S-4/A

As filed with the Securities and Exchange Commission on November 27, 2013

Registration No. 333-190056

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

Pre-Effective Amendment No. 6 to
Form S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

 

AMERICAN REALTY CAPITAL PROPERTIES, INC.

(Exact name of registrants as specified in charter)

 

Maryland	6798	45-2482685
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification Number)

405 Park Avenue
New York, New York 10022
(212) 415-6500

(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrants’ Principal Executive Offices)

 

Nicholas S. Schorsch
Chief Executive Officer
American Realty Capital Properties, Inc.
405 Park Avenue
New York, New York 10022
(212) 415-6500

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code, of Agent for Service)

 

With copies to:

Peter M. Fass, Esq. Steven L. Lichtenfeld, Esq. Proskauer Rose LLP Eleven Times Square New York, New York 10036 (212) 969-3000	Michael J. Aiello, Esq. Matthew J. Gilroy, Esq. Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, New York 10153 (212) 310-8000	Richard A. Silfen, Esq. Darrick M. Mix, Esq. Duane Morris LLP 30 South 17th Street Philadelphia, PA 19103 (215) 979-1000

 

Approximate date of commencement of the proposed sale to the public: As soon as practicable after this Registration Statement becomes effective.

If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. o

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this Form is post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

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. (Check one):

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

If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:

Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer) o

Exchange Act Rule 14d-1(d) (Cross-Border Issuer Third Party Tender Offer) o

The Registrants hereby amend this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrants shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

EXPLANATORY NOTE

This Pre-Effective Amendment No. 6 (“Amendment No. 6”) to the Registration Statement on Form S-4 of American Realty Capital Properties, Inc. (the “Registration Statement”) is being filed solely to amend the Exhibit Index and to file Exhibits 4.2, 5.1, 8.1, 21.1, 23.1, 23.2 and 99.2 to the Registration Statement, as well as XBRL interactive data. No other changes have been made to the Registration Statement. Accordingly, this Amendment No. 6 consists solely of the facing page, this explanatory note, Part II and the Exhibit Index.

Part II
INFORMATION NOT REQUIRED IN PROSPECTUS

Item 20. Indemnification of Officers and Directors

Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and its stockholders for money damages except for liability resulting from (1) actual receipt of an improper benefit or profit in money, property or services or (2) active and deliberate dishonesty that is established by a final judgment and is material to the cause of action. The charter of ARCP contains such a provision that limits such liability to the maximum extent permitted by Maryland law.

The MGCL requires a Maryland corporation (unless its charter provides otherwise, which ARCP’s charter does not) to indemnify a director or officer who has been successful in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service in that capacity. The MGCL permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made or threatened to be made a party by reason of their service in those or other capacities unless it is established that: (1) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (A) was committed in bad faith or (B) was the result of active and deliberate dishonesty; (2) the director or officer actually received an improper personal benefit in money, property or services; or (3) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful.

However, under the MGCL, a Maryland corporation may not indemnify a director or officer in a suit by or in the right of the corporation in which the director or officer was adjudged liable to the corporation or for a judgment of liability on the basis that a personal benefit was improperly received. A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct, was adjudged liable to the corporation or was adjudged liable on the basis that personal benefit was improperly received. However, indemnification for an adverse judgment in a suit by ARCP or in ARCP’s right, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses.

In addition, the MGCL permits a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of: (1) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation; and (2) a written undertaking by the director or officer or on the director’s or officer’s behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that the director or officer did not meet the standard of conduct.

ARCP’s charter obligates ARCP, to the maximum extent permitted by Maryland law in effect from time to time, to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses in advance of final disposition of a proceeding to (1) any present or former director or officer who is made or threatened to be made a party to the proceeding by reason of his or her service in that capacity; or (2) any individual who, while a director or officer of ARCP and at ARCP’s request, serves or has served as a director, officer, partner, member, manager or trustee of another corporation, REIT, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise and who is made or threatened to be made a party to the proceeding by reason of his or her service in that capacity.

ARCP’s charter also permits ARCP to indemnify and advance expenses to any person who served a predecessor of ARCP’s in any of the capacities described above and to any employee or agent of ARCP or a predecessor of ARCP.

ARCP is party to indemnification agreements with each of its directors and executive officers that would provide for indemnification to the maximum extent permitted by Maryland law.

ARCP has purchased and maintains insurance on behalf of all of its directors and executive officers against liability asserted against or incurred by them in their official capacities.

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Insofar as the foregoing provisions permit indemnification of directors, officers or persons controlling ARCP for liability arising under the Securities Act, ARCP has been informed that, in the opinion of the SEC, this indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

Item 21. Exhibits

A list of the exhibits included as part of this registration statement is set forth in the Exhibit Index that immediately precedes such exhibits and is incorporated herein by reference.

Item 22. Undertakings

The undersigned registrant hereby undertakes as follows:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;

(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and

(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, as amended, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability under the Securities Act of 1933, as amended, to any purchaser: if the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5) That, for the purpose of determining liability of the registrant under the Securities Act of 1933, as amended, to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following

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communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, as amended, each filing of the registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934, as amended) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus, which is a part of this Registration Statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.

The registrant undertakes that every prospectus: (i) that is filed pursuant to the immediately preceding paragraph, or (ii) that purports to meet the requirements of Section 10(a)(3) of the Securities Act of 1933, as amended, and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, as amended, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Items 4, 10(b), 11 or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-4 and has duly caused this Pre-Effective Amendment No. 6 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, State of New York, on this 27^th day of November, 2013.

American Realty Capital Properties, Inc.

By: /s/ Nicholas S. Schorsch
Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, as amended, this Pre-Effective Amendment No. 4 to the Registration Statement has been signed below by the following persons in the capacities and on the date indicated.

Signatures	Title	Date
/s/ Nicholas S. Schorsch Nicholas S. Schorsch	Chairman and Chief Executive Officer (Principal Executive Officer)	November 27, 2013
/s/ Edward M. Weil, Jr. Edward M. Weil, Jr.	President, Treasurer, Secretary and Director	November 27, 2013
/s/ Peter M. Budko Peter M. Budko	Executive Vice President and Chief Investment Officer	November 27, 2013
/s/ Brian S. Block Brian S. Block	Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)	November 27, 2013
/s/ Lisa Beeson Lisa Beeson	Chief Operating Officer	November 27, 2013
/s/ William M. Kahane William M. Kahane	Director	November 27, 2013
* Leslie D. Michelson	Lead Independent Director	November 27, 2013
* Edward G. Rendell	Independent Director	November 27, 2013
* Scott J. Bowman	Independent Director	November 27, 2013
/s/ Nicholas S. Schorsch Nicholas S. Schorsch Attorney-in-fact		November 27, 2013

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EXHIBITS INDEX

Exhibit Index	Description of Document
2.1	Agreement and Plan of Merger, dated as of July 1, 2013, by and among American Realty Capital Properties, Inc., ARC Properties Operating Partnership, L.P., Thunder Acquisition, LLC, American Realty Capital Trust IV, Inc. and American Realty Capital Operating Partnership IV, L.P. (attached as Annex A to the joint proxy statement/prospectus that is part of this registration statement).
2.2	First Amendment to Agreement and Plan of Merger, dated as of October 6, 2013, by and among American Realty Capital Properties, Inc., ARC Properties Operating Partnership, L.P., Thunder Acquisition, LLC, American Realty Capital Trust IV, Inc. and American Realty Capital Operating Partnership IV, L.P. (attached as Annex D to the joint proxy statement/prospectus that is part of this registration statement).
2.2	Second Amendment to Agreement and Plan of Merger, dated as of October 11, 2013, by and among American Realty Capital Properties, Inc., ARC Properties Operating Partnership, L.P., Thunder Acquisition, LLC, American Realty Capital Trust IV, Inc. and American Realty Capital Operating Partnership IV, L.P. (attached as Annex E to the joint proxy statement/prospectus that is part of this registration statement).
3.1	Conformed Articles of Amendment and Restatement for American Realty Capital Properties, Inc., dated July 2, 2013.**(1)
3.2	Bylaws of American Realty Capital Properties, Inc. (filed as exhibit 3.2 to ARCP’s Form S-11/A, filed on June 13, 2011 and incorporated herein by reference).
3.3	Articles Supplementary to the Articles of Incorporation of American Realty Capital Properties, Inc. classifying and designating the Series C Convertible Preferred Stock, dated June 6, 2013 (filed as exhibit 3.5 to ARCP’s Form 8-K, filed on June 12, 2013 and incorporated herein by reference).
4.1	Second Amended and Restated Agreement of Limited Partnership of ARC Properties Operating Partnership, L.P., dated February 28, 2013 (filed as exhibit 4.1 to ARCP’s Form 8-K, filed on March 6, 2013, and incorporated herein by reference).
4.2	Form of Amendment to Agreement of Limited Partnership of ARC Properties Operating Partnership, L.P.*
4.3	Form of Indenture (filed as exhibit 4.6 to ARCP’s Form S-3/A, filed on August 15, 2012 and incorporated herein by reference).
4.4	Form of Indenture (filed as exhibit 4.7 to ARCP’s Form S-3/A, filed on August 15, 2012 and incorporated herein by reference).
5.1	Opinion of Venable LLP as to the legality of the securities.*
8.1	Tax Opinion of Proskauer Rose LLP.*
12.1	Statements re computation of ratios.***
21.1	Subsidiaries of American Realty Capital Properties, Inc. (filed as exhibit 21 to ARCP’s Form 8-K, filed on November 26, 2013, and incorporated herein by reference).
23.1	Consent of Venable LLP (included as part of the opinion filed as Exhibit 5.1 hereto and incorporated herein by reference).*
23.2	Consent of Proskauer Rose LLP (included as part of the opinion filed as Exhibit 8.1 hereto and incorporated herein by reference).*
23.3	Consent of Grant Thornton LLP, independent registered public accounting firm.**
23.4	Consent of Grant Thornton LLP, independent registered public accounting firm.**
23.5	Consent of Grant Thornton LLP, independent certified public accountants.**
23.6	Consent of Grant Thornton LLP, independent certified public accountants.**

Exhibit Index	Description of Document
23.7	Consent of Grant Thornton LLP, independent certified public accountants.**
23.8	Consent of Grant Thornton LLP, independent certified public accountants.**
23.9	Consent of McGladrey LLP, independent registered public accounting firm.**
23.10	Consent of Deloitte & Touche LLP, independent registered public accounting firm**
24.1	Powers of Attorney.**
99.1	Consent of Merrill Lynch, Pierce, Fenner & Smith Incorporated.**
99.2	Form of Proxy of American Realty Capital Trust IV, Inc.*
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.

** Previously filed.

*** To be filed by amendment.

(1) Conformed to reflect filing of Articles of Amendment with the Maryland State Department of Assessments and Taxation on July 2, 2013.

EX-4.2

FORM OF AMENDMENT
to
amended and restated
agreement of limited partnership
of
ARC PROPERTIES OPERATING PARTNERSHIP, L.P.

THIS AMENDMENT TO THE SECOND AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF ARC PROPERTIES OPERATING PARTNERSHIP, L.P. (this “Amendment”) is made as of [________], 2013 by and among American Realty Capital Properties, Inc., a Maryland corporation (the “REIT”), in its capacity as the General Partner and Special Limited Partner of ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”). Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given to such terms in the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of February 28, 2013, by and among the REIT and the other parties signatory thereto (the “Partnership Agreement”).

witnesseth:

WHEREAS, on the date hereof, the REIT has issued [_______] shares (the “Shares”) of the REIT’s Series F Cumulative Redeemable Preferred Stock, par value $.01 per share (the “Series F Preferred Stock”) pursuant to that certain Agreement and Plan of Merger, dated as of July 1, 2013, by and among the REIT, American Realty Capital Trust IV, Inc., a Maryland corporation, Thunder Acquisition, LLC, a Delaware limited liability company, ARC Properties Operating Partnership, L.P., a Delaware limited partnership and American Realty Capital Operating Partnership IV, L.P., a Delaware limited partnership, as amended on October 6, 2013 and October 11, 2013 (the “Merger Agreement”);

WHEREAS, pursuant to the Merger Agreement, in connection with the Partnership Merger (as defined in the Merger Agreement) certain preferred Partnership Interests represented by a newly designated preferred class of Partnership Units of the Partnership with the rights, privileges and preferences set forth on Exhibit A hereto (the “Series F Preferred Units”) will be issued; and

WHEREAS, in accordance with the authority granted to the General Partner in Section 11.01 of the Partnership Agreement, the General Partner desires to amend the Partnership Agreement to reflect the creation of the Series F Preferred Units and the rights, privileges and preferences thereof.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows.

1. Pursuant to Section 4.02 of the Partnership Agreement, the Partnership Agreement is hereby amended (i) to create the Series F Preferred Units with the rights, privileges and preferences set forth on Exhibit A attached hereto and (ii) to issue [_____] Series F Preferred Units in connection with the Partnership Merger as provided in the Merger Agreement.

2. Section 5.01 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the contrary, allocations of Profit and Loss to holders of Series F Preferred Units in any year shall be limited as provided in Section 4(F) of Exhibit A attached hereto.

3. Section 5.02 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the contrary, distributions payable with respect to the Series F Preferred Units as provided in Section 4 of Exhibit A attached hereto shall have priority over all of the other distributions to Partners pursuant to Section 5.02 of the Partnership Agreement, other than distributions to Partners with respect to Series F Senior Units and Series F Parity Units.

4. Section 5.06 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the contrary, distributions payable with respect to the Series F Preferred Units as provided in Section 5 of Exhibit A attached hereto shall have priority over all of the other distributions to Partners upon a Liquidation pursuant to Section 5.06 of the Partnership Agreement, other than distributions to Partners with respect to Series F Senior Units and Series F Parity Units.

5. The Partnership Agreement is hereby amended to the fullest extent necessary to effect all of the matters contemplated by this Amendment, including but not limited to the terms set forth on Exhibit A hereto, and including, without limitation, the voting rights of the holders of Series F Preferred Units and restrictions on the General Partner and the Partnership that are set forth in Section 8 of Exhibit A attached hereto. Except as specifically provided for in this Amendment, the provisions of the Partnership Agreement shall remain in full force and effect.

6. The execution, delivery and effectiveness of this Amendment shall not operate (a) as an amendment or modification of any provision, right or obligation of any Partner under the Partnership Agreement except as specifically set forth in this Amendment or (b) as a waiver or consent to any subsequent action or transaction.

7. This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles of conflicts of laws thereof.

8. This Amendment contains the entire understanding among the parties with respect to the subject matter hereof and supersedes any other prior written or oral understanding or agreements among their with respect thereto.

9. This Amendment may be executed in one or more counterparts, each of which shall be an original and all of which, when taken together, shall constitute one and the same agreement.

10. This Amendment shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be duly executed on its behalf as of the date first above written.

GENERAL PARTNER:
AMERICAN REALTY CAPITAL PROPERTIES, INC.
By:
	Name:
	Title:
SPECIAL LIMITED PARTNER:
AMERICAN REALTY CAPITAL PROPERTIES, INC.
By:
	Name:
	Title

[Signature Page to First Amendment to Amended and Restated Agreement of Limited Partnership] 

exhibit A

Terms of Series F Preferred Units

In accordance with Section 4.02 of the Partnership Agreement, set forth below are the terms and conditions of the Series F Preferred Units established by the Partnership on the date hereof.

1. Definitions. For purposes of the Series F Preferred Units, the following terms shall have the meanings indicated in this Section 1. Capitalized terms used but not otherwise defined in this Exhibit A shall have the meanings set forth in Article I of the Partnership Agreement, as amended by the Amendment to which this Exhibit A is attached.

“Annual Distribution Rate” shall have the meaning set forth in Section 4(A) to this Exhibit A.

“Articles Supplementary” shall mean the Articles Supplementary classifying and designating the Series F Preferred Stock and fixing distribution and other preferences and rights of the Series F Preferred Stock as filed with the State Department of Assessments and Taxation of Maryland on [______], 2013.

“Business Day” shall mean any day other than Saturday, Sunday or a day on which state or federally chartered banking institutions in New York, New York are not required to be open.

“Common Units” shall mean any class or series of Partnership Interest that does not have a priority or preference in the payment of distributions in the distribution of assets upon any Liquidation.

“Liquidation” shall mean (A) a dissolution or winding up of the General Partner or the Partnership, whether voluntary or involuntary, (B) a consolidation or merger of the General Partner or the Partnership with and into one or more entities which are not affiliates of the General Partner or the Partnership which results in a Change in Control, or (C) a sale or transfer of all or substantially all of the Corporation’s or the Partnership’s assets other than to an affiliate of the Corporation or the Partnership.

“Series F Distribution Payment Date” shall mean the fifteenth (15^th) calendar day of each month, commencing on the fifteenth (15^th) day of the month following the date on which Series F Preferred Units are first issued and sold; provided, however, that if any Series F Distribution Payment Date falls on any day other than a Business Day, the distribution payment due on such Series F Distribution Payment Date shall be paid on the first Business Day immediately following such Series F Distribution Payment Date.

“Series F Distribution Period” shall mean monthly distribution periods commencing on the first day of each month and ending on and including the day preceding the first day of the next succeeding Series F Distribution Period (other than the initial Series F Distribution Period, which shall commence on the date Series F Preferred Units are first issued and sold).

“Series F Junior Units” shall mean Common Units and any class or series of Partnership Units hereafter issued and outstanding that are not Series F Senior Units, Series F Preferred Units or Series F Parity Units.

“Series F Liquidation Amount” shall have the meaning set forth in Section 5(A) of this Exhibit A.

“Series F Liquidation Preference” shall mean twenty-five dollars ($25.00) per Series F Preferred Unit.

“Series F Parity Units” shall mean any class or series of Partnership Units hereafter issued and outstanding, whether or not the distribution rates thereof shall be different from those of the Series F Preferred Units, if the holders of such class or series and the Series F Preferred Units shall be entitled to (i) the receipt of distributions in proportion to their respective amounts of accrued and unpaid distributions per unit and (ii) amounts distributable upon Liquidation in proportion to their respective liquidation preferences, in each case without preference or priority one over the other.

“Series F Senior Units” shall mean any class or series of Partnership Units hereafter issued and outstanding, if the holders of such class or series shall be entitled to the receipt of distributions prior to a Liquidation or of amounts distributable upon any event of Liquidation, in preference or priority to the holders of Series F Preferred Units.

2. Number of Preferred Units and Designation. This series of preferred Partnership Interests shall be designated as the Series F Preferred Partnership Units (the “Series F Preferred Units”). The number of units which shall initially constitute such series shall be [_____] units.

3. Ranking. The Series F Preferred Units shall, with respect to, allocations, the payment of distributions and the right to receive the Series F Liquidation Amount upon a Liquidation, rank junior to all Series F Senior Units; rank senior to all Series F Junior Units, and rank in parity with all Series F Parity Units.

4. Distributions and Allocations.

(A) Subject to the preferential rights of the holders of any Series F Senior Units, the holders of Series F Preferred Units shall be entitled to receive, when, as and if declared by the General Partner, distributions payable in cash at a per unit rate per annum equal to 6.70% of the Liquidation Preference (the “Annual Distribution Rate”). The distributions shall be cumulative from the day of issuance of any such Series F Preferred Units and shall be payable monthly, when, as and if declared by the General Partner, in arrears, on each Series F Distribution Payment Date. Each such distribution shall be payable to the holders of record of Series F Preferred Units as they appear in the records of the Partnership at the close of business on such record date, which shall not be more than 30 days preceding such Series F Distribution Payment Dates thereof, as shall be fixed by the General Partner. Any distribution payment made on Series F Preferred Units shall first be credited against the earliest accrued but unpaid distribution due with respect to Series F Preferred Units which remains payable.

(B) The amount of distributions payable for any Series F Distribution Period shall be computed by dividing the Annual Distribution Rate by twelve. The amount of distributions payable for the initial Series F Distribution Period, or any other period shorter or longer than a full Series F Distribution Period, on the Series F Preferred Units shall be computed on the basis of twelve 30-day months and a 360-day year. Holders of Series F Preferred Units shall not be entitled to any distributions, whether payable in cash, property or shares, in excess of cumulative distributions, as herein provided, on the Series F Preferred Units, plus any other amounts provided herein.

(C) Distributions of Cash Available for Distribution shall be made on the Series F Preferred Units pursuant to Section 5.02(a)(i) of the Partnership Agreement pro rata and pari passu with Series F Parity Units in proportion to their relative accrued but unpaid return. Distributions of Net Sales Proceeds shall be made on the Series F Preferred Units pursuant to Section 5.02(a)(i) of the Partnership Agreement pro rata and pari passu with Series F Parity Units in proportion to their relative accrued but unpaid return.

(D) So long as any Series F Preferred Units are outstanding, no distributions, except as described in the immediately following sentence, shall be declared or paid or set apart for payment on any class or series of Series F Parity Units for any period unless full cumulative distributions have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set apart for such payment on the Series F Preferred Units for all Series F Distribution Periods terminating on or prior to the distribution payment date on such class or series of Series F Parity Units. When distributions are not paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all distributions authorized and declared upon Series F Preferred Units and all distributions authorized and declared upon any other series or class or classes of Series F Parity Units shall be authorized and declared ratably in proportion to the respective amounts of distributions accumulated and unpaid on the Series F Preferred Units and such class or classes or series of Series F Parity Units.

(E) So long as any Series F Preferred Units are outstanding, no distributions shall be declared and paid or set apart for payment on any class or series of Series F Junior Units for any period unless full cumulative distributions on all outstanding Series F Preferred Units and any other Series F Parity Units have been paid or set apart for payment for all past Series F Distribution Periods and sufficient funds have been paid or set apart for the payment of the distribution for the current Series F Distribution Period with respect to the Series F Preferred Units and any Series F Parity Units. When distributions are not paid in full or a sum sufficient for such payment is not set apart, as aforesaid, all distributions declared upon Series F Preferred Units and all distributions declared upon any other class or series of Series F Parity Units shall be declared ratably in proportion to the respective amounts of distributions accumulated and unpaid on the Series F Preferred Units and accumulated and unpaid on such Series F Parity Units.

(F) No distributions on Series F Preferred Units shall be declared by the General Partner or paid or set apart for payment by the Partnership at such time as the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness, prohibits such declaration, payment or setting apart for payment or provides that such declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if such declaration or payment shall be restricted or prohibited by law.

(G) Subject to any special allocations referenced in Section 5.01(a) of the Partnership Agreement, if the Partnership has Net Income or Net Loss for any taxable year or portion thereof, Partners holding Series F Preferred Units shall be allocated Net Income, and to the extent necessary, individual items of Partnership income and gain, pursuant to Section 5.01(a)(i) of the Partnership Agreement, pro rata and pari passu with Series F Parity Units that are subject to allocations pursuant to Section 5.01(a)(i), to the extent of and until such Partners have received aggregate allocations pursuant to this Section 4(G) of Exhibit A equal to the aggregate amount actually distributed to such Partners in accordance with Section 4(C) of this Exhibit A as it relates to Section 5.02(a)(i) and Net Loss, and to the extent necessary, individual items of loss or deduction, pursuant to Section 5.01(a)(iii)(D) of the Partnership Agreement, pro rata and pari passu with Series F Parity Units subject to allocation pursuant to Section 5.01(a)(iii)(D) until the Capital Accounts of such Partners with respect to their Series F Preferred Units have been reduced to zero. Subject to any special allocations referenced in Section 5.01(b) of the Partnership Agreement, if the Partnership has Net Property Gain for any taxable year or portion thereof, Partners holding Series F Preferred Units shall be allocated, first, Net Property Gain pro rata and pari passu with Series F Parity Units that are subject to allocations pursuant to Section 5.01(b)(i), to the extent and until each such Partners’ Capital Accounts is equal to such Partner’s aggregate Series F Liquidation Amount, and second, Net Property Gain, and to the extent necessary, individual items of Partnership gain, pursuant to Section 5.01(b)(ii) of the Partnership Agreement, pro rata and pari passu with Series F Parity Units that are subject to allocations pursuant to Section 5.01(b)(ii), to the extent of and until such Partners have received aggregate allocations pursuant to this Section 4(G) of Exhibit A equal to the aggregate amount actually distributed to such Partners in accordance with Section 4(C) of this Exhibit A as it relates to Section 5.02(b)(ii).

(H) Notwithstanding anything in this Exhibit A to the contrary, the Partnership shall be permitted to make any distributions that are necessary in order to maintain the status of the REIT as a real estate investment trust as defined in Section 856 of the United States Internal Revenue Code of 1986, as amended.

5. Liquidation Preference.

(A) In the event of any Liquidation, subject to the prior preferences and other rights of any Series F Senior Units, before any payment or distribution of the assets of the Partnership (whether capital or surplus) shall be made to or set apart for the holders of Series F Junior Units, the holders of the Series F Preferred Units shall be entitled to receive the greater of (i) (A) the Series F Liquidation Preference per Series F Preferred Unit plus an amount equal to all distributions (whether or not earned or declared) accrued and unpaid thereon to the date of final distribution to such holder or (ii) an amount per Series F Preferred Unit equal to the amount which would have been payable had each Series F Preferred Unit been converted into OP Units immediately prior to such Liquidation (the “Series F Liquidation Amount”); but such holders shall not be entitled to any further payment. If, upon any Liquidation, the assets of the Partnership, or proceeds thereof, distributable among the holders of the Series F Preferred Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other units of any class or series of Series F Parity Units, then such assets, or the proceeds thereof, shall be distributed among the holders of Series F Preferred Units and any such other Series F Parity Units ratably in accordance with the amounts that would be payable on such Series F Preferred Units and any such other Series F Parity Units if all amounts payable thereon were paid in full.

(B) Subject to the rights of the holders of any Series F Parity Units or Series F Senior Units, upon any Liquidation of the Partnership, after payment shall have been made in full to the holders of the Series F Preferred Units, as provided in this Section 5, the holders of Series F Preferred Units shall have no other claim to the remaining assets of the Partnership and any other series or class or classes of Series F Junior Units shall, subject to the respective terms and provisions (if any) applying thereto, be entitled to receive any and all assets remaining to be paid or distributed, and the holders of the Series F Preferred Units and Series F Parity Units shall not be entitled to share therein.

6. Conversion.

(A) In connection with Series F Preferred Units held by the General Partner, unless such Series F Preferred Units have previously been redeemed pursuant to Section 7(A) hereof, at such time as there occurs a conversion of Shares of Series F Preferred Stock for REIT Shares, a corresponding amount of Series F Preferred Units shall automatically convert into OP Units, on a one-to-one basis (subject to appropriate adjustment in the event of any dividend, split, combination or other similar recapitalization with respect to the OP Units) on terms substantially similar to the terms for conversion of Shares of Series F Preferred Stock for REIT Shares contained in the Articles Supplementary. Each automatic conversion of Series F Preferred Units for OP Units shall be deemed to have been effected at such time as the concurrent conversion of the corresponding Shares of Series F Preferred Stock for REIT Shares shall have been deemed effected in accordance with the Charter, and Exhibit A to the Partnership Agreement shall be amended by the General Partner to reflect such conversion.

(B) In connection with Series F Preferred Units held by Limited Partners other than the General Partner, unless such Series F Preferred Units have previously been redeemed pursuant to Section 7(B) hereof, such Limited Partner shall have the right to convert all or a portion of its Series F Preferred Units into OP Units upon the occurrence of a Change of Control (as defined in the Articles Supplementary) on terms substantially similar to the terms for conversion of Shares of Series F Preferred Stock contained in the Articles Supplementary.

7. Redemption.

(A) In connection with Series F Preferred Units held by the General Partner, if the General Partner redeems or otherwise purchases any Shares of Series F Preferred Stock, the Partnership shall automatically redeem a corresponding number of Series F Preferred Units, on the date of redemption or other purchase of Shares of Series F Preferred Stock by the General Partner (“Redemption Date”) on terms substantially similar to the terms for redemption of Shares of Series F Preferred Stock contained in the Articles Supplementary. Any automatic redemption of Series F Preferred Units shall be deemed to occur on the Redemption Date immediately prior to the related redemption or other purchase of Shares of Series F Preferred Stock, and Exhibit A to the Partnership Agreement shall be amended by the General Partner to reflect such redemption.

(B) In connection with Series F Preferred Units held by Limited Partners other than the General Partner, the Partnership shall not redeem such Series F Preferred Units prior to the fifth anniversary of the Original Issue Date (as defined in the Articles Supplementary) except upon the occurrence of a Change of Control (as defined in the Articles Supplementary). The redemption of Series F Preferred Units by the Partnership shall be on terms substantially similar to the terms for redemption of Shares of Series F Preferred Stock contained in the Articles Supplementary.

(C) Limited Partners holding Series F Preferred Units shall have the right to have the Partnership redeem all or a portion of such Series F Preferred Units on such terms and conditions as provided for the redemption of OP Units in Section 8.04 of the Partnership Agreement, which section will apply to such redemption as if all references to OP Units in such section were to Series F Preferred Units, including the requirement that such Series F Preferred Units be outstanding for at least one year prior to being redeemable by a Limited Partner.

8. Voting.

(A) (a) Except as otherwise set forth herein, the Series F Preferred Units shall not have any relative, participating, optional or other special voting rights and powers, and the consent of the holders thereof shall not be required for the taking of any Partnership action.

(B) So long as any Series F Preferred Units are outstanding, in addition to any other vote or consent of holders of Series F Preferred Units required by the Partnership Agreement, the affirmative vote of at least a majority of the votes entitled to be cast by the holders of Series F Preferred Units, and at the time outstanding, voting as a single class, given in person or by proxy, either in writing without a meeting or by vote at any meeting called for the purpose, shall be necessary for effecting or validating any amendment, alteration or repeal of any of the provisions of the Partnership Agreement, including the terms of the Series F Preferred Units, that materially and adversely affects the voting powers, rights or preferences of the Series F Preferred Units; provided, however, (A) with respect to the occurrence of any Liquidation, so long as the Series F Preferred Units remain outstanding with the terms thereof materially unchanged, or in the case in which the Partnership is not the surviving entity, so long as units into which the Series F Preferred Units have been converted in any successor entity to the Partnership remain outstanding with the terms thereof materially unchanged, the occurrence of such Liquidation shall not be deemed to materially and adversely affect such voting powers, rights or preferences of the Series F Preferred Units, and in such case such holders shall not have any voting rights with respect to the occurrence of a Liquidation; (B) the amendment of the provisions of the Partnership Agreement so as to authorize or create or to increase the number of the Series F Junior Units, Series F Parity Units or Series F Junior Units shall not be deemed to materially and adversely affect the voting powers, rights or preferences of the Series F Preferred Units and (C) any filing with the Secretary of State of the State of Delaware by the Partnership in connection with a merger, consolidation or sale of all or substantially all of the assets of the Partnership shall not be deemed to be an amendment, alteration or repeal of any of the provisions of the Partnership Agreement, including the terms of the Series F Preferred Units.

9. Transfers. Subject to the provisions of Section 9.02(b), (c) and (d) of the Partnership Agreement, no Series F Preferred Unit shall be transferred, sold, assigned, conveyed, gifted, pledged, encumbered, hypothecated, mortgaged, exchanged or otherwise disposed of by law or otherwise (collectively, a “Transfer”) without the prior written consent of the General Partner, which may be withheld or denied by the General Partner it is sole and absolute discretion. Notwithstanding anything in the Partnership Agreement to the contrary, any Transfer in contravention of the terms of this Exhibit A shall be void and ineffectual and shall not be binding upon, or recognized by the Partnership.

10. Reserved.

11. Miscellaneous.

(A) Series F Preferred Units will not have any designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms and conditions of redemption, other than those specifically set forth herein, in the Partnership Agreement, and as may be provided under applicable law.

(B) The headings of the various subdivisions herein are for convenience only and will not affect the meaning if interpretation of any of the provisions herein.

(C) The preferences, conversion and other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption of the Series F Preferred Units may be waived, and any of such provisions of the Series F Preferred Units may be amended, with the approval of holders of at least sixty-six and two-thirds percent (66 and 2/3%) of the issued outstanding Series F Preferred Units (other than Series F Preferred Units held by the General Partner), voting as a single class in person or by proxy.

12. Severability of Provisions. Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable if a period of time were extended or shortened or a particular percentage were increased or decreased, the such court may make such change as shall be necessary to render the provision in question effective and valid under applicable law.

EX-5.1

Exhibit 5.1

November 27, 2013

American Realty Capital Properties, Inc.

405 Park Avenue

New York, New York 10022

Re: Registration Statement on Form S-4 (File No. 333-190056)

Ladies and Gentlemen:

We have served as Maryland counsel to American Realty Capital Properties, Inc., a Maryland corporation (the “Company”), in connection with certain matters of Maryland law arising out of the registration of up to 36,904,870 shares (the “Common Shares”) of common stock, par value $0.01 per share, of the Company (the “Common Stock”) and 42,216,611 shares (the “Preferred Shares” and, together with the Common Shares, the “Shares”) of 6.70% Series F Cumulative Redeemable Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Stock”) to be issued by the Company in connection with the merger of American Realty Capital Trust IV, Inc., a Maryland corporation (“ARCT IV”), with and into Thunder Acquisition, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of the Company (“Merger Sub”), pursuant to the Agreement and Plan of Merger, dated as of July 1, 2013, as amended by the First Amendment to Agreement and Plan of Merger, dated as of October 6, 2013 (collectively, the “Merger Agreement”), by and among the Company, ARC Properties Operating Partnership, L.P., a Delaware limited partnership, Merger Sub, ARCT IV and American Realty Capital Operating Partnership IV, L.P., a Delaware limited partnership. The Shares are covered by the above-referenced Registration Statement, and all amendments thereto (the “Registration Statement”), filed by the Company with the United States Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “1933 Act”).

In connection with our representation of the Company, and as a basis for the opinion hereinafter set forth, we have examined originals, or copies certified or otherwise identified to our satisfaction, of the following documents (herein collectively referred to as the “Documents”):

1.          The Registration Statement and the related form of Proxy Statement/Prospectus included therein in the form in which it was transmitted to the Commission under the 1933 Act;

American Realty Capital Properties, Inc.

November 27, 2013

Page 2

2.          The charter of the Company (the “Charter”), certified by the State Department of Assessments and Taxation of Maryland (the “SDAT”);

3.          The form of Articles Supplementary for the Preferred Stock (the “Articles Supplementary”), certified as of the date hereof by an officer of the Company;

4.          The Bylaws of the Company, certified as of the date hereof by an officer of the Company;

5.          A certificate of the SDAT as to the good standing of the Company, dated as of a recent date;

6.          Resolutions adopted by the Board of Directors of the Company relating to, among other matters, the approval of the Merger Agreement and the issuance of the Shares (the “Resolutions”), certified as of the date hereof by an officer of the Company;

7.          The Merger Agreement;

8.          A certificate executed by an officer of the Company, dated as of the date hereof; and

9.          Such other documents and matters as we have deemed necessary or appropriate to express the opinion set forth below, subject to the assumptions, limitations and qualifications stated herein.

In expressing the opinion set forth below, we have assumed the following:

1.          Each individual executing any of the Documents, whether on behalf of such individual or another person, is legally competent to do so.

2.          Each individual executing any of the Documents on behalf of a party (other than the Company) is duly authorized to do so.

3.          Each of the parties (other than the Company) executing any of the Documents has duly and validly executed and delivered each of the Documents to which such party is a signatory, and such party’s obligations set forth therein are legal, valid and binding and are enforceable in accordance with all stated terms.

American Realty Capital Properties, Inc.

November 27, 2013

Page 3

4.          All Documents submitted to us as originals are authentic. The form and content of all Documents submitted to us as unexecuted drafts do not differ in any respect relevant to this opinion from the form and content of such Documents as executed and delivered. All Documents submitted to us as certified or photostatic copies conform to the original documents. All signatures on all such Documents are genuine. All public records reviewed or relied upon by us or on our behalf are true and complete. All representations, warranties, statements and information contained in the Documents are true and complete. There has been no oral or written modification of or amendment to any of the Documents, and there has been no waiver of any provision of any of the Documents, by action or omission of the parties or otherwise.

5.          Prior to the issuance of the Shares, the Articles Supplementary will be filed with and accepted for record by the SDAT.

6.          The Shares will not be issued or transferred in violation of any restriction or limitation contained in Section 4.07 of Article 4 of the Charter.

7.          Upon the issuance of any of the Shares, the total number of shares of Common Stock issued and outstanding will not exceed the total number of shares of Common Stock that the Company is then authorized to issue under the Charter and the total number of shares of Preferred Stock issued and outstanding will not exceed the total number of shares of Preferred Stock that the Company is then authorized to issue under the Charter. We note that, as of the date hereof, there are more than 36,904,870 shares shares of Common Stock available for issuance under the Charter.

Based upon the foregoing, and subject to the assumptions, limitations and qualifications stated herein, it is our opinion that:

1.          The Company is a corporation duly incorporated and existing under and by virtue of the laws of the State of Maryland and is in good standing with the SDAT.

2.          The issuance of the Shares has been duly authorized and, when and if issued and delivered against payment therefor in accordance with the Registration Statement, the Resolutions and the Merger Agreement, the Shares will be validly issued, fully paid and nonassessable.

American Realty Capital Properties, Inc.

November 27, 2013

Page 4

The foregoing opinion is limited to the laws of the State of Maryland and we do not express any opinion herein concerning any other law. We express no opinion as to compliance with any federal or state securities laws, including the securities laws of the State of Maryland, or as to federal or state laws regarding fraudulent transfers. To the extent that any matter as to which our opinion is expressed herein would be governed by any jurisdiction other than the State of Maryland, we do not express any opinion on such matter. The opinion expressed herein is subject to the effect of judicial decisions which may permit the introduction of parol evidence to modify the terms or the interpretation of agreements.

The opinion expressed herein is limited to the matters specifically set forth herein and no other opinion shall be inferred beyond the matters expressly stated. We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof.

This opinion is being furnished to you for submission to the Commission as an exhibit to the Registration Statement. We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of the name of our firm therein. In giving this consent, we do not admit that we are within the category of persons whose consent is required by Section 7 of the 1933 Act.

Very truly yours,

/s/ Venable LLP

EX-8.1

Exhibit 8.1

Proskauer Rose LLP   Eleven Times Square   New York, NY 10036-8299

November 27, 2013

American Realty Capital Properties, Inc.

405 Park Avenue

New York, New York 10022

Re: Opinion of Proskauer Rose LLP as to Tax Matters

Ladies and Gentlemen:

We have acted as counsel to American Realty Capital Properties, Inc., a Maryland corporation (the “Company”), with respect to certain tax matters in connection with the filing of a proxy statement/prospectus, dated November 27, 2013 (the “Proxy Statement/Prospectus”), as part of a registration statement on Form S-4, Registration No. 333-190056, initially filed with the Securities and Exchange Commission (the “Commission”) on November 18, 2013, as amended through the date hereof (the “Registration Statement)” which term includes the Proxy Statement/Prospectus), relating to the proposed merger of American Realty Capital Trust IV, Inc., a Maryland corporation, with and into a direct wholly owned subsidiary of ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”) and the proposed merger of American Realty Capital Operating Partnership IV, L.P, a Delaware limited partnership, with and into the Operating Partnership. In connection with the filing of the Registration Statement, we have been asked to provide an opinion regarding (i) the classification of the Company as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”)¹; and (ii) the accuracy and fairness of the discussion in the Proxy Statement/Prospectus under the caption “Material U.S. Federal Income Tax Consequences—Material U.S. Federal Income Tax Consequences of Owning and Disposing of ARCP Common Stock and Series F Preferred Stock”; and (iii) the treatment of the Operating Partnership as a partnership for U.S. federal income tax purposes.

The opinions set forth in this letter are based on relevant provisions of the Code, Treasury Regulations issued thereunder (including Proposed and Temporary Regulations), and interpretations of the foregoing as expressed in court decisions, administrative determinations, and the legislative history as of the date hereof. These provisions and interpretations are subject to differing interpretations or change at any time, which may or may not be retroactive in effect, and which might result in modifications of our opinions. In this regard, an opinion of counsel with respect to an issue represents counsel’s best judgment as to the outcome on the merits with respect to such issue, is not binding on the Internal Revenue Service (“IRS”) or the courts, and is not a guarantee that the IRS will not assert a contrary position with respect to an issue, or that a court will not sustain such a position if asserted by the IRS.

In rendering our opinions, we have made such factual and legal examinations, including an examination of such statutes, regulations, records, certificates and other documents as we have considered necessary or appropriate, including, but not limited to, the following: (1) the Registration Statement (including exhibits thereto); (2) the Articles of Amendment and Restatement of the Company, as amended through the date hereof; and (3) the Second Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated February 28, 2013, and any amendments thereto through the date hereof. The opinions set forth in this letter also are based on certain written factual representations and covenants made by an officer of the Company, in the Company’s own capacity and in its capacity as the general partner of the Operating Partnership, in a letter to us of even date herewith (the “Officer’s Certificate”) relating to, among other things, those factual matters as are germane to the determination that the Company and the Operating Partnership, and the entities in which they hold direct or indirect interests, have been and will be formed, owned and operated in such a manner that the Company has and will continue to satisfy the requirements for qualification as a REIT under the Code (collectively, the Officer’s Certificate, and the documents described in the immediately preceding sentence are referred to herein as the “Transaction Documents”).

¹ Unless otherwise stated, all section references herein are to the Code.

Boca Raton | Boston | Chicago | Hong Kong | London | Los Angeles | New Orleans | New York | Newark | Paris | São Paulo | Washington, D.C.

American Realty Capital Properties, Inc.

November 27, 2013

Page 2

In our review, we have assumed, with your consent, that all of the factual representations, covenants and statements set forth in the Transaction Documents are true and correct, and all of the obligations imposed by any such documents on the parties thereto have been and will be performed or satisfied in accordance with their terms. Moreover, we have assumed that the Company and the Operating Partnership each will be operated in the manner described in the relevant Transaction Documents. We have, consequently, assumed and relied on your representations that the information presented in the Transaction Documents (including, without limitation, the Officer’s Certificate and the exhibits thereto) accurately and completely describe all material facts relevant to our opinion. We have not undertaken any independent inquiry into, or verification of, these facts for the purpose of rendering this opinion. While we have reviewed all representations made to us to determine their reasonableness, we have no assurance that they are or will ultimately prove to be accurate. No facts have come to our attention, however, that would cause us to question the accuracy or completeness of such facts or Transaction Documents in a material way. Our opinion is conditioned on the continuing accuracy and completeness of such representations, covenants and statements. Any material change or inaccuracy in the facts referred to, set forth, or assumed herein or in the Transaction Documents may affect our conclusions set forth herein.

We also have assumed the legal capacity of all natural persons, the genuineness of all signatures, the proper execution of all documents, the authenticity of all documents submitted to us as originals, the conformity to originals of documents submitted to us as copies, and the authenticity of the originals from which any copies were made. Where documents have been provided to us in draft form, we have assumed that the final executed versions of such documents will not differ materially from such drafts.

With respect to matters of Maryland law, we have relied upon the opinion of Venable LLP, counsel for the Company, dated November 27, 2013, that the Company is a validly organized and duly incorporated corporation under the laws of the State of Maryland.

Based upon, and subject to the foregoing and the discussion below, we are of the opinion that:

(i) commencing with the Company’s taxable year ended on December 31, 2011, the Company has been organized in conformity with requirements for qualification as a REIT under the Code, and the Company’s actual method of operation through the date hereof has enabled and, assuming the Company’s election to be treated as a REIT is not either revoked or intentionally terminated, the Company’s proposed method of operation will enable it to continue to meet, the requirements for qualification and taxation as a REIT under the Code;

(ii) the discussion in the Proxy Statement/Prospectus under the caption “Material U.S. Federal Income Tax Consequences—Material U.S. Federal Income Tax Consequences of Owning and Disposing of ARCP Common Stock and Series F Preferred Stock,” to the extent it constitutes matters of law, summaries of legal matters or legal conclusions, is a fair and accurate summary of the U.S. federal income tax considerations that are likely to be material to a holder of the Company’s common stock; and

 

American Realty Capital Properties, Inc.

