]
Investment in real property, Gross book value	1,329,247	1,416,221	[1]
Intangible lease liabilities, Gross book value	(18,414)	(21,535)	[1]
Real estate investments, Net book value	1,310,833	1,394,686	[1]
Office | Land
Real Estate Properties [Line Items]
Land	204,700	238,505	[1]
Office | Building and Building Improvements
Real Estate Properties [Line Items]
Building and Improvements	815,933	818,659	[1]
Office | Intangible Lease Assets
Real Estate Properties [Line Items]
Intangible Lease Assets	308,614	359,057	[1]
Industrial
Real Estate Properties [Line Items]
Investment in real property, Gross book value	91,161	267,801
Intangible lease liabilities, Gross book value	(344)	(41,011)
Real estate investments, Net book value	90,817	226,790
Industrial | Land
Real Estate Properties [Line Items]
Land	9,572	25,502
Industrial | Building and Building Improvements
Real Estate Properties [Line Items]
Building and Improvements	65,153	193,878
Industrial | Intangible Lease Assets
Real Estate Properties [Line Items]
Intangible Lease Assets	16,436	48,421
Retail
Real Estate Properties [Line Items]
Investment in real property, Gross book value	850,338	788,904
Intangible lease liabilities, Gross book value	(68,398)	(62,292)
Real estate investments, Net book value	781,940	726,612
Retail | Land
Real Estate Properties [Line Items]
Land	252,310	237,605
Retail | Building and Building Improvements
Real Estate Properties [Line Items]
Building and Improvements	502,817	464,479
Retail | Intangible Lease Assets
Real Estate Properties [Line Items]
Intangible Lease Assets	$ 95,211	$ 86,820

[1] Includes $4.1 million in land, $19.3 million in building and improvements, and $7.0 million in intangible lease assets before accumulated depreciation of $10.2 million, related to an office property classified as held for sale in the accompanying balance sheet as of December 31, 2014.

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Derivatives And Hedging Activities (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2015 USD ($) security	Dec. 31, 2014 USD ($) security
Derivative [Line Items]
Estimated increase to interest expense related to active effective hedges of floating rate debt	$ 2.6
Designated Hedges
Derivative [Line Items]
Number of derivatives | security	12	11
Total notional amount	$ 383.7	$ 339.2
Undesignated hedges
Derivative [Line Items]
Number of derivatives | security	0	0
Interest Rate Swap Maturing January 2020 [Member] | Designated Hedges
Derivative [Line Items]
Number of derivatives | security	2
Total notional amount	$ 100.0
Interest Rate Swap Maturing February 2022 [Member] | Designated Hedges
Derivative [Line Items]
Number of derivatives | security	2
Total notional amount	$ 100.0
Interest Rate Swap
Derivative [Line Items]
Estimated increase to interest expense related to termination of hedging instrument	$ 1.9

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Summary of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Interim Financial Statements

Interim Financial Statements

The accompanying interim condensed consolidated financial statements (herein referred to as “financial statements,” “balance sheets,” “statements of operations,” “statements of comprehensive income and loss,” “statement of equity,” or “statements of cash flows”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, these financial statements do not include all the information and disclosure required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 3, 2015. There have been no significant changes to the Company’s significant accounting policies during the nine months endedSeptember 30, 2015 other than the updates described below.

Reclassifications

Reclassifications

Certain amounts included in the accompanying financial statements for 2014 have been reclassified to conform to the 2015 financial statements presentation with no effect on previously reported net income (loss) or equity. We reclassified approximately $157,000 and $496,000 in third-party payments related to efforts to acquire real properties that were not ultimately completed (“terminated acquisition costs”) incurred during the three and nine months ended September 30, 2014, respectively, from “general and administrative expenses” into “acquisition-related expenses”. We have also reclassified approximately $181,000 in terminated acquisition costs incurred during the six months ended June 30, 2015, from general and administrative expenses into acquisition related expenses.

Statements of operations amounts for properties disposed of or classified as held for sale as of December 31, 2013, have been reclassified to discontinued operations for all periods presented during 2014. Amounts in our segment disclosures in Note 11 reflect the reclassification of amounts related to properties that have been disposed of or classified as held for sale as of December 31, 2013.

New Accounting Pronouncements

New Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2015-16 (“ASU 2015-16”), which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The guidance eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, the guidance requires that an acquirer recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. We do not anticipate the adoption will have a significant impact on our financial statements.

