Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 08, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Landmark Apartment Trust of America, Inc. | ' |
Entity Central Index Key | '0001347523 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,553,744 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real estate investments: | ' | ' |
Operating properties, net | $1,726,352 | $1,410,513 |
Operating property held for sale, net | 10,367 | ' |
Total real estate investments | 1,736,719 | 1,410,513 |
Cash and cash equivalents | 15,229 | 4,349 |
Accounts receivable, net | 1,630 | 1,085 |
Other receivables due from affiliates | 2,182 | 2,544 |
Restricted cash | 30,922 | 29,690 |
Goodwill | 9,198 | 9,679 |
Real estate and escrow deposits | 240 | 2,536 |
Investments in unconsolidated entities | 9,442 | 11,156 |
Identified intangible assets, net | 20,185 | 35,849 |
Other assets, net | 21,501 | 19,289 |
Other assets - operating property held for sale | 273 | ' |
Total assets | 1,847,521 | 1,526,690 |
Liabilities: | ' | ' |
Mortgage loan payables, net | 1,011,329 | 838,434 |
Mortgage loan payable - operating property held for sale | 7,340 | ' |
Total mortgage loan payables | 1,018,669 | 838,434 |
Unsecured notes payable to affiliate | 5,784 | 5,784 |
Credit Facility | 160,688 | 145,200 |
Line of credit | 3,902 | ' |
Accounts payable and accrued liabilities | 36,934 | 31,488 |
Other payables due to affiliates | 1,334 | 915 |
Acquisition contingent consideration | 2,700 | 4,030 |
Security deposits, prepaid rent and other liabilities | 7,326 | 6,954 |
Other liabilities - operating property held for sale | 162 | ' |
Total liabilities | 1,517,666 | 1,242,099 |
Stockholders' equity: | ' | ' |
Common stock, $0.01 par value; 300,000,000 shares authorized; 25,516,036 and 25,182,988 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 253 | 252 |
Additional paid-in capital | 226,743 | 224,340 |
Accumulated other comprehensive operations, net | -304 | -178 |
Accumulated deficit | -182,956 | -165,216 |
Total stockholders' equity | 43,736 | 59,198 |
Redeemable non-controlling interests in operating partnership | 258,425 | 221,497 |
Non-controlling interest partners | 27,694 | 3,896 |
Total equity | 329,855 | 284,591 |
Total liabilities and equity | 1,847,521 | 1,526,690 |
Series D Preferred Stock [Member] | ' | ' |
Liabilities: | ' | ' |
Cumulative non-convertible redeemable preferred stock with derivative | 206,498 | 209,294 |
Series E Preferred Stock [Member] | ' | ' |
Liabilities: | ' | ' |
Cumulative non-convertible redeemable preferred stock with derivative | $73,669 | $0 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 25,516,036 | 25,182,988 |
Common stock, shares outstanding | 25,516,036 | 25,182,988 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Rental income | $52,766 | $25,376 | $104,567 | $47,041 |
Other property revenue | 7,647 | 3,367 | 14,975 | 6,243 |
Management fee income | 1,319 | 1,351 | 2,277 | 1,593 |
Reimbursed income | 3,564 | 5,047 | 5,996 | 8,593 |
Total revenues | 65,296 | 35,141 | 127,815 | 63,470 |
Expenses: | ' | ' | ' | ' |
Rental expense | 27,482 | 13,500 | 54,679 | 24,394 |
Property lease expense | 17 | 574 | 33 | 1,553 |
Reimbursed expense | 3,564 | 5,047 | 5,996 | 8,593 |
General, administrative and other expense | 5,412 | 3,609 | 11,736 | 6,415 |
Change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration | -9,493 | 145 | -11,177 | 107 |
Acquisition-related expense, net | -1,707 | 1,632 | 2,011 | 2,640 |
Loss from unconsolidated entities | 938 | ' | 1,169 | ' |
Depreciation and amortization | 23,567 | 12,328 | 55,611 | 23,261 |
Total expenses | 49,780 | 36,835 | 120,058 | 66,963 |
Other income/(expense): | ' | ' | ' | ' |
Interest expense, net | -15,928 | -6,919 | -31,533 | -12,754 |
Preferred dividends classified as interest expense | -10,480 | -1,497 | -20,460 | -2,804 |
Gain on sale of operating properties | 6,998 | ' | 6,998 | ' |
Disposition right income | ' | 671 | ' | 1,231 |
Loss on debt and preferred stock extinguishment | ' | -9,536 | ' | -10,220 |
Loss from continuing operations before income tax | -3,894 | -18,975 | -37,238 | -28,040 |
Income tax (expense)/benefit | -220 | 286 | 223 | 3,119 |
Loss from continuing operations | -4,114 | -18,689 | -37,015 | -24,921 |
Discontinued operations: | ' | ' | ' | ' |
Income from discontinued operations | ' | 218 | ' | 7,069 |
Total discontinued operations | ' | 218 | ' | 7,069 |
Net loss | -4,114 | -18,471 | -37,015 | -17,852 |
Less: Net loss attributable to redeemable non-controlling interests in operating partnership | 2,665 | 9,137 | 21,814 | 8,842 |
Net (income)/loss attributable to non-controlling interest partner | -112 | 0 | 1,371 | 0 |
Net loss attributable to common stockholders | -1,561 | -9,334 | -13,830 | -9,010 |
Other comprehensive income/(loss): | ' | ' | ' | ' |
Change in cash flow hedges attributable to redeemable non-controlling interest in operating partnership | 115 | ' | 230 | -50 |
Change in cash flow hedges attributable to non-controlling interest partners | 240 | ' | 330 | ' |
Change in cash flow hedges | -408 | ' | -686 | 310 |
Comprehensive operations attributable to common stockholders | ($1,614) | ($9,334) | ($13,956) | ($8,750) |
Earnings per weighted average common share - basic and diluted: | ' | ' | ' | ' |
Loss per share from continuing operations attributable to common stockholders | ($0.06) | ($0.44) | ($0.55) | ($0.59) |
Income per share from discontinued operations attributable to common stockholders | ' | $0.01 | ' | $0.17 |
Net loss per share attributable to common stockholders - basic and diluted | ($0.06) | ($0.43) | ($0.55) | ($0.42) |
Weighted average number of common shares outstanding - basic and diluted | 25,294,650 | 21,755,583 | 25,258,683 | 21,397,257 |
Weighted average number of common units held by non-controlling interests - basic and diluted | 39,624,222 | 21,628,550 | 38,929,094 | 20,278,027 |
Distributions declared per common share | $0.08 | $0.08 | $0.15 | $0.15 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss, net [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity [Member] | Redeemable Non- Controlling Interests in Operating Partnership [Member] | Non-Controlling Interest Partners [Member] |
In Thousands, except Share data | ||||||||
Balance at Dec. 31, 2013 | $284,591 | $252 | $224,340 | ($178) | ($165,216) | $59,198 | $221,497 | $3,896 |
Balance (in Shares) at Dec. 31, 2013 | ' | 25,182,988 | ' | ' | ' | ' | ' | ' |
Change in cash flow hedges | -686 | ' | ' | -126 | ' | -126 | -230 | -330 |
Capital contribution from non-controlling interest partner | 26,486 | ' | ' | ' | ' | ' | ' | 26,486 |
Issuance of vested and nonvested restricted common stock | 150 | ' | 150 | ' | ' | 150 | ' | ' |
Issuance of vested and nonvested restricted common stock (in shares) | ' | 200,038 | ' | ' | ' | ' | ' | ' |
Forfeiture of nonvested restricted common stock | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture nonvested restricted common stock (in shares) | ' | -800 | ' | ' | ' | ' | ' | ' |
Offering costs | -3 | ' | -3 | ' | ' | -3 | ' | ' |
Issuance of LTIP units | 801 | ' | 801 | ' | ' | 801 | ' | ' |
Amortization of nonvested restricted common stock and LTIP unit compensation | 366 | ' | 366 | ' | ' | 366 | ' | ' |
Issuance of common stock under the DRIP | 1,090 | 1 | 1,089 | ' | ' | 1,090 | ' | ' |
Issuance of common stock under the DRIP (in shares) | ' | 133,810 | ' | ' | ' | ' | ' | ' |
Distributions | -10,952 | ' | ' | ' | -3,910 | -3,910 | -6,055 | -987 |
Issuance of limited partnership units including the reinvestment of distributions | 65,027 | ' | ' | ' | ' | ' | 65,027 | ' |
Net loss attributable to redeemable non-controlling interests in operating partnership | -21,814 | ' | ' | ' | ' | ' | -21,814 | ' |
Net loss attributable to non-controlling interest partners | -1,371 | ' | ' | ' | ' | ' | ' | -1,371 |
Net loss attributable to common stockholders | -13,830 | ' | ' | ' | -13,830 | -13,830 | ' | ' |
Balance at Jun. 30, 2014 | $329,855 | $253 | $226,743 | ($304) | ($182,956) | $43,736 | $258,425 | $27,694 |
Balance (in Shares) at Jun. 30, 2014 | ' | 25,516,036 | ' | ' | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net loss | ($37,015,000) | ($17,852,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization (including deferred financing costs, debt discount and discontinued operations) | 57,305,000 | 24,457,000 |
Gain on sale of operating properties | -6,998,000 | -6,620,000 |
Disposition right income | ' | -1,231,000 |
Loss on debt and preferred stock extinguishment | ' | 10,220,000 |
Deferred income tax benefit | -435,000 | -3,207,000 |
Accretion expense related to preferred stock | 3,073,000 | 635,000 |
Fair value adjustments | -11,177,000 | 118,000 |
Equity based compensation, net of forfeitures | 1,317,000 | 193,000 |
Bad debt expense | 1,218,000 | 252,000 |
Loss from unconsolidated entities | 1,169,000 | ' |
Changes in operating assets and liabilities: | ' | ' |
Increase in operating assets | -5,353,000 | -8,029,000 |
Increase in operating liabilities | 4,470,000 | 7,701,000 |
Net cash provided by operating activities | 7,574,000 | 6,637,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Acquisition of apartment communities, net | -92,791,000 | -171,027,000 |
Proceeds from the sale of operating properties, net | 13,889,000 | 13,284,000 |
Capital expenditures | -17,312,000 | -2,636,000 |
Return of investment from unconsolidated entities | 380,000 | ' |
Change in deposits on real estate acquisitions | 2,296,000 | -11,176,000 |
Change in restricted cash - capital replacement reserves | 1,024,000 | -2,374,000 |
Net cash used in investing activities | -92,514,000 | -173,929,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from the issuance of mortgage loan payables | 16,100,000 | 79,395,000 |
Payments on mortgage loan payables | -5,888,000 | -51,119,000 |
Net proceeds on credit facility | 19,932,000 | 114,262,000 |
Net proceeds on line of credit | 3,902,000 | ' |
Proceeds from the issuance of redeemable preferred stock | 74,000,000 | 108,583,000 |
Payment of prepayment penalties and deferred financing costs | -2,779,000 | -16,530,000 |
Redemption of preferred stock | ' | -60,000,000 |
Payment of offering costs | -3,000 | -7,000 |
Distributions paid to common stockholders | -2,700,000 | -2,277,000 |
Distributions paid to holders of LTIP Units | -111,000 | -74,000 |
Distributions paid to redeemable non-controlling interests in operating partnership | -5,646,000 | -3,503,000 |
Distributions paid to non-controlling interest partners | -987,000 | ' |
Net cash provided by financing activities | 95,820,000 | 168,730,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,880,000 | 1,438,000 |
CASH AND CASH EQUIVALENTS - Beginning of period | 4,349,000 | 2,447,000 |
CASH AND CASH EQUIVALENTS - End of period | 15,229,000 | 3,885,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
State income taxes | 212,000 | 88,000 |
Financing Activities: | ' | ' |
Mortgage loan payables assumed with the acquisition of apartment communities, net | 181,118,000 | 33,915,000 |
Credit facility repayment at time of disposition of apartment community | 4,444,000 | ' |
Unsecured notes payable to affiliate | ' | 10,000,000 |
Issuance of redeemable non-controlling interests in operating partnership for acquisition of properties and the ELRM Transaction including settlement of contingent consideration | 64,818,000 | 35,364,000 |
Issuance of common stock for the acquisition of apartment communities | ' | 8,244,000 |
Issuance of common stock under the DRIP | 1,090,000 | 930,000 |
Change in other comprehensive operations | -686,000 | 310,000 |
Common Stock [Member] | ' | ' |
Financing Activities: | ' | ' |
Distributions declared but not paid | 638,000 | 545,000 |
Mortgage Loans Payables And Credit Facilities [Member] | ' | ' |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Interest paid | 25,571,000 | 12,206,000 |
Preferred Stock [Member] | ' | ' |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Interest paid | 13,569,000 | 4,447,000 |
Redeemable Non- Controlling Interests in Operating Partnership [Member] | ' | ' |
Financing Activities: | ' | ' |
Issuance of redeemable non-controlling interest in operating partnership due to reinvestment of distribution | 209,000 | 91,000 |
Fair value of non-controlling interest partner's interest in acquired properties | 26,486,000 | ' |
Distributions declared but not paid | 1,036,000 | 577,000 |
LTIP Units [Member] | ' | ' |
Financing Activities: | ' | ' |
Distributions declared but not paid | ' | $16,000 |
Organization_and_Description_o
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Organization and Description of Business | ' |
1. Organization and Description of Business | |
Landmark Apartment Trust of America, Inc., a Maryland corporation, was incorporated on December 21, 2005. We conduct substantially all of our operations through Landmark Apartment Trust of America Holdings, LP, or our operating partnership. We are in the business of acquiring, holding and managing a diverse portfolio of quality apartment communities with stable cash flows and growth potential in select metropolitan areas in the Southern United States. We may also acquire and have acquired other real estate-related investments. We focus primarily on investments that produce current income. We are self-administered and self-managed in that we provide our own investment, administrative and management services internally through our own employees. We have qualified and elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, for federal income tax purposes, and we intend to continue to be taxed as a REIT. | |
As of June 30, 2014, we consolidated 78 apartment communities, including seven properties held through consolidated joint ventures, and two parcels of undeveloped land with an aggregate of 24,045 apartment units, which had an aggregate gross carrying value of $1.9 billion. We refer to these properties as our consolidated owned properties. We hold a non-controlling interest in two apartment communities with an aggregate of 750 apartment units which are accounted for under the equity method. We also serve as the third-party manager for an additional 23 properties which have an aggregate of 7,984 apartment units. We refer to these as our managed properties. We have an indirect ownership interest in eight of those managed properties through our investment in Timbercreek Holding L.P. (as defined in Note 5, Investments in Unconsolidated Entities). Our managed properties are managed by ATA Property Management, LLC, or our Property Manager, which includes the assets of the property management business of Elco Landmark Residential Management, LLC and certain of its affiliates, including Elco Landmark Residential Holdings, or ELRH, which we acquired in 2013, or the ELRM Transaction. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
2. Summary of Significant Accounting Policies | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2014. | |
Certain prior year amounts have been reclassified to conform to the current year presentation due to the breakout of preferred dividends from interest expense, net to preferred dividends classified as interest expense and the breakout of the change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration from general, administrative and other expense in the condensed consolidated statements of comprehensive operations. | |
Income Taxes | |
We have qualified and elected to be taxed as a REIT under the Code for federal income tax purposes, and we intend to continue to be taxed as a REIT. To qualify as a REIT for federal income tax purposes, we must meet certain organizational and operational requirements, including a requirement to pay distributions to our stockholders of at least 90% of our annual taxable income, excluding net capital gains. As a REIT, we generally will not be subject to federal income tax on net income that we distribute to our stockholders. We are subject to state and local income taxes in some jurisdictions, and in certain circumstances, we may also be subject to federal excise taxes on undistributed income. In addition, certain of our activities must be conducted by subsidiaries that elect to be treated as a taxable REIT subsidiary, or a TRS. A TRS is subject to both federal and state income taxes. | |
Our Property Manager is organized as a TRS and, accordingly, is subject to income taxation. Our Property Manager has incurred taxable losses since inception and did not have an income tax provision or benefit prior to December 31, 2012 due to the recording of a full valuation allowance against its deferred tax assets. During the first quarter of 2013, we evaluated the ability to realize our deferred tax asset, which was previously offset by a full valuation allowance. Due to a deferred tax liability resulting from the ELRM Transaction, we determined it is more likely than not that our deferred tax asset will be realized. Accordingly, an income tax benefit of $286,000 and $3.1 million was recognized for the three and six months ended June 30, 2013, respectively, which includes a reversal of the prior valuation allowance of $2.7 million. An income tax (expense)/benefit of $(220,000) and $223,000 was recognized for the three and six months ended June 30, 2014, respectively, which includes state income tax expense of $212,000 for each of those periods. | |
As of March 31, 2014, our deferred tax assets were approximately equal to our deferred tax liabilities. Due to the history of losses incurred by the Property Manager, additional deferred tax assets that were created in the quarter ended June 30, 2014, were, therefore, offset by a valuation allowance. It is expected that any future net deferred tax assets will be offset by a valuation allowance until the Property Manager becomes consistently profitable. Total net operating loss carry forward for federal income tax purposes was approximately $4.2 million as of June 30, 2014. The net operating loss carry forward will expire beginning 2031. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, which incorporates a requirement that a disposition represent a strategic shift in an entity’s operations into the definition of a discontinued operation. In accordance with ASU 2014-08, a discontinued operation represents (i) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (ii) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (i) a separate major line of business, (ii) a separate major geographic area of operations, (iii) a major equity method investment, or (iv) other major parts of an entity. The standard requires prospective application and will be effective for interim and annual periods beginning on or after December 15, 2014 with early adoption permitted. The standard is not applied to components of an entity that were sold or classified as held for sale prior to the adoption of the standard. | |
We have elected to adopt this standard early, effective January 1, 2014, which primarily has the impact of reflecting gains and losses on the sale of operating properties prospectively within continuing operations, and results in not classifying the operations of such operating properties as discontinued operations in all periods presented. Subsequent to our adoption of ASU 2014-08, the sale of real estate that does not meet the definition of a discontinued operation under the standard will be included in gain on sale of operating properties in our condensed consolidated statements of comprehensive operations. During the six months ended June 30, 2014, we sold two apartment communities which were subject to the early adoption of ASU 2014-08 and, therefore, the gain on such sale is reported as a gain on sale of operating properties within continuing operations. During the year ended December 31, 2013, we sold two of our apartment communities which were not subject to the early adoption of ASU 2014-08 and, therefore, the gain on such sales and results of operations prior to such sales are reported as discontinued operations for the three and six months ended June 30, 2013 in our condensed consolidated statements of comprehensive operations. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which is a revenue recognition standard that will result in companies recognizing revenue from contracts when control for the service or product that is the subject of the contract is transferred from the seller to the buyer. We will be required to apply the new standard in the first quarter of 2017 and are assessing whether the new standard will have a material effect on our financial position or results of operations. |