November 27, 2013

Page 3

(iii) the Operating Partnership has been and will be taxed as a partnership and not an association or publicly traded partnership (within the meaning of Section 7704) subject to tax as a corporation, for U.S. federal income tax purposes beginning with its first taxable year.

We express no opinion on any issue relating to the Company, the Operating Partnership or the discussion in the Proxy Statement/Prospectus under the caption “Material U.S. Federal Income Tax Considerations” other than as expressly stated above.

The Company’s qualification and taxation as a REIT will depend upon the Company’s ability to meet on a continuing basis, through actual annual operating and other results, the various requirements under the Code as described in the Registration Statement with regard to, among other things, the sources of its gross income, the composition of its assets, the level of its distributions to stockholders, and the diversity of its stock ownership. Proskauer Rose LLP will not review the Company’s compliance with these requirements on a continuing basis. Accordingly, no assurance can be given that the actual results of the operations of the Company and the Operating Partnership, the sources of their income, the nature of their assets, the level of the Company’s distributions to stockholders and the diversity of its stock ownership for any given taxable year will satisfy the requirements under the Code for the Company’s qualification and taxation as a REIT.

This opinion letter is rendered to you for your use in connection with the Registration Statement and may be relied upon by you and your stockholders.  Except as provided in the next paragraph, this opinion letter may not be distributed, quoted in whole or in part or otherwise reproduced in any document, filed with any governmental agency, or relied upon by any other person for any other purpose (other than as required by law) without our express written consent.

We consent to the use of our name under the captions “Material U.S. Federal Income Tax Considerations” and “Legal Matters” in the Proxy Statement/Prospectus and to the use of these opinions for filing as Exhibit 8.1 to the Registration Statement. In giving this consent, we do not hereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or the rules and regulations of the Commission thereunder.

Sincerely yours,

/s/ Proskauer Rose LLP

EX-99.2

PO BOX 55046, BOSTON, MA 02205-5046
	Your Vote is Important!
	Vote by Internet
	Please go to the electronic voting site at www.eproxyvote.com/arc. Follow the on-line instructions. If you vote by internet, you do not have to return your proxy card.
	Vote by Telephone
	Please call us toll free at 1-866-977-7699, and follow the instructions provided. If you vote by telephone, you do not have to return your proxy card.
	Vote by Mail
	Complete, sign and date your proxy card and return it promptly in the enclosed envelope.

If Voting by Mail Remember to sign and date the form below. Please ensure the address to the right shows through the window of the enclosed postage paid return envelope. Proxy Tabulator P.O. Box 55046 Boston, MA 02205-9836  

American Realty Capital Trust IV, Inc.

NOTICE OF SPECIAL MEETING OF STOCKHOLDERS TO BE HELD ON _________ __, ____

THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS

The undersigned stockholder of American Realty Capital Trust IV, Inc., a Maryland corporation (“ARCT IV”), hereby appoints Edward M. Weil, Jr. and Brian S. Block, and each of them as proxies, for the undersigned with full power of substitution in each of them, to attend the special meeting of stockholders of ARCT IV to be held at ____________, New York, New York _____, on _________ __, ____, at __:__ a.m./p.m., local time, and any and all adjournments and postponements thereof, to cast, on behalf of the undersigned, all votes that the undersigned is entitled to cast, and otherwise to represent the undersigned, at such meeting and all adjournments and postponements thereof, with all power possessed by the undersigned as if personally present and to vote in his or her discretion on such matters as may properly come before the meeting. The undersigned hereby acknowledges receipt of the Notice of Special Meeting of Stockholders and of the accompanying proxy statement/prospectus, which is hereby incorporated by reference, and revokes any proxy heretofore given with respect to such meeting.

When this proxy is properly executed, the votes entitled to be cast by the undersigned stockholder will be cast in the manner directed on the reverse side. If no direction is made, the votes entitled to be cast by the undersigned stockholder will be cast “FOR” the Proposals. At the present time, the Board of Directors knows of no other matters to be presented at the special meeting.

Please sign exactly as your name appears on this proxy card. When shares of common stock are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by president or other authorized officer. If a partnership, please sign in partnership name by general partner or other authorized person.
Stock Owner signature	Date
Co-Owner signature	Date

YOUR VOTE IS IMPORTANT!

Important Notice Regarding the Availability of Proxy Materials

for the Special Meeting of Stockholders to Be Held on _________ __, ____.

The Proxy Statement/Prospectus is available at: www.eproxyvote.com/arc.

THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE FOLLOWING PROPOSALS.IF NO SPECIFICATIONS ARE MADE, SUCH PROXY WILL BE VOTED “FOR” ALL PROPOSALS.

		FOR	AGAINST	ABSTAIN
1.	Proposal to approve the merger of ARCT IV with and into Thunder Acquisition, LLC, a Delaware limited liability company and a direct wholly owned subsidiary of the ARCP OP (as defined below), pursuant to that certain Agreement and Plan of Merger, dated as of July 1, 2013, as amended on October 6, 2013 and October 11, 2013 and as it may be further amended from time to time, which we refer to as the merger agreement, by and among American Realty Capital Properties, Inc., a Maryland corporation, which we refer to as ARCP, ARC Properties Operating Partnership, L.P., a Delaware limited partnership and the operating partnership of ARCP, which we refer to as the ARCP OP, Thunder Acquisition, LLC, ARCT IV and American Realty Capital Operating Partnership IV, L.P., a Delaware limited partnership and the operating partnership of ARCT IV (a copy of the merger agreement is attached as Annex A, and copies of the amendments to the merger agreement are attached as Annex D and Annex E to the proxy statement/prospectus accompanying this proxy card), and the other transactions contemplated by the merger agreement; and	¨	¨	¨

¨ ¨ ¨

2. Proposal to adjourn the special meeting to a later date or dates, if necessary or appropriate, to solicit additional proxies in favor of the proposal to approve the merger and the other transactions contemplated by the merger agreement.

YOUR VOTE IS IMPORTANT! PLEASE SIGN, DATE, AND RETURN YOUR PROXY CARD TODAY.

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Convertible Preferred Stock

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Convertible Preferred Stock [Abstract]

Other Long Term Debt

Note 8 - Other Long Term Debt

The Company has the following class of convertible preferred stock outstanding at September 30, 2013:

Issue	Date Issued		Units		Gross Proceeds (In thousands)		Liquidation Preference		Dividend/Interest Rate
Shares classified as Liabilities:
Series C Convertible Preferred Stock		June 7, 2013		28,398,213	$	445,000	$	15.67		5.81	%

Convertible Obligation to Series C Convertible Preferred Stockholders

The fair value of the convertible obligation to Series C convertible preferred stockholders ("Series C Stock") was determined to approximate the proceeds received at issuance of $445.0 million. Pursuant to the terms of Series C Stock purchase agreements, the Series C Stock is expected to be settled promptly following the Company's merger with CapLease or December 31, 2013, in a combination of common shares of the Company and cash consideration at the election of the Company. At September 30, 2013, the fair value of the obligation was remeasured and determined to be $449.8, which is based predominately on the estimated settlement value. The change in fair value is recorded as interest expense in the consolidated statement of operations and comprehensive loss. The settlement is expected to close promptly following the CapLease Merger, which, as discussed in Note 2 - Mergers and Acquisitions, consummated on November 5, 2013.

On September 15, 2013, the Company entered into definitive purchase agreements pursuant to which it will issue Series D Preferred, par value $0.01 per share, at a 5.81% coupon and common stock, par value $0.01 per share, to institutional holders of Series C Convertible Preferred Stock promptly following the close of the Company's merger with CapLease, which consummated on November 5, 2013, via a private placement. In accordance with the terms of the purchase agreement relating to the Company's previously issued Series C Preferred, Series C Preferred will be redeemed for cash or common stock. Pursuant to the new definitive purchase agreements, the Company will issue approximately 21.7 million shares of Series D Preferred and 15.1 million shares of common stock to the holders of Series C Preferred. The shares of Series D Preferred will be convertible, in certain circumstances, into common stock or Series E Cumulative Preferred Stock or redeemable into cash, at the discretion of the Company.

Convertible Senior Note Offering

On July 29, 2013, the Company issued $300.0 million of Convertible Senior Notes and issued an additional $10.0 million of Convertible Senior Notes on August 1, 2013. The notes mature August 1, 2018 and are convertible to cash or shares of the Company's common stock at the Company's option in accordance with the agreement. The fair value of the notes was determined at issuance to be $300.6 million, resulting in a debt discount of $9.4 million with an offset recorded to additional paid-in capital representing the equity component of the notes for the conversion options. The discount is being amortized to interest expense over the expected life of the notes. As of September 30, 2013, the carrying value of the notes was $301.0 million.

Note 10 - Convertible Preferred Stock

On May 11, 2012, the Company entered into a securities purchase agreement with an unaffiliated third party that is an "accredited investor" (as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as amended) pursuant to which the Company sold 545,454 shares of the Company's Series A convertible preferred stock for gross proceeds of $6.0 million and aggregate net proceeds of $5.8 million after offering-related fees and expenses.

The Series A convertible preferred stock has a liquidation preference of $11.00 per share, plus accrued and unpaid dividends, and a redemption premium equal to one percent (1%). Commencing on May 31, 2012, the Company has been paying cumulative dividends on the Series A convertible preferred stock monthly in arrears at the annualized rate of $0.77 per share.

The Series A convertible preferred stock is convertible into the Company's common stock, at the option of the holder of the Series A convertible preferred stock, at a conversion price equal to $11.00 per share, beginning one year after the date of issuance. The Company, at its option at any time, may redeem the Series A convertible preferred stock, in whole or in part, at $11.00 per share.

On July 24, 2012, the Company entered into a securities purchase agreement with an unaffiliated third party that is an "accredited investor" (as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as amended) pursuant to which the Company sold 283,018 shares of the Company's Series B convertible preferred stock for gross proceeds of approximately $3.0 million. After deducting offering-related fees and expenses, the aggregate net proceeds to the Company from the sale of the Series B convertible preferred stock were approximately $3.0 million.

The Series B convertible preferred stock has a liquidation preference of $10.60 per share, plus accrued and unpaid dividends, and a redemption premium equal to one percent (1%). Commencing on August 15, 2012, the Company has been paying cumulative dividends on the Series B convertible preferred stock monthly in arrears at an annualized rate of $0.74 per share.

The Series B convertible preferred stock is convertible into the Company's common stock, at the option of the holder of the Series B convertible preferred stock, at a conversion price equal to $10.60 per share, beginning one year after the date of issuance. The Company, at its option at any time, may redeem the Series B convertible preferred stock, in whole or in part, at $10.60 per share.

The Series A convertible preferred stock and the Series B convertible preferred stock each ranks senior to the Company's common stock and on parity with each other, and junior to any other preferred stock the Company may issue other than additional series of the Series A convertible preferred stock or Series B convertible preferred stock.

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Mortgage Note Payable (Schedule of Mortgage Notes Payable) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended		12 Months Ended
	Sep. 30, 2013 property		Dec. 31, 2012 property		Dec. 31, 2011 property
Mortgage Loans on Real Estate [Line Items]
Outstanding Loan Amount	$ 269,891		$ 265,118		$ 35,320
Effective interest rate	3.11%
Mortgages [Member]
Mortgage Loans on Real Estate [Line Items]
Encumbered Properties	165		164		29
Outstanding Loan Amount	$ 269,891		$ 265,118		$ 35,320
Debt, Weighted Average Interest Rate	4.26%	[1]	4.28%	[1],[2]	4.45%	[2]
Debt, Weighted Average Maturity Term	4 years 8 months 6 days		5 years 6 months 3 days	[3],[4]	4 years 4 months 24 days	[3]
Minimum [Member] | Mortgages [Member]
Mortgage Loans on Real Estate [Line Items]
Effective interest rate	2.73%		3.32%		3.75%
Maximum [Member] | Mortgages [Member]
Mortgage Loans on Real Estate [Line Items]
Effective interest rate	6.13%		6.13%		5.32%

[1] Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 2.73% to 6.13% at September 30, 2013 and 3.32% to 6.13% at December 31, 2012.

[2] Mortgage notes payable have fixed rates or rates that are fixed through the use of derivative instruments. Effective interest rates range from 3.32% to 6.13% at December 31, 2012 and 3.75% to 5.32% at December 31, 2011.

[3] Weighted average remaining years until maturity as of December 31, 2012 and 2011, respectively.

[4] Weighted average remaining years until maturity as of September 30, 2013 and December 31, 2012, respectively.

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) In Thousands, except Per Share data, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Rental income	$ 0	$ 56,681	$ 18,301	$ 138,060	$ 35,713	$ 64,791	$ 3,762
Direct financing lease income		977	0	977	0
Operating expense reimbursements	0	3,226	515	6,878	773	2,002	208
Total revenues	0	60,884	18,816	145,915	36,486	66,793	3,970
Operating expenses:
Acquisition related	0	1,235	14,636	21,961	27,235	42,761	3,898
Merger and other transaction related	0	3,791	0	146,240	20	2,603	0
Property operating	0	4,103	1,076	8,972	1,656	3,484	220
General and administrative	0	1,586	496	4,018	1,523	5,092	735
Equity-based compensation		7,180	480	11,510	804
Depreciation and amortization	0	39,382	11,632	92,211	22,161	40,700	2,111
Operating fees to affiliates	0	0	0	0	212	212	0
Total operating expenses	0	57,277	28,320	284,912	53,611	94,852	6,964
Operating income (loss)	0	3,607	(9,504)	(138,997)	(17,125)	(28,059)	(2,994)
Other income (expenses):
Interest expense	0	(24,135)	(3,454)	(41,589)	(7,596)	(11,856)	(960)
Loss on contingent value rights		(38,542)	0	(69,676)	0
Income from investment securities	0	0	0	218	0	534	0
Gain on sale of investment securities		0	0	451	0
Loss on derivative instruments		(99)	0	(144)	0
Other income, net	0	45	206	171	273	426	2
Total other expenses, net	0	(62,731)	(3,248)	(110,569)	(7,323)	(10,896)	(958)
Loss from continuing operations	0	(59,124)	(12,752)	(249,566)	(24,448)	(38,955)	(3,952)
Net (gain) loss from continuing operations attributable to non-controlling interests	0	(30)	65	726	138	255	69
Net loss from continuing operations attributable to stockholders	0	(59,154)	(12,687)	(248,840)	(24,310)	(38,700)	(3,883)
Discontinued operations:
Net income (loss) from operations of held for sale properties	0	96	44	159	(53)	(145)	(37)
(Loss) gain on held for sale properties	0	0	(47)	14	(452)	(600)	(815)
Net income (loss) from discontinued operations	0	96	(3)	173	(505)	(745)	(852)
Net (loss) income from discontinued operations attributable to non-controlling interests	0	(5)	0	(9)	27	46	36
Net income (loss) from discontinued operations attributable to stockholders	0	91	(3)	164	(478)	(699)	(816)
Net loss	0	(59,028)	(12,755)	(249,393)	(24,953)	(39,700)	(4,804)
Net (income) loss attributable to non-controlling interests	0	(35)	65	717	165	301	105
Net loss attributable to stockholders	0	(59,063)	(12,690)	(248,676)	(24,788)	(39,399)	(4,699)
Other comprehensive income (loss):
Designated derivatives, fair value adjustments	0	(3,622)	(1,198)	9,218	(4,037)	(3,743)	(98)
Unrealized (loss) gain on investment securities, net	0	(440)	34	(427)	34	(93)	0
Comprehensive loss	$ 0	$ (63,125)	$ (13,854)	$ (239,885)	$ (28,791)	$ (43,235)	$ (4,797)
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$ 0.00	$ (0.32)	$ (0.09)	$ (1.49)	$ (0.31)	$ (0.38)	$ (1.04)
Basic and diluted net loss per share attributable to common stockholders	$ 0.00	$ (0.32)	$ (0.09)	$ (1.49)	$ (0.32)	$ (0.39)	$ (1.26)

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Real Estate Investments

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Real Estate [Abstract]

Real Estate Investments

Note 4 - Real Estate Investments

The following table presents the allocation of the assets acquired during the periods presented (dollar amounts in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013(1)			2012
Real estate investments, at cost:
Land	$	13,620		$	62,171	$	273,047		$	146,439
Buildings, fixtures and improvements		71,046			334,566		787,192			707,499
Total tangible assets		84,666			396,737		1,060,239			853,938
Acquired intangibles:
In-place leases		10,014			56,622		117,458			117,797
Below market leases		(4,200	)		-		(4,200	)		-
Total assets acquired, net		90,480			453,359		1,173,497			971,735
OP Units issued to acquire real estate investments		-			-		-			(6,352	)
Cash paid for acquired real estate investments	$	90,480		$	453,359	$	1,173,497		$	965,383
Number of properties acquired		38			207		528			377

(1) Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

Land, buildings, fixtures and improvements, in-place lease intangibles, investments in direct financing leases and below market leases amounting to $826.3 million, are comprised of $202.3 million, $502.5 million, $68.3 million, $57.4 million and $(4.2) million, respectively, which have been provisionally assigned to each class of asset, pending receipt of the final appraisals and other information being prepared by a third-party specialist.

As part of the update to the preliminary allocation of the purchase prices for the GE Capital portfolio, the Company reclassified approximately $9.9 million from direct financing lease receivables to investments in real estate at cost.

During the second quarter of 2013, the Company classified a Shaw's Supermarket in Plymouth, MA, as a held for sale property. As of September 30, 2013, the Company owned two properties which were classified as held for sale, including one vacant property.

The following table presents unaudited pro forma information as if the acquisitions during the three and nine months ended September 30, 2013 had been consummated on January 1, 2012. Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $1.2 million and $14.6 million for the three months ended September 30, 2013 and 2012, respectively, and merger and other transaction related expenses of $3.8 million for the three months ended September 30, 2013 . The unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $22.0 million and $27.2 million for the nine months ended September 30, 2013 and 2012, respectively, and merger and other transaction related expenses of $146.2 million and $20 thousand for the nine months ended September 30, 2013 and 2012, respectively.

	Three Months Ended September 30,					Nine Months Ended September 30,
(Amounts in thousands)	2013			2012		2013			2012
Pro forma revenues	$	59,074		$	20,949	$	177,222		$	160,534
Pro forma net income (loss) attributable to stockholders	$	(53,842	)	$	864	$	(68,300	)	$	71,352

Future Lease Payments

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands):

	Future Minimum Base Rent Payments		Future Minimum Direct Financing Lease Payments(1)
October 1, 2013 - December 31, 2013	$	54,638	$	1,083
2014		217,104		4,410
2015		213,758		4,324
2016		209,300		4,279
2017		198,779		3,975
Thereafter		1,298,718		12,258
Total	$	2,192,297	$	30,329

(1) 38 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties.

Net Investment in Direct Financing Leases

The components of the Company's net investment in direct financing leases are as follows (in thousands):

	September 30, 2013
Future minimum lease payments receivable	$	30,329
Unguaranteed residual value of property		41,859
Unearned income		(14,739	)
Net investment in direct financing leases	$	57,449

Tenant Concentration

The following table lists the tenants of the Company whose annualized rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of September 30, 2012. Annualized rental income for net leases is rental income on a straight-line basis as of the period reported, which includes the effect of tenant concessions such as free rent, as applicable. There were no tenants exceeding 10% of consolidated annualized rental income on a straight-line basis at September 30, 2013.

	September 30,
Tenant	2013		2012
Dollar General		*		16.9	%
FedEx		*		14.1	%
Citizens Bank		*		13.6	%

* The tenants' annualized rental income was not greater than 10% of total consolidated annualized rental income for all portfolio properties as of the period specified.

No other tenant represents more than 10% of total consolidated annualized rental income on a straight-line basis for the periods presented.

Geographic Concentration

The Company had no concentrations of properties where annual rental income for properties in any state, on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of September 30, 2013 or 2012.

Note 4 - Real Estate Investments

The following table presents the allocation of the assets acquired and liabilities of the Company assumed during the periods presented (dollar amounts in thousands):

	Year Ended December 31,
	2012			2011
Real estate investments, at cost:
Land	$	223,917		$	25,624
Buildings, fixtures and improvements		1,174,747			161,925
Total tangible assets		1,398,664			187,549
Acquired intangibles:
In-place leases		189,182			21,777
Above market leases		1,264			-
Total real estate investments acquired		1,589,110			209,326
OP Units issued to acquire real estate investments		(6,352	)		-
Cash paid to acquire real estate investments(1)	$	1,582,758		$	209,326
Number of properties acquired		524			129

(1) For the year ended December 31, 2011, the amount includes the properties that were contributed in September 2011 in conjunction with the completion of the Company's IPO by the Contributor at amortized cost as well as $17.5 million of properties acquired by the Company following its IPO.

The Company owns and operates commercial properties. As of December 31, 2012, the Company owned 654 properties, one of which was vacant and classified as held for sale. As of December 31, 2011, the Company owned 131 properties, two of which were vacant and classified as held for sale. The Contributor, an affiliate of the Sponsor, contributed 63 properties (the "Contributed Properties") in September 2011 in conjunction with the completion of the IPO at amortized cost.

The following table reflects the number and related purchase prices of properties acquired during the years ended December 31, 2012 and 2011 of the Company (dollar amounts in thousands):

	Number of Properties		Base Purchase Price
Year ended December 31, 2011		129	$	209,326
Year ended December 31, 2012(1)		524		1,589,110
Total portfolio as of December 31, 2012		653	$	1,798,436

(1) Buildings, fixtures and improvements have been provisionally allocated for two properties with an aggregate purchase price of $183.9 million pending receipt of the cost segregation analyses on such assets being prepared by a third party specialist.

The following table presents unaudited pro forma information as if the acquisitions during the year ended December 31, 2012, had been consummated on December 2, 2010 (date of inception). Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to reclass acquisition and transaction related expenses of $42.8 million from the year ended December 31, 2012 to the period from December 2, 2010 to December 31, 2010.

(Amounts in thousands)	Year Ended December 31,				Period from December 2, 2010 (Date of Inception) to December 31, 2010
	2012		2011
Pro forma revenues	$	146,821	$	144,081	$	26,989
Pro forma net income (loss) attributable to stockholders	$	27,816	$	27,052	$	(33,660	)

Future Lease Payments

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands):

	Future Minimum Base Rent Payments
2013	$	140,200
2014		140,941
2015		141,292
2016		141,579
2017		138,411
Thereafter		955,557
Total	$	1,657,980

Tenant Concentration

The following table lists the tenants of the Company whose annualized rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2012 and 2011. Annualized rental income for net leases is rental income on a straight-line basis as of December 31, 2012, which includes the effect of tenant concessions such as free rent, as applicable. The Company did not own any properties as of December 31, 2010.

Tenant	2012			2011
Dollar General		12.3	%		20.8	%
Citizens Bank		11.8	%		40.8	%
FedEx		10.2	%		*
Home Depot		*			13.7	%
Walgreens		*			11.1	%

* The tenants' annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

The termination, delinquency or non-renewal of one or more leases by any of the above tenants may have a material effect on revenues. No other tenant represents more than 10% of the annualized rental income for the periods presented.

Geographic Concentration

The following table lists the states where the Company has concentrations of properties where annual rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2012 and 2011:

State	2012			2011
Illinois		11.2	%		*
South Carolina		*			15.2	%
Ohio		*			12.9	%
Michigan		*			17.4	%

* The state's annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

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Discontinued Operations and Properties Held for Sale

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Properties Held for Sale

Note 17 - Discontinued Operations and Properties Held for Sale

The Company separately classifies properties held for sale in the accompanying consolidated balance sheets and operating results for those properties as discontinued operations in the accompanying consolidated statements of operations and comprehensive loss. In the normal course of business, changes in the market or changes in credit risk of certain tenants, among other factors, may compel the Company to decide to classify a property as held for sale or reclassify a property that is designated as held for sale back to held for investment. In these situations, the property is transferred to held for sale or back to held for investment at the lesser of fair value or depreciated cost. As of September 30, 2013 and December 31, 2012, the Company held two properties (one vacant and one occupied) and one vacant property, respectively, classified as held for sale on the accompanying respective consolidated balance sheets. The occupied property classified as held for sale generated approximately $0.4 million of cash flow from rental income for the nine months ended September 30, 2013.

Disposition of Asset Held for Sale

On March 5, 2013, the Company executed a purchase and sale agreement to sell a Citizens Bank branch in Worth, IL classified as held for sale as of September 30, 2013. The sale price of the asset is $0.7 million in cash, which approximates the carrying value of the property.

On July 17, 2013, the Company executed a letter of intent to sell a Shaw's Supermarket in Plymouth, MA classified as held for sale as of September 30, 2013. The sale price of the asset is $6.3 million in cash, which is approximately $0.9 million greater than the carrying value of the property.

Note 17 - Discontinued Operations and Properties Held for Sale

The Company separately classifies properties held for sale in the accompanying consolidated balance sheets and operating results for those properties as discontinued operations in the accompanying consolidated statements of operations and comprehensive loss. In the normal course of business, changes in the market may compel the Company to decide to classify a property as held for sale or reclassify a property that is designated as held for sale back to held for investment. In these situations, the property is transferred to held for sale or back to held for investment at the lesser of fair value or depreciated cost. As of December 31, 2012 and 2011, the Company held one and two vacant properties, respectively, which were classified as held for sale on the accompanying respective consolidated balance sheets.

On July 1, 2012, the Company sold one of the vacant properties, which was located in Havertown, PA, for net proceeds of $0.6 million and recorded a loss on held for sale properties of $0.5 million. Additionally, in 2012, the Company recorded an impairment on assets held for sale of $0.1 million on its remaining property classified as held for sale.

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Related Party Transactions and Arrangements (Schedule of General and Administrative Expenses Absorbed) (Details) (Absorbed General and Administrative Expenses [Member], Manager [Member], ARC Properties Advisors, LLC [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Absorbed General and Administrative Expenses [Member] | Manager [Member] | ARC Properties Advisors, LLC [Member]
Schedule of General and Administrative Expenses Absorbed [Line Items]
Related Party Transaction, Amounts of Transaction	$ 0	$ 0	$ 0	$ 234	$ 234	$ 20
Due from Related Parties	$ 0		$ 0		$ 0	$ 0

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Credit Facilities (Details) (USD $)	9 Months Ended	12 Months Ended								3 Months Ended								0 Months Ended		3 Months Ended							0 Months Ended			12 Months Ended	0 Months Ended			12 Months Ended	3 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2013 Unsecured Debt [Member]	Feb. 14, 2013 Unsecured Debt [Member]	Sep. 30, 2013 Term Loan [Member]	Sep. 30, 2013 Revolving Credit Facility [Member]	May 18, 2013 Additional Funding Agreement Terms [Member] Unsecured Debt [Member]	Mar. 18, 2013 Additional Funding Agreement Terms [Member] Unsecured Debt [Member]	Sep. 30, 2013 Minimum [Member]	Mar. 31, 2013 Minimum [Member]	Sep. 30, 2013 Maximum [Member]	Mar. 31, 2013 Maximum [Member]	Sep. 30, 2013 External Credit Rating, Non Investment Grade [Member] Minimum [Member]	Mar. 31, 2013 External Credit Rating, Non Investment Grade [Member] Minimum [Member]	Sep. 30, 2013 External Credit Rating, Non Investment Grade [Member] Maximum [Member]	Mar. 31, 2013 Term Loan [Member]	Jul. 20, 2012 Term Loan [Member] Minimum [Member] RBS Citizens, N.A. [Member]	Jul. 20, 2012 Term Loan [Member] Maximum [Member] RBS Citizens, N.A. [Member]	Sep. 30, 2013 Term Loan [Member] External Credit Rating, Investment Grade [Member] Minimum [Member]	Sep. 30, 2013 Term Loan [Member] External Credit Rating, Investment Grade [Member] Maximum [Member]	Jul. 20, 2013 Revolving Credit Facility [Member]	Mar. 31, 2013 Revolving Credit Facility [Member]	Dec. 31, 2012 Revolving Credit Facility [Member] property	Dec. 31, 2011 Revolving Credit Facility [Member] property	Dec. 31, 2012 Revolving Credit Facility [Member] Unsecured Debt [Member]	Sep. 07, 2011 Revolving Credit Facility [Member] Minimum [Member]	Jul. 20, 2012 Revolving Credit Facility [Member] Minimum [Member] RBS Citizens, N.A. [Member]	Sep. 07, 2011 Revolving Credit Facility [Member] Minimum [Member] RBS Citizens, N.A. [Member]	Dec. 31, 2012 Revolving Credit Facility [Member] Minimum [Member] RBS Citizens, N.A. [Member]	Sep. 07, 2011 Revolving Credit Facility [Member] Maximum [Member]	Jul. 20, 2012 Revolving Credit Facility [Member] Maximum [Member] RBS Citizens, N.A. [Member]	Sep. 07, 2011 Revolving Credit Facility [Member] Maximum [Member] RBS Citizens, N.A. [Member]	Dec. 31, 2012 Revolving Credit Facility [Member] Maximum [Member] RBS Citizens, N.A. [Member]	Sep. 30, 2013 Revolving Credit Facility [Member] External Credit Rating, Investment Grade [Member] Minimum [Member]	Sep. 30, 2013 Revolving Credit Facility [Member] External Credit Rating, Investment Grade [Member] Maximum [Member]	Sep. 07, 2011 Letters of Credit	Sep. 30, 2013 Variable Interest Rate [Member] Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,900,000,000			$ 1,700,000,000	$ 1,450,000,000	$ 940,000,000	$ 760,000,000	$ 2,500,000,000	$ 2,500,000,000								$ 810,000,000					$ 100,000,000	$ 640,000,000														$ 10,000,000	$ 85,000,000
Debt Instrument, Basis Spread on Variable Rate														1.60%	1.60%	2.20%		2.10%	3.50%	1.15%	2.00%						2.15%	2.50%			2.90%	3.00%			0.90%	1.75%
Line of Credit Facility, Commitment Fee Percentage										0.15%	0.15%	0.25%	0.25%
Line of credit facility, unused fee, as a percent of available but unused credt capacity																													0.15%	0.15%			0.25%	0.25%
Senior corporate credit facility	600,000,000	0																							42,400,000
Debt Instrument, Interest Rate, Stated Percentage	1.93%
Line of Credit Facility, Amount Bearing Fixed Interest Rate, Amount	515,000,000
Line of Credit, Amount Bearing Fixed Interest Rate, Percentage	2.78%
Line of credit, remaining borrowing capacity																									20,400,000
Senior secured revolving credit facility	0	124,604,000	42,407,000																							124,600
Effective interest rate	3.11%																							3.11%	3.17%
Line of Credit Facility, Commitment Fee Percentage, Threshold, Unused Capacity as a Percentage of Current Capacity																																		50.00%
Number of Real Estate Properties, Used as Collateral																								114	59
Debt instrument, end of term fee		$ 100,000

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Preferred and Common Stock

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Preferred and Common Stock [Abstract]

Preferred and Common Stock

Note 11 - Preferred and Common Stock

Convertible Preferred Stock

During the three months ended September 30, 2013, the Company converted all 545,454 outstanding shares of its Series A Convertible Preferred Stock and all 283,018 outstanding shares of Series B Convertible Preferred Stock into 829,629 shares of the Company's common stock, which included dividends on the preferred stock.

Preferred Stock

On September 16, 2013, the Board of Directors unanimously approved the issuance of Series D Preferred Stock and the issuance of Series E Preferred Stock. As of September 30, 2013, there were no shares issued or outstanding under the Series D Preferred Stock plan or the Series E Preferred Stock plan. On October 6, 2013, in connection with the modification to the ARCT IV Merger, the Board of Directors unanimously approved the issuance of Series F Preferred Stock.

Increases in Authorized Common Stock

On July 2, 2013, the Company filed articles of amendment to its charter to increase the number of authorized shares of common stock to 750,000,000 shares.

Offerings

On August 1, 2012, the Company filed a $500 million universal shelf registration statement and a resale registration statement with the SEC. Each registration statement became effective on August 17, 2012. As of September 30, 2013, the Company had issued 2.1 million shares of common stock under the $500 million universal shelf registration statement. No preferred stock, debt or equity-linked security had been issued under this $500 million universal shelf registration statement. The resale registration statement, as amended, registers the resale of up to 1,882,248 shares of common stock issued in connection with any future conversion of certain currently outstanding restricted shares, convertible preferred stock or limited partnership interests in the OP.

In January 2013, the Company commenced its "at the market" equity offering program ("ATM") in which it may from time to time offer and sell shares of its common stock having an aggregate offering proceeds of up to $60.0 million. The shares will be issued pursuant to the Company's $500.0 million universal shelf registration statement.

On March 13, 2013, the Company filed a universal automatic shelf registration statement that was automatically declared effective and achieved well-known seasoned issuer ("WKSI") status. The Company intends to maintain both the $500 million universal shelf registration statement and the WKSI universal automatic shelf registration statement.

The following are the Company's equity offerings of common stock during the nine months ended September 30, 2013 (dollar amounts in millions):

Type of offering	Closing Date		Number of Shares(1)		Gross Proceeds
Registered follow on offering		January 29, 2013		2,070,000	$	26.7
ATM		January 1 - September 30, 2013		553,300		8.9
Private placement offering		June 7, 2013		29,411,764		455.0
Dividends paid in common stock(2)		August 5, 2013		1,157		-
Total				32,036,221	$	490.6

(1) Excludes 140.7 million shares of common stock that were issued to the stockholders of ARCT III's common stock in conjunction with the ARCT III Merger.

(2) Represents common shares issued to holders of the Series A Preferred Stock in lieu of unpaid dividends.

Dividends

The Company's board of directors has authorized, and the Company began paying, dividends since October 2011 on the fifteenth day of each month to stockholders of record on the eighth day of such month. During the nine months ended September 30, 2013, the board of directors of the Company has authorized the following increases in the Company's dividend.

Dividend increase declaration date	Annualized dividend per share		Effective date
March 17, 2013	$	0.91		June 8, 2013
May 28, 2013	$	0.94		December 8, 2013*
October 23, 2013	$	1.00		**

* The dividend increase became effective at the close of the CapLease Merger, which consummated on November 5, 2013.

** The dividend increase is contingent upon, and effective with, the close of the Cole Merger.

The annualized dividend rate at September 30, 2013 was $0.910 per share.

Common Stock Repurchases

On August 20, 2013, the Company's board of directors reauthorized its $250 million share repurchase program which was originally authorized in February 2013. During the three and nine months ended September 30, 2013, the Company repurchased approximately 0.6 million shares at an average price of $13.06 per share or $7.5 million in total.

Upon the closing of the ARCT III Merger, on February 28, 2013, 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock, were paid in cash at $12.00 per share, which is equivalent to 27.7 million shares of the Company's common stock based on the Exchange Ratio. In addition, 148.1 million shares of ARCT III's common stock were converted to shares of the Company's common stock at the Exchange Ratio, resulting in an additional 140.7 million shares of the Company's common stock outstanding after the exchange.

Note 11 - Common Stock

On August 1, 2012, the Company filed a $500.0 million universal shelf registration statement and a resale registration statement with the SEC. Each registration statement became effective on August 17, 2012. As of March 31, 2013, we had issued 2.1 million shares of common stock through a follow on offering and pursuant to the ATM (as defined below) offering under the $500.0 million universal shelf registration statement. No preferred stock, debt or equity-linked security had been issued under the $500.0 million universal shelf registration statement. The resale registration statement, as amended, registers the resale of up to 1,882,248 shares of common stock issued in connection with any future conversion of certain currently outstanding restricted shares, convertible preferred stock or limited partnership interests in the OP. As of March 31, 2013, no common stock had been issued under the resale registration statement.

On March 14, 2013, the Company filed a universal automatic shelf registration statement and achieved well-known seasoned issuer ("WKSI") status. The Company intends to maintain both the $500.0 million universal shelf registration statement and the WKSI universal automatic shelf registration statement.

In January 2013, the Company commenced its "at the market" equity offering program ("ATM") in which it may from time to time offer and sell shares of its common stock having an aggregate offering proceeds of up to $60.0 million. The shares will be issued pursuant to the Company's $500.0 million universal shelf registration statement.

The following are the Company's public equity offerings of common stock (dollar amounts in millions) since inception through March 31, 2013:

Type of offering	Closing Date		Number of Shares		Gross Proceeds
IPO		September 7, 2011		5,574,131	$	67.4
Follow on offering		November 2, 2011		1,497,924		15.8
Underwriters' over allotment		November 7, 2011		74,979		0.8
Follow on offering		June 18, 2012		3,250,000		30.3
Underwriters' over allotment		July 9, 2012		487,500		4.6
Follow on offering		January 29, 2013		2,070,000		26.7
ATM		January 1 - March 31, 2013		61,000		0.8
Total				13,015,534	$	146.4

The table above excludes 140.7 million shares of common stock that was issued to the share holders of ARCT III's common stock in conjunction with the Merger.

The consolidated financial statements are presented as if the Merger had occurred prior to December 31, 2012, resulting in total common stock issued and outstanding of 179.2 million shares, including restricted shares of 0.3 million. Such calculation of the Company's common stock issued and outstanding at December 31, 2012 is based on the combination of 11.2 million shares of the Company's common stock issued and outstanding prior to the Merger, and 168.0 million shares of the Company's common stock based upon the Exchange Ratio applied on 176.9 million shares of ARCT III common stock upon consummation of the Merger, pursuant to the Merger Agreement, if all ARCT III shares were converted to Company stock.

Upon the closing of the Merger, 29.2 million shares of the then outstanding shares of ARCT III's common stock were paid in cash at $12.00 per share, which equals 27.7 million shares of the Company's common stock after the application of the Exchange Ratio. In addition, upon closing of the Merger, 148.1 million shares of ARCT III's common stock were converted to shares of Company's common stock at the Exchange Ratio, resulting in an additional 140.7 million shares of the Company's common stock outstanding after the exchange.

The Company's board of directors has authorized, and the Company began paying, dividends since October 2011 on the fifteenth day of each month to stockholders of record on the eight day of such month. Since October 2011, the board of directors of the Company has authorized the following increases in the Company's dividend.

Dividend increase declaration date	Annualized dividend per share		Effective date
September 7, 2011	$	0.8750		October 9, 2011
February 27, 2012	$	0.8800		March 9, 2012
March 16, 2012	$	0.8850		June 9, 2012
June 27, 2012	$	0.8900		September 9, 2012
September 30, 2012	$	0.8950		November 9, 2012
November 29, 2012	$	0.9000		February 9, 2013
March 17, 2013	$	0.9100		June 8, 2013

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Derivatives and Hedging Activities (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Derivatives, Fair Value [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax	$ 27,000
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred	4,800,000
Assets Needed for Immediate Settlement, Aggregate Fair Value	$ 2,000,000

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Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value	$ 9,480	$ 41,654	$ 0
Derivative Asset	7,088	0
Derivatives, at fair value	7,088	0
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	(1,785)	(3,830)
Derivatives, at fair value	1,785	3,830	98
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Fair Value at Issuance	(445,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	20,362
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Fair Value Adustment	(74,503)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	499,141
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,170,866	389,722
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	1,174,164	395,660
Convertible Obligation [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Fair Value at Issuance	(445,000)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Fair Value Adustment	(4,827)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	449,827
Contingent Value Rights Obligation [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Fair Value at Issuance	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	20,362
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Fair Value Adustment	(69,676)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3	49,314
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		37,824
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		3,830
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		41,654
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value	9,480
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value	0
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value	9,480
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value	0
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives, at fair value	7,088
Derivatives, at fair value	1,785	3,830	98
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives, at fair value	0
Derivatives, at fair value	0	0	0
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives, at fair value	7,088
Derivatives, at fair value	1,785	3,830	98
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivatives, at fair value	0
Derivatives, at fair value	0	0	0
Preferred Stock and Senior Notes [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		41,654
Preferred Stock and Senior Notes [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		0
Preferred Stock and Senior Notes [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		0
Preferred Stock and Senior Notes [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities, at fair value		41,654
Convertible Debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	300,975	0
Convertible Debt [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	300,628	0
Convertible Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	(449,827)
Convertible Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	0
Convertible Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	(449,827)
Convertible Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	0
Contingent Value Rights Obligation [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	(49,314)
Contingent Value Rights Obligation [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	0
Contingent Value Rights Obligation [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	(49,314)
Contingent Value Rights Obligation [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative Financial Instruments, Liabilities, Fair Value Disclosure	0
Mortgages Notes Payable [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	269,891	265,118	35,320
Mortgages Notes Payable [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	273,536	271,056	35,686
Senior Secured Credit Facility [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	0	124,604
Senior Secured Credit Facility [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	0	124,604
Unsecured Debt [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	600,000	0	42,407
Unsecured Debt [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 600,000	$ 0	$ 42,407

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Commitments and Contingencies (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule

The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter for certain ground and office lease obligations (amounts in thousands):

	Future Minimum Base Rent Payments
October 1, 2013 - December 31, 2013	$	261
2014		731
2015		732
2016		733
2017		737
Thereafter		6,754
Total	$	9,948

The Company entered into a ground lease agreement related to the acquisition of a Walgreens Pharmacy. The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter under this arrangement (amounts in thousands):

	Future Minimum Base Rent Payments
2013	$	160
2014		160
2015		160
2016		160
2017		160
Thereafter		600
Total	$	1,400

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. GAAP.

Non-Controlling Interests

Non-Controlling Interests

As described in Note 1 - Organization, certain affiliates and non-affiliated third parties have been issued OP Units. Holders of OP Units are considered to be non-controlling interest holders in the OP and their ownership interest is reflected as equity in the consolidated balance sheets. In addition, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Furthermore, upon conversion of OP Units to common stock, any difference between the fair value of common shares gives and the carrying value of the OP Units converted is recorded as a component of equity. As of September 30, 2013 and December 31, 2012, there were 9,051,661 and 1,621,349 OP Units outstanding, respectively.

Reclassification

Reclassification

Certain reclassifications have been made to the previously issued historical financial statements of the Company to conform to this presentation.

Reclassification

Certain reclassifications have been made to the previously issued historical consolidated financial statements of the Company and ARCT III to conform to this consolidated presentation.

Deferred Costs, Net

Deferred Costs, Net

Deferred costs, net consists of deferred financing costs net of accumulated amortization, deferred leasing costs net of accumulated amortization and deferred offering costs.

Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined the financing will not close. At December 31, 2012 and 2011, the Company had $15.1 million and $3.1 million, respectively, of deferred financing costs net of accumulated amortization.

Deferred leasing costs, consisting primarily of lease commissions and payments made to assume existing leases, are deferred and amortized over the term of the lease. At December 31, 2012 and 2011, the Company had $0.2 million and $0.3 million, respectively, of deferred leasing costs, net of accumulated amortization.

Deferred offering costs represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with registering to sell shares of the Company's common stock. As of December 31, 2012, the Company had $0.1 million of deferred offering costs related to the Company's $500.0 million universal shelf and resale registration statements filed with the SEC in August 2012. As of December 31, 2011, the Company had no deferred offering costs.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, to record investments in real estate, real estate taxes, and derivative financial instruments and hedging activities, as applicable.

Principles of Consolidation and Basis of Presentation

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.

