Related Party Transactions and Arrangements (Tables)

12 Months Ended

Dec. 31, 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):



	Year Ended December 31,
	2014		2013		2012
Related party transactions:
Expenses and capitalized costs:
Financing fees and reimbursements	$	—	$	14,277	$	3,350
Offering related costs	2,150		161,796		211,391
Acquisition related expenses	1,652		37,564		28,656
Merger and other non-routine transactions	137,778		156,146		—
Management fees to affiliates	13,888		17,462		212
General and administrative expenses	16,089		103,206		826
Indirect affiliate expenses	10,975		68		—
Total expenses and capitalized costs	$	182,532	$	490,519	$	244,435
Cole Capital revenues:
Cole Capital offering related revenue	87,109		—		—
Cole Capital operating revenue	116,449		—		—
Total Cole Capital revenues	$	203,558	$	—	$	—

Offering Related Costs [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):



	Year Ended December 31,
	2014		2013		2012
Offering related costs:
Commissions and fees	$	—	$	148,232	$	184,384
Offering costs and other reimbursements	2,150		13,564		27,007
Total	$	2,150	$	161,796	$	211,391

Merger And Other Non-Routine Transactions [Member]

Schedule of Related Party Transactions

These fees are included in merger and other non-routine transactions in the accompanying consolidated statements of operations. The table below shows fees and expenses attributable to each merger and other non-routine transaction for the year ended December 31, 2014 (in thousands).



	Year Ended December 31, 2014
	ARCT IV Merger		Internalization		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 year ended December 31, 2013, (in thousands):




	ARCT III Merger		ARCT IV Merger		CapLease Merger		Cole Merger		Other		Total
Merger related costs:
Strategic advisory services	$	—	$	16,075	$	5,563	$	14,215	$	243	$	36,096
Legal fees and expenses	126		500		3,000		—		40		3,666
Personnel costs and other reimbursements	522		2,137		567		169		178		3,573
Other fees and expenses	—		640		250		—		—		890
Other non-routine transactions:
Subordinated distribution fees	98,360		—		—		—		—		98,360
Furniture, fixtures and equipment	5,800		—		—		—		—		5,800
Legal fees and expenses	950		—		—		—		—		950
Personnel costs and other reimbursements	—		1,107		—		1,463		109		2,679
Post-transaction support services	2,000		2,000		—		—		—		4,000
Other fees and expenses	—		—		132		—		—		132
Total	$	107,758	$	22,459	$	9,512	$	15,847	$	570	$	156,146

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):



	Year Ended December 31,
	2014		2013		2012
Management fees to affiliates:
Base management fees	$	—	$	4,969	$	212
Asset management fees	13,888		11,693		—
Property management fees	—		800		—
Total	$	13,888	$	17,462	$	212

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):



	Year Ended December 31,
	2014		2013		2012
General and administrative expenses:
Advisory fees and reimbursements	$	2,015	$	5,602	$	826
Equity awards	14,074		97,604		—
Total	$	16,089	$	103,206	$	826

Indirect Affiliate Expenses [Member]

Schedule of Related Party Transactions

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. These expenses are depicted in the table below for the periods indicated (in thousands):



	Year Ended December 31,
	2014		2013		2012
Indirect affiliate expenses:
Audrain building	$	8,724	$	68	$	—
ANST office build-out	462		—		—
New York (405 Park) office	1,659		—		—
Dresher, PA office	92		—		—
North Carolina office	38		—		—
Total	$	10,975	$	68	$	—

Due To Affiliates [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):



	Year Ended December 31,
	2014		2013
Due to affiliates:
Offering related costs	$	—	$	220
Merger and other non-routine transactions	—		38,645
Management fees to affiliates	—		4,969
General and administrative	—		59,600
Managed REITs and other	559		—
Total	$	559	$	103,434

Offering Related Revenue [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 period from the Cole Acquisition Date to December 31, 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 year ended December 31, 2013.



	Period from the Cole Acquisition Date to December 31, 2014
	CCPT IV		CCPT V		CCIT			CCIT II		INAV		Total
Offering:
Selling commission revenue	$	29,113	$	11,534	$	(4	)	$	15,817	$	562	$	57,022
Selling commissions reallowance expense	29,113		11,534		(4		)	15,817		562		57,022
Dealer manager and distribution fee revenue	8,771		3,403		(1		)	4,806		555		17,534
Dealer manager fees reallowance expense	4,971		1,794		(1		)	2,357		49		9,170
Other expense reimbursement revenue	3,748		3,475		—			4,844		486		12,553

Operating Revenues [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 period from the Cole Acquisition Date to year ended December 31, 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 year ended December 31, 2013.



	Period from the Cole Acquisition Date to December 31, 2014
	CCPT IV		CCPT V		CCIT	CCIT II		INAV		Other
Operations:
Acquisition fee revenue	$	35,253	$	7,705	4,943	$	12,525	$	—	$	246
Asset management fee revenue	—		—		—	—		—		900
Property management and leasing fee revenue	—		—		—	—		—		877
Operating expense reimbursement revenue	6,574		2,543		2,931	598		448		—
Advisory and performance fee revenue	19,915		629		16,933	1,493		1,936		—

Investments In Managed Real Estate Investment Trusts [Member]

Schedule of Related Party Transactions

As of December 31, 2014, the Company owned aggregate equity investments of $3.9 million in the Managed REITs, which is included in investment in unconsolidated entities in the accompanying consolidated balance sheet. The table below presents certain information related to the Company’s investments in the Managed REITs as of December 31, 2014 (carrying amount in thousands):



	December 31, 2014
Managed REIT	% of Outstanding Shares Owned		Carrying Amount of Investment
CCPT IV	0.01	%	$	131
CCPT V	1.69	%	1,888
CCIT	0.01	%	74
CCIT II	1.20	%	1,644
INAV	0.19	%	153
			$	3,890