Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Estimated Useful Lives for Real Estate Assets

The estimated useful lives of Wells VAF I's assets by class are as follows:



Buildings	40 years
Building improvements	5-25 years
Site improvements	15 years
Tenant improvements	Shorter of lease term or economic life
Intangible lease assets	Lease term

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

As of June 30, 2014 and December 31, 2013, Wells VAF I had the following intangible in-place lease assets and liabilities:



	As of June 30, 2014
	Intangible Lease Assets						Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
	Above-Market In-Place Lease Assets			Absorption Period Costs			Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
Gross	$	357,971		$	1,476,402		$	1,099,149		$	224,442
Accumulated Amortization	(286,994		)	(1,142,046		)	(881,214		)	(179,941		)
Net	$	70,977		$	334,356		$	217,935		$	44,501



	As of December 31, 2013
	Intangible Lease Assets						Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
	Above-Market In-Place Lease Assets			Absorption Period Costs			Intangible Lease Origination Costs			Intangible Below-Market In-Place Lease Liabilities
Gross	$	357,971		$	1,476,402		$	1,099,149		$	224,442
Accumulated Amortization	(268,478		)	(1,063,012		)	(824,362		)	(168,331		)
Net	$	89,493		$	413,390		$	274,787		$	56,111

During the three months and six months ended June 30, 2014 and 2013, Wells VAF I recognized the following amortization of acquired intangible lease assets and liabilities:



	Intangible Lease Assets				Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
For the three months ended June 30:	Above-Market In-Place Lease Assets		Absorption Period Costs		Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
2014	$	9,258	$	39,517	$	28,426	$	5,805
2013	$	9,258	$	39,517	$	28,426	$	5,805

For the six months ended June 30:
2014	$	18,516	$	79,034	$	56,852	$	11,610
2013	$	18,516	$	79,034	$	56,852	$	11,610

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The remaining net intangible assets and liabilities balances as of June 30, 2014 will be amortized as follows:



	Intangible Lease Assets				Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
For the year ending December 31,	Above-Market In-Place Lease Assets		Absorption Period Costs		Intangible Lease Origination Costs		Intangible Below-Market In-Place Lease Liabilities
2014	$	18,516	$	79,033	$	56,853	$	11,608
2015	37,032		158,067		113,705		23,218
2016	15,429		81,558		47,377		9,675
2017	—		15,698		—		—
	$	70,977	$	334,356	$	217,935	$	44,501
Weighted-Average Amortization Period	2 years		2 years		2 years		2 years

Schedule of Real Estate Properties

During the periods presented, Wells VAF I owned direct interests in the following properties:



	% Leased as of	% Leased as of
	June 30, 2014	June 30, 2013
1. Nathan Lane Building A five-story office building located in Plymouth, Minnesota	45%	45%
2. Commerce Street Building⁽¹⁾ A four-story office building and two floors of a parking deck located in Nashville, Tennessee	—	85%

⁽¹⁾ This building was sold in August 2013.

The table below represents the detail of the adjustment recognized during the three and six months ended June 30, 2014 using Level 3 inputs.



Property	Net Book Value ⁽¹⁾		Impairment Loss Recognized		Fair Value
Nathan Lane Building	$	16,017,217	$	2,304,414	$	13,712,803


⁽¹⁾	Net book value includes the straight-line rent receivable as of June 30, 2014, which is included in tenant receivables in the accompanying balance sheets.