Real_Estate_Investments
Real Estate Investments | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||
Real Estate Investments | ' | ||||||||||||||
3. Real Estate Investments | |||||||||||||||
The investments in our consolidated owned properties, net consisted of the following as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||
June 30, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Operating properties: | |||||||||||||||
Land | $ | 275,957 | $ | 221,595 | |||||||||||
Land improvements | 136,794 | 118,652 | |||||||||||||
Building and improvements(1) | 1,394,221 | 1,129,619 | |||||||||||||
Furniture, fixtures and equipment | 36,392 | 30,567 | |||||||||||||
Operating properties, held for sale: | |||||||||||||||
Land | 2,187 | — | |||||||||||||
Land improvements | 1,377 | — | |||||||||||||
Building and improvements(1) | 7,321 | — | |||||||||||||
Furniture, fixtures and equipment | 169 | — | |||||||||||||
1,854,418 | 1,500,433 | ||||||||||||||
Less: accumulated depreciation | (117,699 | ) | (89,920 | ) | |||||||||||
Total real estate investments | $ | 1,736,719 | $ | 1,410,513 | |||||||||||
-1 | Includes $25 million and $10.4 million of direct construction costs for our repositioning activities as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Depreciation expense for the three months ended June 30, 2014 and 2013 was $14.9 million and $7.6 million, respectively, and for the six months ended June 30, 2014 and 2013, was $29.2 million and $14 million, respectively. | |||||||||||||||
Real Estate Acquisitions | |||||||||||||||
During the six months ended June 30, 2014, we completed the acquisition of 13 consolidated apartment communities, as set forth below (in thousands, except unit data): | |||||||||||||||
Property Description | Date Acquired | Number | Total | Percentage | |||||||||||
of Units | Purchase | Ownership | |||||||||||||
Price | |||||||||||||||
Landmark at Chesterfield — Pineville, NC(1) | January 7, 2014 | 250 | $ | 19,451 | 61.2 | % | |||||||||
Landmark at Coventry Pointe — Lawrenceville, GA(1) | 7-Jan-14 | 250 | 27,826 | 61.2 | % | ||||||||||
Landmark at Grand Oasis — Suwanee, GA(1) | 7-Jan-14 | 434 | 48,290 | 61.2 | % | ||||||||||
Landmark at Rosewood — Dallas, TX(1) | 7-Jan-14 | 232 | 12,902 | 61.2 | % | ||||||||||
Lake Village East — Garland, TX | 9-Jan-14 | 329 | 18,547 | 100 | % | ||||||||||
Lake Village North — Garland, TX | 9-Jan-14 | 848 | 59,147 | 100 | % | ||||||||||
Lake Village West — Garland, TX | 9-Jan-14 | 294 | 19,221 | 100 | % | ||||||||||
Landmark at Laurel Heights — Mesquite, TX | 9-Jan-14 | 286 | 20,709 | 100 | % | ||||||||||
Landmark at Bella Vista — Duluth, GA | January 15, 2014 | 564 | 31,277 | 100 | % | ||||||||||
Landmark at Maple Glen — Orange Park, FL(1) | 15-Jan-14 | 358 | 32,246 | 51.1 | % | ||||||||||
Landmark at Pine Court — Columbia, SC | 23-Jan-14 | 316 | 20,300 | 100 | % | ||||||||||
Landmark at Spring Creek — Garland, TX(1) | 6-Feb-14 | 236 | 10,267 | 92.6 | % | ||||||||||
Landmark at Andros Isles — Daytona Beach, FL | 4-Jun-14 | 360 | 47,700 | 100 | % | ||||||||||
Total acquired apartment communities | 4,757 | $ | 367,883 | ||||||||||||
-1 | We consolidate an entity for which we own less than 100% but we hold the controlling financial interest or have management control. |
Real_Estate_Disposition_Activi
Real Estate Disposition Activities | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Real Estate Disposition Activities | ' | ||||||||
4. Real Estate Disposition Activities | |||||||||
As of June 30, 2014, we had one apartment community, Lofton Meadows, classified as held for sale. We have entered into a purchase and sale agreement for this apartment community with an unaffiliated third party and we expect to close on the sale of this apartment community in the second half of 2014. | |||||||||
During the three months ended June 30, 2014, we sold two apartment communities, Manchester Park on May 28, 2014 and Bay Breeze Villas on June 30, 2014, totaling 306 apartment units for a combined sales price of $29.3 million. Our gain on the sale of the apartment communities was $7 million. | |||||||||
The operations for any real estate assets sold from January 1, 2013 through December 31, 2013, have been presented as income from discontinued operations in the accompanying condensed consolidated statements of comprehensive operations. Accordingly, certain reclassifications have been made to prior years to reflect discontinued operations consistent with current year presentation. As previously disclosed in our 2013 Annual Report on Form 10-K, we sold two apartment communities with an aggregate of 700 apartment units for a combined sales price of $71.7 million during 2013. | |||||||||
The following is a summary of income from discontinued operations for the periods presented (in thousands): | |||||||||
For the three | For the six | ||||||||
months ended | months ended | ||||||||
June 30, 2013 | June 30, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Rental income | $ | 1,059 | $ | 2,911 | |||||
Other property revenues | 176 | 441 | |||||||
Total revenues | 1,235 | 3,352 | |||||||
Rental expenses | (440 | ) | (1,234 | ) | |||||
Interest expense, net | (328 | ) | (808 | ) | |||||
Depreciation and amortization expense | (249 | ) | (861 | ) | |||||
Total expenses | (1,017 | ) | (2,903 | ) | |||||
Income before net gain on the sale of property | 218 | 449 | |||||||
Net gain on the sale of property | — | 6,620 | |||||||
Income from discontinued operations | $ | 218 | $ | 7,069 | |||||
Less: Net income from discontinued operations attributable to redeemable non-controlling interests in operating partnership | 108 | 3,501 | |||||||
Net income attributable to common stockholders | $ | 110 | $ | 3,568 | |||||
Investments_in_Unconsolidated_
Investments in Unconsolidated Entities | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||
Investments in Unconsolidated Entities | ' | ||||||||||||||
5. Investments in Unconsolidated Entities | |||||||||||||||
As of June 30, 2014 and December 31, 2013, we held non-controlling interests in the following investments, which are accounted for under the equity method (in thousands, except unit data): | |||||||||||||||
Investment Description | Date | Number | Total | Total | Percentage | ||||||||||
Acquired | of Units | Investment at | Investment at | Ownership | |||||||||||
June 30, | December 31, | at June 30, | |||||||||||||
2014 | 2013 | 2014 | |||||||||||||
Landmark at Waverly Place — Melbourne, FL | November 18, 2013 | 208 | $ | 987 | $ | 1,158 | 20% | ||||||||
The Fountains — Palm Beach Gardens, FL | December 6, 2013 | 542 | 3,527 | 4,998 | 20% | ||||||||||
Timbercreek U.S. Multi-Residential (U.S.) Holding L.P. — 500,000 Class A Units | December 20, 2013 | N/A | 4,928 | 5,000 | 7.60% | ||||||||||
Total investments | $ | 9,442 | $ | 11,156 | |||||||||||
On November 18, 2013, we acquired an interest in the Landmark at Waverly Place property. We own a 20% non-controlling interest and our joint venture partner owns an 80% controlling interest in Landmark at Waverly Place, LLC, the entity that owns the Landmark at Waverly Place property. The difference between the carrying value and underlying equity in the net assets at June 30, 2014 and December 31, 2013 was $471,000 and $645,000, respectively. | |||||||||||||||
On December 6, 2013, we acquired an interest in The Fountains property. We own a 20% non-controlling interest and our joint venture partner owns an 80% controlling interest in Landmark at Garden Square, LLC, the entity that owns The Fountains property. The difference between the carrying value and underlying equity in the net assets at June 30, 2014 and December 31, 2013 was $854,000 and $2 million, respectively. | |||||||||||||||
On December 20, 2013, in furtherance of the terms of the ELRM Transaction, we purchased 500,000 Class A Units in Timbercreek U.S. Multi-Residential (U.S.) Holding L.P., or the Timbercreek Holding L.P., for consideration in the amount of $5 million, thereby becoming a limited partner in the Timbercreek Holding L.P. As of June 30, 2014 and December 31, 2013, we owned approximately 7.6% and 7.5%, respectively, of the limited partnership interests in the Timbercreek Holding L.P. |
Identified_Intangible_Assets_N
Identified Intangible Assets, Net | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Identified Intangible Assets, Net | ' | ||||||||
6. Identified Intangible Assets, Net | |||||||||
Identified intangible assets, net consisted of the following as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
Disposition fee rights(1) | $ | — | $ | 284 | |||||
In-place leases, net of accumulated amortization of $8.2 million and $39.1 million as of June 30, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 3.1 months and 3.6 months as of June 30, 2014 and December 31, 2013, respectively) | 2,797 | 16,662 | |||||||
Trade name and trade marks (indefinite lives) | 200 | 200 | |||||||
Property management contracts, net of accumulated amortization of $3.7 million and $2.2 million as of June 30, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 166.2 months and 165.3 months as of June 30, 2014 and December 31, 2013, respectively) | 17,188 | 18,703 | |||||||
Total identified intangible assets, net | $ | 20,185 | $ | 35,849 | |||||
-1 | On February 6, 2014, we purchased a controlling interest in Landmark at Spring Creek and, therefore, consolidated this apartment community in our condensed consolidated financial statements. Prior to our consolidation, the Landmark at Spring Creek property was owned by unaffiliated third parties and leased by our wholly owned subsidiary, NNN Mission Residential Holdings, LLC, or NNN/MR Holdings. Pursuant to the master lease or other operative agreement between NNN/MR Holdings and the respective third party property owners, our NNN/MR Holdings was entitled to a disposition fee in the event that the leased property was sold. We recognized this as a disposition fee rights intangible of $284,000 for the year ended December 31, 2013. Upon our acquisition of a controlling interest of Landmark at Spring Creek, we waived the disposition fee from the sellers of the controlling interest and, therefore, wrote off the full amount of the disposition fee rights intangible to general, administrative and other expenses in our condensed consolidated statements of comprehensive operations during the first quarter of 2014. | ||||||||
As of June 30, 2014 and December 31, 2013, we had below market lease intangibles, net of $201,000 and $870,000, respectively, which are classified as a liability in security deposits, prepaid rent and other liabilities in our condensed consolidated balance sheets. We amortize our below market lease intangibles on a straight-line basis over the average remaining term of the in-place leases at the time of acquisition as an increase to rental income. | |||||||||
Amortization expense recorded on the identified intangible assets, net for the three months ended June 30, 2014 and 2013 was $8.7 million and $4.7 million, respectively, and for the six months ended June 30, 2014 and 2013 was $26.4 million and $9.3 million, respectively. |
Debt
Debt | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Debt | ' | ||||||||||||
7. Debt | |||||||||||||
Our mortgage loan payables, net, unsecured notes payable to affiliates, our variable rate secured credit facility with Bank of America, N.A. and certain other lenders, or the Credit Facility, and our line of credit as of June 30, 2014 and December 31, 2013, are summarized below (in thousands): | |||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||
Mortgage loan payables — fixed | $ | 755,843 | $ | 652,345 | |||||||||
Mortgage loan payables — variable | 252,925 | 175,120 | |||||||||||
Total secured fixed and variable rate debt | 1,008,768 | 827,465 | |||||||||||
Premium, net | 9,901 | 10,969 | |||||||||||
Total mortgage loan payables, net | 1,018,669 | 838,434 | |||||||||||
Credit Facility | 160,688 | 145,200 | |||||||||||
Line of credit | 3,902 | — | |||||||||||
Total secured fixed and variable rate debt, net | $ | 1,183,259 | $ | 983,634 | |||||||||
Unsecured notes payable to affiliates | $ | 5,784 | $ | 5,784 | |||||||||
Scheduled payments and maturities of mortgage loan payables, net, unsecured notes payable to affiliates, the Credit Facility and our line of credit at June 30, 2014 were as follows (in thousands): | |||||||||||||
Year | Secured notes | Secured notes | Unsecured notes | ||||||||||
payments(1) | maturities | maturities | |||||||||||
2014(2) | $ | 7,755 | $ | 7,639 | $ | — | |||||||
2015(3) | 12,994 | 331,089 | 500 | ||||||||||
2016 | 11,485 | 223,117 | — | ||||||||||
2017 | 9,872 | 99,726 | — | ||||||||||
2018 | 8,384 | 105,210 | 5,284 | ||||||||||
Thereafter | 42,340 | 313,747 | — | ||||||||||
$ | 92,830 | $ | 1,080,528 | $ | 5,784 | ||||||||
-1 | Secured note payments are comprised of the principal pay downs for mortgage loan payables, our line of credit, and the Credit Facility. | ||||||||||||
-2 | Included is maturing debt in the fourth quarter of 2014 of $7.7 million. We plan to investigate opportunities to extend, refinance or raise funds to repay this instrument prior to its maturity. | ||||||||||||
-3 | Included is maturing debt in the first and second quarter of 2015 of $187.4 million and $67.2 million, respectively, which includes the Credit Facility in the amount of $159.2 million. The Credit Facility is due on March 7, 2015, and the maturity date may be extended to March 7, 2016 if certain conditions are satisfied, which would have to be assessed at that time. We plan to investigate opportunities to extend, refinance or raise funds to repay each of these instruments prior to their respective maturities. | ||||||||||||
Mortgage Loan Payables, Net | |||||||||||||
Mortgage loan payables, net were $1.02 billion ($1 billion, excluding premium) and $838.4 million ($827.5 million, excluding premium) as of June 30, 2014 and December 31, 2013, respectively. As of June 30, 2014, we had 55 fixed rate and 12 variable rate mortgage loans with effective interest rates ranging from 2.16% to 6.58% per annum and a weighted average effective interest rate of 4.61% per annum. As of June 30, 2014, we had $765.7 million ($755.8 million, excluding premium) of fixed rate debt, or 75.2% of mortgage loan payables, net at a weighted average interest rate of 5.25% per annum and $252.9 million of variable rate debt, or 24.8% of mortgage loan payables, net at a weighted average effective interest rate of 2.70% per annum. As of December 31, 2013, we had 47 fixed rate and ten variable rate mortgage loans with effective interest rates ranging from 2.37% to 6.58% per annum, and a weighted average effective interest rate of 4.70% per annum. As of December 31, 2013, we had $663.3 million ($652.3 million, excluding market to market) of fixed rate debt, or 79.1% of mortgage loan payables, net at a weighted average interest rate of 5.18% per annum and $175.1 million of variable rate debt, or 20.9% of mortgage loan payables, net at a weighted average effective interest rate of 2.92% per annum. | |||||||||||||
We are required by the terms of certain loan documents to meet certain financial covenants, such as minimum net worth and liquidity amounts, and comply with certain financial reporting requirements. As of June 30, 2014 and December 31, 2013, we were in compliance with all such requirements. The majority of the mortgage loan payables may be prepaid in whole but not in part, subject to prepayment premiums and certain tax protection agreements that we are a party to. As of June 30, 2014, 20 of our mortgage loan payables had monthly interest-only payments, and 47 of our mortgage loan payables had monthly principal and interest payments. | |||||||||||||
Unsecured Notes Payable to Affiliates | |||||||||||||
On March 14, 2013, as part of the consideration for the ELRM Transaction, we entered into an unsecured note payable to Elco Landmark Residential Holdings II, or Holdings II, an affiliate of ELRH, in the principal amount of $10 million. On December 20, 2013, we repaid $5 million of the outstanding principal amount on the note by issuing to Holdings II 613,497 shares of our restricted common stock. Between May 10, 2013 and September 23, 2013, as part of the earnout consideration in connection with the ELRM Transaction, we also issued to Holdings II unsecured promissory notes in the aggregate principal amount of $284,000. These unsecured notes payable to affiliates mature on the earliest of (i) the fifth anniversary from the applicable date of issuance or (ii) the date of our company’s initial public offering on a national securities exchange. Simple interest is payable monthly or can be accrued until maturity at an annual rate of 3.00% at our option. | |||||||||||||
As of June 30, 2014, the outstanding principal amount under the unsecured note payable to Legacy Galleria, LLC, or the Legacy Unsecured Note, was $500,000. The Legacy Unsecured Note was issued as part of the purchase of the Landmark at Magnolia Glen property on October 19, 2012. The Legacy Unsecured Note matures on August 3, 2015. Interest is payable monthly at an annual rate based on a benchmark index from the limited partnership unit distributions dividend rate or 3.68%. On July 31, 2013, Legacy Galleria, LLC became our affiliate in connection with the joint venture transaction with Legacy at Stafford Landing, LLC, our joint venture partner. | |||||||||||||
Credit Facility | |||||||||||||
The Credit Facility is in the aggregate maximum principal amount of $130 million and, subject to certain terms and conditions, can be increased by up to an additional $50 million upon approval from the lender and holders of our 8.75% Series D Cumulative Non-Convertible Preferred Stock, par value $0.01 per share, or our Series D Preferred Stock, and our 9.25% Series E Cumulative Non-Convertible Preferred Stock, par value $0.01 per share, or our Series E Preferred Stock. The amount available under the Credit Facility is based on the lesser of the following: (i) the aggregate commitments of all lenders and (ii) a percentage of the appraised value for all collateral properties. As of June 30, 2014, we had $160.7 million outstanding under the Credit Facility with $19.3 million available to be drawn on the incremental facility and 13 of our properties pledged as collateral. | |||||||||||||
The Credit Facility will mature on March 7, 2015, subject to an extension of the maturity date to March 7, 2016 if certain conditions are satisfied, which would have to be assessed at that time. Pursuant to the terms of the credit agreement governing the terms of the Credit Facility, we and certain of our indirect subsidiaries guaranteed all of the obligations of our operating partnership and each other guarantor under the credit agreement and the related loan documents. From time to time, our operating partnership may cause additional subsidiaries to become guarantors under the credit agreement. | |||||||||||||
All borrowings under the Credit Facility bear interest at an annual rate equal to, at our option, (i) the highest of (A) the federal funds rate, plus one-half of 1% and a margin that fluctuates based on our debt yield, (B) the rate of interest as publicly announced from time to time by Bank of America, N.A. as its prime rate, plus a margin that fluctuates based on our debt yield or (C) the Eurodollar Rate (as defined in the credit agreement) for a one-month interest period plus 1% and a margin that fluctuates based upon our debt yield or (ii) the Eurodollar Rate (as defined in the credit agreement) plus a margin that fluctuates based upon our debt yield. As of June 30, 2014, our current annual interest rate was 2.90% on principal outstanding of $160.7 million, which represents the Eurodollar Rate, based on a one-month interest period plus a margin of 2.75%. We are required by the terms of the Credit Facility to meet certain financial covenants, such as minimum net worth and liquidity amounts, and comply with certain financial reporting requirements. As of June 30, 2014, we were in compliance with all such requirements. | |||||||||||||
