Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 13, 2013 | Nov. 13, 2013 | |
Common Class B | Common Class A | ||
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'BERKSHIRE INCOME REALTY, INC. | ' | ' |
Entity Central Index Key | '0001178862 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,406,196 | 0 |
Consolidated_Balance_Sheets_St
Consolidated Balance Sheets Statement (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Multifamily apartment communities, net of accumulated depreciation of $235,968,144 and $235,825,752, respectively | $379,127,145 | $402,999,104 |
Cash and cash equivalents | 9,312,414 | 12,224,361 |
Cash restricted for tenant security deposits | 1,267,396 | 1,332,178 |
Replacement reserve escrow | 1,086,540 | 986,790 |
Prepaid expenses and other assets | 8,275,848 | 9,545,966 |
Investment in unconsolidated multifamily entities | 14,655,404 | 16,873,924 |
Acquired in-place leases and tenant relationships, net of accumulated amortization of $0 and $599,702, respectively | 0 | 5,377 |
Deferred expenses, net of accumulated amortization of $3,252,650 and $3,096,284, respectively | 2,838,489 | 3,210,510 |
Total assets | 416,563,236 | 447,178,210 |
Liabilities: | ' | ' |
Mortgage notes payable | 461,726,623 | 478,185,998 |
Note payable - other | 1,250,000 | 1,250,000 |
Due to affiliates, net | 2,051,898 | 3,446,460 |
Due to affiliate, incentive advisory fees | 7,592,536 | 6,634,261 |
Dividend and distributions payable | 3,637,607 | 1,137,607 |
Accrued expenses and other liabilities | 9,882,792 | 15,081,550 |
Tenant security deposits | 1,549,398 | 1,475,298 |
Total liabilities | 487,690,854 | 507,211,174 |
Commitments and contingencies | 0 | 0 |
Deficit: | ' | ' |
Total deficit | -71,127,618 | -60,032,964 |
Total liabilities and deficit | 416,563,236 | 447,178,210 |
Series A 9% Cumulative Redeemable Preferred Stock, no par value, $25 stated value, 5,000,000 shares authorized, 2,978,110 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Deficit: | ' | ' |
Preferred Stock, Value, Outstanding | 70,210,830 | 70,210,830 |
Class A common stock, $.01 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Deficit: | ' | ' |
Common Stock, Value, Outstanding | 0 | 0 |
Class B common stock, $.01 par value, 5,000,000 shares authorized, 1,406,196 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Deficit: | ' | ' |
Common Stock, Value, Outstanding | 14,062 | 14,062 |
Noncontrolling interest in properties | ' | ' |
Liabilities: | ' | ' |
Dividend and distributions payable | 0 | 300,000 |
Deficit: | ' | ' |
Noncontrolling interest | 1,046,067 | 1,527,431 |
Total deficit | 1,046,067 | 1,527,431 |
Noncontrolling interest in Operating Partnership | ' | ' |
Liabilities: | ' | ' |
Dividend and distributions payable | 2,733,080 | 0 |
Deficit: | ' | ' |
Noncontrolling interest | -100,096,200 | -89,708,267 |
Total deficit | -100,096,200 | -89,708,267 |
Excess Stock, $.01 par value, 15,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | ' | ' |
Deficit: | ' | ' |
Excess Stock, Value, Outstanding | 0 | 0 |
Accumulated deficit | ' | ' |
Deficit: | ' | ' |
Accumulated deficit | -42,302,377 | -42,077,020 |
Total deficit | ($42,302,377) | ($42,077,020) |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Multifamily apartment communities, accumulated depreciation | ($235,968,144) | ($235,825,752) |
Acquire in-place leases and tenant relationships, accumulated amortization | 0 | -599,702 |
Deferred expenses, accumulated amortization | ($3,252,650) | ($3,096,284) |
Series A Preferred Stock | ' | ' |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' |
Preferred Stock, Par or Stated Value Per Share | $25 | $25 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 2,978,110 | 2,978,110 |
Preferred Stock, Shares Outstanding | 2,978,110 | 2,978,110 |
Common Class A | ' | ' |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 0 | 0 |
Common Stock, Shares, Outstanding | 0 | 0 |
Common Class B | ' | ' |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' |
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Common Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Shares, Issued | 1,406,196 | 1,406,196 |
Common Stock, Shares, Outstanding | 1,406,196 | 1,406,196 |
Excess Stock | ' | ' |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | ' |
Excess stock, Par or Stated Value Per Share | $0.01 | $0.01 |
Excess Stock, Shares Authorized | 15,000,000 | 15,000,000 |
Excess Stock, Shares Issued | 0 | 0 |
Excess Stock, Shares Outstanding | 0 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations Statement (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenue: | ' | ' | ' | ' |
Rental | $18,468,549 | $17,303,581 | $54,397,584 | $51,217,005 |
Utility reimbursement | 866,346 | 722,752 | 2,556,845 | 2,176,382 |
Other | 867,340 | 768,984 | 2,518,973 | 2,285,058 |
Total revenue | 20,202,235 | 18,795,317 | 59,473,402 | 55,678,445 |
Expenses: | ' | ' | ' | ' |
Operating | 4,587,613 | 4,473,126 | 13,662,836 | 13,034,206 |
Maintenance | 1,384,633 | 1,321,345 | 3,497,705 | 3,556,043 |
Real estate taxes | 1,770,935 | 1,694,010 | 5,606,147 | 5,119,712 |
General and administrative | 505,702 | 554,381 | 1,743,601 | 1,878,723 |
Management fees | 1,208,938 | 1,170,760 | 3,605,724 | 3,458,423 |
Incentive advisory fees | 423,153 | 173,217 | 1,796,933 | 1,973,195 |
Depreciation | 6,397,609 | 5,984,472 | 19,157,233 | 18,483,621 |
Interest, inclusive of amortization of deferred financing fees | 6,784,545 | 5,680,646 | 19,841,847 | 17,986,913 |
Amortization of acquired in-place leases and tenant relationships | 0 | 16,104 | 5,377 | 52,176 |
Total expenses | 23,063,128 | 21,068,061 | 68,917,403 | 65,543,012 |
Loss before equity in loss of unconsolidated multifamily entities | -2,860,893 | -2,272,744 | -9,444,001 | -9,864,567 |
Equity in loss of unconsolidated multifamily entities | -24,499 | -653,110 | -1,655,602 | -245,871 |
Loss from continuing operations | -2,885,392 | -2,925,854 | -11,099,603 | -10,110,438 |
Discontinued operations: | ' | ' | ' | ' |
Income (loss) from discontinued operations | -12,444 | 223,502 | 47,336 | -484,772 |
Gain on disposition of real estate assets | 0 | 0 | 18,689,058 | 6,622,210 |
Net income (loss) from discontinued operations | -12,444 | 223,502 | 18,736,394 | 6,137,438 |
Net income (loss) | -2,897,836 | -2,702,352 | 7,636,791 | -3,973,000 |
Net income attributable to noncontrolling interest in properties | -25,553 | -127,684 | -40,361 | -345,990 |
Net (income) loss attributable to noncontrolling interest in Operating Partnership | 4,488,677 | 4,397,555 | -2,509,405 | 9,121,238 |
Net income attributable to the Company | 1,565,288 | 1,567,519 | 5,087,025 | 4,802,248 |
Preferred dividend | -1,675,194 | -1,675,194 | -5,025,582 | -5,025,583 |
Net income (loss) available to common shareholders | ($109,906) | ($107,675) | $61,443 | ($223,335) |
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.07) | ($0.24) | ($13.28) | ($4.52) |
Net income (loss) from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.01) | $0.16 | $13.32 | $4.36 |
Net income (loss) available to common shareholders per common share, basic and diluted | ($0.08) | ($0.08) | $0.04 | ($0.16) |
Weighted average number of common shares outstanding, basic and diluted (shares) | 1,406,196 | 1,406,196 | 1,406,196 | 1,406,196 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Deficit Statement (USD $) | Total | Series A Preferred Stock | Common Class B | Accumulated deficit | Noncontrolling interest in properties | Noncontrolling interest in Operating Partnership | Total Deficit |
Beginning balance at Dec. 31, 2011 | ' | $70,210,830 | $14,062 | ($41,802,722) | $346,524 | ($76,785,818) | ($48,017,124) |
Common Stock, Shares, Outstanding at Dec. 31, 2011 | ' | ' | 1,406,196 | ' | ' | ' | ' |
Preferred Stock, Shares Outstanding at Dec. 31, 2011 | ' | 2,978,110 | ' | ' | ' | ' | ' |
Net income (loss) | -3,973,000 | 0 | 0 | 4,802,248 | 345,990 | -9,121,238 | -3,973,000 |
Contributions | ' | 0 | 0 | 0 | 291,701 | 0 | 291,701 |
Distributions | ' | 0 | 0 | 0 | -1,295,182 | -1,685,796 | -2,980,978 |
Distributions to preferred shareholders | ' | 0 | 0 | -5,025,583 | 0 | 0 | -5,025,583 |
Ending balance at Sep. 30, 2012 | ' | 70,210,830 | 14,062 | -42,026,057 | -310,967 | -87,592,852 | -59,704,984 |
Preferred Stock, Shares Outstanding at Sep. 30, 2012 | ' | 2,978,110 | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding at Sep. 30, 2012 | ' | ' | 1,406,196 | ' | ' | ' | ' |
Beginning balance at Dec. 31, 2012 | -60,032,964 | 70,210,830 | 14,062 | -42,077,020 | 1,527,431 | -89,708,267 | -60,032,964 |
Common Stock, Shares, Outstanding at Dec. 31, 2012 | ' | ' | 1,406,196 | ' | ' | ' | ' |
Preferred Stock, Shares Outstanding at Dec. 31, 2012 | ' | 2,978,110 | ' | ' | ' | ' | ' |
Net income (loss) | 7,636,791 | 0 | 0 | 5,087,025 | 40,361 | 2,509,405 | 7,636,791 |
Contributions | ' | 0 | 0 | 0 | 399,718 | 0 | 399,718 |
Distributions | ' | 0 | 0 | -286,800 | -921,443 | -12,897,338 | -14,105,581 |
Distributions to preferred shareholders | ' | 0 | 0 | -5,025,582 | 0 | 0 | -5,025,582 |
Ending balance at Sep. 30, 2013 | ($71,127,618) | $70,210,830 | $14,062 | ($42,302,377) | $1,046,067 | ($100,096,200) | ($71,127,618) |
Preferred Stock, Shares Outstanding at Sep. 30, 2013 | ' | 2,978,110 | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding at Sep. 30, 2013 | ' | ' | 1,406,196 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows Statement (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $7,636,791 | ($3,973,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Amortization of deferred financing costs | 433,159 | 448,287 |
Amortization of acquired in-place leases and tenant relationships | 5,377 | 52,176 |
Loss on extinguishment of debt | 3,807 | 40,812 |
Depreciation | 19,762,355 | 20,993,891 |
Equity in loss of unconsolidated multifamily entities | 1,655,602 | 245,871 |
Gain on disposition of real estate assets | -18,689,058 | -6,622,210 |
Increase (decrease) in cash attributable to changes in assets and liabilities: | ' | ' |
Tenant security deposits, net | 138,882 | 127,615 |
Prepaid expenses and other assets | 1,270,118 | 1,422,614 |
Due to/from affiliates | -1,394,562 | 1,534,662 |
Due to affiliate - incentive advisory fees | 958,275 | 1,590,076 |
Accrued expenses and other liabilities | -1,053,427 | 1,220,523 |
Net cash provided by operating activities | 10,727,319 | 17,081,317 |
Cash flows from investing activities: | ' | ' |
Capital improvements | -12,308,567 | -33,065,794 |
Proceeds from sale of multifamily apartment communities | 30,958,927 | 13,929,990 |
Investment in unconsolidated multifamily entities | -305,175 | -581,030 |
Distributions from investment in unconsolidated multifamily entities | 868,093 | 700,075 |
Interest earned on replacement reserve deposits | -446 | -2,219 |
Deposits to replacement reserve escrow | -140,785 | -131,985 |
Withdrawal from replacement reserve escrow | 41,481 | 0 |
Net cash provided by (used in) investing activities | 19,113,528 | -19,150,963 |
Cash flows from financing activities: | ' | ' |
Borrowings from mortgage notes payable | 2,770,663 | 22,645,466 |
Principal payments on mortgage notes payable | -4,396,752 | -4,047,055 |
Prepayment of mortgage notes payable | -14,833,286 | -5,506,728 |
Borrowings from revolving credit facility - affiliate | 1,627,000 | 1,691,000 |
Principal payments on revolving credit facility - affiliate | -1,627,000 | -7,349,422 |
Deferred financing costs | -61,974 | -226,989 |
Contribution from noncontrolling interest holders in properties | 399,718 | 291,701 |
Distributions to noncontrolling interest holders in properties | -1,221,443 | -1,295,182 |
Distributions to noncontrolling interest partners in Operating Partnership | -10,164,258 | -1,685,796 |
Distributions to common shareholders | -219,880 | 0 |
Distributions to preferred shareholders | -5,025,582 | -5,025,583 |
Net cash used in financing activities | -32,752,794 | -508,588 |
Net decrease in cash and cash equivalents | -2,911,947 | -2,578,234 |
Cash and cash equivalents at beginning of period | 12,224,361 | 9,645,420 |
Cash and cash equivalents at end of period | 9,312,414 | 7,067,186 |
Noncontrolling interest in Operating Partnership | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $2,509,405 | ($9,121,238) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows Supplemental Disclosures (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Supplemental disclosure: | ' | ' |
Cash paid for interest, net of capitalized interest | $20,622,669 | $19,434,715 |
Capitalization of interest | 425,271 | 1,814,313 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Capital improvements included in accrued expenses and other liabilities | 120,308 | 2,465,914 |
Dividend and distributions payable | 3,637,607 | ' |
Write-off of fully amortized acquired in-place leases and tenant relationships | 605,079 | 0 |
Sale of real estate: | ' | ' |
Gross selling price | 31,500,000 | 14,200,000 |
Cost of sale | -541,073 | -270,010 |
Cash flows from sale of multifamily apartment communities | 30,958,927 | 13,929,990 |
Preferred Class A [Member] | ' | ' |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Dividend and distributions payable | 837,607 | 837,607 |
Common Class B | ' | ' |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Dividend and distributions payable | 66,920 | 0 |
Noncontrolling interest in Operating Partnership | ' | ' |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Dividend and distributions payable | $2,733,080 | $0 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | ' |
Organization and Basis of Presentation | ' |
ORGANIZATION AND BASIS OF PRESENTATION | |
Berkshire Income Realty, Inc. (the “Company”), a Maryland corporation, was incorporated on July 19, 2002 and 100 Class B common shares were issued upon organization. The Company is in the business of acquiring, owning, operating, developing and rehabilitating multifamily apartment communities. As of September 30, 2013, the Company owned, or had an interest in, 20 multifamily apartment communities consisting of 5,499 total apartment units, one multifamily development project and two unconsolidated multifamily entities. The Company conducts its business through Berkshire Income Realty-OP, L.P. (the "Operating Partnership"). | |
