10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)
x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2014
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Commission file number 000-54939

COLE CREDIT PROPERTY TRUST IV, INC.

(Exact name of registrant as specified in its charter)

Maryland	27-3148022
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
2325 East Camelback Road, Suite 1100 Phoenix, Arizona 85016 (Address of principal executive offices; zip code)	(602) 778-8700 (Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on Which Registered
None	None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No x

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 x No o

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 x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer x Smaller reporting company o

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

While there is no established market for the registrant’s shares of common stock, the registrant’s shares of common stock, the registrant has made an initial public offering of its shares of common stock pursuant to a Registration Statement on Form S-11. The registrant ceased offering shares of its common stock in its initial public offering on April 4, 2014. The last price paid to acquire shares of the registrant’s common stock in the initial public offering was $10.00 per share, with discounts available for certain categories of purchasers. As of June 30, 2014, the last business day of the registrant’s most recently completed second fiscal quarter, there were approximately 299.5 million shares of common stock held by non-affiliates as of June 30, 2014, for an aggregate market value of $3.0 billion, assuming a market value as of that date of $10.00 per share.

The number of shares of common stock outstanding as of March 25, 2015 was approximately 307.0 million.

Documents Incorporated by Reference:

The Registrant incorporates by reference portions of the Cole Credit Property Trust IV, Inc. Definitive Proxy Statement for the 2015 Annual Meeting of Stockholders (into Items 10, 11, 12, 13 and 14 of Part III).

TABLE OF CONTENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		2
PART I
ITEM 1.	BUSINESS	3
ITEM 1A.	RISK FACTORS	16
ITEM 1B.	UNRESOLVED STAFF COMMENTS	43
ITEM 2.	PROPERTIES	43
ITEM 3.	LEGAL PROCEEDINGS	47
ITEM 4.	MINE SAFETY DISCLOSURES	47
PART II
ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	48
ITEM 6.	SELECTED FINANCIAL DATA	52
ITEM 7.	MANAGEMENT’S DISCUSSION AND ANLYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	53
ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	65
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	65
ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	65
ITEM 9A.	CONTROLS AND PROCEDURES	65
ITEM 9B.	OTHER INFORMATION	66
PART III
ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	67
ITEM 11.	EXECUTIVE COMPENSATION	67
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	67
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE	67
ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	67
PART IV
ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	68
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-2
CONSOLIDATED BALANCE SHEETS		F-3
CONSOLIDATED STATEMENTS OF OPERATIONS		F-4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)		F-5
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY		F-6
CONSOLIDATED STATEMENTS OF CASH FLOWS		F-7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS		F-8
SCHEDULE III - REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION		S-1
SIGNATURES
EXHIBIT INDEX

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Annual Report on Form 10-K of Cole Credit Property Trust IV, Inc., other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all 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, as applicable by law. Such statements include, in particular, statements about our plans, strategies, and prospects and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” or other similar words. Forward-looking statements that were true at the time made may ultimately prove to be incorrect or false. We caution readers not to place undue reliance on forward-looking statements, which reflect our management’s view only as of the date this Annual Report on Form 10-K is filed with the Securities and Exchange Commission (the “SEC”). We make no representation or warranty (express or implied) about the accuracy of any such forward-looking statements contained in this Annual Report on Form 10-K. Additionally, we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. The forward-looking statements should be read in light of the risk factors identified in “Item 1A — Risk Factors” of this Annual Report on Form 10-K.

2

PART I

ITEM 1. BUSINESS

Formation

Cole Credit Property Trust IV, Inc. (the “Company,” “we,” “our” or “us”) is a Maryland corporation that was formed on July 27, 2010, our date of inception, which has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. We are the sole general partner of and own, directly or indirectly, 100% of the partnership interests in Cole Operating Partnership IV, LP, a Delaware limited partnership (“CCPT IV OP”). We are externally managed by Cole REIT Advisors IV, LLC (“CR IV Advisors”), which was, prior to the ARCP Merger (as defined below), indirectly owned by Cole Real Estate Investments, Inc. (“Cole”, formerly known as Cole Credit Property Trust III, Inc.) as a result of Cole acquiring Cole Holdings Corporation (“CHC”) on April 5, 2013 pursuant to a transaction whereby CHC merged with and into CREInvestments, LLC (“CREI”), a wholly-owned subsidiary of Cole. On February 7, 2014, American Realty Capital Properties, Inc. (“ARCP”) acquired Cole pursuant to a transaction whereby Cole merged with and into Clark Acquisition, LLC, a wholly-owned subsidiary of ARCP (“Merger Sub”), with Merger Sub surviving as a wholly-owned subsidiary of ARCP (the “ARCP Merger”). ARCP is a self-managed publicly traded Maryland corporation listed on The NASDAQ Global Select Market, focused on acquiring and owning single tenant freestanding commercial properties subject to net leases with high credit quality tenants. As a result of the ARCP Merger, ARCP indirectly owns and/or controls our external advisor, CR IV Advisors, the dealer manager for our Offering (as defined below), Cole Capital Corporation (“CCC”), our property manager, CREI Advisors, LLC (“CREI Advisors”), and our sponsor, Cole Capital^®, and such entities are expected to continue to serve in their respective capacities to the Company.

Our sponsor, Cole Capital, which is comprised of a group of affiliated entities, including CR IV Advisors, has sponsored various real estate investment programs. CR IV Advisors, pursuant to an advisory agreement with us, is responsible for managing our affairs on a day-to-day basis and for identifying and making acquisitions and investments on our behalf. Pursuant to the advisory agreement, CR IV Advisors has fiduciary obligations to us and our stockholders. Our charter provides that our independent directors are responsible for reviewing the performance of CR IV Advisors and determining whether the compensation paid to CR IV Advisors and its affiliates is reasonable. The advisory agreement with CR IV Advisors has a term that is reconsidered for renewal on an annual basis by our board of directors.

Pursuant to a Registration Statement on Form S-11 filed under the Securities Act (Registration No. 333-169533) and declared effective by the SEC on January 26, 2012, we commenced our initial public offering on a “best efforts” basis of up to a maximum of $2.975 billion in shares of common stock. On November 25, 2013, we reallocated $400.0 million in shares from our distribution reinvestment plan (the “DRIP”) to the primary offering, and on February 18, 2014, we reallocated an additional $23.0 million in shares from the DRIP to the primary offering. As a result of these reallocations, the initial public offering offered up to a maximum of approximately 292.3 million shares of our common stock at a price of $10.00 per share, and up to approximately 5.5 million additional shares pursuant to the DRIP under which our stockholders could have elected to have distributions reinvested in additional shares of common stock at a price of $9.50 per share (the “Offering”).

We terminated the Offering on April 4, 2014. At the completion of the Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Offering and approximately 5.1 million shares of common stock sold pursuant to the DRIP.

In addition, we registered 26.0 million shares of common stock under the DRIP pursuant to a Registration Statement on Form S-3 under the Securities Act (Registration No. 333-192958) (the “DRIP Offering” and collectively with the Offering, the “Offerings”), which was filed with the SEC on December 19, 2013 and automatically became effective with the SEC upon filing. We will continue to issue shares of common stock under the DRIP Offering. As of December 31, 2014, we had issued approximately 306.1 million shares of our common stock in the Offerings for gross offering proceeds of $3.0 billion before organization and offering costs, selling commissions and dealer manager fees of $306.0 million.

We invest primarily in income-producing necessity retail properties that are single-tenant or multi-tenant “power centers,” which are leased to national and regional creditworthy tenants under long-term net leases, and are strategically located throughout the United States and U.S. protectorates. We consider necessity retail properties to be properties leased to retail tenants that attract consumers for everyday needs, such as pharmacies, home improvement stores, national superstores, restaurants and regional retailers. Power centers are multi-tenant properties that are anchored by one or more large national, regional or local retailers. We expect that our retail properties typically will be subject to long-term triple net or double net leases, which means the tenant will be obligated to pay for most of the expenses of maintaining the property.

3

As of December 31, 2014, we owned 759 properties, comprising 20.2 million rentable square feet of commercial space located in 45 states. As of December 31, 2014, the rentable space at these properties was 99% leased. In addition, through an unconsolidated joint venture arrangement, as of December 31, 2014, we had an interest in one property comprising 176,000 rentable square feet of commercial space.

Investment Objectives and Policies

Our primary investment objectives are:

• to acquire quality commercial real estate properties, net leased under long-term leases to creditworthy tenants, which provide current operating cash flow;

• to provide reasonably stable, current income for stockholders through the payment of cash distributions; and

• to provide the opportunity to participate in capital appreciation in the value of our investments.

We cannot assure investors that we will achieve these investment objectives. Our board of directors may revise our investment policies, as described below, without the concurrence of our stockholders. However, our board of directors will not amend our charter, including any investment policies that are provided in our charter, without the concurrence of a majority of the outstanding shares, except for amendments that do not adversely affect the rights, preferences and privileges of our stockholders. Our independent directors review our investment policies at least annually to determine that our policies are in the best interest of our stockholders.

Acquisition and Investment Policies

Types of Investments

We invest primarily in income-producing necessity retail properties that are single-tenant or multi-tenant “power centers,” which are leased to national and regional creditworthy tenants under long-term net leases, and are strategically located throughout the United States and U.S. protectorates. We consider necessity retail properties to be properties leased to retail tenants that attract consumers for everyday needs, such as pharmacies, home improvement stores, national superstores, restaurants and regional retailers. Power centers are multi-tenant properties that are anchored by one or more large national, regional or local retailers.

For over three decades, our sponsor, Cole Capital, has developed and utilized this investment approach in acquiring and managing core commercial real estate assets primarily in the retail sector, but in the office and industrial sectors as well. We believe that our sponsor’s experience in assembling real estate portfolios, which principally focus on national and regional creditworthy tenants subject to long-term leases, will provide us with a competitive advantage. In addition, our sponsor has built a business of approximately 400 employees who are experienced in the various aspects of acquiring, financing and managing commercial real estate, and we believe that our access to these resources provides us with a competitive advantage.

We have and may continue to invest in other income-producing properties, such as office and industrial properties, which may share certain core characteristics with our retail investments, such as a principal creditworthy tenant, a long-term net lease, and a strategic location. We believe investments in these types of office and industrial properties are consistent with our goal of providing investors with stable stream of current income and an opportunity for capital appreciation.

We may further diversify our portfolio by making and investing in mortgage, bridge or mezzanine loans, or in participations in such loans, secured directly or indirectly by the same types of commercial properties that we may acquire directly, and we may invest in other real estate-related securities. We may acquire properties under development or that require substantial refurbishment or renovation. We also have acquired and may continue to acquire majority or minority interests in other entities with investment objectives similar to ours.

Many of our properties are, and we anticipate future properties will be, leased to tenants in the chain or franchise retail industry, including but not limited to convenience stores, drug stores and restaurant properties, as well as leased to large national retailers as stand alone properties or as part of so-called “power centers,” which are anchored by national, regional or local retailers. CR IV Advisors will monitor industry trends and identify properties on our behalf that serve to provide a favorable return balanced with risk. Our management primarily targets regional or national name brand retail businesses with established track records. We generally intend to hold each property for a period in excess of seven years.

4

We believe that our general focus on the acquisition of a large number of single-tenant and multi-tenant necessity retail properties net leased to creditworthy tenants presents lower investment risks and greater stability than other sectors of today’s commercial real estate market. By acquiring a large number of single-tenant and multi-tenant retail properties, we believe that lower than expected results of operations from one or a few investments will not necessarily preclude our ability to realize our investment objective of cash flow from our overall portfolio. We believe this approach can result in less risk to investors than an investment approach that targets other asset classes. In addition, we believe that retail properties under long-term triple net and double net leases offer a distinct investment advantage since these properties generally require less management and operating capital, have less recurring tenant turnover and, with respect to single-tenant properties, often offer superior locations that are less dependent on the financial stability of adjoining tenants. In addition, since we acquire properties that are geographically diverse, we expect to minimize the potential adverse impact of economic slow downs or downturns in local markets. Our management believes that a portfolio consisting of both freestanding, single-tenant retail properties and multi-tenant retail properties anchored by large national, regional or local retailers will enhance our liquidity opportunities for investors by making the sale of individual properties, multiple properties or our investment portfolio as a whole attractive to institutional investors and by making a possible listing of our shares attractive to the public investment community.

To the extent feasible, we seek to achieve a well-balanced portfolio diversified by geographic location, age and lease maturities of the various properties. We pursue properties leased to tenants representing a variety of retail industries to avoid concentration in any one industry. We also are diversified between national, regional and local brands. We generally target properties with lease terms in excess of ten years. We have acquired and may continue to acquire properties with shorter lease terms if the property is in an attractive location, if the property is difficult to replace, or if the property has other significant favorable attributes. We expect that these investments will provide long-term value by virtue of their size, location, quality and condition, and lease characteristics.

There is no limitation on the number, size or type of properties that we may acquire, or on the percentage of net proceeds of the Offerings that may be invested in a single property. The number and mix of properties comprising our portfolio will depend upon real estate market conditions and other circumstances existing at the time we acquire properties. We will not forgo a high quality investment because it does not precisely fit our expected portfolio composition. See “— Other Possible Investments” below for a description of other types of real estate and real estate-related investments we may make.

We incur debt to acquire properties where CR IV Advisors determines that incurring such debt is in our best interests and in the best interest of our stockholders. In addition, from time to time, we have acquired and may continue to acquire some properties without financing and later incur mortgage debt secured by one or more of such properties if favorable financing terms are available. We use the proceeds from these loans to acquire additional properties. See “— Borrowing Policies” below for a more detailed description of our borrowing intentions and limitations.

Real Estate Underwriting Process

In evaluating potential property acquisitions consistent with our investment objectives, CR IV Advisors applies a well-established underwriting process to determine the creditworthiness of potential tenants. Similarly, CR IV Advisors applies credit underwriting criteria to possible new tenants when we are re-leasing properties in our portfolio. Many of the tenants of our properties are, and we expect will continue to be, national or regional retail chains that are creditworthy entities having high net worth and operating income. CR IV Advisors’ underwriting process includes analyzing the financial data and other available information about the tenant, such as income statements, balance sheets, net worth, cash flow, business plans, data provided by industry credit rating services, and/or other information CR IV Advisors may deem relevant. Generally, these tenants must have a proven track record in order to meet the credit tests applied by CR IV Advisors. In addition, we may obtain guarantees of leases by the corporate parent of the tenant, in which case CR IV Advisors will analyze the creditworthiness of the guarantor. In many instances, especially in sale-leaseback situations where we are acquiring a property from a company and simultaneously leasing it back to the company under a long-term lease, we will meet with the tenant’s senior management to discuss the company’s business plan and strategy.

When using debt rating agencies, a tenant typically will be considered creditworthy when the tenant has an “investment grade” debt rating by Moody’s Investors Service (“Moody’s”) of Baa3 or better, credit rating by Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) of BBB- or better, or its payments are guaranteed by a company with such rating. Changes in tenant credit ratings, coupled with future acquisition and disposition activity, may increase or decrease our concentration of creditworthy tenants in the future.

5

Moody’s ratings are opinions of future relative creditworthiness based on an evaluation of franchise value, financial statement analysis and management quality. The rating given to a debt obligation describes the level of risk associated with receiving full and timely payment of principal and interest on that specific debt obligation and how that risk compares with that of all other debt obligations. The rating, therefore, provides one measure of the ability of a company to generate cash in the future.

A Moody’s debt rating of Baa3, which is the lowest investment grade rating given by Moody’s, is assigned to companies which, in Moody’s opinion, have adequate financial security. However, certain protective elements may be lacking or may be unreliable over any given period of time. A Moody’s debt rating of AAA, which is the highest investment grade rating given by Moody’s, is assigned to companies which, in Moody’s opinion, have exceptional financial security. Thus, investment grade tenants will be judged by Moody’s to have at least adequate financial security, and will in some cases have exceptional financial security.

Standard & Poor’s assigns a credit rating to companies and to each issuance or class of debt issued by a rated company. A Standard & Poor’s credit rating of BBB-, which is the lowest investment grade rating given by Standard & Poor’s, is assigned to companies that, in Standard & Poor’s opinion, exhibit adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the company to meet its financial commitments. A Standard & Poor’s credit rating of AAA+, which is the highest investment grade rating given by Standard & Poor’s, is assigned to companies that, in Standard & Poor’s opinion, have extremely strong capacities to meet their financial commitments. Thus, investment grade tenants will be judged by Standard & Poor’s to have at least adequate protection parameters, and will in some cases have extremely strong financial positions.

While we will utilize ratings by Moody’s and Standard & Poor’s as one factor in determining whether a tenant is creditworthy, CR IV Advisors will also consider other factors in determining whether a tenant is creditworthy for the purpose of meeting our investment objectives. CR IV Advisors’ underwriting process will also consider information provided by other debt or credit rating agencies, such as Dun & Bradstreet, along with CR IV Advisors’ own analysis of the financial condition of the tenant and/or the guarantor, the operating history of the property with the tenant, the tenant’s market share and track record within the tenant’s industry segment, the general health and outlook of the tenant’s industry segment, the strength of the tenant’s management team and the terms and length of the lease at the time of the acquisition.

Description of Leases

We expect, in most instances, to continue to acquire tenant properties with existing double net or triple net leases. “Net” leases means leases that typically require tenants to pay all or a majority of the operating expenses, including real estate taxes, special assessments and sales and use taxes, utilities, maintenance, insurance and building repairs related to the property, in addition to the lease payments. Triple net leases typically require the tenant to pay all costs associated with a property in addition to the base rent and percentage rent, if any, including capital expenditures for the roof and the building structure. Double net leases typically hold the landlord responsible for the capital expenditures for the roof and structure, while the tenant is responsible for all lease payments and remaining operating expenses associated with the property. Double net and triple net leases help ensure the predictability and stability of our expenses, which we believe will result in greater predictability and stability of our cash distributions to stockholders. Not all of our leases will be net leases. In respect of multi-tenant properties, we expect to continue to have a variety of lease arrangements with the tenants of these properties. Since each lease is an individually negotiated contract between two or more parties, each lease will have different obligations of both the landlord and tenant. Many large national tenants have standard lease forms that generally do not vary from property to property. We will have limited ability to revise the terms of leases to those tenants. We have acquired and may continue to acquire properties subject to “gross” leases. “Gross” leases means leases that typically require the tenant to pay a flat rental amount and we would pay for all property charges regularly incurred as a result of our owning the property. When spaces in a property become vacant, existing leases expire, or we acquire properties under development or requiring substantial refurbishment or renovation, we anticipate entering into “net” leases.

We anticipate that a majority of our future acquisitions will have lease terms of ten years or more. We have acquired and may continue to acquire properties under which the lease term has partially expired. We also may acquire properties with shorter lease terms if the property is in an attractive location, if the property is difficult to replace, or if the property has other significant favorable real estate attributes. Under most commercial leases, tenants are obligated to pay a predetermined annual base rent. Some of the leases also contain provisions that increase the amount of base rent payable at points during the lease term. We expect that many of our leases will contain periodic rent increases. Generally, the leases require each tenant to procure, at its own expense, commercial general liability insurance, as well as property insurance covering the building for the full replacement value and naming the ownership entity and the lender, if applicable, as the additional insured on the policy. Tenants will be required to provide proof of insurance by furnishing a certificate of insurance to CR IV Advisors on an annual basis. The insurance certificates will be tracked and reviewed for compliance by CR IV Advisors’ property and risk

6

management departments. As a precautionary measure, we may obtain, to the extent available, secondary liability insurance, as well as loss of rents insurance that covers one year of annual rent in the event of a rental loss.

Some leases require that we procure insurance for both commercial general liability and property damage; however, generally the premiums are fully reimbursable from the tenant. In such instances, the policy will list us as the named insured and the tenant as the additional insured.

In general, we do not permit leases to be assigned or subleased without our prior written consent. If we do consent to an assignment or sublease, generally we expect the terms of such consent to provide that the original tenant will remain fully liable under the lease unless we release that original tenant from its obligations.

We may purchase properties and lease them back to the sellers of such properties. While we intend to use our best efforts to structure any such sale-leaseback transaction so that the lease will be characterized as a “true lease” and so that we are treated as the owner of the property for federal income tax purposes, the Internal Revenue Service could challenge this characterization. In the event that any sale-leaseback transaction is re-characterized as a financing transaction for federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed, and in certain circumstances, we could lose our REIT status.

Investment Decisions

CR IV Advisors has substantial discretion with respect to the selection of our specific investments, subject to our investment and borrowing policies, and our policies are approved by our board of directors. In pursuing our investment objectives and making investment decisions on our behalf, CR IV Advisors evaluates the proposed terms of the investment against all aspects of the transaction, including the condition and financial performance of the asset, the terms of existing leases and the creditworthiness of the tenant, and property location and characteristics. Because the factors considered, including the specific weight we place on each factor, vary for each potential investment, we do not, and are not able to, assign a specific weight or level of importance to any particular factor.

CR IV Advisors procures and reviews an independent valuation estimate on each and every proposed investment. In addition, CR IV Advisors, to the extent such information is available, considers the following:

•tenant rolls and tenant creditworthiness;

•a property condition report;

•unit level store performance;

•property location, visibility and access;

•age of the property, physical condition and curb appeal;

•neighboring property uses;

•local market conditions including vacancy rates;

•area demographics, including trade area population and average household income;

•neighborhood growth patterns and economic conditions;

•presence of nearby properties that may positively or negatively impact store sales at the subject property; and

• lease terms, including length of lease term, scope of landlord responsibilities, presence and frequency of contractual rental increases, renewal option provisions, exclusive and permitted use provisions, co-tenancy requirements and termination options.

CR IV Advisors also reviews the terms of each existing lease by considering various factors, including:

•rent escalations;

•remaining lease term;

•renewal option terms;

•tenant purchase options;

7

•termination options;

•scope of the landlord’s maintenance, repair and replacement requirements;

•projected net cash flow yield; and

•projected internal rates of return.

Our board of directors has adopted a policy to prohibit acquisitions from affiliates of CR IV Advisors except in limited circumstances. See the section captioned “— Conflicts of Interest ” below.

Conditions to Closing Our Acquisitions

Generally, we condition our obligation to close the purchase of any investment on the delivery and verification of certain documents from the seller or developer, including, where appropriate:

• plans and specifications;

• surveys;

• evidence that title to the property can be freely sold or otherwise transferred to us, subject to such liens and encumbrances as are acceptable to CR IV Advisors;

• financial statements covering recent operations of properties, if available;

• title and liability insurance policies; and

• certificates of the tenant attesting that the tenant believes that, among other things, the lease is valid and enforceable.

In addition, we will take such steps as we deem necessary with respect to potential environmental matters. See the section captioned “Environmental Matters” below.

We have and may enter into purchase and sale arrangements with a seller or developer of a suitable property under development or construction. In such cases, we are obligated to purchase the property at the completion of construction, provided that the construction conforms to definitive plans, specifications, and costs approved by us in advance. In such cases, prior to our acquiring the property, we generally receive a certificate of an architect, engineer or other appropriate party, stating that the property complies with all plans and specifications. If renovation or remodeling is required prior to the purchase of a property, we expect to pay a negotiated maximum amount to the seller upon completion.

In determining whether to purchase a particular property, we may obtain an option to purchase such property. The amount paid for an option, if any, normally is forfeited if the property is not purchased and normally is credited against the purchase price if the property is purchased. 

In the purchasing, leasing and developing of properties, we are subject to risks generally incident to the ownership of real estate. Refer to “Item 1A. Risk Factors — General Risks Related to Investments in Real Estate” included elsewhere in this Annual Report on Form 10-K.

Ownership Structure

Our investments in real estate generally take the form of holding fee title or a long-term leasehold estate. We have acquired, and expect to continue to acquire, such interests either directly through our operating partnership or indirectly through limited liability companies, limited partnerships or other entities owned and/or controlled by us or our operating partnership. We have acquired and may continue to acquire properties by acquiring the entity that holds the desired properties. We also have acquired and also may continue to acquire properties through investments in joint ventures, partnerships, co-tenancies or other co-ownership arrangements with third parties, including the developers of the properties or affiliates of CR IV Advisors. See the section captioned “— Joint Venture Investments” below.

Joint Venture Investments

We have entered, and may continue to enter into, joint ventures, partnerships, co-tenancies and other co-ownership arrangements with affiliated entities of CR IV Advisors, including other real estate programs sponsored by affiliates of CR IV Advisors, and other third parties for the acquisition, development or improvement of properties or the acquisition of other real estate-related investments. We may also enter into such arrangements with real estate developers, owners and other unaffiliated third parties for the purpose of developing, owning and operating real properties. In determining whether to invest in a

8

particular joint venture, CR IV Advisors will evaluate the underlying real property or other real estate-related investment using the same criteria described above in “— Investment Decisions” for the selection of our real property investments. CR IV Advisors also will evaluate the joint venture or co-ownership partner and the proposed terms of the joint venture or a co-ownership arrangement.

Our general policy is to invest in joint ventures only when we will have an option or contract to purchase, or a right of first refusal to purchase, the property held by the joint venture or the co-venturer’s interest in the joint venture if the co-venturer elects to sell such interest. In the event that the co-venturer elects to sell all or a portion of the interests held in any such joint venture, however, we may not have sufficient funds to exercise our right of first refusal to buy the other co-venturer’s interest in the joint venture. In the event that any joint venture with an affiliated entity holds interests in more than one asset, the interest in each such asset may be specially allocated between us and the joint venture partner based upon the respective proportion of funds deemed invested by each co-venturer in each such asset.

CR IV Advisors’ officers and key persons may have conflicts of interest in determining which program sponsored by Cole Capital should enter into any particular joint venture agreement. The co-venturer may have economic or business interests or goals that are or may become inconsistent with our business interests or goals. In addition, CR IV Advisors’ officers and key persons may face a conflict in structuring the terms of the relationship between our interests and the interest of the affiliated co-venturer and in managing the joint venture. Since some or all of CR IV Advisors’ officers and key persons will also advise the affiliated co-venturer, agreements and transactions between us and ARCP or any other real estate programs sponsored by Cole Capital will not have the benefit of arm’s-length negotiation of the type normally conducted between unrelated co-venturers, which may result in the co-venturer receiving benefits greater than the benefits that we receive. In addition, we may assume liabilities related to the joint venture that exceed the percentage of our investment in the joint venture.

We may enter into joint ventures with ARCP, other real estate programs sponsored by Cole Capital, or with CR IV Advisors, one or more of our directors, or any of their respective affiliates, only if a majority of our directors (including a majority of our independent directors) not otherwise interested in the transaction approve the transaction as being fair and reasonable to us and on substantially the same terms and conditions as those received by unaffiliated joint venturers, and the cost of our investment must be supported by a current appraisal of the asset.

Development and Construction of Properties

We have invested and may continue to invest in properties on which improvements are to be constructed or completed or which require substantial renovation or refurbishment. We expect that joint ventures would be the exclusive vehicle through which we would invest in build-to-suit properties. Our general policy is to structure them as follows:

• we may enter into a joint venture with third parties who have an executed lease with the developer who has an executed lease in place with the future tenant whereby we will provide a portion of the equity or debt financing;

• we would accrue a preferred return during construction on any equity investment;

• the properties will be developed by third parties; and

• consistent with our general policy regarding joint venture investments, we would have an option or contract to purchase, or a right of first refusal to purchase, the property or the co-investor’s interest.

It is possible that joint venture partners may resist granting us a right of first refusal or may insist on a different methodology for unwinding the joint venture if one of the parties wishes to liquidate its interest.

In the event that we elect to engage in development or construction projects, in order to help ensure performance by the builders of properties that are under construction, completion of such properties will be guaranteed at the contracted price by a completion guaranty, completion bond or performance bond. CR IV Advisors may rely upon the substantial net worth of the contractor or developer or a personal guarantee accompanied by financial statements showing a substantial net worth provided by an affiliate of the person entering into the construction or development contract as an alternative to a completion bond or performance bond. Development of real estate properties is subject to risks relating to a builder’s ability to control construction costs or to build in conformity with plans, specifications and timetables. Refer to “Item 1A. Risk Factors — General Risks Related to Investments in Real Estate” included elsewhere in this Annual Report on Form 10-K.

We have and may continue to make periodic progress payments or other cash advances to developers and builders of our properties prior to completion of construction only upon receipt of an architect’s certification as to the percentage of the project then completed and as to the dollar amount of the construction then completed. We intend to use such additional controls on disbursements to builders and developers as we deem necessary or prudent. We have and may continue to directly employ one or more project managers, including CR IV Advisors or an affiliate of CR IV Advisors, to plan, supervise and implement the

9

development of any unimproved properties that we may acquire. Such persons would be compensated directly by us or through an affiliate of CR IV Advisors and reimbursed by us. In either event, the compensation would reduce the amount of any construction fee, development fee or acquisition fee that we would otherwise pay to CR IV Advisors or its affiliate.

In addition, we have and may continue to invest in unimproved properties, provided that we will not invest more than 10% of our total assets in unimproved properties or in mortgage loans secured by such properties. We will consider a property to be an unimproved property if it was not acquired for the purpose of producing rental or other operating cash flows, has no development or construction in process at the time of acquisition and no development or construction is planned to commence within one year of the acquisition.

Other Possible Investments

Although we have invested and expect to continue to invest primarily in real estate, our portfolio may also include other real estate-related investments, such as mortgage, mezzanine, bridge and other loans and securities related to real estate assets, frequently, but not necessarily always, in the corporate sector, to the extent such assets do not cause us to lose our REIT status or cause us to be an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). We may make adjustments to our target portfolio based on real estate market conditions, capital raised, financing secured and investment opportunities. Thus, to the extent that CR IV Advisors presents us with high quality investment opportunities that allow us to meet the REIT requirements under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”) and do not cause us, our operating partnership or any other subsidiaries to meet the definition of an “investment company” under the Investment Company Act, our portfolio composition may vary from what we initially expect. Our board of directors has broad discretion to change our investment policies in order for us to achieve our investment objectives.

Investing in and Originating Loans.  The criteria that CR IV Advisors will use in making or investing in loans on our behalf is substantially the same as those involved in acquiring properties for our portfolio. We do not intend to make loans to other persons, to underwrite securities of other issuers or to engage in the purchase and sale of any types of investments other than those relating to real estate. However, unlike our property investments which we expect to hold in excess of seven years, we expect that the average duration of loans will typically be one to five years.

We do not expect to make or invest in loans that are not directly or indirectly secured by real estate. We will not make or invest in mortgage loans on any one property if the aggregate amount of all mortgage loans outstanding on the property, including our loan, would exceed an amount equal to 85% of the appraised value of the property, as determined by an independent third party appraiser, unless we find substantial justification due to other underwriting criteria. We may find such justification in connection with the purchase of loans in cases in which we believe there is a high probability of our foreclosure upon the property in order to acquire the underlying assets and in which the cost of the loan investment does not exceed the fair market value of the underlying property. We will not invest in or make loans unless an appraisal has been obtained concerning the underlying property, except for those loans insured or guaranteed by a government or government agency. In cases in which a majority of our independent directors so determine and in the event the transaction is with our sponsor, CR IV Advisors, any of our directors or their respective affiliates, the appraisal will be obtained from a certified independent appraiser to support its determination of fair market value.

We may invest in first, second and third mortgage loans, mezzanine loans, bridge loans, wraparound mortgage loans, construction mortgage loans on real property and loans on leasehold interest mortgages. However, we will not make or invest in any loans that are subordinate to any mortgage or equity interest of CR IV Advisors or any of its or our affiliates. We also may invest in participations in mortgage loans. A mezzanine loan is a loan made in respect of certain real property but is secured by a lien on the ownership interests of the entity that, directly or indirectly, owns the real property. A bridge loan is short term financing for an individual or business, until permanent or the next stage of financing can be obtained. Second mortgage and wraparound loans are secured by second or wraparound deeds of trust on real property that is already subject to prior mortgage indebtedness. A wraparound loan is one or more junior mortgage loans having a principal amount equal to the outstanding balance under the existing mortgage loan, plus the amount actually to be advanced under the wraparound mortgage loan. Under a wraparound loan, we would generally make principal and interest payments on behalf of the borrower to the holders of the prior mortgage loans. Third mortgage loans are secured by third deeds of trust on real property that is already subject to prior first and second mortgage indebtedness. Construction loans are loans made for either original development or renovation of property. Construction loans in which we would generally consider an investment would be secured by first deeds of trust on real property for terms of six months to two years. Loans on leasehold interests are secured by an assignment of the borrower’s leasehold interest in the particular real property. These loans are generally for terms of six months to 15 years. The leasehold interest loans are either amortized over a period that is shorter than the lease term or have a maturity date prior to the date the lease terminates. These loans would generally permit us to cure any default under the lease. Participations in mortgage loans are investments in partial interests of mortgages of the type described above that are made and administered by third-party mortgage lenders.

10

In evaluating prospective loan investments, CR IV Advisors will consider factors such as the following:

•the ratio of the investment amount to the underlying property’s value;

•the property’s potential for capital appreciation;

•expected levels of rental and occupancy rates;

•the condition and use of the property;

•current and projected cash flow of the property;

•potential for rent increases;

•the degree of liquidity of the investment;

•the property’s income-producing capacity;

•the quality, experience and creditworthiness of the borrower;

•general economic conditions in the area where the property is located;

•in the case of mezzanine loans, the ability to acquire the underlying real property; and

•other factors that CR IV Advisors believes are relevant.

In addition, we will seek to obtain a customary lender’s title insurance policy or commitment as to the priority of the mortgage or condition of the title. Because the factors considered, including the specific weight we place on each factor, will vary for each prospective loan investment, we do not, and are not able to, assign a specific weight or level of importance to any particular factor.

We may originate loans from mortgage brokers or personal solicitations of suitable borrowers, or may purchase existing loans that were originated by other lenders. CR IV Advisors will evaluate all potential loan investments to determine if the security for the loan and the loan-to-value ratio meets our investment criteria and objectives. Most loans that we will consider for investment would provide for monthly payments of interest and some may also provide for principal amortization, although many loans of the nature that we will consider provide for payments of interest only and a payment of principal in full at the end of the loan term. We will not originate loans with negative amortization provisions.

We do not have any policies directing the portion of our assets that may be invested in construction loans, mezzanine loans, bridge loans, loans secured by leasehold interests and second, third and wraparound mortgage loans. However, we recognize that these types of loans are subject to more risk than first deeds of trust or first priority mortgages on income-producing, fee-simple properties, and we expect to minimize the amount of these types of loans in our portfolio, to the extent that we make or invest in loans at all. CR IV Advisors will evaluate the fact that these types of loans are riskier in determining the rate of interest on the loans. We do not have any policy that limits the amount that we may invest in any single loan or the amount we may invest in loans to any one borrower. We are not limited as to the amount of gross offering proceeds that we may use to invest in or originate loans.

Our loan investments may be subject to regulation by federal, state and local authorities and subject to various laws and judicial and administrative decisions imposing various requirements and restrictions, including among other things, regulating credit granting activities, establishing maximum interest rates and finance charges, requiring disclosures to customers, governing secured transactions and setting collection, repossession and claims handling procedures and other trade practices. In addition, certain states have enacted legislation requiring the licensing of mortgage bankers or other lenders and these requirements may affect our ability to effectuate our proposed investments in loans. Commencement of operations in these or other jurisdictions may be dependent upon a finding of our financial responsibility, character and fitness. We may determine not to make loans in any jurisdiction in which the regulatory authority determines that we have not complied in all material respects with applicable requirements.

Investment in Other Real Estate-Related Securities.  To the extent permitted by Section V.D.2 of the Statement of Policy Regarding Real Estate Investment Trusts adopted by the North American Securities Administrators Association (the “NASAA REIT Guidelines”), and subject to the limitations set forth in our charter, we may invest in common and preferred real estate-related equity securities of both publicly traded and private real estate companies. Real estate-related equity securities are generally unsecured and also may be subordinated to other obligations of the issuer. Our investments in real estate-related equity securities will involve special risks relating to the particular issuer of the equity securities, including the financial

11

condition and business outlook of the issuer.

We may also make investments in commercial mortgage backed securities (“CMBS”) to the extent permitted by the NASAA REIT Guidelines. CMBS are securities that evidence interests in, or are secured by, a single commercial mortgage loan or a pool of commercial mortgage loans. CMBS are generally pass-through certificates that represent beneficial ownership interests in common law trusts whose assets consist of defined portfolios of one or more commercial mortgage loans. They are typically issued in multiple tranches whereby the more senior classes are entitled to priority distributions from the trust’s income. Losses and other shortfalls from expected amounts to be received on the mortgage pool are borne by the most subordinate classes, which receive payments only after the more senior classes have received all principal and/or interest to which they are entitled. CMBS are subject to all of the risks of the underlying mortgage loans. We may invest in investment grade and non-investment grade CMBS classes. Our board of directors has adopted a policy to limit any investments in non-investment grade CMBS to not more than 10% of our total assets.

Borrowing Policies

CR IV Advisors believes that utilizing borrowings to make investments is consistent with our investment objective of maximizing the return to investors. By operating on a leveraged basis, we have more funds available for investment in properties. This allows us to make more investments than would otherwise be possible, potentially resulting in a more diversified portfolio.

At the same time, CR IV Advisors believes in utilizing leverage in a moderate fashion. While there is no limitation on the amount we may borrow against any single improved property, our charter limits our aggregate borrowings to 75% of the cost of our gross assets (or 300% of net assets) (before deducting depreciation or other non-cash reserves) unless excess borrowing is approved by a majority of the independent directors and disclosed to our stockholders in the next quarterly report along with the justification for such excess borrowing. Consistent with CR IV Advisors’ approach toward the moderate use of leverage, our board of directors has adopted a policy to further limit our borrowings to 60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our gross assets, unless excess borrowing is approved by a majority of the independent directors and disclosed to our stockholders in the next quarterly report along with a justification for such excess borrowing. Our advisor has set a target leverage ratio of 40% to 50% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our gross assets. As of December 31, 2014, the debt leverage ratio of our consolidated real estate assets, which is the ratio of debt to total gross real estate and related assets net of gross intangible lease liabilities, was 37%.

CR IV Advisors uses its best efforts to obtain financing on the most favorable terms available to us. CR IV Advisors has substantial discretion with respect to the financing we obtain, subject to our borrowing policies, which have been approved by our board of directors. Lenders may have recourse to assets not securing the repayment of the indebtedness. CR IV Advisors may refinance properties during the term of a loan only in limited circumstances, such as when a decline in interest rates makes it beneficial to prepay an existing mortgage, when an existing mortgage matures or if an attractive investment becomes available and the proceeds from the refinancing can be used to purchase such investment. The benefits of the refinancing may include increased cash flow resulting from reduced debt service requirements and an increase in property ownership if some refinancing proceeds are reinvested in real estate.

Our ability to increase our diversification through borrowing may be adversely impacted if banks and other lending institutions reduce the amount of funds available for loans secured by real estate. When interest rates on mortgage loans are high or financing is otherwise unavailable on a timely basis, we have purchased, and may continue to purchase, properties for cash with the intention of obtaining a mortgage loan for a portion of the purchase price at a later time. To the extent that we do not obtain mortgage loans on our properties, our ability to acquire additional properties will be restricted and we may not be able to adequately diversify our portfolio.

We may not borrow money from any of our directors or from CR IV Advisors or its affiliates unless such loan is approved by a majority of the directors not otherwise interested in the transaction (including a majority of the independent directors) as fair, competitive and commercially reasonable and no less favorable to us than a comparable loan between unaffiliated parties. We entered into a $10.0 million subordinate revolving line of credit (the “Series C Loan”) during the year ended December 31, 2012 with Series C, LLC, an affiliate of CR IV Advisors, that matured on April 12, 2013. The Series C Loan was approved by a majority of the directors (including a majority of the independent directors) not otherwise interested in the transaction as being fair, competitive and commercially reasonable and no less favorable to us than a comparable loan between unaffiliated parties under the same circumstances. Upon maturity, there were no amounts outstanding under the Series C Loan. During the year endedDecember 31, 2014, we did not borrow any funds from affiliates of our advisor.

12

Disposition Policies

We intend to hold each property we acquire for an extended period, generally in excess of seven years. Holding periods for other real estate-related investments may vary. Regardless of intended holding periods, circumstances might arise that could cause us to determine to sell an asset before the end of the expected holding period if we believe the sale of the asset would be in the best interests of our stockholders. The determination of whether a particular asset should be sold or otherwise disposed of will be made after consideration of relevant factors, including prevailing and projected economic conditions, current tenant rolls and tenant creditworthiness, whether we could apply the proceeds from the sale of the asset to make other investments, whether disposition of the asset would increase cash flow, and whether the sale of the asset would be a prohibited transaction under the Internal Revenue Code or otherwise impact our status as a REIT for federal income tax purposes. The selling price of a property that is net leased will be determined in large part by the amount of rent payable under the lease. If a tenant has a repurchase option at a formula price, we may be limited in realizing any appreciation. In connection with our sales of properties, we may lend the purchaser all or a portion of the purchase price. In these instances, our taxable income may exceed the cash received in the sale. As of December 31, 2014, we had not sold any properties.

Acquisition of Properties from Affiliates of CR IV Advisors

We may acquire properties or interests in properties from or in co-ownership arrangements with entities affiliated with CR IV Advisors, including properties acquired from affiliates of CR IV Advisors engaged in construction and development of commercial real properties. We will not acquire any property from an affiliate of CR IV Advisors unless a majority of our directors (including a majority of our independent directors) not otherwise interested in the transaction determine that the transaction is fair and reasonable to us. The purchase price that we will pay for any property we acquire from affiliates of CR IV Advisors, including property developed by an affiliate of CR IV Advisors as well as property held by such an affiliate that has already been developed, will not exceed the current appraised value of the property. In addition, the price of the property we acquire from an affiliate of CR IV Advisors may not exceed the cost of the property to the affiliate, unless a majority of our directors and a majority of our independent directors determine that substantial justification for the excess exists and the excess is reasonable. During the year ended December 31, 2014, we did not purchase any properties from affiliates of our advisor.

Conflicts of Interest

We are subject to various conflicts of interest arising out of our relationship with CR IV Advisors and its affiliates, including conflicts related to the arrangements pursuant to which we will compensate CR IV Advisors and its affiliates. While our independent directors must approve the engagement of CR IV Advisors as our advisor, the fees payable to CR IV Advisors in connection with the services provided to us, and any subsequent decision to continue such engagement, the ability of our independent directors to negotiate on our behalf may be adversely impacted by the fact that our board of directors recognizes that our stockholders invested with the understanding and expectation that an affiliate of Cole Capital would act as our advisor. Certain conflict resolution procedures are set forth in our charter.

Our officers and affiliates of CR IV Advisors will try to balance our interests with the interests of other real estate programs sponsored by Cole Capital to whom they owe duties. However, to the extent that these persons take actions that are more favorable to other entities than to us, these actions could have a negative impact on our financial performance and, consequently, on distributions to our stockholders and the value of their investments. In addition, our directors, officers and certain of our stockholders may engage for their own account in business activities of the types conducted or to be conducted by our subsidiaries and us.

Our independent directors have an obligation to function on our behalf in all situations in which a conflict of interest may arise and are authorized to retain independent legal counsel. Furthermore, all of our directors have a fiduciary obligation to act on behalf of our stockholders.

Interests in Other Real Estate Programs and Other Concurrent Offerings

Affiliates of CR IV Advisors act as an advisor to, and our chief financial officer acts as an executive officer of, Cole Credit Property Trust V, Inc. (“CCPT V”), Cole Office & Industrial REIT (CCIT II), Inc. (“CCIT II”) and Cole Real Estate Income Strategy (Daily NAV), Inc. (“Cole Income NAV Strategy”), all of which are REITs distributed and managed by affiliates of CR IV Advisors. In addition, all of these REITs employ our sponsor’s investment strategy, which focuses on single-tenant corporate properties subject to long term net leases to creditworthy tenants. ARCP and CCPT V, like us, focus primarily on the retail sector, while CCIT II focuses primarily on the office and industrial sectors and Cole Income NAV Strategy focuses primarily on commercial properties in the retail, office and industrial sectors. The common investment strategy used by each REIT would permit them to purchase certain properties that also may be suitable for our portfolio. Former programs sponsored, distributed

13

and managed by affiliates of CR IV Advisors were: Cole Corporate Income Trust, Inc. (“CCIT”), which merged with Select Income REIT, an unaffiliated publicly-listed REIT, on January 28, 2015; Cole Credit Property Trust, Inc. (“CCPT I”), which merged with ARCP on May 19, 2014; and Cole Credit Property Trust II, Inc. (“CCPT II”), which merged with Spirit Realty Capital, Inc., an unaffiliated publicly-listed REIT, on July 17, 2013. In addition, affiliates of CR IV Advisors acted as an advisor to Cole; however, on February 7, 2014, the ARCP Merger was completed pursuant to a transaction whereby Cole merged with and into Merger Sub with Merger Sub surviving as a wholly-owned subsidiary of ARCP.

CCIT II’s initial public offering of up to $2.975 billion in shares of common stock was declared effective by the SEC on September 17, 2013. Cole Income NAV Strategy’s offerings of up to $4.0 billion in shares of common stock of three classes were declared effective by the SEC on December 6, 2011 and August 26, 2013. CCPT V’s initial public offering of up to $2.975 billion in shares of common stock was declared effective by the SEC on March 17, 2014.

ARCP and any real estate program sponsored by Cole Capital, whether or not currently existing, could compete with us in the sale or operation of our assets. We will seek to achieve any operating efficiencies or similar savings that may result from affiliated management of competitive assets. However, to the extent such programs own or acquire property that is adjacent, or in close proximity, to a property we own, our property may compete with such other program’s property for tenants or purchasers.

Although our board of directors has adopted a policy limiting the types of transactions that we may enter into with CR IV Advisors and its affiliates, including ARCP and other real estate programs sponsored by Cole Capital, we may enter into certain such transactions, which are subject to an inherent conflict of interest. Similarly, joint ventures involving affiliates of CR IV Advisors also give rise to conflicts of interest. In addition, our board of directors may encounter conflicts of interest in enforcing our rights against any affiliate of CR IV Advisors in the event of a default by or disagreement with an affiliate or in invoking powers, rights or options pursuant to any agreement between us and CR IV Advisors, any of its affiliates, ARCP or another real estate program sponsored by Cole Capital.

Other Activities of CR IV Advisors and Its Affiliates

We rely on CR IV Advisors for the day-to-day operation of our business pursuant to an advisory agreement. As a result of the interests of members of its management in other real estate programs sponsored by Cole Capital and the fact that they have also engaged and will continue to engage in other business activities, CR IV Advisors and its officers, key persons and respective affiliates have conflicts of interest in allocating their time between us and other real estate programs sponsored by Cole Capital and other activities in which they are involved. However, CR IV Advisors believes that it and its affiliates have sufficient personnel to discharge fully their responsibilities to all of the real estate programs sponsored by Cole Capital and other ventures in which they are involved.

In addition, each of our executive officers also serves as an officer and/or director of CR IV Advisors, our property manager, and/or other affiliated and unaffiliated entities. As a result, these individuals owe duties to these other entities, as applicable, which may conflict with the duties that they owe to us and our stockholders.

Dealer Manager

Because CCC, the dealer manager for the Offering, is an affiliate of CR IV Advisors, we did not have the benefit of an independent due diligence review and investigation of the type normally performed by an unaffiliated, independent underwriter in connection with the Offerings.

Property Manager

Our properties are, and we anticipate that substantially all properties we acquire in the future will be, managed and leased by our property manager, CREI Advisors, an affiliate of our advisor, pursuant to property management and leasing agreements with our subsidiaries that hold title to our properties. We expect CREI Advisors to also serve as property manager for properties owned by other real estate programs sponsored by Cole Capital, some of which may be in competition with our properties.

Receipt of Fees and Other Compensation by CR IV Advisors and Its Affiliates

We have incurred, and expect to continue to incur, fees and expenses payable to CR IV Advisors and its affiliates in connection with the acquisition and management of our assets, including acquisition and advisory fees, acquisition expenses and operating expenses.

A transaction involving the purchase or sale of properties, or the purchase or sale of any other real estate-related investment will likely result in the receipt of fees and other compensation by CR IV Advisors and its affiliates, including acquisition and advisory fees, disposition fees and the possibility of subordinated performance fees. Subject to oversight by our

14

board of directors, CR IV Advisors will continue to have considerable discretion with respect to all decisions relating to the terms and timing of all transactions. Therefore, CR IV Advisors may have conflicts of interest concerning certain actions taken on our behalf, particularly due to the fact that acquisition fees will generally be based on the cost of the investment and payable to CR IV Advisors and its affiliates regardless of the quality of the properties acquired. Similarly, until such time as our board of directors provides an estimate of the value of our shares, the advisory fees will be based initially on the cost of our investments regardless of the quality of the properties acquired or services provided to us. Basing acquisition fees and advisory fees on the cost or estimated value of the investment may influence CR IV Advisors’ decisions relating to property acquisitions.

Employees

We have no direct employees. The employees of CR IV Advisors and its affiliates provide services to us related to acquisition and disposition, property management, asset management, financing, accounting, investor relations and administration. The employees of CCC, the dealer manager for the Offering, provide wholesale brokerage services.

We are dependent on CR IV Advisors and its affiliates for services that are essential to us, including the sale of shares of our common stock, asset acquisition decisions, property management and other general administrative responsibilities. In the event that these companies were unable to provide these services to us, we would be required to obtain such services from other sources.

We reimburse CR IV Advisors and its affiliates for expenses incurred in connection with its provision of administrative, acquisition, property management, asset management, financing, accounting and investor relation services, including personnel costs, subject to certain limitations. During the years ended December 31, 2014, 2013 and 2012, $7.3 million, $6.2 million and $248,000, respectively, were recorded for reimbursement of services provided by CR IV Advisors and its affiliates in connection with the acquisition, management, and financing of our assets. During the year ended December 31, 2012, we did not incur any advisory fees or operating expense reimbursements for certain months from April 13, 2012, when we commenced principal operations, through December 31, 2012 as CR IV Advisors agreed to waive its rights to these fees and expense reimbursements during such periods. In addition, during the years ended December 31, 2014, 2013 and 2012, $7.3 million, $36.2 million and $6.0 million, respectively, were recorded for the reimbursement of certain third-party and personnel costs allocated in connection with the issuance of shares pursuant to the Offering.

Insurance

See sections captioned “Acquisition and Investment Policies — Description of Leases” and “Environmental Matters.”

Reportable Segments

We operate on a consolidated basis in our commercial properties segment. See Note 2 to our consolidated financial statements in this Annual Report on Form 10-K.

Competition

As we purchase properties, we are in competition with other potential buyers for the same properties and may have to pay more to purchase the property than if there were no other potential acquirers or we may have to locate another property that meets our investment criteria. Although our properties are currently 99% leased and we intend to acquire properties subject to existing leases, the leasing of real estate is highly competitive in the current market, and we may continue to experience competition for tenants from owners and managers of competing projects. As a result, we may have to provide free rent, incur charges for tenant improvements, or offer other inducements, or we might not be able to timely lease the space, all of which may have an adverse impact on our results of operations. At the time we elect to dispose of our properties, we may also be in competition with sellers of similar properties to locate suitable purchasers for our properties.

Concentration of Credit Risk

As of December 31, 2014, we had cash on deposit, including restricted cash, at ten financial institutions, in three of which we had deposits in excess of federally insured levels totaling $58.7 million; however, we have not experienced any losses in such accounts. We limit significant cash deposits to accounts held by financial institutions with high credit standing; therefore, we believe we are not exposed to any significant credit risk on its cash deposits.

As of December 31, 2014, no single tenant accounted for greater than 10% of our 2014 gross annualized rental revenues. We had certain geographic concentrations in our property holdings. In particular, as of December 31, 2014, 75 of our properties were located in California and 92 were located in Texas, which accounted for 12% and 10%, respectively, of our 2014 gross annualized rental revenues. In addition, we have tenants in the discount store and pharmacy industries, which comprised 15%

15

and 13%, respectively, of our 2014 gross annualized rental revenues. See “Item 2. Properties” for additional information regarding the geographic concentration of our properties.

Litigation

In the ordinary course of business, we may become subject to litigation or claims. We are not aware of any pending legal proceedings of which the outcome is reasonably possible to have a material effect on our results of operations, financial condition or liquidity.

Environmental Matters

In connection with the ownership and operation of real estate, we potentially may be liable for costs and damages related to environmental matters. We own certain properties that are subject to environmental remediation. In each case, the seller of the property, the tenant of the property and/or another third party has been identified as the responsible party for environmental remediation costs related to the respective property. Additionally, in connection with the purchase of certain of the properties, the respective sellers and/or tenants have indemnified us against future remediation costs. In addition, we carry environmental liability insurance on our properties that provides limited coverage for remediation liability and pollution liability for third-party bodily injury and property damage claims. Accordingly, we do not believe that it is reasonably possible that the environmental matters identified at such properties will have a material effect on our results of operations, financial condition or liquidity, nor are we aware of any environmental matters at other properties which we believe are reasonably possible to have a material effect on our results of operations, financial condition or liquidity. See “— Conditions to Closing Our Acquisitions” for a description of the steps we may take to ensure environmental compliance in the properties we acquire.

Available Information

We electronically file our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to those reports with the SEC. We have also filed registration statements, amendments to our registration statements, and/or supplements to our prospectus in connection with our Offerings with the SEC. Copies of our filings with the SEC may be obtained from the SEC’s website, at http://www.sec.gov. Access to these filings is free of charge.

ITEM 1A. RISK FACTORS

The factors described below represent our principal risks. Other factors may exist that we do not consider to be significant based on information that is currently available or that we are not currently able to provide.

Risks Related to an Investment in Cole Credit Property Trust IV, Inc.

We currently have not identified all of the properties or real estate-related investments we intend to purchase. For this and other reasons, an investment in our shares is speculative.

We currently have not identified all of the properties or real estate-related investments that we may purchase. We have established policies relating to the types of investments we will make and the creditworthiness of tenants of our properties, but our advisor will have wide discretion in implementing these policies, subject to the oversight of our board of directors. Additionally, our advisor has discretion to determine the location, number and size of our investments and the percentage of net proceeds we may dedicate to a single investment. As a result, you will not be able to evaluate the economic merit of our future investments until after such investments have been made. Therefore, an investment in our shares is speculative.

You should consider our prospects in light of the risks, uncertainties and difficulties frequently encountered by companies that are, like us, in their early stages of development. To be successful in this market, we and our advisor must, among other things:

•identify and acquire investments that further our investment objectives;

•increase awareness of the Cole Credit Property Trust IV, Inc. name within the investment products market;

• rely on our advisor and its affiliates to attract, integrate, motivate and retain qualified personnel to manage our day-to-day operations;

•respond to competition for our targeted real estate and other investments;

• rely on our advisor and its affiliates to continue to build and expand our operations structure to support our business; and

16

•be continuously aware of, and interpret, marketing trends and conditions.

We may not succeed in achieving these goals, and our failure to do so could cause you to lose all or a portion of your investment.

Our shares have limited liquidity and we are not required, through our charter or otherwise, to provide for a liquidity event. There is no public trading market for our shares and there may never be one; therefore, it will be difficult for you to sell your shares. You should view our shares only as a long-term investment.

There currently is no public market for our common stock and there may never be one. In addition, we do not have a fixed date or method for providing stockholders with liquidity. We expect that our board of directors will make that determination in the future based, in part, upon advice from our advisor. If you are able to find a buyer for your shares, you will likely have to sell them at a substantial discount to your purchase price. It also is likely that your shares would not be accepted as the primary collateral for a loan. Therefore, shares of our common stock should be considered illiquid and a long-term investment, and our stockholders must be prepared to hold their shares of our common stock for an indefinite length of time.

You are limited in your ability to sell your shares pursuant to our share redemption program and may have to hold your shares for an indefinite period of time.

Our share redemption program includes numerous restrictions that limit your ability to sell your shares. Generally, you must have held your shares for at least one year in order to participate in our share redemption program. Subject to funds being available, we will further limit the number of shares redeemed pursuant to our share redemption program as follows: (1) we will not redeem in excess of 5.0% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemption is being paid (provided, however, that while shares subject to a redemption requested upon the death of a stockholder will be included in calculating the maximum number of shares that may be redeemed, shares subject to a redemption requested upon the death of a stockholder will not be subject to the percentage cap); and (2) funding for the redemption of shares will be limited to the net proceeds we receive from the sale of shares under our DRIP Offering. In an effort to accommodate redemption requests throughout the calendar year, we intend to limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12-month period ending on the last day of the fiscal quarter (provided, however, that while shares subject to a redemption requested upon the death of a stockholder will be included in calculating the maximum number of shares that may be redeemed, shares subject to a redemption requested upon the death of a stockholder will not be subject to the percentage cap), and funding for redemptions for each quarter generally will be limited to the net proceeds we receive from the sale of shares in the respective quarter under our DRIP Offering; however, our management may waive these quarterly limitations in its sole discretion, subject to the 5.0% cap on the number of shares we may redeem during the respective trailing 12-month period. Any of the foregoing limits might prevent us from accommodating all redemption requests made in any fiscal quarter or in any 12-month period. Our board of directors may amend the terms of, suspend, or terminate our share redemption program without stockholder approval upon 30 days’ prior written notice or reject any request for redemption. These restrictions severely limit your ability to sell your shares should you require liquidity, and limit your ability to recover the value you invested or the fair market value of your shares.

The offering price for our shares was not based on the book value or net asset value of our investments or our expected cash flow.

The offering price for our shares was not based on the book value or net asset value of our investments or our expected cash flow. Our board of directors does not intend to provide a reasonable estimate of the value of our shares until October 4, 2015 (18 months after the end of our Offering), unless earlier required pursuant to applicable regulatory requirements. Until such time as we determine a reasonable estimate of the value of our shares, the deemed value of our common stock in any statement by us will be $10.00 per share. Such deemed value of our shares is not intended to reflect our per share net asset value. See “Item 7. Distributions” included elsewhere in this Annual Report on Form 10-K.

We may be unable to pay or maintain cash distributions or increase distributions over time.

There are many factors that can affect the availability and timing of cash distributions to our stockholders. Distributions are based primarily on anticipated cash flow from operations over time. The amount of cash available for distributions is affected by many factors, such as the performance of our advisor in selecting investments for us to make, selecting tenants for our properties and securing financing arrangements, our ability to buy properties, rental income from our properties, and our operating expense levels, as well as many other variables. We may not always be in a position to pay distributions to you and any distributions we do make may not increase over time. In addition, our actual results may differ significantly from the assumptions used by our board of directors in establishing the distribution rate to our stockholders. There also is a risk that we may not have sufficient cash from operations to make a distribution required to maintain our REIT status.

17

We have paid, and may continue to pay, distributions from sources other than cash flow from operations, which may reduce the amount of capital we ultimately invest in real estate and may negatively impact the value of your investment.

To the extent that cash flow from operations is insufficient to fully cover our distributions to you, we have paid, and may continue to pay, distributions from sources other than cash flow from operations. Such sources may include borrowings, proceeds from asset sales or the sale of our securities in the Offering or future offerings. We have no limits on the amounts we may pay from sources other than cash flows from operations.

During the year ended December 31, 2014 we paid distributions of $177.0 million, including $104.3 million through the issuance of shares pursuant to the DRIP. Net cash provided by operating activities for the year ended December 31, 2014 was $89.1 million and reflected a reduction for real estate acquisition-related expenses incurred of $51.8 million, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We treat our real estate acquisition related expenses as funded by proceeds from the Offerings, including proceeds from the DRIP. Therefore, for consistency, proceeds from the issuance of common stock for the year ended December 31, 2014 are considered a source of our distributions to the extent that real estate acquisition-related expenses have reduced net cash flows provided by operating activities. As such our 2014 distributions were funded by net cash provided by operating activities of $89.1 million, or 50%, and proceeds from the Offerings of $87.9 million, or 50%.

Because we have paid, and may continue to pay, distributions from sources other than our cash flows from operations, distributions at any point in time may not reflect the current performance of our properties or our current operating cash flows.

Our organizational documents permit us to make distributions from any source, including the sources described in the risk factor above. Because the amount we pay out in distributions may exceed our cash flow from operations, distributions may not reflect the current performance of our properties or our current operating cash flows. To the extent distributions exceed cash flow from operations, distributions may be treated as a return of your investment and could reduce your basis in our common stock. A reduction in a stockholder’s basis in our common stock could result in the stockholder recognizing more gain upon the disposition of his or her shares, which in turn could result in greater taxable income to such stockholder.

We may suffer from delays in locating suitable investments, which could adversely affect our ability to pay distributions to you and the value of your investment.

We could suffer from delays in locating suitable investments. Delays we encounter in the selection and/or acquisition of income-producing properties likely would adversely affect our ability to pay distributions to you and the value of your overall returns. Competition from other real estate investors increases the risk of delays in investing our net offering proceeds. Our stockholders should expect to wait at least several months after the closing of a property acquisition before receiving cash distributions attributable to that property. If our advisor is unable to identify suitable investments, we will hold the proceeds we raise or raised in our Offerings in an interest-bearing account or invest the proceeds in short-term, investment-grade investments, which would provide a significantly lower return to us than the return we expect from our investments in real estate.

We have experienced losses in the past, and we may experience additional losses in the future.

Historically, we have experienced net losses (calculated in accordance with GAAP) and we may not be profitable or realize growth in the value of our investments. Many of our losses can be attributed to start-up costs, depreciation and amortization, as well as acquisition expenses incurred in connection with purchasing properties or making other investments. For a further discussion of our operational history and the factors affecting our losses, see “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing elsewhere in this Annual Report on Form 10-K and our accompanying consolidated financial statements and notes thereto.

Our success depends to a significant degree upon certain key personnel of our advisor. If our advisor loses or is unable to obtain key personnel, our ability to achieve our investment objectives could be delayed or hindered, which could adversely affect our ability to pay distributions to you and the value of your investment.

Our success depends to a significant degree upon the contributions of certain executive officers and other key personnel of our advisor, each of whom would be difficult to replace. We cannot guarantee that all of these key personnel, or any particular person, will remain affiliated with us, our sponsor and/or our advisor. If any of our key personnel were to cease their affiliation with our advisor, our operating results could suffer. Further, we currently do not separately maintain key person life insurance on any of our executive officers and other key personnel of our advisor. We believe that our future success depends, in large part, upon our advisor’s ability to hire and retain highly skilled managerial, operational and marketing personnel. Competition

18

for such personnel is intense, and we cannot assure you that our sponsor or advisor will be successful in attracting and retaining such skilled personnel. If our advisor loses or is unable to obtain the services of key personnel, our ability to implement our investment strategies could be delayed or hindered, and the value of your investment may decline.

Certain members of our management and the management of our advisor have been required to devote time and resources to addressing issues created as a result of the investigation by ARCP’s audit committee and the restatements of certain of ARCP’s financial statements. To the extent these matters or related matters require further attention of the members of our management and the management of our advisor, such persons’ focus on our business strategy may be diminished.

ARCP became the indirect parent of our sponsor, our advisor, the dealer manager for the Offering and our property manager as a result of the merger of Cole and ARCP on February 7, 2014. On October 29, 2014, ARCP announced that, as a result of preliminary findings of an independent investigation being conducted by its audit committee, certain of ARCP’s financial statements should no longer be relied upon. ARCP’s audit committee conducted an investigation with the assistance of independent advisors, Weil, Gotshal & Manges LLP and Ernst & Young LLP and, in March 2015, ARCP announced the conclusions of the investigation and restated ARCP’s financial statements for the year ended December 31, 2013 and the first and second quarters of 2014. ARCP also reported the remedial actions it has taken and is taking in response to the findings, and that the investigation did not identify any changes to the financial statements or operations of Cole Capital sponsored non-traded REITs. Certain members of our management and the management of our advisor have been required to devote time and resources to addressing issues relating to ARCP’s financial statements and internal investigation. Should such persons be required to devote further attention to these matters or related matters, their focus on our business strategy may be diminished.

If our board of directors elects to internalize our management functions in connection with a listing of our shares of common stock on an exchange or other liquidity event, your interest in us could be diluted, and we could incur other significant costs associated with being self-managed.

In the future, we may undertake a listing of our common stock on an exchange or other liquidity event that may involve internalizing our management functions. If our board of directors elects to internalize our management functions, we may negotiate to acquire our advisor’s assets and personnel. At this time, we cannot be sure of the form or amount of consideration or other terms relating to any such acquisition. Such consideration could take many forms, including cash payments, promissory notes and shares of our common stock. The payment of such consideration could result in dilution of your interests as a stockholder and could reduce the net income per share attributable to your investment. Internalization transactions involving the acquisition of advisors affiliated with entity sponsors have also, in some cases, been the subject of litigation. Even if these claims are without merit, we could be forced to spend significant amounts of money defending claims, which would reduce the amount of funds available to operate our business and to pay distributions.

In addition, while we would no longer bear the costs of the various fees and expenses we expect to pay to our advisor under the advisory agreement, our direct expenses would include general and administrative costs, including legal, accounting, and other expenses related to corporate governance, including SEC reporting and compliance. We would also incur the compensation and benefits costs of our officers and other employees and consultants that we now expect will be paid by our advisor or its affiliates. In addition, we may issue equity awards to officers, employees and consultants, which awards would decrease net income and may further dilute your investment. If the expenses we assume as a result of an internalization are higher than the expenses we avoid paying to our advisor, our net income per share would be lower as a result of the internalization than it otherwise would have been, potentially decreasing the amount of funds available to distribute to you and the value of our shares.

As currently organized, we do not directly have any employees. If we elect to internalize our operations, we would employ personnel and would be subject to potential liabilities commonly faced by employers, such as workers disability and compensation claims, potential labor disputes and other employee-related liabilities and grievances. Upon any internalization of our advisor, certain key personnel may not remain with our advisor, but instead will remain employees of our sponsor or its affiliates.

If we internalize our management functions, we could have difficulty integrating these functions as a stand-alone entity. Currently, our advisor and its affiliates perform asset management and general and administrative functions, including accounting and financial reporting, for multiple entities. They have a great deal of know-how and can experience economies of scale. We may fail to properly identify the appropriate mix of personnel and capital needs to operate as a stand-alone entity. An inability to manage an internalization transaction effectively could thus result in our incurring excess costs and/or have a negative effect on our results of operations.

19

Our participation in a co-ownership arrangement would subject us to risks that otherwise may not be present in other real estate investments, which could result in litigation or other liability that could increase our costs and negatively affect our results of operations.

We may enter in co-ownership arrangements with respect to a portion of the properties we acquire. Co-ownership arrangements involve risks generally not otherwise present with an investment in real estate and could result in litigation or other liability to us, such as the following:  

• the risk that a co-owner may at any time have economic or business interests or goals that are or become inconsistent with our business interests or goals;

• the risk that a co-owner may be in a position to take action contrary to our instructions or requests or our policies or objectives;

• the possibility that an individual co-owner might become insolvent or bankrupt, or otherwise default under the applicable mortgage loan financing documents, which may constitute an event of default under all of the applicable mortgage loan financing documents or allow the bankruptcy court to reject the agreements entered into by the co-owners owning interests in the property;

• the possibility that an individual co-owner might not have adequate liquid assets to make cash advances that may be required in order to fund operations, maintenance and other expenses related to the property, which could result in the loss of current or prospective tenants and otherwise adversely affect the operation and maintenance of the property, could cause a default under the mortgage loan financing documents applicable to the property and result in late charges, penalties and interest, and could lead to the exercise of foreclosure and other remedies by the lender;

• the risk that a co-owner could breach agreements related to the property, which may cause a default under, and possibly result in personal liability in connection with, the applicable mortgage loan financing documents, violate applicable securities law, result in a foreclosure or otherwise adversely affect the property and the co-ownership arrangement;

• the risk that a default by any co-owner would constitute a default under the applicable mortgage loan financing documents that could result in a foreclosure and the loss of all or a substantial portion of the investment made by the co-owner;

•the risk that we could have limited control and rights, with management decisions made entirely by a third-party; and

• the possibility that we will not have the right to sell the property at a time that otherwise could result in the property being sold for its maximum value.

In the event that our interests become adverse to those of the other co-owners, we may not have the contractual right to purchase the co-ownership interests from the other co-owners. Even if we are given the opportunity to purchase such co-ownership interests in the future, we cannot guarantee that we will have sufficient funds available at the time to purchase co-ownership interests from the co-owners.

We might want to sell our co-ownership interests in a given property at a time when the other co-owners in such property do not desire to sell their interests. Therefore, because we anticipate that it will be much more difficult to find a willing buyer for our co-ownership interests in a property than it would be to find a buyer for a property we owned outright, we may not be able to sell our interest in a property at the time we would like to sell.

Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and/or damage to our business relationships, all of which could negatively impact our financial results.

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of our information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to our information systems for purposes of misappropriating assets, stealing confidential information, corrupting data or causing operational disruption. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation and damage to our tenant and investor relationships. As our reliance on technology has increased, so have the risks posed to our information systems, both internal and those we have outsourced.We have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased

20

awareness of the nature and extent of a risk of a cyber incident, do not guarantee that our financial results, operations, business relationships or confidential information will not be negatively impacted by such an incident.

Risks Related to Conflicts of Interest

We are subject to conflicts of interest arising out of our relationships with our advisor and its affiliates, including the material conflicts discussed below. The “Conflicts of Interest” section of Part I, Item 1 of this Annual Report on Form 10-K provides a more detailed discussion of the conflicts of interest between us and our advisor and its affiliates, and our policies to reduce or eliminate certain potential conflicts.

21

Our advisor and its affiliates face conflicts of interest caused by their compensation arrangements with us, which could result in actions that are not in the long-term best interests of our stockholders.

Our advisor and its affiliates are entitled to substantial fees from us under the terms of the advisory agreement. These fees could influence the judgment of our advisor and its affiliates in performing services for us. Among other matters, these compensation arrangements could affect their judgment with respect to:

• the continuation, renewal or enforcement of our agreements with our advisor and its affiliates, including the advisory agreement;

• property acquisitions from other real estate programs sponsored by Cole Capital, which might entitle affiliates of our advisor to real estate commissions and possible success-based sale fees in connection with its services for the seller;

• property acquisitions from third parties, which entitle our advisor to acquisition fees and advisory fees;

• property dispositions, which may entitle our advisor or its affiliates to disposition fees;

• borrowings to acquire properties, which borrowings will increase the acquisition and advisory fees payable to our advisor; and

• how and when to recommend to our board of directors a proposed strategy to provide our investors with liquidity, which proposed strategy, if implemented, could entitle our advisor to the payment of fees.

Our advisor’s fee structure is principally based on the cost or book value of investments and not on performance, which could result in our advisor taking actions that are not necessarily in the long-term best interests of our stockholders.

The acquisition fee and the advisory fee we pay to our advisor are both based on the cost or book value of such investments. As a result, our advisor receives these fees regardless of the quality of such investments, the performance of such investments or the quality of our advisor’s services rendered to us in connection with such investments. This creates a potential conflict of interest between us and our advisor, as the interests of our advisor in receiving the acquisition fee and the advisory fee is not well aligned with our interest of acquiring real estate that is likely to produce the maximum risk adjusted returns.