Line of Credit | |||||||||||||
On January 22, 2014, we entered into an agreement with Bank Hapoalim, as lender, for a revolving line of credit in the aggregate principal amount of up to $10 million to be used for our working capital and general corporate purposes. Our revolving line of credit will mature on January 22, 2015, subject to an extension of the maturity date to January 22, 2016 if certain conditions are satisfied, which would have to be assessed at that time. We have pledged $1.5 million in cash and equity interest in certain of our subsidiaries as collateral. As of June 30, 2014, we had $3.9 million outstanding under our revolving line of credit with $6.1 million available to be drawn. Our revolving line of credit bears an annual interest rate equal to the Eurodollar Rate plus a 3.00% margin. As of June 30, 2014, our current annual interest rate was 3.15% on principal outstanding of $3.9 million. | |||||||||||||
Deferred Financing Cost, Net | |||||||||||||
As of June 30, 2014 and December 31, 2013, we had $13.8 million and $14.5 million, respectively, in deferred financing costs, net of accumulated amortization. Accumulated amortization was $7.7 million and $4.4 million as of June 30, 2014 and December 31, 2013, respectively. | |||||||||||||
Loss on Debt Extinguishment | |||||||||||||
The initial Credit Facility proceeds were used, in part, to refinance existing mortgage loan payables during the quarter ended March 31, 2013. Certain of the refinanced mortgage loan payables were subject to prepayment penalties and write off of unamortized deferred financing costs that totaled $684,000 during the quarter ended March 31, 2013. |
Preferred_Stock_and_Warrants_t
Preferred Stock and Warrants to Purchase Common Stock | 6 Months Ended |
Jun. 30, 2014 | |
Text Block [Abstract] | ' |
Preferred Stock and Warrants to Purchase Common Stock | ' |
8. Preferred Stock and Warrants to Purchase Common Stock | |
Series D Preferred Stock | |
As of June 30, 2014, we had issued an aggregate of 20,976,300 shares of our Series D Preferred Stock to iStar Apartment Holdings LLC, or iStar, and BREDS II Q Landmark LLC, or BREDS, at a price of $10.00 per share. Holders of our Series D Preferred Stock are entitled to cumulative cash dividends of 14.47% per annum, compounded monthly. A portion of the cumulative cash dividend equal to 8.75% per annum compounded monthly, or the Series D Current Dividend, is payable in cash on the 15th day of each month while the remaining amount is accrued and must be paid prior to the redemption of the Series D Preferred Stock. We may, however, elect to pay up to the full amount of accrued dividends on each dividend payment date. Our failure to pay in full, in cash, any Series D Current Dividend on any applicable payment date will constitute an event of default, which could result in the dividend rate being increased to 19.97% per annum, of which 11% per annum compounded monthly will be due as the Series D Current Dividend on the 15th of each month. Series D Preferred Stock dividends are recorded as preferred dividends classified as interest expense in our condensed consolidated statements of comprehensive operations. For the three months ended June 30, 2014 and 2013, we incurred preferred dividends classified as interest expense of $7.9 million and $68,000, respectively, related to the Series D Preferred Stock. For the six months ended June 30, 2014 and 2013, we incurred preferred dividends classified as interest expense of $15.6 million and $68,000, respectively, related to the Series D Preferred Stock. | |
In addition to other preferential rights upon voluntary or involuntary liquidation, dissolution or winding up of our affairs, each holder of Series D Preferred Stock is entitled to receive liquidating distributions in cash in an amount equal to $10.00 per share plus any accrued and unpaid dividends due under the agreement before any distribution or payment is made to the holders of our common stock upon any voluntary or involuntary liquidation, dissolution or winding up of our affairs. Also, pursuant to the protective provisions of the agreements designating the Series D Preferred Stock, or the Series D Preferred Stock agreements, we may not, without the prior written consent of iStar and BREDS, take certain corporate actions, including, but not limited to, amending our charter or bylaws or entering into material contracts. | |
We are required to redeem all outstanding shares of Series D Preferred Stock on June 28, 2016, subject to a one-year extension, for a cash payment to the holders of the Series D Preferred Stock in an amount per share equal to $10.00 plus any accrued and unpaid dividends due pursuant to the Series D Preferred Stock agreements. Based on the requirement of redemption for cash, the Series D Preferred Stock is classified as a liability in our condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013. Failure to redeem the Series D Preferred Stock by any mandatory redemption date (as extended) will trigger increases in dividends due. If an event of default occurs on our mortgage loan payables, the Credit Facility or other indebtedness and is continuing after an applicable cure period, there will then be an event of default on the Series D Preferred Stock. | |
In addition, in the event of a triggering event as described in the Series D Preferred Stock agreements, we are obligated to redeem not less than 50% of the shares of the Series D Preferred Stock then outstanding, at a certain premium. This redemption feature meets the requirements to be accounted for separately as a derivative financial instrument. We measured the fair value of this derivative at the issuance date and recorded a liability for approximately $13.5 million with a corresponding discount recorded to the value of the Series D Preferred Stock. The Series D Preferred Stock discount is accreted to its face value through the redemption date as interest expense. Interest expense recorded for the accretion of the Series D Preferred Stock discount for the three and six months ended June 30, 2014 was $1 million and $2 million, respectively. Interest expense recorded for the accretion of the Series D Preferred Stock discount for the three and six months ended June 30, 2013 was not significant for either period. | |
As of June 30, 2014 and December 31, 2013, the fair value of this derivative was $6.3 million and $11.1 million, respectively. The derivative is recorded at fair value for each reporting period, with changes in fair value being recorded through change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations. For the three and six months ended June 30, 2014, the decrease in fair value was $5.7 million and $4.8 million, respectively. The decrease in fair value was due to changes in assumptions used in the valuation of the derivative, primarily, the anticipated timing of the listing of our common shares on a public exchange. For the three and six months ended June 30, 2013, there was no change in the fair value. The Series D Preferred Stock and the derivative are presented together in the condensed consolidated balance sheets as Series D cumulative non-convertible redeemable preferred stock with derivative in the amount of $206.5 million and $209.3 million as of June 30, 2014 and December 31, 2013, respectively. See Note 13, Fair Value of Derivatives and Financial Instruments, for further discussion of our fair valuation on a recurring basis. | |
Series E Preferred Stock | |
On January 7, 2014, we issued and sold, for cash, an aggregate of 6,800,000 shares of our Series E Preferred Stock, a new series of our preferred stock, to iStar and BREDS at a price of $10.00 per share, for an aggregate of $68 million. On June 4, 2014, in accordance with the terms of the Series E Preferred Stock agreements (as defined below), we issued and sold, for cash, an aggregate of 600,000 additional shares of our Series E Preferred Stock to iStar and BREDS at a price of $10.00 per share, for an aggregate of $6 million. The proceeds from the sale of the Series E Preferred Stock have been used primarily to acquire and renovate additional apartment communities. As of June 30, 2014, we had issued an aggregate of 7,400,000 shares of Series E Preferred Stock. | |
Holders of our Series E Preferred Stock are entitled to cumulative cash dividends of 14.47% per annum, compounded monthly. A portion of the cumulative cash dividend equal to 9.25% per annum compounded monthly, or the Series E Current Dividend, is payable in cash on the 15thday of each month while the remaining amount is accrued and must be paid prior to the redemption of the Series E Preferred Stock. We may, however, elect to pay up to the full amount of accrued dividends on each dividend payment date. Our failure to pay in full, in cash, any Series E Current Dividend on any applicable payment date will constitute an event of default, which could result in the dividend rate being increased to 19.97% per annum, of which 11% per annum compounded monthly will be due as the Series E Current Dividend on the 15th of each month. Series E Preferred Stock dividends are recorded as preferred dividends classified as interest expense in our condensed consolidated statements of comprehensive operations. For the three and six months ended June 30, 2014, we incurred preferred dividends classified as interest expense of $2.6 million and $4.9 million, respectively, related to the Series E Preferred Stock. We did not record preferred dividends classified as interest expense for the three and six months ended June 30, 2013, as there were no shares of Series E Preferred Stock outstanding for such periods. | |
In addition to other preferential rights upon voluntary or involuntary liquidation, dissolution or winding up of our affairs, each holder of Series E Preferred Stock is entitled to receive liquidating distributions in cash in an amount equal to $10.00 per share plus any accrued and unpaid dividends due under the agreement, before any distribution or payment is made to the holders of our common stock upon any voluntary or involuntary liquidation, dissolution or winding up of our affairs. Also, pursuant to the protective provisions of the agreements designating the Series E Preferred Stock, or the Series E Preferred Stock agreements, we may not, without the prior written consent of iStar and BREDS, take certain corporate actions, including, but not limited to, amending our charter or bylaws or entering into material contracts. | |
We are required to redeem all outstanding shares of Series E Preferred Stock on June 28, 2016, subject to a one-year extension, for a cash payment to the holders of the Series E Preferred Stock in an amount per share equal to $10.00 plus any accrued and unpaid dividends due pursuant to the Series E Preferred Stock agreements. Based on the requirement of redemption for cash, the Series E Preferred Stock is classified as a liability in our condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013. Failure to redeem the Series E Preferred Stock by any mandatory redemption date (as extended) will trigger increases in dividends due under the Series E Preferred Stock agreements. If an event of default occurs on our mortgage loan payables, net, the Credit Facility or other indebtedness and is continuing after an applicable cure period, there will then be an event of default on the Series E Preferred Stock. | |
In addition, in the event of a triggering event as described in the Series E Preferred Stock agreements, we are obligated to redeem not less than 50% of the shares of the Series E Preferred Stock then outstanding, at a certain premium. This redemption feature meets the requirements to be accounted for separately as a derivative financial instrument. We measured the fair value of this derivative at the issuance date and recorded a liability for approximately $6 million with a corresponding discount recorded to the value of the Series E Preferred Stock. The Series E Preferred Stock discount is accreted to its face value through the redemption date as interest expense. Interest expense recorded for the accretion of the Series E Preferred Stock discount for the three and six months ended June 30, 2014 was $535,000 and $1.1 million, respectively. We did not record accretion expense for the three and six months ended June 30, 2013, as there were no shares of Series E Preferred Stock outstanding for such periods. | |
The derivative is recorded at fair value for each reporting period, with changes in fair value being recorded through change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations. As of June 30, 2014, the fair value of this derivative was $4.6 million, and accordingly, the decrease in fair value for the three and six months ended was $2 million and $1.4 million, respectively. The decrease in fair value was due to changes in assumptions used in the valuation of the derivative, primarily, the anticipated timing of the listing of our common shares on a public exchange. The Series E Preferred Stock and the derivative are presented together in our condensed consolidated balance sheets as Series E cumulative non-convertible redeemable preferred stock with derivative in the amount of $73.7 million as of June 30, 2014. See Note 13, Fair Value of Derivatives and Financial Instruments, for further discussion of our fair valuation on a recurring basis. | |
Warrants to Purchase Common Stock | |
In connection with the issuances of our Series A Cumulative Non-Convertible Redeemable Preferred Stock, or our Series A Preferred Stock, and our Series B Cumulative Non-Convertible Redeemable Preferred Stock, or our Series B Preferred Stock, which were redeemed in 2013, we issued warrants to purchase an aggregate of 6,000,000 shares of our common stock at an exercise price per share of common stock equal to: (i) $9.00 if the warrants are being exercised in connection with a “change of control” (as such term is defined in the form of warrant); or (ii) the greater of (A) $9.00 and (B) 80% of the public offering price of our common stock in our first underwritten public offering, in conjunction with which our common stock becomes listed for trading on the New York Stock Exchange, if the warrants are being exercised during the 60-day period following such underwritten public offering. The warrants remained outstanding subsequent to the redemption of the Series A Preferred Stock and the Series B Preferred Stock and will become exercisable at any time and from time to time prior to their expiration following the completion of an underwritten public offering or in connection with a change of control. In general, the August 3, 2012 and February 27, 2013 warrants will immediately expire and cease to be exercisable upon the earliest to occur of: (i) the close of business on the later of August 3, 2015; (ii) the close of business on the date that is 60 days after the completion of the underwritten public offering (or the next succeeding business day); (iii) the consummation of a “Qualified Company Acquisition” (as such term is defined in the form of warrant); and (iv) the cancellation of the warrants by our company, at its option or at the option of the warrant holder, in connection with a change of control (other than a Qualified Company Acquisition). | |
The fair value of the warrants as of June 30, 2014 and December 31, 2013 was $566,000 and $1.8 million, respectively, and is reflected in security deposits, prepaid rent and other liabilities in our condensed consolidated balance sheets. The warrants are recorded at fair value for each reporting period with changes in fair value being recorded in change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations. For the three months ended June 30, 2014 and 2013, we recorded $473,000 and $323,050, respectively, and for the six months ended June 30, 2014 and 2013, we recorded $1.2 million and $361,000, respectively, related to decreases in the fair value of the warrants. See Note 13, Fair Value of Derivatives and Financial Instruments, for further discussion of our fair valuation on a recurring basis. | |
Loss on Preferred Stock Extinguishment | |
As of June 28, 2013, in connection with the redemption of the Series A Preferred Stock and the Series B Preferred Stock, we incurred a $9.5 million loss on preferred stock extinguishment consisting of $6.4 million in prepayment penalties, a write off in the amount of $2.5 million in unamortized loan accretion and deferred financing costs and $600,000 in redemption fees, which are recorded in the condensed consolidated statements of comprehensive operations in loss on debt and preferred stock extinguishment. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
9. Commitments and Contingencies | |
Litigation | |
We are not aware of any material pending legal proceedings other than ordinary routine litigation incidental to our business. | |
Environmental Matters | |
We follow a policy of monitoring our properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at our properties, we are not currently aware of any environmental liability with respect to our properties that would have a material effect on our consolidated financial position, results of operations or cash flows. Further, we are not aware of any material 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. | |
Acquisition Contingent Consideration | |
ELRM Transaction | |
We incurred certain contingent consideration in connection with the ELRM Transaction during the first quarter of 2013. In consideration for the contribution to our operating partnership of ELRH’s economic rights to earn property management fees for managing certain real estate assets, our operating partnership agreed to issue up to $10 million in restricted limited partnership units to ELRH. Additionally, ELRH and certain of its affiliates have the opportunity to earn additional consideration in the form of restricted limited partnership units and a promissory note through a contingent consideration arrangement, which is based on projected fees that we would earn in connection with new property management agreements for properties that may be acquired by ELRH and certain of its affiliates. We recorded an estimated fair value of $6.7 million for this contingent consideration on March 14, 2013, which was recorded in acquisition contingent consideration in our condensed consolidated balance sheets as of March 31, 2013. During the year ended December 31, 2013, this liability was reduced by $2 million for achieving the contingency and by an adjustment to the fair value calculation of $715,000. We issued $1.1 million in restricted limited partnership units and we issued promissory notes in the aggregate principal amount of $284,000 to settle a portion of the achieved contingency. The remaining $568,000 in achieved contingencies is recorded in other payables due to affiliates in our condensed consolidated balance sheets and will be paid 50% in restricted limited partnership units and 50% in promissory notes. As of June 30, 2014 and December 31, 2013, we determined that the fair value of the acquisition contingent consideration was $0 and $4 million, respectively. We recognized $276,000 in achieved contingencies which is recorded in other payables due to affiliates in our condensed consolidated balance sheets and a decrease in fair value of $1.3 million and $3.8 million, respectively, for the three and six months ended June 30, 2014 which is recorded in change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations. We determined that the targeted amount of funds would not be raised by a certain date which resulted in a complete write off of our acquisition contingent consideration during the second quarter of 2014. For the three and six months ended June 30, 2013, we recorded a change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration of $479,000 for each period. See Note 13, Fair Value of Derivatives and Financial Instruments, for further discussion of our fair valuation on a recurring basis. | |
