Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies

10. Commitments and Contingencies

When the Company acquired assets in Germany during the second half of 2012, the Company’s property inspections identified several potential defects, and the Company’s purchase and sale agreement caused the seller to set aside funds in an escrow account until the potential defects could be resolved. The Company is undergoing an assessment and preliminary estimates suggest the repairs could approximate $0.2 million, most of which the Company believes to be recoverable from the amounts held by the seller in escrow.

In the ordinary course of business, the Company may become subject to litigation or claims. There are no material legal proceedings pending or known to be contemplated against the Company.

See Note 8. “Related Party Arrangements” for information on contingent amounts due to the Company’s Advisor in connection with the Amended and Restated Expense Support Agreement.