The Company elected to be treated as a real estate investment trust ("REIT") under Section 856 of the Tax Code (the "Code"), with the filing of its first tax return. As a result, the Company generally is not subject to federal corporate income tax on its taxable income that is distributed to its shareholders. A REIT is subject to a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its annual taxable income. The Company's policy is to make sufficient distributions of its taxable income to meet the REIT distribution requirements. The Company must also meet other operational requirements with respect to its investments, assets and income. The Company monitors these various requirements on a quarterly basis and believes that as of and for the nine months ended September 30, 2013 and 2012, it was in compliance on all such requirements. Accordingly, the Company has made no provision for federal income taxes in the accompanying consolidated financial statements. The Company is subject to certain state level taxes based on the location of its properties. | |
Discussion of acquisitions for the nine months ended September 30, 2013 | |
The Company did not acquire any properties during the nine-month period ended September 30, 2013. | |
Discussion of dispositions for the nine months ended September 30, 2013 | |
On June 25, 2013, the Company completed the sale of Walden Pond and Gables of Texas, both located in Houston, Texas, to an unaffiliated buyer. The combined sale price was $31,500,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. | |
Recent Accounting Pronouncements | |
In May 2011, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 clarifies some existing concepts, eliminates wording differences between accounting principles generally accepted in the United States of America ("GAAP") and International Financial Reporting Standards ("IFRS"), and in some limited cases, changes some principles to achieve convergence between GAAP and IFRS. ASU 2011-04 results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 became effective for the Company on January 1, 2012. The adoption of ASU 2011-04 did not have a material effect on the Company's operating results, financial position, or disclosures. | |
In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05, which deferred the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement. Both ASU 2011-05 and ASU 2011-12 became effective for the Company on January 1, 2012. The adoption of ASU 2011-05 and ASU 2011-12 did not have any effect on the Company's operating results, financial position, or disclosures. | |
Unaudited interim consolidated financial statements | |
The accompanying interim consolidated financial statements of the Company are unaudited; however, the consolidated financial statements have been prepared in accordance with GAAP for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain disclosures accompanying annual financial statements prepared in accordance with GAAP are omitted. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair statement for the interim periods have been included. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for other interim periods or for the full fiscal year. The interim financial statements and notes thereto should be read in conjunction with the Company’s financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Consolidated Statements of Comprehensive Income (Loss) | |
For the nine months ended September 30, 2013 and 2012, comprehensive income (loss) equaled net income (loss). Therefore, the Consolidated Statement of Comprehensive Income and Loss required to be presented has been omitted from the consolidated financial statements. | |
Reclassifications | |
Certain prior period balances have been reclassified in order to conform to the current period presentation. | |
Out of period adjustments | |
During the third quarter of fiscal 2012, the Company recorded out of period adjustments that (i) decreased interest expense by an aggregate of $341,368 to reflect additional capitalization of interest relating to the three month periods ended March 31, 2012 and June 30, 2012 of $154,356 and $187,012, respectively, and (ii) reduced incentive advisory fees expense by $90,235 relating to an over accrual for such expenses during the three month period ended June 30, 2012. The cumulative effect of out of period adjustments for the year ended December 31, 2012 was a $431,603 decrease in the net loss. The Company has determined that these adjustments did not have an impact on any other prior annual period and were not material to any other prior interim periods, and the resulting correction is not material. | |
Distributions of $1,685,796 have been adjusted from Accumulated Deficit to Noncontrolling Interest-Operating Partnership to properly reflect such amounts within the Consolidated Statement of Changes in Deficit for the nine months ended September 30, 2012. Management has determined such adjustment to be immaterial to the overall financial statements. |
Multifamily_Apartment_Communit
Multifamily Apartment Communities | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
MULTIFAMILY APARTMENT COMMUNITIES [Abstract] | ' | |||||||||||||||
Multifamily Apartment Communities | ' | |||||||||||||||
MULTIFAMILY APARTMENT COMMUNITIES | ||||||||||||||||
The following summarizes the carrying value of the Company’s multifamily apartment communities: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Land | $ | 60,871,969 | $ | 63,749,991 | ||||||||||||
Buildings, improvement and personal property | 554,223,320 | 575,074,865 | ||||||||||||||
Multifamily apartment communities | 615,095,289 | 638,824,856 | ||||||||||||||
Accumulated depreciation | (235,968,144 | ) | (235,825,752 | ) | ||||||||||||
Multifamily apartment communities, net | $ | 379,127,145 | $ | 402,999,104 | ||||||||||||
The Company accounts for its acquisitions of investments in real estate in accordance with Accounting Standards Codification ("ASC") 805-10, which requires the fair value of the real estate acquired to be allocated to the acquired tangible assets, consisting of land, building, furniture, fixtures and equipment and identified intangible assets and liabilities, consisting of the value of the above-market and below-market leases, the value of in-place leases and the value of other tenant relationships, based in each case on their fair values. The value of in-place leases and tenant relationships is determined based on the specific expiration dates of the in-place leases and amortized over a period of 12 months and the tenant relationships are based on the straight-line method of amortization over a 24-month period. | ||||||||||||||||
The Company evaluated the carrying value of its multifamily apartment communities for impairment pursuant to ASC 360-10. The Company did not record an impairment adjustment during the nine months ended September 30, 2013 or twelve months ended December 31, 2012. | ||||||||||||||||
Discontinued Operations | ||||||||||||||||
On March 23, 2012, the Company completed the sale of Riverbirch, a 210-unit multifamily apartment community located in Charlotte, North Carolina, to an unaffiliated buyer. The sale price of Riverbirch was $14,200,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. | ||||||||||||||||
On November 5, 2012, the Company completed the sale of Silver Hill and Arboretum, both located in Newport News, Virginia, to an unaffiliated buyer. The combined sale price was $25,425,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. | ||||||||||||||||
On November 30, 2012, the Company completed the sale of Arrowhead and Moorings, both located in Chicago, Illinois, to an unaffiliated buyer. The combined total sale price was $37,000,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. | ||||||||||||||||
On June 25, 2013, the Company completed the sale of Walden Pond and Gables of Texas, both located in Houston, Texas, to an unaffiliated buyer. The combined sale price was $31,500,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. | ||||||||||||||||
The results of operations for Arboretum, Arrowhead, Gables of Texas, Moorings, Riverbirch, Silver Hill and Walden Pond have been restated and are presented as results from discontinued operations in the Consolidated Statement of Operations for the three and nine months ended September 30, 2013 and 2012, respectively, pursuant to ASC 205-20. | ||||||||||||||||
The operating results of discontinued operations for the three and nine months ended September 30, 2013 and 2012 are presented in the following table. | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue: | ||||||||||||||||
Rental | $ | 5,203 | $ | 2,902,238 | $ | 2,020,361 | $ | 9,063,449 | ||||||||
Utility reimbursement | — | 157,046 | 230,542 | 473,964 | ||||||||||||
Other | 52,604 | 140,063 | 297,838 | 438,933 | ||||||||||||
Total revenue | 57,807 | 3,199,347 | 2,548,741 | 9,976,346 | ||||||||||||
Expenses: | ||||||||||||||||
Operating | 37,440 | 937,408 | 810,822 | 3,053,481 | ||||||||||||
Maintenance | 7,697 | 266,331 | 136,819 | 719,375 | ||||||||||||
Real estate taxes | 23,097 | 292,105 | 288,619 | 1,009,645 | ||||||||||||
General and administrative | — | 17,394 | 31,663 | 37,529 | ||||||||||||
Management fees | 2,017 | 127,948 | 96,567 | 390,992 | ||||||||||||
Depreciation | — | 784,645 | 605,122 | 2,510,270 | ||||||||||||
Interest, inclusive of amortization of deferred financing fees | — | 550,014 | 527,986 | 2,699,013 | ||||||||||||
Loss on extinguishment of debt | — | — | 3,807 | 40,813 | ||||||||||||
Total expenses | 70,251 | 2,975,845 | 2,501,405 | 10,461,118 | ||||||||||||
Income (loss) from discontinued operations | $ | (12,444 | ) | $ | 223,502 | $ | 47,336 | $ | (484,772 | ) | ||||||
Investment_in_Unconsolidated_M
Investment in Unconsolidated Multifamily Entities | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | ' | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | |||||||||||||||
Equity Method Investments | ' | |||||||||||||||
INVESTMENT IN UNCONSOLIDATED LIMITED PARTNERSHIP | ||||||||||||||||
On August 12, 2005, the Company, together with affiliates and other unaffiliated parties, entered into a subscription agreement to invest in the Berkshire Multifamily Value Fund, L.P. (“BVF”), an affiliate of Berkshire Property Advisors, L.L.C. (“Berkshire Advisor” or the “Advisor”). Under the terms of the agreement and the related limited partnership agreement, the Company and its affiliates agreed to invest up to $25,000,000, or approximately 7%, of the total capital of the partnership. The Company’s final commitment under the subscription agreement with BVF totaled $23,400,000. BVF’s investment strategy was to acquire middle-market properties where there is an opportunity to add value through repositioning or rehabilitation. | ||||||||||||||||
In accordance with ASC 810-10 issued by FASB, as amended by ASU 2009-17, related to the consolidation of variable interest entities, the Company has performed an analysis of its investment in BVF to determine whether it would qualify as a variable interest entity (“VIE”) and whether it should be consolidated or accounted for as an equity investment in an unconsolidated joint venture. As a result of the Company’s qualitative assessment to determine whether its investment in BVF is a VIE, the Company determined that the investment is a VIE based upon the fact that the holders of the equity investment at risk lack the power, through voting or similar rights, to direct the activities of BVF that most significantly impact BVF’s economic performance. Under the terms of the limited partnership agreement of BVF, the general partner of BVF has the full, exclusive and complete right, power, authority, discretion, obligation and responsibility to make all decisions affecting the business of BVF. | ||||||||||||||||
After making the determination that its investment in BVF was a VIE, the Company performed an assessment of which partner would be considered the primary beneficiary of BVF and therefore would be required to consolidate BVF’s balance sheets and result of operations. This assessment was based upon which entity (1) had the power to direct matters that most significantly impact the activities of BVF, and (2) had the obligation to absorb losses or the right to receive benefits of BVF that could potentially be significant to the entity based upon the terms of the partnership and management agreements of BVF. As a result of fees paid to an affiliate of the general partner of BVF for asset management and other services, the Company has determined that the general partner of BVF has the obligation to absorb the losses or the right to receive benefits of BVF while retaining the power to make significant decisions for BVF. Based upon this understanding, the Company concluded that the general partner of BVF should consolidate BVF and as such, the Company accounts for its investment in BVF as an equity investment in an unconsolidated joint venture. | ||||||||||||||||
As of September 30, 2013, the Company had invested 100% of its total committed capital amount of $23,400,000 in BVF for an ownership interest of approximately 7% and had received distributions from BVF of $2,268,243, or approximately 9.7%, of its committed capital. On October 8, 2013, the Company received $1,715,183 of distribution from BVF for total distributions of $3,983,426, or approximately 17%, of its committed capital. | ||||||||||||||||
The summarized statement of assets, liabilities and partners’ capital (deficit) of BVF is as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Multifamily apartment communities, net | $ | 751,632,874 | $ | 807,747,897 | ||||||||||||
Cash and cash equivalents | 17,657,099 | 16,851,009 | ||||||||||||||
Other assets | 19,309,148 | 16,927,659 | ||||||||||||||
Total assets | $ | 788,599,121 | $ | 841,526,565 | ||||||||||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||||
Mortgage notes payable | $ | 768,087,440 | $ | 800,968,937 | ||||||||||||
Revolving credit facility | 16,300,000 | 16,300,000 | ||||||||||||||
Other liabilities | 24,733,784 | 22,050,147 | ||||||||||||||
Noncontrolling interest | (13,302,467 | ) | (9,478,084 | ) | ||||||||||||
Partners’ capital (deficit) | (7,219,636 | ) | 11,685,565 | |||||||||||||
