Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 31, 2015 | 14-May-15 | |
Entity Information [Line Items] | ||
Entity Registrant Name | BERKSHIRE INCOME REALTY, INC. | |
Entity Central Index Key | 1178862 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,406,196 |
Consolidated_Balance_Sheets_St
Consolidated Balance Sheets Statement (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Multifamily apartment communities, net of accumulated depreciation of $197,479,523 and $190,993,267, respectively | $533,856,962 | $472,942,656 | ||
Cash and cash equivalents | 12,922,191 | 4,369,626 | 14,220,451 | 15,254,613 |
Cash restricted for tenant security deposits | 1,230,356 | 1,202,884 | ||
Restricted cash held in escrow for 1031 exchange | 0 | 11,920,578 | ||
Replacement reserve escrow | 1,492,548 | 1,425,007 | ||
Prepaid expenses and other assets | 7,349,357 | 8,807,199 | ||
Investment in unconsolidated multifamily entities | 12,770,521 | 14,078,222 | ||
Acquired in-place leases and tenant relationships, net of accumulated amortization of $2,141,202 and $1,518,971, respectively | 1,236,437 | 1,219,543 | ||
Deferred expenses, net of accumulated amortization of $2,643,498 and $2,239,550, respectively | 5,757,368 | 5,706,855 | ||
Total assets | 576,615,740 | 521,672,570 | ||
Liabilities: | ||||
Mortgage notes payable | 511,538,866 | 436,785,408 | ||
Credit Facility | 19,000,000 | 41,000,000 | ||
Note payable - affiliate | 5,800,000 | 0 | ||
Note payable - other | 1,250,000 | 1,250,000 | ||
Due to affiliates, net | 3,148,517 | 3,085,668 | ||
Due to affiliate, incentive advisory fees | 13,868,578 | 13,698,562 | ||
Dividend and distributions payable | 1,462,907 | 837,607 | ||
Accrued expenses and other liabilities | 14,810,192 | 12,889,999 | ||
Tenant security deposits | 1,608,731 | 1,451,751 | ||
Total liabilities | 572,487,791 | 510,998,995 | ||
Commitments and contingencies | 0 | 0 | ||
Equity: | ||||
Total equity (deficit) | 4,127,949 | 10,673,575 | ||
Total liabilities and equity | 576,615,740 | 521,672,570 | ||
Noncontrolling interest in properties | ||||
Equity: | ||||
Noncontrolling interest | -58,498 | -25,658 | ||
Total equity (deficit) | -58,498 | -25,658 | 615,734 | 879,785 |
Noncontrolling interest in Operating Partnership | ||||
Equity: | ||||
Noncontrolling interest | -25,589,851 | -19,217,779 | -126,878,188 | |
Total equity (deficit) | -25,589,851 | -19,217,779 | -126,878,188 | -102,297,937 |
Noncontrolling interest in Operating Partnership | 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 March 31, 2015 and December 31, 2014, respectively | ||||
Liabilities: | ||||
Dividend and distributions payable | 625,300 | 0 | ||
Preferred Stock [Member] | 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 March 31, 2015 and December 31, 2014, respectively | ||||
Liabilities: | ||||
Dividend and distributions payable | 837,607 | 837,607 | ||
Equity: | ||||
Preferred Stock, Value, Outstanding | 70,210,830 | 70,210,830 | ||
Total equity (deficit) | 70,210,830 | 70,210,830 | 70,210,830 | 70,210,830 |
Common Stock [Member] | Class A common stock, $.01 par value, 5,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | ||||
Equity: | ||||
Common Stock, Value, Outstanding | 0 | 0 | ||
Common Stock [Member] | Class B common stock, $.01 par value, 5,000,000 shares authorized, 1,406,196 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | ||||
Equity: | ||||
Common Stock, Value, Outstanding | 14,062 | 14,062 | ||
Total equity (deficit) | 14,062 | 14,062 | 14,062 | 14,062 |
Excess Stock, $.01 par value, 15,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | ||||
Equity: | ||||
Excess Stock, Value, Outstanding | 0 | 0 | ||
Accumulated deficit | ||||
Equity: | ||||
Accumulated deficit | -40,448,594 | -40,307,880 | ||
Total equity (deficit) | ($40,448,594) | ($40,307,880) | ($42,954,681) | ($42,354,222) |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parentheticals (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Multifamily apartment communities, accumulated depreciation | $197,479,523 | $190,993,267 | ||
Acquire in-place leases and tenant relationships, accumulated amortization | 2,141,202 | 1,518,971 | ||
Deferred expenses, accumulated amortization | $2,643,498 | $2,239,550 | ||
Preferred Stock [Member] | 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 | 2,978,110 | 2,978,110 |
Common Stock [Member] | 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 Stock [Member] | 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 | 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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Rental | $16,928,674 | $19,289,286 |
Utility reimbursement | 752,397 | 918,837 |
Other | 984,582 | 968,542 |
Total revenue | 18,665,653 | 21,176,665 |
Expenses: | ||
Operating | 4,772,734 | 6,321,228 |
Maintenance | 921,638 | 1,132,823 |
Real estate taxes | 2,114,675 | 2,183,181 |
General and administrative | 715,228 | 621,161 |
Management fees | 1,152,463 | 1,226,253 |
Incentive advisory fees | 338,605 | 264,045 |
Depreciation | 6,486,256 | 6,286,212 |
Interest, inclusive of amortization of deferred financing fees | 5,796,484 | 7,093,818 |
Amortization of acquired in-place leases and tenant relationships | 622,231 | 0 |
Total expenses | 22,920,314 | 25,128,721 |
Loss before equity in income of unconsolidated multifamily entities | -4,254,661 | -3,952,056 |
Equity in income of unconsolidated multifamily entities | 25,632 | 682,492 |
Net loss from continuing operations | -4,229,029 | -3,269,564 |
Discontinued operations: | ||
Net loss from discontinued operations | 0 | -114,216 |
Net loss | -4,229,029 | -3,383,780 |
Net (income) loss attributable to noncontrolling interest in properties | 16,736 | -64,836 |
Net loss attributable to noncontrolling interest in Operating Partnership | 5,746,772 | 5,001,351 |
Net income attributable to the Company | 1,534,479 | 1,552,735 |
Preferred dividend | -1,675,193 | -1,675,194 |
Net loss available to common shareholders | ($140,714) | ($122,459) |
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.10) | ($0.09) |
Net loss from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | $0 | $0 |
Net loss available to common shareholders per common share, basic and diluted | ($0.10) | ($0.09) |
Weighted average number of common shares outstanding, basic and diluted | 1,406,196 | 1,406,196 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Deficit Statement (USD $) | Total | Accumulated deficit | Noncontrolling interest in properties | Noncontrolling interest in Operating Partnership | Total Deficit | Series A Preferred Stock | Common Class B |
Preferred Stock [Member] | Common Stock [Member] | ||||||
Beginning balance at Dec. 31, 2013 | ($42,354,222) | $879,785 | ($102,297,937) | ($73,547,482) | $70,210,830 | $14,062 | |
Common Stock, Shares, Outstanding at Dec. 31, 2013 | 1,406,196 | ||||||
Preferred Stock, Shares Outstanding at Dec. 31, 2013 | 2,978,110 | ||||||
Net income (loss) | -3,383,780 | 1,552,735 | 64,836 | -5,001,351 | -3,383,780 | 0 | 0 |
Contributions | 0 | 619,093 | 0 | 619,093 | 0 | 0 | |
Distributions | -478,000 | -947,980 | -19,578,900 | -21,004,880 | 0 | 0 | |
Distributions to preferred shareholders | -1,675,194 | 0 | 0 | -1,675,194 | 0 | 0 | |
Ending balance at Mar. 31, 2014 | -42,954,681 | 615,734 | -126,878,188 | -98,992,243 | 70,210,830 | 14,062 | |
Preferred Stock, Shares Outstanding at Mar. 31, 2014 | 2,978,110 | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2014 | 1,406,196 | ||||||
Beginning balance at Dec. 31, 2014 | 10,673,575 | -40,307,880 | -25,658 | -19,217,779 | 10,673,575 | 70,210,830 | 14,062 |
Common Stock, Shares, Outstanding at Dec. 31, 2014 | 1,406,196 | ||||||
Preferred Stock, Shares Outstanding at Dec. 31, 2014 | 2,978,110 | ||||||
Net income (loss) | -4,229,029 | 1,534,479 | -16,736 | -5,746,772 | -4,229,029 | 0 | 0 |
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions | 0 | -16,104 | -625,300 | -641,404 | 0 | 0 | |
Distributions to preferred shareholders | -1,675,193 | 0 | 0 | -1,675,193 | 0 | 0 | |
Ending balance at Mar. 31, 2015 | $4,127,949 | ($40,448,594) | ($58,498) | ($25,589,851) | $4,127,949 | $70,210,830 | $14,062 |
Preferred Stock, Shares Outstanding at Mar. 31, 2015 | 2,978,110 | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2015 | 1,406,196 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows Statement (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($4,229,029) | ($3,383,780) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Amortization of deferred costs | 242,263 | 249,082 |
Amortization of acquired in-place leases and tenant relationships | 622,231 | 0 |
Amortization of fair value premium on debt | -96,048 | -31,432 |
Loss on derivative financial instrument | 26,287 | 208,766 |
Depreciation | 6,486,256 | 6,286,212 |
Deferred costs | -18,366 | -10,577 |
Equity in income of unconsolidated multifamily entities | -25,632 | -682,492 |
Increase (decrease) in cash attributable to changes in assets and liabilities: | ||
Tenant security deposits, net | 49,426 | 86,515 |
Prepaid expenses and other assets | 1,431,555 | 1,259,196 |
Due to/from affiliates | 62,849 | 850,373 |
Due to affiliate - incentive advisory fees | 170,016 | 117,942 |
Accrued expenses and other liabilities | 100,818 | -1,213,833 |
Distributions of return on investments in unconsolidated multifamily entities | 1,333,333 | 400,421 |
Net cash provided by operating activities | 6,155,959 | 4,136,393 |
Cash flows from investing activities: | ||
Capital improvements | -11,944,096 | -5,303,819 |
Acquisition of multifamily apartment communities | -54,020,670 | -60,611,119 |
Distributions from investment in unconsolidated multifamily entities | 0 | 544,680 |
Return of restricted cash held in escrow for 1031 exchange | 11,920,578 | 0 |
Interest earned on replacement reserve deposits | -115 | -216 |
Deposits to replacement reserve escrow | -67,426 | -106,259 |
Net cash used in investing activities | -54,111,729 | -65,476,733 |
Cash flows from financing activities: | ||
Borrowings from mortgage notes payable | 75,789,994 | 44,001,003 |
Principal payments on mortgage notes payable | -940,488 | -1,577,183 |
Repayments of mortgage notes payable | 0 | -37,083,389 |
Borrowings from Credit Facility | 9,000,000 | 80,000,000 |
Principal payments on Credit Facility | -31,000,000 | 0 |
Borrowings from note payable - affiliate | 5,800,000 | 0 |
Deferred financing costs | -449,874 | -2,973,272 |
Contribution from noncontrolling interest holders in properties | 0 | 619,093 |
Distributions to noncontrolling interest holders in properties | -16,104 | -947,980 |
Distributions to noncontrolling interest partners in Operating Partnership | 0 | -19,578,900 |
Distributions to common shareholders | 0 | -478,000 |
Distributions to preferred shareholders | -1,675,193 | -1,675,194 |
Net cash provided by financing activities | 56,508,335 | 60,306,178 |
Net increase (decrease) in cash and cash equivalents | 8,552,565 | -1,034,162 |
Cash and cash equivalents at beginning of period | 4,369,626 | 15,254,613 |
Cash and cash equivalents at end of period | 12,922,191 | 14,220,451 |
Noncontrolling interest in Operating Partnership | ||
Cash flows from operating activities: | ||
Net loss | ($5,746,772) | ($5,001,351) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows Supplemental Disclosures (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest | $5,144,018 | $7,407,646 |
Capitalization of interest | 490,687 | 215,996 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Capital improvements included in accrued expenses and other liabilities | 5,653,788 | 1,433,990 |
Dividend and distributions payable | 1,462,907 | |
Assets acquired: | ||
Multifamily apartment communities | -53,485,875 | -129,560,979 |
Acquired in-place leases and tenant relationships | -639,125 | -1,642,098 |
Prepaid expenses and other assets | 0 | -632,521 |
Liabilities assumed: | ||
Accrued expenses | 24,248 | 511,151 |
Tenant security deposit liability | 80,082 | 241,262 |
Mortgage notes payable | 0 | 70,472,066 |
Net cash used for acquiistion of multifamily apartment communities | -54,020,670 | -60,611,119 |
Series A Preferred Stock | Preferred Stock [Member] | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividend and distributions payable | 837,607 | 837,607 |
Series A Preferred Stock | Noncontrolling interest in Operating Partnership | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividend and distributions payable | $625,300 | $0 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
