Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 10, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Summit Healthcare REIT, Inc | |
Entity Central Index Key | 1,310,383 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 23,027,978 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 10,092,000 | $ 4,405,000 |
Restricted cash | 4,212,000 | 3,759,000 |
Real estate properties (certain assets held in variable interest entity): | ||
Land | 6,502,000 | 8,432,000 |
Buildings and improvements, net | 60,026,000 | 84,428,000 |
Furniture and fixtures, net | 3,373,000 | 5,862,000 |
Real estate properties, net | 69,901,000 | 98,722,000 |
Notes receivable | 4,840,000 | 132,000 |
Deferred costs and deposits | 532,000 | 356,000 |
Deferred financing costs, net | 1,340,000 | 1,453,000 |
Tenant and other receivables, net | 3,797,000 | 2,599,000 |
Deferred leasing commissions, net | 1,738,000 | 1,859,000 |
Other assets, net | 346,000 | 657,000 |
Equity-method investment | 884,000 | 0 |
Assets of variable interest entity held for sale | 0 | 4,139,000 |
Total assets | 97,682,000 | 118,081,000 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 2,475,000 | 1,995,000 |
Accrued salaries and benefits | 153,000 | 342,000 |
Security deposits | 1,399,000 | 2,029,000 |
Liabilities (certain liabilities held in variable interest entity): | ||
Loans payable, net of debt discounts | 57,977,000 | 77,972,000 |
Liabilities of variable interest entity held for sale | 0 | 2,700,000 |
Total liabilities | $ 62,004,000 | $ 85,038,000 |
Commitments, contingencies and subsequent events | ||
Stockholders' Equity | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at September 30, 2015 and December 31, 2014 | ||
Common stock, $0.001 par value; 290,000,000 shares authorized; 23,027,978 and 23,028,014 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 23,000 | $ 23,000 |
Additional paid-in capital | 117,226,000 | 117,226,000 |
Accumulated deficit | (83,121,000) | (80,873,000) |
Total stockholders’ equity | 34,128,000 | 36,376,000 |
Noncontrolling interest | 1,550,000 | (3,333,000) |
Total equity | 35,678,000 | 33,043,000 |
Total liabilities and stockholders’ equity | $ 97,682,000 | $ 118,081,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 290,000,000 | 290,000,000 |
Common stock, shares issued | 23,027,978 | 23,028,014 |
Common stock, shares outstanding | 23,027,978 | 23,028,014 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Rental revenues | $ 1,657,000 | $ 1,662,000 | $ 6,350,000 | $ 5,027,000 |
Resident services and fee income | 2,381,000 | 2,100,000 | 6,931,000 | 3,559,000 |
Tenant reimbursements and other income | 232,000 | 181,000 | 806,000 | 554,000 |
Acquisition and asset management fees | 25,000 | 0 | 447,000 | 0 |
Interest income from notes receivable | 2,000 | 0 | 6,000 | 4,000 |
Revenues, Total | 4,297,000 | 3,943,000 | 14,540,000 | 9,144,000 |
Expenses: | ||||
Property operating costs | 460,000 | 397,000 | 1,590,000 | 1,236,000 |
Resident services costs | 1,924,000 | 1,784,000 | 5,548,000 | 2,990,000 |
General and administrative | 999,000 | 1,141,000 | 3,076,000 | 2,917,000 |
Asset management fees and expenses | 0 | 0 | 0 | 205,000 |
Real estate acquisition costs | 0 | (4,000) | 0 | 0 |
Depreciation and amortization | 889,000 | 873,000 | 3,154,000 | 2,984,000 |
Reserve for excess advisor obligation | 0 | 0 | 0 | 189,000 |
Costs and Expenses, Total | 4,272,000 | 4,191,000 | 13,368,000 | 10,521,000 |
Operating income (loss) | 25,000 | (248,000) | 1,172,000 | (1,377,000) |
Income from equity-method investee | 26,000 | 0 | 43,000 | 0 |
Other income | 16,000 | 0 | 26,000 | 104,000 |
Interest expense | (723,000) | (882,000) | (2,662,000) | (2,319,000) |
Gain on disposition of real estate properties | 0 | 0 | 991,000 | 0 |
Loss from continuing operations | (656,000) | (1,130,000) | (430,000) | (3,592,000) |
Income (loss) from discontinued operations | (117,000) | 36,000 | (1,699,000) | (200,000) |
Net loss | (773,000) | (1,094,000) | (2,129,000) | (3,792,000) |
Noncontrolling interests’ share in losses | (43,000) | 135,000 | (119,000) | 713,000 |
Net loss applicable to common stockholders | $ (816,000) | $ (959,000) | $ (2,248,000) | $ (3,079,000) |
Basic and diluted income (loss) per common share: | ||||
Continuing operations applicable to common stockholders (in dollars per share) | $ (0.03) | $ (0.04) | $ (0.02) | $ (0.16) |
Discontinued operations (in dollars per share) | 0 | 0 | (0.07) | 0.03 |
Net loss applicable to common stockholders (in dollars per share) | $ (0.03) | $ (0.04) | $ (0.09) | $ (0.13) |
Weighted average shares used to calculate basic and diluted net loss per common share (in shares) | 23,027,978 | 23,028,014 | 23,027,978 | 23,028,014 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 30, 2015 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Parent [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2014 | $ 33,043,000 | $ 23,000 | $ 117,226,000 | $ (80,873,000) | $ 36,376,000 | $ (3,333,000) |
Balance (in shares) at Dec. 31, 2014 | 23,028,014 | |||||
Distributions paid to noncontrolling interests | (114,000) | $ 0 | 0 | 0 | 0 | (114,000) |
Surrendered shares | 0 | $ 0 | 0 | 0 | 0 | 0 |
Surrendered shares (in shares) | (36) | |||||
Decrease in noncontrolling interests related to disposition of a VIE | 4,878,000 | $ 0 | 0 | 0 | 0 | 4,878,000 |
Net (loss) income | (2,129,000) | 0 | 0 | (2,248,000) | (2,248,000) | 119,000 |
Balance at Sep. 30, 2015 | $ 35,678,000 | $ 23,000 | $ 117,226,000 | $ (83,121,000) | $ 34,128,000 | $ 1,550,000 |
Balance (in shares) at Sep. 30, 2015 | 23,027,978 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (2,129,000) | $ (3,792,000) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by (used in) operating activities: | ||
Amortization of deferred financing costs and debt discounts | 172,000 | 263,000 |
Depreciation and amortization | 3,154,000 | 2,984,000 |
Straight-line rents | (755,000) | (339,000) |
Bad debt expense | 225,000 | 37,000 |
Loss on disposition of VIE | 1,582,000 | 0 |
Gain on disposition of real estate properties | (991,000) | 0 |
Income from equity-method investee | (43,000) | 0 |
Change in operating assets and liabilities: | ||
Tenant and other receivables, net | (330,000) | (849,000) |
Prepaid and other assets | 301,000 | 15,000 |
Prepaid rent, security deposit and deferred revenues | 99,000 | (425,000) |
Related party receivables | 0 | (173,000) |
Accounts payable and accrued liabilities | 738,000 | 1,048,000 |
Accrued salaries and benefits | (188,000) | 0 |
Net cash and cash equivalents provided by (used in) operating activities | 1,835,000 | (1,231,000) |
Cash flows from investing activities | ||
Restricted cash | (710,000) | (2,422,000) |
Deferred costs and deposits | (491,000) | (233,000) |
Real estate acquisitions and capitalized costs | (14,300,000) | (8,036,000) |
Real estate improvements, net | (82,000) | (226,000) |
Distributions receivable | (490,000) | 0 |
Distributions received from equity method investee | 23,000 | 0 |
Payments from note receivable | 22,000 | 69,000 |
Proceeds from contribution of properties | 9,908,000 | 0 |
Net cash and cash equivalents used in investing activities | (6,120,000) | (10,848,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of loans payable | 11,440,000 | 30,240,000 |
Payments of loans payable | (1,240,000) | (22,020,000) |
Security deposits received | 0 | 21,000 |
Non-controlling interest contribution | 0 | 257,000 |
Distributions paid to non-controlling interests | (114,000) | (28,000) |
Deferred financing costs | (114,000) | (906,000) |
Net cash and cash equivalents provided by financing activities | 9,972,000 | 7,564,000 |
Net increase (decrease) in cash and cash equivalents | 5,687,000 | (4,515,000) |
Cash and cash equivalents - beginning of period | 4,405,000 | 10,662,000 |
Cash and cash equivalents - end of period (including cash of VIE held for sale) | 10,092,000 | 6,147,000 |
Less cash and cash equivalents of VIE held for sale - end of period (see Note 10) | 0 | (17,000) |
Cash and cash equivalents - end of period | 10,092,000 | 6,130,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 2,456,000 | 2,023,000 |
Security deposit not received | $ 0 | $ 198,000 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - non-cash effect | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Contribution of Property | $ 9,908,000 |
Loans Payable [Member] | |
Contribution of Property | 30,133,000 |
Other Liabilities [Member] | |
Contribution of Property | 1,182,000 |
Other Assets [Member] | |
Contribution of Property | (832,000) |
Real Estate Properties [Member] | |
Contribution of Property | $ (40,391,000) |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Supplemental disclosure of non-cash investing activities: | |
In January 2015, the Company sold its interests in Sherburne Commons for a note receivable for $5.0 million due in December 2017 (see Note 6) | $ 4,840,000 |