The FASB issued Accounting Standards Update 2015-15 (“ASU 2015-15”) and Accounting Standards Update 2015-03 (“ASU 2015-03”) in August 2015 and April 2015, respectively, which simplify the presentation of debt issuance costs and clarify the guidance for presenting and measuring debt issuance costs related to line-of-credit arrangements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-15 permits an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The recognition and measurement guidance for debt issuance costs is not affected by the guidance. Both ASU 2015-03 and ASU 2015-15 are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015 and will require retrospective application. Early adoption is permitted for financial statements that have not been previously issued. We do not anticipate the adoption will have a significant impact on our financial statements.

In June 2015, the FASB issued Accounting Standards Update 2015-10 (“ASU 2015-10”), which (i) made technical corrections and improvements to ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”), which became effective upon the issuance of ASU 2015-10, and (ii) made technical corrections and improvements to ASC Topic 820, Fair Value Measurement and Disclosures (“ASC Topic 820”), which is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015, with early adoption permitted, including adoption in an interim period. We do not anticipate the adoption will have a significant impact on our financial statements.

In May 2014, the FASB issued Accounting Standards Update 2014-09 (“ASU 2014-09”), which provides new guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity 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. Additionally, this guidance expands related disclosure requirements. The new guidance specifically excludes revenue associated with lease contracts. In June 2015, the FASB agreed to defer the effective date of this guidance for a year from the original effective date outlined in ASU 2014-09, and as a result, the guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017 and will require full or modified retrospective application. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. We do not anticipate the adoption will have a significant impact on our financial statements.

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Instruments [Abstract]

Schedule of Carrying Amount and Fair Values of Other Financial Instruments

	As of September 30, 2015				As of December 31, 2014
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Investments in real estate securities	$	200	$	200	$	200	$	200
Fixed-rate debt related investments, net		27,775		28,905		69,889		71,770
Floating-rate debt related investments, net		—		—		25,062		25,157
Derivative instruments		—		—		543		543
Liabilities:
Fixed-rate mortgage notes	$	535,967	$	540,511	$	807,994	$	848,045
Floating-rate mortgage notes		7,980		7,986		8,250		8,249
Floating-rate other secured borrowings		—		—		37,023		37,023
Floating-rate unsecured borrowings		459,000		459,000		345,000		347,235
Derivative liabilities		6,939		6,939		907		907

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Debt Obligations (Schedule Of Repayment Of Mortgage Notes And Repurchase Facility) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Debt Instrument [Line Items]
Debt and Credit Facility Repayment, Total	$ 139,203
Stated Interest Rate, Weighted Average	5.02%	[1]
Repurchase Facility
Debt Instrument [Line Items]
Repayment Date	May 29, 2015
Balance Repaid, Repurchase facility	$ 37,023
Stated Interest Rate	2.84%	[1]
Contractual Maturity Date	May 29, 2015
Mortgages [Member]
Debt Instrument [Line Items]
Balance Repaid, Mortgage Notes	$ 102,180
Stated Interest Rate, Weighted Average	5.81%	[1]
Mortgages [Member] | Austin-Mueller Health Center [Member]
Debt Instrument [Line Items]
Repayment Date	Jul. 06, 2015
Balance Repaid, Mortgage Notes	$ 16,946
Stated Interest Rate	7.50%	[1]
Contractual Maturity Date	Jan. 01, 2016
Mortgages [Member] | Preston Sherry Plaza [Member]
Debt Instrument [Line Items]
Repayment Date	Jul. 01, 2015
Balance Repaid, Mortgage Notes	$ 22,292
Stated Interest Rate	5.85%	[1]
Contractual Maturity Date	Sep. 01, 2015
Mortgages [Member] | Campus Road [Member]
Debt Instrument [Line Items]
Repayment Date	Apr. 10, 2015
Balance Repaid, Mortgage Notes	$ 33,501
Stated Interest Rate	4.75%	[1]
Contractual Maturity Date	Jul. 10, 2015
Mortgages [Member] | Mansfield [Member]
Debt Instrument [Line Items]
Repayment Date	Apr. 01, 2015
Balance Repaid, Mortgage Notes	$ 8,307
Stated Interest Rate	6.03%	[1]
Contractual Maturity Date	Oct. 01, 2015
Mortgages [Member] | Orleans [Member]
Debt Instrument [Line Items]
Repayment Date	Jan. 02, 2015
Balance Repaid, Mortgage Notes	$ 13,818
Stated Interest Rate	6.02%	[1]
Contractual Maturity Date	Jul. 01, 2015
Mortgages [Member] | Whitman [Member]
Debt Instrument [Line Items]
Repayment Date	Jan. 02, 2015
Balance Repaid, Mortgage Notes	$ 7,316
Stated Interest Rate	6.02%	[1]
Contractual Maturity Date	Jul. 01, 2015

[1] We had effectively fixed the stated interest rates of certain of our borrowings by using interest rate swaps.