Our advisor faces conflicts of interest relating to the incentive fee structure under our advisory agreement, which could result in actions that are not necessarily in the long-term best interests of our stockholders.

Pursuant to the terms of our advisory agreement, our advisor is entitled to a subordinated performance fee that is structured in a manner intended to provide incentives to our advisor to perform in our best interests and in the best interests of our stockholders. However, because our advisor does not maintain a significant equity interest in us and is entitled to receive certain fees regardless of performance, our advisor’s interests are not wholly aligned with those of our stockholders. Furthermore, our advisor could be motivated to recommend riskier or more speculative investments in order for us to generate the specified levels of performance or sales proceeds that would entitle our advisor to performance-based fees. In addition, our advisor will have substantial influence with respect to how and when our board of directors elects to provide liquidity to our investors, and these performance-based fees could influence our advisor’s recommendations to us in this regard. Our advisor also has the right to terminate the advisory agreement without cause or penalty which, under certain circumstances, could result in our advisor earning a performance fee. This could have the effect of delaying, deferring or preventing a change of control.

A number of other real estate programs sponsored by Cole Capital, as well as ARCP, use investment strategies that are similar to ours, therefore our executive officers and the officers and key personnel of our advisor and its affiliates may face conflicts of interest relating to the purchase and leasing of properties, and such conflicts may not be resolved in our favor.

CCPT V, Cole Income NAV Strategy and ARCP have characteristics, including targeted investment types, investment objectives and criteria, and anticipated fund terms, substantially similar to ours. As a result, we may be seeking to acquire properties and other real estate-related investments at the same time as ARCP or one or more of the real estate programs sponsored by Cole Capital and managed by officers and key personnel of our advisor and/or its affiliates, and these other real estate programs sponsored by Cole Capital may use investment strategies and have investment objectives that are similar to ours. Certain of our executive officers and the executive officers of our advisor also are executive officers of REITs sponsored by Cole Capital and/or their advisors, the general partners of other partnerships sponsored by Cole Capital and/or the advisors or fiduciaries of other real estate programs sponsored by Cole Capital. ARCP has adopted an asset allocation policy to allocate property acquisitions among ARCP and various programs sponsored by Cole Capital. There is a risk that the allocation of investment properties may result in our acquiring a property that provides lower returns to us than a property purchased by

22

ARCP or a real estate program sponsored by Cole Capital. In addition, we have acquired, and may continue to acquire, properties in geographic areas where ARCP or real estate programs sponsored by Cole Capital own properties. If one of the other real estate programs attracts a tenant that we are competing for, we could suffer a loss of revenue due to delays in locating another suitable tenant. Similar conflicts of interest may arise if our advisor recommends that we make or purchase mortgage loans or participations in mortgage loans, since ARCP or a real estate program sponsored by Cole Capital may be competing with us for these investments. You will not have the opportunity to evaluate the manner in which these conflicts of interest are resolved before or after making your investment.

Our officers and our advisor, including its key personnel and officers, face conflicts of interest related to the positions they hold with affiliated and unaffiliated entities, which could hinder our ability to successfully implement our business strategy and to generate returns to you.

Our president and chief executive officer, Thomas W. Roberts, who also serves on our board of directors, is also an officer of Cole Capital and one or more entities affiliated with our advisor. In addition, our chief financial officer and treasurer, Simon J. Misselbrook, is also an officer of our advisor, other real estate programs sponsored by Cole Capital and one or more entities affiliated with our advisor. Our advisor and its key personnel are also key personnel and partners of other real estate programs that have investment objectives, targeted assets, and legal and financial obligations similar to ours and/or the advisor to such programs, and they may have other business interests as well. As a result, these individuals have duties to us and our stockholders, as well as to these other entities and their stockholders, members and limited partners, in addition to business interests in other entities. These duties to such other entities and persons may create conflicts with the duties that they owe to us and our stockholders. There is a risk that their loyalties to these other entities could result in actions or inactions that are adverse to our business and violate their duties to us and our stockholders, which could harm the implementation of our investment strategy and our investment and leasing opportunities.

Conflicts with our business and interests are most likely to arise from involvement in activities related to (1) allocation of new investments and management time and services between us and the other entities, (2) our purchase of properties from, or sale of properties to, affiliated entities, (3) the timing and terms of the investment in or sale of an asset, (4) development of our properties by affiliates, (5) investments with affiliates of our advisor, and (6) compensation to our advisor and its affiliates. If we do not successfully implement our investment strategy, we may be unable to maintain or increase the value of our assets, and our operating cash flows and ability to pay distributions could be adversely affected. Even if these persons do not violate their fiduciary duties to us and our stockholders, they will have competing demands on their time and resources and may have conflicts of interest in allocating their time and resources between our business and these other entities. Should such persons devote insufficient time or resources to our business, returns on our investments may suffer.

Our charter permits us to acquire assets and borrow funds from affiliates of our advisor and sell or lease our assets to affiliates of our advisor, and any such transaction could result in conflicts of interest.

Under our charter, we are permitted to acquire properties from affiliates of our advisor, provided, that any and all acquisitions from affiliates of our advisor must be approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in such transaction as being fair and reasonable to us and at a price to us that is no greater than the cost of the property to the affiliate of our advisor, unless a majority of the independent directors determine that there is substantial justification for any amount that exceeds such cost and that the difference is reasonable. In no event will we acquire a property from an affiliate of our advisor if the cost to us would exceed the property’s current appraised value as determined by an independent appraiser. In the event that we acquire a property from an affiliate of our advisor, we may be foregoing an opportunity to acquire a different property that might be more advantageous to us. In addition, under our charter, we are permitted to borrow funds from affiliates of our advisor, including our sponsor, provided, that any such loans from affiliates of our advisor must be approved by a majority of our directors, including a majority of our independent directors, not otherwise interested in such transaction as being fair, competitive and commercially reasonable, and no less favorable to us than comparable loans between unaffiliated parties. Under our charter, we are also permitted to sell and lease our assets to affiliates of our advisor. Any such sale or lease transaction would be subject to our general policy that governs all transactions with entities affiliated with our advisor. To the extent that we acquire any properties from affiliates of our advisor, borrow funds from affiliates of our advisor or sell or lease our assets to affiliates of our advisor, such transactions could result in a conflict of interest.

Our advisor faces conflicts of interest relating to joint ventures or other co-ownership arrangements that we may enter into with ARCP or other real estate programs sponsored by Cole Capital, which could result in a disproportionate benefit to ARCP or another real estate program sponsored by Cole Capital.

We may enter into joint ventures with ARCP or another real estate program sponsored by Cole Capital for the acquisition, development or improvement of properties as well as the acquisition of real-estate related investments. Officers and key persons

23

of our advisor also are officers and key persons of other REITs sponsored by Cole Capital and/or their advisors, the general partners of other real estate programs sponsored by Cole Capital and/or the advisors or fiduciaries of other real estate programs sponsored by Cole Capital. These officers and key persons may face conflicts of interest in determining which real estate program should enter into any particular joint venture or co-ownership arrangement. These persons also may have a conflict in structuring the terms of the relationship between us and any affiliated co-venturer or co-owner, as well as conflicts of interests in managing the joint venture.

In the event we enter into joint venture or other co-ownership arrangements with ARCP or another real estate program sponsored by Cole Capital, our advisor and its affiliates may have a conflict of interest when determining when and whether to buy or sell a particular property, or to make or dispose of another real estate-related investment. In addition, if we become listed for trading on a national securities exchange, we may develop more divergent goals and objectives from any affiliated co-venturer or co-owner that is not listed for trading. In the event we enter into a joint venture or other co-ownership arrangement with another real estate program sponsored by Cole Capital that has a term shorter than ours, the joint venture may be required to sell its properties earlier than we may desire to sell the properties. Even if the terms of any joint venture or other co-ownership agreement between us and ARCP or another real estate program sponsored by Cole Capital grants us the right of first refusal to buy such properties, we may not have sufficient funds or borrowing capacity to exercise our right of first refusal under these circumstances.

Since certain of the executive officers of our advisor are the executive officers of Cole Capital and the advisors to other real estate programs sponsored by Cole Capital, agreements and transactions between or among the parties with respect to any joint venture or other co-ownership arrangement will not have the benefit of arm’s-length negotiation of the type normally conducted between unrelated co-venturers or co-owners, which may result in the co-venturer or co-owner receiving benefits greater than the benefits that we receive. We have adopted certain procedures for dealing with potential conflicts of interests as further described in “Item 1. Business — Conflicts of Interest” included elsewhere in this Annual Report on Form 10-K.

Risks Related to Our Corporate Structure

The limit on the number of shares a person may own may discourage a takeover that could otherwise result in a premium price to our stockholders.

Our charter, with certain exceptions, authorizes our directors to take such actions as are necessary and desirable to preserve our qualification as a REIT. Unless exempted by our board of directors, no person may own more than 9.8% in value of the aggregate of our outstanding shares or more than 9.8% (in value or number of shares, whichever is more restrictive) of the aggregate of our outstanding shares of common stock. These restrictions may have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all of our assets) that might provide a premium to the purchase price of our common stock for our stockholders.

Our charter permits our board of directors to issue stock with terms that may subordinate the rights of common stockholders or discourage a third party from acquiring us in a manner that might result in a premium price to our stockholders.

Our charter permits our board of directors to issue up to 500.0 million shares of stock, including 10.0 million shares of preferred stock. In addition, our board of directors, without any action by our stockholders, may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series of stock that we have authority to issue. Our board of directors may classify or reclassify any unissued common stock or preferred stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption of any such stock. Shares of our common stock will be subject to the express terms of any series of our preferred stock. Thus, if also approved by a majority of our independent directors not otherwise interested in the transaction, our board of directors could authorize the issuance of preferred stock with terms and conditions that could have a priority as to distributions and amounts payable upon liquidation over the rights of the holders of our common stock. Preferred stock could also have the effect of delaying, deferring or preventing the removal of incumbent management or a change in control of us, including an extraordinary transaction (such as a merger, tender offer or sale of all or substantially all of our assets) that might provide a premium to the purchase price of our common stock for our stockholders.

Maryland law prohibits certain business combinations, which may make it more difficult for us to be acquired and may limit your ability to dispose of your shares.

Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of an interested stockholder are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

24

• any person who beneficially owns 10% or more of the voting power of the corporation’s shares; or

• an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding voting stock of the corporation.

A person is not an interested stockholder under the statute if the board of directors approved in advance the transaction by which he or she otherwise would have become an interested stockholder. However, in approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms and conditions determined by our board of directors.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

• 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

• two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom or with whose affiliate the business combination is to be effected or held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation’s stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. The business combination statute permits various exemptions from its provisions, including business combinations that are exempted by the board of directors prior to the time that the interested stockholder becomes an interested stockholder. Pursuant to the statute, our board of directors has exempted any business combination involving our advisor or any affiliate of our advisor. Consequently, the five-year prohibition and the super-majority vote requirements will not apply to business combinations between us and our advisor or any affiliate of our advisor. As a result, our advisor and any affiliate of our advisor may be able to enter into business combinations with us that may not be in the best interest of our stockholders, without compliance with the super-majority vote requirements and the other provisions of the statute. The business combination statute may discourage others from trying to acquire control of us and increase the difficulty of consummating any offer.

Maryland law also limits the ability of a third party to buy a large percentage of our outstanding shares and exercise voting control in electing directors.

Under its Control Share Acquisition Act, Maryland law also provides that “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by the corporation’s disinterested stockholders by a vote of two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by interested stockholders, that is, by the acquirer, or officers of the corporation or employees of the corporation who are directors of the corporation, are excluded from shares entitled to vote on the matter. “Control shares” are voting shares of stock that would entitle the acquirer, except solely by virtue of a revocable proxy, to exercise voting control in electing directors within specified ranges of voting control. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A “control share acquisition” means the acquisition of control shares. The control share acquisition statute does not apply (a) to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions of our stock by Cole Capital Advisors, Inc. or any affiliate of Cole Capital Advisors, Inc. This statute could have the effect of discouraging offers from third parties to acquire us and increasing the difficulty of successfully completing this type of offer by anyone other than our advisor or any of its affiliates.

Our charter includes a provision that may discourage a stockholder from launching a tender offer for our shares.

Our charter requires that any tender offer, including any “mini-tender” offer, must comply with most of the requirements of Regulation 14D of the Exchange Act. The offering person must provide our company notice of the tender offer at least ten business days before initiating the tender offer. If the offering person does not comply with these requirements, we will have the right to redeem that person’s shares and any shares acquired in such tender offer. In addition, the non-complying person shall be responsible for all of our expenses in connection with that person’s noncompliance. This provision of our charter may discourage a person from initiating a tender offer for our shares and prevent you from receiving a premium to your purchase price for your shares in such a transaction.

25

If we are required to register as an investment company under the Investment Company Act, we could not continue our current business plan, which may significantly reduce the value of your investment.

We intend to conduct our operations, and the operations of our operating partnership and any other subsidiaries, so that no such entity meets the definition of an “investment company” under Section 3(a)(1) of the Investment Company Act. Under the Investment Company Act, in relevant part, a company is an “investment company” if:

• pursuant to Section 3(a)(1)(A), it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities; or

• pursuant to Section 3(a)(1)(C), it is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and owns or proposes to acquire “investment securities” having a value exceeding 40% of the value of its total assets on an unconsolidated basis (the 40% test). “Investment securities” excludes U.S. Government securities and securities of majority-owned subsidiaries that are not themselves investment companies and are not relying on the exception from the definition of investment company under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

We intend to monitor our operations and our assets on an ongoing basis in order to ensure that neither we, nor any of our subsidiaries, meet the definition of “investment company” under Section 3(a)(1) of the Investment Company Act. If we were obligated to register as an investment company, we would have to comply with a variety of substantive requirements under the Investment Company Act imposing, among other things:

• limitations on capital structure;

• restrictions on specified investments;

• prohibitions on transactions with affiliates;

• compliance with reporting, record keeping, voting, proxy disclosure and other rules and regulations that would significantly change our operations; and

• potentially, compliance with daily valuation requirements.

In order for us to not meet the definition of an “investment company” and avoid regulation under the Investment Company Act, we must engage primarily in the business of buying real estate, and these investments must be made within a year after the Offering ends. If we are unable to invest a significant portion of the proceeds of our Offering in properties within one year of the termination of the Offering, we may avoid being required to register as an investment company by temporarily investing any unused proceeds in certificates of deposit or other cash items with low returns. This would reduce the cash available for distribution to investors and possibly lower your returns.

To avoid meeting the definition of an “investment company” under Section 3(a)(1) of the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. Similarly, we may have to acquire additional income or loss generating assets that we might not otherwise have acquired or may have to forgo opportunities to acquire interests in companies that we would otherwise want to acquire and would be important to our investment strategy. Accordingly, our board of directors may not be able to change our investment policies as they may deem appropriate if such change would cause us to meet the definition of an “investment company.” In addition, a change in the value of any of our assets could negatively affect our ability to avoid being required to register as an investment company. If we were required to register as an investment company but failed to do so, we would be prohibited from engaging in our business, and criminal and civil actions could be brought against us. In addition, our contracts would be unenforceable unless a court were to require enforcement, and a court could appoint a receiver to take control of us and liquidate our business.

If you do not agree with the decisions of our board of directors, you only have limited control over changes in our policies and operations and may not be able to change such policies and operations.

Our board of directors determines our major policies, including our policies regarding investments, financing, growth, debt capitalization, REIT qualification and distributions. Our board of directors may amend or revise these and other policies without a vote of the stockholders. Under the Maryland General Corporation Law and our charter, our stockholders generally have a right to vote only on the following:

• the election or removal of directors;

• any amendment of our charter, except that our board of directors may amend our charter without stockholder approval

26

to increase or decrease the aggregate number of our shares, to increase or decrease the number of our shares of any class or series that we have the authority to issue, to change our name, to change the name or other designation or the par value of any class or series of our stock and the aggregate par value of our stock or to effect certain reverse stock splits; provided, however, that any such amendment does not adversely affect the rights, preferences and privileges of the stockholders;

• our dissolution; and

• a merger or consolidation of the sale or other disposition of all or substantially all of our assets.

In addition, pursuant to our charter, we will submit any other proposed liquidity event or transaction to our stockholders for approval if the transaction involves (a) the internalization of our management functions through our acquisition of our advisor or an affiliate of our advisor or (b) the payment of consideration to our advisor or an affiliate of our advisor other than pursuant to the terms of the advisory or dealer manager agreements or where the advisor or its affiliates receive consideration in its capacity as a stockholder on the same terms as our other stockholders.

All other matters are subject to the discretion of our board of directors.

Our board of directors may change certain of our investment policies without stockholder approval, which could alter the nature of your investment.

Our charter requires that our independent directors review our investment policies at least annually to determine that the policies we are following are in the best interest of the stockholders. These policies may change over time. The methods of implementing our investment policies also may vary, as new real estate development trends emerge and new investment techniques are developed. Subject to certain limits set forth in our charter and as may be required to avoid meeting the definition of an “investment company” under the Investment Company Act, our investment policies, the methods for their implementation, and our other objectives, policies and procedures may be altered by our board of directors without the approval of our stockholders, unless otherwise provided in our organizational documents. As a result, the nature of your investment could change without your consent.

Our rights and the rights of our stockholders to recover claims against our officers, directors and our advisor are limited, which could reduce your and our recovery against them if they cause us to incur losses.

Maryland law provides that a director has no liability in that capacity if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in the corporation’s best interests and with the care that an ordinarily prudent person in a like position would use under similar circumstances. Our charter, in the case of our directors and officers, and our charter and the advisory agreement, in the case of our advisor and its affiliates, require us, subject to certain exceptions, to indemnify and advance expenses to our directors, our officers, and our advisor and its affiliates. Our charter permits us to provide such indemnification and advance for expenses to our employees and agents. Additionally, our charter limits, subject to certain exceptions, the liability of our directors and officers to us and our stockholders for monetary damages. Although our charter does not allow us to indemnify our directors or our advisor and its affiliates for any liability or loss suffered by them or hold harmless our directors or our advisor and its affiliates for any loss or liability suffered by us to a greater extent than permitted under Maryland law or the NASAA REIT Guidelines, we and our stockholders may have more limited rights against our directors, officers, employees and agents, and our advisor and its affiliates, than might otherwise exist under common law, which could reduce our stockholders and our recovery against them. In addition, our advisor is not required to retain cash to pay potential liabilities and it may not have sufficient cash available to pay liabilities if they arise. If our advisor is held liable for a breach of its fiduciary duty to us, or a breach of its contractual obligations to us, we may not be able to collect the full amount of any claims we may have against our advisor. In addition, we may be obligated to fund the defense costs incurred by our directors, officers, employees and agents or our advisor in some cases, which would decrease the cash otherwise available for distribution to our stockholders.

Your interest in us will be diluted if we issue additional shares.

Existing stockholders do not have preemptive rights to any shares issued by us in the future. Our charter currently has authorized 500.0 million shares of stock, of which 490.0 million shares are designated as common stock and 10.0 million shares are designated as preferred stock. Subject to any limitations set forth under Maryland law, our board of directors may increase the number of authorized shares of stock, increase or decrease the number of shares of any class or series of stock designated, or classify or reclassify any unissued shares without the necessity of obtaining stockholder approval. All of such shares may be issued in the discretion of our board of directors, except that the issuance of preferred stock must also be approved by a majority of our independent directors not otherwise interested in the transaction, who will have access at our expense to our legal counsel or to independent legal counsel. Our stockholders likely will suffer dilution of their equity investment in us, in the

27

event that we (1) sell additional shares in the future, including those issued pursuant to our DRIP Offering, (2) sell securities that are convertible into shares of our common stock, (3) issue shares of our common stock in a private offering of securities to institutional investors, (4) issue shares of our common stock to our advisor, its successors or assigns, in payment of an outstanding fee obligation as set forth under our advisory agreement or (5) issue shares of our common stock to sellers of properties acquired by us in connection with an exchange of limited partnership interests of our operating partnership. In addition, the partnership agreement for our operating partnership contains provisions that would allow, under certain circumstances, other entities, including other real estate programs sponsored by Cole Capital, to merge into or cause the exchange or conversion of their interest in that entity for interests of our operating partnership. Because the limited partnership interests of our operating partnership may, in the discretion of our board of directors, be exchanged for shares of our common stock, any merger, exchange or conversion between our operating partnership and another entity ultimately could result in the issuance of a substantial number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders.

General Risks Related to Investments in Real Estate

Our operating results will be affected by economic and regulatory changes that have an adverse impact on the real estate market in general, which may prevent us from being profitable or from realizing growth in the value of our real estate properties.

Our operating results will be subject to risks generally incident to the ownership of real estate, including:

• changes in general economic or local conditions;

• changes in supply of or demand for similar or competing properties in an area;

• changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive;

• the illiquidity of real estate investments generally;

• changes in tax, real estate, environmental and zoning laws; and

• period of high interest rates and tight money supply.

These risks and other factors may prevent us from being profitable, or from maintaining or growing the value of our real estate properties.

Many of our properties may depend upon a single tenant, or a limited number of major tenants, for all or a majority of its rental income; therefore, our financial condition and ability to make distributions to you may be adversely affected by the bankruptcy or insolvency, a downturn in the business, or a lease termination of a single tenant.

Many of our properties are occupied by only one tenant or derive a majority of its rental income from a limited number of major tenants and, therefore, the success of those properties will be materially dependent on the financial stability of such tenants. Such tenants face competition within their industries and other factors that could reduce their ability to make rent payments. For example, our retail tenants face competition from other retailers, as well as competition from other retail channels, such as factory outlet centers, wholesale clubs, mail order catalogs, television shopping networks and various developing forms of e-commerce. In addition, our retail properties will be located in public places, where crimes, violence and other incidents may occur. Such incidents could reduce the amount of business conducted by the tenants at our properties, thus reducing the tenants’ abilities to pay rent, and such incidents could also expose us to civil liability, as the property owner. Furthermore, if we invest in industrial properties, a general reduction in U.S. manufacturing activity could reduce our manufacturing tenants’ abilities to pay rent. Lease payment defaults by tenants could cause us to reduce the amount of distributions we pay. A default by a single or major tenant on its lease payments to us would cause us to lose revenue from the property and force us to find an alternative source of revenue to meet any expenses associated with the property and prevent a foreclosure if the property is subject to a mortgage. In the event of a default by a single or major tenant, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and re-letting the property. If a lease is terminated, we may not be able to lease the property for the rent previously received or sell the property without incurring a loss. A default by a single or major tenant, the failure of a guarantor to fulfill its obligations or other premature termination of a lease to such a tenant, or such tenant’s election not to extend a lease upon its expiration, could have an adverse effect on our financial condition and our ability to pay distributions to you.

28

A high concentration of our properties in a particular geographic area, or with tenants in a similar industry, would magnify the effects of downturns in that geographic area or industry.

To the extent that we have a concentration of properties in any particular geographic area, any adverse situation that disproportionately affects that geographic area would have a magnified adverse effect on our portfolio. Similarly, when tenants of our properties are concentrated in a certain industry or industries, any adverse effect to that industry generally would have a disproportionately adverse effect on our portfolio. In particular, as of December 31, 2014, 75 of our properties were located in California and 92 were located in Texas, which accounted for 12% and 10%, respectively, of our 2014 gross annualized rental revenues. In addition, we have tenants in the discount store and drugstore industries, which comprised 15% and 13%, respectively, of our 2014 gross annualized rental revenues.

If a major tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which could have a material adverse effect on our financial condition and ability to pay distributions to you.

We may experience concentration in one or more tenants. Any of our tenants, or any guarantor of one of our tenant’s lease obligations, could be subject to a bankruptcy proceeding pursuant to Title 11 of the bankruptcy laws of the United States. Such a bankruptcy filing would bar us from attempting to collect pre-bankruptcy debts from the bankrupt tenant or its properties unless we receive an enabling order from the bankruptcy court. Post-bankruptcy debts would be paid currently. If we assume a lease, all pre-bankruptcy balances owing under it must be paid in full. If a lease is rejected by a tenant in bankruptcy, we would have a general unsecured claim for damages. If a lease is rejected, it is unlikely we would receive any payments from the tenant because our claim would be capped at the rent reserved under the lease, without acceleration, for the greater of one year or 15% of the remaining term of the lease, but not greater than three years, plus rent already due but unpaid. This claim could be paid only in the event funds were available, and then only in the same percentage as that realized on other unsecured claims.

The bankruptcy of a tenant or lease guarantor could delay our efforts to collect past due balances under the relevant lease, and could ultimately preclude full collection of these sums. Such an event also could cause a decrease or cessation of current rental payments, reducing our operating cash flows and the amount available for distributions to you. In the event a tenant or lease guarantor declares bankruptcy, the tenant or its trustee may not assume our lease or its guaranty. If a given lease or guaranty is not assumed, our operating cash flows and the amounts available for distributions to you may be adversely affected. The bankruptcy of a major tenant could have a material adverse effect on our ability to pay distributions to you.

If a sale-leaseback transaction is re-characterized in a tenant’s bankruptcy proceeding, our financial condition could be adversely affected.

We may enter into sale-leaseback transactions, whereby we would purchase a property and then lease the same property back to the person from whom we purchased it. In the event of the bankruptcy of a tenant, a transaction structured as a sale-leaseback may be re-characterized as either a financing or a joint venture, either of which outcomes could adversely affect our financial condition, cash flow and the amount available for distributions to you.

If the sale-leaseback were re-characterized as a financing, we might not be considered the owner of the property, and as a result would have the status of a creditor in relation to the tenant. In that event, we would no longer have the right to sell or encumber our ownership interest in the property. Instead, we would have a claim against the tenant for the amounts owed under the lease, with the claim arguably secured by the property. The tenant/debtor might have the ability to propose a plan restructuring the term, interest rate and amortization schedule of its outstanding balance. If confirmed by the bankruptcy court, we could be bound by the new terms, and prevented from foreclosing our lien on the property. If the sale-leaseback were re-characterized as a joint venture, our lessee and we could be treated as co-venturers with regard to the property. As a result, we could be held liable, under some circumstances, for debts incurred by the lessee relating to the property.

Challenging economic conditions could adversely affect vacancy rates, which could have an adverse impact on our ability to make distributions and the value of an investment in our shares.

If we experience vacancy rates that are higher than historical vacancy rates, we may have to offer lower rental rates and greater tenant improvements or concessions than expected. Increased vacancies may have a greater impact on us, as compared to REITs with other investment strategies, as our investment approach relies on long-term leases in order to provide a relatively stable stream of income for our stockholders. As a result, increased vacancy rates could have the following negative effects on us:

• the values of our potential investments in commercial properties could decrease below the amount paid for such investments;

• revenues from such properties could decrease due to low or no rental income during vacant periods, lower future rental

29

rates and/or increased tenant improvement expenses or concessions; and/or

• revenues from such properties that secure loans could decrease, making it more difficult for us to meet our payment obligations.

All of these factors could impair our ability to make distributions and decrease the value of an investment in our shares.

Properties that have vacancies for a significant period of time could be difficult to sell, which could diminish the return on your investment.

A property may incur vacancies either by the continued default of a tenant under its leases, the expiration of a tenant lease or early termination of a lease by a tenant. If vacancies continue for a long period of time, we may suffer reduced revenues resulting in less cash to be distributed to you. In addition, because a property’s market value depends principally upon the value of the property’s leases, the resale value of a property with prolonged vacancies could decline, which could further reduce your return.

We may be unable to secure funds for future tenant improvements or capital needs, which could adversely impact our ability to pay cash distributions to you.

When tenants do not renew their leases or otherwise vacate their space, it is usual that, in order to attract replacement tenants, we will be required to expend substantial funds for tenant improvements and tenant refurbishments to the vacated space. In addition, although we expect that our leases with tenants will require tenants to pay routine property maintenance costs, we will likely be responsible for any major structural repairs, such as repairs to the foundation, exterior walls and rooftops. We will use substantially all of the gross proceeds from our Offerings to buy real estate and real estate-related investments and to pay various fees and expenses. We intend to reserve only approximately 0.1% of the gross proceeds from our Offerings for future capital needs. Accordingly, if we need additional capital in the future to improve or maintain our properties or for any other reason, we will have to obtain funds from other sources, such as cash flow from operations, borrowings, property sales or future equity offerings. These sources of funding may not be available on attractive terms or at all. If we cannot procure additional funding for capital improvements, our investments may generate lower cash flows or decline in value, or both.

We may obtain only limited warranties when we purchase a property and would have only limited recourse in the event our due diligence did not identify any issues that lower the value of our property.

The seller of a property often sells such property in its “as is” condition on a “where is” basis and “with all faults,” without any warranties of merchantability or fitness for a particular use or purpose. In addition, purchase agreements may contain only limited warranties, representations and indemnifications that will only survive for a limited period after the closing. The purchase of properties with limited warranties increases the risk that we may lose some or all of our invested capital in the property, as well as the loss of rental income from that property.

Our inability to sell a property when we desire to do so could adversely impact our ability to pay cash distributions to you.

The real estate market is affected by many factors, such as general economic conditions, availability of financing, interest rates, supply and demand, and other factors that are beyond our control. We cannot predict whether we will be able to sell any property for the price or on the terms set by us, or whether any price or other terms offered by a prospective purchaser would be acceptable to us. We may be required to expend funds to correct defects or to make improvements before a property can be sold. We may not have adequate funds available to correct such defects or to make such improvements. Moreover, in acquiring a property, we may agree to restrictions that prohibit the sale of that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed or repaid on that property. We cannot predict the length of time needed to find a willing purchaser and to close the sale of a property. Our inability to sell a property when we desire to do so may cause us to reduce our selling price for the property. Any delay in our receipt of proceeds, or diminishment of proceeds, from the sale of a property could adversely impact our ability to pay distributions to you.

We are exposed to risks related to increases in market lease rates and inflation, as income from long-term leases is the primary source of our cash flows from operations.

We are exposed to risks related to increases in market lease rates and inflation, as income from long-term leases is the primary source of our cash flows from operations. Leases of long-term duration or which include renewal options that specify a maximum rate increase may result in below market lease rates over time if we do not accurately estimate inflation or market lease rates. Provisions of our leases designed to mitigate the risk of inflation and unexpected increases in market lease rates, such as periodic rental increases, may not adequately protect us from the impact of inflation or unexpected increases in market

30

lease rates. If we are subject to below market lease rates on a significant number of our properties pursuant to long-term leases, our cash flow from operations and financial position may be adversely affected.

We may not be able to sell our properties at a price equal to, or greater than, the price for which we purchased such property, which may lead to a decrease in the value of our assets.

Some of our leases may not contain rental increases over time, or the rental increases may be less than the fair market rate at a future point in time. In such event, the value of the leased property to a potential purchaser may not increase over time, which may restrict our ability to sell that property, or if we are able to sell that property, may result in a sale price less than the price that we paid to purchase the property.

We may acquire or finance properties with lock-out provisions, which may prohibit us from selling a property, or may require us to maintain specified debt levels for a period of years on some properties.

A lock-out provision is a provision that prohibits the prepayment of a loan during a specified period of time. Lock-out provisions may include terms that provide strong financial disincentives for borrowers to prepay their outstanding loan balance and exist in order to protect the yield expectations of investors. We expect that many of our properties will be subject to lock-out provisions. Lock-out provisions could materially restrict us from selling or otherwise disposing of or refinancing properties when we may desire to do so. Lock-out provisions may prohibit us from reducing the outstanding indebtedness with respect to any properties, refinancing such indebtedness on a non-recourse basis at maturity, or increasing the amount of indebtedness with respect to such properties. Lock-out provisions could impair our ability to take other actions during the lock-out period that could be in the best interests of our stockholders and, therefore, may have an adverse impact on the value of our shares relative to the value that would result if the lock-out provisions did not exist. In particular, lock-out provisions could preclude us from participating in major transactions that could result in a disposition of our assets or a change in control even though that disposition or change in control might be in the best interests of our stockholders.

Increased operating expenses could reduce cash flow from operations and funds available to acquire investments or make distributions.

Our properties are, and any property that we acquire will be, subject to operating risks common to real estate in general, any or all of which may negatively affect us. If any property is not fully occupied or if rents are being paid in an amount that is insufficient to cover operating expenses, we could be required to expend funds with respect to that property for operating expenses. Our properties are, and any property that we acquire will be, subject to increases in tax rates, utility costs, insurance costs, repairs and maintenance costs, administrative costs and other operating expenses. Some of our leases may not require the tenants to pay all or a portion of these expenses, in which event we may have to pay these costs. If we are unable to lease properties on terms that require the tenants to pay all or some of the properties’ operating expenses, if our tenants fail to pay these expenses as required or if expenses we are required to pay exceed our expectations, we could have less funds available for future acquisitions or cash available for distributions to you.

Adverse economic and geopolitical conditions may negatively affect our returns and profitability.

Our operating results may be affected by market and economic challenges, which may result from a general economic downturn experienced by the nation as a whole, by the local economies where our properties may be located, or by the real estate industry including the following:

• poor economic conditions may result in tenant defaults under leases;

• poor economic conditions may result in lower revenue to us from retailers who pay us a percentage of their revenues under percentage rent leases;

• re-leasing may require concessions or reduced rental rates under the new leases;

• changes in interest rates and availability of permanent mortgage funds that may render the sale of a property difficult or unattractive;

• constricted access to credit may result in tenant defaults or non-renewals under leases; and

• increased insurance premiums may reduce funds available for distribution or, to the extent such increases are passed through to tenants, may lead to tenant defaults. Increased insurance premiums may make it difficult to increase rents to tenants on turnover, which may adversely affect our ability to increase our returns.

31

The length and severity of any economic slowdown or downturn cannot be predicted. Our operations could be negatively affected to the extent that an economic slowdown or downturn is prolonged or becomes more severe.

The United States’ armed conflicts in various parts of the world could have a further impact on our tenants. The consequences of any armed conflict are unpredictable, and we may not be able to foresee events that could have an adverse effect on our tenants, our business or your investment. More generally, any of these events could result in increased volatility in or damage to the United States and worldwide financial markets and economy. They also could result in higher energy costs and increased economic uncertainty in the United States or abroad. Our revenues will be dependent upon payment of rent by retailers, which may be particularly vulnerable to uncertainty in the local economy. Adverse economic conditions could affect the ability of our tenants to pay rent, which could have a material adverse effect on our operating results and financial condition, as well as our ability to pay distributions to you.

The market environment may adversely affect our operating results, financial condition and ability to pay distributions to our stockholders.

Beginning in late 2007, domestic and international financial markets experienced significant disruptions that severely impacted the availability of credit and contributed to rising costs associated with obtaining credit. Financial conditions affecting commercial real estate have improved amid low Treasury rates and increased lending from banks, insurance companies, and CMBS conduits. However, any deterioration of financial conditions could have the potential to materially adversely affect the value of our properties and other investments; the availability or the terms of financing that we may anticipate utilizing; our ability to make principal and interest payments on, or refinance, certain property acquisitions or refinance any debt at maturity; and/or, for our leased properties, the ability of our tenants to enter into new leasing transactions or satisfy rental payments under existing leases. The market environment also could affect our operating results and financial condition as follows:

• Debt Markets - The debt market remains sensitive to the macro environment, such as Federal Reserve policy, market sentiment, or regulatory factors affecting the banking and CMBS industries. Should overall borrowing costs increase, due to either increases in index rates or increases in lender spreads, our operations may generate lower returns.

• Real Estate Markets - Although construction activity has increased, it remains near historic lows; as a result, incremental demand growth has helped to reduce vacancy rates and support modest rental growth. Improving fundamentals have resulted in gains in property values, although in many markets property values, occupancy and rental rates continue to be below those previously experienced before the economic downturn. If recent improvements in the economy reverse course, the properties we acquire could substantially decrease in value after we purchase them. Consequently, we may not be able to recover the carrying amount of our properties, which may require us to recognize an impairment charge or record a loss on sale in earnings.

The failure of any bank in which we deposit our funds could reduce the amount of cash we have available to pay distributions and make additional investments.

We have diversified, and expect to continue to diversify, our cash and cash equivalents among several banking institutions in an attempt to minimize exposure to any one of these entities. However, the Federal Deposit Insurance Corporation only insures amounts up to $250,000 per depositor per insured bank. We currently have cash and cash equivalents and restricted cash deposited in certain financial institutions in excess of federally insured levels. If any of the banking institutions in which we deposit funds ultimately fails, we may lose our deposits over $250,000. The loss of our deposits could reduce the amount of cash we have available to distribute or invest and could result in a decline in the value of your investment.

If we suffer losses that are not covered by insurance or that are in excess of insurance coverage, we could lose invested capital and anticipated profits.

Generally, our tenants are responsible for insuring their goods and premises and, in some circumstances, may be required to reimburse us for a share of the cost of acquiring comprehensive insurance for the properties, including casualty, liability, fire and extended coverage customarily obtained for similar properties in amounts that our advisor determines are sufficient to cover reasonably foreseeable losses. Tenants of single-user properties leased on a triple net basis typically are required to pay all insurance costs associated with those properties. Material losses may occur in excess of insurance proceeds with respect to any property, as insurance may not be sufficient to fund the losses. However, there are types of losses, generally of a catastrophic nature, such as losses due to wars, acts of terrorism, earthquakes, floods, hurricanes, pollution or environmental matters, which are either uninsurable or not economically insurable, or may be insured subject to limitations, such as large deductibles or co-payments. Insurance risks associated with potential terrorist acts could sharply increase the premiums we pay for coverage against property and casualty claims. Additionally, mortgage lenders in some cases insist that commercial property owners purchase specific coverage against terrorism as a condition for providing mortgage loans. It is uncertain whether such insurance policies will be available, or available at reasonable cost, which could inhibit our ability to finance or refinance our

32

potential properties. In these instances, we may be required to provide other financial support, either through financial assurances or self-insurance, to cover potential losses. We may not have adequate, or any, coverage for such losses. The Terrorism Risk Insurance Act of 2002 is designed for a sharing of terrorism losses between insurance companies and the federal government. We cannot be certain how this act will impact us or what additional cost to us, if any, could result. If such an event damaged or destroyed one or more of our properties, we could lose both our invested capital and anticipated profits from such property.

Real estate related taxes may increase, and if these increases are not passed on to tenants, our income will be reduced.

Local real property tax assessors may reassess our properties, which may result in increased taxes. Generally, property taxes increase as property values or assessment rates change, or for other reasons deemed relevant by property tax assessors. An increase in the assessed valuation of a property for real estate tax purposes will result in an increase in the related real estate taxes on that property. Although some tenant leases may permit us to pass through such tax increases to the tenants for payment, renewal leases or future leases may not be negotiated on the same basis. Tax increases not passed through to tenants may adversely affect our income, cash available for distributions, and the amount of distributions to you.

Covenants, conditions and restrictions may restrict our ability to operate a property.

Some of our properties will be contiguous to other parcels of real property, comprising part of the same retail center. In connection with such properties, we will be subject to significant covenants, conditions and restrictions, known as “CC&Rs,” restricting the operation of such properties and any improvements on such properties, and related to granting easements on such properties. Moreover, the operation and management of the contiguous properties may impact such properties. Compliance with CC&Rs may adversely affect our operating costs and reduce the amount of funds that we have available to pay distributions to you.

Our operating results may be negatively affected by potential development and construction delays and resultant increased costs and risks.

We may use proceeds from the Offerings to acquire properties upon which we will construct improvements. If we engage in development or construction projects, we will be subject to uncertainties associated with re-zoning for development, environmental concerns of governmental entities and/or community groups, and our builder’s ability to build in conformity with plans, specifications, budgeted costs, and timetables. If a builder fails to perform, we may resort to legal action to rescind the purchase or the construction contract or to compel performance. A builder’s performance may also be affected or delayed by conditions beyond the builder’s control. Delays in completion of construction could also give tenants the right to terminate preconstruction leases. We may incur additional risks if we make periodic progress payments or other advances to builders before they complete construction. These and other such factors can result in increased costs of a project or loss of our investment. In addition, we will be subject to normal lease-up risks relating to newly constructed projects. We also must rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a price at the time we acquire the property. If our projections are inaccurate, we may pay too much for a property, and our return on our investment could suffer.

We may invest in unimproved real property. Returns from development of unimproved properties are also subject to risks associated with re-zoning the land for development and environmental concerns of governmental entities and/or community groups.

If we contract with a development company for newly developed property, our earnest money deposit made to the development company may not be fully refunded.

We may enter into one or more contracts, either directly or indirectly through joint ventures with ARCP or other programs sponsored by Cole Capital or others, to acquire real property from a development company that is engaged in construction and development of commercial real properties. Properties acquired from a development company may be either existing income-producing properties, properties to be developed or properties under development. We anticipate that we will be obligated to pay a substantial earnest money deposit at the time of contracting to acquire such properties. In the case of properties to be developed by a development company, we anticipate that we will be required to close the purchase of the property upon completion of the development of the property. At the time of contracting and the payment of the earnest money deposit by us, the development company typically will not have acquired title to any real property. Typically, the development company will only have a contract to acquire land, a development agreement to develop a building on the land and an agreement with one or more tenants to lease all or part of the property upon its completion. However, we may not be required to close a purchase from the development company, and may be entitled to a refund of our earnest money, in the following circumstances:

• the development company fails to develop the property; or

33

• all or a specified portion of the pre-leased tenants fail to take possession under their leases for any reason.

The obligation of the development company to refund our earnest money will be unsecured, and we may not be able to obtain a refund of such earnest money deposit from it under these circumstances since the development company may be an entity without substantial assets or operations.

If we purchase an option to acquire a property but do not exercise the option, we likely would forfeit the amount we paid for such option, which would reduce the amount of cash we have available to make other investments.

In determining whether to purchase a particular property, we may obtain an option to purchase such property. The amount paid for an option, if any, normally is forfeited if the property is not purchased and normally is credited against the purchase price if the property is purchased. If we purchase an option to acquire a property but do not exercise the option, we likely would forfeit the amount we paid for such option, which would reduce the amount of cash we have available to make other investments.

Competition with third parties in acquiring properties and other investments may reduce our profitability and the return on your investment.

We compete with many other entities engaged in real estate investment activities, including individuals, corporations, bank and insurance company investment accounts, other REITs and real estate limited partnerships, and other entities engaged in real estate investment activities, many of which have greater resources than we do. Larger competitors may enjoy significant advantages that result from, among other things, a lower cost of capital and enhanced operating efficiencies. In addition, the number of entities and the amount of funds competing for suitable investments may increase. Any such increase would result in increased demand for these assets and therefore increased prices paid for them. If we pay higher prices for properties and other investments as a result of competition with third parties without a corresponding increase in tenant lease rates, our profitability will be reduced, and you may experience a lower return on your investment.

Our properties face competition that may affect tenants’ ability to pay rent, and the amount of rent paid to us may affect the cash available for distributions to you and the amount of distributions.

We typically acquire properties located in developed areas. Therefore, there are and will be numerous other retail properties within the market area of each of our properties that will compete with us for tenants. The number of competitive properties could have a material effect on our ability to rent space at our properties and the amount of rents charged. We could be adversely affected if additional competitive properties are built in close proximity to our properties, causing increased competition for customer traffic and creditworthy tenants. This could result in decreased cash flow from tenants and may require us to make capital improvements to properties that we would not have otherwise made, thus affecting cash available for distributions to you and the amount of distributions we pay.

Acquiring or attempting to acquire multiple properties in a single transaction may adversely affect our operations.

From time to time, we may acquire multiple properties in a single transaction. Portfolio acquisitions are more complex and expensive than single property acquisitions, and the risk that a multiple-property acquisition does not close may be greater than in a single-property acquisition. Portfolio acquisitions may also result in us owning investments in geographically dispersed markets, placing additional demands on our ability to manage the properties in the portfolio. In addition, a seller may require that a group of properties be purchased as a package even though we may not want to purchase one or more properties in the portfolio. In these situations, if we are unable to identify another person or entity to acquire the unwanted properties, we may be required to operate or attempt to dispose of these properties. To acquire multiple properties in a single transaction, we may be required to accumulate a large amount of cash. We would expect the returns that we earn on such cash to be less than the ultimate returns on real property, therefore accumulating such cash could reduce our funds available for distributions to you. Any of the foregoing events may have an adverse effect on our operations.

If we set aside insufficient capital reserves, we may be required to defer necessary capital improvements.

If we do not have enough reserves for capital to supply needed funds for capital improvements throughout the life of the investment in a property and there is insufficient cash flow from operations, we may be required to defer necessary improvements to a property, which may cause that property to suffer from a greater risk of obsolescence or a decline in value, or a greater risk of decreased operating cash flows as a result of fewer potential tenants being attracted to the property. If this happens, we may not be able to maintain projected rental rates for affected properties, and our results of operations may be negatively impacted.

34

Costs of complying with environmental laws and regulations may adversely affect our income and the cash available for any distributions.

All real property and the operations conducted on real property are subject to federal, state and local laws and regulations relating to environmental protection and human health and safety. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above-ground storage tanks, the use, storage, treatment, transportation and disposal of solid hazardous materials, and the remediation of contamination associated with disposals. Some of these laws and regulations may impose joint and several liability on tenants, owners or operators for the costs of investigation or remediation of contaminated properties, regardless of fault or whether the acts causing the contamination were legal. This liability could be substantial. In addition, the presence of hazardous substances, or the failure to properly remediate these substances, may adversely affect our ability to sell or rent such property or to use such property as collateral for future borrowing.

Compliance with new or more stringent laws or regulations or stricter interpretation of existing laws may require material expenditures by us. Future laws, ordinances or regulations may impose material environmental liability. Additionally, our properties may be affected by our tenants’ operations, the existing condition of land when we buy it, operations in the vicinity of our properties, such as the presence of underground storage tanks, or activities of unrelated third parties. In addition, there are various local, state and federal fire, health, life-safety and similar regulations that we may be required to comply with, and that may subject us to liability in the form of fines or damages for noncompliance. Any material expenditures, fines, or damages we must pay will reduce our ability to make distributions to you and may reduce the value of your investment.

We intend to invest primarily in properties historically used for corporate purposes. Some of these properties may contain at the time of our investment, or may have contained prior to our investment, underground storage tanks for the storage of petroleum products and other hazardous or toxic substances. All of these operations create a potential for the release of petroleum products or other hazardous or toxic substances. Some of our potential properties may be adjacent to or near other properties that have contained or then currently contain underground storage tanks used to store petroleum products or other hazardous or toxic substances. In addition, certain of our potential properties may be on or adjacent to or near other properties upon which others, including former owners or tenants of our properties, have engaged, or may engage in the future, in activities that may release petroleum products or other hazardous or toxic substances.

From time to time, we may acquire properties, or interests in properties, with known adverse environmental conditions where we believe that the environmental liabilities associated with these conditions are quantifiable and that the acquisition will yield a superior risk-adjusted return. In such an instance, we will estimate the costs of environmental investigation, clean-up and monitoring in determining the purchase price. Further, in connection with property dispositions, we may agree to remain responsible for, and to bear the cost of, remediating or monitoring certain environmental conditions on the properties.

We may not obtain an independent third-party environmental assessment for every property we acquire. In addition, any such assessment that we do obtain may not reveal all environmental liabilities. The cost of defending against claims of liability, of compliance with environmental regulatory requirements, of remediating any contaminated property, or of paying personal injury claims would materially adversely affect our business, assets or results of operations and, consequently, amounts available for distribution to you.

Discovery of previously undetected environmentally hazardous conditions may adversely affect our operating results.

Under various federal, state and local environmental laws, ordinances and regulations, a current or previous owner or operator of real property may be liable for the cost of removal or remediation of hazardous or toxic substances on, under or in such property. The costs of removal or remediation could be substantial. Such laws often impose liability whether or not the owner or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Environmental laws also may impose restrictions on the manner in which property may be used or businesses may be operated, and these restrictions may require substantial expenditures. Environmental laws provide for sanctions in the event of noncompliance and may be enforced by governmental agencies or, in certain circumstances, by private parties. Certain environmental laws and common law principles could be used to impose liability for release of and exposure to hazardous substances, including asbestos-containing materials into the air, and third parties may seek recovery from owners or operators of real properties for personal injury or property damage associated with exposure to released hazardous substances. The cost of defending against claims of liability, of compliance with environmental regulatory requirements, of remediating any contaminated property, or of paying personal injury claims could materially adversely affect our business, assets or results of operations and, consequently, amounts available for distribution to you.

35

If we sell properties by providing financing to purchasers, defaults by the purchasers would adversely affect our cash flow from operations.

In some instances we may sell our properties by providing financing to purchasers. When we provide financing to purchasers, we will bear the risk that the purchaser may default on its obligations under the financing, which could negatively impact cash flow from operations. Even in the absence of a purchaser default, the distribution of sale proceeds or their reinvestment in other assets will be delayed until the promissory notes or other property we may accept upon the sale are actually paid, sold, refinanced or otherwise disposed of. In some cases, we may receive initial down payments in cash and other property in the year of sale in an amount less than the selling price, and subsequent payments will be spread over a number of years. If any purchaser defaults under a financing arrangement with us, it could negatively impact our ability to pay cash distributions to you.

A proposed change in U.S. accounting standards for leases could reduce the overall demand to lease our properties.

The existing accounting standards for leases require lessees to classify their leases as either capital or operating leases. Under a capital lease, both the leased asset, which represents the tenant’s right to use the property, and the contractual lease obligation are recorded on the tenant’s balance sheet if one of the following criteria are met: (1) the lease transfers ownership of the property to the lessee by the end of the lease term; (2) the lease contains a bargain purchase option; (3) the non-cancelable lease term is more than 75% of the useful life of the asset; or (4) if the present value of the minimum lease payments equals 90% or more of the leased property’s fair value. If the terms of the lease do not meet these criteria, the lease is considered an operating lease, and no leased asset or contractual lease obligation is recorded by the tenant.

Recently, the U.S. Financial Accounting Standards Board (the “FASB”) and the International Accounting Standards Board (the “IASB”) initiated a joint project to develop new guidelines to lease accounting. Beginning in 2010, the FASB and IASB (collectively, the “Boards”) issued various exposure drafts (the “Exposure Drafts”), which propose substantial changes to the current lease accounting standards, primarily by eliminating the concept of operating lease accounting. As a result, a right-of-use lease asset and lease liability would be recorded on the tenant’s balance sheet for certain lease arrangements. In addition, the Exposure Drafts could impact the method in which contractual lease payments would be recorded. In order to mitigate the effect of the proposed lease accounting, tenants may seek to negotiate certain terms within new lease arrangements or modify terms in existing lease arrangements, such as shorter lease terms or fewer extension options, which would generally have less impact on tenant balance sheets. Also, tenants may reassess their lease-versus-buy strategies. This could result in a greater non-renewal risk, a delay in investing our Offering proceeds, or shorter lease terms, all of which may negatively impact our operations and our ability to pay distributions to you.

On May 16, 2013, the Boards published revised Exposure Drafts, which were open for public comment through September 2013. During the comment period, the Boards undertook various outreach activities (for example, webcasts, fieldwork, roundtable meetings, etc.) to discuss the proposals with a wide range of interested parties. The Boards plan to consider all feedback; however, final standards are not expected to be issued until some time in 2015 and are expected to be effective no earlier than January 1, 2017.

Our costs associated with complying with the Americans with Disabilities Act of 1990, as amended, may affect cash available for distributions.

Our properties generally are subject to the Americans with Disabilities Act of 1990, as amended (the “Disabilities Act”). Under the Disabilities Act, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The Disabilities Act has separate compliance requirements for “public accommodations” and “commercial facilities” that generally require that buildings and services be made accessible and available to people with disabilities. The Disabilities Act’s requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties, or, in some cases, an award of damages. We will attempt to acquire properties that comply with the Disabilities Act or place the burden on the seller or other third party, such as a tenant, to ensure compliance with the Disabilities Act. However, we may not be able to acquire properties or allocate responsibilities in this manner. If we cannot, our funds used for Disabilities Act compliance may affect cash available for distributions and the amount of distributions to you.

Risks Associated with Debt Financing

We have incurred mortgage indebtedness and other borrowings, which may increase our business risks, hinder our ability to make distributions, and decrease the value of your investment.

We have acquired real estate and other real estate-related investments by borrowing new funds. In addition, we have incurred mortgage debt and pledge all or some of our real properties as security for that debt to obtain funds to acquire additional real properties and other investments and to pay distributions to our stockholders. We may borrow additional funds if

36

we need funds to satisfy the REIT tax qualification requirement that we distribute at least 90% of our annual REIT taxable income to our stockholders. We may also borrow additional funds if we otherwise deem it necessary or advisable to assure that we maintain our qualification as a REIT for federal income tax purposes.

Our advisor believes that utilizing borrowing is consistent with our investment objective of maximizing the return to investors. There is no limitation on the amount we may borrow against any individual property or other investment. However, under our charter, we are required to limit our borrowings to 75% of the cost of our gross assets (before deducting depreciation or other non-cash reserves) of our gross assets, unless excess borrowing is approved by a majority of the independent directors and disclosed to our stockholders in our next quarterly report, along with justification for such excess borrowing. Moreover, our board of directors has adopted a policy to further limit our borrowings to 60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our gross assets, unless such borrowing is approved by a majority of the independent directors and disclosed to our stockholders in the next quarterly report along with justification for such excess borrowing. Our borrowings will not exceed 300% of our net assets as of the date of any borrowing, which is the maximum level of indebtedness permitted under the NASAA REIT Guidelines; however, we may exceed that limit if approved by a majority of our independent directors. These factors could limit the amount of cash we have available to distribute to you and could result in a decline in the value of your investment.

We do not intend to incur mortgage debt on a particular property unless we believe the property’s projected operating cash flow is sufficient to service the mortgage debt. However, if there is a shortfall between the cash flow from a property and the cash flow needed to service mortgage debt on a property, the amount available for distributions to you may be reduced. In addition, incurring mortgage debt increases the risk of loss since defaults on indebtedness secured by a property may result in lenders initiating foreclosure actions. In that case, we could lose the property securing the loan that is in default, thus reducing the value of our stockholders’ investment. For tax purposes, a foreclosure of any of our properties would be treated as a sale of the property for a purchase price equal to the outstanding balance of the debt secured by the mortgage. If the outstanding balance of the debt secured by the mortgage exceeds our tax basis in the property, we would recognize taxable income on foreclosure, but would not receive any cash proceeds from the foreclosure. In such event, we may be unable to pay the amount of distributions required in order to maintain our qualification as a REIT. We may give full or partial guarantees to lenders of mortgage debt to the entities that own our properties. If we provide a guaranty on behalf of an entity that owns one of our properties, we will be responsible to the lender for satisfaction of the debt if it is not paid by such entity. If any mortgages contain cross-collateralization or cross-default provisions, a default on a single property could affect multiple properties. If any of our properties are foreclosed upon due to a default, our ability to pay cash distributions to you will be adversely affected, which could result in us losing our REIT status and would result in a decrease in the value of your investment.

High interest rates may make it difficult for us to finance or refinance properties, which could reduce the number of properties we can acquire and the amount of cash distributions we can make to you.

We run the risk of being unable to finance or refinance our properties on favorable terms or at all. If interest rates are higher when we desire to mortgage our properties or when existing loans come due and the properties need to be refinanced, we may not be able to finance the properties and we would be required to use cash to purchase or repay outstanding obligations. Our inability to use debt to finance or refinance our properties could reduce the number of properties we can acquire, which could reduce our operating cash flows and the amount of cash distributions we can make to you. Higher costs of capital also could negatively impact operating cash flows and returns on our investments.

Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to you.

We have incurred indebtedness, and in the future may incur additional indebtedness, that bears interest at a variable rate. To the extent that we incur variable rate debt, increases in interest rates would increase our interest costs, which could reduce our operating cash flows and our ability to pay distributions to our stockholders. In addition, if we need to repay existing debt during periods of rising interest rates, we could be required to liquidate one or more of our investments at times that may not permit realization of the maximum return on such investments.

Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to you.

In connection with providing us financing, a lender could impose restrictions on us that affect our distribution and operating policies and our ability to incur additional debt. In general, our loan agreements restrict our ability to encumber or otherwise transfer our interest in the respective property without the prior consent of the lender. Loan documents we enter into may contain covenants that limit our ability to further mortgage the property, discontinue insurance coverage or replace CR IV

37

Advisors as our advisor. These or other limitations imposed by a lender may adversely affect our flexibility and our ability to achieve our investment and operating objectives, which could limit our ability to make distributions to you.

Interest-only indebtedness may increase our risk of default and ultimately may reduce our funds available for distribution to you.

We have financed some of our property acquisitions using interest-only mortgage indebtedness and may continue to do so. During the interest-only period, the amount of each scheduled payment will be less than that of a traditional amortizing mortgage loan. The principal balance of the mortgage loan will not be reduced (except in the case of prepayments) because there are no scheduled monthly payments of principal during this period. After the interest-only period, we will be required either to make scheduled payments of amortized principal and interest or to make a lump-sum or “balloon” payment at maturity. These required principal or balloon payments will increase the amount of our scheduled payments and may increase our risk of default under the related mortgage loan. If the mortgage loan has an adjustable interest rate, the amount of our scheduled payments also may increase at a time of rising interest rates. Increased payments and substantial principal or balloon maturity payments will reduce the funds available for distribution to our stockholders because cash otherwise available for distribution will be required to pay principal and interest associated with these mortgage loans.

Our ability to make a balloon payment at maturity is uncertain and may depend upon our ability to obtain additional financing or our ability to sell the property. At the time the balloon payment is due, we may or may not be able to refinance the loan on terms as favorable as the original loan or sell the property at a price sufficient to make the balloon payment. The effect of a refinancing or sale could affect the rate of return to stockholders and the projected time of disposition of our assets. In addition, payments of principal and interest made to service our debts may leave us with insufficient cash to pay the distributions that we are required to pay to maintain our qualification as a REIT. Any of these results would have a significant, negative impact on your investment.

To hedge against exchange rate and interest rate fluctuations, we have used, and may continue to use, derivative financial instruments that may be costly and ineffective and may reduce the overall returns on your investment.

We have used, and may continue to use, derivative financial instruments to hedge our exposure to changes in exchange rates and interest rates on loans secured by our assets and investments in CMBS. Derivative instruments may include interest rate swap contracts, interest rate cap or floor contracts, futures or forward contracts, options or repurchase agreements. Our actual hedging decisions will be determined in light of the facts and circumstances existing at the time of the hedge and may differ from time to time.

Using derivative financial instruments to hedge against exchange rate and interest rate fluctuations exposes us to credit risk, basis risk and legal enforceability risks. In this context, credit risk is the failure of the counterparty to perform under the terms of the derivative contract. If the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. Basis risk occurs when the index upon which the contract is based is more or less variable than the index upon which the hedged asset or liability is based, thereby making the hedge less effective. Finally, legal enforceability risks encompass general contractual risks, including the risk that the counterparty will breach the terms of, or fail to perform its obligations under, the derivative contract. If we are unable to manage these risks effectively, our results of operations, financial condition and ability to pay distributions to you will be adversely affected.

Risks Associated with Investments in Mortgage, Bridge and Mezzanine Loans and Real Estate-Related Securities

Investing in mortgage, bridge or mezzanine loans could adversely affect our return on our loan investments.

We may make or acquire mortgage, bridge or mezzanine loans, or participations in such loans, to the extent our advisor determines that it is advantageous for us to do so. However, if we make or invest in mortgage, bridge or mezzanine loans, we will be at risk of defaults on those loans caused by many conditions beyond our control, including local and other economic conditions affecting real estate values, interest rate changes, rezoning, and failure by the borrower to maintain the property. If there are defaults under these loans, we may not be able to repossess and sell quickly any properties securing such loans. An action to foreclose on a property securing a loan is regulated by state statutes and regulations and is subject to many of the delays and expenses of any lawsuit brought in connection with the foreclosure if the defendant raises defenses or counterclaims. In the event of default by a mortgagor, these restrictions, among other things, may impede our ability to foreclose on or sell the mortgaged property or to obtain proceeds sufficient to repay all amounts due to us on the loan, which could reduce the value of our investment in the defaulted loan. In addition, investments in mezzanine loans involve a higher degree of risk than long-term senior mortgage loans secured by income-producing real property because the investment may become unsecured as a result of foreclosure on the underlying real property by the senior lender.

38

We may invest in various types of real estate-related securities.

Aside from investments in real estate, we are permitted to invest in real estate-related securities, including securities issued by other real estate companies, CMBS, mortgage, bridge, mezzanine or other loans and Section 1031 tenant-in-common interests, and we may invest in real estate-related securities of both publicly traded and private real estate companies. We are focused, however, on acquiring interests in retail and other income-producing properties. We may not have the expertise necessary to maximize the return on our investment in real estate-related securities. If our advisor determines that it is advantageous to us to make the types of investments in which our advisor or its affiliates do not have experience, our advisor intends to employ persons, engage consultants or partner with third parties that have, in our advisor’s opinion, the relevant expertise necessary to assist our advisor in evaluating, making and administering such investments.

Investments in real estate-related securities will be subject to specific risks relating to the particular issuer of the securities and may be subject to the general risks of investing in subordinated real estate securities, which may result in losses to us.

Our investments in real estate-related securities will involve special risks relating to the particular issuer of the securities, including the financial condition and business outlook of the issuer. Issuers of real estate-related equity securities generally invest in real estate or real estate-related assets and are subject to the inherent risks associated with real estate-related investments discussed herein, including risks relating to rising interest rates.

Real estate-related securities are often unsecured and also may be subordinated to other obligations of the issuer. As a result, investments in real estate-related securities are subject to risks of (1) limited liquidity in the secondary trading market in the case of unlisted or thinly traded securities, (2) substantial market price volatility resulting from changes in prevailing interest rates in the case of traded equity securities, (3) subordination to the prior claims of banks and other senior lenders to the issuer, (4) the operation of mandatory sinking fund or call/redemption provisions during periods of declining interest rates that could cause the issuer to reinvest redemption proceeds in lower yielding assets, (5) the possibility that earnings of the issuer may be insufficient to meet its debt service and distribution obligations and (6) the declining creditworthiness and potential for insolvency of the issuer during periods of rising interest rates and economic slowdown or downturn. These risks may adversely affect the value of outstanding real estate-related securities and the ability of the issuers thereof to repay principal and interest or make distribution payments.

CMBS in which we may invest are subject to all of the risks of the underlying mortgage loans, the risks of the securitization process and dislocations in the mortgage-backed securities market in general.

CMBS are securities that evidence interests in, or are secured by, a single commercial mortgage loan or a pool of commercial mortgage loans. Accordingly, these securities are subject to all of the risks of the underlying mortgage loans. In a rising interest rate environment, the value of CMBS may be adversely affected when payments on underlying mortgages do not occur as anticipated, resulting in the extension of the security’s effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. The value of CMBS may also change due to shifts in the market’s perception of issuers and regulatory or tax changes adversely affecting the mortgage securities market as a whole. In addition, CMBS are subject to the credit risk associated with the performance of the underlying mortgage properties. CMBS are issued by investment banks, not financial institutions, and are not insured or guaranteed by the U.S. government.

CMBS are also subject to several risks created through the securitization process. Subordinate CMBS are paid interest only to the extent that there are funds available to make payments. To the extent the collateral pool includes delinquent loans, there is a risk that interest payments on subordinate CMBS will not be fully paid. Subordinate CMBS are also subject to greater credit risk than those CMBS that are more highly rated. In certain instances, third-party guarantees or other forms of credit support can reduce the credit risk.

The value of any CMBS in which we invest may be negatively impacted by any dislocation in the mortgage-backed securities market in general. Sub-prime loans often have high interest rates and are often made to borrowers with credit scores that would not qualify them for prime conventional loans. In recent years, banks made a great number of the sub-prime residential mortgage loans with high interest rates, floating interest rates, interest rates that reset from time to time, and/or interest-only payment features that expire over time. These terms, coupled with rising interest rates, have caused an increasing number of homeowners to default on their mortgages. Purchasers of mortgage-backed securities collateralized by mortgage pools that include risky sub-prime residential mortgages have experienced severe losses as a result of the defaults and such losses have had a negative impact on the CMBS market.

39

Federal Income Tax Risks

Our failure to maintain our qualification as a REIT would adversely affect our operations and our ability to make distributions.

We are currently taxed as a REIT under the Internal Revenue Code. Our ability to maintain our qualification as a REIT will depend upon our ability to meet requirements regarding our organization and ownership, distributions of our income, the nature and diversification of our income and assets and other tests imposed by the Internal Revenue Code. Future legislative, judicial or administrative changes to the federal income tax laws could be applied retroactively, which could result in our disqualification as a REIT. If we fail to qualify as a REIT for any taxable year, we will be subject to federal income tax on our taxable income at corporate rates. In addition, we would generally be disqualified from treatment as a REIT for the four taxable years following the year of losing our REIT status. Losing our REIT status would reduce our net earnings available for investment or distribution to you because of the additional tax liability. In addition, distributions to you would no longer qualify for the dividends paid deduction, and we would no longer be required to make distributions. If we lose our REIT status, we might be required to borrow funds or liquidate some investments in order to pay the applicable tax. Our failure to qualify as a REIT would adversely affect the return on your investment.

Re-characterization of sale-leaseback transactions may cause us to lose our REIT status.

We may purchase properties and lease them back to the sellers of such properties. The Internal Revenue Service could challenge our characterization of certain leases in any such sale-leaseback transactions as “true leases,” which allows us to be treated as the owner of the property for federal income tax purposes. In the event that any sale-leaseback transaction is challenged and re-characterized as a financing transaction or loan for federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed. If a sale-leaseback transaction were so re-characterized, we might fail to satisfy the REIT qualification “asset tests” or the “income tests” and, consequently, lose our REIT status effective with the year of re-characterization. Alternatively, such a recharacterization could cause the amount of our REIT taxable income to be recalculated, which might also cause us to fail to meet the distribution requirement for a taxable year and thus lose our REIT status.

You may have current tax liability on distributions you elect to reinvest in our common stock.

If you participate in our DRIP, you will be deemed to have received, and for income tax purposes will be taxed on, the amount reinvested in shares of our common stock to the extent the amount reinvested was not a tax-free return of capital. In addition, you will be treated, for tax purposes, as having received an additional distribution to the extent the shares are purchased at a discount to fair market value. Such an additional deemed distribution could cause you to be subject to additional income tax liability. Unless you are a tax-exempt entity, you may have to use funds from other sources to pay your tax liability arising as a result of the distributions reinvested in our shares.

Distributions payable by REITs do not qualify for the reduced tax rates that apply to other corporate distributions.

Tax legislation enacted in 2003, amended in 2005 and extended by the Tax Relief Unemployment Insurance Reauthorization, and Job Creation Act of 2010, generally reduced the maximum U.S. federal income tax rate for distributions payable by corporations to domestic stockholders that are individuals, trusts or estates to 15% prior to 2013. On January 3, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012, extending such 15% qualified dividend rate for 2013 and subsequent taxable years for those unmarried individuals with income under $400,000 and for married couples with income under $450,000. For those with income above such thresholds, the qualified dividend rate is 20%.

Distributions payable by REITs, however, generally continue to be taxed at the normal rate applicable to the recipient, rather than the 15% or 20% preferential rate. Our distributions (other than capital gain dividends) will be taxed as ordinary income, not at the 15% or 20% preferential rate, to the extent they are from our current or accumulated earnings and profits, and may be subject to the 3.8% net investment income tax discussed further below. To the extent distributions exceed our current or accumulated earnings and profits, they will be treated first as a tax-free return of capital, reducing the tax basis in each U.S. stockholder’s shares (but not below zero). Any distributions in excess of a U.S. stockholder’s tax basis will be taxed as gain from the sale of shares. You should discuss the difference in treatment of REIT distributions and regular corporate distributions with your tax advisor.

40

If our operating partnership fails to maintain its status as a partnership or disregarded entity, its income may be subject to taxation, which would reduce the cash available to us for distribution to you.

We intend to cause CCPT IV OP, our operating partnership, to maintain its current status as a disregarded entity, or, in the alternative, a partnership, for federal income tax purposes. CCPT IV OP would lose its status as a disregarded entity for federal income tax purposes if it issues interests to any subsidiary we establish that is not a disregarded entity for tax purposes (a “regarded entity”) or a person other than us. If CCPT IV OP issues interests to any subsidiary we establish that is a regarded entity for tax purposes or a person other than us, we would characterize our operating partnership as a partnership for federal income tax purposes. As a disregarded entity or partnership, CCPT IV OP is not subject to federal income tax on its income. However, if the Internal Revenue Service were to successfully challenge the status of our operating partnership as an entity taxable as a partnership or as a disregarded entity, CCPT IV OP would be taxable as a corporation. In such event, this would reduce the amount of distributions that the operating partnership could make to us. This could also result in us losing REIT status, and becoming subject to a corporate-level tax on our income. This would substantially reduce the cash available to us to make distributions to you and the return on your investment. In addition, if any of the partnerships or limited liability companies through which CCPT IV OP owns its properties, in whole or in part, loses its characterization as a partnership or disregarded entity for federal income tax purposes, such partnership or limited liability company would be subject to taxation as a corporation, thereby reducing cash available for distributions to our operating partnership. Such a re-characterization of CCPT IV OP or an underlying property owner also could threaten our ability to maintain our REIT status.

In certain circumstances, we may be subject to federal and state income taxes as a REIT, which would reduce our cash available for distribution to you.

Even if we maintain our qualification as a REIT, we may be subject to federal income taxes or state taxes. For example, net income from the sale of properties that are “dealer” properties sold by a REIT (a “prohibited transaction” under the Internal Revenue Code) will be subject to a 100% excise tax. Additionally, if we are not able to make sufficient distributions to eliminate our REIT taxable income, we may be subject to tax as a corporation on our undistributed REIT taxable income. We may also decide to retain income we earn from the sale or other disposition of our property and pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability. We may also be subject to state and local taxes on our income or property, either directly or at the level of our operating partnership or at the level of the other entities through which we indirectly own our assets. Any federal or state taxes we pay will reduce our cash available for distribution to you.

Legislative or regulatory action with respect to taxes could adversely affect the returns to our investors.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of the federal income tax laws applicable to investments similar to an investment in our common stock. On March 30, 2010, the President signed into law the Health Care and Education Reconciliation Act of 2010 (the “Reconciliation Act”). The Reconciliation Act requires certain stockholders who are U.S. citizens and resident aliens and certain estates and trusts to pay a 3.8% Medicare tax on, among other things, dividends on and capital gains from the sale or other disposition of shares, subject to certain exceptions. This additional tax applies broadly to essentially all dividends and all gains from dispositions of stock, including dividends from REITs and gain from dispositions of REIT stock, such as our stock.

Additional changes to the tax laws are likely to continue to occur, and we cannot assure our stockholders that any such changes will not adversely affect their taxation. Such changes could have an adverse effect on an investment in our stock or on the market value or the resale potential of our assets. Our stockholders are urged to consult with their own tax advisor with respect to the impact of recent legislation on their investment in our stock and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in shares of our stock.

