2.4.0.8113 - Disclosure - Fair Value Measurementstruefalsefalse1falsefalsefalseP01_01_2013To06_30_2013http://www.sec.gov/CIK0001378774duration2013-01-01T00:00:002013-06-30T00:00:001true1us-gaap_FairValueDisclosuresAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_FairValueDisclosuresTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00 <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <b><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">7. Fair Value Measurements</font></b><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">FASB Accounting Standards Codification (“ASC”) 825-10, <i> “Financial Instruments”</i>, requires the disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practical to estimate that value. In May 2011, the FASB issued ASU 2011-04, <i>Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS</i> (“ASU 2011-04”). The amendments in this update result in additional fair value measurement and disclosure requirements within U.S. GAAP and International Financial Reporting Standards and change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Level 1.</font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Quoted prices in active markets for identical instruments.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Level 2.</font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <i><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Level 3.</font></i> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> Assets and liabilities measured at fair value are classified according to the lowest level input that is significant to their valuation. A financial instrument that has a significant unobservable input along with significant observable inputs may still be classified as a Level 3 instrument.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">We generally determine or calculate the fair value of financial instruments using quoted market prices in active markets when such information is available or using appropriate present value or other valuation techniques, such as discounted cash flow analyses, incorporating available market discount rate information for similar types of instruments and our estimates for non-performance and liquidity risk. These techniques are significantly affected by the assumptions used, including the discount rate, credit spreads, and estimates of future cash flow.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">Our balance sheets include the following financial instruments: cash and cash equivalents, tenant and other receivables, restricted cash, security deposits, accounts payable and accrued liabilities, distributions payable, and notes payable. We consider the carrying values of our financial instruments, other than notes payable, to approximate fair value because they generally expose the Company to limited credit risk and because of the short period of time between origination of the financial assets and liabilities and their expected settlement.</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt; BACKGROUND-COLOR: rgb(0,0,0); FONT-STYLE: normal; TEXT-INDENT: 0in; MARGIN: 0in; HEIGHT: 1px; FONT-SIZE: 1px"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font></div> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="TEXT-INDENT: 0in; MARGIN: 0in; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="TEXT-INDENT: 0in; MARGIN: 0in; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">The fair value of the Company’s notes payable is estimated by discounting future cash flows of each instrument at rates that reflect the current market rates available to the Company for debt of the same terms and maturities. The fair value of the notes payable was determined using Level 2 inputs of the fair value hierarchy. Based on the estimates used by the Company, the fair value of notes payable was $<font style=" FONT-SIZE: 10pt">144.3</font> million and $<font style=" FONT-SIZE: 10pt">146.2</font> million, compared to the carrying values of $<font style=" FONT-SIZE: 10pt">144.2</font> ($<font style=" FONT-SIZE: 10pt">143.8</font> million, net of premium) million and $<font style=" FONT-SIZE: 10pt">145.4</font> ($<font style=" FONT-SIZE: 10pt">145.0</font> million, net of premium) million at June 30, 2013 and December 31, 2012, respectively.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">There were no transfers between Level 1 or 2 during the three and six months ended June 30, 2013.</font></div> </div> falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.Reference 1: http://www.xbrl.org/2003/role/presentationRef
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