In January 2015, $207,000 of deferred costs were reclassified to real estate acquisitions | $ 207,000 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Summit Healthcare REIT, Inc. (“Summit”) is a real estate investment trust that owns 11 properties and has a 10 Generally we conduct substantially all of our operations through Summit Healthcare Operating Partnership, L.P. (the “Operating Partnership”), which is a Delaware limited partnership. At September 30, 2015, we own a 99.88 0.12 Cornerstone Healthcare Partners LLC In 2012, we formed Cornerstone Healthcare Partners LLC (“CHP LLC”) with Cornerstone Healthcare Real Estate Fund, Inc. (“CHREF”), an affiliate of CRA. We own 95 5 During 2012, we acquired the following healthcare properties through CHP LLC (collectively, the “JV Properties”): Sheridan Care Center, Fernhill Care Center, Farmington Square, Friendship Haven Healthcare and Rehabilitation Center (“Friendship Haven”) and Pacific Health and Rehabilitation Center. In the third quarter of 2013, CHP LLC sold a portion of its interests in the JV Properties to third party investors. Proceeds from the sale of interests in these JV Properties were approximately $ 0.9 0.9 41,000 89.0 4.7 6.3 0.9 95.3 4.7 Friendswood TRS In May 2014, we formed a taxable REIT subsidiary (“Friendswood TRS”) which became the licensed operator and tenant of Friendship Haven (see Note 4). Summit Union Life Holdings, LLC On April 29, 2015, through our Operating Partnership, we entered into a limited liability company agreement (“SUL LLC Agreement”) with Best Years, LLC (“Best Years”), an unrelated entity and a U.S.-based affiliate of Union Life Insurance Co, Ltd. (“Union Life”), and formed Summit Union Life Holdings, LLC (“SUL JV”). In conjunction with the SUL JV, the Operating Partnership contributed all of its limited liability company interest in each of six limited liability companies that collectively own Lamar Estates, Monte Vista Estates, Myrtle Point Care Center, Gateway Care and Retirement Center, Applewood Retirement Community and Loving Arms Assisted Living (collectively, the “JV 2 Properties”) to the SUL JV, resulting in the SUL JV owning each of the JV 2 Properties. Best Years, in conjunction with the SUL JV, contributed cash in the amount of approximately $ 9.9 9.2 715,000 10 90 362,000 As a result of the SUL JV, the JV 2 Properties are no longer consolidated in the Company’s financial results, commencing April 30, 2015. The SUL JV is accounted for under the equity-method in the Company’s consolidated financial statements (see Note 11). We recorded a partial gain of approximately $ 1.0 Summit Healthcare Asset Management, LLC (TRS) Additionally, as part of the SUL JV, we formed Summit Healthcare Asset Management, LLC (the “Management Company”) as a wholly-owned taxable REIT subsidiary (TRS). We serve as the manager of the SUL JV and provide various services in exchange for fees and reimbursements. All acquisition fees and management fees will be paid to the Management Company and expenses incurred by us, as the manager, will be reimbursed from the Management Company. Under the SUL LLC Agreement, Best Years paid the Management Company a one-time acquisition fee equal to 1 405,000 0.25 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies For more information regarding our significant accounting policies and estimates, please refer to “Summary of Significant Accounting Policies” contained in our Annual Report on Form 10-K for the year ended December 31, 2014 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 20, 2015. There have been no material changes to our policies since that filing, except as disclosed herein. The accompanying condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date. We assume that users of these condensed consolidated financial statements have read or have access to the audited December 31, 2014 consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 20, 2015 and that the adequacy of additional disclosure needed for a fair presentation, except in regard to material contingencies, may be determined in that context. Accordingly, footnotes and other disclosures which would substantially duplicate those contained in our most recent Annual Report on Form 10-K for the year ended December 31, 2014 have been omitted in this report. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, CHP LLC (of which the Company owns 95 The accompanying financial information reflects all adjustments, which are, in the opinion of management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. We report our investment in an unconsolidated entity, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the entity’s earnings or losses is included in our condensed consolidated statements of operations. Additionally, we adjust our investment carrying amount to reflect our share of changes in an equity-method investee’s capital resulting from its capital transactions. The initial carrying value of our equity-method investment in the SUL JV is based on the carrying value of the net assets of the JV 2 Properties at the time of contribution. We evaluate our equity-method investment for impairment whenever events or changes in circumstances indicate that the carrying value of our investment may exceed the fair value. If it is determined that a decline in the fair value of our investment is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. Our estimates consider all available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors. The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The Company has evaluated the impact of this new standard and does not expect it to have a significant effect on the condensed consolidated financial statements, when adopted. The FASB has issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. Revenue from Contracts with Customers (Topic 606). Certain amounts in the Company’s condensed consolidated statements of operations for property operating costs and resident services costs for the prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on total consolidated results of operations for prior periods. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 3. Fair Value Measurements of Financial Instruments Our condensed consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, notes receivable (except as noted below), deferred costs and deposits, tenant and other receivables, deferred leasing commissions, certain other assets, accounts payable and accrued liabilities, security deposits and loans payable. With the exception of the Nantucket note receivable (see Note 6) and loans payable discussed below, we consider the carrying values to approximate fair value for such financial instruments because of the short period of time between origination of the instruments and their expected payment. As of September 30, 2015, the fair value of the Nantucket note receivable (see Note 6) was $ 4.9 4.7 As of September 30, 2015 and December 31, 2014, the fair value of loans payable was $ 59.6 80.1 58.6 78.8 4.4 4.75 4.47 As a result of our ongoing analysis for potential impairment of our investments in real estate, we may be required to adjust the carrying value of certain assets to their estimated fair values, or estimated fair value less selling costs, under certain circumstances (see Note 4). No impairments were recorded during the three and nine months ended September 30, 2015. At September 30, 2015 and December 31, 2014, we do not have any financial assets or financial liabilities that are measured at fair value on a recurring basis in our condensed consolidated financial statements. |
Investments in Real Estate Prop
Investments in Real Estate Properties | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 4. Investments in Real Estate Properties September 30, December 31, 2015 2014 Land $ 6,502,000 $ 8,432,000 Buildings and improvements 65,319,000 88,241,000 Less: accumulated depreciation (5,293,000) (3,813,000) Buildings and improvements, net 60,026,000 84,428,000 Furniture and fixtures 6,550,000 8,133,000 Less: accumulated depreciation (3,177,000) (2,271,000) Furniture and fixtures, net 3,373,000 5,862,000 Real estate properties, net $ 69,901,000 $ 98,722,000 In April 2015, we formed the SUL JV with Best Years and contributed the JV 2 Properties to the SUL JV. See Notes 10 and 11 for further information regarding the disposition of our real estate properties and equity-method investment. As of September 30, 2015, our portfolio consists of 11 100 Loans Payable Purchase as of Number of Property (1) Location Date Purchased Type (3) Price September 30, 2015 Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 5,081,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 4,458,000 63 Farmington Square Medford, OR September 14, 2012 AL/MC 8,500,000 6,792,000 71 Friendship Haven Healthcare and Rehabilitation Center (2) Galveston County, TX September 14, 2012 SNF 15,000,000 6,374,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 7,431,000 73 Danby House Winston-Salem, NC January 31, 2013 AL/MC 9,700,000 7,275,000 100 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 5,843,000 66 The Shelby House Shelby, NC October 4, 2013 AL 4,500,000 4,886,000 72 The Hamlet House Hamlet, NC October 4, 2013 AL 6,500,000 4,129,000 60 The Carteret House Newport, NC October 4, 2013 AL 4,300,000 3,483,000 64 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 2,800,000 65 Total: $ 77,365,000 $ 58,552,000 835 (1) The above table excludes Sherburne Commons Residences, LLC (“Sherburne Commons”), a VIE that was sold on January 7, 2015 (see Note 6). (2) We terminated the lease with the operator of this facility on March 16, 2014 and became the licensed operator of the facility on May 1, 2014 through a wholly-owned taxable REIT subsidiary (Friendswood TRS). (3) SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility. Future Minimum Lease