Formation Transactions

Formation Transactions

Upon the effectiveness of the IPO, the Company acquired certain properties from affiliated entities of the Company and, as such, the Company was no longer considered to be in the development stage. The contribution of the properties from affiliates in the initial formation of the Company was accounted for as a reorganization of entities under common control and therefore all assets and liabilities related to the contributed properties were accounted for on the carryover basis of accounting whereby the real estate investments were contributed at amortized cost and all assets and liabilities of the predecessor entities became assets and liabilities of the Company.

Real Estate Investments

Real Estate Investments

The Company records acquired real estate at cost and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 40 years for buildings, five to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets.

Investment in Direct Financing Leases

Investment in Direct Financing Leases

The Company has acquired certain properties that are subject to leases that qualify as direct financing leases in accordance with U.S. GAAP due to the significance of the lease payments from the inception of the leases compared to the fair value of the property. Investments in direct financing leases represent the fair value of the remaining lease payments on the leases and the estimated fair value of any expected residual property value at the end of the lease term. The fair value of the remaining lease payments is estimated using a discounted cash flow based on interest rates that would represent the Company's incremental borrowing rate for similar types of debt. The expected residual property value at the end of the lease term is estimated using market data and assessments of the remaining useful lives of the properties at the end of the lease terms, among other factors. Income from direct financing leases is calculated using the effective interest method over the remaining term of the lease.

As part of the update to the provisional allocation of the purchase price for the GE Capital portfolio, the Company reclassified approximately $9.9 million from investment in direct financing leases receivables to investments in real estate, at cost.

Impairment of Long Lived Assets

Impairment of Long Lived Assets

Operations related to properties that have been sold or properties that are intended to be sold are presented as discontinued operations in the statement of operations for all periods presented, and properties intended to be sold are designated as "held for sale" on the accompanying consolidated balance sheets.

When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used.

For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. At December 31, 2012, and 2011, the Company had one and two, respectively, vacant properties classified as properties held for sale. See Note 17 - Discontinued Operations and Properties Held for Sale.

Convertible Obligation to Series C Convertible Preferred Stockholders

Convertible Obligation to Series C Convertible Preferred Stockholders

On June 7, 2013, the Company issued, through a private placement, 28.4 million shares of Series C Convertible Preferred Stock (the "Series C Stock") for gross proceeds of $445.0 million. Due to an unconditional obligation to either redeem or convert the Series C Stock into a variable number of shares of common stock that is predominantly based on a fixed monetary amount, the preferred securities are classified as an obligation under U.S. GAAP and are presented in the consolidated balance sheet as a liability. In September 2013, the Company entered into an agreement with the investors in the Series C Stock whereby, promptly following the closing of the CapLease Merger, the Series C Stock will be converted, in accordance with the terms of the original agreement, into 1.4 million shares of common stock representing an estimated $18.3 million of value, with the remaining balance of Series C Stock settled in cash. Total consideration to be paid in cash is estimated to be $435.6 million. The conversion and redemption of Series C Stock is expected to close promptly following the Company's merger with CapLease, which, as discussed in Note 2 - Mergers and Acquisitions, consummated on November 5, 2013. Certain holders of the Series C Stock have agreed to reinvest their cash proceeds into a new Series D Cumulative Convertible Preferred stock ("Series D Stock") representing $249.6 million or 18.8 million shares. The remaining Series C stock holders have agreed to reinvest their cash proceeds from the redemption of the Series C Stock into common stock representing $186.0 million or 15.1 million shares. The convertible obligation to Series C convertible preferred stockholders is recorded at fair value at September 30, 2013, which approximates the estimated settlement value. The preferred shares liability will be carried at fair value and adjusted on a quarterly basis.

Allocation of Purchase Price of Acquired Assets

Allocation of Purchase Price of Acquired Assets

The Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets acquired based on their respective fair values. Tangible assets include land, buildings, equipment and tenant improvements on an as-if vacant basis. The Company utilizes various estimates, processes and information to determine the as-if vacant property value. Estimates of value are made using customary methods, including data from appraisals, comparable sales, discounted cash flow analysis and other methods. Identifiable intangible assets include amounts allocated to acquire leases for above- and below-market lease rates, the value of in-place leases, and the value of customer relationships.

Amounts allocated to land, buildings, equipment and fixtures are based on cost segregation studies performed by independent third-parties or on the Company's analysis of comparable properties in its portfolio. Depreciation is computed using the straight-line method over the estimated lives of forty years for buildings, five to ten years for building equipment and fixtures, and the shorter of the useful life or the remaining lease term for tenant improvements.

The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by the Company in its analysis of the in-place lease intangibles include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period, which typically ranges from six to 18 months. The Company also estimates costs to execute similar leases including leasing commissions, legal and other related expenses.

Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease intangibles are amortized as a decrease to rental income over the remaining term of the lease. The capitalized below-market lease values will be amortized as an increase to rental income over the remaining term and any fixed rate renewal periods provided within the respective leases. In determining the amortization period for below-market lease intangibles, the Company initially will consider, and periodically evaluate on a quarterly basis, the likelihood that a lessee will execute the renewal option. The likelihood that a lessee will execute the renewal option is determined by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

The aggregate value of intangibles assets related to customer relationships is measured based on the Company's evaluation of the specific characteristics of each tenant's lease and the Company's overall relationship with the tenant. Characteristics considered by the Company in determining these values include the nature and extent of the Company's existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals, among other factors.

The value of in-place leases is amortized to expense over the initial term of the respective leases, which range primarily from 2 to 20 years. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does the amortization period for intangible assets exceed the remaining depreciable life of the building. If a tenant terminates its lease, the unamortized portion of the in-place lease value and customer relationship intangibles is charged to expense.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed.

Intangible lease assets of the Company consist of the following as of December 31, 2012 and 2011 (amounts in thousands):

	December 31,
	2012			2011
In-place leases, gross	$	210,959		$	21,777
Accumulated amortization on in-place leases		(11,183	)		(3,282	)
In-place leases, net of accumulated amortization		199,776			18,495
Above market leases, gross		1,264			-
Accumulated amortization on above market leases		(116	)		-
Above market leases, net of accumulated amortization		1,148			-
Total intangible lease assets, net	$	200,924		$	18,495

The following table provides the weighted-average amortization period as of December 31, 2012 for intangible lease assets and the projected amortization expense and adjustments of rental income for the next five years of the Company (amounts in thousands):

	Weighted- Average Amortization Period in Years		2013		2014		2015		2016		2017
In-place leases:
Total to be included in amortization expense		11.9	$	19,265	$	19,234	$	18,855	$	18,586	$	18,049
Above market leases:
Total to be included in rental income		5.0	$	252	$	252	$	252	$	252	$	122
Total intangible lease assets		11.9

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less.

The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company ("FDIC") up to an insurance limit. At December 31, 2012 and 2011, the Company had deposits of $156.9 million and $19.3 million, respectively, of which $154.8 million and $18.5 million were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted Cash

Restricted cash primarily consists of reserves related to lease expirations as well as maintenance, structural, and debt service reserves.

Contingent Valuation Rights

Contingent Valuation Rights

On June 7, 2013, the Company issued to certain common stock investors 29.4 million contingent value rights ("Common Stock CVR's") and to the Series C Convertible Preferred Stock investors 28.4 million contingent value rights ("Preferred Stock CVR's"). In September 2013, certain investors holding the Common Stock CVR's received $20.4 million representing the maximum payment of $1.50 per share as defined in the agreement. The remaining Common Stock CVR holders have deferred settlement of the amount owed to them of $23.7 million and will reinvest those proceeds in Series D Stock, which reinvestment is expected to occur, as discussed above, promptly following the CapLease Merger, which consummated on November 5, 2013.

In accordance with an agreement with the Preferred Stock CVR holders dated September 15, 2013, the Preferred Stock CVR's will be settled for $0.90 per Preferred CVR or a total of $25.6 million.

The holders of certain of the Preferred Stock CVR's have agreed to reinvest their payment into Series D Stock representing $14.6 million or 1.1 million shares with the remaining $11.0 million paid in cash. The settlement of the Preferred Stock CVR will occur promptly following the CapLease Merger, which consummated on November 5, 2013.

Changes in the fair value of the contingent valuation rights obligation is recorded in the consolidated statement of operations and comprehensive loss as an unrealized gain or loss in the period incurred.

Share Repurchase Program

Share Repurchase Program

ARCT III's board of directors had adopted a Share Repurchase Program ("SRP") that enabled stockholders to sell their shares to ARCT III in limited circumstances. The SRP permitted investors to sell their shares back to ARCT III after they had held them for at least one year, subject to the significant conditions and limitations described below.

The purchase price per share depended on the length of time investors had held such shares as follows: after one year from the purchase date - the lower of $9.25 or 92.5% of the amount they actually paid for each share; after two years from the purchase date - the lower of $9.50 or 95.0% of the amount they actually paid for each share; after three years from the purchase date - the lower of $9.75 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date - the lower of $10.00 or 100% of the amount they actually paid for each share.

ARCT III was only authorized to repurchase shares pursuant to the SRP up to the value of shares issued under the DRIP and limited the amount spent to repurchase shares in a given quarter to the value of the shares issued under the DRIP in that same quarter.

When a stockholder requested repurchases and the repurchases were approved by ARCT III's board of directors, it reclassified such obligation from equity to a liability based on the settlement value of the obligation. The following table reflects the number of shares repurchased for the years ended December 31, 2012 and 2011. There were no repurchases requested or fulfilled during the period from October 15, 2010 ("ARCT III's date of inception") to December 31, 2010.

Year ended December 31,	Number of Requests		Number of Shares		Average Price per Share
2011		1		2,375	$	10.00
2012		73		179,104		9.93
Cumulative repurchase requests as of December 31, 2012(1)		74		181,479	$	9.93

(1) Includes unfulfilled repurchase requests for 35,180 shares at a average price per share of $9.86, which were approved for repurchase as of December 31, 2012.

Upon the Merger the SRP was terminated.

Distribution Reinvestment Plan

Distribution Reinvestment Plan

Pursuant to the ARCT III distribution reinvestment plan or ("DRIP"), stockholders could have elected to reinvest distributions by purchasing shares of ARCT III common stock in lieu of receiving cash. No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP had the same rights and were treated in the same manner as if such shares were issued pursuant to ARCT III's initial public offering (the "ARCT III IPO"). Shares issued under the DRIP were recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions were declared. During the years ended December 31, 2012 and 2011, ARCT III issued 2.7 million and 27,169 shares of common stock, respectively, with a value of $26.8 million and $0.3 million, respectively, in each case with a par value per share of $0.01, pursuant to the DRIP. Upon the Merger, the DRIP was terminated.

Derivative Instruments

Derivative Instruments

The Company may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions.

The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments is recognized immediately in gains (losses) on derivative instruments in the consolidated statement of operations. If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.

Contingent Rental Income/Revenue Recognition

Contingent Rental Income

The Company owns certain properties that have associated leases that require the tenant to pay contingent rental income based on a percentage of the tenant's sales after the achievement of certain sales thresholds, which may be monthly, quarterly or annual targets. As a lessor, the Company defers the recognition of contingent rental income until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known.

Revenue Recognition

Upon the acquisition of real estate, certain properties will have leases where minimum rent payments increase during the term of the lease. The Company will record rental revenue for the full term of each lease on a straight-line basis. When the Company acquires a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Cost recoveries from tenants are included in tenant reimbursement income in the period the related costs are incurred, as applicable.

The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Since many of the leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. The Company defers the revenue related to lease payments received from tenants in advance of their due dates.

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company will record an increase in the allowance for uncollectible accounts or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss. As of December 31, 2012 and 2011, the Company determined that there was no allowance for uncollectible accounts necessary.

Offering and Related Costs

Offering and Related Costs

Offering and related costs include costs incurred in connection with the Company's issuance of common stock. These costs include, but are not limited to, (i) legal, accounting, printing, mailing and filing fees; (ii) escrow related fees, and (iii) reimbursement to the Dealer Manager for amounts they paid to reimburse the bonified due diligence expenses of broker-dealers.

Share-Based Compensation

Share-Based Compensation

The Company has a stock-based incentive award plan for its affiliated Manager, non-executive directors, officers, other employees and independent contractors who are providing services to the Company, as applicable, and a non-executive director restricted share plan, which are accounted for under the guidance for share-based payments. The expense for such awards is included in general and administrative expenses and is recognized over the vesting period or when the requirements for exercise of the award have been met. See Note 12 - Share-Based Compensation for additional information on these plans.

Income Taxes

Income Taxes

Each of the Company and ARCT III qualified as REITs under Sections 856 through 860 of the Internal Revenue Code (the "Code") commencing with the taxable year ended December 31, 2011. Being qualified for taxation as a REIT, each of the Company and ARCT III generally will not be subject to federal corporate income tax to the extent it distributes its REIT taxable income to its stockholders, and so long as it distributes at least 90% of its REIT taxable income. REITs are subject to a number of other organizational and operational requirements. Each of the Company and ARCT III may still be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Reportable Segments

Reportable Segments

The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company's investments in real estate generate rental revenue and other income through the leasing of properties, which comprised 100% of its total consolidated revenues. Although the Company's investments in real estate will be geographically diversified throughout the United States, management evaluates operating performance on an individual property level. The Company's properties have been aggregated into one reportable segment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board ("FASB") issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 6 - Derivatives and Hedging Activities for the Company's disclosure of information about offsetting and related arrangements.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued guidance which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The guidance is effective for annual and interim periods beginning after December 15, 2012 with early adoption permitted. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 6 - Derivatives and Hedging Activities for the Company's disclosure of the information about the amounts reclassified out of accumulated other comprehensive income by component.

In February 2013, the FASB issued new accounting guidance clarifying the accounting and disclosure requirements for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial position, results of operations or cash flows.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (the "FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as the Company's own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods ending after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual reporting periods ended after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations.

In December 2011, the FASB issued guidance which contains new disclosure requirements regarding the nature of and entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to make financial statements prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards and will give the financial statement users information about both gross and net exposures. The guidance is effective for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance is not expected to have a material impact on the Company's financial position or results of operations.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

In February 2013, the FASB issued guidance which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The guidance is effective for annual and interim periods beginning after December 15, 2012 with early adoption permitted. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued new accounting guidance clarifying the accounting and disclosure requirements for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial position, results of operations or cash flows.

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Subsequent Events

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

Note 18 - Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements except for the following:

Commitment for Senior Secured Term Loan Facility

On October 22, 2013, Barclays Bank PLC provided its commitment to the Company for a $2.175 billion senior secured term loan facility. The proceeds will be used (a) to fund the cash component of the consideration for the Cole Merger, (b) to refinance Cole's existing credit facilities and (c) to pay transaction costs. All amounts outstanding under the facility will bear interest, at the Company's option, at a rate per annum equal to a base rate plus 2.00% per annum or the reserve adjusted Eurodollar Rate plus 3.00% per annum. The facility will be available for drawings on or before April 22, 2014 subject to the Company's shareholder approval.

Completion of Acquisition of Assets

The following table presents certain information about the properties that the Company acquired from October 1, 2013 to November 6, 2013 (dollar amounts in thousands):

	No. of Buildings		Square Feet		Base Purchase Price(1)
Total Portfolio - September 30, 2013(2)		1,219		20,399,857	$	3,033,684
Acquisitions		109		13,624,593		2,126,441
Total portfolio - November 6, 2013(2)		1,328		34,024,450	$	5,160,125

(1) Contract purchase price, excluding acquisition and transaction related costs.

(2) Total portfolio excludes one vacant property contributed in September 2011, which was classified as held for sale at September 30, 2013.

Note 19 - Subsequent Events

The Company has evaluated subsequent events through the filing of this Current Report on Form 8-K, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements except for the following:

Public Equity Offering

On January 24, 2013, the Company priced an underwritten public follow-on offering of 1,800,000 shares of its common stock, par value $0.01 per share. The offering price to the public in the offering was $13.47 per share (before underwriting discounts and commissions). The underwriters fully exercised their option to purchase an additional 270,000 shares of common stock at the public offering price, less underwriting discounts and commissions. The offering closed on January 29, 2013 for a total of 2,070,000 shares of common stock. As a result, the Company received total net proceeds of approximately $26.5 million, after deducting underwriting discounts, commissions and related expenses.

ATM Program

In January 2013, the Company commenced its "at the market" equity offering ("ATM") program in which it may from time to time offer and sell shares of its common stock having an aggregate offering proceeds of up to $60.0 million. The shares will be issued pursuant to the Company's $500.0 million universal shelf registration statement. As of April 30, 2013, the Company had issued 553,000 shares at a weighted average price per share of $16.02 for net proceeds of $8.9 million. As of April 30, 2013, $51.1 million of shares of common stock remained available for issuance under the ATM program.

Investments Securities

During February 2013, ARCT III sold all of its investment securities for $44.2 million.

Related Party Common Stock Ownership

On March 4, 2013, certain affiliates of the Company purchased 100,000 shares of the Company's common stock.

Completion of Acquisition of Assets

The following table presents certain information about the properties that the Company acquired from January 1, 2013 to May 7, 2013 (dollar amounts in thousands):

	No. of Buildings		Square Feet		Base Purchase Price(1)
Total Portfolio - December 31, 2012(2)		653		15,421,465	$	1,798,436
Acquisitions		68		1,533,558		313,687
Total portfolio - May 7, 2013(2)		721		16,955,023	$	2,112,123

(1) Contract purchase price, excluding acquisition and transaction related costs.

(2) Total portfolio excludes one vacant property contributed in September 2011 which was classified as held for sale at December 31, 2012.

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Real Estate Investments (Details) (USD $)	1 Months Ended	3 Months Ended			9 Months Ended			12 Months Ended				24 Months Ended
	Dec. 31, 2010	Sep. 30, 2013 property		Sep. 30, 2012 property	Sep. 30, 2013 property		Sep. 30, 2012 property	Dec. 31, 2012 property		Dec. 31, 2011 property		Dec. 31, 2012 property	Aug. 09, 2013
Business Acquisition, Purchase Price Allocation, Land Acquired in Period		$ 13,620,000		$ 62,171,000	$ 273,047,000	[1]	$ 146,439,000	$ 223,917,000		$ 25,624,000
Business Acquisition, Purchase Price Allocation, Buildings, Fixtures and Improvements Acquired in Period		71,046,000		334,566,000	787,192,000	[1]	707,499,000	1,174,747,000		161,925,000
Business Acquisition, Purchase Price Allocation, Tangible Assets Acquired in Period		84,666,000		396,737,000	1,060,239,000	[1]	853,938,000	1,398,664,000		187,549,000
Business Acquisition, Purchase Price Allocation, Other Noncurrent Liabilities Assumed in Period		4,200,000		0	4,200,000	[1]	0
Business Acquisition, Purchase Price Allocation, Assets Acquired in Period, Net					18,000,000,000			1,589,110,000		209,326,000
Business Acquisition, Purchase Price Allocation, Assets Acquired in Period, Net		90,480,000		453,359,000	1,173,497,000	[1]	971,735,000	1,589,110,000	[2],[3]	209,326,000	[2]	(1,798,436,000)
OP units issued to acquire real estate investment	0	0		0	0	[1]	(6,352,000)	(6,352,000)		0
Payments to Acquire Real Estate	0	90,480,000		453,359,000	1,173,497,000	[1]	965,383,000	1,582,758,000		89,981,000
Number of Properties Acquired		38		207	528	[1]	377	524	[3]	129		653
Number of Real Estate Properties								654		131		654
Number Of Properties Contributed By Affiliate								63				63
Investment in direct financing leases, net		57,449,000			57,449,000			0				0
Costs of Real Estate Services and Land Sales	0	1,235,000		14,636,000	21,961,000		27,235,000	42,761,000		3,898,000
Merger and other transaction related	0	3,791,000		0	146,240,000		20,000	2,603,000		0
Pro forma revenues	26,989,000	59,074,000		20,949,000	177,222,000		160,534,000	146,821,000		114,081,000
Pro forma net income (loss) attributable to stockholders	(33,660,000)	(53,842,000)		864,000	(68,300,000)		71,352,000	27,816,000		27,052,000
Future Minimum Payments, October 1, 2013 - December 31, 2013		54,638,000			54,638,000			140,200,000				140,200,000
Future MinimumDirect Financing Lease Payments, October 1, 2013 - December 31, 2013		1,083,000	[4]		1,083,000	[4]
Future Minimum Payments, 2014		217,104,000			217,104,000			140,941,000				140,941,000
Future Minimum Direct Financing Lease Payments, 2014		4,410,000	[4]		4,410,000	[4]
Future Minimum Payments, 2015		213,758,000			213,758,000			141,292,000				141,292,000
Future Minimum Direct Financing Lease Payments, 2015		4,324,000	[4]		4,324,000	[4]
Future Minimum Payments, 2016		209,300,000			209,300,000			141,579,000				141,579,000
Future Minimum Direct Financing Lease Payments, 2016		4,279,000	[4]		4,279,000	[4]
Future Minimum Payments, 2017		198,779,000			198,779,000			138,411,000				138,411,000
Future Minimum Direct Financing Lease Payments, 2017		3,975,000	[4]		3,975,000	[4]
Future Minimum Payments, Thereafter		1,298,718,000			1,298,718,000			955,557,000				955,557,000
Future Minimum Direct Financing Lease Payments, Thereafter		12,258,000	[4]		12,258,000	[4]
Future Minimum Payments, Total		2,192,297,000			2,192,297,000			1,657,980,000				1,657,980,000
Future Minimum Direct Financing Lease Payments, Total		30,329,000	[4]		30,329,000	[4]
Unguaranteed residual value of property		41,859,000			41,859,000
Unearned income		14,739,000			14,739,000
Real Estate Investment Property, at Cost		2,971,050,000			2,971,050,000			1,798,490,000		209,326,000		1,798,490,000	2,300,000
Leases, Acquired-in-Place [Member]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets Acquired in Period		10,014,000		56,622,000	117,458,000	[1]	117,797,000	189,182,000		2,177,000
Above Market Leases [Member]
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets Acquired in Period								1,264,000
Business Acquisition, Purchase Price Allocation, Other Noncurrent Liabilities Assumed in Period		4,200,000		0	4,200,000	[1]	0
Dollar General [Member]
Concentration Risk, Percentage						[5]	16.90%
Citizens Bank [Member]
Concentration Risk, Percentage						[5]	14.10%
FedEx [Member]
Concentration Risk, Percentage						[5]	13.60%
GE Capital Portfolio [Member]
Number of Properties Acquired					447
Portfolio Acquisitions [Member]
Business Acquisition, Purchase Price Allocation, Land Acquired in Period					202,300,000
Business Acquisition, Purchase Price Allocation, Buildings, Fixtures and Improvements Acquired in Period					502,500,000
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets Acquired in Period					68,300,000
Business Acquisition, Purchase Price Allocation, Other Noncurrent Liabilities Assumed in Period					4,200,000
Real Estate Investment, Aggregate Purchase Price		826,300,000			826,300,000
Real Estate Investment, Purchase Price Allocation, Direct Financing Leases					57,400,000
Restatement Adjustment [Member]
Merger and other transaction related	42,800,000
Geographic Concentration Risk [Member] | Annual rental income [Member] | Illinois [Member]
Concentration Risk, Percentage								11.20%			[6]
Geographic Concentration Risk [Member] | Annual rental income [Member] | South Carolina [Member]
Concentration Risk, Percentage									[6]	15.20%
Geographic Concentration Risk [Member] | Annual rental income [Member] | Ohio [Member]
Concentration Risk, Percentage									[6]	12.90%
Geographic Concentration Risk [Member] | Annual rental income [Member] | Michigan [Member]
Concentration Risk, Percentage									[6]	17.40%
Customer Concentration Risk [Member] | Annual rental income [Member] | Dollar General [Member]
Concentration Risk, Percentage								12.30%		20.80%
Customer Concentration Risk [Member] | Annual rental income [Member] | Walgreens [Member]
Concentration Risk, Percentage									[7]	11.10%
Customer Concentration Risk [Member] | Annual rental income [Member] | Citizens Bank [Member]
Concentration Risk, Percentage								11.80%		40.80%
Customer Concentration Risk [Member] | Annual rental income [Member] | FedEx [Member]
Concentration Risk, Percentage								10.20%			[7]
Customer Concentration Risk [Member] | Annual rental income [Member] | Home Depot [Member]
Concentration Risk, Percentage									[7]	13.70%
Direct Financing Lease [Member] | GE Capital Portfolio [Member]
Number of Properties Acquired					38
Direct Financing Lease [Member]
Real Estate Investment Property, at Cost		$ 9,900,000			$ 9,900,000
Direct Financing Lease [Member] | GE Capital Portfolio [Member]
Number of Properties Acquired					38

[1] Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

[2] For the year ended December 31, 2011, the amount includes the properties that were contributed in September 2011 in conjunction with the completion of the Company's IPO by the Contributor at amortized cost as well as $17.5 million of properties acquired by the Company following its IPO.

[3] Buildings, fixtures and improvements have been provisionally allocated for two properties with an aggregate purchase price of $183.9 million pending receipt of the cost segregation analyses on such assets being prepared by a third party specialist.

[4] 38 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties.

[5] The tenants' annualized rental income was not greater than 10% of total consolidated annualized rental income for all portfolio properties as of the period specified.

[6] The state's annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

[7] The tenants' annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

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Other Long Term Debt (Tables)

9 Months Ended

Sep. 30, 2013

Convertible Preferred Stock [Abstract]

Schedule of Preferred Units

The Company has the following class of convertible preferred stock outstanding at September 30, 2013:

Issue	Date Issued		Units		Gross Proceeds (In thousands)		Liquidation Preference		Dividend/Interest Rate
Shares classified as Liabilities:
Series C Convertible Preferred Stock		June 7, 2013		28,398,213	$	445,000	$	15.67		5.81	%

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Net Loss Per Share (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following is a summary of the basic and diluted net loss per share computation for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands, expect for shares and per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss from continuing operations attributable to stockholders	$	(59,154	)	$	(12,687	)	$	(248,840	)	$	(24,310	)
Less: dividends declared on preferred shares		(53	)		(140	)		(368	)		(210	)
Net loss from continuing operations attributable to common stockholders		(59,207	)		(12,827	)		(249,208	)		(24,520	)
Net income (loss) from discontinued operations attributable to common stockholders		91			(3	)		164			(478	)
Net loss attributable to common stockholders	$	(59,116	)	$	(12,830	)	$	(249,044	)	$	(24,998	)
Weighted average common shares outstanding(1)		184,807,219			138,323,562			166,970,341			76,950,157
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$	(0.32	)	$	(0.09	)	$	(1.49	)	$	(0.31	)
Basic and diluted net loss per share from discontinued operations attributable to common stockholders	$	-		$	-		$	-		$	(0.01	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.32	)	$	(0.09	)	$	(1.49	)	$	(0.32	)

(1) Weighted average shares for the nine months ended September 30, 2013 are adjusted on a pro forma basis as if the purchase of 27.7 million shares of ARCT III common stock for cash, purchased in conjunction with the ARCT III Merger, had been completed at the beginning of the period. Weighted average shares for the nine months ended September 30, 2013, excluding this pro forma adjustment, were 172,798,170 and net loss per share was $1.44 per share, basic and diluted.

The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2012 and 2011. The Company had no income or loss for the period from the Company's date of inception to December 31, 2010 (amounts in thousands, expect for shares and per share data):

	Year Ended December 31,
	2012			2011
Net loss from continuing operations attributable to stockholders	$	(38,700	)	$	(3,883	)
Less: dividends declared on preferred shares		(368	)		-
Net loss from continuing operations attributable to common stockholders		(39,068	)		(3,883	)
Net loss from discontinued operations attributable to common stockholders		(699	)		(816	)
Net loss attributable to common stockholders	$	(39,767	)	$	(4,699	)
Weighted average common shares outstanding		102,513,974			3,720,351
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$	(0.38	)	$	(1.04	)
Basic and diluted net loss per share from discontinued operations attributable to common stockholders	$	(0.01	)	$	(0.22	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.39	)	$	(1.26	)

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Derivatives and Hedging Activities (Schedule of Interest Rate Derivatives) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012 Cash Flow Hedging [Member] Designated as Hedging Instrument [Member]	Sep. 30, 2013 Cash Flow Hedging [Member] Designated as Hedging Instrument [Member] Swap [Member]	Dec. 31, 2012 Cash Flow Hedging [Member] Designated as Hedging Instrument [Member] Swap [Member]	Dec. 31, 2012 Cash Flow Hedging [Member] Designated as Hedging Instrument [Member] Interest Rate Cap [Member]	Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member]	Dec. 31, 2011 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member]	Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member] Swap [Member]	Dec. 31, 2011 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member] Swap [Member]	Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member] Interest Rate Cap [Member]	Dec. 31, 2011 Derivative Financial Instruments, Liabilities [Member] Designated as Hedging Instrument [Member] Interest Rate Cap [Member]		Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Cash Flow Hedging [Member]	Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Cash Flow Hedging [Member] Swap [Member]	Dec. 31, 2011 Derivative Financial Instruments, Liabilities [Member] Cash Flow Hedging [Member] Swap [Member]	Dec. 31, 2012 Derivative Financial Instruments, Liabilities [Member] Cash Flow Hedging [Member] Interest Rate Cap [Member]
Derivative [Line Items]
Number of Instruments	8	10	7	1								8	7	1	1
Derivative, Notional Amount	$ 202,590	$ 667,590		$ 50,000
Notional Amount of Interest Rate Derivatives			152,590									202,590	152,590	5,060	50,000
Derivatives, at fair value					$ (3,830)	$ (98)	$ (3,830)	$ (98)			[1]

[1] NA means not applicable

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Investment Securities (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Investments, All Other Investments [Abstract]

Schedule of Available-for-sale Securities Reconciliation

The following table details the unrealized gains and losses on investment securities as of September 30, 2013 and December 31, 2012 (amounts in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments in real estate fund as of September 30, 2013	$	10,000	$	-	$	(520	)	$	9,480
Preferred securities as of December 31, 2012	$	41,747	$	223	$	(316	)	$	41,654

The following table details the unrealized gains and losses on investment securities as of December 31, 2012. The Company did not have any such investments as of December 31, 2011 (amounts in thousands):

	December 31, 2012
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities	$	41,747	$	223	$	(316	)	$	41,654

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Related Party Transactions and Arrangements (Schedule of Selling Commissions and Dealer Manager Fees) (Details) (Dealer Manager [Member], Realty Capital Securities, LLC [Member], Sales Commissions and Fees [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Dealer Manager [Member] | Realty Capital Securities, LLC [Member] | Sales Commissions and Fees [Member]
Schedule of Selleing Commission and Dealer Manager Fees [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 0	$ 80,739	$ 0	$ 160,530	$ 160,614	$ 11,464
Payable	$ 0		$ 0		$ 0	$ 92

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Related Party Transactions and Arrangements (Details) (USD $)	1 Months Ended	9 Months Ended		12 Months Ended		9 Months Ended		12 Months Ended	0 Months Ended			9 Months Ended		0 Months Ended	12 Months Ended			2 Months Ended	12 Months Ended	0 Months Ended								0 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2013 Advisor [Member]	Sep. 30, 2013 ARCT III [Member]	Dec. 31, 2012 ARCT III [Member]	Feb. 28, 2013 Special Limited Partner [Member]	Sep. 30, 2013 ARC Real Estate Partners, LLC [Member] Operating Partnership Unit [Member]	Dec. 31, 2012 ARC Real Estate Partners, LLC [Member] Operating Partnership Unit [Member]	Sep. 30, 2013 American Realty Capital Advisors III LLC [Member] Advisor [Member]	Feb. 28, 2013 American Realty Capital Advisors III LLC [Member] Advisor [Member]	Feb. 28, 2013 Sale of ARCT III OP Units [Member]	Dec. 31, 2012 Acquisition and Related Expenses [Member] ARCT III [Member]	Dec. 31, 2012 Other Expense Reimbursements [Member] ARCT III [Member]	Dec. 31, 2012 Class B Units [Member]	Feb. 28, 2013 Class B Units [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Dec. 31, 2012 Class B Units [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Feb. 28, 2013 Post-Conversion [Member] American Realty Capital III Special Limited Partnership, LLC [Member] Operating Partnership Unit [Member]	Feb. 28, 2013 Post-Conversion [Member] American Realty Capital III Special Limited Partnership, LLC [Member] Common Stock [Member]	Feb. 28, 2013 Pre-Conversion [Member] American Realty Capital III Special Limited Partnership, LLC [Member] Common Stock [Member]	Feb. 28, 2013 ARCT III Merger [Member]	Feb. 28, 2013 ARCT III Merger [Member] ARCP [Member]	Feb. 28, 2013 ARCP Merger [Member] American Realty Capital III Special Limited Partnership, LLC [Member]	Sep. 30, 2013 Gross Proceeds, Initial Public Offering [Member] Realty Capital Securities, LLC [Member] Dealer Manager [Member]	Sep. 30, 2013 Pre-tax Non-compounded Return on Capital Contribution [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Feb. 28, 2013 Pre-tax Non-compounded Return on Capital Contribution [Member] Asset Management Fees [Member] American Realty Capital Advisors III LLC [Member]	Sep. 30, 2013 Average Invested Assets [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Sep. 30, 2013 Amount Available or Outstanding Under Financing Arrangement [Member] ARC Properties Advisors, LLC [Member] Manager [Member]	Sep. 30, 2013 Contract Purchase Price [Member] ARC Properties Advisors, LLC [Member] Manager [Member]	Dec. 31, 2012 Gross Revenue, Stand-alone Single-tenant Net Leased Properties [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Dec. 31, 2012 Gross Revenue, Excluding Stand-alone Single-tenant Net Leased Properties [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Dec. 31, 2012 Gross Revenue, Managed Properties [Member] American Realty Capital Advisors III LLC [Member] Advisor [Member]	Sep. 30, 2013 Gross Proceeds, Common Stock [Member] Realty Capital Securities, LLC [Member] Dealer Manager [Member]	Sep. 30, 2013 Class of Stock [Domain]	Dec. 31, 2012 Class of Stock [Domain]
Related Party Transaction [Line Items]
Common stock held by related party, percent										5.09%	1.39%
Related Party Transaction, Sales Commissions Earned by Related Party, Percentage of Benchmark																										7.00%									3.00%
Related Party Transaction, Acquisition Fees Earned by Related Party, Percentage of Benchmark																															1.00%
Related Party Transaction, Financing Coordination Fees Earned by Related Party, Percentage of Benchmark																														0.75%
Asset Management Fee Percentage, Option 1																								0.50%
Asset Management Fee Percentage, Option 2																							0.40%
Unadjusted Book Value of Assets																								$ 3,000,000,000
Related Party Transaction, Asset Management Fees Earned by Related Party, Percentage of Benchmark																													0.75%
Related Party Transaction, Cumulative Capital Investment Return, as a Percentage of Benchmark																											6.00%
Antidilutive securtities excluded from computation of earnings per share		9,051,661		1,621,349													137,771	603,599	145,022
Related Party Transaction, Expenses from Transactions with Related Party							1,300,000	600,000				2,300,000			500,000	200,000												9,900,000
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest, Issuance of Units																				711,190	73,000,000	76,000,000			7,300,000
Related Party Transaction, Oversight Fees Earned by Related Party, Percentage of Benchmark																																2.00%	4.00%	1.00%
Related Party Transactions, Property Management Services Service Period Extension, Days													60 days
Administrative Support Agreement Period, Years						1 year
Business Acquisition, Cost of Acquired Entity, Purchase Price																							5,800,000
Related Party Transaction, Cumulative Capital Investment Return																											557,300,000
Related Party Transaction, Proceeds from Related Party								100,000						98,400,000
Equity Ownership Holding Period, Years		1 year
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		1,000,000
Payments to Noncontrolling Interests		3,035,000	0
Contributions from affiliate	0			0	2,000				800,000
ARCP OP Units Issued to Special Limited Partnership		56,797
Available-for-sale Debt Securities, Amortized Cost Basis																																				10,000,000	41,747,000
Investment securities, at fair value		$ 9,480,000		$ 41,654,000	$ 0																															$ 9,480,000	$ 41,654,000

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Organization (Details) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Dec. 31, 2012 property	Dec. 31, 2011	Sep. 07, 2011
Operations [Line Items]
Business Acquisition, Purchase Price Allocation, Assets Acquired in Period, Net		$ 18,000,000,000	$ 1,589,110,000	$ 209,326,000
Number Of Properties Contributed By Affiliate			63
Real Estate Investments, Net					(16,771,000)
Amount Of Mortgages Refinanced				82,600,000
Initial proceeds from senior secured revolving credit facility used to pay down mortgages assumed in Formation Transactions	0		0	51,500,000
Secured Debt [Member]
Operations [Line Items]
Real Estate Investments, Net					(96,472,000)
Other Assets [Member]
Operations [Line Items]
Real Estate Investments, Net					2,402,000
Other Liabilities [Member]
Operations [Line Items]
Real Estate Investments, Net					(834,000)
Loans Payable [Member]
Operations [Line Items]
Real Estate Investments, Net					(30,626,000)	[1]
Real Estate [Member]
Operations [Line Items]
Real Estate Investments, Net					$ 108,759,000
Contributor [Member] | ARC Real Estate Partners, LLC [Member]
Operations [Line Items]
Number Of Properties Contributed By Affiliate					63
Contributor [Member] | ARC Real Estate Partners, LLC [Member] | Citizens Bank [Member]
Operations [Line Items]
Number Of Properties Contributed By Affiliate					59
Contributor [Member] | ARC Real Estate Partners, LLC [Member] | Vacant [Member]
Operations [Line Items]
Number Of Properties Contributed By Affiliate					2
Contributor [Member] | ARC Real Estate Partners, LLC [Member] | Home Depot [Member]
Operations [Line Items]
Number Of Properties Contributed By Affiliate					1
General Partner [Member] | ARC Properties Operating Partnership, L.P. [Member]
Operations [Line Items]
General partner ownership interest in OP, Percent		95.30%	99.10%
Affiliated Entity [Member] | Contributor [Member] | ARC Real Estate Partners, LLC [Member]
Operations [Line Items]
Limited partner ownership interest in OP, Percent		4.30%	0.20%
Unaffiliated Third Party [Member]
Operations [Line Items]
Limited partner ownership interest in OP, Percent		0.40%	0.70%
Minimum [Member]
Operations [Line Items]
Real Estate Property, Weighted Average Remaining Lease Term		10 years
Maximum [Member]
Operations [Line Items]
Real Estate Property, Weighted Average Remaining Lease Term		12 years
Long Term [Member]
Operations [Line Items]
Real Estate Portfolio, Property Concentration, Percentage		70.00%
Short Term [Member] [Member]
Operations [Line Items]
Real Estate Portfolio, Property Concentration, Percentage		30.00%

[1] Notes payable were repaid from the proceeds of the Company's IPO concurrently with closing.

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Discontinued Operations and Properties Held for Sale (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
	Jul. 03, 2012	Dec. 31, 2010	Sep. 30, 2013 property	Sep. 30, 2013 property	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Long Lived Assets Held-for-sale [Line Items]
Number of Real Estate Properties			2	2
Disposal Group, Including Discontinued Operation, Revenue				$ 400
Disposal Group, Including Discontinued Operation, Agreed Upon Sales Price				700
Proceeds from sale of property held for sale	600	0	6,300		553	553	0
Gain (Loss) on Sale of Assets and Asset Impairment Charges	500		900
Impairment Loss on Held For Sale Properties	$ 100
Occupied [Member]
Long Lived Assets Held-for-sale [Line Items]
Number of Real Estate Properties			1	1
Vacant [Member]
Long Lived Assets Held-for-sale [Line Items]
Number of Real Estate Properties			1	1		1	2

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Quarterly Results (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information [Text Block]

Note 18 - Quarterly Results (Unaudited)

Presented below is a summary of the unaudited quarterly financial information for the Company for the years ended December 31, 2012 and 2011 (amounts in thousands, except share and per share amounts):

	Quarters Ended
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
Revenues	$	6,240		$	11,534		$	18,944		$	30,075
Net loss from continuing operations attributable to stockholders	$	(4,706	)	$	(6,993	)	$	(12,650	)	$	(14,351	)
Less: dividends declared on preferred shares	$	-		$	(70	)	$	(140	)	$	(158	)
Net loss from continuing operations attributable to common stockholders	$	(4,706	)	$	(7,063	)	$	(12,790	)	$	(14,509	)
Net loss from discontinued operations attributable to stockholders	$	(322	)	$	(77	)	$	(41	)	$	(259	)
Net loss attributable to common stockholders, net of dividends on preferred shares	$	(5,028	)	$	(7,140	)	$	(12,831	)	$	(14,768	)
Weighted average shares outstanding		23,609,509			68,312,582			138,323,562			178,480,894
Basic and diluted loss per share from continuing operations attributable to common stockholders	$	(0.20	)	$	(0.10	)	$	(0.09	)	$	(0.08	)
Basic and diluted loss per share attributable to common stockholders	$	(0.21	)	$	(0.10	)	$	(0.09	)	$	(0.08	)

	Quarters Ended
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011
Revenues	$	-		$	-		$	584		$	3,331
Net loss from continuing operations attributable to common stockholders	$	(32	)	$	(82	)	$	(1,122	)	$	(2,647	)
Net loss from discontinued operations attributable to stockholders	$	-		$	-		$	(8	)	$	(808	)
Net loss attributable to common stockholders	$	(32	)	$	(82	)	$	(1,130	)	$	(3,455	)
Weighted average shares outstanding		20,000			20,000			2,166,783			12,553,958
Basic and diluted loss per share from continuing operations attributable to stockholders	$	(1.60	)	$	(4.10	)	$	(0.52	)	$	(0.28	)
Basic and diluted loss per share attributable to stockholders	$	(1.60	)	$	(4.10	)	$	(0.52	)	$	(0.22	)

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CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	1 Months Ended	9 Months Ended			12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013		Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Cash flows from operating activities:
Net loss	$ 0	$ (249,393)		$ (24,953)	$ (39,700)	$ (4,804)
Adjustments to reconcile net loss to net cash provided by operating activities:
Issuance of operating partnership units for ARCT III Merger and other transaction related expenses		108,247		0
Depreciation	0	73,493		18,046	32,799	1,879
Amortization of intangible lease assets	0	18,889		4,259	7,901	244
Amortization of deferred costs	0	6,914		1,226	2,031	200
Amortization of above-market lease asset	0	189		56	116	0
Amortization of discount on convertible debt		347		0
(Gain) loss on held for sale properties	0	(14)		452	600	815
Equity-based compensation	0	13,895		837	1,224	225
Loss on derivative instruments		144		0
Unrealized loss on investments		14		0
Unrealized loss on contingent value rights obligations, net of settlement payments		49,314		0
Convertible obligations to Series C Convertible Preferred stockholders, fair value adjustment		4,827		0
Gain on sale of investments		(451)		0
Changes in assets and liabilities:
Investment in direct financing leases		102		0
Prepaid expenses and other assets	0	(12,081)		(3,284)	(4,932)	(546)
Accounts payable and accrued expenses	0	4,464		1,559	8,122	843
Deferred rent and other liabilities	0	3,068		1,914	3,449	887
Net cash provided by operating activities	0	21,968		112	11,610	(257)
Cash flows from investing activities:
Investments in real estate and other assets	0	(1,173,497)	[1]	(965,383)	(1,582,758)	(89,981)
Investment in direct financing leases		(57,551)		0
Capital expenditures	0	(113)		0	(54)	0
Purchase of assets from Manager		(1,041)		0
Proceeds from sale of property held for sale	0			553	553	0
Deposits for real estate investments	0	(28,836)		(4,914)	(500)	0
Purchases of investment securities	0	(12,004)		(8,055)	(41,747)	0
Proceeds from sale of investment securities		44,188		0
Net cash used in investing activities	0	(1,228,854)		(977,799)	(1,624,506)	(89,981)
Cash flows from financing activities:
Proceeds from mortgage notes payable	0	4,773		157,170	229,798	21,470
Proceeds from senior secured revolving credit facility	0	0		48,793	82,319	2,066
Payments on senior secured revolving credit facility	0	(124,604)		(110)	(122)	(11,159)
Proceeds from senior corporate credit facility		860,000		0
Payments on senior corporate credit facility		(260,000)		0
Payments of deferred financing costs	0	(38,221)		(13,650)	(13,974)	(3,108)
Advance from affiliate bridge loan		0		796
Payment of affiliate bridge loan		0		(796)
Proceeds from issuance of convertible debt		310,000		0
Common stock repurchases	0	(357,916)		(896)	(1,534)	0
Proceeds from issuances of preferred shares	0	0		9,000	9,000	0
Proceeds from issuance of convertible obligations to Series C Convertible Preferred stockholders		445,000		0
Proceeds from issuances of common stock	0	490,577		1,653,988	1,658,776	122,993
Payments of offering costs and fees related to stock issuances	0	(4,041)		(181,037)	(182,226)	(20,884)
Contributions from affiliate	0				0	2
Contributions from non-controlling interest holders	0	750		3,000	7,375	0
Consideration paid for assets of manager in excess of carryover basis		(3,035)		0
Distributions to non-controlling interest holders	0	(5,170)		(376)	(663)	(68)
Distributions paid	0	(117,047)		(20,225)	(37,223)	(1,743)
Advances from affiliates, net	0	0		(623)	20	0
Premium payment on interest rate cap		0		(13)
Restricted cash	0	(572)		(1,212)	(1,108)	0
Net cash provided by financing activities	0	1,200,494		1,653,809	1,750,438	109,569
Net change in cash and cash equivalents	0	(6,392)		676,122	137,542	19,331
Cash and cash equivalents, beginning of period	0	156,873		19,331	19,331	0
Cash and cash equivalents, end of period	0	150,481		695,453	156,873	19,331
Supplemental Disclosures:
Cash paid for interest	0	16,468		5,749	8,983	622
Cash paid for income taxes	0	354		88	129	0
Non-cash investing and financing activities:
OP units issued to acquire real estate investment	0	0	[1]	6,352	6,352	0
Common stock issued through distribution reinvestment plan	0	4,895		12,613	26,784	271
Initial proceeds from senior secured revolving credit facility used to pay down mortgages assumed in Formation Transactions	0				0	51,500
Mortgage note payable contributed in Formation Transactions	0				0	13,850
Reclassification of deferred offering costs	$ 681	$ 0		$ 900	$ 0	$ 0

[1] Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

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Mergers and Acquisitions

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Merger Agreement [Abstract]

Mergers and Acquisitions

Note 2 - Mergers and Acquisitions

Completed Mergers and Significant Acquisitions

American Realty Capital Trust III Merger

On December 14, 2012, the Company entered into an Agreement and Plan of Merger (the "ARCT III Merger Agreement") with American Realty Capital Trust III, Inc. ("ARCT III") and certain subsidiaries of each company. The ARCT III Merger Agreement provided for the merger of ARCT III with and into a subsidiary of the Company (the "ARCT III Merger"). The ARCT III Merger was consummated on February 28, 2013.