Congress passed major federal tax legislation in 2003, with modifications to that legislation in 2005 and an extension of that legislation by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. One of the changes effected by that legislation generally reduced the maximum tax rate on qualified dividends paid by corporations to individuals to 15.0% through 2012. On January 3, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012, extending such 15.0% qualified dividend rate for 2013 and subsequent taxable years for those unmarried individuals with income under $400,000 and for married couples with income under $450,000. For those with income above such thresholds, the qualified dividend rate is 20.0%. REIT distributions, however, generally do not constitute qualified dividends and consequently are not eligible for this reduced maximum tax rate. Therefore, our stockholders will pay federal income tax on our distributions

41

(other than capital gain dividends or distributions which represent a return of capital for tax purposes) at the applicable “ordinary income” rate, the maximum of which is currently 39.6%. This tax on distributions would be imposed in addition to the 3.8% net investment income tax that would generally be applicable to recipients of our distributions. However, as a REIT, we generally would not be subject to federal or state corporate income taxes on that portion of our ordinary income or capital gain that we distribute currently to you, and we thus expect to avoid the “double taxation” to which other corporations are typically subject.

Although REITs continue to receive substantially better tax treatment than entities taxed as corporations, it is possible that future legislation would result in REITs having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be taxed for federal income tax purposes as a corporation. As a result, our charter provides our board of directors with the power, under certain circumstances, to revoke or otherwise terminate our REIT election and cause us to be taxed as a corporation, without the vote of our stockholders. Our board of directors has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in our stockholders’ best interest.

Complying with the REIT requirements may cause us to forego otherwise attractive opportunities.

To maintain our qualification as a REIT for federal income tax purposes, we must continually satisfy tests concerning, among other things, the sources of our income, the nature and diversification of our assets, the amounts we distribute to our stockholders and the ownership of shares of our common stock. We may be required to pay distributions to our stockholders at disadvantageous times or when we do not have funds readily available for distribution. Complying with the REIT requirements may cause us to forego otherwise attractive opportunities. In addition, we may be required to liquidate otherwise attractive investments in order to comply with the REIT requirements. Thus, compliance with the REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.

Foreign purchasers of our common stock may be subject to FIRPTA tax upon the sale of their shares.

A foreign person disposing of a U.S. real property interest, including shares of a U.S. corporation whose assets consist principally of U.S. real property interests, is generally subject to tax pursuant to the Foreign Investment in Real Property Tax Act of 1980, as amended (“FIRPTA”) on the gain recognized on the disposition. Such FIRPTA tax does not apply, however, to the disposition of stock in a REIT if the REIT is “domestically controlled.” A REIT is “domestically controlled” if less than 50% of the REIT’s stock, by value, has been owned directly or indirectly by persons who are not qualifying U.S. persons during a continuous five year period ending on the date of disposition or, if shorter, during the entire period of the REIT’s existence. We cannot assure you that we will qualify as a “domestically controlled” REIT. If we were to fail to so qualify, gain realized by foreign investors on a sale of our shares would be subject to FIRPTA tax, unless our shares were traded on an established securities market and the foreign investor did not at any time during a specified testing period directly or indirectly own more than 5% of the value of our outstanding common stock.

Distributions to foreign investors may be treated as ordinary income distributions to the extent that they are made out of current or accumulated earnings and profits.

In general, foreign investors will be subject to regular U.S. federal income tax with respect to their investment in our stock if the income derived therefrom is “effectively connected” with the foreign investor’s conduct of a trade or business in the United States. A distribution to a foreign investor that is not attributable to gain realized by us from the sale or exchange of a “U.S. real property interest” within the meaning of FIRPTA, and that we do not designate as a capital gain dividend, will be treated as an ordinary income distribution to the extent that it is made out of current or accumulated earnings and profits (as determined for U.S. federal income tax purposes). Generally, any ordinary income distribution will be subject to a U.S. withholding tax equal to 30% of the gross amount of the distribution, unless this tax is reduced by the provisions of an applicable treaty.

Foreign investors may be subject to FIRPTA tax upon the payment of a capital gain distribution.

A foreign investor also may be subject to FIRPTA tax upon the payment of any capital gain distribution by us, which distribution is attributable to gain from sales or exchanges of U.S. real property interests. Additionally, capital gain distributions paid to foreign investors, if attributable to gain from sales or exchanges of U.S. real property interests, would not be exempt from FIRPTA and would be subject to FIRPTA tax.

We encourage foreign investors to consult their tax advisor to determine the tax consequences applicable to them.

42

For qualified accounts, if an investment in our shares constitutes a prohibited transaction under the Employee Retirement Income Security Act (“ERISA”) or the Internal Revenue Code, it is possible that you may be subject to the imposition of significant excise taxes and penalties with respect to the amount invested. In order to avoid triggering additional taxes and/or penalties, if you intend to invest in our shares through pension or profit-sharing trusts or IRAs, you should consider additional factors.

If you are investing the assets of a pension, profit-sharing, 401(k), Keogh or other qualified retirement plan or the assets of an IRA in our common stock, you should satisfy yourself that, among other things:

• your investment is consistent with your fiduciary obligations under ERISA and the Internal Revenue Code;

• your investment is made in accordance with the documents and instruments governing your plan or IRA, including your plan’s investment policy;

• your investment satisfies the prudence and diversification requirements of ERISA and other applicable provisions of ERISA and the Internal Revenue Code;

• your investment will not impair the liquidity of the plan or IRA;

• your investment will not produce unrelated business taxable income for the plan or IRA;

• you will be able to value the assets of the plan annually in accordance with ERISA requirements and applicable provisions of the plan or IRA; and

• your investment will not constitute a prohibited transaction under Section 406 of ERISA or Section 4975 of the Internal Revenue Code.

Failure to satisfy the fiduciary standards of conduct and other applicable requirements of ERISA and the Internal Revenue Code may result in the imposition of civil and criminal penalties and could subject the fiduciary to equitable remedies. In addition, if an investment in our shares constitutes a prohibited transaction under ERISA or the Internal Revenue Code, the fiduciary who authorized or directed the investment may be subject to (i) the imposition of civil and criminal penalties,(ii) equitable remedies, and (iii) the imposition of excise taxes with respect to the amount invested.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

As of December 31, 2014, we owned 759 properties located in 45 states comprising approximately 20.2 million rentable square feet of commercial space including square feet of buildings on land parcels subject to ground leases. As of December 31, 2014, 672 of the properties were freestanding, single-tenant retail properties, 77 of the properties were multi-tenant retail properties, seven of the properties were office/industrial properties, and three of the properties were medical office buildings. As of December 31, 2014, 99% of our rentable square feet was leased, with a weighted average remaining lease term of 11.6 years. As of December 31, 2014, we had outstanding debt of $1.5 billion, some of which is secured by certain properties in our portfolio and their related tenant leases on which the debt was placed.

In addition, through an unconsolidated joint venture arrangement, as of December 31, 2014, we had an interest in one property comprising 176,000 rentable square feet of commercial space for an aggregate investment of $19.2 million (the “Unconsolidated Joint Venture”).

43

Property Statistics

The following table shows the tenant diversification of our real estate portfolio, based on gross annualized rental revenue, as of December 31, 2014:

			2014 Gross		Percentage of
	Total		Annualized		2014 Gross
	Number	Leased	Rental Revenue		Annualized
Tenant	of Leases (1)	Square Feet (1)(2)	(in thousands)		Rental Revenue
Walgreens – drugstore	67	979,129	$	23,992	8	%
Dollar General – discount store	167	1,617,808	16,360		6	%
Family Dollar – discount store	132	1,114,534	13,534		5	%
CVS – drugstore	45	565,274	12,634		4	%
United Oil – gas and convenience	55	71,741	11,824		4	%
PetSmart – pet supply	30	590,451	8,798		3	%
Home Depot – home and garden	4	458,825	7,509		3	%
L.A. Fitness – fitness	8	384,571	7,061		2	%
Dick's Sporting Goods – sporting and hobby	11	559,535	6,772		2	%
Lowe's – home and garden	9	1,123,509	6,565		2	%
Other	896	12,425,222	176,826		61	%
	1,424	19,890,599	$	291,875	100	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

The following table shows the tenant industry diversification of our real estate portfolio, based on gross annualized rental revenue, as of December 31, 2014: 

			2014 Gross		Percentage of
	Total		Annualized		2014 Gross
	Number	Leased	Rental Revenue		Annualized
Industry	of Leases (1)	Square Feet (1) (2)	(in thousands)		Rental Revenue
Discount store	360	4,390,982	$	43,775	15	%
Pharmacy	114	1,570,256	37,123		13	%
Home and garden	43	2,237,430	22,321		8	%
Gas & convenience	85	212,208	21,835		7	%
Grocery	41	1,658,939	21,610		7	%
Sporting and hobby	25	1,250,795	15,021		5	%
Apparel & jewelry	75	718,743	11,289		4	%
Fitness	19	576,991	11,413		4	%
Pet supply	43	750,263	11,274		4	%
Casual dining	56	315,499	9,930		3	%
Other	563	6,208,493	86,284		30	%
	1,424	19,890,599	$	291,875	100	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

44

The following table shows the geographic diversification of our real estate portfolio, based on gross annualized rental revenue, as of December 31, 2014:

	Total		2014 Gross		Percentage of
	Number		Annualized		2014 Gross
	of	Rentable	Rental Revenue		Annualized
Location	Properties (1)	Square Feet (1) (2)	(in thousands)		Rental Revenue
California	75	982,209	$	35,676	12	%
Texas	92	1,901,323	30,325		10	%
Georgia	29	1,401,864	17,493		6	%
Ohio	47	1,471,443	17,409		6	%
Florida	52	1,300,110	16,506		6	%
Illinois	21	1,019,911	13,884		5	%
New York	11	362,609	13,808		5	%
Alabama	59	1,105,478	12,599		4	%
North Carolina	27	855,829	10,813		4	%
Pennsylvania	10	706,604	9,541		3	%
Other	336	9,063,303	113,821		39	%
	759	20,170,683	$	291,875	100	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

As of December 31, 2014, no single property’s gross annualized rental revenues accounted for 10% or more of our total gross annualized rental revenue.  In addition, no single property accounted for 10% or more of our total assets as of December 31, 2014.

Leases

Although there are variations in the specific terms of the leases of our properties, the following is a summary of the general structure of our leases. Generally, the leases of the properties owned provide for initial terms of 10 to 20 years. As of December 31, 2014, the weighted average remaining lease term was 11.6 years. The properties generally are leased under net leases pursuant to which the tenant bears responsibility for substantially all property costs and expenses associated with ongoing maintenance and operation, including utilities, property taxes and insurance. However, certain of the leases require us to maintain the roof and structure of the building. The leases of the properties provide for annual rental payments (payable in monthly installments) ranging from $6,000 to $5.9 million (average of $205,000). Certain leases provide for limited increases in rent as a result of fixed increases or increases in the consumer price index.

Generally, the property leases provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions as the initial lease term.

45

The following table shows lease expirations of our real estate portfolio, as of December 31, 2014, during each of the next ten years and thereafter, assuming no exercise of renewal options:

			2014 Gross
	Total		Annualized		Percentage of
	Number	Leased	Rental Revenue		2014 Gross
	of Leases	Square Feet	Expiring		Annualized
Year of Lease Expiration	Expiring (1)	Expiring (1) (2)	(in thousands)		Rental Revenue
2015	45	167,082	$	2,568	1	%
2016	77	445,768	6,588		2	%
2017	73	570,051	7,690		3	%
2018	126	771,822	12,849		4	%
2019	103	951,710	13,949		5	%
2020	58	555,377	8,271		3	%
2021	44	521,758	9,203		3	%
2022	66	1,343,491	15,709		5	%
2023	82	1,856,305	23,976		8	%
2024	70	1,456,243	20,138		7	%
Thereafter	680	11,250,992	170,934		59	%
	1,424	19,890,599	$	291,875	100	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

Credit Facility and Notes Payable Information

As of December 31, 2014, we had $1.5 billion of debt outstanding, consisting of $566.5 million outstanding in fixed rate mortgage loans (the “Fixed Rate Debt”), including $38.7 million outstanding of variable rate debt subject to interest rate swap agreements, and $900.0 million outstanding under our amended and restated unsecured credit facility with JPMorgan Chase Bank, N.A., as administrative agent (the “Credit Facility”). The Fixed Rate Debt has annual interest rates ranging from 3.35% to 4.98% per annum and various maturity dates ranging from June 2018 through December 2024. The Credit Facility provides borrowings of up to$900.0 million, which includes a $300.0 million unsecured term loan (the “Term Loan”) and up to $600.0 million in unsecured revolving loans (the “Revolving Loans”). The Term Loan matures on August 15, 2018 and the Revolving Loans mature on August 15, 2017; however, we may elect to extend the maturity date for the Revolving Loans to August 15, 2018 subject to satisfying certain conditions set forth in the amended and restated unsecured credit agreement (the “Amended and Restated Credit Agreement”). We executed a swap agreement associated with the Term Loan, which had the effect of fixing the variable interest rate per annum on August 15, 2013 through the maturity date of the loan at 1.713% (the “Swap Rate”). The Term Loan bears interest at the Swap Rate plus an interest rate spread ranging from 1.65% to 2.50%, which totaled 3.36% as of December 31, 2014 based on our leverage ratio. As of December 31, 2014, the weighted average interest rate in effect for the Revolving Loans was 1.97%. There was $600.0 million outstanding under the Revolving Loans as of December 31, 2014.

The total debt outstanding has a weighted average years to maturity of 5.0 years and weighted average interest rate of 3.1%. The aggregate balance of gross real estate assets, net of gross liabilities, securing the total debt outstanding was $944.6 million as of December 31, 2014, which excluded the assets that are part of the Credit Facility’s underlying collateral pool of $2.2 billion. See Note 7 to our consolidated financial statements that are part of this Annual Report on Form 10-K for more information regarding the debt outstanding.

The Amended and Restated Credit Agreement and Fixed Rate Debt contain customary representations, warranties, borrowing conditions and affirmative, negative and financial covenants, including minimum net worth, debt service coverage and leverage ratio requirements and dividend payout and REIT status requirements. The Amended and Restated Credit Agreement also includes usual and customary events of default and remedies for facilities of this nature.

46

ITEM 3. LEGAL PROCEEDINGS

In the ordinary course of business, we may become subject to litigation or claims. We are not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to our business to which we are a party or to which our properties are the subject.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

47

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

As of March 25, 2015, we had approximately 307.0 million shares of common stock outstanding, held by a total of 61,260 stockholders of record. The number of stockholders is based on the records of DST Systems, Inc., who serves as our registrar and transfer agent.

There is no established trading market for our common stock. Therefore, there is a risk that a stockholder may not be able to sell our stock at a time or price acceptable to the stockholder, or at all. Unless and until our shares are listed on a national securities exchange, we do not expect that a public market for the shares will develop. Pursuant to the DRIP Offering, we are selling shares of our common stock to the public at a price of $9.50 per share.

To assist fiduciaries of tax-qualified pension, stock bonus or profit-sharing plans, employee benefit plans and annuities described in Section 403(a) or (b) of the Internal Revenue Code or an individual retirement account or annuity described in Section 408 of the Internal Revenue Code subject to the annual reporting requirements of ERISA and IRA trustees or custodians in preparation of reports relating to an investment in the shares, we intend to provide reports of the per share estimated value of our common stock to those fiduciaries who request such reports. In addition, we are required pursuant to FINRA Rule 5110(f)(2)(m) to disclose in each annual report distributed to investors a per share estimated value of the shares, the method by which it was developed and the date of the data used to develop the estimated value. For these purposes, the deemed value of our common stock is $10.00 per share as of December 31, 2014. However, as set forth above, there is no public trading market for the shares at this time and stockholders may not receive $10.00 per share if a market did exist. Unless otherwise required due to applicable regulations, until October 4, 2015 (18 months after the termination of the Offering), we intend to use the most recent offering price as the per share estimated value. Beginning October 4, 2015, the value of the properties and other assets will be based on valuations of either our assets or us as a whole, whichever valuation method our board of directors determines to be appropriate, which may include independent valuations of our properties or of our enterprise as a whole; provided, however, that the timing and methodology of such valuations are subject to applicable regulatory requirements.

Share Redemption Program

Our board of directors has adopted a share redemption program that enables our stockholders to sell their shares to us in limited circumstances. Our share redemption program permits stockholders to sell their shares back to us after they have held them for at least one year, subject to the conditions and limitations described below.

Our common stock is currently not listed on a national securities exchange, and we will not seek to list our stock unless and until such time as our independent directors believe that the listing of our stock would be in the best interest of our stockholders. In order to provide stockholders with the benefit of interim liquidity, stockholders who have held their shares for at least one year may present a portion consisting of at least the lesser of (1) 25% of the holder’s shares; or (2) a number of shares with an aggregate redemption price of at least $2,500 to us for redemption at any time in accordance with the procedures outlined below. At that time, we may, subject to the conditions and limitations described below, redeem the shares presented for redemption for cash to the extent that we have sufficient funds available to us to fund such redemption. We will not pay to our board of directors, or our advisor or its affiliates any fees to complete any transactions under our share redemption program.

Until such time as our board of directors determines a reasonable estimate of the value of our shares, the redemption price per share (other than for shares purchased pursuant to our DRIP) will depend on the price paid for the shares and the length of time the stockholder has held such shares as follows: after one year from the purchase date, 95% of the amount paid for each share; after two years from the purchase date, 97.5% of the amount paid for each share; and after three years from the purchase date, 100% of the amount paid for each share. During this time period, the redemption price for shares purchased pursuant to our DRIP will be the amount paid for such shares. (In each case, the redemption price will be adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). Accordingly, the redemption price will reflect a stockholder’s reduced purchase price if such stockholder received discounted or waived selling commissions and/or a waived dealer manager fee. At any time we are engaged in an offering of our shares, the per share price for shares purchased under our redemption program will always be equal to or lower than the applicable per share offering price.

After such time as our board of directors has determined a reasonable estimated value of our shares, the per share redemption price (other than for shares purchased pursuant to our DRIP) will depend on the length of time the stockholder has held such shares as follows: after one year from the purchase date, 95% of the Estimated Share Value (defined below); after two

48

years from the purchase date, 97.5% of the Estimated Share Value; and after three years from the purchase date, 100% of the Estimated Share Value. During this time period, the redemption price for shares purchased pursuant to our DRIP will be 100% of the Estimated Share Value. (In each case, the redemption price will be adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to our common stock). For purposes of establishing the redemption price per share, “Estimated Share Value” shall mean the most recently disclosed reasonable estimated value of our shares of common stock as determined by our board of directors, including a majority of our independent directors.

In determining the redemption price, we consider shares to have been redeemed from a stockholder’s account on a first-in, first-out basis. Our board of directors will announce any redemption price adjustment and the time period of its effectiveness as a part of its regular communications with our stockholders. If we have sold property and have made one or more special distributions to our stockholders of all or a portion of the net proceeds from such sales subsequent to the establishment of the Estimated Share Value, the per share redemption price will be reduced by the net sale proceeds per share distributed to stockholders prior to the redemption date. Our board of directors will, in its sole discretion, determine which distributions, if any, constitute a special distribution. While our board of directors does not have specific criteria for determining a special distribution, we expect that a special distribution will only occur upon the sale of a property and the subsequent distribution of the net sale proceeds. In no event will the Estimated Share Value established for purposes of our share redemption program exceed the then-current estimated share value established for purposes of our DRIP.

Upon receipt of a request for redemption, we may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. We will not redeem any shares subject to a lien. Any costs in conducting the Uniform Commercial Code search will be borne by us.

We may waive the one-year holding period requirement upon request due to a stockholder’s death or bankruptcy or other exigent circumstances as determined by our advisor. In the event of the death of a stockholder, we must receive notice from the stockholder’s estate within 270 days after the stockholder’s death. In addition, in the event that a stockholder redeems all of their shares, any shares that were purchased pursuant to our DRIP will be excluded from the one-year holding requirement. Also, for purposes of the one-year-holding period, limited partners of our operating partnership who exchanged their limited partnership units for shares of our common stock will be deemed to have owned their shares as of the date our operating partnership’s units were issued. Shares redeemed in connection with a stockholder’s death, during the term of the Offerings and until such time as our board of directors determines a reasonable estimated value of our shares, will be redeemed at a purchase price equal to 100% of the amount actually paid for the shares. Shares redeemed in connection with a stockholder’s death, after such time as our board of directors has determined a reasonable estimated value of our shares, will be redeemed at a purchase price per share equal to 100% of the Estimated Share Value. Shares redeemed in connection with a stockholder’s bankruptcy or other exigent circumstance within one year from the purchase date will be redeemed at a price per share equal to the price per share we would pay had the stockholder held the shares for one year from the purchase date.

In the event that a stockholder requests a redemption of all of their shares, and such stockholder is participating in our DRIP, the stockholder will be deemed to have notified us, at the time they submit their redemption request, that such stockholder is terminating its participation in our DRIP, and has elected to receive future distributions in cash.  This election will continue in effect even if less than all of such stockholder’s shares are redeemed unless they notify us that they wish to resume their participation in our DRIP.

We will limit the number of shares redeemed pursuant to our share redemption program as follows: (1) we will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited to the net proceeds we receive from the sale of shares under our DRIP. In an effort to accommodate redemption requests throughout the calendar year, we intend to limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12 month period ending on the last day of the fiscal quarter, and funding for redemptions for each quarter generally will be limited to the net proceeds we receive from the sale of shares in the respective quarter under our DRIP; however, our management may waive these quarterly limitations in its sole discretion, subject to the 5% cap on the number of shares we may redeem during the respective trailing 12 month period. Any of the foregoing limits might prevent us from accommodating all redemption requests made in any quarter, in which case quarterly redemptions will be made pro rata, except as described below. Our management also reserves the right, in its sole discretion at any time, and from time to time, to reject any request for redemption for any reason.

We will redeem our shares no later than the end of the month following the end of each fiscal quarter. Requests for redemption must be received on or prior to the end of the fiscal quarter in order for us to repurchase the shares in the month following the end of that fiscal quarter. A stockholder may withdraw their request to have shares redeemed, but all such requests generally must be submitted prior to the last business day of the applicable fiscal quarter. Any redemption capacity that is not used as a result of the withdrawal or rejection of redemption requests may be used to satisfy the redemption requests of

49

other stockholders received for that fiscal quarter, and such redemption payments may be made at a later time than when that quarter’s redemption payments are made.

We will determine whether we have sufficient funds and/or shares available as soon as practicable after the end of each fiscal quarter, but in any event prior to the applicable payment date. If we cannot purchase all shares presented for redemption in any fiscal quarter, based upon insufficient cash available and/or the limit on the number of shares we may redeem during any quarter or year, we will give priority to the redemption of deceased stockholders’ shares. (While deceased stockholders’ shares will be included in calculating the maximum number of shares that may be redeemed in any annual or quarterly period, they will not be subject to the annual or quarterly percentage caps; therefore, if the volume of requests to redeem deceased stockholders’ shares in a particular quarter were large enough to cause the annual or quarterly percentage caps to be exceeded, even if no other redemption requests were processed, the redemptions of deceased stockholders’ shares would be completed in full, assuming sufficient proceeds from the sale of shares under our DRIP were available. If sufficient proceeds from the sale of shares under our DRIP were not available to pay all such redemptions in full, the requests to redeem deceased stockholders’ shares would be honored on a pro rata basis.) We next will give priority to requests for full redemption of accounts with a balance of 250 shares or less at the time we receive the request, in order to reduce the expense of maintaining small accounts. Thereafter, we will honor the remaining redemption requests on a pro rata basis. Following such quarterly redemption period, if a stockholder would like to resubmit the unsatisfied portion of the prior request for redemption, such stockholder must submit a new request for redemption of such shares prior to the last day of the new quarter. Unfulfilled requests for redemption will not be carried over automatically to subsequent redemption periods.

Our board of directors may choose to amend, suspend or terminate our share redemption program at any time upon 30 days’ notice to our stockholders. Additionally, we will be required to discontinue sales of shares under our DRIP Offering on the date we sell all of the shares registered for sale under the DRIP Offering, unless we file a new registration statement with the SEC and applicable states. Because the redemption of shares will be funded with the net proceeds we receive from the sale of shares under our DRIP Offering, the discontinuance or termination of our DRIP Offering will adversely affect our ability to redeem shares under the share redemption program. We will notify our stockholders of such developments (1) in our next annual or quarterly report or (2) by means of a separate mailing, accompanied by disclosure in a current or periodic report under the Exchange Act.

Our share redemption program is only intended to provide interim liquidity for stockholders until a liquidity event occurs, such as the listing of the shares on a national securities exchange, or our merger with a listed company. The share redemption program will be terminated if the shares become listed on a national securities exchange. We cannot guarantee that a liquidity event will occur.

The shares we redeem under our share redemption program are canceled and returned to the status of authorized but unissued shares. We do not intend to resell such shares to the public unless they are first registered with the SEC under the Securities Act and under appropriate state securities laws or otherwise sold in compliance with such laws.

During the year ended December 31, 2014, we received valid redemption requests under our share redemption program totaling approximately 1.9 million shares, of which we redeemed approximately 1.1 million shares as of December 31, 2014 for $10.6 million ($9.64 per share) and approximately 818,000 shares subsequent to December 31, 2014 for $7.9 million ($9.64 per share). During the year ended December 31, 2013, we received valid redemption requests under our share redemption program totaling approximately 244,000 shares, of which we redeemed approximately 123,000 shares as of December 31, 2013 for $1.2 million ($9.64 per share) and approximately 121,000 shares subsequent to December 31, 2013 for $1.2 million ($9.75 per share). A valid redemption request is one that complies with the applicable requirements and guidelines of our current share redemption program set forth above. We funded such redemptions with proceeds from our DRIP. During the years ended December 31, 2014 and 2013, we issued approximately 11.0 million and 2.7 million shares of common stock, respectively, under the DRIP portion of the Offering and the DRIP Offering, for proceeds of $104.3 million and $25.7 million, respectively, which was recorded as redeemable common stock on the consolidated balance sheets, net of any redemptions paid.

50

During the three-month period ended December 31, 2014, we redeemed shares as follows:

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 Under the Plans or Programs
October 1, 2014 - October 31, 2014	5,001	$	10.00	5,001	(1)
November 1, 2014 - November 30, 2014	445,080	$	9.80	445,080	(1)
December 1, 2014 - December 31, 2014	424	$	9.50	424	(1)
Total	450,505			450,505	(1)

(1) A description of the maximum number of shares that may be purchased under our redemption program is included in the narrative preceding this table.

Distributions

We elected to be taxed, and currently qualify, as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2012. As a REIT, we have made, and intend to continue to make, distributions each taxable year equal to at least 90% of our taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). One of our primary goals is to pay regular (monthly) distributions to our stockholders.

For federal income tax purposes, distributions to common stockholders are characterized as ordinary dividends, capital gain distributions, or nontaxable distributions. To the extent that we make a distribution in excess of our current or accumulated earnings and profits, the distribution will be a nontaxable return of capital, reducing the tax basis in each U.S. stockholder’s shares.  In addition, the amount of distributions in excess of U.S. stockholders’ tax basis in their shares will be taxable as a capital gain realized from the sale of those shares.

The following table shows the character of the distributions we paid on a per share basis during the years ended December 31, 2014, 2013 and 2012 (in thousands, except per share data):

	Total		Distributions Paid		Nontaxable Distributions		Ordinary Dividends
	Distributions Paid		per Common Share		per Common Share		per Common Share
2014	$	177,017	$	0.61	$	0.32	$	0.29
2013	$	47,470	$	0.53	$	0.21	$	0.32
2012	$	3,925	$	0.46	$	0.13	$	0.33

Use of Public Offering Proceeds

Pursuant to a Registration Statement on Form S-11 (Registration No. 333-169533) filed under the Securities Act and declared effective by the SEC on January 26, 2012, we commenced the Offering of up to a maximum of $2.975 billion in shares of common stock. On November 25, 2013, we reallocated $400.0 million in shares from our DRIP to the primary portion of the Offering, and on February 18, 2014, we reallocated an additional $23.0 million in shares from the DRIP to the primary portion of the Offering. As a result of these reallocations, we offered up to a maximum of approximately 292.3 million shares of our common stock at a price of $10.00 per share in the primary portion of the Offering and up to approximately 5.5 million additional shares to be issued pursuant to the DRIP portion of the Offering at a price of $9.50 per share. As of February 25, 2014, we no longer accepted subscription agreements in connection with the Offering because we had received subscription agreements that allowed us to reach the maximum primary offering. We ceased issuing shares in the Offering on April 4, 2014.

In addition, we registered 26.0 million shares of common stock under the DRIP Offering pursuant to a Registration Statement on Form S-3 under the Securities Act (Registration No. 333-192958), which was filed with the SEC on December 19, 2013 and automatically became effective with the SEC upon filing. We will continue to issue shares of common stock under the DRIP Offering. As of December 31, 2014, we had issued approximately 306.1 million shares of our common stock in the Offerings for gross offering proceeds of $3.0 billion before offering costs and selling commissions of $306.0 million, out of which we paid $256.5 million in selling commissions and dealer manager fees and $49.5 million in organization and offering costs to CR IV Advisors or its affiliates. With the net offering proceeds and indebtedness, we acquired $3.9 billion in real estate and related assets and incurred acquisition costs of $114.4 million, including costs of $83.9 million in acquisition fees and expense reimbursements to CR IV Advisors. As of March 25, 2015, we had received $3.1 billion in gross offering proceeds through the issuance of approximately 309.0 million shares of our common stock in the Offerings.

51

ITEM 6. SELECTED FINANCIAL DATA

The following data should be read in conjunction with our consolidated financial statements and the notes thereto and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” appearing elsewhere in this Annual Report on Form 10-K. The selected financial data (in thousands, except share and per share amounts) presented below was derived from our consolidated financial statements.

	Year Ended December 31,
	2014			2013			2012			2011
Balance Sheet Data:
Total investment in real estate and related assets, net	$	3,923,840		$	2,203,056		$	520,083		$	—
Cash and cash equivalents	$	55,287		$	300,574		$	13,895		$	200
Restricted cash	$	4,560		$	8,193		$	523		$	—
Total assets	$	4,039,147		$	2,551,649		$	542,200		$	—
Notes payable and credit facility	$	1,466,507		$	696,946		$	274,594		$	—
Due to affiliates	$	5,473		$	7,512		$	2,156		$	—
Acquired below market lease intangibles, net	$	55,535		$	37,485		$	7,810		$	—
Total liabilities	$	1,590,769		$	783,193		$	294,721		$	—
Stockholders’ equity	$	2,326,406		$	1,741,972		$	245,515		$	200
Operating Data:
Total revenue	$	256,282		$	102,557		$	7,837		$	—
General and administrative expenses	$	11,510		$	7,566		$	1,503		$	—
Property operating expenses	$	39,035		$	13,507		$	553		$	—
Advisory fees and expenses	$	24,142		$	10,549		$	812		$	—
Acquisition-related expenses	$	51,763		$	48,286		$	14,371		$	—
Depreciation and amortization	$	84,402		$	33,345		$	2,614		$	—
Operating income (loss)	$	45,430		$	(10,696	)	$	(12,016	)	$	—
Interest expense and other	$	(34,260	)	$	(22,184	)	$	(1,728	)	$	—
Net income (loss)	$	11,170		$	(32,880	)	$	(13,744	)	$	—
Cash Flow Data:
Net cash provided by (used in) operating activities	$	89,086		$	7,570		$	(8,717	)	$	—
Net cash used in investing activities	$	(1,740,355	)	$	(1,702,957	)	$	(511,223	)	$	—
Net cash provided by financing activities	$	1,405,982		$	1,982,066		$	533,635		$	—
Per Share Data:
Net income (loss) - basic and diluted	$	0.04		$	(0.36	)	$	(1.60	)	$	—
Distributions declared per common share	$	0.63		$	0.63		$	0.63		$	—
Weighted average shares outstanding - basic and diluted	292,072,088			90,330,927			8,578,494			20,000

52

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the “Item 6. Selected Financial Data” of this Annual Report on Form 10-K and our accompanying consolidated financial statements and notes thereto. See also the “Cautionary Note Regarding Forward-Looking Statements” section preceding Part I.

Overview

We were formed on July 27, 2010, and we elected to be taxed, and currently qualify, as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2012. We commenced our principal operations on April 13, 2012, when we satisfied the conditions of our escrow agreement and issued approximately 308,000 shares of our common stock. We have no paid employees and are externally advised and managed by CR IV Advisors.

We ceased issuing shares in our Offering on April 4, 2014 and will continue to issue shares of common stock under the DRIP Offering until such time as our shares are listed on a national securities exchange or the DRIP Offering is otherwise terminated by our board of directors. We expect that property acquisitions in 2015 and future periods, if any, will be funded by proceeds from the strategic sale of properties and other investments, financing of the acquired properties, proceeds from our DRIP Offering and cash flows from operations.

On February 7, 2014, ARCP acquired Cole pursuant to a transaction whereby Cole merged with and into the Merger Sub, with Merger Sub surviving as a wholly-owned subsidiary of ARCP. ARCP is a self-managed publicly traded Maryland corporation listed on The NASDAQ Global Select Market, focused on acquiring and owning single tenant freestanding commercial properties subject to net leases with high credit quality tenants. As a result of the ARCP Merger, ARCP indirectly owns and/or controls our external advisor, CR IV Advisors, the dealer manager for the Offering, Cole Capital Corporation, our property manager, CREI Advisors, and our sponsor, Cole Capital.

Our operating results and cash flows are primarily influenced by rental income from our commercial properties, interest expense on our property indebtedness and acquisition and operating expenses. Rental and other property income accounted for 87% and 88% of our total revenue for the years ended December 31, 2014 and 2013, respectively. As 99% of our rentable square feet was under lease as of December 31, 2014, with a weighted average remaining lease term of 11.6 years, we believe our exposure to changes in commercial rental rates on our portfolio is substantially mitigated, except for vacancies caused by tenant bankruptcies or other factors. CR IV Advisors regularly monitors the creditworthiness of our tenants by reviewing the tenant’s financial results, credit rating agency reports, when available, on the tenant or guarantor, the operating history of the property with such tenant, the tenant’s market share and track record within its industry segment, the general health and outlook of the tenant’s industry segment, and other information for changes and possible trends. If CR IV Advisors identifies significant changes or trends that may adversely affect the creditworthiness of a tenant, it will gather a more in-depth knowledge of the tenant’s financial condition and, if necessary, attempt to mitigate the tenant credit risk by evaluating the possible sale of the property, or identifying a possible replacement tenant should the current tenant fail to perform on the lease.

As of December 31, 2014, the debt leverage ratio of our consolidated real estate assets, which is the ratio of debt to total gross real estate and related assets net of gross intangible lease liabilities, was 37%. As we acquire additional commercial real estate, we will be subject to changes in real estate prices and changes in interest rates on any new indebtedness used to acquire such properties. We may manage our risk of changes in real estate prices on future property acquisitions, when applicable, by entering into purchase agreements and loan commitments simultaneously, or through loan assumption, so that our operating yield is determinable at the time we enter into a purchase agreement, by contracting with developers for future delivery of properties or by entering into sale-leaseback transactions. We manage our interest rate risk by monitoring the interest rate environment in connection with our future property acquisitions, when applicable, or upcoming debt maturities to determine the appropriate financing or refinancing terms, which may include fixed rate loans, variable rate loans or interest rate hedges. If we are unable to acquire suitable properties or obtain suitable financing terms for future acquisitions or refinancing, our results of operations may be adversely affected.

Recent Market Conditions

Financial conditions surrounding the real estate industry have been favorable amid low interest rates and increased lending from banks, insurance companies, and CMBS conduits.  The debt market remains sensitive to the macro environment, including Federal Reserve policy, which could tighten in the second half of 2015 as the unemployment rate continues to recede. We expect that financial conditions will remain favorable, as low inflation and increased interest by foreign investors targeting U.S. investments keep interest rates low. However, if financial conditions were to deteriorate, we may experience more stringent lending criteria, which may affect our ability to finance certain property acquisitions or refinance any debt at maturity. Additionally, for properties for which we are able to obtain financing, the interest rates and other terms on such loans may be

53

unacceptable. We expect to manage the current mortgage lending environment by considering alternative lending sources, including securitized debt, fixed rate loans, borrowings under the Credit Facility, short-term variable rate loans, assumed mortgage loans in connection with property acquisitions, interest rate lock or swap agreements, or any combination of the foregoing.

Commercial real estate fundamentals continue to strengthen, as a healthy pace of job creation has supported gains in office absorption, retail sales, and warehouse distribution. Although construction has increased, it remains historically low; as a result, incremental demand growth has helped to reduce vacancy rates and support accelerating rental growth.  Improving fundamentals have resulted in gains in property values; however, in many markets property values continue to be below replacement costs. As of December 31, 2014, 99% of our rentable square feet was under lease, and we expect that occupancy will remain high as the real estate recovery continues.  However, if recent improvements in the economy reverse course, we may experience vacancies or be required to reduce rental rates on occupied space. If we do experience vacancies, we will actively seek to lease our vacant space; nevertheless, such space may be leased at lower rental rates and for shorter lease terms than our current leases provide.

Application of Critical Accounting Policies

Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If management’s judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus, resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses.

The critical accounting policies outlined below have been discussed with members of the audit committee of the board of directors.

Investment in and Valuation of Real Estate Assets

Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition-related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred.

We are required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of our real estate assets by class are generally as follows:

Buildings	40 years
Tenant improvements	Lesser of useful life or lease term
Intangible lease assets	Lease term

We continually monitor events and changes in circumstances that could indicate that the carrying amounts of our real estate assets may not be recoverable. Impairment indicators that we consider include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, we assess the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, we will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2014, 2013 or 2012.

When developing estimates of expected future cash flows, we make certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization

54

and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of our real estate assets.

When a real estate asset is identified by us as held for sale, we will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. There were no assets identified as held for sale as of December 31, 2014, 2013 or 2012.

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, we allocate the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition-related expenses are expensed as incurred. We utilize independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and building). We obtain an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to our management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by our management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not we expect a tenant to execute a bargain renewal option, we evaluate economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, our relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market lease intangibles relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

We have acquired, and may continue to acquire, certain properties subject to contingent consideration arrangements that may obligate us to pay additional consideration to the seller based on the outcome of future events. Additionally, we may acquire certain properties for which we fund certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrow funds to us or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair value, and any changes to the estimated fair value, subsequent to acquisition, are reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management. The respective amounts recorded are carried at fair value with any changes in fair value included in net income.

55

We estimate the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable are initially recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance will be amortized to interest expense over the term of the respective mortgage note payable.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of our purchase price, which could impact our results of operations.

Revenue Recognition

Certain properties have leases where minimum rental payments increase during the term of the lease. We record rental income for the full term of each lease on a straight-line basis. When we acquire a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. We defer the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred.

Income Taxes

We elected to be taxed, and currently qualify, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code commencing with our taxable year ended December 31, 2012. We will generally not be subject to federal corporate income tax to the extent we distribute our taxable income to our stockholders, and so long as we, among other things, distribute at least 90% of our annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains) to our stockholders. REITs are subject to a number of other organizational and operational requirements. Even if we maintain our qualification for taxation as a REIT, we or our subsidiaries may be subject to certain state and local taxes on our income and property, and federal income and excise taxes on our undistributed income.

Derivative Instruments and Hedging Activities

We account for our derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of the derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss). The changes in fair value for derivative instruments that are not designated as a hedge or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations.

Results of Operations

Our results of operations are influenced by the timing of acquisitions and the operating performance of our real estate assets, including the Consolidated Joint Venture. Due to the volume of acquisitions during the year ended December 31, 2014, a discussion of same store sales is not considered meaningful and as such is not included in the results of operations. The following table shows the property statistics of our real estate assets as of December 31, 2014, 2013 and 2012.

	Year Ended December 31,
	2014		2013		2012
Number of commercial properties (1)	759		337		89
Approximate rentable square feet (1) (2)	20.2 million		10.8 million		2.5 million
Percentage of rentable square feet leased	99	%	99	%	99	%

(1)	Excludes a property owned through the Unconsolidated Joint Venture.
(2)	Includes square feet of the buildings on land parcels subject to ground leases.

56

The following table summarizes our real estate investment activity during the years ended December 31, 2014, 2013 and 2012.

	Year Ended December 31,
	2014	2013	2012
Commercial properties acquired (1)	422	248	89
Approximate aggregate purchase price of acquired properties	$ 1.8 billion	$ 1.7 billion	$ 514.7 million
Approximate rentable square feet (1) (2)	9.4 million	8.3 million	2.5 million

(1)	Excludes a property owned through the Unconsolidated Joint Venture.
(2)	Includes square feet of the buildings on land parcels subject to ground leases.

As shown in the tables above, we owned 759 commercial properties as of December 31, 2014, excluding a property owned through the Unconsolidated Joint Venture, compared to 337 commercial properties as of December 31, 2013. Accordingly, our results of operations for the year endedDecember 31, 2014, compared to the year endedDecember 31, 2013, reflect significant increases in most categories.

Year EndedDecember 31, 2014 Compared to the Year Ended December 31, 2013

Revenue. Revenue increased $153.7 million to $256.3 million for the year endedDecember 31, 2014, compared to $102.6 million for the year endedDecember 31, 2013. Our revenue consisted primarily of rental and other property income from net leased commercial properties, which accounted for 87% and 88% of total revenue during the years ended December 31, 2014 and 2013, respectively. We also paid certain operating expenses subject to reimbursement by our tenants, which resulted in $34.4 million of tenant reimbursement income during the year endedDecember 31, 2014, compared to $11.9 million during the year endedDecember 31, 2013. The increase was primarily due to the acquisition of 422 rental income-producing properties subsequent to December 31, 2013.

General and Administrative Expenses. General and administrative expenses increased $3.9 million to $11.5 million for the year endedDecember 31, 2014, compared to $7.6 million for the year endedDecember 31, 2013. The increase was primarily due to increased trustee fees as a result of an increase in the number of stockholders of record, combined with an increase in state franchise and income taxes for the year endedDecember 31, 2014 compared to the year endedDecember 31, 2013. The primary general and administrative expense items are escrow and trustee fees, state franchise and income taxes, operating expense reimbursements to our advisors and accounting fees.

Property Operating Expenses. Property operating expenses increased $25.5 million to $39.0 million for the year endedDecember 31, 2014, compared to $13.5 million during the year endedDecember 31, 2013. The increase was primarily due to the acquisition of 422 rental income-producing properties subsequent to December 31, 2013. In addition, the increase was due to the ownership of more properties during the year endedDecember 31, 2014 than during year endedDecember 31, 2013 for which we initially pay certain operating expenses and are reimbursed by the tenant in accordance with the respective lease agreements. The primary property operating expense items are property taxes, repairs and maintenance and property related insurance.

Advisory Fees and Expenses. Pursuant to the advisory agreement with CR IV Advisors and based upon the amount of our current invested assets, we are required to pay to CR IV Advisors a monthly advisory fee equal to one-twelfth of 0.75% of the average invested assets. Additionally, we may be required to reimburse certain expenses incurred by CR IV Advisors in providing such advisory services, subject to limitations as set forth in the advisory agreement. Advisory fees and expenses increased $13.6 million to $24.1 million for the year endedDecember 31, 2014, compared to $10.5 million for the year endedDecember 31, 2013. The increase was due to an increase in our average invested assets to $3.1 billion for the year endedDecember 31, 2014, compared to $1.4 billion for the year endedDecember 31, 2013.

Acquisition-Related Expenses. Acquisition-related expenses remained relatively consistent, increasing $3.5 million to $51.8 million for the year endedDecember 31, 2014, compared to $48.3 million during the year endedDecember 31, 2013. The increase was primarily due to the acquisition-related expenses incurred in connection with the purchase of 422 commercial properties for an aggregate purchase price of $1.8 billion during the year endedDecember 31, 2014, compared to the purchase of 248 commercial properties for an aggregate purchase price of $1.7 billion during the year endedDecember 31, 2013.

57

Depreciation and Amortization Expenses. Depreciation and amortization expenses increased $51.1 million to $84.4 million for the year endedDecember 31, 2014, compared to $33.3 million during the year endedDecember 31, 2013. The increase was primarily due to an increase in our average invested assets to $3.1 billion for the year endedDecember 31, 2014, compared to $1.4 billion for the year endedDecember 31, 2013.

Interest Expense and Other. Interest expense and other increased $12.1 million to $34.3 million for the year endedDecember 31, 2014, compared to $22.2 million for the year endedDecember 31, 2013. The increase was primarily due to an increase in the average aggregate amount of debt outstanding to $1.1 billion during the year endedDecember 31, 2014 from $485.8 million during the year ended December 31, 2013. In addition, interest expense and other includes amortization of deferred financing costs and equity in income related to the Unconsolidated Joint Venture.

Year Ended December 31, 2013 Compared to the Year Ended December 31, 2012

Revenue. Revenue increased $94.8 million to $102.6 million for the year ended December 31, 2013, compared to $7.8 million for the year ended December 31, 2012. Our revenue consisted primarily of rental and other property income from net leased commercial properties, which accounted for 88% and 93% of total revenue during the years ended December 31, 2013 and 2012, respectively. We also paid certain operating expenses subject to reimbursement by our tenants, which resulted in $11.9 million of tenant reimbursement income during the year ended December 31, 2013, compared to $534,000 during the year ended December 31, 2012. The increase was primarily due to the acquisition of 248 rental income-producing properties subsequent to December 31, 2012.

General and Administrative Expenses. General and administrative expenses increased $6.1 million to $7.6 million for the year ended December 31, 2013, compared to $1.5 million for the year ended December 31, 2012. The increase was primarily due to increased trustee fees and operating expense reimbursements to our advisors as a result of an increase in the number of stockholders of record and the acquisition of 248 rental income-producing properties subsequent to December 31, 2012, combined with an increase in state franchise and income taxes and accounting fees for the year ended December 31, 2013 compared to the year ended December 31, 2012. The primary general and administrative expense items are escrow and trustee fees, state franchise and income taxes, operating expense reimbursements to our advisors and accounting fees.

Property Operating Expenses. Property operating expenses increased $13.0 million to $13.5 million for the year ended December 31, 2013, compared to $553,000 during the year ended December 31, 2012. The increase was primarily due to the acquisition of 248 rental income-producing properties subsequent to December 31, 2012. In addition, the increase was due to the ownership of more properties during the year ended December 31, 2013 than during year ended December 31, 2012 for which we initially pay certain operating expenses and are reimbursed by the tenant in accordance with the respective lease agreements. The primary property operating expense items are property taxes, repairs and maintenance and property related insurance.

Advisory Fees and Expenses. Pursuant to the advisory agreement with CR IV Advisors and based upon the amount of our current invested assets, we are required to pay to CR IV Advisors a monthly advisory fee equal to one-twelfth of 0.75% of the average invested assets. Additionally, we may be required to reimburse certain expenses incurred by CR IV Advisors in providing such advisory services, subject to limitations as set forth in the advisory agreement. Advisory fees and expenses increased $9.7 million to $10.5 million for the year ended December 31, 2013, compared to $812,000 for the year ended December 31, 2012. The increase was due to an increase in our average invested assets to $1.4 billion for the year ended December 31, 2013, compared to $257.4 million for the year ended December 31, 2012.

Acquisition-Related Expenses. Acquisition-related expenses increased $33.9 million to $48.3 million for the year ended December 31, 2013, compared to $14.4 million during the year ended December 31, 2012. The increase was primarily due to the acquisition-related expenses incurred in connection with the purchase of 248 commercial properties for an aggregate purchase price of $1.7 billion during the year ended December 31, 2013, compared to the purchase of 89 commercial properties for an aggregate purchase price of $514.7 million during the year ended December 31, 2012.

Depreciation and Amortization Expenses. Depreciation and amortization expenses increased $30.7 million to $33.3 million for the year ended December 31, 2013, compared to $2.6 million during the year ended December 31, 2012. The increase was primarily due to an increase in our average invested assets to $1.4 billion for the year ended December 31, 2013, compared to $257.4 million for the year ended December 31, 2012.

Interest Expense and Other. Interest expense and other increased $20.5 million to $22.2 million for the year ended December 31, 2013, compared to $1.7 million for the year ended December 31, 2012. The increase was primarily due to an increase in the average aggregate amount of debt outstanding to $485.8 million during the year ended December 31, 2013 from $137.3 million during the year ended December 31, 2012. In addition, interest expense and other includes amortization of deferred financing costs and equity in income related to the Unconsolidated Joint Venture.

58

Portfolio Information

Real Estate Portfolio

As of December 31, 2014, we owned 759 properties located in 45 states, the gross rentable space of which was 99% leased with a weighted average lease term remaining of 11.6 years.

As of December 31, 2014, our five highest tenant concentrations based on annualized gross rental revenue, were as follows:

			2014 Gross		Percentage of
	Total		Annualized		2014 Gross
	Number	Leased	Rental Revenue		Annualized
Tenant	of Leases (1)	Square Feet (1) (2)	(in thousands)		Rental Revenue
Walgreens - drugstore	67	979,129	$	23,992	8	%
Dollar General - discount store	167	1,617,808	16,360		6	%
Family Dollar - discount store	132	1,114,534	13,534		5	%
CVS - drugstore	45	565,274	12,634		4	%
United Oil - gas and convenience	55	71,741	11,824		4	%
	466	4,348,486	$	78,344	27	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

As of December 31, 2014, our five highest tenant industry concentrations based on annualized gross rental revenue, were as follows:

			2014 Gross		Percentage of
	Total		Annualized		2014 Gross
	Number	Leased	Rental Revenue		Annualized
Industry	of Leases (1)	Square Feet (1) (2)	(in thousands)		Rental Revenue
Discount store	360	4,390,982	$	43,775	15	%
Pharmacy	114	1,570,256	37,123		13	%
Home and garden	43	2,237,430	22,321		8	%
Gas & convenience	85	212,208	21,835		7	%
Grocery	41	1,658,939	21,610		7	%
	643	10,069,815	$	146,664	50	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

59

As of December 31, 2014, our five highest geographic concentrations based on annualized gross rental revenue, were as follows:

			2014 Gross		Percentage of
	Total		Annualized		2014 Gross
	Number of	Rentable	Rental Revenue		Annualized
Location	Properties (1)	Square Feet (1) (2)	(in thousands)		Rental Revenue
California	75	982,209	$	35,676	12	%
Texas	92	1,901,323	30,325		10	%
Georgia	29	1,401,864	17,493		6	%
Ohio	47	1,471,443	17,409		6	%
Florida	52	1,300,110	16,506		6	%
	295	7,056,949	$	117,409	40	%
(1) Excludes the property owned through the Unconsolidated Joint Venture.
(2) Includes square feet of buildings on land parcels subject to ground leases.

For more information on diversification and statistics of our wholly-owned real estate assets, see “Item 2. Properties” above.

Investment in Unconsolidated Joint Venture

As of December 31, 2014, through the Unconsolidated Joint Venture, we had an interest in one property comprising 176,000 rentable square feet of commercial space. As of December 31, 2014, our aggregate investment in the Unconsolidated Joint Venture was $19.2 million. For more information on our Unconsolidated Joint Venture, see Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K.

Distributions

Our board of directors authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2014 and ending on December 31, 2014. In addition, our board of directors authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2015 and ending on June 30, 2015.

During the years ended December 31, 2014 and 2013, we paid distributions of $177.0 million and $47.5 million, respectively, including $104.3 million and $25.7 million, respectively, through the issuance of shares pursuant to the DRIP. Net cash provided by operating activities for the year endedDecember 31, 2014 was $89.1 million and reflected a reduction for real estate acquisition-related expenses incurred of $51.8 million, in accordance with GAAP. For the year endedDecember 31, 2013, net cash provided by operating activities was $7.6 million and reflected a reduction for real estate acquisition-related expenses incurred of $48.3 million, in accordance with GAAP. We treat our real estate acquisition-related expenses as funded by proceeds from the Offerings, including proceeds from the DRIP. Therefore, for consistency, proceeds from the issuance of common stock for the years ended December 31, 2014 and 2013 are considered a source of our distributions to the extent that real estate acquisition-related expenses have reduced net cash flows provided by operating activities. Our 2014 distributions were funded by net cash provided by operating activities of $89.1 million, or 50%, and proceeds from the Offerings of $87.9 million, or 50%. Our 2013 distributions were funded by net cash provided by operating activities of $7.6 million, or 16%, and proceeds from the Offering of $39.9 million, or 84%.

Share Redemptions

Our share redemption program permits our stockholders to sell their shares of common stock back to us after they have held them for at least one year, subject to significant conditions and limitations. The share redemption program provides that we will redeem shares of our common stock from requesting stockholders, subject to the terms and conditions of the share redemption program. We will not redeem in excess of 5.0% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid. Funding for the redemption of shares will be limited to the net proceeds we receive from the sale of shares under the DRIP. In addition, we will redeem shares

60

on a quarterly basis, at the rate of approximately 1.25% of the weighted average number of shares outstanding during the trailing 12-month period ending on the last day of the fiscal quarter for which the redemptions are being paid. As of December 31, 2014, we received valid redemption requests under our share redemption program totaling approximately 1.9 million shares, of which we redeemed approximately 1.1 million shares as of December 31, 2014 for $10.6 million ($9.64 per share) and approximately 818,000 shares subsequent to December 31, 2014 for $7.9 million ($9.64 per share). As of December 31, 2013, we received valid redemption requests under our share redemption program totaling approximately 244,000 shares, of which we redeemed approximately 123,000 shares as of December 31, 2013 for $1.2 million ($9.64 per share) and approximately 121,000 shares subsequent to December 31, 2013 for $1.2 million ($9.75 per share). A valid redemption request is one that complies with the applicable requirements and guidelines of our current share redemption program. We have funded and intend to continue funding share redemptions with proceeds from our DRIP Offering.

See discussion in “Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Share Redemption Program.”

Liquidity and Capital Resources

General

Our principal demands for funds will be for real estate and real estate-related investments, for the payment of operating expenses and distributions, for the payment of principal and interest on any outstanding indebtedness and to satisfy redemption requests. Generally, cash needs for items other than acquisitions and acquisition-related expenses will be generated from operations of our current and future investments. We expect to utilize funds from the Offerings and future proceeds from secured or unsecured financing to complete future property acquisitions. As the Offering has closed, we expect to meet cash needs for acquisitions from proceeds raised pursuant to the DRIP Offering, cash flow from operations and from debt financings. The sources of our operating cash flows will primarily be provided by the rental income received from current and future leased properties.

As of December 31, 2014, we had cash and cash equivalents of $55.3 million. Additionally, as of December 31, 2014, we had unencumbered properties with a gross book value of $3.0 billion, including $2.2 billion of assets that are part of the Credit Facility’s unencumbered borrowing base (the “Borrowing Base Assets”), which may be used as collateral to secure additional financing in future periods or as additional collateral to facilitate the refinancing of current mortgage debt as it becomes due, subject to certain covenants and leverage and borrowing base restrictions related to the Credit Facility; however, the use of any Borrowing Base Assets as collateral would reduce the available borrowings under the Credit Facility. Subsequent to December 31, 2014, we increased the Credit Facility by $130.0 million.

Short-term Liquidity and Capital Resources

On a short-term basis, our principal demands for funds will be for the acquisition of real estate and real estate-related investments and the payment of acquisition-related expenses, operating expenses, distributions, redemptions and interest and principal on current and any future indebtedness. We expect to meet our short-term liquidity requirements through net cash provided by operations and proceeds from the Offerings, as well as secured or unsecured borrowings from banks and other lenders to finance our expected future acquisitions. Operating cash flows are expected to increase as additional properties are added to our portfolio. We believe that the resources stated above will be sufficient to satisfy our operating requirements for the foreseeable future, and we do not anticipate a need to raise funds from sources other than those described above within the next 12 months.

We expect our operating cash flows to increase as we acquire additional properties. CR IV Advisors paid the organizational and other offering costs associated with the sale of our common stock in the Offering (excluding selling commissions and the dealer manager fees), which we reimbursed in an amount up to 2.0% of the gross proceeds of the Offering. As of December 31, 2014, CR IV Advisors had paid organizational and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in our financial statements because such costs were not a liability to us as they exceeded 2.0% of gross proceeds from the Offering.

Long-term Liquidity and Capital Resources

On a long-term basis, our principal demands for funds will be for the acquisition of real estate and real estate-related investments and the payment of tenant improvements, acquisition-related expenses, operating expenses, distributions and redemptions to stockholders and interest and principal on any current and future indebtedness. We expect to meet our long-term liquidity requirements through proceeds from cash flow from operations, borrowings on the Credit Facility, proceeds from secured or unsecured borrowings from banks and other lenders, and proceeds raised pursuant to the DRIP Offering.

61

We expect that substantially all net cash flows from operations will be used to pay distributions to our stockholders after certain capital expenditures, including tenant improvements and leasing commissions, are paid; however, we have used, and may continue to use, other sources to fund distributions, as necessary, including proceeds from the Offerings, borrowings on the Credit Facility and/or future borrowings on our unencumbered assets. To the extent that cash flows from operations are lower due to fewer properties being acquired or lower than expected returns on the properties, distributions paid to our stockholders may be lower. We expect that substantially all net cash flows from the Offerings or debt financings will be used to fund acquisitions, certain capital expenditures identified at acquisition, repayments of outstanding debt or distributions to our stockholders.

As of December 31, 2014, we had issued approximately 306.1 million shares of our common stock in the Offering, resulting in gross proceeds of $3.0 billion.

As of December 31, 2014, we had $1.5 billion of debt outstanding and the ratio of our debt to gross real estate and real estate-related assets, net of gross intangible lease liabilities, was 37%. See Note 7 to our consolidated financial statements in this Annual Report on Form 10-K for certain terms of our debt outstanding.

Our contractual obligations as of December 31, 2014 were as follows (in thousands):

	Payments due by period (1) (2)
	Total		Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
Principal payments — credit facility	$	900,000	$	—	$	600,000	$	300,000	$	—
Interest payments — credit facility (3)	67,528		21,900		39,331		6,297		—
Principal payments — fixed rate debt (4)	566,420		408		876		24,710		540,426
Interest payments — fixed rate debt	200,055		23,913		47,855		46,167		82,120
Total	$	1,734,003	$	46,221	$	688,062	$	377,174	$	622,546

(1) The table does not include amounts due to CR IV Advisors or its affiliates pursuant to our advisory agreement because such amounts are not fixed and determinable.

(2) As of December 31, 2014, we had $38.7 million of variable rate debt effectively fixed through the use of interest rate swap agreements. We used the effective interest rates fixed under our swap agreements to calculate the debt payment obligations in future periods.

(3) Payment obligations for the Term Loan outstanding under the Credit Facility are based on the interest rate of 3.36% as of December 31, 2014, which is the rate fixed under the executed swap agreement that had the effect of fixing the variable interest rate per annum through the maturity date of August 2018. Payment obligations for the Revolving Loans outstanding were based on the weighted average interest rate in effect of 1.97% as of December 31, 2014.

(4) The fixed rate debt includes bond obligations assumed in connection with a property acquisition with an aggregate balance of $584,000. They are included in the accompanying consolidated balance sheets in deferred rental income and other liabilities.

We expect to incur additional borrowings in the future to acquire additional properties and make other real estate-related investments. There is no limitation on the amount we may borrow against any single improved property. Our future borrowings will not exceed 300% of our net assets as of the date of any borrowing, which is the maximum level of indebtedness permitted under the NASAA REIT Guidelines; however, we may exceed that limit if approved by a majority of our independent directors. Our board of directors has adopted a policy to further limit our borrowings to 60% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our gross assets, unless excess borrowing is approved by a majority of our independent directors and disclosed to our stockholders in the next quarterly report along with the justification for such excess borrowing. Our advisor has set a target leverage ratio of 40% to 50% of the greater of cost (before deducting depreciation or other non-cash reserves) or fair market value of our gross assets.

As of December 31, 2014, we had entered into purchase agreements with unaffiliated third-party sellers to acquire a 100% interest in 36 retail properties, subject to meeting certain criteria, for an aggregate purchase price of $86.4 million, exclusive of closing costs. As of December 31, 2014, we had $4.8 million of property escrow deposits held by escrow agents in connection with these future property acquisitions, of which $4.8 million will be forfeited if the transactions are not completed under certain circumstances. In connection with one of these purchase and sale agreements, we are contractually obligated to purchase 25 properties, of which we had purchased 22 properties as of December 31, 2014 and expect to purchase the remaining three properties. If the remaining three properties are not purchased, we will be obligated to pay the seller $10.0 million. These deposits are included in the consolidated balance sheets in property escrow deposits, prepaid expenses and other assets. These deposits are included in the consolidated balance sheets in property escrow deposits, prepaid expenses and other assets. None of these escrow deposits have been forfeited.

62

Cash Flow Analysis

Year Ended December 31, 2014 Compared to Year Ended December 31, 2013

Operating Activities. During the year endedDecember 31, 2014, net cash provided by operating activities was $89.1 million compared to net cash provided by operating activities of $7.6 million for the year endedDecember 31, 2013. The change was primarily due to an increase in adjustments in depreciation and amortization of $49.0 million, and an increase in net income of $44.1 million, partially offset by an increase in rents and tenant receivables of $7.6 million. See “— Results of Operations” for a more complete discussion of the factors impacting our operating performance.

Investing Activities. Net cash used in investing activities increased $37.4 million to $1.74 billion for the year endedDecember 31, 2014, compared to $1.70 billion for the year endedDecember 31, 2013. The increase was primarily due to the acquisition of 422 commercial properties for an aggregate purchase price of $1.79 billion during the year endedDecember 31, 2014, compared to 248 commercial properties for an aggregate purchase price of $1.66 billion during the year endedDecember 31, 2013.

Financing Activities. Net cash provided by financing activities decreased $576.1 million to $1.4 billion for the year endedDecember 31, 2014, compared to $2.0 billion for the year endedDecember 31, 2013. The change was primarily due to net proceeds from the issuance of common stock of $752.7 million in the Offerings and net proceeds from the borrowing facilities and notes payable of $743.7 million for the year endedDecember 31, 2014, compared to net proceeds from the issuance of common stock of $1.6 billion in the Offering and net proceeds from the borrowing facilities and notes payable of $422.4 million for the year endedDecember 31, 2013.

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

Operating Activities. During the year ended December 31, 2013, net cash provided by operating activities was $7.6 million compared to net cash used in operating activities of $8.7 million for the year ended December 31, 2012. The change was primarily due to an increase in depreciation and amortization expenses of $33.1 million, partially offset by an increase in net loss of $19.1 million and a net increase in working capital accounts of $2.4 million. See “— Results of Operations” for a more complete discussion of the factors impacting our operating performance.

Investing Activities. Net cash used in investing activities increased $1.2 billion to $1.7 billion for the year ended December 31, 2013, compared to $511.2 million for the year ended December 31, 2012. The increase was primarily due to the acquisition of 248 commercial properties for an aggregate purchase price of $1.7 billion during the year ended December 31, 2013, compared to 89 commercial properties for an aggregate purchase price of $514.7 million during the year ended December 31, 2012.

Financing Activities. Net cash provided by financing activities increased $1.5 billion to $2.0 billion for the year ended December 31, 2013, compared to $533.6 million for the year ended December 31, 2012. The change was primarily due to net proceeds from the issuance of common stock of $1.6 billion in the Offering and net proceeds from the borrowing facilities and notes payable of $422.4 million for the year ended December 31, 2013, compared to net proceeds from the issuance of common stock of $266.1 million in the Offering and net proceeds from the borrowing facilities and notes payable of $274.6 million for the year ended December 31, 2012.

Election as a REIT

We elected to be taxed, and currently qualify, as a REIT under the Internal Revenue Code commencing with our taxable year ended December 31, 2012. To maintain our qualification as a REIT, we must continue to meet certain requirements relating to our organization, sources of income, nature of assets, distributions of income to our stockholders and recordkeeping. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders so long as we distribute at least 90% of our annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains).

If we fail to maintain our qualification as a REIT for any reason in a taxable year and applicable relief provisions do not apply, we will be subject to tax, including any applicable alternative minimum tax, on our taxable income at regular corporate rates. We will not be able to deduct distributions paid to our stockholders in any year in which we fail to maintain our qualification as a REIT. We also will be disqualified for the four taxable years following the year during which qualification was lost, unless we are entitled to relief under specific statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to maintain our qualification as a REIT for federal income tax purposes. No provision for federal income taxes has been made in our accompanying consolidated financial statements. We are subject to certain state and local taxes

63

related to the operations of properties in certain locations, which have been provided for in our accompanying consolidated financial statements.

Inflation

We are exposed to inflation risk as income from long-term leases is the primary source of our cash flows from operations. There are, and we expect that there will continue to be, provisions in many of our tenant leases that are intended to protect us from, and mitigate the risk of, the impact of inflation. These provisions include rent steps and clauses enabling us to receive payment of additional rent calculated as a percentage of the tenant’s gross sales above pre-determined thresholds. In addition, most of our leases require the tenant to pay all or a majority of the property’s operating expenses, including real estate taxes, special assessments and sales and use taxes, utilities, insurance and building repairs. However, because of the long-term nature of leases for real property, such leases may not reset frequently enough to adequately offset the effects of inflation.

Commitments and Contingencies

We may be subject to certain commitments and contingencies with regard to certain transactions. Refer to Note 10 to our consolidated financial statements in this Annual Report on Form 10-K for further explanations.

Related-Party Transactions and Agreements

We have entered into agreements with CR IV Advisors and its affiliates whereby we agree to pay certain fees to, or reimburse certain expenses of, CR IV Advisors or its affiliates such as acquisition and advisory fees and expenses, organization and offering costs, leasing fees and reimbursement of certain operating costs. See Note 11 to our consolidated financial statements in this Annual Report on Form 10-K for a discussion of the various related-party transactions, agreements and fees.

Conflicts of Interest

Affiliates of CR IV Advisors act as an advisor to, and our chief financial officer acts as an executive officer of, CCPT V, CCIT II and Cole Income NAV Strategy, all of which are REITs distributed and managed by affiliates of CR IV Advisors. As such, there are conflicts of interest where CR IV Advisors or its affiliates, while serving in the capacity as sponsor, general partner, officer, director, key personnel and/or advisor for ARCP or another real estate program sponsored by Cole Capital, may be in conflict with us in connection with providing services to other real estate- related programs related to property acquisitions, property dispositions, and property management among others. The compensation arrangements between affiliates of CR IV Advisors and ARCP and these other real estate programs sponsored by Cole Capital could influence the advice to us. See “Item 1. Business — Conflicts of Interest” in this Annual Report on Form 10-K.

Subsequent Events

Certain events occurred subsequent to December 31, 2014 through the filing date of this Annual Report on Form 10-K. Refer to Note 17 to our consolidated financial statements included in this Annual Report on Form 10-K for further explanation.

Impact of Recent Accounting Pronouncements

Refer to Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K for further explanation. There have been no accounting pronouncements issued, but not yet applied by us, that will significantly impact our financial statements.

Off Balance Sheet Arrangements

As of December 31, 2014 and 2013, we had no material off-balance sheet arrangements that had or are reasonably likely to have a current or future effect on our financial condition, results of operations, liquidity or capital resources.

64

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In connection with the acquisition of our properties, we have obtained variable rate debt financing through borrowings under the Revolving Loans and therefore may be exposed to changes in LIBOR. In the future, we may obtain additional variable rate debt financing to fund certain property acquisitions, and may be exposed to interest rate changes. Our objectives in managing interest rate risks will be to limit the impact of interest rate changes on operations and cash flows, and to lower overall borrowing costs. To achieve these objectives, we expect to borrow primarily at interest rates with the lowest margins available and, in some cases, with the ability to convert variable rates to fixed rates. We have entered, and expect to continue to enter, into derivative financial instruments, such as interest rate swaps, in order to mitigate our interest rate risk associated with our variable rate debt. We have not entered, and do not intend to enter, into derivative or interest rate transactions for speculative purposes. We may also enter into rate lock arrangements to lock interest rates on future borrowings. We may be exposed to credit and market risks including, but not limited to, the failure of any counterparty to perform under the terms of the derivative contract or the adverse effect on the value of the financial instrument resulting from a change in interest rates.

As of December 31, 2014, we had three interest rate swap agreements outstanding, which mature on various dates from June 2018 through August 2020, with an aggregate notional amount of $338.7 million and an aggregate net fair value of $(4.1) million. The fair value of these interest rate swap agreements is dependent upon existing market interest rates and swap spreads. As of December 31, 2014, an increase of 50 basis points in interest rates would result in a decrease to the fair value of the derivative liability of $5.3 million.

We do not have any foreign operations and thus we are not exposed to foreign currency fluctuations.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and supplementary data filed as part of this report are set forth beginning on page F-1 of this Annual Report on Form 10-K.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There were no changes in or disagreements with our independent registered public accountants during the year endedDecember 31, 2014.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and we necessarily were required to apply our judgment in evaluating whether the benefits of the controls and procedures that we adopt outweigh their costs.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation as of December 31, 2014 was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of December 31, 2014, were effective at the reasonable assurance level.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected. Also, projections of any evaluation of internal control effectiveness to future periods are subject to the risk that controls may

65

become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on this evaluation, management has concluded that our internal control over financial reporting was effective as of December 31, 2014.

Changes in Internal Control Over Financial Reporting

No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d -15(f) of the Exchange Act) during the quarter ended December 31, 2014 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

66

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item will be presented in our definitive proxy statement for our 2015 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2014, and is incorporated herein by reference.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item will be presented in our definitive proxy statement for our 2015 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2014, and is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this Item will be presented in our definitive proxy statement for our 2015 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2014, and is incorporated herein by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

The information required by this Item will be presented in our definitive proxy statement for our 2015 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2014, and is incorporated herein by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item will be presented in our definitive proxy statement for our 2015 annual meeting of stockholders, which is expected to be filed with the SEC within 120 days after December 31, 2014, and is incorporated herein by reference.

67

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) List of Documents Filed.

1.    The list of the consolidated financial statements contained herein is set forth on page F-1 hereof.

2. Financial Statement Schedules -

Schedule III - Real Estate Assets and Accumulated Depreciation is set forth beginning on page S-1 hereof.

All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are not applicable and therefore have been omitted.

3. The Exhibits filed in response to Item 601 of Regulation S-K are listed on the Exhibit Index attached hereto.

(b) See (a) 3 above.

(c) See (a) 2 above.

68

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Financial Statements	Page
Report of Independent Registered Public Accounting Firm	F-2
Consolidated Balance Sheets as of December 31, 2014 and 2013	F-3
Consolidated Statements of Operations for the Years Ended December 31, 2014, 2013 and 2012	F-4
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2014, 2013 and 2012	F-5
Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2014, 2013 and 2012	F-6
Consolidated Statements of Cash Flows for the Years Ended December 31, 2014, 2013 and 2012	F-7
Notes to Consolidated Financial Statements	F-8

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

Cole Credit Property Trust IV, Inc.

Phoenix, Arizona

We have audited the accompanying consolidated balance sheets of Cole Credit Property Trust IV, Inc. and subsidiaries (the “Company”) as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2014. Our audits also included the financial statement schedule listed in the Index at Item 15. These financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on the financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Cole Credit Property Trust IV, Inc. and subsidiaries as of December 31, 2014 and 2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ DELOITTE & TOUCHE LLP

Phoenix, Arizona

March 30, 2015

F-2

COLE CREDIT PROPERTY TRUST IV, INC.