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 March 31, 2015, the Company owned, or had an interest in, 14 multifamily apartment communities consisting of 4,345 total apartment units, two multifamily development projects 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 three-month periods ended March 31, 2015 and 2014, 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 three-month period ended March 31, 2015 | |||||
On March 2, 2015, the Company, through its subsidiary, BIR Gatehouse, L.L.C., completed the acquisition of Gatehouse 75, a 99-unit multifamily apartment community located in Boston, Massachusetts. The seller was an unaffiliated third party. The purchase price for Gatehouse 75 was $54,125,000 and was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. The Company has acquired Gatehouse 75 as a replacement property in an exchange transaction under Section 1031 of the Internal Revenue Code for Yorktowne, which was sold in 2014. | |||||
Accounting Standards Codification ("ASC") 805-10 requires that identifiable assets acquired and liabilities assumed be recorded at fair value as of the acquisition date. As of the acquisition date, the amounts recognized for each major class of assets acquired and liabilities assumed is as follows: | |||||
Gatehouse 75 | |||||
Asset acquired: | |||||
Multifamily apartment communities | $ | 53,485,875 | |||
Acquired in-place leases and tenant relationships | 639,125 | ||||
Total assets acquired | $ | 54,125,000 | |||
Liabilities assumed: | |||||
Accrued expenses | $ | 24,248 | |||
Tenant security deposit liability | 80,082 | ||||
Total liabilities assumed | $ | 104,330 | |||
Discussion of dispositions for the three-month period ended March 31, 2015 | |||||
The Company did not dispose of any properties during the three-month period ended March 31, 2015. | |||||
Recent Accounting Pronouncements | |||||
On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which raises the threshold for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The standard is applied prospectively and is effective in 2015 with early adoption permitted. The Company has elected to early adopt this standard effective with the interim period beginning April 1, 2014. Prior to April 1, 2014, disposed properties are presented in discontinued operations. | |||||
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. | |||||
On February 18, 2015, the FASB issued ASU 2015-02, Amendment to the Consolidation Analysis (Topic 810), which changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 modifies whether limited partnerships and similar entities are variable interest entities ("VIEs") or voting interest entities and eliminates the presumption a general partner should consolidate a limited partnership. ASU 2015-02 is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. | |||||
On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. | |||||
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 accounting principles generally accepted in the United States of America ("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, 2014. | |||||
Consolidated Statements of Comprehensive Loss | |||||
For the three-month periods ended March 31, 2015 and 2014, comprehensive loss equaled net loss. Therefore, the Consolidated Statements of Comprehensive Income and Loss required to be presented have been omitted from the consolidated financial statements. |
Multifamily_Apartment_Communit
Multifamily Apartment Communities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
MULTIFAMILY APARTMENT COMMUNITIES [Abstract] | ||||||||
Multifamily Apartment Communities | MULTIFAMILY APARTMENT COMMUNITIES | |||||||
The following summarizes the carrying value of the Company’s multifamily apartment communities: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
Land | $ | 85,531,674 | $ | 80,131,674 | ||||
Buildings, improvement and personal property | 645,804,811 | 583,804,249 | ||||||
Multifamily apartment communities | 731,336,485 | 663,935,923 | ||||||
Accumulated depreciation | (197,479,523 | ) | (190,993,267 | ) | ||||
Multifamily apartment communities, net | $ | 533,856,962 | $ | 472,942,656 | ||||
The Company accounts for its acquisitions of investments in real estate in accordance with ASC 805-10, which requires the fair value of the real estate acquired 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. Value of in-place leases are amortized over the remaining life of the underlying leases. Value of tenant relationships are amortized based on the straight line method of amortization over a 24-period for residential leases and up to a 72-month period for retail leases. | ||||||||
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 three-month period ended March 31, 2015 or the year ended December 31, 2014. | ||||||||
Discontinued Operations | ||||||||
The residual operating results of properties sold in 2013 and their discontinued operations for the three-month periods ended March 31, 2015 and 2014 are presented in the following table. | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Other | — | 210 | ||||||
Total revenue | — | 210 | ||||||
Expenses: | ||||||||
Operating | — | 112,954 | ||||||
General and administrative | — | 1,472 | ||||||
Total expenses | — | 114,426 | ||||||
Loss from discontinued operations | $ | — | $ | (114,216 | ) | |||
Investment_in_Unconsolidated_M
Investment in Unconsolidated Multifamily Entities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, which represented an ownership interest of 7% in BVF. 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 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 March 31, 2015, the Company had invested 100% of its total committed capital amount of $23,400,000 in BVF and had received distributions from BVF of $25,104,682, or approximately 107.3%, of its invested capital. The general partner of BVF is proceeding with BVF's liquidation plan to sell the one remaining asset in its portfolio. | ||||||||
The summarized statement of assets, liabilities and partners’ equity of BVF is as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Multifamily apartment communities, net | $ | 115,007,655 | $ | 116,680,315 | ||||
Cash and cash equivalents | 25,078,474 | 25,903,395 | ||||||
Other assets | 4,402,380 | 4,801,494 | ||||||
Total assets | $ | 144,488,509 | $ | 147,385,204 | ||||
LIABILITIES AND PARTNERS’ EQUITY | ||||||||
Mortgage notes payable | $ | 132,985,494 | $ | 133,445,626 | ||||
Other liabilities | 3,286,749 | 3,940,477 | ||||||
Noncontrolling interest | (10,769,407 | ) | (9,706,447 | ) | ||||
Partners’ equity | 18,985,673 | 19,705,548 | ||||||
Total liabilities and partners’ equity | $ | 144,488,509 | $ | 147,385,204 | ||||
Company’s share of partners’ equity | $ | 1,329,134 | $ | 1,379,531 | ||||
Basis differential (1) | 604,395 | 604,395 | ||||||
Carrying value of the Company’s investment in unconsolidated limited partnership (2) | $ | 1,933,529 | $ | 1,983,926 | ||||
-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 March 31, 2015 and December 31, 2014, the differential was comprised mainly of $583,240, which represents the Company’s share of syndication costs incurred by BVF that the Company was not required to fund via a separate capital call. | |||||||
-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 March 31, 2015 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 other-than-temporary decline in the fair values below the carrying values has occurred. No such other-than-temporary impairment charges have been recognized during the three-month period ended March 31, 2015 or the year ended December 31, 2014. | ||||||||
The summarized statements of operations of BVF for the three-month periods ended March 31, 2015 and 2014 are as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 4,128,825 | $ | 28,763,720 | ||||
Expenses | (5,911,660 | ) | (37,257,755 | ) | ||||
Gain on property sales and extinguishment of debt (2) | — | 15,247,953 | ||||||
Noncontrolling interest | 1,062,960 | 1,026,400 | ||||||
Net income (loss) attributable to investment | $ | (719,875 | ) | $ | 7,780,318 | |||
Equity in income (loss) of unconsolidated limited partnership (1)(2) | $ | (50,397 | ) | $ | 945,101 | |||
-1 | There were no impairment indicators or impairment write offs in the three-month periods ended March 31, 2015 or 2014. | |||||||
-2 | BVF did not have any dispositions during the three-month period ended March 31, 2015. | |||||||
During the three-month period ended March 31, 2014, BVF recorded a net gain on the disposition of two properties. The gain on the sale was $15,247,953, of which the Company's share was approximately $1,067,000 and is reflected in the "Equity in income of unconsolidated multifamily entities" for the three-month period ended March 31, 2014. | ||||||||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investments | INVESTMENT IN UNCONSOLIDATED LIMITED LIABILITY COMPANIES | |||||||
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 limited liability company 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 March 31, 2015, 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 has no obligation to fund capital to NoMa JV in excess of its original commitment of capital of $14,520,000. The NoMa Project was completed during the quarter ended June 30, 2013. | ||||||||
As of March 31, 2015, the Company had received distributions from operations of $1,800,000 from NoMa JV, or approximately 12.4%, of its invested capital. | ||||||||
On July 16, 2014, the Company converted its ownership in Country Place I and Country Place II from a joint venture limited liability company, of which it held a 58% controlling interest, into a tenancy-in-common ("TIC") undivided ownership interest of 58% in each property. Prior to July 16, 2014, the Company consolidated its investment in Country Place I and Country Place II and reported the remaining 42% ownership through "Noncontrolling interest in properties". The Company evaluated the ownership and control rights under the TIC structure and has determined that it would require deconsolidation and the adoption of the equity method of accounting for its interest in the TIC at carrying value. Accordingly, effective July 16, 2014, the Company recorded its investment in the properties under the equity method of accounting and deconsolidated Country Place I and Country Place II. | ||||||||
On November 14, 2014, the Company completed the sale of its TIC interests in Country Place I and Country Place II to an unaffiliated buyer. The combined sale price of $57,300,000 was subject to normal operating prorations and adjustments as provided for in the purchase and sale agreement. The Company sold its TIC interests in Country Place I and Country Place II in an exchange transaction under Section 1031 of the Internal Revenue Code for Elan Redmond Town Center. | ||||||||
As of March 31, 2015, the Company's residual TIC interest is reflected on the Consolidated Balance Sheets in "Investments in unconsolidated multifamily entities" and the Company's share of net income is reflected in Consolidated Statements of Operations in "Equity in income of unconsolidated multifamily entities". | ||||||||
The summarized statement of assets, liabilities and members’ capital of NoMa JV and the TIC is as follows: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Multifamily apartment communities, net | $ | 119,584,745 | $ | 120,777,674 | ||||
Cash and cash equivalents | 2,684,176 | 5,404,229 | ||||||
Other assets | 1,131,677 | 1,425,062 | ||||||
Total assets | $ | 123,400,598 | $ | 127,606,965 | ||||
LIABILITIES AND MEMBERS’ CAPITAL | ||||||||
Mortgage note payable | $ | 85,466,258 | $ | 85,466,258 | ||||
Other liabilities | 799,418 | 850,590 | ||||||
Noncontrolling interest | 3,701,033 | 4,123,182 | ||||||
Members’ capital | 33,433,889 | 37,166,935 | ||||||
Total liabilities and members’ capital | $ | 123,400,598 | $ | 127,606,965 | ||||
Company’s share of members’ capital | $ | 9,255,328 | $ | 10,495,636 | ||||
Basis differential (1) | $ | 1,581,664 | $ | 1,598,660 | ||||
Carrying value of the Company’s investment in unconsolidated limited liability companies (2) | $ | 10,836,992 | $ | 12,094,296 | ||||
-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 call. | |||||||
-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 March 31, 2015 and has no commitment to make additional contributions to NoMa JV. | |||||||