Pursuant to the terms and subject to the conditions set forth in the ARCT III Merger Agreement, each outstanding share of common stock of ARCT III, including restricted shares which became vested, was converted into the right to receive (i) 0.95 of a share of the Company's common stock, (the "ARCT III Exchange Ratio") or (ii) $12.00 in cash. In addition, each outstanding unit of equity ownership of the ARCT III OP was converted into the right to receive 0.95 of the same class of unit of equity ownership in the OP.

Upon the closing of the ARCT III Merger, on February 28, 2013, 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock, were paid in cash at $12.00 per share, which is equivalent to 27.7 million shares of the Company's common stock based on the ARCT III Exchange Ratio. In addition, 148.1 million shares of ARCT III's common stock were converted to shares of the Company's common stock at the ARCT III Exchange Ratio, resulting in an additional 140.7 million shares of the Company's common stock outstanding after the exchange.

Upon the consummation of the ARCT III Merger, American Realty Capital III Special Limited Partnership, LLC, the holder of the special limited partner interest in the ARCT III OP, was entitled to subordinated distributions of net sales proceeds from ARCT III OP which resulted in the issuance of units of limited partner interests in the ARCT III OP, when after applying the ARCT III Exchange Ratio, resulting in the issuance of an additional 7.3 million OP Units. The parties have agreed that such OP Units will be subject to a minimum one-year holding period from the date of issuance before being exchangeable into the Company's common stock.

Also in connection with the ARCT III Merger, the Company entered into an agreement with the Sponsor and its affiliates to internalize certain functions performed by them prior to the ARCT III Merger, reduce certain fees paid to affiliates, purchase certain corporate assets and pay certain merger related fees. See Note 14 - Related Party Transactions and Arrangements.

Accounting Treatment of the ARCT III Merger

The Company and ARCT III, from inception to the ARCT III Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of the Sponsor. The Sponsor and its related parties have significant ownership interests in the Company and had significant ownership of ARCT III through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to charge potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and continue to charge fees to the Company. Due to the significance of these fees, the advisors and ultimately the Sponsor is determined to have a significant economic interest in both companies in addition to having the power to direct the significant activities of the companies through advisory/management agreements, which qualifies them as affiliated companies under common control in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT III Merger date. In addition, U.S. GAAP requires the Company to present historical financial information as if the merger had occurred as of the beginning of the earliest period presented, therefore the accompanying financial statements including the notes thereto are presented as if the ARCT III Merger had occurred on January 1, 2012.

GE Capital Portfolio Acquisition

On June 27, 2013, the Company, through its OP, acquired from certain affiliates of GE Capital Corp., the equity interests in the entities that own a real estate portfolio comprised of 447 properties (the "GE Capital Portfolio") for consideration of $826.3 million exclusive of closing costs; no liabilities were assumed. The 447 properties are subject to 409 property operating leases, which are accounted for on the straight-line rent basis of accounting, and 38 direct financing leases, which are accounted for as a receivable at a discount to the remaining lease payments and estimated residual values of the related properties. Income on the direct financing leases is recorded using the effective interest method. In addition, the Company has recorded the fair value of the expected residual value of the property for property under direct financing leases.

CapLease, Inc. Merger

On May 28, 2013, the Company entered into an Agreement and Plan of Merger (the "CapLease Merger Agreement") with CapLease, Inc., a Maryland corporation ("CapLease"), and certain subsidiaries of each company. The CapLease Merger Agreement provided for the merger of CapLease with and into a subsidiary of the Company (the "CapLease Merger").

Pursuant to the terms and subject to the conditions set forth in the CapLease Merger Agreement, each outstanding share of common stock of CapLease, other than shares owned by the Company, CapLease or any of their respective wholly owned subsidiaries, were converted into the right to receive $8.50 in cash without interest. Each outstanding share of preferred stock of CapLease, other than shares owned by the Company, CapLease or any of their respective wholly owned subsidiaries, were converted into the right to receive an amount in cash, without interest, equal to the sum of $25.00 plus all accrued and unpaid dividends on such shares of preferred stock. In addition, in connection with the merger of CapLease, LP with and into the OP (the "CapLease Partnership Merger"), each outstanding unit of equity ownership of the CapLease's operating partnership other than units owned by CapLease or any wholly owned subsidiary of CapLease were converted into the right to receive $8.50 in cash, without interest. Shares of the CapLease's outstanding restricted stock were accelerated and became fully vested, and restricted stock and any outstanding performance shares were fully earned and had the right to receive $8.50 per share.

On November 5, 2013, the Company completed the merger with CapLease based on the terms of the CapLease Merger Agreement and total cash consideration of $920.7 million was paid to the common and preferred shareholders. The merger will be accounted for under the acquisition method of accounting under U.S. GAAP. Under the acquisition method of accounting, the assets acquired and liabilities assumed from CapLease will be recorded as of the acquisition date at their respective fair values. Any excess of purchase price over the fair values will be recorded as goodwill. Results of operations for CapLease will be included in the Company's consolidated financial statements from the date of acquisition.

Pending Mergers and Significant Acquisitions

American Realty Capital Trust IV Merger

On July 1, 2013, the Company entered into an Agreement and Plan of Merger, as amended on October 6, 2013, (the "ARCT IV Merger Agreement") with American Realty Capital Trust IV, Inc., a Maryland corporation ("ARCT IV"), and certain subsidiaries of each company. The ARCT IV Merger Agreement provides for the merger of ARCT IV with and into a subsidiary of the Company (the "ARCT IV Merger").

Pursuant to the terms and subject to the conditions set forth in the ARCT IV Merger Agreement, at the effective time of the ARCT IV Merger, each outstanding share of common stock of ARCT IV will be exchanged for (i) $9.00 to be paid in cash, plus (ii) 0.5190 shares of the Company's common stock, par value $0.01, and (iii) 0.5937 shares of a new series of preferred stock to be designated as Series F Cumulative Redeemable Preferred Stock ("Series F Preferred Stock"), par value $0.01.

The Series F Preferred Stock will not be redeemable by the Company before the fifth anniversary of the date on which such Series F Preferred Stock is issued (the "Initial Redemption Date"), except under circumstances intended to preserve the Company's status as a real estate investment trust for federal and/or state income tax purposes and except upon the occurrence of a change of control. On and after the Initial Redemption Date, the Company may, at its option, redeem shares of the Series F Preferred Stock, in whole or from time to time in part, at a redemption price of $25.00 per share plus, subject to exceptions, any accrued and unpaid dividends thereon to the date fixed for redemption. The shares of Series F Preferred Stock have no stated maturity, are not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless the Company redeems or otherwise repurchases them or they become convertible and are converted into common stock (or, if applicable, alternative consideration).

In addition, each outstanding Class B unit of equity ownership of the ARCT IV will be converted into the right to receive 2.3591 Class B OP Units of the Company and other equity units of ARCT IV will receive 2.3961 OP Units of the Company. In addition, on the date of the ARCT IV Merger, all outstanding restricted common stock of ARCT IV date will become fully vested and exchanged for shares of Company common stock based on the ARCT IV Exchange Ratio.

In connection with the ARCT IV Merger, ARCT IV's external advisor has agreed to waive a portion of the real estate commissions contractually due to it from ARCT IV upon the sale of properties in an amount equal to the lesser of (i) 2.0% of the sales price of the properties and (ii) one-half of the competitive real estate commissions if a third party broker is also involved. ARCT IV's external advisor and ARCT IV agreed that ARCT IV's external advisor will be entitled to a reduced real estate commission of $8.4 million.

The Company has also entered into an agreement to purchase certain assets from ARCT IV's external advisor and reimburse ARCT IV's external advisor for certain expenses related to the ARCT IV Merger for total cash consideration of $5.8 million.

ARCT IV's external advisor will be entitled to subordinated distributions of net sales proceeds in an amount estimated to be approximately $68.3 million, assuming an implied price of the Company's common stock of $13.50 per share upon the ARCT IV Merger. Such subordinated distributions of net sales proceeds will be payable in the form of equity units of ARCT IV that will automatically convert into OP Units of the Company upon consummation of the ARCT IV Merger and will be subject to a minimum one-year holding period from the date of issuance before being exchangeable into the Company's common stock. The actual amount of consideration to be paid for subordinated distributions of net sales proceeds will be based, in part, on the market price of the Company's common stock on the date of the ARCT IV Merger and will not be known until the ARCT IV Merger date.

Accounting Treatment for the ARCT IV Merger

The Company and ARCT IV are considered to be entities under common control. Both entities' advisors are wholly owned subsidiaries of the Sponsor. The Sponsor and its related parties have ownership interests in the Company and ARCT IV through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities are contractually eligible to charge potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and will continue to charge fees to the Company following the ARCT IV Merger. Due to the significance of these fees, the advisors and ultimately the Sponsor is determined to have a significant economic interest in both companies in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualifies them as affiliated companies under common control in accordance with U.S. GAAP. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the ARCT IV Merger date. In addition, U.S. GAAP requires the Company to present historical financial information as if the entities were combined for each period presented once the ARCT IV Merger is consummated.

The ARCT IV Merger is expected to close in the fourth quarter of 2013. However, as of the filing of this Quarterly Report on Form 10-Q, the consummation of the ARCT IV Merger has not yet occurred and, although the Company believes that the completion of the ARCT IV Merger is probable, the closing of the ARCT IV Merger is subject to a vote by the common stockholders of ARCT IV and other customary conditions, and therefore there can be no assurance that the ARCT IV Merger will be consummated. Accordingly, the Company cannot assure that the ARCT IV Merger will be completed based on the terms of the ARCT IV Merger or at all.

Fortress Portfolio Acquisition

On July 24, 2013, AR Capital, LLC and another related entity, on behalf of the Company and certain other entities sponsored directly or indirectly by AR Capital, LLC, entered into a purchase and sale agreement with subsidiaries of Fortress Investment Group LLC ("Fortress") for the purchase and sale of 196 properties owned by Fortress for an aggregate contract purchase price of approximately $972.5 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to the Company based on the pro-rata fair value of the properties acquired by the Company relative to the fair value of all 196 properties to be acquired from Fortress. Of the 196 properties, 120 properties are expected to be acquired by the Company from Fortress for a purchase price of approximately $601.2 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs. On October 1, 2013, the Company closed on 41 of the 120 properties with a total purchase price of $200.3 million, exclusive of closing costs.The remaining properties are expected to close in the fourth quarter of 2013.

Inland Portfolio Acquisition

On August 8, 2013 the Company's Sponsor entered into a purchase and sale agreement with Inland American Real Estate Trust, Inc. ("Inland") for the purchase and sale of the equity interests of 67 companies owned by Inland for an aggregate contract purchase price of approximately $2.3 billion, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs. Of the 67 companies, the equity interests of 10 companies (the "Inland Portfolio") will be acquired by the Company from Inland for a purchase price of approximately $501.0 million, subject to adjustments set forth in the purchase and sale agreement and exclusive of closing costs, which was allocated to the Company based on the pro-rata fair value of the Inland Portfolio relative to the fair value of all 67 companies to be acquired by the Company and other entities sponsored directly or indirectly by the Company's Sponsor from Inland. The Inland Portfolio is comprised of 33 properties. As of September 30, 2013, the Company has closed on five of the 33 properties for a total purchase price of $56.4 million, exclusive of closing costs. The remaining properties are expected to close in the fourth quarter of 2013.

Cole Real Estate Investments, Inc. Merger

On October 22, 2013, the Company entered into an Agreement and Plan of Merger (the "Cole Merger Agreement") with Cole Real Estate Investments, Inc., a Maryland corporation ("Cole"), and certain subsidiaries of each company. The Cole Merger Agreement provides for the merger of Cole with and into a subsidiary of the Company (the "Cole Merger").

Pursuant to the terms and subject to the conditions set forth in the Cole Merger Agreement, at the effective time of the Cole Merger, each outstanding share of common stock of Cole will be exchanged for (i) 1.0929 shares of common stock of ARCP, par value $0.01 per share, or (ii) $13.82 in cash. In no event will the cash consideration be paid with respect to more than 20% of the shares of Cole common stock issued and outstanding as of immediately prior to the consummation of the merger. If the aggregate elections for payment in cash exceed 20% of the number of shares of Cole common stock issued and outstanding as of immediately prior to the consummation of the merger, then the amount of cash consideration paid will be reduced on a pro rata basis to 20% with the remaining consideration paid in ARCP common stock. Cash will be paid in lieu of any fractional shares. In addition, upon the consummation of the Cole Merger all of Cole's restricted stock units and restricted performance units outstanding on that date will become vested and exchanged based on the same exchange provisions as for common stock. The merger is expected to close in the first half of 2014. However, as of the filing of this Quarterly Report on Form 10-Q, the consummation of the Cole Merger has not yet occurred and, although the Company believes that the completion of the Cole Merger is probable, the closing of the Cole Merger is subject to a vote by the common stockholders of both Cole and the Company and other customary conditions, and therefore there can be no assurance that the Cole Merger will be consummated. Accordingly, the Company cannot assure that the Cole Merger will be completed based on the terms of the Cole Merger or at all.

Note 2 - Merger Agreement

On December 14, 2012, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with ARCT III and certain subsidiaries of each company. The Merger Agreement provided for the merger of ARCT III with and into a subsidiary of the Company (the "Merger"). The Merger was consummated on February 28, 2013.

Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, each outstanding share of common stock of ARCT III was converted into the right to receive (i) 0.95 of a share of the Company's common stock, (the "Exchange Ratio") or (ii) $12.00 in cash. In addition, each outstanding unit of equity ownership of the ARCT III OP was converted into the right to receive 0.95 of the same class of unit of equity ownership in the OP.

Upon the closing of the Merger, on February 28, 2013, 29.2 million shares, or 16.5% of the then outstanding shares of ARCT III's common stock, were paid in cash at $12.00 per share, which is equivalent to 27.7 million shares of the Company's common stock based on the Exchange Ratio. In addition, 148.1 million shares of ARCT III's common stock were converted to shares of the Company's common stock at the Exchange Ratio, resulting in an additional 140.7 million shares of the Company's common stock outstanding after the exchange.

Upon the consummation of the Merger, American Realty Capital III Special Limited Partnership, LLC, the holder of the special limited partner interest in the American Realty Capital Operating Partnership III (the "ARCT III OP"), was entitled to subordinated distributions of net sales proceeds from ARCT III OP which resulted in the issuance of units of limited partner interests in the ARCT III OP, when after applying the Exchange Ratio, resulting in the issuance of an additional 7.3 million OP Units. The parties have agreed that such OP Units will be subject to a minimum one-year holding period before being exchangeable into the Company's common stock.

Upon consummation of the Merger, the vesting of the shares of the Company's and ARCT III's outstanding restricted stock was accelerated.

In connection with the Merger, the Company also had entered into an agreement with the Sponsor and its affiliates to internalize certain functions performed by them prior to the Merger, at no cost to the Company, including acquisition, accounting and portfolio management services (the "Internalization"). In connection with the Internalization, (i) the Company and its Sponsor terminated the acquisition and capital services agreement dated September 6, 2011, between the parties, which eliminated acquisition and financing fees payable by the Company and (ii) the Manager reduced asset management fees from an annualized 0.50% of the unadjusted book value of all of the Company's assets to 0.50% for up to $3.0 billion of unadjusted book value of assets and 0.40% of unadjusted book value of assets greater than $3.0 billion. In addition, the Company paid $4.1 million for certain furniture, fixtures, equipment, and $1.7 million for other assets and certain costs associated with the Merger. The Company and the Manager are considered entities under common control, as such, the assets acquired from the Manager were recorded by the Company at their carryover basis.

Accounting Treatment of the Merger

The Company and ARCT III, to the Merger date, were considered to be entities under common control. Both entities' advisors were wholly owned subsidiaries of the Sponsor. The Sponsor and its related parties have significant ownership interests in the Company and had significant ownership of ARCT III through the ownership of shares of common stock and other equity interests. In addition, the advisors of both entities were contractually eligible to charge potential fees for their services to both of the companies including asset management fees, incentive fees and other fees and continue to charge fees to the Company. Due to the significance of these fees, the advisors and ultimately the Sponsor is determined to have a significant economic interest in both companies in addition to having the power to direct the activities of the companies through advisory/management agreements, which qualifies them as affiliated companies under common control in accordance with generally accepted accounting principals in the United States ("U.S. GAAP"). The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded upon the merger on the same basis as they were carried by the companies on the Merger date. In addition, U.S. GAAP requires that we present historical financial information as if the entities were combined for each period presented, therefore all financial statements including the notes thereto are presented combining ARCP and ARCT III historical financial information.

New Credit Facility

On February 14, 2013, ARCT III, through ARCT III OP, its operating partnership, entered into an unsecured credit facility (the "New Credit Facility"), with Wells Fargo Bank, National Association, as administrative agent, RBS Citizens, N.A. and Regions Bank, as syndication agents, and Capital One, N.A. and JP Morgan Chase Bank, N.A., as documentation agents.

Additionally, upon consummation of the Merger, the Company's senior secured revolving credit facility with RBS (the "RBS Facility") of up to $150.0 million was paid off in full and terminated. ARCT III terminated the Senior Facility (as defined in Note 5 - Credit Facilities) agreement with RBS simultaneous with entering into the New Credit Facility.

See Note 5 - Credit Facilities for further description of the New Credit Facility and repayments and terminations of facilities upon the consummation of the Merger.

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Investment Securities

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Investments, All Other Investments [Abstract]

Investment Securities

Note 5 - Investment Securities

Investment securities are considered available-for-sale and, therefore, increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income (loss) as a component of equity on the consolidated balance sheets unless the securities are considered to be other than temporarily impaired at which time the losses are reclassified to expense.

The following table details the unrealized gains and losses on investment securities as of September 30, 2013 and December 31, 2012 (amounts in thousands):

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments in real estate fund as of September 30, 2013	$	10,000	$	-	$	(520	)	$	9,480
Preferred securities as of December 31, 2012	$	41,747	$	223	$	(316	)	$	41,654

At September 30, 2013, the Company had investments in a real estate fund, which was invested primarily in equity securities of other publicly traded REITS.

At December 31, 2012, the Company had investments in redeemable preferred stock and senior notes, accounted for as debt securities, with a fair value of $41.7 million. These investment securities were sold during the nine months ended September 30, 2013, resulting in a gain on sale of investments of $0.5 million.

Note 7 - Investment Securities

At December 31, 2012, the Company had investments in redeemable preferred stock and senior notes, accounted for as debt securities, with a fair value of $41.7 million. These investments were considered available-for-sale securities and therefore increases or decreases in the fair value of these investments are recorded in accumulated other comprehensive income as a component of equity on the consolidated balance sheet unless the securities are considered to be permanently impaired at which time the losses are reclassified to expense.

The following table details the unrealized gains and losses on investment securities as of December 31, 2012. The Company did not have any such investments as of December 31, 2011 (amounts in thousands):

	December 31, 2012
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investment securities	$	41,747	$	223	$	(316	)	$	41,654

The Company's preferred stock investments were redeemable at the respective issuer's option after five years from issuance. The senior notes had a weighted-average maturity of 29.6 years and a weighted-average interest rate of 5.7% as of December 31, 2012. These investments were sold in February 2013.

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Summary of Significant Accounting Policies

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 3 - Summary of Significant Accounting Policies

The consolidated financial statements of the Company included herein were prepared in conformity with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results for the entire year or any subsequent interim period.

These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2012 of the Company, which are included on Form 8-K/A filed with the Securities and Exchange Commission ("SEC") on May 8, 2013. There have been no significant changes to these policies during the nine months ended September 30, 2013, other than the updates described below.

Reclassification

Certain reclassifications have been made to the previously issued historical financial statements of the Company to conform to this presentation.

Investment in Direct Financing Leases

The Company has acquired certain properties that are subject to leases that qualify as direct financing leases in accordance with U.S. GAAP due to the significance of the lease payments from the inception of the leases compared to the fair value of the property. Investments in direct financing leases represent the fair value of the remaining lease payments on the leases and the estimated fair value of any expected residual property value at the end of the lease term. The fair value of the remaining lease payments is estimated using a discounted cash flow based on interest rates that would represent the Company's incremental borrowing rate for similar types of debt. The expected residual property value at the end of the lease term is estimated using market data and assessments of the remaining useful lives of the properties at the end of the lease terms, among other factors. Income from direct financing leases is calculated using the effective interest method over the remaining term of the lease.

As part of the update to the provisional allocation of the purchase price for the GE Capital portfolio, the Company reclassified approximately $9.9 million from investment in direct financing leases receivables to investments in real estate, at cost.

Convertible Obligation to Series C Convertible Preferred Stockholders

On June 7, 2013, the Company issued, through a private placement, 28.4 million shares of Series C Convertible Preferred Stock (the "Series C Stock") for gross proceeds of $445.0 million. Due to an unconditional obligation to either redeem or convert the Series C Stock into a variable number of shares of common stock that is predominantly based on a fixed monetary amount, the preferred securities are classified as an obligation under U.S. GAAP and are presented in the consolidated balance sheet as a liability. In September 2013, the Company entered into an agreement with the investors in the Series C Stock whereby, promptly following the closing of the CapLease Merger, the Series C Stock will be converted, in accordance with the terms of the original agreement, into 1.4 million shares of common stock representing an estimated $18.3 million of value, with the remaining balance of Series C Stock settled in cash. Total consideration to be paid in cash is estimated to be $435.6 million. The conversion and redemption of Series C Stock is expected to close promptly following the Company's merger with CapLease, which, as discussed in Note 2 - Mergers and Acquisitions, consummated on November 5, 2013. Certain holders of the Series C Stock have agreed to reinvest their cash proceeds into a new Series D Cumulative Convertible Preferred stock ("Series D Stock") representing $249.6 million or 18.8 million shares. The remaining Series C stock holders have agreed to reinvest their cash proceeds from the redemption of the Series C Stock into common stock representing $186.0 million or 15.1 million shares. The convertible obligation to Series C convertible preferred stockholders is recorded at fair value at September 30, 2013, which approximates the estimated settlement value. The preferred shares liability will be carried at fair value and adjusted on a quarterly basis.

Convertible Debt

On July 29, 2013 the Company issued $300.0 million of Convertible Senior Notes and issued an additional $10.0 million of Convertible Senior Notes on August 1, 2013. The notes mature August 1, 2018 and are convertible to cash or shares of the Company's common stock at the Company's option in accordance with the agreement. In accordance with U.S GAAP, the notes are accounted for as a liability with a separate equity component recorded for the conversion option. The liability was recorded on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The debt discount is being amortized to interest expense over the expected life of the Convertible Senior Notes.

Contingent Valuation Rights

On June 7, 2013, the Company issued to certain common stock investors 29.4 million contingent value rights ("Common Stock CVR's") and to the Series C Convertible Preferred Stock investors 28.4 million contingent value rights ("Preferred Stock CVR's"). In September 2013, certain investors holding the Common Stock CVR's received $20.4 million representing the maximum payment of $1.50 per share as defined in the agreement. The remaining Common Stock CVR holders have deferred settlement of the amount owed to them of $23.7 million and will reinvest those proceeds in Series D Stock, which reinvestment is expected to occur, as discussed above, promptly following the CapLease Merger, which consummated on November 5, 2013.

In accordance with an agreement with the Preferred Stock CVR holders dated September 15, 2013, the Preferred Stock CVR's will be settled for $0.90 per Preferred CVR or a total of $25.6 million.

The holders of certain of the Preferred Stock CVR's have agreed to reinvest their payment into Series D Stock representing $14.6 million or 1.1 million shares with the remaining $11.0 million paid in cash. The settlement of the Preferred Stock CVR will occur promptly following the CapLease Merger, which consummated on November 5, 2013.

Changes in the fair value of the contingent valuation rights obligation is recorded in the consolidated statement of operations and comprehensive loss as an unrealized gain or loss in the period incurred.

Contingent Rental Income

The Company owns certain properties that have associated leases that require the tenant to pay contingent rental income based on a percentage of the tenant's sales after the achievement of certain sales thresholds, which may be monthly, quarterly or annual targets. As a lessor, the Company defers the recognition of contingent rental income until the specified target that triggered the contingent rental income is achieved, or until such sales upon which percentage rent is based are known.

Non-Controlling Interests

As described in Note 1 - Organization, certain affiliates and non-affiliated third parties have been issued OP Units. Holders of OP Units are considered to be non-controlling interest holders in the OP and their ownership interest is reflected as equity in the consolidated balance sheets. In addition, a portion of the earnings and losses of the OP are allocated to non-controlling interest holders based on their respective ownership percentages. Furthermore, upon conversion of OP Units to common stock, any difference between the fair value of common shares gives and the carrying value of the OP Units converted is recorded as a component of equity. As of September 30, 2013 and December 31, 2012, there were 9,051,661 and 1,621,349 OP Units outstanding, respectively.

Recent Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board ("FASB") issued guidance regarding disclosures about offsetting assets and liabilities, which requires entities to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The guidance is effective for fiscal years and interim periods beginning on or after January 1, 2013 with retrospective application for all comparative periods presented. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 6 - Derivatives and Hedging Activities for the Company's disclosure of information about offsetting and related arrangements.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued guidance which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The guidance is effective for annual and interim periods beginning after December 15, 2012 with early adoption permitted. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows. Refer to Note 6 - Derivatives and Hedging Activities for the Company's disclosure of the information about the amounts reclassified out of accumulated other comprehensive income by component.

In February 2013, the FASB issued new accounting guidance clarifying the accounting and disclosure requirements for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial position, results of operations or cash flows.

Note 3 - Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with U.S. GAAP.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary.

Reclassification

Certain reclassifications have been made to the previously issued historical consolidated financial statements of the Company and ARCT III to conform to this consolidated presentation.

Use of Estimates

The preparation of financial statements in conformity with U.S. 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding revenue recognition, to record investments in real estate, real estate taxes, and derivative financial instruments and hedging activities, as applicable.

Formation Transactions

Upon the effectiveness of the IPO, the Company acquired certain properties from affiliated entities of the Company and, as such, the Company was no longer considered to be in the development stage. The contribution of the properties from affiliates in the initial formation of the Company was accounted for as a reorganization of entities under common control and therefore all assets and liabilities related to the contributed properties were accounted for on the carryover basis of accounting whereby the real estate investments were contributed at amortized cost and all assets and liabilities of the predecessor entities became assets and liabilities of the Company.

Real Estate Investments

The Company records acquired real estate at cost and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine the appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 40 years for buildings, five to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets.

Impairment of Long Lived Assets

Operations related to properties that have been sold or properties that are intended to be sold are presented as discontinued operations in the statement of operations for all periods presented, and properties intended to be sold are designated as "held for sale" on the accompanying consolidated balance sheets.

When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used.

For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. At December 31, 2012, and 2011, the Company had one and two, respectively, vacant properties classified as properties held for sale. See Note 17 - Discontinued Operations and Properties Held for Sale.

Allocation of Purchase Price of Acquired Assets

The Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets acquired based on their respective fair values. Tangible assets include land, buildings, equipment and tenant improvements on an as-if vacant basis. The Company utilizes various estimates, processes and information to determine the as-if vacant property value. Estimates of value are made using customary methods, including data from appraisals, comparable sales, discounted cash flow analysis and other methods. Identifiable intangible assets include amounts allocated to acquire leases for above- and below-market lease rates, the value of in-place leases, and the value of customer relationships.

Amounts allocated to land, buildings, equipment and fixtures are based on cost segregation studies performed by independent third-parties or on the Company's analysis of comparable properties in its portfolio. Depreciation is computed using the straight-line method over the estimated lives of forty years for buildings, five to ten years for building equipment and fixtures, and the shorter of the useful life or the remaining lease term for tenant improvements.

The aggregate value of intangible assets related to in-place leases is primarily the difference between the property valued with existing in-place leases adjusted to market rental rates and the property valued as if vacant. Factors considered by the Company in its analysis of the in-place lease intangibles include an estimate of carrying costs during the expected lease-up period for each property, taking into account current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period, which typically ranges from six to 18 months. The Company also estimates costs to execute similar leases including leasing commissions, legal and other related expenses.

Above-market and below-market in-place lease values for owned properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between the contractual amounts to be paid pursuant to the in-place leases and management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market lease intangibles are amortized as a decrease to rental income over the remaining term of the lease. The capitalized below-market lease values will be amortized as an increase to rental income over the remaining term and any fixed rate renewal periods provided within the respective leases. In determining the amortization period for below-market lease intangibles, the Company initially will consider, and periodically evaluate on a quarterly basis, the likelihood that a lessee will execute the renewal option. The likelihood that a lessee will execute the renewal option is determined by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located.

The aggregate value of intangibles assets related to customer relationships is measured based on the Company's evaluation of the specific characteristics of each tenant's lease and the Company's overall relationship with the tenant. Characteristics considered by the Company in determining these values include the nature and extent of the Company's existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant's credit quality and expectations of lease renewals, among other factors.

The value of in-place leases is amortized to expense over the initial term of the respective leases, which range primarily from 2 to 20 years. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does the amortization period for intangible assets exceed the remaining depreciable life of the building. If a tenant terminates its lease, the unamortized portion of the in-place lease value and customer relationship intangibles is charged to expense.

In making estimates of fair values for purposes of allocating purchase price, the Company utilizes a number of sources, including independent appraisals that may be obtained in connection with the acquisition or financing of the respective property and other market data. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, as well as subsequent marketing and leasing activities, in estimating the fair value of the tangible and intangible assets acquired and intangible liabilities assumed.

Intangible lease assets of the Company consist of the following as of December 31, 2012 and 2011 (amounts in thousands):

	December 31,
	2012			2011
In-place leases, gross	$	210,959		$	21,777
Accumulated amortization on in-place leases		(11,183	)		(3,282	)
In-place leases, net of accumulated amortization		199,776			18,495
Above market leases, gross		1,264			-
Accumulated amortization on above market leases		(116	)		-
Above market leases, net of accumulated amortization		1,148			-
Total intangible lease assets, net	$	200,924		$	18,495

The following table provides the weighted-average amortization period as of December 31, 2012 for intangible lease assets and the projected amortization expense and adjustments of rental income for the next five years of the Company (amounts in thousands):

	Weighted- Average Amortization Period in Years		2013		2014		2015		2016		2017
In-place leases:
Total to be included in amortization expense		11.9	$	19,265	$	19,234	$	18,855	$	18,586	$	18,049
Above market leases:
Total to be included in rental income		5.0	$	252	$	252	$	252	$	252	$	122
Total intangible lease assets		11.9

Cash and Cash Equivalents

Cash and cash equivalents include cash in bank accounts as well as investments in highly-liquid money market funds with original maturities of three months or less.

The Company deposits cash with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company ("FDIC") up to an insurance limit. At December 31, 2012 and 2011, the Company had deposits of $156.9 million and $19.3 million, respectively, of which $154.8 million and $18.5 million were in excess of the amount insured by the FDIC. Although the Company bears risk to amounts in excess of those insured by the FDIC, it does not anticipate any losses as a result.

Restricted Cash

Restricted cash primarily consists of reserves related to lease expirations as well as maintenance, structural, and debt service reserves.

Deferred Costs, Net

Deferred costs, net consists of deferred financing costs net of accumulated amortization, deferred leasing costs net of accumulated amortization and deferred offering costs.

Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined the financing will not close. At December 31, 2012 and 2011, the Company had $15.1 million and $3.1 million, respectively, of deferred financing costs net of accumulated amortization.

Deferred leasing costs, consisting primarily of lease commissions and payments made to assume existing leases, are deferred and amortized over the term of the lease. At December 31, 2012 and 2011, the Company had $0.2 million and $0.3 million, respectively, of deferred leasing costs, net of accumulated amortization.

Deferred offering costs represent professional fees, fees paid to various regulatory agencies, and other costs incurred in connection with registering to sell shares of the Company's common stock. As of December 31, 2012, the Company had $0.1 million of deferred offering costs related to the Company's $500.0 million universal shelf and resale registration statements filed with the SEC in August 2012. As of December 31, 2011, the Company had no deferred offering costs.

Share Repurchase Program

ARCT III's board of directors had adopted a Share Repurchase Program ("SRP") that enabled stockholders to sell their shares to ARCT III in limited circumstances. The SRP permitted investors to sell their shares back to ARCT III after they had held them for at least one year, subject to the significant conditions and limitations described below.

The purchase price per share depended on the length of time investors had held such shares as follows: after one year from the purchase date - the lower of $9.25 or 92.5% of the amount they actually paid for each share; after two years from the purchase date - the lower of $9.50 or 95.0% of the amount they actually paid for each share; after three years from the purchase date - the lower of $9.75 or 97.5% of the amount they actually paid for each share; and after four years from the purchase date - the lower of $10.00 or 100% of the amount they actually paid for each share.

ARCT III was only authorized to repurchase shares pursuant to the SRP up to the value of shares issued under the DRIP and limited the amount spent to repurchase shares in a given quarter to the value of the shares issued under the DRIP in that same quarter.

When a stockholder requested repurchases and the repurchases were approved by ARCT III's board of directors, it reclassified such obligation from equity to a liability based on the settlement value of the obligation. The following table reflects the number of shares repurchased for the years ended December 31, 2012 and 2011. There were no repurchases requested or fulfilled during the period from October 15, 2010 ("ARCT III's date of inception") to December 31, 2010.

Year ended December 31,	Number of Requests		Number of Shares		Average Price per Share
2011		1		2,375	$	10.00
2012		73		179,104		9.93
Cumulative repurchase requests as of December 31, 2012(1)		74		181,479	$	9.93

(1) Includes unfulfilled repurchase requests for 35,180 shares at a average price per share of $9.86, which were approved for repurchase as of December 31, 2012.

Upon the Merger the SRP was terminated.

Distribution Reinvestment Plan

Pursuant to the ARCT III distribution reinvestment plan or ("DRIP"), stockholders could have elected to reinvest distributions by purchasing shares of ARCT III common stock in lieu of receiving cash. No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP had the same rights and were treated in the same manner as if such shares were issued pursuant to ARCT III's initial public offering (the "ARCT III IPO"). Shares issued under the DRIP were recorded within stockholders' equity in the accompanying consolidated balance sheets in the period distributions were declared. During the years ended December 31, 2012 and 2011, ARCT III issued 2.7 million and 27,169 shares of common stock, respectively, with a value of $26.8 million and $0.3 million, respectively, in each case with a par value per share of $0.01, pursuant to the DRIP. Upon the Merger, the DRIP was terminated.

Derivative Instruments

The Company may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with its borrowings. Certain of the techniques used to hedge exposure to interest rate fluctuations may also be used to protect against declines in the market value of assets that result from general trends in debt markets. The principal objective of such agreements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions.

The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The accounting for subsequent changes in the fair value of these derivatives depends on whether each has been designed and qualifies for hedge accounting treatment. If the Company elects not to apply hedge accounting treatment, any changes in the fair value of these derivative instruments is recognized immediately in gains (losses) on derivative instruments in the consolidated statement of operations. If the derivative is designated and qualifies for hedge accounting treatment the change in the estimated fair value of the derivative is recorded in other comprehensive income (loss) to the extent that it is effective. Any ineffective portion of a derivative's change in fair value will be immediately recognized in earnings.

Revenue Recognition

Upon the acquisition of real estate, certain properties will have leases where minimum rent payments increase during the term of the lease. The Company will record rental revenue for the full term of each lease on a straight-line basis. When the Company acquires a property, the term of existing leases is considered to commence as of the acquisition date for the purposes of this calculation. Cost recoveries from tenants are included in tenant reimbursement income in the period the related costs are incurred, as applicable.

The Company's revenues, which are derived primarily from rental income, include rents that each tenant pays in accordance with the terms of each lease reported on a straight-line basis over the initial term of the lease. Since many of the leases provide for rental increases at specified intervals, straight-line basis accounting requires the Company to record a receivable, and include in revenues, unbilled rent receivables that the Company will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease. The Company defers the revenue related to lease payments received from tenants in advance of their due dates.

The Company continually reviews receivables related to rent and unbilled rent receivables and determines collectability by taking into consideration the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. In the event that the collectability of a receivable is in doubt, the Company will record an increase in the allowance for uncollectible accounts or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss. As of December 31, 2012 and 2011, the Company determined that there was no allowance for uncollectible accounts necessary.

Offering and Related Costs

Offering and related costs include costs incurred in connection with the Company's issuance of common stock. These costs include, but are not limited to, (i) legal, accounting, printing, mailing and filing fees; (ii) escrow related fees, and (iii) reimbursement to the Dealer Manager for amounts they paid to reimburse the bonified due diligence expenses of broker-dealers.

Share-Based Compensation

The Company has a stock-based incentive award plan for its affiliated Manager, non-executive directors, officers, other employees and independent contractors who are providing services to the Company, as applicable, and a non-executive director restricted share plan, which are accounted for under the guidance for share-based payments. The expense for such awards is included in general and administrative expenses and is recognized over the vesting period or when the requirements for exercise of the award have been met. See Note 12 - Share-Based Compensation for additional information on these plans.

Income Taxes

Each of the Company and ARCT III qualified as REITs under Sections 856 through 860 of the Internal Revenue Code (the "Code") commencing with the taxable year ended December 31, 2011. Being qualified for taxation as a REIT, each of the Company and ARCT III generally will not be subject to federal corporate income tax to the extent it distributes its REIT taxable income to its stockholders, and so long as it distributes at least 90% of its REIT taxable income. REITs are subject to a number of other organizational and operational requirements. Each of the Company and ARCT III may still be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

Per Share Data

Income (loss) per basic share of common stock is calculated by dividing net income (loss) less dividends on unvested restricted stock and dividends on preferred shares by the weighted-average number of shares of common stock issued and outstanding during such period. Diluted income (loss) per share of common stock considers the effect of potentially dilutive shares of common stock outstanding during the period.

Reportable Segments

The Company has determined that it has one reportable segment, with activities related to investing in real estate. The Company's investments in real estate generate rental revenue and other income through the leasing of properties, which comprised 100% of its total consolidated revenues. Although the Company's investments in real estate will be geographically diversified throughout the United States, management evaluates operating performance on an individual property level. The Company's properties have been aggregated into one reportable segment.

Recent Accounting Pronouncements

In May 2011, the Financial Accounting Standards Board (the "FASB") issued guidance that expands the existing disclosure requirements for fair value measurements, primarily for Level 3 measurements, which are measurements based on unobservable inputs such as the Company's own data. This guidance is largely consistent with current fair value measurement principles with few exceptions that do not result in a change in general practice. The guidance was applied prospectively and was effective for interim and annual reporting periods ending after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations as the guidance relates only to disclosure requirements.

In June 2011, the FASB issued guidance requiring entities to present items of net income and other comprehensive income either in one continuous statement - referred to as the statement of comprehensive income - or in two separate, but consecutive, statements of net income and other comprehensive income. The new guidance does not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. In December 2011, the FASB deferred certain provisions of this guidance related to the presentation of certain reclassification adjustments out of accumulated other comprehensive income, by component in both the statement and the statement where the reclassification is presented. This guidance was applied prospectively and was effective for interim and annual reporting periods ended after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations but changed the location of the presentation of other comprehensive income to more closely associate the disclosure with net income.

In September 2011, the FASB issued guidance that allows entities to perform a qualitative analysis as the first step in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then a quantitative analysis for impairment is not required. The guidance was effective for interim and annual impairment tests for fiscal periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the Company's financial position or results of operations.

In December 2011, the FASB issued guidance which contains new disclosure requirements regarding the nature of and entity's rights of offset and related arrangements associated with its financial instruments and derivative instruments. The new disclosures are designed to make financial statements prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards and will give the financial statement users information about both gross and net exposures. The guidance is effective for interim and annual reporting periods beginning on or after January 1, 2013. The adoption of this guidance is not expected to have a material impact on the Company's financial position or results of operations.

In July 2012, the FASB issued revised guidance intended to simplify how an entity tests indefinite-lived intangible assets for impairment. The amendments will allow an entity first to assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test. An entity will no longer be required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative test unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. The amendments are effective for annual and interim indefinite-lived intangible asset impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption was permitted. The adoption of this guidance did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

In February 2013, the FASB issued guidance which requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. The guidance is effective for annual and interim periods beginning after December 15, 2012 with early adoption permitted. The adoption of this guidance, which is related to disclosure only, did not have a material impact on the Company's consolidated financial position, results of operations or cash flows.

In February 2013, the FASB issued new accounting guidance clarifying the accounting and disclosure requirements for obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2013. The Company does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial position, results of operations or cash flows.

