Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 08, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
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, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 7,289,000 | $ 6,603,000 |
Restricted cash | 4,855,000 | 4,822,000 |
Real estate properties, net | 66,790,000 | 77,842,000 |
Notes receivable | 4,809,000 | 4,833,000 |
Deferred costs and deposits | 485,000 | 140,000 |
Tenant and other receivables, net | 4,264,000 | 3,813,000 |
Deferred leasing commissions, net | 1,576,000 | 1,697,000 |
Other assets, net | 356,000 | 583,000 |
Equity-method investment | 4,010,000 | 2,178,000 |
Total assets | 94,434,000 | 102,511,000 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued liabilities | 3,055,000 | 2,883,000 |
Accrued salaries and benefits | 193,000 | 392,000 |
Security deposits | 1,399,000 | 1,627,000 |
Loans payable, net of debt discounts | 58,358,000 | 63,630,000 |
Total liabilities | 63,005,000 | 68,532,000 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding at September 30, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $0.001 par value; 290,000,000 shares authorized; 23,027,978 shares issued and outstanding at September 30, 2016 and December 31, 2015 | 23,000 | 23,000 |
Additional paid-in capital | 117,237,000 | 117,215,000 |
Accumulated deficit | (86,550,000) | (83,966,000) |
Total stockholders’ equity | 30,710,000 | 33,272,000 |
Noncontrolling interest | 719,000 | 707,000 |
Total equity | 31,429,000 | 33,979,000 |
Total liabilities and stockholders’ equity | $ 94,434,000 | $ 102,511,000 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
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 | 23,027,978 |
Common stock, shares outstanding | 23,027,978 | 23,027,978 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Rental revenues | $ 1,639,000 | $ 1,657,000 | $ 5,183,000 | $ 6,350,000 |
Resident services and fee income | 2,017,000 | 2,381,000 | 6,162,000 | 6,931,000 |
Tenant reimbursements and other income | 217,000 | 232,000 | 665,000 | 806,000 |
Acquisition and asset management fees | 206,000 | 25,000 | 338,000 | 447,000 |
Interest income from notes receivable | 44,000 | 2,000 | 119,000 | 6,000 |
Revenues, Total | 4,123,000 | 4,297,000 | 12,467,000 | 14,540,000 |
Expenses: | ||||
Property operating costs | 404,000 | 460,000 | 1,332,000 | 1,590,000 |
Resident services costs | 1,750,000 | 1,924,000 | 5,267,000 | 5,548,000 |
General and administrative | 1,411,000 | 999,000 | 3,524,000 | 3,076,000 |
Depreciation and amortization | 898,000 | 889,000 | 2,791,000 | 3,154,000 |
Costs and Expenses, Total | 4,463,000 | 4,272,000 | 12,914,000 | 13,368,000 |
Operating (loss) income | (340,000) | 25,000 | (447,000) | 1,172,000 |
Income from equity-method investee | 68,000 | 26,000 | 167,000 | 43,000 |
Other income | 21,000 | 16,000 | 93,000 | 26,000 |
Interest expense | (755,000) | (723,000) | (2,344,000) | (2,662,000) |
Gain on disposition of real estate properties | 0 | 0 | 0 | 991,000 |
Loss from continuing operations | (1,006,000) | (656,000) | (2,531,000) | (430,000) |
Loss from discontinued operations | 0 | (117,000) | 0 | (1,699,000) |
Net loss | (1,006,000) | (773,000) | (2,531,000) | (2,129,000) |
Noncontrolling interests’ share in income (losses) | (19,000) | (43,000) | (53,000) | (119,000) |
Net loss applicable to common stockholders | $ (1,025,000) | $ (816,000) | $ (2,584,000) | $ (2,248,000) |
Basic and diluted loss per common share: | ||||
Continuing operations applicable to common stockholders | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.02) |
Discontinued operations | 0 | 0 | 0 | (0.07) |
Net loss applicable to common stockholders | $ (0.04) | $ (0.03) | $ (0.11) | $ (0.09) |
Weighted average shares used to calculate basic and diluted net loss per common share | 23,027,978 | 23,027,978 | 23,027,978 | 23,027,978 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 9 months ended Sep. 30, 2016 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interests [Member] |
Balance at Dec. 31, 2015 | $ 33,979,000 | $ 23,000 | $ 117,215,000 | $ (83,966,000) | $ 33,272,000 | $ 707,000 |
Balance (in shares) at Dec. 31, 2015 | 23,027,978 | |||||
Stock-based compensation | 22,000 | $ 0 | 22,000 | 0 | 22,000 | 0 |
Distributions paid to noncontrolling interests | (41,000) | 0 | 0 | 0 | 0 | (41,000) |
Net (loss) income | (2,531,000) | 0 | 0 | (2,584,000) | (2,584,000) | 53,000 |
Balance at Sep. 30, 2016 | $ 31,429,000 | $ 23,000 | $ 117,237,000 | $ (86,550,000) | $ 30,710,000 | $ 719,000 |
Balance (in shares) at Sep. 30, 2016 | 23,027,978 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (2,531,000) | $ (2,129,000) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities: | ||
Amortization of debt discounts | 103,000 | 172,000 |
Depreciation and amortization | 2,791,000 | 3,154,000 |
Straight-line rents | (466,000) | (755,000) |
Bad debt expense | 32,000 | 225,000 |
Stock-based compensation expense | 22,000 | 0 |
Gain on disposition of real estate properties | 0 | (991,000) |
Loss on disposition of VIE | 0 | 1,582,000 |
Income from equity-method investee | (167,000) | (43,000) |
Change in operating assets and liabilities: | ||
Restricted cash | (87,000) | (129,000) |
Tenant and other receivables, net | 269,000 | (434,000) |
Prepaid and other assets | 203,000 | 231,000 |
Accounts payable and accrued liabilities | 525,000 | 769,000 |
Accrued salaries and benefits | (198,000) | (188,000) |
Net cash and cash equivalents provided by operating activities | 496,000 | 1,464,000 |
Cash flows from investing activities | ||
Restricted cash | 293,000 | (286,000) |
Deferred costs and deposits | (345,000) | (491,000) |
Real estate acquisitions and capitalized costs | 0 | (14,300,000) |
Real estate improvements | (144,000) | (82,000) |
Proceeds from contribution of properties, net of cash and restricted cash contributed | 2,814,000 | 9,351,000 |
Investment in equity-method investee | (1,845,000) | (62,000) |
Distributions received from equity-method investee | 173,000 | 0 |
Payments from note receivable | 24,000 | 22,000 |
Net cash and cash equivalents provided by (used in) investing activities | 970,000 | (5,848,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of loans payable | 0 | 11,440,000 |
Payments of loans payable | (710,000) | (1,240,000) |
Security deposit | 0 | 99,000 |
Distributions paid to non-controlling interests | (41,000) | (114,000) |
Financing costs | (29,000) | (114,000) |
Net cash and cash equivalents (used in) provided by financing activities | (780,000) | 10,071,000 |
Net increase in cash and cash equivalents | 686,000 | 5,687,000 |
Cash and cash equivalents - beginning of period | 6,603,000 | 4,405,000 |
Cash and cash equivalents - end of period | 7,289,000 | 10,092,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 2,214,000 | $ 2,456,000 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - non-cash effect - USD ($) | 1 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Contribution of Property | $ 3,927,000 | $ 9,908,000 |
Loans Payable [Member] | ||
Contribution of Property | 4,685,000 | 30,133,000 |
Real Estate Properties [Member] | ||
Contribution of Property | (8,536,000) | (40,391,000) |
Other Assets [Member] | ||
Contribution of Property | (677,000) | (832,000) |
Other Liabilities [Member] | ||
Contribution of Property | $ 601,000 | $ 1,182,000 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
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) | $ 4,809,000 |
In January 2015, $207,000 of deferred costs were reclassified to real estate acquisitions | 207,000 |