The Company evaluates the carrying value of its investments in unconsolidated limited liability companies for impairment periodically and records impairment charges when events or circumstances change indicating that other-than-temporary decline in the fair values below the carrying values has occurred. No such other-than-temporary impairment charges have been recognized during the three-month period ended March 31, 2015 or the year ended December 31, 2014. | ||||||||
The summarized statements of operations of NoMa JV and the TIC for the three-month periods ended March 31, 2015 and 2014 are as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 3,226,117 | $ | 2,381,898 | ||||
Expenses | (2,931,313 | ) | (3,166,281 | ) | ||||
Noncontrolling interest | (27,851 | ) | 78,429 | |||||
Net income (loss) attributable to investment | $ | 266,953 | $ | (705,954 | ) | |||
Equity in income (loss) of unconsolidated limited liability companies | $ | 93,025 | $ | (245,613 | ) | |||
Amortization of basis | (16,996 | ) | (16,996 | ) | ||||
Adjusted equity in income (loss) of unconsolidated limited liability companies | $ | 76,029 | $ | (262,609 | ) | |||
Mortgage_Notes_Payable
Mortgage Notes Payable | 3 Months Ended |
Mar. 31, 2015 | |
MORTGAGE NOTES PAYABLE [Abstract] | |
Mortgage Notes Payable | MORTGAGE NOTES PAYABLE |
On January 22, 2014, the Company, through its joint venture partnership for the development of the 322-unit multifamily apartment building in Dallas, Texas (the "Prestonwood Project"), entered into a loan agreement totaling up to $31,054,212 for the development. The loan has a variable interest rate of 2.50% above the 1-month LIBOR and matures on January 22, 2017. As of March 31, 2015, the outstanding balance on the loan was $21,082,493. | |
On July 23, 2014, the Company, through its joint venture partnership for the development of the 141-unit multifamily apartment building in Walnut Creek, California (the "Walnut Creek Project"), entered into a construction loan agreement totaling up to $44,500,000 for the development. The loan has a fixed interest rate of 5.31% and matures on August 1, 2024. As of March 31, 2015, the outstanding balance on the loan was $0. | |
On November 7, 2014, the Company obtained a promissory note in the amount of $225,554 to fund deposits required to close on the 2020 Lawrence loan modification. The Company repaid $193,554 after the loan modification was closed. The note has a fixed rate of 3.25% and initially matured on December 22, 2014, at which time the maturity date of the remaining balance of $32,000 on the note was extended to March 22, 2015 and subsequently extended to May 29, 2015. As of March 31, 2015, the outstanding balance on the note was $32,000. | |
On February 27, 2015, the Company closed on a $19,990,000 first mortgage and $12,250,000 second mortgage on Elan Redmond Town Center. The first mortgage has a fixed rate of 3.33%. The second mortgage has a variable rate of 1.99% above the 1-month LIBOR. Both first and second mortgages mature on March 1, 2022. | |
On March 2, 2015, simultaneously with the acquisition of Gatehouse 75, the Company closed on a $36,210,000 mortgage loan to acquire the property. The loan has a fixed rate component of $21,800,000 and a variable rate component of $14,410,000. The interest rate is 3.35% and 1.95% above the 1-month LIBOR for the fixed rate component and variable rate component, respectively. The loan matures on April 1, 2022. | |
The Company determines the fair value of the mortgage notes payable in accordance with authoritative guidance related to fair value measurement 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 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. Under this approach, 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 $543,800,000 and $482,196,000 at March 31, 2015 and December 31, 2014, respectively. |
Revolving_Credit_Facility_Affi
Revolving Credit Facility - Affiliate (Revolving Credit Facility [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | REVOLVING CREDIT FACILITY - AFFILIATE |
On June 30, 2005, the Company obtained 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 - Affiliate"). The Credit Facility - Affiliate was amended on May 31, 2007 to add additional terms to the Credit Facility - Affiliate ("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 - Affiliate 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 - Affiliate 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 - Affiliate 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 last 365-day clean-up period requirement was satisfied on July 9, 2013 and the Company has not borrowed from the Credit Facility - Affiliate subsequent to that date. | |
On February 17, 2011, the Company executed Amendment No. 2 which provides for a temporary modification of certain provisions of the Credit Facility - Affiliate 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 Credit Facility - Affiliate 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 Credit Facility - Affiliate 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 Credit Facility - Affiliate 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 Credit Facility - Affiliate, 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 Credit Facility - Affiliate agreement prior to the Amendment Period. | |
During the three-month periods ended March 31, 2015 and 2014, the Company did not borrow or repay any advances under the Credit Facility - Affiliate. The Company did not pay any interest charges or commitment fees during the three-month periods ended March 31, 2015 or 2014. There was no outstanding balance under the Credit Facility - Affiliate as of March 31, 2015 and December 31, 2014. |
Credit_Facility_Notes
Credit Facility (Notes) (Line of Credit [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Debt Disclosure [Text Block] | CREDIT FACILITY |
On January 21, 2014, the Company, through the Operating Partnership, closed on a $90,000,000 line of credit (the "Credit Facility") with an unaffiliated lender. The Credit Facility provides for interest on borrowings at a rate of 3.75% above the 30-day LIBOR rate, as announced by Reuter's, and includes various operational and financial covenants, including a leverage ratio and a debt service ratio. The Credit Facility has a maturity date of January 21, 2017 and provides for a maximum commitment to the Company of $90,000,000 commencing with the date of execution through June 29, 2014; $75,000,000 from June 30, 2014 to September 29, 2014; $60,000,000 from September 30, 2014 to December 30, 2014; and $45,000,000 from December 31, 2014 to January 21, 2017. The Credit Facility provides for unused commitment fees of 0.50% per annum if the unused amount is equal to or greater than 50% of the applicable maximum commitment and 0.35% per annum if such unused amount is less than 50%. | |
On June 16, 2014, the Company amended the Credit Facility to extend the date on which the maximum commitment reduces to $75,000,000 from June 30, 2014 to August 30, 2014. | |
On February 22, 2015, the Company executed an amendment to the Credit Facility agreement which increased the maximum commitment on the Credit Facility from $45,000,000 to $60,000,000 through February 28, 2015, at which time the maximum commitment on the Credit Facility was reduced to $45,000,000. | |
During the three-month periods ended March 31, 2015 and 2014, the Company borrowed $9,000,000 and $80,000,000, respectively, under the Credit Facility and repaid $31,000,000 and $0 of advances, respectively, during the same periods. The Company incurred $368,008 and $323,841of interest expense, respectively, and $17,676 and $48,028 of unused commitment fee, respectively, during the three-month periods ended March 31, 2015 and 2014. There was $19,000,000 and $41,000,000 outstanding on the Credit Facility as of March 31, 2015 and December 31, 2014, respectively. | |
The Company determines the fair value of the Credit Facility in accordance with authoritative guidance related to fair value measurement. Based on the fair value analysis using the same method as described in Note 4 - Mortgage Notes Payable, the Company has determined the fair value of the Credit Facility approximated the outstanding principal balance of the Credit Facility at March 31, 2015 and December 31, 2014. |
Note_Payable_Affiliate_Notes
Note Payable - Affiliate (Notes) (Affiliated Entity [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Affiliated Entity [Member] | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | NOTE PAYABLE - AFFILIATE |
On March 2, 2015, the Company entered into a promissory note agreement with an affiliate and borrowed $5,800,000 to fund the acquisition of Gatehouse 75. The promissory note has a variable interest rate of 5.00% above the 1-month LIBOR and matures on December 31, 2016. As of March 31, 2015 and December 31, 2014, the outstanding balance on the promissory note was $5,800,000 and $0. | |
The Company determines the fair value of the "Note payable - affiliate" in accordance with authoritative guidance related to fair value measurement. 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 - affiliate" approximated the outstanding principal balance at March 31, 2015 and December 31, 2014, respectively. |
Note_Payable_Other_Notes
Note Payable - Other (Notes) (2020 Lawrence [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
2020 Lawrence [Member] | |
Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | NOTE PAYABLE - OTHER |
On June 12, 2012, Zocalo Community Development, Inc. ("Zocalo"), the managing member of the joint venture ("JV 2020 Lawrence") that the Operating Partnership formed with its subsidiary, BIR 2020 Lawrence, L.L.C. ("BIR 2020"), Zocalo and JB 2020, LLC, 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 a mid-rise multifamily apartment building in Denver, Colorado (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 the U.S. Department of Housing and Urban Development ("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 March 31, 2015 and December 31, 2014, the outstanding balance on the Colorado Energy Loan was $1,250,000. | |
The Company determines the fair value of the "Note payable - other" in accordance with authoritative guidance related to fair value measurement. 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 $1,362,000 and $1,374,000 at March 31, 2015 and December 31, 2014, respectively. |
Equity_Deficit
Equity / Deficit | 3 Months Ended |
Mar. 31, 2015 | |
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 three-month periods ended March 31, 2015 and 2014, the Company’s aggregate dividends on the Preferred Shares totaled $1,675,193 and $1,675,194, respectively, of which $837,607 was payable and included on the Consolidated Balance Sheets in "Dividends and distributions payable" as of March 31, 2015 and December 31, 2014. | |
On January 16, 2014, the Board authorized the general partner of the Operating Partnership to make a special distribution of $20,000,000 from proceeds of the supplemental loan on Seasons of Laurel, which closed in December 2013, and the refinancing of Berkshires of Columbia, which closed in January 2014, to the common general and noncontrolling interest partners in Operating Partnership, which was paid on January 17, 2014. Also on January 16, 2014, the Board declared a common dividend of $0.339924 per share on the Company's Class B common stock in respect to the special distribution to the common general partner. Concurrently with the Operating Partnership distributions, the common dividend was paid from the special distribution proceeds of the common general partner on January 17, 2014. | |
For the three-month periods ended March 31, 2015 and 2014, the Company's aggregate dividends on the Class B common stock totaled $0 and $478,000, respectively. There were no dividends payable to the Class B common stockholders as of March 31, 2015 and December 31, 2014. | |
During the three-month periods ended March 31, 2015 and 2014, the Company made tax payments of $0 and $56,900, 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 Equity (Deficit). | |
For the three-month periods ended March 31, 2015 and 2014, the Company's aggregate distribution to noncontrolling interest partners in Operating Partnership totaled $625,300 and $19,578,900, respectively. Distributions payable to the noncontrolling interest partners in Operating Partnership as of March 31, 2015 and December 31, 2014 were $625,300 and $0, respectively. | |
The Company’s policy to provide for common distributions is based on available cash and Board approval. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||||