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Quarterly Results (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information [Table Text Block]

Presented below is a summary of the unaudited quarterly financial information for the Company for the years ended December 31, 2012 and 2011 (amounts in thousands, except share and per share amounts):

	Quarters Ended
	March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
Revenues	$	6,240		$	11,534		$	18,944		$	30,075
Net loss from continuing operations attributable to stockholders	$	(4,706	)	$	(6,993	)	$	(12,650	)	$	(14,351	)
Less: dividends declared on preferred shares	$	-		$	(70	)	$	(140	)	$	(158	)
Net loss from continuing operations attributable to common stockholders	$	(4,706	)	$	(7,063	)	$	(12,790	)	$	(14,509	)
Net loss from discontinued operations attributable to stockholders	$	(322	)	$	(77	)	$	(41	)	$	(259	)
Net loss attributable to common stockholders, net of dividends on preferred shares	$	(5,028	)	$	(7,140	)	$	(12,831	)	$	(14,768	)
Weighted average shares outstanding		23,609,509			68,312,582			138,323,562			178,480,894
Basic and diluted loss per share from continuing operations attributable to common stockholders	$	(0.20	)	$	(0.10	)	$	(0.09	)	$	(0.08	)
Basic and diluted loss per share attributable to common stockholders	$	(0.21	)	$	(0.10	)	$	(0.09	)	$	(0.08	)

	Quarters Ended
	March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011
Revenues	$	-		$	-		$	584		$	3,331
Net loss from continuing operations attributable to common stockholders	$	(32	)	$	(82	)	$	(1,122	)	$	(2,647	)
Net loss from discontinued operations attributable to stockholders	$	-		$	-		$	(8	)	$	(808	)
Net loss attributable to common stockholders	$	(32	)	$	(82	)	$	(1,130	)	$	(3,455	)
Weighted average shares outstanding		20,000			20,000			2,166,783			12,553,958
Basic and diluted loss per share from continuing operations attributable to stockholders	$	(1.60	)	$	(4.10	)	$	(0.52	)	$	(0.28	)
Basic and diluted loss per share attributable to stockholders	$	(1.60	)	$	(4.10	)	$	(0.52	)	$	(0.22	)

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Organization (Tables)

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Assets and Liabilities of Contributed Companies, at carryover basis [Table Text Block]

Because the contribution was from an affiliate of the Sponsor and deemed to be a transaction between entities under common control, the assets and liabilities were recorded by the Company at the Contributor's carrying amount, or book value, at the time of the contribution. The assets and liabilities of the Contributed Companies are summarized as follows (amounts in thousands):

Assets and liabilities of Contributed Companies, at carryover basis:
Real estate investments, net of accumulated depreciation and amortization of $13,453	$	108,759
Other assets		2,402
Notes payable(1)		(30,626	)
Mortgage notes payable(2)		(96,472	)
Other liabilities		(834	)
Net assets (liabilities) of Contributed Companies	$	(16,771	)

(1) Notes payable were repaid from the proceeds of the Company's IPO concurrently with closing.

(2) $82.6 million of mortgage notes payable were refinanced with a new $51.5 million revolving credit facility and the remaining balance was repaid from the proceeds of the Company's IPO concurrently with closing of the IPO.

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Derivatives and Hedging Activities (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

As of September 30, 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Number of Instruments		Notional Amount
Interest rate swaps		10	$	667,590

As of December 31, 2012, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Number of Instruments		Notional Amount
Interest rate swaps		7	$	152,590
Interest rate cap		1		50,000
Total		8	$	202,590

As of December 31, 2012, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Balance Sheet Location		Number of Instruments		Notional Amount
Interest Rate Swaps		Derivatives, at fair value		7	$	152,590
Interest Rate Cap		Derivatives, at fair value		1		50,000
Total				8	$	202,590

As of December 31, 2011, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Balance Sheet Location		Number of Instruments		Notional Amount
Interest Rate Swap		Derivatives, at fair value		1	$	5,060

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Balance Sheet as of September 30, 2013 and December 31, 2012 (dollar amounts in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location		September 30, 2013			December 31, 2012
Interest rate products		Derivative assets, at fair value	$	7,088		$	-
Interest rate products		Derivative liabilities, at fair value	$	(1,785	)	$	(3,830	)

Derivatives Designated as Hedging Instruments

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2012 and 2011 (amounts in thousands):

	Balance Sheet Location		December 31, 2012			December 31, 2011
Interest Rate Swaps		Derivatives, at fair value	$	(3,830	)	$	(98	)
Interest Rate Cap		Derivatives, at fair value		-			NA	(1)
Total			$	(3,830	)	$	(98	)

(1) NA means not applicable

Derivative Instruments and Hedging Activities Disclosure

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2013 and 2012, respectively (amounts in thousands).

	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	2013			2012			2013			2012
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)	$	(4,880	)	$	(1,541	)	$	6,009		$	(4,715	)
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)	$	(1,258	)	$	(343	)	$	(3,209	)	$	(678	)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	$	(56	)	$	(91	)	$	(79	)	$	(91	)

The table below details the location in the consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the years ended December 31, 2012 and 2011 (amounts in thousands). The Company had no active derivatives during the period from the Company's date of inception to December 31, 2010.

	Year Ended December 31,
	2012			2011
Amount of loss recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)	$	(4,684	)	$	(111	)
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)	$	(941	)	$	(13	)
Amount of loss recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)*	$	(1	)	$	-

* The Company reclassified to interest expense, less than $1,000 of other comprehensive loss into earnings due to hedged forecasted transactions no longer probable of occurring.

Net Amounts of Offsetting Derivative Liabilities Presented in the Consolidated Balance Sheet

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of September 30, 2013 and December 31, 2012. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

Offsetting of Derivative Assets and Liabilities
	Gross Amounts of Recognized Assets		Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet			Financial Instruments		Cash Collateral Received		Net Amount
September 30, 2013	$	7,088	$	(1,785	)	$	-	$	7,088	$	(1,785	)	$	-	$	-	$	5,303
December 31, 2012	$	-	$	(3,830	)	$	-	$	-	$	(3,830	)	$	-	$	-	$	(3,830	)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Reclassifications out of Accumulated Other Comprehensive Income ("AOCI")

The following table details reclassification adjustments out of AOCI and the corresponding effect on net income for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands):

	Amount Reclassified from AOCI												Affected Line Items in the Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended September 30,						Nine Months Ended September 30,
AOCI Component	2013			2012			2013			2012
Unrealized loss on investment securities, net	$	-		$	-		$	93		$	-			Gain on sale of investment securities
Designated derivatives, fair value adjustment		(1,258	)		(343	)		(3,209	)		(678	)		Interest expense

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Subsequent Events (Details) (USD $)	0 Months Ended	1 Months Ended		2 Months Ended	3 Months Ended			7 Months Ended		9 Months Ended				12 Months Ended			24 Months Ended	28 Months Ended	0 Months Ended					4 Months Ended	9 Months Ended	1 Months Ended				4 Months Ended				3 Months Ended		1 Months Ended
	Nov. 07, 2011	Jul. 09, 2012	Dec. 31, 2010	Nov. 02, 2011	Sep. 30, 2013 property	Mar. 31, 2013	Sep. 30, 2012 property	Jan. 29, 2013	Jun. 18, 2012	Sep. 30, 2013 property		Sep. 30, 2012 property	Sep. 07, 2011	Dec. 31, 2012 property		Dec. 31, 2011 property	Dec. 31, 2012 property	Mar. 31, 2013	Mar. 04, 2013 Affiliated Entity [Member]	Sep. 30, 2013 2013 Acquisitons [Member] sqft property		Dec. 31, 2012 2013 Acquisitons [Member] property sqft		Apr. 30, 2013 At the Market Offering [Member]	Sep. 30, 2013 At the Market Offering [Member]	Jan. 24, 2013 Public Equity Offering [Member]	Jan. 29, 2013 Public Equity Offering [Member]	Nov. 06, 2013 Property Acquisition [Member] sqft property		May 07, 2013 Property Acquisition [Member] property sqft		Dec. 31, 2012 Property Acquisition [Member] sqft		Sep. 30, 2013 Underwriter's Option to Purchase Addtional Notes, Proceeds [Member]	Oct. 22, 2013 Barclays Bank PLC [Member] Secured Debt [Member]	Oct. 22, 2013 Base Rate [Member] Barclays Bank PLC [Member] Secured Debt [Member]	Oct. 22, 2013 Eurodollar [Member] Barclays Bank PLC [Member] Secured Debt [Member]
Subsequent Event [Line Items]
Long-term Debt					$ 269,891,000					$ 269,891,000																									$ 2,175,000,000
Proceeds from issuance of convertible debt					300,000,000					310,000,000		0																						10,000,000
Number of Real Estate Properties														654		131	654			1,219	[1]	653						1,328		721	[2]	653	[2]
Number of Properties Acquired					38		207			528	[3]	377		524	[4]	129	653											109		68
Square feet of property																				20,399,857	[1]	15,421,465	[1]					34,024,450	[1]	16,955,023	[2]	15,421,465	[2]
Square feet of acquired property																												13,624,593		1,533,558
Real Estate Investment, Aggregate Purchase Price																				3,033,684,000	[1],[5]	1,798,436,000	[1],[5]					5,160,125,000	[1],[5]	2,112,123,000	[2],[5]	1,798,436,000	[2],[5]
Real Estate Investment Property, at Cost, Acquisitions																												2,126,441,000	[5]	313,687,000	[5]
Debt Instrument, Basis Spread on Variable Rate																																				2.00%	3.00%
Shares issued (in shares)																			100,000					553,000		1,800,000	2,070,000
Shares issued price per share																								$ 16.02		$ 13.47
Issuance of treasury stock upon exercise of employee stock options, shares																											270,000
Proceeds from issuances of common stock	800,000	46,000,000	0	15,800,000		800,000		26,700,000	30,300,000	490,577,000		1,653,988,000	67,400,000	1,658,776,000		122,993,000		146,400,000						8,900,000	8,900,000		26,500,000
Remaining Equity Offering, At the Market Offering																								51,100,000
Proceeds from sale of investment securities										$ 44,188,000		$ 0

[1] Total portfolio excludes one vacant property contributed in September 2011, which was classified as held for sale at September 30, 2013.

[2] Total portfolio excludes one vacant property contributed in September 2011 which was classified as held for sale at December 31, 2012.

[3] Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

[4] Buildings, fixtures and improvements have been provisionally allocated for two properties with an aggregate purchase price of $183.9 million pending receipt of the cost segregation analyses on such assets being prepared by a third party specialist.

[5] Contract purchase price, excluding acquisition and transaction related costs.

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Share-Based Compensation (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Share-based Compensation [Abstract]

Schedule of Share-based Compensation, Activity

The following tables detail the restricted shares activity within the Equity Plan, Director Stock Plan and RSP during the nine months ended September 30, 2013:

Restricted Share Awards

	Equity Plan				RSP & Director Stock Plan
	Number of Restricted Common Shares		Weighted-Average Issue Price		Number of Restricted Common Shares		Weighted- Average Issue Price
Awarded December 31, 2012		259,909	$	11.84		30,300	$	10.68
Granted		625,000		14.30		18,000		14.58
Forfeited		-		-		-		-
Awarded September 30, 2013		884,909	$	13.57		48,300	$	12.13

Unvested Restricted Shares

	Equity Plan						RSP & Director Stock Plan
	Number of Restricted Common Shares			Weighted-Average Issue Price			Number of Restricted Common Shares			Weighted- Average Issue Price
Unvested, December 31, 2012		186,403		$	11.62			27,930		$	10.58
Granted		625,000			14.30			18,000			14.58
Vested		(186,403	)		(11.62	)		(27,930	)		(10.58	)
Forfeited		-			-			-			-
Unvested, September 30, 2013		625,000		$	14.30			18,000		$	14.58

The following tables detail the restricted shares activity within the Equity Plan, Director Stock Plan and RSP during the years ended December 31, 2012 and 2011:

Restricted Share Awards

	Equity Plan					Director Stock Plan
	Number of Restricted Common Shares			Weighted-Average Issue Price		Number of Restricted Common Shares			Weighted- Average Issue Price
Awarded, January 1, 2011		-		$	-		-		$	-
Granted		167,400			12.50		14,700			11.50
Awarded December 31, 2011		167,400			12.50		14,700			11.50
Granted		93,683			10.65		23,250			10.45
Forfeited		(1,174	)		10.65		(7,650	)		11.54
Awarded December 31, 2012		259,909		$	11.84		30,300		$	10.68

Unvested Restricted Shares

	Equity Plan					RPS & Director Stock Plan
	Number of Restricted Common Shares			Weighted- Average Issue Price		Number of Restricted Common Shares			Weighted- Average Issue Price
Unvested, January 1, 2011		-		$	-		-		$	-
Granted		167,400			12.50		14,700			11.50
Vested		(13,950	)		12.50		-			-
Unvested, December 31, 2011		153,450			12.50		14,700			11.50
Granted		93,683			10.65		23,250			10.45
Vested		(59,556	)		12.42		(2,370	)		11.88
Forfeited		(1,174	)		10.65		(7,650	)		11.54
Unvested, December 31, 2012		186,403		$	11.62		27,930		$	10.58

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Quarterly Results (Unaudited) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended											9 Months Ended				12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013		Dec. 31, 2012	Sep. 30, 2012		Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012	Dec. 31, 2011
Revenues	$ 0	$ 60,884		$ 30,075	$ 18,816		$ 11,534	$ 6,240	$ 3,331	$ 584	$ 0	$ 0	$ 145,915		$ 36,486		$ 66,793	$ 3,970
Net loss from continuing operations attributable to stockholders	0	(59,154)		(14,351)	(12,687)		(6,993)	(4,706)	(2,647)	(1,122)	(82)	(32)	(248,840)		(24,310)		(38,700)	(3,883)
Dividends, Preferred Stock		53		158	140		70	0					368		210		368	0
Net loss from continuing operations attributable to common stockholders		(59,207)		(14,509)	(12,827)		(7,063)	(4,706)					(249,208)		(24,520)		(36,068)	(3,883)
Net income (loss) from discontinued operations attributable to stockholders	0	91		(259)	(3)		(77)	(322)	(808)	(8)	0	0	164		(478)		(699)	(816)
Net loss attributable to common stockholders		$ (59,116)		$ (14,768)	$ (12,830)		$ (7,140)	$ (5,028)	$ (3,455)	$ (1,130)	$ (82)	$ (32)	$ (249,044)		$ (24,998)		$ (39,767)	$ (4,699)
Weighted average common shares outstanding		1,884,807,219	[1]	178,480,894	138,323,562	[1]	68,312,582	23,609,509	12,553,958	2,166,783	20,000	20,000	166,970,341	[1]	76,950,157	[1]	102,513,974	3,720,351
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$ 0.00	$ (0.32)		$ (0.08)	$ (0.09)		$ (0.10)	$ (0.20)	$ (0.28)	$ (0.52)	$ (4.10)	$ (1.60)	$ (1.49)		$ (0.31)		$ (0.38)	$ (1.04)
Basic and diluted net loss per share from discontinued operations attributable to stockholders		$ 0.00			$ 0.00								$ 0.00		$ (0.01)		$ (0.01)	$ (0.22)
Basic and diluted net loss per share attributable to common stockholders	$ 0.00	$ (0.32)		$ (0.08)	$ (0.09)		$ (0.10)	$ (0.21)	$ (0.22)	$ (0.52)	$ (4.10)	$ (1.60)	$ (1.49)		$ (0.32)		$ (0.39)	$ (1.26)

[1] Weighted average shares for the nine months ended September 30, 2013 are adjusted on a pro forma basis as if the purchase of 27.7 million shares of ARCT III common stock for cash, purchased in conjunction with the ARCT III Merger, had been completed at the beginning of the period. Weighted average shares for the nine months ended September 30, 2013, excluding this pro forma adjustment, were 172,798,170 and net loss per share was $1.44 per share, basic and diluted.

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Other Long Term Debt Other Long Term Debt (Details) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended		0 Months Ended	9 Months Ended	0 Months Ended
	Sep. 15, 2013	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	Jul. 24, 2012 Series C Preferred Stock [Member]	Sep. 30, 2013 Series C Preferred Stock [Member]	Sep. 15, 2013 Series D Preferred Stock [Member]	Sep. 30, 2013 Convertible Senior Notes [Member]	Aug. 01, 2013 Convertible Senior Notes [Member]	Jul. 29, 2013 Convertible Senior Notes [Member]	Sep. 30, 2013 Portion at Fair Value Measurement [Member]	Sep. 30, 2013 Carrying (Reported) Amount, Fair Value Disclosure [Member] Convertible Senior Notes [Member]
Schedule of Held-to-maturity Securities [Line Items]
Convertible preferred stock, outstanding		0	828,472			28,398,213
Stock Issued During Period, Value, New Issues		$ 490,578,000	$ 1,657,807,000	$ 186,127,000		$ 445,000,000
Convertible preferred stock, par value		$ 0.01	$ 0.01				$ 0.01
Preferred Stock, Liquidation Preference Per Share						$ 15.67
Preferred Stock, Dividend Rate, Percentage					5.81%		5.81%
Common stock, par value	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Period for Stock Issuance After Merger	3 days
Shares to be Issued	15,100,000						21,700,000
Long-term Debt		269,891,000							10,000,000	300,000,000
Long-term Debt, Fair Value								300,600,000			449,800,000	301,000,000
Debt Instrument, Unamortized Discount								$ 9,400,000

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Derivatives and Hedging Activities (Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance) (Details) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012		Dec. 31, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)	$ 0	$ (3,622,000)	$ (1,198,000)	$ 9,218,000	$ (4,037,000)	$ (3,743,000)		$ (98,000)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)				(144,000)	0
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)		(4,880,000)	(1,541,000)	6,009,000	(4,715,000)
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)						(4,684,000)		(111,000)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)		(56,000)	(91,000)	(79,000)	(91,000)	(1)	[1]
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)		$ (1,258,000)	$ (343,000)	$ (3,209,000)	$ (678,000)	$ (941,000)		$ (13,000)

[1] The Company reclassified to interest expense, less than $1,000 of other comprehensive loss into earnings due to hedged forecasted transactions no longer probable of occurring

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended								1 Months Ended	9 Months Ended	12 Months Ended									12 Months Ended					12 Months Ended					12 Months Ended		24 Months Ended	12 Months Ended		12 Months Ended		9 Months Ended		1 Months Ended		1 Months Ended		1 Months Ended		1 Months Ended	3 Months Ended				12 Months Ended			3 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Aug. 09, 2013	Jun. 07, 2013	Mar. 31, 2013	Aug. 01, 2012	Dec. 31, 2010	Dec. 01, 2010	Dec. 31, 2010 Common Stock [Member]	Sep. 30, 2013 Common Stock [Member]	Dec. 31, 2012 Common Stock [Member]	Dec. 31, 2011 Common Stock [Member]	Mar. 31, 2013 Common Stock [Member]	Jan. 29, 2013 Common Stock [Member]	Jul. 09, 2012 Common Stock [Member]	Jun. 18, 2012 Common Stock [Member]	Nov. 07, 2011 Common Stock [Member]	Nov. 02, 2011 Common Stock [Member]	Sep. 07, 2011 Common Stock [Member]	Dec. 31, 2012 Minimum [Member]	Dec. 31, 2012 Minimum [Member] Four Years [Member]	Dec. 31, 2012 Minimum [Member] Three Years [Member]	Dec. 31, 2012 Minimum [Member] Two Years [Member]	Dec. 31, 2012 Minimum [Member] One Year [Member]	Dec. 31, 2012 Maximum [Member]	Dec. 31, 2012 Maximum [Member] Four Years [Member]	Dec. 31, 2012 Maximum [Member] Three Years [Member]	Dec. 31, 2012 Maximum [Member] Two Years [Member]	Dec. 31, 2012 Maximum [Member] One Year [Member]	Dec. 31, 2012 Funded [Member]	Dec. 31, 2011 Funded [Member]	Dec. 31, 2012 Funded [Member]	Dec. 31, 2012 Leases, Acquired-in-Place [Member]	Dec. 31, 2011 Leases, Acquired-in-Place [Member]	Dec. 31, 2012 Above Market Leases [Member]	Dec. 31, 2011 Above Market Leases [Member]	Sep. 30, 2013 Series C Preferred Stock [Member]	Jun. 07, 2013 Series C Preferred Stock [Member]	Nov. 07, 2013 CapLease [Member]	Oct. 31, 2013 CapLease [Member]	Nov. 07, 2013 CapLease [Member] Series C Preferred Stock [Member]	Oct. 31, 2013 CapLease [Member] Series C Preferred Stock [Member]	Nov. 07, 2013 CapLease [Member] Series D Preferred Stock [Member]	Oct. 31, 2013 CapLease [Member] Series D Preferred Stock [Member]	Nov. 07, 2013 Preferred Stock CVR Settlement [Domain] Series D Preferred Stock [Member]	Dec. 31, 2013 Preferred Stock CVR Settlement [Domain] Series D Preferred Stock [Member]	Oct. 31, 2013 Preferred Stock CVR Settlement [Domain] Series D Preferred Stock [Member]	Jun. 07, 2013 Private Placement [Member]	Sep. 30, 2013 Direct Financing Lease [Member]	Dec. 31, 2012 Building [Member]	Dec. 31, 2012 Equipment [Member] Minimum [Member]	Dec. 31, 2012 Equipment [Member] Maximum [Member]	Sep. 30, 2013 Contingent Valuation Rights [Member]	Sep. 30, 2013 Underwriter's Option to Purchase Addtional Notes, Proceeds [Member]
Proceeds from issuance of convertible debt	$ 300,000,000	$ 310,000,000	$ 0																																																						$ 10,000,000
Cash and cash equivalents	150,481,000	150,481,000	695,453,000	156,873,000	19,331,000					0	0
Cash deposit uninsured by the FDIC				154,800,000	18,500,000
Deferred financing cost, net				15,100,000	3,100,000
Deferred Costs, Leasing, Net				200,000	300,000
Offering costs				100,000	0
Maximum Amount of Offering from Universal Shelf Registration Statement				500,000,000					500,000,000
Real Estate Investment Property, at Cost	2,971,050,000	2,971,050,000		1,798,490,000	209,326,000	2,300,000																																														9,900,000
Common stock, Contingent Value Rights Issued							29,400,000
Antidilutive securtities excluded from computation of earnings per share		9,051,661		1,621,349
Convertible preferred stock, issued	0	0		828,472																																					28,400,000				15,100,000		18,800,000			1,100,000
Stock Issued During Period, Value, New Issues		490,578,000		1,657,807,000	186,127,000								320,000	1,594,000	170,000																									445,000,000
Preferred Stock, Contingent Value Rights Issued																																																			28,400,000
Repayment of Common Stock Contingent Value Rights																																																11,000,000								20,400,000
Repayment of Common Stock Contingent Value Rights, per share																																																								1,500
Repayments of Long-term Debt																																																								23,700,000
Contingent Value Right, Cash Payment, Amount																																														249,600,000
Common stock, issued	185,448,022	185,448,022		179,167,112	17,162,016			13,015,534								61,000	2,070,000	487,500	3,250,000	74,979	1,497,924	5,574,131																					1,400,000
Common stock, $0.01 par value, 750,000,000 shares authorized, 185,448,022 and 179,167,112 issued and outstanding at September 30, 2013 and December 31, 2012, respectively	1,848,000	1,848,000		1,792,000	172,000																																						18,300,000
Cash Amount																																										435,600,000		186,000,000					14,600,000
Liquidation amount, per share																																																								900
Liquidation amount																																																								25,600,000
Intangible lease assets, gross																																				210,959,000	21,777,000	1,264,000
Intangible lease assets, accumulated amortization																																				(11,183,000)	(3,282,000)	(116,000)
Intangible lease assets, net																																				199,776,000	18,495,000	1,148,000
Period of Amortization for Intangible Asset				11 years 10 months 24 days																			2 years					20 years								11 years 10 months 24 days		5 years
Estimated useful life																																																					40 years	5 years	10 years
2013																																				19,265,000		252,000
2014																																				19,234,000		252,000
2015																																				18,855,000		252,000
2016																																				18,586,000		252,000
2017																																				18,049,000		122,000
Number of Share Repurchase Requests				73	1																												74		74
Stock Repurchased During Period, Shares													28,315,016	181,479																			179,104	2,375	181,479
Shares repurchased, average cost per share																																	$ 9.93	$ 10.00	$ 9.93
Repurchase Price, Share Repurchase Program																								$ 10.00	$ 9.75	$ 9.50	$ 9.25
Repurchase Price, Share Repurchase Program, Percentage of Value of Capital Paid																													100.00%	97.50%	95.00%	92.50%
Issuance of shares under distributions reinvestment plan		$ 4,895,000		$ 26,784,000	$ 271,000								$ 5,000	$ 27,000
Common stock issued through distribution reinvestment plan (in shares)													489,000	2,678,451	27,169

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Series A Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]	Dec. 31, 2012 Series B Preferred Stock [Member]	Dec. 31, 2011 Series B Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01		$ 0.01	$ 0.01	$ 0.01	$ 0.01
Convertible preferred stock, shares authorized	100,000,000	100,000,000		545,454	0	283,018	0
Convertible preferred stock, issued	0	828,472		545,454	0	283,018	0
Convertible preferred stock, outstanding	0	828,472		545,454	0	283,018	0
Preferred Stock, Liquidation Preference Per Share				$ 11.00	$ 11.00	$ 10.60	$ 10.60
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	240,000,000	240,000,000
Common stock, issued	185,448,022	179,167,112	17,162,016
Common stock, outstanding	185,448,022	179,167,112	17,162,016

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Other Long Term Debt

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Convertible Preferred Stock [Abstract]

Other Long Term Debt

Note 8 - Other Long Term Debt

The Company has the following class of convertible preferred stock outstanding at September 30, 2013:

Issue	Date Issued		Units		Gross Proceeds (In thousands)		Liquidation Preference		Dividend/Interest Rate
Shares classified as Liabilities:
Series C Convertible Preferred Stock		June 7, 2013		28,398,213	$	445,000	$	15.67		5.81	%

Convertible Obligation to Series C Convertible Preferred Stockholders

The fair value of the convertible obligation to Series C convertible preferred stockholders ("Series C Stock") was determined to approximate the proceeds received at issuance of $445.0 million. Pursuant to the terms of Series C Stock purchase agreements, the Series C Stock is expected to be settled promptly following the Company's merger with CapLease or December 31, 2013, in a combination of common shares of the Company and cash consideration at the election of the Company. At September 30, 2013, the fair value of the obligation was remeasured and determined to be $449.8, which is based predominately on the estimated settlement value. The change in fair value is recorded as interest expense in the consolidated statement of operations and comprehensive loss. The settlement is expected to close promptly following the CapLease Merger, which, as discussed in Note 2 - Mergers and Acquisitions, consummated on November 5, 2013.

On September 15, 2013, the Company entered into definitive purchase agreements pursuant to which it will issue Series D Preferred, par value $0.01 per share, at a 5.81% coupon and common stock, par value $0.01 per share, to institutional holders of Series C Convertible Preferred Stock promptly following the close of the Company's merger with CapLease, which consummated on November 5, 2013, via a private placement. In accordance with the terms of the purchase agreement relating to the Company's previously issued Series C Preferred, Series C Preferred will be redeemed for cash or common stock. Pursuant to the new definitive purchase agreements, the Company will issue approximately 21.7 million shares of Series D Preferred and 15.1 million shares of common stock to the holders of Series C Preferred. The shares of Series D Preferred will be convertible, in certain circumstances, into common stock or Series E Cumulative Preferred Stock or redeemable into cash, at the discretion of the Company.

Convertible Senior Note Offering

On July 29, 2013, the Company issued $300.0 million of Convertible Senior Notes and issued an additional $10.0 million of Convertible Senior Notes on August 1, 2013. The notes mature August 1, 2018 and are convertible to cash or shares of the Company's common stock at the Company's option in accordance with the agreement. The fair value of the notes was determined at issuance to be $300.6 million, resulting in a debt discount of $9.4 million with an offset recorded to additional paid-in capital representing the equity component of the notes for the conversion options. The discount is being amortized to interest expense over the expected life of the notes. As of September 30, 2013, the carrying value of the notes was $301.0 million.

Note 10 - Convertible Preferred Stock

On May 11, 2012, the Company entered into a securities purchase agreement with an unaffiliated third party that is an "accredited investor" (as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as amended) pursuant to which the Company sold 545,454 shares of the Company's Series A convertible preferred stock for gross proceeds of $6.0 million and aggregate net proceeds of $5.8 million after offering-related fees and expenses.

The Series A convertible preferred stock has a liquidation preference of $11.00 per share, plus accrued and unpaid dividends, and a redemption premium equal to one percent (1%). Commencing on May 31, 2012, the Company has been paying cumulative dividends on the Series A convertible preferred stock monthly in arrears at the annualized rate of $0.77 per share.

The Series A convertible preferred stock is convertible into the Company's common stock, at the option of the holder of the Series A convertible preferred stock, at a conversion price equal to $11.00 per share, beginning one year after the date of issuance. The Company, at its option at any time, may redeem the Series A convertible preferred stock, in whole or in part, at $11.00 per share.

On July 24, 2012, the Company entered into a securities purchase agreement with an unaffiliated third party that is an "accredited investor" (as defined in Rule 501 of Regulation D as promulgated under the Securities Act of 1933, as amended) pursuant to which the Company sold 283,018 shares of the Company's Series B convertible preferred stock for gross proceeds of approximately $3.0 million. After deducting offering-related fees and expenses, the aggregate net proceeds to the Company from the sale of the Series B convertible preferred stock were approximately $3.0 million.

The Series B convertible preferred stock has a liquidation preference of $10.60 per share, plus accrued and unpaid dividends, and a redemption premium equal to one percent (1%). Commencing on August 15, 2012, the Company has been paying cumulative dividends on the Series B convertible preferred stock monthly in arrears at an annualized rate of $0.74 per share.

The Series B convertible preferred stock is convertible into the Company's common stock, at the option of the holder of the Series B convertible preferred stock, at a conversion price equal to $10.60 per share, beginning one year after the date of issuance. The Company, at its option at any time, may redeem the Series B convertible preferred stock, in whole or in part, at $10.60 per share.

The Series A convertible preferred stock and the Series B convertible preferred stock each ranks senior to the Company's common stock and on parity with each other, and junior to any other preferred stock the Company may issue other than additional series of the Series A convertible preferred stock or Series B convertible preferred stock.

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (USD $) In Thousands, except Share data, unless otherwise specified	Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total Stock-holders' Equity	Non-Controlling Interests	Total	Preferred Stock [Member] Convertible Preferred Stock [Member]	Preferred Stock [Member] Common Stock [Member]	Preferred Stock [Member] Additional Paid-In Capital	Preferred Stock [Member] Accumulated Other Comprehensive Loss	Preferred Stock [Member] Accumulated Deficit	Preferred Stock [Member] Total Stock-holders' Equity	Preferred Stock [Member] Non-Controlling Interests
Balance at Dec. 01, 2010	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Shares, Outstanding at Dec. 01, 2010	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		20,000
Issuance of common stock			200			200
Net loss								0
Balance at Dec. 31, 2010	0	0	200	0	0	200	0	200
Shares, Outstanding at Dec. 31, 2010	0	20,000.00
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		16,929,184
Issuance of common stock		170	185,957			186,127		186,127
Common stock issued through distribution reinvestment plan (in shares)		27,169
Common stock issued through distribution reinvestment plan			271			271		271
Common stock repurchases (in shares)
Common stock repurchases			(25)			(25)		(25)
Offering costs, commissions and dealer manager fees			(21,752)			(21,752)		(21,752)
Equity-based compensation (in shares)		185,663
Equity-based compensation		2	223			225		225
Consideration paid for assets of Manager in excess of carryover basis/Contribution transactions			(16,769)			(16,769)		(16,769)
Distributions declared					(2,519)	(2,519)		(2,519)
Contributions from non-controlling interest holders			3,875			3,875	(3,875)	0
Distributions to non-controlling interest holders							68	68
Net loss					(4,699)	(4,699)	(105)	(4,804)
Other comprehensive income				(98)		(98)		(98)
Balance at Dec. 31, 2011	0	172	144,230	(98)	(7,218)	137,086	3,702	140,788
Shares, Outstanding at Dec. 31, 2011	0	17,162,016.00
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		159,396,558							828,472
Issuance of common stock		1,594	1,656,213			1,657,807		1,657,807	8		8,992			9,000
Common stock issued through distribution reinvestment plan (in shares)		2,678,451
Common stock issued through distribution reinvestment plan		27	26,757			26,784		26,784
Common stock repurchases (in shares)		181,479
Common stock repurchases		(2)	(1,872)			(1,874)		(1,874)
Offering costs, commissions and dealer manager fees			(181,643)			(181,643)		(181,643)
Equity-based compensation (in shares)		111,566
Equity-based compensation		1	1,223			1,224		1,224
Distributions declared					(73,455)	(73,455)		(73,455)
Issuance of operating partnership units							6,352	6,352
Contributions from non-controlling interest holders							(7,375)	7,375
Distributions to non-controlling interest holders							663	663
Net loss					(39,399)	(39,399)	(301)	(39,700)
Other comprehensive income				(3,836)		(3,836)		(3,836)
Balance at Dec. 31, 2012	8	1,792	1,653,900	(3,934)	(120,072)	1,531,694	16,465	1,548,159
Shares, Outstanding at Dec. 31, 2012	828,472.00	179,167,112.00
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		32,036,221
Issuance of common stock		320	490,258			490,578		490,578
Conversion of Convertible Preferred Stock Series A and B to common stock (in shares)	(828,472)	828,472
Conversion of Convertible Preferred Stock Series A and B to common stock	(8)	8						0
Conversion of OP Units to common stock (in shares)		599,233
Conversion of OP Units to common stock		6	5,794			5,800	(5,800)	0
Common stock issued through distribution reinvestment plan (in shares)		489,000
Common stock issued through distribution reinvestment plan		5	4,890			4,895		4,895
Common stock repurchases (in shares)		28,315,016
Common stock repurchases		(283)	(357,634)			(357,917)		(357,917)
Offering costs, commissions and dealer manager fees			(4,298)			(4,298)		(4,298)
Equity-based compensation (in shares)		643,000
Equity-based compensation							9,827	9,827
Amortization of restricted shares			4,068			4,068		4,068
Consideration paid for assets of Manager in excess of carryover basis/Contribution transactions			(3,035)			(3,035)		(3,035)
Equity component of convertible debt			9,372			9,372		9,372
Distributions declared					(112,069)	(112,069)		(112,069)
Issuance of operating partnership units							108,247	108,247
Contributions from non-controlling interest holders							750	750
Distributions to non-controlling interest holders							5,170	5,170
Net loss					(248,676)	(248,676)	(717)	(249,393)
Other comprehensive income				8,791		8,791		8,791
Balance at Sep. 30, 2013	$ 0	$ 1,848	$ 1,803,315	$ 4,857	$ (480,817)	$ 1,329,203	$ 123,602	$ 1,452,805
Shares, Outstanding at Sep. 30, 2013	0	185,448,022.00

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Convertible Preferred Stock (Details) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended	12 Months Ended		0 Months Ended			0 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	May 31, 2012 Series A Preferred Stock [Member]	Dec. 31, 2012 Series A Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]	Jul. 24, 2012 Series B Preferred Stock [Member]	Dec. 31, 2012 Series B Preferred Stock [Member]	Dec. 31, 2011 Series B Preferred Stock [Member]
Class of Stock [Line Items]
Shares issued (in shares)				545,454			283,018
Stock Issued During Period, Value, New Issues	$ 490,578	$ 1,657,807	$ 186,127	$ 6,000			$ 3,000
Proceeds from Issuance of stock, net				$ 5,800			$ 3,000
Preferred Stock, Liquidation Preference Per Share				$ 11.00	$ 11.00	$ 11.00	$ 10.60	$ 10.60	$ 10.60
Convertible Preferred Stock, Terms of Conversion				.01			.01
Annualized rate of dividend (per share)				$ 0.77			$ 0.74
Preferred Stock, Redemption Price Per Share	$ 25.00			$ 11.00			$ 10.60

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CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Real estate investments, at cost:
Land	$ 521,139,000	$ 249,541,000	$ 25,624,000
Buildings, fixtures and improvements	2,121,178,000	1,336,726,000	161,925,000
Acquired intangible lease assets	328,733,000	212,223,000	21,777,000
Total real estate investments, at cost	2,971,050,000	1,798,490,000	209,326,000
Less: accumulated depreciation and amortization	(148,162,000)	(56,110,000)	(15,340,000)
Total real estate investments, net	2,822,888,000	1,742,380,000	193,986,000
Cash and cash equivalents	150,481,000	156,873,000	19,331,000
Investment in direct financing leases, net	57,449,000	0
Investment securities, at fair value	9,480,000	41,654,000	0
Derivatives, at fair value	7,088,000	0
Restricted cash	1,680,000	1,108,000	0
Prepaid expenses and other assets	48,165,000	7,416,000	2,050,000
Receivable for issuance of common stock		0	969,000
Deferred costs, net	47,754,000	15,356,000	3,424,000
Assets held for sale	6,028,000	665,000	1,818,000
Total assets	3,151,013,000	1,965,452,000	221,578,000
LIABILITIES AND EQUITY
Mortgage notes payable	269,891,000	265,118,000	35,320,000
Convertible Notes Payable	300,975,000	0
Senior secured revolving credit facility	0	124,604,000	42,407,000
Senior corporate credit facility	600,000,000	0
Convertible obligation to Series C Convertible Preferred stockholders, at fair value	449,827,000	0
Contingent value rights obligation to preferred and common investors, at fair value	49,314,000	0
Below-market lease liabilities, net	4,200,000	0
Derivatives, at fair value	1,785,000	3,830,000	98,000
Accounts payable and accrued expenses	14,740,000	9,459,000	1,574,000
Deferred rent and other liabilities	7,404,000	4,336,000	887,000
Distributions payable	72,000	9,946,000	504,000
Total liabilities	1,698,208,000	417,293,000	80,790,000
Convertible preferred stock, $0.01 par value, 100,000,000 shares authorized, zero and 828,472 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	0	8,000	0
Common stock, $0.01 par value, 750,000,000 shares authorized, 185,448,022 and 179,167,112 issued and outstanding at September 30, 2013 and December 31, 2012, respectively	1,848,000	1,792,000	172,000
Additional paid-in capital	1,803,315,000	1,653,900,000	144,230,000
Accumulated other comprehensive income (loss)	4,857,000	(3,934,000)	(98,000)
Accumulated deficit	(480,817,000)	(120,072,000)	(7,218,000)
Total stockholders? equity	1,329,203,000	1,531,694,000	137,086,000
Non-controlling interests	123,602,000	16,465,000	3,702,000
Total equity	1,452,805,000	1,548,159,000	140,788,000
Total liabilities and equity	3,151,013,000	1,965,452,000	221,578,000
Series A Preferred Stock [Member]
LIABILITIES AND EQUITY
Convertible preferred stock, $0.01 par value, 100,000,000 shares authorized, zero and 828,472 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively		5,000	0
Series B Preferred Stock [Member]
LIABILITIES AND EQUITY
Convertible preferred stock, $0.01 par value, 100,000,000 shares authorized, zero and 828,472 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively		$ 3,000	$ 0

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Derivatives and Hedging Activities (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011
Derivatives, Fair Value [Line Items]
Gross Amounts of Recognized Assets	$ 7,088	$ 0
Gross Amounts of Recognized Liabilities	(1,785)	(3,830)	(98)
Derivative Asset, Fair Value, Amount Offset Against Collateral	0	0
Derivative Asset	7,088	0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet	1,785	3,830
Financial Instruments	0	0
Cash Collateral Received	0	0
Derivative, Fair Value, Net	5,303	(3,830)
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Gross Amounts of Recognized Assets	7,088
Gross Amounts of Recognized Liabilities	(1,785)	(3,830)	(98)
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Derivatives, Fair Value [Line Items]
Gross Amounts of Recognized Assets	7,088
Gross Amounts of Recognized Liabilities	$ (1,785)	$ (3,830)	$ (98)

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Intangible lease assets of the Company consist of the following as of December 31, 2012 and 2011 (amounts in thousands):

	December 31,
	2012			2011
In-place leases, gross	$	210,959		$	21,777
Accumulated amortization on in-place leases		(11,183	)		(3,282	)
In-place leases, net of accumulated amortization		199,776			18,495
Above market leases, gross		1,264			-
Accumulated amortization on above market leases		(116	)		-
Above market leases, net of accumulated amortization		1,148			-
Total intangible lease assets, net	$	200,924		$	18,495

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The following table provides the weighted-average amortization period as of December 31, 2012 for intangible lease assets and the projected amortization expense and adjustments of rental income for the next five years of the Company (amounts in thousands):

	Weighted- Average Amortization Period in Years		2013		2014		2015		2016		2017
In-place leases:
Total to be included in amortization expense		11.9	$	19,265	$	19,234	$	18,855	$	18,586	$	18,049
Above market leases:
Total to be included in rental income		5.0	$	252	$	252	$	252	$	252	$	122
Total intangible lease assets		11.9

Schedule of Share Repurchase Program

When a stockholder requested repurchases and the repurchases were approved by ARCT III's board of directors, it reclassified such obligation from equity to a liability based on the settlement value of the obligation. The following table reflects the number of shares repurchased for the years ended December 31, 2012 and 2011. There were no repurchases requested or fulfilled during the period from October 15, 2010 ("ARCT III's date of inception") to December 31, 2010.

Year ended December 31,	Number of Requests		Number of Shares		Average Price per Share
2011		1		2,375	$	10.00
2012		73		179,104		9.93
Cumulative repurchase requests as of December 31, 2012(1)		74		181,479	$	9.93

(1) Includes unfulfilled repurchase requests for 35,180 shares at a average price per share of $9.86, which were approved for repurchase as of December 31, 2012.

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Net Loss Per Share

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Earnings Per Share [Abstract]

Net Loss Per Share

Note 16 - Net Loss Per Share

The following is a summary of the basic and diluted net loss per share computation for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands, expect for shares and per share data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Net loss from continuing operations attributable to stockholders	$	(59,154	)	$	(12,687	)	$	(248,840	)	$	(24,310	)
Less: dividends declared on preferred shares		(53	)		(140	)		(368	)		(210	)
Net loss from continuing operations attributable to common stockholders		(59,207	)		(12,827	)		(249,208	)		(24,520	)
Net income (loss) from discontinued operations attributable to common stockholders		91			(3	)		164			(478	)
Net loss attributable to common stockholders	$	(59,116	)	$	(12,830	)	$	(249,044	)	$	(24,998	)
Weighted average common shares outstanding(1)		184,807,219			138,323,562			166,970,341			76,950,157
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$	(0.32	)	$	(0.09	)	$	(1.49	)	$	(0.31	)
Basic and diluted net loss per share from discontinued operations attributable to common stockholders	$	-		$	-		$	-		$	(0.01	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.32	)	$	(0.09	)	$	(1.49	)	$	(0.32	)

(1) Weighted average shares for the nine months ended September 30, 2013 are adjusted on a pro forma basis as if the purchase of 27.7 million shares of ARCT III common stock for cash, purchased in conjunction with the ARCT III Merger, had been completed at the beginning of the period. Weighted average shares for the nine months ended September 30, 2013, excluding this pro forma adjustment, were 172,798,170 and net loss per share was $1.44 per share, basic and diluted.

As of September 30, 2013, the Company excluded 9,051,661 OP Units outstanding, which are convertible to an equal number of shares of the Company's common stock, 643,000 shares of unvested restricted stock outstanding, 28,398,213 shares of the Company's Series C Convertible Preferred Stock outstanding, and 18,539,550 of potentially dilutive shares of common stock attributable to the Convertible Senior Notes calculated based on the principle outstanding as of September 30, 2013 from the calculation of diluted net loss per share as the effect would have been antidilutive.