During the nine months ended September 30, 2016, the Company recorded approximately $298,000 of distributions receivable from the SUL JV | $ 298,000 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization Summit Healthcare REIT, Inc. (“Summit”) is a real estate investment trust that owns 100 95 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. As of September 30, 2016, we own a 99.88 0.12 Cornerstone Healthcare Partners LLC We own 95 5 As of September 30, 2016, we own a 95.3 4.7 95 5 Friendswood TRS Friendswood TRS (“Friendswood TRS”) is our wholly-owned, taxable REIT subsidiary (“TRS”), which is the licensed operator and tenant of Friendship Haven Healthcare and Rehabilitation Center (“Friendship Haven”) (see Note 3). Summit Union Life Holdings, LLC On April 29, 2015, through our Operating Partnership, we entered into a limited liability company agreement (as such agreement may be amended from time to time, the “SUL LLC Agreement”) with Best Years, LLC (“Best Years”), an unrelated entity and a U.S.-based affiliate of Union Life Insurance Co, Ltd. (a Chinese corporation), and formed Summit Union Life Holdings, LLC (the “SUL JV”). The SUL JV is not consolidated in our condensed consolidated financial statements and is accounted for under the equity-method in the Company’s condensed consolidated financial statements (see Note 5). As of September 30, 2016 and December 31, 2015, we have a 10 Summit Fantasia Holdings, LLC On September 27, 2016, through our Operating Partnership, we entered into a limited liability company agreement (“Fantasia LLC Agreement”) with Fantasia Investment III LLC (“Fantasia”), an unrelated entity and a U.S.-based affiliate of Fantasia Holdings Group Co., Limited (a Chinese corporation), and formed Summit Fantasia Holdings, LLC (the “Fantasia JV”). The Fantasia JV is not consolidated in our condensed consolidated financial statements and will be accounted for under the equity-method in the Company’s condensed consolidated financial statements. There were no activities conducted by the Fantasia JV from September 27, 2016 through September 30, 2016. See Note 12. Summit Healthcare Asset Management, LLC (TRS) Summit Healthcare Asset Management, LLC is our wholly-owned TRS (“SAM TRS”). We serve as the manager of the SUL JV and the Fantasia JV, our equity-method investments, and provide management services in exchange for fees and reimbursements. All acquisition fees and asset management fees earned by us will be paid to SAM TRS and expenses incurred by us, as the manager, will be reimbursed from SAM TRS. See Notes 5 and 7 for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 filed with the Securities and Exchange Commission (“SEC”) on March 18, 2016. There have been no material changes to our policies since that filing, except as noted below under Recently Adopted Accounting Pronouncements. The accompanying condensed consolidated balance sheet at December 31, 2015 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, 2015 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, 2015 filed with the SEC on March 18, 2016 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, 2015 have been omitted in this report. The accompanying condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. On January 1, 2016, the Company adopted theFinancial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 1.3 1.3 Recently Issued Accounting Pronouncements In November 2016, the FASB has issued ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted The FASB has issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: · Debt Prepayment or Debt Extinguishment Costs; · Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; · Contingent Consideration Payments Made after a Business Combination; · Proceeds from the Settlement of Insurance Claims; · Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; Life Insurance Policies; · Distributions Received from Equity Method Investees; · Beneficial Interests in Securitization Transactions; and · Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements when adopted. In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB has issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. We are currently evaluating the impact of our pending adoption of the new standard on our condensed consolidated financial statements. The FASB has issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. 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. In February 2016, the FASB issued ASU No. 2016-02, Leases 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 financial statements for prior periods have been reclassified to conform to the current period presentation. Based on the intended use of the restricted cash, we have classified changes in restricted cash within the statements of cash flows as operating and investing activities and the prior period presentation has been revised to conform to this classification. These reclassifications had no effect on previously reported results of operations. Additionally, see Recently Adopted Accounting Pronouncements above. |
Investments in Real Estate Prop
Investments in Real Estate Properties | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Real Estate Disclosure [Text Block] | 3. Investments in Real Estate Properties September 30, December 31, 2016 2015 Land $ 6,502,000 $ 6,932,000 Buildings and improvements 65,563,000 73,181,000 Less: accumulated depreciation (7,392,000) (5,842,000) Buildings and improvements, net 58,171,000 67,339,000 Furniture and fixtures 6,596,000 7,086,000 Less: accumulated depreciation (4,479,000) (3,515,000) Furniture and fixtures, net 2,117,000 3,571,000 Real estate properties, net $ 66,790,000 $ 77,842,000 During the three months ended September 30, 2016 and 2015, depreciation and amortization expense (excluding leasing commission amortization) was approximately $ 0.9 0.8 2.7 3.0 11 100 Loans Payable, excluding Purchase debt Number of Property Location Date Purchased Type (2) Price discounts Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,950,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 4,342,000 63 Farmington Square Medford, OR September 14, 2012 AL/MC 8,500,000 6,692,000 71 Friendship Haven Healthcare and Rehabilitation Center (1) Galveston County, TX September 14, 2012 SNF 15,000,000 7,000,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 7,238,000 73 Danby House Winston-Salem, NC January 31, 2013 AL/MC 9,700,000 7,785,000 100 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 7,353,000 66 The Shelby House Shelby, NC October 4, 2013 AL 4,500,000 4,815,000 72 The Hamlet House Hamlet, NC October 4, 2013 AL 6,500,000 4,068,000 60 The Carteret House Newport, NC October 4, 2013 AL 4,300,000 3,432,000 64 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 2,800,000 65 Total: $ 77,365,000 $ 60,475,000 835 (1) We terminated the lease with the tenant of this facility on March 16, 2014 and became the licensed operator and tenant of the facility on May 1, 2014 (Friendswood TRS). Upon becoming the licensed operator and tenant of the facility, we entered into a two-year management agreement with an affiliate of Stonegate Senior Living (“Stonegate”), whereby Stonegate will receive a management fee equal to 6 two years to 12 years (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. Future Minimum Lease Payments (1) Years ending December 31, October 1, 2016 to December 31, 2016 $ 1,500,000 2017 6,073,000 2018 6,208,000 2019 6,346,000 2020 6,487,000 Thereafter 46,453,000 $ 73,067,000 (1) This schedule does not reflect future rental revenues from the potential renewal or replacement of existing and future leases, tenant reimbursements, and the rental revenues for the tenant (Friendswood TRS) of Friendship Haven. Acquisitions - 2015 Front Royal, Virginia On January 23, 2015, through a wholly-owned subsidiary, we acquired an 84-bed assisted living facility in Front Royal, Virginia (“Loving Arms”) for a total purchase price of $ 14.3 15 Loving Arms was contributed to the SUL JV in April 2015 (see Notes 5 and 11 under JV 2 Properties). 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 The Cottage Properties were contributed to the SUL JV in December 2015 (see Notes 5 and 11). Littleton, New Hampshire On November 17, 2015, through a wholly-owned subsidiary, we acquired Riverglen House, a 59-bed assisted living facility located in Littleton, New Hampshire, (“Riverglen”) for a purchase price of $ 8.5 15 On February 29, 2016, we received an executed commitment from Best Years, our SUL JV partner, of its intent to participate in the contribution of Riverglen to the SUL JV. On April 28, 2016, we completed the process of executing a modified transfer of physical assets (“TPA”) agreement for the loan agreement with HHF (see Note 4), a U.S. Department of Housing and Urban Development (“HUD”) insured loan. We legally could not complete the contribution of Riverglen to the SUL JV until we received approval from HUD and then the TPA process was completed. As of April 29, 2016, Riverglen was contributed to the SUL JV and is no longer consolidated in our condensed consolidated financial statements (see Note 11). Leasing Commissions Leasing commissions paid to CRA prior to termination of our advisory agreement with CRA on April 1, 2014 are capitalized at cost and amortized on a straight-line basis over the related lease term. As of September 30, 2016 and December 31, 2015, total costs incurred were $ 2.2 1.6 40,000 40,000 121,000 121,000 |