Net income (loss) available to common shareholders 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 ("EPS") for the three-month periods ended March 31, 2015 and 2014 follows: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss from continuing operations | $ | (4,229,029 | ) | $ | (3,269,564 | ) | |||
Adjust: | Net (income) loss from continuing operations attributable to noncontrolling interest in properties | 16,736 | (64,984 | ) | |||||
Net loss from continuing operations attributable to noncontrolling interest in Operating Partnership | 5,746,772 | 4,890,009 | |||||||
Preferred dividends | (1,675,193 | ) | (1,675,194 | ) | |||||
Loss from continuing operations attributable to the Company | $ | (140,714 | ) | $ | (119,733 | ) | |||
Net loss from discontinued operations | $ | — | $ | (114,216 | ) | ||||
Adjust: | Net loss from discontinued operations attributable to noncontrolling interest in properties | — | 148 | ||||||
Net loss from discontinued operations attributable to noncontrolling interest in Operating Partnership | — | 111,342 | |||||||
Net loss from discontinued operations attributable to the Company | $ | — | $ | (2,726 | ) | ||||
Net loss available to common shareholders | $ | (140,714 | ) | $ | (122,459 | ) | |||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | |||
Net loss from discontinued operations attributable to the Company per common share, basic and diluted | $ | — | $ | — | |||||
Net loss available to common shareholders per common share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | |||
Weighted average number of common shares outstanding, basic and diluted | 1,406,196 | 1,406,196 | |||||||
Dividend declared per common share | $ | — | $ | 0.339924 | |||||
For the three-month periods ended March 31, 2015 and 2014, the Company did not have any common stock equivalents; therefore basic and dilutive earnings per share were the same. | |||||||||
During 2014, the Company identified an error in the calculation of EPS from net income (loss) from continuing operations and EPS from net income (loss) from discontinued operations, in its previously reported financial statements for the years ended December 31, 2013, 2012 and 2011 and the related quarters including the quarter ended March 31, 2014. This error was a result of incorrectly adjusting net income (loss) when calculating EPS from net income (loss) from continuing operations by the improper noncontrolling interest amount and not adjusting EPS from net income (loss) from discontinued operations by the proper noncontrolling interest amount. As noncontrolling interest related to both continuing and discontinued operations, the noncontrolling interest balance should have been allocated appropriately to continuing and discontinued operations. The Company has determined that this presentation error was not material to any prior periods as filed. The previously issued financial statements have been revised to correct for this error. There was no impact on EPS from net income (loss) available to common shareholders. | |||||||||
The table below shows as previously reported and as revised EPS for the three-month period ended March 31, 2014: | |||||||||
Three months ended March 31, 2014 | |||||||||
As previously reported | As revised | ||||||||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.01 | ) | $ | (0.09 | ) | |||
Net loss from discontinued operations attributable to the Company per common share, basic and diluted | $ | (0.08 | ) | $ | — | ||||
Net loss available to common shareholders per common share, basic and diluted | $ | (0.09 | ) | $ | (0.09 | ) |
Future_Minimum_Rent_Notes
Future Minimum Rent (Notes) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Operating Leased Assets [Line Items] | ||||
Leases of Lessor Disclosure [Text Block] | FUTURE MINIMUM RENT | |||
Some of the Company’s properties have long term non-cancelable operating leases. Minimum contractual lease payments receivable (excluding tenant reimbursement of expenses) under long term non‑cancelable operating leases, in effect as of March 31, 2015 are as follows: | ||||
2015 | $ | 185,457 | ||
2016 | 315,467 | |||
2017 | 358,535 | |||
2018 | 375,282 | |||
2019 | 303,622 | |||
Thereafter | 2,511,620 | |||
$ | 4,049,983 | |||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 commitments to two joint venture multifamily development projects as of March 31, 2015. The Walnut Creek Project is a 141-unit multifamily apartment development project located in Walnut Creek, California. The Company will own a 98% interest in the project once fully invested and its current commitment in the joint venture is approximately $26.9 million. As of March 31, 2015, the Company has made capital contributions totaling approximately $18.7 million. The Company consolidates its investment in the Walnut Creek Project. | |
The Prestonwood Project is a 322-unit multifamily apartment development project located in Dallas, Texas. The Company has a 95% interest in the joint venture and has made a commitment to invest $12.6 million in the project. The Company has no obligation to fund capital to the Prestonwood Project in excess of its commitment of capital of $12.6 million. As of March 31, 2015, the Company has invested 100% of its total committed capital amount. The Company consolidates its investment in the Prestonwood Project. | |
In connection with mortgage financings collateralized by the Standard at Lenox Park, Berkshires at Town Center and Sunfield Lake properties, the Operating Partnership agreed to guarantee approximately $11.7 million of mortgage debt, at origination, related to its obligation to achieve certain revenue targets at the properties. On March 19, 2015, the guarantee in the amount of $3 million on Berkshires at Town Center was released. In connection with the construction loan financing collateralized by the Walnut Creek Project, the Operating Partnership agreed to guarantee approximately $44.5 million, at origination, of construction loan debt. Additionally, the Company has guaranteed payment of the obligation under the Credit Facility, in full, when due at maturity or otherwise. |
Derivative_Financial_Instrumen
Derivative Financial Instruments (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS |
The Company utilizes interest rate caps to add stability to interest expense, to manage our exposure to interest rate movements and as required by our lenders when entering into variable interest mortgage debt. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts if interest rates rise above a certain level in exchange for an upfront premium. | |
During the three-month period ended March 31, 2014, the Company acquired an interest rate cap related to its investment in Berkshires of Columbia for $258,990. The derivative instrument was obtained as a requirement by the lender under the terms of the financing and limits increases in interest costs of the variable rate debt. The interest rate cap limits that interest exposure on the variable rate mortgage to 4.25% of the total mortgage amount of $44,000,000. The instrument matures on February 1, 2018. The Company has determined that the significant inputs used in the valuation model are observable in active markets, therefore, the Company considers the interest rate cap value of $23,937 and $50,224 as of March 31, 2015 and December 31, 2014, respectively, as level 2 classifications within the fair value hierarchy. The value of the interest rate cap is included in "Prepaid expenses and other assets". |
Noncontrolling_Interest_in_Pro
Noncontrolling Interest in Properties (Notes) (Noncontrolling interest in properties) | 3 Months Ended |
Mar. 31, 2015 | |
Noncontrolling interest in properties | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest | NONCONTROLLING INTEREST IN PROPERTIES |
Four of the Company's properties, Berkshires of Columbia, 2020 Lawrence, Walnut Creek and Aura Prestonwood, are owned in joint ventures with third parties as of March 31, 2015. The Company owns interests of 91.38% in Berkshires of Columbia, 91.08% in 2020 Lawrence, 95.00% in Aura Prestonwood and will own a 98.00% interest in Walnut Creek once fully invested. | |
On July 16, 2014, the Company converted its ownership in Country Place I and Country Place II from a joint venture limited liability company, of which it held a 58% controlling interest, into a TIC undivided ownership interest of 58% in each property. As a result, the Company discontinued the use of the consolidation method of accounting for its investment in the joint venture and adopted the equity method of accounting for its ownership interest in the properties prospectively. Such deconsolidation resulted in the removal of the 42% noncontrolling interest in properties for Country Place I and Country Place II. Please refer to Note 3 - Investments in Unconsolidated Multifamily Entities for additional information on the transaction. | |
During the three-month periods ended March 31, 2015 and 2014, the Company received $0 and $619,093, respectively, of contributions from noncontrolling interest holders in properties. | |
During the three-month periods ended March 31, 2015 and 2014, distributions of $16,104 and $947,980, respectively, were made to the noncontrolling interest holders in properties. There were no distributions payable to noncontrolling interest holders in properties as of March 31, 2015 or December 31, 2014. |
Noncontrolling_Interest_in_Ope
Noncontrolling Interest in Operating Partnership (Noncontrolling interest in Operating Partnership) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Noncontrolling interest in Operating Partnership | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Noncontrolling Interest | NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP | ||||||||
The following table sets forth the calculation of net loss attributable to noncontrolling interest in the Operating Partnership for the three-month periods ended March 31, 2015 and 2014: | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (4,229,029 | ) | $ | (3,383,780 | ) | |||
Adjust: | Net (income) loss attributable to noncontrolling interest in properties | 16,736 | (64,836 | ) | |||||
Loss before noncontrolling interest in Operating Partnership | (4,212,293 | ) | (3,448,616 | ) | |||||
Preferred dividend | (1,675,193 | ) | (1,675,194 | ) | |||||
Loss available to common equity | (5,887,486 | ) | (5,123,810 | ) | |||||
Noncontrolling interest in Operating Partnership | 97.61 | % | 97.61 | % | |||||
Net loss attributable to noncontrolling interest in Operating Partnership | $ | (5,746,772 | ) | $ | (5,001,351 | ) | |||
The following table sets forth a summary of the items affecting the noncontrolling interest in the Operating Partnership: | |||||||||
For the three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | (19,217,779 | ) | $ | (102,297,937 | ) | |||
Net loss attributable to noncontrolling interest in Operating Partnership | (5,746,772 | ) | (5,001,351 | ) | |||||
Distributions to noncontrolling interest partners in Operating Partnership | (625,300 | ) | (19,578,900 | ) | |||||
Balance at end of period | $ | (25,589,851 | ) | $ | (126,878,188 | ) | |||
As of March 31, 2015 and December 31, 2014, 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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Property management fees | $ | 720,666 | $ | 785,785 | ||||
Expense reimbursements | 119,428 | 60,135 | ||||||
Salary reimbursements | 1,871,321 | 2,170,753 | ||||||
Asset management fees | 402,155 | 407,913 | ||||||
Incentive advisory fee | 338,605 | 264,045 | ||||||
Acquisition fees | 541,250 | 1,200,000 | ||||||
Construction management fees | 142,278 | 5,844 | ||||||
Development fees | 49,313 | 97,551 | ||||||
Interest | 24,673 | — | ||||||
Total | $ | 4,209,689 | $ | 4,992,026 | ||||
Amounts due to affiliates of $3,148,517 and $3,085,668 are included in “Due to affiliates, net” at March 31, 2015 and December 31, 2014, respectively, and represent intercompany development fees, expense reimbursements, asset management fees and shared services, which consist of amounts due to affiliates of $5,264,543 and $5,146,525 at March 31, 2015 and December 31, 2014, respectively, and amounts due from affiliates of $2,116,026 and $2,060,857 at March 31, 2015 and December 31, 2014, 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, except Aura Prestonwood, which are payable at a rate of 2.75% of gross income. The Company incurred $720,666 and $785,785 of property management fees in the three-month periods ended March 31, 2015 and 2014, respectively. | ||||||||