Note 16 - Net Loss Per Share

The following is a summary of the basic and diluted net loss per share computation for the years ended December 31, 2012 and 2011. The Company had no income or loss for the period from the Company's date of inception to December 31, 2010 (amounts in thousands, expect for shares and per share data):

	Year Ended December 31,
	2012			2011
Net loss from continuing operations attributable to stockholders	$	(38,700	)	$	(3,883	)
Less: dividends declared on preferred shares		(368	)		-
Net loss from continuing operations attributable to common stockholders		(39,068	)		(3,883	)
Net loss from discontinued operations attributable to common stockholders		(699	)		(816	)
Net loss attributable to common stockholders	$	(39,767	)	$	(4,699	)
Weighted average common shares outstanding		102,513,974			3,720,351
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$	(0.38	)	$	(1.04	)
Basic and diluted net loss per share from discontinued operations attributable to common stockholders	$	(0.01	)	$	(0.22	)
Basic and diluted net loss per share attributable to common stockholders	$	(0.39	)	$	(1.26	)

As of December 31, 2012, the Company had 1,621,349 OP Units outstanding, which are convertible to an equal number of shares of the Company's common stock, 214,333 shares of unvested restricted stock outstanding, 137,771 Class B units outstanding, 545,454 shares of the Company's Series A preferred convertible stock outstanding and 283,018 shares of the Company's Series B preferred convertible stock outstanding, which were excluded from the calculation of diluted loss per share as the effect would have been antidilutive.

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Mergers and Acquisitions (Details) (USD $)	3 Months Ended		9 Months Ended			12 Months Ended			24 Months Ended					3 Months Ended	0 Months Ended		3 Months Ended			3 Months Ended		0 Months Ended		0 Months Ended		9 Months Ended			3 Months Ended				0 Months Ended		3 Months Ended					0 Months Ended		3 Months Ended	0 Months Ended	3 Months Ended
	Sep. 30, 2013 property	Sep. 30, 2012 property	Sep. 30, 2013 property		Sep. 30, 2012 property	Dec. 31, 2012		Dec. 31, 2011	Dec. 31, 2012	Sep. 15, 2013	Aug. 09, 2013 company	Mar. 31, 2013	Oct. 22, 2013 Cole Merger [Member]	Sep. 30, 2013 Fortress Portfolio [Member]	Nov. 05, 2013 CapLease [Member]	Feb. 28, 2013 ARCT III Merger [Member]	Sep. 30, 2013 Series F Preferred Stock [Member] ARCT IV / ARCP Merger [Member]	Sep. 30, 2013 OP Units [Member] ARCT IV / ARCP Merger [Member]	Sep. 30, 2013 Common Stock [Member]	Sep. 30, 2013 Common Stock [Member] ARCT IV / ARCP Merger [Member]	Sep. 30, 2013 Class B Units [Member] ARCT IV / ARCP Merger [Member]	Sep. 07, 2011 Line of Credit [Member] Revolving Credit Facility [Member]	Sep. 30, 2013 Other Assets [Member] ARCT IV / ARCP Merger [Member]	Feb. 28, 2013 Other Assets [Member] ARCT III Merger [Member]	Feb. 28, 2013 Furniture and fixtures [Member] ARCT III Merger [Member]	Sep. 30, 2013 GE Capital Portfolio [Member] property	Sep. 30, 2013 GE Capital Portfolio [Member] Property Subject to Operating Lease [Member] property	Sep. 30, 2013 GE Capital Portfolio [Member] Direct Financing Lease [Member] property	Dec. 31, 2013 Fortress Portfolio [Member] property	Sep. 30, 2013 Fortress Portfolio [Member] property	Jul. 24, 2013 Fortress Portfolio [Member]	Feb. 28, 2013 Common Stock [Member] Option One [Member] ARCP Merger [Member]	Feb. 28, 2013 Cash [Member] Option Two [Member] ARCP Merger [Member]	Feb. 28, 2013 Cash [Member] Option Two [Member] ARCP shares converted from ARCT III shares [Member]	Sep. 30, 2013 Cash [Member] Option Two [Member] ARCT IV / ARCP Merger [Member]	Sep. 30, 2013 Cash [Member] Preferred Stock [Member] CapLease [Member]	Sep. 30, 2013 Cash [Member] OP Units [Member] CapLease [Member]	Sep. 30, 2013 Cash [Member] Common Stock [Member] CapLease [Member]	Sep. 30, 2013 Cash [Member] Restricted Stock [Member] CapLease [Member]	Feb. 28, 2013 ARCP [Member] ARCP Merger [Member]	Feb. 28, 2013 American Realty Capital III Special Limited Partnership, LLC [Member] ARCP Merger [Member]	Sep. 30, 2013 American Realty Capital III Special Limited Partnership, LLC [Member] ARCT IV / ARCP Merger [Member]	Feb. 28, 2013 American Realty Capital III Special Limited Partnership, LLC [Member] Post-Conversion [Member] Common Stock [Member]	Dec. 31, 2013 ARCP Inland Portfolio [Member] property	Sep. 30, 2013 ARCP Inland Portfolio [Member] property	Sep. 30, 2013 Selling Commission [Member] ARCT IV / ARCP Merger [Member]
Business Acquisition [Line Items]
Convertible stock issued during period, shares																																								0.95
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares																	0.5937	2.3961		0.5190	2.3591
Convertible preferred stock, par value	$ 0.01		$ 0.01			$ 0.01			$ 0.01
Preferred Stock, Redemption Price Per Share	$ 25.00		$ 25.00
Common stock, par value	$ 0.01		$ 0.01			$ 0.01		$ 0.01	$ 0.01	$ 0.01
Convertible stock issued during period, value																																	$ 12.00		$ 9.00	$ 25.00	$ 8.50	$ 8.50	$ 8.50
Business Combination, Consideration Transferred															$ 920,700,000	$ 5,800,000								$ 1,700,000	$ 4,100,000
Shares, Outstanding																																148,113,788.50	29,200,000	27,700,000
Percentage of shares outstanding																																	16.50%
Common stock, issued	185,448,022		185,448,022			179,167,112		17,162,016	179,167,112			13,015,534							32,036,221													140,700,000
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest, Issuance of Units																																									7,300,000		73,000,000
Merger Expenses Agreed To																							5,800,000
Number of Properties Acquired	38	207	528	[1]	377	524	[2]	129	653																	447	409	38	41															5
Related Party Transaction, Real Estate Selling Commissions, Percentage																																														2.00%
Related Party Transaction, Amounts of Transaction																																														8,400,000
ARCT IV Implied price of common stock, amount	13,500		13,500
Subordinated Distributions of Net Sale Proceeds																																										68,300,000
Number of Real Estate Properties														196																120															33
Real Estate Investment Property, at Cost	2,971,050,000		2,971,050,000			1,798,490,000		209,326,000	1,798,490,000		2,300,000																		601,200,000	200,300,000	972,500,000													501,000,000	56,400,000
Merger Share Exhange Ratio													1.0929
Number of Companies											67
Business Acquisition, Share Price													$ 13.82
Business Combination, Cash Consideration Threshold Percentage													2.00%
Debt to be Extinguished Upon Consummation of Merger																						$ 150,000,000

[1] Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

[2] Buildings, fixtures and improvements have been provisionally allocated for two properties with an aggregate purchase price of $183.9 million pending receipt of the cost segregation analyses on such assets being prepared by a third party specialist.

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Mortgage Note Payable (Schedule Of Aggregate Future Principal Payments On Mortgage Notes Payable) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Mortgage Loans on Real Estate [Line Items]
Total	$ 269,891
Mortgages [Member]
Mortgage Loans on Real Estate [Line Items]
October 1, 2013 - December 31, 2013	47	74
2014	189	189
2015	13,767	13,767
2016	16,820	16,820
2017	169,768	164,968
Thereafter	69,300	69,300
Total	$ 269,891	$ 265,118

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Related Party Transactions and Arrangements (Schedule of Offering Costs Reimbursements to Related Parties) (Details) (Manager [Member], ARC Properties Advisors, LLC [Member], Fees and Expense Reimbursement, Stock Offering [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Manager [Member] | ARC Properties Advisors, LLC [Member] | Fees and Expense Reimbursement, Stock Offering [Member]
Schedule of Offering Costs Reimbursements to Related Parties [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 814	$ (3,473)	$ 1,951	$ 16,808	$ 16,264	$ 4,383
Payable	$ 0		$ 0		$ 0	$ 220

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Related Party Transactions and Arrangements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Related Party Transactions [Abstract]

Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate

The following table details the results of such activities related to RCS, which are recorded as offering costs on the consolidated statement of changes in equity (amounts in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,				Payable as of
	2013		2012		2013		2012		September 30, 2013		December 31, 2012
Total commissions and fees paid to RCS	$	-	$	80,739	$	-	$	160,530	$	-	$	-

The following table details the results of such activities related to RCS, which are recorded as offering costs on the consolidated statement of changes in equity (amounts in thousands):

	Year Ended December 31,				Payable as of December 31,
	2012		2011		2012		2011
Total commissions and fees paid to RCS	$	160,614	$	11,434	$	-	$	92

Schedule Of Offering Costs Reimbursements to Related Party

The Company reimbursed the Manager, the ARCT III Advisor and RCS for services relating to the ARCT III IPO, and other significant transactions such as the ARCT III Merger, for which the Manager provided assistance. The following table details the results of such activities related to offering and other significant transactions costs reimbursed to the Manager, the ARCT III Advisor and RCS (amounts in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,				Payable as of
	2013		2012			2013		2012		September 30, 2013		December 31, 2012
Offering expense and other significant transactions reimbursements	$	814	$	(3,473	)	$	1,951	$	16,808	$	-	$	-

The Company reimbursed the Manager, the ARCT III Advisor and RCS for services relating to the IPO, the Company's follow-on offerings and the ARCT III IPO, as applicable. The following table details the results of such activities related to offering costs reimbursed to the Manager, the ARCT III Advisor and RCS (amounts in thousands):

	Year Ended December 31,				Payable as of December 31,
	2012		2011		2012		2011
Offering expense reimbursements	$	16,264	$	4,383	$	-	$	220

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The following table details amounts incurred by the Company or ARCT III and contractually due to the Sponsor, ARCT III Advisor or the Manager and forgiven in connection with the operations related services described above (amounts in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,								Payable as of
	2013				2012				2013				2012				September 30, 2013		December 31, 2012
	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven
One-time fees:
Acquisition fees(1)	$	86	$	-	$	4,529	$	-	$	3,190	$	-	$	9,712	$	-	$	-	$	364
Financing fees and related cost reimbursements		-		-		1,424		-		7,500		-		2,683		-		-		-
Other expense reimbursements		42		-		3,614		-		8,359		-		7,527		-		-		18
On-going fees:
Base management fees(2)		3,739		3,739		278		278		8,393		6,109		1,725		1,513		-		-
Transfer agent fees		103		-		-		-		270		-		-		-		23		-
Property management and leasing fees(2)		-		-		250		250		799		799		456		456		-		-
Total operational fees and reimbursements	$	3,970	$	3,739	$	10,095	$	528	$	28,511	$	6,908	$	22,103	$	1,969	$	23	$	382

(1) In conjunction with the ARCT III Merger, the payment of acquisition fees was terminated, however for properties that were in ARCP's or ARCT III's pipeline at the ARCT III Merger date, the fees were paid as the Manager had sourced and negotiated the purchase price prior to the ARCT III Merger.

(2) The amounts incurred and paid were recognized in merger and other transaction related costs during the nine months ended September 30, 2013 as they relate to the ARCT III Merger.

The following table details amounts incurred by the Company or ARCT III and contractually due to the Sponsor, ARCT III Advisor or the Manager and forgiven in connection with the operations related services described above (amounts in thousands):

	Year Ended December 31,								Payable as of December 31,
	2012				2011
	Incurred		Forgiven		Incurred		Forgiven		2012		2011
One-time fees:
Acquisition fees and related cost reimbursements	$	27,138	$	-	$	1,692	$	-	$	364	$	37
Financing fees and related cost reimbursements		3,350		-		182		-		-		-
Other expense reimbursements		592		-		148		-		18		-
On-going fees:
Base management fees		2,035		1,823		274		274		-		-
Incentive fees		771		771		-		-		-		-
Property management and leasing fees		918		918		15		15		-		-
Total operational fees and reimbursements	$	34,804	$	3,512	$	2,311	$	289	$	382	$	37

Schedule of General and Administrative Expenses Absorbed by Affiliate

The following table details general and administrative expenses absorbed by the Sponsor and the ARCT III Advisor and paid to the Company or ARCT III during the three and nine months ended September 30, 2013 (amounts in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,				Receivable as of
	2013		2012		2013		2012		September 30, 2013		December 31, 2012
General and administrative expenses absorbed	$	-	$	-	$	-	$	234	$	-	$	-

The following table details general and administrative expenses absorbed by the Sponsor and the ARCT III Advisor and paid to the Company during the years ended December 31, 2012 and 2011 (amounts in thousands):

	Year Ended December 31,				Receivable as of December 31,
	2012		2011		2012		2011
General and administrative expenses absorbed	$	234	$	20	$	-	$	-

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Fair Value of Financial Instruments (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2013:

	Contingent value rights obligation to investors			Convertible obligation to Series C Convertible Preferred stockholders			Total
Beginning balance	$	-		$	-		$	-
Fair value at issuance		-			(445,000	)		(445,000	)
Settlement of the CVR obligation to common investors		20,362			-			20,362
Fair value adjustment		(69,676	)		(4,827	)		(74,503	)
Transfers to Level 2		49,314			449,827			499,141
Ending balance	$	-		$	-		$	-

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):

	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
September 30, 2013:
Investment in real estate fund	$	-	$	9,480		$	-	$	9,480
Interest rate swap assets		-		7,088			-		7,088
Interest rate swap liabilities		-		(1,785	)		-		(1,785	)
Convertible obligation to Series C Convertible Preferred stockholders		-		(449,827	)		-		(449,827	)
Contingent value rights obligation to investors		-		(49,314	)		-		(49,314	)
December 31, 2012:
Investment in preferred securities	$	41,654	$	-		$	-	$	41,654
Interest rate swap liabilities		-		(3,830	)		-		(3,830	)

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2012 and 2011, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):

	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
December 31, 2012
Investment securities	$	41,654	$	-		$	-	$	41,654
Interest rate swaps	$	-	$	(3,830	)	$	-	$	(3,830	)
Total	$	41,654	$	(3,830	)	$	-	$	37,824
December 31, 2011
Interest rate swap	$	-	$	(98	)	$	-	$	(98	)

Fair Value, by Balance Sheet Grouping

The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):

	Level		Carrying Amount at September 30, 2013		Fair Value at September 30, 2013		Carrying Amount at December 31, 2012		Fair Value at December 31, 2012
Convertible debt		3	$	300,975	$	300,628	$	-	$	-
Mortgage notes payable		3		269,891		273,536		265,118		271,056
Senior secured revolving credit facility		3		-		-		124,604		124,604
Senior corporate credit facility		3		600,000		600,000		-		-
			$	1,170,866	$	1,174,164	$	389,722	$	395,660

The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):

	Level		Carrying Amount at December 31, 2012		Fair Value at December 31, 2012		Carrying Amount at December 31, 2011		Fair Value at December 31, 2011
Mortgage notes payable		3	$	265,118	$	271,056	$	35,320	$	35,686
Senior secured revolving credit facility		3	$	124,604	$	124,604	$	42,407	$	42,407

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Preferred and Common Stock (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Common Stock Offerings

The following are the Company's equity offerings of common stock during the nine months ended September 30, 2013 (dollar amounts in millions):

Type of offering	Closing Date		Number of Shares(1)		Gross Proceeds
Registered follow on offering		January 29, 2013		2,070,000	$	26.7
ATM		January 1 - September 30, 2013		553,300		8.9
Private placement offering		June 7, 2013		29,411,764		455.0
Dividends paid in common stock(2)		August 5, 2013		1,157		-
Total				32,036,221	$	490.6

The following are the Company's public equity offerings of common stock (dollar amounts in millions) since inception through March 31, 2013:

Type of offering	Closing Date		Number of Shares		Gross Proceeds
IPO		September 7, 2011		5,574,131	$	67.4
Follow on offering		November 2, 2011		1,497,924		15.8
Underwriters' over allotment		November 7, 2011		74,979		0.8
Follow on offering		June 18, 2012		3,250,000		30.3
Underwriters' over allotment		July 9, 2012		487,500		4.6
Follow on offering		January 29, 2013		2,070,000		26.7
ATM		January 1 - March 31, 2013		61,000		0.8
Total				13,015,534	$	146.4

Schedule of Dividends Authorized and Paid

The Company's board of directors has authorized, and the Company began paying, dividends since October 2011 on the fifteenth day of each month to stockholders of record on the eighth day of such month. During the nine months ended September 30, 2013, the board of directors of the Company has authorized the following increases in the Company's dividend.

Dividend increase declaration date	Annualized dividend per share		Effective date
March 17, 2013	$	0.91		June 8, 2013
May 28, 2013	$	0.94		December 8, 2013*
October 23, 2013	$	1.00		**

* The dividend increase became effective at the close of the CapLease Merger, which consummated on November 5, 2013.

** The dividend increase is contingent upon, and effective with, the close of the Cole Merger.

The Company's board of directors has authorized, and the Company began paying, dividends since October 2011 on the fifteenth day of each month to stockholders of record on the eight day of such month. Since October 2011, the board of directors of the Company has authorized the following increases in the Company's dividend.

Dividend increase declaration date	Annualized dividend per share		Effective date
September 7, 2011	$	0.8750		October 9, 2011
February 27, 2012	$	0.8800		March 9, 2012
March 16, 2012	$	0.8850		June 9, 2012
June 27, 2012	$	0.8900		September 9, 2012
September 30, 2012	$	0.8950		November 9, 2012
November 29, 2012	$	0.9000		February 9, 2013
March 17, 2013	$	0.9100		June 8, 2013

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Mortgage Note Payable

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Notes Payable [Abstract]

Mortgage Notes Payable

Note 7 - Mortgage Notes Payable

The Company's mortgage notes payable consist of the following as of September 30, 2013 and December 31, 2012 (dollar amounts in thousands):

	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate(1)			Weighted Average Maturity(2)
September 30, 2013		165	$	269,891		4.25	%		4.68
December 31, 2012		164	$	265,118		4.28	%		5.51

(1) Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 2.73% to 6.13% at September 30, 2013 and 3.32% to 6.13% at December 31, 2012.

(2) Weighted average remaining years until maturity as of September 30, 2013 and December 31, 2012, respectively.

The following table summarizes the scheduled aggregate principal repayments subsequent to September 30, 2013 (amounts in thousands):

Year	Total
October 1, 2013 - December 31, 2013	$	47
2014		189
2015		13,767
2016		16,820
2017		169,768
Thereafter		69,300
Total	$	269,891

The Company's mortgage loan agreements generally require restrictions on corporate guarantees and the maintenance of financial covenants including maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). As of September 30, 2013, the Company was in compliance with the debt covenants under the mortgage loan agreements.

Note 6 - Mortgage Notes Payable

The Company's mortgage notes payable consist of the following as of December 31, 2012 and 2011 (dollar amounts in thousands):

	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate(1)			Weighted Average Maturity(2)
December 31, 2012		164	$	265,118		4.28	%		5.51
December 31, 2011		29	$	35,320		4.54	%		4.40

(1) Mortgage notes payable have fixed rates or rates that are fixed through the use of derivative instruments. Effective interest rates range from 3.32% to 6.13% at December 31, 2012 and 3.75% to 5.32% at December 31, 2011.

(2) Weighted average remaining years until maturity as of December 31, 2012 and 2011, respectively.

The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2012 (amounts in thousands):

Year	Total
2013	$	74
2014		189
2015		13,767
2016		16,820
2017		164,968
Thereafter		69,300
Total	$	265,118

The Company's mortgage loan agreements generally require financial covenants as well as restrictions on corporate guarantees, the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios). As of December 31, 2012 and 2011, the Company was in compliance with the debt covenants under the mortgage loan agreements.

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Commitments and Contingencies Future Obligations (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Unrecorded Unconditional Purchase Obligation [Line Items]
October 1, 2013 - December 31, 2013	$ 261	$ 160
2014	731	160
2015	732	160
2016	733	160
2017	737	160
Thereafter	6,754	600
Total	$ 9,948	$ 1,400

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Real Estate Investments (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Real Estate [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table presents the allocation of the assets acquired during the periods presented (dollar amounts in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013(1)			2012
Real estate investments, at cost:
Land	$	13,620		$	62,171	$	273,047		$	146,439
Buildings, fixtures and improvements		71,046			334,566		787,192			707,499
Total tangible assets		84,666			396,737		1,060,239			853,938
Acquired intangibles:
In-place leases		10,014			56,622		117,458			117,797
Below market leases		(4,200	)		-		(4,200	)		-
Total assets acquired, net		90,480			453,359		1,173,497			971,735
OP Units issued to acquire real estate investments		-			-		-			(6,352	)
Cash paid for acquired real estate investments	$	90,480		$	453,359	$	1,173,497		$	965,383
Number of properties acquired		38			207		528			377

(1) Excludes 38 properties comprised of $57.4 million of net investments subject to direct financing leases.

The following table presents the allocation of the assets acquired and liabilities of the Company assumed during the periods presented (dollar amounts in thousands):

	Year Ended December 31,
	2012			2011
Real estate investments, at cost:
Land	$	223,917		$	25,624
Buildings, fixtures and improvements		1,174,747			161,925
Total tangible assets		1,398,664			187,549
Acquired intangibles:
In-place leases		189,182			21,777
Above market leases		1,264			-
Total real estate investments acquired		1,589,110			209,326
OP Units issued to acquire real estate investments		(6,352	)		-
Cash paid to acquire real estate investments(1)	$	1,582,758		$	209,326
Number of properties acquired		524			129

(1) For the year ended December 31, 2011, the amount includes the properties that were contributed in September 2011 in conjunction with the completion of the Company's IPO by the Contributor at amortized cost as well as $17.5 million of properties acquired by the Company following its IPO.

The Company owns and operates commercial properties. As of December 31, 2012, the Company owned 654 properties, one of which was vacant and classified as held for sale. As of December 31, 2011, the Company owned 131 properties, two of which were vacant and classified as held for sale. The Contributor, an affiliate of the Sponsor, contributed 63 properties (the "Contributed Properties") in September 2011 in conjunction with the completion of the IPO at amortized cost.

The following table reflects the number and related purchase prices of properties acquired during the years ended December 31, 2012 and 2011 of the Company (dollar amounts in thousands):

	Number of Properties		Base Purchase Price
Year ended December 31, 2011		129	$	209,326
Year ended December 31, 2012(1)		524		1,589,110
Total portfolio as of December 31, 2012		653	$	1,798,436

(1) Buildings, fixtures and improvements have been provisionally allocated for two properties with an aggregate purchase price of $183.9 million pending receipt of the cost segregation analyses on such assets being prepared by a third party specialist.

Business Acquisition, Pro Forma Information

The following table presents unaudited pro forma information as if the acquisitions during the three and nine months ended September 30, 2013 had been consummated on January 1, 2012. Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $1.2 million and $14.6 million for the three months ended September 30, 2013 and 2012, respectively, and merger and other transaction related expenses of $3.8 million for the three months ended September 30, 2013 . The unaudited pro forma net loss attributable to stockholders was adjusted to exclude acquisition related expenses of $22.0 million and $27.2 million for the nine months ended September 30, 2013 and 2012, respectively, and merger and other transaction related expenses of $146.2 million and $20 thousand for the nine months ended September 30, 2013 and 2012, respectively.

	Three Months Ended September 30,					Nine Months Ended September 30,
(Amounts in thousands)	2013			2012		2013			2012
Pro forma revenues	$	59,074		$	20,949	$	177,222		$	160,534
Pro forma net income (loss) attributable to stockholders	$	(53,842	)	$	864	$	(68,300	)	$	71,352

The following table presents unaudited pro forma information as if the acquisitions during the year ended December 31, 2012, had been consummated on December 2, 2010 (date of inception). Additionally, the unaudited pro forma net loss attributable to stockholders was adjusted to reclass acquisition and transaction related expenses of $42.8 million from the year ended December 31, 2012 to the period from December 2, 2010 to December 31, 2010.

(Amounts in thousands)	Year Ended December 31,				Period from December 2, 2010 (Date of Inception) to December 31, 2010
	2012		2011
Pro forma revenues	$	146,821	$	144,081	$	26,989
Pro forma net income (loss) attributable to stockholders	$	27,816	$	27,052	$	(33,660	)

Schedule of Future Minimum Rental Payments for Operating Leases

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands):

	Future Minimum Base Rent Payments		Future Minimum Direct Financing Lease Payments(1)
October 1, 2013 - December 31, 2013	$	54,638	$	1,083
2014		217,104		4,410
2015		213,758		4,324
2016		209,300		4,279
2017		198,779		3,975
Thereafter		1,298,718		12,258
Total	$	2,192,297	$	30,329

(1) 38 properties are subject to direct financing leases and, therefore, revenue is recognized as direct financing lease income on the discounted cash flows of the lease payments. Amounts reflected are the cash rent on these respective properties.

The following table presents future minimum base rental cash payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands):

	Future Minimum Base Rent Payments
2013	$	140,200
2014		140,941
2015		141,292
2016		141,579
2017		138,411
Thereafter		955,557
Total	$	1,657,980

Schedule of Future Minimum Lease Payments for Capital Leases

Net Investment in Direct Financing Leases

The components of the Company's net investment in direct financing leases are as follows (in thousands):

	September 30, 2013
Future minimum lease payments receivable	$	30,329
Unguaranteed residual value of property		41,859
Unearned income		(14,739	)
Net investment in direct financing leases	$	57,449

Schedule of Annualized Rental Income by Major Tenants

Tenant Concentration

The following table lists the tenants of the Company whose annualized rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of September 30, 2012. Annualized rental income for net leases is rental income on a straight-line basis as of the period reported, which includes the effect of tenant concessions such as free rent, as applicable. There were no tenants exceeding 10% of consolidated annualized rental income on a straight-line basis at September 30, 2013.

	September 30,
Tenant	2013		2012
Dollar General		*		16.9	%
FedEx		*		14.1	%
Citizens Bank		*		13.6	%

* The tenants' annualized rental income was not greater than 10% of total consolidated annualized rental income for all portfolio properties as of the period specified.

The following table lists the tenants of the Company whose annualized rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2012 and 2011. Annualized rental income for net leases is rental income on a straight-line basis as of December 31, 2012, which includes the effect of tenant concessions such as free rent, as applicable. The Company did not own any properties as of December 31, 2010.

Tenant	2012			2011
Dollar General		12.3	%		20.8	%
Citizens Bank		11.8	%		40.8	%
FedEx		10.2	%		*
Home Depot		*			13.7	%
Walgreens		*			11.1	%

* The tenants' annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

Schedule of Geographic Concentrations

The following table lists the states where the Company has concentrations of properties where annual rental income on a straight-line basis represented greater than 10% of consolidated annualized rental income on a straight-line basis as of December 31, 2012 and 2011:

State	2012			2011
Illinois		11.2	%		*
South Carolina		*			15.2	%
Ohio		*			12.9	%
Michigan		*			17.4	%

* The state's annualized rental income was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

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Subsequent Events (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Subsequent Events [Abstract]

Schedule of Subsequent Events

The following table presents certain information about the properties that the Company acquired from October 1, 2013 to November 6, 2013 (dollar amounts in thousands):

	No. of Buildings		Square Feet		Base Purchase Price(1)
Total Portfolio - September 30, 2013(2)		1,219		20,399,857	$	3,033,684
Acquisitions		109		13,624,593		2,126,441
Total portfolio - November 6, 2013(2)		1,328		34,024,450	$	5,160,125

(1) Contract purchase price, excluding acquisition and transaction related costs.

(2) Total portfolio excludes one vacant property contributed in September 2011, which was classified as held for sale at September 30, 2013.

The following table presents certain information about the properties that the Company acquired from January 1, 2013 to May 7, 2013 (dollar amounts in thousands):

	No. of Buildings		Square Feet		Base Purchase Price(1)
Total Portfolio - December 31, 2012(2)		653		15,421,465	$	1,798,436
Acquisitions		68		1,533,558		313,687
Total portfolio - May 7, 2013(2)		721		16,955,023	$	2,112,123

(1) Contract purchase price, excluding acquisition and transaction related costs.

(2) Total portfolio excludes one vacant property contributed in September 2011 which was classified as held for sale at December 31, 2012.

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Fair Value of Financial Instruments

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note 10 - Fair Value of Financial Instruments

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The guidance defines three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2013, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The Company's interest rate cap derivative measured at fair value on a recurring basis as of September 30, 2013 was zero and was classified in Level 2 of the fair value hierarchy.

The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments, are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties.

The Company 's investments in funds and preferred units trade in active markets or are comprised of securities that trade in active markets and therefore, due to the availability of quoted market prices in active markets are classified these investments as Level 2 in the fair value hierarchy.

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):

	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
September 30, 2013:
Investment in real estate fund	$	-	$	9,480		$	-	$	9,480
Interest rate swap assets		-		7,088			-		7,088
Interest rate swap liabilities		-		(1,785	)		-		(1,785	)
Convertible obligation to Series C Convertible Preferred stockholders		-		(449,827	)		-		(449,827	)
Contingent value rights obligation to investors		-		(49,314	)		-		(49,314	)
December 31, 2012:
Investment in preferred securities	$	41,654	$	-		$	-	$	41,654
Interest rate swap liabilities		-		(3,830	)		-		(3,830	)

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between Level 1 and Level 2 or Level 3 of the fair value hierarchy during the nine months ended September 30, 2013, except for the transfer of the contingent value rights obligation to preferred shareholders and convertible obligations to Series C Convertible preferred shareholders from Level 3 to Level 2 of $49.3 million and $449.8 million, respectively, as the obligations are now based on observable inputs.

The following is a reconciliation of the beginning and ending balance for the changes in instruments with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2013:

	Contingent value rights obligation to investors			Convertible obligation to Series C Convertible Preferred stockholders			Total
Beginning balance	$	-		$	-		$	-
Fair value at issuance		-			(445,000	)		(445,000	)
Settlement of the CVR obligation to common investors		20,362			-			20,362
Fair value adjustment		(69,676	)		(4,827	)		(74,503	)
Transfers to Level 2		49,314			449,827			499,141
Ending balance	$	-		$	-		$	-

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, due to affiliates and accounts payable approximate their carrying value on the accompanying consolidated balance sheets due to their short-term nature.

The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):

	Level		Carrying Amount at September 30, 2013		Fair Value at September 30, 2013		Carrying Amount at December 31, 2012		Fair Value at December 31, 2012
Convertible debt		3	$	300,975	$	300,628	$	-	$	-
Mortgage notes payable		3		269,891		273,536		265,118		271,056
Senior secured revolving credit facility		3		-		-		124,604		124,604
Senior corporate credit facility		3		600,000		600,000		-		-
			$	1,170,866	$	1,174,164	$	389,722	$	395,660

The fair value of mortgage notes payable and convertible debt are obtained by calculating the present value at current market rates. The terms of the senior corporate credit facility, which take into account the Company 's leverage ratio are considered commensurate with the market, as such, the outstanding balance on the facility approximates fair value.

Note 8 - Fair Value of Financial Instruments

The Company determines fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The guidance defines three levels of inputs that may be used to measure fair value:

Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3 - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment and considers factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2012, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of the Company's derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The Company's interest rate cap derivative measured at fair value on a recurring basis as of December 31, 2012 was zero and was classified in Level 2 of the fair value hierarchy.

The valuation of derivative instruments is determined using a discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and implied volatilities. In addition, credit valuation adjustments, are incorporated into the fair values to account for the Company's potential nonperformance risk and the performance risk of the counterparties.

The Company's preferred units, senior note investments and common stock are in active markets and therefore, due to the availability of quoted market prices in active markets, classified these investments as Level 1 in the fair value hierarchy.

The following table presents information about the Company's assets and liabilities (including derivatives that are presented net) measured at fair value on a recurring basis as of December 31, 2012 and 2011, aggregated by the level in the fair value hierarchy within which those instruments fall (amounts in thousands):

	Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2			Significant Unobservable Inputs Level 3		Total
December 31, 2012
Investment securities	$	41,654	$	-		$	-	$	41,654
Interest rate swaps	$	-	$	(3,830	)	$	-	$	(3,830	)
Total	$	41,654	$	(3,830	)	$	-	$	37,824
December 31, 2011
Interest rate swap	$	-	$	(98	)	$	-	$	(98	)

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2012.

The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair value of short-term financial instruments such as cash and cash equivalents, due to affiliates and accounts payable approximate their carrying value on the accompanying consolidated balance sheets due to their short-term nature.

The fair values of the Company's financial instruments that are not reported at fair value on the consolidated balance sheets are reported below (amounts in thousands):

	Level		Carrying Amount at December 31, 2012		Fair Value at December 31, 2012		Carrying Amount at December 31, 2011		Fair Value at December 31, 2011
Mortgage notes payable		3	$	265,118	$	271,056	$	35,320	$	35,686
Senior secured revolving credit facility		3	$	124,604	$	124,604	$	42,407	$	42,407

The fair value of mortgage notes payable are obtained by calculating the present value at current market rates. The terms of the RBS Facility and the Company's level ratio are considered commensurate with the market, as such the outstanding balance on the facility approximates fair value.

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Derivatives and Hedging Activities

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

Note 6 - Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations.

Cash Flow Hedges of Interest Rate Risk

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and collars as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract and payments of variable-rate amounts if interest rates fall below the floor strike rate on the contract.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2013, such derivatives were used to hedge the variable cash flows associated with variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next twelve months, the Company estimates that an additional $4.8 million will be reclassified from other comprehensive income as an increase to interest expense. During the three and nine months ended September 30, 2013, the Company accelerated the reclassification of approximately $27,000 from other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur.

As of September 30, 2013, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Number of Instruments		Notional Amount
Interest rate swaps		10	$	667,590

As of December 31, 2012, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Number of Instruments		Notional Amount
Interest rate swaps		7	$	152,590
Interest rate cap		1		50,000
Total		8	$	202,590

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the Balance Sheet as of September 30, 2013 and December 31, 2012 (dollar amounts in thousands):

Derivatives Designated as Hedging Instruments	Balance Sheet Location		September 30, 2013			December 31, 2012
Interest rate products		Derivative assets, at fair value	$	7,088		$	-
Interest rate products		Derivative liabilities, at fair value	$	(1,785	)	$	(3,830	)

The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and nine months ended September 30, 2013 and 2012, respectively (amounts in thousands).

	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	2013			2012			2013			2012
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)	$	(4,880	)	$	(1,541	)	$	6,009		$	(4,715	)
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)	$	(1,258	)	$	(343	)	$	(3,209	)	$	(678	)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	$	(56	)	$	(91	)	$	(79	)	$	(91	)

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of September 30, 2013 and December 31, 2012. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

Offsetting of Derivative Assets and Liabilities
	Gross Amounts of Recognized Assets		Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Assets Presented in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet			Financial Instruments		Cash Collateral Received		Net Amount
September 30, 2013	$	7,088	$	(1,785	)	$	-	$	7,088	$	(1,785	)	$	-	$	-	$	5,303
December 31, 2012	$	-	$	(3,830	)	$	-	$	-	$	(3,830	)	$	-	$	-	$	(3,830	)

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of September 30, 2013, the fair value of the derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements, was $2.0 million. As of September 30, 2013, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. 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 $2.0 million at September 30, 2013.

Reclassifications out of Accumulated Other Comprehensive Income ("AOCI")

The following table details reclassification adjustments out of AOCI and the corresponding effect on net income for the three and nine months ended September 30, 2013 and 2012 (amounts in thousands):

	Amount Reclassified from AOCI												Affected Line Items in the Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended September 30,						Nine Months Ended September 30,
AOCI Component	2013			2012			2013			2012
Unrealized loss on investment securities, net	$	-		$	-		$	93		$	-			Gain on sale of investment securities
Designated derivatives, fair value adjustment		(1,258	)		(343	)		(3,209	)		(678	)		Interest expense

Note 9 - Derivatives and Hedging Activities

Risk Management Objective of Using Derivatives

The Company may use derivative financial instruments, including interest rate swaps, caps, options, floors and other interest rate derivative contracts, to hedge all or a portion of the interest rate risk associated with its borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company's operating and financial structure as well as to hedge specific anticipated transactions. The Company does not intend to utilize derivatives for speculative or other purposes other than interest rate risk management. The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate this risk, the Company only enters into derivative financial instruments with counterparties with high credit ratings and with major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company does not anticipate that any of the counterparties will fail to meet their obligations.

Cash Flow Hedges of Interest Rate Risk

The Company's objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above the cap strike rate on the contract.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Such derivatives are used to hedge the variable cash flows associated with forecasted variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified from other comprehensive income as an increase to interest expense.

As of December 31, 2012, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Balance Sheet Location		Number of Instruments		Notional Amount
Interest Rate Swaps		Derivatives, at fair value		7	$	152,590
Interest Rate Cap		Derivatives, at fair value		1		50,000
Total				8	$	202,590

As of December 31, 2011, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollar amounts in thousands):

Interest Rate Derivative	Balance Sheet Location		Number of Instruments		Notional Amount
Interest Rate Swap		Derivatives, at fair value		1	$	5,060

Derivatives Designated as Hedging Instruments

The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2012 and 2011 (amounts in thousands):

	Balance Sheet Location		December 31, 2012			December 31, 2011
Interest Rate Swaps		Derivatives, at fair value	$	(3,830	)	$	(98	)
Interest Rate Cap		Derivatives, at fair value		-			NA	(1)
Total			$	(3,830	)	$	(98	)

(1) NA means not applicable

The table below details the location in the consolidated financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the years ended December 31, 2012 and 2011 (amounts in thousands). The Company had no active derivatives during the period from the Company's date of inception to December 31, 2010.

	Year Ended December 31,
	2012			2011
Amount of loss recognized in accumulated other comprehensive loss from interest rate derivatives (effective portion)	$	(4,684	)	$	(111	)
Amount of loss reclassified from accumulated other comprehensive loss into income as interest expense (effective portion)	$	(941	)	$	(13	)
Amount of loss recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)*	$	(1	)	$	-

* The Company reclassified to interest expense, less than $1,000 of other comprehensive loss into earnings due to hedged forecasted transactions no longer probable of occurring.

Credit-risk-related Contingent Features

The Company has agreements with each of its derivative counterparties that contain a provision where if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations.

As of December 31, 2012, the fair value of the derivatives in a net liability position, including accrued interest but excluding any adjustment for nonperformance risk related to these agreements was $4.1 million. As of December 31, 2012, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. 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 $4.1 million at December 31, 2012.

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Organization

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Note 1 - Organization

American Realty Capital Properties, Inc. (the "Company" or "ARCP"), is a Maryland corporation incorporated on December 2, 2010 that qualified as a real estate investment trust for U.S. federal income tax purposes beginning in the taxable year ended December 31, 2011. On September 6, 2011, the Company completed its initial public offering (the "IPO"). The Company's common stock trades on the NASDAQ Global Select Market ("NASDAQ") under the symbol "ARCP".

The Company acquires, owns and operates single-tenant, freestanding commercial real estate properties. The Company has acquired properties with a combination of long-term and medium-term leases and intends to continue to acquire properties with approximately 70% long-term leases and 30% medium-term leases, with an average portfolio remaining lease term of approximately 10 to 12 years. The Company considers properties that are leased on a "medium-term" basis to mean properties originally leased long-term (ten years or longer) that currently have a primary remaining lease duration of generally three to eight years, on average. The Company expects this investment strategy to develop growth potential from below market leases. Additionally, the Company owns a portfolio that uniquely combines properties with stable income from high credit quality tenants, and properties that have substantial future growth potential.

The Company has advanced its investment objectives by growing its net lease portfolio through key mergers and acquisitions. Since January 1, 2013, the Company has completed or has definitive agreements to complete various mergers and portfolio acquisitions totaling approximately $18.0 billion of assets. See Note 2  - Mergers and Acquisitions.

Substantially all of the Company's business is conducted through ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the "OP"). The Company is the sole general partner and holder of 95.3% of the equity interests in the OP as of September 30, 2013. Certain affiliates of the Company and certain unaffiliated investors are limited partners and owners of 4.3% and 0.4%, respectively, of the equity interests in the OP. After holding units of limited partner interests in the OP ("OP Units") for a period of one year, holders of OP Units have the right to convert the OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, as allowed by the limited partnership agreement of the OP. The remaining rights of the holders of OP Units are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

The Company has retained ARC Properties Advisors, LLC (the "Manager"), a wholly owned subsidiary of AR Capital LLC, (the "Sponsor"), to manage its affairs on a day to day basis and, as a result, is generally externally managed, with the exception of certain acquisition, accounting and portfolio management services performed by employees of the Company. The Company's board of directors determined that it is in the best interests of the Company and its stockholders to become self-managed prior to the pending closing of its merger with Cole Real Estate Investments, Inc. In connection with becoming self-managed, the Company expects to terminate the existing management agreement with the Manager, enter into appropriate employment and incentive compensation arrangements with its executives and acquire from the Manager certain assets necessary for its operations.

Note 1 - Organization

American Realty Capital Properties, Inc. (the "Company"), is a Maryland corporation incorporated on December 2, 2010 that qualified as a real estate investment trust for U.S. federal income tax purposes beginning in the year ended December 31, 2011. On September 6, 2011, the Company completed its initial public offering (the "IPO") and its shares of common stock began trading on the NASDAQ Capital Market ("NASDAQ") under the symbol "ARCP" on September 7, 2011.

The Company acquires, owns and operates single-tenant, freestanding commercial real estate properties. The Company has acquired a combination of long-term and medium-term leases and intends to continue to acquire properties with approximately 70% long-term leases and 30% medium-term leases, with an average remaining lease term of 10 to 12 years. The Company considers properties that are leased on a "medium-term" basis to mean properties originally leased long-term (ten years or longer) that currently have a primary remaining lease duration of generally three to eight years, on average. The Company expects this investment strategy to develop growth potential from below market leases. Additionally, the Company owns a portfolio that uniquely combines a portfolio of properties with stable income from high credit quality tenants, with properties that have substantial growth opportunities.

On February 28, 2013, the Company merged with American Realty Capital Trust III, Inc., a Maryland Corporation ("ARCT III"), (see Note 2 - Merger Agreement).

Prior to the Merger (as defined below) and continuing following the consummation of the Merger, substantially all of the Company's business was and continues to be conducted through ARC Properties Operating Partnership, L.P. (the "OP"), a Delaware limited partnership. The Company is the sole general partner and holder of 99.1% of the equity interest in the OP as of December 31, 2012. ARC Real Estate Partners, LLC (the "Contributor") and certain unaffiliated investors are limited partners and owners of 0.2% and 0.7%, respectively, of the equity interest in the OP. After holding units of limited partner interests in the OP ("OP Units") for a period of one year, holders of OP Units have the right to convert OP Units for the cash value of a corresponding number of shares of the Company's common stock or, at the option of the OP, a corresponding number of shares of the Company's common stock, as allowed by the limited partnership agreement of the OP. All holders of units of equity ownership in the ARCT III operating partnership converted such units into the same class of equity ownership in the OP immediately upon consummation of the Merger. The remaining rights of the holders of OP Units are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

The Company has retained ARC Properties Advisors, LLC (the "Manager"), a wholly owned subsidiary of the Sponsor, to manage its affairs on a day to day basis and, as a result, is generally externally managed. Prior to the Merger, the Company had no employees. In connection with the Merger, the Company internalized certain functions performed for it by the Sponsor and its affiliates prior to the Merger, including acquisition, accounting and portfolio management services and, as a result, the Company currently employs individuals performing such functions. ARCT III was externally managed by American Realty Capital Advisors III, LLC (the "ARCT III Advisor"). These affiliated parties, including the Manager, the Sponsor and Realty Capital Securities, LLC ("RCS" or the "Dealer Manager"), an entity which is under common ownership with the Sponsor, have performed services for the Company and ARCT III, in exchange for which they have received compensation, fees and expense reimbursements, and will continue to receive compensation, fees and expense reimbursements for providing on-going investment oversight and management services to the Company.