Payments Year October 1, 2015 to December 31, 2015 $ 1,851,000 2016 7,498,000 2017 7,669,000 2018 7,844,000 2019 and thereafter 66,729,000 $ 91,591,000 The schedule does not reflect future rental revenues from the potential renewal or replacement of existing and future leases, includes the rental revenues for the tenant of Friendship Haven and excludes tenant reimbursements. Friendswood TRS Beginning in January 2014, the tenant/operator of Friendship Haven ceased paying rent payments due to us under the lease agreement. On March 16, 2014, we terminated the lease agreement. Effective May 1, 2014, we became the licensed operator and tenant of the facility through Friendswood TRS. Upon becoming the licensed operator of the facility, we entered into a management agreement with an affiliate of Stonegate Senior Living (“Stonegate”). In October 2015, we amended the management agreement with Stonegate to increase the term from two years to 12 years (see Note 12). We plan to operate the facility with Stonegate until a long-term lease agreement can be secured with a new operator. Leasing Commissions Leasing commissions (paid to CRA prior to April 1, 2014) were capitalized at cost and are being amortized on a straight-line basis over the related lease term. As of September 30, 2015 and December 31, 2014, total costs incurred were $ 2.2 1.7 1.9 0.4 March 16, 2014 40,000 121,000 489,000 Acquisitions 2015 Loving Arms Assisted Living On January 23, 2015, we acquired an 84-bed assisted living facility in Front Royal, Virginia (“Loving Arms”) for a total purchase price of $ 14.3 The following sets forth the allocation of the purchase price of the property acquired in 2015 as well as the associated acquisitions costs, all of which have been capitalized. Total Land $ 500,000 Buildings & improvements 12,707,000 Site improvements 540,000 Furniture & fixtures 760,000 Real estate acquisition and capitalized costs $ 14,507,000 Third-party acquisition costs, capitalized (included above) $ 207,000 Loving Arms was contributed to the SUL JV in April 2015. See Note 11. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 5. Concentration of Risk Our cash is generally invested in investment-grade short-term instruments. As of September 30, 2015, we had cash and cash equivalent accounts in excess of FDIC-insured limits. However, we do not believe the risk associated with this excess is significant. As of September 30, 2015, we owned one property in California, four properties in Oregon, four properties in North Carolina, one property in Texas and one property in Illinois. Accordingly, there is a geographic concentration of risk subject to economic conditions in certain states. For the three months ended September 30, 2015, we leased our 11 healthcare properties to affiliates of five different operators under long-term triple net leases, two of which comprise 49 29 49 29 49 29 48 28 |
Notes Receivable
Notes Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. Notes Receivable Servant Healthcare Investments, LLC The Servant Healthcare Investments, LLC note was paid in full on May 2, 2014. For the three months ended September 30, 2015 and 2014, interest income related to the note receivable was $ 0 0 4,000 Fernhill Note In September 2014, we loaned to the operator of the Fernhill facility approximately $ 140,000 6 monthly installments 0.1 Nantucket Note - Consolidation and Sale of VIE We held a note receivable from a participating first mortgage loan made to Nantucket Acquisition LLC (“Nantucket”), a Delaware limited liability company owned and managed by Cornerstone Ventures Inc., an affiliate of CRA, which was collateralized by Sherburne Commons. As of October 19, 2011, the Sherburne Commons property was reclassified to real estate held for sale. Consequently, the related assets and liabilities of the property were classified as assets of a VIE held for sale and liabilities of a VIE held for sale on our condensed consolidated balance sheets. Operating results for the property have been reclassified to discontinued operations on our condensed consolidated statements of operations for all periods presented. On October 6, 2014, we foreclosed on the Sherburne Commons property, however we did not take possession of the property. On January 7, 2015, through our Operating Partnership, we sold Sherburne Commons to The Residences at Sherburne Commons, Inc. (“Sherburne Buyer”), an unaffiliated Massachusetts non-profit corporation, in exchange for $ 5.0 The $5.0 million purchase money note is collateralized by the Sherburne Commons property, bears an annual interest rate of 3.5 43,000 126,000 We may also participate in additional interest of up to $1 million from 50% of the net proceeds of cottage sales through December 31, 2018. As of September 30, 2015, we have not collected any funds related to the principal or interest on the note and the outstanding balance on the note receivable was $ 4.7 As we are no longer the primary beneficiary of the VIE, it is no longer being consolidated as of January 7, 2015. As of December 31, 2014, the VIE was classified as assets of a VIE held for sale and liabilities of a VIE held for sale and as of September 30, 2014, the results of operations for the VIE held for sale was presented in discontinued operations on the condensed consolidated statements of operations. For the three and nine months ended September 30, 2015, we recorded a loss on disposition of $ 0.1 1.7 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Party Transactions CRA Related party transactions relate to fees paid and costs reimbursed to CRA for services rendered to us through March 31, 2014, prior to the termination of the Advisory Agreement on April 1, 2014. Specific fees described in the Advisory Agreement which would have been owed to CRA are described below. We do not believe that we owe CRA any amounts due under the Advisory Agreement. The fees and expense reimbursements payable to CRA under the Advisory Agreement are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 20, 2015. Organizational and Offering Costs - The Advisory Agreement provided for reimbursement by CRA for organizational and offering costs in excess of 3.5 3.5 As of June 10, 2012, the date that our follow-on offering terminated, we had reimbursed CRA a total of $ 1.1 1.0 1.0 As of September 30, 2015 and December 31, 2014, the gross balance of this receivable was $ 0.7 Acquisition Fees and Expenses - No acquisition fees were earned by CRA during the three and nine months ended September 30, 2015 and 2014. Management Fees and Expenses - For the three months ended September 30, 2015 and 2014, CRA earned $ 0 0 0.2 In addition, the Advisory Agreement provided for our reimbursement to CRA for the direct and indirect costs and expenses incurred by CRA in providing asset management services to us, including related personnel and employment costs. For the three months ended September 30, 2015 and 2014, CRA was reimbursed $ 0 0 36,000 As of March 2014, we overpaid CRA $ 32,000 Operating Expenses - For the three months ended September 30, 2015 and 2014, no operating expenses incurred on our behalf were reimbursed to CRA. For the nine months ended September 30, 2015 and 2014, we reimbursed $ 0 0.2 189,000 For each four-fiscal-quarter period prior to March 31, 2014, our board of directors determined that the Excess Amount was justified and had consequently waived such Excess Amount. For the four-fiscal-quarter period ended March 31, 2014, our total operating expenses exceeded the greater of 2 25 3.7 1.7 Property Management and Leasing Fees and Expenses - For the three months ended September 30, 2015 and 2014, CRA earned no property management fees. For the nine months ended September 30, 2015 and 2014, CRA earned approximately $ 0 42,000 Disposition Fee No disposition fees were earned during the three and nine months ended September 30, 2015 and 2014. Subordinated Participation Provisions No subordinated participation fees were earned during the three and nine months ended September 30, 2015 and 2014. SUL JV See Notes 1 and 11 for further discussion of related party distributions and asset management fees related to the SUL JV. Certain deferred acquisition costs paid by us relate to acquisitions to be acquired by the SUL JV and will be reimbursed to us upon closing of such acquisitions. As such, as of September 30, 2015, approximately $0.1 million has been recorded as a receivable and included in tenant and other receivables in the condensed consolidated balance sheets. |