Loans Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. Loans Payable In April 2015, we formed the SUL JV with Best Years and contributed six properties (“JV 2 Properties”) to the SUL JV. As part of the contribution of the JV 2 Properties, approximately $ 30.4 10.6 19.8 4.7 September 30, 2016 December 31, 2015 Loan payable to Healthcare Financial Solutions, LLC (formerly GE Capital) in monthly installments of approximately $11,000, including interest at LIBOR (floor of 0.50%) plus 4.0% (4.6% and 4.5% at September 30, 2016 and December 31, 2015, respectively), due in October 2018, and as of September 30, 2016 and December 31, 2015, collateralized by Sundial Assisted Living. $ 2,800,000 $ 2,800,000 Loan payable to Oxford Finance, LLC in monthly installments of approximately $42,000, including interest at LIBOR (floor of 0.75%) plus 6.50% (7.25% as of September 30, 2016 and December 31, 2015) due in October 2019, collateralized by Friendship Haven. 7,000,000 7,000,000 Loan payable to HHF (insured by HUD) in monthly installments of approximately $21,000, including interest, at fixed interest rate of 4.25% due in April 2054, collateralized by Riverglen. - 4,728,000 Loans payable to Lancaster Pollard (insured by HUD) in monthly installments of approximately $238,000, including interest, ranging from a fixed rate of 3.70% to 3.78%, due in September 2039 through January 2051, and as of September 30, 2016 and December 31, 2015 collateralized by Sheridan, Fernhill, Pacific Health, Farmington Square, Shelby, Hamlet, Carteret, Aledo and Danby. 50,675,000 51,372,000 60,475,000 65,900,000 Less debt discounts (2,117,000) (2,270,000) Total loans payable $ 58,358,000 $ 63,630,000 We have total debt obligations of approximately $ 60.5 In connection with our loans payable, we incurred debt issuance costs. The unamortized balance of the debt discounts totals $ 2.1 2.3 34,000 42,000 103,000 172,000 During the three months ended September 30, 2016 and 2015, we incurred approximately $ 0.7 0.7 2.2 2.5 Principal Year Amount October 1, 2016 to December 31, 2016 $ 258,000 2017 1,132,000 2018 3,879,000 2019 7,846,000 2020 1,104,000 Thereafter 46,256,000 $ 60,475,000 Healthcare Financial Solutions, LLC (formerly known as GE Capital Corporation (“GE”)) 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 (“Oxford”) (see below for further information Oxford Finance, LLC) and the funds received were used to pay off the outstanding principal balance for this property. On October 6, 2015, we refinanced our existing GE loan for the Brookstone of Aledo facility with Lancaster Pollard (see below for further information Lancaster Pollard) and the funds received were used to pay off the outstanding principal balance for this property. On October 30, 2015, the GE loan agreement for the Sundial Assisted Living property located in Redding was amended and restated. The amended loan is with Healthcare Financial Solutions, LLC (“HFS” (formerly GE)). The loan is interest only through January 2017 and then the loan payments increase to approximately $ 15,000 The PrivateBank and Trust Company (“PrivateBank”) On December 21, 2015, we refinanced our existing loan for the Danby House facility with Lancaster Pollard (see below for further information Lancaster Pollard) and the funds received were used to pay off the outstanding principal balance for this property. As of December 31, 2015, we had no borrowings under the PrivateBank loans. Lancaster Pollard Mortgage Company, LLC In 2015 and 2014, we refinanced certain properties with 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 our condensed consolidated balance sheets. Oxford Finance, LLC On October 6, 2015, we refinanced our existing GE loan for the Friendship Haven facility with a secured term loan agreement with Oxford. The loan is interest only through October 2016 and then the loan payments increase to approximately $ 51,000 Housing and Healthcare Finance, LLC (“HHF”) On November 17, 2015, in conjunction with the purchase of Riverglen (see Note 3), we entered into a Modification, Release, and Assumption Agreement with HHF and assumed the outstanding HUD insured loan. On April 29, 2016, Riverglen was contributed to the SUL JV (see Notes 3, 5 and 11). |
Equity-Method Investment
Equity-Method Investment | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 5. Equity-Method Investment SUL JV In April 2015, we formed the SUL JV, which is owned 10 90 In conjunction with the formation of the SUL JV, the Operating Partnership contributed to the SUL JV all of the JV 2 Properties (see Note 11). This contribution increased our equity-method investment by approximately $ 1.0 In April 2015, the Operating Partnership recorded a receivable for approximately $ 362,000 362,000 In October 2015, the SUL JV acquired four additional properties located in Texas which increased our equity-method investment by approximately $ 0.8 On December 24, 2015, we contributed the Cottage Properties, which we had acquired in November 2015, to the SUL JV (see Notes 3, 4 and 11). This contribution increased our equity-method investment by approximately $ 0.5 On April 29, 2016, we contributed Riverglen located in Littleton, New Hampshire (see Note 3) to the SUL JV. This contribution resulted in the SUL JV owning Riverglen and, therefore, Riverglen is no longer consolidated in our condensed consolidated financial statements as of April 29, 2016. The aggregate net value of Riverglen at the date of the contribution was approximately $ 3.9 9.2 5.3 4.7 3.4 3.4 0.2 0.3 On September 2, 2016, the SUL JV acquired two additional properties located in Delaware which increased our equity-method investment by approximately $ 1.8 pari passu pari passu As of September 30, 2016 and December 31, 2015, the Operating Partnership has recorded distributions receivable from the SUL JV of approximately $ 298,000 179,000 340,000 167,000 173,000 We serve as the manager of the SUL JV and provide management services in exchange for fees and reimbursements (see Note 7). Total acquisition and asset management fees earned in connection with the SUL JV were approximately $ 0.2 25,000 0.3 0.4 As of September 30, 2016 and December 31, 2015, the balance of our equity-method investment was approximately $ 4.0 2.2 |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 6. Receivables Notes Receivable Fernhill Note In September 2014, we loaned approximately $ 140,000 6 0.1 Nantucket Note - Sale of VIE 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 1.7 The $5.0 million purchase money note is collateralized by the Sherburne Commons property, bears an annual interest rate of 3.5 December 31, 2017 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, 2016, we have not collected any funds related to the principal on the note and the balance on the note receivable was $ 4.7 43,000 0 115,000 0 Tenant and Other Receivables, net September 30, December 31, 2016 2015 Accounts receivable from resident services, net of allowance for doubtful accounts of $330,000 and $309,000, respectively $ 906,000 $ 1,002,000 Straight-line rent receivables 2,548,000 2,143,000 Distribution receivables from the SUL JV 298,000 219,000 Receivable from JV 2 properties 362,000 362,000 Other receivables 150,000 87,000 Total $ 4,264,000 $ 3,813,000 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 7. Related Party Transactions CRA Prior to the termination of our advisory agreement on April 1, 2014 with CRA (our former advisor, a related party), we incurred costs related to fees paid and costs reimbursed for services rendered to us by CRA through March 31, 2014. Some of the fees we had paid to CRA were considered to be in excess of allowed amounts and, therefore, CRA was required to reimburse us for the amount of the excess costs we paid to them. The fees and expense reimbursements payable to CRA under our advisory agreement are described in more detail in our Annual Report filed on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 18, 2016. As of September 30, 2016 and December 31, 2015, the receivables from CRA are fully reserved due to the uncertainty of collectability and are included in tenant and other receivables in our condensed consolidated balance sheets. As of September 30, 2016 and December 31, 2015, we had the following receivables and reserves: Receivables Reserves Balance Organizational and offering costs $ 738,000 $ (738,000) $ - Asset management fees and expenses 32,000 (32,000) - Operating expenses (direct and indirect) 189,000 (189,000) - Operating expenses (2%/25% Test) 1,717,000 (1,717,000) - Total Real Estate Properties $ 2,676,000 $ (2,676,000) $ - SUL JV See Note 5 for further discussion of distributions and acquisition and asset management fees related to the SUL JV. |