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Investments in Real Property (Summary of Capital Expenditures, Significant Operating and Investing Noncash Items Related to Discontinued Operations) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Real Estate Properties [Line Items]
Straight-line rent adjustments		$ (286)	$ 1,150	$ (684)	$ 2,939
Non-cash disposition of real property	[1]			$ 128,008	94,011
Discontinued Operations
Real Estate Properties [Line Items]
Straight-line rent adjustments					(41)
Non-cash disposition of real property					$ 80,361

[1] * Represents the amount of sales proceeds and debt repayments from the disposition of real property or the repayment of borrowings that we did not receive or pay in cash, primarily due to the repayment or assumption of related borrowings by the purchaser or borrower at closing.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
General and administrative expenses	[1]	$ 2,477,000	$ 2,581,000	$ 8,157,000	$ 8,187,000
Impairment of real estate property	[2]	6,500,000	9,500,000	8,124,000	9,500,000
Gain on sale of real property	[3]	4,567,000		133,234,000	6,462,000
Discontinued operations	[4]		5,000		30,005,000
Affiliated Entity [Member]
General and administrative expenses		1,800,000	$ 1,600,000	5,300,000	4,800,000
Advisory Fees Related to the Disposition Of Real Properties [Member]
Impairment of real estate property				125,000
Gain on sale of real property		$ 201,000		$ 4,600,000	328,000
Discontinued operations					$ 1,600,000

[1] Includes approximately $1.8 million and $1.6 million paid to our Advisor and its affiliates for reimbursable expenses during the three months ended September 30, 2015 and 2014, respectively, and approximately $5.3 million and $4.8 million paid to our Advisor and its affiliates for reimbursable expenses during the nine months ended September 30, 2015 and 2014, respectively.

[2] Includes approximately $125,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015.

[3] Includes approximately $201,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the three months ended September 30, 2015, and approximately $4.6 million and $328,000 paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2015 and 2014, respectively.

[4] Includes approximately $1.6 million paid to our Advisor for advisory fees associated with the disposition of real properties during the nine months ended September 30, 2014.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements

The accompanying interim condensed consolidated financial statements (herein referred to as “financial statements,” “balance sheets,” “statements of operations,” “statements of comprehensive income and loss,” “statement of equity,” or “statements of cash flows”) have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the Securities and Exchange Commission (the “Commission”) instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial statements. Accordingly, these financial statements do not include all the information and disclosure required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited financial statements and notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Commission on March 3, 2015. There have been no significant changes to the Company’s significant accounting policies during the nine months endedSeptember 30, 2015 other than the updates described below.

Reclassifications

Certain amounts included in the accompanying financial statements for 2014 have been reclassified to conform to the 2015 financial statements presentation with no effect on previously reported net income (loss) or equity. We reclassified approximately $157,000 and $496,000 in third-party payments related to efforts to acquire real properties that were not ultimately completed (“terminated acquisition costs”) incurred during the three and nine months ended September 30, 2014, respectively, from “general and administrative expenses” into “acquisition-related expenses”. We have also reclassified approximately $181,000 in terminated acquisition costs incurred during the six months ended June 30, 2015, from general and administrative expenses into acquisition related expenses.

Statements of operations amounts for properties disposed of or classified as held for sale as of December 31, 2013, have been reclassified to discontinued operations for all periods presented during 2014. Amounts in our segment disclosures in Note 11 reflect the reclassification of amounts related to properties that have been disposed of or classified as held for sale as of December 31, 2013.

New Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update 2015-16 (“ASU 2015-16”), which simplifies the accounting for adjustments made to provisional amounts recognized in a business combination. The guidance eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, the guidance requires that an acquirer recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015. The guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. We do not anticipate the adoption will have a significant impact on our financial statements.

The FASB issued Accounting Standards Update 2015-15 (“ASU 2015-15”) and Accounting Standards Update 2015-03 (“ASU 2015-03”) in August 2015 and April 2015, respectively, which simplify the presentation of debt issuance costs and clarify the guidance for presenting and measuring debt issuance costs related to line-of-credit arrangements. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-15 permits an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The recognition and measurement guidance for debt issuance costs is not affected by the guidance. Both ASU 2015-03 and ASU 2015-15 are effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015 and will require retrospective application. Early adoption is permitted for financial statements that have not been previously issued. We do not anticipate the adoption will have a significant impact on our financial statements.