Loans Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. Loans Payable In April 2015, we formed the SUL JV with Best Years and contributed the JV 2 Properties to the SUL JV: Lamar Estates, Monte Vista Estates, Myrtle Point Care Center, Gateway Care and Retirement Center, Applewood Retirement Community, and Loving Arms. Approximately $ 30.4 10.6 19.8 September 30, December 31, 2015 2014 Loans payable to GE Capital Corporation in monthly installments of approximately $82,000, including interest at LIBOR (floor of 0.50%) plus 4.5% (5.0% at September 30, 2015 and December 31, 2014, respectively), due in September 2017 through July 2018, collateralized by Friendship Haven, Brookstone of Aledo, and Redding as of September 30, 2015, and Friendship Haven, Brookstone of Aledo, Redding, Gateway and Applewood as of December 31, 2014. $ 15,016,000 $ 25,617,000 Loans payable to The PrivateBank and Trust Company in monthly installments of approximately $45,000, including interest at LIBOR (floor of up to 1.0%) plus 4% (5.0% at September 30, 2015 and 4.50% to 5.0% at December 31, 2014, respectively), collateralized by Danby House and due in January 2016 as of September 30, 2015, and Danby House, Myrtle Point, Lamar Estates and Monte Vista Estates as of December 31, 2014. 7,275,000 16,350,000 Loans payable to Lancaster Pollard Mortgage Company, LLC (insured by HUD) in monthly installments of approximately $119,000, including interest ranging from a fixed rate of 3.75% to 3.78%, plus 0.65% for mortgage insurance, due in September 2039 through December 2049, collateralized by Sheridan, Fernhill, Tigard, Medford, Shelby, Hamlet and Carteret. 36,261,000 36,785,000 58,552,000 78,752,000 Less debt discount (575,000) (780,000) Total loans payable $ 57,977,000 $ 77,972,000 We have total debt obligations of approximately $ 58.6 In connection with our loans payable, we incurred debt discounts and financing costs. The unamortized balance of the deferred financing costs totaled $ 1.6 1.5 0.6 0.8 42,000 0.2 0.2 0.3 Principal Year Amount October 1, 2015 to December 31, 2015 $ 384,000 2016 8,154,000 2017 9,855,000 2018 6,354,000 2019 and thereafter 33,805,000 $ 58,552,000 General Electric Capital Corporation (“GE”) As of September 30, 2015 and December 31, 2014, we had net borrowings of $ 15.0 25.6 0.2 0.5 0.7 1.3 The PrivateBank and Trust Company (“PrivateBank”) In January 2015, in conjunction with the acquisition of Loving Arms Assisted Living (see Note 4), we entered into a first priority mortgage loan collateralized by the Loving Arms Assisted Living property and cross-collateralized with three of our other properties, Lamar Estates, Monte Vista Estates and Myrtle Point. On January 23, 2015, we amended an existing loan agreement with PrivateBank to increase the principal amount available under that existing loan by $ 11.4 20.5 25 September 21, 2017 715,000 As of September 30, 2015 and December 31, 2014, we had net borrowings of $ 7.3 16.4 0.1 0.3 0.6 0.7 Lancaster Pollard Mortgage Company, LLC In September 2014 and November 2014, we refinanced certain properties with Housing and Urban Development (“HUD”) insured loans from the Lancaster Pollard Mortgage Company, LLC (“Lancaster Pollard”). See table above for further information. HUD requires that our lender hold certain reserves for property tax, insurance and capital expenditures. These reserves are included in restricted cash on the Company’s condensed consolidated balance sheets. As of September 30, 2015 and December 31, 2014, we had net borrowings of $ 36.3 36.8 0.4 0.1 1.2 0.1 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 9. Commitments and Contingencies We inspect our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist, we are not currently aware of any environmental liability with respect to the properties that would have a material effect on our consolidated financial condition, results of operations and cash flows. Further, we are not aware of any environmental liability or any unasserted claim or assessment with respect to an environmental liability that we believe would require additional disclosure or the recording of a loss contingency. Our commitments and contingencies include the usual obligations of real estate owners and operators in the normal course of business. In the opinion of management, these matters are not expected to have a material impact on our consolidated financial condition, results of operations and cash flows. We are also subject to contingent losses resulting from litigation against the Company. On April 1, 2014, CRA and Cornerstone Ventures, Inc. filed a complaint in the Superior Court of California for the County of Orange-Central Justice Center, Case No. 30-2014-00714004-CU-BT-CJC, naming the Company, its directors and two of its officers as defendants, seeking declaratory and injunctive relief and compensatory and punitive damages. On April 17, 2014, Judge Nakamura denied in its entirety plaintiffs’ ex parte application for a temporary restraining order to show cause why a preliminary injunction against the defendants should not issue. On May 19, 2014, the Company filed a counter claim against plaintiffs and certain individuals affiliated with CRA and affiliated entities. The Company continues to believe that all of plaintiffs’ claims are without merit and will continue to vigorously defend itself. Plaintiffs and defendants are conducting discovery. In connection with our becoming the licensed operator of Friendship Haven through a wholly-owned taxable REIT subsidiary, we have entered into a management agreement with an affiliate of Stonegate. The management agreement, as amended, calls for us to pay to Stonegate a termination fee if we terminate the agreement before October 6, 2016. As of September 30, 2015, the agreement with them has not been terminated. Purchase Option As of September 30, 2015, we own one property with a book value of approximately $ 7.6 10.8 August 13, 2022 Purchase Agreement In November 2013, a limited liability company in which we hold a minority interest entered into a build-to-suit purchase agreement whereby the entity agreed to purchase a 70-unit assisted living facility in Athens, Georgia for approximately $ 12.4 8 1.0 Indemnification and Employment Agreements The Company has entered into indemnification agreements with certain officers and directors of the Company against all judgments, penalties, fines and amounts paid in settlement and all expenses actually and reasonably incurred by him or her in connection with any proceeding. Additionally, in September 2015, the Company entered into three-year employment agreements with its officers which include customary terms relating to salary, bonus, position, duties and benefits (including eligibility for equity compensation), as well as a cash payment following a change in control of the Company, as defined in such agreements. Management of the SUL JV As the manager of the SUL JV, we are responsible for managing the day-to-day operations of the SUL JV and are, thus, subject to contingencies that may arise in the normal course of the SUL JV’s operations. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 10. Dispositions In accordance with ASC 360, Property, Plant & Equipment Real Estate Held for Sale and Disposed As of December 31, 2014, the Sherburne Commons property had been classified as real estate held for sale and the results of operations for the VIE held for sale have been presented in discontinued operations in the Company’s condensed consolidated statements of operations for all periods presented. On January 7, 2015, we sold the Sherburne Commons property. See Note 6 for further information. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Rental revenues, tenant reimbursements and other income $ $ 700,000 $ $ 1,853,000 Operating expenses and real estate taxes (664,000) (2,053,000) Loss on disposition of VIE (117,000) (1,699,000) Loss from discontinued operations $ (117,000) $ 36,000 $ (1,699,000) $ (200,000) September 30, December 31, 2015 2014 Assets of variable interest entity held for sale: Cash and cash equivalents $ $ 36,000 Investments in real estate, net 3,905,000 Accounts receivable, inventory and other assets 198,000 Total assets $ $ 4,139,000 Liabilities of variable interest entity held for sale: Note payable $ $ 1,332,000 Loans payable 117,000 Accounts payable and accrued liabilities 466,000 Intangible lease liabilities, net 145,000 Interest payable 640,000 Liabilities of variable interest entity held for sale $ $ 2,700,000 Disposal of real estate In April 2015, we formed the SUL JV with Best Years and contributed the JV 2 Properties to the SUL JV (see Notes 1 and 11). For additional information on the SUL JV, see the Company’s Form 8-K filed on May 1, 2015. Real estate properties $ (40,391,000) Other assets (832,000) Loans payable, net 30,133,000 Other liabilities 1,182,000 Total contribution: $ 9,908,000 We recorded a partial gain of approximately $ 1.0 |
Equity-Method Investment