CONSOLIDATED BALANCE SHEETS

 (in thousands, except share and per share amounts)

	December 31, 2014			December 31, 2013
ASSETS
Investment in real estate assets:
Land	$	972,983		$	537,714
Buildings and improvements, less accumulated depreciation of $78,186 and $23,377, respectively	2,539,770			1,399,617
Intangible lease assets, less accumulated amortization of $48,085 and $14,498, respectively	391,917			246,601
Total investment in real estate assets, net	3,904,670			2,183,932
Investment in unconsolidated joint venture	19,170			19,124
Total investment in real estate and related assets, net	3,923,840			2,203,056
Cash and cash equivalents	55,287			300,574
Restricted cash	4,560			8,193
Rents and tenant receivables, less allowance for doubtful accounts of $67 and $50, respectively	34,929			14,440
Due from affiliates	470			—
Property escrow deposits, prepaid expenses and other assets	7,137			10,942
Deferred financing costs, less accumulated amortization of $6,781 and $3,580, respectively	12,924			14,444
Total assets	$	4,039,147		$	2,551,649
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable and credit facility	$	1,466,507		$	696,946
Accounts payable and accrued expenses	25,355			12,675
Escrowed investor proceeds	—			5,147
Due to affiliates	5,473			7,512
Acquired below market lease intangibles, less accumulated amortization of $8,807 and $2,237, respectively	55,535			37,485
Distributions payable	16,189			10,569
Deferred rental income and other liabilities	21,710			12,859
Total liabilities	1,590,769			783,193
Commitments and contingencies
Redeemable common stock and noncontrolling interest	121,972			26,484
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued and outstanding	—			—
Common stock, $0.01 par value; 490,000,000 shares authorized, 304,950,000 and 211,026,672 shares issued and outstanding, respectively	3,050			2,110
Capital in excess of par value	2,607,448			1,850,702
Accumulated distributions in excess of earnings	(280,035		)	(108,588		)
Accumulated other comprehensive loss	(4,057		)	(2,252		)
Total stockholders’ equity	2,326,406			1,741,972
Total liabilities and stockholders’ equity	$	4,039,147		$	2,551,649

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

F-3

COLE CREDIT PROPERTY TRUST IV, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except share and per share amounts)

	Year Ended December 31,
	2014			2013			2012
Revenues:
Rental and other property income	$	221,909		$	90,680		$	7,303
Tenant reimbursement income	34,373			11,877			534
Total revenue	256,282			102,557			7,837
Expenses:
General and administrative expenses	11,510			7,566			1,503
Property operating expenses	39,035			13,507			553
Advisory fees and expenses	24,142			10,549			812
Acquisition-related expenses	51,763			48,286			14,371
Depreciation	54,809			21,633			1,743
Amortization	29,593			11,712			871
Total operating expenses	210,852			113,253			19,853
Operating income (loss)	45,430			(10,696		)	(12,016		)
Other expense:
Interest expense and other	(34,260		)	(22,184		)	(1,728		)
Net income (loss)	11,170			(32,880		)	(13,744		)
Net loss allocated to noncontrolling interest	(20		)	—			—
Net income (loss) attributable to the Company	$	11,190		$	(32,880	)	$	(13,744	)
Weighted average number of common shares outstanding:
Basic and diluted	292,072,088			90,330,927			8,578,494
Net income (loss) per common share:
Basic and diluted	$	0.04		$	(0.36	)	$	(1.60	)

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

F-4

COLE CREDIT PROPERTY TRUST IV, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 (in thousands)

	Year Ended December 31,
	2014			2013			2012
Net income (loss)	$	11,170		$	(32,880	)	$	(13,744	)
Net loss allocated to noncontrolling interest	(20		)	—			—
Net income (loss) attributable to the Company	11,190			(32,880		)	(13,744		)
Other comprehensive loss:
Unrealized loss on interest rate swaps	(1,805		)	(2,252		)	—
Total comprehensive income (loss)	$	9,385		$	(35,132	)	$	(13,744	)

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

F-5

COLE CREDIT PROPERTY TRUST IV, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 (in thousands, except share amounts)

	Common Stock					Capital in  Excess of Par Value			Accumulated Distributions in Excess of Earnings			Accumulated Other Comprehensive Loss			Total Stockholders’ Equity
	Number of Shares		Par Value
Balance, January 1, 2012	20,000		$	—		$	200		$	—		$	—		$	200
Issuance of common stock	29,923,549		299			298,139			—			—			298,438
Distributions to investors	—		—			—			(5,381		)	—			(5,381		)
Commissions on stock sales and related dealer manager fees	—		—			(26,051		)	—			—			(26,051		)
Other offering costs	—		—			(5,983		)	—			—			(5,983		)
Changes in redeemable common stock	—		—			(1,964		)	—			—			(1,964		)
Comprehensive loss	—		—			—			(13,744		)	—			(13,744		)
Balance, December 31, 2012	29,943,549		299			264,341			(19,125		)	—			245,515
Issuance of common stock	181,205,760		1,811			1,806,009			—			—			1,807,820
Distributions to investors	—		—			—			(56,583		)	—			(56,583		)
Commissions on stock sales and related dealer manager fees	—		—			(157,767		)	—			—			(157,767		)
Other offering costs	—		—			(36,179		)	—			—			(36,179		)
Redemptions of common stock	(122,637	)	—			(1,182		)	—			—			(1,182		)
Changes in redeemable common stock	—		—			(24,520		)	—			—			(24,520		)
Comprehensive loss	—		—			—			(32,880		)	(2,252		)	(35,132		)
Balance, December 31, 2013	211,026,672		2,110			1,850,702			(108,588		)	(2,252		)	1,741,972
Issuance of common stock	95,036,480		951			940,979			—			—			941,930
Distributions to investors	—		—			—			(182,637		)	—			(182,637		)
Commissions on stock sales and related dealer manager fees	—		—			(72,706		)	—			—			(72,706		)
Other offering costs	—		—			(7,277		)	—			—			(7,277		)
Redemptions and cancellations of common stock	(1,113,152	)	(11		)	(10,838		)	—			—			(10,849		)
Changes in redeemable common stock	—		—			(93,412		)	—			—			(93,412		)
Comprehensive loss	—		—			—			11,190			(1,805		)	9,385
Balance, December 31, 2014	304,950,000		$	3,050		$	2,607,448		$	(280,035	)	$	(4,057	)	$	2,326,406

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

F-6

COLE CREDIT PROPERTY TRUST IV, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands)

	Year Ended December 31,
	2014			2013			2012
Cash flows from operating activities:
Net income (loss)	$	11,170		$	(32,880	)	$	(13,744	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	54,809			21,633			1,743
Amortization of intangible lease assets and below market lease intangible, net	27,334			11,523			797
Amortization of deferred financing costs	3,201			3,056			524
Amortization of fair value adjustment of mortgage notes payable assumed	(94		)	—			—
Bad debt expense	113			59			—
Equity in income of unconsolidated joint venture	(765		)	(324		)	—
Return on investment from unconsolidated joint venture	719			130			—
Loss on sale of real estate	157			—			—
Changes in assets and liabilities:
Rents and tenant receivables	(20,602		)	(13,034		)	(1,465		)
Prepaid expenses and other assets	(480		)	(730		)	(1,142		)
Accounts payable and accrued expenses	6,741			8,688			2,227
Deferred rental income and other liabilities	4,355			7,369			1,848
Due from affiliates	(470		)	—			—
Due to affiliates	2,898			2,080			495
Net cash provided by (used in) operating activities	89,086			7,570			(8,717		)
Cash flows from investing activities:
Investment in real estate assets and capital expenditures	(1,749,486		)	(1,667,832		)	(510,700		)
Investment in unconsolidated joint venture	—			(18,930		)	—
Proceeds from sale of real estate	1,758			—			—
Escrowed funds for acquisition of real estate investment	(70,254		)	—			—
Release of escrowed funds for acquisition of real estate investment	70,254			—			—
Payment of property escrow deposits	(6,148		)	(28,978		)	—
Refund of property escrow deposits	9,888			20,453			—
Change in restricted cash	3,633			(7,670		)	(523		)
Net cash used in investing activities	(1,740,355		)	(1,702,957		)	(511,223		)
Cash flows from financing activities:
Proceeds from issuance of common stock	837,669			1,782,118			296,474
Redemptions of common stock	(10,849		)	(1,182		)	—
Offering costs on issuance of common stock	(84,920		)	(190,670		)	(30,373		)
Distributions to investors	(72,756		)	(21,768		)	(1,961		)
Proceeds from borrowing facilities and notes payable	744,064			970,842			316,054
Repayments of borrowing facilities	(388		)	(548,490		)	(41,460		)
Proceeds from affiliate line of credit	—			—			11,700
Repayments of affiliate line of credit	—			—			(11,700		)
Payment of loan deposits	(523		)	(1,406		)	(50		)
Refund of loan deposits	1,068			861			50
Change in escrowed investor proceeds	(5,147		)	4,624			523
Deferred financing costs paid	(1,681		)	(12,408		)	(5,616		)
Contributions from noncontrolling interests	2,096			—			—
Other financing activities	(2,651		)	(455		)	(6		)
Net cash provided by financing activities	1,405,982			1,982,066			533,635
Net (decrease) increase in cash and cash equivalents	(245,287		)	286,679			13,695
Cash and cash equivalents, beginning of period	300,574			13,895			200
Cash and cash equivalents, end of period	$	55,287		$	300,574		$	13,895

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

F-7

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — ORGANIZATION AND BUSINESS

Cole Credit Property Trust IV, Inc. (the “Company”) is a Maryland corporation that was formed on July 27, 2010, which has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is the sole general partner of and owns, directly or indirectly, 100% of the partnership interests in Cole Operating Partnership IV, LP, a Delaware limited partnership. The Company is externally managed by Cole REIT Advisors IV, LLC (“CR IV Advisors”), an affiliate of the Company’s sponsor, Cole Capital^®, which is a trade name used to refer to a group of affiliated entities directly or indirectly controlled by American Realty Capital Properties, Inc. (“ARCP”), a self-managed publicly traded REIT, organized as a Maryland corporation and listed on The NASDAQ Global Select Market. On February 7, 2014, ARCP acquired Cole Real Estate Investments, Inc. (“Cole”), which, prior to its acquisition, indirectly owned and/or controlled the Company’s external advisor, CR IV Advisors, the Company’s dealer manager for the Offering (as defined below), Cole Capital Corporation (“CCC”), the Company’s property manager, CREI Advisors, LLC (“CREI Advisors”), and the Company’s sponsor, Cole Capital. As a result of ARCP’s acquisition of Cole, ARCP indirectly owns and/or controls CR IV Advisors, CCC, CREI Advisors and Cole Capital.

On January 26, 2012, pursuant to a Registration Statement on Form S-11 (Registration No. 333-169533) (the “Registration Statement”) filed under the Securities Act of 1933, as amended (the “Securities Act”), the Company commenced its initial public offering on a “best efforts” basis of up to a maximum of $2.975 billion in shares of common stock (the “Offering”). On November 25, 2013, the Company reallocated $400.0 million in shares from its distribution reinvestment plan (the “DRIP”) to the primary portion of the Offering, and on February 18, 2014, the Company reallocated an additional $23.0 million in shares from the DRIP to the primary portion of the Offering. As a result of these reallocations, the Offering offered up to a maximum of approximately 292.3 million shares of common stock at a price of $10.00 per share in the primary portion of the Offering and up to approximately 5.5 million additional shares pursuant to the DRIP under which the Company’s stockholders could have elected to have distributions reinvested in additional shares of common stock at a price of $9.50 per share.

As of February 25, 2014, the Company no longer accepted subscription agreements in connection with the Offering because it had received subscription agreements that allowed it to reach the maximum primary offering. The Company ceased issuing shares in the Offering on April 4, 2014. At the completion of the Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Offering and approximately 5.1 million shares of common stock sold pursuant to the DRIP. The remaining approximately 404,000 unsold shares from the Offering were deregistered.

In addition, the Company registered 26.0 million shares of common stock under the DRIP pursuant to a Registration Statement filed on Form S-3 (Registration No. 333-192958) (the “DRIP Offering” and collectively with the Offering, the “Offerings”), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing. The Company has issued, and expects that it will continue to issue, shares of common stock in the DRIP Offering.

Effective as of December 12, 2014, Nicholas S. Schorsch resigned as a director, the chairman of the Board of Directors of the Company (the "Board"), the chief executive officer and the president of the Company. In addition, effective as of December 12, 2014, Mr. Schorsch resigned as the chief executive officer of CR IV Advisors, and as the executive chairman of ARCP. Effective December 17, 2014, Thomas W. Roberts was appointed as a director, the chief executive officer and the president of the Company by the Board. Effective September 5, 2014, Simon J. Misselbrook was appointed chief financial officer and treasurer of the Company by the Board, replacing D. Kirk McAllaster, Jr. On March 24, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board.

An affiliate of ARCP entered into a definitive agreement (the “RCAP Agreement”), dated as of September 30, 2014, with RCS Capital Corporation (“RCAP”) pursuant to which RCAP would have acquired Cole Capital. The acquisition would have included CR IV Advisors and CCC. Additionally, the parties entered into a strategic arrangement by which an indirect wholly-owned subsidiary of ARCP would have acted as sub-advisor to the non-traded REITs sponsored by Cole Capital (the “Managed Funds”), including the Company, and would have acquired and property managed real estate assets for the Managed Funds.

On November 3, 2014, RCAP publicly announced that it had notified ARCP of its purported termination of the RCAP Agreement, and that no subsidiary would act as the Company’s sub-advisor. On November 11, 2014, ARCP filed a complaint in the Court of Chancery of the State of Delaware against RCAP alleging that RCAP’s attempt to terminate the RCAP Agreement constituted a breach of the RCAP Agreement and seeking, among other things, specific performance of the RCAP Agreement or, in the alternative, money damages. On December 4, 2014, ARCP announced that it had entered into a settlement agreement

F-8

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

with RCAP that resolved the dispute over RCAP’s attempt to terminate the RCAP Agreement. ARCP received $60.0 million in the settlement.

As of December 31, 2014, the Company had issued approximately 306.1 million shares of its common stock in the Offerings, including 8.8 million shares issued in the DRIP Offering, for gross offering proceeds of $3.0 billion before organization and offering costs, selling commissions and dealer manager fees of $306.0 million. As of December 31, 2014, the Company owned 759 properties, which include properties owned through a consolidated joint venture arrangement (the “Consolidated Joint Venture”), comprising 20.2 million rentable square feet of commercial space located in 45 states. As of December 31, 2014, the rentable space at these properties was 99% leased. In addition, through an unconsolidated joint venture arrangement, as of December 31, 2014, the Company had an interest in one property comprising 176,000 rentable square feet of commercial space (the “Unconsolidated Joint Venture”).

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances have been combined in the consolidated statements of operations and statements of cash flows.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns.  If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity (“VIE”). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance, its form of ownership interest, its representation on the entity’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate its joint venture arrangements based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture arrangement and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company may be the primary beneficiary. As of December 31, 2014, the Company determined that it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. As of December 31, 2014, the Consolidated Joint Venture held real estate assets with an aggregate book value of $18.9 million. As of December 31, 2014 and December 31, 2013, the Company was not required to consolidate the Unconsolidated Joint Venture as the applicable joint venture entity did not qualify as a VIE and the Company did not meet the control requirement for consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F-9

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Investment in and Valuation of Real Estate Assets

Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition-related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred.

The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows:

Buildings	40 years
Tenant improvements	Lesser of useful life or lease term
Intangible lease assets	Lease term

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2014, 2013, or 2012.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets.

When a real estate asset is identified by the Company as held for sale, the Company will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. There were no assets identified as held for sale as of December 31, 2014, 2013, or 2012.

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition-related expenses are expensed as incurred. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The Company obtains an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

F-10

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market lease intangibles relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The Company has acquired, and may continue to acquire, certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events (the “Contingent Payments”). Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrowed funds to the Company or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair values, and any changes to the estimated fair values, subsequent to acquisition, are reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management.

The Company estimates the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable are initially recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance is amortized to interest expense over the term of the respective mortgage note payable.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could impact the Company’s results of operations.

Noncontrolling Interest-Redeemable Interest in Consolidated Joint Venture

On June 27, 2014, the Company completed the formation of the Consolidated Joint Venture. Pursuant to the joint venture agreement, the joint venture partner has a right to exercise an option after two years whereby the Company will be required to purchase the ownership interest of the joint venture partner at fair market value. The Company determined it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. The Company recorded the noncontrolling interest of $2.1 million as temporary equity, in the mezzanine section of the balance sheet, due to the redemption option existing outside the control of the Company.

Investment in Unconsolidated Joint Venture

The Company accounts for its unconsolidated joint venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over operating and financial policies of this

F-11

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the Unconsolidated Joint Venture’s earnings and distributions. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Unconsolidated Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate the Unconsolidated Joint Venture for potential impairment and determine if the carrying amount of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an Unconsolidated Joint Venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment indicators were identified and no impairment losses were recorded related to the Unconsolidated Joint Venture during the years ended December 31, 2014 and December 31, 2013.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturities when purchased of three months or less to be cash equivalents. The Company considers investments in highly liquid money market accounts to be cash equivalents.

Restricted Cash and Escrows

Included in restricted cash was $2.7 million and $2.6 million held by lenders in lockbox accounts, as of December 31, 2014 and 2013. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $1.9 million and $513,000 held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement as of December 31, 2014 and 2013, respectively. The Company also had $5.1 million of escrowed investor proceeds for which shares of common stock had not been issued as of December 31, 2013.

Rents and Tenant Receivables

Rents and tenant receivables primarily include amounts to be collected in future periods related to the recognition of rental income on a straight-line basis over the lease term and cost recoveries due from tenants. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy, if any, are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. The Company records allowances for those balances that the Company deems to be uncollectible, including any amounts relating to straight-line rent receivables.

Prepaid Expenses

Prepaid expenses include expenses paid as of the balance sheet date that relate to future periods and will be expensed or reclassified to another account during the period to which the costs relate. Any amounts with no future economic benefit are charged to earnings when identified.

Due from Affiliates

As of December 31, 2014, $470,000 was due from CR IV Advisors and its affiliates primarily related to amounts paid by the Company on dead deals which are reimbursable by the advisor. As of December 31, 2013, there was no amount due from CR IV Advisors and its affiliates.

Deferred Financing Costs

Deferred financing costs are capitalized and amortized on a straight-line basis over the term of the related financing arrangement, which approximates the effective interest method. If a note payable is prepaid, any unamortized deferred financing costs related to the note payable would be expensed. Amortization of deferred financing costs was $3.2 million and $3.1 million for the years ended December 31, 2014 and 2013, respectively, and was included in interest expense in the consolidated statements of operations.

F-12

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Concentration of Credit Risk

As of December 31, 2014, the Company had cash on deposit, including restricted cash, at ten financial institutions, in three of which the Company had deposits in excess of federally insured levels totaling $58.7 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits.

As of December 31, 2014, no single tenant accounted for greater than 10% of the Company’s 2014 gross annualized rental revenues. The Company had certain geographic concentrations in its property holdings. In particular, as of December 31, 2014, 75 of the Company’s properties were located in California and 92 were located in Texas, which accounted for 12% and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. In addition, the Company had tenants in the discount store and pharmacy industries, which comprised 15% and 13%, respectively, of the Company’s 2014 gross annualized rental revenues.

Offering and Related Costs

CR IV Advisors funded all of the organization and offering costs on the Company’s behalf (excluding selling commissions and dealer manager fees) and was reimbursed for such costs up to 2.0% of aggregate gross proceeds from the Offering. As of December 31, 2014 and 2013, CR IV Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 2.0% of aggregate gross proceeds from the Offering. When recorded by the Company, organization costs are expensed as incurred and offering costs, which include items such as legal and accounting fees, marketing and personnel, promotional and printing costs are recorded as a reduction of capital in excess of par value, along with selling commissions and dealer manager fees in the period in which they become payable.

Due to Affiliates

Certain affiliates of CR IV Advisors received fees, reimbursements and compensation in connection with services provided relating to the Offering and the acquisition, management, financing and leasing of the properties of the Company.

Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of the derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss). The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations.

Redeemable Common Stock

Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in its consolidated balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value.

Interest

Interest is charged to interest expense as it accrues. No interest costs were capitalized during the years ended December 31, 2014, 2013 or 2012.

Distributions Payable and Distribution Policy

In order to maintain its status as a REIT, the Company is required to, among other things, make distributions each taxable year equal to at least 90% of its taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). To the extent that funds are available, the Company intends to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of applicable record dates.

The Board authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for

F-13

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

stockholders of record as of the close of business on each day of the period commencing on January 1, 2014 and ending on December 31, 2014. In addition, our board of directors authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2015 and ending on June 30, 2015. As of December 31, 2014, the Company had distributions payable of $16.2 million.

Reportable Segments

The Company’s commercial real estate investments primarily consist of income-producing necessity retail properties that are single-tenant or multi-tenant “power centers”, which are leased to national and regional creditworthy tenants under long-term net leases, and are strategically located throughout the United States and U.S. protectorates. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company evaluates operating performance on an overall portfolio level; therefore, the Company’s properties are one reportable segment.

Revenue Recognition

Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred.

Earnings (Loss) Per Share

Earnings (loss) per share are calculated based on the weighted average number of common shares outstanding during each period presented. Diluted income (loss) per share considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the years ended December 31, 2014, 2013 or 2012.

Income Taxes

The Company elected to be taxed, and currently qualifies, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2012. The Company will generally not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company maintains its qualification for taxation as a REIT, it or its subsidiaries may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Recent Accounting Pronouncements

In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s consolidated unaudited financial statements because the Company did not have any discontinued operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s consolidated financial statements.

F-14

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The Company does not believe ASU 2014-15, when effective, will have a material impact on the Company’s consolidated financial statements because the Company currently does not have any conditions that give rise to substantial doubt about its ability to continue as a going concern.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require the Company to revise its documentation regarding the consolidation or deconsolidation of such entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of the new standard on its consolidated financial statements.

NOTE 3 — FAIR VALUE MEASUREMENTS

GAAP defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3 – Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities:

Cash and cash equivalents and restricted cash – The Company considers the carrying values of these financial assets to approximate fair value because of the short period of time between their origination and their expected realization. These financial assets are considered Level 1.

Notes payable and credit facility – The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. These financial instruments are considered Level 2. As of December 31, 2014, the estimated fair value of the Company’s debt was $1.5 billion which approximated the carrying valueof $1.5 billion. As of December 31, 2013, the estimated fair value of the Company’s debt was $682.1 million compared to the carrying value of $696.9 million.

Derivative instruments – The Company’s derivative instruments represent interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. The Company includes the impact of credit valuation adjustments on derivative instruments measured at fair value.

Contingent consideration arrangements – The contingent consideration arrangements are carried at fair value and are valued using Level 3 inputs. The fair value of the Contingent Payments is determined based on the estimated timing and probability of successfully leasing vacant space subsequent to the Company’s acquisition of certain properties. The total

F-15

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

estimated fair value of contingent consideration arrangements was $3.4 million and $784,000 as of December 31, 2014 and 2013, respectively, and is included in the accompanying consolidated balance sheets in deferred rental income and other liabilities. During the year endedDecember 31, 2014, the Company recorded additional obligations with an aggregate estimated fair value of $5.3 million upon purchase of certain properties. In addition, during the year endedDecember 31, 2014, the fair value of the outstanding contingent consideration arrangements had a net decrease of $70,000, which resulted in a reduction to acquisition-related expenses in the accompanying consolidated statements of operations. The Company also paid an aggregate of $2.6 million to multiple sellers as certain contingent consideration arrangements of the Contingent Payments were satisfied.

Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, on disposition of the financial assets and liabilities. As of December 31, 2014 and 2013, there have been no transfers of financial assets or liabilities between fair value hierarchy levels.

In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2014 and 2013 (in thousands):

	Balance as of December 31, 2014			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(4,057	)	$	—	$	(4,057	)	$	—
Contingent consideration	(3,405		)	—		—			(3,405		)
Total liabilities	$	(7,462	)	$	—	$	(4,057	)	$	(3,405	)
	Balance as of December 31, 2013			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(2,252	)	$	—	$	(2,252	)	$	—
Contingent consideration	(784		)	—		—			(784		)
Total liabilities	$	(3,036	)	$	—	$	(2,252	)	$	(784	)

NOTE 4 — REAL ESTATE ACQUISITIONS

2014 Property Acquisitions

During the year endedDecember 31, 2014, the Company acquired 422 commercial properties, including properties held in the Consolidated Joint Venture, for an aggregate purchase price of $1.8 billion (the “2014 Acquisitions”). The Company purchased the 2014 Acquisitions with net proceeds from the Offerings and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for acquisitions purchased during the year endedDecember 31, 2014 (in thousands):

		December 31, 2014
Land	$	437,206
Building and improvements		1,152,148
Acquired in-place leases		154,972
Acquired above market leases		23,430
Acquired below market leases		24,620
Fair value adjustment of assumed notes payable		(765	)
Total purchase price	$	1,791,611

F-16

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Company recorded revenue for the year endedDecember 31, 2014 of $61.2 million and a net loss for the year endedDecember 31, 2014 of $25.7 million related to the 2014 Acquisitions.

The following information summarizes selected financial information of the Company as if all of the 2014 Acquisitions were completed on January 1, 2013 for each period presented below. The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the years ended December 31, 2014 and 2013 (in thousands):

	Year Ended December 31,
	2014		2013
Pro forma basis (unaudited):
Revenue	$	332,860	$	245,969
Net income (loss)	$	131,001	$	(53,805	)

The unaudited pro forma information for the year endedDecember 31, 2014 was adjusted to exclude $51.8 million of acquisition-related expenses recorded during the year ended December 31, 2014. These costs were recognized in the unaudited pro forma information for the year endedDecember 31, 2013. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2013, nor does it purport to represent the results of future operations.

2014 Development Project

During the year endedDecember 31, 2014, the Company acquired one land parcel, upon which a 1.6 million square foot industrial property is expected to be constructed. The land, acquired for an aggregate amount of $23.9 million, is included in buildings and improvements on the accompanying consolidated balance sheets and excluded from the 2014 Acquisitions. As of December 31, 2014, the Company had a total investment of $36.7 million and has committed to invest an additional estimated amount of $66.7 million related to the development project.

2014 Land Disposition

During the year endedDecember 31, 2014, the Company sold one undeveloped land parcel for a gross sales price of $1.9 million, resulting in net cash proceeds of $1.8 million to the Company and a loss of $157,000.

Escrowed Funds for Acquisition of Real Estate Investments

In anticipation of closing on two properties, the Company funded $70.3 million to an escrow account on September 30, 2014, which was returned when the both of the properties closed and the title was transfered during the quarter ended December 31, 2014. As of December 31, 2014, there were no amounts included in escrowed funds for acquisition of real estate investments on the accompanying consolidated balance sheets.

2013 Property Acquisitions

During the year endedDecember 31, 2013, the Company acquired 248 commercial properties for an aggregate purchase price of $1.7 billion (the “2013 Acquisitions”). The Company purchased the 2013 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation (in thousands):

		December 31, 2013
Land	$	390,781
Building and improvements		1,103,390
Acquired in-place leases		175,520
Acquired above market leases		26,921
Acquired below market leases		(31,802	)
Total purchase price	$	1,664,810

The Company recorded revenue for the year endedDecember 31, 2013 of $60.4 million and a net loss for the year endedDecember 31, 2013 of $25.7 million related to the 2013 Acquisitions.

F-17

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following information summarizes selected financial information of the Company as if all of the 2013 Acquisitions were completed on January 1, 2012 for each period presented below. The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2013		2012
Pro forma basis (unaudited):
Revenue	$	181,859	$	147,515
Net income	$	44,490	$	(30,842	)

The unaudited pro forma information for the year endedDecember 31, 2013 was adjusted to exclude $48.3 million of acquisition-related expenses recorded during the year endedDecember 31, 2013. These costs were recognized in the unaudited pro forma information for the year ended December 31, 2012. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2012, nor does it purport to represent the results of future operations.

NOTE 5 — INTANGIBLE LEASE ASSETS

Intangible lease assets consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
In-place leases, net of accumulated amortization of $41,739 and
	$12,523, respectively (with a weighted average life remaining of 12.4 years
	and 13.4 years, respectively)	$	344,664	$	218,407
Acquired above market leases, net of accumulated amortization of $6,346 and
	$1,975, respectively (with a weighted average life remaining of 10.5 years and
	11.4 years, respectively)	47,253		28,194
		$	391,917	$	246,601

Amortization expense related to the in-place lease assets for the years ended December 31, 2014, 2013 and 2012, was $29.6 million, $11.7 million and $871,000, respectively. Amortization expense related to the acquired above market lease assets for the years ended December 31, 2014, 2013 and 2012, was $4.4 million, $1.9 million and $36,000, respectively, and was recorded as a reduction to rental and other property income in the consolidated statements of operations.

Estimated amortization expense related to the intangible lease assets as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

	Amortization
Year Ending December 31,	In-Place Leases		Above Market Leases
2015	$	37,291	$	5,835
2016	$	34,768	$	5,568
2017	$	33,022	$	5,305
2018	$	30,945	$	4,471
2019	$	28,069	$	3,556

NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, the Company uses certain types of derivative instruments for the purpose of managing or hedging its interest rate risks. The following table summarizes the terms of the Company’s executed swap agreements designated as hedging instruments as of December 31, 2014 and 2013 (in thousands):

F-18

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Outstanding Notional

Fair Value of Liabilities

Balance Sheet

Amount as of

Interest

Effective

Maturity

December 31,

December 31,

Location

December 31, 2014

Rates (1)

Dates

Dates

2014

2013

Interest Rate Swaps

Deferred rental income and other liabilities

$

338,737

3.36% to 4.75%

6/24/2013 to 8/23/2013

6/24/2018 to 8/24/2020

$

(4,057

)

$

(2,252

)

(1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread.

Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3. The notional amount under the interest rate swap agreements is an indication of the extent of the Company’s involvement in each instrument, but does not represent exposure to credit, interest rate or market risks.

Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges, to hedge the variability of the anticipated cash flows on its variable rate debt. The change in fair value of the effective portion of the derivative instruments that is designated as hedges are recorded in other comprehensive income (loss). Any ineffective portion of the change in fair value of the derivative instruments is recorded in interest expense.

The following table summarizes the unrealized losses on the Company’s derivative instruments and hedging activities during the years endedDecember 31, 2014 and 2013 (in thousands). The Company did not own any derivative instruments during the year endedDecember 31, 2012.

	Amount of Loss Recognized in Other Comprehensive Loss
	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2014			2013
Interest Rate Swaps (1)	$	(1,805	)	$	(2,252	)

(1)	There were no portions of the change in the fair value of the interest rate swap agreements that were considered
	ineffective during the year ended December 31, 2014. No previously effective portions of the losses
	that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were
	reclassified into earnings during the year ended December 31, 2014.

The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on certain of its unsecured indebtedness, then the Company could also be declared in default on its derivative obligations resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $4.6 million at December 31, 2014. In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. During the year ended December 31, 2014, there were no termination events or events of default related to the interest rate swaps.

F-19

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 7 — NOTES PAYABLE AND CREDIT FACILITY

As of December 31, 2014, the Company had $1.5 billion of debt outstanding, with a weighted average years to maturity of 5.0 years and weighted average interest rate of 3.1%. The following table summarizes the debt balances as of December 31, 2014 and 2013, and the debt activity for the year endedDecember 31, 2014 (in thousands):

			During the Year Ended December 31, 2014
	Balance as of December 31, 2013		Debt Issuances and Assumptions		Repayments			Other (1)	Balance as of December 31, 2014
Fixed rate debt	$	396,946	$	169,278	$	(388	)	671	$	566,507
Credit facility	300,000		600,000		—			—	900,000
Total	$	696,946	$	769,278	$	(388	)	671	$	1,466,507

(1) Represents fair value adjustment of an assumed mortgage note payable, net of amortization.

As of December 31, 2014, the fixed rate debt outstanding of $566.5 million included $38.7 million of variable rate debt subject to interest rate swap agreements, which had the effect of fixing the variable interest rates per annum through the maturity date of the variable rate debt. In addition, the fixed rate debt includes a mortgage note assumed with a face amount of $25.2 million and a fair value of $26.0 million at the date of assumption. The fixed rate debt has interest rates ranging from 3.35% to 4.98% per annum. The debt outstanding matures on various dates from June 2018 through December 2024. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $944.6 million as of December 31, 2014. Each of the mortgage notes payable comprising the fixed rate debt is secured by the respective properties on which the debt was placed.

The Company has an amended and restated unsecured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan Chase”), which during 2014 provides for borrowings of up to $900.0 million, which includes a $300.0 million unsecured term loan (the “Term Loan”) and up to $600.0 million in unsecured revolving loans (the “Revolving Loans”). The Credit Facility may be increased up to a maximum of $1.6 billion. The Term Loan matures on August 15, 2018 and the Revolving Loans mature on August 15, 2017; however, the Company may elect to extend the maturity date for the Revolving Loans to August 15, 2018 subject to satisfying certain conditions set forth in the amended and restated unsecured credit agreement among CCPT IV OP and JPMorgan Chase, as administrative agent (as amended prior to the date hereof, the “Amended and Restated Credit Agreement”). Depending upon the type of loan specified and overall leverage ratio, the Revolving Loans bear interest at one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.65% to 2.50% (the “Spread”) or a base rate, ranging from 0.65% to 1.50%, plus the greater of (a) JPMorgan Chase’s Prime Rate; (b) the Federal Funds Effective Rate (as defined in the Amended and Restated Credit Agreement) plus 0.50%; or (c) the Eurodollar Rate plus 1.00%. The Company executed a swap agreement associated with the Term Loan, which had the effect of fixing the variable interest rate per annum on August 15, 2013 through the maturity date of the loan at 1.713% (the “Swap Rate”). Based on the Company’s leverage ratio, the Term Loan bears interest at the Swap Rate plus the Spread, which totaled 3.36% as of December 31, 2014, and the Revolving Loans had an interest rate of 1.97% as of December 31, 2014. As of December 31, 2014, the Company had $900 million outstanding under the Credit Facility.

The Amended and Restated Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Amended and Restated Credit Agreement requires the Company to maintain a minimum consolidated net worth of at least $2.0 billion as of December 31, 2014, a leverage ratio less than 60%, a fixed charge coverage ratio greater than 1.50, an unsecured debt to unencumbered asset value ratio equal to or less than 50%, an unsecured debt service coverage ratio greater than 1.75 and a secured debt ratio equal to or less than 30%. The Company was in compliance with the covenants under the Amended and Restated Credit Agreement as of December 31, 2014.

F-20

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt as of December 31, 2014 for each of the five succeeding fiscal years and the period thereafter (in thousands):

Year Ending December 31,	Principal Repayments
2015	$	408
2016	425
2017	600,451
2018	324,211
2019	499
Thereafter	539,842
Total	$	1,465,836

NOTE 8 — ACQUIRED BELOW MARKET LEASE INTANGIBLES

Acquired below market lease intangibles consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
Acquired below market leases, net of accumulated amortization of $8,807
	and $2,237, respectively (with a weighted average life remaining of 9.2
	years and 11.6 years, respectively)	$	55,535	$	37,485

Amortization of the intangible lease liabilities during the years ended December 31, 2014 and 2013, was $6.6 million and $2.1 million, respectively, and was recorded as an addition to rental and other property income in the consolidated statements of operations.

Estimated amortization of the intangible lease liabilities as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

Year Ending December 31,	Amortization of Below Market Leases
2015	$	8,570
2016	$	8,122
2017	$	7,908
2018	$	7,588
2019	$	6,999

F-21

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 9 — SUPPLEMENTAL CASH FLOW DISCLOSURES

Supplemental cash flow disclosures for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	$	16,189		$	10,569		$	1,456
Accrued other offering costs due to affiliates	$	—		$	4,937		$	1,661
Accrued capital expenditures	$	7,721		$	1,760		$	2,815
Common stock issued through distribution reinvestment plan	$	104,261		$	25,702		$	1,964
Net unrealized loss on interest rate swaps	$	(1,805	)	$	(2,252	)	$	—
Contingent consideration recorded upon property acquisitions	$	5,342		$	553		$	708
Fair value of assumed bond obligations	$	25,979		$	—		$	591
Supplemental Cash Flow Disclosures:
Interest paid	$	31,159		$	17,474		$	783

NOTE 10 — COMMITMENTS AND CONTINGENCIES

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. The Company is not aware of any pending legal proceedings of which the outcome is reasonably possible to have a material effect on its results of operations, financial condition or liquidity.

Purchase Commitments

As of December 31, 2014, the Company had entered into purchase agreements with unaffiliated third-party sellers to acquire a 100% interest in 36 retail properties, subject to meeting certain criteria, for an aggregate purchase price of $86.4 million, exclusive of closing costs. As of December 31, 2014, the Company had $4.8 million of property escrow deposits held by escrow agents in connection with these future property acquisitions, of which $4.8 million will be forfeited if the transactions are not completed under certain circumstances. In connection with one of these purchase and sale agreements, the Company is contractually obligated to purchase 25 properties, of which the Company had purchased 22 properties as of December 31, 2014 and expects to purchase the remaining three properties. If the remaining three properties are not purchased, the Company will be obligated to pay the seller $10.0 million. These deposits are included in the consolidated balance sheets in property escrow deposits, prepaid expenses and other assets. None of these escrow deposits have been forfeited.

Environmental Matters

In connection with the ownership and operation of real estate, the Company potentially may be liable for costs and damages related to environmental matters. The Company owns certain properties that are subject to environmental remediation. In each case, the seller of the property, the tenant of the property and/or another third party has been identified as the responsible party for environmental remediation costs related to the respective property. Additionally, in connection with the purchases of certain of the properties, the respective sellers and/or tenants have indemnified the Company against future remediation costs. In addition, the Company carries environmental liability insurance on its properties that provides limited coverage for remediation liability and pollution liability for third-party bodily injury and property damage claims. Accordingly, the Company does not believe that it is reasonably possible that the environmental matters identified at such properties will have a material effect on its results of operations, financial condition or liquidity, nor is it aware of any environmental matters at other properties which it believes are reasonably possible to have a material effect on its results of operations, financial condition or liquidity.

NOTE 11 — RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS

The Company has incurred commissions, fees and expenses payable to CR IV Advisors and certain of its affiliates in connection with the Offering and the acquisition, management and disposition of its assets.

F-22

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Offering

In connection with the Offering, CCC, the Company’s dealer manager for the Offering, received selling commissions of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. CCC reallowed 100% of selling commissions earned to participating broker-dealers. In addition, CCC received up to 2.0% of gross offering proceeds before reallowance to participating broker-dealers as a dealer manager fee in connection with the primary portion of the Offering. CCC, in its sole discretion, could have reallowed a portion of its dealer manager fee to such participating broker-dealers. No selling commissions or dealer manager fees are or were paid to CCC or other broker-dealers with respect to shares sold pursuant to the DRIP portion of the Offering or the DRIP Offering.

All other organization and offering expenses associated with the sale of the Company’s common stock in the Offering (excluding selling commissions and dealer manager fees) were paid by CR IV Advisors or its affiliates and were reimbursed by the Company up to 2.0% of aggregate gross offering proceeds. A portion of the other organization and offering expenses were considered to be underwriting compensation.

The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Offering:
Selling commissions (1)	$	55,921	$	122,082	$	20,107
Selling commissions reallowed by CCC	$	55,921	$	122,082	$	20,107
Dealer manager fees (1)	$	16,780	$	35,685	$	5,944
Dealer manager fees reallowed by CCC	$	9,326	$	20,183	$	3,104
Other organization and offering expenses	$	7,277	$	36,179	$	5,983

(1) Selling commissions and dealer manager fees are reduced by amounts recouped in connection with cancellations of common stock during the year ended December 31, 2014. These amounts are included in redemptions and net cancellations of common stock in the accompanying consolidated statements of stockholders’ equity.

For the year endedDecember 31, 2014, none of the amounts shown above had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering. For the years ended December 31, 2013 and 2012, approximately $4.9 million and $1.7 million of the amounts shown above had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering.

Acquisitions and Operations

CR IV Advisors or its affiliates also receive acquisition fees of up to 2.0% of: (1) the contract purchase price of each property or asset the Company acquires; (2) the amount paid in respect of the development, construction or improvement of each asset the Company acquires; (3) the purchase price of any loan the Company acquires; and (4) the principal amount of any loan the Company originates. Additionally, CR IV Advisors or its affiliates are reimbursed for acquisition-related expenses incurred in the process of acquiring properties, so long as the total acquisition fees and expenses relating to the transaction do not exceed 6.0% of the contract purchase price.

The Company pays CR IV Advisors a monthly advisory fee based upon the Company’s monthly average invested assets, which is equal to the following amounts: (1) an annualized rate of 0.75% paid on the Company’s average invested assets that are between $0 to $2.0 billion; (2) an annualized rate of 0.70% paid on the Company’s average invested assets that are between $2.0 billion to $4.0 billion; and (3) an annualized rate of 0.65% paid on the Company’s average invested assets that are over $4.0 billion.

The Company reimburses CR IV Advisors for the expenses it paid or incurred in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse for any amount by which its operating expenses (including the advisory fee) at the end of the four preceding fiscal quarters exceeds the greater of: (1) 2.0% of average invested assets, or (2) 25.0% of net income other than any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of assets for that period. The Company will not reimburse for personnel costs in connection with services for which CR IV Advisors receives acquisition fees.

F-23

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The Company recorded fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Acquisition and Operations:
Acquisition fees and expenses	$	38,483	$	35,109	$	10,342
Advisory fees and expenses	$	24,152	$	10,549	$	812
Operating expenses	$	3,383	$	2,905	$	138

Of the amounts shown above, $5.5 million, $2.6 million and $268,000 had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the acquisition and operations stage during the years ended December 31, 2014, 2013 and 2012 respectively, and the $5.5 million incurred but not yet paid as of December 31, 2014 was a liability to the Company as of such date.

Liquidation/Listing

If CR IV Advisors or its affiliates provide a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, the Company will pay CR IV Advisors or its affiliates a disposition fee in an amount equal to up to one-half of the brokerage commission paid on the sale of the property, not to exceed 1.0% of the contract price of the property sold; provided, however, in no event may the disposition fee paid to CR IV Advisors or its affiliates, when added to the real estate commissions paid to unaffiliated third parties, exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price.

If the Company is sold or its assets are liquidated, CR IV Advisors will be entitled to receive a subordinated performance fee equal to 15.0% of the net sale proceeds remaining after investors have received a return of their net capital invested and an 8.0% annual cumulative, non-compounded return. Alternatively, if the Company’s shares are listed on a national securities exchange, CR IV Advisors will be entitled to a subordinated performance fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus all distributions paid by the Company prior to listing, exceeds the sum of the total amount of capital raised from investors and the amount of distributions necessary to generate an 8.0% annual cumulative, non-compounded return to investors. As an additional alternative, upon termination of the advisory agreement, CR IV Advisors may be entitled to a subordinated performance fee similar to the fee to which CR IV Advisors would have been entitled had the portfolio been liquidated (based on an independent appraised value of the portfolio) on the date of termination.

During each of the years ended December 31, 2014, 2013 and 2012, no commissions or fees were incurred for any services provided by CR IV Advisors and its affiliates in connection with the liquidation/listing stage.

Due to Affiliates

As of December 31, 2014, $5.5 million had been incurred primarily for advisory, operating and acquisition-related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company. As of December 31, 2013, $7.5 million had been incurred primarily for offering, advisory, operating and acquisition-related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company. These amounts were included in due to affiliates in the consolidated balance sheets as of such periods.

NOTE 12 — ECONOMIC DEPENDENCY

Under various agreements, the Company has engaged or will engage CR IV Advisors and its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon CR IV Advisors and its affiliates. In the event that these companies are unable to provide the Company with these services, the Company would be required to find alternative providers of these services.

F-24

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

NOTE 13 — STOCKHOLDERS’ EQUITY

As of December 31, 2014, the Company registered 26.0 million shares of common stock pursuant to the DRIP Offering. All shares of such stock have a par value of $0.01 per share. The par value of investor proceeds raised from the DRIP Offering is classified as common stock, with the remainder allocated to capital in excess of par value.

As of December 31, 2013 and 2012, the Company was authorized to issue 490.0 million shares of common stock and 10.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. On August 11, 2010, the Company sold 20,000 shares of common stock, at $10.00 per share, to Cole Holdings Corporation (“CHC”). On April 5, 2013, the ownership of such shares was transferred to CREInvestments, LLC (“CREI”). On February 7, 2014, the ownership of such shares was transferred to ARC Properties Operating Partnership, L.P. (“ARCP OP”). Pursuant to the Company’s charter, ARCP OP is prohibited from selling the 20,000 shares of the common stock that represents the initial investment in the Company for so long as Cole Capital remains the Company’s sponsor; provided, however, that ARCP OP may transfer ownership of all or a portion of these 20,000 shares of the Company’s common stock to other affiliates of the Company’s sponsor. The Company ceased offering shares of its common stock in the Offering on April 4, 2014 and registered 26.0 million shares of common stock under the DRIP Offering.

Distribution Reinvestment Plan

Pursuant to the DRIP, the Company allows stockholders to elect to have their distributions reinvested in additional shares of the Company’s common stock. The purchase price per share under the DRIP Offering is $9.50 per share. The Company’s board of directors may terminate or amend the DRIP Offering at the Company’s discretion at any time upon ten days prior written notice to the stockholders. During the years ended December 31, 2014, 2013 and 2012, approximately 11.0 million, 2.7 million and 207,000 shares were purchased under the DRIP portion of the Offering and the DRIP Offering for approximately $104.3 million, $25.7 million and $2.0 million, respectively.

Share Redemption Program

The Company’s share redemption program permits its stockholders to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

The share redemption program provides that the Company will redeem shares of its common stock from requesting stockholders, subject to the terms and conditions of the share redemption program. The Company will limit the number of shares redeemed pursuant to the share redemption program as follows: (1) the Company will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited to the net proceeds the Company receives from the sale of shares under the DRIP. In an effort to accommodate redemption requests throughout the calendar year, the Company intends to limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12 month period ending on the last day of the fiscal quarter, and funding for redemptions for each quarter generally will be limited to the net proceeds the Company receives from the sale of shares in the respective quarter under the DRIP. 

Until such time as the Company's shares are listed on a national securities exchange or, if the shares are not listed, until such time as the Board determines a reasonable estimate of the value of the Company’s shares, the redemption price per share (other than for shares purchased pursuant to the DRIP) will depend on the price paid for the shares and the length of time the stockholder has held such shares as follows: after one year from the purchase date, 95% of the amount paid for each share; after two years from the purchase date, 97.5% of the amount paid for each share; and after three years from the purchase date, 100% of the amount paid for each share. During this time period, the redemption price for shares purchased pursuant to the DRIP will be the amount paid for such shares. (In each case, the redemption price will be adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to the Company’s common stock). Accordingly, the redemption price will reflect a stockholder’s reduced purchase price if such stockholder received discounted or waived selling commissions and/or a waived dealer manager fee. At any time the Company is engaged in an offering of shares, the per share price for shares purchased under the redemption program will always be equal to or lower than the applicable per share offering price.

Upon receipt of a request for redemption, the Company may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. If the Company cannot purchase all shares presented for redemption in any fiscal quarter, based upon insufficient cash available and/or the limit on the number of shares the Company may redeem during any quarter or year, the Company will give priority to the redemption of deceased stockholders’ shares. The Company next will give priority to requests for full redemption of accounts with a balance of 250 shares or less at the time the Company receives the request, in

F-25

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

order to reduce the expense of maintaining small accounts. Thereafter, the Company will honor the remaining redemption requests on a pro rata basis. Following such quarterly redemption period, the unsatisfied portion of the prior redemption request must be resubmitted, prior to the last day of the new quarter. Unfulfilled requests for redemption will not be carried over automatically to subsequent redemption periods.

The Company redeems shares no later than the end of the month following the end of each fiscal quarter. Requests for redemption must be received on or prior to the end of the fiscal quarter in order for the Company to repurchase the shares in the month following the end of that fiscal quarter. The Board may amend, suspend or terminate the share redemption program at any time upon 30 days’ notice to the stockholders. During the years ended December 31, 2014 and 2013, the Company redeemed approximately 1.1 million and 123,000 shares, respectively, under the share redemption program for $10.6 million and $1.2 million, respectively. The Company did not redeem any shares during the year ended December 31, 2012.

NOTE 14 — INCOME TAXES

For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S stockholders’ basis (but not below zero) in their shares. The following table shows the character of the distributions the Company paid on a percentage basis for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Character of Distributions (Unaudited):	2014		2013		2012
Ordinary dividends	47	%	60	%	72	%
Nontaxable distributions	53	%	40	%	28	%
Total	100	%	100	%	100	%

As of December 31, 2014, the tax basis carrying value of the Company’s land and depreciable real estate assets was $3.9 billion. During the years ended December 31, 2014, 2013 and 2012, the Company distributed as dividends to its shareholders 100% of its taxable income for federal income tax purposes. Accordingly, no provision for federal income taxes related to such taxable income was recorded on the Company’s financial statements. During the years ended December 31, 2014, 2013 and 2012, the Company incurred state and local income and franchise taxes of $1.3 million, $473,000, and $113,000, respectively, which were recorded in general and administrative expenses in the consolidated statements of operations.

The Company had no unrecognized tax benefits as of or during the years ended December 31, 2014 and 2013. Any interest and penalties related to unrecognized tax benefits would be recognized within the provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, as well as various state jurisdictions, and is subject to routine examinations by the respective tax authorities.

NOTE 15 — OPERATING LEASES

The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2014, the leases had a weighted-average remaining term of 11.6 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants.

F-26

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

The future minimum rental income from the Company’s investment in real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of December 31, 2014, was as follows (in thousands):

Year Ending December 31,	Future Minimum Rental Income
2015	$	293,566
2016	287,849
2017	281,864
2018	271,222
2019	254,989
Thereafter	2,040,528
	$	3,430,018

NOTE 16 — QUARTERLY RESULTS (UNAUDITED)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2014 and 2013 (in thousands, except for per share amounts). In the opinion of management, the information for the interim periods presented includes all adjustments which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period.

	December 31, 2014
	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Revenues	$	51,551	$	56,861	$	64,591		$	83,279
Acquisition-related expenses	$	8,633	$	10,113	$	21,009		$	12,008
Operating income	$	10,564	$	10,790	$	3,698		$	20,378
Net income (loss)	$	2,946	$	3,190	$	(4,147	)	$	9,181
Net income (loss) attributable to the Company	$	2,946	$	3,204	$	(4,156	)	$	9,196
Basic and diluted net income (loss) per common share (1)	$	0.01	$	0.01	$	(0.01	)	$	0.03
Distributions declared per common share	$	0.15	$	0.16	$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2014.

	December 31, 2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Revenues	$	11,405		$	21,773		$	30,326		$	39,053
Acquisition-related expenses	$	5,639		$	14,551		$	10,356		$	17,740
Operating (loss) income	$	(1,055	)	$	(6,051	)	$	552		$	(4,142	)
Net loss	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Net loss attributable to the Company	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Basic and diluted net loss per common share (1)	$	(0.04	)	$	(0.13	)	$	(0.07	)	$	(0.12	)
Distributions declared per common share	$	0.15		$	0.16		$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2013.

NOTE 17 — SUBSEQUENT EVENTS

Issuance of Shares of Common Stock in the DRIP Offering

The Company continues to issue shares of common stock in the DRIP Offering. As of March 25, 2015, the Company had issued approximately 11.7 million shares pursuant to the DRIP Offering, resulting in gross proceeds to the Company of $111.4 million.

F-27

COLE CREDIT PROPERTY TRUST IV, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

Redemption of Shares of Common Stock

Subsequent to December 31, 2014 through March 25, 2015, the Company redeemed approximately 834,000 shares for $8.0 million (at an average price per share of $9.64).

Credit Facility

Subsequent to December 31, 2014 through March 25, 2015, the Company increased its Credit Facility, which now provides for borrowings of up to $1.0 billion, which includes a $386.7 million Term Loan and up to $643.3 million in Revolving Loans. As of March 25, 2015, the Company had $949.7 million outstanding under the Credit Facility. The Company also entered into two notes payable totaling $53.5 million, with a weighted average interest rate of 2.84% as of March 25, 2015.

Investment in Real Estate Assets

Subsequent to December 31, 2014 through March 25, 2015, the Company acquired 52 commercial real estate properties for an aggregate purchase price of $169.9 million. The acquisitions were funded with net proceeds from the Offering and available borrowings. Acquisition-related expenses totaling $3.4 million were expensed as incurred. The Company has not completed its initial purchase price allocations with respect to these properties and therefore cannot provide similar disclosures to those included in Note 4 in these consolidated financial statements for these properties.

Officer Appointment

Effective March 24, 2015, Thomas W. Roberts was appointed chairman of the board of directors by the Board.

Effective March 24, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board, replacing Simon J. Misselbrook as principal accounting officer of the Company. Mr. Misselbrook remains the chief financial officer, treasurer and principal financial officer of the Company.

F-28

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Real Estate Held for Investment the Company Has Invested in Under Operating Leases:
24 Hour Fitness:
	Beaverton, OR	$ (g)	$	2,609	$	9,974	$	—	$	12,583	$	73	9/30/2014	2009
	Fort Worth, TX	(g)	1,519		7,449		—		8,968		254		9/27/2013	2008
Aaron Rents:
	Hillsboro , OH	(g)	279		829		—		1,108		37		8/26/2013	2013
Academy Sports:
	Clarksville, TN	(g)	1,811		6,603		—		8,414		97		6/17/2014	2014
	Cookeville, TN (land parcel only)		—		23,847		12,841		36,688		—		9/30/2014	2015
	Douglasville, GA	(g)	1,360		8,593		—		9,953		131		6/12/2014	2014
	Flowood, MS	(g)	1,534		7,864		—		9,398		122		6/27/2014	2014
	McDonough, GA	(g)	1,846		5,626		—		7,472		111		4/24/2014	2010
	Valdosta, GA	5,838	2,482		5,922		—		8,404		286		5/10/2013	2012
Advance Auto:
	Corydon, IN	(g)	190		1,219		—		1,409		73		10/26/2012	2012
	Dearborn Heights, MI	(g)	385		1,090		—		1,475		37		8/30/2013	2013
	Decatur, AL	(g)	606		1,053		—		1,659		30		12/20/2013	2012
	Lake Geneva, WI	1,062	381		1,181		—		1,562		58		2/6/2013	2012
	Mt. Pleasant, IA	—	122		1,069		—		1,191		23		4/26/2014	2013
	North Ridgeville, OH	(g)	218		1,284		—		1,502		88		4/13/2012	2008
	Rutherfordton, NC	(g)	220		944		—		1,164		30		10/22/2013	2013
	Starkville, MS	(g)	447		756		—		1,203		55		6/29/2012	2011
Albany Square:
	Albany, GA	—	1,606		7,113		300		9,019		208		2/26/2014	2013
Almeda Crossing:
	Houston, TX	—	4,738		26,245		—		30,983		270		8/7/2014	2014
Amazon:
	Lebanon, TN	(g)	1,934		56,286		—		58,220		313		10/15/2014	2012
Applebee's:
	Greenville, SC	—	672		1,737		—		2,409		24		6/27/2014	2004
	Lithonia, GA	(g)	1,234		2,613		—		3,847		52		3/28/2014	2002
	Savannah, GA	—	818		1,686		—		2,504		28		5/22/2014	2006
Auto Zone:
	Philipburg, PA	—	815		—		112		927		—		10/15/2014	2015
	Sheffield, OH	(g)	152		1,304		—		1,456		85		7/27/2012	2010
Bass Pro Shop:
	Tallahassee, FL	(g)	945		5,713		—		6,658		222		8/20/2013	2013
Beavercreek Shopping Center:
	Beavercreek, OH	(g)	5,504		25,178		485		31,167		848		10/31/2013	2013
Bed Bath & Beyond/Golf Smith:
	Schaumburg, IL	—	4,786		6,149		—		10,935		380		3/8/2013	1997
Benihana:
	Golden Valley, MN	(g)	1,510		2,934		—		4,444		181		8/21/2012	1980
	Lauderdale by the Sea, FL	(g)	2,181		2,014		—		4,195		127		8/21/2012	1971
	Lombard, IL	(g)	1,390		2,343		—		3,733		173		8/21/2012	1984

S-1

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
	Woodlands, TX	$ (g)	$	1,151	$	968	$	—	$	2,119	$	62	8/21/2012	2001
Big Lots:
	San Angelo, TX	(g)	1,043		1,947		—		2,990		157		12/19/2012	1983
	Waco, TX	(g)	1,069		1,326		56		2,451		114		12/10/2012	2012
Biolife Plasma Services:
	Bellingham, WA	—	2,397		6,264		—		8,661		23		11/21/2014	2014
	Grandville, MI	—	959		4,791		—		5,750		16		11/21/2014	2014
	Loveland, CO	—	651		5,645		—		6,296		19		11/21/2014	2014
	Bloomington, IN	—	696		3,900		—		4,596		55		6/27/2014	2014
	Fort Wayne, IN	—	660		3,749		—		4,409		53		6/27/2014	2013
	St. Cloud, MN	—	889		3,633		—		4,522		57		6/27/2014	2013
	Waterloo, IA	—	489		3,380		—		3,869		53		6/27/2014	2013
Bojangles:
	Pelham, AL	—	219		1,216		—		1,435		18		6/30/2014	2010
Boston Commons:
	Springfield, MA	—	3,101		7,042		—		10,143		83		8/19/2014	2004
Bottom Dollar Grocery:
	Ambridge, PA	(g)	519		2,985		—		3,504		87		11/5/2013	2012
Brownsville Plaza:
	Baldwin, PA	—	627		2,702		—		3,329		70		2/28/2014	2012
Bryan Crossing:
	Kodak, TN	—	863		6,523		—		7,386		53		9/9/2014	2008
Buffalo Wild Wings:
	Idaho Falls, ID	—	712		1,336		—		2,048		16		7/29/2014	2008
	Warrenville, IL	(g)	1,208		1,420		—		2,628		85		3/28/2013	2004
	Woodridge, IL	(g)	1,139		1,484		—		2,623		88		3/28/2013	2005
Caliber Collision Center:
	Frisco, TX	(g)	1,484		2,038		—		3,522		17		9/16/2014	2014
	Las Cruces, MN	(g)	673		1,949		—		2,622		39		3/21/2014	2014
	Midwest City, OK	—	259		1,165		—		1,424		26		2/21/2014	1984
	Denver, CO	—	855		658		—		1,513		9		6/25/2014	1975
	San Antonio, TX	—	622		832		—		1,454		12		6/4/2014	2014
Canton Marketplace:
	Canton, GA	32,000	8,310		48,667		780		57,757		2,838		3/28/2013	2008
Carlisle Crossing:
	Carlisle, PA	—	4,491		15,817		—		20,308		177		9/18/2014	2006
Canarsie Plaza:
	Brooklyn, NY	75,000	37,970		71,267		790		110,027		3,680		12/5/2012	2011
Century Plaza:
	Orlando, FL	—	3,094		6,178		—		9,272		114		7/21/2014	2008
Chase:
	Hanover Township, NJ	(g)	2,192		—		—		2,192		—		12/18/2013	2010
Chestnut Square:
	Brevard, NC	(g)	425		5,037		—		5,462		216		6/7/2013	2008
Chili's:
	Forest City, NC	(g)	233		1,936		—		2,169		14		9/3/2014	2003
Coosa Town Center:
	Gadsden, AL	—	3,246		7,799		—		11,045		244		12/20/2013	2004

S-2

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Cost Plus World Market:
	Kansas City, MO	$ (g)	$	1,378	$	2,396	$	—	$	3,774	$	185	11/13/2012	2001
Costco:
	Tallahassee, FL	5,146	9,497		—		—		9,497		—		12/11/2012	(f)
Cottonwood Commons:
	Albuquerque, NM	19,250	4,986		28,881		519		34,386		1,139		7/19/2013	2013
Coventry Crossing:
	Coventry , RI	6,000	3,462		5,899		—		9,361		219		9/12/2013	2008
Crosspoint:
	Hagerstown, MD	(g)	12,285		14,359		—		26,644		140		9/30/2014	2000
Crossroads Annex:
	Lafayette, LA	—	1,659		7,091		—		8,750		212		12/4/2013	2013
Crossroads Commons:
	Plover, WI	(g)	1,000		4,515		75		5,590		155		12/10/2013	2012
CVS:
	Arnold, MO	(g)	2,043		2,367		—		4,410		63		12/13/2013	2013
	Asheville, NC	(g)	1,108		1,084		—		2,192		77		4/26/2012	1998
	Austin, TX	(g)	1,076		3,475		—		4,551		93		12/13/2013	2013
	Bainbridge, GA	(g)	444		1,682		47		2,173		112		6/27/2012	1998
	Bloomington, IN	(g)	1,620		2,957		—		4,577		79		12/13/2013	2012
	Blue Springs, MO	(g)	395		2,722		—		3,117		73		12/13/2013	2013
	Bridgeton, MO	(g)	2,056		2,362		—		4,418		63		12/13/2013	2013
	Cartersville, GA	—	2,547		—		—		2,547		—		10/22/2012	(f)
	Charleston, SC	(g)	869		1,009		—		1,878		72		4/26/2012	1998
	Chesapeake, VA	(g)	1,044		3,053		—		4,097		83		12/13/2013	2013
	Chicago, IL	(g)	1,832		4,255		—		6,087		191		3/20/2013	2008
	Cicero, IN	(g)	487		3,099		—		3,586		83		12/13/2013	2013
	Corpus Christi, TX	(g)	648		2,557		—		3,205		176		4/19/2012	1998
	Danville, IN	—	424		2,105		—		2,529		26		7/16/2014	1998
	Eminence, KY	(g)	872		2,511		—		3,383		66		12/13/2013	2013
	Florence, AL	1,735	1,030		1,446		—		2,476		68		3/27/2013	2000
	Goose Creek, SC	(g)	1,022		1,980		—		3,002		53		12/13/2013	2013
	Greenwood, IN	(g)	912		3,549		—		4,461		130		7/11/2013	1999
	Hanover Township, NJ	(g)	4,746		—		—		4,746		—		12/18/2013	2012
	Hazlet, NJ	(g)	3,047		3,610		—		6,657		96		12/13/2013	2013
	Honesdale, PA	(g)	1,206		3,342		—		4,548		92		12/13/2013	2013
	Independence, MO	(g)	359		2,242		—		2,601		60		12/13/2013	2013
	Indianapolis, IN	(g)	1,110		2,484		—		3,594		67		12/13/2013	2013
	Irving, TX	(g)	745		3,034		—		3,779		172		10/5/2012	2000
	Jacksonville, FL	(g)	2,182		3,817		—		5,999		45		7/16/2014	2004
	Janesville, WI	(g)	736		2,545		—		3,281		68		12/13/2013	2013
	Katy, TX	(g)	1,149		2,462		—		3,611		65		12/13/2013	2013
	Lincoln, NE	(g)	2,534		3,014		—		5,548		80		12/13/2013	2013

S-3

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
CVS (continued):
	London, KY	$ (g)	$	1,445	$	2,661	$	—	$	4,106	$	88	9/10/2013	2013
	Middletown, NY	(g)	665		5,483		—		6,148		145		12/13/2013	2013
	North Wilkesboro, NC	(g)	332		2,369		—		2,701		72		10/25/2013	1999
	Poplar Bluff, MO	(g)	1,861		2,211		—		4,072		60		12/13/2013	2013
	Salem, NH	(g)	3,456		2,351		—		5,807		67		11/18/2013	2013
	San Antonio, TX	(g)	1,893		1,848		—		3,741		50		12/13/2013	2013
	Sand Springs, OK	(g)	1,765		2,283		—		4,048		62		12/13/2013	2013
	Santa Fe, NM	(g)	2,243		4,619		—		6,862		122		12/13/2013	2013
	Sedalia, MO	(g)	466		2,318		—		2,784		62		12/13/2013	2013
	St. John, MO	(g)	1,546		2,601		—		4,147		70		12/13/2013	2013
	Temple Hills, MD	(g)	1,817		2,989		—		4,806		98		9/30/2013	2001
	Vineland, NJ	(g)	813		2,926		—		3,739		81		12/13/2013	2010
	Waynesboro, VA	(g)	986		2,708		—		3,694		73		12/13/2013	2013
	West Monroe, LA	(g)	1,738		2,136		—		3,874		58		12/13/2013	2013
Darien Towne Center:
	Darien, IL	(g)	6,718		11,951		871		19,540		427		12/17/2013	1994
DaVita:
	Riverview, MI	(g)	199		2,322		—		2,521		21		9/4/2014	2012
Decatur Commons:
	Decatur, AL	7,000	2,478		9,333		—		11,811		372		7/10/2013	2004
Deltona Commons:
	Deltona, FL	(g)	1,424		7,760		—		9,184		313		6/18/2013	2007
Dick’s Sporting Goods:
	Oklahoma City (3rd), OK	(g)	1,198		7,838		—		9,036		457		12/21/2012	2012
	Oklahoma City, OK	(g)	685		10,587		—		11,272		602		12/31/2012	2012
Dollar General:
	Abbeville, AL	—	294		1,302		—		1,596		7		10/3/2014	2014
	Akron, AL	(g)	69		771		—		840		29		8/6/2013	2013
	Akron, OH	(g)	112		1,099		—		1,211		35		11/1/2013	2013
	Alliance, NE	(g)	97		812		—		909		41		4/9/2013	2013
	Alton, TX	—	94		922		—		1,016		7		9/5/2014	2014
	Arapahoe, NE	—	44		873		—		917		7		9/5/2014	2014
	Asheville, NC	—	379		753		—		1,132		34		6/17/2013	2013
	Ashville, AL	666	255		678		—		933		42		12/21/2012	2012
	Atmore, AL	—	243		858		—		1,101		20		2/25/2014	2014
	Bainbridge, OH	(g)	106		1,175		—		1,281		44		9/13/2013	2013
	Belle, MO	—	51		880		—		931		7		9/5/2014	2014
	Berry, AL	—	104		1,196		—		1,300		9		9/26/2014	2014
	Bessemer, AL	(g)	142		941		—		1,083		33		9/27/2013	2013
	Bloomfield, NE	—	50		845		—		895		1		12/16/2014	2014
	Blue Rapids, KS	—	52		880		—		932		5		10/22/2014	2014
	Bluefield, WV	—	337		686		—		1,023		4		10/15/2014	2014
	Bokchito, OK	(g)	59		859		—		918		47		2/27/2013	2013
	Botkins, OH	(g)	130		991		—		1,121		37		9/27/2013	2013

S-4

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Dollar General (continued):
	Brandon, SD	$	—	$	292	$	871	$	—	$	1,163	$	5	10/31/2014	2014
	Breaux Bridge, LA	840		225		1,007		—		1,232		58		11/30/2012	2012
	Broken Bow, NE	(g)		91		878		—		969		26		11/1/2013	2013
	Brownsville, TX	822		264		943		—		1,207		51		11/30/2012	2012
	Buffalo, NY	—		122		1,099		—		1,221		1		12/5/2014	2014
	Clay, AL	792		305		768		—		1,073		43		2/8/2013	2012
	Cleveland, TX	684		158		856		—		1,014		46		11/30/2012	2012
	Columbus, OH	—		279		1,248		—		1,527		40		11/7/2013	2013
	Conroe, TX	756		167		946		—		1,113		50		12/18/2012	2012
	Crystal Springs, MS	(g)		463		3,027		—		3,490		30		8/6/2014	2013
	Cullman, AL	—		159		824		—		983		8		8/4/2014	2014
	Decatur, IL (Taylorville)	—		133		986		—		1,119		14		6/18/2014	2014
	Decatur, IL (Eldorado)	—		219		964		—		1,183		7		9/8/2014	2014
	Delcambre, LA	(g)		169		1,025		—		1,194		35		9/27/2013	2013
	Delhi, LA	(g)		301		1,033		—		1,334		38		8/9/2013	2013
	Deridder (Hwy 26), LA	(g)		135		923		—		1,058		32		9/27/2013	2013
	Deridder (Hwy 190), LA	(g)		176		905		—		1,081		33		8/9/2013	2013
	Des Moines, IA	(g)		166		943		—		1,109		35		8/9/2013	2012
	Dora, AL	—		124		935		—		1,059		7		9/26/2014	2014
	Dundee, MI	(g)		296		1,047		—		1,343		30		11/26/2013	2013
	Edinburg, TX	—		146		809		—		955		10		7/31/2014	2014
	Eight Mile, AL	—		110		865		—		975		13		6/23/2014	2014
	Elk Point, SD	—		97		839		—		936		7		9/22/2014	2014
	Ellerslie, GA	—		247		797		—		1,044		15		4/17/2014	2014
	Eufaula, AL	—		300		930		—		1,230		12		7/22/2014	2014
	Farmington, NM	—		175		919		—		1,094		7		9/5/2014	2014
	Fred, TX	(g)		93		929		—		1,022		26		12/19/2013	2013
	Fort Valley, GA	(g)		514		2,436		—		2,950		102		7/9/2013	2013
	Fruitport, MI	—		100		968		—		1,068		13		6/25/2014	2014
	Geneva, AL	738		204		815		—		1,019		49		12/21/2012	2012
	Geraldine, AL	—		220		1,146		—		1,366		19		5/30/2014	2014
	Greenwell Springs, LA	870		444		841		—		1,285		49		11/30/2012	2012
	Groveport, OH	822		416		813		—		1,229		42		3/15/2013	2012
	Hamilton, AL	—		208		1,024		—		1,232		6		10/16/2014	2014
	Hanceville, AL	2,029		1,232		1,488		—		2,720		97		11/21/2012	2012
	Harlingen, TX	—		144		853		—		997		13		6/20/2014	2014
	Harvest, AL	684		261		691		—		952		43		12/21/2012	2012
	Harviell, MO	—		50		818		—		868		18		3/31/2014	2014
	Hastings, NE	—		177		850		—		1,027		5		10/22/2014	2014
	Hayneville, AL	—		249		1,181		—		1,430		12		8/15/2014	2014
	Hillsboro, OH	—		262		956		—		1,218		7		9/25/2014	2014
	Hinton, WV	—		199		1,367		—		1,566		13		8/18/2014	2014