The Company also reimburses Berkshire Advisor for administrative services for our operation, including property management, legal, accounting, data processing, transfer agent and other necessary services. Under the terms of the Advisory Services Agreement, the Company reimburses Berkshire Advisor for actual property employee salary and benefit expenses incurred in the operation of the properties under management. Additionally, Berkshire Advisor allocates a portion of its corporate level personnel and overhead expense to the Company on the basis of an employee's time spent on duties and activities performed on behalf of the Company. Expense reimbursements paid were $119,428 and $60,135 for the three-month periods ended March 31, 2015 and 2014, respectively. Salary reimbursements paid were $1,871,321 and $2,170,753 for the three-month periods ended March 31, 2015 and 2014, 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 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 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") pursuant to Berkshire Advisor's Supplemental Long Term Incentive Plan (the "Supplemental Plan"). 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 ("Base Value"). The Company accrues incentive advisory fees payable to Berkshire Advisor at 10%, which can be increased to 12% from time to time, based on the increase in fair value of the Company above the Base Value established by the Advisor. On May 12, 2014, the Audit Committee of the Company approved an amendment to the Supplemental Plan which allows reissuance of previously forfeited or settled carried interests. The Company has recorded $338,605 and $264,045 of incentive advisory fees during the three-month periods ended March 31, 2015 and 2014, respectively. As of March 31, 2015 and December 31, 2014, the accrued liability of $13,868,578 and $13,698,562, respectively, was included in "Due to affiliate, incentive advisory fees" on the Consolidated Balance Sheets. Payments from the Company to Berkshire Advisor approximate the amounts Berkshire Advisor pays to its employees. Payments to employees by Berkshire Advisor pursuant to the Supplemental 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 $168,589 and $146,103 of incentive advisory fee payments during the three-month periods ended March 31, 2015 and 2014, 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. During the three-month period ended March 31, 2015, the Company paid an acquisition fee of $541,250 on the acquisition of Gatehouse 75. During the three-month period ended March 31, 2014, the Company paid acquisition fees of $560,000 and $640,000 on the acquisitions of Pavilion Townplace and EON at Lindbergh, respectively. | ||||||||
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 $142,278 and $5,844 in construction management fees for the three-month periods ended March 31, 2015 and 2014, 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 and construction costs. During the three-month periods ended March 31, 2015 and 2014, the Company incurred $49,313 and $97,551, respectively, on the Walnut Creek Project and the Prestonwood Project. The Company did not incur any development fees on the NoMa Project to BRD for the three-month periods ended March 31, 2015 and 2014. | ||||||||
During the three-month periods ended March 31, 2015 and 2014, the Company did not borrow under the Credit Facility - Affiliate or repay any advances, respectively, during the same periods. The Company did not pay any interest expenses or commitment fees during the three-month periods ended March 31, 2015 or 2014. There was no outstanding balance under the Credit Facility - Affiliate as of March 31, 2015 and December 31, 2014. | ||||||||
On March 2, 2015, the Company entered into a promissory note agreement with an affiliate and borrowed $5,800,000 to fund the acquisition of Gatehouse 75. During the three-month period ended March 31, 2015, the Company incurred interest of $24,673. | ||||||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
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 | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Proforma Condensed Financial Information [Abstract] | ||||||||
Business Combination Disclosure [Text Block] | PROFORMA CONDENSED FINANCIAL INFORMATION | |||||||
As discussed in Note 1 - Organization and Basis of Presentation, during the three-month period ended March 31, 2015, the Company acquired Gatehouse 75, which was deemed not to be individually significant in accordance with Regulation S-X, Rule 3-14 “Special Instructions for Real Estate Operations to be Acquired” ("Rule 3-14"). During the three-month period ended March 31, 2014, the Company acquired Pavilion Townplace and EON at Lindbergh, which were deemed to be individually significant in accordance with Rule 3-14. During the year ended December 31, 2014, the Company acquired Elan Redmond, which was not deemed to be individually significant in accordance with Rule 3-14. | ||||||||
The proforma financial information set forth below is based upon the Company's historical Consolidated Statements of Operations for the three-month periods ended March 31, 2015 and 2014, adjusted to give effect to the transactions at the beginning of each of the periods presented. | ||||||||
The proforma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transaction occurred at the beginning of each year, nor does it attempt to represent the results of operations for future periods. | ||||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | (unaudited) | |||||||
Revenue from rental property | $ | 19,250,744 | $ | 24,297,435 | ||||
Net loss | $ | (3,561,673 | ) | $ | (4,008,889 | ) | ||
Net income (loss) attributable to common shareholders | $ | 526,642 | $ | (747,568 | ) | |||
Net income (loss) attributable to common shareholders, per common share, basic and diluted | $ | 0.37 | $ | (0.53 | ) | |||
Included in the consolidated statements of operations for the three-month periods ended March 31, 2015 and 2014 are total revenue of $3,918,465 and $320,573, respectively, and net loss of $(1,739,667) and $(1,167,703), respectively, since the respective dates of acquisition through March 31, 2015 and 2014 for Pavilion Townplace, EON at Lindbergh, Elan Redmond Town Center and Gatehouse 75. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
The Company has no reportable subsequent events. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
ORGANIZATION AND BASIS OF PRESENTATION [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which raises the threshold for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. The standard is applied prospectively and is effective in 2015 with early adoption permitted. The Company has elected to early adopt this standard effective with the interim period beginning April 1, 2014. Prior to April 1, 2014, disposed properties are presented in discontinued operations. | |
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. | |
On February 18, 2015, the FASB issued ASU 2015-02, Amendment to the Consolidation Analysis (Topic 810), which changes the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 modifies whether limited partnerships and similar entities are variable interest entities ("VIEs") or voting interest entities and eliminates the presumption a general partner should consolidate a limited partnership. ASU 2015-02 is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. | |
On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation Tables (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Acquisition [Line Items] | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Accounting Standards Codification ("ASC") 805-10 requires that identifiable assets acquired and liabilities assumed be recorded at fair value as of the acquisition date. As of the acquisition date, the amounts recognized for each major class of assets acquired and liabilities assumed is as follows: | ||||
Gatehouse 75 | |||||
Asset acquired: | |||||
Multifamily apartment communities | $ | 53,485,875 | |||
Acquired in-place leases and tenant relationships | 639,125 | ||||
Total assets acquired | $ | 54,125,000 | |||
Liabilities assumed: | |||||
Accrued expenses | $ | 24,248 | |||
Tenant security deposit liability | 80,082 | ||||
Total liabilities assumed | $ | 104,330 | |||
Multifamily_Apartment_Communit1
Multifamily Apartment Communities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
MULTIFAMILY APARTMENT COMMUNITIES [Abstract] | ||||||||
Schedule of Real Estate and Accumulated Depreciation | The following summarizes the carrying value of the Company’s multifamily apartment communities: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
Land | $ | 85,531,674 | $ | 80,131,674 | ||||
Buildings, improvement and personal property | 645,804,811 | 583,804,249 | ||||||
Multifamily apartment communities | 731,336,485 | 663,935,923 | ||||||
Accumulated depreciation | (197,479,523 | ) | (190,993,267 | ) | ||||
Multifamily apartment communities, net | $ | 533,856,962 | $ | 472,942,656 | ||||
Schedule of Discontinued Operations, Income Statement | The residual operating results of properties sold in 2013 and their discontinued operations for the three-month periods ended March 31, 2015 and 2014 are presented in the following table. | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue: | ||||||||
Other | — | 210 | ||||||
Total revenue | — | 210 | ||||||
Expenses: | ||||||||
Operating | — | 112,954 | ||||||
General and administrative | — | 1,472 | ||||||
Total expenses | — | 114,426 | ||||||
Loss from discontinued operations | $ | — | $ | (114,216 | ) | |||
Investment_in_Unconsolidated_M1
Investment in Unconsolidated Multifamily Entities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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’ equity of BVF is as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Multifamily apartment communities, net | $ | 115,007,655 | $ | 116,680,315 | ||||
Cash and cash equivalents | 25,078,474 | 25,903,395 | ||||||
Other assets | 4,402,380 | 4,801,494 | ||||||
Total assets | $ | 144,488,509 | $ | 147,385,204 | ||||
LIABILITIES AND PARTNERS’ EQUITY | ||||||||
Mortgage notes payable | $ | 132,985,494 | $ | 133,445,626 | ||||
Other liabilities | 3,286,749 | 3,940,477 | ||||||
Noncontrolling interest | (10,769,407 | ) | (9,706,447 | ) | ||||
Partners’ equity | 18,985,673 | 19,705,548 | ||||||
Total liabilities and partners’ equity | $ | 144,488,509 | $ | 147,385,204 | ||||
Company’s share of partners’ equity | $ | 1,329,134 | $ | 1,379,531 | ||||
Basis differential (1) | 604,395 | 604,395 | ||||||
Carrying value of the Company’s investment in unconsolidated limited partnership (2) | $ | 1,933,529 | $ | 1,983,926 | ||||
-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 March 31, 2015 and December 31, 2014, the differential was comprised mainly of $583,240, which represents the Company’s share of syndication costs incurred by BVF that the Company was not required to fund via a separate capital call. | |||||||
-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 March 31, 2015 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-month periods ended March 31, 2015 and 2014 are as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 4,128,825 | $ | 28,763,720 | ||||
Expenses | (5,911,660 | ) | (37,257,755 | ) | ||||
Gain on property sales and extinguishment of debt (2) | — | 15,247,953 | ||||||
Noncontrolling interest | 1,062,960 | 1,026,400 | ||||||
Net income (loss) attributable to investment | $ | (719,875 | ) | $ | 7,780,318 | |||
Equity in income (loss) of unconsolidated limited partnership (1)(2) | $ | (50,397 | ) | $ | 945,101 | |||
-1 | There were no impairment indicators or impairment write offs in the three-month periods ended March 31, 2015 or 2014. | |||||||
-2 | BVF did not have any dispositions during the three-month period ended March 31, 2015. | |||||||
During the three-month period ended March 31, 2014, BVF recorded a net gain on the disposition of two properties. The gain on the sale was $15,247,953, of which the Company's share was approximately $1,067,000 and is reflected in the "Equity in income of unconsolidated multifamily entities" for the three-month period ended March 31, 2014. | ||||||||
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 and the TIC is as follows: | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Multifamily apartment communities, net | $ | 119,584,745 | $ | 120,777,674 | ||||
Cash and cash equivalents | 2,684,176 | 5,404,229 | ||||||
Other assets | 1,131,677 | 1,425,062 | ||||||