Concentration of Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 8. Concentration of Risk Our cash is generally invested in investment-grade short-term instruments. As of September 30, 2016, 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, 2016, 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. Additionally, for the three months ended September 30, 2016, we leased our 11 healthcare properties to five different tenants under long-term triple net leases, two of which comprise 51 30 49 29 48 28 49 29 As of September 30, 2016 and December 31, 2015, we have one tenant that constitutes a significant asset concentration, as the net assets of the tenant exceeds 20 |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 9. 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, accrued salaries and benefits, 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, 2016 and December 31, 2015, the fair value of the Nantucket note receivable (see Note 6) was $ 4.9 4.7 As of September 30, 2016 and December 31, 2015, the fair value of loans payable was $ 61.4 67.3 60.5 65.9 4.4 7.3 4.7 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. No impairments were recorded during the three and nine months ended September 30, 2016 and 2015. At September 30, 2016 and December 31, 2015, 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 10. 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 licensed 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. A bankruptcy petition was filed against Healthcare Real Estate Partners, LLC (“HCRE”) by the investors in Healthcare Real Estate Fund, LLC or Healthcare Real Estate Qualified Purchasers Fund, LLC. Following the dismissal of the involuntary bankruptcy petition filed against it, in the United States Bankruptcy Court of the District of Delaware HCRE filed a motion for attorneys’ fees and damages and a separate complaint for violation of the automatic stay against the petitioning creditors and the Company. At a status hearing, the Bankruptcy Court expressed concern about HCRE commencing this litigation and urged the parties to mediate the issues. A mediation has been set for December 2016. The Company believes that all of HCRE’s claims are without merit and will vigorously defend itself. Friendship Haven and Stonegate Management Agreement In October 2015, as part of the amended Stonegate management agreement (see Note 3) the lease is cancellable by either party with written notice, as defined in the agreement. However, if we terminated the agreement before October 6, 2016, we could have been obligated to pay a termination fee up to three times the highest monthly management fee paid to Stonegate prior to the termination. As of October 6, 2016, we did not terminate the agreement and therefore there is no longer any obligation. On October 31, 2016, we notified Stonegate of the termination of our management agreement, which will be effective as of February 28, 2017, or earlier, if approved. Medford Purchase Option Our property, Farmington Square in Medford, Oregon, which has a book value of approximately $ 7.3 10.8 11.0 11.3 August 13, 2022 Purchase Agreement In November 2013, a limited liability company entered into a build-to-suit purchase agreement whereby it agreed to purchase a 70-unit assisted living facility in Athens, Georgia for approximately $ 12.4 8 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. In September 2016, the compensation committee approved the 2016 executive compensation plan. For additional information, see the Company’s Form 8-K filed on September 29, 2016. Management of the SUL JV and the Fantasia JV As the manager of the SUL JV and the Fantasia JV, we are responsible for managing the day-to-day operations of the SUL JV and the Fantasia JV and are, thus, subject to contingencies that may arise in the normal course of the their operations. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 11. Dispositions In accordance with ASC 360, Property, Plant & Equipment On January 7, 2015, we sold the Sherburne Commons property. We recorded approximately $ 1.7 Disposal of real estate In April 2015, we contributed the JV 2 Properties to the SUL JV (see Notes 3, 4 and 5). 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 In December 2015, we contributed the Cottage Properties to the SUL JV which were acquired by us in November 2015 (see Notes 3, 4 and 5). The aggregate net value of the Cottage Properties that were contributed was approximately $ 5.4 19.5 14.1 13.5 On April 29, 2016, we contributed Riverglen to the SUL JV (see Note 3). This contribution resulted in the SUL JV owning Riverglen and, therefore, Riverglen is no longer consolidated in our condensed consolidated financial statements as of April 29, 2016. The aggregate net value of Riverglen at the date of the contribution was approximately $ 3.9 9.2 5.3 4.7 3.4 3.4 0.2 0.3 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. Subsequent Events Medford Purchase Option and Sale In September 2016, the option holder for our Medford property (see Note 10) provided notice to purchase the property. As of September 30, 2016, Medford was not considered as an asset held for sale as all of the criteria for such classification was not met. On October 31, 2016, we closed the sale of the Medford property. The total sale price was $ 10.8 3.8 1.3 8.0 6.7 6.7 2.6 Summit Fantasia Holdings, LLC On September 27, 2016, through our Operating Partnership, we entered into a limited liability company agreement (as such agreement may be amended from time to time, the “Fantasia LLC Agreement”) with Fantasia Investment III LLC (“Fantasia”), an unrelated entity and a U.S.-based affiliate of Fantasia Holdings Group Co., Limited (a Chinese corporation), and formed Summit Fantasia Holdings, LLC (the “Fantasia JV”). The Fantasia JV is not consolidated in our condensed consolidated financial statements and will be accounted for under the equity-method in the Company’s condensed consolidated financial statements. On October 31, 2016, through the Fantasia JV, we acquired a 20 23 Under the Fantasia LLC Agreement, net operating cash flow of the Fantasia JV will be distributed quarterly, first to the Operating Partnership and Fantasia pari passu until each member has received an amount equal to its accrued, but unpaid 8% return, and thereafter 70% to Fantasia and 30% to the Operating Partnership. All capital proceeds from the sale of the properties held by the Fantasia JV, a refinancing or another capital event, will be paid first to the Operating Partnership and Fantasia pari passu until each has received an amount equal to its accrued but unpaid 8% return plus its total capital contribution, and thereafter 70% to Fantasia and 30% to the Operating Partnership We serve as the manager of the Fantasia JV and provide management services in exchange for fees and reimbursements. Under the Fantasia LLC Agreement, as the manager, we are paid an acquisition fee upon closing of an acquisition, as defined in the agreement, based on the purchase price paid for the properties. Additionally, we are paid on a quarterly basis an annual asset management fee equal to 0.75 We expect that the acquisition, through the Fantasia JV, of the two senior housing facilities in Citrus Heights, California and Corvallis, Oregon, will increase our equity-method investment as of October 31, 2016, by approximately $ 1.3 |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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, and 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements On January 1, 2016, the Company adopted theFinancial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. 