Total liabilities and partners’ capital (deficit) | $ | 788,599,121 | $ | 841,526,565 | ||||||||||||
Company’s share of partners’ capital (deficit) | $ | (505,428 | ) | $ | 818,078 | |||||||||||
Basis differential (1) | 604,395 | 604,395 | ||||||||||||||
Carrying value of the Company’s investment in unconsolidated limited partnership (2) | $ | 98,967 | $ | 1,422,473 | ||||||||||||
-1 | This amount represents the difference between the Company’s investment in BVF and its share of the underlying equity in the net assets of BVF (adjusted to conform with GAAP). At September 30, 2013 and December 31, 2012, the differential related mainly to $583,240 which represents the Company’s share of syndication costs incurred by BVF, which was not an item required to be funded via a capital investment by the Company. | |||||||||||||||
-2 | Per the partnership agreement of BVF, the Company’s liability is limited to its investment in BVF. The Company does not guarantee any third-party debt held by BVF. The Company has fully funded its obligations under the partnership agreement as of September 30, 2013 and has no commitment to make additional contributions to BVF. | |||||||||||||||
The Company evaluates the carrying value of its investment in BVF for impairment periodically and records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. No such other-than-temporary impairment charges have been recognized during the nine months ended September 30, 2013 or twelve months ended December 31, 2012. | ||||||||||||||||
The summarized statements of operations of BVF for the three and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | 34,116,230 | $ | 32,825,227 | $ | 101,002,262 | $ | 101,162,295 | ||||||||
Expenses | (42,051,265 | ) | (43,526,428 | ) | (125,568,161 | ) | (136,137,762 | ) | ||||||||
Gain on property sales and extinguishment of debt (2) | 14,339,915 | 615,203 | 14,261,091 | 28,742,497 | ||||||||||||
Noncontrolling interest | 1,196,501 | 1,683,415 | 3,799,608 | 5,183,466 | ||||||||||||
Net income (loss) attributable to investment | $ | 7,601,381 | $ | (8,402,583 | ) | $ | (6,505,200 | ) | $ | (1,049,504 | ) | |||||
Equity in income (loss) of unconsolidated limited partnership (1)(2) | $ | 532,154 | $ | (588,242 | ) | $ | (455,413 | ) | $ | (73,472 | ) | |||||
-1 | There were no impairment indicators or impairment writeoffs in the nine months ended September 30, 2013 or 2012. | |||||||||||||||
The Company has determined that its valuation of the real estate was categorized within Level 3 of the fair value hierarchy in accordance with ASC 820-10, as it utilized significant unobservable inputs in its assessment. | ||||||||||||||||
-2 | During the nine months ended September 30, 2012, BVF recorded a net gain on the disposition of eight properties. The gain on the sale was $28,742,497, of which the Company's share was approximately $2,012,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended September 30, 2012. | |||||||||||||||
During the nine months ended September 30, 2013, BVF recorded a net gain on the disposition of one property. The gain on the sale was $14,261,091, of which the Company's share was approximately $998,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended September 30, 2013. | ||||||||||||||||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ' | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | |||||||||||||||
Equity Method Investments | ' | |||||||||||||||
INVESTMENT IN UNCONSOLIDATED LIMITED LIABILITY COMPANY | ||||||||||||||||
On March 2, 2011, the Operating Partnership executed an agreement with Berkshire Multifamily Value Fund II ("BVF-II"), an affiliated entity, to create a joint venture, BIR/BVF-II NoMa JV, L.L.C. ("NoMa JV"), to participate in and take an ownership position in a real estate development project. BVF-II is the managing member of NoMa JV and has a percentage ownership interest of approximately 67% while the Operating Partnership has a percentage ownership interest of approximately 33%. | ||||||||||||||||
Also on March 2, 2011, NoMa JV acquired a 90% interest in NOMA Residential West I, LLC. (“NOMA Residential”). NOMA Residential has developed and is operating a 603-unit multifamily apartment community in Washington, D.C. (the "NoMa Project"). The remaining 10% interest in NOMA Residential is owned by the developer, an unrelated third party (the “NoMa Developer”). The governing agreements for NOMA Residential give the NoMa Developer the authority to manage the construction and development of, and subsequent to completion, the day-to-day operations of NOMA Residential. The agreement also provides for fees to the NoMa Developer, limits the authority of the NoMa Developer and provides for distributions based on percentage interest and thereafter in accordance with achievement of economic hurdles. | ||||||||||||||||
In accordance with ASC 810-10, as amended by ASU 2009-17, related to the consolidation of variable interest entities, the Company has performed an analysis of its investment in NoMa JV to determine whether it would qualify as a VIE and whether it should be consolidated or accounted for as an equity investment in an unconsolidated joint venture. As a result of the Company's qualitative assessment to determine whether its investment is a VIE, the Company determined that the investment is a VIE based upon the holders of the equity investment at risk lacking the power, through voting rights or similar rights to direct the activities of the entity that most significantly impact the entity's economic performance. Under the terms of the limited liability company agreement of NoMa JV, the managing member has the full, exclusive and complete right, power, authority, discretion, obligation and responsibility to make all decisions affecting the business of NoMa JV. | ||||||||||||||||
After making the determination that its investment in NoMa JV was a VIE, the Company performed an assessment of which partner would be considered the primary beneficiary of NoMa JV and would be required to consolidate the VIE's balance sheet and results of operations. This assessment was based upon which entity (1) had the power to direct matters that most significantly impact the activities of NoMa JV, and (2) had the obligation to absorb losses or the right to receive benefits of NoMa JV that could potentially be significant to the VIE based upon the terms of the partnership and management agreements of NoMa JV. Because the managing member owns two-thirds of the entity and all profits and losses are split pro-rata in accordance with capital accounts, the Company has determined that the managing member has the obligation to absorb the losses or the right to receive benefits of the VIE while retaining the power to make significant decisions for NoMa JV. Based upon this understanding, the Company concluded that the managing member should consolidate NoMa JV and as such, the Company accounts for its investment in NoMa JV as an equity investment in an unconsolidated joint venture. | ||||||||||||||||
As of September 30, 2013, the Company had invested 100% of its total committed capital amount of $14,520,000 in NoMa JV for an ownership interest of approximately 33% and had recorded $1,710,327 of capitalized interest on the investment. The Company's maximum exposure to loss in NoMa JV is its investment of capital of $14,520,000. | ||||||||||||||||
The summarized statement of assets, liabilities and members’ capital of NoMa JV is as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Multifamily apartment communities, net | $ | 127,434,358 | $ | 114,349,590 | ||||||||||||
Cash and cash equivalents | 1,071,560 | 565,453 | ||||||||||||||
Other assets | 631,377 | 738,983 | ||||||||||||||
Total assets | $ | 129,137,295 | $ | 115,654,026 | ||||||||||||
LIABILITIES AND MEMBERS’ CAPITAL | ||||||||||||||||
Mortgage note payable | $ | 79,632,107 | $ | 63,413,844 | ||||||||||||
Other liabilities | 6,597,332 | 5,419,184 | ||||||||||||||
Noncontrolling interest | 4,290,786 | 4,682,100 | ||||||||||||||
Members’ capital | 38,617,070 | 42,138,898 | ||||||||||||||
Total liabilities and members’ capital | $ | 129,137,295 | $ | 115,654,026 | ||||||||||||
Company’s share of members’ capital | $ | 12,872,356 | $ | 14,046,299 | ||||||||||||
Basis differential (1) | $ | 1,684,081 | $ | 1,405,152 | ||||||||||||
Carrying value of the Company’s investment in unconsolidated limited liability company (2) | $ | 14,556,437 | $ | 15,451,451 | ||||||||||||
-1 | This amount represents capitalized interest, net of amortization, pursuant to ASC 835-20, related to the Company's equity investment in NoMa JV. The capitalized interest was computed on the amounts borrowed by the Company to finance its investment in NoMa JV and was not an item required to be funded via a capital investment in NoMa JV. | |||||||||||||||
-2 | Per the limited liability company agreement of NoMa JV, the Company's liability is limited to its investment in NoMa JV. The Company has fully funded its maximum obligation under the limited liability company agreement as of September 30, 2013 and has no commitment to make additional contributions to NoMa JV. | |||||||||||||||
The Company evaluates the carrying value of its investment in NoMa JV for impairment periodically and records impairment charges when events or circumstances change indicating that a decline in the fair values below the carrying values has occurred and such decline is other-than-temporary. No such other-than-temporary impairment charges have been recognized during the nine months ended September 30, 2013 or twelve months ended December 31, 2012. | ||||||||||||||||
The summarized statements of operations of NoMa JV for the three and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | 1,522,546 | $ | 1,556 | $ | 2,804,862 | $ | 1,556 | ||||||||
Expenses | (3,290,569 | ) | (217,783 | ) | (6,718,005 | ) | (576,220 | ) | ||||||||
Noncontrolling interest | 176,802 | 21,622 | 391,314 | 57,466 | ||||||||||||
Net loss attributable to investment | $ | (1,591,221 | ) | $ | (194,605 | ) | $ | (3,521,829 | ) | $ | (517,198 | ) | ||||
Equity in loss of unconsolidated limited liability company | $ | (530,407 | ) | $ | (64,868 | ) | $ | (1,173,943 | ) | $ | (172,399 | ) | ||||
Amortization of basis | (26,246 | ) | — | (26,246 | ) | — | ||||||||||
Adjusted equity in loss of unconsolidated limited liability company | $ | (556,653 | ) | $ | (64,868 | ) | $ | (1,200,189 | ) | $ | (172,399 | ) |
Mortgage_Notes_Payable
Mortgage Notes Payable | 9 Months Ended |
Sep. 30, 2013 | |
MORTGAGE NOTES PAYABLE [Abstract] | ' |
Mortgage Notes Payable | ' |
MORTGAGE NOTES PAYABLE | |
On March 31, 2011, the Operating Partnership, through the joint venture ("JV 2020 Lawrence") formed with its subsidiary, BIR 2020 Lawrence, L.L.C. ("BIR 2020"), Zocalo Community Development, Inc. ("Zocalo") and JB 2020, LLC, entered into an agreement for fixed rate construction-to-permanent financing totaling up to $45,463,100, which is collateralized by the related property and is insured by the U.S. Department of Housing and Urban Development ("HUD"). The construction loan was converted to permanent financing on June 27, 2013 with a term of 40 years and has a fixed interest rate of 5.00%. The loan will mature on February 1, 2053. The proceeds of the financing were used to develop a mid-rise multifamily apartment building in Denver, Colorado (the "2020 Lawrence Project"). As of September 30, 2013, the Company received proceeds pursuant to the loan of $45,463,100, of which $2,770,663 was received during the nine months ended September 30, 2013. As of September 30, 2013, the outstanding balance on the loan was $45,221,260. | |
The Company determines the fair value of the mortgage notes payable in accordance with authoritative guidance related to fair value measurement and is based on the discounted future cash flows at a discount rate that approximates the Company’s current effective borrowing rate for comparable loans (other observable inputs or Level 3 inputs, as defined by the authoritative guidance). For purposes of determining fair value, the Company groups its debt by similar maturity date for purposes of obtaining comparable loan information in order to determine fair values. In addition, the Company also considers the loan-to-value percentage of individual loans to determine if further stratification of the loans is appropriate in the valuation model. Debt in excess of 80% loan-to-value is considered similar to mezzanine debt and is valued using a greater interest spread than the average debt pool. Based on this analysis, the Company has determined that the fair value of the mortgage notes payable approximated $490,725,000 and $543,557,000 at September 30, 2013 and December 31, 2012, respectively. |
Revolving_Credit_Facility_Affi
Revolving Credit Facility - Affiliate (Line of Credit [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Disclosure [Text Block] | ' |
REVOLVING CREDIT FACILITY - AFFILIATE | |
On June 30, 2005, the Company obtained new financing in the form of a revolving credit facility. The revolving credit facility in the amount of $20,000,000 was provided by an affiliate of the Company. The credit facility was amended on May 31, 2007 to add additional terms to the credit facility ("Amendment No. 1"), on February 17, 2011 to add an amendment period with a temporary increase in the commitment amount to $40,000,000 ("Amendment No. 2"), and on May 24, 2011 to increase the commitment fee ("Amendment No. 3"). The credit facility provides for interest on borrowings at a rate of 5% above the 30 day LIBOR rate, as announced by Reuter's, and fees based on borrowings under the credit facility and various operational and financial covenants, including a maximum leverage ratio and a maximum debt service ratio. The agreement had a maturity date of December 31, 2006, with a one-time six-month extension available at the option of the Company. The terms of the credit facility were agreed upon through negotiations and were approved by the Audit Committee (which committee is comprised of our three directors who are independent under applicable rules and regulations of the SEC and the NYSE MKT LLC) ("Audit Committee"). Subsequent to its exercise of extension rights, the Company on May 31, 2007 executed Amendment No.1 that provides for an extension of the maturity date by replacing the then current maturity date of June 30, 2007 with a 60-day notice of termination provision by which the lender can affect a termination of the commitment under the agreement and render all outstanding amounts due and payable. Amendment No. 1 also added a clean-up requirement to the agreement, which requires the borrower to repay in full all outstanding loans and have no outstanding obligations under the agreement for a 14 consecutive day period during each 365-day period. The clean-up requirement for the current 365-day period was satisfied on July 9, 2013. | |