Total assets | $ | 123,400,598 | $ | 127,606,965 | ||||
LIABILITIES AND MEMBERS’ CAPITAL | ||||||||
Mortgage note payable | $ | 85,466,258 | $ | 85,466,258 | ||||
Other liabilities | 799,418 | 850,590 | ||||||
Noncontrolling interest | 3,701,033 | 4,123,182 | ||||||
Members’ capital | 33,433,889 | 37,166,935 | ||||||
Total liabilities and members’ capital | $ | 123,400,598 | $ | 127,606,965 | ||||
Company’s share of members’ capital | $ | 9,255,328 | $ | 10,495,636 | ||||
Basis differential (1) | $ | 1,581,664 | $ | 1,598,660 | ||||
Carrying value of the Company’s investment in unconsolidated limited liability companies (2) | $ | 10,836,992 | $ | 12,094,296 | ||||
-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 call. | |||||||
-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 March 31, 2015 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 and the TIC for the three-month periods ended March 31, 2015 and 2014 are as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenue | $ | 3,226,117 | $ | 2,381,898 | ||||
Expenses | (2,931,313 | ) | (3,166,281 | ) | ||||
Noncontrolling interest | (27,851 | ) | 78,429 | |||||
Net income (loss) attributable to investment | $ | 266,953 | $ | (705,954 | ) | |||
Equity in income (loss) of unconsolidated limited liability companies | $ | 93,025 | $ | (245,613 | ) | |||
Amortization of basis | (16,996 | ) | (16,996 | ) | ||||
Adjusted equity in income (loss) of unconsolidated limited liability companies | $ | 76,029 | $ | (262,609 | ) | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The reconciliation of the basic and diluted earnings per common share ("EPS") for the three-month periods ended March 31, 2015 and 2014 follows: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss from continuing operations | $ | (4,229,029 | ) | $ | (3,269,564 | ) | |||
Adjust: | Net (income) loss from continuing operations attributable to noncontrolling interest in properties | 16,736 | (64,984 | ) | |||||
Net loss from continuing operations attributable to noncontrolling interest in Operating Partnership | 5,746,772 | 4,890,009 | |||||||
Preferred dividends | (1,675,193 | ) | (1,675,194 | ) | |||||
Loss from continuing operations attributable to the Company | $ | (140,714 | ) | $ | (119,733 | ) | |||
Net loss from discontinued operations | $ | — | $ | (114,216 | ) | ||||
Adjust: | Net loss from discontinued operations attributable to noncontrolling interest in properties | — | 148 | ||||||
Net loss from discontinued operations attributable to noncontrolling interest in Operating Partnership | — | 111,342 | |||||||
Net loss from discontinued operations attributable to the Company | $ | — | $ | (2,726 | ) | ||||
Net loss available to common shareholders | $ | (140,714 | ) | $ | (122,459 | ) | |||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | |||
Net loss from discontinued operations attributable to the Company per common share, basic and diluted | $ | — | $ | — | |||||
Net loss available to common shareholders per common share, basic and diluted | $ | (0.10 | ) | $ | (0.09 | ) | |||
Weighted average number of common shares outstanding, basic and diluted | 1,406,196 | 1,406,196 | |||||||
Dividend declared per common share | $ | — | $ | 0.339924 | |||||
Earnings_Per_Share_EPS_Correct
Earnings Per Share EPS Correction (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The table below shows as previously reported and as revised EPS for the three-month period ended March 31, 2014: | |||||||
Three months ended March 31, 2014 | ||||||||
As previously reported | As revised | |||||||
Net loss from continuing operations attributable to the Company per common share, basic and diluted | $ | (0.01 | ) | $ | (0.09 | ) | ||
Net loss from discontinued operations attributable to the Company per common share, basic and diluted | $ | (0.08 | ) | $ | — | |||
Net loss available to common shareholders per common share, basic and diluted | $ | (0.09 | ) | $ | (0.09 | ) |
Future_Minimum_Rent_Tables
Future Minimum Rent (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Operating Leased Assets [Line Items] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Some of the Company’s properties have long term non-cancelable operating leases. Minimum contractual lease payments receivable (excluding tenant reimbursement of expenses) under long term non‑cancelable operating leases, in effect as of March 31, 2015 are as follows: | |||
2015 | $ | 185,457 | ||
2016 | 315,467 | |||
2017 | 358,535 | |||
2018 | 375,282 | |||
2019 | 303,622 | |||
Thereafter | 2,511,620 | |||
$ | 4,049,983 | |||
Noncontrolling_Interest_in_Ope1
Noncontrolling Interest in Operating Partnership (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP [Abstract] | |||||||||
Schedule of Calculation of Noncontrolling Interest | The following table sets forth the calculation of net loss attributable to noncontrolling interest in the Operating Partnership for the three-month periods ended March 31, 2015 and 2014: | ||||||||
Three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (4,229,029 | ) | $ | (3,383,780 | ) | |||
Adjust: | Net (income) loss attributable to noncontrolling interest in properties | 16,736 | (64,836 | ) | |||||
Loss before noncontrolling interest in Operating Partnership | (4,212,293 | ) | (3,448,616 | ) | |||||
Preferred dividend | (1,675,193 | ) | (1,675,194 | ) | |||||
Loss available to common equity | (5,887,486 | ) | (5,123,810 | ) | |||||
Noncontrolling interest in Operating Partnership | 97.61 | % | 97.61 | % | |||||
Net loss attributable to noncontrolling interest in Operating Partnership | $ | (5,746,772 | ) | $ | (5,001,351 | ) | |||
Schedule of Noncontrolling Interest | The following table sets forth a summary of the items affecting the noncontrolling interest in the Operating Partnership: | ||||||||
For the three months ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | (19,217,779 | ) | $ | (102,297,937 | ) | |||
Net loss attributable to noncontrolling interest in Operating Partnership | (5,746,772 | ) | (5,001,351 | ) | |||||
Distributions to noncontrolling interest partners in Operating Partnership | (625,300 | ) | (19,578,900 | ) | |||||
Balance at end of period | $ | (25,589,851 | ) | $ | (126,878,188 | ) |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Schedule of Related Party Transactions | Amounts accrued or paid to the Company’s affiliates are as follows: | |||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Property management fees | $ | 720,666 | $ | 785,785 | ||||
Expense reimbursements | 119,428 | 60,135 | ||||||
Salary reimbursements | 1,871,321 | 2,170,753 | ||||||
Asset management fees | 402,155 | 407,913 | ||||||
Incentive advisory fee | 338,605 | 264,045 | ||||||
Acquisition fees | 541,250 | 1,200,000 | ||||||
Construction management fees | 142,278 | 5,844 | ||||||
Development fees | 49,313 | 97,551 | ||||||
Interest | 24,673 | — | ||||||
Total | $ | 4,209,689 | $ | 4,992,026 | ||||
Proforma_Condensed_Financial_I1
Proforma Condensed Financial Information Proforma (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Proforma Condensed Financial Information [Abstract] | ||||||||
Proforma Condensed Financial Information | The proforma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transaction occurred at the beginning of each year, nor does it attempt to represent the results of operations for future periods. | |||||||
Three months ended March 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | (unaudited) | |||||||
Revenue from rental property | $ | 19,250,744 | $ | 24,297,435 | ||||
Net loss | $ | (3,561,673 | ) | $ | (4,008,889 | ) | ||
Net income (loss) attributable to common shareholders | $ | 526,642 | $ | (747,568 | ) | |||
Net income (loss) attributable to common shareholders, per common share, basic and diluted | $ | 0.37 | $ | (0.53 | ) | |||
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
projects | |
communities | |
apartments | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 14 |
Number of Units in Real Estate Property | 4,345 |
Number of Real Estate Development Projects | 2 |
Number of Equity Investments | 2 |
ReitRequiredTaxableIncomeDistributionRate | 90.00% |
Partially Owned Properties [Member] | |
Real Estate Properties [Line Items] | |
Number of Real Estate Properties | 4 |
Wholly Owned Properties [Member] | Gatehouse 75 [Member] | |
Real Estate Properties [Line Items] | |
Number of Units in Real Estate Property | 99 |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation Business Combinations (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Assets acquired: | ||
Multifamily apartment communities | $53,485,875 | $129,560,979 |
Acquired in-place leases and tenant relationships | 639,125 | 1,642,098 |
Prepaid expenses and other assets | 0 | 632,521 |
Liabilities assumed: | ||
Accrued expenses | 24,248 | 511,151 |
Tenant security deposit liability | 80,082 | 241,262 |
Mortgage notes payable | 0 | 70,472,066 |
Gatehouse 75 [Member] | ||
Assets acquired: | ||
Multifamily apartment communities | 53,485,875 | |
Acquired in-place leases and tenant relationships | 639,125 | |
Total assets acquired | 54,125,000 | |
Liabilities assumed: | ||
Accrued expenses | 24,248 | |
Tenant security deposit liability | 80,082 | |
Total liabilities assumed | 104,330 | |
Wholly Owned Properties [Member] | Gatehouse 75 [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | 2-Mar-15 | |
Business Acquisition, Property Price | $54,125,000 |
Multifamily_Apartment_Communit2
Multifamily Apartment Communities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real Estate Investment Property, Net [Abstract] | ||
Land | $85,531,674 | $80,131,674 |
Buildings, improvement and personal property | 645,804,811 | 583,804,249 |
Multifamily apartment communities | 731,336,485 | 663,935,923 |
Accumulated depreciation | -197,479,523 | -190,993,267 |
Multifamily apartment communities, net | $533,856,962 | $472,942,656 |
Multifamily_Apartment_Communit3
Multifamily Apartment Communities : Discontinued Operations (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenue: | ||
Other | $0 | $210 |
Total revenue | 0 | 210 |
Expenses: | ||
Operating | 0 | 112,954 |
General and administrative | 0 | 1,472 |
Total expenses | 0 | 114,426 |
Income (loss) from discontinued operations | $0 | ($114,216) |
Investment_in_Unconsolidated_M2
Investment in Unconsolidated Multifamily Entities : Narrative (Details) (USD $) | 3 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 12, 2005 | Mar. 02, 2011 | Jul. 15, 2014 | Jul. 16, 2014 | |||
apartments | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Distributions from investment in unconsolidated multifamily entities | $0 | $544,680 | |||||||
Commitments and contingencies | 0 | 0 | |||||||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from Equity Method Investment, Cumulative | 25,104,682 | ||||||||
Equity Method Investment, Distribution As Percentage of Total Commitment | 107.30% | ||||||||
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Carrying value of the Company's investment | 1,933,529 | [1] | 1,983,926 | [1] | |||||
Equity Method Investment, Summarized Financial Information, Number of Properties Disposed | 2 | ||||||||
Gain on property sales and extinguishment of debt | 0 | 15,247,953 | |||||||
Equity Method Investment, Aggregate Cost | 23,400,000 | 23,400,000 | |||||||
Equity Method Investment, Ownership Percentage | 7.00% | ||||||||
Equity Method Investment, Funding Percentage of Investment | 100.00% | ||||||||
Equity Method Investment, Summarized Financial Information, Number of Properties Remained | 1 | ||||||||
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Carrying value of the Company's investment | 10,836,992 | [2] | 12,094,296 | [2] | |||||
Maximum [Member] | Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment, Aggregate Cost | 25,000,000 | ||||||||
Equity Method Investment, Ownership Percentage | 7.00% | ||||||||
Gain Loss on Disposition [Member] | Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity in income (loss) of unconsolidated multifamily entities | 1,067,000 | ||||||||
NOMA Residental West I, LLC [Member] | Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
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% | ||||||||
NOMA Residental West I, LLC [Member] | Affiliated Entity [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 67.00% | ||||||||
NOMA Residental West I, LLC [Member] | Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment, Aggregate Cost | 14,520,000 | ||||||||
Equity Method Investment, Ownership Percentage | 33.00% | 33.00% | |||||||