S-5

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

		Initial Costs to Company						Gross Amount at
						Total		Which Carried		Accumulated
				Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Dollar General (continued):
Homeworth, OH	$ (g)	$	110	$	1,057	$	—	$	1,167	$	33	10/18/2013	2013
Houston, TX	966	311		1,102		—		1,413		58		12/18/2012	2012
Houston (Gears), TX	(g)	255		1,393		—		1,648		43		10/18/2013	2013
Huntsville, AL	768	177		847		—		1,024		51		12/21/2012	2012
Independence, MO	828	170		1,072		—		1,242		59		12/18/2012	2012
Kansas City (Oak), MO	(g)	283		1,068		—		1,351		35		10/18/2013	2013
Kansas City (Troost), MO	(g)	233		1,054		—		1,287		32		11/1/2013	2013
Kasson, MN	—	138		888		—		1,026		10		8/15/2014	2014
Kearney, NE	(g)	141		851		—		992		26		11/20/2013	2013
Kinston, AL	642	170		718		—		888		44		12/21/2012	2012
Kolona, IA	—	81		868		—		949		9		8/15/2014	2014
Lake Charles (Broad), LA	(g)	146		989		—		1,135		36		8/9/2013	2013
Lamesa, TX	—	75		803		—		878		10		7/31/2014	2014
Lansing, MI	—	232		939		—		1,171		13		6/25/2014	2014
Lebanon, TN	—	177		882		—		1,059		12		6/30/2014	2012
Leicester, NC	(g)	134		800		—		934		34		6/17/2013	2013
Lima, OH	810	156		1,040		—		1,196		57		11/30/2012	2012
Linden, AL	(g)	317		746		—		1,063		30		7/11/2013	2013
Lone Jack, MO	—	152		960		—		1,112		16		5/16/2014	2014
Los Fresnos, TX	—	55		867		—		922		7		9/19/2014	2014
Los Lunas, NM	—	113		857		—		970		15		5/14/2014	2014
Louisburg, KS	—	324		936		—		1,260		14		6/25/2014	2014
Loveland, OH	(g)	241		1,065		—		1,306		32		12/12/2013	2013
Lubbock, TX	744	468		641		—		1,109		36		12/18/2012	2012
Manhattan, KS	(g)	194		921		—		1,115		28		11/20/2013	2013
Mansfield, OH	(g)	72		1,226		—		1,298		33		12/12/2013	2013
Maple Lake, MN	—	92		893		—		985		5		10/10/2014	2014
Millbrook, AL	—	320		1,175		—		1,495		15		7/22/2014	2014
Mission, TX	—	182		858		—		1,040		7		9/5/2014	2014
Maynardville, TN	750	238		754		—		992		48		11/30/2012	2012
Mobile (Newman), AL	(g)	139		1,005		—		1,144		33		10/18/2013	2013
Mobile (Schillinger), AL	(g)	410		1,059		—		1,469		45		6/17/2013	2013
Monroeville, OH	(g)	131		1,069		—		1,200		33		10/4/2013	2013
Montgomery, AL	—	140		909		—		1,049		5		10/24/2014	2014
Moose Lake, MN	—	140		937		—		1,077		6		10/10/2014	2014
Moroa, IL	—	111		921		—		1,032		13		6/26/2014	2014
Mt. Vernon, IL	—	177		985		—		1,162		16		5/30/2014	2014
Nashville, GA	2,088	215		2,533		—		2,748		130		3/1/2013	2013
Nashville, MI	—	103		1,255		—		1,358		30		1/24/2014	2013
Navarre, OH	(g)	153		1,005		—		1,158		33		9/27/2013	2013
Neoga, IL	—	94		860		—		954		8		8/8/2014	2010
Ness City, KS	—	21		860		—		881		19		3/20/2014	2014

S-6

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Dollar General (continued):
	New Philadelphia, OH	$ (g)	$	129	$	1,100	$	—	$	1,229	$	36	9/27/2013	2013
	New Washington, OH	(g)	99		975		—		1,074		36		9/13/2013	2013
	Nitro, WV	—	451		1,034		—		1,485		14		6/30/2014	2013
	Nixa, MO	—	235		806		—		1,041		16		4/3/2014	2014
	Newark, OH	792	222		946		—		1,168		49		3/15/2013	2012
	North Lewisburg, OH	(g)	59		1,008		—		1,067		33		11/22/2013	2013
	Onawa, IA	—	176		842		—		1,018		12		6/26/2014	2014
	Opelousas, LA	(g)	92		947		—		1,039		31		10/4/2013	2013
	Ortonville, MN	—	113		907		—		1,020		8		9/5/2014	2014
	Oxford, AL	(g)	465		783		—		1,248		26		10/18/2013	2013
	Palestine, IL	—	155		893		—		1,048		13		6/26/2014	2014
	Parchment, MI	—	168		1,162		—		1,330		16		6/25/2014	2014
	Park Hill, OK	(g)	91		887		—		978		47		1/4/2013	2012
	Parsons, TN	—	166		1,136		—		1,302		14		7/16/2014	2013
	Phenix City, AL	(g)	331		718		—		1,049		31		6/17/2013	2013
	Piedmont, AL	1,980	1,037		1,579		—		2,616		104		11/21/2012	2012
	Pike Road, AL	(g)	477		772		—		1,249		29		8/21/2013	2013
	Plain City, OH	(g)	187		1,097		—		1,284		32		11/26/2013	2013
	Port Clinton, OH	(g)	120		1,070		—		1,190		31		11/22/2013	2013
	Princeton, MO	—	155		1,159		—		1,314		7		10/10/2014	2014
	Pueblo, CO	(g)	144		909		—		1,053		46		1/4/2013	2012
	Ragley, LA	(g)	196		877		—		1,073		33		8/9/2013	2013
	Rainsville, AL	—	290		1,267		—		1,557		13		8/13/2014	2014
	Ravenna, MI	—	199		958		—		1,157		23		1/24/2014	2013
	Rayne, LA	702	125		910		—		1,035		50		12/18/2012	2012
	Roanoke, IL	—	93		846		—		939		14		5/16/2014	2014
	Romney, IN	—	87		827		—		914		10		7/7/2014	2011
	Romulus, MI	—	274		1,171		—		1,445		24		3/7/2014	2013
	Russell, KS	—	54		899		—		953		9		8/5/2014	2014
	San Antonio, TX	—	295		743		—		1,038		10		7/31/2014	2014
	San Carlos, TX	—	70		1,063		—		1,133		15		6/20/2014	2014
	Seale, AL	(g)	259		767		—		1,026		25		10/28/2013	2013
	Seminole, AL	(g)	175		829		—		1,004		33		7/15/2013	2013
	Shelby, MI	—	128		1,033		—		1,161		25		1/24/2014	2013
	Slocomb, AL	—	124		918		—		1,042		22		2/25/2014	2014
	Snead, AL	—	126		1,137		—		1,263		9		9/26/2014	2014
	South Bay, FL	—	258		1,262		—		1,520		20		5/7/2014	2013
	Spring, TX	(g)	277		1,132		—		1,409		38		9/30/2013	2013
	Springfield, IL	—	205		934		—		1,139		7		9/17/2014	2014
	Springfield, MO	—	171		810		—		981		10		7/14/2014	2014
	Springfield, NE	—	172		864		—		1,036		15		5/12/2014	2014
	Springfield, OH	(g)	125		1,000		—		1,125		35		9/27/2013	2013
	St. Louis, MO (Grand)	(g)	229		1,102		—		1,331		31		12/31/2013	2013

S-7

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company							Gross Amount at
							Total			Which Carried		Accumulated
					Buildings &		Adjustment			At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis			(b) (c)		(d) (e)		Acquired	Constructed
Dollar General (continued):
	St. Louis, MO (Lewis & Clark)	$ (g)	$	240	$	1,118	$	—		$	1,358	$	29	1/15/2014	2013
	Superior, NE	(g)	230		917		—			1,147		28		11/26/2013	2013
	Temple, GA	(g)	200		917		—			1,117		40		5/15/2013	2013
	Theodore, AL	(g)	248		763		—			1,011		34		5/15/2013	2013
	Thibodaux, LA	(g)	211		1,083		—			1,294		37		9/27/2013	2013
	Toney, AL	642	86		792		—			878		42		3/21/2013	2012
	Urbana, OH	—	133		1,051		—			1,184		18		5/29/2014	2013
	Volga, SD	—	51		784		—			835		6		9/5/2014	2014
	Waco, TX	—	26		922		—			948		15		6/20/2014	2014
	Wagener, SC	—	477		1,169		—			1,646		9		9/16/2014	2014
	Wakefield, KS	(g)	78		929		—			1,007		33		9/30/2013	2013
	Waterloo, IA	—	330		908		—			1,238		3		11/5/2014	2014
	Weslaco, TX	—	141		848		—			989		7		9/5/2014	2014
	Weston, MO	(g)	117		1,012		—			1,129		40		7/17/2013	2013
	Wetumpka, AL	—	290		779		—			1,069		13		5/29/2014	2014
	Whitehouse, OH	(g)	134		1,144		—			1,278		35		10/18/2013	2013
	Whitwell, TN	870	159		1,035		—			1,194		66		11/30/2012	2012
	Wilmer, AL	(g)	99		775		—			874		29		8/5/2013	2013
	Winsted, MN	—	152		841		—			993		7		9/29/2014	2014
	Wisner, NE	—	37		773		—			810		13		5/12/2014	2014
	Woodville, OH	786	169		1,009		—			1,178		54		2/8/2013	2013
	Yatesville, GA	666	120		797		—			917		43		3/25/2013	2013
Dollar Tree/Petco:
	Humble, TX	(g)	720		2,543		—			3,263		133		2/11/2013	2011
Earth Fare:
	Huntersville, NC	3,183	1,439		2,973		—			4,412		156		2/28/2013	2011
East Manchester Village Center:
	Manchester, PA	—	2,517		12,672		202			15,391		365		12/19/2013	2009
East West Commons:
	Austell, GA	—	10,094		16,034		—			26,128		150		9/30/2014	1999
Emerald Place:
	Greenwood, SC	(g)	2,042		9,942		—			11,984		411		6/28/2013	2012
Evergreen Marketplace:
	Evergreen Park, IL	(g)	2,823		6,239		—			9,062		263		9/6/2013	2013
Fairview Village:
	Cary, NC	(g)	2,514		3,557		52			6,123		206		12/21/2012	2010
Family Center:
	Riverdale, UT	(g)	21,716		29,454		(1,028		)	50,142		786		2/28/2014	1995
Family Dollar:
	Aberdeen, ID	—	101		1,054		—			1,155		6		10/24/2014	2014
	Adelanto, GA	—	463		1,711		—			2,174		6		11/14/2014	2014
	Albany, GA	—	347		925		—			1,272		3		11/7/2014	2014
	Apple Springs, TX	—	91		804		—			895		3		11/14/2014	2014

S-8

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Family Dollar (continued):
	Bagley, MN	$	—	$	95	$	1,114	$	—	$	1,209	$	17	6/27/2014	2014
	Benavides, TX	—		27		1,065		—		1,092		27		2/26/2014	2013
	Berry, AL	—		122		880		—		1,002		3		11/14/2014	2014
	Bessemer, AL	(g)		201		1,043		—		1,244		29		12/27/2013	2013
	Broadway, VA	—		213		1,153		—		1,366		4		11/7/2014	2014
	Birmingham, AL	(g)		500		831		—		1,331		24		12/27/2013	2013
	Brooksville, FL	(g)		206		791		—		997		22		12/18/2013	2013
	Burkeville, TX	—		357		966		—		1,323		8		9/30/2014	2014
	Cascade, ID	—		267		1,147		—		1,414		25		2/4/2014	2013
	Cass Lake, MN	—		157		1,107		—		1,264		17		6/27/2014	2013
	Cathedral City, CA	(g)		658		1,908		—		2,566		15		9/19/2014	2014
	Charlotte, TX	—		118		970		—		1,088		24		2/26/2014	2014
	Cheyenne, WY	—		148		986		—		1,134		19		4/23/2014	2014
	Coachella, CA	—		450		1,634		—		2,084		37		2/19/2014	2013
	Cocoa, FL	—		370		1,092		—		1,462		8		9/26/2014	2014
	Colmesnell, TX	—		172		858		—		1,030		19		2/4/2014	2013
	Columbia, SC	—		294		824		—		1,118		5		10/24/2014	2014
	Columbia, SC	—		332		1,044		—		1,376		6		10/24/2014	2014
	Comanche, TX	—		176		1,145		—		1,321		11		8/6/2014	2014
	Cordes Lakes, AZ	—		380		1,421		—		1,801		11		9/19/2014	2014
	Davenport, FL	—		298		964		—		1,262		1		12/5/2014	2014
	Davenport, IA	—		167		918		—		1,085		3		11/25/2014	2014
	Dawson, TX	—		41		799		—		840		3		11/14/2014	2014
	Deadwood, SD	—		132		1,139		—		1,271		9		9/18/2014	2014
	Des Moines, IA	—		290		1,126		—		1,416		4		11/25/2014	2014
	Eden, TX	—		82		903		—		985		21		2/26/2014	2013
	Elizabethtown, NY	—		107		671		—		778		16		1/31/2014	2008
	Eloy, AZ	—		86		1,587		—		1,673		8		10/24/2014	2014
	Empire, CA	—		239		1,527		—		1,766		22		6/27/2014	2014
	Evans, CO	—		201		817		—		1,018		6		9/29/2014	2014
	Findlay, OH	—		326		1,271		—		1,597		31		2/26/2014	2013
	Folsom, LA	—		325		788		—		1,113		6		9/30/2014	2014
	Ft. Lauderdale, FL	(g)		443		1,361		—		1,804		36		12/18/2013	2013
	Fort Thomas, AZ	—		49		1,173		—		1,222		26		2/26/2014	2013
	Fort Worth, TX	—		532		1,346		—		1,878		10		9/5/2014	2014
	Fresno, CA	—		488		1,553		—		2,041		36		2/19/2014	2013
	Garrison, TX	—		61		1,306		—		1,367		1		12/18/2014	2014
	Georgetown, KY	—		607		905		—		1,512		3		11/21/2014	2014
	Gering, NE	—		244		913		—		1,157		7		9/26/2014	2014
	Greenwood, WI	—		154		920		—		1,074		13		6/27/2014	2013
	Harrisonburg, VA	—		229		1,073		—		1,302		1		12/12/2014	2014
	Hawkins, TX	—		49		1,288		—		1,337		10		9/5/2014	2014
	Hempstead, TX	—		219		943		—		1,162		1		12/18/2014	2014
	Hettinger, ND	—		214		1,077		—		1,291		27		2/26/2014	2013

S-9

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Family Dollar (continued):
	Hodgenville, KY	$	—	$	202	$	783	$	—	$	985	$	6	9/19/2014	2014
	Holtville, CA	—		317		1,609		—		1,926		37		2/19/2014	2013
	Homosassa, FL	—		325		1,001		—		1,326		1		12/12/2014	2014
	Immokalee, FL	—		458		1,248		—		1,706		4		11/4/2014	2014
	Indianapolis, IN	—		238		1,117		—		1,355		4		11/21/2014	2014
	Indio, CA	—		393		1,636		—		2,029		23		6/25/2014	2014
	Irvington, AL	(g)		217		814		—		1,031		23		12/27/2013	2013
	Jacksonville, FL	—		134		1,157		—		1,291		4		11/7/2014	2014
	Jay, FL	—		190		1,002		—		1,192		25		2/25/2014	2013
	Jonesboro, GA	—		297		1,098		—		1,395		26		2/14/2014	2013
	Keller, TX	—		749		1,550		—		2,299		29		4/14/2014	2014
	Kersey, CO	—		238		904		—		1,142		15		5/29/2014	2014
	Kiowa, OK	—		193		947		—		1,140		8		9/5/2014	2014
	Kissimmee, FL	—		622		1,226		—		1,848		12		8/26/2014	2014
	La Salle, CO	—		239		890		—		1,129		3		11/4/2014	2013
	LaBelle, FL	—		268		1,037		—		1,305		25		2/28/2014	2014
	Lake Elsinor, CA	—		417		1,682		—		2,099		35		3/3/2014	2013
	Lakeland, FL	—		353		937		—		1,290		14		6/30/2014	2014
	Laredo, TX	—		302		1,039		—		1,341		6		10/3/2014	2013
	Levelland, TX	—		264		952		—		1,216		7		9/30/2014	2014
	Lorain, OH	—		320		995		—		1,315		15		6/27/2014	2014
	Louisville (Bank), KY	—		578		919		—		1,497		20		3/26/2014	2013
	Louisville (Cane), KY	—		480		934		—		1,414		14		6/4/2014	2014
	Mansfield, TX	—		849		1,189		—		2,038		28		2/26/2014	2013
	Melbourne, FL	—		362		883		—		1,245		21		2/28/2014	2014
	Melrose, FL	—		124		929		—		1,053		7		9/10/2014	2014
	Mertzon, TX	—		149		995		—		1,144		8		9/19/2014	2014
	Mesa, AZ	—		627		1,468		—		2,095		30		3/31/2014	2014
	Monroe, UT	—		272		985		—		1,257		5		10/24/2014	2013
	Moore Haven, FL	—		348		1,016		—		1,364		18		5/29/2014	2014
	Moulton, TX	—		102		973		—		1,075		24		2/26/2014	2014
	Naubinway, MI	—		47		1,180		—		1,227		26		2/4/2014	2013
	New Ellenton, SC	—		160		800		—		960		1		12/12/2014	2014
	New Summerfield, TX	—		230		851		—		1,081		12		6/6/2014	2014
	Nicholasville, KY	—		464		826		—		1,290		18		3/26/2014	2013
	North Charleston, SC	—		386		997		—		1,383		3		11/14/2014	2014
	Ocoee, FL	—		462		1,173		—		1,635		4		11/21/2014	2014
	Ordway, CO	—		81		993		—		1,074		6		10/30/2014	2014
	Oshkosh, WI	—		361		815		—		1,176		19		2/25/2014	2013
	Ossineke, MI	—		85		898		—		983		18		3/14/2014	2014
	Penitas, TX	—		182		1,053		—		1,235		22		3/26/2014	2014
	Pensacola, FL	—		509		791		—		1,300		17		3/27/2014	2014
	Pine Lake, GA	—		639		897		—		1,536		9		8/27/2014	2014
	Plainview, NE	—		112		774		—		886		15		4/25/2014	2014

S-10

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Family Dollar (continued):
	Poinciana, FL	$	—	$	501	$	1,186	$	—	$	1,687	$	9	9/19/2014	2014
	Pojoaque, NM	—		545		909		—		1,454		9		8/25/2014	2013
	Posen, MI	—		101		896		—		997		18		3/14/2014	2014
	Preston, MN	—		161		1,159		—		1,320		18		6/27/2014	2014
	Radium Springs, NM	—		129		1,086		—		1,215		25		2/26/2014	2013
	Ramah, NM	—		217		1,105		—		1,322		24		2/4/2014	2013
	Rex, GA	—		294		1,393		—		1,687		5		11/7/2014	2014
	Riverside, CA	—		736		1,558		—		2,294		29		4/4/2014	2014
	Robert Lee, TX	—		94		904		—		998		21		2/26/2014	2014
	Rushford, MN	—		163		844		—		1,007		13		6/27/2014	2014
	Saginaw, MI	—		240		956		—		1,196		5		10/30/2014	2014
	San Antonio, TX	—		54		900		—		954		8		9/30/2014	2014
	San Antonio, TX	—		421		951		—		1,372		3		11/14/2014	2014
	San Jacinto, CA	—		430		1,682		—		2,112		20		7/18/2014	2014
	Schuyler, NE	—		260		708		—		968		12		5/5/2014	2014
	Shreveport, LA	—		406		978		—		1,384		16		5/29/2014	2014
	Shreveport, LA	—		272		1,113		—		1,385		14		7/22/2014	2014
	Shreveport, LA	—		423		1,099		—		1,522		6		10/8/2014	2014
	Spurger, TX	—		86		905		—		991		7		9/18/2014	2014
	Statesboro, GA	—		347		800		—		1,147		19		2/14/2014	2013
	Sterling City, TX	—		78		889		—		967		21		2/26/2014	2013
	Stockton, CA	(g)		202		1,817		—		2,019		14		9/19/2014	2014
	Summerfield, FL	—		271		978		—		1,249		1		12/12/2014	2014
	Tallahassee, FL	—		189		1,212		—		1,401		4		11/21/2014	2014
	Taft, CA	—		255		1,422		—		1,677		51		8/23/2013	2013
	Tampa (Cragmont), FL	(g)		563		737		—		1,300		21		12/18/2013	2013
	Tampa (Forest), FL	(g)		482		920		—		1,402		26		12/18/2013	2013
	Tampa (Hunt), FL	—		568		1,137		—		1,705		14		7/2/2014	2014
	Terra Bella, CA	—		332		1,394		—		1,726		32		2/19/2014	2013
	Topeka, KS	—		419		1,327		—		1,746		25		4/17/2014	2014
	Tyler , MN	—		73		895		—		968		14		6/27/2014	2014
	Tuscaloosa, AL	(g)		534		817		—		1,351		23		12/27/2013	2013
	Valdosta, GA	—		424		849		—		1,273		20		2/26/2014	2014
	Waelder, TX	—		136		788		—		924		12		6/4/2014	2014
	Walker, LA	—		294		966		—		1,260		7		9/30/2014	2014
	Wayne, OK	—		37		937		—		974		14		6/27/2014	2014
	Waynesburg, KY	—		150		955		—		1,105		5		10/10/2014	2014
	Wild Rose, WI	—		133		866		—		999		12		6/27/2014	2013
Fargo Plaza:
	Fargo, ND	(g)		2,097		4,774		376		7,247		265		5/30/2013	2013
Flower Foods:
	Orlando, FL	—		418		387		—		805		3		9/11/2014	2013
	Waldorf, MD	—		398		1,045		—		1,443		9		9/11/2014	2013

S-11

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Food 4 Less:
	Atwater, CA	$ (g)	$	1,383	$	5,271	$	—	$	6,654	$	169	11/27/2013	2002
Fourth Creek Landing:
	Stateville, NC	5,700	1,375		7,795		—		9,170		477		3/26/2013	2012
Fresenius Medical Care:
	West Plains, MI	(g)	557		3,097		—		3,654		37		7/2/2014	2014
Fresh Market Center:
	Glen Ellyn, IL	—	2,767		6,403		15		9,185		52		9/30/2014	2014
Fresh Thyme:
	Indianapolis, IN	—	1,087		6,019		—		7,106		37		10/31/2014	2014
Fresh Thyme & DSW:
	Fort Wayne, IN	—	1,740		4,153		—		5,893		35		9/30/2014	1985
Gander Mountain:
	Pensacola, FL	(g)	2,152		3,831		—		5,983		74		4/29/2014	1998
	Waukesha, WI	(g)	3,408		12,918		—		16,326		95		9/29/2014	2007
Giant Eagle:
	Seven Fields, PA	(g)	1,574		13,659		—		15,233		221		5/7/2014	2005
Gold's Gym:
	Corpus Christi, TX	(g)	1,498		6,346		—		7,844		308		3/6/2013	2006
Golden Corral:
	Garland, TX	(g)	1,255		2,435		—		3,690		151		9/21/2012	2012
	Georgetown, KY	—	1,048		1,452		—		2,500		20		6/11/2014	2004
	Houston, TX	(g)	1,375		2,350		—		3,725		131		12/12/2012	2012
	Victoria, TX	(g)	673		2,857		—		3,530		39		6/27/2014	2013
Goodyear:
	Pooler, GA	(g)	569		1,484		—		2,053		66		6/18/2013	2008
Hancock Village:
	Chesterfield, VA	15,000	8,874		17,287		96		26,257		897		5/23/2013	2009
Haverty Furniture:
	Midland, TX	(g)	709		1,294		—		2,003		72		8/7/2013	2012
HEB Center:
	Waxahachie, TX	7,000	3,465		7,952		287		11,704		542		6/27/2012	1997
Hickory Flat Commons:
	Canton, GA	(g)	4,482		13,174		9		17,665		790		12/18/2012	2008
Hobby Lobby:
	Dickson City, PA	—	1,113		7,946		—		9,059		165		6/30/2014	2013
	Lewisville, TX	(g)	2,184		8,977		—		11,161		278		11/26/2013	2013
	Mooresville, NC	(g)	869		4,249		—		5,118		315		11/30/2012	2012
Home Depot:
	North Canton, OH	(g)	2,203		12,012		—		14,215		662		12/20/2012	1998
	Plainwell, MI	(g)	521		11,905		—		12,426		493		5/16/2013	2002
IHOP:
	Anderson, IN	—	54		1,633		—		1,687		22		6/30/2014	2005
	Columbus, OH	—	408		1,783		—		2,191		24		6/30/2014	2012
	Columbus, OH	—	315		1,864		—		2,179		25		6/30/2014	2011

S-12

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
IHOP (continued):
	Lancaster, OH	$	—	$	157	$	1,497	$	—	$	1,654	$	20	6/30/2014	2009
	Rio Rancho, NM	(g)		599		2,314		—		2,913		46		3/28/2014	2011
	Richmond, IN	—		106		1,428		—		1,534		20		6/30/2014	2007
Inglewood Plaza:
	Inglewood, CA	(g)		9,880		14,099		—		23,979		111		9/12/2014	2008
Kirklands:
	Dothan, AL	—		486		946		—		1,432		12		8/5/2014	2014
	Jonesboro, AR	(g)		696		1,990		—		2,686		106		11/27/2012	2012
Kohl’s:
	Cedar Falls, IA	(g)		1,600		5,796		—		7,396		321		12/7/2012	2001
	Chartlottesville, VA	(g)		3,929		12,280		—		16,209		146		7/28/2014	2011
	Hutchinson, KS	(g)		3,290		—		—		3,290		—		10/19/2012	(f)
Kroger:
	Shelton, WA	(g)		1,180		11,040		—		12,220		227		4/30/2014	1994
	Whitehall, OH	(g)		581		6,628		—		7,209		198		12/16/2013	1994
Kum & Go:
	Bentonville (Central), AR	(g)		916		1,864		—		2,780		80		5/3/2013	2011
	Conway, AR	(g)		510		2,577		—		3,087		35		6/13/2014	2014
	Fairfield, IA	(g)		422		1,913		—		2,335		82		5/3/2013	2011
	Mount Vernon, MO	(g)		708		1,756		—		2,464		75		5/3/2013	2010
	Urbandale, IA	(g)		722		1,658		—		2,380		72		5/3/2013	2010
L.A. Fitness:
	Bloomfield Township, MI	(g)		2,287		10,075		—		12,362		438		6/21/2013	2008
	Garland, TX	(g)		2,005		6,861		—		8,866		187		12/20/2013	2013
	Houston, TX	(g)		5,764		5,994		—		11,758		206		9/30/2013	2013
	Mesa, AZ	(g)		1,353		7,730		20		9,103		352		5/8/2013	2010
	Ocoee, FL	(g)		1,173		6,876		—		8,049		263		8/8/2013	2008
	Riverside, CA	(g)		2,557		9,951		—		12,508		368		8/2/2013	2010
Logan’s Roadhouse:
	Bristol, VA	(g)		991		2,560		—		3,551		139		1/29/2013	2001
	Fort Wayne, IN	(g)		868		2,698		—		3,566		53		3/28/2014	2002
	Lancaster, TX	(g)		1,203		1,620		—		2,823		97		10/23/2012	2011
	Martinsburg, WV	(g)		925		2,183		—		3,108		67		10/29/2013	2010
	Opelika, AL	(g)		836		1,508		—		2,344		91		10/23/2012	2005
	Sanford, FL	(g)		1,031		1,807		—		2,838		109		10/23/2012	1999
	Troy, OH	(g)		992		1,577		—		2,569		94		10/23/2012	2011
Lowe’s:
	Adrian, MI	(g)		2,604		5,036		—		7,640		225		9/27/2013	1996
	Asheboro, NC	(g)		1,098		6,722		—		7,820		98		6/23/2014	1994
	Cincinnati, OH	(g)		14,092		—		—		14,092		—		2/10/2014	2001
	Columbia, SC	(g)		3,943		6,353		750		11,046		240		9/12/2013	1994
	Covington, LA	(g)		10,233		—		—		10,233		—		8/20/2014	2002
	Mansfield, OH	(g)		873		8,256		—		9,129		123		6/12/2014	1992
	Oxford, AL	(g)		1,668		7,622		369		9,659		365		6/28/2013	1999

S-13

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Lowe’s (continued):
	Tuscaloosa, AL	$ (g)	$	4,908	$	4,786	$	9	$	9,703	$	165	10/29/2013	1993
	Zanesville, OH	(g)	2,161		8,375		—		10,536		235		12/11/2013	1995
Market Heights Shopping Center:
	Harker Heights, TX	47,000	12,888		64,105		3		76,996		2,325		11/25/2013	2012
Marketplace at the Lakes:
	West Covina, CA	(g)	10,020		8,664		1		18,685		586		9/30/2013	1994
Matteson Center:
	Matteson, IL	(g)	1,243		17,427		393		19,063		673		11/22/2013	2003
Mattress Firm:
	Augusta, ME	—	723		1,354		—		2,077		26		5/30/2014	2013
	Brunswick, GA	(g)	343		1,040		—		1,383		40		8/29/2013	2012
	Cincinnati, OH	—	323		966		—		1,289		12		7/17/2014	2013
	Danville, VA	—	274		1,514		—		1,788		29		4/29/2014	2014
	Huber Heights, OH	—	854		903		—		1,757		13		6/20/2014	2014
	Jonesboro, AR	(g)	729		1,194		—		1,923		90		10/5/2012	2012
	Lakeland, FL	—	259		1,107		—		1,366		15		7/16/2014	2014
	Nampa, ID	—	449		2,213		—		2,662		46		3/31/2014	1972
	New Bern, NC	(g)	340		1,436		—		1,776		11		9/25/2014	2014
	Pineville, NC	(g)	1,557		1,198		—		2,755		80		10/29/2012	2000
	Port Charlotte, FL	—	382		1,211		—		1,593		12		8/1/2014	2014
Mattress Firm & Aspen Dental:
	Vienna, WV	—	774		2,466		—		3,240		24		9/15/2014	2014
Mattress Firm & Five Guys:
	Muskegon, MI	—	813		1,766		—		2,579		18		8/29/2014	2014
McAlister's Deli:
	Lawton, OK	—	805		1,057		—		1,862		18		5/1/2014	2013
	Port Arthur, TX	—	379		1,146		—		1,525		27		3/27/2014	2007
Michael’s:
	Bowling Green, KY	(g)	587		1,992		—		2,579		131		11/20/2012	2012
National Tire & Battery:
	Cedar Hill, TX	(g)	469		1,951		—		2,420		102		12/18/2012	2006
	Fort Worth, TX	(g)	936		1,234		—		2,170		45		8/23/2013	2005
	Frisco, TX	(g)	844		1,608		—		2,452		58		8/23/2013	2007
	Montgomery, IL	(g)	516		2,494		—		3,010		127		1/15/2013	2007
Native Wings:
	San Antonio, TX	—	821		2,682		—		3,503		27		8/4/2014	2014
Natural Grocers:
	Denton, TX	(g)	1,326		3,134		—		4,460		122		7/24/2013	2012
	Idaho Falls, ID	(g)	833		2,316		—		3,149		54		2/14/2014	2013
	Lubbock, TX	(g)	1,093		3,621		—		4,714		159		4/22/2013	2013
Nordstrom Rack:
	Tampa, FL	(g)	3,371		6,402		—		9,773		540		4/16/2012	2010

S-14

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
O’Reilly Automotive:
	Brownfield, TX	$ (g)	$	22	$	835	$	—	$	857	$	59	5/8/2012	2012
	Columbus, TX	(g)	260		757		—		1,017		50		5/8/2012	2011
	Lamesa, TX	—	64		608		—		672		1		12/10/2014	2006
	Stanley, ND	—	323		662		—		985		6		8/8/2014	2014
Park Place:
	Enterprise, AL	(g)	931		8,595		—		9,526		308		8/30/2013	2012
Pep Boys:
	Clermont, FL	(g)	799		1,993		—		2,792		84		6/26/2013	2013
	Oviedo, FL	(g)	669		2,172		—		2,841		72		10/4/2013	2013
Petsmart:
	Baton Rouge, LA	2,509	651		2,968		113		3,732		200		10/11/2012	1999
	Commerce Township, MI	(g)	539		1,960		—		2,499		119		3/28/2013	1996
	East Peoria, IL	(g)	997		3,345		—		4,342		11		11/7/2014	2007
	Eden Prairie, MN	(g)	1,279		2,030		—		3,309		71		10/1/2013	2007
	Edmond, OK	(g)	816		3,266		—		4,082		170		1/23/2013	1998
	North Fayette Township, PA	(g)	1,615		1,503		—		3,118		71		6/7/2013	1997
	Overland Park, KS	(g)	2,025		2,181		—		4,206		72		10/1/2013	1996
	Taylor, MI	(g)	331		2,438		—		2,769		127		6/7/2013	1997
	Tucson, AZ	(g)	1,114		2,771		98		3,983		99		11/8/2013	2000
	Wilkesboro, NC	(g)	447		1,710		—		2,157		125		4/13/2012	2011
Petsmart/Old Navy:
	Reynoldsburg, OH	(g)	1,295		4,077		—		5,372		249		12/14/2012	2012
Pick’N Save:
	Pewaukee, WI	(g)	1,323		6,761		—		8,084		77		8/13/2014	1999
	Sheboygan, WI	(g)	2,003		10,695		—		12,698		647		9/6/2012	2012
	South Milwaukee, WI	(g)	1,126		5,706		—		6,832		167		11/6/2013	2005
Plaza San Mateo:
	Albuquerque, NM	—	2,867		11,582		—		14,449		196		5/2/2014	2014
Popeyes:
	Independence, MO	—	333		680		—		1,013		10		6/27/2014	2005
Popular Springs Plaza:
	Duncan, SC	(g)	1,862		5,277		149		7,288		256		5/24/2013	1995
Price Chopper:
	Gardner, MA	(g)	858		12,171		—		13,029		91		9/26/2014	2012
Quick Chek:
	Kingston , NY	(g)	831		5,783		—		6,614		240		5/31/2013	2008
	Lake Katrine, NY	(g)	1,507		4,569		—		6,076		186		5/31/2013	2008
	Middletown (Main), NY	(g)	1,335		5,732		—		7,067		238		5/31/2013	2008
	Middletown, NY	(g)	1,297		5,963		—		7,260		247		5/31/2013	2009
	Middletown, NY	(g)	1,437		4,656		—		6,093		195		5/31/2013	2007
	Sagerties, NY	(g)	1,242		5,372		—		6,614		224		5/31/2013	2009
Raising Canes:
	Beaumont, TX	(g)	839		1,288		—		2,127		16		7/31/2014	2013

S-15

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Raising Canes (continued):
	Phoenix, AZ	$ (g)	$	761	$	1,972	$	—	$	2,733	$	39	3/28/2014	2011
	Wichita Falls, TX	—	426		1,947		—		2,373		35		4/30/2014	2013
Regent Towne Center:
	Fort Mill, SC	(g)	1,455		5,063		—		6,518		242		6/13/2013	2007
Rite Aid:
	Columbia, SC	(g)	854		2,281		—		3,135		64		12/3/2013	2008
	Jenison, MI	—	438		1,491		—		1,929		23		6/23/2014	1996
Rocky River Promenade:
	Mooresville, NC	—	2,446		3,159		—		5,605		33		8/18/2014	2008
Ross:
	Fort Worth, TX	(g)	1,273		3,157		—		4,430		198		10/4/2012	1977
Rushmore Crossing:
	Rapid City, SD	24,825	7,066		33,019		—		40,085		1,142		1/2/2014	2012
	Rapid City, SD	—	883		4,128		—		5,011		151		1/2/2014	2012
Shippensburg Market Place:
	Shippensburg, PA	—	1,917		9,263		—		11,180		76		9/18/2014	2002
ShopKo:
	Broken Bow, NE	—	244		1,733		—		1,977		28		6/19/2014	2007
	Valentine, NE	(g)	395		3,549		—		3,944		57		6/30/2014	2014
Shoppes at Lake Andrew:
	Melbourne, FL	—	3,924		16,840		—		20,764		568		12/31/2013	2003
Shoppes at Stroud:
	Stroud Township, PA	—	3,754		22,614		—		26,368		140		10/29/2014	2007
Southwest Plaza:
	Springfield, IL	(g)	2,992		48,935		—		51,927		487		9/18/2014	2003
Spinx:
	Simpsonville, SC	(g)	591		969		—		1,560		48		1/24/2013	2012
Sprouts:
	Bixby, OK	(g)	1,320		7,117		—		8,437		267		7/26/2013	2013
Stoneridge Village:
	Jefferson City, MO	—	1,830		9,351		—		11,181		159		6/30/2014	2008
Stripes:
	Brownsville, TX	(g)	210		2,386		—		2,596		166		8/30/2012	2007
	Brownwood, TX	(g)	484		3,086		—		3,570		207		8/30/2012	2005
	McAllen, TX	(g)	604		1,909		—		2,513		154		8/30/2012	2007
	Midland, TX	(g)	620		5,551		—		6,171		344		8/30/2012	2002
	Mission, TX	(g)	215		2,170		—		2,385		151		8/30/2012	2006
	Odessa, TX	(g)	569		4,940		—		5,509		305		8/30/2012	1998
Summerfield Crossing:
	Riverview, FL	(g)	6,130		6,753		—		12,883		276		7/12/2013	2009
Sunbelt Rentals:
	Canton, OH	(g)	147		1,679		—		1,826		69		10/24/2013	2013
	Houston, TX	—	535		1,664		—		2,199		33		3/31/2014	2000

S-16

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Sunoco:
	Cocoa, FL	$ (g)	$	625	$	1,062	$	—	$	1,687	$	46	4/12/2013	1987
	Mangonia Park, FL	(g)	689		600		—		1,289		26		4/12/2013	1999
	Merritt Island, FL	(g)	610		1,123		—		1,733		48		4/12/2013	1986
	Palm Beach Gardens, FL	(g)	1,050		2,667		—		3,717		114		4/12/2013	2009
	Palm City, FL	(g)	667		1,698		—		2,365		73		4/12/2013	2011
	Palm Springs, FL	(g)	580		1,907		—		2,487		82		4/12/2013	2011
	Sebastian, FL	(g)	490		2,128		—		2,618		91		4/12/2013	2009
	Titusville, FL	(g)	626		2,534		—		3,160		109		4/12/2013	2009
	West Palm Beach, FL	(g)	637		443		—		1,080		19		4/12/2013	1977
Sunoco Center:
	Titusville (Sisson), FL	(g)	799		587		—		1,386		26		4/12/2013	1986
Sutters Creek:
	Rocky Mount, NC	—	1,458		2,616		—		4,074		83		1/31/2014	2012
Sweet Tomatoes:
	Overland Park, KS	(g)	806		3,600		—		4,406		71		3/28/2014	2001
	St. Louis, MO	(g)	1,254		3,354		—		4,608		66		3/28/2014	1988
Target Center:
	Columbia, SC	—	3,234		7,297		—		10,531		158		3/31/2014	2012
Terrell Mill Village:
	Marieta, GA	—	3,079		11,185		—		14,264		315		1/31/2014	2012
TGI Friday's:
	Chesapeake, VA	(g)	1,217		1,388		—		2,605		20		6/27/2014	2003
	Wilmington, DE	(g)	1,685		969		—		2,654		14		6/27/2014	1991
The Market at Clifty Crossing:
	Columbus, IN	—	2,669		16,308		—		18,977		179		10/31/2014	1989
The Market at Polaris:
	Columbus, OH	(g)	11,828		41,702		93		53,623		1,254		12/6/2013	2005
The Marquis:
	Williamsburg, VA	8,556	2,615		11,406		—		14,021		721		9/21/2012	2007
The Plant:
	San Jose, CA	123,000	67,596		108,203		73		175,872		5,685		4/15/2013	2008
Tilted Kilt:
	Killeen, TX	(g)	1,378		1,508		—		2,886		18		7/29/2014	2010
Tire Kingdom:
	Tarpon Springs, FL	(g)	427		1,458		—		1,885		80		11/30/2012	2003
TJ Maxx/Dollar Tree:
	Oxford, OH	(g)	641		2,673		—		3,314		149		5/20/2013	2013
Tractor Supply:
	Ashland, VA	(g)	500		2,696		—		3,196		80		11/22/2013	2013
	Augusta, KS	(g)	407		2,315		—		2,722		59		1/10/2014	2013
	Cambridge, MN	(g)	807		1,272		—		2,079		103		5/14/2012	2012
	Canon City, CO	(g)	597		2,527		—		3,124		134		11/30/2012	2012
	Fortuna, CA	(g)	568		3,819		—		4,387		56		6/27/2014	2014
	Lumberton, NC	—	611		2,007		—		2,618		93		5/24/2013	2013

S-17

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Tractor Supply (continued):
	Marion, IN	$ (g)	$	448	$	1,916	$	—	$	2,364	$	85	6/20/2013	2013
	Monticello, FL	—	1,536		1,099		—		2,635		28		2/19/2014	2004
	Newnan, GA	(g)	1,182		1,950		—		3,132		113		11/6/2012	2009
	Petersburg, VA	(g)	514		2,439		—		2,953		78		10/7/2013	2013
	South Hill, VA	(g)	630		2,179		—		2,809		91		6/24/2013	2011
	Spencer, WV	1,659	455		2,188		—		2,643		133		11/20/2012	2012
	Stuttgart, AR	1,543	47		2,519		—		2,566		114		4/5/2013	2013
	Weaverville, NC	(g)	867		3,138		—		4,005		110		9/13/2013	2006
	Woodward, OK	(g)	446		1,973		—		2,419		64		11/19/2013	2013
Trader Joe’s:
	Asheville, NC	(g)	2,770		3,766		—		6,536		125		10/22/2013	2013
	Columbia, SC	(g)	2,308		2,597		—		4,905		137		3/28/2013	2012
	Wilmington, NC	(g)	2,016		2,519		—		4,535		129		6/27/2013	2012
Turfway Crossing:
	Florence, KY	—	2,261		10,323		—		12,584		206		5/27/2014	2002
Ulta Salon:
	Albany, GA	—	441		1,757		—		2,198		30		5/8/2014	2013
United Oil:
	Alhambra, CA	(g)	3,026		751		—		3,777		6		9/30/2014	2005
	Bellflower (Alondra), CA	(g)	1,312		576		—		1,888		4		9/30/2014	1999
	Bellflower (Lakewood), CA	(g)	1,246		788		—		2,034		6		9/30/2014	2001
	Brea, CA	(g)	2,393		658		—		3,051		9		9/30/2014	1984
	Burbank (Glenoaks), CA	(g)	3,474		594		—		4,068		4		9/30/2014	2000
	Burbank (Magnolia), CA	(g)	1,750		574		—		2,324		4		9/30/2014	1998
	Chino, CA	(g)	1,449		730		—		2,179		5		9/30/2014	1984
	Compton, CA	(g)	992		460		—		1,452		3		9/30/2014	2002
	El Cajon (El Cajon), CA	(g)	1,533		568		—		2,101		4		9/30/2014	2000
	El Cajon (Second), CA	(g)	1,225		368		—		1,593		3		9/30/2014	2008
	El Monte, CA	(g)	766		510		—		1,276		—		9/30/2014	1994
	Escondido (Escondido), CA	(g)	678		470		—		1,148		3		9/30/2014	1984
	Escondido (Mission), CA	(g)	3,514		1,062		—		4,576		16		9/30/2014	2002
	Fountain Valley, CA	(g)	1,809		806		—		2,615		6		9/30/2014	1999
	Glendale, CA	(g)	4,871		795		—		5,666		6		9/30/2014	1999
	Inglewood, CA	(g)	1,809		878		—		2,687		6		9/30/2014	1997
	La Habra, CA	(g)	1,971		571		—		2,542		4		9/30/2014	2000
	Lawndale, CA	(g)	1,462		862		—		2,324		6		9/30/2014	2001
	Long Beach (Anaheim), CA	(g)	974		772		—		1,746		6		9/30/2014	2003
	Long Beach (Atlantic), CA	(g)	2,778		883		—		3,661		6		9/30/2014	1972

S-18

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
United Oil (continued):
	Long Beach (Santa Fe), CA	$ (g)	$	1,972	$	643	$	—	$	2,615	$	5	9/30/2014	2004
	Los Angeles (2503 W. Pico), CA	(g)	2,334		717		—		3,051		5		9/30/2014	2002
	Los Angeles (4931 W. Pico), CA	(g)	3,552		1,242		—		4,794		9		9/30/2014	2002
	Los Angeles (Eastern), CA	(g)	2,745		669		—		3,414		5		9/30/2014	1998
	Los Angeles (Jefferson), CA	(g)	3,823		825		—		4,648		6		9/30/2014	1997
	Los Angeles (Marina Del R), CA	(g)	3,930		428		—		4,358		3		9/30/2014	2005
	Los Angeles (Olympic), CA	(g)	1,710		905		—		2,615		7		9/30/2014	2002
	Los Angeles (Slauson), CA	(g)	1,927		1,484		—		3,411		—		9/30/2014	2007
	Los Angeles (Western), CA	(g)	2,182		701		—		2,883		—		9/30/2014	1964
	Lynwood, CA	(g)	2,386		737		—		3,123		5		9/30/2014	2002
	Menifee, CA	(g)	2,853		924		—		3,777		7		9/30/2014	1995
	Monrovia, CA	(g)	2,365		686		—		3,051		5		9/30/2014	1996
	Norco (Hidden Valley), CA	(g)	1,852		1,489		—		3,341		11		9/30/2014	1995
	Norco (Sixth), CA	(g)	1,869		891		—		2,760		7		9/30/2014	2005
	North Hollywood, CA	(g)	4,663		858		—		5,521		6		9/30/2014	1999
	Oceanside, CA	(g)	2,163		1,248		—		3,411		9		9/30/2014	2011
	Paramount, CA	(g)	1,301		1,024		—		2,325		8		9/30/2014	1996
	Pomona, CA	(g)	1,740		730		—		2,470		5		9/30/2014	1997
	Poway, CA	(g)	3,072		705		—		3,777		9		9/30/2014	1960
	San Diego (47th St), CA	(g)	2,977		1,448		—		4,425		11		9/30/2014	1984
	San Diego (Governor), CA	(g)	1,877		883		—		2,760		9		9/30/2014	2006
	San Diego (Rancho Penasquitos), CA	(g)	1,215		841		—		2,056		—		9/30/2014	2010
	San Diego (Sunset Cliffs), CA	(g)	1,824		382		—		2,206		3		9/30/2014	2006
	San Pedro, CA	(g)	2,086		675		—		2,761		5		9/30/2014	2000
	Santa Clarita, CA	(g)	4,787		733		—		5,520		5		9/30/2014	2001
	Sun City, CA	(g)	1,136		1,421		—		2,557		—		9/30/2014	1984
	Valley Center, CA	(g)	2,680		1,606		—		4,286		19		9/30/2014	2009
	Van Nuys (Van Nuys), CA	(g)	2,439		902		—		3,341		7		9/30/2014	2005
	Van Nuys (Victory), CA	(g)	1,786		684		—		2,470		5		9/30/2014	1999
	Van Nuys (Woodman), CA	(g)	3,980		741		—		4,721		5		9/30/2014	2002
	Vista (Civic Center), CA	(g)	2,063		334		—		2,397		2		9/30/2014	1986
	Vista (Vista), CA	(g)	2,028		418		—		2,446		3		9/30/2014	2010
	Whittier, CA	(g)	1,629		985		—		2,614		7		9/30/2014	1963
	Wilmington, CA	(g)	1,615		1,145		—		2,760		8		9/30/2014	2002

S-19

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
United Oil (continued):
	Woodland Hills, CA	$ (g)	$	4,946	$	647	$	—	$	5,593	$	5	9/30/2014	2003
University Marketplace:
	Marion, IN	(g)	850		6,722		—		7,572		411		3/22/2013	2012
Village at Hereford Farms:
	Grovetown , GA	—	1,222		5,912		—		7,134		48		9/26/2014	2009
Wal-Mart:
	Perry, GA	(g)	2,270		11,053		—		13,323		483		6/4/2013	1999
	Tallahassee, FL	8,157	14,823		—		—		14,823		—		12/11/2012	(f)
	York, SC	(g)	1,913		11,410		—		13,323		496		6/4/2013	1998
Walgreens:
	Andover, KS	(g)	630		3,057		—		3,687		109		10/18/2013	2001
	Arkadelphia, AR	4,225	787		4,626		—		5,413		14		11/26/2014	2007
	Austintown, OH	(g)	637		4,173		—		4,810		145		8/19/2013	2002
	Bartlett (5950 Stage), TN	4,150	1,086		4,321		—		5,407		13		11/26/2014	1997
	Bartlett (6697 Stage), TN	4,150	799		4,608		—		5,407		14		11/26/2014	2002
	Birmingham, AL	(g)	985		4,938		—		5,923		215		4/9/2013	2012
	Birmingham (Green Springs), AL	4,300	738		4,844		—		5,582		15		11/26/2014	2000
	Blair, NE	2,466	335		3,544		—		3,879		243		4/18/2012	2008
	Chicopee, MA	(g)	2,094		4,945		—		7,039		26		10/23/2014	2008
	Colerain Township, OH	4,200	1,991		3,470		—		5,461		10		11/26/2014	1998
	Connelly Springs, NC	(g)	1,349		3,628		—		4,977		129		8/27/2013	2012
	Cullman, AL	3,542	1,292		3,779		—		5,071		183		2/22/2013	2012
	Danville, VA	(g)	989		4,547		—		5,536		248		12/21/2012	2012
	Dearborn Heights, MI	(g)	2,236		3,411		—		5,647		129		7/9/2013	2008
	Decatur, AL	3,625	631		4,161		—		4,792		14		11/26/2014	2004
	Dyersburg, TN	(g)	555		4,088		—		4,643		57		6/30/2014	2011
	East Chicago, IN	(g)	331		5,242		—		5,573		49		8/8/2014	2005
	Enterprise, AL	3,575	839		3,844		—		4,683		12		11/26/2014	2004
	Evansville, IN	4,040	812		4,439		—		5,251		14		11/26/2014	2001
	Florence, KY	4,125	1,086		4,206		—		5,292		13		11/26/2014	2005
	Forrest City, AR	4,825	643		5,287		—		5,930		16		11/26/2014	2007
	Fort Madison, IA	(g)	514		3,723		—		4,237		124		9/20/2013	2008
	Franklin, TN	4,200	1,457		4,075		—		5,532		13		11/26/2014	2000
	Fraser, MI	(g)	518		4,525		—		5,043		74		5/19/2014	2004
	Hazelwood, MO	(g)	2,505		4,866		—		7,371		158		9/4/2013	2006
	Hickory, NC	(g)	1,100		4,241		—		5,341		207		2/28/2013	2009
	Hobart, IN	3,875	594		4,526		—		5,120		15		11/26/2014	1998
	Hockessin, DE	(g)	1,586		3,555		—		5,141		104		12/20/2013	2008
	Huntsville, AL	3,273	1,931		2,457		—		4,388		122		3/15/2013	2001
	Kannapolis, NC	(g)	1,480		5,031		—		6,511		200		6/12/2013	2012
	Knoxville, TN	3,725	1,139		3,750		—		4,889		11		11/26/2014	1997

S-20

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

			Initial Costs to Company						Gross Amount at
							Total		Which Carried		Accumulated
					Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances	Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Walgreens (continued):
	Las Vegas, NV	$ (g)	$	2,325	$	3,262	$	—	$	5,587	$	110	9/26/2013	1999
	Lawton, OK	(g)	860		2,539		—		3,399		96		7/3/2013	1998
	Little Rock (Main), AR	(g)	548		4,676		—		5,224		64		6/30/2014	2011
	Little Rock (Bowman), AR	4,100	1,115		4,248		—		5,363		13		11/26/2014	2001
	Lubbock (82nd), TX	(g)	565		3,257		—		3,822		184		10/11/2012	2000
	Lubbock (Indiana), TX	(g)	531		2,951		—		3,482		165		10/11/2012	1998
	Malvern, AR	4,165	1,007		4,325		—		5,332		14		11/26/2014	2006
	Memphis, TN	3,775	776		4,166		—		4,942		13		11/26/2014	1999
	Metropolis, IL	(g)	284		4,991		—		5,275		47		8/8/2014	2009
	Michigan City, IN	3,200	567		3,615		—		4,182		12		11/26/2014	1999
	Mobile, AL	(g)	1,603		3,161		—		4,764		93		11/7/2013	2013
	Montgomery, AL	(g)	1,110		2,949		—		4,059		203		5/14/2012	2006
	Mount Washington, KY	4,125	545		4,825		—		5,370		16		11/26/2014	2005
	Oakland, TN	3,750	689		4,226		—		4,915		13		11/26/2014	2005
	Oklahoma City, OK	3,950	1,356		3,869		—		5,225		13		11/26/2014	1996
	Olathe, KS	4,230	1,266		4,047		—		5,313		12		11/26/2014	1997
	Phoenix, AZ	(g)	2,216		1,830		—		4,046		88		3/22/2013	2001
	Pine Bluff, AR	(g)	248		5,229		—		5,477		174		9/17/2013	2012
	Ralston (La Vista), NE	4,265	967		4,620		—		5,587		14		11/26/2014	1999
	River Falls, WI	5,200	634		5,137		—		5,771		16		11/26/2014	2007
	Roanoke, VA	(g)	677		3,825		—		4,502		61		5/7/2014	2003
	Sacramento, CA	(g)	324		2,669		—		2,993		38		6/30/2014	2008
	Sioux Falls, SD	3,625	1,138		3,784		—		4,922		12		11/26/2014	2007
	Springdale, AR	(g)	1,172		4,509		—		5,681		139		10/7/2013	2012
	Springfield, IL	(g)	830		3,619		—		4,449		244		5/14/2012	2007
	St. Charles, MO	4,600	1,644		4,364		—		6,008		14		11/26/2014	1994
	St. Louis (Lemay Ferry), MO	4,600	1,432		4,556		—		5,988		14		11/26/2014	1999
	St. Louis (Lusher), MO	4,790	1,414		4,622		—		6,036		15		11/26/2014	1999
	Suffolk, VA	(g)	1,261		3,461		—		4,722		246		5/14/2012	2007
	Sun City, AZ	(g)	837		2,484		—		3,321		42		5/6/2014	2000
	Tarboro, NC	(g)	755		3,634		—		4,389		35		8/22/2014	2014
	Toledo, OH	4,325	1,993		3,445		—		5,438		12		11/26/2014	2001
	Troy, OH	(g)	547		4,076		—		4,623		47		7/28/2014	2002
	Tulsa, OK	3,350	1,078		3,452		—		4,530		11		11/26/2014	1993
Walgreens/KeyBank:
	Newburgh, NY	5,000	3,280		5,441		—		8,721		176		9/16/2013	2010
Wallace Commons:
	Salisbury, NC	7,590	3,265		8,058		—		11,323		439		12/31/2012	2009
Wallace Commons II:
	Salisbury, NC	—	2,231		8,479		—		10,710		209		2/28/2014	2013
Warrenton Highlands:
	Warrenton, OR	(g)	2,139		5,774		37		7,950		302		5/29/2013	2011

S-21

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(in thousands)

				Initial Costs to Company						Gross Amount at
								Total		Which Carried		Accumulated
						Buildings &		Adjustment		At December 31, 2014		Depreciation		Date	Date
	Description (a)	Encumbrances		Land		Improvements		to Basis		(b) (c)		(d) (e)		Acquired	Constructed
Waterford South Park:
	Clarksville, IN	$ (g)		$	2,946	$	8,564	$	45	$	11,555	$	484	4/12/2013	2006
Wawa:
	Cape May, NJ	(g)		1,576		5,790		—		7,366		356		8/29/2012	2005
	Galloway, NJ	(g)		1,724		6,105		—		7,829		374		8/29/2012	2005
Wendy's:
	Grafton, VA	—		539		894		—		1,433		13		6/27/2014	1985
	Westminster, CO	—		596		1,108		—		1,704		16		6/27/2014	1986
Westover Market:
	San Antonio, TX	(g)		2,705		7,959		—		10,664		351		7/10/2013	2013
Whole Foods Center:
	Fort Collins, CO	—		2,664		17,166		—		19,830		148		9/30/2014	2004
Winn-Dixie:
	Baton Rouge, LA	(g)		1,782		3,776		—		5,558		53		6/27/2014	2000
	Walker, LA	(g)		900		3,909		—		4,809		54		6/27/2014	1999
Woods Supermarket:
	Sunrise Beach, MO	(g)		1,044		5,005		—		6,049		167		9/13/2013	2013
		$	565,836	$	974,920	$	2,596,981	$	19,038	$	3,590,939	$	78,186

(a) As of December 31, 2014, the Company owned 672 single-tenant, freestanding retail properties, 77 multi-tenant retail properties, seven office/industrial properties, and three medical office buildings.

(b) The aggregate cost for federal income tax purposes was $3.9 billion.

(c) The following is a reconciliation of total real estate carrying value for the years ended December 31 (in thousands):

			2014			2013
Balance, beginning of period				$	1,960,708		$	464,539
	Additions
		Acquisitions		1,613,201			1,494,171
		Improvements		18,967			1,998
	Total additions			$	1,632,168		$	1,496,169
	Deductions
		Cost of real estate sold		1,937			—
		Adjustment to basis		—			—
		Other (including provisions for impairment of real estate assets)		—			—
	Total deductions			1,937			—
Balance, end of period				$	3,590,939		$	1,960,708

S-22

COLE CREDIT PROPERTY TRUST IV, INC.

SCHEDULE III – REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION

(d) The following is a reconciliation of accumulated depreciation for the years ended December 31 (in thousands):

			2014			2013
Balance, beginning of period				$	23,377		$	1,743
	Additions
		Acquisitions - Depreciation Expense for Building, Acquisitions Costs & Tenant Improvements Acquired		54,656			21,624
		Improvements - Depreciation Expense for Tenant Improvements and Building Equipment		153			10
	Total additions			$	54,809		$	21,634
	Deductions
		Cost of real estate sold		—			—
		Other (including provisions for impairment of real estate assets)		—			—
	Total deductions			—			—
Balance, end of period				$	78,186		$	23,377

(e) The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the respective lease term and buildings are depreciated over 40 years.

(f) Subject to ground lease and therefore date constructed is not applicable.

(g) Property is included in the Credit Facility’s borrowing base. As of December 31, 2014, the Company had $900.0 million outstanding under the Credit Facility.

S-23

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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 this 30th day of March, 2015.

	Cole Credit Property Trust IV, Inc.
By:	/s/ SIMON J. MISSELBROOK
	Simon J. Misselbrook
	Chief Financial Officer and Treasurer
	(Principal Financial Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated.

Signature	Title	Date
/s/ THOMAS W. ROBERTS	Chairman, Chief Executive Officer and President	March 30, 2015
Thomas W. Roberts	(Principal Executive Officer)
/s/ SIMON J. MISSELBROOK	Chief Financial Officer and	March 30, 2015
Simon J. Misselbrook	Treasurer (Principal Financial Officer)
/s/ CHRISTINE T. BROWN	Vice President of Accounting	March 30, 2015
Christine T. Brown	(Principal Accounting Officer)
/s/ LAWRENCE S. JONES	Director	March 30, 2015
Lawrence S. Jones
/s/ J. MARC MYERS	Director	March 30, 2015
J. Marc Myers

EXHIBIT INDEX

The following exhibits are included, or incorporated by reference, in this Annual Report on Form 10-K for the year ended December 31, 2014 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
3.1	First Articles of Amendment and Restatement of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.4 to the Company’s pre-effective amendment to Form S-11 (File No. 333-169533), filed January 24, 2012).
3.2	Certificate of Correction to the First Articles of Amendment and Restatement of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.6 to the Company’s pre-effective amendment to Form S-11 (File No. 333-169533), filed January 24, 2012).
3.3	Articles of Amendment of First Articles of Amendment and Restatement of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 000-54939), filed February 27, 2012).
3.4	Certificate of Correction to First Articles of Amendment and Restatement (Incorporated by reference to Exhibit 3.6 to the Company’s Annual Report on Form 10-K (File No. 000-54939), filed March 29, 2013).
3.5	Second Articles of Amendment of First Articles of Amendment and Restatement of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 000-54939), filed June 2, 2014).
3.6	Bylaws of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.5 to the Company’s pre-effective amendment to Form S-11 (File No. 333-169533), filed January 24, 2012).
3.7	First Amendment to the Bylaws of Cole Credit Property Trust IV, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 000-54939), filed June 27, 2012).
4.1	Form of Initial Subscription Agreement (Incorporated by reference to Exhibit 4.1 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
4.2	Form of Additional Subscription Agreement (Incorporated by reference to Exhibit 4.2 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
4.3	Alternative Form of Initial Subscription Agreement (Incorporated by reference to Exhibit 4.3 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
4.4	Form of Initial Subscription Agreement (Alabama Investors) (Incorporated by reference to Exhibit 4.4 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
4.5	Form of Additional Subscription Agreement (Alabama Investors) (Incorporated by reference to Exhibit 4.5 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
10.1	Advisory Agreement by and between Cole Credit Property Trust IV, Inc. and Cole REIT Advisors IV, LLC, dated January 20, 2012 (Incorporated by reference to Exhibit 10.1 to the Company’s pre-effective amendment to Form S-11 (File No. 333-169533), filed January 24, 2012).
10.2	Amended and Restated Agreement of Limited Partnership of Cole Operating Partnership IV, LP, by and between Cole Credit Property Trust IV, Inc. and the limited partners thereto (Incorporated by reference to Exhibit 10.2 to the Company’s pre-effective amendment to Form S-11 (File No. 333-169533), filed January 24, 2012).
10.3	Distribution Reinvestment Plan (Incorporated by reference to Exhibit 10.3 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2014).
10.4	Purchase and Sale Agreement, dated April 13, 2012, between Cole Operating Partnership IV, LP and Series C, LLC to purchase 100% of the membership interests in Cole AA North Ridgeville OH, LLC (Incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.5	Purchase and Sale Agreement, dated April 13, 2012, between Cole Operating Partnership IV, LP and Series C, LLC to purchase 100% of the membership interests in Cole PM Wilkesboro NC, LLC (Incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.6	Borrowing Base Revolving Line of Credit Agreement, dated April 13, 2012 by and among Cole Operating Partnership IV, LP, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, the lenders referenced therein, and J.P. Morgan Securities LLC, as sole lead arranger and sole bookrunner (Incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q (File No. 333-169533), filed effective May 15, 2012).
10.7	Subordinate Promissory Note, dated April 13, 2012, by Cole Credit Property Trust IV, Inc. payable to Series C, LLC (Incorporated by reference to Exhibit 10.8 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
Exhibit No.	Description
10.8	Purchase and Sale Agreement by and between Cole NR Tampa FL, LLC, and VNO TRU Dale Mabry LLC, pursuant to an Assignment of Purchase and Sale Agreement dated April 16, 2012 (Incorporated by reference to Exhibit 10.9 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.9	Purchase Agreement and Escrow Instructions by and between Cole WG Blair NE, LLC, and Village Development — Blair, LLC, pursuant to an Assignment of Purchase and Sale Agreement dated April 18, 2012 (Incorporated by reference to Exhibit 10.10 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).

10.10	Purchase Agreement and Escrow Instructions by and between Cole CV Corpus Christi TX, LLC, and Deborah May-Buffum, Trustee of the Betty Upham Gouraud Trust, pursuant to an Assignment of Purchase and Sale Agreement dated April 19, 2012 (Incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.11	Master Purchase Agreement and Escrow Instructions between Cole CV Charleston SC, LLC, Cole CV Asheville NC, LLC, SC Charleston Investors I, LLC, and NC Asheville Investors I, LLC, pursuant to an Assignment of Purchase and Sale Agreement dated April 26, 2012 (Incorporated by reference to Exhibit 10.12 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.12	First Amendment of Advisory Agreement by and between Cole Credit Property Trust IV, Inc. and Cole REIT Advisors IV, LLC, dated February 23, 2012 (Incorporated by reference to Exhibit 10.13 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.13	Amended and Restated Escrow Agreement by and among Cole Credit Property Trust IV, Inc., Cole Capital Corporation and UMB Bank N.A., dated February 2, 2012 (Incorporated by reference to Exhibit 10.14 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 15, 2012).
10.14	Master Purchase Agreement and Escrow Instructions by and between Cole WG Montgomery AL, LLC, Cole WG Springfield IL, LLC, Cole WG Suffolk VA, LLC, and MGH ACQ LLC, pursuant to an Assignment of Purchase and Sale Agreement dated May 11, 2012 (Incorporated by reference to Exhibit 10.15 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed July 13, 2012).
10.15	Purchase and Sale Agreement by and between Cole MT Waxahachie TX, LLC and Lincoln Waxahachie, Ltd., pursuant to an Assignment of Purchase and Sale Agreement dated June 27, 2012 (Incorporated by reference to Exhibit 10.16 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed July 13, 2012).
10.16	Agreement for Sale and Purchase by and between Cole BN Golden Valley MN, LLC, Cole BN Lauderdale FL, LLC, Cole BN Lombard IL, LLC, Cole BN Woodlands TX, LLC, The Samurai, Inc., Benihana National of Florida Corp., Benihana Lombard Corp. and Benihana Woodlands Corp., dated August 3, 2012 (Incorporated by reference to Exhibit 10.18 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed October 10, 2012).
10.17	Amended and Restated Borrowing Base Revolving Line of Credit Agreement, dated as of July 13, 2012, by and among Cole Operating Partnership IV, LP, as borrower, JPMorgan Chase Bank, N.A. as administrative agent, the lenders referenced herein, Bank of America, N.A., as syndication agent, U.S. National Bank Association, as documentation agent, and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith, Incorporated, as joint bookrunners and joint lead arrangers (Incorporated by reference to Exhibit 10.11 to the Company’s Quarterly Report on Form 10-Q (File No. 333-169533), filed on August 14, 2012).
10.18	Master Purchase Agreement and Escrow Instructions by and between Cole WW Cape May NJ, LLC, Cole WW Galloway NJ, LLC, Cape May CS Associates, LLC and Galloway CS Associates, LLC, pursuant to two separate Partial Assignment of Master Agreement and Escrow Instructions each dated August 29, 2012 (Incorporated by reference to Exhibit 10.19 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed October 10, 2012).
10.19	Master Purchase Agreement and Escrow Instructions by and between Cole VS Brownsville TX, LLC, Cole VS Mission TX, LLC, Cole VS McAllen TX, LLC, Cole VS Odessa (42nd) TX, LLC, Cole VS Midland TX, LLC, Cole VS Brownwood TX, LLC, NNN Retail Properties Fund Sub I LLC and NNN Retail Properties Fund Sub II LLC, pursuant to six separate Partial Assignment of Master Agreement and Escrow Instructions each dated August 30, 2012 (Incorporated by reference to Exhibit 10.20 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed October 10, 2012).
10.20	Purchase and Sale Agreement by and between Cole MT Brooklyn NY, LLC and Canarsie Plaza, LLC, pursuant to an Assignment of Purchase and Sale Agreement dated November 26, 2012 (Incorporated by reference to Exhibit 10.21 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2013).
Exhibit No.	Description
10.21	Loan Agreement by and between Cole MT Brooklyn NY, LLC, as borrower and PNC Bank, National Association, as lender dated December 5, 2012 (Incorporated by reference to Exhibit 10.22 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2013).
10.22	Credit Agreement, dated December 14, 2012, among Cole Operating Partnership IV, LP, as borrower, each lender from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and syndication agent, and J.P. Morgan Securities LLC as lead arranger and book manager (Incorporated by reference to Exhibit 10.23 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed January 10, 2013).
10.23	Purchase Agreement by and between Cole CCPT IV Acquisitions, LLC and WPV San Jose, LLC, dated January 18, 2013. (Incorporated by reference to Exhibit 10.24 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed April 10, 2013).
10.24	Fourth Amendment to Purchase Agreement by and between Cole CCPT IV Acquisitions, LLC and WPV San Jose, LLC, dated February 12, 2013. (Incorporated by reference to Exhibit 10.25 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed April 10, 2013).
10.25	First Modification and Lender Joinder Agreement, dated March 8, 2013, by and among Cole Operating Partnership IV, LP, JPMorgan Chase Bank N.A. and Bank of America, N.A. (Incorporated by reference to Exhibit 10.26 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed April 10, 2013).
10.26	Loan Agreement dated April 15, 2013 between Cole MT San Jose CA, LP as Borrower and Wells Fargo Bank, National Association as Lender (Incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed May 14, 2013).
10.27	Second Modification Agreement, dated May 3, 2013, by and among Cole Operating Partnership IV, LP, JPMorgan Chase Bank N.A. and Bank of America, N.A. (Incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed August 13, 2013).
10.28	Third Modification and Lender Joinder Agreement, dated July 19, 2013, among Cole Operating Partnership IV, LP, JP Morgan Chase Bank, N.A., Bank of America, N.A. and U.S. Bank National Association (Incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q (File No. 000-54939), filed November 12, 2013).
10.29	Amended and Restated Credit Agreement, dated as of August 15, 2013, among Cole Operating Partnership IV, LP , as the borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Bank of America, N.A. and U.S. Bank National Association as Co-Syndication Agents, Capital One, N.A., Regions Bank, Wells Fargo Bank, National Association and PNC Bank, National Association as Co-Documentation Agents and the other lenders party thereto (Incorporated by reference to Exhibit 10.29 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed October 10, 2013).

Exhibit No.	Description
21.1	Subsidiaries of the Registrant (Incorporated by reference to Exhibit 21.1 to the Company’s post-effective amendment to Form S-11 (File No. 333-169533), filed April 10, 2013).
23.1*	Consent of Deloitte & Touche LLP, Independent Registered Public Accounting Firm.
31.1*	Certifications of the Principal Executive Officer of the Company pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of the Principal Financial Officer of the Company pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certifications of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

*

Filed herewith.

**

In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement No. 333-192958 on Form S-3 of our report dated March 30, 2015, relating to the consolidated financial statements and financial statement schedule of Cole Credit Property Trust IV, Inc. and subsidiaries appearing in this Annual Report on Form 10-K of Cole Credit Property Trust IV, Inc. for the year ended December 31, 2014.

/s/ DELOITTE & TOUCHE LLP

Phoenix, Arizona

March 30, 2015

EX-31.1

Exhibit 31.1

CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas W. Roberts, certify that:

1. I have reviewed this Annual Report on Form 10-K of Cole Credit Property Trust IV, 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 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 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.

Date:	March 30, 2015	/s/ THOMAS W. ROBERTS
		Name:	Thomas W. Roberts
		Title:	Chairman, Chief Executive Officer and President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Simon J. Misselbrook, certify that:

1. I have reviewed this Annual Report on Form 10-K of Cole Credit Property Trust IV, 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 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 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.