Landmark at Andros Isles | |
On August 3, 2012, we and our operating partnership entered into definitive agreements (the agreements and the transactions thereunder collectively referred to as the Recapitalization Transaction) to acquire a total of 22 properties, which included 21 apartment communities and one parcel of undeveloped land, or the Contributed Properties. In connection with the Recapitalization Transaction, our operating partnership entered into a definitive agreement for the acquisition of a 360-unit multifamily apartment community known as the Andros Isles property, or the Andros Property, in exchange for aggregate consideration valued at approximately $45 million and acquisition contingent consideration not to exceed $4 million. On June 4, 2014, we completed the acquisition of the Andros Property which included consideration of $10.3 million in limited partnership units, $5.2 million in net cash, $29.5 million of assumed mortgage loan payable, and the estimated fair value of acquisition consideration of $2.7 million. The acquisition contingent consideration is based on a calculation of future net operating income (which includes the payment of principal and interest on the mortgage loan payable as defined in the definitive agreements) over the four-year period subsequent to the acquisition, with a total payout not to exceed $4 million. The change in fair value is recorded to change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration on our condensed consolidated statements of comprehensive operations. There was no change in fair value for the three and six months ended June 30, 2014. See Note 13, Fair Value of Derivatives and Financial Instruments, for further discussion of our fair valuation on a recurring basis and Note 14, Business Combinations, for further discussion of our 2014 acquisitions. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
10. Related Party Transactions | |
The transactions listed below cannot be construed to be at arm’s length and the results of our operations may be different than if such transactions were conducted with non-related parties. | |
Lease for Principal Executive Offices | |
In connection with our acquisition of the property management business of ELRM, we, through our operating partnership, entered into a lease agreement with Marlu Associates, Ltd., a Florida limited partnership, as the landlord, for office space located in Jupiter, Florida. Marlu Associates, Ltd. is an affiliated entity with Joseph G. Lubeck, our Executive Chairman. The lease has a term of five years with an aggregate rental of approximately $165,000 over the term of the lease. See Note 14, Business Combinations — ELRM Transaction, for more information on the acquisition of the property management business of ELRM. | |
ELRM and Management Support Services Agreement | |
In connection with the acquisition of the Contributed Properties, our Property Manager entered into a management support services agreement with ELRM who was the property manager of the properties at that time. During the period from January 1, 2013 to March 14, 2013, 32 of the 34 properties we owned had management support services or other accounting services performed by ELRM. Pursuant to the management support services agreement, ELRM was entitled to receive a fee equal to 3.00% of the gross receipts for each Contributed Property. ELRM also received a fee equal to 2.00% of the gross receipts for our other properties. The management support services agreement and the additional accounting services provided by ELRM were terminated in connection with the ELRM Transaction on March 14, 2013; accordingly, we no longer pay the management support services and accounting fees to ELRM. For the three and six months ended June 30, 2013, we incurred $0 and $418,000, respectively, in management support services fees and accounting services performed by ELRM, which are included in general, administrative and other expense in our condensed consolidated statements of comprehensive operations. We incurred no such expense for the three and six months ended June 30, 2014. Messrs. Lubeck and Salkind, two of our directors, directly or indirectly, owned a pecuniary interest in ELRM. Although at the time the management support services agreement was negotiated Messrs. Lubeck and Salkind were not related parties, we consider these arrangements to be a related party transaction due to the length of time these services were provided to us by ELRM and the consideration we paid ELRM for such services. | |
ELRH also reimburses us for between 25% and 100% of the salaries we pay to certain of our employees. Amounts reimbursed represent management’s estimate of these employees’ time spent working on behalf of ELRH. For the three and six months ended June 30, 2014, we were reimbursed $218,000 and $549,000, respectively, by ELRH. For the three and six months ended June 30, 2013, we were reimbursed $163,050 for each period by ELRH. | |
Timbercreek U.S. Multi-Residential Opportunity Fund #1 | |
As part of the ELRM Transaction, we acquired the rights to earn property management fees and back-end participation for managing certain real estate assets acquired by Timbercreek U.S. Multi-Residential Opportunity Fund # 1, or the Timbercreek Fund, an Ontario, Canada limited partnership. Also, during the period from the closing date of the ELRM Transaction and ending on the date that is 18 months thereafter, we had a commitment to purchase 500,000 Class A Units in the Timbercreek Holding L.P. in exchange for consideration of $5 million. On December 20, 2013, we purchased the 500,000 Class A Units in the Timbercreek Holding L.P. for consideration in the amount of $5 million, thereby becoming a limited partner is the Timbercreek Holding L.P. The Timbercreek Holding L.P. is a limited partner in the Timbercreek Fund. Mr. Lubeck and Ms. Elizabeth Truong, our Chief Investment Officer, serve on the Investment Committee of the Timbercreek Fund. | |
Limited Partnership Units Issued in Connection with Acquisitions | |
As of June 30, 2014, we had issued 34,638,356 limited partnership units with an aggregate value of $282.3 million including 1,263,725 limited partnership units with an aggregate value of $10.3 million issued in connection with the Andros Property acquisition described above. Such limited partnership units were issued, directly or indirectly, to Messrs. Lubeck, Salkind and Kobel, three of our directors, and Mr. Miller, our Chief Accounting Officer and Chief Operating Officer, in connection with the acquisition of apartment communities and the ELRM Transaction. | |
Other | |
As of June 30, 2014 and December 31, 2013, we had $2.2 million and $2.5 million outstanding, respectively, which were recorded in other receivables due from affiliates in our condensed consolidated balance sheets. The amounts outstanding represented amounts due from our managed properties owned by affiliated third parties as part of the normal operations of our Property Manager and due to ELRH in connection with the ELRM Transaction. | |
As of June 30, 2014 and December 31, 2013, we had $1.3 million and $915,000, respectively, which were recorded in other payables due to affiliates in our condensed consolidated balance sheets. The amounts outstanding represented amounts due to our managed properties owned by affiliated third parties as part of the normal operations of our Property Manager and due to ELRH in connection with the ELRM Transaction. |
Equity
Equity | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Equity | ' | ||||||||
11. Equity | |||||||||
Preferred Stock | |||||||||
Our charter authorizes us to issue 50,000,000 shares of our preferred stock, par value $0.01 per share. As of June 30, 2014 and December 31, 2013, we had issued and outstanding 20,976,300 shares of Series D Preferred Stock. Additionally, as of June 30, 2014, we had issued and outstanding 7,400,000 shares of Series E Preferred Stock. See Note 8, Preferred Stock and Warrants to Purchase Common Stock. | |||||||||
Common Stock | |||||||||
Our charter authorizes us to issue up to 300,000,000 shares of our common stock. As of June 30, 2014 and December 31, 2013, we had 25,516,036 and 25,182,988 shares, respectively, of our common stock issued and outstanding. | |||||||||
The following are the equity transactions with respect to our common stock during the six months ended June 30, 2014: | |||||||||
• | 133,810 shares of common stock were issued pursuant to the DRIP (as defined below). | ||||||||
• | 200,038 shares of restricted common stock were issued to certain of our independent directors pursuant to the terms and conditions of the 2006 Award Plan (as defined below). | ||||||||
• | 800 shares of restricted common stock were forfeited by an independent director upon his resignation from our board of directors. | ||||||||
Our distributions are subject to approval by our board of directors. Our common stock distributions as of June 30, 2014 and December 31, 2013 totaled $0.30 per share for each period then ended. | |||||||||
We report earnings (loss) per share pursuant to ASC Topic 260, Earnings Per Share. Basic earnings (loss) per share attributable for all periods presented are computed by dividing net income (loss) attributable to common shares for the period by the weighted average number of common shares outstanding during the period using the two class method. Diluted earnings (loss) per share is calculated by dividing the net income (loss) attributable to common shares for the period by the weighted average number of common and dilutive securities outstanding during the period. Nonvested shares of our restricted common stock give rise to potentially dilutive shares of our common stock. As of June 30, 2014 and December 31, 2013, there were 192,916 shares and 7,400 shares, respectively, of nonvested shares of our restricted common stock outstanding, but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during these periods. The long-term incentive plan units, or LTIP Units, could potentially dilute the basis earnings per share in future periods but were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented. Further, the warrants were not included in the computation of diluted earnings per share and also would have been anti-dilutive for the periods presented. | |||||||||
Distribution Reinvestment Plan | |||||||||
In the first quarter of 2011, our board of directors adopted the Second Amended and Restated Distribution Reinvestment Plan, or the DRIP. The DRIP provides a way to increase stockholders’ investment in the Company by reinvesting distributions to purchase additional shares of our common stock. The DRIP offers up to 10,000,000 shares of our common stock for reinvestment. Distributions are reinvested in shares of our common stock at a price equal to the most recently disclosed per share value, as determined by our board of directors. Our board of directors has not determined that any fair value of a share of our common stock other than $8.15 per share is appropriate. Accordingly, $8.15 is the per share price used for the purchases of shares pursuant to the DRIP until such time as our board of directors provides a new estimate of share value. For the six months ended June 30, 2014, $1.1 million in distributions were reinvested and 133,810 shares of our common stock were issued pursuant to the DRIP. | |||||||||
Limited Partnership Units | |||||||||
As of June 30, 2014 and December 31, 2013, we had issued 41,429,634 and 33,450,957 limited partnership units to our non-controlling interest holders, respectively, for a total consideration of $337.7 million and $272.6 million, respectively, in relation to the acquisition of properties and the ELRM Transaction. In connection with the ELRM Transaction, ELRH and certain of its affiliates can receive up to an additional $1.3 million in limited partnership units based upon the preliminary valuation of these units. The limited partnership units issued as part of the ELRM Transaction are restricted and will vest in equal amounts over a period of five years, subject to certain accelerated vesting and cancellation provisions. See Note 12, Non-Controlling Interests, for additional information on our limited partnership units. | |||||||||
LTIP Units | |||||||||
As of June 30, 2014 and December 31, 2013, we had issued a total 818,602 and 720,322 LTIP Units under the 2012 Award Plan (as defined below), respectively, to certain of our executive officers as incentive compensation. On March 14, 2013, we issued 256,042 restricted LTIP Units in connection with the ELRM Transaction, which vest in equal amounts over a period of three years, subject to certain cancellation provisions. | |||||||||
2006 Incentive Award Plan | |||||||||
We adopted our 2006 Incentive Award Plan, or the 2006 Award Plan, pursuant to which our board of directors or a committee of our independent directors may make grants of options, restricted common stock awards, stock purchase rights, stock appreciation rights or other awards to our independent directors, employees and consultants. The maximum number of shares of our common stock that may be issued pursuant to our 2006 Award Plan, together with the number of shares issued under the 2012 Award Plan (as defined below), is 2,000,000, subject to adjustment under specified circumstances. | |||||||||
Shares of restricted common stock may not be sold, transferred, exchanged, assigned, pledged, hypothecated or otherwise encumbered. Such restrictions expire upon vesting. Shares of restricted common stock have full voting rights and rights to dividends. For the three months ended June 30, 2014 and 2013, we recognized compensation expense of $154,000 and $13,000, respectively, and for the six months ended June 30, 2014 and 2013, we recognized compensation expense of $168,000 and $18,000, respectively, related to the restricted common stock grants ultimately expected to vest, which has been reduced for estimated forfeitures. ASC Topic 718, Compensation — Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Stock compensation expense is included in general, administrative and other in our accompanying condensed consolidated statements of comprehensive operations. | |||||||||
As of June 30, 2014 and December 31, 2013, there was $1.5 million and $54,000, respectively, of total unrecognized compensation expense, net of estimated forfeitures, related to the nonvested shares of our restricted common stock. As of June 30, 2014, this expense was expected to be recognized over a remaining weighted average period of 3.82 years. | |||||||||
As of June 30, 2014 and December 31, 2013, the fair value of the nonvested shares of our restricted common stock was $1.6 million and $60,310, respectively, based upon an $8.15 weighted average per share price at grant date. A summary of the status of the nonvested shares of our restricted common stock as of June 30, 2014 and December 31, 2013, and the changes for the six months ended June 30, 2014, is presented below: | |||||||||
Restricted | Weighted | ||||||||
Common | Average Grant | ||||||||
Stock | Date Fair | ||||||||
Value | |||||||||
Balance — December 31, 2013 | 7,400 | $ | 9 | ||||||
Granted | 200,038 | $ | 8.15 | ||||||
Vested | (13,722 | ) | $ | 8.15 | |||||
Forfeited | (800 | ) | $ | 8.15 | |||||
Balance — June 30, 2014 | 192,916 | $ | 8.18 | ||||||
2012 Other Equity-Based Award Plan | |||||||||
During 2012, our board of directors adopted our 2012 Other Equity-Based Award Plan, or the 2012 Award Plan, which is intended to assist our company and its affiliates in recruiting and retaining individuals and other service providers with ability and initiative by enabling such persons or entities to participate in the future success of the Company and its affiliates and to associate their interests with those of the Company and its stockholders. The 2012 Award Plan is also intended to complement the purposes and objectives of the 2006 Award Plan through the grant of “other equity-based awards” under the 2012 Award Plan. Pursuant to the 2012 Award Plan, our board of directors or the compensation committee of our board of directors may make grants of other equity-based awards to our independent directors, employees and certain consultants. Other equity-based awards are payable in cash, shares of common stock or other equity, or a combination thereof, and the terms and conditions of such other equity-based awards are determined by our board of directors or the compensation committee of our board of directors, as applicable. The maximum aggregate number of shares of our common stock that may be issued under the 2012 Award Plan, together with the number of shares issued under the 2006 Award Plan, is 2,000,000 shares of common stock. |
NonControlling_Interests
Non-Controlling Interests | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Noncontrolling Interest [Abstract] | ' | |||
Non-Controlling Interests | ' | |||
12. Non-Controlling Interests | ||||
Redeemable Non-Controlling Interests in Operating Partnership | ||||
As of June 30, 2014 and December 31, 2013, we had issued 41,429,634 and 33,450,957 limited partnership units, respectively, for a total consideration of $337.7 million and $272.6 million, respectively, in relation to the acquisition of apartment communities and the ELRM Transaction. If the limited partnership units were to be redeemed, the total redemption value would have been $337.7 million as of June 30, 2014. The following are the equity transactions for our limited partnership units during the six months ended June 30, 2014: | ||||
• | 25,648 limited partnership units were issued pursuant to reinvestment of the distributions. | |||
• | 1,252,245 limited partnership units were issued as partial consideration for the acquisition of Landmark at Chesterfield, Landmark at Coventry Pointe, Landmark at Grand Oasis, and Landmark at Rosewood. | |||
• | 3,425,900 limited partnership units were issued as partial consideration for the acquisition of Lake Village East, Lake Village North, Lake Village West, and Landmark at Laurel Heights. | |||
• | 894,183 limited partnership units were issued as partial consideration for the acquisition of Landmark at Bella Vista. | |||
• | 1,116,976 limited partnership units were issued as partial consideration for the acquisition of Landmark at Maple Glen. | |||
• | 1,263,725 limited partnership units were issued as partial consideration for the acquisition of Landmark at Andros Isles. | |||
During the six months ended June 30, 2014, $209,000 in distributions were reinvested and 25,648 limited partnership units were issued. | ||||
As of June 30, 2014 and December 31, 2013, we owned approximately 37.7% and 42.4% of the general partnership interest in our operating partnership, respectively, and the limited partners owned approximately 62.3% and 57.6%, respectively, of the limited partnership interests in our operating partnership. | ||||
Non-Controlling Interest Partners | ||||
Non-controlling interest partners represents interests of our joint venture partners in seven consolidated apartment communities as of June 30, 2014 and is presented as part of equity in our condensed consolidated balance sheets. We consolidate an entity in which we own less than 100% but for which we hold the controlling financial interest. In addition, we consolidate any joint venture or partnership in which we are the general partner or managing member and the third party does not have the ability to participate substantially in the decision-making process or remove us as general partner or managing member, as the case may be, without cause. As of June 30, 2014 and December 31, 2013, the amount of non-controlling interest of our partners was $27.7 million and $3.9 million, respectively. During the three and six months ended June 30, 2014, net (income)/loss attributable to non-controlling interest partner was $(112,000) and $1.4 million, respectively. We did not have net income or loss attributable to non-controlling interest partners for the three and six months ended June 30, 2013. |
Fair_Value_of_Derivatives_and_