Equity Method Investment, Funding Percentage of Investment | 100.00% | ||||||||
Proceeds from Equity Method Investment, Cumulative | 1,800,000 | ||||||||
Equity Method Investment, Distribution As Percentage of Total Commitment | 12.40% | ||||||||
Equity Method Investment, Accumulated Capitalized Interest Costs | 1,710,327 | ||||||||
NOMA Residental West I, LLC [Member] | Capital Addition Purchase Commitments [Member] | Washington, D.C. [Member] | Joint Venture [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Commitments and contingencies | $14,520,000 | ||||||||
Country Place I & II [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Noncontrolling interest, ownership percentage by noncontrolling partners | 42.00% | ||||||||
Country Place I & II [Member] | Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 58.00% | ||||||||
[1] | 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 MarchB 31, 2015 and has no commitment to make additional contributions to BVF. | ||||||||
[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 MarchB 31, 2015 and has no commitment to make additional contributions to NoMa JV. |
Investment_in_Unconsolidated_M3
Investment in Unconsolidated Multifamily Entities : Summarized Balance Sheets (Details) (Joint Venture [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Equity Method Investee, Unconsolidated Limited Partnership [Member] | ||||
ASSETS | ||||
Multifamily apartment communities, net | $115,007,655 | $116,680,315 | ||
Cash and cash equivalents | 25,078,474 | 25,903,395 | ||
Other assets | 4,402,380 | 4,801,494 | ||
Total assets | 144,488,509 | 147,385,204 | ||
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)/MEMBERS' CAPITAL | ||||
Mortgage notes payable | 132,985,494 | 133,445,626 | ||
Other liabilities | 3,286,749 | 3,940,477 | ||
Noncontrolling interest | -10,769,407 | -9,706,447 | ||
Partners' Equity (Deficit)/Members' capital | 18,985,673 | 19,705,548 | ||
Total liabilities and members' equity (deficit)/partners' capital | 144,488,509 | 147,385,204 | ||
Company's share of partners' capital | 1,329,134 | 1,379,531 | ||
Basis differential | 604,395 | [1] | 604,395 | [1] |
Carrying value of the Company's investment | 1,933,529 | [2] | 1,983,926 | [2] |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity, Syndication Costs | 583,240 | |||
Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ||||
ASSETS | ||||
Multifamily apartment communities, net | 119,584,745 | 120,777,674 | ||
Cash and cash equivalents | 2,684,176 | 5,404,229 | ||
Other assets | 1,131,677 | 1,425,062 | ||
Total assets | 123,400,598 | 127,606,965 | ||
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)/MEMBERS' CAPITAL | ||||
Mortgage notes payable | 85,466,258 | 85,466,258 | ||
Other liabilities | 799,418 | 850,590 | ||
Noncontrolling interest | 3,701,033 | 4,123,182 | ||
Partners' Equity (Deficit)/Members' capital | 33,433,889 | 37,166,935 | ||
Total liabilities and members' equity (deficit)/partners' capital | 123,400,598 | 127,606,965 | ||
Company's share of partners' capital | 9,255,328 | 10,495,636 | ||
Basis differential | 1,581,664 | [3] | 1,598,660 | [3] |
Carrying value of the Company's investment | $10,836,992 | [4] | $12,094,296 | [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 MarchB 31, 2015 and DecemberB 31, 2014, the differential was comprised mainly of $583,240, which represents the Companybs share of syndication costs incurred by BVF that the Company was not required to fund via a separate capital call. | |||
[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 MarchB 31, 2015 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 call. | |||
[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 MarchB 31, 2015 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 | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity in income (loss) of unconsolidated multifamily entities | $25,632 | $682,492 |
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Partnership [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 4,128,825 | 28,763,720 |
Expenses | -5,911,660 | -37,257,755 |
Gain on property sales and extinguishment of debt | 0 | 15,247,953 |
Noncontrolling interest | 1,062,960 | 1,026,400 |
Net income (loss) attributable to investment | -719,875 | 7,780,318 |
Equity in income (loss) of unconsolidated multifamily entities | -50,397 | 945,101 |
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 3,226,117 | 2,381,898 |
Expenses | -2,931,313 | -3,166,281 |
Noncontrolling interest | -27,851 | 78,429 |
Net income (loss) attributable to investment | 266,953 | -705,954 |
Equity in income (loss) of unconsolidated mutlifamily entities, before amortization of basis | 93,025 | -245,613 |
Amortization of basis | -16,996 | -16,996 |
Equity in income (loss) of unconsolidated multifamily entities | $76,029 | ($262,609) |
Mortgage_Notes_Payable_Details
Mortgage Notes Payable (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 12, 2012 | Mar. 02, 2015 | Jan. 23, 2014 | Jul. 23, 2014 | Dec. 22, 2014 | Nov. 07, 2014 | Feb. 27, 2015 | Dec. 31, 2014 | |
apartments | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | $75,789,994 | $44,001,003 | ||||||||
Repayments of Secured Debt | 940,488 | 1,577,183 | ||||||||
Mortgage notes payable | 511,538,866 | 436,785,408 | ||||||||
Number of Units in Real Estate Property | 4,345 | |||||||||
Mortgage notes payable | 0 | 70,472,066 | ||||||||
Repayments of mortgage notes payable | 0 | 37,083,389 | ||||||||
Fair Value Measurements, Loan-to-Value Percentage Threshold for Further Stratification of Valuation Model | 80.00% | |||||||||
Loans Payable, Fair Value Disclosure | 543,800,000 | 482,196,000 | ||||||||
2020 Lawrence [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||
Debt Instrument, Maturity Date | 11-Jun-22 | |||||||||
Gatehouse 75 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | 36,210,000 | |||||||||
Debt Instrument, Maturity Date | 1-Apr-22 | |||||||||
Walnut Creek [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Units in Development Projects | 141 | |||||||||
Construction Loans [Member] | Aura Prestonwood [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Borrowing Capacity, Amount | 31,054,212 | |||||||||
Debt Instrument, Interest Rate Terms | 2.50% above the 1-month LIBOR | |||||||||
Mortgage notes payable | 21,082,493 | |||||||||
Debt Instrument, Maturity Date | 22-Jan-17 | |||||||||
Construction Loans [Member] | Walnut Creek [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Borrowing Capacity, Amount | 44,500,000 | |||||||||
Mortgage notes payable | 0 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.31% | |||||||||
Debt Instrument, Maturity Date | 1-Aug-24 | |||||||||
Notes Payable to Banks [Member] | 2020 Lawrence [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | 225,554 | |||||||||
Repayments of Secured Debt | 193,554 | |||||||||
Mortgage notes payable | 32,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |||||||||
Debt Instrument, Maturity Date | 29-May-15 | 22-Mar-15 | 22-Dec-14 | |||||||
First Mortgage [Member] | Elan Redmond Town Center [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | 19,990,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.33% | |||||||||
Debt Instrument, Maturity Date | 1-Mar-22 | |||||||||
First Mortgage [Member] | Gatehouse 75 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | 21,800,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.35% | |||||||||
Second Mortgage [Member] | Elan Redmond Town Center [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | 12,250,000 | |||||||||
Debt Instrument, Interest Rate Terms | 1.99% above the 1-month LIBOR | |||||||||
Debt Instrument, Maturity Date | 1-Mar-22 | |||||||||
Second Mortgage [Member] | Gatehouse 75 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from mortgage notes payable | $14,410,000 | |||||||||
Debt Instrument, Interest Rate Terms | 1.95% above the 1-month LIBOR |
Revolving_Credit_Facility_Affi1
Revolving Credit Facility - Affiliate (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||||||||
Jan. 21, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 | Jan. 22, 2015 | Jan. 21, 2015 | Dec. 30, 2014 | Aug. 30, 2014 | Aug. 29, 2014 | Feb. 17, 2011 | |
Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $90,000,000 | $45,000,000 | $45,000,000 | $60,000,000 | $45,000,000 | $60,000,000 | $75,000,000 | $90,000,000 | ||
Line of Credit Facility, Interest Rate Description | 3.75% above the 30-day LIBOR | |||||||||
Line of Credit Facility, Commitment Fee Amount | 17,676 | 48,028 | ||||||||
Revolving Credit Facility [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 | |||||||||
Revolving Credit Facility [Member] | Affiliated Entity [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Commitment Fee Amount | $400,000 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 21, 2014 | Dec. 31, 2014 | Feb. 28, 2015 | Jan. 22, 2015 | Jan. 21, 2015 | Dec. 30, 2014 | Aug. 30, 2014 | Aug. 29, 2014 | |
Line of Credit Facility [Line Items] | ||||||||||
Borrowings from Credit Facility | $9,000,000 | $80,000,000 | ||||||||
Repayments of Lines of Credit | 31,000,000 | 0 | ||||||||
Credit Facility | 19,000,000 | 41,000,000 | ||||||||
Line of Credit [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Interest Expense | 368,008 | 323,841 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 45,000,000 | 90,000,000 | 45,000,000 | 60,000,000 | 45,000,000 | 60,000,000 | 75,000,000 | 90,000,000 | ||
Line of Credit Facility, Interest Rate Description | 3.75% above the 30-day LIBOR | |||||||||
Line of Credit Facility, Expiration Date | 21-Jan-17 | |||||||||
Line of Credit Facility, Commitment Fee Description | The Credit Facility provides for unused commitment fees of 0.50% per annum if the unused amount is equal to or greater than 50% of the applicable maximum commitment and 0.35% per annum if such unused amount is less than 50%. | |||||||||
Line of Credit Facility, Commitment Fee Amount | $17,676 | $48,028 |
Note_Payable_Affiliate_Details
Note Payable - Affiliate (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 02, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Borrowings from note payable - affiliate | $5,800,000 | $0 | ||
Note payable - affiliate | 5,800,000 | 0 | ||
Affiliated Entity [Member] | ||||
Debt Instrument [Line Items] | ||||
Borrowings from note payable - affiliate | 5,800,000 | |||
Note payable - affiliate | $0 | |||
Debt Instrument, Interest Rate Terms | 5.00% above the 1-month LIBOR | |||
Debt Instrument, Maturity Date | 31-Dec-16 |
Note_Payable_Other_Details
Note Payable - Other (Details) (USD $) | 0 Months Ended | ||
Jun. 12, 2012 | Mar. 31, 2015 | Dec. 31, 2014 | |
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 | $1,362,000 | $1,374,000 |
Equity_Deficit_Details
Equity / Deficit (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||||||
Feb. 15, 2015 | Nov. 15, 2014 | Aug. 15, 2014 | 15-May-14 | Jan. 17, 2014 | Mar. 25, 2003 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Distributions Made to Partners [Line Items] | |||||||||
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears | $0.56 | $0.56 | $0.56 | $0.56 | |||||
Preferred Stock, Dividend Rate, Percentage | 9.00% | ||||||||
Preferred Stock, Liquidation Preference Per Share | $25 | ||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | $1,675,193 | $1,675,194 | |||||||
Dividend and distributions payable | 1,462,907 | 837,607 | |||||||
Distributions | 20,000,000 | ||||||||
Distribution, Payment Date | 17-Jan-14 | ||||||||
Common Stock, Dividends, Per Share, Declared | $0 | $0.34 | |||||||
Distributions to common shareholders | 0 | 478,000 | |||||||
Distributions to noncontrolling interest partners in Operating Partnership | 0 | 19,578,900 | |||||||
Common Class B | |||||||||
Distributions Made to Partners [Line Items] | |||||||||
Common Stock, Dividends, Per Share, Declared | $0.34 | ||||||||
Dividends Payable, Date to be Paid | 17-Jan-14 | ||||||||
Preferred Stock [Member] | Series A Preferred Stock | |||||||||
Distributions Made to Partners [Line Items] | |||||||||
Dividend and distributions payable | 837,607 | 837,607 | |||||||
Distributions | 0 | 0 | |||||||
Common Stock [Member] | Common Class B | |||||||||
Distributions Made to Partners [Line Items] | |||||||||
Distributions | 0 | 0 | |||||||
Noncontrolling interest in Operating Partnership | |||||||||
Distributions Made to Partners [Line Items] | |||||||||
Distributions | 625,300 | 19,578,900 | |||||||
Adjustments Related to Tax Withholding for Sale of Property | 0 | 56,900 | |||||||