Formation Transactions

At the completion of the Company's IPO, the Contributor, an affiliate of the Sponsor, contributed to the OP its indirect ownership interests in certain assets of ARC Income Properties, LLC and ARC Income Properties III, LLC (the "Contributed Companies"). Assets contributed included (1) 59 properties that are presently leased to RBS Citizens Bank, N.A. and Citizens Bank of Pennsylvania, or collectively, Citizens Bank, one property presently leased to Community Bank, N.A, or Community Bank, and one property leased to Home Depot U.S.A., Inc., or Home Depot, and (2) two vacant properties. Additionally, the OP assumed certain liabilities of the Contributed Companies, including $30.6 million of unsecured notes payable and $96.2 million of mortgage notes secured by the contributed properties.

Because the contribution was from an affiliate of the Sponsor and deemed to be a transaction between entities under common control, the assets and liabilities were recorded by the Company at the Contributor's carrying amount, or book value, at the time of the contribution. The assets and liabilities of the Contributed Companies are summarized as follows (amounts in thousands):

Assets and liabilities of Contributed Companies, at carryover basis:
Real estate investments, net of accumulated depreciation and amortization of $13,453	$	108,759
Other assets		2,402
Notes payable(1)		(30,626	)
Mortgage notes payable(2)		(96,472	)
Other liabilities		(834	)
Net assets (liabilities) of Contributed Companies	$	(16,771	)

(1) Notes payable were repaid from the proceeds of the Company's IPO concurrently with closing.

(2) $82.6 million of mortgage notes payable were refinanced with a new $51.5 million revolving credit facility and the remaining balance was repaid from the proceeds of the Company's IPO concurrently with closing of the IPO.

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Derivatives and Hedging Activities Accumulated Other Comprehensive Income Activity (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012		Dec. 31, 2011
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)			$ (144,000)	$ 0
Investment Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)	0	0	93,000	0
Cash Flow Hedging [Member] | Interest Rate Swap [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)					(4,684,000)		(111,000)
Amount of gain (loss) recognized in income on derivative (ineffective portion, reclassifications of missed forecasted transactions and amounts excluded from effectiveness testing)	(56,000)	(91,000)	(79,000)	(91,000)	(1)	[1]
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)	$ (1,258,000)	$ (343,000)	$ (3,209,000)	$ (678,000)	$ (941,000)		$ (13,000)

[1] The Company reclassified to interest expense, less than $1,000 of other comprehensive loss into earnings due to hedged forecasted transactions no longer probable of occurring

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Investment Securities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended				9 Months Ended	12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2013 Securities (Assets) [Member]	Dec. 31, 2012 Securities (Assets) [Member]
Investment [Line Items]
Available For Sale Equity Securites, Weighted Average Maturity								29 years 7 months 6 days
Available-for-sale Securities, Amortized Cost Basis							$ 10,000	$ 41,747
Available-for-sale Securities, Gross Unrealized Gain							0	223
Available-for-sale Securities, Gross Unrealized Loss							(520)	(316)
Investment securities, at fair value	9,480		9,480		41,654	0	9,480	41,654
Gain on sale of investment securities	$ 0	$ 0	$ 451	$ 0
Available For Sale Equity Securites, Weighted Average Interest Rate								5.70%

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Mortgage Note Payable (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Notes Payable [Abstract]

Schedule of Mortgage Notes Payable

The Company's mortgage notes payable consist of the following as of September 30, 2013 and December 31, 2012 (dollar amounts in thousands):

	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate(1)			Weighted Average Maturity(2)
September 30, 2013		165	$	269,891		4.25	%		4.68
December 31, 2012		164	$	265,118		4.28	%		5.51

(1) Mortgage notes payable have fixed rates or are fixed by way of interest rate swap arrangements. Effective interest rates range from 2.73% to 6.13% at September 30, 2013 and 3.32% to 6.13% at December 31, 2012.

(2) Weighted average remaining years until maturity as of September 30, 2013 and December 31, 2012, respectively.

The Company's mortgage notes payable consist of the following as of December 31, 2012 and 2011 (dollar amounts in thousands):

	Encumbered Properties		Outstanding Loan Amount		Weighted Average Effective Interest Rate(1)			Weighted Average Maturity(2)
December 31, 2012		164	$	265,118		4.28	%		5.51
December 31, 2011		29	$	35,320		4.54	%		4.40

(1) Mortgage notes payable have fixed rates or rates that are fixed through the use of derivative instruments. Effective interest rates range from 3.32% to 6.13% at December 31, 2012 and 3.75% to 5.32% at December 31, 2011.

(2) Weighted average remaining years until maturity as of December 31, 2012 and 2011, respectively.

Schedule Of Aggregate Principal Payments Of Mortgages

The following table summarizes the scheduled aggregate principal repayments subsequent to September 30, 2013 (amounts in thousands):

Year	Total
October 1, 2013 - December 31, 2013	$	47
2014		189
2015		13,767
2016		16,820
2017		169,768
Thereafter		69,300
Total	$	269,891

The following table summarizes the scheduled aggregate principal repayments subsequent to December 31, 2012 (amounts in thousands):

Year	Total
2013	$	74
2014		189
2015		13,767
2016		16,820
2017		164,968
Thereafter		69,300
Total	$	265,118

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Related Party Transactions and Arrangements (Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				9 Months Ended				12 Months Ended
	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012		Dec. 31, 2011
Operation Fees and Reimbursements [Member]
Related Party Transaction [Line Items]
Payable	$ 23				$ 23				$ 382		$ 37
Incurred [Member] | Operation Fees and Reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	3,970		10,095		28,511		22,103		34,804		2,311
Forgiven [Member] | Operation Fees and Reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	3,739		528		6,908		1,969		3,512		289
Nonrecurring Fees [Member] | Acquisition and Related Expenses [Member]
Related Party Transaction [Line Items]
Payable	0	[1]			0	[1]			364	[1]	37
Nonrecurring Fees [Member] | Financing fees and related cost reimbursements [Member]
Related Party Transaction [Line Items]
Payable	0				0				0		0
Nonrecurring Fees [Member] | Other Expense Reimbursements [Member]
Related Party Transaction [Line Items]
Payable	0				0				18		0
Nonrecurring Fees [Member] | Incurred [Member] | Acquisition and Related Expenses [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	86	[1]	4,529	[1]	3,190	[1]	9,712	[1]	27,138		1,692
Nonrecurring Fees [Member] | Incurred [Member] | Financing fees and related cost reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0		1,424		7,500		2,683		3,350		182
Nonrecurring Fees [Member] | Incurred [Member] | Other Expense Reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	42		3,614		8,359		7,527		592		148
Nonrecurring Fees [Member] | Forgiven [Member] | Acquisition and Related Expenses [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0	[1]	0	[1]	0	[1]	0	[1]	0		0
Nonrecurring Fees [Member] | Forgiven [Member] | Financing fees and related cost reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0		0		0		0		0		0
Nonrecurring Fees [Member] | Forgiven [Member] | Other Expense Reimbursements [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0		0		0		0		0		0
Recurring Fees [Member] | Base Management Fees [Member]
Related Party Transaction [Line Items]
Payable	0	[2]			0	[2]			0	[2]	0
Recurring Fees [Member] | Incentive Fees [Member]
Related Party Transaction [Line Items]
Payable	23				23				0		0
Recurring Fees [Member] | Property Management Fees [Member]
Related Party Transaction [Line Items]
Payable	0	[2]			0	[2]			0	[2]	0
Recurring Fees [Member] | Incurred [Member] | Base Management Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	3,739	[2]	278	[2]	8,393	[2]	1,725	[2]	2,035		274
Recurring Fees [Member] | Incurred [Member] | Incentive Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	103		0		270		0		771		0
Recurring Fees [Member] | Incurred [Member] | Property Management Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0	[2]	250	[2]	799	[2]	456	[2]	918		15
Recurring Fees [Member] | Forgiven [Member] | Base Management Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	3,739	[2]	278	[2]	6,109	[2]	1,513	[2]	1,823		274
Recurring Fees [Member] | Forgiven [Member] | Incentive Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	0		0		0		0		771		0
Recurring Fees [Member] | Forgiven [Member] | Property Management Fees [Member]
Related Party Transaction [Line Items]
Related party operation fees and reimbursements	$ 0	[2]	$ 250	[2]	$ 799	[2]	$ 456	[2]	$ 918		$ 15

[1] In conjunction with the ARCT III Merger, the payment of acquisition fees was terminated, however for properties that were in ARCP's or ARCT III's pipeline at the ARCT III Merger date, the fees were paid as the Manager had sourced and negotiated the purchase price prior to the ARCT III Merger.

[2] The amounts incurred and paid were recognized in merger and other transaction related costs during the nine months ended September 30, 2013 as they relate to the ARCT III Merger.

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Preferred and Common Stock (Details) (USD $)	0 Months Ended							1 Months Ended	0 Months Ended	1 Months Ended	0 Months Ended	1 Months Ended		2 Months Ended	3 Months Ended		7 Months Ended		9 Months Ended			12 Months Ended		28 Months Ended			0 Months Ended					0 Months Ended					9 Months Ended		4 Months Ended	9 Months Ended		3 Months Ended	9 Months Ended			1 Months Ended	9 Months Ended	12 Months Ended										9 Months Ended
	Oct. 24, 2013	Aug. 05, 2013	May 28, 2013	Mar. 17, 2013	Nov. 29, 2012	Sep. 30, 2012	Nov. 07, 2011	Jul. 09, 2012	Sep. 07, 2011	Jun. 27, 2012	Mar. 16, 2012	Feb. 27, 2012	Dec. 31, 2010	Nov. 02, 2011	Sep. 30, 2013	Mar. 31, 2013	Jan. 29, 2013	Jun. 18, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 07, 2011	Dec. 31, 2012	Dec. 31, 2011	Mar. 31, 2013	Jul. 02, 2013	Aug. 01, 2012	May 31, 2012 Series A Preferred Stock [Member]	Sep. 30, 2013 Series A Preferred Stock [Member]	Dec. 31, 2012 Series A Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]	Sep. 30, 2013 Common Stock [Member]	Jul. 24, 2012 Series B Preferred Stock [Member]	Sep. 30, 2013 Series B Preferred Stock [Member]	Dec. 31, 2012 Series B Preferred Stock [Member]	Dec. 31, 2011 Series B Preferred Stock [Member]	Dec. 31, 2012 Restricted Common Stock [Member]	Sep. 30, 2013 Follow on Offering [Member]	Jan. 28, 2013 Follow on Offering [Member]	Apr. 30, 2013 At the Market Offering [Member]	Sep. 30, 2013 At the Market Offering [Member]	Sep. 30, 2013 Private Placement [Member]	Sep. 30, 2013 ARCP [Member]	Sep. 30, 2013 ARCP [Member]	Feb. 28, 2013 ARCT III [Member]	Feb. 28, 2013 Common Stock [Member] Option One [Member] ARCP Merger [Member]	Dec. 31, 2010 Common Stock [Member]	Sep. 30, 2013 Common Stock [Member]	Dec. 31, 2012 Common Stock [Member]	Dec. 31, 2011 Common Stock [Member]	Mar. 31, 2013 Common Stock [Member]	Jan. 29, 2013 Common Stock [Member]	Jul. 09, 2012 Common Stock [Member]	Jun. 18, 2012 Common Stock [Member]	Nov. 07, 2011 Common Stock [Member]	Nov. 02, 2011 Common Stock [Member]	Sep. 07, 2011 Common Stock [Member]	Feb. 28, 2013 Common Stock [Member] Option One [Member] ARCT III [Member]	Sep. 30, 2013 Shares Issued under the universal shelf registration Common Stock [Member]
Class of Stock [Line Items]
Convertible preferred stock, outstanding															0				0			828,472						545,000	545,454	0			283,000	283,018	0
Shares converted into common stock		1,157
Conversion of stock, value		$ 0
Maximum Amount of Offering from Universal Shelf Registration Statement																						500,000,000				500,000,000														60,000,000
Shares issued (in shares)																											545,454					283,018							553,000							20,000	32,036,221	159,396,558	16,929,184									2,100,000
Common stock, shares authorized															750,000,000				750,000,000			240,000,000	240,000,000		750,000,000
Common stock, issued															185,448,022	13,015,534			185,448,022			179,167,112	17,162,016	13,015,534							32,036,221							2,070,000		553.3					140,700,000					61,000	2,070,000	487,500	3,250,000	74,979	1,497,924	5,574,131	140,700,000
Proceeds from issuances of common stock							800,000	46,000,000					0	15,800,000		800,000	26,700,000	30,300,000	490,577,000	1,653,988,000	67,400,000	1,658,776,000	122,993,000	146,400,000													26,700,000		8,900,000	8,900,000	455,000,000		490,600,000
Dividends declared, in dollars per share	$ 1.00		$ 0.94	$ 0.9100	$ 0.9000	$ 0.8950			$ 0.8750	$ 0.8900	$ 0.8850	$ 0.8800			$ 0.910
Stock Repurchase Program, Authorized Amount																			250,000,000
Stock Repurchased During Period, Shares																																										600,000					28,315,016	181,479
Stock Repurchased During Period, Price Per Share																			$ 13.06
Common stock repurchases																			$ 357,917,000			$ 1,874,000	$ 25,000																			$ 7,500,000					$ 283,000	$ 2,000
Percentage of Total Outstanding Shares																																												16.50%
Business Acquisition, Share Price																																												$ 12.00
Shares Based on Exchange Ratio																																												27,700,000
Common Stock Outstanding After Share Exchange																																				300,000								140,700,000

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Share-Based Compensation

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Note 12 - Share-Based Compensation

Equity Plan

The Company has adopted the American Realty Capital Properties, Inc. Equity Plan (the "Equity Plan"), which provides for the grant of stock options, restricted shares of common stock, restricted stock units, dividend equivalent rights and other equity-based awards to the Manager, non-executive directors, officers and other employees and independent contractors, including employees or directors of the Manager and its affiliates who are providing services to the Company.

The Company authorized and reserved a total number of shares equal to 10.0% of the total number of issued and outstanding shares of common stock (on a fully diluted basis assuming the redemption of all OP Units for shares of common stock) to be issued at any time under the Equity Plan for equity incentive awards excluding an initial grant of 167,400 shares to the Manager in connection with the IPO, all of which vested during the nine months ended September 30, 2013. All such awards of shares will vest ratably on a quarterly or annual basis over a three-year period beginning on the first anniversary of the date of grant and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as dividends are paid to the stockholders.

Director Stock Plan

The Company has adopted the American Realty Capital Properties, Inc. Non-Executive Director Stock Plan (the "Director Stock Plan"), which provides for the grant of restricted shares of common stock to each of the Company's independent directors, each of whom is a non-executive director. Awards of restricted stock will vest ratably over a five -year period following the first anniversary of the date of grant in increments of 20.0% per annum, subject to the director's continued service on the board of directors, and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as distributions are paid to the stockholders. At September 30, 2013, a total of 99,000 shares of common stock are reserved for issuance under the Director Stock Plan.

The fair value of restricted common stock awards under the Equity Plan and Director Stock Plan is determined on the grant date using the closing stock price on NASDAQ that day. The fair value of restricted common stock awarded to the Manager under the Equity Plan is updated at the end of each quarter based on quarter end closing stock price through the final vesting date.

ARCT III Restricted Share Plan

ARCT III had an employee and director incentive restricted share plan (the "RSP"), which provided for the automatic grant of 3,000 restricted shares of common stock to each of its independent directors, without any further action by ARCT III's board of directors or its stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder's meeting thereafter. Restricted stock issued to independent directors vested over a five-year period following the first anniversary of the date of grant in increments of 20.0% per annum. The RSP provided ARCT III with the ability to grant awards of restricted shares to its directors, officers and employees (if ARCT III ever had employees), employees of ARCT III's Advisor and its affiliates, employees of entities that provided services to ARCT III, directors of the ARCT III Advisor or of entities that provided services to ARCT III, certain consultants to ARCT III and the ARCT III Advisor and its affiliates or to entities that provided services to ARCT III.

Immediately prior to the effective time of the ARCT III Merger, each then-outstanding share of ARCT III restricted stock fully vested. All shares of ARCT III common stock then-outstanding as a result of the full vesting of shares of ARCT III restricted stock, and the satisfaction of any applicable withholding taxes, had the right to receive a number of shares of the Company's common stock based on the ARCT III Exchange Ratio.

The following tables detail the restricted shares activity within the Equity Plan, Director Stock Plan and RSP during the nine months ended September 30, 2013:

Restricted Share Awards

	Equity Plan				RSP & Director Stock Plan
	Number of Restricted Common Shares		Weighted-Average Issue Price		Number of Restricted Common Shares		Weighted- Average Issue Price
Awarded December 31, 2012		259,909	$	11.84		30,300	$	10.68
Granted		625,000		14.30		18,000		14.58
Forfeited		-		-		-		-
Awarded September 30, 2013		884,909	$	13.57		48,300	$	12.13

Unvested Restricted Shares

	Equity Plan						RSP & Director Stock Plan
	Number of Restricted Common Shares			Weighted-Average Issue Price			Number of Restricted Common Shares			Weighted- Average Issue Price
Unvested, December 31, 2012		186,403		$	11.62			27,930		$	10.58
Granted		625,000			14.30			18,000			14.58
Vested		(186,403	)		(11.62	)		(27,930	)		(10.58	)
Forfeited		-			-			-			-
Unvested, September 30, 2013		625,000		$	14.30			18,000		$	14.58

For the three months ended September 30, 2013 and 2012, compensation expense for restricted shares was $1.1 million and $0.4 million, respectively. For the nine months ended September 30, 2013 and 2012, compensation expense for restricted shares was $1.7 million and $0.7 million, respectively. Compensation expense of $2.2 million for the accelerated vesting of restricted shares in conjunction with the ARCT III Merger was recorded as merger and other transaction related costs, during the nine months ended September 30, 2013.

Multi-Year Performance Plan

Upon consummation of the ARCT III Merger, the Company entered into the 2013 Advisor Multi-Year Outperformance Agreement (the "OPP") with the Manager, whereby the Manager will be able to potentially earn compensation upon the attainment of stockholder value creation targets.

Under the OPP, the manager was granted 8,241,101 long term incentive plan units ("LTIP Units") of the OP, which will be earned or forfeited based on the Company's total return to stockholders (including both share price appreciation and common stock distributions) ("Total Return"), for the three year period consisting of:

• Absolute Component:  4.0% of any excess Total Return attained above an absolute hurdle of 7.0% for each annual measurement period, non-compounded, 14.0% for the interim measurement period and 21.0% for the full performance period; and

• Relative Component:  4.0% of any excess Total Return attained above the Total Return for the performance period of a peer group comprised of the following companies: CapLease, Inc.; EPR Properties; Getty Realty Corporation; Lexington Realty Trust; National Retail Properties, Inc.; and Realty Income Corporation.

The award will be funded ("OPP Pool") up to a maximum award opportunity equal to 5% of the Company's equity market capitalization at the ARCT III Merger date of $2.1 billion (the "OPP Cap"). Awards under the OPP are dependent on achieving an annual hurdle that commenced December 11, 2012, an interim (two-year) hurdle and then the aforementioned three -year hurdle ending on December 31, 2015.

In order to further ensure that the interests of the Manager are aligned with the Company's investors, the Relative Component is subject to a ratable sliding scale factor as follows:

• 100.0% will be earned if the Company attains a median Total Return of at least 6.0% for each annual measurement period, non-compounded, at least 12% for the interim measurement period, and at least 18.0% for the full performance period;

• 50.0% will be earned if the Company attains a median Total Return of at least 0.0% for each measurement period;

• 0.0% will be earned if the Company attains a median Total Return of less than 0.0% for each measurement period; and

• A percentage from 50.0% to 100.0% calculated by linear interpolation will be earned if the Company's median Total Return is between 0.0% and the percentage set for each measurement period.

For each year during the performance period a portion of the OPP Cap equal to a maximum of up to 1.25% of the Company's equity market capitalization of $2.1 billion will be "locked-in" based upon the attainment of the performance hurdles set forth above for each annual measurement period. In addition, a portion of the OPP Cap equal to a maximum of up to 3.0% of the Company's equity market capitalization will be "locked-in" based upon the attainment of the performance hurdles set forth above for the interim measurement period, which if achieved, will supersede and negate any prior "locked-in" portion based upon annual performance through December 31, 2013 and 2014 (i.e., a maximum award opportunity equal to a maximum of up to 3.0% of the Company's equity market capitalization may be "locked-in" through December 31, 2014). Since certain awards under the OPP plan are dependent on the comparison of the Company's current market capitalization to the the Company's market capitalization at the inception of plan, the issuance of additional common shares by the Company may result in higher awards.

Following the performance period, the Absolute Component and the Relative Component will be calculated separately and then added together to determine the aggregate award earned under the OPP, which will be the lesser of the sum of the two components and the OPP Cap. The OPP Pool will be used to determine the number of LTIP units that vest. Any unvested LTIP units will be immediately forfeited on December 31, 2015. At September 30, 2013, 100% of the OPP Pool has been allocated.

The Manager will be entitled to convert 33.3% of the LTIP units earned into OP Units on each of December 31, 2015, 2016 and 2017 and within 30 days following such date. In addition, the OPP provides for accelerated earning and vesting of LTIP Units and redemption of vested LTIP Units for cash if the Manager is terminated or if the Company experiences a change in control. The Manager will be entitled to receive a tax gross-up in the event that any amounts paid to it under the OPP constitute "parachute payments" as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the "Code").

The fair value of the LTIP Units granted is measured at each reporting date and is being amortized over the performance period. During the three and nine months ended September 30, 2013, the Company has recorded expense of $6.1 million and $9.8 million, respectively, for the OPP.

Note 12 - Share-Based Compensation

Equity Plan

The Company has adopted the American Realty Capital Properties, Inc. Equity Plan (the "Equity Plan"), which provides for the grant of stock options, restricted shares of common stock, restricted stock units, dividend equivalent rights and other equity-based awards to the Manager, non-executive directors, officers and other employees and independent contractors, including employees or directors of the Manager and its affiliates who are providing services to the Company.

The Company authorized and reserved a total number of shares equal to 10.0% of the total number of issued and outstanding shares of common stock (on a fully diluted basis assuming the redemption of all OP Units for shares of common stock) to be issued at any time under the Equity Plan for equity incentive awards excluding an initial grant of 167,400 shares to the Manager in connection with the IPO. All such awards of shares will vest ratably on a quarterly or annual basis over a three-year period beginning on the first anniversary of the date of grant and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as dividends are paid to the stockholders.

In February 2013, the Company granted 325,000 restricted shares of common stock to the Manager and certain employees. These shares did not vest upon the consummation of the Merger but will vest ratably over a three-year period and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as dividends are paid to the stockholders.

Director Stock Plan

The Company has adopted the American Realty Capital Properties, Inc. Non-Executive Director Stock Plan (the "Director Stock Plan"), which provides for the grant of restricted shares of common stock to each of the Company's three independent directors, each of whom is a non-executive director. Awards of restricted stock will vest ratably over a five-year period following the first anniversary of the date of grant in increments of 20.0% per annum, subject to the director's continued service on the board of directors, and shall provide for "distribution equivalents" with respect to this restricted stock, whether or not vested, at the same time and in the same amounts as distributions are paid to the stockholders. At December 31, 2012, a total of 99,000 shares of common stock are reserved for issuance under the Director Stock Plan.

The fair value of restricted common stock awards under the Equity Plan and Director Stock Plan is determined on the grant date using the closing stock price on NASDAQ that day. The fair value of restricted common stock under the Equity Plan and Director Stock Plan is updated at the end of each quarter based on the quarter end closing stock price through the final vesting date.

Restricted Share Plan

ARCT III had an employee and director incentive restricted share plan (the "RSP"), which provided for the automatic grant of 3,000 restricted shares of common stock to each of its independent directors, without any further action by ARCT III's board of directors or its stockholders, on the date of initial election to the board of directors and on the date of each annual stockholder's meeting thereafter. Restricted stock issued to independent directors vested over a five-year period following the first anniversary of the date of grant in increments of 20.0% per annum. The RSP provided ARCT III with the ability to grant awards of restricted shares to its directors, officers and employees (if ARCT III ever had employees), employees of ARCT III's Advisor and its affiliates, employees of entities that provided services to ARCT III, directors of the ARCT III Advisor or of entities that provided services to ARCT III, certain consultants to ARCT III and the ARCT III Advisor and its affiliates or to entities that provided services to ARCT III.

The following tables detail the restricted shares activity within the Equity Plan, Director Stock Plan and RSP during the years ended December 31, 2012 and 2011:

Restricted Share Awards

	Equity Plan					Director Stock Plan
	Number of Restricted Common Shares			Weighted-Average Issue Price		Number of Restricted Common Shares			Weighted- Average Issue Price
Awarded, January 1, 2011		-		$	-		-		$	-
Granted		167,400			12.50		14,700			11.50
Awarded December 31, 2011		167,400			12.50		14,700			11.50
Granted		93,683			10.65		23,250			10.45
Forfeited		(1,174	)		10.65		(7,650	)		11.54
Awarded December 31, 2012		259,909		$	11.84		30,300		$	10.68

Unvested Restricted Shares

	Equity Plan					RPS & Director Stock Plan
	Number of Restricted Common Shares			Weighted- Average Issue Price		Number of Restricted Common Shares			Weighted- Average Issue Price
Unvested, January 1, 2011		-		$	-		-		$	-
Granted		167,400			12.50		14,700			11.50
Vested		(13,950	)		12.50		-			-
Unvested, December 31, 2011		153,450			12.50		14,700			11.50
Granted		93,683			10.65		23,250			10.45
Vested		(59,556	)		12.42		(2,370	)		11.88
Forfeited		(1,174	)		10.65		(7,650	)		11.54
Unvested, December 31, 2012		186,403		$	11.62		27,930		$	10.58

In connection with the Merger, each share of restricted stock outstanding as of immediately prior to the effective date of the Merger became fully vested.

For the years ended December 31, 2012 and 2011, compensation expense for restricted shares was $1.2 million and $0.2 million, respectively. There was $0.1 million compensation expense for restricted shares for the year ended December 31, 2010.

Stock Option Plan

ARCT III had a stock option plan (the "Stock Option Plan") which authorized the grant of nonqualified stock options to its independent directors, officers, advisors, consultants and other personnel, subject to the absolute discretion of its board of directors and the applicable limitations of the Stock Option Plan. The exercise price for all stock options granted under the Stock Option Plan were fixed at $10.00 per share until the ARCT III IPO terminated, and thereafter the exercise price for stock options granted to the independent directors were equal to the fair market value of a share on the last business day preceding the annual meeting of stockholders. A total of 0.5 million shares had been authorized and reserved for issuance under the Stock Option Plan. As of December 31, 2012 and 2011, no stock options were issued under the Stock Option Plan. The Stock Option Plan was terminated in February 2013.

Multi-Year Performance Plan

Upon consummation of the Merger, the Company entered into the 2013 Advisor Multi-Year Outperformance Agreement (the "OPP") with the Manager, whereby the Manager will be able to potentially earn compensation upon the attainment of stockholder value creation targets.

Under the OPP, the manager was granted 8,241,101 long term incentive plan units ("LTIP Units") of the OP, which will be earned or forfeited based on the Company's total return to stockholders (including both share price appreciation and common stock distributions) ("Total Return"), for the three year period consisting of:

• Absolute Component:  4.0% of any excess Total Return attained above an absolute hurdle of 7.0% for each annual measurement period, non-compounded, 14.0% for the interim measurement period and 21.0% for the full performance period; and

• Relative Component:  4.0% of any excess Total Return attained above the Total Return for the performance period of a peer group comprised of the following companies: CapLease, Inc.; EPR Properties; Getty Realty Corporation; Lexington Realty Trust; National Retail Properties, Inc.; and Realty Income Corporation.

The award will be funded ("OPP Pool") up to a maximum award opportunity equal to 5% of the Company's equity market capitalization at the Merger date of $2.1 billion (the "OPP Cap"). Awards under the OPP are dependent on achieving an annual hurdle, that commenced December 11, 2012, an interim (two-year) hurdle and then the aforementioned three-year hurdle ending on December 31, 2015.

In order to further ensure that the interests of the Manager are aligned with the Company's investors, the Relative Component is subject to a ratable sliding scale factor as follows:

• 100.0% will be earned if the Company attains a median Total Return of at least 6.0% for each annual measurement period, non-compounded, at least 12.0% for the interim measurement period, and at least 18.0% for the full performance period;

• 50.0% will be earned if the Company attains a median Total Return of at least 0.0% for each measurement period;

• 0.0% will be earned if the Company attains a median Total Return of less than 0.0% for each measurement period; and

• A percentage from 50.0% to 100.0% calculated by linear interpolation will be earned if the Company's median Total Return is between 0.0% and th percentage set for each measurement period.

For each year during the performance period a portion of the OPP Cap equal to a maximum of up to 1.25% of the Company's equity market capitalization of $2.1 billion will be "locked-in" based upon the attainment of the performance hurdles set forth above for each annual measurement period. In addition, a portion of the OPP Cap equal to a maximum of up to 3.0% of the Company's equity market capitalization will be "locked-in" based upon the attainment of the performance hurdles set forth above for the interim measurement period, which if achieved, will supersede and negate any prior "locked-in" portion based upon annual performance through December 31, 2013 and 2014 (i.e., a maximum award opportunity equal to a maximum of up to 3.0% of the Company's equity market capitalization may be "locked-in" through December 31. 2014).

Following the performance period, the Absolute Component and the Relative Component will be calculated separately and then added together to determine the aggregate award earned under the OPP, which will be the lesser of the sum of the two components and the OPP Cap. The OPP Pool will be used to determine the number of LTIP units that vest. Any unvested LTIP units will be immediately forfeited on December 31, 2015. At March 31, 2013, 100% of the pool has been allocated.

The Manager will be entitled to convert 33.3% of the LTIP units earned into OP Units on each of December 31, 2015, 2016 and 2017 and within 30 days following such date. In addition, the OPP provides for accelerated earning and vesting of LTIP Units and redemption of vested LTIP Units for cash if the Manager is terminated or if the Company experiences a change in control. The Manager will be entitled to receive a tax gross-up in the event that any amounts paid to it under the OPP constitute "parachute payments" as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the "Code").

The fair value of the LTIP Units granted are being amortized over the performance period. The Company did not incur expenses for the OPP during the years ended December 31, 2012 and 2011, respectively.

Other Share-Based Compensation

ARCT III was permitted to issue common stock in lieu of cash to pay fees earned by its directors, at the respective director's election. There were no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. The following table reflects the shares of ARCT III common stock issued to directors in lieu of cash compensation (dollar amounts in thousands):

	Year Ended December 31,
	2012		2011
Shares issued in lieu of cash		3,457		3,562.5
Value of shares issued in lieu of cash	$	33	$	34

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Credit Facilities

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Line of Credit Facility [Abstract]

Credit Facilities

Note 9 - Credit Facility

Senior Corporate Credit Facility

The Company and the OP are parties to a credit facility with Wells Fargo, National Association (the "Credit Facility"), as administrative agent and other lenders party thereto.

At September 30, 2013, the Credit Facility has commitments of $1.7 billion. The Credit Facility has an accordion feature, which, if exercised in full, would allow the Company to increase borrowings under the Credit Facility to $2.5 billion, subject to additional lender commitments, borrowing base availability and other conditions.

At September 30, 2013, the Credit Facility contains an $940.0 million term loan facility and a $760.0 million revolving credit facility. Loans under the Credit Facility are priced at the applicable rate (at the Company's election, either a floating interest rate based on one month LIBOR, determined on a daily basis) plus 1.60% to 2.20%, or a prime-based interest rate, based upon the Company's current leverage. To the extent that the Company receives an investment grade credit rating as determined by a major credit rating agency, at the Company's election, advances under the revolving credit facility will be priced at their applicable rate plus 0.90% to 1.75% and term loans will be priced at a floating interest rate of LIBOR plus 1.15% to 2.00%, based upon the Company's then current investment grade credit rating. The Company may also make fixed rate borrowings under the Credit Facility.

The Credit Facility provides for monthly interest payments. In the event of a default, each lender has the right to terminate its obligations under the Credit Facility, and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company has guaranteed the obligations under the Credit Facility. The revolving credit facility will terminate on February 14, 2017, unless extended, to which the term loan facility will terminate on February 14, 2018. The Company may prepay borrowings under the Credit Facility and the Company incurs an unused fee of 0.15% to 0.25% per annum on the unused amount depending on the unused balance as a percentage of the total facility and the type of funding. The Credit Facility also requires the Company to maintain certain property available for collateral as a condition to funding.

As of September 30, 2013, there was $600.0 million outstanding on the Credit Facility, of which $85.0 million bore a floating interest rate of 1.93%, and for $515.0 million of the Credit Facility's floating base interest rate is fixed through the use of derivative instruments used to hedge interest rate volatility. Including the spread, which can vary based on our leverage, interest on this portion was 2.78% at September 30, 2013. At September 30, 2013, there was up to $1.9 billion available to the Company for future borrowings, subject to additional lender commitments and borrowing availability.

The Credit Facility requires restrictions on corporate guarantees as well as the maintenance of financial covenants including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) and the maintenance of a minimum net worth. At September 30, 2013, the Company was in compliance with the debt covenants under the Credit Facility.

Repayment of Previous Credit Facilities

On February 28, 2013, the Company repaid all of the outstanding borrowings under its previous senior secured revolving credit facility in the amount of $124.6 million, and the credit agreement for such facility was terminated. The average interest rate on the borrowings during the period the balance was outstanding was 3.11%. On February 14, 2013, simultaneous with entering into the Credit Facility, the Company terminated its secured credit facility agreement, which had been unused.

Note 5 - Credit Facilities

On September 7, 2011, the Company obtained a senior secured revolving credit facility with RBS of up to $150.0 million subject to providing qualified collateral, among other conditions. The proceeds of advances made under the credit agreement may have been used to finance the acquisition of net leased, investment or non-investment grade leased properties and for other permitted corporate purposes. Up to $10.0 million of the facility was available for letters of credit. The credit agreement had a term of 36 months and a maturity date of September 7, 2014, and could have been be extended at the Company's option for an additional 24 months.

Any advance made under the credit facility bore floating interest at per annum rates equal to the one-month London Interbank Offered Rate ("LIBOR") plus 2.15% to 2.90% depending on the Company's loan to value ratio as specified in the credit agreement. In the event of a default, the lender had the right to terminate its obligations under the credit agreement, including the funding of future advances, and to accelerate the payment on any unpaid principal amounts outstanding. The credit facility required a fee of 0.15% on the unused balance if amounts outstanding under the facility are 50% or more of the total facility amount and 0.25% on the unused balance if amounts outstanding under the facility were less than 50% of the total facility amount.

As of December 31, 2012, there was $124.6 million outstanding on this facility, which bore an interest rate of 3.11%, collateralized by 114 properties. At December 31, 2012, there was $20.4 million available to the Company for future borrowings. At December 31, 2011, there was $42.4 million outstanding on this facility with an interest rate of 3.17%, collateralized by 59 properties. In conjunction with the Merger the credit facility was repaid in full and terminated.

On July 20, 2012, ARCT III, through ARCT III OP, entered into a senior revolving credit facility (the "Senior Facility") in the amount of $100.0 million with RBS. The Senior Facility had a term of 36 months and a maturity date in July 2015, and could have been extended for an additional 12 months. ARCT III had the option, based upon its corporate leverage, to draw loans under the Senior Facility priced at either: (a) LIBOR, plus an applicable margin that ranges from 2.10% to 3.50%; or (b) the Base Rate, plus an applicable margin that ranges from 2.50% to 3.00%. Base Rate is defined in the Senior Facility agreement as the greater of (i) the fluctuating annual rate of interest announced from time to time by RBS as its "prime rate" or (ii) 1.0% above the federal funds effective rate. The Senior Facility included an unused fee per annum of 0.25% and 0.15%, if the unused balance of the Senior Facility exceeded or was less than 50% of the available facility, respectively.

The Senior Facility provided for monthly interest payments, with all principal outstanding being due on the maturity date. Borrowings under the Senior Facility were permitted to be prepaid from time to time and at any time, in whole or in part, without premium or penalty, subject to reimbursement of certain costs and expenses. In the event of a default, each lender had the right to terminate its obligations under the Senior Facility, and to accelerate the payment on any unpaid principal amount of all outstanding loans. ARCT III had guaranteed the obligations under the Senior Facility. The Senior Facility required ARCT III to meet certain financial covenants, including the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. As of December 31, 2012, ARCT III was in compliance with the debt covenants under the Senior Facility agreement.

As of December 31, 2012, ARCT III had no outstanding borrowings under the Senior Facility. ARCT III incurred $0.1 million in unused fees during the year ended December 31, 2012.

On February 14, 2013, simultaneous with ARCT III entering into the New Credit Facility, ARCT III terminated the Senior Facility agreement with RBS.

The Company's sources of financing generally require financial covenants, as well as restrictions on corporate guarantees, the maintenance of certain financial ratios (such as specified debt to equity and debt service coverage ratios) as well as the maintenance of a minimum net worth. At December 31, 2012 and 2011, the Company was in compliance with the debt covenants under the RBS Facility agreement.

New Credit Facility

On February14, 2013, ARCT III, entered into the New Credit Facility with Wells Fargo Bank, National Association, as administrative agent, RBS and Regions Bank, as syndication agents, and Capital One, N.A. and JP Morgan Chase Bank, N.A., as documentation agents. Since that date the facility has been augmented to increase the commitments of certain lenders and add Bank of America N.A., Barclays Bank PLC, TD Bank N.A., U.S. Bank N.A., Union Bank N.A., UBS AG, Comerica Bank and First Tennessee Bank, as lenders.

These additional commitments increased the facility to $1.45 billion. The New Credit Facility has an accordion feature, which if exercised in full, the aggregate commitments (comprised of revolving, term loan and delayed draw commitments) under the credit agreement would be $2.5 billion, subject to borrowing base availability.

The New Credit Facility contains a $810.0 million term loan facility and a $640.0 million revolving credit facility. Loans under the New Credit Facility are priced at a floating interest rate of LIBOR plus 1.60% to 2.20%, based upon the Company's current leverage. To the extent that the Company receives an investment grade credit rating as determined by a major credit rating agency, at the Company's election, advances under the New Credit Facility will be priced at their applicable rate plus 0.90% to 1.75% and term loans will be priced at a floating interest rate of LIBOR plus 1.15% to 2.00%, based upon the Company's then current investment grade credit rating. The Company may also make fixed rate borrowings under the New Credit Facility.

The New Credit Facility provides for monthly interest payments. In the event of a default, each lender has the right to terminate its obligations under the credit facility, and to accelerate the payment on any unpaid principal amount of all outstanding loans. The Company has guaranteed the obligations under the credit facility. The revolving credit facility will terminate on February 14, 2017, unless extended, to which the term loan facility will terminate on February 14, 2018. The Company may prepay borrowings under the New Credit Facility and, to the extent that borrowings are unused under the revolving credit facility and the term loan facility, the Company incurs an unused fee of 0.15% to 0.25% per annum on the unused amount depending on the unused balance as a percentage of the total facility and the type of funding. The New Credit Facility also requires the Company to maintain certain property available for collateral as a condition to funding.

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Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted)(Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended											9 Months Ended				12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013		Dec. 31, 2012	Sep. 30, 2012		Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Sep. 30, 2013		Sep. 30, 2012		Dec. 31, 2012	Dec. 31, 2011
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Net loss from continuing operations attributable to stockholders	$ 0	$ (59,154)		$ (14,351)	$ (12,687)		$ (6,993)	$ (4,706)	$ (2,647)	$ (1,122)	$ (82)	$ (32)	$ (248,840)		$ (24,310)		$ (38,700)	$ (3,883)
Less: dividends declared on preferred shares		(53)		(158)	(140)		(70)	0					(368)		(210)		(368)	0
Net loss from continuing operations attributable to common stockholders		(59,207)		(14,509)	(12,827)		(7,063)	(4,706)					(249,208)		(24,520)		(36,068)	(3,883)
Net income (loss) from discontinued operations attributable to common stockholders	0	91		(259)	(3)		(77)	(322)	(808)	(8)	0	0	164		(478)		(699)	(816)
Net loss attributable to common stockholders		$ (59,116)		$ (14,768)	$ (12,830)		$ (7,140)	$ (5,028)	$ (3,455)	$ (1,130)	$ (82)	$ (32)	$ (249,044)		$ (24,998)		$ (39,767)	$ (4,699)
Weighted average common shares outstanding		1,884,807,219	[1]	178,480,894	138,323,562	[1]	68,312,582	23,609,509	12,553,958	2,166,783	20,000	20,000	166,970,341	[1]	76,950,157	[1]	102,513,974	3,720,351
Basic and diluted net loss per share from continuing operations attributable to common stockholders	$ 0.00	$ (0.32)		$ (0.08)	$ (0.09)		$ (0.10)	$ (0.20)	$ (0.28)	$ (0.52)	$ (4.10)	$ (1.60)	$ (1.49)		$ (0.31)		$ (0.38)	$ (1.04)
Basic and diluted net loss per share from discontinued operations attributable to stockholders		$ 0.00			$ 0.00								$ 0.00		$ (0.01)		$ (0.01)	$ (0.22)
Basic and diluted net loss per share attributable to common stockholders	$ 0.00	$ (0.32)		$ (0.08)	$ (0.09)		$ (0.10)	$ (0.21)	$ (0.22)	$ (0.52)	$ (4.10)	$ (1.60)	$ (1.49)		$ (0.32)		$ (0.39)	$ (1.26)
Antidilutive securtities excluded from computation of earnings per share													9,051,661				1,621,349
Restricted Unvested Common Stock [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share													643,000				214,433
Class B Units [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share																	137,771
Series A Preferred Stock [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share																	545,454
Series B Preferred Stock [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share																	283,018
Preferred Class C [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share													28,398,213
Convertible Notes [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securtities excluded from computation of earnings per share													18,539,550
Common Stock [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Stock Repurchased During Period, Shares													28,315,016				181,479
Common Stock [Member] | ARCT III Shares Repurchased [Member]
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items]
Stock Repurchased During Period, Shares													27,700,000

[1] Weighted average shares for the nine months ended September 30, 2013 are adjusted on a pro forma basis as if the purchase of 27.7 million shares of ARCT III common stock for cash, purchased in conjunction with the ARCT III Merger, had been completed at the beginning of the period. Weighted average shares for the nine months ended September 30, 2013, excluding this pro forma adjustment, were 172,798,170 and net loss per share was $1.44 per share, basic and diluted.

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Economic Dependency

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Economic Dependency [Abstract]

Economic Dependency

Note 15 - Economic Dependency

Under various agreements, the Company has engaged or may engage the Manager and its affiliates to provide certain services that are essential to the Company, including asset management services and supervision of the management and leasing of properties owned by the Company, the sale of shares of the Company's common stock, as well as other administrative responsibilities for the Company including information technology, legal services and investor relations.