On February 17, 2011, the Company executed Amendment No. 2 which provides for a temporary modification of certain provisions of the credit facility during a period commencing with the date of execution and ending on July 31, 2012 (the "Amendment Period"), subject to extension. During the Amendment Period, certain provisions of the facility were modified and included: an increase in the amount of the commitment from $20,000,000 to $40,000,000; elimination of the leverage ratio covenant and clean-up requirement (each as defined in the revolving credit facility agreement); and computation and payment of interest on a quarterly basis. At the conclusion of the Amendment Period, including extensions, the provisions modified pursuant to Amendment No. 2 reverted back to the provisions of the revolving credit facility agreement prior to the Amendment Period. | |
On May 24, 2011, the Company executed Amendment No. 3 which limits the total commitment fee provided for in the agreement to be no greater than $400,000 in the aggregate. | |
On July 31, 2012, the provisions of the Amendment Period, as described above, expired as the Company did not exercise the extension provision to the Amendment Period of the revolving credit facility, as provided for in Amendment No. 2. As a result, the specific provisions, which had been modified pursuant to Amendment No. 2, reverted back to the original provisions of the revolving credit facility agreement prior to the Amendment Period. | |
During the nine months ended September 30, 2013 and 2012, the Company borrowed $1,627,000 and $1,691,000, respectively, under the revolving credit facility and repaid $1,627,000 and $7,349,422 of advances, respectively, during the same periods. The Company incurred interest charges of $32,981 and $146,653 related to the credit facility during the nine months ended September 30, 2013 and 2012, respectively. The Company did not pay any commitment fees during the nine months ended September 30, 2013 or 2012. There was no outstanding balance under the credit facility as of September 30, 2013 and December 31, 2012. | |
The Company determines the fair value of the revolving credit facility in accordance with authoritative guidance related to fair value measurement. The Company has determined that as a result of the 60-day termination notice provision of the revolving credit facility that requires payment of all outstanding balances upon notification by the lender (other observable inputs or Level 3 inputs, as defined by the authoritative guidance), that the fair value of the revolving credit facility approximated the outstanding principal balance of the revolving credit facility at September 30, 2013 and December 31, 2012. |
Note_Payable_Other_Notes
Note Payable - Other (Notes) (2020 Lawrence [Member]) | 9 Months Ended |
Sep. 30, 2013 | |
2020 Lawrence [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt Disclosure [Text Block] | ' |
NOTE PAYABLE - OTHER | |
On June 12, 2012, Zocalo, the managing member of JV 2020 Lawrence, entered into a financing agreement with the State of Colorado, through the Colorado Energy Office, for $1,250,000 (the "Colorado Energy Loan") to be used for inclusion of energy efficient components in the construction of the 2020 Lawrence Project. The Colorado Energy Loan has a term of 10 years and an interest rate of 5% per annum. The Colorado Energy Loan will mature on June 11, 2022. Zocalo has pledged all of its membership interests, both currently owned and subsequently acquired, in JV 2020 Lawrence as collateral for the Colorado Energy Loan. Pursuant to an authorizing resolution adopted by the members of JV 2020 Lawrence, Zocalo advanced the proceeds of the Colorado Energy Loan, as received from time to time, to JV 2020 Lawrence for application to the 2020 Lawrence Project. Such advances to JV 2020 Lawrence will not be considered contributions of capital to JV 2020 Lawrence. Also, Zocalo is authorized and directed to cause JV 2020 Lawrence to repay such advances, including principal and interest, made by Zocalo at such times as required by the Colorado Energy Loan. Any payments pursuant to the authorizing resolution shall be payable only from surplus cash of the 2020 Lawrence Project as defined by HUD in the governing regulatory agreement of the primary financing on the project as described above. If surplus cash is not available to satisfy Zocalo's payment obligations under the Colorado Energy Loan, then either Zocalo or BIR 2020 may issue a funding notice, pursuant to the JV 2020 Lawrence limited liability company agreement, for payment obligation amounts due and payable. As of September 30, 2013 and December 31, 2012, the outstanding balance on the Colorado Energy Loan was $1,250,000. | |
Based on the fair value analysis using the same method as described in Note 4 - Mortgage Notes Payable, the Company has determined that the fair value of the "Note payable - other" approximated $1,328,000 and $1,357,000 at September 30, 2013 and December 31, 2012, respectively. |
Equity_Deficit
Equity / Deficit | 9 Months Ended |
Sep. 30, 2013 | |
EQUITY / DEFICIT [Abstract] | ' |
Equity / Deficit | ' |
EQUITY / DEFICIT | |
On March 25, 2003, the Board of Directors (“Board”) declared a dividend at an annual rate of 9%, on the stated liquidation preference of $25 per share of the outstanding 9% Series A Cumulative Redeemable Preferred Stock ("Preferred Shares") which is payable quarterly in arrears, on February 15, May 15, August 15, and November 15 of each year to shareholders of record in the amount of $0.5625 per share per quarter. For the nine months ended September 30, 2013 and 2012, the Company’s aggregate dividends on the Preferred Shares totaled $5,025,582 and $5,025,583, respectively, of which $837,607 was payable and included on the Consolidated Balance Sheets in "Dividends and distributions payable" as of September 30, 2013 and December 31, 2012, respectively. | |
During the nine months ended September 30, 2013 and 2012, the Company made tax payments of $300,000 and $0, respectively, on behalf of the noncontrolling interest holders in properties as required by the taxing authorities of the jurisdictions in which the Company owns and operates properties, of which $0 and $300,000 was payable and included on the Consolidated Balance Sheets in "Dividends and distributions payable" as of September 30, 2013 and December 31, 2012, respectively. | |
During the nine months ended September 30, 2013 and 2012, the Company made tax payments of $1,184,138 and $1,685,796, respectively, on behalf of the noncontrolling interest partners in Operating Partnership as required by the taxing authorities of the jurisdictions in which the Company owns and operates properties. The payments were treated as distributions attributable to the noncontrolling interest in Operating Partnership and are reflected in the Consolidated Statements of Changes in Deficit. | |
During the nine months ended September 30, 2012, the Board did not authorize the general partner of the Operating Partnership to distribute any quarterly distributions to the common general and common limited partners or a common dividend on the Company’s Class B common stock. | |
On August 6, 2013, the Board authorized the general partner of the Operating Partnership to make a special distribution of $12,000,000 from the proceeds of the sale of Walden Pond and Gables of Texas to the common general partner and noncontrolling interest partners in Operating Partnership. Also on August 6, 2013, the Board declared a common dividend of $0.203954 per share on the Company's Class B common stock in respect to the special distribution to the common general partner. On August 28, 2013, the Operating Partnership made a special distribution of $9,200,000 to the common general partner and noncontrolling interest partners in Operating Partnership. For the nine months ended September 30, 2013 and 2012, the Company’s aggregate distribution to noncontrolling interest partners in Operating Partnership totaled $11,713,200 and $0, respectively, of which $2,733,080 and $0 was payable and included on the Consolidated Balance Sheets in "Dividends and distributions payable" as of September 30, 2013 and December 31, 2012, respectively. | |
Concurrently with the Operating Partnership distributions on August 28, 2013, the common dividend was paid from the special distribution proceeds of the common general partner. For the nine months ended September 30, 2013 and 2012, the Company’s aggregate dividends on the Class B common stock totaled $286,800 and $0, respectively, of which $66,920 and $0 was payable and included on the Consolidated Balance Sheets in "Dividends and distributions payable" as of September 30, 2013 and December 31, 2012, respectively. | |
The Company’s policy to provide for common distributions is based on available cash and Board approval. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
EARNINGS PER SHARE | |||||||||||||||||
Net income (loss) per common share, basic and diluted, is computed as net income (loss) available to common shareholders divided by the weighted average number of common shares outstanding during the applicable period, basic and diluted. | |||||||||||||||||
The reconciliation of the basic and diluted earnings per common share for the three and nine months ended September 30, 2013 and 2012 follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Loss from continuing operations prior to adjustments | $ | (2,885,392 | ) | $ | (2,925,854 | ) | $ | (11,099,603 | ) | $ | (10,110,438 | ) | |||||
Add: | Net loss attributable to noncontrolling interest in Operating Partnership | $ | 4,488,677 | $ | 4,397,555 | — | 9,121,238 | ||||||||||
Less: | Preferred dividends | $ | (1,675,194 | ) | $ | (1,675,194 | ) | (5,025,582 | ) | (5,025,583 | ) | ||||||
Net income attributable to noncontrolling interest in properties | $ | (25,553 | ) | $ | (127,684 | ) | (40,361 | ) | (345,990 | ) | |||||||
Net income attributable to noncontrolling interest in Operating Partnership | $ | — | $ | — | (2,509,405 | ) | — | ||||||||||
Loss from continuing operations | $ | (97,462 | ) | $ | (331,177 | ) | $ | (18,674,951 | ) | $ | (6,360,773 | ) | |||||
Net income (loss) from discontinued operations | $ | (12,444 | ) | $ | 223,502 | $ | 18,736,394 | $ | 6,137,438 | ||||||||
Net income (loss) available to common shareholders | $ | (109,906 | ) | $ | (107,675 | ) | $ | 61,443 | $ | (223,335 | ) | ||||||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.07 | ) | $ | (0.24 | ) | $ | (13.28 | ) | $ | (4.52 | ) | |||||
Net income (loss) from discontinued operations attributable to the Company per common share, basic and diluted | $ | (0.01 | ) | $ | 0.16 | $ | 13.32 | $ | 4.36 | ||||||||
Net income (loss) available to common shareholders per common share, basic and diluted | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.04 | $ | (0.16 | ) | ||||||
Weighted average number of common shares outstanding, basic and diluted | 1,406,196 | 1,406,196 | 1,406,196 | 1,406,196 | |||||||||||||
Dividend declared per common share | $ | 0.203954 | $ | — | $ | 0.203954 | $ | — | |||||||||
For the nine months ended September 30, 2013 and 2012, the Company did not have any common stock equivalents; therefore basic and dilutive earnings per share were the same. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
The Company is party to certain legal actions arising in the ordinary course of its business, such as those relating to tenant issues. All such proceedings taken together are not expected to have a material adverse effect on the Company. While the resolution of these matters cannot be predicted with certainty, management believes that the final outcome of such legal proceedings and claims will not have a material adverse effect on the Company’s liquidity, financial position or results of operations. | |
The Company has a commitment to one joint venture multifamily development project as of September 30, 2013. The project is a 154-unit multifamily apartment development project in Walnut Creek, California (the "Walnut Creek Project"). The Company will own a 98% interest in the project once fully committed and its current total commitment in the joint venture is approximately $16.9 million. The Walnut Creek Project was delayed due to environmental and regulatory requirements. The Company is currently reviewing a revised development budget, which reflects revisions in construction costs and operating assumptions. The revised development budget and operating assumptions are subject to the review and approval of the Company's investment committee. The construction is projected to start in the first quarter of 2014. As of September 30, 2013, the Company has made capital contributions totaling approximately $1,286,000. The Company consolidates its investment in the Walnut Creek Project. |
Noncontrolling_Interest_in_Ope
Noncontrolling Interest in Operating Partnership | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP [Abstract] | ' | ||||||||||||||||
Noncontrolling Interest in Operating Partnership | ' | ||||||||||||||||
NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP | |||||||||||||||||
The following table sets forth the calculation of net income (loss) attributable to noncontrolling interest in the Operating Partnership for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | (2,897,836 | ) | $ | (2,702,352 | ) | $ | 7,636,791 | $ | (3,973,000 | ) | ||||||
Adjust: | Net income attributable to noncontrolling interest in properties | (25,553 | ) | (127,684 | ) | (40,361 | ) | (345,990 | ) | ||||||||