Fair Value of Derivatives and Financial Instruments | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value of Derivatives and Financial Instruments | ' | ||||||||||||||||||||||||
13. Fair Value of Derivatives and Financial Instruments | |||||||||||||||||||||||||
ASC Topic 825, Financial Instruments, requires disclosure of the fair value of financial instruments, whether or not recognized on the face of the balance sheet. Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures. | |||||||||||||||||||||||||
Interest Rate Caps and Interest Rate Swaps | |||||||||||||||||||||||||
We manage our interest rate risk through the use of derivative financial instruments. We do not enter into derivative transactions for trading or other speculative purposes. The interest rate derivatives that we primarily use are interest rate caps and interest rate swaps. We enter into these interest rate derivative transactions to reduce our exposure to fluctuations in interest rates on future debt issuances. We assess the effectiveness of qualifying cash flow hedges both at inception and on an on-going basis. The fair values of the hedging derivatives and non-designated derivatives that are in an asset position are recorded in other assets, net on the accompanying condensed consolidated balance sheets. The fair value of derivatives that are in a liability position are included in security deposits, prepaid rent and other liabilities on the accompanying condensed consolidated balance sheets. | |||||||||||||||||||||||||
As of June 30, 2014, we had entered into five interest rate cap agreements. An interest rate cap involves the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an upfront premium. The fair value of our interest rate cap is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rate rises above the strike rate of the cap using a Level 2 fair value calculation. These derivatives are not intended by us to be a hedge instrument and the change in fair value is recorded to interest expense in the condensed consolidated statements of comprehensive operations. For the three months ended June 30, 2014 and 2013, the change in fair value resulted in an increase to interest expense of $208,000 and $28,000, respectively, and for the six months ended June 30, 2014 and 2013, the change in fair value resulted in an increase to interest expense of $305,000 and $55,000, respectively. | |||||||||||||||||||||||||
As of June 30, 2014, we had entered into three interest rate swap agreements pursuant to which we have agreed to pay a fixed rate of interest in exchange for a floating rate of interest at a future date and have designated two of these as hedging derivatives and one as a non-designated hedge. The fair value of our interest rate swap agreements is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rate rises above or below the strike rate of the future floating rate and is a Level 2 fair value calculation. | |||||||||||||||||||||||||
For the two interest rate swaps that we have determined qualify as effective cash flow hedges, we have recorded the effective portion of cumulative changes in the fair value of the hedging derivatives in accumulated other comprehensive operations in the condensed consolidated statements of equity. Amounts recorded in accumulated other comprehensive operations will be reclassified into earnings in the periods in which earnings are affected by the hedged cash flow. To adjust the hedging derivatives in qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, we recorded $408,000 and $686,000 in other comprehensive loss for the three and six months ended June 30, 2014, respectively. To adjust the hedging derivatives in qualifying cash flow hedges to their fair value and recognize the impact of hedge accounting, we recorded $310,000 in other comprehensive income for each of the three and six months ended June 30, 2013. The one interest rate swap is not intended by us to be a hedge instrument and the change in fair value is recorded to interest expense in the condensed consolidated statements of comprehensive operations. For each of the three and six months ended June 30, 2014, the change in fair value was $370,000. For the three and six months ended June 30, 2013, we did not record a change in fair value. | |||||||||||||||||||||||||
The following table summarizes our derivative financial instruments at June 30, 2014 and December 31, 2013 (in thousands, except interest rates): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Non-designated Hedges | Cash Flow | Non- | Cash Flow | ||||||||||||||||||||||
Hedges | designated | Hedges | |||||||||||||||||||||||
Hedges | |||||||||||||||||||||||||
Interest | Interest | Interest | Interest | Interest | |||||||||||||||||||||
Rate Caps | Rate Swaps | Rate Swaps | Rate Caps | Rate Swaps | |||||||||||||||||||||
Notional balance | $ | 102,065 | $ | 58,800 | $ | 32,100 | $ | 102,065 | $ | 32,100 | |||||||||||||||
Weighted average interest rate(1) | 2.81 | % | 2.17 | % | 2.38 | % | 2.81 | % | 2.38 | % | |||||||||||||||
Weighted average capped interest rate | 3.68 | % | N/A | N/A | 3.68 | % | N/A | ||||||||||||||||||
Earliest maturity date | 15-Mar | 18-Sep | 20-Jul | 15-Mar | 20-Jul | ||||||||||||||||||||
Latest maturity date | 18-Jul | 18-Sep | 20-Aug | 18-Jul | 20-Aug | ||||||||||||||||||||
Estimated fair value, asset/(liability), net | $ | 173 | $ | (1,726 | ) | $ | (1,036 | ) | $ | 478 | $ | (350 | ) | ||||||||||||
-1 | For the interest rate caps, this represents the weighted average interest rate on the debt. | ||||||||||||||||||||||||
Financial Instruments Measured/Disclosed at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
The table below presents our liabilities measured/disclosed at fair value on a recurring basis as of June 30, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total Fair Value | Carrying | |||||||||||||||||||||
in Active | Other | Unobservable | Estimate at | Value at | |||||||||||||||||||||
Markets for | Observable | Inputs | June 30, | June 30, | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | 2014 | 2014 | |||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Mortgage loan payables, net(1) | $ | — | $ | 1,062,380 | $ | — | $ | 1,062,380 | $ | 1,018,669 | |||||||||||||||
Unsecured notes payable to affiliates(2) | — | — | 5,784 | 5,784 | 5,784 | ||||||||||||||||||||
Credit Facility(1) | — | 160,728 | — | 160,728 | 160,688 | ||||||||||||||||||||
Line of credit(1) | — | 3,914 | — | 3,914 | 3,902 | ||||||||||||||||||||
Acquisition contingent consideration — ELRM Transaction(3) | — | — | — | — | — | ||||||||||||||||||||
Acquisition contingent consideration — Andros Isles(4) | — | — | 2,700 | 2,700 | 2,700 | ||||||||||||||||||||
Warrants(5) | — | — | 566 | 566 | 566 | ||||||||||||||||||||
Series D preferred stock derivative(6) | — | — | 6,300 | 6,300 | 6,300 | ||||||||||||||||||||
Series E preferred stock derivative(7) | — | — | 4,600 | 4,600 | 4,600 | ||||||||||||||||||||
Liabilities at fair value | $ | — | $ | 1,227,022 | $ | 19,950 | $ | 1,246,972 | $ | 1,203,209 | |||||||||||||||
-1 | The fair value is estimated using borrowing rates available to us for debt instruments with similar terms and maturities. | ||||||||||||||||||||||||
-2 | The fair value is not determinable due to the related party nature of the unsecured notes payable to affiliates, other than the Legacy Unsecured Note. The fair value of the Legacy Unsecured Note is based on a benchmark index from the limited partnership unit distributions dividend rate; therefore, we consider the fair value of the Legacy Unsecured Note to be equal to the carrying value. | ||||||||||||||||||||||||
-3 | The fair value is based on management’s inputs and assumptions relating primarily to the expected cash flows, and the timing of such cash flows, from the economic rights we acquired in connection with the ELRM Transaction that enables us to earn property management fees and subordinated participation distributions with respect to certain real estate assets. During the quarter ended June 30, 2014, management determined that the targeted cash flows would not be raised by a certain date which resulted in a complete write off of the acquisition contingent consideration. | ||||||||||||||||||||||||
-4 | The fair value is based on management’s inputs and assumptions related primarily to certain net operating income over a four-year period for Landmark at Andros Isles. | ||||||||||||||||||||||||
-5 | The fair value of the warrants is estimated using the Monte-Carlo Simulation. | ||||||||||||||||||||||||
-6 | The fair value of the Series D Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series D Preferred Stock outstanding as of the date of a triggering event as described in the Series D Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series D Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
-7 | The fair value of the Series E Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series E Preferred Stock outstanding as of the date of a triggering event as described in the Series E Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series E Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
The table below presents our liabilities measured/disclosed at fair value on a recurring basis as of December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total Fair Value | Carrying | |||||||||||||||||||||
in Active | Other | Unobservable | Estimate at | Value at | |||||||||||||||||||||
Markets for | Observable | Inputs | December 31, | December 31, | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | 2013 | 2013 | |||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Mortgage loan payables, net(1) | $ | — | $ | 858,658 | $ | — | $ | 858,658 | $ | 838,434 | |||||||||||||||
Unsecured notes payable to affiliates(2) | — | — | 5,784 | 5,784 | 5,784 | ||||||||||||||||||||
Credit Facility(1) | — | 145,247 | — | 145,247 | 145,200 | ||||||||||||||||||||
Acquisition contingent consideration(3) | — | — | 4,030 | 4,030 | 4,030 | ||||||||||||||||||||
Warrants(4) | — | — | 1,789 | 1,789 | 1,789 | ||||||||||||||||||||
Series D preferred stock derivative(5) | — | — | 11,100 | 11,100 | 11,100 | ||||||||||||||||||||
Liabilities at fair value | $ | — | $ | 1,003,905 | $ | 22,703 | $ | 1,026,608 | $ | 1,006,337 | |||||||||||||||
-1 | The fair value is estimated using borrowing rates available to us for debt instruments with similar terms and maturities. | ||||||||||||||||||||||||
-2 | The fair value is not determinable due to the related party nature of the unsecured notes payable to affiliates, other than the Legacy Unsecured Note. The fair value of the Legacy Unsecured Note is based on a benchmark index from the limited partnership unit distributions dividend rate; therefore, we consider the fair value of the Legacy Unsecured Note to be equal to the carrying value. | ||||||||||||||||||||||||
-3 | The fair value is based on management’s inputs and assumptions relating primarily to the expected cash flows, and the timing of such cash flows, from the economic rights we acquired in connection with the ELRM Transaction that enables us to earn property management fees and subordinated participation distributions with respect to certain real estate assets. | ||||||||||||||||||||||||
-4 | The fair value of the warrants is estimated using the Monte-Carlo Simulation. | ||||||||||||||||||||||||
-5 | The fair value of the Series D Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series D Preferred Stock outstanding as of the date of a triggering event as described in the Series D Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series D Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
The table below provides a reconciliation of the fair values of acquisition contingent consideration, warrant liability, Series D Preferred Stock derivative and Series E Preferred Stock derivative measured on a recurring basis for which the Company has designated as Level 3 (in thousands): | |||||||||||||||||||||||||
Acquisition | Acquisition | Warrants | Series D | Series E | Total | ||||||||||||||||||||
Contingent | Contingent | Preferred | Preferred | ||||||||||||||||||||||
Consideration – | Consideration – | Stock | Stock | ||||||||||||||||||||||
ELRM | Andros Isles | Derivative | Derivative | ||||||||||||||||||||||
Transaction | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 4,030 | $ | — | $ | 1,789 | $ | 11,100 | $ | — | $ | 16,919 | |||||||||||||
Additions | — | 2,700 | — | — | 6,000 | 8,700 | |||||||||||||||||||
Change due to liability realized | (276 | ) | — | — | — | — | (276 | ) | |||||||||||||||||
Changes in fair value(1) | (3,754 | ) | — | (1,223 | ) | (4,800 | ) | (1,400 | ) | (11,777 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | — | $ | 2,700 | $ | 566 | $ | 6,300 | $ | 4,600 | $ | 14,166 | |||||||||||||
-1 | Reflected in change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2014. | ||||||||||||||||||||||||
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the six months ended June 30, 2014. |
Business_Combinations
Business Combinations | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Combinations | ' | ||||||||
14. Business Combinations | |||||||||
2014 Property Acquisitions | |||||||||
For the six months ended June 30, 2014, we completed the acquisition of 13 consolidated apartment communities, including six properties held through consolidated joint ventures, adding a total of 4,757 apartment units to our property portfolio. The aggregate purchase price was approximately $367.9 million, plus closing costs and acquisition fees of $2 million, which are included in acquisition-related expense, net in our accompanying condensed consolidated statements of comprehensive operations. During the three months ended June 30, 2014, we recorded the correction of an immaterial error related to the quarter ended March 31, 2014 of $1.6 million and the reimbursement of $200,000 in previously recorded acquisition-related expenses related to a potential deal. This was partially offset by acquisition-related expenses of $117,000 incurred for the acquisition of Landmark at Andros Isles. See Note 3, Real Estate Investments — Real Estate Acquisitions, for a listing of the properties acquired and the dates of the acquisitions. | |||||||||
Results of operations for the property acquisitions are reflected in our condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2014 for the period subsequent to the acquisition dates. For the period from the acquisition dates through June 30, 2014, we recognized $19.9 million in revenues and $6.7 million in net loss for the newly acquired properties. | |||||||||
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): | |||||||||
June 30, 2014 | |||||||||
Land | $ | 56,382 | |||||||
Land improvements | 3,910 | ||||||||
Building and improvements | 292,242 | ||||||||
Furniture, fixtures and equipment | 6,100 | ||||||||
In-place leases | 11,081 | ||||||||
(Above)/below market leases | (1,182 | ) | |||||||
Fair market value of assumed debt(1) | (181,118 | ) | |||||||
Acquisition contingent consideration | (2,700 | ) | |||||||
Other assets/liabilities, net | (620 | ) | |||||||
Total | 184,095 | ||||||||
Equity/limited partnership unit consideration | (91,304 | ) | |||||||
Net cash consideration | $ | 92,791 | |||||||
-1 | Includes $652,000 of net below market debt adjustments. | ||||||||
In accordance with ASC Topic 805, Business Combinations, or ASC Topic 805, we allocated the purchase price of the 13 apartment communities to the fair value of assets acquired and liabilities assumed, including allocating to the intangibles associated with the in-place leases, above/below market leases and assumed debt. Certain allocations, including the initial estimate of the fair value of acquisition contingent consideration, as of June 30, 2014 are subject to change based on finalization of the value of consideration paid and information to be received related to one or more events at the time of purchase, which confirm the value of an asset acquired or a liability assumed in an acquisition of a property. We made adjustments to the preliminary price allocation for Landmark at Spring Creek which we acquired in the first quarter of 2014. All adjustments were within operating properties, net in our accompanying condensed consolidated balance sheets. | |||||||||
2013 Property Acquisitions | |||||||||
For the six months ended June 30, 2013, we completed the acquisition of 12 consolidated apartment communities, adding a total of 3,012 apartment units to our property portfolio. The aggregate purchase price was approximately $241.5 million, plus closing costs and acquisition fees of $1.1 million, which are included in acquisition-related expense, net in our accompanying condensed consolidated statements of comprehensive operations. | |||||||||
Results of operations for the property acquisitions are reflected in our condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2013 for the period subsequent to the acquisition dates. For the period from the acquisition dates through June 30, 2013, we recognized $6.3 million in revenues and $1.1 million in net loss for the acquired properties. | |||||||||
The following table summarizes the fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): | |||||||||
June 30, 2013 | |||||||||
Land | $ | 39,649 | |||||||
Land improvements | 19,497 | ||||||||
Building and improvements | 170,361 | ||||||||
Furniture, fixtures and equipment | 4,279 | ||||||||
In-place leases | 6,745 | ||||||||
Fair market value of assumed debt | (33,915 | ) | |||||||
Other assets/liabilities, net | (1,912 | ) | |||||||
Total | 204,704 | ||||||||
Equity/limited partnership unit consideration | (33,677 | ) | |||||||
Net cash consideration | $ | 171,027 | |||||||
In accordance with ASC Topic 805, we allocated the purchase price of the 12 apartment communities to the fair value of assets acquired and liabilities assumed, including allocating to the intangibles associated with the in-place leases and assumed debt. The purchase price accounting is final with no adjustments since December 31, 2013. | |||||||||
ELRM Transaction | |||||||||
In connection with the ELRM Transaction, we acquired the property management business of ELRH and certain of its affiliates on March 14, 2013. Results of operations for the property management business are reflected in our condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2013, and for the period subsequent to the acquisition date. For the period from March 14, 2013 through June 30, 2013, we recognized $1.6 million in revenues and $327,000 in consolidated net loss before income tax benefit, and transaction related costs of approximately $175,000 were recorded as a component of acquisition-related expense, net. | |||||||||
The purchase price allocation for the ELRM Transaction is final with no adjustments since December 31, 2013. Our purchase price allocation related to the ELRM Transaction is as follows (in thousands): | |||||||||
Property | |||||||||
Management | |||||||||
Business | |||||||||
Assets: | |||||||||
Furniture, fixtures and equipment | $ | 81 | |||||||
Other assets, net | 631 | ||||||||
Identified intangible assets, net(1)(3) | 21,070 | ||||||||
Goodwill(2)(3)(4) | 9,198 | ||||||||
Total purchase price | 30,980 | ||||||||
Accounts payable and accrued liabilities | (196 | ) | |||||||
Unsecured notes payable to affiliate | (10,000 | ) | |||||||
Limited partnership units(4) | (9,839 | ) | |||||||
Acquisition contingent consideration | (6,734 | ) | |||||||
Deferred tax liability, net | (4,211 | ) | |||||||
Cash paid | $ | 0 | |||||||
-1 | Included in identified intangible assets, net on the condensed consolidated balance sheets as of June 30, 2014. | ||||||||
-2 | Included as goodwill on the condensed consolidated balance sheets as of June 30, 2014. Our annual impairment test date is December 31st of each year. Goodwill reflects the value of ELRM’s assembled work force and the deferred tax liability. | ||||||||
-3 | In the third quarter of the year ended December 31, 2013, we recorded an increase to goodwill of $3.3 million and a decrease to identified intangible assets of $3.3 million as a measurement period adjustment as we obtained the necessary information to quantify the value of intangible assets acquired during the quarter. During the fourth quarter of the year ended December 31, 2013, we recorded a decrease of $1 million to goodwill and a decrease of $1 million to deferred tax liability, net. | ||||||||