Equity-Method Investment | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 11. Equity-Method Investment In April 2015, we formed the SUL JV, which is owned 10 90 3 5 Under the SUL LLC Agreement, net operating cash flow of the SUL JV will be distributed quarterly, first to the Operating Partnership and Best Years pari passu up to a 10% annual return, and thereafter to Best Years 75% and the Operating Partnership 25%. All capital proceeds (from the sale of the JV 2 Properties, refinancing, or other capital event) will be paid first to the Operating Partnership and Best Years pari passu until each has received an amount equal to its accrued but unpaid 10% return plus its total contribution, and thereafter to Best Years 75% and the Operating Partnership 25% 127,000 We serve as the manager of the SUL JV and provide various services in exchange for fees and reimbursements. Under the SUL LLC Agreement, the manager will be paid a 1 0.25 25,000 42,000 Our initial equity method investment was approximately $ 1.0 1.1 0.1 0.9 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. Subsequent Events Loan Refinancing On October 6, 2015, we refinanced our existing GE loan for the Brookstone of Aledo facility with Lancaster Pollard. The note is collateralized by the Brookstone of Aledo facility and is insured by HUD. The note has a principal balance of $ 7.4 4.35 35 The note contains a prepayment penalty of 10% in year 1, which reduces each year by 100 basis points, until there is no longer a prepayment penalty beginning in year 11. 7.4 On October 6, 2015, we refinanced our existing GE loan for the Friendship Haven facility with a secured term loan agreement with Oxford Finance, LLC for $ 7.0 which bears interest at the One Month LIBOR (London Interbank Offer Rate), with a floor of 75 basis points, plus a spread of 6.50%, is interest only for the first 12 months, has a 25 year amortization schedule, and matures on October 6, 2019 1.1 7.0 Membership Interests Purchase In October 2015, Summit purchased the limited liability company interests of the CHP LLC JV Properties third party investors for approximately $ 0.9 95.3 4.7 Incentive Plan On October 28, 2015, the Company’s stockholders approved the Summit Healthcare REIT, Inc 2015 Omnibus Incentive Plan. Additionally, the Board of Directors has approved the issuance of 500,000 Acquisitions SUL JV - Texas Properties On October 30, 2015, through the SUL JV, we acquired a 10 27.0 90 7.5 10 0.8 15 year triple net leases The Creative properties are subject to a first priority mortgage loan collateralized by the four properties and cross-collateralized with three other properties, Gateway and Applewood (owned by SUL JV) and Redding (wholly-owned by the Operating Partnership). In conjunction with closing, we amended an existing loan agreement with GE to increase the principal amount available under that existing loan by $ 19.3 32.7 Three Month LIBOR (London Interbank Offer Rate), with a floor of 50 basis points 4.25 October 30, 2018 Wisconsin Properties On November 3, 2015, through wholly-owned subsidiaries, we acquired four separate assisted living facilities in Wisconsin (“Cottage Properties”) for an aggregate purchase price of $ 18.4 12 year triple net leases The Cottage properties are subject to a first priority mortgage loan collateralized by the four properties. We entered into a loan agreement with Pacific Western Bank for $ 13.5 One Month LIBOR (London Interbank Offer Rate), with a floor of 19 basis points 4.50 November 3, 2018 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, CHP LLC (of which the Company owns 95 The accompanying financial information reflects all adjustments, which are, in the opinion of management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Interim results of operations are not necessarily indicative of the results to be expected for the full year. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. |
Equity Method Investments, Policy [Policy Text Block] | Equity-Method Investment We report our investment in an unconsolidated entity, over whose operating and financial policies we have the ability to exercise significant influence but not control, under the equity method of accounting. Under this method of accounting, our pro rata share of the entity’s earnings or losses is included in our condensed consolidated statements of operations. Additionally, we adjust our investment carrying amount to reflect our share of changes in an equity-method investee’s capital resulting from its capital transactions. The initial carrying value of our equity-method investment in the SUL JV is based on the carrying value of the net assets of the JV 2 Properties at the time of contribution. We evaluate our equity-method investment for impairment whenever events or changes in circumstances indicate that the carrying value of our investment may exceed the fair value. If it is determined that a decline in the fair value of our investment is not temporary, and if such reduced fair value is below its carrying value, an impairment is recorded. Determining fair value involves significant judgment. Our estimates consider all available evidence including the present value of the expected future cash flows discounted at market rates, general economic conditions and other relevant factors. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (ASU) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early adoption of the amendments is permitted for financial statements that have not been previously issued. The amendments should be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, an entity is required to comply with the applicable disclosures for a change in an accounting principle. These disclosures include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (i.e., debt issuance cost asset and the debt liability). The Company has evaluated the impact of this new standard and does not expect it to have a significant effect on the condensed consolidated financial statements, when adopted. The FASB has issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. Revenue from Contracts with Customers (Topic 606). |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts in the Company’s condensed consolidated statements of operations for property operating costs and resident services costs for the prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on total consolidated results of operations for prior periods. |
Investments in Real Estate Pr22
Investments in Real Estate Properties (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate and Accumulated Depreciation by Property [Table Text Block] | As of September 30, 2015 and December 31, 2014, adjusted cost and accumulated depreciation related to investments in real estate, and excluding assets of a VIE held for sale, were as follows: September 30, December 31, 2015 2014 Land $ 6,502,000 $ 8,432,000 Buildings and improvements 65,319,000 88,241,000 Less: accumulated depreciation (5,293,000) (3,813,000) Buildings and improvements, net 60,026,000 84,428,000 Furniture and fixtures 6,550,000 8,133,000 Less: accumulated depreciation (3,177,000) (2,271,000) Furniture and fixtures, net 3,373,000 5,862,000 Real estate properties, net $ 69,901,000 $ 98,722,000 |
Schedule of Real Estate Properties [Table Text Block] | The following table provides summary information regarding our properties: Loans Payable Purchase as of Number of Property (1) Location Date Purchased Type (3) Price September 30, 2015 Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 5,081,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 4,458,000 63 Farmington Square Medford, OR September 14, 2012 AL/MC 8,500,000 6,792,000 71 Friendship Haven Healthcare and Rehabilitation Center (2) Galveston County, TX September 14, 2012 SNF 15,000,000 6,374,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 7,431,000 73 Danby House Winston-Salem, NC January 31, 2013 AL/MC 9,700,000 7,275,000 100 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 5,843,000 66 The Shelby House Shelby, NC October 4, 2013 AL 4,500,000 4,886,000 72 The Hamlet House Hamlet, NC October 4, 2013 AL 6,500,000 4,129,000 60 The Carteret House Newport, NC October 4, 2013 AL 4,300,000 3,483,000 64 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 2,800,000 65 Total: $ 77,365,000 $ 58,552,000 835 (1) The above table excludes Sherburne Commons Residences, LLC (“Sherburne Commons”), a VIE that was sold on January 7, 2015 (see Note 6). (2) We terminated the lease with the operator of this facility on March 16, 2014 and became the licensed operator of the facility on May 1, 2014 through a wholly-owned taxable REIT subsidiary (Friendswood TRS). (3) SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility. |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The future minimum lease payments to be received under existing operating leases for the properties owned as of September 30, 2015 for the period from October 1, 2015 to December 31, 2015 and for each of the four following years and thereafter are as follows: Year October 1, 2015 to December 31, 2015 $ 1,851,000 2016 7,498,000 2017 7,669,000 2018 7,844,000 2019 and thereafter 66,729,000 $ 91,591,000 |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | We have accounted for the acquisition as an asset purchase under generally accepted accounting principles (“GAAP”). Total Land $ 500,000 Buildings & improvements 12,707,000 Site improvements 540,000 Furniture & fixtures 760,000 Real estate acquisition and capitalized costs $ 14,507,000 Third-party acquisition costs, capitalized (included above) $ 207,000 |
Loans Payable (Tables)
