Related Party Transactions and Arrangements (Tables)

9 Months Ended

Sep. 30, 2014

The following table summarizes the related party fees and expenses incurred by the Company, ARCT III and ARCT IV by category and the aggregate amounts contained in such categories for the periods presented (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Related party transactions:
Expenses and capitalized costs:
Financing fees and reimbursements	$	—	$	—	$	—	$	13,796
Offering related costs		—		666		2,150		159,323
Acquisition related expenses		—		10,064		1,652		36,894
Merger and other non-routine transactions		—		2,298		137,778		109,233
Management fees to affiliates		—		—		13,888		12,493
General and administrative expenses		60		7,004		16,089		16,347
Indirect affiliate expenses		5,595		—		10,090		—
Cole Capital revenues:
Cole Capital offering related revenue		21,535		—		73,957		—
Cole Capital operating revenue		38,262		—		77,319		—

Total	$	65,452	$	20,032	$	332,923	$	348,086

Commissions, Fees and Expense Reimbursements [Member]

Schedule of Related Party Transactions

The Company, ARCT III and ARCT IV recorded commissions, fees and offering cost reimbursements as shown in the table below for services provided to the Company, ARCT III and ARCT IV, as applicable, by affiliates of the Former Manager during the periods indicated (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Offering related costs:
Commissions and fees	$	—	$	546	$	—	$	148,232
Offering costs and other reimbursements		—		120		2,150		11,091

Total	$	—	$	666	$	2,150	$	159,323

Commissions, Fees and Expense Reimbursements [Member] | Cole Merger [Member]

Schedule of Related Party Transactions

The Company recorded commissions, fees and expense reimbursements as shown in the table below for services provided to the Managed REITs (as described above) during the three months ended September 30, 2014 and the period from the Cole Acquisition Date to September 30, 2014 (in thousands). As the Company did not commence operations for Cole Capital until the Cole Acquisition Date, comparative financial data is not presented for the three and nine months ended September 30, 2013.


	Three Months Ended September 30, 2014
	CCPT IV ⁽¹⁾			CCPT V		CCIT			CCIT II		INAV		Total
Offering:
Selling commission revenue	$	—		$	5,988		(4	)	$	7,123	$	258	$	13,365
Selling commissions reallowance expense		—			5,988		(4	)		7,123		258		13,365
Dealer manager fee revenue		—			1,764		(1	)		2,167		175		4,105
Dealer manager fees reallowance expense		—			953		(1	)		1,055		12		2,019
Other expense reimbursement revenue		(47	)		1,766		—			2,176		170		4,065

(1)	Due to net cancellations during the quarter, related to shares sold prior to the fund closing on February 25, 2014.


	Period from the Cole Acquisition Date to September 30, 2014
	CCPT IV		CCPT V		CCIT			CCIT II		INAV		Total
Offering:
Selling commission revenue	$	29,113	$	7,335		(4	)	$	12,073	$	474	$	48,991
Selling commissions reallowance expense		29,113		7,335		(4	)		12,073		474		48,991
Dealer manager and distribution fee revenue		8,771		2,180		(1	)		3,653		363		14,966
Dealer manager fees reallowance expense		4,971		1,131		(1	)		1,776		20		7,897
Other expense reimbursement revenue		3,702		2,231		—			3,662		405		10,000

Investment In The Managed REITs [Member] | Cole Merger [Member]

Schedule of Related Party Transactions

The table below presents certain information related to the Company’s investments in the Managed REITs as of September 30, 2014 (carrying amount in thousands):


	September 30, 2014
Managed REIT	% of Outstanding Shares Owned			Carrying Amount of Investment
CCPT IV		0.01	%		134
CCPT V		2.40	%		2,096
CCIT		0.01	%		77
CCIT II		1.44	%		1,741
INAV		0.18	%		157

				$	4,205

Merger And Other Non-Routine Transactions [Member]

Schedule of Related Party Transactions

The table below shows fees and expenses attributable to each merger and other non-routine transaction during the nine months ended September 30, 2014 (in thousands). No related party transactions classified as merger and other non-routine transactions in the accompanying consolidated statements of operations were incurred during the three months ended September 30, 2014.