Income (loss) before noncontrolling interest in Operating Partnership | (2,923,389 | ) | (2,830,036 | ) | 7,596,430 | (4,318,990 | ) | ||||||||||
Preferred dividend | (1,675,194 | ) | (1,675,194 | ) | (5,025,582 | ) | (5,025,583 | ) | |||||||||
Income (loss) available to common equity | (4,598,583 | ) | (4,505,230 | ) | 2,570,848 | (9,344,573 | ) | ||||||||||
Noncontrolling interest in Operating Partnership | 97.61 | % | 97.61 | % | 97.61 | % | 97.61 | % | |||||||||
Net income (loss) attributable to noncontrolling interest in Operating Partnership | $ | (4,488,677 | ) | $ | (4,397,555 | ) | $ | 2,509,405 | $ | (9,121,238 | ) | ||||||
The following table sets forth a summary of the items affecting the noncontrolling interest in the Operating Partnership: | |||||||||||||||||
For the nine months ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | (89,708,267 | ) | $ | (76,785,818 | ) | |||||||||||
Net income (loss) attributable to noncontrolling interest in Operating Partnership | 2,509,405 | (9,121,238 | ) | ||||||||||||||
Distributions to noncontrolling interest partners in Operating Partnership | (12,897,338 | ) | (1,685,796 | ) | |||||||||||||
Balance at end of period | $ | (100,096,200 | ) | $ | (87,592,852 | ) | |||||||||||
Distributions of $1,685,796 have been adjusted from Accumulated Deficit to Noncontrolling Interest-Operating Partnership to properly reflect such amounts within the Consolidated Statement of Changes in Deficit for the nine months ended September 30, 2012. Management has determined such adjustment to be immaterial to the overall financial statements. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the noncontrolling interest in the Operating Partnership consisted of 5,242,223 Operating Partnership units held by parties other than the Company. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions | ' | |||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
Amounts accrued or paid to the Company’s affiliates are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Property management fees | $ | 781,559 | $ | 886,392 | $ | 2,418,068 | $ | 2,612,471 | ||||||||
Expense reimbursements | 60,228 | 53,325 | 159,035 | 159,975 | ||||||||||||
Salary reimbursements | 2,083,615 | 2,410,538 | 6,633,072 | 7,414,115 | ||||||||||||
Asset management fees | 407,913 | 412,315 | 1,223,740 | 1,236,945 | ||||||||||||
Incentive advisory fee | 423,153 | 173,217 | 1,796,933 | 1,973,195 | ||||||||||||
Construction management fees | 87,925 | 73,018 | 207,043 | 114,105 | ||||||||||||
Development fees | — | 69,705 | 69,715 | 209,115 | ||||||||||||
Interest on revolving credit facility | — | 31,745 | 32,981 | 146,653 | ||||||||||||
Total | $ | 3,844,393 | $ | 4,110,255 | $ | 12,540,587 | $ | 13,866,574 | ||||||||
Amounts due to affiliates of $2,051,898 and $3,446,460 are included in “Due to affiliates, net” at September 30, 2013 and December 31, 2012, respectively, and represent intercompany development fees, expense reimbursements, asset management fees and shared services, which consist of amounts due to affiliates of $4,917,567 and $6,505,338 at September 30, 2013 and December 31, 2012, respectively, and amounts due from affiliates of $2,865,669 and $3,058,878 at September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||
The Company pays property management fees to an affiliate, Berkshire Advisor, for property management services. The fees are payable at a rate of 4% of gross income. The Company incurred $2,418,068 and $2,612,471 of property management fees in the nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
The Company also reimburses affiliates for certain expenses incurred in connection with the operation of the properties, including administrative expenses and salary reimbursements. | ||||||||||||||||
The Company reimburses an affiliate, Berkshire Advisor, for overhead expenses related to legal and tax services. The Company incurred $159,035 and $159,975 of expense reimbursements during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
The Company reimburses an affiliate, Berkshire Advisor, for payroll expenses related to accounting services and property operations. The Company incurred $6,633,072 and $7,414,115 of salary reimbursements during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
The Company pays Berkshire Advisor a fixed annual asset management fee equal to 0.40%, up to a maximum of $1,600,000 in any calendar year, of the purchase price of real estate properties owned by the Company, as adjusted from time to time to reflect the then current fair market value of the properties. Annual asset management fees earned by the affiliate in excess of the $1,600,000 maximum payable by the Company represent fees attributable to and paid by the noncontrolling partners in the properties. As discussed below, in addition to the fixed fee, effective January 1, 2010, the Company may also pay Berkshire Advisor an incentive advisory fee based on increases in value of the Company that would not be subject to the $1,600,000 maximum. | ||||||||||||||||
On November 12, 2009, the Audit Committee and the Board of the Company approved an amendment to the advisory services agreement with Berkshire Advisor which included an incentive advisory fee component to the existing asset management fees payable to Berkshire Advisor (the "Advisory Services Amendment"). The Advisory Services Amendment became effective January 1, 2010 and provides for an incentive advisory fee based on the increase in fair value of the Company, as calculated and approved by management, over the base value established as of December 31, 2009 ("Base Value"). The Company is required to accrue incentive advisory fees payable to Berkshire Advisor up to 12% of the increase in fair value of the Company above the established Base Value. The Company has recorded $1,796,933 and $1,973,195 of incentive advisory fees during the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and December 31, 2012, the accrued liability of $7,592,536 and $6,634,261, respectively, was included in "Due to affiliate, incentive advisory fees" on the Consolidated Balance Sheets. Payments from the plan will approximate the amounts Berkshire Advisor pays to its employees. Payments to employees by Berkshire Advisor pursuant to the plan are generally paid over a four-year period in quarterly installments. Additional limits have been placed on the total amount of payments that can be made by the Company in any given year, with interest accruing at the rate of 7% on any payments due but not yet paid. The Company made $838,657 and $0 of incentive advisory fee payments during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
The Company pays acquisition fees to an affiliate, Berkshire Advisor, for acquisition services. These fees are payable upon the closing of an acquisition of real property. The fee is equal to 1% of the purchase price of any new property acquired directly or indirectly by the Company. The purchase price is defined as the capitalized basis of an asset under GAAP, including renovations or new construction costs, or other items paid or received that would be considered an adjustment to basis. The purchase price does not include acquisition fees and capital costs of a recurring nature. The Company did not make any acquisitions during the nine months ended September 30, 2013 and 2012. | ||||||||||||||||
The Company pays a construction management fee to an affiliate, Berkshire Advisor, for services related to the management and oversight of renovation and rehabilitation projects at its properties. The Company paid or accrued $207,043 and $114,105 in construction management fees for the nine months ended September 30, 2013 and 2012, respectively. The fees are capitalized as part of the project cost in the year they are incurred. | ||||||||||||||||
The Company pays development fees to an affiliate, Berkshire Residential Development, L.L.C. ("BRD"), for property development services. The fees were based on the project’s development/construction costs. During the nine months ended September 30, 2013 and 2012, the Company incurred $69,715 and $209,115, respectively, on the 2020 Lawrence Project. As of September 30, 2013, $557,650 has been paid to BRD and construction is completed. The Company did not incur any development fees on the Walnut Creek Project or the NoMa Project to BRD for the nine months ended September 30, 2013 and 2012. | ||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the Company borrowed $1,627,000 and $1,691,000, respectively, under the revolving credit facility and repaid $1,627,000 and $7,349,422 of advances, respectively, during the same periods. The Company incurred interest of $32,981 and $146,653 related to the credit facility during the nine months ended September 30, 2013 and 2012, respectively. The Company did not pay any commitment fees during the nine months ended September 30, 2013 or 2012. There was no outstanding balance under the credit facility as of September 30, 2013 and December 31, 2012. | ||||||||||||||||
Related party arrangements are approved by the independent directors of the Company and are evidenced by a written agreement between the Company and the affiliated entity providing the services. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
LEGAL PROCEEDINGS [Abstract] | ' |
Legal Proceedings | ' |
LEGAL PROCEEDINGS | |
The Company is party to certain legal actions arising in the ordinary course of its business, such as those relating to tenant issues. All such proceedings taken together are not expected to have a material adverse effect on the Company. While the resolution of these matters cannot be predicted with certainty, management believes that the final outcome of such legal proceedings and claims will not have a material adverse effect on the Company’s liquidity, financial position or results of operations. The Company is not aware of any proceedings contemplated by governmental authorities. |
Proforma_Condensed_Financial_I
Proforma Condensed Financial Information | 9 Months Ended |
Sep. 30, 2013 | |
PROFORMA CONDENSED FINANCIAL INFORMATION (UNAUDITED) [Abstract] | ' |
Proforma Condensed Financial Information | ' |
PROFORMA CONDENSED FINANCIAL INFORMATION | |
During the nine months ended September 30, 2013 and 2012, the Company did not acquire any properties deemed to be individually significant in accordance with Regulation S-X, Rule 3-14 “Special Instructions for Real Estate Operations to be Acquired”. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Event [Line Items] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENTS | |
The first and second mortgages on the Berkshires of Columbia property were scheduled to mature on November 1, 2013. The Company exercised the extension options available under the terms of the loans to extend the maturity dates from November 1, 2013 to November 1, 2014. On November 1, 2013, the mortgages were converted to adjustable rate mortgages with a variable interest rate of LIBOR plus 2.40% until the extended maturity date of November 1, 2014. | |
On November 1, 2013, the Company through its joint venture partnership for the Walnut Creek Project, acquired the land associated with the development project. The purchase price was $5.6 million and the Company assumed the seller's outstanding loan in the amount of $4.8 million. The transaction was subject to normal prorations and adjustments. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2011, the Financial Accounting Standard Board ("FASB") issued Accounting Standards Update ("ASU") 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 clarifies some existing concepts, eliminates wording differences between accounting principles generally accepted in the United States of America ("GAAP") and International Financial Reporting Standards ("IFRS"), and in some limited cases, changes some principles to achieve convergence between GAAP and IFRS. ASU 2011-04 results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 became effective for the Company on January 1, 2012. The adoption of ASU 2011-04 did not have a material effect on the Company's operating results, financial position, or disclosures. | |
In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of equity. In December 2011, the FASB issued ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05, which deferred the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement. Both ASU 2011-05 and ASU 2011-12 became effective for the Company on January 1, 2012. The adoption of ASU 2011-05 and ASU 2011-12 did not have any effect on the Company's operating results, financial position, or disclosures. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period balances have been reclassified in order to conform to the current period presentation. | |
Out of period adjustment [Policy Text Block] | 'Out of period adjustmentsDuring the third quarter of fiscal 2012, the Company recorded out of period adjustments that (i) decreased interest expense by an aggregate of $341,368 to reflect additional capitalization of interest relating to the three month periods ended March 31, 2012 and June 30, 2012 of $154,356 and $187,012, respectively, and (ii) reduced incentive advisory fees expense by $90,235 relating to an over accrual for such expenses during the three month period ended June 30, 2012. B The cumulative effect of out of period adjustments for the year ended December 31, 2012 was a $431,603 decrease in the net loss. B The Company has determined that these adjustments did not have an impact on any other prior annual period and were not material to any other prior interim periods, and the resulting correction is not material. Distributions of $1,685,796 have been adjusted from Accumulated Deficit to Noncontrolling Interest-Operating Partnership to properly reflect such amounts within the Consolidated Statement of Changes in Deficit for the nine months ended SeptemberB 30, 2012. Management has determined such adjustment to be immaterial to the overall financial statements. |
Multifamily_Apartment_Communit1
Multifamily Apartment Communities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
MULTIFAMILY APARTMENT COMMUNITIES [Abstract] | ' | |||||||||||||||
Schedule of Real Estate and Accumulated Depreciation | ' | |||||||||||||||