In June 2015, the FASB issued Accounting Standards Update 2015-10 (“ASU 2015-10”), which (i) made technical corrections and improvements to ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”), which became effective upon the issuance of ASU 2015-10, and (ii) made technical corrections and improvements to ASC Topic 820, Fair Value Measurement and Disclosures (“ASC Topic 820”), which is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2015, with early adoption permitted, including adoption in an interim period. We do not anticipate the adoption will have a significant impact on our financial statements.

In May 2014, the FASB issued Accounting Standards Update 2014-09 (“ASU 2014-09”), which provides new guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires an entity 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. Additionally, this guidance expands related disclosure requirements. The new guidance specifically excludes revenue associated with lease contracts. In June 2015, the FASB agreed to defer the effective date of this guidance for a year from the original effective date outlined in ASU 2014-09, and as a result, the guidance will be effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017 and will require full or modified retrospective application. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016. We do not anticipate the adoption will have a significant impact on our financial statements.

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Related Party Transactions (Narrative) (Details)			3 Months Ended		9 Months Ended
		Sep. 16, 2015 USD ($)	Sep. 30, 2015 USD ($) $ / shares shares	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) $ / shares employee shares	Sep. 30, 2014 USD ($)	Apr. 15, 2015 shares	Dec. 31, 2014 USD ($) shares	Apr. 15, 2014 shares
Related Party Transaction [Line Items]
Number of advisor employees serving as directors and officers | employee					2
Total gross proceeds raised from sale of class I shares					$ 68,851,000	$ 66,041,000
Amount owed to Advisor			$ 2,400,000		2,400,000			$ 1,900,000
Related party transaction expense			$ 6,755,000	$ 7,831,000	$ 27,563,000	22,540,000
Common Stock Shares Issued | shares	[1]		165,043,370		165,043,370			178,399,679
Advisor agreement termination, notification period					30 days
Advisor agreement termination, transaction close period					60 days
Restricted Stock Units (RSUs) [Member]
Related Party Transaction [Line Items]
Awards granted, grant date NAV | $ / shares			$ 7.06		$ 7.06
Offset period					12 months
Common Stock Shares Issued | shares			153,000		153,000
Class I
Related Party Transaction [Line Items]
Common Stock Shares Issued | shares			22,740,156		22,740,156		153,000	13,027,931	123,000
Class I | Restricted Stock Units (RSUs) [Member]
Related Party Transaction [Line Items]
Restricted stock units granted to Advisor | shares					441,000
Awards granted, grant date NAV | $ / shares			$ 7.06		$ 7.06
Common Stock Shares Issued | shares			76,000		76,000
Follow-On Offering [Member]
Related Party Transaction [Line Items]
Class A and Class W Dealer Manager fee		0.60%
Class I Dealer Manager fee		0.10%
Class A distribution fee		0.50%
Nav Offering Maximum Share Value		$ 1,000,000,000
Nav Offering Maximum Share Value Drip		250,000,000
Nav Offering Maximum Share Value Primary		$ 750,000,000
Dealer management fee daily acrual, percentage		0.274%
Primary Dealer Fees [Member]
Related Party Transaction [Line Items]
Related party transaction expense	[2]			$ 1,648,000	$ 2,540,000	2,198,000
Primary Dealer Fees Retained by Dealer Manager [Member]
Related Party Transaction [Line Items]
Related party transaction expense					$ 254,000	$ 220,000
Maximum | Follow-On Offering [Member]
Related Party Transaction [Line Items]
Class A Dealer Manager selling commission		3.00%

[1] Includes 139,437,007 shares of Class E common stock, 1,447,984 shares of Class A common stock, 1,418,223 shares of Class W common stock, and 22,740,156 shares of Class I common stock issued and outstanding as of September 30, 2015, and 163,067,835 shares of Class E common stock, 1,187,215 shares of Class A common stock, 1,116,698 shares of Class W common stock, and 13,027,931 shares of Class I common stock issued and outstanding as of December 31, 2014.