Noncontrolling interest in Operating Partnership | Series A Preferred Stock | |||||||||
Distributions Made to Partners [Line Items] | |||||||||
Dividend and distributions payable | $625,300 | $0 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 17, 2014 | |
Loss from continuing operations attributable to the Company | |||
Net loss from continuing operations | ($4,229,029) | ($3,269,564) | |
Net (income) loss from continuing operations attributable to noncontrolling interest in properties | 16,736 | -64,984 | |
Net loss from continuing operations attributable to noncontrolling interest in Operating Partnership | 5,746,772 | 4,890,009 | |
Preferred dividend | -1,675,193 | -1,675,194 | |
Loss from continuing operations attributable to the Company | -140,714 | -119,733 | |
Net loss from discontinued operations attributable to the Company | |||
Net loss from discontinued operations | 0 | -114,216 | |
Net loss from discontinued operations attributable to noncontrolling interest in properties | 0 | 148 | |
Net loss from discontinued operations attributable to noncontrolling interest in Operating Partnership | 0 | 111,342 | |
Net loss from discontinued operations attributable to the Company | 0 | -2,726 | |
Net loss available to common shareholders | ($140,714) | ($122,459) | |
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.10) | ($0.09) | |
Net loss from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | $0 | $0 | |
Net loss available to common shareholders per common share, basic and diluted | ($0.10) | ($0.09) | |
Weighted average number of common shares outstanding, basic and diluted (shares) | 1,406,196 | 1,406,196 | |
Common Stock, Dividends, Per Share, Declared | $0 | $0.34 | |
Common Class B | |||
Net loss from discontinued operations attributable to the Company | |||
Common Stock, Dividends, Per Share, Declared | $0.34 |
Earnings_Per_Share_EPS_Correct1
Earnings Per Share EPS Correction (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.10) | ($0.09) |
Net loss from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | $0 | $0 |
Net loss available to common shareholders per common share, basic and diluted | ($0.10) | ($0.09) |
Adjustments for Error Corrections, Out of Period Adjustment [Member] | Scenario, Previously Reported [Member] | ||
Net loss from continuing operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.01) | |
Net loss from discontinued operations attributable to the Company per common share, basic and diluted (dollars per share) | ($0.08) | |
Net loss available to common shareholders per common share, basic and diluted | ($0.09) |
Future_Minimum_Rent_Details
Future Minimum Rent (Details) (USD $) | Mar. 31, 2015 |
Operating Leased Assets [Line Items] | |
Operating Leases, Future Minimum Payments Receivable, Current | $185,457 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 315,467 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 358,535 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 375,282 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 303,622 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 2,511,620 |
Operating Leases, Future Minimum Payments Receivable | $4,049,983 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Jan. 23, 2014 | Jul. 23, 2014 | |
apartments | apartments | |||
Long-term Purchase Commitment [Line Items] | ||||
Commitments and contingencies | 0 | $0 | ||
Number of Real Estate Development Projects | 2 | |||
Joint Venture [Member] | Capital Addition Purchase Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of Real Estate Development Projects | 2 | 2 | ||
Walnut Creek [Member] | Joint Venture [Member] | Capital Addition Purchase Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Development Projects, Ownership Percentage | 98.00% | |||
Aura Prestonwood [Member] | Joint Venture [Member] | Capital Addition Purchase Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Funding Percentage of Investment | 100.00% | |||
Partially Owned Properties [Member] | Walnut Creek [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Real Estate Property, Ownership Percentage | 98.00% | |||
Partially Owned Properties [Member] | Aura Prestonwood [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Real Estate Property, Ownership Percentage | 95.00% | |||
Mortgage Loans on Real Estate [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 11,700,000 | |||
Mortgage Loans on Real Estate [Member] | Berkshires at Town Center [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 3,000,000 | |||
Construction Loans [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 44,500,000 | |||
Aura Prestonwood [Member] | Joint Venture [Member] | Capital Addition Purchase Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Commitments and contingencies | 12,600,000 | |||
Aura Prestonwood [Member] | Partially Owned Properties [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of Units in Development Projects | 322 | |||
Walnut Creek [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Number of Units in Development Projects | 141 | |||
Walnut Creek [Member] | Joint Venture [Member] | Capital Addition Purchase Commitments [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Commitments and contingencies | 26,900,000 | |||
Investment Owned, at Cost | 18,700,000 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Payments for Hedge, Financing Activities | $258,990 | ||
Derivative, Cap Interest Rate | 4.25% | ||
Derivative, Notional Amount | 44,000,000 | ||
Derivative, Maturity Date | 1-Feb-18 | ||
Interest Rate Derivative Assets, at Fair Value | $23,937 | $50,224 |
Noncontrolling_Interest_in_Pro1
Noncontrolling Interest in Properties (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jul. 15, 2014 | Dec. 31, 2014 | Jul. 16, 2014 | |
communities | |||||
Noncontrolling Interest [Line Items] | |||||
Number of Real Estate Properties | 14 | ||||
Contribution from noncontrolling interest holders in properties | $0 | $619,093 | |||
Payments to Noncontrolling Interests | 16,104 | 947,980 | |||
Dividend and distributions payable | 1,462,907 | 837,607 | |||
Noncontrolling interest in properties | |||||
Noncontrolling Interest [Line Items] | |||||
Contributions | 0 | 619,093 | |||
Distributions | $16,104 | $947,980 | |||
Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Number of Real Estate Properties | 4 | ||||
Berkshires of Columbia [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 91.38% | ||||
Country Place I [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 58.00% | ||||
Country Place II [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 58.00% | ||||
2020 Lawrence [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 91.08% | ||||
Walnut Creek [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 98.00% | ||||
Aura Prestonwood [Member] | Partially Owned Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Real Estate Property, Ownership Percentage | 95.00% | ||||
Country Place I & II [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by noncontrolling partners | 42.00% | ||||
Joint Venture [Member] | Equity Method Investee, Unconsolidated Limited Liability Company [Member] | Country Place I & II [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 58.00% |
Noncontrolling_Interest_in_Ope2
Noncontrolling Interest in Operating Partnership (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Jan. 17, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Noncontrolling Interest [Line Items] | ||||
Net loss | ($4,229,029) | ($3,383,780) | ||
Net (income) loss attributable to noncontrolling interest in properties | 16,736 | -64,836 | ||
Loss before noncontrolling interest in Operating Partnership | -4,212,293 | -3,448,616 | ||
Preferred dividend | -1,675,193 | -1,675,194 | ||
Distributions | 20,000,000 | |||
Loss available to common equity | -5,887,486 | -5,123,810 | ||
Net loss attributable to noncontrolling interest in Operating Partnership | -5,746,772 | -5,001,351 | ||
Noncontrolling Interest, Ownership Units Held by Noncontrolling Owners | 5,242,223 | 5,242,223 | ||
Noncontrolling interest in Operating Partnership | ||||
Noncontrolling Interest [Line Items] | ||||
Net loss | -5,746,772 | -5,001,351 | ||
Noncontrolling interest, ownership percentage by noncontrolling partners | 97.61% | 97.61% | ||
Net loss attributable to noncontrolling interest in Operating Partnership | ($5,746,772) | ($5,001,351) |
Noncontrolling_Interest_in_Ope3
Noncontrolling Interest in Operating Partnership Summary of Noncontrolling Interest (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Net loss attributable to noncontrolling interest in Operating Partnership | ($5,746,772) | ($5,001,351) | |
Noncontrolling Interest, Ownership Units Held by Noncontrolling Owners | 5,242,223 | 5,242,223 | |
Noncontrolling interest in Operating Partnership | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Net loss attributable to noncontrolling interest in Operating Partnership | -5,746,772 | -5,001,351 | |
Distributions to noncontrolling interest partners in Operating Partnership | 625,300 | 19,578,900 | |
Balance at beginning of period | -19,217,779 | ||
Noncontrolling interest, ownership percentage by noncontrolling partners | 97.61% | 97.61% | |
Balance at end of period | ($25,589,851) | ($126,878,188) |
Related_Party_Transactions_Amo
Related Party Transactions : Amount Accrued or Paid to Affiliates (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $4,209,689 | $4,992,026 |
Related_Party_Transactions_Rel
Related Party Transactions : Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | ($3,148,517) | ($3,085,668) | |
Due to Affiliate | 5,264,543 | 5,146,525 | |
Due from Affiliates | 2,116,026 | 2,060,857 | |
Note payable - affiliate | 5,800,000 | 0 | |
Related Party Transaction, Amounts of Transaction | 4,209,689 | 4,992,026 | |
Borrowings from note payable - affiliate | 5,800,000 | 0 | |
Due to affiliate, incentive advisory fees | 13,868,578 | 13,698,562 | |
Borrowings from Credit Facility | 9,000,000 | 80,000,000 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Note payable - affiliate | 0 | ||
Borrowings from note payable - affiliate | 5,800,000 | ||
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 | 720,666 | 785,785 | |
Property management fees [Member] | Aura Prestonwood [Member] | Berkshire Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Fee, Rate | 2.75% | ||
Expense reimbursements [Member] | Berkshire Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 119,428 | 60,135 | |
Salary reimbursements [Member] | Berkshire Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 1,871,321 | 2,170,753 | |
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 | 402,155 | 407,913 | |
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 | 338,605 | 264,045 | |
Related Party Transaction, Required Accrual Rate Above the Established Base Value | 10.00% | ||
Related Party Transaction, Amount Received (Paid) During Period | 168,589 | 146,103 | |
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] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 541,250 | 1,200,000 | |
Acquisition fees [Member] | Berkshire Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Fee, Rate | 1.00% | ||
Acquisition fees [Member] | Gatehouse 75 [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 541,250 | ||
Acquisition fees [Member] | Pavilion Townplace [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 560,000 | ||
Acquisition fees [Member] | EON at Lindbergh [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 640,000 | ||
Construction management fees [Member] | Berkshire Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 142,278 | 5,844 | |
Development fees [Member] | Berkshire Residental Development [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 49,313 | 97,551 | |
Interest Expense [Member] | Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $24,673 | $0 |
Proforma_Condensed_Financial_I2
Proforma Condensed Financial Information Details (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Pro Forma Revenue | $19,250,744 | $24,297,435 |
Business Acquisition, Pro Forma Net Income (Loss) | -3,561,673 | -4,008,889 |
Business Acquisition, Pro Forma Net Income (Loss) Attributable to Common Shareholders | 526,642 | -747,568 |
Business Acquisition, Pro Forma Net Income (Loss) Attributable to Common Shareholders, per Share, Basic | $0.37 | ($0.53) |
Revenues | 18,665,653 | 21,176,665 |
Net loss | -4,229,029 | -3,383,780 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Revenues | 3,918,465 | 320,573 |
Net loss | ($1,739,667) | ($1,167,703) |