The following summarizes the carrying value of the Company’s multifamily apartment communities: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Land | $ | 60,871,969 | $ | 63,749,991 | ||||||||||||
Buildings, improvement and personal property | 554,223,320 | 575,074,865 | ||||||||||||||
Multifamily apartment communities | 615,095,289 | 638,824,856 | ||||||||||||||
Accumulated depreciation | (235,968,144 | ) | (235,825,752 | ) | ||||||||||||
Multifamily apartment communities, net | $ | 379,127,145 | $ | 402,999,104 | ||||||||||||
Schedule of Discontinued Operations, Income Statement | ' | |||||||||||||||
The operating results of discontinued operations for the three and nine months ended September 30, 2013 and 2012 are presented in the following table. | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue: | ||||||||||||||||
Rental | $ | 5,203 | $ | 2,902,238 | $ | 2,020,361 | $ | 9,063,449 | ||||||||
Utility reimbursement | — | 157,046 | 230,542 | 473,964 | ||||||||||||
Other | 52,604 | 140,063 | 297,838 | 438,933 | ||||||||||||
Total revenue | 57,807 | 3,199,347 | 2,548,741 | 9,976,346 | ||||||||||||
Expenses: | ||||||||||||||||
Operating | 37,440 | 937,408 | 810,822 | 3,053,481 | ||||||||||||
Maintenance | 7,697 | 266,331 | 136,819 | 719,375 | ||||||||||||
Real estate taxes | 23,097 | 292,105 | 288,619 | 1,009,645 | ||||||||||||
General and administrative | — | 17,394 | 31,663 | 37,529 | ||||||||||||
Management fees | 2,017 | 127,948 | 96,567 | 390,992 | ||||||||||||
Depreciation | — | 784,645 | 605,122 | 2,510,270 | ||||||||||||
Interest, inclusive of amortization of deferred financing fees | — | 550,014 | 527,986 | 2,699,013 | ||||||||||||
Loss on extinguishment of debt | — | — | 3,807 | 40,813 | ||||||||||||
Total expenses | 70,251 | 2,975,845 | 2,501,405 | 10,461,118 | ||||||||||||
Income (loss) from discontinued operations | $ | (12,444 | ) | $ | 223,502 | $ | 47,336 | $ | (484,772 | ) | ||||||
Investment_in_Unconsolidated_M1
Investment in Unconsolidated Multifamily Entities (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | ' | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | |||||||||||||||
Equity Method Investments, Summary of Balance Sheet Information | ' | |||||||||||||||
The summarized statement of assets, liabilities and partners’ capital (deficit) of BVF is as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Multifamily apartment communities, net | $ | 751,632,874 | $ | 807,747,897 | ||||||||||||
Cash and cash equivalents | 17,657,099 | 16,851,009 | ||||||||||||||
Other assets | 19,309,148 | 16,927,659 | ||||||||||||||
Total assets | $ | 788,599,121 | $ | 841,526,565 | ||||||||||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||||||||||
Mortgage notes payable | $ | 768,087,440 | $ | 800,968,937 | ||||||||||||
Revolving credit facility | 16,300,000 | 16,300,000 | ||||||||||||||
Other liabilities | 24,733,784 | 22,050,147 | ||||||||||||||
Noncontrolling interest | (13,302,467 | ) | (9,478,084 | ) | ||||||||||||
Partners’ capital (deficit) | (7,219,636 | ) | 11,685,565 | |||||||||||||
Total liabilities and partners’ capital (deficit) | $ | 788,599,121 | $ | 841,526,565 | ||||||||||||
Company’s share of partners’ capital (deficit) | $ | (505,428 | ) | $ | 818,078 | |||||||||||
Basis differential (1) | 604,395 | 604,395 | ||||||||||||||
Carrying value of the Company’s investment in unconsolidated limited partnership (2) | $ | 98,967 | $ | 1,422,473 | ||||||||||||
-1 | This amount represents the difference between the Company’s investment in BVF and its share of the underlying equity in the net assets of BVF (adjusted to conform with GAAP). At September 30, 2013 and December 31, 2012, the differential related mainly to $583,240 which represents the Company’s share of syndication costs incurred by BVF, which was not an item required to be funded via a capital investment by the Company. | |||||||||||||||
-2 | Per the partnership agreement of BVF, the Company’s liability is limited to its investment in BVF. The Company does not guarantee any third-party debt held by BVF. The Company has fully funded its obligations under the partnership agreement as of September 30, 2013 and has no commitment to make additional contributions to BVF. | |||||||||||||||
Equity Method Investments, Summary of Statement of Operations | ' | |||||||||||||||
The summarized statements of operations of BVF for the three and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | 34,116,230 | $ | 32,825,227 | $ | 101,002,262 | $ | 101,162,295 | ||||||||
Expenses | (42,051,265 | ) | (43,526,428 | ) | (125,568,161 | ) | (136,137,762 | ) | ||||||||
Gain on property sales and extinguishment of debt (2) | 14,339,915 | 615,203 | 14,261,091 | 28,742,497 | ||||||||||||
Noncontrolling interest | 1,196,501 | 1,683,415 | 3,799,608 | 5,183,466 | ||||||||||||
Net income (loss) attributable to investment | $ | 7,601,381 | $ | (8,402,583 | ) | $ | (6,505,200 | ) | $ | (1,049,504 | ) | |||||
Equity in income (loss) of unconsolidated limited partnership (1)(2) | $ | 532,154 | $ | (588,242 | ) | $ | (455,413 | ) | $ | (73,472 | ) | |||||
-1 | There were no impairment indicators or impairment writeoffs in the nine months ended September 30, 2013 or 2012. | |||||||||||||||
The Company has determined that its valuation of the real estate was categorized within Level 3 of the fair value hierarchy in accordance with ASC 820-10, as it utilized significant unobservable inputs in its assessment. | ||||||||||||||||
-2 | During the nine months ended September 30, 2012, BVF recorded a net gain on the disposition of eight properties. The gain on the sale was $28,742,497, of which the Company's share was approximately $2,012,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended September 30, 2012. | |||||||||||||||
During the nine months ended September 30, 2013, BVF recorded a net gain on the disposition of one property. The gain on the sale was $14,261,091, of which the Company's share was approximately $998,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended September 30, 2013. | ||||||||||||||||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ' | |||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | |||||||||||||||
Equity Method Investments, Summary of Balance Sheet Information | ' | |||||||||||||||
The summarized statement of assets, liabilities and members’ capital of NoMa JV is as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
(unaudited) | (audited) | |||||||||||||||
ASSETS | ||||||||||||||||
Multifamily apartment communities, net | $ | 127,434,358 | $ | 114,349,590 | ||||||||||||
Cash and cash equivalents | 1,071,560 | 565,453 | ||||||||||||||
Other assets | 631,377 | 738,983 | ||||||||||||||
Total assets | $ | 129,137,295 | $ | 115,654,026 | ||||||||||||
LIABILITIES AND MEMBERS’ CAPITAL | ||||||||||||||||
Mortgage note payable | $ | 79,632,107 | $ | 63,413,844 | ||||||||||||
Other liabilities | 6,597,332 | 5,419,184 | ||||||||||||||
Noncontrolling interest | 4,290,786 | 4,682,100 | ||||||||||||||
Members’ capital | 38,617,070 | 42,138,898 | ||||||||||||||
Total liabilities and members’ capital | $ | 129,137,295 | $ | 115,654,026 | ||||||||||||
Company’s share of members’ capital | $ | 12,872,356 | $ | 14,046,299 | ||||||||||||
Basis differential (1) | $ | 1,684,081 | $ | 1,405,152 | ||||||||||||
Carrying value of the Company’s investment in unconsolidated limited liability company (2) | $ | 14,556,437 | $ | 15,451,451 | ||||||||||||
-1 | This amount represents capitalized interest, net of amortization, pursuant to ASC 835-20, related to the Company's equity investment in NoMa JV. The capitalized interest was computed on the amounts borrowed by the Company to finance its investment in NoMa JV and was not an item required to be funded via a capital investment in NoMa JV. | |||||||||||||||
-2 | Per the limited liability company agreement of NoMa JV, the Company's liability is limited to its investment in NoMa JV. The Company has fully funded its maximum obligation under the limited liability company agreement as of September 30, 2013 and has no commitment to make additional contributions to NoMa JV. | |||||||||||||||
Equity Method Investments, Summary of Statement of Operations | ' | |||||||||||||||
The summarized statements of operations of NoMa JV for the three and nine months ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue | $ | 1,522,546 | $ | 1,556 | $ | 2,804,862 | $ | 1,556 | ||||||||
Expenses | (3,290,569 | ) | (217,783 | ) | (6,718,005 | ) | (576,220 | ) | ||||||||
Noncontrolling interest | 176,802 | 21,622 | 391,314 | 57,466 | ||||||||||||
Net loss attributable to investment | $ | (1,591,221 | ) | $ | (194,605 | ) | $ | (3,521,829 | ) | $ | (517,198 | ) | ||||
Equity in loss of unconsolidated limited liability company | $ | (530,407 | ) | $ | (64,868 | ) | $ | (1,173,943 | ) | $ | (172,399 | ) | ||||
Amortization of basis | (26,246 | ) | — | (26,246 | ) | — | ||||||||||
Adjusted equity in loss of unconsolidated limited liability company | $ | (556,653 | ) | $ | (64,868 | ) | $ | (1,200,189 | ) | $ | (172,399 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||||||
The reconciliation of the basic and diluted earnings per common share for the three and nine months ended September 30, 2013 and 2012 follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Loss from continuing operations prior to adjustments | $ | (2,885,392 | ) | $ | (2,925,854 | ) | $ | (11,099,603 | ) | $ | (10,110,438 | ) | |||||
Add: | Net loss attributable to noncontrolling interest in Operating Partnership | $ | 4,488,677 | $ | 4,397,555 | — | 9,121,238 | ||||||||||
Less: | Preferred dividends | $ | (1,675,194 | ) | $ | (1,675,194 | ) | (5,025,582 | ) | (5,025,583 | ) | ||||||
Net income attributable to noncontrolling interest in properties | $ | (25,553 | ) | $ | (127,684 | ) | (40,361 | ) | (345,990 | ) | |||||||
Net income attributable to noncontrolling interest in Operating Partnership | $ | — | $ | — | (2,509,405 | ) | — | ||||||||||
Loss from continuing operations | $ | (97,462 | ) | $ | (331,177 | ) | $ | (18,674,951 | ) | $ | (6,360,773 | ) | |||||
Net income (loss) from discontinued operations | $ | (12,444 | ) | $ | 223,502 | $ | 18,736,394 | $ | 6,137,438 | ||||||||
Net income (loss) available to common shareholders | $ | (109,906 | ) | $ | (107,675 | ) | $ | 61,443 | $ | (223,335 | ) | ||||||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.07 | ) | $ | (0.24 | ) | $ | (13.28 | ) | $ | (4.52 | ) | |||||
Net income (loss) from discontinued operations attributable to the Company per common share, basic and diluted | $ | (0.01 | ) | $ | 0.16 | $ | 13.32 | $ | 4.36 | ||||||||
Net income (loss) available to common shareholders per common share, basic and diluted | $ | (0.08 | ) | $ | (0.08 | ) | $ | 0.04 | $ | (0.16 | ) | ||||||
Weighted average number of common shares outstanding, basic and diluted | 1,406,196 | 1,406,196 | 1,406,196 | 1,406,196 | |||||||||||||
Dividend declared per common share | $ | 0.203954 | $ | — | $ | 0.203954 | $ | — | |||||||||
Noncontrolling_Interest_in_Ope1
Noncontrolling Interest in Operating Partnership (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP [Abstract] | ' | ||||||||||||||||
Schedule of Calculation of Noncontrolling Interest | ' | ||||||||||||||||
The following table sets forth the calculation of net income (loss) attributable to noncontrolling interest in the Operating Partnership for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | (2,897,836 | ) | $ | (2,702,352 | ) | $ | 7,636,791 | $ | (3,973,000 | ) | ||||||
Adjust: | Net income attributable to noncontrolling interest in properties | (25,553 | ) | (127,684 | ) | (40,361 | ) | (345,990 | ) | ||||||||
Income (loss) before noncontrolling interest in Operating Partnership | (2,923,389 | ) | (2,830,036 | ) | 7,596,430 | (4,318,990 | ) | ||||||||||
Preferred dividend | (1,675,194 | ) | (1,675,194 | ) | (5,025,582 | ) | (5,025,583 | ) | |||||||||
Income (loss) available to common equity | (4,598,583 | ) | (4,505,230 | ) | 2,570,848 | (9,344,573 | ) | ||||||||||
Noncontrolling interest in Operating Partnership | 97.61 | % | 97.61 | % | 97.61 | % | 97.61 | % | |||||||||
Net income (loss) attributable to noncontrolling interest in Operating Partnership | $ | (4,488,677 | ) | $ | (4,397,555 | ) | $ | 2,509,405 | $ | (9,121,238 | ) | ||||||
Schedule of Noncontrolling Interest | ' | ||||||||||||||||
The following table sets forth a summary of the items affecting the noncontrolling interest in the Operating Partnership: | |||||||||||||||||
For the nine months ended | |||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance at beginning of period | $ | (89,708,267 | ) | $ | (76,785,818 | ) | |||||||||||
Net income (loss) attributable to noncontrolling interest in Operating Partnership | 2,509,405 | (9,121,238 | ) | ||||||||||||||
Distributions to noncontrolling interest partners in Operating Partnership | (12,897,338 | ) | (1,685,796 | ) | |||||||||||||
Balance at end of period | $ | (100,096,200 | ) | $ | (87,592,852 | ) |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Schedule of Related Party Transactions | ' | |||||||||||||||
Amounts accrued or paid to the Company’s affiliates are as follows: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Property management fees | $ | 781,559 | $ | 886,392 | $ | 2,418,068 | $ | 2,612,471 | ||||||||
Expense reimbursements | 60,228 | 53,325 | 159,035 | 159,975 | ||||||||||||
Salary reimbursements | 2,083,615 | 2,410,538 | 6,633,072 | 7,414,115 | ||||||||||||
Asset management fees | 407,913 | 412,315 | 1,223,740 | 1,236,945 | ||||||||||||
Incentive advisory fee | 423,153 | 173,217 | 1,796,933 | 1,973,195 | ||||||||||||
Construction management fees | 87,925 | 73,018 | 207,043 | 114,105 | ||||||||||||
Development fees | — | 69,705 | 69,715 | 209,115 | ||||||||||||
Interest on revolving credit facility | — | 31,745 | 32,981 | 146,653 | ||||||||||||
Total | $ | 3,844,393 | $ | 4,110,255 | $ | 12,540,587 | $ | 13,866,574 | ||||||||
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Aug. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 25, 2013 | Mar. 23, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | |
communities | communities | Walden and Gables [Member] | Riverbirch [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Accumulated deficit | Accumulated deficit | Accumulated deficit | Accumulated deficit | Accumulated deficit | Accumulated deficit | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | ||||