Date:	March 30, 2015	/s/ SIMON J. MISSELBROOK
		Name:	Simon J. Misselbrook
		Title:	Chief Financial Officer and Treasurer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C §1350)

Each of the undersigned officers of Cole Credit Property Trust IV, Inc. (the “Company”) hereby certifies, for purposes of Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(i) the accompanying Annual Report on Form 10-K of the Company for the year ended December 31, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		/s/ THOMAS W. ROBERTS
		Name:	Thomas W. Roberts
		Title:	Chairman, Chief Executive Officer and President (Principal Executive Officer)
		/s/ SIMON J. MISSELBROOK
		Name:	Simon J. Misselbrook
Date:	March 30, 2015	Title:	Chief Financial Officer and Treasurer (Principal Financial Officer)

The foregoing certification is being furnished with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except to the extent the Company specifically incorporates this certification by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Organization and Business (Details) (USD $)	12 Months Ended			3 Months Ended	23 Months Ended	24 Months Ended	0 Months Ended
	Dec. 31, 2014 sqft states Property	Dec. 31, 2013	Dec. 31, 2012	Mar. 25, 2015	Dec. 31, 2013	Apr. 04, 2014	Feb. 18, 2014	Nov. 25, 2013	Dec. 04, 2014	Mar. 30, 2015	Mar. 25, 2014	Dec. 19, 2013	Jan. 26, 2012
Organization and business [Line Items]
Common stock, shares authorized (in shares)	490,000,000	490,000,000	490,000,000		490,000,000
Share price (in dollars per share)	$ 10
Issuance of common stock	$ 941,930,000	$ 1,807,820,000	$ 298,438,000
Common stock shares registered dividend reinvestment plan	26,000,000
Number of owned properties (in number of properties)	759
Net Rentable Area	20,200,000
Number of states in which entity owns properties (in number of states)	45
Percentage of rentable space leased	99.00%
Subsequent event
Organization and business [Line Items]
Share price (in dollars per share)										$ 10
Issuance of common stock, shares (in shares)				11,700,000
Issuance of common stock				111,400,000
Primary offering
Organization and business [Line Items]
Common stock, shares subscribed but unissued											292,300,000
Distribution reinvestment plan
Organization and business [Line Items]
Shares issued pursuant to a distribution reinvestment plan (in shares)	11,000,000	2,700,000	207,000
Common stock, shares subscribed but unissued											5,100,000
Common stock shares registered dividend reinvestment plan												26,000,000
CCPT IV OP
Organization and business [Line Items]
General partner partnership interest percentage	100.00%
Unconsolidated joint venture
Organization and business [Line Items]
Number of owned properties (in number of properties)	1
Net Rentable Area	176,000
IPO And Secondary Offering | Distribution reinvestment plan
Organization and business [Line Items]
Shares issued pursuant to a distribution reinvestment plan (in shares)	8,800,000
IPO
Organization and business [Line Items]
Common stock, shares issued													2,975,000,000
Issuance of common stock, shares (in shares)					306,100,000	297,400,000
Issuance of common stock					3,000,000,000
Offering costs, selling commissions, and dealer management fees					306,000,000
Unsold shares deregistered						404,000
IPO | Distribution reinvestment plan
Organization and business [Line Items]
Common stock, shares authorized (in shares)													5,500,000
Share price (in dollars per share)													$ 9.50
IPO | Maximum
Organization and business [Line Items]
Common stock, shares authorized (in shares)													292,300,000
IPO | Maximum | Distribution reinvestment plan
Organization and business [Line Items]
Common stock, shares authorized value reallocated							23,000,000	400,000,000
RCAP Purchase Agreement | ARCP
Organization and business [Line Items]
Litigation amount settlement									$ 60,000,000

XML

Quarterly Results (Unaudited) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended																12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014		Jun. 30, 2014		Mar. 31, 2014		Dec. 31, 2013		Sep. 30, 2013		Jun. 30, 2013		Mar. 31, 2013		Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 83,279		$ 64,591		$ 56,861		$ 51,551		$ 39,053		$ 30,326		$ 21,773		$ 11,405		$ 256,282	$ 102,557	$ 7,837
Acquisition-related expenses	12,008		21,009		10,113		8,633		17,740		10,356		14,551		5,639		51,763	48,286	14,371
Operating income	20,378		3,698		10,790		10,564		(4,142)		552		(6,051)		(1,055)		45,430	(10,696)	(12,016)
Net income (loss)	9,181		(4,147)		3,190		2,946		(10,828)		(6,588)		(11,669)		(3,795)		11,170	(32,880)	(13,744)
Net income (loss) attributable to the Company	$ 9,196		$ (4,156)		$ 3,204		$ 2,946		$ (10,828)		$ (6,588)		$ (11,669)		$ (3,795)		$ 11,190	$ (32,880)	$ (13,744)
Basic and diluted net loss per common share (in dollars per share)	$ 0.03	[1]	$ (0.01)	[1]	$ 0.01	[1]	$ 0.01	[1]	$ (0.12)	[2]	$ (0.07)	[2]	$ (0.13)	[2]	$ (0.04)	[2]	$ 0.04	$ (0.36)	$ (1.60)
Distributions declared per common share (in dollars per share)	$ 0.16		$ 0.16		$ 0.16		$ 0.15		$ 0.16		$ 0.16		$ 0.16		$ 0.15

[1] Based on the weighted average number of shares outstanding as of December 31, 2014.

[2] Based on the weighted average number of shares outstanding as of December 31, 2013.

XML

Supplemental Cash Flow Disclosures (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Supplemental Cash Flow Elements [Abstract]
Distributions declared and unpaid	$ 16,189	$ 10,569	$ 1,456
Accrued other offering costs due to affiliates	0	4,937	1,661
Accrued capital expenditures	7,721	1,760	2,815
Common stock issued through distribution reinvestment plan	104,261	25,702	1,964
Net unrealized loss on interest rate swaps	(1,805)	(2,252)	0
Contingent consideration recorded upon property acquisitions	5,342	553	708
Fair value of assumed bond obligations	25,979	0	591
Supplemental Cash Flow Disclosures:
Interest paid	$ 31,159	$ 17,474	$ 783

XML

Subsequent Events - (Details) (USD $)	3 Months Ended								12 Months Ended			3 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 25, 2015 Property
Subsequent Event
Issuance of common stock									$ 941,930,000	$ 1,807,820,000	$ 298,438,000
Redemptions of common stock									10,849,000	1,182,000
Notes payable and credit facility	1,466,507,000				696,946,000				1,466,507,000	696,946,000
Debt, weighted average interest rate	3.10%								3.10%
Acquisition-related expenses	12,008,000	21,009,000	10,113,000	8,633,000	17,740,000	10,356,000	14,551,000	5,639,000	51,763,000	48,286,000	14,371,000
Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility
Subsequent Event
Line of credit, maximum borrowing capacity	1,600,000,000								1,600,000,000
Notes payable and credit facility	900,000,000				300,000,000				900,000,000	300,000,000
Debt, weighted average interest rate	1.97%								1.97%
Unsecured debt | JPMorgan Chase, Revolving credit facility | Term loan
Subsequent Event
Debt, weighted average interest rate	3.36%								3.36%
Unsecured debt | JPMorgan Chase, Revolving credit facility | Revolving loans
Subsequent Event
Line of credit, maximum borrowing capacity	600,000,000								600,000,000
Subsequent event
Subsequent Event
Issuance of common stock, shares (in shares)												11,700,000
Issuance of common stock												111,400,000
Redemptions of common stock, shares												834,000
Redemptions of common stock												8,000,000
Common stock average redemption price per share												$ 9.64
Number of businesses acquired (in properties)												52
Aggregate purchase price												169,900,000
Acquisition-related expenses												3,400,000
Subsequent event | Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility
Subsequent Event
Line of credit, maximum borrowing capacity												1,030,000,000
Notes payable and credit facility												949,700,000
Subsequent event | Unsecured debt | JPMorgan Chase, Revolving credit facility | Term loan
Subsequent Event
Line of credit, maximum borrowing capacity												386,700,000
Subsequent event | Unsecured debt | JPMorgan Chase, Revolving credit facility | Revolving loans
Subsequent Event
Line of credit, maximum borrowing capacity												643,300,000
Subsequent event | Notes payable
Subsequent Event
Debt Instrument, Face Amount												$ 53,500,000
Debt, weighted average interest rate												2.84%

XML

Notes Payable And Credit Facility Notes Payable And Credit Facility (Details) (USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013	Dec. 31, 2012
Debt [Roll Forward]
Notes payable and credit facility, beginning balance	$ 696,946,000
Debt issuances and assumptions	769,278,000
Repayments	(388,000)
Notes payable and credit facility, ending balance	1,466,507,000		696,946,000
Debt instrument, weighted average years to maturity	5 years
Debt, weighted average interest rate	3.10%
Fair value at the date of assumption	25,979,000		0	591,000
Long-term Debt, Fiscal Year Maturity [Abstract]
2015	408,000
2016	425,000
2017	600,451,000
2018	324,211,000
2019	499,000
Thereafter	539,842,000
Total	1,465,836,000
Mortgage notes payable
Debt [Roll Forward]
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities	944,600,000
Mortgage notes payable | Fixed rate debt
Debt [Roll Forward]
Notes payable and credit facility, ending balance	25,200,000
Mortgage notes payable | Fixed rate debt | Minimum
Debt [Roll Forward]
Line of credit fixed interest rate	3.35%
Mortgage notes payable | Fixed rate debt | Maximum
Debt [Roll Forward]
Line of credit fixed interest rate	4.98%
Mortgage notes payable | Fixed rate debt, variable rate debt fixed through the use of interest rate swaps
Debt [Roll Forward]
Notes payable and credit facility, ending balance	38,700,000
Notes payable | Fixed rate debt
Debt [Roll Forward]
Notes payable and credit facility, beginning balance	396,946,000
Debt issuances and assumptions	169,278,000
Repayments	(388,000)
Other	671,000	[1]
Notes payable and credit facility, ending balance	566,507,000
Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility
Debt [Roll Forward]
Notes payable and credit facility, beginning balance	300,000,000
Debt issuances and assumptions	600,000,000
Repayments	0
Other	0	[1]
Notes payable and credit facility, ending balance	900,000,000
Debt, weighted average interest rate	1.97%
Line of credit, maximum borrowing capacity	1,600,000,000
Line of credit facility, covenant, minimum consolidated net worth	2,000,000,000
Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility | Maximum
Debt [Roll Forward]
Debt instrument, covenant, fixed charge coverage ratio	1.50
Line of credit facility, covenant, unsecured debt service coverage ratio	1.75
Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility | From and after August 15, 2014 | Minimum
Debt [Roll Forward]
Line of credit facility, covenant, leverage ratio	60.00%
Debt instrument, covenant, unsecured debt to unencumbered asset value ratio	50.00%
Line of credit | JPMorgan Chase, Revolving credit facility | Revolving credit facility | From and after August 15, 2014, but prior to August 15, 2016 | Minimum
Debt [Roll Forward]
Line of credit facility, covenant, secured debt ratio	30.00%
Line of credit | Eurodollar rate loan | Revolving credit facility | Leverage Ratio Not to Exceed Sixty-Five Percent or Sixty Percent on or Subsequent to August Fifteenth, 2018 | Minimum | London Interbank Offered Rate (LIBOR)
Debt [Roll Forward]
Derivative, basis spread on variable rate	1.65%
Line of credit | Eurodollar rate loan | Revolving credit facility | Leverage Ratio Not to Exceed Sixty-Five Percent or Sixty Percent on or Subsequent to August Fifteenth, 2018 | Maximum | London Interbank Offered Rate (LIBOR)
Debt [Roll Forward]
Derivative, basis spread on variable rate	2.50%
Line of credit | Base rate committed loans | Revolving credit facility | Leverage Ratio Not to Exceed Sixty-Five Percent or Sixty Percent on or Subsequent to August Fifteenth, 2018 | Minimum | Base Rate
Debt [Roll Forward]
Derivative, basis spread on variable rate	0.65%
Line of credit | Base rate committed loans | Revolving credit facility | Leverage Ratio Not to Exceed Sixty-Five Percent or Sixty Percent on or Subsequent to August Fifteenth, 2018 | Maximum | Base Rate
Debt [Roll Forward]
Derivative, basis spread on variable rate	1.50%
Line of credit | Floating rate loan | Revolving credit facility | Federal funds rate plus
Debt [Roll Forward]
Debt instrument, basis spread on variable rate	0.50%
Line of credit | Floating rate loan | Revolving credit facility | One-Month LIBOR
Debt [Roll Forward]
Debt instrument, basis spread on variable rate	1.00%
Unsecured debt | JPMorgan Chase, Revolving credit facility | Term loan
Debt [Roll Forward]
Debt, weighted average interest rate	3.36%
Line of credit, current borrowing capacity	300,000,000
Unsecured debt | JPMorgan Chase, Revolving credit facility | Revolving loans
Debt [Roll Forward]
Line of credit, maximum borrowing capacity	$ 600,000,000
Cash flow hedging | Deferred rental income and other liabilities | Interest Rate Swaps
Debt [Roll Forward]
Interest Rate	1.713%
Cash flow hedging | Deferred rental income and other liabilities | Interest Rate Swaps | Minimum
Debt [Roll Forward]
Interest Rate	3.36%	[2]
Cash flow hedging | Deferred rental income and other liabilities | Interest Rate Swaps | Maximum
Debt [Roll Forward]
Interest Rate	4.75%	[2]

[1] Represents fair value adjustment of an assumed mortgage note payable, net of amortization.

[2] (1)The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread.

XML

Acquired Below Market Lease Intangibles (Tables)

12 Months Ended

Dec. 31, 2014

Intangible Liabilities Disclosure [Abstract]

Schedule of finite-lived intangible liabilities

Acquired below market lease intangibles consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
Acquired below market leases, net of accumulated amortization of $8,807
	and $2,237, respectively (with a weighted average life remaining of 9.2
	years and 11.6 years, respectively)	$	55,535	$	37,485

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization of the intangible lease liabilities as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

Year Ending December 31,	Amortization of Below Market Leases
2015	$	8,570
2016	$	8,122
2017	$	7,908
2018	$	7,588
2019	$	6,999

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Deprecation - 1 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
24 Hour Fitness: | Beaverton, OR
Real Estate and Accumulated Depreciation [Line Items]
Land	2,609
Buildings and Improvements	9,974
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,583
Accumulated Depreciation	73
24 Hour Fitness: | Fort Worth, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,519
Buildings and Improvements	7,449
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,968
Accumulated Depreciation	254
Aaron Rents: | Hillsboro , OH
Real Estate and Accumulated Depreciation [Line Items]
Land	279
Buildings and Improvements	829
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,108
Accumulated Depreciation	37
Academy Sports: | Clarksville, TN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,811
Buildings and Improvements	6,603
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,414
Accumulated Depreciation	97
Academy Sports: | Cookeville, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances
Land	0
Buildings and Improvements	23,847
Total Adjustment to Basis	12,841
Gross Amount at Which Carried At December 31, 2014	36,688
Accumulated Depreciation	0
Academy Sports: | Douglasville, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,360
Buildings and Improvements	8,593
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,953
Accumulated Depreciation	131
Academy Sports: | Flowood, MS
Real Estate and Accumulated Depreciation [Line Items]
Land	1,534
Buildings and Improvements	7,864
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,398
Accumulated Depreciation	122
Academy Sports: | McDonough, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,846
Buildings and Improvements	5,626
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,472
Accumulated Depreciation	111
Academy Sports: | Valdosta, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,838
Land	2,482
Buildings and Improvements	5,922
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,404
Accumulated Depreciation	286
Advance Auto: | Corydon, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	190
Buildings and Improvements	1,219
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,409
Accumulated Depreciation	73
Advance Auto: | Dearborn Heights, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	385
Buildings and Improvements	1,090
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,475
Accumulated Depreciation	37
Advance Auto: | Decatur, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	606
Buildings and Improvements	1,053
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,659
Accumulated Depreciation	30
Advance Auto: | Lake Geneva, WI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,062
Land	381
Buildings and Improvements	1,181
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,562
Accumulated Depreciation	58
Advance Auto: | Mt. Pleasant, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	122
Buildings and Improvements	1,069
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,191
Accumulated Depreciation	23
Advance Auto: | North Ridgeville, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	218
Buildings and Improvements	1,284
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,502
Accumulated Depreciation	88
Advance Auto: | Rutherfordton, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	220
Buildings and Improvements	944
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,164
Accumulated Depreciation	30
Advance Auto: | Starkville, MS
Real Estate and Accumulated Depreciation [Line Items]
Land	447
Buildings and Improvements	756
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,203
Accumulated Depreciation	55
Albany Square: | Albany, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,606
Buildings and Improvements	7,113
Total Adjustment to Basis	300
Gross Amount at Which Carried At December 31, 2014	9,019
Accumulated Depreciation	208
Almeda Crossing: | Houston, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	4,738
Buildings and Improvements	26,245
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	30,983
Accumulated Depreciation	270
Amazon: | Lebanon, TN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,934
Buildings and Improvements	56,286
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	58,220
Accumulated Depreciation	313
Applebee's: | Greenville, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	672
Buildings and Improvements	1,737
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,409
Accumulated Depreciation	24
Applebee's: | Lithonia, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,234
Buildings and Improvements	2,613
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,847
Accumulated Depreciation	52
Applebee's: | Savannah, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	818
Buildings and Improvements	1,686
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,504
Accumulated Depreciation	28
Auto Zone: | Philipburg, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	815
Buildings and Improvements	0
Total Adjustment to Basis	112
Gross Amount at Which Carried At December 31, 2014	927
Accumulated Depreciation	0
Auto Zone: | Sheffield, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	152
Buildings and Improvements	1,304
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,456
Accumulated Depreciation	85
Bass Pro Shop: | Tallahassee, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	945
Buildings and Improvements	5,713
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,658
Accumulated Depreciation	222
Beavercreek Shopping Center: | Beavercreek, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	5,504
Buildings and Improvements	25,178
Total Adjustment to Basis	485
Gross Amount at Which Carried At December 31, 2014	31,167
Accumulated Depreciation	848
Bed Bath & Beyond/Golf Smith: | Schaumburg, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	4,786
Buildings and Improvements	6,149
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,935
Accumulated Depreciation	380
Benihana: | Golden Valley, MN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,510
Buildings and Improvements	2,934
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,444
Accumulated Depreciation	181
Benihana: | Lauderdale by the Sea, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	2,181
Buildings and Improvements	2,014
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,195
Accumulated Depreciation	127
Benihana: | Lombard, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,390
Buildings and Improvements	2,343
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,733
Accumulated Depreciation	173
Benihana: | Woodlands, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,151
Buildings and Improvements	968
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,119
Accumulated Depreciation	62
Big Lots: | San Angelo, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,043
Buildings and Improvements	1,947
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,990
Accumulated Depreciation	157
Big Lots: | Waco, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,069
Buildings and Improvements	1,326
Total Adjustment to Basis	56
Gross Amount at Which Carried At December 31, 2014	2,451
Accumulated Depreciation	114
Biolife Plasma Services: | Bellingham, WA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,397
Buildings and Improvements	6,264
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,661
Accumulated Depreciation	23
Biolife Plasma Services: | Grandville, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	959
Buildings and Improvements	4,791
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,750
Accumulated Depreciation	16
Biolife Plasma Services: | Loveland, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	651
Buildings and Improvements	5,645
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,296
Accumulated Depreciation	19
Biolife Plasma Services: | Bloomington, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	696
Buildings and Improvements	3,900
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,596
Accumulated Depreciation	55
Biolife Plasma Services: | Fort Wayne, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	660
Buildings and Improvements	3,749
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,409
Accumulated Depreciation	53
Biolife Plasma Services: | St. Cloud, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	889
Buildings and Improvements	3,633
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,522
Accumulated Depreciation	57
Biolife Plasma Services: | Waterloo, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	489
Buildings and Improvements	3,380
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,869
Accumulated Depreciation	53
Bojangles: | Pelham, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	219
Buildings and Improvements	1,216
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,435
Accumulated Depreciation	18
Boston Commons: | Springfield, MA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,101
Buildings and Improvements	7,042
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,143
Accumulated Depreciation	83
Bottom Dollar Grocery: | Ambridge, PA
Real Estate and Accumulated Depreciation [Line Items]
Land	519
Buildings and Improvements	2,985
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,504
Accumulated Depreciation	87
Brownsville Plaza: | Baldwin, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	627
Buildings and Improvements	2,702
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,329
Accumulated Depreciation	70
Bryan Crossing: | Kodak, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	863
Buildings and Improvements	6,523
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,386
Accumulated Depreciation	53
Buffalo Wild Wings: | Idaho Falls, ID
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	712
Buildings and Improvements	1,336
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,048
Accumulated Depreciation	16
Buffalo Wild Wings: | Warrenville, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,208
Buildings and Improvements	1,420
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,628
Accumulated Depreciation	85
Buffalo Wild Wings: | Woodridge, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,139
Buildings and Improvements	1,484
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,623
Accumulated Depreciation	88
Caliber Collision Center: | Frisco, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,484
Buildings and Improvements	2,038
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,522
Accumulated Depreciation	17
Caliber Collision Center: | Las Cruces, MN
Real Estate and Accumulated Depreciation [Line Items]
Land	673
Buildings and Improvements	1,949
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,622
Accumulated Depreciation	39
Caliber Collision Center: | Midwest City, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	259
Buildings and Improvements	1,165
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,424
Accumulated Depreciation	26
Caliber Collision Center: | Denver, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	855
Buildings and Improvements	658
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,513
Accumulated Depreciation	9
Caliber Collision Center: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	622
Buildings and Improvements	832
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,454
Accumulated Depreciation	12
Canton Marketplace: | Canton, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	32,000
Land	8,310
Buildings and Improvements	48,667
Total Adjustment to Basis	780
Gross Amount at Which Carried At December 31, 2014	57,757
Accumulated Depreciation	2,838
Carlisle Crossing: | Carlisle, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	4,491
Buildings and Improvements	15,817
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	20,308
Accumulated Depreciation	177
Canarsie Plaza: | Brooklyn, NY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	75,000
Land	37,970
Buildings and Improvements	71,267
Total Adjustment to Basis	790
Gross Amount at Which Carried At December 31, 2014	110,027
Accumulated Depreciation	3,680
Century Plaza: | Orlando, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,094
Buildings and Improvements	6,178
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,272
Accumulated Depreciation	114
Chase: | Hanover Township, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	2,192
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,192
Accumulated Depreciation	0
Chestnut Square: | Brevard, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	425
Buildings and Improvements	5,037
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,462
Accumulated Depreciation	216
Chili's: | Forest City, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	233
Buildings and Improvements	1,936
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,169
Accumulated Depreciation	14
Coosa Town Center: | Gadsden, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,246
Buildings and Improvements	7,799
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,045
Accumulated Depreciation	244
Cost Plus World Market: | Kansas City, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	1,378
Buildings and Improvements	2,396
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,774
Accumulated Depreciation	185
Costco: | Tallahassee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,146
Land	9,497
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,497
Accumulated Depreciation	0
Cottonwood Commons: | Albuquerque, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	19,250
Land	4,986
Buildings and Improvements	28,881
Total Adjustment to Basis	519
Gross Amount at Which Carried At December 31, 2014	34,386
Accumulated Depreciation	1,139
Coventry Crossing: | Coventry , RI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	6,000
Land	3,462
Buildings and Improvements	5,899
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,361
Accumulated Depreciation	219
Crosspoint: | Hagerstown, MD
Real Estate and Accumulated Depreciation [Line Items]
Land	12,285
Buildings and Improvements	14,359
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	26,644
Accumulated Depreciation	140
Crossroads Annex: | Lafayette, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,659
Buildings and Improvements	7,091
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,750
Accumulated Depreciation	212
Crossroads Commons: | Plover, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	1,000
Buildings and Improvements	4,515
Total Adjustment to Basis	75
Gross Amount at Which Carried At December 31, 2014	5,590
Accumulated Depreciation	155
CVS: | Hanover Township, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	4,746
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,746
Accumulated Depreciation	0
CVS: | Arnold, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	2,043
Buildings and Improvements	2,367
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,410
Accumulated Depreciation	63
CVS: | Asheville, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,108
Buildings and Improvements	1,084
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,192
Accumulated Depreciation	77
CVS: | Austin, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,076
Buildings and Improvements	3,475
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,551
Accumulated Depreciation	93
CVS: | Bainbridge, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	444
Buildings and Improvements	1,682
Total Adjustment to Basis	47
Gross Amount at Which Carried At December 31, 2014	2,173
Accumulated Depreciation	112
CVS: | Bloomington, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,620
Buildings and Improvements	2,957
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,577
Accumulated Depreciation	79
CVS: | Blue Springs, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	395
Buildings and Improvements	2,722
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,117
Accumulated Depreciation	73
CVS: | Bridgeton, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	2,056
Buildings and Improvements	2,362
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,418
Accumulated Depreciation	63
CVS: | Cartersville, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,547
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,547
Accumulated Depreciation	0
CVS: | Charleston, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	869
Buildings and Improvements	1,009
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,878
Accumulated Depreciation	72
CVS: | Chesapeake, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,044
Buildings and Improvements	3,053
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,097
Accumulated Depreciation	83
CVS: | Chicago, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,832
Buildings and Improvements	4,255
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,087
Accumulated Depreciation	191
CVS: | Cicero, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	487
Buildings and Improvements	3,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,586
Accumulated Depreciation	83
CVS: | Corpus Christi, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	648
Buildings and Improvements	2,557
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,205
Accumulated Depreciation	176
CVS: | Danville, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	424
Buildings and Improvements	2,105
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,529
Accumulated Depreciation	26
CVS: | Eminence, KY
Real Estate and Accumulated Depreciation [Line Items]
Land	872
Buildings and Improvements	2,511
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,383
Accumulated Depreciation	66
CVS: | Florence, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,735
Land	1,030
Buildings and Improvements	1,446
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,476
Accumulated Depreciation	68
CVS: | Goose Creek, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,022
Buildings and Improvements	1,980
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,002
Accumulated Depreciation	53
CVS: | Greenwood, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	912
Buildings and Improvements	3,549
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,461
Accumulated Depreciation	130
CVS: | Hazlet, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	3,047
Buildings and Improvements	3,610
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,657
Accumulated Depreciation	96
CVS: | Honesdale, PA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,206
Buildings and Improvements	3,342
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,548
Accumulated Depreciation	92
CVS: | Independence, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	359
Buildings and Improvements	2,242
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,601
Accumulated Depreciation	60
CVS: | Indianapolis, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,110
Buildings and Improvements	2,484
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,594
Accumulated Depreciation	67
CVS: | Irving, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	745
Buildings and Improvements	3,034
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,779
Accumulated Depreciation	172
CVS: | Jacksonville, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	2,182
Buildings and Improvements	3,817
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,999
Accumulated Depreciation	45
CVS: | Janesville, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	736
Buildings and Improvements	2,545
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,281
Accumulated Depreciation	68
CVS: | Katy, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,149
Buildings and Improvements	2,462
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,611
Accumulated Depreciation	65
CVS: | Lincoln, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	2,534
Buildings and Improvements	3,014
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,548
Accumulated Depreciation	$ 80

XML

Schedule III - Real Estate Assets and Accumulated Depreciated

12 Months Ended

Dec. 31, 2014

SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]

Schedule III - Real Estate Assets and Accumulated Depreciation

As of December 31, 2014, the Company owned 672 single-tenant, freestanding retail properties, 77 multi-tenant retail properties, seven office/industrial properties, and three medical office buildings.

(b) The aggregate cost for federal income tax purposes was $3.9 billion.

(c) The following is a reconciliation of total real estate carrying value for the years ended December 31 (in thousands):

			2014			2013
Balance, beginning of period				$	1,960,708		$	464,539
	Additions
		Acquisitions		1,613,201			1,494,171
		Improvements		18,967			1,998
	Total additions			$	1,632,168		$	1,496,169
	Deductions
		Cost of real estate sold		1,937			—
		Adjustment to basis		—			—
		Other (including provisions for impairment of real estate assets)		—			—
	Total deductions			1,937			—
Balance, end of period				$	3,590,939		$	1,960,708

(d) The following is a reconciliation of accumulated depreciation for the years ended December 31 (in thousands):

			2014			2013
Balance, beginning of period				$	23,377		$	1,743
	Additions
		Acquisitions - Depreciation Expense for Building, Acquisitions Costs & Tenant Improvements Acquired		54,656			21,624
		Improvements - Depreciation Expense for Tenant Improvements and Building Equipment		153			10
	Total additions			$	54,809		$	21,634
	Deductions
		Cost of real estate sold		—			—
		Other (including provisions for impairment of real estate assets)		—			—
	Total deductions			—			—
Balance, end of period				$	78,186		$	23,377

(e) The Company’s assets are depreciated or amortized using the straight-line method over the useful lives of the assets by class. Generally, tenant improvements are amortized over the respective lease term and buildings are depreciated over 40 years.

(f) Subject to ground lease and therefore date constructed is not applicable.

(g) Property is included in the Credit Facility’s borrowing base. As of December 31, 2014, the Company had $900.0 million outstanding under the Credit Facility.

XML

Related-Party Transactions and Arrangements (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]
Due to affiliates	$ 5,473,000	$ 7,512,000
Advisors
Related Party Transaction [Line Items]
Cumulative noncompounded annual return	8.00%
Advisors | Listing commission
Related Party Transaction [Line Items]
Commissions performance and other fees percent	15.00%
Advisors | Minimum
Related Party Transaction [Line Items]
Operating expense reimbursement percent	2.00%
Operating expense reimbursement percent of net income	25.00%
Offering Costs [Member] | Advisors
Related Party Transaction [Line Items]
Due to affiliates	0	4,900,000	1,700,000
Selling commissions (1) | Dealer manager commission | Maximum
Related Party Transaction [Line Items]
Commissions percentage on stock sales and related dealer manager fees	7.00%
Selling commissions (1) | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	55,921,000	122,082,000	20,107,000
Selling commissions reallowed by CCC | Dealer manager commission reallowed
Related Party Transaction [Line Items]
Commissions percentage on stock sales and related dealer manager fees	100.00%
Selling commissions reallowed by CCC | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	55,921,000	122,082,000	20,107,000
Dealer manager fees (1) | Dealer manager
Related Party Transaction [Line Items]
Commissions percentage on stock sales and related dealer manager fees	2.00%
Dealer manager fees (1) | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	16,780,000	35,685,000	5,944,000
Dealer manager fees reallowed by CCC | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	9,326,000	20,183,000	3,104,000
Other organization and offering expenses | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	7,277,000	36,179,000	5,983,000
Other organization and offering expenses | Advisors | Maximum
Related Party Transaction [Line Items]
Organization and offering expense	2.00%
Acquisitions and Operations Costs | Advisors
Related Party Transaction [Line Items]
Due to affiliates	5,500,000	2,600,000	268,000
Acquisition fees and expenses | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	38,483,000	35,109,000	10,342,000
Acquisition fees and expenses | Advisors | Maximum
Related Party Transaction [Line Items]
Acquisition and advisory fee	6.00%
Acquisition fees and expenses | Advisors | Maximum | Contract purchase price of each asset
Related Party Transaction [Line Items]
Acquisition and advisory fee	2.00%
Advisory fees and expenses | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	24,152,000	10,549,000	812,000
Operating expenses | Advisors
Related Party Transaction [Line Items]
Related party transaction, expenses from transactions with related party	3,383,000	2,905,000	138,000
Property sales commission | Advisors | Contract sale price of each property
Related Party Transaction [Line Items]
Commissions performance and other fees percent	1.00%
Property portfolio | Advisors | Maximum
Related Party Transaction [Line Items]
Commissions performance and other fees percent	6.00%
Performance fee | Advisors
Related Party Transaction [Line Items]
Commissions performance and other fees percent	15.00%
Average invested assets between $0 to $2 billion | Advisors
Related Party Transaction [Line Items]
Asset management or advisory fees percent	0.75%
Average invested assets between $0 to $2 billion | Advisors | Maximum
Related Party Transaction [Line Items]
Average invested assets	2,000,000,000.0
Average invested assets between $0 to $2 billion | Advisors | Minimum
Related Party Transaction [Line Items]
Average invested assets	0
Average invested assets between $2 billion to $4 billion | Advisors
Related Party Transaction [Line Items]
Asset management or advisory fees percent	0.70%
Average invested assets between $2 billion to $4 billion | Advisors | Maximum
Related Party Transaction [Line Items]
Average invested assets	4,000,000,000
Average invested assets between $2 billion to $4 billion | Advisors | Minimum
Related Party Transaction [Line Items]
Average invested assets	2,000,000,000
Average invested assets over $4 billion | Advisors
Related Party Transaction [Line Items]
Asset management or advisory fees percent	0.65%
Average invested assets over $4 billion | Advisors | Minimum
Related Party Transaction [Line Items]
Average invested assets	$ 4,000,000,000.0

XML

Summary of Significant Accounting Policies - Concentration of credit risk (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Property financial_institutions
Concentration Risk [Line Items]
Cash on deposit, number of financial institutions	10
Cash on deposit, number of financial institutions which had deposits in excess of current federally insured limits	3
Concentration risk, credit risk, financial instrument, maximum exposure	$ 58.7
Number of owned properties (in number of properties)	759
Texas
Concentration Risk [Line Items]
Number of owned properties (in number of properties)	92
California
Concentration Risk [Line Items]
Number of owned properties (in number of properties)	75
Gross annualized rental revenue | Credit concentration risk | Texas
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Gross annualized rental revenue | Credit concentration risk | California
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%
Gross annualized rental revenue | Customer concentration risk
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%
Gross annualized rental revenue | Customer concentration risk | Drugstore industry
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%
Gross annualized rental revenue | Customer concentration risk | Discount store industry
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%

XML

Operating Leases Operating Leases (Tables)

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

Schedule of future minimum rental payments for operating leases

The future minimum rental income from the Company’s investment in real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of December 31, 2014, was as follows (in thousands):

Year Ending December 31,	Future Minimum Rental Income
2015	$	293,566
2016	287,849
2017	281,864
2018	271,222
2019	254,989
Thereafter	2,040,528
	$	3,430,018

XML

Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Ordinary dividends	47.00%	60.00%	72.00%
Nontaxable distributions	53.00%	40.00%	28.00%
Total	100.00%	100.00%	100.00%
Property, plant and equipment, land and real estate assets, net tax basis	$ 3,900,000,000
State and local income tax and franchise tax expense (benefit), continuing operations	$ 1,300,000	$ 473,000	$ 113,000

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 5 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
IHOP: | Lancaster, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	157
Buildings and Improvements	1,497
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,654
Accumulated Depreciation	20
IHOP: | Rio Rancho, NM
Real Estate and Accumulated Depreciation [Line Items]
Land	599
Buildings and Improvements	2,314
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,913
Accumulated Depreciation	46
IHOP: | Richmond, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	106
Buildings and Improvements	1,428
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,534
Accumulated Depreciation	20
Inglewood Plaza: | Inglewood, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	9,880
Buildings and Improvements	14,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	23,979
Accumulated Depreciation	111
Kirklands: | Dothan, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	486
Buildings and Improvements	946
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,432
Accumulated Depreciation	12
Kirklands: | Jonesboro, AR
Real Estate and Accumulated Depreciation [Line Items]
Land	696
Buildings and Improvements	1,990
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,686
Accumulated Depreciation	106
Kohl’s: | Cedar Falls, IA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,600
Buildings and Improvements	5,796
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,396
Accumulated Depreciation	321
Kohl’s: | Charlottesville, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,929
Buildings and Improvements	12,280
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	16,209
Accumulated Depreciation	146
Kohl’s: | Hutchinson, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	3,290
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,290
Accumulated Depreciation	0
Kroger: | Shelton, WA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,180
Buildings and Improvements	11,040
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,220
Accumulated Depreciation	227
Kroger: | Whitehall, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	581
Buildings and Improvements	6,628
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,209
Accumulated Depreciation	198
Kum & Go: | Bentonville (Central), AR
Real Estate and Accumulated Depreciation [Line Items]
Land	916
Buildings and Improvements	1,864
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,780
Accumulated Depreciation	80
Kum & Go: | Conway, AR
Real Estate and Accumulated Depreciation [Line Items]
Land	510
Buildings and Improvements	2,577
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,087
Accumulated Depreciation	35
Kum & Go: | Fairfield, IA
Real Estate and Accumulated Depreciation [Line Items]
Land	422
Buildings and Improvements	1,913
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,335
Accumulated Depreciation	82
Kum & Go: | Mount Vernon, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	708
Buildings and Improvements	1,756
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,464
Accumulated Depreciation	75
Kum & Go: | Urbandale, IA
Real Estate and Accumulated Depreciation [Line Items]
Land	722
Buildings and Improvements	1,658
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,380
Accumulated Depreciation	72
L.A. Fitness: | Bloomfield Township, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	2,287
Buildings and Improvements	10,075
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,362
Accumulated Depreciation	438
L.A. Fitness: | Garland, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	2,005
Buildings and Improvements	6,861
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,866
Accumulated Depreciation	187
L.A. Fitness: | Houston, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	5,764
Buildings and Improvements	5,994
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,758
Accumulated Depreciation	206
L.A. Fitness: | Mesa, AZ
Real Estate and Accumulated Depreciation [Line Items]
Land	1,353
Buildings and Improvements	7,730
Total Adjustment to Basis	20
Gross Amount at Which Carried At December 31, 2014	9,103
Accumulated Depreciation	352
L.A. Fitness: | Ocoee, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,173
Buildings and Improvements	6,876
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,049
Accumulated Depreciation	263
L.A. Fitness: | Riverside, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,557
Buildings and Improvements	9,951
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,508
Accumulated Depreciation	368
Logan’s Roadhouse: | Bristol, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	991
Buildings and Improvements	2,560
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,551
Accumulated Depreciation	139
Logan’s Roadhouse: | Fort Wayne, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	868
Buildings and Improvements	2,698
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,566
Accumulated Depreciation	53
Logan’s Roadhouse: | Lancaster, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,203
Buildings and Improvements	1,620
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,823
Accumulated Depreciation	97
Logan’s Roadhouse: | Martinsburg, WV
Real Estate and Accumulated Depreciation [Line Items]
Land	925
Buildings and Improvements	2,183
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,108
Accumulated Depreciation	67
Logan’s Roadhouse: | Opelika, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	836
Buildings and Improvements	1,508
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,344
Accumulated Depreciation	91
Logan’s Roadhouse: | Sanford, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,031
Buildings and Improvements	1,807
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,838
Accumulated Depreciation	109
Logan’s Roadhouse: | Troy, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	992
Buildings and Improvements	1,577
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,569
Accumulated Depreciation	94
Lowe’s: | Adrian, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	2,604
Buildings and Improvements	5,036
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,640
Accumulated Depreciation	225
Lowe’s: | Asheboro, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,098
Buildings and Improvements	6,722
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,820
Accumulated Depreciation	98
Lowe’s: | Cincinnati, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	14,092
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,092
Accumulated Depreciation	0
Lowe’s: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	3,943
Buildings and Improvements	6,353
Total Adjustment to Basis	750
Gross Amount at Which Carried At December 31, 2014	11,046
Accumulated Depreciation	240
Lowe’s: | Covington, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	10,233
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,233
Accumulated Depreciation	0
Lowe’s: | Mansfield, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	873
Buildings and Improvements	8,256
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,129
Accumulated Depreciation	123
Lowe’s: | Oxford, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,668
Buildings and Improvements	7,622
Total Adjustment to Basis	369
Gross Amount at Which Carried At December 31, 2014	9,659
Accumulated Depreciation	365
Lowe’s: | Tuscaloosa, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	4,908
Buildings and Improvements	4,786
Total Adjustment to Basis	9
Gross Amount at Which Carried At December 31, 2014	9,703
Accumulated Depreciation	165
Lowe’s: | Zanesville, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	2,161
Buildings and Improvements	8,375
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,536
Accumulated Depreciation	235
Market Heights Shopping Center: | Harker Heights, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	47,000
Land	12,888
Buildings and Improvements	64,105
Total Adjustment to Basis	3
Gross Amount at Which Carried At December 31, 2014	76,996
Accumulated Depreciation	2,325
Marketplace at the Lakes: | West Covina, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	10,020
Buildings and Improvements	8,664
Total Adjustment to Basis	1
Gross Amount at Which Carried At December 31, 2014	18,685
Accumulated Depreciation	586
Matteson Center: | Matteson, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,243
Buildings and Improvements	17,427
Total Adjustment to Basis	393
Gross Amount at Which Carried At December 31, 2014	19,063
Accumulated Depreciation	673
Mattress Firm: | Jonesboro, AR
Real Estate and Accumulated Depreciation [Line Items]
Land	729
Buildings and Improvements	1,194
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,923
Accumulated Depreciation	90
Mattress Firm: | Cincinnati, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	323
Buildings and Improvements	966
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,289
Accumulated Depreciation	12
Mattress Firm: | Augusta, ME
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	723
Buildings and Improvements	1,354
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,077
Accumulated Depreciation	26
Mattress Firm: | Brunswick, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	343
Buildings and Improvements	1,040
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,383
Accumulated Depreciation	40
Mattress Firm: | Danville, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	274
Buildings and Improvements	1,514
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,788
Accumulated Depreciation	29
Mattress Firm: | Huber Heights, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	854
Buildings and Improvements	903
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,757
Accumulated Depreciation	13
Mattress Firm: | Lakeland, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	259
Buildings and Improvements	1,107
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,366
Accumulated Depreciation	15
Mattress Firm: | Nampa, ID
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	449
Buildings and Improvements	2,213
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,662
Accumulated Depreciation	46
Mattress Firm: | New Bern, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	340
Buildings and Improvements	1,436
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,776
Accumulated Depreciation	11
Mattress Firm: | Pineville, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,557
Buildings and Improvements	1,198
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,755
Accumulated Depreciation	80
Mattress Firm: | Port Charlotte, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	382
Buildings and Improvements	1,211
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,593
Accumulated Depreciation	12
Mattress FIrm & Aspen Dental: | Vienna, WV
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	774
Buildings and Improvements	2,466
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,240
Accumulated Depreciation	24
Mattress Firm & Five Guys: | Muskegon, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	813
Buildings and Improvements	1,766
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,579
Accumulated Depreciation	18
McAlister's Deli: | Lawton, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	805
Buildings and Improvements	1,057
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,862
Accumulated Depreciation	18
McAlister's Deli: | Port Arthur, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	379
Buildings and Improvements	1,146
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,525
Accumulated Depreciation	27
Michael’s: | Bowling Green, KY
Real Estate and Accumulated Depreciation [Line Items]
Land	587
Buildings and Improvements	1,992
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,579
Accumulated Depreciation	131
National Tire & Battery: | Cedar Hill, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	469
Buildings and Improvements	1,951
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,420
Accumulated Depreciation	102
National Tire & Battery: | Fort Worth, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	936
Buildings and Improvements	1,234
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,170
Accumulated Depreciation	45
National Tire & Battery: | Frisco, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	844
Buildings and Improvements	1,608
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,452
Accumulated Depreciation	58
National Tire & Battery: | Montgomery, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	516
Buildings and Improvements	2,494
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,010
Accumulated Depreciation	127
Native Wings: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	821
Buildings and Improvements	2,682
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,503
Accumulated Depreciation	27
Natural Grocers: | Denton, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,326
Buildings and Improvements	3,134
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,460
Accumulated Depreciation	122
Natural Grocers: | Idaho Falls, ID
Real Estate and Accumulated Depreciation [Line Items]
Land	833
Buildings and Improvements	2,316
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,149
Accumulated Depreciation	54
Natural Grocers: | Lubbock, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,093
Buildings and Improvements	3,621
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,714
Accumulated Depreciation	159
Nordstrom Rack: | Tampa, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	3,371
Buildings and Improvements	6,402
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,773
Accumulated Depreciation	540
O’Reilly Automotive: | Brownfield, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	22
Buildings and Improvements	835
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	857
Accumulated Depreciation	59
O’Reilly Automotive: | Columbus, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	260
Buildings and Improvements	757
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,017
Accumulated Depreciation	50
O’Reilly Automotive: | Lamesa, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	64
Buildings and Improvements	608
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	672
Accumulated Depreciation	1
O’Reilly Automotive: | Stanley, ND
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	323
Buildings and Improvements	662
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	985
Accumulated Depreciation	6
Park Place: | Enterprise, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	931
Buildings and Improvements	8,595
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,526
Accumulated Depreciation	308
Pep Boys: | Clermont, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	799
Buildings and Improvements	1,993
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,792
Accumulated Depreciation	84
Pep Boys: | Oviedo, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	669
Buildings and Improvements	2,172
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,841
Accumulated Depreciation	72
PetSmart: | Baton Rouge, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	2,509
Land	651
Buildings and Improvements	2,968
Total Adjustment to Basis	113
Gross Amount at Which Carried At December 31, 2014	3,732
Accumulated Depreciation	200
PetSmart: | Commerce Township, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	539
Buildings and Improvements	1,960
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,499
Accumulated Depreciation	119
PetSmart: | East Peoria, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	997
Buildings and Improvements	3,345
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,342
Accumulated Depreciation	11
PetSmart: | Eden Prairie, MN
Real Estate and Accumulated Depreciation [Line Items]
Land	1,279
Buildings and Improvements	2,030
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,309
Accumulated Depreciation	71
PetSmart: | Edmond, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	816
Buildings and Improvements	3,266
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,082
Accumulated Depreciation	170
PetSmart: | North Fayette Township, PA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,615
Buildings and Improvements	1,503
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,118
Accumulated Depreciation	71
PetSmart: | Overland Park, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	2,025
Buildings and Improvements	2,181
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,206
Accumulated Depreciation	72
PetSmart: | Taylor, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	331
Buildings and Improvements	2,438
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,769
Accumulated Depreciation	127
PetSmart: | Tucson, AZ
Real Estate and Accumulated Depreciation [Line Items]
Land	1,114
Buildings and Improvements	2,771
Total Adjustment to Basis	98
Gross Amount at Which Carried At December 31, 2014	3,983
Accumulated Depreciation	99
PetSmart: | Wilkesboro, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	447
Buildings and Improvements	1,710
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,157
Accumulated Depreciation	125
Petsmart/Old Navy: | Reynoldsburg, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	1,295
Buildings and Improvements	4,077
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,372
Accumulated Depreciation	249
Pick’N Save: | Pewaukee, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	1,323
Buildings and Improvements	6,761
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,084
Accumulated Depreciation	77
Pick’N Save: | Sheboygan, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	2,003
Buildings and Improvements	10,695
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,698
Accumulated Depreciation	647
Pick’N Save: | South Milwaukee, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	1,126
Buildings and Improvements	5,706
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,832
Accumulated Depreciation	167
Plaza San Mateo: | Albuquerque, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,867
Buildings and Improvements	11,582
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,449
Accumulated Depreciation	196
Popeyes: | Independence, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	333
Buildings and Improvements	680
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,013
Accumulated Depreciation	10
Popular Springs Plaza: | Duncan, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,862
Buildings and Improvements	5,277
Total Adjustment to Basis	149
Gross Amount at Which Carried At December 31, 2014	7,288
Accumulated Depreciation	256
Price Chopper: | Gardner, MA
Real Estate and Accumulated Depreciation [Line Items]
Land	858
Buildings and Improvements	12,171
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	13,029
Accumulated Depreciation	91
Quick Chek: | Kingston, NY
Real Estate and Accumulated Depreciation [Line Items]
Land	831
Buildings and Improvements	5,783
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,614
Accumulated Depreciation	240
Quick Chek: | Lake Katrine, NY
Real Estate and Accumulated Depreciation [Line Items]
Land	1,507
Buildings and Improvements	4,569
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,076
Accumulated Depreciation	186
Quick Chek: | Middletown (Main), NY
Real Estate and Accumulated Depreciation [Line Items]
Land	1,335
Buildings and Improvements	5,732
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,067
Accumulated Depreciation	238
Quick Chek: | Middletown, NY 1
Real Estate and Accumulated Depreciation [Line Items]
Land	1,297
Buildings and Improvements	5,963
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,260
Accumulated Depreciation	247
Quick Chek: | Middletown, NY 2
Real Estate and Accumulated Depreciation [Line Items]
Land	1,437
Buildings and Improvements	4,656
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,093
Accumulated Depreciation	195
Quick Chek: | Sagerties, NY
Real Estate and Accumulated Depreciation [Line Items]
Land	1,242
Buildings and Improvements	5,372
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,614
Accumulated Depreciation	224
Raising Canes: | Beaumont, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	839
Buildings and Improvements	1,288
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,127
Accumulated Depreciation	$ 16

XML

Acquired Below Market Lease Intangibles (Details) (Acquired below market leases, USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Acquired below market leases
Finite-Lived Intangible Liabilities, Net [Abstract]
Acquired below-market leases, net of accumulated amortization	$ 55,535,000	$ 37,485,000
Amortization of intangible liabilities	6,600,000	2,100,000
Accumulated amortization	8,807,000	2,237,000
Useful life	9 years 2 months 12 days	11 years 7 months 6 days
Finite-Lived Intangible Liabilities, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2015	8,570,000
2016	8,122,000
2017	7,908,000
2018	7,588,000
2019	$ 6,999,000

XML

Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

GAAP defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

Level 3 – Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities:

Cash and cash equivalents and restricted cash – The Company considers the carrying values of these financial assets to approximate fair value because of the short period of time between their origination and their expected realization. These financial assets are considered Level 1.

Notes payable and credit facility – The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. These financial instruments are considered Level 2. As of December 31, 2014, the estimated fair value of the Company’s debt was $1.5 billion which approximated the carrying valueof $1.5 billion. As of December 31, 2013, the estimated fair value of the Company’s debt was $682.1 million compared to the carrying value of $696.9 million.

Derivative instruments – The Company’s derivative instruments represent interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. The Company includes the impact of credit valuation adjustments on derivative instruments measured at fair value.

Contingent consideration arrangements – The contingent consideration arrangements are carried at fair value and are valued using Level 3 inputs. The fair value of the Contingent Payments is determined based on the estimated timing and probability of successfully leasing vacant space subsequent to the Company’s acquisition of certain properties. The total estimated fair value of contingent consideration arrangements was $3.4 million and $784,000 as of December 31, 2014 and 2013, respectively, and is included in the accompanying consolidated balance sheets in deferred rental income and other liabilities. During the year endedDecember 31, 2014, the Company recorded additional obligations with an aggregate estimated fair value of $5.3 million upon purchase of certain properties. In addition, during the year endedDecember 31, 2014, the fair value of the outstanding contingent consideration arrangements had a net decrease of $70,000, which resulted in a reduction to acquisition-related expenses in the accompanying consolidated statements of operations. The Company also paid an aggregate of $2.6 million to multiple sellers as certain contingent consideration arrangements of the Contingent Payments were satisfied.

Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, on disposition of the financial assets and liabilities. As of December 31, 2014 and 2013, there have been no transfers of financial assets or liabilities between fair value hierarchy levels.

In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2014 and 2013 (in thousands):

	Balance as of December 31, 2014			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(4,057	)	$	—	$	(4,057	)	$	—
Contingent consideration	(3,405		)	—		—			(3,405		)
Total liabilities	$	(7,462	)	$	—	$	(4,057	)	$	(3,405	)
	Balance as of December 31, 2013			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(2,252	)	$	—	$	(2,252	)	$	—
Contingent consideration	(784		)	—		—			(784		)
Total liabilities	$	(3,036	)	$	—	$	(2,252	)	$	(784	)

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 6 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
Raising Canes: | Phoenix, AZ
Real Estate and Accumulated Depreciation [Line Items]
Land	761
Buildings and Improvements	1,972
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,733
Accumulated Depreciation	39
Raising Canes: | Wichita Falls, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	426
Buildings and Improvements	1,947
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,373
Accumulated Depreciation	35
Regent Towne Center: | Fort Mill, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,455
Buildings and Improvements	5,063
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,518
Accumulated Depreciation	242
Rite Aid: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	854
Buildings and Improvements	2,281
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,135
Accumulated Depreciation	64
Rite Aid: | Jenison, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	438
Buildings and Improvements	1,491
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,929
Accumulated Depreciation	23
Rocky River Promenade: | Mooresville, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,446
Buildings and Improvements	3,159
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,605
Accumulated Depreciation	33
Ross: | Fort Worth, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,273
Buildings and Improvements	3,157
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,430
Accumulated Depreciation	198
Rushmore Crossing: | Rapid City, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	24,825
Land	7,066
Buildings and Improvements	33,019
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	40,085
Accumulated Depreciation	1,142
Rushmore Crossing: | Rapid City, SD 2
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	883
Buildings and Improvements	4,128
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,011
Accumulated Depreciation	151
Shippensburg Market Place: | Shippensburg, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,917
Buildings and Improvements	9,263
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,180
Accumulated Depreciation	76
Shopko: | Brokem Bow, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	244
Buildings and Improvements	1,733
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,977
Accumulated Depreciation	28
Shopko: | Valentine, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	395
Buildings and Improvements	3,549
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,944
Accumulated Depreciation	57
Shoppes at Lake Andrew: | Melbourne, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,924
Buildings and Improvements	16,840
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	20,764
Accumulated Depreciation	568
Shoppes at Stroud: | Stroud Township, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,754
Buildings and Improvements	22,614
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	26,368
Accumulated Depreciation	140
Southwest Plaza: | Springfield, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	2,992
Buildings and Improvements	48,935
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	51,927
Accumulated Depreciation	487
Spinx: | Simpsonville, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	591
Buildings and Improvements	969
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,560
Accumulated Depreciation	48
Sprouts: | Bixby, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	1,320
Buildings and Improvements	7,117
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,437
Accumulated Depreciation	267
Stoneridge Village: | Jefferson City, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,830
Buildings and Improvements	9,351
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,181
Accumulated Depreciation	159
Stripes: | Brownsville, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	210
Buildings and Improvements	2,386
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,596
Accumulated Depreciation	166
Stripes: | Brownwood, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	484
Buildings and Improvements	3,086
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,570
Accumulated Depreciation	207
Stripes: | Mcallen, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	604
Buildings and Improvements	1,909
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,513
Accumulated Depreciation	154
Stripes: | Midland, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	620
Buildings and Improvements	5,551
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,171
Accumulated Depreciation	344
Stripes: | Mission, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	215
Buildings and Improvements	2,170
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,385
Accumulated Depreciation	151
Stripes: | Odessa, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	569
Buildings and Improvements	4,940
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,509
Accumulated Depreciation	305
Summerfield Crossing: | Riverview, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	6,130
Buildings and Improvements	6,753
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,883
Accumulated Depreciation	276
Sunbelt Rentals: | Canton, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	147
Buildings and Improvements	1,679
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,826
Accumulated Depreciation	69
Sunbelt Rentals: | Houston, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	535
Buildings and Improvements	1,664
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,199
Accumulated Depreciation	33
Sunoco: | Cocoa, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	625
Buildings and Improvements	1,062
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,687
Accumulated Depreciation	46
Sunoco: | Mangonia Park, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	689
Buildings and Improvements	600
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,289
Accumulated Depreciation	26
Sunoco: | Merritt Island, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	610
Buildings and Improvements	1,123
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,733
Accumulated Depreciation	48
Sunoco: | Palm Beach Gardens, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,050
Buildings and Improvements	2,667
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,717
Accumulated Depreciation	114
Sunoco: | Palm City, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	667
Buildings and Improvements	1,698
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,365
Accumulated Depreciation	73
Sunoco: | Palm Springs, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	580
Buildings and Improvements	1,907
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,487
Accumulated Depreciation	82
Sunoco: | Sebastian, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	490
Buildings and Improvements	2,128
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,618
Accumulated Depreciation	91
Sunoco: | Titusville, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	626
Buildings and Improvements	2,534
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,160
Accumulated Depreciation	109
Sunoco: | West Palm Beach, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	637
Buildings and Improvements	443
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,080
Accumulated Depreciation	19
Sunoco Center: | Titusville (Sisson), FL
Real Estate and Accumulated Depreciation [Line Items]
Land	799
Buildings and Improvements	587
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,386
Accumulated Depreciation	26
Sutters Creek: | Rocky Mount, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,458
Buildings and Improvements	2,616
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,074
Accumulated Depreciation	83
Sweet Tomatoes: | Overland Park, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	806
Buildings and Improvements	3,600
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,406
Accumulated Depreciation	71
Sweet Tomatoes: | St. Louis, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	1,254
Buildings and Improvements	3,354
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,608
Accumulated Depreciation	66
Target Center: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,234
Buildings and Improvements	7,297
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,531
Accumulated Depreciation	158
Terrell Mill Village: | Marieta, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	3,079
Buildings and Improvements	11,185
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,264
Accumulated Depreciation	315
TGI Fridays: | Chesapeake, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,217
Buildings and Improvements	1,388
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,605
Accumulated Depreciation	20
TGI Fridays: | Wilmington, DE
Real Estate and Accumulated Depreciation [Line Items]
Land	1,685
Buildings and Improvements	969
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,654
Accumulated Depreciation	14
The Market at Clifty Crossing: | Columbus, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,669
Buildings and Improvements	16,308
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	18,977
Accumulated Depreciation	179
The Market at Polaris: | Columbus, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	11,828
Buildings and Improvements	41,702
Total Adjustment to Basis	93
Gross Amount at Which Carried At December 31, 2014	53,623
Accumulated Depreciation	1,254
The Marquis: | Williamsburg, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,556
Land	2,615
Buildings and Improvements	11,406
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,021
Accumulated Depreciation	721
The Plant: | San Jose, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	123,000
Land	67,596
Buildings and Improvements	108,203
Total Adjustment to Basis	73
Gross Amount at Which Carried At December 31, 2014	175,872
Accumulated Depreciation	5,685
Tilted Kilt: | Killeen, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,378
Buildings and Improvements	1,508
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,886
Accumulated Depreciation	18
Tire Kingdom: | Tarpon Springs, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	427
Buildings and Improvements	1,458
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,885
Accumulated Depreciation	80
TJ Maxx/Dollar Tree: | Oxford, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	641
Buildings and Improvements	2,673
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,314
Accumulated Depreciation	149
Tractor Supply: | Ashland, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	500
Buildings and Improvements	2,696
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,196
Accumulated Depreciation	80
Tractor Supply: | Augusta, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	407
Buildings and Improvements	2,315
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,722
Accumulated Depreciation	59
Tractor Supply: | Cambridge, MN
Real Estate and Accumulated Depreciation [Line Items]
Land	807
Buildings and Improvements	1,272
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,079
Accumulated Depreciation	103
Tractor Supply: | Canon City, CO
Real Estate and Accumulated Depreciation [Line Items]
Land	597
Buildings and Improvements	2,527
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,124
Accumulated Depreciation	134
Tractor Supply: | Fortuna, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	568
Buildings and Improvements	3,819
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,387
Accumulated Depreciation	56
Tractor Supply: | Lumberton, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	611
Buildings and Improvements	2,007
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,618
Accumulated Depreciation	93
Tractor Supply: | Marion, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	448
Buildings and Improvements	1,916
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,364
Accumulated Depreciation	85
Tractor Supply: | Monticello, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,536
Buildings and Improvements	1,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,635
Accumulated Depreciation	28
Tractor Supply: | Newnan, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,182
Buildings and Improvements	1,950
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,132
Accumulated Depreciation	113
Tractor Supply: | Petersburg, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	514
Buildings and Improvements	2,439
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,953
Accumulated Depreciation	78
Tractor Supply: | South Hill, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	630
Buildings and Improvements	2,179
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,809
Accumulated Depreciation	91
Tractor Supply: | Spencer, WV
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,659
Land	455
Buildings and Improvements	2,188
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,643
Accumulated Depreciation	133
Tractor Supply: | Stuttgart, AR
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,543
Land	47
Buildings and Improvements	2,519
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,566
Accumulated Depreciation	114
Tractor Supply: | Weaverville, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	867
Buildings and Improvements	3,138
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,005
Accumulated Depreciation	110
Tractor Supply: | Woodward, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	446
Buildings and Improvements	1,973
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,419
Accumulated Depreciation	64
Trader Joe's: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	2,308
Buildings and Improvements	2,597
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,905
Accumulated Depreciation	137
Trader Joe's: | Asheville, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	2,770
Buildings and Improvements	3,766
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,536
Accumulated Depreciation	125
Trader Joe's: | Wilmington, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	2,016
Buildings and Improvements	2,519
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,535
Accumulated Depreciation	129
Turfway Crossing: | Florence, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,261
Buildings and Improvements	10,323
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,584
Accumulated Depreciation	206
Ulta Salon: | Albany, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	441
Buildings and Improvements	1,757
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,198
Accumulated Depreciation	30
United Oil: | Alhambra, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,026
Buildings and Improvements	751
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,777
Accumulated Depreciation	6
United Oil: | Bellflower (Alondra), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,312
Buildings and Improvements	576
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,888
Accumulated Depreciation	4
United Oil: | Bellflower (Lakewood), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,246
Buildings and Improvements	788
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,034
Accumulated Depreciation	6
United Oil: | Brea, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,393
Buildings and Improvements	658
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,051
Accumulated Depreciation	9
United Oil: | Burbank (Glenoaks), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,474
Buildings and Improvements	594
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,068
Accumulated Depreciation	4
United Oil: | Burbank (Magnolia), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,750
Buildings and Improvements	574
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,324
Accumulated Depreciation	4
United Oil: | Chino, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,449
Buildings and Improvements	730
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,179
Accumulated Depreciation	5
United Oil: | Compton, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	992
Buildings and Improvements	460
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,452
Accumulated Depreciation	3
United Oil: | El Cajon, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,533
Buildings and Improvements	568
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,101
Accumulated Depreciation	4
United Oil: | El Cajon (Second), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,225
Buildings and Improvements	368
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,593
Accumulated Depreciation	3
United Oil: | El Monte, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	766
Buildings and Improvements	510
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,276
Accumulated Depreciation	0
United Oil: | Escondido, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	678
Buildings and Improvements	470
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,148
Accumulated Depreciation	3
United Oil: | Escondido (Mission), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,514
Buildings and Improvements	1,062
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,576
Accumulated Depreciation	16
United Oil: | Fountain Valley, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,809
Buildings and Improvements	806
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,615
Accumulated Depreciation	6
United Oil: | Glendale, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	4,871
Buildings and Improvements	795
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,666
Accumulated Depreciation	6
United Oil: | Inglewood, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,809
Buildings and Improvements	878
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,687
Accumulated Depreciation	6
United Oil: | La Habra, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,971
Buildings and Improvements	571
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,542
Accumulated Depreciation	4
United Oil: | Lawndale, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,462
Buildings and Improvements	862
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,324
Accumulated Depreciation	6
United Oil: | Long Beach (Anaheim), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	974
Buildings and Improvements	772
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,746
Accumulated Depreciation	6
United Oil: | Long Beach (Atlantic), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,778
Buildings and Improvements	883
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,661
Accumulated Depreciation	$ 6

XML

Real Estate Acquisitions (Details) (USD $)	3 Months Ended								12 Months Ended			0 Months Ended	9 Months Ended
	Dec. 31, 2014 sqft	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014 land_parcel sqft	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014	Sep. 30, 2014 property
Pro forma basis (unaudited)
Acquisition-related expenses	$ 12,008,000	$ 21,009,000	$ 10,113,000	$ 8,633,000	$ 17,740,000	$ 10,356,000	$ 14,551,000	$ 5,639,000	$ 51,763,000	$ 48,286,000	$ 14,371,000
Net Rentable Area	20,200,000								20,200,000			20,200,000
Number of Land Parcels Disposed									1
Proceeds from sale of real estate									1,758,000	0	0
Property Escrow Deposits Due to Affiliates									70,254,000	0	0
2014 acquisitions
Business Acquisition [Line Items]
Number of businesses acquired (in properties)									422
Aggregate purchase price									1,791,600,000
Business Acquisition, Purchase Price Allocation [Abstract]
Land	437,206,000								437,206,000			437,206,000
Building and improvements	1,152,148,000								1,152,148,000			1,152,148,000
Fair value adjustment of assumed notes payable	(765,000)								(765,000)			(765,000)
Total purchase price	1,791,611,000								1,791,611,000			1,791,611,000
Pro forma basis (unaudited)
Revenue									332,860,000	245,969,000
Net income (loss)									131,001,000	(53,805,000)
Revenue of acquiree since acquisition date									61,200,000
Loss of acquiree since acquisition date									(25,700,000)
Acquisition-related expenses									51,800,000
2014 acquisitions | Acquired in-place leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired in-place and above market leases	154,972,000								154,972,000			154,972,000
2014 acquisitions | Acquired above market leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired in-place and above market leases	23,430,000								23,430,000			23,430,000
2014 acquisitions | Acquired below market leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired below market leases	(24,620,000)								(24,620,000)			(24,620,000)
2014 Development Project
Business Acquisition [Line Items]
Aggregate purchase price									23,900,000
Pro forma basis (unaudited)
Number of Land Parcels	1								1			1
Net Rentable Area	1,600,000								1,600,000			1,600,000
Total investment in development project	36,700,000								36,700,000			36,700,000
Commitment to invest in development project												66,700,000
Property Acquisition
Pro forma basis (unaudited)
Business Combination, Initial Agreement, Number of Businesses Acquired													2
Property Escrow Deposits Due to Affiliates													70,300,000
2013 acquisitions
Business Acquisition [Line Items]
Number of businesses acquired (in properties)										248
Aggregate purchase price										1,664,800,000
Business Acquisition, Purchase Price Allocation [Abstract]
Land					390,781,000					390,781,000
Building and improvements					1,103,390,000					1,103,390,000
Total purchase price					1,664,810,000					1,664,810,000
Pro forma basis (unaudited)
Revenue										181,859,000	147,515,000
Net income (loss)										44,490,000	(30,842,000)
Revenue of acquiree since acquisition date										60,400,000
Loss of acquiree since acquisition date										25,700,000
Acquisition-related expenses										48,300,000
2013 acquisitions | Acquired in-place leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired in-place and above market leases					175,520,000					175,520,000
2013 acquisitions | Acquired above market leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired in-place and above market leases					26,921,000					26,921,000
2013 acquisitions | Acquired below market leases
Business Acquisition, Purchase Price Allocation [Abstract]
Acquired below market leases					(31,802,000)					(31,802,000)
Land
Pro forma basis (unaudited)
Land Sales	1,900,000								1,900,000			1,900,000
Proceeds from sale of real estate									1,800,000
Loss on sale of properties, before tax									$ 157,000

XML

Real Estate Acquistions (Tables)

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Schedule of purchase price allocation

The following table summarizes the purchase price allocation for acquisitions purchased during the year endedDecember 31, 2014 (in thousands):

		December 31, 2014
Land	$	437,206
Building and improvements		1,152,148
Acquired in-place leases		154,972
Acquired above market leases		23,430
Acquired below market leases		24,620
Fair value adjustment of assumed notes payable		(765	)
Total purchase price	$	1,791,611

The following table summarizes the purchase price allocation (in thousands):

		December 31, 2013
Land	$	390,781
Building and improvements		1,103,390
Acquired in-place leases		175,520
Acquired above market leases		26,921
Acquired below market leases		(31,802	)
Total purchase price	$	1,664,810

Business acquisition, pro forma information

The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the years ended December 31, 2014 and 2013 (in thousands):

	Year Ended December 31,
	2014		2013
Pro forma basis (unaudited):
Revenue	$	332,860	$	245,969
Net income (loss)	$	131,001	$	(53,805	)

The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2013		2012
Pro forma basis (unaudited):
Revenue	$	181,859	$	147,515
Net income	$	44,490	$	(30,842	)

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Investment in and valuation of real estate

Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows:

Buildings	40 years
Tenant improvements	Lesser of useful life or lease term
Intangible lease assets	Lease term

XML

Schedule III - Real Estate Assets and Accumulated Depreciated (Details) (USD $)	12 Months Ended
	Dec. 31, 2014 Property office_industrial_property medical_office_property	Dec. 31, 2013	Dec. 31, 2012
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance, beginning of period	$ 1,960,708,000	$ 464,539,000
Additions
Acquisitions	1,613,201,000	1,494,171,000
Improvements	18,967,000	1,998,000
Total additions	1,632,168,000	1,496,169,000
Deductions
Cost of real estate sold	1,937,000	0
Adjustment to basis	0	0
Other (including provisions for impairment of real estate assets)	0	0
Total deductions	1,937,000	0
Balance, end of period	3,590,939,000	1,960,708,000	464,539,000
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance, beginning of period	78,186,000	23,377,000	1,743,000
Additions
Acquisitions - Depreciation Expense for Building, Acquisitions Costs & Tenant Improvements Acquired		54,656,000	21,624,000
Improvements - Depreciation Expense for Tenant Improvements and Building Equipment		153,000	10,000
Total additions		54,809,000	21,634,000
Deductions
Cost of real estate sold		0	0
Other (including provisions for impairment of real estate assets)		0	0
Total deductions		0	0
Balance, end of period	78,186,000	78,186,000	23,377,000
Number of single-tenant freestanding retail properties, owned	672
Number of multi-tenant retail properties, owned	77
Number of office/industrial properties owned	7
Number of medical offices owned	3
Property, plant and equipment, land and real estate assets, net tax basis	3,900,000,000
Notes payable and credit facility	1,466,507,000	696,946,000
Building
Deductions
Acquired real estate asset, useful life	40 years
Line of credit | Revolving credit facility | JPMorgan Chase, Revolving credit facility
Deductions
Notes payable and credit facility	$ 900,000,000	$ 300,000,000

XML

Intangible Lease Assets (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets, Net [Abstract]
Intangible lease assets, less accumulated amortization of $48,085 and $14,498, respectively	$ 391,917	$ 246,601
Accumulated amortization of intangible lease assets	48,085	14,498
In-place leases
Finite-Lived Intangible Assets, Net [Abstract]
Intangible lease assets, less accumulated amortization of $48,085 and $14,498, respectively	344,664	218,407
Accumulated amortization of intangible lease assets	41,739	12,523
Finitel-lived intangible asset, useful life	12 years 8 months 12 days	13 years 4 months 24 days
Amortization of intangible assets	29,600	11,700	871
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2015	37,291
2016	34,768
2017	33,022
2018	30,945
2019	28,069
Above market leases
Finite-Lived Intangible Assets, Net [Abstract]
Intangible lease assets, less accumulated amortization of $48,085 and $14,498, respectively	47,253	28,194
Accumulated amortization of intangible lease assets	6,346	1,975
Finitel-lived intangible asset, useful life	10 years 6 months	11 years 4 months 24 days
Amortization of intangible assets	4,400	1,900	36
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2015	5,835
2016	5,568
2017	5,305
2018	4,471
2019	$ 3,556

XML

Intangible Lease Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite-lived intangible assets

Intangible lease assets consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
In-place leases, net of accumulated amortization of $41,739 and
	$12,523, respectively (with a weighted average life remaining of 12.4 years
	and 13.4 years, respectively)	$	344,664	$	218,407
Acquired above market leases, net of accumulated amortization of $6,346 and
	$1,975, respectively (with a weighted average life remaining of 10.5 years and
	11.4 years, respectively)	47,253		28,194
		$	391,917	$	246,601

Schedule of finite-lived intangible assets, future amortization expense

Estimated amortization expense related to the intangible lease assets as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

	Amortization
Year Ending December 31,	In-Place Leases		Above Market Leases
2015	$	37,291	$	5,835
2016	$	34,768	$	5,568
2017	$	33,022	$	5,305
2018	$	30,945	$	4,471
2019	$	28,069	$	3,556

XML

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments

The following table summarizes the terms of the Company’s executed swap agreements designated as hedging instruments as of December 31, 2014 and 2013 (in thousands):

Outstanding Notional

Fair Value of Liabilities

Balance Sheet

Amount as of

Interest

Effective

Maturity

December 31,

December 31,

Location

December 31, 2014

Rates (1)

Dates

Dates

2014

2013

Interest Rate Swaps

Deferred rental income and other liabilities

$

338,737

3.36% to 4.75%

6/24/2013 to 8/23/2013

6/24/2018 to 8/24/2020

$

(4,057

)

$

(2,252

)

(1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread.

