Real Estate (Tables)

3 Months Ended

Mar. 31, 2016

Aggregate purchase price of the acquisitions

The purchase price and other acquisition items for the property acquired during the three months ended March 31, 2016 is shown below.

Property

Location

Tenant/Major Lessee

Acquisition Date

Purchase Price

Square Feet

Acquisition Fees and Reimbursable Expenses Paid to the Advisor ⁽¹⁾

Revolving Credit Facility ⁽²⁾

Year of Expiration

Toshiba TEC

Durham, NC

Toshiba TEC Corporation

1/21/2016

35,800,748

200,800

870,409

17,900,000

2028


(1)	The Advisor is entitled to receive a fee in an amount up to 3.85% of the contract purchase price of each property the Company acquires. The fee consists of a 2.0% base acquisition fee and up to an additional 1.85% contingent advisor payment. (See Note 9, Related Party Transactions, for additional discussion.)


(2)	Represents a draw from the Revolving Credit Facility which is discussed in Note 4, Debt, in conjunction with the acquisition. The remaining purchase price was funded with net proceeds raised in the Offering.

Summary of purchase price allocation

The following summarizes the purchase price allocation for the property acquired for the three months ended March 31, 2016:



Property	Land		Building and Improvements		Tenant Origination and Absorption Cost		In-Place Lease Valuation Above/(Below) Market			Total
Toshiba TEC ⁽¹⁾	$	4,130,000	$	28,640,000	$	8,180,748	$	(5,150,000	)	$	35,800,748


(1)	As of March 31, 2016, the purchase price allocation for the acquisition has been allocated on a preliminary basis to the respective assets acquired and the liabilities assumed.

Schedule of pro forma financial information

The pro forma operating information excludes certain nonrecurring adjustments, such as acquisition fees and expenses incurred, to reflect the pro forma impact the acquisition would have on earnings on a continuous basis:



	Three Months Ended March 31,
	2016			2015
Revenue	$	12,674,668		$	830,852
Net loss	$	(443,123	)	$	(1,020,918	)
Net loss attributable to noncontrolling interests	$	(268	)	$	(6,552	)
Net loss attributable to common stockholders ⁽¹⁾	$	(442,854	)	$	(1,014,366	)
Net loss to common stockholders per share, basic and diluted	$	(0.01	)	$	(0.33	)


(1)	Amount is net of net loss attributable to noncontrolling interests.

Schedule of future minimum net rent payments

The future minimum contractual rent payments pursuant to the lease terms, with lease expirations ranging from 2016 to 2029, are shown in the table below:



	As of March 31, 2016
Remaining 2016	$	26,706,752
2017	36,156,447
2018	36,739,266
2019	37,537,759
2020	38,289,093
Thereafter	169,193,096
Total	$	344,622,413

Schedule of in-place lease valuation

The in-place lease was measured against comparable leasing information and the present value of the difference between the contractual, in-place rent and the fair market rent was calculated using, as the discount rate, the capitalization rate utilized to compute the value of the real estate at acquisition.



	March 31, 2016			December 31, 2015
In-place lease valuation (below market)	$	(42,270,561	)	$	(37,120,561	)
In-place lease valuation (below market) - accumulated amortization	2,664,116			1,858,029
In-place lease valuation (below market), net	$	(39,606,445	)	$	(35,262,532	)
Tenant origination and absorption cost	$	118,832,936		$	110,652,188
Tenant origination and absorption cost - accumulated amortization	(10,432,651		)	(7,145,094		)
Tenant origination and absorption cost, net	$	108,400,285		$	103,507,094

Schedule of amortization expense

The amortization of the intangible assets and other leasing costs for the respective periods is as follows:



	Amortization (income) expense for the three months ended March 31,
	2016			2015
In-place lease valuation	$	(806,087	)	$	(1,550	)
Tenant origination and absorption cost	$	3,287,557		$	3,598

Schedule of amortization (income) expense, future amortization

The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, and tenant origination and absorption costs as of March 31, 2016 for the next five years:



Year	In-Place Lease Valuation			Tenant Origination and Absorption Costs
Remaining 2016	$	(2,466,000	)	$	10,000,000
2017	$	(3,288,000	)	$	13,333,000
2018	$	(3,288,000	)	$	13,333,000
2019	$	(3,288,000	)	$	13,333,000
2020	$	(3,288,000	)	$	13,333,000