apartments | apartments | apartments | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | ||||||||||||
projects | projects | |||||||||||||||||||||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | ' | 20 | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | ' | 5,499 | ' | 5,499 | ' | ' | 210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Real Estate Development Projects | ' | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Equity Investments | ' | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REIT Required TaxableIncome Distribution Rate | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ($341,368) | $187,012 | $154,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive advisory fees | ' | -423,153 | -173,217 | -1,796,933 | -1,973,195 | ' | ' | -90,235 | 90,235 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (income) loss | ' | 2,897,836 | 2,702,352 | -7,636,791 | 3,973,000 | ' | ' | -431,603 | 277,247 | 154,356 | -5,087,025 | -4,802,248 | ' | ' | ' | ' | -2,509,405 | 9,121,238 | ' | ' | ' | ' |
Capitalization of interest | ' | ' | ' | 425,271 | 1,814,313 | ' | ' | 341,368 | -187,012 | -154,356 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -286,800 | 0 | 33,996 | 166,750 | 1,485,050 | 1,685,796 | -12,897,338 | -1,685,796 | -33,996 | -166,750 | -1,485,050 | -1,685,796 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross selling price | ' | ' | ' | $31,500,000 | $14,200,000 | $31,500,000 | $14,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multifamily_Apartment_Communit2
Multifamily Apartment Communities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Real Estate Investment Property, Net [Abstract] | ' | ' |
Land | $60,871,969 | $63,749,991 |
Buildings, improvement and personal property | 554,223,320 | 575,074,865 |
Multifamily apartment communities | 615,095,289 | 638,824,856 |
Accumulated depreciation | -235,968,144 | -235,825,752 |
Multifamily apartment communities, net | $379,127,145 | $402,999,104 |
Multifamily_Apartment_Communit3
Multifamily Apartment Communities : Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 23, 2012 | Nov. 05, 2012 | Nov. 30, 2012 | Jun. 25, 2013 | |
apartments | apartments | Riverbirch [Member] | Silver Hill & Arboretum [Member] | Arrowhead & Moorings [Member] | Walden and Gables [Member] | |||
apartments | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 5,499 | ' | 5,499 | ' | 210 | ' | ' | ' |
Gross selling price | ' | ' | $31,500,000 | $14,200,000 | $14,200,000 | $25,425,000 | $37,000,000 | $31,500,000 |
Revenue: | ' | ' | ' | ' | ' | ' | ' | ' |
Rental | 5,203 | 2,902,238 | 2,020,361 | 9,063,449 | ' | ' | ' | ' |
Utility reimbursement | 0 | 157,046 | 230,542 | 473,964 | ' | ' | ' | ' |
Other | 52,604 | 140,063 | 297,838 | 438,933 | ' | ' | ' | ' |
Total revenue | 57,807 | 3,199,347 | 2,548,741 | 9,976,346 | ' | ' | ' | ' |
Expenses: | ' | ' | ' | ' | ' | ' | ' | ' |
Operating | 37,440 | 937,408 | 810,822 | 3,053,481 | ' | ' | ' | ' |
Maintenance | 7,697 | 266,331 | 136,819 | 719,375 | ' | ' | ' | ' |
Real estate taxes | 23,097 | 292,105 | 288,619 | 1,009,645 | ' | ' | ' | ' |
General and administrative | 0 | 17,394 | 31,663 | 37,529 | ' | ' | ' | ' |
Management fees | 2,017 | 127,948 | 96,567 | 390,992 | ' | ' | ' | ' |
Depreciation | 0 | 784,645 | 605,122 | 2,510,270 | ' | ' | ' | ' |
Interest, inclusive of deferred financing fees | 0 | 550,014 | 527,986 | 2,699,013 | ' | ' | ' | ' |
Loss on extinguishment of debt | 0 | 0 | 3,807 | 40,813 | ' | ' | ' | ' |
Total expenses | 70,251 | 2,975,845 | 2,501,405 | 10,461,118 | ' | ' | ' | ' |
Income (loss) from discontinued operations | ($12,444) | $223,502 | $47,336 | ($484,772) | ' | ' | ' | ' |
Investment_in_Unconsolidated_M2
Investment in Unconsolidated Multifamily Entities : Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Oct. 08, 2013 | Sep. 30, 2013 | Mar. 02, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 02, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 12, 2005 | Aug. 12, 2005 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 02, 2011 | Sep. 30, 2013 | |||||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Affiliated Entity [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Maximum [Member] | Gain (Loss) on Disposition of Property [Member] | Gain (Loss) on Disposition of Property [Member] | NOMA Residental West I, LLC [Member] | Capital Addition Purchase Commitments [Member] | ||||||||||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Washington, D.C. [Member] | ||||||||||||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Joint Venture [Member] | |||||||||||||||||||||||
properties | properties | apartments | |||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Equity Method Investment, Summarized Financial Information, Number of Properties Disposed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 8 | ' | ' | ||||
Gain on property sales and extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,339,915 | [1] | $615,203 | [1] | $14,261,091 | [1] | $28,742,497 | [1] | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Aggregate Cost | ' | ' | ' | ' | ' | ' | ' | ' | 14,520,000 | ' | 14,520,000 | ' | ' | 23,400,000 | ' | 23,400,000 | ' | 23,400,000 | 25,000,000 | ' | ' | ' | ' | ||||
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | 67.00% | 33.00% | ' | 33.00% | ' | 33.00% | 7.00% | ' | 7.00% | ' | ' | 7.00% | ' | ' | ' | ' | ||||
Equity Method Investment, Funding Percentage of Investment | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 100.00% | ' | ' | 100.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | ' | ' | ' | ' | ' | 3,983,426 | 2,268,243 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Equity Method Investment, Dividend or Distributions, Return of Capital Percentage of Funded Investment | ' | ' | ' | ' | ' | 17.00% | 9.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Distributions from investment in unconsolidated multifamily entities | ' | ' | 868,093 | 700,075 | ' | 1,715,183 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Equity in income (loss) of unconsolidated multifamily entities | -24,499 | -653,110 | -1,655,602 | -245,871 | ' | ' | ' | ' | -556,653 | -64,868 | -1,200,189 | -172,399 | ' | 532,154 | [1],[2] | -588,242 | [1],[2] | -455,413 | [1],[2] | -73,472 | [1],[2] | ' | ' | 998,000 | 2,012,000 | ' | ' |
Equity Method Investment, Business Acquisition, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ||||
Equity Method Investment, Number of Units in Real Estate Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 603 | ' | ||||
Equity Method Investment, Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ||||
Equity Method Investment, Accumulated Capitalized Interest Costs | ' | ' | ' | ' | ' | ' | ' | ' | 1,710,327 | ' | 1,710,327 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Commitments and contingencies | $0 | ' | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,520,000 | ||||
[1] | During the nine months ended SeptemberB 30, 2012, BVF recorded a net gain on the disposition of eight properties. The gain on the sale was $28,742,497, of which the Company's share was approximately $2,012,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended SeptemberB 30, 2012. During the nine months ended SeptemberB 30, 2013, BVF recorded a net gain on the disposition of one property. The gain on the sale was $14,261,091, of which the Company's share was approximately $998,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended SeptemberB 30, 2013. | ||||||||||||||||||||||||||
[2] | There were no impairment indicators or impairment writeoffs in the nine months ended SeptemberB 30, 2013 or 2012.The Company has determined that its valuation of the real estate was categorized within Level 3 of the fair value hierarchy in accordance with ASC 820-10, as it utilized significant unobservable inputs in its assessment. |
Investment_in_Unconsolidated_M3
Investment in Unconsolidated Multifamily Entities : Summarized Balance Sheets (Details) (Joint Venture [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Multifamily apartment communities, net | $751,632,874 | $807,747,897 | ||
Cash and cash equivalents | 17,657,099 | 16,851,009 | ||
Other assets | 19,309,148 | 16,927,659 | ||
Total assets | 788,599,121 | 841,526,565 | ||
LIABILITIES AND PARTNERS' CAPITAL | ' | ' | ||
Mortgage notes payable | 768,087,440 | 800,968,937 | ||
Revolving credit facility | 16,300,000 | 16,300,000 | ||
Other liabilities | 24,733,784 | 22,050,147 | ||
Noncontrolling interest | -13,302,467 | -9,478,084 | ||
Partners' capital | -7,219,636 | 11,685,565 | ||
Total liabilities and partners' capital | 788,599,121 | 841,526,565 | ||
Company's share of partners' capital | -505,428 | 818,078 | ||
Basis differential | 604,395 | [1] | 604,395 | [1] |
Carrying value of the Company's investment | 98,967 | [2] | 1,422,473 | [2] |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Syndication Costs | 583,240 | 583,240 | ||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Multifamily apartment communities, net | 127,434,358 | 114,349,590 | ||
Cash and cash equivalents | 1,071,560 | 565,453 | ||
Other assets | 631,377 | 738,983 | ||
Total assets | 129,137,295 | 115,654,026 | ||
LIABILITIES AND PARTNERS' CAPITAL | ' | ' | ||
Mortgage notes payable | 79,632,107 | 63,413,844 | ||
Other liabilities | 6,597,332 | 5,419,184 | ||
Noncontrolling interest | 4,290,786 | 4,682,100 | ||
Partners' capital | 38,617,070 | 42,138,898 | ||
Total liabilities and partners' capital | 129,137,295 | 115,654,026 | ||
Company's share of partners' capital | 12,872,356 | 14,046,299 | ||
Basis differential | 1,684,081 | [3] | 1,405,152 | [3] |
Carrying value of the Company's investment | $14,556,437 | [4] | $15,451,451 | [4] |
[1] | This amount represents the difference between the Companybs investment in BVF and its share of the underlying equity in the net assets of BVF (adjusted to conform with GAAP). At SeptemberB 30, 2013 and DecemberB 31, 2012, the differential related mainly to $583,240 which represents the Companybs share of syndication costs incurred by BVF, which was not an item required to be funded via a capital investment by the Company. | |||
[2] | Per the partnership agreement of BVF, the Companybs liability is limited to its investment in BVF. The Company does not guarantee any third-party debt held by BVF. The Company has fully funded its obligations under the partnership agreement as of SeptemberB 30, 2013 and has no commitment to make additional contributions to BVF. | |||
[3] | This amount represents capitalized interest, net of amortization, pursuant to ASC 835-20, related to the Company's equity investment in NoMa JV. The capitalized interest was computed on the amounts borrowed by the Company to finance its investment in NoMa JV and was not an item required to be funded via a capital investment in NoMa JV. | |||
[4] | Per the limited liability company agreement of NoMa JV, the Company's liability is limited to its investment in NoMa JV. The Company has fully funded its maximum obligation under the limited liability company agreement as of SeptemberB 30, 2013 and has no commitment to make additional contributions to NoMa JV. |
Investment_in_Unconsolidated_M4
Investment in Unconsolidated Multifamily Entities : Statement of Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Equity in income (loss) of unconsolidated multifamily entities | ($24,499) | ($653,110) | ($1,655,602) | ($245,871) | ||||
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Revenue | 34,116,230 | 32,825,227 | 101,002,262 | 101,162,295 | ||||
Expenses | -42,051,265 | -43,526,428 | -125,568,161 | -136,137,762 | ||||
Gain on property sales and extinguishment of debt | 14,339,915 | [1] | 615,203 | [1] | 14,261,091 | [1] | 28,742,497 | [1] |
Noncontrolling interest | 1,196,501 | 1,683,415 | 3,799,608 | 5,183,466 | ||||
Net income (loss) attributable to investment | 7,601,381 | -8,402,583 | -6,505,200 | -1,049,504 | ||||
Equity in income (loss) of unconsolidated multifamily entities | 532,154 | [1],[2] | -588,242 | [1],[2] | -455,413 | [1],[2] | -73,472 | [1],[2] |
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Revenue | 1,522,546 | 1,556 | 2,804,862 | 1,556 | ||||
Expenses | -3,290,569 | -217,783 | -6,718,005 | -576,220 | ||||
Noncontrolling interest | 176,802 | 21,622 | 391,314 | 57,466 | ||||
Net income (loss) attributable to investment | -1,591,221 | -194,605 | -3,521,829 | -517,198 | ||||
Equity in income (loss) of unconsolidated mutlifamily entities, before amortization of basis | -530,407 | -64,868 | -1,173,943 | -172,399 | ||||
Income (Loss) from Equity Method Investment, amortization of basis | -26,246 | 0 | -26,246 | 0 | ||||
Equity in income (loss) of unconsolidated multifamily entities | ($556,653) | ($64,868) | ($1,200,189) | ($172,399) | ||||
[1] | During the nine months ended SeptemberB 30, 2012, BVF recorded a net gain on the disposition of eight properties. The gain on the sale was $28,742,497, of which the Company's share was approximately $2,012,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended SeptemberB 30, 2012. During the nine months ended SeptemberB 30, 2013, BVF recorded a net gain on the disposition of one property. The gain on the sale was $14,261,091, of which the Company's share was approximately $998,000 and is reflected in the "Equity in income (loss) of unconsolidated multifamily entities" for the nine months ended SeptemberB 30, 2013. | |||||||
[2] | There were no impairment indicators or impairment writeoffs in the nine months ended SeptemberB 30, 2013 or 2012.The Company has determined that its valuation of the real estate was categorized within Level 3 of the fair value hierarchy in accordance with ASC 820-10, as it utilized significant unobservable inputs in its assessment. |
Mortgage_Notes_Payable_Details
Mortgage Notes Payable (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2011 | Sep. 30, 2013 | |
JV 2020 Lawrence [Member] | JV 2020 Lawrence [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Debt Instrument, Borrowing Capacity, Amount | ' | ' | ' | $45,463,100 | ' |
Borrowings from mortgage notes payable | 2,770,663 | 22,645,466 | ' | ' | 2,770,663 |