Loans Payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of September 30, 2015 and December 31, 2014, loans payable consisted of the following: September 30, December 31, 2015 2014 Loans payable to GE Capital Corporation in monthly installments of approximately $82,000, including interest at LIBOR (floor of 0.50%) plus 4.5% (5.0% at September 30, 2015 and December 31, 2014, respectively), due in September 2017 through July 2018, collateralized by Friendship Haven, Brookstone of Aledo, and Redding as of September 30, 2015, and Friendship Haven, Brookstone of Aledo, Redding, Gateway and Applewood as of December 31, 2014. $ 15,016,000 $ 25,617,000 Loans payable to The PrivateBank and Trust Company in monthly installments of approximately $45,000, including interest at LIBOR (floor of up to 1.0%) plus 4% (5.0% at September 30, 2015 and 4.50% to 5.0% at December 31, 2014, respectively), collateralized by Danby House and due in January 2016 as of September 30, 2015, and Danby House, Myrtle Point, Lamar Estates and Monte Vista Estates as of December 31, 2014. 7,275,000 16,350,000 Loans payable to Lancaster Pollard Mortgage Company, LLC (insured by HUD) in monthly installments of approximately $119,000, including interest ranging from a fixed rate of 3.75% to 3.78%, plus 0.65% for mortgage insurance, due in September 2039 through December 2049, collateralized by Sheridan, Fernhill, Tigard, Medford, Shelby, Hamlet and Carteret. 36,261,000 36,785,000 58,552,000 78,752,000 Less debt discount (575,000) (780,000) Total loans payable $ 57,977,000 $ 77,972,000 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The principal payments due on the loans payable (excluding debt discount) for the period from October 1, 2015 to December 31, 2015 and for each of the four following years and thereafter ending December 31 are as follows: Principal Year Amount October 1, 2015 to December 31, 2015 $ 384,000 2016 8,154,000 2017 9,855,000 2018 6,354,000 2019 and thereafter 33,805,000 $ 58,552,000 |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Components of Income Loss from Discontinued Operation [Table Text Block] | The following is a summary of the components of loss from discontinued operations for the three and nine months ended September 30, 2015 and 2014: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Rental revenues, tenant reimbursements and other income $ $ 700,000 $ $ 1,853,000 Operating expenses and real estate taxes (664,000) (2,053,000) Loss on disposition of VIE (117,000) (1,699,000) Loss from discontinued operations $ (117,000) $ 36,000 $ (1,699,000) $ (200,000) |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table presents balance sheet information for the properties classified as held for sale as of September 30, 2015 and December 31, 2014. FASB ASC 360 requires that assets classified as held for sale be carried at the lesser of their carrying amount or estimated fair value, less estimated selling costs. September 30, December 31, 2015 2014 Assets of variable interest entity held for sale: Cash and cash equivalents $ $ 36,000 Investments in real estate, net 3,905,000 Accounts receivable, inventory and other assets 198,000 Total assets $ $ 4,139,000 Liabilities of variable interest entity held for sale: Note payable $ $ 1,332,000 Loans payable 117,000 Accounts payable and accrued liabilities 466,000 Intangible lease liabilities, net 145,000 Interest payable 640,000 Liabilities of variable interest entity held for sale $ $ 2,700,000 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The transaction had the following effect to reduce our consolidated assets and liabilities: Real estate properties $ (40,391,000) Other assets (832,000) Loans payable, net 30,133,000 Other liabilities 1,182,000 Total contribution: $ 9,908,000 |
Organization (Details Textual)
Organization (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Oct. 31, 2015 | Apr. 29, 2015 | Jan. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Organization [Line Items] | |||||
Distribution Receivable | $ 362,000 | $ 127,000 | |||
Proceeds from Divestiture of Interest in Joint Venture | 9,200,000 | ||||
Reduction in Front Royal Loan Amount | 715,000 | ||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | 1,000,000 | $ 991,000 | $ 0 | ||
Payments to Acquire Businesses, Gross | $ 14,300,000 | ||||
Subsequent Event [Member] | |||||
Organization [Line Items] | |||||
Payments to Acquire Additional Interest in Subsidiaries | $ 900,000 | ||||
CHREF [Member] | Subsequent Event [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 4.70% | ||||
Best Years Llc [Member] | |||||
Organization [Line Items] | |||||
Payments to Acquire Interest in Joint Venture | $ 9,900,000 | ||||
Equity Method Investment, Ownership Percentage | 90.00% | ||||
Operating Partnership Llc [Member] | |||||
Organization [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | ||||
Summit Healthcare Asset Management Llc [Member] | |||||
Organization [Line Items] | |||||
Acquisition Fee Percentage | 1.00% | ||||
Payments to Acquire Businesses, Gross | $ 405,000 | ||||
Property Management Fee, Percent Fee | 0.25% | ||||
Cornerstone Operating Partnership [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 99.88% | ||||
Cornerstone Operating Partnership [Member] | Cornerstone Realty Advisors, LLC [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates | 0.12% | ||||
Cornerstone Healthcare Partners [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 95.00% | ||||
Cornerstone Healthcare Real Estate Fund [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest by Affiliates | 5.00% | ||||
JV Properties [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 89.00% | ||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 900,000 | ||||
Divestiture Of Interests In Affiliates | $ 900,000 | ||||
JV Properties [Member] | Subsequent Event [Member] | |||||
Organization [Line Items] | |||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 95.30% | ||||
JV Properties [Member] | Third Party Investors [Member] | |||||
Organization [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 6.30% | ||||
JV Properties [Member] | CHREF [Member] | |||||
Organization [Line Items] | |||||
Proceeds from Divestiture of Businesses and Interests in Affiliates, Total | $ 41,000 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 4.70% |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details Textual) | Sep. 30, 2015 |
Summary of Significant Accounting Policies [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 95.00% |
Fair Value Measurements of Fi27
Fair Value Measurements of Financial Instruments (Details Textual) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 59.6 | $ 80.1 |
Notes Payable | $ 58.6 | $ 78.8 |
Fair Value Inputs Discount Rate Notes Payable | 4.47% | |
Notes Receivable, Fair Value Disclosure | $ 4.9 | |
Notes Receivable | $ 4.7 | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Inputs Discount Rate Notes Payable | 4.40% | |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Inputs Discount Rate Notes Payable | 4.75% |
Investments in Real Estate Pr28
Investments in Real Estate Properties (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Real Estate Properties [Line Items] | ||
Real estate properties, net | $ 69,901,000 | $ 98,722,000 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate properties, net | 6,502,000 | 8,432,000 |
Building Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Investments in real estate | 65,319,000 | 88,241,000 |
Less: accumulated depreciation | (5,293,000) | (3,813,000) |
Real estate properties, net | 60,026,000 | 84,428,000 |
Furniture and Fixture [Member] | ||
Real Estate Properties [Line Items] | ||
Investments in real estate | 6,550,000 | 8,133,000 |
Less: accumulated depreciation | (3,177,000) | (2,271,000) |
Real estate properties, net | $ 3,373,000 | $ 5,862,000 |
Investments in Real Estate Pr29
Investments in Real Estate Properties (Details 1) | 9 Months Ended | |
Sep. 30, 2015USD ($) | [1] | |
Real Estate Properties [Line Items] | ||
Purchase Price | $ 77,365,000 | |
Loans Payable | $ 58,552,000 | |
Number Of Beds property | 835 | |
Sheridan Care Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Sheridan, OR | |
Date Purchased | Aug. 3, 2012 | |
Type Of property | SNF | [2] |
Purchase Price | $ 4,100,000 | |
Loans Payable | $ 5,081,000 | |
Number Of Beds property | 51 | |
Fern Hill Care Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Portland, OR | |
Date Purchased | Aug. 3, 2012 | |
Type Of property | SNF | [2] |
Purchase Price | $ 4,500,000 | |
Loans Payable | $ 4,458,000 | |
Number Of Beds property | 63 | |
Farmington Square [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Medford, OR | |
Date Purchased | Sep. 14, 2012 | |
Type Of property | AL/MC | [2] |
Purchase Price | $ 8,500,000 | |
Loans Payable | $ 6,792,000 | |
Number Of Beds property | 71 | |
Friendship Haven Healthcare and Rehabilitation Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Galveston County, TX | [3] |
Date Purchased | Sep. 14, 2012 | [3] |
Type Of property | SNF | [2],[3] |
Purchase Price | $ 15,000,000 | [3] |
Loans Payable | $ 6,374,000 | [3] |
Number Of Beds property | 150 | [3] |
Pacific Health and Rehabilitation Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Tigard, OR | |
Date Purchased | Dec. 24, 2012 | |
Type Of property | SNF | [2] |
Purchase Price | $ 8,140,000 | |
Loans Payable | $ 7,431,000 | |
Number Of Beds property | 73 | |
Danby House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Winston-Salem, NC | |
Date Purchased | Jan. 31, 2013 | |
Type Of property | AL/MC | [2] |
Purchase Price | $ 9,700,000 | |
Loans Payable | $ 7,275,000 | |
Number Of Beds property | 100 | |
Brookstone of Aledo [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Aledo, IL | |
Date Purchased | Jul. 2, 2013 | |
Type Of property | AL | [2] |
Purchase Price | $ 8,625,000 | |
Loans Payable | $ 5,843,000 | |
Number Of Beds property | 66 | |
The Shelby House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Shelby, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [2] |
Purchase Price | $ 4,500,000 | |
Loans Payable | $ 4,886,000 | |
Number Of Beds property | 72 | |
The Hamlet House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Hamlet, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [2] |
Purchase Price | $ 6,500,000 | |
Loans Payable | $ 4,129,000 | |
Number Of Beds property | 60 | |