-4 | In the second quarter of 2014, we recorded a decrease to goodwill of $481,000 and an increase to accounts receivable from affiliates, which represents a correction of the original purchase price allocation due to an immaterial error. This correction will result in the forfeiture of 58,965 limited partnership units during the third quarter of 2014 in connection with two property management contracts being terminated in the second quarter of 2013. | ||||||||
Pro Forma Financial Data (Unaudited) | |||||||||
Assuming the acquisitions of the 13 consolidated apartment communities discussed above and the 38 consolidated apartment communities that we acquired during 2013 had occurred on January 1, 2013, pro forma revenues, net loss, net loss attributable to controlling interest and net loss per common share attributable to controlling interest — basic and diluted, would have been as follows for the three and six months ended June 30, 2014 (in thousands, except per share data): | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, 2014 | June 30, 2014 | ||||||||
Revenues | $ | 66,439 | $ | 130,708 | |||||
Net loss | $ | (254 | ) | $ | (27,495 | ) | |||
Net loss attributable to controlling interest | $ | (99 | ) | $ | (10,668 | ) | |||
Net loss per common share attributable to controlling interest — basic and diluted | $ | (.01 | ) | $ | (0.42 | ) | |||
Assuming the acquisitions of the 13 consolidated apartment communities discussed above and the 38 consolidated apartment communities that we acquired during 2013 had occurred on January 1, 2013, pro forma revenues, net loss, net loss attributable to controlling interest and net loss per common share attributable to controlling interest — basic and diluted, would have been as follows for the three and six months ended June 30, 2013 (in thousands, except per share data): | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, 2013 | June 30, 2013 | ||||||||
Revenues | $ | 65,141 | $ | 126,591 | |||||
Net loss | $ | (20,005 | ) | $ | (24,390 | ) | |||
Net loss attributable to controlling interest | $ | (10,097 | ) | $ | (12,310 | ) | |||
Net loss per common share attributable to controlling interest — basic and diluted | $ | (0.46 | ) | $ | (0.58 | ) | |||
The pro forma results are not necessarily indicative of the operating results that would have been obtained had these transactions occurred at the beginning of the periods presented, nor are they necessarily indicative of future operating results. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
15. Subsequent Events | |
Declaration of Distributions | |
On July 17, 2014, our board of directors authorized monthly distributions to our stockholders of record as of the close of business on July 31, 2014, August 31, 2014 and September 30, 2014. Each such authorized distribution will be equal to $0.025 per share of common stock, which is equal to an annualized distribution rate of 3.00% based upon a purchase price of $10.00 per share and 3.68% based upon a purchase price of $8.15 per share value. The July 2014 distribution was paid in August 2014 from legally available funds. To the extent there are legally available funds, the August 2014 and September 2014 distributions will be paid in September 2014 and October 2014, respectively. | |
On July 28, 2014, we paid a non-refundable deposit towards the acquisition of the Villa Tuscany Apartments which are a 342 unit apartment community located in Orlando, FL. We expect to acquire the apartment community during the third quarter of 2014. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2014. | |
Certain prior year amounts have been reclassified to conform to the current year presentation due to the breakout of preferred dividends from interest expense, net to preferred dividends classified as interest expense and the breakout of the change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration from general, administrative and other expense in the condensed consolidated statements of comprehensive operations. | |
Income Taxes | ' |
Income Taxes | |
We have qualified and elected to be taxed as a REIT under the Code for federal income tax purposes, and we intend to continue to be taxed as a REIT. To qualify as a REIT for federal income tax purposes, we must meet certain organizational and operational requirements, including a requirement to pay distributions to our stockholders of at least 90% of our annual taxable income, excluding net capital gains. As a REIT, we generally will not be subject to federal income tax on net income that we distribute to our stockholders. We are subject to state and local income taxes in some jurisdictions, and in certain circumstances, we may also be subject to federal excise taxes on undistributed income. In addition, certain of our activities must be conducted by subsidiaries that elect to be treated as a taxable REIT subsidiary, or a TRS. A TRS is subject to both federal and state income taxes. | |
Our Property Manager is organized as a TRS and, accordingly, is subject to income taxation. Our Property Manager has incurred taxable losses since inception and did not have an income tax provision or benefit prior to December 31, 2012 due to the recording of a full valuation allowance against its deferred tax assets. During the first quarter of 2013, we evaluated the ability to realize our deferred tax asset, which was previously offset by a full valuation allowance. Due to a deferred tax liability resulting from the ELRM Transaction, we determined it is more likely than not that our deferred tax asset will be realized. Accordingly, an income tax benefit of $286,000 and $3.1 million was recognized for the three and six months ended June 30, 2013, respectively, which includes a reversal of the prior valuation allowance of $2.7 million. An income tax (expense)/benefit of $(220,000) and $223,000 was recognized for the three and six months ended June 30, 2014, respectively, which includes state income tax expense of $212,000 for each of those periods. | |
As of March 31, 2014, our deferred tax assets were approximately equal to our deferred tax liabilities. Due to the history of losses incurred by the Property Manager, additional deferred tax assets that were created in the quarter ended June 30, 2014, were, therefore, offset by a valuation allowance. It is expected that any future net deferred tax assets will be offset by a valuation allowance until the Property Manager becomes consistently profitable. Total net operating loss carry forward for federal income tax purposes was approximately $4.2 million as of June 30, 2014. The net operating loss carry forward will expire beginning 2031. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, which incorporates a requirement that a disposition represent a strategic shift in an entity’s operations into the definition of a discontinued operation. In accordance with ASU 2014-08, a discontinued operation represents (i) a component of an entity or group of components that has been disposed of or is classified as held for sale in a single transaction and represents a strategic shift that has or will have a major effect on an entity’s financial results, or (ii) an acquired business that is classified as held for sale on the date of acquisition. A strategic shift could include a disposal of (i) a separate major line of business, (ii) a separate major geographic area of operations, (iii) a major equity method investment, or (iv) other major parts of an entity. The standard requires prospective application and will be effective for interim and annual periods beginning on or after December 15, 2014 with early adoption permitted. The standard is not applied to components of an entity that were sold or classified as held for sale prior to the adoption of the standard. | |
We have elected to adopt this standard early, effective January 1, 2014, which primarily has the impact of reflecting gains and losses on the sale of operating properties prospectively within continuing operations, and results in not classifying the operations of such operating properties as discontinued operations in all periods presented. Subsequent to our adoption of ASU 2014-08, the sale of real estate that does not meet the definition of a discontinued operation under the standard will be included in gain on sale of operating properties in our condensed consolidated statements of comprehensive operations. During the six months ended June 30, 2014, we sold two apartment communities which were subject to the early adoption of ASU 2014-08 and, therefore, the gain on such sale is reported as a gain on sale of operating properties within continuing operations. During the year ended December 31, 2013, we sold two of our apartment communities which were not subject to the early adoption of ASU 2014-08 and, therefore, the gain on such sales and results of operations prior to such sales are reported as discontinued operations for the three and six months ended June 30, 2013 in our condensed consolidated statements of comprehensive operations. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which is a revenue recognition standard that will result in companies recognizing revenue from contracts when control for the service or product that is the subject of the contract is transferred from the seller to the buyer. We will be required to apply the new standard in the first quarter of 2017 and are assessing whether the new standard will have a material effect on our financial position or results of operations. |
Real_Estate_Investments_Tables
Real Estate Investments (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||
Investments in Consolidated Owned Properties | ' | ||||||||||||||
The investments in our consolidated owned properties, net consisted of the following as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||
June 30, | December 31, | ||||||||||||||
2014 | 2013 | ||||||||||||||
Operating properties: | |||||||||||||||
Land | $ | 275,957 | $ | 221,595 | |||||||||||
Land improvements | 136,794 | 118,652 | |||||||||||||
Building and improvements(1) | 1,394,221 | 1,129,619 | |||||||||||||
Furniture, fixtures and equipment | 36,392 | 30,567 | |||||||||||||
Operating properties, held for sale: | |||||||||||||||
Land | 2,187 | — | |||||||||||||
Land improvements | 1,377 | — | |||||||||||||
Building and improvements(1) | 7,321 | — | |||||||||||||
Furniture, fixtures and equipment | 169 | — | |||||||||||||
1,854,418 | 1,500,433 | ||||||||||||||
Less: accumulated depreciation | (117,699 | ) | (89,920 | ) | |||||||||||
Total real estate investments | $ | 1,736,719 | $ | 1,410,513 | |||||||||||
-1 | Includes $25 million and $10.4 million of direct construction costs for our repositioning activities as of June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Investment of Contributed Parties at Time of Acquisition | ' | ||||||||||||||
During the six months ended June 30, 2014, we completed the acquisition of 13 consolidated apartment communities, as set forth below (in thousands, except unit data): | |||||||||||||||
Property Description | Date Acquired | Number | Total | Percentage | |||||||||||
of Units | Purchase | Ownership | |||||||||||||
Price | |||||||||||||||
Landmark at Chesterfield — Pineville, NC(1) | January 7, 2014 | 250 | $ | 19,451 | 61.2 | % | |||||||||
Landmark at Coventry Pointe — Lawrenceville, GA(1) | 7-Jan-14 | 250 | 27,826 | 61.2 | % | ||||||||||
Landmark at Grand Oasis — Suwanee, GA(1) | 7-Jan-14 | 434 | 48,290 | 61.2 | % | ||||||||||
Landmark at Rosewood — Dallas, TX(1) | 7-Jan-14 | 232 | 12,902 | 61.2 | % | ||||||||||
Lake Village East — Garland, TX | 9-Jan-14 | 329 | 18,547 | 100 | % | ||||||||||
Lake Village North — Garland, TX | 9-Jan-14 | 848 | 59,147 | 100 | % | ||||||||||
Lake Village West — Garland, TX | 9-Jan-14 | 294 | 19,221 | 100 | % | ||||||||||
Landmark at Laurel Heights — Mesquite, TX | 9-Jan-14 | 286 | 20,709 | 100 | % | ||||||||||
Landmark at Bella Vista — Duluth, GA | January 15, 2014 | 564 | 31,277 | 100 | % | ||||||||||
Landmark at Maple Glen — Orange Park, FL(1) | 15-Jan-14 | 358 | 32,246 | 51.1 | % | ||||||||||
Landmark at Pine Court — Columbia, SC | 23-Jan-14 | 316 | 20,300 | 100 | % | ||||||||||
Landmark at Spring Creek — Garland, TX(1) | 6-Feb-14 | 236 | 10,267 | 92.6 | % | ||||||||||
Landmark at Andros Isles — Daytona Beach, FL | 4-Jun-14 | 360 | 47,700 | 100 | % | ||||||||||
Total acquired apartment communities | 4,757 | $ | 367,883 | ||||||||||||
-1 | We consolidate an entity for which we own less than 100% but we hold the controlling financial interest or have management control. |
Real_Estate_Disposition_Activi1
Real Estate Disposition Activities (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||
Schedule of Income Loss from Discontinued Operations | ' | ||||||||
The following is a summary of income from discontinued operations for the periods presented (in thousands): | |||||||||
For the three | For the six | ||||||||
months ended | months ended | ||||||||
June 30, 2013 | June 30, 2013 | ||||||||
(unaudited) | (unaudited) | ||||||||
Rental income | $ | 1,059 | $ | 2,911 | |||||
Other property revenues | 176 | 441 | |||||||
Total revenues | 1,235 | 3,352 | |||||||
Rental expenses | (440 | ) | (1,234 | ) | |||||
Interest expense, net | (328 | ) | (808 | ) | |||||
Depreciation and amortization expense | (249 | ) | (861 | ) | |||||
Total expenses | (1,017 | ) | (2,903 | ) | |||||
Income before net gain on the sale of property | 218 | 449 | |||||||
Net gain on the sale of property | — | 6,620 | |||||||
Income from discontinued operations | $ | 218 | $ | 7,069 | |||||
Less: Net income from discontinued operations attributable to redeemable non-controlling interests in operating partnership | 108 | 3,501 | |||||||
Net income attributable to common stockholders | $ | 110 | $ | 3,568 | |||||
Investments_in_Unconsolidated_1
Investments in Unconsolidated Entities (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||
Schedule of Non Controlling Investments Under Equity Method Investments | ' | ||||||||||||||
As of June 30, 2014 and December 31, 2013, we held non-controlling interests in the following investments, which are accounted for under the equity method (in thousands, except unit data): | |||||||||||||||
Investment Description | Date | Number | Total | Total | Percentage | ||||||||||
Acquired | of Units | Investment at | Investment at | Ownership | |||||||||||
June 30, | December 31, | at June 30, | |||||||||||||
2014 | 2013 | 2014 | |||||||||||||
Landmark at Waverly Place — Melbourne, FL | November 18, 2013 | 208 | $ | 987 | $ | 1,158 | 20% | ||||||||
The Fountains — Palm Beach Gardens, FL | December 6, 2013 | 542 | 3,527 | 4,998 | 20% | ||||||||||
Timbercreek U.S. Multi-Residential (U.S.) Holding L.P. — 500,000 Class A Units | December 20, 2013 | N/A | 4,928 | 5,000 | 7.60% | ||||||||||
Total investments | $ | 9,442 | $ | 11,156 | |||||||||||
Identified_Intangible_Assets_N1
Identified Intangible Assets, Net (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||
Identified Intangible Assets, Net | ' | ||||||||
Identified intangible assets, net consisted of the following as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
Disposition fee rights(1) | $ | — | $ | 284 | |||||
In-place leases, net of accumulated amortization of $8.2 million and $39.1 million as of June 30, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 3.1 months and 3.6 months as of June 30, 2014 and December 31, 2013, respectively) | 2,797 | 16,662 | |||||||
Trade name and trade marks (indefinite lives) | 200 | 200 | |||||||
Property management contracts, net of accumulated amortization of $3.7 million and $2.2 million as of June 30, 2014 and December 31, 2013, respectively (with a weighted average remaining life of 166.2 months and 165.3 months as of June 30, 2014 and December 31, 2013, respectively) | 17,188 | 18,703 | |||||||
Total identified intangible assets, net | $ | 20,185 | $ | 35,849 | |||||
-1 | On February 6, 2014, we purchased a controlling interest in Landmark at Spring Creek and, therefore, consolidated this apartment community in our condensed consolidated financial statements. Prior to our consolidation, the Landmark at Spring Creek property was owned by unaffiliated third parties and leased by our wholly owned subsidiary, NNN Mission Residential Holdings, LLC, or NNN/MR Holdings. Pursuant to the master lease or other operative agreement between NNN/MR Holdings and the respective third party property owners, our NNN/MR Holdings was entitled to a disposition fee in the event that the leased property was sold. We recognized this as a disposition fee rights intangible of $284,000 for the year ended December 31, 2013. Upon our acquisition of a controlling interest of Landmark at Spring Creek, we waived the disposition fee from the sellers of the controlling interest and, therefore, wrote off the full amount of the disposition fee rights intangible to general, administrative and other expenses in our condensed consolidated statements of comprehensive operations during the first quarter of 2014. |
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Mortgage Loan Payable, Net | ' | ||||||||||||
Our mortgage loan payables, net, unsecured notes payable to affiliates, our variable rate secured credit facility with Bank of America, N.A. and certain other lenders, or the Credit Facility, and our line of credit as of June 30, 2014 and December 31, 2013, are summarized below (in thousands): | |||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||
Mortgage loan payables — fixed | $ | 755,843 | $ | 652,345 | |||||||||
Mortgage loan payables — variable | 252,925 | 175,120 | |||||||||||
Total secured fixed and variable rate debt | 1,008,768 | 827,465 | |||||||||||
Premium, net | 9,901 | 10,969 | |||||||||||
Total mortgage loan payables, net | 1,018,669 | 838,434 | |||||||||||
Credit Facility | 160,688 | 145,200 | |||||||||||
Line of credit | 3,902 | — | |||||||||||
Total secured fixed and variable rate debt, net | $ | 1,183,259 | $ | 983,634 | |||||||||
Unsecured notes payable to affiliates | $ | 5,784 | $ | 5,784 | |||||||||
Scheduled Payments and Maturities of Mortgage Loan Payables, Net, Unsecured Note Payables and Credit Facility | ' | ||||||||||||
Scheduled payments and maturities of mortgage loan payables, net, unsecured notes payable to affiliates, the Credit Facility and our line of credit at June 30, 2014 were as follows (in thousands): | |||||||||||||
Year | Secured notes | Secured notes | Unsecured notes | ||||||||||
payments(1) | maturities | maturities | |||||||||||
2014(2) | $ | 7,755 | $ | 7,639 | $ | — | |||||||
2015(3) | 12,994 | 331,089 | 500 | ||||||||||
2016 | 11,485 | 223,117 | — | ||||||||||
2017 | 9,872 | 99,726 | — | ||||||||||
2018 | 8,384 | 105,210 | 5,284 | ||||||||||
Thereafter | 42,340 | 313,747 | — | ||||||||||
$ | 92,830 | $ | 1,080,528 | $ | 5,784 | ||||||||
-1 | Secured note payments are comprised of the principal pay downs for mortgage loan payables, our line of credit, and the Credit Facility. | ||||||||||||
-2 | Included is maturing debt in the fourth quarter of 2014 of $7.7 million. We plan to investigate opportunities to extend, refinance or raise funds to repay this instrument prior to its maturity. | ||||||||||||
-3 | Included is maturing debt in the first and second quarter of 2015 of $187.4 million and $67.2 million, respectively, which includes the Credit Facility in the amount of $159.2 million. The Credit Facility is due on March 7, 2015, and the maturity date may be extended to March 7, 2016 if certain conditions are satisfied, which would have to be assessed at that time. We plan to investigate opportunities to extend, refinance or raise funds to repay each of these instruments prior to their respective maturities. |
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Equity [Abstract] | ' | ||||||||
Status of Nonvested Shares of Restricted Common Stock | ' | ||||||||
A summary of the status of the nonvested shares of our restricted common stock as of June 30, 2014 and December 31, 2013, and the changes for the six months ended June 30, 2014, is presented below: | |||||||||