As a result of these relationships, the Company is dependent upon the Manager, the Sponsor and their affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would be required to find alternative providers of these services. As a result of the ARCT III Merger, the Company internalized certain accounting and property acquisition services previously performed by the Manager and its affiliates and has announced that it will internalize executive management and certain other administrative functions after the ARCT IV and Cole Mergers are completed. The Company may from time to time engage the Manager for legal, information technology or other support services for which it will pay a fee.

Note 15 - Economic Dependency

Under various agreements, the Company has engaged or will engage the Manager 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, as well as other administrative responsibilities for the Company including accounting services and investor relations.

As a result of these relationships, the Company is dependent upon the Manager, the Sponsor and their affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would be required to find alternative providers of these services. As a result of the Merger with ARCT III, the Company internalized certain accounting and property acquisition services previously performed by the Manager and its affiliates. The Company may from time to time engage the Manager for legal, information technology or other support services for which it will pay market rates.

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Commitments and Contingencies

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13 - Commitments and Contingencies

Contractual Lease Obligations

The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter for certain ground and office lease obligations (amounts in thousands):

	Future Minimum Base Rent Payments
October 1, 2013 - December 31, 2013	$	261
2014		731
2015		732
2016		733
2017		737
Thereafter		6,754
Total	$	9,948

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company, except as follows:

ARCT III Litigation Matters

Since the announcement of the ARCT III Merger Agreement on December 17, 2012, Randell Quaal filed a putative class action lawsuit filed on January 30, 2013 against the Company, the OP, ARCT III, ARCT III OP, the members of the board of directors of ARCT III and certain subsidiaries of the Company in the Supreme Court of the State of New York. The plaintiff alleges, among other things, that the board of ARCT III breached its fiduciary duties in connection with the transactions contemplated under the ARCT III Merger Agreement. In February 2013, the parties agreed to a memorandum of understanding regarding settlement of all claims asserted on behalf of the alleged class of ARCT III stockholders. In connection with the settlement contemplated by that memorandum of understanding, the class action and all claims asserted therein will be dismissed, subject to court approval. The proposed settlement terms required ARCT III to make certain additional disclosures related to the ARCT III Merger, which were included in a Current Report on Form 8-K filed by ARCT III with the SEC on February 21, 2013. The memorandum of understanding also added that the parties will enter into a stipulation of settlement, which will be subject to customary conditions, including confirmatory discovery and court approval following notice to ARCT III's stockholders. If the parties enter into a stipulation of settlement, a hearing will be scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance that the parties will ultimately enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual settlement will be under the same terms as those contemplated by the memorandum of understanding, therefore any losses that may be incurred to settle this matter are not determinable.

CapLease Litigation Matters

Since the announcement of the CapLease Merger Agreement on May 28, 2013, the following lawsuits have been filed:

CapLease, its directors, and its affiliates, CapLease's operating partnership and the general partner of the operating partnership, as well as the Company, the OP and a CapLease Merger related subsidiary, have been named as defendants in a putative class action lawsuit in connection with the proposed merger, styled Mizani v. CapLease, Inc., No. 651986/2013, in the Supreme Court of the State of New York, New York County. The complaint alleges, among other things, that the CapLease Merger Agreement was the product of breaches of fiduciary duty by CapLease's directors because the CapLease Merger does not provide for full and fair value for the CapLease's stockholders, the CapLease Merger was not the result of a competitive bidding process, the CapLease Merger Agreement contains coercive deal protection measures, and the CapLease Merger Agreement and the CapLease Merger were approved as a result of improper self-dealing by certain defendants who would receive certain alleged employment compensation benefits and continued employment pursuant to the CapLease Merger Agreement. The complaint also alleges that CapLease, the Company, the OP and a CapLease Merger related subsidiary, aided and abetted the directors' alleged breaches of fiduciary duty. The plaintiff seeks, among other things, to enjoin completion of the CapLease Merger. The Company believes that the allegations of the complaint are without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.

Separately, CapLease, its directors and its affiliates, the CapLease's operating partnership and the general partner of the CapLease's operating partnership, as well as the Company, the OP and a CapLease Merger related subsidiary, have been named as defendants in a putative class action and derivative lawsuit in connection with the proposed merger, styled Tarver v. CapLease, Inc., No. 24C13004176, in the Circuit Court of the State of Maryland, Baltimore City. The complaint alleges, among other things, that the CapLease Merger Agreement was the product of breaches of fiduciary duty by CapLease's directors because the CapLease Merger does not provide for full and fair value for the CapLease's stockholders, the CapLease Merger Agreement contains coercive deal protection measures, the CapLease Merger was not the result of a competitive bidding process, and the CapLease Merger Agreement and the CapLease Merger were approved as a result of improper self-dealing. The complaint also alleges that CapLease, CapLease's operating partnership, the general partner of the CapLease's operating partnership, the Company, the OP and a CapLease Merger related subsidiary aided and abetted the directors' alleged breaches of fiduciary duty. The plaintiff seeks, among other things, to enjoin completion of the CapLease Merger. The Company believes that the allegations of the complaint are without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.

Separately, CapLease, its directors and its affiliates, the CapLease's operating partnership and the general partner of the CapLease's operating partnership, as well as the Company, the OP and a CapLease Merger related subsidiary, have been named as defendants in a putative class action and derivative lawsuit in connection with the proposed CapLease Merger, styled Carach v. CapLease, Inc., No. 651986/2013, in the Supreme Court of the State of New York, New York County. The complaint alleges, among other things, that the CapLease Merger Agreement was the product of breaches of fiduciary duty by the CapLease's directors because the CapLease Merger does not provide for full and fair value for the CapLease's stockholders, the CapLease directors failed to take steps to maximize the value of CapLease or properly value CapLease, failed to protect against various alleged conflicts of interest, and failed to fully disclose material information concerning the process that led to the CapLease Merger. The complaint also alleges that CapLease's operating partnership, the general partner of CapLease's operating partnership, the Company, the OP and a CapLease Merger related subsidiary aided and abetted the CapLease directors' alleged breaches of fiduciary duty. The plaintiff seeks, among other things, to enjoin completion of the CapLease Merger. The Company believes that the allegations of the complaint are without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.

Counsel who filed each of these three cases reached an agreement with each other as to who will serve as lead plaintiff and lead plaintiffs' counsel in the cases and where they will be prosecuted. Thus, on August 9, 2013, counsel in the Tarver Action filed a motion for stay in the Baltimore Court, information the court they had agreed to join and participate in the prosecution of the Mizani and Carach Actions in the New York Court. The defendants consented to the stay of the Tarver Action in Baltimore Court, and on September 5, 2013, Judge Pamela J. White issued an order granting to stay. Consequently, there has been no subsequent activity in the Baltimore Court in the Tarver Action. Also on August 9, 2013, all counsel involved in the Mizani and Carach Actions filed a joint stipulation in the New York Court, reflecting agreement among all parties in the Mizani and Carach Actions should be consolidated and setting out a schedule for early motion practice in response to the complaints filed. All defendants filed a motion to dismiss all claims on September 23, 2013. Plaintiffs' response to those motions is due on or before November 7, 2013. To date, no injunctive filings have been made by or on behalf of the plaintiffs. The Company believes that the allegations of the complaint are without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.

On October 8, 2013, John Poling filed a punitive class action lawsuit in the Circuit Court of Baltimore City against ARCP, ARC Operating Partnership, L.P., Safari Acquisition LLC, CapLease, CapLease LP, CFL OP General Partner, LLC and members of the CapLease, Inc. board of directions. The complaint alleges, that the merger agreement breaches terms of the CapLease' 8.375% Series B Cumulative Redeemable Preferred Stock and the terms of the 7.25% Series C Cumulative Redeemable Preferred Stock and is in violation of the Series B Articles Supplementary and the Series C Articles Supplementary. The complaint alleges breach of contract and breach of fiduciary duty. The plaintiff seeks, among other things, declaratory relief, damages and an injunction to halt the redemption of the Series B and Series C Preferred Stock. The Company believes that the allegations of the complaint are without merit and that it has substantial meritorious defenses to the claims set forth in the complaint.

Cole Litigation Matters

To date, five lawsuits have been filed in connection with the Cole Merger. The first, Wunsch v. Cole Real Estate Investments, Inc., et al ("Wunsch"), No. 13-CV-2186, is a putative class action that was filed on October 25, 2013 in the U.S. District Court for the District of Arizona. On October 30, 2013, October 31, 2013 and November 1, 2013, four other putative stockholder class action lawsuits were filed in the Circuit Court for Baltimore City, Maryland, captioned as: (i) Operman v. Cole Real Estate Investments, Inc., et al; (ii) Branham v. Cole Real Estate Investments, Inc., et al; (iii) Wilfong v. Cole Real Estate Investments, Inc., et al. and (iv) Polage v. Cole Real Estate Investments, Inc., et al. All of these lawsuits name the Company, Cole and Cole's board of directors as defendants; Wunsch, Branham, Wilfong and Polage also name Merger Sub as a defendant. All of the named plaintiffs claim to be Cole stockholders and purport to represent all holders of the Cole's stock. Each complaint generally alleges that the individual defendants breached fiduciary duties owed to plaintiff and the other public stockholders of Cole, and that certain entity defendants aided and abetted those breaches. In addition, the Operman lawsuit claims that the individual defendants breached their duty of candor to shareholders and the Branham and Polage lawsuits assert claims derivatively against the individual defendants for their alleged breach of fiduciary duties owed to Cole. The Polage lawsuit also asserts derivative claims for waste of corporate assets and unjust enrichment. Among other remedies, the complaints seek injunctive relief prohibiting the defendants from completing the proposed merger or, in the event that an injunction is not awarded, unspecified money damages, costs and attorneys' fees.

The Company believes that the lawsuits in connection with the Cole Merger are without merit and that it has substantial meritorious defenses to the claims set forth in the complaints.

The Company maintains directors and officers liability insurance, which the Company believes should provide coverage to the Company and its officers and directors for most or all of any costs, settlements or judgments resulting from the lawsuits.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition, in each case, that it believes will have a material adverse effect on the results of operations.

Note 13 - Commitments and Contingencies

Future Lease Payments

The Company entered into a ground lease agreement related to the acquisition of a Walgreens Pharmacy. The following table reflects the minimum base rental cash payments due from the Company over the next five years and thereafter under this arrangement (amounts in thousands):

	Future Minimum Base Rent Payments
2013	$	160
2014		160
2015		160
2016		160
2017		160
Thereafter		600
Total	$	1,400

Litigation

In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company, except as follows:

Since the announcement of the Merger Agreement on December 17, 2012, Randell Quaal filed a putative class action lawsuit filed on January 19, 2013 against the Company, the OP, ARCT III, ARCT III OP, the members of the board of directors of ARCT III and certain subsidiaries of the Company in the Supreme Court of the State of New York. The lawsuit alleges, among other things, that the board of ARCT III breached its fiduciary duties in connection with the transactions contemplated under the Merger Agreement. In February 2013, the parties agreed to a memorandum of understanding regarding settlement of all claims asserted on behalf of the alleged class of ARCT III stockholders. In connection with the settlement contemplated by that memorandum of understanding, the class action and all claims asserted therein will be dismissed, subject to court approval. The proposed settlement terms required ARCT III to make certain additional disclosures related to the Merger, which were included in a Current Report on Form 8-K filed by ARCT III with the SEC on February 21, 2013. The memorandum of understanding also added that the parties will enter into a stipulation of settlement, which will be subject to customary conditions, including confirmatory discovery and court approval following notice to ARCT III's stockholders. If the parties enter into a stipulation of settlement, a hearing will be scheduled at which the court will consider the fairness, reasonableness and adequacy of the settlement. There can be no assurance that the parties will ultimately enter into a stipulation of settlement, that the court will approve any proposed settlement, or that any eventual settlement will be under the same terms as those contemplated by the memorandum of understanding, therefore any losses that may be incurred to settle this matter are not determinable.

The Company maintains directors and officers liability insurance which the Company believes should provide coverage to the Company and its officers and directors for most or all of any costs, settlements or judgments resulting from the lawsuit.

Environmental Matters

In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. The Company has not been notified by any governmental authority of any non-compliance, liability or other claim, and is not aware of any other environmental condition, in each case, that it believes will have a material adverse effect on the results of operations.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2013
Entity Information [Line Items]
Entity Registrant Name	American Realty Capital Properties, Inc.
Entity Central Index Key	0001507385
Entity Filer Category	Large Accelerated Filer
Document Type	S-4
Document Period End Date	Sep. 30, 2013
Amendment Flag	false

XML

Related Party Transactions and Arrangements

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Note 14 - Related Party Transactions and Arrangements

Ownership by Affiliates

Certain affiliates of the Company have ownership in the Company through ownership of shares of the Company's common stock, shares of unvested restricted common stock and OP units. As of September 30, 2013 and December 31, 2012, 5.09% and 1.39%, respectively, of the total equity units issued by the Company were owned by affiliates.

Fees Paid in Connection with Common Stock Offerings

RCS served as the dealer manager of the ARCT III IPO. RCS received fees and compensation in connection with the sale of ARCT III's common stock in the ARCT III IPO. RCS received a selling commission of up to 7% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers in the ARCT III IPO. In addition, RCS received up to 3% of the gross proceeds from the sale of common stock, before reallowance to participating broker-dealers, as a dealer-manager fee in the ARCT III IPO. RCS was permitted to reallow its dealer-manager fee to such participating broker-dealers, based on such factors as the volume of shares sold by respective participating broker-dealers and marketing support incurred as compared to those of other participating broker-dealers. RCS has also received compensation for various other Company equity transactions.

The following table details the results of such activities related to RCS, which are recorded as offering costs on the consolidated statement of changes in equity (amounts in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,				Payable as of
	2013		2012		2013		2012		September 30, 2013		December 31, 2012
Total commissions and fees paid to RCS	$	-	$	80,739	$	-	$	160,530	$	-	$	-

The Company reimbursed the Manager, the ARCT III Advisor and RCS for services relating to the ARCT III IPO, and other significant transactions such as the ARCT III Merger, for which the Manager provided assistance. The following table details the results of such activities related to offering and other significant transactions costs reimbursed to the Manager, the ARCT III Advisor and RCS (amounts in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,				Payable as of
	2013		2012			2013		2012		September 30, 2013		December 31, 2012
Offering expense and other significant transactions reimbursements	$	814	$	(3,473	)	$	1,951	$	16,808	$	-	$	-

Fees Paid in Connection with the Operations of the Company

Each of the Company and ARCT III paid the Manager and the ARCT III Advisor, as applicable, an acquisition fee equal to 1.0% of the contract purchase price (including assumed indebtedness) of each property the Company or ARCT III, as applicable, acquired. The acquisition fee was payable in cash at the closing of each acquisition. In conjunction with the ARCT III Merger, it was agreed that these fees would no longer be paid to either party. Acquisition fees are recorded in Acquisition related costs in the consolidated statements of operations and comprehensive loss.

Each of the Company and ARCT III paid the Manager and the ARCT III Advisor, as applicable, a financing fee equal to 0.75% of the amount available under any secured mortgage financing or refinancing that the Company or ARCT III, as applicable, obtained and used for the acquisition of properties that was arranged by the Manager or ARCT III Advisor, as applicable. The financing coordination fee was payable in cash at the closing of each financing. In conjunction with the ARCT III Merger, it was agreed that these fees would no longer be paid to either party.

The Company paid the Manager an annual base management fee equal to 0.50% per annum of the average unadjusted book value of the Company's real estate assets, calculated and payable monthly in advance. The Company's Manager waived such portion of its management fee in excess of certain net income thresholds related to the Company's operations. The management fee is payable in cash. In conjunction with the ARCT III Merger, the base management fee was reduced to 0.40% per annum for the unadjusted book value of assets over $3.0 billion. Management fees, if accrued are recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss.

Until July 1, 2012, ARCT III paid the ARCT III Advisor an asset management fee of 0.75% per annum of the cost of its assets (cost includes the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but excludes acquisition fees) plus costs and expenses incurred by the ARCT III Advisor in providing asset management services; provided, however, that the asset management fee was reduced by any amounts payable to ARCT III's property manager as an oversight fee, such that the aggregate of the asset management fee and the oversight fee did not exceed 0.75% per annum of the cost of ARCT III's assets plus costs and expenses incurred by the ARCT III Advisor in providing asset management services.

Prior to July 1, 2012, this fee was payable in monthly installments at the discretion of ARCT III's board of directors in cash, common stock or restricted stock grants, or any combination thereof. Asset management fees, if accrued are recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss. The Company also pays fees for transfer agent services to an affiliate, American National Stock Transfer, LLC.

Effective July 1, 2012, the payment of asset management fees in monthly installments in cash, shares or restricted stock grants, or any combination thereof to the ARCT III Advisor was eliminated. Instead, ARCT III issued (subject to periodic approval by its board of directors) to the ARCT III Advisor performance-based restricted partnership units of the ARCT III OP designated as "Class B units," which were intended to be profits interests and to vest, and no longer be subject to forfeiture, at such time as: (x) the value of the ARCT III OP's assets plus all distributions made equal or exceeded the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); and (y) a liquidity event has occurred.

The ARCT III Advisor received distributions on unvested Class B units equal to the distribution rate received on ARCT III common stock. Such distributions on issued Class B units were included as general and administrative expense in the consolidated statement of operations until the performance condition is considered probable to occur. 145,022 Class B units were approved by ARCT III's board of directors as of December 31, 2012. During January and February 2013, ARCT III's board of directors approved, and ARCT III issued, 603,599 Class B units to the ARCT III Advisor for its asset management services provided. As of December 31, 2012, ARCT III did not consider achievement of the performance condition to be probable as the shareholder vote for the ARCT III Merger, which would allow vesting of these Class B Units, was not completed. The performance condition related to these Class B units was satisfied upon the completion of the ARCT III Merger and expense of $9.9 million was recorded at that time. The Class B units then converted to ARCT III OP units which converted to 711,190 OP Units after the application of the ARCT III Exchange Ratio. These expenses were recorded in merger and other transaction related in the consolidated statements of operations and comprehensive loss.

The Company may be required to pay the Manager a quarterly incentive fee, calculated based on 20 percent of the excess Company annualized core earnings (as defined in the management agreement with the Manager) over the weighted average number of shares multiplied by the weighted average price per share of common stock. One half of each quarterly installment of the incentive fee will be payable in shares of common stock. The remainder of the incentive fee will be payable in cash. No such incentive fees have been incurred or paid to the Manager since inception.

ARCT III paid an affiliate of the Sponsor, unless it contracted with a third party, a property management fee of up to 2% of gross revenues from ARCT III's stand-alone single-tenant net leased properties and 4% of gross revenues from its multi-tenant properties, plus, in each case, market-based leasing commissions applicable to the geographic location of the property. ARCT III also reimbursed the affiliate for property level expenses. If ARCT III contracted directly with third parties for such services, it paid them customary market fees and paid the affiliated property manager, an oversight fee of up to 1.0% of the gross revenues of the property managed. Property management fees are recorded in Operating fees to affiliates in the consolidated statements of operations and comprehensive loss.

In order to facilitate the smooth transition of property management services following the consummation of the ARCT III Merger, the Company, the OP and the Sponsor agreed that the Property Management and Leasing Agreement will be extended for a 60 day period following the consummation of the ARCT III Merger for which the Company paid the Sponsor $2.3 million. These fees were recorded in merger and transaction related in the consolidated statements of operations and comprehensive loss.

The Company is required to reimburse the Manager for all out-of-pocket costs actually incurred by the Manager, including without limitation, legal fees and expenses, due diligence fees and expenses, other third party fees and expenses, costs of appraisals, travel expenses, nonrefundable option payments and deposits on properties not acquired, accounting fees and expenses, title insurance premiums and other closing costs, personnel costs and miscellaneous expenses relating to the selection, acquisition and due diligence of properties. The Company 's reimbursement obligation is not subject to any dollar limitation. Expenses will be reimbursed in cash on a monthly basis following the end of each month. However, the Company will not reimburse the Manager for the salaries and other compensation of its personnel. Reimbursements are recorded based on the related activity to which the expense relates.

The following table details amounts incurred by the Company or ARCT III and contractually due to the Sponsor, ARCT III Advisor or the Manager and forgiven in connection with the operations related services described above (amounts in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,								Payable as of
	2013				2012				2013				2012				September 30, 2013		December 31, 2012
	Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven		Incurred		Forgiven
One-time fees:
Acquisition fees(1)	$	86	$	-	$	4,529	$	-	$	3,190	$	-	$	9,712	$	-	$	-	$	364
Financing fees and related cost reimbursements		-		-		1,424		-		7,500		-		2,683		-		-		-
Other expense reimbursements		42		-		3,614		-		8,359		-		7,527		-		-		18
On-going fees:
Base management fees(2)		3,739		3,739		278		278		8,393		6,109		1,725		1,513		-		-
Transfer agent fees		103		-		-		-		270		-		-		-		23		-
Property management and leasing fees(2)		-		-		250		250		799		799		456		456		-		-
Total operational fees and reimbursements	$	3,970	$	3,739	$	10,095	$	528	$	28,511	$	6,908	$	22,103	$	1,969	$	23	$	382

(1) In conjunction with the ARCT III Merger, the payment of acquisition fees was terminated, however for properties that were in ARCP's or ARCT III's pipeline at the ARCT III Merger date, the fees were paid as the Manager had sourced and negotiated the purchase price prior to the ARCT III Merger.

(2) The amounts incurred and paid were recognized in merger and other transaction related costs during the nine months ended September 30, 2013 as they relate to the ARCT III Merger.

Under an administrative support agreement between the Company and the Sponsor, the Sponsor was to pay or reimburse the Company for its general administrative expenses, including, without limitation, legal fees, audit fees, board of directors fees, insurance, marketing and investor relation fees, until September 6, 2012, which was one year after the closing of the IPO, to the extent the amount of certain net earnings from operations thresholds, as specified in the agreement, were less than the amount of the distributions declared by the Company during this one-year period. To the extent these amounts were paid by the Sponsor, they would not be subject to reimbursement by the Company. These costs are presented net in the accompanying consolidated statements of operations and comprehensive loss. In addition, the ARCT III Advisor provided expense support to ARCT III from time to time to assist ARCT III with operating cash flow, distributions or other operational purposes.

The following table details general and administrative expenses absorbed by the Sponsor and the ARCT III Advisor and paid to the Company or ARCT III during the three and nine months ended September 30, 2013 (amounts in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,				Receivable as of
	2013		2012		2013		2012		September 30, 2013		December 31, 2012
General and administrative expenses absorbed	$	-	$	-	$	-	$	234	$	-	$	-

Fees Paid in Connection with the ARCT III Merger

ARCT III entered into agreements with affiliates to provide legal and other support services prior to the ARCT III Merger totaling $1.3 million.

The Company entered into an Asset Purchase and Sale Agreement with the Sponsor pursuant to which, concurrently with the closing of the ARCT III Merger and in connection with the internalization by the Company of certain property level management and accounting activities, the Sponsor sold to the OP certain furniture, fixtures, equipment and other assets used by the Sponsor in connection with managing the property level business and operations and accounting functions of the Company and the OP, and included at the cost of such assets, for an aggregate price of $5.8 million, which includes the reimbursement of certain costs and expenses incurred by the Sponsor in connection with the ARCT III Merger.

On February 28, 2013, the OP entered into a Contribution and Exchange Agreement (the "Contribution and Exchange Agreement") with the ARCT III OP and American Realty Capital III Special Limited Partnership, LLC, the holder of the special limited partner interest in the ARCT III OP (the "Special Limited Partner"). The Special Limited Partner was entitled to receive certain distributions from the ARCT III OP, including the subordinated distribution of net sales proceeds resulting from an "investment liquidity event" (as defined in the agreement of limited partnership of the ARCT III OP). The ARCT III Merger constituted an "investment liquidity event," as a result of which the Special Limited Partner, in connection with management's successful attainment of the 6.0% performance hurdle and the return to ARCT III's stockholders of approximately $557.3 million in addition to their initial investment, was entitled to receive a subordinated distribution of net sales proceeds from the ARCT III OP equal to approximately $98.4 million. Pursuant to the Contribution and Exchange Agreement, the Special Limited Partner contributed its interest in the ARCT III OP, inclusive of the subordinated distribution proceeds received, to the ARCT III OP in exchange for 7.6 million ARCT III OP Units. Upon consummation of the ARCT III Merger, these ARCT III OP Units were immediately converted to 7.3 million OP Units after application of the ARCT III Exchange Ratio. In conjunction with the ARCT III Merger Agreement, the Special Limited Partner agreed to a minimum one year holding period for these OP units before converting them to shares of Company common stock.

Fees paid in connection with the ARCT III Merger were recorded in merger and transaction related in the consolidated statements of operations and comprehensive loss. Additionally, the Company acquired fixed assets with a carryover basis of $1.0 million from the Advisor; the consideration paid to the Advisor in excess of the carryover basis was approximately $3.0 million.

Investment by Affiliate

In connection with the ARCT III Merger, the Special Limited Partner invested $0.8 million in exchange for 56,797 OP Units after the effect of the ARCT III Exchange Ratio.

Investment in Affiliate

During the nine months ended September 30, 2013, the Company invested $10.0 million in an affiliated real estate fund, American Real Estate Income Fund, which invests primarily in equity securities of other publicly traded REITS. The fair value of the investment at September 30, 2013 was $9.5 million.

Note 14 - Related Party Transactions and Arrangements

Common Stock Ownership

Certain affiliates of the Company have purchased shares of the Company's common stock. As of December 31, 2012 and 2011, certain affiliates owned 1.39% and 12.22%, respectively, of the Company's common stock outstanding on a fully diluted basis, including OP Units and Class B Units in the OP.

The Company has issued restricted stock to the Manager and non-executive directors in conjunction with a share-based compensation plan. See Note 12 - Share-Based Compensation.

Fees Paid in Connection with Common Stock Offerings

RCS received selling commissions of 6% of the gross offering proceeds from the sale of the Company's common stock in the IPO. In addition, RCS received dealer manager fees of 2% of the gross offering proceeds before reallowance to participating broker-dealers in the IPO. RCS was permitted to re-allow all or a portion of its dealer manager fee to participating broker-dealers.

In addition, RCS, served as the dealer manager of the ARCT III IPO. RCS received fees and compensation in connection with the sale of ARCT III's common stock in the ARCT III IPO. RCS received a selling commission of up to 7% of gross offering proceeds before reallowance of commissions earned by participating broker-dealers in the ARCT III IPO. In addition, RCS received up to 3% of the gross proceeds from the sale of common stock, before reallowance to participating broker-dealers, as a dealer-manager fee in the ARCT III IPO. RCS was permitted to reallow its dealer-manager fee to such participating broker-dealers, based on such factors as the volume of shares sold by respective participating broker-dealers and marketing support incurred as compared to those of other participating broker-dealers.

The following table details the results of such activities related to RCS, which are recorded as offering costs on the consolidated statement of changes in equity (amounts in thousands):

	Year Ended December 31,				Payable as of December 31,
	2012		2011		2012		2011
Total commissions and fees paid to RCS	$	160,614	$	11,434	$	-	$	92

The Company reimbursed the Manager, the ARCT III Advisor and RCS for services relating to the IPO, the Company's follow-on offerings and the ARCT III IPO, as applicable. The following table details the results of such activities related to offering costs reimbursed to the Manager, the ARCT III Advisor and RCS (amounts in thousands):

	Year Ended December 31,				Payable as of December 31,
	2012		2011		2012		2011
Offering expense reimbursements	$	16,264	$	4,383	$	-	$	220

Fees Paid in Connection With the Operations of the Company

Each of the Company and ARCT III paid the Manager and the ARCT III Advisor, as applicable, an acquisition fee equal to 1.0% of the contract purchase price (including assumed indebtedness) of each property the Company or ARCT III, as applicable, acquired. The acquisition fee was payable in cash at the closing of each acquisition. In conjunction with the Merger, it was agreed that these fees would no longer be paid to either party. Acquisition fees are recorded in acquisition related costs in the consolidated statement of operations.

Each of the Company and ARCT III paid the Manager and the ARCT III Advisor, as applicable, a financing fee equal to 0.75% of the amount available under any secured mortgage financing or refinancing that the Company or ARCT III, as applicable, obtained and used for the acquisition of properties that was arranged by the Manager or ARCT III Advisor, as applicable. The financing coordination fee was payable in cash at the closing of each financing. In conjunction with the Merger, it was agreed that these fees would no longer be paid to either party. Financing fees are recorded in deferred costs on the consolidated balance sheet and amortized to interest expense over the term of the related debt.

The Company paid the Manager an annual base management fee equal to 0.50% per annum of the average unadjusted book value of the Company's real estate assets, calculated and payable monthly in advance, provided that the full amount of the distributions declared by the Company for the six immediately preceding months was equal to or greater than certain net income thresholds related to our operations. Our Manager waived such portion of its management fee in excess of such thresholds. The management fee is payable in cash. In conjunction with the Merger, the base management fee was reduced to 0.40% per annum for the unadjusted book value of assets over $3.0 billion. Management fees, if accrued are recorded in Operating fees to affiliates in the consolidated statements of operations.

Until July 1, 2012, ARCT III paid the ARCT III Advisor an asset management fee of 0.75% per annum of the cost of its assets (cost includes the purchase price, acquisition expenses, capital expenditures and other customarily capitalized costs, but excludes acquisition fees) plus costs and expenses incurred by the ARCT III Advisor in providing asset management services; provided, however, that the asset management fee was reduced by any amounts payable to ARCT III's property manager as an oversight fee, such that the aggregate of the asset management fee and the oversight fee did not exceed 0.75% per annum of the cost of ARCT III's assets plus costs and expenses incurred by the ARCT III Advisor in providing asset management services. Prior to July 1, 2012, this fee was payable in monthly installments at the discretion of ARCT III's board of directors in cash, common stock or restricted stock grants, or any combination thereof. Asset management fees, if accrued are recorded in Operating fees to affiliates in the consolidated statements of operations.

Effective July 1, 2012, the payment of asset management fees in monthly installments in cash, shares or restricted stock grants, or any combination thereof to the ARCT III Advisor was eliminated. Instead, ARCT III issued (subject to periodic approval by its board of directors) to the ARCT III Advisor performance-based restricted partnership units of the ARCT III OP designated as "Class B units," which were intended to be profits interests and to vest, and no longer be subject to forfeiture, at such time as: (x) the value of the ARCT III OP's assets plus all distributions made equal or exceeded the total amount of capital contributed by investors plus a 6.0% cumulative, pre-tax, non-compounded annual return thereon (the "economic hurdle"); and among other potential events, a liquidity event accrued.

The ARCT III Advisor received distributions on unvested Class B units equal to the distribution rate received on ARCT III common stock. Such distributions on issued Class B units were included as general and administrative expense in the consolidated statement of operations until the performance condition is considered probable to occur. 145,022 Class B units were approved by ARCT III's board of directors as of December 31, 2012. During January and February 2013, ARCT III's board of directors approved, and ARCT III issued, 603,599 Class B units to the ARCT III Advisor for its asset management services provided. As of December 31, 2012, ARCT III did not consider achievement of the performance condition to be probable as the shareholder vote for the Merger, which would allow vesting of these Class B Units, was not completed. The performance condition related to these Class B units was satisfied upon the completion of the Merger and expense of $9.9 million was recorded at that time. The Class B units then converted to ARCT III OP units which converted to 711,190 OP Units after the application of the Exchange Ratio. These expenses were recorded in Merger and other transaction related in the consolidated statement of operations.

The Company may be required to pay the Manager a quarterly incentive fee, calculated based on 20 percent of the excess Company annualized core earnings (as defined in the management agreement with the Manager) over the weighted average number of shares multiplied by the weighted average price per share of common stock. One half of each quarterly installment of the incentive fee will be payable in shares of common stock. The remainder of the incentive fee will be payable in cash. No such incentive fees have been paid to the Manager since inception.

ARCT III paid an affiliate of the Sponsor, unless it contracted with a third party, a property management fee of up to 2% of gross revenues from ARCT III's stand-alone single-tenant net leased properties and 4% of gross revenues from its multi-tenant properties, plus, in each case, market-based leasing commissions applicable to the geographic location of the property. ARCT III also reimbursed the affiliate for property level expenses. If ARCT III contracted directly with third parties for such services, it paid them customary market fees and paid the affiliated property manager, an oversight fee of up to 1.0% of the gross revenues of the property managed. Property management fees are recorded in Operating fees to affiliates in the consolidated statement of operations.

In order to facilitate the smooth transition of property management services following the consummation of the Merger, the Company, the OP and the Sponsor agreed that the Property Management and Leasing Agreement will be extended for a 60 day period following the consummation of the Merger for which the Company paid the Sponsor $2.3 million. These fees were recorded in Merger and transaction related in the consolidated statement of operations.

The Company is required to reimburse the Manager for all out-of-pocket costs actually incurred by the Manager, including without limitation, legal fees and expenses, due diligence fees and expenses, other third party fees and expenses, costs of appraisals, travel expenses, nonrefundable option payments and deposits on properties not acquired, accounting fees and expenses, title insurance premiums and other closing costs, personnel costs and miscellaneous expenses relating to the selection, acquisition and due diligence of properties. The Company's reimbursement obligation is not subject to any dollar limitation. Expenses will be reimbursed in cash on a monthly basis following the end of each month. However, the Company will not reimburse the Manager for the salaries and other compensation of its personnel. Reimbursements are recorded based on the related activity to which the expense relates.

The following table details amounts incurred by the Company or ARCT III and contractually due to the Sponsor, ARCT III Advisor or the Manager and forgiven in connection with the operations related services described above (amounts in thousands):

	Year Ended December 31,								Payable as of December 31,
	2012				2011
	Incurred		Forgiven		Incurred		Forgiven		2012		2011
One-time fees:
Acquisition fees and related cost reimbursements	$	27,138	$	-	$	1,692	$	-	$	364	$	37
Financing fees and related cost reimbursements		3,350		-		182		-		-		-
Other expense reimbursements		592		-		148		-		18		-
On-going fees:
Base management fees		2,035		1,823		274		274		-		-
Incentive fees		771		771		-		-		-		-
Property management and leasing fees		918		918		15		15		-		-
Total operational fees and reimbursements	$	34,804	$	3,512	$	2,311	$	289	$	382	$	37

Under an administrative support agreement between the Company and the Sponsor, the Sponsor was to pay or reimburse the Company for its general administrative expenses, including, without limitation, legal fees, audit fees, board of directors fees, insurance, marketing and investor relation fees, until September 6, 2012, which was one year after the closing of the IPO, to the extent the amount of certain net earnings from operations thresholds, as specified in the agreement, were less than the amount of the distributions declared by the Company during this one-year period. To the extent these amounts were paid by the Sponsor, they would not be subject to reimbursement by the Company. These costs are presented net in the accompanying consolidated statements of operations and comprehensive loss.

The ARCT III Advisor provided expense support to ARCT III from time to time to assist ARCT III with operating cash flow, distributions or other operational purposes.

The following table details general and administrative expenses absorbed by the Sponsor and the ARCT III Advisor and paid to the Company during the years ended December 31, 2012 and 2011 (amounts in thousands):

	Year Ended December 31,				Receivable as of December 31,
	2012		2011		2012		2011
General and administrative expenses absorbed	$	234	$	20	$	-	$	-

Fees Paid in Connection with the Merger

ARCT III entered into an agreement with an affiliate, ARC Advisory Services, LLC, to provide legal support services up to the date that ARCT III entered into the Merger Agreement and until the Merger was consummated for $0.5 million. This amount was fully accrued as of December 31, 2012 and was paid in February 2013 in conjunction with the consummation of the merger.

ARCT III entered into an agreement with an affiliate, ARC Advisory Services, LLC, to provide support services including legal, accounting, marketing, human resources and information technology, among other services, until the earlier of the Merger closing date or one year for $0.2 million pursuant to this contract. This amount was fully accrued as of December 31, 2012 and was paid in February 2013 in conjunction with the consummation of the merger.

ARCT III entered into an agreement with affiliates RCS and ARC Advisory Services, LLC, to provide financial advisory and information agent services related to the proxy solicitation seeking approval of the Merger by ARCT III's stockholders which services are expected to be provided in the fourth and first quarters of 2012 and 2013, respectively. Services to be provided include facilitation of the preparation, distribution and accumulation and tabulation of proxy materials, stockholder, analyst and financial advisor communications and consultation on materials and communications made to the public and regulatory agencies regarding the Merger. ARCT III has agreed to pay $0.6 million pursuant to this contract. As of December 31, 2012, ARCT III has incurred $0.1 million of expenses pursuant to this agreement, which includes amounts for services provided as of that date.

The Company entered into an Asset Purchase and Sale Agreement with the Sponsor pursuant to which, concurrently with the closing of the Merger and in connection with the internalization by the Company of certain property level management and accounting activities, the Sponsor sold to the OP certain furniture, fixtures, equipment and other assets used by the Sponsor in connection with managing the property level business and operations and accounting functions of the Company and the OP, and included at the cost of such assets, for an aggregate price of $5.8 million, which includes the reimbursement of certain costs and expenses incurred by the Sponsor in connection with the Merger.

On February 28, 2013, the OP entered into a Contribution and Exchange Agreement (the "Contribution and Exchange Agreement") with the ARCT III OP and American Realty Capital III Special Limited Partnership, LLC, the holder of the special limited partner interest in the ARCT III OP (the "Special Limited Partner"). The Special Limited Partner was entitled to receive certain distributions from the ARCT III OP, including the subordinated distribution of net sales proceeds resulting from an "investment liquidity event" (as defined in the agreement of limited partnership of the ARCT III OP). The Merger constituted an "investment liquidity event," as a result of which the Special Limited Partner, in connection with management's successful attainment of the 6.0% performance hurdle and the return to ARCT III's stockholders of approximately $557.3 million in addition to their initial investment, was entitled to receive a subordinated distribution of net sales proceeds from the ARCT III OP equal to approximately $98.4 million. Pursuant to the Contribution and Exchange Agreement, the Special Limited Partner contributed its interest in the ARCT III OP, inclusive of the subordinated distribution proceeds received, to the ARCT III OP in exchange for 7.6 million ARCT III OP Units. Upon consummation of the Merger, these ARCT III OP Units were immediately converted to 7.3 million OP Units after application of the Exchange Ratio. In conjunction with the Merger Agreement, the Special Limited Partner agreed to a minimum one year holding period for these OP units before converting them to shares of Company common stock.

Investment by Affiliate

In connection with the Merger agreement, the Special Limited Partner invested $0.8 million in exchange for 56,797 ARCP OP Units after the effect of the exchange ratio.

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Share-Based Compensation (Multi-Year Performance Plan) (Details) (USD $)	1 Months Ended	9 Months Ended		12 Months Ended		3 Months Ended	9 Months Ended	0 Months Ended														9 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011	Sep. 30, 2013 2013 Advisor Multi-Year Outperformance Agreement (OPP) [Member]	Sep. 30, 2013 2013 Advisor Multi-Year Outperformance Agreement (OPP) [Member]	Feb. 28, 2013 Performance Shares [Member]	Feb. 28, 2013 Excess Return, Above Threshold [Member] Absolute Component [Member]	Feb. 28, 2013 Excess Return, Above Threshold [Member] Absolute Component [Member] Performance Shares [Member]	Feb. 28, 2013 Excess Return, Above Peer Group [Member] Relative Component [Member] Performance Shares [Member]	Feb. 28, 2013 Cumulative Return, Above Threshold [Member] Relative Component [Member] Maximum [Member]	Feb. 28, 2013 Cumulative Return, Above Threshold [Member] Relative Component [Member] Minimum [Member]	Feb. 28, 2013 Cumulative Return, Above Threshold [Member] Relative Component [Member] Performance Shares [Member]	Feb. 28, 2013 Cumulative Return, Above Threshold [Member] Relative Component, Linear Interpolation [Member] Maximum [Member]	Feb. 28, 2013 Cumulative Return, Above Threshold [Member] Relative Component, Linear Interpolation [Member] Minimum [Member]	Feb. 28, 2013 Cumulative Return, Equal to Threshold [Member] Relative Component [Member] Maximum [Member]	Feb. 28, 2013 Cumulative Return, Equal to Threshold [Member] Relative Component [Member] Performance Shares [Member]	Feb. 28, 2013 Cumulative Return, Below Threshold [Member] Relative Component [Member] Performance Shares [Member]	Feb. 28, 2013 Equity Market Capitalization [Member] Performance Shares [Member]	Feb. 28, 2013 Stockholder's Book Equity [Member] Performance Shares [Member]	Sep. 30, 2013 OP Units [Member] Outperformance Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Market Capitalization Threshold										4.00%	4.00%									5.00%
Share-based Compensation Arrangement by Share-based Payment Award, Shares Awarded as a Percentage of Maximum														100.00%				50.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Return Percentage Threshold									14.00%	7.00%		18.00%	6.00%		6.00%	0.00%	12.00%
Equity Capitalization, Including Portion Attributable to Noncontrolling Interest, Aggregate Gross Capitalization																					$ 2,100,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Performance Period								3 years
Share-based Compensation Arrangement by Share-based Payment Award, Shares Authorized, Percentage of Benchmark, Shares Committed Annually																					1.25%
Share-based Compensation Arrangement by Share-based Payment Award, Shares Authorized, Percentage of Benchmark, Potential Share Commitment																					3.00%
Share-based Compensation Arrangement by Share-based Payment Award, Shares Allocated as a Percentage of Shares Authorized								100.00%
Percentage of Shares Allowable to be Converted, Percentage																						33.30%
Equity-based compensation	$ 0	$ 13,895,000	$ 837,000	$ 1,224,000	$ 225,000	$ 6,100,000	$ 9,800,000

XML

Share-Based Compensation (Details) (USD $) In Thousands, except Share data, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2010	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in lieu of cash for services, in shares						3,457	3,563
Value of shares issued in lieu of cash						$ 33	$ 34
Equity-based compensation		7,180	480	11,510	804
Equity-based compensation	0			13,895	837	1,224	225
2013 Advisor Multi-Year Outperformance Agreement (OPP) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation		6,100		9,800
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation	100	1,100	400	1,700	700	1,200	200
Restricted Stock [Member] | Compensation expense, accelerated vesting portion [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation		$ 2,200		$ 2,200
Restricted Stock [Member] | Equity Plan [Member] | Manager [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum authorized amount as a percentage of shares authorized				10.00%
Shares issued in lieu of cash for services, in shares				167,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				625,000
Restricted Stock [Member] | Director Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share vesting period				5 years
Restricted Common Stock [Member] | Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				625,000		93,683	167,400
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Automatic Grant		3,000		3,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number		884,909		884,909		259,909	167,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price		$ 13.57		$ 13.57		$ 11.84	$ 12.50
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 14.30		$ 10.65	$ 12.50
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				0		1,174
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price				$ 0.00		$ 10.65
Restricted Common Stock [Member] | Director Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				18,000		23,250	14,700
Number of shares authorized, in shares		20		20
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Automatic Grant		99,000		99,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 14.58		$ 10.45	$ 11.50
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				0		7,650
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price				$ 0.00		$ 11.54
Restricted Unvested Common Stock [Member] | Equity Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				625,000		93,683	167,400
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number		625,000		625,000		186,403	153,450
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price		$ 14.30		$ 14.30		$ 11.62	$ 12.50
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 14.30		$ 10.65	$ 12.50
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				(186,403)		(59,556)	(13,950)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 11.62		$ 12.42	$ 12.50
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				0		1,174
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price				$ 0.00		$ 10.65
Restricted Unvested Common Stock [Member] | Director Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				18,000		23,250	14,700
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 14.58		$ 10.45	$ 11.50
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				(27,930)		(2,370)	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value				$ 10.58		$ 11.88	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				0		7,650
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price				$ 0.00		$ 11.54
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity Incentive Plan, shares of common stock reserved for issuance						500,000