1.3 1.3 Recently Issued Accounting Pronouncements In November 2016, the FASB has issued ASU No. 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted The FASB has issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments provide guidance on the following eight specific cash flow issues: · Debt Prepayment or Debt Extinguishment Costs; · Settlement of Zero-Coupon Debt Instruments or Other Debt Instruments with Coupon Interest Rates That Are Insignificant in Relation to the Effective Interest Rate of the Borrowing; · Contingent Consideration Payments Made after a Business Combination; · Proceeds from the Settlement of Insurance Claims; · Proceeds from the Settlement of Corporate-Owned Life Insurance Policies, including Bank-Owned; Life Insurance Policies; · Distributions Received from Equity Method Investees; · Beneficial Interests in Securitization Transactions; and · Separately Identifiable Cash Flows and Application of the Predominance Principle. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements when adopted. In June 2016, the FASB issued ASU 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The FASB has issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. We are currently evaluating the impact of our pending adoption of the new standard on our condensed consolidated financial statements. The FASB has issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. 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. In February 2016, the FASB issued ASU No. 2016-02, Leases 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 financial statements for prior periods have been reclassified to conform to the current period presentation. Based on the intended use of the restricted cash, we have classified changes in restricted cash within the statements of cash flows as operating and investing activities and the prior period presentation has been revised to conform to this classification. These reclassifications had no effect on previously reported results of operations. Additionally, see Recently Adopted Accounting Pronouncements above. |
Investments in Real Estate Pr22
Investments in Real Estate Properties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | As of September 30, 2016 and December 31, 2015, our investments in real estate properties, including those acquired through our subsidiaries and CHP, LLC, but excluding properties contributed to and owned by the SUL JV, were as follows: September 30, December 31, 2016 2015 Land $ 6,502,000 $ 6,932,000 Buildings and improvements 65,563,000 73,181,000 Less: accumulated depreciation (7,392,000) (5,842,000) Buildings and improvements, net 58,171,000 67,339,000 Furniture and fixtures 6,596,000 7,086,000 Less: accumulated depreciation (4,479,000) (3,515,000) Furniture and fixtures, net 2,117,000 3,571,000 Real estate properties, net $ 66,790,000 $ 77,842,000 |
Schedule of Real Estate Properties [Table Text Block] | As of September 30, 2016, our portfolio consisted of 11 100 Loans Payable, excluding Purchase debt Number of Property Location Date Purchased Type (2) Price discounts Beds Sheridan Care Center Sheridan, OR August 3, 2012 SNF $ 4,100,000 $ 4,950,000 51 Fernhill Care Center Portland, OR August 3, 2012 SNF 4,500,000 4,342,000 63 Farmington Square Medford, OR September 14, 2012 AL/MC 8,500,000 6,692,000 71 Friendship Haven Healthcare and Rehabilitation Center (1) Galveston County, TX September 14, 2012 SNF 15,000,000 7,000,000 150 Pacific Health and Rehabilitation Center Tigard, OR December 24, 2012 SNF 8,140,000 7,238,000 73 Danby House Winston-Salem, NC January 31, 2013 AL/MC 9,700,000 7,785,000 100 Brookstone of Aledo Aledo, IL July 2, 2013 AL 8,625,000 7,353,000 66 The Shelby House Shelby, NC October 4, 2013 AL 4,500,000 4,815,000 72 The Hamlet House Hamlet, NC October 4, 2013 AL 6,500,000 4,068,000 60 The Carteret House Newport, NC October 4, 2013 AL 4,300,000 3,432,000 64 Sundial Assisted Living Redding, CA December 18, 2013 AL 3,500,000 2,800,000 65 Total: $ 77,365,000 $ 60,475,000 835 (1) We terminated the lease with the tenant of this facility on March 16, 2014 and became the licensed operator and tenant of the facility on May 1, 2014 (Friendswood TRS). Upon becoming the licensed operator and tenant of the facility, we entered into a two-year management agreement with an affiliate of Stonegate Senior Living (“Stonegate”), whereby Stonegate will receive a management fee equal to 6 two years to 12 years (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. |
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 properties owned as of September 30, 2016 are as follows (1) Years ending December 31, October 1, 2016 to December 31, 2016 $ 1,500,000 2017 6,073,000 2018 6,208,000 2019 6,346,000 2020 6,487,000 Thereafter 46,453,000 $ 73,067,000 (1) This schedule does not reflect future rental revenues from the potential renewal or replacement of existing and future leases, tenant reimbursements, and the rental revenues for the tenant (Friendswood TRS) of Friendship Haven. |
Loans Payable (Tables)
Loans Payable (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | As of September 30, 2016 and December 31, 2015, loans payable consisted of the following: September 30, 2016 December 31, 2015 Loan payable to Healthcare Financial Solutions, LLC (formerly GE Capital) in monthly installments of approximately $11,000, including interest at LIBOR (floor of 0.50%) plus 4.0% (4.6% and 4.5% at September 30, 2016 and December 31, 2015, respectively), due in October 2018, and as of September 30, 2016 and December 31, 2015, collateralized by Sundial Assisted Living. $ 2,800,000 $ 2,800,000 Loan payable to Oxford Finance, LLC in monthly installments of approximately $42,000, including interest at LIBOR (floor of 0.75%) plus 6.50% (7.25% as of September 30, 2016 and December 31, 2015) due in October 2019, collateralized by Friendship Haven. 7,000,000 7,000,000 Loan payable to HHF (insured by HUD) in monthly installments of approximately $21,000, including interest, at fixed interest rate of 4.25% due in April 2054, collateralized by Riverglen. - 4,728,000 Loans payable to Lancaster Pollard (insured by HUD) in monthly installments of approximately $238,000, including interest, ranging from a fixed rate of 3.70% to 3.78%, due in September 2039 through January 2051, and as of September 30, 2016 and December 31, 2015 collateralized by Sheridan, Fernhill, Pacific Health, Farmington Square, Shelby, Hamlet, Carteret, Aledo and Danby. 50,675,000 51,372,000 60,475,000 65,900,000 Less debt discounts (2,117,000) (2,270,000) Total loans payable $ 58,358,000 $ 63,630,000 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The principal payments due on the loans payable (excluding debt discounts) for the period from October 1, 2016 to December 31, 2016 and for each of the four following years and thereafter ending December 31 are as follows: Principal Year Amount October 1, 2016 to December 31, 2016 $ 258,000 2017 1,132,000 2018 3,879,000 2019 7,846,000 2020 1,104,000 Thereafter 46,256,000 $ 60,475,000 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Tenant and other receivables, net consists of: September 30, December 31, 2016 2015 Accounts receivable from resident services, net of allowance for doubtful accounts of $330,000 and $309,000, respectively $ 906,000 $ 1,002,000 Straight-line rent receivables 2,548,000 2,143,000 Distribution receivables from the SUL JV 298,000 219,000 Receivable from JV 2 properties 362,000 362,000 Other receivables 150,000 87,000 Total $ 4,264,000 $ 3,813,000 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | As of September 30, 2016 and December 31, 2015, we had the following receivables and reserves: Receivables Reserves Balance Organizational and offering costs $ 738,000 $ (738,000) $ - Asset management fees and expenses 32,000 (32,000) - Operating expenses (direct and indirect) 189,000 (189,000) - Operating expenses (2%/25% Test) 1,717,000 (1,717,000) - Total Real Estate Properties $ 2,676,000 $ (2,676,000) $ - |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Components of Income Loss from Discontinued Operation [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) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate Investment Trust [Member] | |