Restricted | Weighted | ||||||||
Common | Average Grant | ||||||||
Stock | Date Fair | ||||||||
Value | |||||||||
Balance — December 31, 2013 | 7,400 | $ | 9 | ||||||
Granted | 200,038 | $ | 8.15 | ||||||
Vested | (13,722 | ) | $ | 8.15 | |||||
Forfeited | (800 | ) | $ | 8.15 | |||||
Balance — June 30, 2014 | 192,916 | $ | 8.18 | ||||||
Fair_Value_of_Derivatives_and_1
Fair Value of Derivatives and Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Summary of Derivative Arrangements | ' | ||||||||||||||||||||||||
The following table summarizes our derivative financial instruments at June 30, 2014 and December 31, 2013 (in thousands, except interest rates): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Non- | Cash Flow | Non- | Cash Flow | ||||||||||||||||||||||
designated | Hedges | designated | Hedges | ||||||||||||||||||||||
Hedges | Hedges | ||||||||||||||||||||||||
Interest | Interest | Interest | Interest | Interest | |||||||||||||||||||||
Rate Caps | Rate Swaps | Rate Swaps | Rate Caps | Rate Swaps | |||||||||||||||||||||
Notional balance | $ | 102,065 | $ | 58,800 | $ | 32,100 | $ | 102,065 | $ | 32,100 | |||||||||||||||
Weighted average interest rate(1) | 2.81 | % | 2.17 | % | 2.38 | % | 2.81 | % | 2.38 | % | |||||||||||||||
Weighted average capped interest rate | 3.68 | % | N/A | N/A | 3.68 | % | N/A | ||||||||||||||||||
Earliest maturity date | 15-Mar | 18-Sep | 20-Jul | 15-Mar | 20-Jul | ||||||||||||||||||||
Latest maturity date | 18-Jul | 18-Sep | 20-Aug | 18-Jul | 20-Aug | ||||||||||||||||||||
Estimated fair value, asset/(liability), net | $ | 173 | $ | (1,726 | ) | $ | (1,036 | ) | $ | 478 | $ | (350 | ) | ||||||||||||
-1 | For the interest rate caps, this represents the weighted average interest rate on the debt. | ||||||||||||||||||||||||
Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
The table below presents our liabilities measured/disclosed at fair value on a recurring basis as of June 30, 2014, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total Fair Value | Carrying | |||||||||||||||||||||
in Active | Other | Unobservable | Estimate at | Value at | |||||||||||||||||||||
Markets for | Observable | Inputs | June 30, | June 30, | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | 2014 | 2014 | |||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Mortgage loan payables, net(1) | $ | — | $ | 1,062,380 | $ | — | $ | 1,062,380 | $ | 1,018,669 | |||||||||||||||
Unsecured notes payable to affiliates(2) | — | — | 5,784 | 5,784 | 5,784 | ||||||||||||||||||||
Credit Facility(1) | — | 160,728 | — | 160,728 | 160,688 | ||||||||||||||||||||
Line of credit(1) | — | 3,914 | — | 3,914 | 3,902 | ||||||||||||||||||||
Acquisition contingent consideration — ELRM Transaction(3) | — | — | — | — | — | ||||||||||||||||||||
Acquisition contingent consideration — Andros Isles(4) | — | — | 2,700 | 2,700 | 2,700 | ||||||||||||||||||||
Warrants(5) | — | — | 566 | 566 | 566 | ||||||||||||||||||||
Series D preferred stock derivative(6) | — | — | 6,300 | 6,300 | 6,300 | ||||||||||||||||||||
Series E preferred stock derivative(7) | — | — | 4,600 | 4,600 | 4,600 | ||||||||||||||||||||
Liabilities at fair value | $ | — | $ | 1,227,022 | $ | 19,950 | $ | 1,246,972 | $ | 1,203,209 | |||||||||||||||
-1 | The fair value is estimated using borrowing rates available to us for debt instruments with similar terms and maturities. | ||||||||||||||||||||||||
-2 | The fair value is not determinable due to the related party nature of the unsecured notes payable to affiliates, other than the Legacy Unsecured Note. The fair value of the Legacy Unsecured Note is based on a benchmark index from the limited partnership unit distributions dividend rate; therefore, we consider the fair value of the Legacy Unsecured Note to be equal to the carrying value. | ||||||||||||||||||||||||
-3 | The fair value is based on management’s inputs and assumptions relating primarily to the expected cash flows, and the timing of such cash flows, from the economic rights we acquired in connection with the ELRM Transaction that enables us to earn property management fees and subordinated participation distributions with respect to certain real estate assets. During the quarter ended June 30, 2014, management determined that the targeted cash flows would not be raised by a certain date which resulted in a complete write off of the acquisition contingent consideration. | ||||||||||||||||||||||||
-4 | The fair value is based on management’s inputs and assumptions related primarily to certain net operating income over a four-year period for Landmark at Andros Isles. | ||||||||||||||||||||||||
-5 | The fair value of the warrants is estimated using the Monte-Carlo Simulation. | ||||||||||||||||||||||||
-6 | The fair value of the Series D Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series D Preferred Stock outstanding as of the date of a triggering event as described in the Series D Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series D Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
-7 | The fair value of the Series E Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series E Preferred Stock outstanding as of the date of a triggering event as described in the Series E Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series E Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
The table below presents our liabilities measured/disclosed at fair value on a recurring basis as of December 31, 2013, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): | |||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total Fair Value | Carrying | |||||||||||||||||||||
in Active | Other | Unobservable | Estimate at | Value at | |||||||||||||||||||||
Markets for | Observable | Inputs | December 31, | December 31, | |||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | 2013 | 2013 | |||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Mortgage loan payables, net(1) | $ | — | $ | 858,658 | $ | — | $ | 858,658 | $ | 838,434 | |||||||||||||||
Unsecured notes payable to affiliates(2) | — | — | 5,784 | 5,784 | 5,784 | ||||||||||||||||||||
Credit Facility(1) | — | 145,247 | — | 145,247 | 145,200 | ||||||||||||||||||||
Acquisition contingent consideration(3) | — | — | 4,030 | 4,030 | 4,030 | ||||||||||||||||||||
Warrants(4) | — | — | 1,789 | 1,789 | 1,789 | ||||||||||||||||||||
Series D preferred stock derivative(5) | — | — | 11,100 | 11,100 | 11,100 | ||||||||||||||||||||
Liabilities at fair value | $ | — | $ | 1,003,905 | $ | 22,703 | $ | 1,026,608 | $ | 1,006,337 | |||||||||||||||
-1 | The fair value is estimated using borrowing rates available to us for debt instruments with similar terms and maturities. | ||||||||||||||||||||||||
-2 | The fair value is not determinable due to the related party nature of the unsecured notes payable to affiliates, other than the Legacy Unsecured Note. The fair value of the Legacy Unsecured Note is based on a benchmark index from the limited partnership unit distributions dividend rate; therefore, we consider the fair value of the Legacy Unsecured Note to be equal to the carrying value. | ||||||||||||||||||||||||
-3 | The fair value is based on management’s inputs and assumptions relating primarily to the expected cash flows, and the timing of such cash flows, from the economic rights we acquired in connection with the ELRM Transaction that enables us to earn property management fees and subordinated participation distributions with respect to certain real estate assets. | ||||||||||||||||||||||||
-4 | The fair value of the warrants is estimated using the Monte-Carlo Simulation. | ||||||||||||||||||||||||
-5 | The fair value of the Series D Preferred Stock derivative, which relates to the mandatory redemption of 50% of the Series D Preferred Stock outstanding as of the date of a triggering event as described in the Series D Preferred Stock agreements for a premium, is determined using a modeling technique based on significant unobservable inputs calculated using a probability-weighted approach. Significant inputs include the expected timing of a triggering event, the expected timing of additional issuances of Series D Preferred Stock, and the discount rate. | ||||||||||||||||||||||||
Reconciliation of Fair Value of Acquisition Contingent Consideration and Warrant Liability Measured on Recurring Basis | ' | ||||||||||||||||||||||||
he table below provides a reconciliation of the fair values of acquisition contingent consideration, warrant liability, Series D Preferred Stock derivative and Series E Preferred Stock derivative measured on a recurring basis for which the Company has designated as Level 3 (in thousands): | |||||||||||||||||||||||||
Acquisition | Acquisition | Warrants | Series D | Series E | Total | ||||||||||||||||||||
Contingent | Contingent | Preferred | Preferred | ||||||||||||||||||||||
Consideration – | Consideration – | Stock | Stock | ||||||||||||||||||||||
ELRM | Andros Isles | Derivative | Derivative | ||||||||||||||||||||||
Transaction | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 4,030 | $ | — | $ | 1,789 | $ | 11,100 | $ | — | $ | 16,919 | |||||||||||||
Additions | — | 2,700 | — | — | 6,000 | 8,700 | |||||||||||||||||||
Change due to liability realized | (276 | ) | — | — | — | — | (276 | ) | |||||||||||||||||
Changes in fair value(1) | (3,754 | ) | — | (1,223 | ) | (4,800 | ) | (1,400 | ) | (11,777 | ) | ||||||||||||||
Balance at June 30, 2014 | $ | — | $ | 2,700 | $ | 566 | $ | 6,300 | $ | 4,600 | $ | 14,166 | |||||||||||||
-1 | Reflected in change in fair value of preferred stock derivatives/warrants and acquisition contingent consideration in our condensed consolidated statements of comprehensive operations for the three and six months ended June 30, 2014. |
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Fair Value of Property Management Business | ' | ||||||||
Our purchase price allocation related to the ELRM Transaction is as follows (in thousands): | |||||||||
Property | |||||||||
Management | |||||||||
Business | |||||||||
Assets: | |||||||||
Furniture, fixtures and equipment | $ | 81 | |||||||
Other assets, net | 631 | ||||||||
Identified intangible assets, net(1)(3) | 21,070 | ||||||||
Goodwill(2)(3)(4) | 9,198 | ||||||||
Total purchase price | 30,980 | ||||||||
Accounts payable and accrued liabilities | (196 | ) | |||||||
Unsecured notes payable to affiliate | (10,000 | ) | |||||||
Limited partnership units(4) | (9,839 | ) | |||||||
Acquisition contingent consideration | (6,734 | ) | |||||||
Deferred tax liability, net | (4,211 | ) | |||||||
Cash paid | $ | 0 | |||||||
-1 | Included in identified intangible assets, net on the condensed consolidated balance sheets as of June 30, 2014. | ||||||||
-2 | Included as goodwill on the condensed consolidated balance sheets as of June 30, 2014. Our annual impairment test date is December 31st of each year. Goodwill reflects the value of ELRM’s assembled work force and the deferred tax liability. | ||||||||
-3 | In the third quarter of the year ended December 31, 2013, we recorded an increase to goodwill of $3.3 million and a decrease to identified intangible assets of $3.3 million as a measurement period adjustment as we obtained the necessary information to quantify the value of intangible assets acquired during the quarter. During the fourth quarter of the year ended December 31, 2013, we recorded a decrease of $1 million to goodwill and a decrease of $1 million to deferred tax liability, net. | ||||||||
-4 | In the second quarter of 2014, we recorded a decrease to goodwill of $481,000 and an increase to accounts receivable from affiliates, which represents a correction of the original purchase price allocation due to an immaterial error. This correction will result in the forfeiture of 58,965 limited partnership units during the third quarter of 2014 in connection with two property management contracts being terminated in the second quarter of 2013. | ||||||||
Proforma Revenues, Net Loss, Net Loss Attributable to Controlling Interest and Net Loss Per Common Share Attributable to Controlling Interest - Basic and Diluted | ' | ||||||||
Assuming the acquisitions of the 13 consolidated apartment communities discussed above and the 38 consolidated apartment communities that we acquired during 2013 had occurred on January 1, 2013, pro forma revenues, net loss, net loss attributable to controlling interest and net loss per common share attributable to controlling interest — basic and diluted, would have been as follows for the three and six months ended June 30, 2014 (in thousands, except per share data): | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, 2014 | June 30, 2014 | ||||||||
Revenues | $ | 66,439 | $ | 130,708 | |||||
Net loss | $ | (254 | ) | $ | (27,495 | ) | |||
Net loss attributable to controlling interest | $ | (99 | ) | $ | (10,668 | ) | |||
Net loss per common share attributable to controlling interest — basic and diluted | $ | (.01 | ) | $ | (0.42 | ) | |||
Three Months Ended | Six Months Ended | ||||||||
June 30, 2013 | June 30, 2013 | ||||||||
Revenues | $ | 65,141 | $ | 126,591 | |||||
Net loss | $ | (20,005 | ) | $ | (24,390 | ) | |||
Net loss attributable to controlling interest | $ | (10,097 | ) | $ | (12,310 | ) | |||
Net loss per common share attributable to controlling interest — basic and diluted | $ | (0.46 | ) | $ | (0.58 | ) | |||
2014 Property Acquisitions [Member] | ' | ||||||||
Fair Value of Assets Acquired and Liabilities Assumed at Time of Acquisition | ' | ||||||||
The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): | |||||||||
June 30, 2014 | |||||||||
Land | $ | 56,382 | |||||||
Land improvements | 3,910 | ||||||||
Building and improvements | 292,242 | ||||||||
Furniture, fixtures and equipment | 6,100 | ||||||||
In-place leases | 11,081 | ||||||||
(Above)/below market leases | (1,182 | ) | |||||||
Fair market value of assumed debt(1) | (181,118 | ) | |||||||
Acquisition contingent consideration | (2,700 | ) | |||||||
Other assets/liabilities, net | (620 | ) | |||||||
Total | 184,095 | ||||||||
Equity/limited partnership unit consideration | (91,304 | ) | |||||||
Net cash consideration | $ | 92,791 | |||||||
-1 | Includes $652,000 of net below market debt adjustments. | ||||||||
2013 Property Acquisitions [Member] | ' | ||||||||
Fair Value of Assets Acquired and Liabilities Assumed at Time of Acquisition | ' | ||||||||
The following table summarizes the fair value of the assets acquired and liabilities assumed at the time of acquisition (in thousands): | |||||||||
June 30, 2013 | |||||||||
Land | $ | 39,649 | |||||||
Land improvements | 19,497 | ||||||||
Building and improvements | 170,361 | ||||||||
Furniture, fixtures and equipment | 4,279 | ||||||||
In-place leases | 6,745 | ||||||||
Fair market value of assumed debt | (33,915 | ) | |||||||
Other assets/liabilities, net | (1,912 | ) | |||||||
Total | 204,704 | ||||||||
Equity/limited partnership unit consideration | (33,677 | ) | |||||||
Net cash consideration | $ | 171,027 | |||||||
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Billions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Property | Property | |
Organization and Nature of Operations [Line Items] | ' | ' |
Number of properties | 78 | ' |
Acquisition of total properties | ' | 38 |
Parcel of undeveloped land | 2 | ' |
Carrying value of properties | $1.90 | ' |
Number of apartment units | 24,045 | ' |
Consolidated joint venture [Member] | ' | ' |
Organization and Nature of Operations [Line Items] | ' | ' |
Acquisition of total properties | 7 | ' |
ELRM [Member] | ' | ' |
Organization and Nature of Operations [Line Items] | ' | ' |
Number of properties | 23 | ' |
Number of Units, Managed Properties | 7,984 | ' |
Non-Controlling Interest Partners [Member] | ' | ' |
Organization and Nature of Operations [Line Items] | ' | ' |
Non controlling interest in unconsolidated joint ventures | 2 | ' |
Non-Controlling Interest Partners [Member] | ELRM [Member] | ' | ' |
Organization and Nature of Operations [Line Items] | ' | ' |
Number of apartment units | 750 | ' |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property | |||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Distributions from taxable income percentage required to qualify as a REIT for federal income tax purposes | ' | ' | 90.00% | ' | ' |
Income tax (expense) benefit | ($220,000) | $286,000 | $223,000 | $3,119,000 | ' |
Reversal of prior year valuation allowance | ' | 2,700,000 | ' | 2,700,000 | ' |
State income tax expense | 212,000 | ' | 212,000 | ' | ' |
Operating loss carry forward beginning expiration year | ' | ' | '2031 | ' | ' |
Number of properties sold | ' | ' | ' | ' | 2 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Number of properties sold | ' | ' | 2 | ' | ' |
Federal [Member] | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' |
Operating loss carry forward | $4,200,000 | ' | $4,200,000 | ' | ' |
Real_Estate_Investments_Invest
Real Estate Investments - Investments in Consolidated Owned Properties (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Operating properties: | ' | ' |
Land | $275,957 | $221,595 |
Land improvements | 136,794 | 118,652 |
Building and improvements | 1,394,221 | 1,129,619 |
Furniture, fixtures and equipment | 36,392 | 30,567 |
Total real estate investments | 1,736,719 | 1,410,513 |
Operating properties, held for sale [Member] | ' | ' |
Operating properties: | ' | ' |
Land | 2,187 | ' |
Land improvements | 1,377 | ' |
Building and improvements | 7,321 | ' |
Furniture, fixtures and equipment | 169 | ' |
Real estate investments, gross | 1,854,418 | 1,500,433 |
Less: accumulated depreciation | -117,699 | -89,920 |
Total real estate investments | $1,736,719 | $1,410,513 |
Real_Estate_Investments_Invest1
Real Estate Investments - Investments in Consolidated Owned Properties (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real Estate [Line Items] | ' | ' |
Direct construction cost | $1,394,221 | $1,129,619 |
Building and Improvements [Member] | ' | ' |
Real Estate [Line Items] | ' | ' |
Direct construction cost | $25,000 | $10,400 |
Real_Estate_Investments_Additi
Real Estate Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Real Estate [Abstract] | ' | ' | ' | ' |
Depreciation expense | $14.90 | $7.60 | $29.20 | $14 |
Real_Estate_Investments_Invest2
Real Estate Investments - Investment of Contributed Parties at Time of Acquisition (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Apartment_Communities | |
Business Acquisition [Line Items] | ' |
Number of Units | 4,757 |
Total Purchase Price | $367,883 |
Landmark at Chesterfield - Pineville, NC [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 7-Jan-14 |
Number of Units | 250 |
Total Purchase Price | 19,451 |
Percentage Ownership | 61.20% |
Landmark at Coventry Pointe - Lawrenceville, GA [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 7-Jan-14 |
Number of Units | 250 |
Total Purchase Price | 27,826 |
Percentage Ownership | 61.20% |
Landmark at Grand Oasis - Suwanee, GA [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 7-Jan-14 |
Number of Units | 434 |
Total Purchase Price | 48,290 |
Percentage Ownership | 61.20% |
Landmark at Rosewood - Dallas, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 7-Jan-14 |
Number of Units | 232 |
Total Purchase Price | 12,902 |
Percentage Ownership | 61.20% |
Lake Village East - Garland, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 9-Jan-14 |
Number of Units | 329 |
Total Purchase Price | 18,547 |
Percentage Ownership | 100.00% |
Lake Village North - Garland, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 9-Jan-14 |
Number of Units | 848 |
Total Purchase Price | 59,147 |
Percentage Ownership | 100.00% |
Lake Village West - Garland, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 9-Jan-14 |
Number of Units | 294 |
Total Purchase Price | 19,221 |
Percentage Ownership | 100.00% |
Landmark at Laurel Heights - Mesquite, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 9-Jan-14 |
Number of Units | 286 |
Total Purchase Price | 20,709 |
Percentage Ownership | 100.00% |
Landmark at Bella Vista - Duluth, GA [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 15-Jan-14 |