Schedule of derivative instruments, gain (loss) in statement of financial performance

The following table summarizes the unrealized losses on the Company’s derivative instruments and hedging activities during the years endedDecember 31, 2014 and 2013 (in thousands). The Company did not own any derivative instruments during the year endedDecember 31, 2012.

	Amount of Loss Recognized in Other Comprehensive Loss
	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2014			2013
Interest Rate Swaps (1)	$	(1,805	)	$	(2,252	)

(1)	There were no portions of the change in the fair value of the interest rate swap agreements that were considered
	ineffective during the year ended December 31, 2014. No previously effective portions of the losses
	that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were
	reclassified into earnings during the year ended December 31, 2014.

XML

Organization and Business

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS

Cole Credit Property Trust IV, Inc. (the “Company”) is a Maryland corporation that was formed on July 27, 2010, which has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. The Company is the sole general partner of and owns, directly or indirectly, 100% of the partnership interests in Cole Operating Partnership IV, LP, a Delaware limited partnership. The Company is externally managed by Cole REIT Advisors IV, LLC (“CR IV Advisors”), an affiliate of the Company’s sponsor, Cole Capital^®, which is a trade name used to refer to a group of affiliated entities directly or indirectly controlled by American Realty Capital Properties, Inc. (“ARCP”), a self-managed publicly traded REIT, organized as a Maryland corporation and listed on The NASDAQ Global Select Market. On February 7, 2014, ARCP acquired Cole Real Estate Investments, Inc. (“Cole”), which, prior to its acquisition, indirectly owned and/or controlled the Company’s external advisor, CR IV Advisors, the Company’s dealer manager for the Offering (as defined below), Cole Capital Corporation (“CCC”), the Company’s property manager, CREI Advisors, LLC (“CREI Advisors”), and the Company’s sponsor, Cole Capital. As a result of ARCP’s acquisition of Cole, ARCP indirectly owns and/or controls CR IV Advisors, CCC, CREI Advisors and Cole Capital.

On January 26, 2012, pursuant to a Registration Statement on Form S-11 (Registration No. 333-169533) (the “Registration Statement”) filed under the Securities Act of 1933, as amended (the “Securities Act”), the Company commenced its initial public offering on a “best efforts” basis of up to a maximum of $2.975 billion in shares of common stock (the “Offering”). On November 25, 2013, the Company reallocated $400.0 million in shares from its distribution reinvestment plan (the “DRIP”) to the primary portion of the Offering, and on February 18, 2014, the Company reallocated an additional $23.0 million in shares from the DRIP to the primary portion of the Offering. As a result of these reallocations, the Offering offered up to a maximum of approximately 292.3 million shares of common stock at a price of $10.00 per share in the primary portion of the Offering and up to approximately 5.5 million additional shares pursuant to the DRIP under which the Company’s stockholders could have elected to have distributions reinvested in additional shares of common stock at a price of $9.50 per share.

As of February 25, 2014, the Company no longer accepted subscription agreements in connection with the Offering because it had received subscription agreements that allowed it to reach the maximum primary offering. The Company ceased issuing shares in the Offering on April 4, 2014. At the completion of the Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Offering and approximately 5.1 million shares of common stock sold pursuant to the DRIP. The remaining approximately 404,000 unsold shares from the Offering were deregistered.

In addition, the Company registered 26.0 million shares of common stock under the DRIP pursuant to a Registration Statement filed on Form S-3 (Registration No. 333-192958) (the “DRIP Offering” and collectively with the Offering, the “Offerings”), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing. The Company has issued, and expects that it will continue to issue, shares of common stock in the DRIP Offering.

Effective as of December 12, 2014, Nicholas S. Schorsch resigned as a director, the chairman of the Board of Directors of the Company (the "Board"), the chief executive officer and the president of the Company. In addition, effective as of December 12, 2014, Mr. Schorsch resigned as the chief executive officer of CR IV Advisors, and as the executive chairman of ARCP. Effective December 17, 2014, Thomas W. Roberts was appointed as a director, the chief executive officer and the president of the Company by the Board. Effective September 5, 2014, Simon J. Misselbrook was appointed chief financial officer and treasurer of the Company by the Board, replacing D. Kirk McAllaster, Jr. On March 24, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board.

An affiliate of ARCP entered into a definitive agreement (the “RCAP Agreement”), dated as of September 30, 2014, with RCS Capital Corporation (“RCAP”) pursuant to which RCAP would have acquired Cole Capital. The acquisition would have included CR IV Advisors and CCC. Additionally, the parties entered into a strategic arrangement by which an indirect wholly-owned subsidiary of ARCP would have acted as sub-advisor to the non-traded REITs sponsored by Cole Capital (the “Managed Funds”), including the Company, and would have acquired and property managed real estate assets for the Managed Funds.

On November 3, 2014, RCAP publicly announced that it had notified ARCP of its purported termination of the RCAP Agreement, and that no subsidiary would act as the Company’s sub-advisor. On November 11, 2014, ARCP filed a complaint in the Court of Chancery of the State of Delaware against RCAP alleging that RCAP’s attempt to terminate the RCAP Agreement constituted a breach of the RCAP Agreement and seeking, among other things, specific performance of the RCAP Agreement or, in the alternative, money damages. On December 4, 2014, ARCP announced that it had entered into a settlement agreement with RCAP that resolved the dispute over RCAP’s attempt to terminate the RCAP Agreement. ARCP received $60.0 million in the settlement.

As of December 31, 2014, the Company had issued approximately 306.1 million shares of its common stock in the Offerings, including 8.8 million shares issued in the DRIP Offering, for gross offering proceeds of $3.0 billion before organization and offering costs, selling commissions and dealer manager fees of $306.0 million. As of December 31, 2014, the Company owned 759 properties, which include properties owned through a consolidated joint venture arrangement (the “Consolidated Joint Venture”), comprising 20.2 million rentable square feet of commercial space located in 45 states. As of December 31, 2014, the rentable space at these properties was 99% leased. In addition, through an unconsolidated joint venture arrangement, as of December 31, 2014, the Company had an interest in one property comprising 176,000 rentable square feet of commercial space (the “Unconsolidated Joint Venture”).

XML

Notes Payable And Credit Facility Notes Payable And Credit Facility (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of debt

As of December 31, 2014, the Company had $1.5 billion of debt outstanding, with a weighted average years to maturity of 5.0 years and weighted average interest rate of 3.1%. The following table summarizes the debt balances as of December 31, 2014 and 2013, and the debt activity for the year endedDecember 31, 2014 (in thousands):

			During the Year Ended December 31, 2014
	Balance as of December 31, 2013		Debt Issuances and Assumptions		Repayments			Other (1)	Balance as of December 31, 2014
Fixed rate debt	$	396,946	$	169,278	$	(388	)	671	$	566,507
Credit facility	300,000		600,000		—			—	900,000
Total	$	696,946	$	769,278	$	(388	)	671	$	1,466,507

(1) Represents fair value adjustment of an assumed mortgage note payable, net of amortization.

Schedule of maturities of long-term debt

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt as of December 31, 2014 for each of the five succeeding fiscal years and the period thereafter (in thousands):

Year Ending December 31,	Principal Repayments
2015	$	408
2016	425
2017	600,451
2018	324,211
2019	499
Thereafter	539,842
Total	$	1,465,836

XML

Fair Value Measurements (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, liabilities increase (decrease) in fair value	$ 5,342,000	$ 553,000	$ 708,000
Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	(4,057,000)	(2,252,000)
Contingent consideration	(3,405,000)	(784,000)
Total liabilities	(7,462,000)	(3,036,000)
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	0	0
Contingent consideration	0	0
Total liabilities	0	0
Significant Other Observable Inputs (Level 2) | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	(4,057,000)	(2,252,000)
Contingent consideration	0	0
Total liabilities	(4,057,000)	(2,252,000)
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value assets and liabilities, transfers amount	0	0
Significant Unobservable Inputs (Level 3) | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	0	0
Contingent consideration	(3,405,000)	(784,000)
Total liabilities	(3,405,000)	(784,000)
Estimate of fair value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit, fair value disclosure	1,500,000,000	682,100,000
Estimate of fair value | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, additional consideration expected to be received	5,300,000
Contingent consideration, liabilities increase (decrease) in fair value	(70,000)
Business Combination, Contingent Consideration Assets And Liabilities, Purchase, Sale, Issuances and Transfers	(2,600,000)
Contingent consideration	(3,400,000)	(784,000)
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Lines of credit, fair value disclosure	$ 1,500,000,000	$ 696,900,000

XML

Operating Leases Operating Leases (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Leases [Abstract]
Operating leases of lessor, weighted average remaining lease term	11 years 7 months 6 days
2015	$ 293,566
2016	287,849
2017	281,864
2018	271,222
2019	254,989
Thereafter	2,040,528
Total future minimum rental income	$ 3,430,018

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Investment in real estate assets:
Land	$ 972,983	$ 537,714
Buildings and improvements, less accumulated depreciation of $78,186 and $23,377, respectively	2,539,770	1,399,617
Intangible lease assets, less accumulated amortization of $48,085 and $14,498, respectively	391,917	246,601
Total investment in real estate assets, net	3,904,670	2,183,932
Investment in unconsolidated joint venture	19,170	19,124
Total investment in real estate and related assets, net	3,923,840	2,203,056
Cash and cash equivalents	55,287	300,574
Restricted cash	4,560	8,193
Rents and tenant receivables, less allowance for doubtful accounts of $67 and $50, respectively	34,929	14,440
Due from affiliates	470	0
Property escrow deposits, prepaid expenses and other assets	7,137	10,942
Deferred financing costs, less accumulated amortization of $6,781 and $3,580, respectively	12,924	14,444
Total assets	4,039,147	2,551,649
LIABILITIES AND STOCKHOLDERS’ EQUITY
Notes payable and credit facility	1,466,507	696,946
Accounts payable and accrued expenses	25,355	12,675
Escrowed investor proceeds	0	5,147
Due to affiliates	5,473	7,512
Acquired below market lease intangibles, less accumulated amortization of $8,807 and $2,237, respectively	55,535	37,485
Distributions payable	16,189	10,569
Deferred rental income and other liabilities	21,710	12,859
Total liabilities	1,590,769	783,193
Commitments and contingencies
Redeemable common stock and noncontrolling interest	121,972	26,484
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 490,000,000 shares authorized, 304,950,000 and 211,026,672 shares issued and outstanding, respectively	3,050	2,110
Capital in excess of par value	2,607,448	1,850,702
Accumulated distributions in excess of earnings	(280,035)	(108,588)
Accumulated other comprehensive loss	(4,057)	(2,252)
Total stockholders’ equity	2,326,406	1,741,972
Total liabilities and stockholders’ equity	$ 4,039,147	$ 2,551,649

XML

Derivative Instrument (Details) (Cash flow hedging, Interest Rate Swaps, USD $)	12 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Amount of Loss Recognized in Other Comprehensive Loss	$ (1,805,000)	[1]	$ (2,252,000)	[1]
Derivative liability, event of default, termination amount	4,600,000
Deferred rental income and other liabilities
Derivatives, Fair Value [Line Items]
Outstanding Notional Amount	338,737,000
Interest Rate	1.713%
Fair Value of Liabilities	$ (4,057,000)		$ (2,252,000)
Deferred rental income and other liabilities | Minimum
Derivatives, Fair Value [Line Items]
Interest Rate	3.36%	[2]
Effective Date	Jun. 24, 2013
Maturity Date	Jun. 24, 2018
Deferred rental income and other liabilities | Maximum
Derivatives, Fair Value [Line Items]
Interest Rate	4.75%	[2]
Effective Date	Aug. 23, 2013
Maturity Date	Aug. 24, 2020

[1] (1)There were no portions of the change in the fair value of the interest rate swap agreements that were considered ineffective during the year ended December 31, 2014. No previously effective portions of the losses that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were reclassified into earnings during the year ended December 31, 2014.

[2] (1)The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread.

XML

Consolidated Statements of Stockholder's Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Capital in Excess of Par Value	Accumulated Distributions in Excess of Earnings	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2011	$ 200	$ 0	$ 200	$ 0	$ 0
Balance, shares at Dec. 31, 2011		20,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		29,923,549
Issuance of common stock	298,438	299	298,139
Distributions to investors	(5,381)			(5,381)
Commissions on stock sales and related dealer manager fees	(26,051)		(26,051)
Other offering costs	(5,983)		(5,983)
Changes in redeemable common stock	(1,964)		(1,964)
Comprehensive loss	(13,744)			(13,744)
Balance at Dec. 31, 2012	245,515	299	264,341	(19,125)	0
Balance, shares at Dec. 31, 2012		29,943,549
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		181,205,760
Issuance of common stock	1,807,820	1,811	1,806,009
Distributions to investors	(56,583)			(56,583)
Commissions on stock sales and related dealer manager fees	(157,767)		(157,767)
Other offering costs	(36,179)		(36,179)
Redemptions of common stock, shares		(122,637)
Redemptions of common stock	(1,182)		(1,182)
Changes in redeemable common stock	(24,520)		(24,520)
Comprehensive loss	(35,132)			(32,880)	(2,252)
Balance at Dec. 31, 2013	1,741,972	2,110	1,850,702	(108,588)	(2,252)
Balance, shares at Dec. 31, 2013	211,026,672	211,026,672
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		95,036,480
Issuance of common stock	941,930	951	940,979
Distributions to investors	(182,637)			(182,637)
Commissions on stock sales and related dealer manager fees	(72,706)		(72,706)
Other offering costs	(7,277)		(7,277)
Redemptions of common stock, shares		(1,113,152)
Redemptions of common stock	(10,849)	(11)	(10,838)
Changes in redeemable common stock	(93,412)		(93,412)
Comprehensive loss	9,385			11,190	(1,805)
Balance at Dec. 31, 2014	$ 2,326,406	$ 3,050	$ 2,607,448	$ (280,035)	$ (4,057)
Balance, shares at Dec. 31, 2014	304,950,000	304,950,000

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Deprecation - 3 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
Dollar General: | New Philadelphia, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	129
Buildings and Improvements	1,100
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,229
Accumulated Depreciation	36
Dollar General: | New Washington, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	99
Buildings and Improvements	975
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,074
Accumulated Depreciation	36
Dollar General: | Nitro, WV
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	451
Buildings and Improvements	1,034
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,485
Accumulated Depreciation	14
Dollar General: | Nixa, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	235
Buildings and Improvements	806
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,041
Accumulated Depreciation	16
Dollar General: | Newark, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	792
Land	222
Buildings and Improvements	946
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,168
Accumulated Depreciation	49
Dollar General: | North Lewisburg, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	59
Buildings and Improvements	1,008
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,067
Accumulated Depreciation	33
Dollar General: | Onawa, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	176
Buildings and Improvements	842
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,018
Accumulated Depreciation	12
Dollar General: | Opelousas, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	92
Buildings and Improvements	947
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,039
Accumulated Depreciation	31
Dollar General: | Ortonville, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	113
Buildings and Improvements	907
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,020
Accumulated Depreciation	8
Dollar General: | Oxford, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	465
Buildings and Improvements	783
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,248
Accumulated Depreciation	26
Dollar General: | Palestine, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	155
Buildings and Improvements	893
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,048
Accumulated Depreciation	13
Dollar General: | Parchment, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	168
Buildings and Improvements	1,162
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,330
Accumulated Depreciation	16
Dollar General: | Park Hill, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	91
Buildings and Improvements	887
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	978
Accumulated Depreciation	47
Dollar General: | Parsons, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	166
Buildings and Improvements	1,136
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,302
Accumulated Depreciation	14
Dollar General: | Phenix City, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	331
Buildings and Improvements	718
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,049
Accumulated Depreciation	31
Dollar General: | Piedmont, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	1,980
Land	1,037
Buildings and Improvements	1,579
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,616
Accumulated Depreciation	104
Dollar General: | Pike Road, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	477
Buildings and Improvements	772
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,249
Accumulated Depreciation	29
Dollar General: | Plain City, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	187
Buildings and Improvements	1,097
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,284
Accumulated Depreciation	32
Dollar General: | Port Clinton, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	120
Buildings and Improvements	1,070
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,190
Accumulated Depreciation	31
Dollar General: | Princeton, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	155
Buildings and Improvements	1,159
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,314
Accumulated Depreciation	7
Dollar General: | Pueblo, CO
Real Estate and Accumulated Depreciation [Line Items]
Land	144
Buildings and Improvements	909
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,053
Accumulated Depreciation	46
Dollar General: | Ragley, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	196
Buildings and Improvements	877
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,073
Accumulated Depreciation	33
Dollar General: | Rainsville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	290
Buildings and Improvements	1,267
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,557
Accumulated Depreciation	13
Dollar General: | Ravenna, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	199
Buildings and Improvements	958
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,157
Accumulated Depreciation	23
Dollar General: | Rayne, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	702
Land	125
Buildings and Improvements	910
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,035
Accumulated Depreciation	50
Dollar General: | Roanoke, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	93
Buildings and Improvements	846
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	939
Accumulated Depreciation	14
Dollar General: | Romney, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	87
Buildings and Improvements	827
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	914
Accumulated Depreciation	10
Dollar General: | Romulus, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	274
Buildings and Improvements	1,171
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,445
Accumulated Depreciation	24
Dollar General: | Russell, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	54
Buildings and Improvements	899
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	953
Accumulated Depreciation	9
Dollar General: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	295
Buildings and Improvements	743
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,038
Accumulated Depreciation	10
Dollar General: | San Carlos, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	70
Buildings and Improvements	1,063
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,133
Accumulated Depreciation	15
Dollar General: | Seale, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	259
Buildings and Improvements	767
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,026
Accumulated Depreciation	25
Dollar General: | Seminole, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	175
Buildings and Improvements	829
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,004
Accumulated Depreciation	33
Dollar General: | Shelby, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	128
Buildings and Improvements	1,033
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,161
Accumulated Depreciation	25
Dollar General: | Slocomb, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	124
Buildings and Improvements	918
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,042
Accumulated Depreciation	22
Dollar General: | Snead, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	126
Buildings and Improvements	1,137
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,263
Accumulated Depreciation	9
Dollar General: | South Bay, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	258
Buildings and Improvements	1,262
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,520
Accumulated Depreciation	20
Dollar General: | Spring, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	277
Buildings and Improvements	1,132
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,409
Accumulated Depreciation	38
Dollar General: | Springfield, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	205
Buildings and Improvements	934
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,139
Accumulated Depreciation	7
Dollar General: | Springfield, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	171
Buildings and Improvements	810
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	981
Accumulated Depreciation	10
Dollar General: | Springfield, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	172
Buildings and Improvements	864
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,036
Accumulated Depreciation	15
Dollar General: | Springfield, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	125
Buildings and Improvements	1,000
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,125
Accumulated Depreciation	35
Dollar General: | St. Louis, MO (Grand)
Real Estate and Accumulated Depreciation [Line Items]
Land	229
Buildings and Improvements	1,102
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,331
Accumulated Depreciation	31
Dollar General: | St. Louis, MO (Lewis & Clark)
Real Estate and Accumulated Depreciation [Line Items]
Land	240
Buildings and Improvements	1,118
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,358
Accumulated Depreciation	29
Dollar General: | Superior, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	230
Buildings and Improvements	917
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,147
Accumulated Depreciation	28
Dollar General: | Temple, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	200
Buildings and Improvements	917
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,117
Accumulated Depreciation	40
Dollar General: | Theodore, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	248
Buildings and Improvements	763
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,011
Accumulated Depreciation	34
Dollar General: | Thibodaux, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	211
Buildings and Improvements	1,083
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,294
Accumulated Depreciation	37
Dollar General: | Toney, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	642
Land	86
Buildings and Improvements	792
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	878
Accumulated Depreciation	42
Dollar General: | Urbana, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	133
Buildings and Improvements	1,051
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,184
Accumulated Depreciation	18
Dollar General: | Volga, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	51
Buildings and Improvements	784
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	835
Accumulated Depreciation	6
Dollar General: | Waco, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	26
Buildings and Improvements	922
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	948
Accumulated Depreciation	15
Dollar General: | Wagener, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	477
Buildings and Improvements	1,169
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,646
Accumulated Depreciation	9
Dollar General: | Wakefield, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	78
Buildings and Improvements	929
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,007
Accumulated Depreciation	33
Dollar General: | Waterloo, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	330
Buildings and Improvements	908
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,238
Accumulated Depreciation	3
Dollar General: | Weslaco, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	141
Buildings and Improvements	848
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	989
Accumulated Depreciation	7
Dollar General: | Weston, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	117
Buildings and Improvements	1,012
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,129
Accumulated Depreciation	40
Dollar General: | Wetumpka, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	290
Buildings and Improvements	779
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,069
Accumulated Depreciation	13
Dollar General: | Whitehouse, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	134
Buildings and Improvements	1,144
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,278
Accumulated Depreciation	35
Dollar General: | Whitwell, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	870
Land	159
Buildings and Improvements	1,035
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,194
Accumulated Depreciation	66
Dollar General: | Wilmer, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	99
Buildings and Improvements	775
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	874
Accumulated Depreciation	29
Dollar General: | Winsted, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	152
Buildings and Improvements	841
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	993
Accumulated Depreciation	7
Dollar General: | Wisner, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	37
Buildings and Improvements	773
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	810
Accumulated Depreciation	13
Dollar General: | Woodville, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	786
Land	169
Buildings and Improvements	1,009
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,178
Accumulated Depreciation	54
Dollar General: | Yatesville, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	666
Land	120
Buildings and Improvements	797
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	917
Accumulated Depreciation	43
Dollar General: | Berry, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	104
Buildings and Improvements	1,196
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,300
Accumulated Depreciation	9
Dollar Tree/Petco: | Humble, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	720
Buildings and Improvements	2,543
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,263
Accumulated Depreciation	133
Earth Fare: | Huntersville, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,183
Land	1,439
Buildings and Improvements	2,973
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,412
Accumulated Depreciation	156
East Manchester Village Center: | Manchester, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,517
Buildings and Improvements	12,672
Total Adjustment to Basis	202
Gross Amount at Which Carried At December 31, 2014	15,391
Accumulated Depreciation	365
East West Commons: | Austell, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	10,094
Buildings and Improvements	16,034
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	26,128
Accumulated Depreciation	150
Emerald Place: | Greenwood, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	2,042
Buildings and Improvements	9,942
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,984
Accumulated Depreciation	411
Evergreen Marketplace: | Evergreen Park, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	2,823
Buildings and Improvements	6,239
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,062
Accumulated Depreciation	263
Fairview Village: | Cary, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	2,514
Buildings and Improvements	3,557
Total Adjustment to Basis	52
Gross Amount at Which Carried At December 31, 2014	6,123
Accumulated Depreciation	206
Family Center: | Riverdale, UT
Real Estate and Accumulated Depreciation [Line Items]
Land	21,716
Buildings and Improvements	29,454
Total Adjustment to Basis	(1,028)
Gross Amount at Which Carried At December 31, 2014	50,142
Accumulated Depreciation	786
Family Dollar: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	54
Buildings and Improvements	900
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	954
Accumulated Depreciation	8
Family Dollar: | Aberdeen, ID
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	101
Buildings and Improvements	1,054
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,155
Accumulated Depreciation	6
Family Dollar: | Adelanto, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	463
Buildings and Improvements	1,711
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,174
Accumulated Depreciation	6
Family Dollar: | Albany, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	347
Buildings and Improvements	925
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,272
Accumulated Depreciation	3
Family Dollar: | Apple Springs, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	91
Buildings and Improvements	804
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	895
Accumulated Depreciation	3
Family Dollar: | Bagley, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	95
Buildings and Improvements	1,114
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,209
Accumulated Depreciation	17
Family Dollar: | Benavides, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	27
Buildings and Improvements	1,065
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,092
Accumulated Depreciation	27
Family Dollar: | Berry, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	122
Buildings and Improvements	880
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,002
Accumulated Depreciation	3
Family Dollar: | Bessemer, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	201
Buildings and Improvements	1,043
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,244
Accumulated Depreciation	29
Family Dollar: | Broadway, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	213
Buildings and Improvements	1,153
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,366
Accumulated Depreciation	4
Family Dollar: | Birmingham, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	500
Buildings and Improvements	831
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,331
Accumulated Depreciation	24
Family Dollar: | Brooksville, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	206
Buildings and Improvements	791
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	997
Accumulated Depreciation	22
Family Dollar: | Burkeville, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	357
Buildings and Improvements	966
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,323
Accumulated Depreciation	8
Family Dollar: | Cascade, ID
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	267
Buildings and Improvements	1,147
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,414
Accumulated Depreciation	25
Family Dollar: | Cass Lake, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	157
Buildings and Improvements	1,107
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,264
Accumulated Depreciation	17
Family Dollar: | Cathedral City, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	658
Buildings and Improvements	1,908
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,566
Accumulated Depreciation	15
Family Dollar: | Charlotte, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	118
Buildings and Improvements	970
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,088
Accumulated Depreciation	24
Family Dollar: | Cheyenne, WY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	148
Buildings and Improvements	986
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,134
Accumulated Depreciation	19
Family Dollar: | Coachella, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	450
Buildings and Improvements	1,634
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,084
Accumulated Depreciation	37
Family Dollar: | Cocoa, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	370
Buildings and Improvements	1,092
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,462
Accumulated Depreciation	8
Family Dollar: | Colmesnell, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	172
Buildings and Improvements	858
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,030
Accumulated Depreciation	19
Family Dollar: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	294
Buildings and Improvements	824
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,118
Accumulated Depreciation	5
Family Dollar: | Columbia, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	332
Buildings and Improvements	1,044
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,376
Accumulated Depreciation	6
Family Dollar: | Comanche, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	176
Buildings and Improvements	1,145
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,321
Accumulated Depreciation	11
Family Dollar: | Cordes Lakes, AZ
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	380
Buildings and Improvements	1,421
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,801
Accumulated Depreciation	11
Family Dollar: | Davenport, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	298
Buildings and Improvements	964
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,262
Accumulated Depreciation	1
Family Dollar: | Davenport, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	167
Buildings and Improvements	918
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,085
Accumulated Depreciation	3
Family Dollar: | Dawson, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	41
Buildings and Improvements	799
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	840
Accumulated Depreciation	3
Family Dollar: | Deadwood, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	132
Buildings and Improvements	1,139
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,271
Accumulated Depreciation	9
Family Dollar: | Des Moines, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	290
Buildings and Improvements	1,126
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,416
Accumulated Depreciation	4
Family Dollar: | Eden, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	82
Buildings and Improvements	903
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	985
Accumulated Depreciation	21
Family Dollar: | Elizabethtown, NY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	107
Buildings and Improvements	671
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	778
Accumulated Depreciation	16
Family Dollar: | Eloy, AZ
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	86
Buildings and Improvements	1,587
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,673
Accumulated Depreciation	8
Family Dollar: | Empire, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	239
Buildings and Improvements	1,527
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,766
Accumulated Depreciation	22
Family Dollar: | Evans, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	201
Buildings and Improvements	817
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,018
Accumulated Depreciation	6
Family Dollar: | Findlay, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	326
Buildings and Improvements	1,271
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,597
Accumulated Depreciation	31
Family Dollar: | Folsom, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	325
Buildings and Improvements	788
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,113
Accumulated Depreciation	6
Family Dollar: | Ft. Lauderdale, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	443
Buildings and Improvements	1,361
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,804
Accumulated Depreciation	36
Family Dollar: | Fort Thomas, AZ
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	49
Buildings and Improvements	1,173
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,222
Accumulated Depreciation	26
Family Dollar: | Fort Worth, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	532
Buildings and Improvements	1,346
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,878
Accumulated Depreciation	10
Family Dollar: | Fresno, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	488
Buildings and Improvements	1,553
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,041
Accumulated Depreciation	36
Family Dollar: | Garrison, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	61
Buildings and Improvements	1,306
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,367
Accumulated Depreciation	1
Family Dollar: | Georgetown, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	607
Buildings and Improvements	905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,512
Accumulated Depreciation	3
Family Dollar: | Gering, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	244
Buildings and Improvements	913
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,157
Accumulated Depreciation	7
Family Dollar: | Greenwood, WI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	154
Buildings and Improvements	920
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,074
Accumulated Depreciation	13
Family Dollar: | Harrisonburg, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	229
Buildings and Improvements	1,073
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,302
Accumulated Depreciation	1
Family Dollar: | Hawkins, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	49
Buildings and Improvements	1,288
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,337
Accumulated Depreciation	10
Family Dollar: | Hempstead, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	219
Buildings and Improvements	943
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,162
Accumulated Depreciation	1
Family Dollar: | Hettinger, ND
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	214
Buildings and Improvements	1,077
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,291
Accumulated Depreciation	$ 27

XML

Related-Party Transactions and Arrangements - (Tables)

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Schedule of related party transactions

The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Offering:
Selling commissions (1)	$	55,921	$	122,082	$	20,107
Selling commissions reallowed by CCC	$	55,921	$	122,082	$	20,107
Dealer manager fees (1)	$	16,780	$	35,685	$	5,944
Dealer manager fees reallowed by CCC	$	9,326	$	20,183	$	3,104
Other organization and offering expenses	$	7,277	$	36,179	$	5,983

(1) Selling commissions and dealer manager fees are reduced by amounts recouped in connection with cancellations of common stock during the year ended December 31, 2014. These amounts are included in redemptions and net cancellations of common stock in the accompanying consolidated statements of stockholders’ equity.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Acquisition and Operations:
Acquisition fees and expenses	$	38,483	$	35,109	$	10,342
Advisory fees and expenses	$	24,152	$	10,549	$	812
Operating expenses	$	3,383	$	2,905	$	138

XML

Operating Leases

12 Months Ended

Dec. 31, 2014

Leases [Abstract]

OPERATING LEASES

OPERATING LEASES

The Company’s real estate properties are leased to tenants under operating leases for which the terms and expirations vary. As of December 31, 2014, the leases had a weighted-average remaining term of 11.6 years. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants.

The future minimum rental income from the Company’s investment in real estate assets under non-cancelable operating leases, assuming no exercise of renewal options, as of December 31, 2014, was as follows (in thousands):

Year Ending December 31,	Future Minimum Rental Income
2015	$	293,566
2016	287,849
2017	281,864
2018	271,222
2019	254,989
Thereafter	2,040,528
	$	3,430,018

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of dividends and distributions

The following table shows the character of the distributions the Company paid on a percentage basis for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Character of Distributions (Unaudited):	2014		2013		2012
Ordinary dividends	47	%	60	%	72	%
Nontaxable distributions	53	%	40	%	28	%
Total	100	%	100	%	100	%

XML

Subsequent Events

12 Months Ended

Dec. 31, 2014

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Issuance of Shares of Common Stock in the DRIP Offering

The Company continues to issue shares of common stock in the DRIP Offering. As of March 25, 2015, the Company had issued approximately 11.7 million shares pursuant to the DRIP Offering, resulting in gross proceeds to the Company of $111.4 million.

Redemption of Shares of Common Stock

Subsequent to December 31, 2014 through March 25, 2015, the Company redeemed approximately 834,000 shares for $8.0 million (at an average price per share of $9.64).

Credit Facility

Subsequent to December 31, 2014 through March 25, 2015, the Company increased its Credit Facility, which now provides for borrowings of up to $1.0 billion, which includes a $386.7 million Term Loan and up to $643.3 million in Revolving Loans. As of March 25, 2015, the Company had $949.7 million outstanding under the Credit Facility. The Company also entered into two notes payable totaling $53.5 million, with a weighted average interest rate of 2.84% as of March 25, 2015.

Investment in Real Estate Assets

Subsequent to December 31, 2014 through March 25, 2015, the Company acquired 52 commercial real estate properties for an aggregate purchase price of $169.9 million. The acquisitions were funded with net proceeds from the Offering and available borrowings. Acquisition-related expenses totaling $3.4 million were expensed as incurred. The Company has not completed its initial purchase price allocations with respect to these properties and therefore cannot provide similar disclosures to those included in Note 4 in these consolidated financial statements for these properties.

Officer Appointment

Effective March 24, 2015, Thomas W. Roberts was appointed chairman of the board of directors by the Board.

Effective March 24, 2015, Christine T. Brown was appointed principal accounting officer of the Company by the Board, replacing Simon J. Misselbrook as principal accounting officer of the Company. Mr. Misselbrook remains the chief financial officer, treasurer and principal financial officer of the Company.

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income (loss)	$ 11,170	$ (32,880)	$ (13,744)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	54,809	21,633	1,743
Amortization of intangible lease assets and below market lease intangible, net	27,334	11,523	797
Amortization of deferred financing costs	3,201	3,056	524
Amortization of fair value adjustment of mortgage notes payable assumed	(94)	0	0
Bad debt expense	113	59	0
Equity in income of unconsolidated joint venture	(765)	(324)	0
Return on investment from unconsolidated joint venture	719	130	0
Loss on sale of real estate	157	0	0
Changes in assets and liabilities:
Rents and tenant receivables	(20,602)	(13,034)	(1,465)
Prepaid expenses and other assets	(480)	(730)	(1,142)
Accounts payable and accrued expenses	6,741	8,688	2,227
Deferred rental income and other liabilities	4,355	7,369	1,848
Due from affiliates	(470)	0	0
Due to affiliates	2,898	2,080	495
Net cash provided by (used in) operating activities	89,086	7,570	(8,717)
Cash flows from investing activities:
Investment in real estate assets and capital expenditures	(1,749,486)	(1,667,832)	(510,700)
Investment in unconsolidated joint venture	0	(18,930)	0
Proceeds from sale of real estate	1,758	0	0
Escrowed funds for acquisition of real estate investment	(70,254)	0	0
Release of escrowed funds for acquisition of real estate investment	70,254	0	0
Payment of property escrow deposits	(6,148)	(28,978)	0
Refund of property escrow deposits	9,888	20,453	0
Change in restricted cash	3,633	(7,670)	(523)
Net cash used in investing activities	(1,740,355)	(1,702,957)	(511,223)
Cash flows from financing activities:
Proceeds from issuance of common stock	837,669	1,782,118	296,474
Redemptions of common stock	(10,849)	(1,182)	0
Offering costs on issuance of common stock	(84,920)	(190,670)	(30,373)
Distributions to investors	(72,756)	(21,768)	(1,961)
Proceeds from borrowing facilities and notes payable	744,064	970,842	316,054
Repayments of borrowing facilities	(388)	(548,490)	(41,460)
Proceeds from affiliate line of credit	0	0	11,700
Repayments of affiliate line of credit	0	0	(11,700)
Payment of loan deposits	(523)	(1,406)	(50)
Refund of loan deposits	1,068	861	50
Change in escrowed investor proceeds	(5,147)	4,624	523
Deferred financing costs paid	(1,681)	(12,408)	(5,616)
Contributions from noncontrolling interests	2,096	0	0
Other financing activities	(2,651)	(455)	(6)
Net cash provided by financing activities	1,405,982	1,982,066	533,635
Net (decrease) increase in cash and cash equivalents	(245,287)	286,679	13,695
Cash and cash equivalents, beginning of period	300,574	13,895	200
Cash and cash equivalents, end of period	$ 55,287	$ 300,574	$ 13,895

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Accumulated depreciation of building and improvements	$ 78,186	$ 23,377
Accumulated amortization of intangible lease assets	48,085	14,498
Allowance for doubtful accounts	67	50
Accumulated amortization of deferred financing costs	6,781	3,580
Accumulated amortization of acquired below market lease intangible	$ 8,807	$ 2,237
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	490,000,000	490,000,000
Common stock, shares issued	304,950,000	211,026,672
Common stock, shares outstanding	304,950,000	211,026,672

XML

Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. The Company is not aware of any pending legal proceedings of which the outcome is reasonably possible to have a material effect on its results of operations, financial condition or liquidity.

Purchase Commitments

As of December 31, 2014, the Company had entered into purchase agreements with unaffiliated third-party sellers to acquire a 100% interest in 36 retail properties, subject to meeting certain criteria, for an aggregate purchase price of $86.4 million, exclusive of closing costs. As of December 31, 2014, the Company had $4.8 million of property escrow deposits held by escrow agents in connection with these future property acquisitions, of which $4.8 million will be forfeited if the transactions are not completed under certain circumstances. In connection with one of these purchase and sale agreements, the Company is contractually obligated to purchase 25 properties, of which the Company had purchased 22 properties as of December 31, 2014 and expects to purchase the remaining three properties. If the remaining three properties are not purchased, the Company will be obligated to pay the seller $10.0 million. These deposits are included in the consolidated balance sheets in property escrow deposits, prepaid expenses and other assets. None of these escrow deposits have been forfeited.

Environmental Matters

In connection with the ownership and operation of real estate, the Company potentially may be liable for costs and damages related to environmental matters. The Company owns certain properties that are subject to environmental remediation. In each case, the seller of the property, the tenant of the property and/or another third party has been identified as the responsible party for environmental remediation costs related to the respective property. Additionally, in connection with the purchases of certain of the properties, the respective sellers and/or tenants have indemnified the Company against future remediation costs. In addition, the Company carries environmental liability insurance on its properties that provides limited coverage for remediation liability and pollution liability for third-party bodily injury and property damage claims. Accordingly, the Company does not believe that it is reasonably possible that the environmental matters identified at such properties will have a material effect on its results of operations, financial condition or liquidity, nor is it aware of any environmental matters at other properties which it believes are reasonably possible to have a material effect on its results of operations, financial condition or liquidity.

XML

Document and Entity Information (USD $) In Billions, except Share data in Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Mar. 25, 2015	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	COLE CREDIT PROPERTY TRUST IV, INC.
Entity Central Index Key	0001498547
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity common stock, shares outstanding		307.0
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 3.0

XML

Related-Party Transactions and Arrangements

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS

RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS

The Company has incurred commissions, fees and expenses payable to CR IV Advisors and certain of its affiliates in connection with the Offering and the acquisition, management and disposition of its assets.

Offering

In connection with the Offering, CCC, the Company’s dealer manager for the Offering, received selling commissions of up to 7.0% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers. CCC reallowed 100% of selling commissions earned to participating broker-dealers. In addition, CCC received up to 2.0% of gross offering proceeds before reallowance to participating broker-dealers as a dealer manager fee in connection with the primary portion of the Offering. CCC, in its sole discretion, could have reallowed a portion of its dealer manager fee to such participating broker-dealers. No selling commissions or dealer manager fees are or were paid to CCC or other broker-dealers with respect to shares sold pursuant to the DRIP portion of the Offering or the DRIP Offering.

All other organization and offering expenses associated with the sale of the Company’s common stock in the Offering (excluding selling commissions and dealer manager fees) were paid by CR IV Advisors or its affiliates and were reimbursed by the Company up to 2.0% of aggregate gross offering proceeds. A portion of the other organization and offering expenses were considered to be underwriting compensation.

The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Offering:
Selling commissions (1)	$	55,921	$	122,082	$	20,107
Selling commissions reallowed by CCC	$	55,921	$	122,082	$	20,107
Dealer manager fees (1)	$	16,780	$	35,685	$	5,944
Dealer manager fees reallowed by CCC	$	9,326	$	20,183	$	3,104
Other organization and offering expenses	$	7,277	$	36,179	$	5,983

(1) Selling commissions and dealer manager fees are reduced by amounts recouped in connection with cancellations of common stock during the year ended December 31, 2014. These amounts are included in redemptions and net cancellations of common stock in the accompanying consolidated statements of stockholders’ equity.

For the year endedDecember 31, 2014, none of the amounts shown above had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering. For the years ended December 31, 2013 and 2012, approximately $4.9 million and $1.7 million of the amounts shown above had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the offering stage of the Offering.

Acquisitions and Operations

CR IV Advisors or its affiliates also receive acquisition fees of up to 2.0% of: (1) the contract purchase price of each property or asset the Company acquires; (2) the amount paid in respect of the development, construction or improvement of each asset the Company acquires; (3) the purchase price of any loan the Company acquires; and (4) the principal amount of any loan the Company originates. Additionally, CR IV Advisors or its affiliates are reimbursed for acquisition-related expenses incurred in the process of acquiring properties, so long as the total acquisition fees and expenses relating to the transaction do not exceed 6.0% of the contract purchase price.

The Company pays CR IV Advisors a monthly advisory fee based upon the Company’s monthly average invested assets, which is equal to the following amounts: (1) an annualized rate of 0.75% paid on the Company’s average invested assets that are between $0 to $2.0 billion; (2) an annualized rate of 0.70% paid on the Company’s average invested assets that are between $2.0 billion to $4.0 billion; and (3) an annualized rate of 0.65% paid on the Company’s average invested assets that are over $4.0 billion.

The Company reimburses CR IV Advisors for the expenses it paid or incurred in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse for any amount by which its operating expenses (including the advisory fee) at the end of the four preceding fiscal quarters exceeds the greater of: (1) 2.0% of average invested assets, or (2) 25.0% of net income other than any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of assets for that period. The Company will not reimburse for personnel costs in connection with services for which CR IV Advisors receives acquisition fees.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by CR IV Advisors or its affiliates related to the services described above during the periods indicated (in thousands):

	Year Ended December 31,
	2014		2013		2012
Acquisition and Operations:
Acquisition fees and expenses	$	38,483	$	35,109	$	10,342
Advisory fees and expenses	$	24,152	$	10,549	$	812
Operating expenses	$	3,383	$	2,905	$	138

Of the amounts shown above, $5.5 million, $2.6 million and $268,000 had been incurred, but not yet paid, for services provided by CR IV Advisors or its affiliates in connection with the acquisition and operations stage during the years ended December 31, 2014, 2013 and 2012 respectively, and the $5.5 million incurred but not yet paid as of December 31, 2014 was a liability to the Company as of such date.

Liquidation/Listing

If CR IV Advisors or its affiliates provide a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of properties, the Company will pay CR IV Advisors or its affiliates a disposition fee in an amount equal to up to one-half of the brokerage commission paid on the sale of the property, not to exceed 1.0% of the contract price of the property sold; provided, however, in no event may the disposition fee paid to CR IV Advisors or its affiliates, when added to the real estate commissions paid to unaffiliated third parties, exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price.

If the Company is sold or its assets are liquidated, CR IV Advisors will be entitled to receive a subordinated performance fee equal to 15.0% of the net sale proceeds remaining after investors have received a return of their net capital invested and an 8.0% annual cumulative, non-compounded return. Alternatively, if the Company’s shares are listed on a national securities exchange, CR IV Advisors will be entitled to a subordinated performance fee equal to 15.0% of the amount by which the market value of the Company’s outstanding stock plus all distributions paid by the Company prior to listing, exceeds the sum of the total amount of capital raised from investors and the amount of distributions necessary to generate an 8.0% annual cumulative, non-compounded return to investors. As an additional alternative, upon termination of the advisory agreement, CR IV Advisors may be entitled to a subordinated performance fee similar to the fee to which CR IV Advisors would have been entitled had the portfolio been liquidated (based on an independent appraised value of the portfolio) on the date of termination.

During each of the years ended December 31, 2014, 2013 and 2012, no commissions or fees were incurred for any services provided by CR IV Advisors and its affiliates in connection with the liquidation/listing stage.

Due to Affiliates

As of December 31, 2014, $5.5 million had been incurred primarily for advisory, operating and acquisition-related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company. As of December 31, 2013, $7.5 million had been incurred primarily for offering, advisory, operating and acquisition-related expenses by CR IV Advisors or its affiliates, but had not yet been reimbursed by the Company. These amounts were included in due to affiliates in the consolidated balance sheets as of such periods.

XML

Consolidated Statement of Operations (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues:
Rental and other property income	$ 221,909	$ 90,680	$ 7,303
Tenant reimbursement income	34,373	11,877	534
Total revenue	256,282	102,557	7,837
Expenses:
General and administrative expenses	11,510	7,566	1,503
Property operating expenses	39,035	13,507	553
Advisory fees and expenses	24,142	10,549	812
Acquisition-related expenses	51,763	48,286	14,371
Depreciation	54,809	21,633	1,743
Amortization	29,593	11,712	871
Total operating expenses	210,852	113,253	19,853
Operating income (loss)	45,430	(10,696)	(12,016)
Other expense:
Interest expense and other	(34,260)	(22,184)	(1,728)
Net income (loss)	11,170	(32,880)	(13,744)
Net loss allocated to noncontrolling interest	(20)	0	0
Net income (loss) attributable to the Company	$ 11,190	$ (32,880)	$ (13,744)
Weighted average number of common shares outstanding:
Basic and diluted (shares)	292,072,088	90,330,927	8,578,494
Net income (loss) per common share:
Basic and diluted (in dollars per share)	$ 0.04	$ (0.36)	$ (1.60)

XML

Intangible Lease Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE LEASE ASSETS

INTANGIBLE LEASE ASSETS

Intangible lease assets consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
In-place leases, net of accumulated amortization of $41,739 and
	$12,523, respectively (with a weighted average life remaining of 12.4 years
	and 13.4 years, respectively)	$	344,664	$	218,407
Acquired above market leases, net of accumulated amortization of $6,346 and
	$1,975, respectively (with a weighted average life remaining of 10.5 years and
	11.4 years, respectively)	47,253		28,194
		$	391,917	$	246,601

Amortization expense related to the in-place lease assets for the years ended December 31, 2014, 2013 and 2012, was $29.6 million, $11.7 million and $871,000, respectively. Amortization expense related to the acquired above market lease assets for the years ended December 31, 2014, 2013 and 2012, was $4.4 million, $1.9 million and $36,000, respectively, and was recorded as a reduction to rental and other property income in the consolidated statements of operations.

Estimated amortization expense related to the intangible lease assets as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

	Amortization
Year Ending December 31,	In-Place Leases		Above Market Leases
2015	$	37,291	$	5,835
2016	$	34,768	$	5,568
2017	$	33,022	$	5,305
2018	$	30,945	$	4,471
2019	$	28,069	$	3,556

XML

Real Estate Acquisitions

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

REAL ESTATE ACQUISITIONS

REAL ESTATE ACQUISITIONS

2014 Property Acquisitions

During the year endedDecember 31, 2014, the Company acquired 422 commercial properties, including properties held in the Consolidated Joint Venture, for an aggregate purchase price of $1.8 billion (the “2014 Acquisitions”). The Company purchased the 2014 Acquisitions with net proceeds from the Offerings and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for acquisitions purchased during the year endedDecember 31, 2014 (in thousands):

		December 31, 2014
Land	$	437,206
Building and improvements		1,152,148
Acquired in-place leases		154,972
Acquired above market leases		23,430
Acquired below market leases		24,620
Fair value adjustment of assumed notes payable		(765	)
Total purchase price	$	1,791,611

The Company recorded revenue for the year endedDecember 31, 2014 of $61.2 million and a net loss for the year endedDecember 31, 2014 of $25.7 million related to the 2014 Acquisitions.

The following information summarizes selected financial information of the Company as if all of the 2014 Acquisitions were completed on January 1, 2013 for each period presented below. The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the years ended December 31, 2014 and 2013 (in thousands):

	Year Ended December 31,
	2014		2013
Pro forma basis (unaudited):
Revenue	$	332,860	$	245,969
Net income (loss)	$	131,001	$	(53,805	)

The unaudited pro forma information for the year endedDecember 31, 2014 was adjusted to exclude $51.8 million of acquisition-related expenses recorded during the year ended December 31, 2014. These costs were recognized in the unaudited pro forma information for the year endedDecember 31, 2013. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2013, nor does it purport to represent the results of future operations.

2014 Development Project

During the year endedDecember 31, 2014, the Company acquired one land parcel, upon which a 1.6 million square foot industrial property is expected to be constructed. The land, acquired for an aggregate amount of $23.9 million, is included in buildings and improvements on the accompanying consolidated balance sheets and excluded from the 2014 Acquisitions. As of December 31, 2014, the Company had a total investment of $36.7 million and has committed to invest an additional estimated amount of $66.7 million related to the development project.

2014 Land Disposition

During the year endedDecember 31, 2014, the Company sold one undeveloped land parcel for a gross sales price of $1.9 million, resulting in net cash proceeds of $1.8 million to the Company and a loss of $157,000.

Escrowed Funds for Acquisition of Real Estate Investments

In anticipation of closing on two properties, the Company funded $70.3 million to an escrow account on September 30, 2014, which was returned when the both of the properties closed and the title was transfered during the quarter ended December 31, 2014. As of December 31, 2014, there were no amounts included in escrowed funds for acquisition of real estate investments on the accompanying consolidated balance sheets.

2013 Property Acquisitions

During the year endedDecember 31, 2013, the Company acquired 248 commercial properties for an aggregate purchase price of $1.7 billion (the “2013 Acquisitions”). The Company purchased the 2013 Acquisitions with net proceeds from the Offering and available borrowings. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation (in thousands):

		December 31, 2013
Land	$	390,781
Building and improvements		1,103,390
Acquired in-place leases		175,520
Acquired above market leases		26,921
Acquired below market leases		(31,802	)
Total purchase price	$	1,664,810

The Company recorded revenue for the year endedDecember 31, 2013 of $60.4 million and a net loss for the year endedDecember 31, 2013 of $25.7 million related to the 2013 Acquisitions.

The following information summarizes selected financial information of the Company as if all of the 2013 Acquisitions were completed on January 1, 2012 for each period presented below. The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2013		2012
Pro forma basis (unaudited):
Revenue	$	181,859	$	147,515
Net income	$	44,490	$	(30,842	)

The unaudited pro forma information for the year endedDecember 31, 2013 was adjusted to exclude $48.3 million of acquisition-related expenses recorded during the year endedDecember 31, 2013. These costs were recognized in the unaudited pro forma information for the year ended December 31, 2012. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2012, nor does it purport to represent the results of future operations.

XML

Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY RESULTS (UNAUDITED)

QUARTERLY RESULTS (UNAUDITED)

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2014 and 2013 (in thousands, except for per share amounts). In the opinion of management, the information for the interim periods presented includes all adjustments which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period.

	December 31, 2014
	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Revenues	$	51,551	$	56,861	$	64,591		$	83,279
Acquisition-related expenses	$	8,633	$	10,113	$	21,009		$	12,008
Operating income	$	10,564	$	10,790	$	3,698		$	20,378
Net income (loss)	$	2,946	$	3,190	$	(4,147	)	$	9,181
Net income (loss) attributable to the Company	$	2,946	$	3,204	$	(4,156	)	$	9,196
Basic and diluted net income (loss) per common share (1)	$	0.01	$	0.01	$	(0.01	)	$	0.03
Distributions declared per common share	$	0.15	$	0.16	$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2014.

	December 31, 2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Revenues	$	11,405		$	21,773		$	30,326		$	39,053
Acquisition-related expenses	$	5,639		$	14,551		$	10,356		$	17,740
Operating (loss) income	$	(1,055	)	$	(6,051	)	$	552		$	(4,142	)
Net loss	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Net loss attributable to the Company	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Basic and diluted net loss per common share (1)	$	(0.04	)	$	(0.13	)	$	(0.07	)	$	(0.12	)
Distributions declared per common share	$	0.15		$	0.16		$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2013.

XML

Economic Dependency

12 Months Ended

Dec. 31, 2014

Economic Dependency [Abstract]

ECONOMIC DEPENDENCY

ECONOMIC DEPENDENCY

Under various agreements, the Company has engaged or will engage CR IV Advisors and its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company’s common stock available for issuance, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon CR IV Advisors and its affiliates. In the event that these companies are unable to provide the Company with these services, the Company would be required to find alternative providers of these services.

XML

Acquired Below Market Lease Intangibles

12 Months Ended

Dec. 31, 2014

Intangible Liabilities Disclosure [Abstract]

ACQUIRED BELOW MARKET LEASE INTANGIBLES

ACQUIRED BELOW MARKET LEASE INTANGIBLES

Acquired below market lease intangibles consisted of the following (in thousands, except weighted average life amounts):

		As of December 31,
		2014		2013
Acquired below market leases, net of accumulated amortization of $8,807
	and $2,237, respectively (with a weighted average life remaining of 9.2
	years and 11.6 years, respectively)	$	55,535	$	37,485

Amortization of the intangible lease liabilities during the years ended December 31, 2014 and 2013, was $6.6 million and $2.1 million, respectively, and was recorded as an addition to rental and other property income in the consolidated statements of operations.

Estimated amortization of the intangible lease liabilities as of December 31, 2014 for each of the five succeeding fiscal years is as follows (in thousands):

Year Ending December 31,	Amortization of Below Market Leases
2015	$	8,570
2016	$	8,122
2017	$	7,908
2018	$	7,588
2019	$	6,999

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 4 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
Family Dollar: | Hodgenville, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	202
Buildings and Improvements	783
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	985
Accumulated Depreciation	6
Family Dollar: | Holtville, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	317
Buildings and Improvements	1,609
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,926
Accumulated Depreciation	37
Family Dollar: | Homosassa, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	325
Buildings and Improvements	1,001
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,326
Accumulated Depreciation	1
Family Dollar: | Immokalee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	458
Buildings and Improvements	1,248
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,706
Accumulated Depreciation	4
Family Dollar: | Indianapolis, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	238
Buildings and Improvements	1,117
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,355
Accumulated Depreciation	4
Family Dollar: | Indio, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	393
Buildings and Improvements	1,636
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,029
Accumulated Depreciation	23
Family Dollar: | Irvington, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	217
Buildings and Improvements	814
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,031
Accumulated Depreciation	23
Family Dollar: | Jacksonville, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	134
Buildings and Improvements	1,157
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,291
Accumulated Depreciation	4
Family Dollar: | Jay, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	190
Buildings and Improvements	1,002
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,192
Accumulated Depreciation	25
Family Dollar: | Jonesboro, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	297
Buildings and Improvements	1,098
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,395
Accumulated Depreciation	26
Family Dollar: | Keller, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	749
Buildings and Improvements	1,550
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,299
Accumulated Depreciation	29
Family Dollar: | Kersey, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	238
Buildings and Improvements	904
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,142
Accumulated Depreciation	15
Family Dollar: | Kiowa, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	193
Buildings and Improvements	947
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,140
Accumulated Depreciation	8
Family Dollar: | Kissimmee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	622
Buildings and Improvements	1,226
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,848
Accumulated Depreciation	12
Family Dollar: | La Salle, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	239
Buildings and Improvements	890
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,129
Accumulated Depreciation	3
Family Dollar: | LaBelle, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	268
Buildings and Improvements	1,037
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,305
Accumulated Depreciation	25
Family Dollar: | Lake Elsinor, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	417
Buildings and Improvements	1,682
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,099
Accumulated Depreciation	35
Family Dollar: | Lakeland, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	353
Buildings and Improvements	937
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,290
Accumulated Depreciation	14
Family Dollar: | Laredo, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	302
Buildings and Improvements	1,039
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,341
Accumulated Depreciation	6
Family Dollar: | Levelland, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	264
Buildings and Improvements	952
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,216
Accumulated Depreciation	7
Family Dollar: | Lorain, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	320
Buildings and Improvements	995
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,315
Accumulated Depreciation	15
Family Dollar: | Louisville (Bank), KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	578
Buildings and Improvements	919
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,497
Accumulated Depreciation	20
Family Dollar: | Louisville (Cane), KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	480
Buildings and Improvements	934
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,414
Accumulated Depreciation	14
Family Dollar: | Mansfield, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	849
Buildings and Improvements	1,189
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,038
Accumulated Depreciation	28
Family Dollar: | Melbourne, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	362
Buildings and Improvements	883
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,245
Accumulated Depreciation	21
Family Dollar: | Melrose, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	124
Buildings and Improvements	929
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,053
Accumulated Depreciation	7
Family Dollar: | Mertzon, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	149
Buildings and Improvements	995
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,144
Accumulated Depreciation	8
Family Dollar: | Mesa, AZ
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	627
Buildings and Improvements	1,468
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,095
Accumulated Depreciation	30
Family Dollar: | Monroe, UT
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	272
Buildings and Improvements	985
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,257
Accumulated Depreciation	5
Family Dollar: | Moore Haven, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	348
Buildings and Improvements	1,016
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,364
Accumulated Depreciation	18
Family Dollar: | Moulton, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	102
Buildings and Improvements	973
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,075
Accumulated Depreciation	24
Family Dollar: | Naubinway, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	47
Buildings and Improvements	1,180
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,227
Accumulated Depreciation	26
Family Dollar: | New Ellenton, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	160
Buildings and Improvements	800
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	960
Accumulated Depreciation	1
Family Dollar: | New Summerfield, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	230
Buildings and Improvements	851
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,081
Accumulated Depreciation	12
Family Dollar: | Nicholasville, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	464
Buildings and Improvements	826
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,290
Accumulated Depreciation	18
Family Dollar: | North Charleston, SC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	386
Buildings and Improvements	997
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,383
Accumulated Depreciation	3
Family Dollar: | Ocoee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	462
Buildings and Improvements	1,173
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,635
Accumulated Depreciation	4
Family Dollar: | Ordway, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	81
Buildings and Improvements	993
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,074
Accumulated Depreciation	6
Family Dollar: | Oshkosh, WI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	361
Buildings and Improvements	815
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,176
Accumulated Depreciation	19
Family Dollar: | Ossineke, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	85
Buildings and Improvements	898
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	983
Accumulated Depreciation	18
Family Dollar: | Penitas, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	182
Buildings and Improvements	1,053
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,235
Accumulated Depreciation	22
Family Dollar: | Pensacola, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	509
Buildings and Improvements	791
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,300
Accumulated Depreciation	17
Family Dollar: | Pine Lake, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	639
Buildings and Improvements	897
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,536
Accumulated Depreciation	9
Family Dollar: | Plainview, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	112
Buildings and Improvements	774
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	886
Accumulated Depreciation	15
Family Dollar: | Poinciana, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	501
Buildings and Improvements	1,186
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,687
Accumulated Depreciation	9
Family Dollar: | Pojoaque, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	545
Buildings and Improvements	909
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,454
Accumulated Depreciation	9
Family Dollar: | Posen, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	101
Buildings and Improvements	896
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	997
Accumulated Depreciation	18
Family Dollar: | Preston, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	161
Buildings and Improvements	1,159
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,320
Accumulated Depreciation	18
Family Dollar: | Radium Springs, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	129
Buildings and Improvements	1,086
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,215
Accumulated Depreciation	25
Family Dollar: | Ramah, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	217
Buildings and Improvements	1,105
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,322
Accumulated Depreciation	24
Family Dollar: | Rex, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	294
Buildings and Improvements	1,393
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,687
Accumulated Depreciation	5
Family Dollar: | Riverside, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	736
Buildings and Improvements	1,558
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,294
Accumulated Depreciation	29
Family Dollar: | Robert Lee, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	94
Buildings and Improvements	904
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	998
Accumulated Depreciation	21
Family Dollar: | Rushford, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	163
Buildings and Improvements	844
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,007
Accumulated Depreciation	13
Family Dollar: | Saginaw, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	240
Buildings and Improvements	956
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,196
Accumulated Depreciation	5
Family Dollar: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	54
Buildings and Improvements	900
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	954
Accumulated Depreciation	8
Family Dollar: | San Antonio, TX 2
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	421
Buildings and Improvements	951
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,372
Accumulated Depreciation	3
Family Dollar: | San Jacinto, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	430
Buildings and Improvements	1,682
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,112
Accumulated Depreciation	20
Family Dollar: | Schuyler, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	260
Buildings and Improvements	708
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	968
Accumulated Depreciation	12
Family Dollar: | Shreveport, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	406
Buildings and Improvements	978
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,384
Accumulated Depreciation	16
Family Dollar: | Shreveport, LA 2
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	272
Buildings and Improvements	1,113
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,385
Accumulated Depreciation	14
Family Dollar: | Shreveport, LA 3
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	423
Buildings and Improvements	1,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,522
Accumulated Depreciation	6
Family Dollar: | Spurger, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	86
Buildings and Improvements	905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	991
Accumulated Depreciation	7
Family Dollar: | Statesboro, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	347
Buildings and Improvements	800
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,147
Accumulated Depreciation	19
Family Dollar: | Sterling City, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	78
Buildings and Improvements	889
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	967
Accumulated Depreciation	21
Family Dollar: | Stockton, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	202
Buildings and Improvements	1,817
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,019
Accumulated Depreciation	14
Family Dollar: | Summerfield, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	271
Buildings and Improvements	978
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,249
Accumulated Depreciation	1
Family Dollar: | Tallahassee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	189
Buildings and Improvements	1,212
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,401
Accumulated Depreciation	4
Family Dollar: | Taft, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	255
Buildings and Improvements	1,422
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,677
Accumulated Depreciation	51
Family Dollar: | Tampa (Cragmont), FL
Real Estate and Accumulated Depreciation [Line Items]
Land	563
Buildings and Improvements	737
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,300
Accumulated Depreciation	21
Family Dollar: | Tampa (Forest), FL
Real Estate and Accumulated Depreciation [Line Items]
Land	482
Buildings and Improvements	920
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,402
Accumulated Depreciation	26
Family Dollar: | Tampa (Hunt), FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	568
Buildings and Improvements	1,137
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,705
Accumulated Depreciation	14
Family Dollar: | Terra Bella, CA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	332
Buildings and Improvements	1,394
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,726
Accumulated Depreciation	32
Family Dollar: | Topeka, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	419
Buildings and Improvements	1,327
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,746
Accumulated Depreciation	25
Family Dollar: | Tyler, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	73
Buildings and Improvements	895
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	968
Accumulated Depreciation	14
Family Dollar: | Tuscaloosa, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	534
Buildings and Improvements	817
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,351
Accumulated Depreciation	23
Family Dollar: | Valdosta, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	424
Buildings and Improvements	849
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,273
Accumulated Depreciation	20
Family Dollar: | Waelder, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	136
Buildings and Improvements	788
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	924
Accumulated Depreciation	12
Family Dollar: | Walker, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	294
Buildings and Improvements	966
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,260
Accumulated Depreciation	7
Family Dollar: | Wayne, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	37
Buildings and Improvements	937
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	974
Accumulated Depreciation	14
Family Dollar: | Waynesburg, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	150
Buildings and Improvements	955
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,105
Accumulated Depreciation	5
Family Dollar: | Wild Rose, WI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	133
Buildings and Improvements	866
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	999
Accumulated Depreciation	12
Family Dollar: | Georgetown, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	607
Buildings and Improvements	905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,512
Accumulated Depreciation	3
Fargo Plaza: | Fargo, ND
Real Estate and Accumulated Depreciation [Line Items]
Land	2,097
Buildings and Improvements	4,774
Total Adjustment to Basis	376
Gross Amount at Which Carried At December 31, 2014	7,247
Accumulated Depreciation	265
Flower Foods: | Orlando, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	418
Buildings and Improvements	387
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	805
Accumulated Depreciation	3
Flower Foods: | Waldorf, MD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	398
Buildings and Improvements	1,045
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,443
Accumulated Depreciation	9
Food 4 Less: | Atwater, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,383
Buildings and Improvements	5,271
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,654
Accumulated Depreciation	169
Fourth Creek Landing: | Stateville, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,700
Land	1,375
Buildings and Improvements	7,795
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,170
Accumulated Depreciation	477
Fresenius Medical Care: | West Plains, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	557
Buildings and Improvements	3,097
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,654
Accumulated Depreciation	37
Fresh Market Center: | Glen Ellyn, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,767
Buildings and Improvements	6,403
Total Adjustment to Basis	15
Gross Amount at Which Carried At December 31, 2014	9,185
Accumulated Depreciation	52
Fresh Thyme: | Indianapolis, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,087
Buildings and Improvements	6,019
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,106
Accumulated Depreciation	37
Fresh Thyme & DSW: | Fort Wayne, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,740
Buildings and Improvements	4,153
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,893
Accumulated Depreciation	35
Gander Mountain: | Pensacola, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	2,152
Buildings and Improvements	3,831
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,983
Accumulated Depreciation	74
Gander Mountain: | Waukesha, WI
Real Estate and Accumulated Depreciation [Line Items]
Land	3,408
Buildings and Improvements	12,918
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	16,326
Accumulated Depreciation	95
Giant Eagle: | Seven Fields, PA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,574
Buildings and Improvements	13,659
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	15,233
Accumulated Depreciation	221
Gold's Gym: | Corpus Christi, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,498
Buildings and Improvements	6,346
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,844
Accumulated Depreciation	308
Golden Corral: | Garland, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,255
Buildings and Improvements	2,435
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,690
Accumulated Depreciation	151
Golden Corral: | Georgetown, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,048
Buildings and Improvements	1,452
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,500
Accumulated Depreciation	20
Golden Corral: | Houston, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,375
Buildings and Improvements	2,350
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,725
Accumulated Depreciation	131
Golden Corral: | Victoria, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	673
Buildings and Improvements	2,857
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,530
Accumulated Depreciation	39
Goodyear: | Pooler, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	569
Buildings and Improvements	1,484
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,053
Accumulated Depreciation	66
Hancock Village: | Chesterfield, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	15,000
Land	8,874
Buildings and Improvements	17,287
Total Adjustment to Basis	96
Gross Amount at Which Carried At December 31, 2014	26,257
Accumulated Depreciation	897
Haverty Furniture: | Midland, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	709
Buildings and Improvements	1,294
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,003
Accumulated Depreciation	72
HEB Center: | Waxahachie, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,000
Land	3,465
Buildings and Improvements	7,952
Total Adjustment to Basis	287
Gross Amount at Which Carried At December 31, 2014	11,704
Accumulated Depreciation	542
Hickory Flat Commons: | Canton, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	4,482
Buildings and Improvements	13,174
Total Adjustment to Basis	9
Gross Amount at Which Carried At December 31, 2014	17,665
Accumulated Depreciation	790
Hobby Lobby: | Dickson City, PA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,113
Buildings and Improvements	7,946
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,059
Accumulated Depreciation	165
Hobby Lobby: | Lewisville, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	2,184
Buildings and Improvements	8,977
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,161
Accumulated Depreciation	278
Hobby Lobby: | Mooresville, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	869
Buildings and Improvements	4,249
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,118
Accumulated Depreciation	315
Home Depot: | North Canton, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	2,203
Buildings and Improvements	12,012
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,215
Accumulated Depreciation	662
Home Depot: | Plainwell, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	521
Buildings and Improvements	11,905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	12,426
Accumulated Depreciation	493
IHOP: | Anderson, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	54
Buildings and Improvements	1,633
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,687
Accumulated Depreciation	22
IHOP: | Columbus, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	408
Buildings and Improvements	1,783
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,191
Accumulated Depreciation	24
IHOP: | Columbus, OH 2
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	315
Buildings and Improvements	1,864
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,179
Accumulated Depreciation	$ 25

XML

Derivative Instruments and Hedging Activities (Notes)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

In the normal course of business, the Company uses certain types of derivative instruments for the purpose of managing or hedging its interest rate risks. The following table summarizes the terms of the Company’s executed swap agreements designated as hedging instruments as of December 31, 2014 and 2013 (in thousands):

Outstanding Notional

Fair Value of Liabilities

Balance Sheet

Amount as of

Interest

Effective

Maturity

December 31,

December 31,

Location

December 31, 2014

Rates (1)

Dates

Dates

2014

2013

Interest Rate Swaps

Deferred rental income and other liabilities

$

338,737

3.36% to 4.75%

6/24/2013 to 8/23/2013

6/24/2018 to 8/24/2020

$

(4,057

)

$

(2,252

)

(1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread.

Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3. The notional amount under the interest rate swap agreements is an indication of the extent of the Company’s involvement in each instrument, but does not represent exposure to credit, interest rate or market risks.

Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges, to hedge the variability of the anticipated cash flows on its variable rate debt. The change in fair value of the effective portion of the derivative instruments that is designated as hedges are recorded in other comprehensive income (loss). Any ineffective portion of the change in fair value of the derivative instruments is recorded in interest expense.

The following table summarizes the unrealized losses on the Company’s derivative instruments and hedging activities during the years endedDecember 31, 2014 and 2013 (in thousands). The Company did not own any derivative instruments during the year endedDecember 31, 2012.

	Amount of Loss Recognized in Other Comprehensive Loss
	Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2014			2013
Interest Rate Swaps (1)	$	(1,805	)	$	(2,252	)

(1)	There were no portions of the change in the fair value of the interest rate swap agreements that were considered
	ineffective during the year ended December 31, 2014. No previously effective portions of the losses
	that were recorded in accumulated other comprehensive loss during the term of the hedging relationships were
	reclassified into earnings during the year ended December 31, 2014.

The Company has agreements with each of its derivative counterparties that contain a provision whereby if the Company defaults on certain of its unsecured indebtedness, then the Company could also be declared in default on its derivative obligations resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $4.6 million at December 31, 2014. In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the respective credit quality of the Company and the counterparty. During the year ended December 31, 2014, there were no termination events or events of default related to the interest rate swaps.

XML

Notes Payable And Credit Facility

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

NOTES PAYABLE AND CREDIT FACILITY

NOTES PAYABLE AND CREDIT FACILITY

As of December 31, 2014, the Company had $1.5 billion of debt outstanding, with a weighted average years to maturity of 5.0 years and weighted average interest rate of 3.1%. The following table summarizes the debt balances as of December 31, 2014 and 2013, and the debt activity for the year endedDecember 31, 2014 (in thousands):

			During the Year Ended December 31, 2014
	Balance as of December 31, 2013		Debt Issuances and Assumptions		Repayments			Other (1)	Balance as of December 31, 2014
Fixed rate debt	$	396,946	$	169,278	$	(388	)	671	$	566,507
Credit facility	300,000		600,000		—			—	900,000
Total	$	696,946	$	769,278	$	(388	)	671	$	1,466,507

(1) Represents fair value adjustment of an assumed mortgage note payable, net of amortization.

As of December 31, 2014, the fixed rate debt outstanding of $566.5 million included $38.7 million of variable rate debt subject to interest rate swap agreements, which had the effect of fixing the variable interest rates per annum through the maturity date of the variable rate debt. In addition, the fixed rate debt includes a mortgage note assumed with a face amount of $25.2 million and a fair value of $26.0 million at the date of assumption. The fixed rate debt has interest rates ranging from 3.35% to 4.98% per annum. The debt outstanding matures on various dates from June 2018 through December 2024. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $944.6 million as of December 31, 2014. Each of the mortgage notes payable comprising the fixed rate debt is secured by the respective properties on which the debt was placed.

The Company has an amended and restated unsecured credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan Chase”), which during 2014 provides for borrowings of up to $900.0 million, which includes a $300.0 million unsecured term loan (the “Term Loan”) and up to $600.0 million in unsecured revolving loans (the “Revolving Loans”). The Credit Facility may be increased up to a maximum of $1.6 billion. The Term Loan matures on August 15, 2018 and the Revolving Loans mature on August 15, 2017; however, the Company may elect to extend the maturity date for the Revolving Loans to August 15, 2018 subject to satisfying certain conditions set forth in the amended and restated unsecured credit agreement among CCPT IV OP and JPMorgan Chase, as administrative agent (as amended prior to the date hereof, the “Amended and Restated Credit Agreement”). Depending upon the type of loan specified and overall leverage ratio, the Revolving Loans bear interest at one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.65% to 2.50% (the “Spread”) or a base rate, ranging from 0.65% to 1.50%, plus the greater of (a) JPMorgan Chase’s Prime Rate; (b) the Federal Funds Effective Rate (as defined in the Amended and Restated Credit Agreement) plus 0.50%; or (c) the Eurodollar Rate plus 1.00%. The Company executed a swap agreement associated with the Term Loan, which had the effect of fixing the variable interest rate per annum on August 15, 2013 through the maturity date of the loan at 1.713% (the “Swap Rate”). Based on the Company’s leverage ratio, the Term Loan bears interest at the Swap Rate plus the Spread, which totaled 3.36% as of December 31, 2014, and the Revolving Loans had an interest rate of 1.97% as of December 31, 2014. As of December 31, 2014, the Company had $900 million outstanding under the Credit Facility.