	Nine Months Ended September 30, 2014
	ARCT IV Merger		Internalization and Other		Cole Merger		Multi-tenant Spin Off		Total
Merger related costs:
Strategic advisory services	$	8,400	$	—	$	17,115	$	1,750	$	27,265
Personnel costs and other reimbursements		—		—		72		—		72
Other non-routine transactions:
Subordinated distribution fees		78,244		—		—		—		78,244
Furniture, fixtures and equipment		5,800		10,000		—		—		15,800

Other fees and expenses		—		—		2,900		—		2,900
Personnel costs and other reimbursements		417		—		1,728		—		2,145
Post-transaction support services		1,352		10,000		—		—		11,352

Total	$	94,213	$	20,000	$	21,815	$	1,750	$	137,778

The tables below shows fees and expenses attributable to each merger and other non-routine transaction during the three and nine months ended September 30, 2013 (in thousands):


	Three Months Ended September 30, 2013
	ARCT IV Merger		Cole Merger		Other		Total
Merger related costs:
Strategic advisory services	$	750	$	—	$	—	$	750
Personnel costs and other reimbursements		180		85		83		348
Other non-routine transactions:
Post-transaction support services		1,200		—		—		1,200

Total	$	2,130	$	85	$	83	$	2,298


	Nine Months Ended September 30, 2013
	ARCT III Merger		ARCT IV Merger		Cole Merger		Other		Total
Merger related costs:
Strategic advisory services	$	—	$	750	$	—	$	—	$	750
Legal fees and expenses		125		—		—		—		125
Personnel costs and other reimbursements		522		203		85		127		937
Other non-routine transactions:
Subordinated distribution fees		98,360		—		—		—		98,360
Furniture, fixtures and equipment		5,800		—		—		—		5,800

Legal fees and expenses		61		—		—		—		61
Post-transaction support services		2,000		1,200		—		—		3,200

Total	$	106,868	$	2,153	$	85	$	127	$	109,233

Management Fees To Affiliates [Member]

Schedule of Related Party Transactions

The Company, ARCT III and ARCT IV recorded fees and reimbursements as shown in the table below for services provided by the Former Manager and its affiliates related to the operations of the Company, ARCT III and ARCT IV during the periods indicated (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Management fees to affiliates:
Asset management fees	$	—	$	—	$	13,888	$	11,693
Property management fees		—		—		—		800

Total	$	—	$	—	$	13,888	$	12,493

General and Administrative Expense [Member]

Schedule of Related Party Transactions

The Company, ARCT III and ARCT IV recorded general and administrative expenses as shown in the table below for services provided by the Former Manager and its affiliates related to the operations of the Company, ARCT III and ARCT IV during the periods indicated (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
General and administrative expenses:
Advisory fees and reimbursements	$	60	$	866	$	2,015	$	4,533
Equity awards		—		6,138		14,074		11,814

Total	$	60	$	7,004	$	16,089	$	16,347

Indirect Affiliate Expenses [Member]

Schedule of Related Party Transactions

During 2014, the Company incurred fees and expenses payable to the Company’s affiliates or payable to a third party on behalf of the Company’s affiliates for amenities related to certain buildings, as explained below. No such fees or expenses were incurred during 2013. These expenses are depicted in the table below for the periods indicated (in thousands):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2014		2014
Indirect affiliate expenses:
Audrain building	$	4,769	$	8,691
ANST office build-out		114		449
New York (405 Park Ave) office		677		864
Dresher, PA office		24		60
North Carolina office		11		26

Total	$	5,595	$	10,090

Due To Affiliate [Member]

Schedule of Related Party Transactions

Due to affiliates, as reported in the accompanying consolidated balance sheets, is comprised of the following amounts discussed above (in thousands):


	September 30, 2014		December 31, 2013
	(as Restated)		(as Restated)
Due to affiliates:
Offering related costs	$	2,000	$	220
Merger and other non-routine transactions		—		38,645
General and administrative		63		59,600
Indirect affiliate costs		413		—
Managed REITs and other		281		—
Management fees to affiliates		—		4,969

Total	$	2,757	$	103,434

Fees and Expense Reimbursements [Member] | Cole Merger [Member]

Schedule of Related Party Transactions

The Company recorded fees and expense reimbursements as shown in the table below for services provided primarily to the Managed REITs (as described above) during the three months ended September 30, 2014 and the period from the Cole Acquisition Date to September 30, 2014 (in thousands). As the Company did not commence operations for Cole Capital until the Cole Acquisition Date, comparative financial data is not presented for the three and nine months ended September 30, 2013.


	Three Months Ended September 30, 2014
	CCPT IV		CCPT V		CCIT		CCIT II		INAV		Other
Operations:
Acquisition fee revenue	$	16,573	$	3,279		1,216	$	1,827	$	—	$	77
Asset management fee revenue		—		—		—		—		—		251
Property management and leasing fee revenue		—		—		—		—		—		178
Operating expense reimbursement revenue		1,589		957		716		237		151		—
Advisory and performance fee revenue		5,521		80		4,839		467		304		—

	Period from the Cole Acquisition Date to September 30, 2014
	CCPT IV		CCPT V		CCIT		CCIT II		INAV		Other
Operations:
Acquisition fee revenue	$	27,358	$	3,864		4,943	$	5,700	$	—	$	77
Asset management fee revenue		—		—		—		—		—		654
Property management and leasing fee revenue		—		—		—		—		—		752
Operating expense reimbursement revenue		4,192		1,140		1,903		316		286		—
Advisory and performance fee revenue		12,832		89		11,995		608		610		—