Organization [Line Items] | |
Equity Method Investment, Ownership Percentage | 10.00% |
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] | Chref Two [Member] | |
Organization [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% |
JV Properties [Member] | Chref One [Member] | |
Organization [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 4.70% |
Summit Union Life Holding [Member] | |
Organization [Line Items] | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 10.00% |
Five JV Propertie [Member] | |
Organization [Line Items] | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 95.30% |
Sixth JV Properties [Member] | |
Organization [Line Items] | |
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 95.00% |
Summit Healthcare Six Properties [Member] | |
Organization [Line Items] | |
Real Estate Investment Trust Own Percentage | 95.00% |
Summit Healthcare Five Properties [Member] | |
Organization [Line Items] | |
Real Estate Investment Trust Own Percentage | 100.00% |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of Significant Accounting Policies [Line Items] | ||
Assets | $ 94,434,000 | $ 102,511,000 |
Liabilities | $ 63,005,000 | $ 68,532,000 |
Cornerstone Healthcare Partners LLC [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 95.00% | |
Restatement Adjustment [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Assets | $ 1,300,000 | |
Liabilities | $ 1,300,000 |
Investments in Real Estate Pr29
Investments in Real Estate Properties (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | ||
Real estate properties, net | $ 66,790,000 | $ 77,842,000 |
Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate properties, net | 6,502,000 | 6,932,000 |
Building Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Investments in real estate | 65,563,000 | 73,181,000 |
Less: accumulated depreciation | (7,392,000) | (5,842,000) |
Real estate properties, net | 58,171,000 | 67,339,000 |
Furniture and Fixture [Member] | ||
Real Estate Properties [Line Items] | ||
Investments in real estate | 6,596,000 | 7,086,000 |
Less: accumulated depreciation | (4,479,000) | (3,515,000) |
Real estate properties, net | $ 2,117,000 | $ 3,571,000 |
Investments in Real Estate Pr30
Investments in Real Estate Properties (Details 1) | 9 Months Ended | |
Sep. 30, 2016USD ($) | ||
Real Estate Properties [Line Items] | ||
Purchase Price | $ 77,365,000 | |
Loans Payable, excluding debt discounts | $ 60,475,000 | |
Number of Beds | 835 | |
Sheridan Care Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Sheridan, OR | |
Date Purchased | Aug. 3, 2012 | |
Type Of property | SNF | [1] |
Purchase Price | $ 4,100,000 | |
Loans Payable, excluding debt discounts | $ 4,950,000 | |
Number of Beds | 51 | |
Fern Hill Care Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Portland, OR | |
Date Purchased | Aug. 3, 2012 | |
Type Of property | SNF | [1] |
Purchase Price | $ 4,500,000 | |
Loans Payable, excluding debt discounts | $ 4,342,000 | |
Number of Beds | 63 | |
Farmington Square [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Medford, OR | |
Date Purchased | Sep. 14, 2012 | |
Type Of property | AL/MC | [1] |
Purchase Price | $ 8,500,000 | |
Loans Payable, excluding debt discounts | $ 6,692,000 | |
Number of Beds | 71 | |
Friendship Haven Healthcare and Rehabilitation Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Galveston County, TX | [2] |
Date Purchased | Sep. 14, 2012 | [2] |
Type Of property | SNF | [1],[2] |
Purchase Price | $ 15,000,000 | [2] |
Loans Payable, excluding debt discounts | $ 7,000,000 | [2] |
Number of Beds | 150 | [2] |
Pacific Health and Rehabilitation Center [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Tigard, OR | |
Date Purchased | Dec. 24, 2012 | |
Type Of property | SNF | [1] |
Purchase Price | $ 8,140,000 | |
Loans Payable, excluding debt discounts | $ 7,238,000 | |
Number of Beds | 73 | |
Danby House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Winston-Salem, NC | |
Date Purchased | Jan. 31, 2013 | |
Type Of property | AL/MC | [1] |
Purchase Price | $ 9,700,000 | |
Loans Payable, excluding debt discounts | $ 7,785,000 | |
Number of Beds | 100 | |
Brookstone of Aledo [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Aledo, IL | |
Date Purchased | Jul. 2, 2013 | |
Type Of property | AL | [1] |
Purchase Price | $ 8,625,000 | |
Loans Payable, excluding debt discounts | $ 7,353,000 | |
Number of Beds | 66 | |
The Shelby House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Shelby, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [1] |
Purchase Price | $ 4,500,000 | |
Loans Payable, excluding debt discounts | $ 4,815,000 | |
Number of Beds | 72 | |
The Hamlet House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Hamlet, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [1] |
Purchase Price | $ 6,500,000 | |
Loans Payable, excluding debt discounts | $ 4,068,000 | |
Number of Beds | 60 | |
The Carteret House [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Newport, NC | |
Date Purchased | Oct. 4, 2013 | |
Type Of property | AL | [1] |
Purchase Price | $ 4,300,000 | |
Loans Payable, excluding debt discounts | $ 3,432,000 | |
Number of Beds | 64 | |
Sundial Assisted Living [Member] | ||
Real Estate Properties [Line Items] | ||
Location | Redding, CA | |
Date Purchased | Dec. 18, 2013 | |
Type Of property | AL | [1] |
Purchase Price | $ 3,500,000 | |
Loans Payable, excluding debt discounts | $ 2,800,000 | |
Number of Beds | 65 | |
[1] | SNF is an abbreviation for skilled nursing facility. AL is an abbreviation for assisted living facility. MC is an abbreviation for memory care facility. | |
[2] | We terminated the lease with the tenant of this facility on March 16, 2014 and became the licensed operator and tenant of the facility on May 1, 2014 (Friendswood TRS). Upon becoming the licensed operator and tenant of the facility, we entered into a two-year management agreement with an affiliate of Stonegate Senior Living (“Stonegate”), whereby Stonegate will receive a management fee equal to 6% of the adjusted gross revenues as defined, from operations of the facility. In October 2015, we amended the management agreement with Stonegate to increase the term from two years to 12 years (see Note 10). |
Investments in Real Estate Pr31
Investments in Real Estate Properties (Details 2) | Sep. 30, 2016USD ($) | [1] |
Real Estate Properties [Line Items] | ||
October 1, 2016 to December 31, 2016 | $ 1,500,000 | |
2,017 | 6,073,000 | |
2,018 | 6,208,000 | |
2,019 | 6,346,000 | |
2,020 | 6,487,000 | |
Thereafter | 46,453,000 | |
Operating Leases, Future Minimum Payments Receivable | $ 73,067,000 | |
[1] | This schedule does not reflect future rental revenues from the potential renewal or replacement of existing and future leases, tenant reimbursements, and the rental revenues for the tenant (Friendswood TRS) of Friendship Haven. |
Investments in Real Estate Pr32
Investments in Real Estate Properties (Details Textual) | Nov. 03, 2015USD ($) | Nov. 17, 2015USD ($) | Jan. 23, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 77,365,000 | |||||||
Number of Real Estate Properties | 11 | 11 | ||||||
Percentage of Real Estate Properties | 100.00% | |||||||
Depreciation and amortization | $ 898,000 | $ 889,000 | $ 2,791,000 | $ 3,154,000 | ||||
Deferred Costs, Total | 2,200,000 | 2,200,000 | $ 2,200,000 | |||||
Deferred Costs, Leasing, Net, Total | 1,576,000 | 1,576,000 | $ 1,697,000 | |||||
Amortization of Deferred Leasing Commissions | $ 40,000 | $ 40,000 | $ 121,000 | $ 121,000 | ||||
Wisconsin Properties [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 18,400,000 | |||||||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 12 years | |||||||
Littleton New Hampshire [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 8,500,000 | |||||||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 15 years | |||||||