The Carteret House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Newport, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [2] |
Purchase Price | $ 4,300,000 | |
Loans Payable | $ 3,483,000 | |
Number Of Beds property | 64 | |
Sundial Assisted Living [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Redding, CA | |
Date Purchased | Dec. 18, 2013 | |
Type Of property | AL | [2] |
Purchase Price | $ 3,500,000 | |
Loans Payable | $ 2,800,000 | |
Number Of Beds property | 65 | |
[1] | The above table excludes Sherburne Commons Residences, LLC (“Sherburne Commons”), a VIE that was sold on January 7, 2015 (see Note 6). | |
[2] | SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility. | |
[3] | We terminated the lease with the operator of this facility on March 16, 2014 and became the licensed operator of the facility on May 1, 2014 through a wholly-owned taxable REIT subsidiary (Friendswood TRS). |
Investments in Real Estate Pr30
Investments in Real Estate Properties (Details 2) | Sep. 30, 2015USD ($) |
Real Estate Properties [Line Items] | |
October 1, 2015 to December 31, 2015 | $ 1,851,000 |
2,016 | 7,498,000 |
2,017 | 7,669,000 |
2,018 | 7,844,000 |
2019 and thereafter | 66,729,000 |
Operating Leases, Future Minimum Payments Receivable | $ 91,591,000 |
Investments in Real Estate Pr31
Investments in Real Estate Properties (Details 3) | Sep. 30, 2015USD ($) |
Real Estate Properties [Line Items] | |
Land | $ 500,000 |
Buildings & improvements | 12,707,000 |
Site improvements | 540,000 |
Furniture & fixtures | 760,000 |
Real estate acquisition and capitalized costs | 14,507,000 |
Third-party acquisition costs, capitalized (included above) | $ 207,000 |
Investments in Real Estate Pr32
Investments in Real Estate Properties (Details Textual) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Real Estate Properties [Line Items] | ||||||
Deferred Leasing Commission Asset | $ 1,700,000 | $ 1,700,000 | $ 1,900,000 | |||
Lease Termination Period | March 16, 2014 | |||||
Amortization of Deferred Leasing Fees | $ 400,000 | $ 40,000 | $ 40,000 | 121,000 | $ 489,000 | |
Payments to Acquire Businesses, Gross | $ 14,300,000 | |||||
Number of Real Estate Properties | 11 | 11 | ||||
Percentage of Real Estate Properties | 100.00% | |||||
Leasing Commissions Expense | $ 2,200,000 | $ 2,200,000 |
Concentration of Risk (Details
Concentration of Risk (Details Textual) - Sales Revenue, Net [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Tenant one, Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 49.00% | 49.00% | 49.00% | 48.00% |
Tenant two, Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 29.00% | 29.00% | 29.00% | 28.00% |
Notes Receivable (Details Textu
Notes Receivable (Details Textual) - USD ($) | Jan. 07, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, Net | $ 4,840,000 | $ 4,840,000 | $ 132,000 | |||
Gain (Loss) on Disposition of Assets, Total | (1,582,000) | $ 0 | ||||
Variable Interest Entity [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gain (Loss) on Disposition of Assets, Total | 100,000 | 1,700,000 | ||||
Nantucket Note [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest Income Note Receivable | 43,000 | 126,000 | ||||
Accounts and Notes Receivable, Net | 4,700,000 | $ 4,700,000 | ||||
Sherburne Commons, Inc., Money Note [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 3.50% | |||||
Receivable with Imputed Interest, Face Amount | $ 5,000,000 | |||||
Receivable with Imputed Interest, Description | We may also participate in additional interest of up to $1 million from 50% of the net proceeds of cottage sales through December 31, 2018. | |||||
Operator [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, Net | $ 140,000 | $ 140,000 | $ 100,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | ||||
Debt Instrument, Maturity Date | Jan. 31, 2019 | |||||
Debt Instrument, Frequency of Periodic Payment | monthly installments | |||||
Servant Healthcare Investment, Llc Notes Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest Income Note Receivable | $ 0 | $ 0 | $ 0 | $ 4,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2014 | Jun. 10, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||||
Percentage In Excess Of Gross Proceeds From Offering As Sponsor Fee | 3.50% | |||||||
Terms Of Advisory Agreement Percentage In Excess Of Gross Proceeds | 3.50% | |||||||
Sponsor Fees | $ 1,100,000 | |||||||
Sponsor Fees Excess Of Contractual Limit | $ 1,000,000 | |||||||
Accounts Receivable From Advisor | $ 1,000,000 | $ 700,000 | $ 700,000 | |||||
Reimbursement of Advisory Fees for Expenses | $ 0 | $ 0 | 0 | $ 36,000 | ||||
General and Administrative Expense | 999,000 | 1,141,000 | 3,076,000 | 2,917,000 | ||||
Asset Management Fees | 0 | $ 0 | $ 0 | 205,000 | ||||
Percentage Of Restricted Operating Expenses | 2.00% | |||||||
Percentage Of Restricted Net Income | 25.00% | |||||||
Operating Expenses, Total | $ 3,700,000 | |||||||
Amount in Excess of Restricted Operating Expenses | 1,700,000 | |||||||
Other Receivables | 3,797,000 | 3,797,000 | $ 2,599,000 | |||||
Advisory Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Reimbursement of Advisory Fees for Expenses | 189,000 | |||||||
Over Reimbursement Of Advisory Fees For Management Fees and Expenses | $ 32,000 | |||||||
General and Administrative Expense | 0 | 200,000 | ||||||
Asset Management Fees | $ 0 | $ 42,000 | ||||||
Cornerstone Realty Advisors, LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Disposition Fees Description | Pursuant to provisions contained in our terminated Advisory Agreement, our board of directors had the responsibility of limiting our total operating expenses for each trailing four consecutive quarters to amounts that do not exceed the greater of 2% of our average invested assets or 25% of our net income, calculated in the manner set forth in our charter, unless a majority of the directors (including a majority of the independent directors) made a finding that a higher level of expenses was justified (the 2%/25% Test). In the event that a majority of the directors had not determined that such excess expenses were justified, CRA was required to reimburse to us the amount of the excess expenses paid or incurred (the Excess Amount). | |||||||
SUL JV [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other Receivables | $ 100,000 | $ 100,000 |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | Sep. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 58,552,000 | $ 78,752,000 | |
Less debt discount | (575,000) | (780,000) | |
Total loans payable | 57,977,000 | 77,972,000 | |
General Electric Capital Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 15,016,000 | 25,617,000 | |
Total loans payable | $ 10,600,000 | ||
Private Bank and Trust Company [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 7,275,000 | 16,350,000 | |
Lancaster Pollard Mortgage Company, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 36,261,000 | $ 36,785,000 |
Loans Payable (Details 1)
Loans Payable (Details 1) | Sep. 30, 2015USD ($) |
Debt Instrument [Line Items] | |
October 1, 2015 to December 31, 2015 | $ 384,000 |
2,016 | 8,154,000 |
2,017 | 9,855,000 |
2,018 | 6,354,000 |
2019 and thereafter | 33,805,000 |
Total | $ 58,552,000 |
Loans Payable (Details Textual)
Loans Payable (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jan. 23, 2015 | |
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date, Description | mature between 2016 and 2049 | ||||||
Deferred Finance Costs, Net, Total | $ 1,340,000 | $ 1,340,000 | $ 1,453,000 | ||||
Amortization Of Financing Costs | 42,000 | $ 200,000 | 172,000 | $ 263,000 | |||
Loans Payable, Total | 57,977,000 | 57,977,000 | 77,972,000 | ||||
Long-term Debt, Gross | 58,552,000 | 58,552,000 | 78,752,000 | ||||
Funds Received From Joint Venture Used To Extinguish Debt | $ 715,000 | ||||||
Debt Instrument, Unamortized Discount | $ 575,000 | $ 575,000 | $ 780,000 | ||||
General Electric Capital Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Frequency of Periodic Payment | monthly installments | ||||||
Debt Instrument, Periodic Payment | $ 82,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR (floor of 0.50%) plus 4.5% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | ||||
Debt Instrument, Maturity Date, Description | due in September 2017 through July 2018 | ||||||
Debt Instrument, Collateral | collateralized by Friendship Haven, Brookstone of Aledo, and Redding | Friendship Haven, Brookstone of Aledo, Redding, Gateway and Applewood | |||||
Loans Payable, Total | 10,600,000 | ||||||
Interest Expense, Debt | $ 200,000 | 500,000 | $ 700,000 | 1,300,000 | |||
Long-term Debt, Gross | $ 15,016,000 | $ 15,016,000 | $ 25,617,000 | ||||
Private Bank and Trust Company Loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Frequency of Periodic Payment | monthly installments | ||||||
Debt Instrument, Periodic Payment | $ 45,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR (floor of up to 1.0%) plus 4% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.50% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 5.00% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||
Debt Instrument, Maturity Date, Description | due in January 2016 | ||||||
Debt Instrument, Collateral | collateralized by Danby House and due in January 2016 | Danby House, Myrtle Point, Lamar Estates and Monte Vista Estates | |||||
Debt Instrument, Face Amount | $ 11,400,000 | ||||||