The Amended and Restated Credit Agreement contains provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the Amended and Restated Credit Agreement requires the Company to maintain a minimum consolidated net worth of at least $2.0 billion as of December 31, 2014, a leverage ratio less than 60%, a fixed charge coverage ratio greater than 1.50, an unsecured debt to unencumbered asset value ratio equal to or less than 50%, an unsecured debt service coverage ratio greater than 1.75 and a secured debt ratio equal to or less than 30%. The Company was in compliance with the covenants under the Amended and Restated Credit Agreement as of December 31, 2014.

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt as of December 31, 2014 for each of the five succeeding fiscal years and the period thereafter (in thousands):

Year Ending December 31,	Principal Repayments
2015	$	408
2016	425
2017	600,451
2018	324,211
2019	499
Thereafter	539,842
Total	$	1,465,836

XML

Supplemental Cash Flow Disclosures

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW DISCLOSURES

SUPPLEMENTAL CASH FLOW DISCLOSURES

Supplemental cash flow disclosures for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	$	16,189		$	10,569		$	1,456
Accrued other offering costs due to affiliates	$	—		$	4,937		$	1,661
Accrued capital expenditures	$	7,721		$	1,760		$	2,815
Common stock issued through distribution reinvestment plan	$	104,261		$	25,702		$	1,964
Net unrealized loss on interest rate swaps	$	(1,805	)	$	(2,252	)	$	—
Contingent consideration recorded upon property acquisitions	$	5,342		$	553		$	708
Fair value of assumed bond obligations	$	25,979		$	—		$	591
Supplemental Cash Flow Disclosures:
Interest paid	$	31,159		$	17,474		$	783

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 8 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
Waterford South Park: | Clarksville, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	2,946
Buildings and Improvements	8,564
Total Adjustment to Basis	45
Gross Amount at Which Carried At December 31, 2014	11,555
Accumulated Depreciation	484
Wawa: | Cape May, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	1,576
Buildings and Improvements	5,790
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,366
Accumulated Depreciation	356
Wawa: | Galloway, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	1,724
Buildings and Improvements	6,105
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,829
Accumulated Depreciation	374
Wendy's: | Grafton, VA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	539
Buildings and Improvements	894
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,433
Accumulated Depreciation	13
Wendy's: | Westminster, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	596
Buildings and Improvements	1,108
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,704
Accumulated Depreciation	16
Westover Market: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	2,705
Buildings and Improvements	7,959
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,664
Accumulated Depreciation	351
Whole Foods: | Fort Collins, CO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,664
Buildings and Improvements	17,166
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	19,830
Accumulated Depreciation	148
Winn-Dixie: | Baton Rouge, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,782
Buildings and Improvements	3,776
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,558
Accumulated Depreciation	53
Winn-Dixie: | Walker, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	900
Buildings and Improvements	3,909
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,809
Accumulated Depreciation	54
Woods Supermarket: | Sunrise Beach, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	1,044
Buildings and Improvements	5,005
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,049
Accumulated Depreciation	$ 167

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 7 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
United Oil: | Long Beach (Santa Fe), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,972
Buildings and Improvements	643
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,615
Accumulated Depreciation	5
United Oil: | Los Angeles (2503 W. Pico), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,334
Buildings and Improvements	717
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,051
Accumulated Depreciation	5
United Oil: | Los Angeles (4931 W. Pico), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,552
Buildings and Improvements	1,242
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,794
Accumulated Depreciation	9
United Oil: | Los Angeles (Eastern), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,745
Buildings and Improvements	669
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,414
Accumulated Depreciation	5
United Oil: | Los Angeles (Jefferson), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,823
Buildings and Improvements	825
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,648
Accumulated Depreciation	6
United Oil: | Los Angeles (Marina Del R), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,930
Buildings and Improvements	428
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,358
Accumulated Depreciation	3
United Oil: | Los Angeles (Olympic), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,710
Buildings and Improvements	905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,615
Accumulated Depreciation	7
United Oil: | Los Angeles (Slauson), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,927
Buildings and Improvements	1,484
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,411
Accumulated Depreciation	0
United Oil: | Los Angeles (Western), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,182
Buildings and Improvements	701
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,883
Accumulated Depreciation	0
United Oil: | Lynwood, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,386
Buildings and Improvements	737
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,123
Accumulated Depreciation	5
United Oil: | Menifee, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,853
Buildings and Improvements	924
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,777
Accumulated Depreciation	7
United Oil: | Monrovia, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,365
Buildings and Improvements	686
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,051
Accumulated Depreciation	5
United Oil: | Norco (Hidden Valley), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,852
Buildings and Improvements	1,489
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,341
Accumulated Depreciation	11
United Oil: | Norco (Sixth), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,869
Buildings and Improvements	891
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,760
Accumulated Depreciation	7
United Oil: | North Hollywood, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	4,663
Buildings and Improvements	858
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,521
Accumulated Depreciation	6
United Oil: | Oceanside, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,163
Buildings and Improvements	1,248
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,411
Accumulated Depreciation	9
United Oil: | Paramount, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,301
Buildings and Improvements	1,024
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,325
Accumulated Depreciation	8
United Oil: | Pomona, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,740
Buildings and Improvements	730
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,470
Accumulated Depreciation	5
United Oil: | Poway, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,072
Buildings and Improvements	705
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,777
Accumulated Depreciation	9
United Oil: | San Diego (47th St), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,977
Buildings and Improvements	1,448
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,425
Accumulated Depreciation	11
United Oil: | San Diego (Governor), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,877
Buildings and Improvements	883
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,760
Accumulated Depreciation	9
United Oil: | San Diego (Rancho Penasquitos), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,215
Buildings and Improvements	841
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,056
Accumulated Depreciation	0
United Oil: | San Diego (Sunset Cliffs), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,824
Buildings and Improvements	382
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,206
Accumulated Depreciation	3
United Oil: | San Pedro, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,086
Buildings and Improvements	675
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,761
Accumulated Depreciation	5
United Oil: | Santa Clarita, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	4,787
Buildings and Improvements	733
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,520
Accumulated Depreciation	5
United Oil: | Sun City, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,136
Buildings and Improvements	1,421
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,557
Accumulated Depreciation	0
United Oil: | Valley Center, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,680
Buildings and Improvements	1,606
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,286
Accumulated Depreciation	19
United Oil: | Van Nuys (Van Nuys), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,439
Buildings and Improvements	902
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,341
Accumulated Depreciation	7
United Oil: | Van Nuys (Victory), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,786
Buildings and Improvements	684
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,470
Accumulated Depreciation	5
United Oil: | Van Nuys (Woodman), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	3,980
Buildings and Improvements	741
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,721
Accumulated Depreciation	5
United Oil: | Vista (Civic Center), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,063
Buildings and Improvements	334
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,397
Accumulated Depreciation	2
United Oil: | Vista (Vista), CA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,028
Buildings and Improvements	418
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,446
Accumulated Depreciation	3
United Oil: | Whittier, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,629
Buildings and Improvements	985
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,614
Accumulated Depreciation	7
United Oil: | Wilmington, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,615
Buildings and Improvements	1,145
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,760
Accumulated Depreciation	8
United Oil: | Woodland Hills, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	4,946
Buildings and Improvements	647
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,593
Accumulated Depreciation	5
University Marketplace: | Marion, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	850
Buildings and Improvements	6,722
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,572
Accumulated Depreciation	411
Village at Hereford Farms: | Grovetown , GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	1,222
Buildings and Improvements	5,912
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,134
Accumulated Depreciation	48
Wal-Mart: | Perry, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,270
Buildings and Improvements	11,053
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	13,323
Accumulated Depreciation	483
Wal-Mart: | Tallahassee, FL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	8,157
Land	14,823
Buildings and Improvements	0
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	14,823
Accumulated Depreciation	0
Wal-Mart: | York, SC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,913
Buildings and Improvements	11,410
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	13,323
Accumulated Depreciation	496
Walgreens: | Andover, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	630
Buildings and Improvements	3,057
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,687
Accumulated Depreciation	109
Walgreens: | Arkadelphia, AR
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,225
Land	787
Buildings and Improvements	4,626
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,413
Accumulated Depreciation	14
Walgreens: | Austintown, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	637
Buildings and Improvements	4,173
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,810
Accumulated Depreciation	145
Walgreens: | Bartlett (5950 Stage), TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,150
Land	1,086
Buildings and Improvements	4,321
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,407
Accumulated Depreciation	13
Walgreens: | Bartlett (6697 Stage), TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,150
Land	799
Buildings and Improvements	4,608
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,407
Accumulated Depreciation	14
Walgreens: | Birmingham, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	985
Buildings and Improvements	4,938
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,923
Accumulated Depreciation	215
Walgreens: | Birmingham (Green Springs), AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,300
Land	738
Buildings and Improvements	4,844
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,582
Accumulated Depreciation	15
Walgreens: | Blair, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	2,466
Land	335
Buildings and Improvements	3,544
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,879
Accumulated Depreciation	243
Walgreens: | Chicopee, MA
Real Estate and Accumulated Depreciation [Line Items]
Land	2,094
Buildings and Improvements	4,945
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,039
Accumulated Depreciation	26
Walgreens: | Colerain Township, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,200
Land	1,991
Buildings and Improvements	3,470
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,461
Accumulated Depreciation	10
Walgreens: | Connelly Springs, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,349
Buildings and Improvements	3,628
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,977
Accumulated Depreciation	129
Walgreens: | Cullman, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,542
Land	1,292
Buildings and Improvements	3,779
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,071
Accumulated Depreciation	183
Walgreens: | Danville, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	989
Buildings and Improvements	4,547
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,536
Accumulated Depreciation	248
Walgreens: | Dearborn Heights, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	2,236
Buildings and Improvements	3,411
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,647
Accumulated Depreciation	129
Walgreens: | Decatur, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,625
Land	631
Buildings and Improvements	4,161
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,792
Accumulated Depreciation	14
Walgreens: | Dyersburg, TN
Real Estate and Accumulated Depreciation [Line Items]
Land	555
Buildings and Improvements	4,088
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,643
Accumulated Depreciation	57
Walgreens: | East Chicago, IN
Real Estate and Accumulated Depreciation [Line Items]
Land	331
Buildings and Improvements	5,242
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,573
Accumulated Depreciation	49
Walgreens: | Enterprise, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,575
Land	839
Buildings and Improvements	3,844
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,683
Accumulated Depreciation	12
Walgreens: | Evansville, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,040
Land	812
Buildings and Improvements	4,439
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,251
Accumulated Depreciation	14
Walgreens: | Florence, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,125
Land	1,086
Buildings and Improvements	4,206
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,292
Accumulated Depreciation	13
Walgreens: | Forrest City, AR
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,825
Land	643
Buildings and Improvements	5,287
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,930
Accumulated Depreciation	16
Walgreens: | Fort Madison, IA
Real Estate and Accumulated Depreciation [Line Items]
Land	514
Buildings and Improvements	3,723
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,237
Accumulated Depreciation	124
Walgreens: | Franklin, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,200
Land	1,457
Buildings and Improvements	4,075
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,532
Accumulated Depreciation	13
Walgreens: | Fraser, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	518
Buildings and Improvements	4,525
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,043
Accumulated Depreciation	74
Walgreens: | Hazelwood, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	2,505
Buildings and Improvements	4,866
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	7,371
Accumulated Depreciation	158
Walgreens: | Hickory, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,100
Buildings and Improvements	4,241
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,341
Accumulated Depreciation	207
Walgreens: | Hobart, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,875
Land	594
Buildings and Improvements	4,526
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,120
Accumulated Depreciation	15
Walgreens: | Hockessin, DE
Real Estate and Accumulated Depreciation [Line Items]
Land	1,586
Buildings and Improvements	3,555
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,141
Accumulated Depreciation	104
Walgreens: | Huntsville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,273
Land	1,931
Buildings and Improvements	2,457
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,388
Accumulated Depreciation	122
Walgreens: | Kannapolis, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	1,480
Buildings and Improvements	5,031
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,511
Accumulated Depreciation	200
Walgreens: | Knoxville, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,725
Land	1,139
Buildings and Improvements	3,750
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,889
Accumulated Depreciation	11
Walgreens: | Las Vegas, NV
Real Estate and Accumulated Depreciation [Line Items]
Land	2,325
Buildings and Improvements	3,262
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,587
Accumulated Depreciation	110
Walgreens: | Lawton, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	860
Buildings and Improvements	2,539
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,399
Accumulated Depreciation	96
Walgreens: | Little Rock (Main), AR
Real Estate and Accumulated Depreciation [Line Items]
Land	548
Buildings and Improvements	4,676
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,224
Accumulated Depreciation	64
Walgreens: | Little Rock (Bowman), AR
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,100
Land	1,115
Buildings and Improvements	4,248
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,363
Accumulated Depreciation	13
Walgreens: | Lubbock (82nd), TX
Real Estate and Accumulated Depreciation [Line Items]
Land	565
Buildings and Improvements	3,257
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,822
Accumulated Depreciation	184
Walgreens: | Lubbock (Indiana), TX
Real Estate and Accumulated Depreciation [Line Items]
Land	531
Buildings and Improvements	2,951
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,482
Accumulated Depreciation	165
Walgreens: | Malvern, AR
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,165
Land	1,007
Buildings and Improvements	4,325
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,332
Accumulated Depreciation	14
Walgreens: | Memphis, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,775
Land	776
Buildings and Improvements	4,166
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,942
Accumulated Depreciation	13
Walgreens: | Metropolis, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	284
Buildings and Improvements	4,991
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,275
Accumulated Depreciation	47
Walgreens: | Michigan City, IN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,200
Land	567
Buildings and Improvements	3,615
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,182
Accumulated Depreciation	12
Walgreens: | Mobile, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,603
Buildings and Improvements	3,161
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,764
Accumulated Depreciation	93
Walgreens: | Montgomery, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,110
Buildings and Improvements	2,949
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,059
Accumulated Depreciation	203
Walgreens: | Mount Washington, KY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,125
Land	545
Buildings and Improvements	4,825
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,370
Accumulated Depreciation	16
Walgreens: | Oakland, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,750
Land	689
Buildings and Improvements	4,226
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,915
Accumulated Depreciation	13
Walgreens: | Oklahoma City, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,950
Land	1,356
Buildings and Improvements	3,869
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,225
Accumulated Depreciation	13
Walgreens: | Olathe, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,230
Land	1,266
Buildings and Improvements	4,047
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,313
Accumulated Depreciation	12
Walgreens: | Phoenix, AZ
Real Estate and Accumulated Depreciation [Line Items]
Land	2,216
Buildings and Improvements	1,830
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,046
Accumulated Depreciation	88
Walgreens: | Pine Bluff, AR
Real Estate and Accumulated Depreciation [Line Items]
Land	248
Buildings and Improvements	5,229
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,477
Accumulated Depreciation	174
Walgreens: | Ralston (La Vista), NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,265
Land	967
Buildings and Improvements	4,620
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,587
Accumulated Depreciation	14
Walgreens: | River Falls, WI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,200
Land	634
Buildings and Improvements	5,137
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,771
Accumulated Depreciation	16
Walgreens: | Roanoke, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	677
Buildings and Improvements	3,825
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,502
Accumulated Depreciation	61
Walgreens: | Sacramento, CA
Real Estate and Accumulated Depreciation [Line Items]
Land	324
Buildings and Improvements	2,669
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,993
Accumulated Depreciation	38
Walgreens: | Sioux Falls, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,625
Land	1,138
Buildings and Improvements	3,784
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,922
Accumulated Depreciation	12
Walgreens: | Springdale, AR
Real Estate and Accumulated Depreciation [Line Items]
Land	1,172
Buildings and Improvements	4,509
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,681
Accumulated Depreciation	139
Walgreens: | Springfield, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	830
Buildings and Improvements	3,619
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,449
Accumulated Depreciation	244
Walgreens: | St. Charles, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,600
Land	1,644
Buildings and Improvements	4,364
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,008
Accumulated Depreciation	14
Walgreens: | St. Louis (Lemay Ferry), MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,600
Land	1,432
Buildings and Improvements	4,556
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,988
Accumulated Depreciation	14
Walgreens: | St. Louis (Lusher), MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,790
Land	1,414
Buildings and Improvements	4,622
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,036
Accumulated Depreciation	15
Walgreens: | Suffolk, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,261
Buildings and Improvements	3,461
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,722
Accumulated Depreciation	246
Walgreens: | Sun City, AZ
Real Estate and Accumulated Depreciation [Line Items]
Land	837
Buildings and Improvements	2,484
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,321
Accumulated Depreciation	42
Walgreens: | Tarboro, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	755
Buildings and Improvements	3,634
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,389
Accumulated Depreciation	35
Walgreens: | Toledo, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	4,325
Land	1,993
Buildings and Improvements	3,445
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,438
Accumulated Depreciation	12
Walgreens: | Troy, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	547
Buildings and Improvements	4,076
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,623
Accumulated Depreciation	47
Walgreens: | Tulsa, OK
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	3,350
Land	1,078
Buildings and Improvements	3,452
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,530
Accumulated Depreciation	11
Walgreens/KeyBank: | Newburgh, NY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	5,000
Land	3,280
Buildings and Improvements	5,441
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	8,721
Accumulated Depreciation	176
Wallace Commons: | Salisbury, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,590
Land	3,265
Buildings and Improvements	8,058
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,323
Accumulated Depreciation	439
Wallace Commons II: | Salisbury, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	2,231
Buildings and Improvements	8,479
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	10,710
Accumulated Depreciation	209
Warrenton Highlands: | Warrenton, OR
Real Estate and Accumulated Depreciation [Line Items]
Land	2,139
Buildings and Improvements	5,774
Total Adjustment to Basis	37
Gross Amount at Which Carried At December 31, 2014	7,950
Accumulated Depreciation	$ 302

XML

Supplemental Cash Flow Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Schedule of cash flow, supplemental disclosures

Supplemental cash flow disclosures for the years ended December 31, 2014, 2013 and 2012 are as follows (in thousands):

	Year Ended December 31,
	2014			2013			2012
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	$	16,189		$	10,569		$	1,456
Accrued other offering costs due to affiliates	$	—		$	4,937		$	1,661
Accrued capital expenditures	$	7,721		$	1,760		$	2,815
Common stock issued through distribution reinvestment plan	$	104,261		$	25,702		$	1,964
Net unrealized loss on interest rate swaps	$	(1,805	)	$	(2,252	)	$	—
Contingent consideration recorded upon property acquisitions	$	5,342		$	553		$	708
Fair value of assumed bond obligations	$	25,979		$	—		$	591
Supplemental Cash Flow Disclosures:
Interest paid	$	31,159		$	17,474		$	783

XML

Stockholders' Equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended			3 Months Ended	0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Aug. 11, 2010	Dec. 19, 2013
Equity, Class of Treasury Stock [Line Items]
Common stock shares registered dividend reinvestment plan	26,000,000
Common stock, shares authorized (in shares)	490,000,000	490,000,000	490,000,000	490,000,000
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000	10,000,000	10,000,000
Common stock, var value (in dollars per share)	$ 0.01	$ 0.01		0.01
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01		0.01
Share price (in dollars per share)	$ 10
Common stock issued through distribution reinvestment plan	$ 104,261	$ 25,702	$ 1,964
Redemptions of common stock	(10,849)	(1,182)
Stock repurchase program, required holding period	1 year
Stock redemption program, redemption price per share, percentage of amount paid per share, after one year	95.00%
Stock redemption program, plan redemption price per share, percentage of amount paid per share, after two year	97.50%
Stock redemption program, plan redemption price per share, percentage of amount paid per share, after three year	100.00%
Stock repurchase program, termination notice period	30 days
Stock repurchased and retired during period, shares	1,100,000	123,000
Distribution reinvestment plan
Equity, Class of Treasury Stock [Line Items]
Common stock shares registered dividend reinvestment plan						26,000,000
Dividend reinvestment plan, reinvestment share price	$ 9.50
Dividend reinvestment plan, termination notice period	10 days
Shares issued pursuant to a distribution reinvestment plan (in shares)	11,000,000	2,700,000	207,000
Common stock issued through distribution reinvestment plan	104,300	25,700	2,000
Redemptions of common stock	(10,600)	(1,200)
Maximum
Equity, Class of Treasury Stock [Line Items]
Stock redemption program, number of shares authorized to be repurchased, percentage of weighted average number of shares outstanding	5.00%			1.25%
Stock redemption program, redemption priority, shares	250
Common Stock
Equity, Class of Treasury Stock [Line Items]
Issuance of common stock, shares (in shares)	95,036,480	181,205,760	29,923,549		20,000
Share price (in dollars per share)					$ 10.00
Redemptions of common stock	$ (11)

XML

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAX DISCLOSURE

INCOME TAXES

For federal income tax purposes, distributions to stockholders are characterized as ordinary dividends, capital gain distributions, or nontaxable distributions. Nontaxable distributions will reduce U.S stockholders’ basis (but not below zero) in their shares. The following table shows the character of the distributions the Company paid on a percentage basis for the years ended December 31, 2014, 2013 and 2012:

	Year Ended December 31,
Character of Distributions (Unaudited):	2014		2013		2012
Ordinary dividends	47	%	60	%	72	%
Nontaxable distributions	53	%	40	%	28	%
Total	100	%	100	%	100	%

As of December 31, 2014, the tax basis carrying value of the Company’s land and depreciable real estate assets was $3.9 billion. During the years ended December 31, 2014, 2013 and 2012, the Company distributed as dividends to its shareholders 100% of its taxable income for federal income tax purposes. Accordingly, no provision for federal income taxes related to such taxable income was recorded on the Company’s financial statements. During the years ended December 31, 2014, 2013 and 2012, the Company incurred state and local income and franchise taxes of $1.3 million, $473,000, and $113,000, respectively, which were recorded in general and administrative expenses in the consolidated statements of operations.

The Company had no unrecognized tax benefits as of or during the years ended December 31, 2014 and 2013. Any interest and penalties related to unrecognized tax benefits would be recognized within the provision for income taxes in the accompanying consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, as well as various state jurisdictions, and is subject to routine examinations by the respective tax authorities.

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

Basis of accounting

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements.

Principles of consolidation and basis of presentation

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances have been combined in the consolidated statements of operations and statements of cash flows.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns.  If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity (“VIE”). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance, its form of ownership interest, its representation on the entity’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate its joint venture arrangements based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture arrangement and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company may be the primary beneficiary. As of December 31, 2014, the Company determined that it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. As of December 31, 2014, the Consolidated Joint Venture held real estate assets with an aggregate book value of $18.9 million. As of December 31, 2014 and December 31, 2013, the Company was not required to consolidate the Unconsolidated Joint Venture as the applicable joint venture entity did not qualify as a VIE and the Company did not meet the control requirement for consolidation.

Use of estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Investment in and valuation of real estate assets

Investment in and Valuation of Real Estate Assets

Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition-related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred.

The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows:

Buildings	40 years
Tenant improvements	Lesser of useful life or lease term
Intangible lease assets	Lease term

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2014, 2013, or 2012.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets.

When a real estate asset is identified by the Company as held for sale, the Company will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. There were no assets identified as held for sale as of December 31, 2014, 2013, or 2012.

Allocation of purchase price of real estate assets

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition-related expenses are expensed as incurred. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The Company obtains an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market lease intangibles relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The Company has acquired, and may continue to acquire, certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events (the “Contingent Payments”). Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrowed funds to the Company or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair values, and any changes to the estimated fair values, subsequent to acquisition, are reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management.

The Company estimates the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable are initially recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance is amortized to interest expense over the term of the respective mortgage note payable.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could impact the Company’s results of operations.

Investment in unconsolidated joint ventures

Investment in Unconsolidated Joint Venture

The Company accounts for its unconsolidated joint venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over operating and financial policies of this investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the Unconsolidated Joint Venture’s earnings and distributions. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Unconsolidated Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate the Unconsolidated Joint Venture for potential impairment and determine if the carrying amount of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an Unconsolidated Joint Venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment indicators were identified and no impairment losses were recorded related to the Unconsolidated Joint Venture during the years ended December 31, 2014 and December 31, 2013.

Cash and cash equivalents

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturities when purchased of three months or less to be cash equivalents. The Company considers investments in highly liquid money market accounts to be cash equivalents.

Restricted cash and escrows

Restricted Cash and Escrows

Included in restricted cash was $2.7 million and $2.6 million held by lenders in lockbox accounts, as of December 31, 2014 and 2013. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $1.9 million and $513,000 held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement as of December 31, 2014 and 2013, respectively. The Company also had $5.1 million of escrowed investor proceeds for which shares of common stock had not been issued as of December 31, 2013.

Rents and tenant receivables

Rents and Tenant Receivables

Rents and tenant receivables primarily include amounts to be collected in future periods related to the recognition of rental income on a straight-line basis over the lease term and cost recoveries due from tenants. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy, if any, are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. The Company records allowances for those balances that the Company deems to be uncollectible, including any amounts relating to straight-line rent receivables.

Prepaid expenses

Prepaid Expenses

Prepaid expenses include expenses paid as of the balance sheet date that relate to future periods and will be expensed or reclassified to another account during the period to which the costs relate. Any amounts with no future economic benefit are charged to earnings when identified.

Deferred financing costs

Deferred Financing Costs

Deferred financing costs are capitalized and amortized on a straight-line basis over the term of the related financing arrangement, which approximates the effective interest method. If a note payable is prepaid, any unamortized deferred financing costs related to the note payable would be expensed. Amortization of deferred financing costs was $3.2 million and $3.1 million for the years ended December 31, 2014 and 2013, respectively, and was included in interest expense in the consolidated statements of operations.

Concentration of credit risk

Concentration of Credit Risk

As of December 31, 2014, the Company had cash on deposit, including restricted cash, at ten financial institutions, in three of which the Company had deposits in excess of federally insured levels totaling $58.7 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits.

As of December 31, 2014, no single tenant accounted for greater than 10% of the Company’s 2014 gross annualized rental revenues. The Company had certain geographic concentrations in its property holdings. In particular, as of December 31, 2014, 75 of the Company’s properties were located in California and 92 were located in Texas, which accounted for 12% and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. In addition, the Company had tenants in the discount store and pharmacy industries, which comprised 15% and 13%, respectively, of the Company’s 2014 gross annualized rental revenues.

Offering and related costs

Offering and Related Costs

CR IV Advisors funded all of the organization and offering costs on the Company’s behalf (excluding selling commissions and dealer manager fees) and was reimbursed for such costs up to 2.0% of aggregate gross proceeds from the Offering. As of December 31, 2014 and 2013, CR IV Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 2.0% of aggregate gross proceeds from the Offering. When recorded by the Company, organization costs are expensed as incurred and offering costs, which include items such as legal and accounting fees, marketing and personnel, promotional and printing costs are recorded as a reduction of capital in excess of par value, along with selling commissions and dealer manager fees in the period in which they become payable.

Due to affiliates

Due to Affiliates

Certain affiliates of CR IV Advisors received fees, reimbursements and compensation in connection with services provided relating to the Offering and the acquisition, management, financing and leasing of the properties of the Company.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of the derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss). The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations.

Redeemable common stock

Redeemable Common Stock

Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in its consolidated balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value.

Interest

Interest

Interest is charged to interest expense as it accrues. No interest costs were capitalized during the years ended December 31, 2014, 2013 or 2012.

Distributions payable and distribution policy

Distributions Payable and Distribution Policy

In order to maintain its status as a REIT, the Company is required to, among other things, make distributions each taxable year equal to at least 90% of its taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). To the extent that funds are available, the Company intends to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of applicable record dates.

The Board authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2014 and ending on December 31, 2014. In addition, our board of directors authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2015 and ending on June 30, 2015. As of December 31, 2014, the Company had distributions payable of $16.2 million.

Reportable segments

Reportable Segments

The Company’s commercial real estate investments primarily consist of income-producing necessity retail properties that are single-tenant or multi-tenant “power centers”, which are leased to national and regional creditworthy tenants under long-term net leases, and are strategically located throughout the United States and U.S. protectorates. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company evaluates operating performance on an overall portfolio level; therefore, the Company’s properties are one reportable segment.

Revenue recognition

Revenue Recognition

Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred.

Earnings (loss) Per Share

Earnings (Loss) Per Share

Earnings (loss) per share are calculated based on the weighted average number of common shares outstanding during each period presented. Diluted income (loss) per share considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the years ended December 31, 2014, 2013 or 2012.

Income taxes

Income Taxes

The Company elected to be taxed, and currently qualifies, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2012. The Company will generally not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company maintains its qualification for taxation as a REIT, it or its subsidiaries may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Recent accounting pronouncements

Recent Accounting Pronouncements

In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s consolidated unaudited financial statements because the Company did not have any discontinued operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The Company does not believe ASU 2014-15, when effective, will have a material impact on the Company’s consolidated financial statements because the Company currently does not have any conditions that give rise to substantial doubt about its ability to continue as a going concern.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require the Company to revise its documentation regarding the consolidation or deconsolidation of such entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of the new standard on its consolidated financial statements.

XML

Commitments and Contingencies (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014 Property
Capital addition purchase commitments
Unrecorded Unconditional Purchase Obligation [Line Items]
Ownership interest acquired	100.00%
Number of businesses acquired (in properties)	36
Aggregate purchase price	$ 86.4
Escrow deposit, property acquisition	4.8
Escrow deposit, potential forfeiture amount	4.8
Purchase agreement for twenty-five properties
Unrecorded Unconditional Purchase Obligation [Line Items]
Number of businesses acquired (in properties)	22
Number of remaining properties committed to purchase	3
Number of additional purchase agreements	1
Number of properties committed to purchase	25
Long-term purchase committment, contract non-purchase, amount	$ 10.0

XML

Summary of Significant Accounting Policies - Narative (Details) (USD $)	12 Months Ended			3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Mar. 30, 2015	Jun. 27, 2014
Valuation of real estate and related assets [Line Items]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Real Estate Assets, Aggregate Book Value	$ 18,900,000
Equity attributable to noncontrolling interest					2,076,000
Restricted cash	4,560,000	8,193,000
Due from affiliates	470,000	0
Amortization of deferred financing costs	3,201,000	3,056,000	524,000
Dividend, common stock and preferred stock, number of days in the calendar year for the daily distribution	365 days
Common stock and preferred stock, dividends, daily amount per share authorized (in dollars per share)	$ 0.001712523
Dividends, yield	6.25%
Share price (in dollars per share)	$ 10
Distributions payable	16,189,000	10,569,000	1,456,000
Advisors
Valuation of real estate and related assets [Line Items]
Due from affiliates	470,000	0
Advisors | Other organization and offering expenses | Maximum
Valuation of real estate and related assets [Line Items]
Organization and offering expense	2.00%
Restricted cash, investor proceeds for which shares of common stock had not been issued
Valuation of real estate and related assets [Line Items]
Restricted cash		5,100,000
Restricted cash, rents from certain encumbered properties
Valuation of real estate and related assets [Line Items]
Restricted cash	2,700,000	2,600,000
Restricted cash, tenant and capital improvements, leasing commissions, repairs and maintenance and other lender reserves for certain properties
Valuation of real estate and related assets [Line Items]
Restricted cash	$ 1,900,000	$ 513,000
Building
Valuation of real estate and related assets [Line Items]
Acquired real estate asset, useful life	40 years
Subsequent event
Valuation of real estate and related assets [Line Items]
Dividend, common stock and preferred stock, number of days in the calendar year for the daily distribution				365 days
Common stock and preferred stock, dividends, daily amount per share authorized (in dollars per share)				$ 0.001712523
Dividends, yield				6.25%
Share price (in dollars per share)				$ 10

XML

Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 9,181	$ (4,147)	$ 3,190	$ 2,946	$ (10,828)	$ (6,588)	$ (11,669)	$ (3,795)	$ 11,170	$ (32,880)	$ (13,744)
Net loss allocated to noncontrolling interest									(20)	0	0
Net income (loss) attributable to the Company	9,196	(4,156)	3,204	2,946	(10,828)	(6,588)	(11,669)	(3,795)	11,190	(32,880)	(13,744)
Other comprehensive loss:
Unrealized loss on interest rate swaps									(1,805)	(2,252)	0
Total comprehensive income (loss)									$ 9,385	$ (35,132)	$ (13,744)

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year balances have been combined in the consolidated statements of operations and statements of cash flows.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns.  If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity (“VIE”). A VIE is broadly defined as an entity where either (1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance or (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. The Company consolidates any VIEs when it is determined to be the primary beneficiary of the VIE’s operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limited to, the Company’s ability to direct the activities that most significantly impact the entity’s economic performance, its form of ownership interest, its representation on the entity’s governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity.

The Company continually evaluates the need to consolidate its joint venture arrangements based on standards set forth in GAAP. In determining whether the Company has a controlling interest in a joint venture arrangement and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, power to make decisions and contractual and substantive participating rights of the partners/members as well as whether the entity is a VIE for which the Company may be the primary beneficiary. As of December 31, 2014, the Company determined that it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. As of December 31, 2014, the Consolidated Joint Venture held real estate assets with an aggregate book value of $18.9 million. As of December 31, 2014 and December 31, 2013, the Company was not required to consolidate the Unconsolidated Joint Venture as the applicable joint venture entity did not qualify as a VIE and the Company did not meet the control requirement for consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Investment in and Valuation of Real Estate Assets

Real estate assets are stated at cost, less accumulated depreciation and amortization. Amounts capitalized to real estate assets consist of the cost of acquisition, excluding acquisition-related expenses, construction and any tenant improvements, major improvements and betterments that extend the useful life of the real estate assets and leasing costs. All repairs and maintenance are expensed as incurred.

The Company is required to make subjective assessments as to the useful lives of its depreciable assets. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life of the assets. Real estate assets, other than land, are depreciated or amortized on a straight-line basis. The estimated useful lives of the Company’s real estate assets by class are generally as follows:

Buildings	40 years
Tenant improvements	Lesser of useful life or lease term
Intangible lease assets	Lease term

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to, bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rental concessions and other factors, a significant decrease in a property’s revenues due to lease terminations, vacancies, co-tenancy clauses, reduced lease rates or other circumstances. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. No impairment indicators were identified and no impairment losses were recorded during the years ended December 31, 2014, 2013, or 2012.

When developing estimates of expected future cash flows, the Company makes certain assumptions regarding future market rental income amounts subsequent to the expiration of current lease agreements, property operating expenses, terminal capitalization and discount rates, the expected number of months it takes to re-lease the property, required tenant improvements and the number of years the property will be held for investment. The use of alternative assumptions in estimating expected future cash flows could result in a different determination of the property’s expected future cash flows and a different conclusion regarding the existence of an impairment, the extent of such loss, if any, as well as the fair value of the real estate assets.

When a real estate asset is identified by the Company as held for sale, the Company will cease depreciation and amortization of the assets related to the property and estimate the fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would be recorded to reflect the estimated fair value of the property, net of selling costs. There were no assets identified as held for sale as of December 31, 2014, 2013, or 2012.

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and identified intangible assets and liabilities, consisting of the value of above market and below market leases and the value of in-place leases, based in each case on their respective fair values. Acquisition-related expenses are expensed as incurred. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The Company obtains an independent appraisal for each real property acquisition. The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The fair values of above market and below market lease intangibles are recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) an estimate of fair market lease rates for the corresponding in-place leases, which is generally obtained from independent appraisals, measured over a period equal to the remaining non-cancelable term of the lease including any bargain renewal periods, with respect to a below market lease. The above market and below market lease intangibles are capitalized as intangible lease assets or liabilities, respectively. Above market leases are amortized as a reduction to rental income over the remaining terms of the respective leases. Below market leases are amortized as an increase to rental income over the remaining terms of the respective leases, including any bargain renewal periods. In considering whether or not the Company expects a tenant to execute a bargain renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition, such as the financial strength of the tenant, remaining lease term, the tenant mix of the leased property, the Company’s relationship with the tenant and the availability of competing tenant space. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market or below market lease intangibles relating to that lease would be recorded as an adjustment to rental income.

The fair values of in-place leases include estimates of direct costs associated with obtaining a new tenant and opportunity costs associated with lost rental and other property income, which are avoided by acquiring a property with an in-place lease. Direct costs associated with obtaining a new tenant include commissions and other direct costs and are estimated in part by utilizing information obtained from independent appraisals and management’s consideration of current market costs to execute a similar lease. The intangible values of opportunity costs, which are calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease, are capitalized as intangible lease assets and are amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed.

The Company has acquired, and may continue to acquire, certain properties subject to contingent consideration arrangements that may obligate the Company to pay additional consideration to the seller based on the outcome of future events (the “Contingent Payments”). Additionally, the Company may acquire certain properties for which it funds certain contingent consideration amounts into an escrow account pending the outcome of certain future events. The outcome may result in the release of all or a portion of the escrowed funds to the Company or the seller or a combination thereof. Contingent consideration arrangements are based on a predetermined formula and have set time periods regarding the obligation to make future payments, including funds released to the seller from escrow accounts, or the right to receive escrowed funds as set forth in the respective purchase and sale agreement. Contingent consideration arrangements, including amounts funded through an escrow account, are recorded upon acquisition of the respective property at their estimated fair values, and any changes to the estimated fair values, subsequent to acquisition, are reflected in the accompanying consolidated statements of operations. The determination of the amount of contingent consideration arrangements is based on the probability of several possible outcomes as identified by management.

The Company estimates the fair value of assumed mortgage notes payable based upon indications of current market pricing for similar types of debt financing with similar maturities. Assumed mortgage notes payable are initially recorded at their estimated fair value as of the assumption date, and any difference between such estimated fair value and the mortgage note’s outstanding principal balance is amortized to interest expense over the term of the respective mortgage note payable.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could impact the Company’s results of operations.

Noncontrolling Interest-Redeemable Interest in Consolidated Joint Venture

On June 27, 2014, the Company completed the formation of the Consolidated Joint Venture. Pursuant to the joint venture agreement, the joint venture partner has a right to exercise an option after two years whereby the Company will be required to purchase the ownership interest of the joint venture partner at fair market value. The Company determined it had a controlling interest in the Consolidated Joint Venture and therefore met the GAAP requirements for consolidation. The Company recorded the noncontrolling interest of $2.1 million as temporary equity, in the mezzanine section of the balance sheet, due to the redemption option existing outside the control of the Company.

Investment in Unconsolidated Joint Venture

The Company accounts for its unconsolidated joint venture arrangement using the equity method of accounting as the Company has the ability to exercise significant influence, but not control, over operating and financial policies of this investment. The equity method of accounting requires the investment to be initially recorded at cost and subsequently adjusted for the Company’s share of equity in the Unconsolidated Joint Venture’s earnings and distributions. The Company is required to determine whether an event or change in circumstances has occurred that may have a significant adverse effect on the fair value of its investment in the Unconsolidated Joint Venture. If an event or change in circumstance has occurred, the Company is required to evaluate the Unconsolidated Joint Venture for potential impairment and determine if the carrying amount of its investment exceeds its fair value. An impairment charge is recorded when an impairment is deemed to be other-than-temporary. To determine whether an impairment is other-than-temporary, the Company considers whether it has the ability and intent to hold the investment until the carrying amount is fully recovered. The evaluation of an investment in an Unconsolidated Joint Venture for potential impairment requires the Company’s management to exercise significant judgment and to make certain assumptions. The use of different judgments and assumptions could result in different conclusions. No impairment indicators were identified and no impairment losses were recorded related to the Unconsolidated Joint Venture during the years ended December 31, 2014 and December 31, 2013.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with maturities when purchased of three months or less to be cash equivalents. The Company considers investments in highly liquid money market accounts to be cash equivalents.

Restricted Cash and Escrows

Included in restricted cash was $2.7 million and $2.6 million held by lenders in lockbox accounts, as of December 31, 2014 and 2013. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $1.9 million and $513,000 held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the respective lender’s loan agreement as of December 31, 2014 and 2013, respectively. The Company also had $5.1 million of escrowed investor proceeds for which shares of common stock had not been issued as of December 31, 2013.

Rents and Tenant Receivables

Rents and tenant receivables primarily include amounts to be collected in future periods related to the recognition of rental income on a straight-line basis over the lease term and cost recoveries due from tenants. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer creditworthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy, if any, are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. The Company records allowances for those balances that the Company deems to be uncollectible, including any amounts relating to straight-line rent receivables.

Prepaid Expenses

Prepaid expenses include expenses paid as of the balance sheet date that relate to future periods and will be expensed or reclassified to another account during the period to which the costs relate. Any amounts with no future economic benefit are charged to earnings when identified.

Due from Affiliates

As of December 31, 2014, $470,000 was due from CR IV Advisors and its affiliates primarily related to amounts paid by the Company on dead deals which are reimbursable by the advisor. As of December 31, 2013, there was no amount due from CR IV Advisors and its affiliates.

Deferred Financing Costs

Deferred financing costs are capitalized and amortized on a straight-line basis over the term of the related financing arrangement, which approximates the effective interest method. If a note payable is prepaid, any unamortized deferred financing costs related to the note payable would be expensed. Amortization of deferred financing costs was $3.2 million and $3.1 million for the years ended December 31, 2014 and 2013, respectively, and was included in interest expense in the consolidated statements of operations.

Concentration of Credit Risk

As of December 31, 2014, the Company had cash on deposit, including restricted cash, at ten financial institutions, in three of which the Company had deposits in excess of federally insured levels totaling $58.7 million; however, the Company has not experienced any losses in such accounts. The Company limits significant cash deposits to accounts held by financial institutions with high credit standing; therefore, the Company believes it is not exposed to any significant credit risk on its cash deposits.

As of December 31, 2014, no single tenant accounted for greater than 10% of the Company’s 2014 gross annualized rental revenues. The Company had certain geographic concentrations in its property holdings. In particular, as of December 31, 2014, 75 of the Company’s properties were located in California and 92 were located in Texas, which accounted for 12% and 10%, respectively, of the Company’s 2014 gross annualized rental revenues. In addition, the Company had tenants in the discount store and pharmacy industries, which comprised 15% and 13%, respectively, of the Company’s 2014 gross annualized rental revenues.

Offering and Related Costs

CR IV Advisors funded all of the organization and offering costs on the Company’s behalf (excluding selling commissions and dealer manager fees) and was reimbursed for such costs up to 2.0% of aggregate gross proceeds from the Offering. As of December 31, 2014 and 2013, CR IV Advisors had paid organization and offering costs in excess of the 2.0% in connection with the Offering. These excess costs were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded 2.0% of aggregate gross proceeds from the Offering. When recorded by the Company, organization costs are expensed as incurred and offering costs, which include items such as legal and accounting fees, marketing and personnel, promotional and printing costs are recorded as a reduction of capital in excess of par value, along with selling commissions and dealer manager fees in the period in which they become payable.

Due to Affiliates

Certain affiliates of CR IV Advisors received fees, reimbursements and compensation in connection with services provided relating to the Offering and the acquisition, management, financing and leasing of the properties of the Company.

Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments at fair value. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The change in fair value of the effective portion of the derivative instrument that is designated as a hedge is recorded as other comprehensive income (loss). The changes in fair value for derivative instruments that are not designated as hedges or that do not meet the hedge accounting criteria are recorded as a gain or loss to operations.

Redeemable Common Stock

Under the Company’s share redemption program, the Company’s requirement to redeem shares of its outstanding common stock is limited, among other things, to the net proceeds received by the Company from the sale of shares under the DRIP, net of shares redeemed to date. The Company records amounts that are redeemable under the share redemption program as redeemable common stock outside of permanent equity in its consolidated balance sheets. Changes in the amount of redeemable common stock from period to period are recorded as an adjustment to capital in excess of par value.

Interest

Interest is charged to interest expense as it accrues. No interest costs were capitalized during the years ended December 31, 2014, 2013 or 2012.

Distributions Payable and Distribution Policy

In order to maintain its status as a REIT, the Company is required to, among other things, make distributions each taxable year equal to at least 90% of its taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). To the extent that funds are available, the Company intends to pay regular distributions to stockholders. Distributions are paid to stockholders of record as of applicable record dates.

The Board authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2014 and ending on December 31, 2014. In addition, our board of directors authorized a daily distribution, based on 365 days in the calendar year, of $0.001712523 per share (which equates to 6.25% on an annualized basis calculated at the current rate, assuming a $10.00 per share purchase price) for stockholders of record as of the close of business on each day of the period commencing on January 1, 2015 and ending on June 30, 2015. As of December 31, 2014, the Company had distributions payable of $16.2 million.

Reportable Segments

The Company’s commercial real estate investments primarily consist of income-producing necessity retail properties that are single-tenant or multi-tenant “power centers”, which are leased to national and regional creditworthy tenants under long-term net leases, and are strategically located throughout the United States and U.S. protectorates. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. The Company evaluates operating performance on an overall portfolio level; therefore, the Company’s properties are one reportable segment.

Revenue Recognition

Certain properties have leases where minimum rental payments increase during the term of the lease. The Company records rental income for the full term of each lease on a straight-line basis. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. The Company defers the recognition of contingent rental income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred.

Earnings (Loss) Per Share

Earnings (loss) per share are calculated based on the weighted average number of common shares outstanding during each period presented. Diluted income (loss) per share considers the effect of any potentially dilutive share equivalents, of which the Company had none for each of the years ended December 31, 2014, 2013 or 2012.

Income Taxes

The Company elected to be taxed, and currently qualifies, as a REIT for federal income tax purposes under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2012. The Company will generally not be subject to federal corporate income tax to the extent it distributes its taxable income to its stockholders, and so long as it, among other things, distributes at least 90% of its annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains). REITs are subject to a number of other organizational and operational requirements. Even if the Company maintains its qualification for taxation as a REIT, it or its subsidiaries may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Recent Accounting Pronouncements

In April 2014, the U.S. Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which amends the reporting requirements for discontinued operations by updating the definition of a discontinued operation to be a component of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results, resulting in fewer disposals that qualify for discontinued operations reporting; yet, the pronouncement also requires expanded disclosures for discontinued operations. The adoption of ASU 2014-08 did not have a material impact on the Company’s consolidated unaudited financial statements because the Company did not have any discontinued operations.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers, including real estate sales, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and is to be applied retrospectively, with early application not permitted. The Company does not believe ASU 2014-09, when effective, will have a material impact on the Company’s consolidated financial statements.

In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. ASU 2014-15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early application permitted. The Company does not believe ASU 2014-15, when effective, will have a material impact on the Company’s consolidated financial statements because the Company currently does not have any conditions that give rise to substantial doubt about its ability to continue as a going concern.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”), which eliminates the deferral of FAS 167 and makes changes to both the variable interest model and the voting model. These changes will require re-evaluation of certain entities for consolidation and will require the Company to revise its documentation regarding the consolidation or deconsolidation of such entities. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and is to be applied retrospectively, with early adoption permitted. The Company is currently evaluating the impact of the new standard on its consolidated financial statements.

XML

Schedule III - Real Estate Assets and Accumulated Depreciated Schedule III - Real Estate Assets and Accumulated Depreciation - 2 (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	$ 565,836
Land	974,920
Buildings and Improvements	2,596,981
Total Adjustment to Basis	19,038
Gross Amount at Which Carried At December 31, 2014	3,590,939	1,960,708	464,539
Accumulated Depreciation	78,186	78,186	23,377	1,743
CVS: | London, KY
Real Estate and Accumulated Depreciation [Line Items]
Land	1,445
Buildings and Improvements	2,661
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,106
Accumulated Depreciation	88
CVS: | Middletown, NY
Real Estate and Accumulated Depreciation [Line Items]
Land	665
Buildings and Improvements	5,483
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,148
Accumulated Depreciation	145
CVS: | North Wilkesboro, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	332
Buildings and Improvements	2,369
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,701
Accumulated Depreciation	72
CVS: | Poplar Bluff, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	1,861
Buildings and Improvements	2,211
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,072
Accumulated Depreciation	60
CVS: | Salem, NH
Real Estate and Accumulated Depreciation [Line Items]
Land	3,456
Buildings and Improvements	2,351
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	5,807
Accumulated Depreciation	67
CVS: | San Antonio, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	1,893
Buildings and Improvements	1,848
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,741
Accumulated Depreciation	50
CVS: | Sand Springs, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	1,765
Buildings and Improvements	2,283
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,048
Accumulated Depreciation	62
CVS: | Santa Fe, NM
Real Estate and Accumulated Depreciation [Line Items]
Land	2,243
Buildings and Improvements	4,619
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	6,862
Accumulated Depreciation	122
CVS: | Sedalia, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	466
Buildings and Improvements	2,318
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,784
Accumulated Depreciation	62
CVS: | St. John, MO
Real Estate and Accumulated Depreciation [Line Items]
Land	1,546
Buildings and Improvements	2,601
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,147
Accumulated Depreciation	70
CVS: | Temple Hills, MD
Real Estate and Accumulated Depreciation [Line Items]
Land	1,817
Buildings and Improvements	2,989
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	4,806
Accumulated Depreciation	98
CVS: | Vineland, NJ
Real Estate and Accumulated Depreciation [Line Items]
Land	813
Buildings and Improvements	2,926
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,739
Accumulated Depreciation	81
CVS: | Waynesboro, VA
Real Estate and Accumulated Depreciation [Line Items]
Land	986
Buildings and Improvements	2,708
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,694
Accumulated Depreciation	73
CVS: | West Monroe, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	1,738
Buildings and Improvements	2,136
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,874
Accumulated Depreciation	58
Darien Towne Center: | Darien, IL
Real Estate and Accumulated Depreciation [Line Items]
Land	6,718
Buildings and Improvements	11,951
Total Adjustment to Basis	871
Gross Amount at Which Carried At December 31, 2014	19,540
Accumulated Depreciation	427
DaVita: | Riverview, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	199
Buildings and Improvements	2,322
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,521
Accumulated Depreciation	21
Decatur Commons: | Decatur, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	7,000
Land	2,478
Buildings and Improvements	9,333
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,811
Accumulated Depreciation	372
Deltona Commons: | Deltona, FL
Real Estate and Accumulated Depreciation [Line Items]
Land	1,424
Buildings and Improvements	7,760
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,184
Accumulated Depreciation	313
Dick’s Sporting Goods: | Oklahoma City (3rd), OK
Real Estate and Accumulated Depreciation [Line Items]
Land	1,198
Buildings and Improvements	7,838
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	9,036
Accumulated Depreciation	457
Dick’s Sporting Goods: | Oklahoma City, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	685
Buildings and Improvements	10,587
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	11,272
Accumulated Depreciation	602
Dollar General: | Abbeville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	294
Buildings and Improvements	1,302
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,596
Accumulated Depreciation	7
Dollar General: | Akron, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	69
Buildings and Improvements	771
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	840
Accumulated Depreciation	29
Dollar General: | Akron, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	112
Buildings and Improvements	1,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,211
Accumulated Depreciation	35
Dollar General: | Alliance, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	97
Buildings and Improvements	812
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	909
Accumulated Depreciation	41
Dollar General: | Alton, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	94
Buildings and Improvements	922
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,016
Accumulated Depreciation	7
Dollar General: | Arapahoe, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	44
Buildings and Improvements	873
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	917
Accumulated Depreciation	7
Dollar General: | Asheville, NC
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	379
Buildings and Improvements	753
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,132
Accumulated Depreciation	34
Dollar General: | Ashville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	666
Land	255
Buildings and Improvements	678
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	933
Accumulated Depreciation	42
Dollar General: | Atmore, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	243
Buildings and Improvements	858
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,101
Accumulated Depreciation	20
Dollar General: | Bainbridge, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	106
Buildings and Improvements	1,175
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,281
Accumulated Depreciation	44
Dollar General: | Belle, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	51
Buildings and Improvements	880
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	931
Accumulated Depreciation	7
Dollar General: | Berry, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	104
Buildings and Improvements	1,196
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,300
Accumulated Depreciation	9
Dollar General: | Bessemer, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	142
Buildings and Improvements	941
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,083
Accumulated Depreciation	33
Dollar General: | Bloomfield, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	50
Buildings and Improvements	845
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	895
Accumulated Depreciation	1
Dollar General: | Blue Rapids, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	52
Buildings and Improvements	880
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	932
Accumulated Depreciation	5
Dollar General: | Bluefield, WV
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	337
Buildings and Improvements	686
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,023
Accumulated Depreciation	4
Dollar General: | Bokchito, OK
Real Estate and Accumulated Depreciation [Line Items]
Land	59
Buildings and Improvements	859
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	918
Accumulated Depreciation	47
Dollar General: | Botkins, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	130
Buildings and Improvements	991
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,121
Accumulated Depreciation	37
Dollar General: | Brandon, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	292
Buildings and Improvements	871
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,163
Accumulated Depreciation	5
Dollar General: | Breaux Bridge, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	840
Land	225
Buildings and Improvements	1,007
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,232
Accumulated Depreciation	58
Dollar General: | Broken Bow, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	91
Buildings and Improvements	878
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	969
Accumulated Depreciation	26
Dollar General: | Brownsville, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	822
Land	264
Buildings and Improvements	943
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,207
Accumulated Depreciation	51
Dollar General: | Buffalo, NY
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	122
Buildings and Improvements	1,099
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,221
Accumulated Depreciation	1
Dollar General: | Clay, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	792
Land	305
Buildings and Improvements	768
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,073
Accumulated Depreciation	43
Dollar General: | Cleveland, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	684
Land	158
Buildings and Improvements	856
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,014
Accumulated Depreciation	46
Dollar General: | Columbus, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	279
Buildings and Improvements	1,248
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,527
Accumulated Depreciation	40
Dollar General: | Conroe, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	756
Land	167
Buildings and Improvements	946
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,113
Accumulated Depreciation	50
Dollar General: | Crystal Springs, MS
Real Estate and Accumulated Depreciation [Line Items]
Land	463
Buildings and Improvements	3,027
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	3,490
Accumulated Depreciation	30
Dollar General: | Cullman, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	159
Buildings and Improvements	824
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	983
Accumulated Depreciation	8
Dollar General: | Decatur, IL (Taylorville)
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	133
Buildings and Improvements	986
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,119
Accumulated Depreciation	14
Dollar General: | Decatur, IL (Eldorado)
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	219
Buildings and Improvements	964
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,183
Accumulated Depreciation	7
Dollar General: | Delcambre, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	169
Buildings and Improvements	1,025
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,194
Accumulated Depreciation	35
Dollar General: | Delhi, LA
Real Estate and Accumulated Depreciation [Line Items]
Land	301
Buildings and Improvements	1,033
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,334
Accumulated Depreciation	38
Dollar General: | Deridder (Hwy 26), LA
Real Estate and Accumulated Depreciation [Line Items]
Land	135
Buildings and Improvements	923
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,058
Accumulated Depreciation	32
Dollar General: | Deridder (Hwy 190), LA
Real Estate and Accumulated Depreciation [Line Items]
Land	176
Buildings and Improvements	905
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,081
Accumulated Depreciation	33
Dollar General: | Des Moines, IA
Real Estate and Accumulated Depreciation [Line Items]
Land	166
Buildings and Improvements	943
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,109
Accumulated Depreciation	35
Dollar General: | Dora, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	124
Buildings and Improvements	935
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,059
Accumulated Depreciation	7
Dollar General: | Dundee, MI
Real Estate and Accumulated Depreciation [Line Items]
Land	296
Buildings and Improvements	1,047
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,343
Accumulated Depreciation	30
Dollar General: | Edinburg, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	146
Buildings and Improvements	809
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	955
Accumulated Depreciation	10
Dollar General: | Eight Mile, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	110
Buildings and Improvements	865
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	975
Accumulated Depreciation	13
Dollar General: | Elk Point, SD
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	97
Buildings and Improvements	839
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	936
Accumulated Depreciation	7
Dollar General: | Ellerslie, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	247
Buildings and Improvements	797
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,044
Accumulated Depreciation	15
Dollar General: | Eufaula, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	300
Buildings and Improvements	930
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,230
Accumulated Depreciation	12
Dollar General: | Farmington, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	175
Buildings and Improvements	919
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,094
Accumulated Depreciation	7
Dollar General: | Fred, TX
Real Estate and Accumulated Depreciation [Line Items]
Land	93
Buildings and Improvements	929
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,022
Accumulated Depreciation	26
Dollar General: | Fort Valley, GA
Real Estate and Accumulated Depreciation [Line Items]
Land	514
Buildings and Improvements	2,436
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,950
Accumulated Depreciation	102
Dollar General: | Fruitport, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	100
Buildings and Improvements	968
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,068
Accumulated Depreciation	13
Dollar General: | Geneva, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	738
Land	204
Buildings and Improvements	815
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,019
Accumulated Depreciation	49
Dollar General: | Geraldine, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	220
Buildings and Improvements	1,146
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,366
Accumulated Depreciation	19
Dollar General: | Greenwell Springs, LA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	870
Land	444
Buildings and Improvements	841
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,285
Accumulated Depreciation	49
Dollar General: | Groveport, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	822
Land	416
Buildings and Improvements	813
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,229
Accumulated Depreciation	42
Dollar General: | Hamilton, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	208
Buildings and Improvements	1,024
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,232
Accumulated Depreciation	6
Dollar General: | Hanceville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	2,029
Land	1,232
Buildings and Improvements	1,488
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,720
Accumulated Depreciation	97
Dollar General: | Harlingen, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	144
Buildings and Improvements	853
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	997
Accumulated Depreciation	13
Dollar General: | Harvest, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	684
Land	261
Buildings and Improvements	691
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	952
Accumulated Depreciation	43
Dollar General: | Harviell, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	50
Buildings and Improvements	818
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	868
Accumulated Depreciation	18
Dollar General: | Hastings, NE
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	177
Buildings and Improvements	850
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,027
Accumulated Depreciation	5
Dollar General: | Hayneville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	249
Buildings and Improvements	1,181
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,430
Accumulated Depreciation	12
Dollar General: | Hillsboro, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	262
Buildings and Improvements	956
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,218
Accumulated Depreciation	7
Dollar General: | Hinton, WV
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	199
Buildings and Improvements	1,367
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,566
Accumulated Depreciation	13
Dollar General: | Homeworth, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	110
Buildings and Improvements	1,057
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,167
Accumulated Depreciation	33
Dollar General: | Houston, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	966
Land	311
Buildings and Improvements	1,102
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,413
Accumulated Depreciation	58
Dollar General: | Houston (Gears), TX
Real Estate and Accumulated Depreciation [Line Items]
Land	255
Buildings and Improvements	1,393
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,648
Accumulated Depreciation	43
Dollar General: | Huntsville, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	768
Land	177
Buildings and Improvements	847
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,024
Accumulated Depreciation	51
Dollar General: | Independence, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	828
Land	170
Buildings and Improvements	1,072
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,242
Accumulated Depreciation	59
Dollar General: | Kansas City (Oak), MO
Real Estate and Accumulated Depreciation [Line Items]
Land	283
Buildings and Improvements	1,068
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,351
Accumulated Depreciation	35
Dollar General: | Kansas City (Troost), MO
Real Estate and Accumulated Depreciation [Line Items]
Land	233
Buildings and Improvements	1,054
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,287
Accumulated Depreciation	32
Dollar General: | Kasson, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	138
Buildings and Improvements	888
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,026
Accumulated Depreciation	10
Dollar General: | Kearney, NE
Real Estate and Accumulated Depreciation [Line Items]
Land	141
Buildings and Improvements	851
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	992
Accumulated Depreciation	26
Dollar General: | Kinston, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	642
Land	170
Buildings and Improvements	718
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	888
Accumulated Depreciation	44
Dollar General: | Kolona, IA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	81
Buildings and Improvements	868
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	949
Accumulated Depreciation	9
Dollar General: | Lake Charles (Broad), LA
Real Estate and Accumulated Depreciation [Line Items]
Land	146
Buildings and Improvements	989
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,135
Accumulated Depreciation	36
Dollar General: | Lamesa, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	75
Buildings and Improvements	803
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	878
Accumulated Depreciation	10
Dollar General: | Lansing, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	232
Buildings and Improvements	939
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,171
Accumulated Depreciation	13
Dollar General: | Lebanon, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	177
Buildings and Improvements	882
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,059
Accumulated Depreciation	12
Dollar General: | Leicester, NC
Real Estate and Accumulated Depreciation [Line Items]
Land	134
Buildings and Improvements	800
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	934
Accumulated Depreciation	34
Dollar General: | Lima, OH
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	810
Land	156
Buildings and Improvements	1,040
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,196
Accumulated Depreciation	57
Dollar General: | Linden, AL
Real Estate and Accumulated Depreciation [Line Items]
Land	317
Buildings and Improvements	746
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,063
Accumulated Depreciation	30
Dollar General: | Lone Jack, MO
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	152
Buildings and Improvements	960
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,112
Accumulated Depreciation	16
Dollar General: | Los Fresnos, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	55
Buildings and Improvements	867
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	922
Accumulated Depreciation	7
Dollar General: | Los Lunas, NM
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	113
Buildings and Improvements	857
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	970
Accumulated Depreciation	15
Dollar General: | Louisburg, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	324
Buildings and Improvements	936
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,260
Accumulated Depreciation	14
Dollar General: | Loveland, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	241
Buildings and Improvements	1,065
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,306
Accumulated Depreciation	32
Dollar General: | Lubbock, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	744
Land	468
Buildings and Improvements	641
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,109
Accumulated Depreciation	36
Dollar General: | Manhattan, KS
Real Estate and Accumulated Depreciation [Line Items]
Land	194
Buildings and Improvements	921
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,115
Accumulated Depreciation	28
Dollar General: | Mansfield, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	72
Buildings and Improvements	1,226
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,298
Accumulated Depreciation	33
Dollar General: | Maple Lake, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	92
Buildings and Improvements	893
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	985
Accumulated Depreciation	5
Dollar General: | Millbrook, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	320
Buildings and Improvements	1,175
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,495
Accumulated Depreciation	15
Dollar General: | Mission, TX
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	182
Buildings and Improvements	858
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,040
Accumulated Depreciation	7
Dollar General: | Maynardville, TN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	750
Land	238
Buildings and Improvements	754
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	992
Accumulated Depreciation	48
Dollar General: | Mobile (Newman), AL
Real Estate and Accumulated Depreciation [Line Items]
Land	139
Buildings and Improvements	1,005
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,144
Accumulated Depreciation	33
Dollar General: | Mobile (Schillinger), AL
Real Estate and Accumulated Depreciation [Line Items]
Land	410
Buildings and Improvements	1,059
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,469
Accumulated Depreciation	45
Dollar General: | Monroeville, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	131
Buildings and Improvements	1,069
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,200
Accumulated Depreciation	33
Dollar General: | Montgomery, AL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	140
Buildings and Improvements	909
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,049
Accumulated Depreciation	5
Dollar General: | Moose Lake, MN
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	140
Buildings and Improvements	937
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,077
Accumulated Depreciation	6
Dollar General: | Moroa, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	111
Buildings and Improvements	921
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,032
Accumulated Depreciation	13
Dollar General: | Mt. Vernon, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	177
Buildings and Improvements	985
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,162
Accumulated Depreciation	16
Dollar General: | Nashville, GA
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	2,088
Land	215
Buildings and Improvements	2,533
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	2,748
Accumulated Depreciation	130
Dollar General: | Nashville, MI
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	103
Buildings and Improvements	1,255
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,358
Accumulated Depreciation	30
Dollar General: | Navarre, OH
Real Estate and Accumulated Depreciation [Line Items]
Land	153
Buildings and Improvements	1,005
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	1,158
Accumulated Depreciation	33
Dollar General: | Neoga, IL
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	94
Buildings and Improvements	860
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	954
Accumulated Depreciation	8
Dollar General: | Ness City, KS
Real Estate and Accumulated Depreciation [Line Items]
Encumbrances	0
Land	21
Buildings and Improvements	860
Total Adjustment to Basis	0
Gross Amount at Which Carried At December 31, 2014	881
Accumulated Depreciation	$ 19

XML

Fair Value Measurements Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis

In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2014 and 2013 (in thousands):

	Balance as of December 31, 2014			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(4,057	)	$	—	$	(4,057	)	$	—
Contingent consideration	(3,405		)	—		—			(3,405		)
Total liabilities	$	(7,462	)	$	—	$	(4,057	)	$	(3,405	)
	Balance as of December 31, 2013			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable  Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Liabilities:
Interest rate swaps	$	(2,252	)	$	—	$	(2,252	)	$	—
Contingent consideration	(784		)	—		—			(784		)
Total liabilities	$	(3,036	)	$	—	$	(2,252	)	$	(784	)

XML

Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly financial information

Presented below is a summary of the unaudited quarterly financial information for the years ended December 31, 2014 and 2013 (in thousands, except for per share amounts). In the opinion of management, the information for the interim periods presented includes all adjustments which are of a normal and recurring nature, necessary to present a fair presentation of the results for each period.

	December 31, 2014
	First Quarter		Second Quarter		Third Quarter			Fourth Quarter
Revenues	$	51,551	$	56,861	$	64,591		$	83,279
Acquisition-related expenses	$	8,633	$	10,113	$	21,009		$	12,008
Operating income	$	10,564	$	10,790	$	3,698		$	20,378
Net income (loss)	$	2,946	$	3,190	$	(4,147	)	$	9,181
Net income (loss) attributable to the Company	$	2,946	$	3,204	$	(4,156	)	$	9,196
Basic and diluted net income (loss) per common share (1)	$	0.01	$	0.01	$	(0.01	)	$	0.03
Distributions declared per common share	$	0.15	$	0.16	$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2014.

	December 31, 2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Revenues	$	11,405		$	21,773		$	30,326		$	39,053
Acquisition-related expenses	$	5,639		$	14,551		$	10,356		$	17,740
Operating (loss) income	$	(1,055	)	$	(6,051	)	$	552		$	(4,142	)
Net loss	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Net loss attributable to the Company	$	(3,795	)	$	(11,669	)	$	(6,588	)	$	(10,828	)
Basic and diluted net loss per common share (1)	$	(0.04	)	$	(0.13	)	$	(0.07	)	$	(0.12	)
Distributions declared per common share	$	0.15		$	0.16		$	0.16		$	0.16
(1) Based on the weighted average number of shares outstanding as of December 31, 2013.

XML

Stockholders' Equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

As of December 31, 2014, the Company registered 26.0 million shares of common stock pursuant to the DRIP Offering. All shares of such stock have a par value of $0.01 per share. The par value of investor proceeds raised from the DRIP Offering is classified as common stock, with the remainder allocated to capital in excess of par value.

As of December 31, 2013 and 2012, the Company was authorized to issue 490.0 million shares of common stock and 10.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. On August 11, 2010, the Company sold 20,000 shares of common stock, at $10.00 per share, to Cole Holdings Corporation (“CHC”). On April 5, 2013, the ownership of such shares was transferred to CREInvestments, LLC (“CREI”). On February 7, 2014, the ownership of such shares was transferred to ARC Properties Operating Partnership, L.P. (“ARCP OP”). Pursuant to the Company’s charter, ARCP OP is prohibited from selling the 20,000 shares of the common stock that represents the initial investment in the Company for so long as Cole Capital remains the Company’s sponsor; provided, however, that ARCP OP may transfer ownership of all or a portion of these 20,000 shares of the Company’s common stock to other affiliates of the Company’s sponsor. The Company ceased offering shares of its common stock in the Offering on April 4, 2014 and registered 26.0 million shares of common stock under the DRIP Offering.

Distribution Reinvestment Plan

Pursuant to the DRIP, the Company allows stockholders to elect to have their distributions reinvested in additional shares of the Company’s common stock. The purchase price per share under the DRIP Offering is $9.50 per share. The Company’s board of directors may terminate or amend the DRIP Offering at the Company’s discretion at any time upon ten days prior written notice to the stockholders. During the years ended December 31, 2014, 2013 and 2012, approximately 11.0 million, 2.7 million and 207,000 shares were purchased under the DRIP portion of the Offering and the DRIP Offering for approximately $104.3 million, $25.7 million and $2.0 million, respectively.

Share Redemption Program

The Company’s share redemption program permits its stockholders to sell their shares back to the Company after they have held them for at least one year, subject to the significant conditions and limitations described below.

The share redemption program provides that the Company will redeem shares of its common stock from requesting stockholders, subject to the terms and conditions of the share redemption program. The Company will limit the number of shares redeemed pursuant to the share redemption program as follows: (1) the Company will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited to the net proceeds the Company receives from the sale of shares under the DRIP. In an effort to accommodate redemption requests throughout the calendar year, the Company intends to limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12 month period ending on the last day of the fiscal quarter, and funding for redemptions for each quarter generally will be limited to the net proceeds the Company receives from the sale of shares in the respective quarter under the DRIP. 

Until such time as the Company's shares are listed on a national securities exchange or, if the shares are not listed, until such time as the Board determines a reasonable estimate of the value of the Company’s shares, the redemption price per share (other than for shares purchased pursuant to the DRIP) will depend on the price paid for the shares and the length of time the stockholder has held such shares as follows: after one year from the purchase date, 95% of the amount paid for each share; after two years from the purchase date, 97.5% of the amount paid for each share; and after three years from the purchase date, 100% of the amount paid for each share. During this time period, the redemption price for shares purchased pursuant to the DRIP will be the amount paid for such shares. (In each case, the redemption price will be adjusted for any stock dividends, combinations, splits, recapitalizations and the like with respect to the Company’s common stock). Accordingly, the redemption price will reflect a stockholder’s reduced purchase price if such stockholder received discounted or waived selling commissions and/or a waived dealer manager fee. At any time the Company is engaged in an offering of shares, the per share price for shares purchased under the redemption program will always be equal to or lower than the applicable per share offering price.

Upon receipt of a request for redemption, the Company may conduct a Uniform Commercial Code search to ensure that no liens are held against the shares. If the Company cannot purchase all shares presented for redemption in any fiscal quarter, based upon insufficient cash available and/or the limit on the number of shares the Company may redeem during any quarter or year, the Company will give priority to the redemption of deceased stockholders’ shares. The Company next will give priority to requests for full redemption of accounts with a balance of 250 shares or less at the time the Company receives the request, in order to reduce the expense of maintaining small accounts. Thereafter, the Company will honor the remaining redemption requests on a pro rata basis. Following such quarterly redemption period, the unsatisfied portion of the prior redemption request must be resubmitted, prior to the last day of the new quarter. Unfulfilled requests for redemption will not be carried over automatically to subsequent redemption periods.

The Company redeems shares no later than the end of the month following the end of each fiscal quarter. Requests for redemption must be received on or prior to the end of the fiscal quarter in order for the Company to repurchase the shares in the month following the end of that fiscal quarter. The Board may amend, suspend or terminate the share redemption program at any time upon 30 days’ notice to the stockholders. During the years ended December 31, 2014 and 2013, the Company redeemed approximately 1.1 million and 123,000 shares, respectively, under the share redemption program for $10.6 million and $1.2 million, respectively. The Company did not redeem any shares during the year ended December 31, 2012.