Front Royal [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Payments to Acquire Businesses, Gross | $ 14,300,000 | |||||||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 15 years | |||||||
Stonegate [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Lease Termination Period | two years to 12 years | |||||||
Management Fee Rate | 6.00% |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 60,475,000 | $ 65,900,000 |
Less debt discounts | (2,117,000) | (2,270,000) |
Total loans payable | 58,358,000 | 63,630,000 |
Healthcare Financial Solutions, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 2,800,000 | 2,800,000 |
Oxford Finance, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 7,000,000 | 7,000,000 |
Housing and Healthcare Finance [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 4,728,000 |
Lancaster Pollard Mortgage Company, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 50,675,000 | $ 51,372,000 |
Loans Payable (Details 1)
Loans Payable (Details 1) | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
October 1, 2016 to December 31, 2016 | $ 258,000 |
2,017 | 1,132,000 |
2,018 | 3,879,000 |
2,019 | 7,846,000 |
2,020 | 1,104,000 |
Thereafter | 46,256,000 |
Total | $ 60,475,000 |
Loans Payable (Details Textual)
Loans Payable (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Oct. 31, 2015 | Oct. 06, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Apr. 29, 2016 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date, Description | mature between 2018 and 2051 | ||||||||
Loans Payable, Total | $ 58,358,000 | $ 58,358,000 | $ 63,630,000 | ||||||
Interest Expense, Debt | 700,000 | $ 700,000 | 2,200,000 | $ 2,500,000 | |||||
Long-term Debt, Gross | 60,475,000 | 60,475,000 | 65,900,000 | ||||||
Debt Instrument, Unamortized Discount | 2,117,000 | 2,117,000 | 2,270,000 | ||||||
Amortization of Debt Discount (Premium) | $ 34,000 | $ 42,000 | $ 103,000 | $ 172,000 | |||||
General Electric Capital Corporation [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable, Total | $ 10,600,000 | ||||||||
Private Bank and Trust Company Loans [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable, Total | 19,800,000 | ||||||||
Oxford Finance, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | ||||||||
Debt Instrument, Periodic Payment | $ 51,000 | $ 42,000 | |||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR (floor of 0.75%) plus 6.50% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | |||||||
Debt Instrument, Maturity Date, Description | due in October 2019 | ||||||||
Debt Instrument, Collateral | collateralized by Friendship Haven. | ||||||||
Long-term Debt, Gross | $ 7,000,000 | $ 7,000,000 | 7,000,000 | ||||||
Housing and Healthcare Finance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | ||||||||
Debt Instrument, Periodic Payment | $ 21,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |||||||
Debt Instrument, Maturity Date, Description | due in April 2054 | ||||||||
Debt Instrument, Collateral | collateralized by Riverglen. | ||||||||
Long-term Debt, Gross | $ 0 | $ 0 | $ 4,728,000 | ||||||
Lancaster Pollard Mortgage Company, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | ||||||||
Debt Instrument, Periodic Payment | $ 238,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | 3.70% | 3.78% | ||||||
Debt Instrument, Maturity Date, Description | due in September 2039 through January 2051 | ||||||||
Debt Instrument, Collateral | collateralized by Sheridan, Fernhill, Pacific Health, Farmington Square, Shelby, Hamlet, Carteret, Aledo and Danby. | collateralized by Sheridan, Fernhill, Pacific Health, Farmington Square, Shelby, Hamlet, Carteret, Aledo and Danby. | |||||||
Long-term Debt, Gross | $ 50,675,000 | $ 50,675,000 | $ 51,372,000 | ||||||
SUL JV [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable, Total | $ 30,400,000 | ||||||||
Healthcare Financial Solutions, LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Frequency of Periodic Payment | monthly | ||||||||
Debt Instrument, Periodic Payment | $ 15,000 | $ 11,000 | |||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR (floor of 0.50%) plus 4.0% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | 4.60% | 4.50% | ||||||
Debt Instrument, Maturity Date, Description | due in October 2018 | ||||||||
Debt Instrument, Collateral | collateralized by Sundial Assisted Living. | ||||||||
Riverglen [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loans Payable, Total | $ 4,700,000 |
Equity-Method Investment (Detai
Equity-Method Investment (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Apr. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 02, 2016 | Dec. 24, 2015 | Oct. 31, 2015 | Apr. 30, 2015 | |
Limited Liability Company or Limited Partnership, Managing Member or General Partner, Compensation | Under the SUL LLC Agreement, as amended, net operating cash flow of the SUL JV will be distributed monthly, first to the Operating Partnership and Best Years pari passu up to a 9% to 10% annual return, as defined, and thereafter to Best Years 75% and the Operating Partnership 25%. All capital proceeds from the sale of the properties held by the SUL JV, a refinancing, or another 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 9% to 10% return plus its total contribution, and thereafter to Best Years 75% and the Operating Partnership 25%. | |||||||||
Asset Management Fees | $ 200,000 | $ 25,000 | $ 300,000 | $ 400,000 | ||||||
Equity Method Investments | $ 300,000 | 4,010,000 | 4,010,000 | $ 2,178,000 | ||||||
Distribution receivable from the SULJV | 298,000 | |||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 173,000 | 0 | ||||||||
Dividends Receivable | 298,000 | 298,000 | 219,000 | |||||||
Loans Payable, Total | 58,358,000 | 58,358,000 | 63,630,000 | |||||||
Proceeds from Contributions from Parent | 2,814,000 | $ 9,351,000 | ||||||||
Riverglen [Member] | ||||||||||
Net Value Of Properties | 3,900,000 | |||||||||
Operating Partnership [Member] | ||||||||||
Equity Method Investments | 300,000 | |||||||||
Equity Method Investment, Summarized Financial Information, Assets | 9,200,000 | |||||||||
Equity Method Investment, Summarized Financial Information, Liabilities | 5,300,000 | |||||||||
Loans Payable, Total | 4,700,000 | |||||||||
Proceeds from Noncontrolling Interests | 3,400,000 | |||||||||
Proceeds from Contributions from Parent | 3,400,000 | |||||||||
Equity Method Investments Reimbursed Acquisition Costs | $ 200,000 | |||||||||
Operating Partnership Llc [Member] | ||||||||||
Equity Method Investment, Ownership Percentage | 10.00% | |||||||||
Distribution receivable from the SULJV | 298,000 | 179,000 | ||||||||
Investment Income, Dividend | 340,000 | |||||||||
Proceeds from Equity Method Investment, Dividends or Distributions | 167,000 | |||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 173,000 | |||||||||
Best Years Llc [Member] | ||||||||||
Equity Method Investment, Ownership Percentage | 90.00% | |||||||||
SUL Joint Venture [Member] | ||||||||||
Equity Method Investments | 4,000,000 | 4,000,000 | 2,200,000 | $ 500,000 | $ 800,000 | $ 1,000,000 | ||||
JV 2 Properties [Member] | ||||||||||
Dividends Receivable | $ 362,000 | $ 362,000 | $ 362,000 | $ 362,000 | ||||||
SUL JV acquired [Member] | ||||||||||
Equity Method Investments | $ 1,800,000 |
Receivables (Details)
Receivables (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable from resident services, net of allowance for doubtful accounts of $330,000 and $309,000, respectively | $ 906,000 | $ 1,002,000 |
Straight-line rent receivables | 2,548,000 | 2,143,000 |
Distribution receivables from the SUL JV | 298,000 | 219,000 |
Receivable from JV 2 properties | 362,000 | 362,000 |
Other receivables | 150,000 | 87,000 |
Total | $ 4,264,000 | $ 3,813,000 |
Receivables (Details Textual)
Receivables (Details Textual) - USD ($) | Jan. 07, 2015 | Jan. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Interest Income Note Receivable | $ 43,000 | $ 0 | $ 115,000 | $ 0 | ||||
Financing Receivable, Net | 4,809,000 | 4,809,000 | $ 4,833,000 | |||||
Gain (Loss) on Disposition of Assets, Total | 0 | $ (1,582,000) | ||||||
Allowance for Doubtful Accounts Receivable | 330,000 | 330,000 | 309,000 | |||||
Variable Interest Entity [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gain (Loss) on Disposition of Assets, Total | $ 1,700,000 | |||||||