Debt Instrument, Maturity Date | Sep. 21, 2017 | ||||||
Loans Payable, Total | 19,800,000 | ||||||
Interest Expense, Debt | $ 100,000 | 300,000 | $ 600,000 | 700,000 | |||
Debt Instrument, Description of Basis Spread on Variable Rate | a floor of 25 basis points, plus a spread of 4.50% | ||||||
Amortization Schedule Of Debt | 25 years | ||||||
Private Bank and Trust Company Loans [Member] | Collateralized Debt Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 20,500,000 | ||||||
Lancaster Pollard Mortgage Company, LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Frequency of Periodic Payment | monthly installments | ||||||
Debt Instrument, Periodic Payment | $ 119,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.75% | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.78% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.65% | 0.65% | |||||
Debt Instrument, Maturity Date, Description | due in September 2039 through December 2049 | ||||||
Debt Instrument, Collateral | collateralized by Sheridan, Fernhill, Tigard, Medford, Shelby, Hamlet and Carteret. | ||||||
Interest Expense, Debt | $ 400,000 | $ 100,000 | $ 1,200,000 | $ 100,000 | |||
Long-term Debt, Gross | 36,261,000 | 36,261,000 | $ 36,785,000 | ||||
SUL JV [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loans Payable, Total | $ 30,400,000 | ||||||
Private Bank and Trust Company [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt, Gross | $ 7,275,000 | $ 7,275,000 | $ 16,350,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2013 | |
Call Option [Member] | ||
Property, Plant, and Equipment, Owned, Net | $ 7.6 | |
Purchase Option on Property, Plant and Equipment, Expiration Date | Aug. 13, 2022 | |
Right to Purchase the Property, Value | $ 10.8 | |
Living Facility in Athens, Georgia [Member] | ||
Annual Rent, Percentage on Cost of Facility | 8.00% | |
Lease Expense, Annual | $ 1 | |
Contractual Obligation | $ 12.4 |
Dispositions (Details)
Dispositions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Rental revenues, tenant reimbursements and other income | $ 0 | $ 700,000 | $ 0 | $ 1,853,000 |
Operating expenses and real estate taxes | 0 | (664,000) | 0 | (2,053,000) |
Loss on disposition of VIE | (117,000) | 0 | (1,699,000) | 0 |
Loss from discontinued operations | $ (117,000) | $ 36,000 | $ (1,699,000) | $ (200,000) |
Dispositions (Details 1)
Dispositions (Details 1) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Assets of variable interest entity held for sale: | ||
Cash and cash equivalents | $ 0 | $ 36,000 |
Investments in real estate, net | 0 | 3,905,000 |
Accounts receivable, inventory and other assets | 0 | 198,000 |
Total assets | 0 | 4,139,000 |
Liabilities of variable interest entity held for sale: | ||
Note payable | 0 | 1,332,000 |
Loans payable | 0 | 117,000 |
Accounts payable and accrued liabilities | 0 | 466,000 |
Intangible lease liabilities, net | 0 | 145,000 |
Interest payable | 0 | 640,000 |
Liabilities of variable interest entity held for sale | $ 0 | $ 2,700,000 |
Dispositions (Details 2)
Dispositions (Details 2) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Contribution of Property | $ 9,908,000 |
Loans Payable [Member] | |
Contribution of Property | 30,133,000 |
Real Estate Properties [Member] | |
Contribution of Property | (40,391,000) |
Other Assets [Member] | |
Contribution of Property | (832,000) |
Other Liabilities [Member] | |
Contribution of Property | $ 1,182,000 |
Dispositions (Details Textual)
Dispositions (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |
Apr. 29, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | $ 1,000,000 | $ 991,000 | $ 0 |
SUL JV [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | $ 1,000,000 |
Equity-Method Investment (Detai
Equity-Method Investment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2015 | Apr. 30, 2015 | Apr. 29, 2015 | Dec. 31, 2014 | |
Limited Liability Company or Limited Partnership, Managing Member or General Partner, Compensation | Under the SUL LLC Agreement, net operating cash flow of the SUL JV will be distributed quarterly, first to the Operating Partnership and Best Years pari passu up to a 10% annual return, and thereafter to Best Years 75% and the Operating Partnership 25%. All capital proceeds (from the sale of the JV 2 Properties, refinancing, or other capital event) will be paid first to the Operating Partnership and Best Years pari passu until each has received an amount equal to its accrued but unpaid 10% return plus its total contribution, and thereafter to Best Years 75% and the Operating Partnership 25% | ||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | |||
Distribution Receivable | $ 127,000 | $ 127,000 | $ 362,000 | ||
Asset Management Fees | 25,000 | 42,000 | |||
Equity Method Investments | 884,000 | 884,000 | $ 1,000,000 | $ 0 | |
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 100,000 | $ 100,000 | |||
Operating Partnership Llc [Member] | |||||
Equity Method Investment, Ownership Percentage | 10.00% | 10.00% | |||
Summit Healthcare Asset Management Llc [Member] | |||||
Property Management Fee, Percent Fee | 0.25% | ||||
Best Years Llc [Member] | |||||
Equity Method Investment, Ownership Percentage | 90.00% | 90.00% | |||
Acquisition Fee Percentage | 1.00% | ||||
SUL Joint Venture [Member] | |||||
Equity Method Investments | $ 900,000 | $ 900,000 | $ 1,100,000 | ||
SUL Joint Venture [Member] | Minimum [Member] | |||||
Equity Method Investment, Ownership Percentage | 3.00% | 3.00% | |||
SUL Joint Venture [Member] | Maximum [Member] | |||||
Equity Method Investment, Ownership Percentage | 5.00% | 5.00% |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | Nov. 03, 2015 | Oct. 06, 2015 | Oct. 31, 2015 | Oct. 30, 2015 | Oct. 28, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||||
Long-term Debt, Gross | $ 58,552,000 | $ 78,752,000 | |||||
Subsequent Event [Member] | Incentive Plan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance | 500,000 | ||||||
Subsequent Event [Member] | Lancaster Pollard [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Face Amount | $ 7,400,000 | ||||||
Debt Instrument, Term | 35 years | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.35% | ||||||
Debt Instrument, Payment Terms | The note contains a prepayment penalty of 10% in year 1, which reduces each year by 100 basis points, until there is no longer a prepayment penalty beginning in year 11. | ||||||
Proceeds from Issuance of Long-term Debt, Total | $ 7,400,000 | ||||||
Subsequent Event [Member] | Oxford Finance, LLC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Face Amount | $ 7,000,000 | ||||||
Debt Instrument, Description of Variable Rate Basis | which bears interest at the One Month LIBOR (London Interbank Offer Rate), with a floor of 75 basis points, plus a spread of 6.50%, is interest only for the first 12 months, has a 25 year amortization schedule, and matures on October 6, 2019 | ||||||
Debt Instrument, Maturity Date | Oct. 6, 2019 | ||||||
Proceeds from Issuance of Long-term Debt, Total | $ 7,000,000 | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,100,000 | ||||||
Subsequent Event [Member] | Cornerstone Healthcare Partners LLC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Limited Liability Company (LLC) Preferred Unit, Issuance Value | $ 900,000 | ||||||
Limited Liability Company (Llc) Or Limited Partnership (Lp), Members Or Limited Partners, Ownership Interest | 95.30% | ||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 4.70% | ||||||
Subsequent Event [Member] | General Electric Capital Corporation Loan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Description of Variable Rate Basis | Three Month LIBOR (London Interbank Offer Rate), with a floor of 50 basis points | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | ||||||
Debt Instrument, Maturity Date | Oct. 30, 2018 | ||||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 19,300,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 32,700,000 | ||||||
Long-term Debt, Gross | 32,700,000 | ||||||
Amortization Schedule Of Debts | 25 years | ||||||
Subsequent Event [Member] | Wisconsin Properties [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 18,400,000 | ||||||
Sale Leaseback Transaction, Lease Terms | 12 year triple net leases | ||||||
Subsequent Event [Member] | Western Bank [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Description of Variable Rate Basis | One Month LIBOR (London Interbank Offer Rate), with a floor of 19 basis points | ||||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||
Debt Instrument, Maturity Date | Nov. 3, 2018 | ||||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 13,500,000 | ||||||
Long-term Debt, Gross | $ 13,500,000 | ||||||
Amortization Schedule Of Debts | 25 years | ||||||
SUL JV Texas Properties [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 27,000,000 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | ||||||
Sale Leaseback Transaction, Lease Terms | 15 year triple net leases | ||||||
SUL JV Texas Properties [Member] | Subsequent Event [Member] | Best Years [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 7,500,000 | ||||||
Percentage Of Amount Funded | 90.00% | ||||||
SUL JV Texas Properties [Member] | Subsequent Event [Member] | Operating Partnership [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 800,000 | ||||||
Percentage Of Amount Funded | 10.00% |