Mortgage notes payable | 461,726,623 | ' | 478,185,998 | ' | 45,221,260 |
Debt Instrument, Payment Period | ' | ' | ' | '40 years | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 5.00% | ' |
Debt Instrument, Maturity Date | ' | ' | ' | 1-Feb-53 | ' |
Fair Value Measurements, Loan-to-Value Percentage Threshold for Further Stratification of Valuation Model | 80.00% | ' | ' | ' | ' |
Loans Payable, Fair Value Disclosure | $490,725,000 | ' | $543,557,000 | ' | ' |
Revolving_Credit_Facility_Affi1
Revolving Credit Facility - Affiliate (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 17, 2011 | |
Affiliated Entity [Member] | Line of Credit [Member] | Line of Credit [Member] | |||||
Maximum [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | $20,000,000 | $40,000,000 |
Line of Credit Facility, Interest Rate Description | ' | ' | ' | ' | ' | '5% above the 30 day LIBOR rate, as announced by Reuter's | ' |
Line of Credit, Termination Notice Period | ' | ' | ' | ' | ' | '60 days | ' |
Line of Credit Clean Up Requirement, Consecutive Days | ' | ' | ' | ' | ' | '14 days | ' |
Line of Credit, Clean Up Period Required | ' | ' | ' | ' | ' | '365 days | ' |
Line of Credit Facility, Commitment Fee Amount | ' | ' | ' | ' | 400,000 | ' | ' |
Proceeds from revolving credit facility - affiliate | ' | ' | 1,627,000 | 1,691,000 | ' | ' | ' |
Principal payments on revolving credit facility - affiliate | ' | ' | 1,627,000 | 7,349,422 | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $3,844,393 | $4,110,255 | $12,540,587 | $13,866,574 | ' | ' | ' |
Note_Payable_Other_Details
Note Payable - Other (Details) (USD $) | 0 Months Ended | ||
Jun. 12, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' |
Note payable - other | ' | $1,250,000 | $1,250,000 |
Zocalo [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Borrowing Capacity, Amount | 1,250,000 | ' | ' |
2020 Lawrence [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Payment Period | '10 years | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ' | ' |
Debt Instrument, Maturity Date | 11-Jun-22 | ' | ' |
Notes Payable, Fair Value Disclosure | ' | $1,328,000 | $1,357,000 |
Equity_Deficit_Details
Equity / Deficit (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Aug. 28, 2013 | Aug. 15, 2013 | Aug. 06, 2013 | 15-May-13 | Feb. 15, 2013 | Nov. 15, 2012 | Mar. 25, 2003 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred dividend | ' | ' | ' | ' | ' | ' | ' | $1,675,194 | $1,675,194 | $5,025,582 | $5,025,583 | ' |
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | ' | $0.56 | ' | $0.56 | $0.56 | $0.56 | ' | ' | ' | ' | ' | ' |
Adjustments Related to Tax Withholding for Sale of Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,184,138 | 1,685,796 | ' |
Preferred Stock, Liquidation Preference Per Share | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' |
Preferred Stock, Dividend Rate, Percentage | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,025,582 | 5,025,583 | ' |
Dividend and distributions payable | ' | ' | ' | ' | ' | ' | ' | 3,637,607 | ' | 3,637,607 | ' | 1,137,607 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | ' | ' | ' | ' | ' | ' | ' | $0.20 | $0 | $0.20 | $0 | ' |
Preferred Class A [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend and distributions payable | ' | ' | ' | ' | ' | ' | ' | 837,607 | 837,607 | 837,607 | 837,607 | 837,607 |
Common Class B | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | 286,800 | 0 | ' |
Dividend and distributions payable | ' | ' | ' | ' | ' | ' | ' | 66,920 | 0 | 66,920 | 0 | 0 |
Noncontrolling interest in properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend and distributions payable | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 300,000 |
Distribution Made to Member or Limited Partner, Cash Distributions Paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 0 | ' |
Noncontrolling interest in Operating Partnership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner, Cash Distributions Declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,713,200 | 0 | ' |
Dividend and distributions payable | ' | ' | ' | ' | ' | ' | ' | $2,733,080 | $0 | $2,733,080 | $0 | $0 |
Common Class B | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution Made to Member or Limited Partner [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | ' | ' | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Loss from continuing operations | ($2,885,392) | ($2,925,854) | ($11,099,603) | ($10,110,438) |
Net (income) loss attributable to noncontrolling interest in Operating Partnership | 4,488,677 | 4,397,555 | -2,509,405 | 9,121,238 |
Net income attributable to noncontrolling interest in properties | -25,553 | -127,684 | -40,361 | -345,990 |
Preferred dividend | -1,675,194 | -1,675,194 | -5,025,582 | -5,025,583 |
Income (Loss) from continuing operations attributable to the Company | -97,462 | -331,177 | -18,674,951 | -6,360,773 |
Net income (loss) from discontinued operations | -12,444 | 223,502 | 18,736,394 | 6,137,438 |
Net income (loss) available to common shareholders | ($109,906) | ($107,675) | $61,443 | ($223,335) |
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.07) | ($0.24) | ($13.28) | ($4.52) |
Net income (loss) from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.01) | $0.16 | $13.32 | $4.36 |
Net income (loss) available to common shareholders per common share, basic and diluted | ($0.08) | ($0.08) | $0.04 | ($0.16) |
Weighted average number of common shares outstanding, basic and diluted (shares) | 1,406,196 | 1,406,196 | 1,406,196 | 1,406,196 |
Common Stock, Dividends, Per Share, Declared | $0.20 | $0 | $0.20 | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 02, 2011 |
projects | Joint Venture [Member] | Joint Venture [Member] | Washington, D.C. [Member] | Walnut Creek, California [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ||
Capital Addition Purchase Commitments [Member] | Capital Addition Purchase Commitments [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | Joint Venture [Member] | |||
projects | projects | Capital Addition Purchase Commitments [Member] | Capital Addition Purchase Commitments [Member] | |||||
apartments | ||||||||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments and contingencies | $0 | $0 | ' | ' | $14,520,000 | $16,900,000 | ' | ' |
Number of Real Estate Development Projects | 1 | ' | 1 | 3 | ' | ' | ' | ' |
Number of Units in Development Projects | ' | ' | ' | ' | ' | 154 | ' | ' |
Development Projects, Ownership Percentage | ' | ' | ' | ' | ' | 98.00% | ' | ' |
Investment Owned, at Cost | ' | ' | ' | ' | ' | $1,286,000 | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | 33.00% | 33.00% |
Equity Method Investment, Funding Percentage of Investment | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Noncontrolling_Interest_in_Ope2
Noncontrolling Interest in Operating Partnership (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | |
Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | Adjustments For Error Correction, Out of Period Adjustments [Member] | ||||||
Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | Noncontrolling interest in Operating Partnership | ||||||||||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ($12,897,338) | ($1,685,796) | ' | ' | ' | ($33,996) | ($166,750) | ($1,485,050) | ($1,685,796) |
Net income (loss) | -2,897,836 | -2,702,352 | 7,636,791 | -3,973,000 | ' | ' | 2,509,405 | -9,121,238 | 431,603 | -277,247 | -154,356 | ' | ' | ' | ' |
Net income attributable to noncontrolling interest in properties | -25,553 | -127,684 | -40,361 | -345,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) before noncontrolling interest in Operating Partnership | -2,923,389 | -2,830,036 | 7,596,430 | -4,318,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred dividend | -1,675,194 | -1,675,194 | -5,025,582 | -5,025,583 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) available to common equity | -4,598,583 | -4,505,230 | 2,570,848 | -9,344,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage by noncontrolling partners | 97.61% | 97.61% | 97.61% | 97.61% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) attributable to noncontrolling interest in Operating Partnership | ($4,488,677) | ($4,397,555) | $2,509,405 | ($9,121,238) | ' | ($4,397,555) | $2,509,405 | ($9,121,238) | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Units Held by Noncontrolling Owners | 5,242,223 | ' | 5,242,223 | ' | 5,242,223 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling_Interest_in_Ope3
Noncontrolling Interest in Operating Partnership Summary of Noncontrolling Interest (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Units Held by Noncontrolling Owners | 5,242,223 | ' | 5,242,223 | ' | 5,242,223 |
Noncontrolling interest, ownership percentage by noncontrolling partners | 97.61% | 97.61% | 97.61% | 97.61% | ' |
Net income (loss) attributable to noncontrolling interest in Operating Partnership | ($4,488,677) | ($4,397,555) | $2,509,405 | ($9,121,238) | ' |
Noncontrolling interest in Operating Partnership | ' | ' | ' | ' | ' |
Redeemable Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -89,708,267 | ' | ' |
Net income (loss) attributable to noncontrolling interest in Operating Partnership | ' | -4,397,555 | 2,509,405 | -9,121,238 | ' |
Distributions | ' | ' | -12,897,338 | -1,685,796 | ' |
Balance at end of period | ($100,096,200) | ($87,592,852) | ($100,096,200) | ($87,592,852) | ' |
Related_Party_Transactions_Amo
Related Party Transactions : Amount Accrued or Paid to Affiliates (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $3,844,393 | $4,110,255 | $12,540,587 | $13,866,574 |
Berkshire Advisor [Member] | Property management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 781,559 | 886,392 | 2,418,068 | 2,612,471 |
Berkshire Advisor [Member] | Expense reimbursements [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 60,228 | 53,325 | 159,035 | 159,975 |
Berkshire Advisor [Member] | Salary reimbursements [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 2,083,615 | 2,410,538 | 6,633,072 | 7,414,115 |
Berkshire Advisor [Member] | Asset management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 407,913 | 412,315 | 1,223,740 | 1,236,945 |
Berkshire Advisor [Member] | Incentive advisory fee [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amount Received (Paid) During Period | ' | ' | 838,657 | 0 |
Related Party Transaction, Amounts of Transaction | 423,153 | 173,217 | 1,796,933 | 1,973,195 |
Berkshire Advisor [Member] | Construction management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 87,925 | 73,018 | 207,043 | 114,105 |
Berkshire Residental Development [Member] | Development fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 0 | 69,705 | 69,715 | 209,115 |
Affiliated Entity [Member] | Interest on revolving credit facility [Member] | Line of Credit [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $0 | $31,745 | $32,981 | $146,653 |
Related_Party_Transactions_Rel
Related Party Transactions : Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
projects | projects | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Due from (to) Related Party | ($2,051,898) | ' | ($2,051,898) | ' | ($3,446,460) |
Due to Affiliate | 4,917,567 | ' | 4,917,567 | ' | 6,505,338 |
Due from Affiliates | 2,865,669 | ' | 2,865,669 | ' | 3,058,878 |
Proceeds from revolving credit facility - affiliate | ' | ' | 1,627,000 | 1,691,000 | ' |
Principal payments on revolving credit facility - affiliate | ' | ' | 1,627,000 | 7,349,422 | ' |
Related Party Transaction, Amounts of Transaction | 3,844,393 | 4,110,255 | 12,540,587 | 13,866,574 | ' |
Due to affiliate, incentive advisory fees | 7,592,536 | ' | 7,592,536 | ' | 6,634,261 |
Number of Real Estate Development Projects | 1 | ' | 1 | ' | ' |
Property management fees [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Fee, Rate | ' | ' | 4.00% | ' | ' |
Related Party Transaction, Amounts of Transaction | 781,559 | 886,392 | 2,418,068 | 2,612,471 | ' |
Expense reimbursements [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 60,228 | 53,325 | 159,035 | 159,975 | ' |
Salary reimbursements [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 2,083,615 | 2,410,538 | 6,633,072 | 7,414,115 | ' |
Asset management fees [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Fee, Rate | ' | ' | 0.40% | ' | ' |
Related Party Transaction, Amounts of Transaction | 407,913 | 412,315 | 1,223,740 | 1,236,945 | ' |
Asset management fees [Member] | Berkshire Advisor [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | ' | 1,600,000 | ' | ' |
Incentive advisory fee [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 423,153 | 173,217 | 1,796,933 | 1,973,195 | ' |
Related Party Transaction, Amount Received (Paid) During Period | ' | ' | 838,657 | 0 | ' |
Incentive advisory fee [Member] | Berkshire Advisor [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Required Accrual Rate Above the Established Base Value | ' | ' | 12.00% | ' | ' |
Related Party Transaction, Rate | ' | ' | 7.00% | ' | ' |
Acquisition fees [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Fee, Rate | ' | ' | 1.00% | ' | ' |
Construction management fees [Member] | Berkshire Advisor [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 87,925 | 73,018 | 207,043 | 114,105 | ' |
Development fees [Member] | Berkshire Residental Development [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | 0 | 69,705 | 69,715 | 209,115 | ' |
Related Party Transaction, Amounts of Transaction Since Inception | 557,650 | ' | 557,650 | ' | ' |
Interest on revolving credit facility [Member] | Affiliated Entity [Member] | Line of Credit [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | $0 | $31,745 | $32,981 | $146,653 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Nov. 01, 2013 | |
Berkshires of Columbia [Member] | ' |
Subsequent Event [Line Items] | ' |
Debt Instrument, Description of Variable Rate Basis | 'LIBOR plus 2.40% |
Debt Instrument, Maturity Date | 1-Nov-14 |
Walnut Creek [Member] | ' |
Subsequent Event [Line Items] | ' |
Payments to Acquire Property, Plant, and Equipment | 5,600,000 |
Noncash or Part Noncash Acquisition, Debt Assumed | -4,800,000 |