Nantucket Note [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
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. | |||||||
Receivable with Imputed Interest, Due Date | Dec. 31, 2017 | |||||||
Operator [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Net | $ 100,000 | $ 100,000 | $ 100,000 | $ 140,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ (330,000) | $ (309,000) |
Accounts Receivable, Net, Total | 906,000 | $ 1,002,000 |
Cornerstone Realty Advisors, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Gross | 2,676,000 | |
Allowance for Doubtful Accounts Receivable | (2,676,000) | |
Accounts Receivable, Net, Total | 0 | |
Organizational And Offering Costs [Member] | Cornerstone Realty Advisors, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Gross | 738,000 | |
Allowance for Doubtful Accounts Receivable | (738,000) | |
Accounts Receivable, Net, Total | 0 | |
Asset Management Fees And Expenses [Member] | Cornerstone Realty Advisors, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Gross | 32,000 | |
Allowance for Doubtful Accounts Receivable | (32,000) | |
Accounts Receivable, Net, Total | 0 | |
Operating Expenses Direct And Indirect [Member] | Cornerstone Realty Advisors, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Gross | 189,000 | |
Allowance for Doubtful Accounts Receivable | (189,000) | |
Accounts Receivable, Net, Total | 0 | |
Operating Expenses Two Percent Out Of Twenty Five Percent Test [Member] | Cornerstone Realty Advisors, LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts Receivable, Gross | 1,717,000 | |
Allowance for Doubtful Accounts Receivable | (1,717,000) | |
Accounts Receivable, Net, Total | $ 0 |
Related Party Transactions (D40
Related Party Transactions (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Percentage Of Restricted Operating Expenses | 2.00% |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Percentage Of Restricted Operating Expenses | 25.00% |
Concentration of Risk (Details
Concentration of Risk (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Tenant one, Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 51.00% | 49.00% | 48.00% | 49.00% | |
Tenant two, Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 30.00% | 29.00% | 28.00% | 29.00% | |
Assets, Total [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 20.00% | 20.00% |
Fair Value Measurements of Fi42
Fair Value Measurements of Financial Instruments (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 4,900,000 | |
Fair Value Inputs Discount Rate Notes Payable | 4.70% | |
Notes Payable, Total | $ 4,700,000 | |
Loans Payable, Fair Value Disclosure | $ 61,400,000 | 67,300,000 |
Long-term Debt, Gross | $ 60,475,000 | $ 65,900,000 |
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 | 7.30% |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Nov. 30, 2013 | Sep. 30, 2016 | |
Call Option [Member] | ||
Property, Plant, and Equipment, Owned, Net | $ 7.3 | |
Purchase Option on Property, Plant and Equipment, Expiration Date | Aug. 13, 2022 | |
Right to Purchase the Property, Value | $ 10.8 | |
November 2016 Through July 2017 [Member] | ||
Right to Purchase the Property, Value | 11 | |
August 2017 through August 2022 [Member] | ||
Right to Purchase the Property, Value | $ 11.3 | |
Living Facility in Athens, Georgia [Member] | ||
Annual Rent, Percentage on Cost of Facility | 8.00% | |
Contractual Obligation | $ 12.4 |
Dispositions (Details)
Dispositions (Details) - USD ($) | 1 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Contribution of Property | $ 3,927,000 | $ 9,908,000 |
Loans Payable, net [Member] | ||
Contribution of Property | 4,685,000 | 30,133,000 |
Real estate properties [Member] | ||
Contribution of Property | (8,536,000) | (40,391,000) |
Other assets [Member] | ||
Contribution of Property | (677,000) | (832,000) |
Other liabilities [Member] | ||
Contribution of Property | $ 601,000 | $ 1,182,000 |
Dispositions (Details Textual)
Dispositions (Details Textual) - USD ($) | Jan. 07, 2015 | Apr. 29, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 24, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (Loss) on Disposition of Real Estate, Discontinued Operations | $ 1,700,000 | $ 0 | $ 991,000 | ||||
Loans Payable, Total | 58,358,000 | $ 63,630,000 | |||||
Proceeds from Contributions from Parent | 2,814,000 | $ 9,351,000 | |||||
Equity Method Investments | $ 300,000 | $ 4,010,000 | $ 2,178,000 | ||||
Operating Partnership [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loans Payable, Total | 4,700,000 | ||||||
Proceeds from Noncontrolling Interests | 3,400,000 | ||||||
Proceeds from Contributions from Parent | 3,400,000 | ||||||
Equity Method Investments Reimbursed Acquisition Costs | 200,000 | ||||||
Equity Method Investments | 300,000 | ||||||
Equity Method Investment, Summarized Financial Information, Assets | 9,200,000 | ||||||
Equity Method Investment, Summarized Financial Information, Liabilities | 5,300,000 | ||||||
Riverglen [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Value Of Properties | $ 3,900,000 | ||||||
Loans Payable, net [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 13,500,000 | ||||||
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 | ||||||
Disposal Group, Including Discontinued Operation, Assets, Total | 19,500,000 | ||||||
Disposal Group, Including Discontinued Operation, Liabilities | 14,100,000 | ||||||
Cottage Properties [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Value Of Properties | $ 5,400,000 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | ||
Oct. 31, 2016 | Sep. 30, 2016 | Apr. 29, 2016 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||||
Limited Liability Company or Limited Partnership, Managing Member or General Partner, Compensation | Under the SUL LLC Agreement, as amended, net operating cash flow of the SUL JV will be distributed monthly, first to the Operating Partnership and Best Years pari passu up to a 9% to 10% annual return, as defined, and thereafter to Best Years 75% and the Operating Partnership 25%. All capital proceeds from the sale of the properties held by the SUL JV, a refinancing, or another 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 9% to 10% return plus its total contribution, and thereafter to Best Years 75% and the Operating Partnership 25%. | |||
Equity Method Investments | $ 4,010,000 | $ 300,000 | $ 2,178,000 | |
Assets, Total | 94,434,000 | 102,511,000 | ||
Liabilities, Total | 63,005,000 | $ 68,532,000 | ||
Gain (Loss) on Sale of Properties | 2,600,000 | |||
Medford property [Member] | ||||
Subsequent Event [Line Items] | ||||
Right to Purchase the Property, Value | 10,800,000 | |||
Cash | 3,800,000 | |||
Land Available-for-sale | 1,300,000 | |||
Assets, Total | 8,000,000 | |||
Liabilities, Total | 6,700,000 | |||
Loans Payable Transferred Upon Disposition Of Properties | $ 6,700,000 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Limited Liability Company or Limited Partnership, Managing Member or General Partner, Compensation | Under the Fantasia LLC Agreement, net operating cash flow of the Fantasia JV will be distributed quarterly, first to the Operating Partnership and Fantasia pari passu until each member has received an amount equal to its accrued, but unpaid 8% return, and thereafter 70% to Fantasia and 30% to the Operating Partnership. All capital proceeds from the sale of the properties held by the Fantasia JV, a refinancing or another capital event, will be paid first to the Operating Partnership and Fantasia pari passu until each has received an amount equal to its accrued but unpaid 8% return plus its total capital contribution, and thereafter 70% to Fantasia and 30% to the Operating Partnership | |||
Subsequent Event [Member] | Summit Fantasia Holdings, LLC [Member] | ||||
Subsequent Event [Line Items] | ||||
Equity Method Investments | $ 1,300,000 | |||
Percentage of Asset Management Fees | 0.75% | |||
Subsequent Event [Member] | Summit Fantasia Holdings, LLC [Member] | Two Senior Housing Facilities [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Combination, Consideration Transferred | $ 23,000,000 | |||
Noncontrolling Interest, Ownership Percentage By Parent | 20.00% |