Real Estate Assets

12 Months Ended

Dec. 31, 2012

Real Estate [Abstract]

REAL ESTATE ASSETS

REAL ESTATE ASSETS

2012 Property Acquisitions

During the year ended December 31, 2012, the Company acquired a 100% interest in one single tenant retail building for an aggregate purchase price of $1.8 million (the “2012 Acquisition”). The Company purchased the 2012 Acquisition with net proceeds from the Offering. The Company allocated the purchase price of the property to the fair value of the assets acquired. The following table summarizes the purchase price allocation:

	December 31, 2012
Land	$	141,433
Building and improvements	1,448,425
Acquired in-place leases	190,909
Total purchase price	$	1,780,767

The Company recorded revenue of $11,000 and a net loss for the year ended December 31, 2012 of $17,000 related to the 2012 Acquisition. In addition, the Company recorded $21,000 of acquisition related expenses for the year ended December 31, 2012.

The following information summarizes selected financial information of the Company, as if the 2012 Acquisition was completed on January 1, 2011 for each period presented below. The table below presents the Company’s estimated revenue and net income, on a pro forma basis, for the years ended December 31, 2012 and 2011:

	Year Ended
	December 31, 2012		December 31, 2011
Pro forma basis (unaudited):
Revenue	$	2,806,000	$	285,000
Net income (loss)	$	15,000	$	(360,000	)

2011 Property Acquisitions

During the year endedDecember 31, 2011, the Company acquired a 100% interest in nine commercial properties for an aggregate purchase price of $30.8 million (the “2011Acquisitions”). The Company purchased the 2011 Acquisitions with a combination of net proceeds from the Offering and proceeds under its secured line of credit. The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation:

	December 31, 2011
Land	$	12,624,154
Building and improvements	15,444,792
Acquired in-place leases	3,603,396
Acquired above-market leases	99,622
Acquired below-market leases	(953,439		)
Total purchase price	$	30,818,525

In connection with the Company’s 2011 acquisitions, the Company recorded a payable to Cole Advisors as of December 31, 2011 for $905,000 for property escrow deposits paid on the Company’s behalf. During the year ended December 31, 2012, the Company reimbursed Cole Advisors in full for such amounts.

The Company recorded revenue of $155,000 and a net loss for the year endedDecember 31, 2011 of $359,000 related to the 2011 Acquisitions. In addition, the Company recorded $417,000 of acquisition related expenses for the year ended December 31, 2011.

The following information summarizes selected financial information of the Company, as if the 2011 Acquisitions were all completed and the Company commenced material operations on July 27, 2010 (Date of Inception) for each period presented below.  The table below presents the Company’s estimated revenue and net income (loss), on a pro forma basis, for the year endedDecember 31, 2011 and the period from July 27, 2010 (Date of Inception) to December 31, 2010:

			For the Period From
	Year Ended		July 27, 2010 to
	December 31, 2011		December 31, 2010
Pro forma basis (unaudited):
Revenue	$	2,522,000	$	1,069,000
Net income (loss)	$	319,000	$	(282,000	)

The unaudited pro forma information for the year ended December 31, 2011 was adjusted to exclude $417,000 of acquisition costs related to the 2011 Acquisitions. These costs were recognized in the unaudited pro forma information for the period from July 27, 2010 (Date of Inception) to December 31, 2010. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of period presented, nor does it purport to represent the results of future operations.