[2] Amounts reported represent primary dealer fees we paid to the Dealer Manager based on the gross proceeds raised by participating broker-dealers pursuant to certain selected dealer agreements. Of the primary dealer fee earned during the nine months ended September 30, 2015, the Dealer Manager reallowed approximately $2.3 million to participating third-party broker-dealers and retained approximately $254,000. Of the primary dealer fee earned during the nine months ended September 30, 2014, the Dealer Manager reallowed approximately $2.0 million to participating third-party broker-dealers and retained approximately $220,000.

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Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2015

Stockholders' Equity [Abstract]

Information of Share Transactions

	Class E			Class A			Class W			Class I			Total
	Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)		Shares	Amount (1)
Balances, December 31, 2014	163,068	$	1,670,408	1,187	$	8,518	1,117	$	7,808	13,028	$	90,320	178,400	$	1,777,054
Issuance of common stock:
Shares sold	—		—	262		1,970	306		2,253	9,159		66,738	9,727		70,961
Distribution reinvestment    plan	1,903		13,832	20		149	15		112	274		1,997	2,212		16,090
Stock-based compensation	—		—	—		—	—		—	618		972	618		972
Redemptions of    common stock	(25,534)		(186,135)	(21)		(155)	(20)		(148)	(339)		(2,462)	(25,914)		(188,900)
Balances, September 30, 2015	139,437	$	1,498,105	1,448	$	10,482	1,418	$	10,025	22,740	$	157,565	165,043	$	1,676,177

__________________

(1) Dollar amounts presented in this table represent the gross amount of proceeds from the sale of common shares, or the amount paid to stockholders to redeem common shares, and do not include other costs and expenses accounted for within additional paid-in capital, such as selling commissions, dealer manager and distribution fees, offering and organizational costs, and other costs associated with our distribution reinvestment plans and share redemption programs.

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Investments in Real Property (Summary of Disposed Properties) (Details) ft² in Thousands, $ in Thousands		9 Months Ended
	Mar. 11, 2015 USD ($) ft²	Sep. 30, 2015 USD ($) ft² property
Significant Acquisitions and Disposals [Line Items]
Square feet | ft²		3,060
Percent Leased		95.00%
Contract Sales Price	$ 398,600	$ 477,861
Gain on Sale		$ 133,234
Rentable square feet | ft²	2,700	2,652
Office and Industrial Portfolio; Various Markets [Member]
Significant Acquisitions and Disposals [Line Items]
DPF Ownership		100.00%
Square feet | ft²		2,669
Percent Leased		100.00%
Disposition Date		Mar. 11, 2015
Contract Sales Price		$ 398,635
Gain on Sale		$ 105,542
Industrial Portfolio Properties; Various Markets [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property		6
Rentable square feet | ft²		1,600
Office Portfolio Properties; Various Markets [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property		6
Rentable square feet | ft²		1,100
Office Property, Los Angeles, CA Market [Member]
Significant Acquisitions and Disposals [Line Items]
DPF Ownership		100.00%
Square feet | ft²		111
Percent Leased		0.00%
Disposition Date		Jul. 20, 2015
Contract Sales Price		$ 12,549
Gain on Sale		$ 2,866
Land Parcel Property, Denver, CO Market [Member]
Significant Acquisitions and Disposals [Line Items]
DPF Ownership		100.00%
Disposition Date		Aug. 12, 2015
Contract Sales Price		$ 7,577
Gain on Sale		$ 1,701
Office Property; Dallas, TX Market [Member]
Significant Acquisitions and Disposals [Line Items]
DPF Ownership		100.00%
Square feet | ft²		177
Percent Leased		88.00%
Disposition Date		Jan. 16, 2015
Contract Sales Price		$ 46,600
Gain on Sale		$ 23,125
Retail Property; Pittsburgh, PA Market [Member]
Significant Acquisitions and Disposals [Line Items]
DPF Ownership		100.00%
Square feet | ft²		103
Percent Leased		93.00%
Disposition Date		May 05, 2015
Contract Sales Price		$ 12,500
California | Office and Industrial Portfolio; Various Markets [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property		3
California | Office and Industrial Portfolio, Los Angeles Market [Member]
Significant Acquisitions and Disposals [Line Items]
Number of Properties | property		1
Number of buildings on property | property		2

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Subsequent Events

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

12. SUBSEQUENT EVENTS

We have evaluated subsequent events for the period from September 30, 2015, the date of these financial statements, through the date these financial statements are issued, and determined that there have been no significant subsequent events. For information regarding acquisitions, dispositions, and financing transactions that occurred subsequent to September 30, 2015, see “Subsequent Events” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in this Quarterly Report on Form 10-Q.