STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

Dividends

Dividends per share of Common Stock declared during the years ended December 31, 2016 and 2015 consist of the following:

Declaration Date	Payment Date	Dividend Per Common Share
December 6, 2016	December 23, 2016	$	0.21875
September 12, 2016	September 28, 2016	$	0.21875
June 10, 2016	June 28, 2016	$	0.21875
March 8, 2016	March 29, 2016	$	0.21875
December 10, 2015	December 29, 2015	$	0.21875
September 14, 2015	September 30, 2015	$	0.21875
June 12, 2015	June 29, 2015	$	0.21875
March 6, 2015	March 27, 2015	$	0.21875

On March 8, 2017, we declared a common share dividend of $0.21875 per share of Common Stock, to be paid on March 27, 2017 to stockholders of record on March 20, 2017.

Share Repurchases

On May 16, 2016, we announced a cash tender offer to purchase up to 10 million shares of our Common Stock at a price of $21.00 per share. The tender offer expired on June 13, 2016. The tender offer was oversubscribed and, pursuant to the terms of the tender offer, shares of Common Stock were accepted on a pro rata basis. In connection with the tender offer, we repurchased, canceled and retired 10 million shares of our Common Stock for an aggregate purchase price of $210,000,000, excluding fees and expenses related to the tender offer, which were $301,000. Based on the actual total number of shares tendered, Urban II, a fund managed by an affiliate of CIM Group, an affiliate of the Manager and the Advisor (each as defined in Note 16), received $208,140,000 of the aggregate purchase price paid. We funded the tender offer using available cash from asset sales and borrowings on our unsecured credit facility. The purchased shares represented approximately 10.24% of our then-outstanding shares of Common Stock. As a result of the repurchase, our stockholders' equity was reduced by the amount we paid for the repurchased shares and the related expenses.

In addition, on September 14, 2016, we repurchased, in a privately negotiated transaction, canceled and retired 3,628,116 shares of Common Stock from Urban II. The aggregate purchase price was $79,819,000, or $22.00 per share. We funded the repurchase using proceeds from the six mortgage loans obtained in June 2016. As a result of the repurchase, our stockholders' equity was further reduced by the amount we paid for the repurchased shares and the related expenses. The Company intends to engage in transactions that would allow stockholders that did not participate in the September 2016 private repurchase to receive the economic benefit of the private repurchase in an equitable manner.  Such transactions could take many forms, including the declaration and payment of one or more special dividends, additional share repurchases or tender offers.

Warrants

Each Units consists of (i) one share of Series A Preferred Stock (Note 12) and (ii) one Warrant which allows the holder to purchase 0.25 of a share of Common Stock. The Warrants are exercisable beginning on the first anniversary of the date of original issuance until and including the fifth anniversary of the date of such issuance. The exercise price of each Warrant is at a 15.0% premium to the per share estimated net asset value of our Common Stock (as most recently published by us at the time of each issuance).

Proceeds and expenses from the sale of the Units are allocated to the Series A Preferred Stock and Warrants using their relative fair values on the date of issuance. As of December 31, 2016, we had issued 61,435 Warrants in connection with our offering of Units and allocated net proceeds of $5,000, after specifically identifiable offering costs and allocated general offering costs, to the Warrants in permanent equity.