Subsequent Events

3 Months Ended

Mar. 31, 2013

12.

Subsequent Events

Distribution Payment

On April 15, 2013, the total distribution for the three-month period ending March 31, 2013 of approximately $0.9 million was paid in full using a combination of cash and approximately 44,000 shares of the Company's common stock issued pursuant to the Company's DRIP, at a discounted price of $9.50 per share. The distribution was paid from cash flows provided from operations (approximately $0.5 million or 52%) and excess cash proceeds from the issuance of common stock through REIT II's DRIP (approximately $0.4 million or 48%).

Distribution Declaration

On May 10, 2013, the Board of Directors authorized and the Company declared a distribution for the three-month period ending June 30, 2013. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $0.00178082191 per day, and will equal a daily amount that, if paid each day for a 365-day period, would equal a 6.5% annualized rate based on a share price of $10.00. The distribution will be paid in cash on July 15, 2013 to shareholders of record as of June 30, 2013. The shareholders have an option to elect the receipt of shares under our DRIP.