Number of Units | 564 |
Total Purchase Price | 31,277 |
Percentage Ownership | 100.00% |
Landmark at Maple Glen - Orange Park, FL [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 15-Jan-14 |
Number of Units | 358 |
Total Purchase Price | 32,246 |
Percentage Ownership | 51.10% |
Landmark at Pine Court - Columbia, SC [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 23-Jan-14 |
Number of Units | 316 |
Total Purchase Price | 20,300 |
Percentage Ownership | 100.00% |
Landmark at Spring Creek - Garland, TX [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 6-Feb-14 |
Number of Units | 236 |
Total Purchase Price | 10,267 |
Percentage Ownership | 92.60% |
Landmark at Andros Isles - Daytona Beach, FL [Member] | ' |
Business Acquisition [Line Items] | ' |
Date Acquired | 4-Jun-14 |
Number of Units | 360 |
Total Purchase Price | $47,700 |
Percentage Ownership | 100.00% |
Real_Estate_Investments_Invest3
Real Estate Investments - Investment of Contributed Parties at Time of Acquisition (Parenthetical) (Detail) | Jun. 30, 2014 |
Real Estate Properties Base Purchase Price [Abstract] | ' |
Membership interests, percentage | 100.00% |
Real_Estate_Disposition_Activi2
Real Estate Disposition Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Property | Property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Property Sold | ' | 2 |
Real Estate [Member] | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Property Sold | 2 | 2 |
Number of Apartment units | 306 | 700 |
Combined sales price | $29.30 | $71.70 |
Gain on sale of apartment | $7 | ' |
Real_Estate_Disposition_Activi3
Real Estate Disposition Activities - Schedule of Income Loss from Discontinued Operations (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net gain on the sale of property | $6,998 | ' | $6,998 | ' |
Total discontinued operations | ' | 218 | ' | 7,069 |
Two Apartment Communities [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Rental income | ' | 1,059 | ' | 2,911 |
Other property revenues | ' | 176 | ' | 441 |
Total revenues | ' | 1,235 | ' | 3,352 |
Rental expenses | ' | -440 | ' | -1,234 |
Interest expense, net | ' | -328 | ' | -808 |
Depreciation and amortization expense | ' | -249 | ' | -861 |
Total expenses | ' | -1,017 | ' | -2,903 |
Income before net gain on the sale of property | ' | 218 | ' | 449 |
Net gain on the sale of property | ' | ' | ' | 6,620 |
Total discontinued operations | ' | 218 | ' | 7,069 |
Less: Net income from discontinued operations attributable to redeemable non-controlling interests in operating partnership | ' | 108 | ' | 3,501 |
Net income attributable to common stockholders | ' | $110 | ' | $3,568 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Entities - Schedule of Non Controlling Investments Under Equity Method Investments (Detail) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Property | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Number of Units | 4,757 | ' |
Total Investment | $9,442 | $11,156 |
Landmark at Waverly Place - Melbourne, FL [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Date Acquired | 18-Nov-13 | ' |
Number of Units | 208 | ' |
Total Investment | 987 | 1,158 |
Percentage Ownership | 20.00% | ' |
The Fountains - Palm Beach Gardens, FL [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Date Acquired | 6-Dec-13 | ' |
Number of Units | 542 | ' |
Total Investment | 3,527 | 4,998 |
Percentage Ownership | 20.00% | ' |
Timbercreek U.S. Multi-Residential (U.S.) Holding L.P [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Date Acquired | 20-Dec-13 | ' |
Total Investment | $4,928 | $5,000 |
Percentage Ownership | 7.60% | ' |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Entities - Schedule of Non Controlling Investments Under Equity Method Investments (Parenthetical) (Detail) (Common Stock [Member]) | Dec. 20, 2013 |
Common Stock [Member] | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Number of Common stock purchased | 500,000 |
Investments_in_Unconsolidated_4
Investments in Unconsolidated Entities - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 20, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 06, 2013 | Dec. 20, 2013 | Nov. 18, 2013 | Dec. 06, 2013 | |
Common Stock [Member] | Landmark at Waverly Place, LLC [Member] | Landmark at Waverly Place, LLC [Member] | The Fountains - Palm Beach Gardens, FL [Member] | The Fountains - Palm Beach Gardens, FL [Member] | The Fountains - Palm Beach Gardens, FL [Member] | Equity Method Investments [Member] | Elco Landmark [Member] | Elco Landmark at Garden Square Management, LLC [Member] | |||
Landmark at Waverly Place, LLC [Member] | Landmark at Garden Square, LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Difference between carrying value of initial investment and underlying equity | ' | ' | ' | $471,000 | $645,000 | ' | ' | $2,200,000 | ' | ' | ' |
Non-controlling interest by non-controlling owners in Joint Venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% |
Controlling interest by controlling owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | 80.00% |
Unamortized investments in unconsolidated entities | ' | ' | ' | ' | ' | 854,000 | 2,000,000 | ' | ' | ' | ' |
Number of Common stock purchased | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investments, cash considerations | $9,442,000 | $11,156,000 | ' | ' | ' | $3,527,000 | $4,998,000 | ' | $5,000,000 | ' | ' |
Limited partnership interests owned | 7.60% | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identified_Intangible_Assets_N2
Identified Intangible Assets, Net - Identified Intangible Assets, Net (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total identified intangible assets, net | $20,185 | $35,849 |
Trade names and Trade marks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified indefinite intangible assets, net | 200 | 200 |
Disposition fee rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | ' | 284 |
In-place leases [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | 2,797 | 16,662 |
Property Management Contracts [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Identified intangible assets, net | $17,188 | $18,703 |
Identified_Intangible_Assets_N3
Identified Intangible Assets, Net - Identified Intangible Assets, Net (Parenthetical) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
In-place leases [Member] | In-place leases [Member] | Property Management Contracts [Member] | Property Management Contracts [Member] | Landmark at Spring Creek - Garland, TX [Member] | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Accumulated amortization | ' | ' | $8,200,000 | $39,100,000 | $3,700,000 | $2,200,000 | ' |
Weighted average remaining life | ' | ' | '3 months 3 days | '3 months 18 days | '166 months 6 days | '165 months 9 days | ' |
Disposition fee right intangible | $671,000 | $1,231,000 | ' | ' | ' | ' | $284,000 |
Identified_Intangible_Assets_N4
Identified Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' | ' |
Net lease intangibles liability | $201,000 | ' | $201,000 | ' | $870,000 |
Amortization expense | $8,700,000 | $4,700,000 | $26,400,000 | $9,300,000 | ' |
Debt_Mortgage_Loan_Payable_Net
Debt - Mortgage Loan Payable, Net (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Participating Mortgage Loans [Line Items] | ' | ' |
Mortgage loan payables | $1,008,768 | $827,465 |
Premium, net | 9,901 | 10,969 |
Total mortgage loan payables | 1,018,669 | 838,434 |
Credit Facility | 160,688 | 145,200 |
Line of credit | 3,902 | ' |
Total secured fixed and variable rate debt, net | 1,183,259 | 983,634 |
Unsecured notes payable to affiliates | 5,784 | 5,784 |
Fixed Rate Mortgage Debt [Member] | ' | ' |
Participating Mortgage Loans [Line Items] | ' | ' |
Mortgage loan payables | 755,843 | 652,345 |
Variable Rate Mortgage Debt [Member] | ' | ' |
Participating Mortgage Loans [Line Items] | ' | ' |
Mortgage loan payables | $252,925 | $175,120 |
Debt_Scheduled_Payments_and_Ma
Debt - Scheduled Payments and Maturities of Mortgage Loan Payables, Net, Unsecured Note Payables and Credit Facility (Detail) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Secured Notes Payment [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
2014 | $7,755 |
2015 | 12,994 |
2016 | 11,485 |
2017 | 9,872 |
2018 | 8,384 |
Thereafter | 42,340 |
Secured Note Payments, Total | 92,830 |
Secured Notes Maturities [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
2014 | 7,639 |
2015 | 331,089 |
2016 | 223,117 |
2017 | 99,726 |
2018 | 105,210 |
Thereafter | 313,747 |
Secured notes maturities, Total | 1,080,528 |
Unsecured Notes Maturities [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
2014 | ' |
2015 | 500 |
2016 | ' |
2017 | ' |
2018 | 5,284 |
Thereafter | ' |
Unsecured notes maturities, Total | $5,784 |
Debt_Scheduled_Payments_and_Ma1
Debt - Scheduled Payments and Maturities of Mortgage Loan Payables, Net, Unsecured Note Payables and Credit Facility (Parenthetical) (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
First quarter of 2015 [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Maturing debt | 187,400 |
Second quarter of 2015 [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Maturing debt | 67,200 |
March 7, 2015 [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Maturing debt | 159,200 |
Variable Rate Secured Credit Facility [Member] | Credit Facility [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Credit Agreement, maturity date | 7-Mar-15 |
Credit Agreement, maturity date if extended | 7-Mar-16 |
Fourth Quarter Of 2014 [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Maturing debt | 7,700 |
Third quarter of 2014 [Member] | ' |
Notes payable and other borrowings [Line Items] | ' |
Maturing debt | 0 |
Debt_Mortgage_Loan_Payables_Ne
Debt - Mortgage Loan Payables, Net - Additional Information (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
MortgageLoan | MortgageLoan | |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Mortgage loan payables, net of discount or premium | $1,018,669 | $838,434 |
Mortgage loan payables before discount | 1,008,768 | 827,465 |
Mortgage loan payables before discount | 1,011,329 | 838,434 |
Mortgage Loan Payables, Net [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Mortgage loan payables, net of discount or premium | 1,018,669 | 838,434 |
Mortgage loan payables before discount | 1,008,768 | 827,465 |
Number of mortgage loans, fixed rate | 55 | 47 |
Number of mortgage loans, variable rate | 12 | 10 |
Interest rate, minimum | 2.16% | 2.37% |
Interest rate, maximum | 6.58% | 6.58% |
Weighted average interest rate | 4.61% | 4.70% |
Mortgage Loan Payables, Net [Member] | Fixed Rate Mortgage Debt [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Mortgage loan payables, net of discount or premium | 765,700 | 663,300 |
Weighted average interest rate | 5.25% | 5.18% |
Mortgage loan payables before discount | 755,800 | 652,300 |
Percentage of Mortgage loans payable, net | 75.20% | 79.10% |
Mortgage Loan Payables, Net [Member] | Variable Rate Debt [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Mortgage loan payables, net of discount or premium | $252,900 | $175,100 |
Weighted average interest rate | 2.70% | 2.92% |
Percentage of Mortgage loans payable, net | 24.80% | 20.90% |
Mortgage Loan Payables, Net [Member] | Monthly Interest-Only Payment [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Number of mortgage loans | 20 | ' |
Mortgage Loan Payables, Net [Member] | Monthly Principal and Interest Payments [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Number of mortgage loans | 47 | ' |
Debt_Unsecured_Notes_Payable_t
Debt - Unsecured Notes Payable to Affiliates - Additional Information (Detail) (Unsecured Notes Payable to Affiliates [Member], USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||
Jun. 30, 2014 | Dec. 20, 2013 | Mar. 14, 2013 | Dec. 20, 2013 | Mar. 14, 2013 | Sep. 23, 2013 | |
Elrm Transaction Unsecured Note Payable To Affiliate [Member] | Elrm Transaction Unsecured Note Payable To Affiliate [Member] | Elrm Transaction Unsecured Note Payable To Affiliate [Member] | Elrm Transaction Unsecured Note Payable To Affiliate [Member] | ELRM [Member] | ||
Restricted Common Stock [Member] | Unsecured Promissory Note [Member] | Unsecured Promissory Note [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' |
Interest rate on unsecured promissory note | ' | ' | 3.00% | ' | ' | ' |
Notes Payable | ' | ' | ' | ' | $10,000,000 | ' |
Business Acquisition Contingent Consideration Payable | ' | ' | ' | ' | ' | 284,000 |
Payments on unsecured note payable | ' | 5,000,000 | ' | ' | ' | ' |
Payments on unsecured note payable, shares | ' | ' | ' | 613,497 | ' | ' |
Unsecured note payable | $500,000 | ' | ' | ' | ' | ' |
Monthly interest rate | 3.68% | ' | ' | ' | ' | ' |
Debt instrument, maturity date | 3-Aug-15 | ' | ' | ' | ' | ' |
Debt_Credit_Facility_Additiona
Debt - Credit Facility - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Mortgage Loans on Real Estate [Line Items] | ' |
Line of credit facility outstanding amount | $3,902,000 |
Revolving Credit Facility [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Aggregate maximum principal amount | 10,000,000 |
Line of credit facility, available borrowing capacity | 6,100,000 |
Line of credit facility outstanding amount | 3,900,000 |
Line of credit annual interest rate | 3.00% |
Annual interest rate | 3.15% |
Line of credit maturity date | 22-Jan-15 |
Line of credit extended maturity date | 22-Jan-16 |
Revolving Credit Facility [Member] | Lakeways Portfolio [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Cash and equity interest pledged in subsidiaries | 1,500,000 |
Credit Facility [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Secured credit agreement terms | 'The amount available under the Credit Facility is based on the lesser of the following (i) the aggregate commitments of all lenders and (ii) a percentage of the appraised value for all collateral properties. |
Line of credit annual interest rate | 2.75% |
Credit Facility [Member] | Eurodollar [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Annual interest rate | 2.90% |
Principal outstanding | 160,700,000 |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Properties pledged as collateral under credit agreement | 13 |
Aggregate maximum principal amount | 130,000,000 |
Additional borrowing capacity | 50,000,000 |
Line of credit facility outstanding amount | 160,700,000 |
Credit Agreement, maturity date | 7-Mar-15 |
Credit Agreement, maturity date if extended | 7-Mar-16 |
Secured credit interest rate description | 'All borrowings under the Credit Facility bear interest at an annual rate equal to, at our option, (i) the highest of (A) the federal funds rate, plus one-half of 1% and a margin that fluctuates based on our debt yield, (B) the rate of interest as publicly announced from time to time by Bank of America, N.A. as its prime rate, plus a margin that fluctuates based on our debt yield or (C) the Eurodollar Rate (as defined in the credit agreement) for a one-month interest period plus 1% and a margin that fluctuates based upon our debt yield or (ii) the Eurodollar Rate (as defined in the credit agreement) plus a margin that fluctuates based upon our debt yield. |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | Cumulative Non Convertible Series D Preferred Stock [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Preferred stock, par value | $0.01 |
Debt instrument, interest rate percentage | 8.75% |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | Series E Preferred Stock [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Preferred stock, par value | $0.01 |
Debt instrument, interest rate percentage | 9.25% |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | Incremental Credit Facility [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Line of credit facility, available borrowing capacity | $19,300,000 |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | Federal Fund Rate [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Line of credit annual interest rate | 0.50% |
Credit Facility [Member] | Variable Rate Secured Credit Facility [Member] | Eurodollar [Member] | ' |
Mortgage Loans on Real Estate [Line Items] | ' |
Line of credit annual interest rate | 1.00% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Mortgage Loans On Real Estate [Abstract] | ' | ' | ' |
Deferred financing costs, net of accumulated amortization | ' | $13,800,000 | $14,500,000 |
Deferred financing costs, accumulated amortization | ' | 7,700,000 | 4,400,000 |
Prepayment penalties on mortgage loan | $684,000 | ' | ' |
Preferred_Stock_and_Warrants_t1
Preferred Stock and Warrants to Purchase Common Stock - Series D Preferred Stock - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Preferred dividends classified as interest expense | $10,480,000 | $1,497,000 | $20,460,000 | $2,804,000 | ' |
Accretion expense | ' | ' | 3,073,000 | 635,000 | ' |
Series D Preferred Stock [Member] | ' | ' | ' | ' | ' |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Preferred Stock Cumulative Dividend Rate Per Annum | 14.47% | ' | 14.47% | ' | ' |
Preferred stock dividend rate percentage increase | ' | ' | 19.97% | ' | ' |
Preferred dividends classified as interest expense | 7,900,000 | 68,000 | 15,600,000 | 68,000 | ' |
Entitlement to liquidation distributions | $10 | ' | $10 | ' | ' |
Redemption price per share | $10 | ' | $10 | ' | ' |
Preferred stock redemption percentage | ' | ' | 50.00% | ' | 50.00% |
Fair value of derivative liability | 13,500,000 | ' | 13,500,000 | ' | ' |
Accretion expense | 1,000,000 | ' | 2,000,000 | ' | ' |
Fair value, derivative | 6,300,000 | ' | 6,300,000 | ' | 11,100,000 |
Preferred stock outstanding | 0 | ' | 0 | ' | ' |
Cumulative non-convertible redeemable preferred stock | 206,498,000 | ' | 206,498,000 | ' | 209,294,000 |
Series D Preferred Stock [Member] | Derivative [Member] | ' | ' | ' | ' | ' |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Decrease in fair value | ($5,700,000) | $0 | ($4,800,000) | $0 | ' |
Series D Preferred Stock [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Preferred stock redemption percentage | ' | ' | 50.00% | ' | ' |
Series D Preferred Stock [Member] | Current Dividend [Member] | ' | ' | ' | ' | ' |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Preferred Stock Cumulative Dividend Rate Per Annum | 8.75% | ' | 8.75% | ' | ' |
Preferred stock dividend rate percentage increase | ' | ' | 11.00% | ' | ' |
Series D Preferred Stock [Member] | iStar and BREDS [Member] | ' | ' | ' | ' | ' |
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' |
Preferred stock issued, shares | 20,976,300 | ' | 20,976,300 | ' | ' |
Price per share | $10 | ' | $10 | ' | ' |
Preferred_Stock_and_Warrants_t2
Preferred Stock and Warrants to Purchase Common Stock - Series E Preferred Stock - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jan. 07, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 04, 2014 | Jan. 07, 2014 | Jun. 04, 2014 | Jun. 04, 2014 | Jan. 07, 2014 | Jun. 04, 2014 | |
Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | Series E Preferred Stock [Member] | |||||
Derivative [Member] | Derivative [Member] | Minimum [Member] | Current Dividend [Member] | iStar [Member] | iStar [Member] | iStar [Member] | BREDS [Member] | BREDS [Member] | BREDS [Member] | |||||||||||
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,800,000 | 600,000 | ' | 6,800,000 | 600,000 |
Price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10 | ' | $10 | $10 |
Stock issued, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,000,000 | $68,000,000 | ' | $6,000,000 | $68,000,000 | ' |
Stock issued, shares | ' | ' | ' | ' | ' | ' | 7,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock Cumulative Dividend Rate Per Annum | ' | ' | ' | ' | 14.47% | ' | 14.47% | ' | ' | ' | ' | ' | ' | 9.25% | ' | ' | ' | ' | ' | ' |
Preferred stock dividend rate percentage increase | ' | ' | ' | ' | ' | ' | 19.97% | ' | ' | ' | ' | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' |
Preferred dividends classified as interest expense | 10,480,000 | 1,497,000 | 20,460,000 | 2,804,000 | 2,600,000 | 0 | 4,900,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entitlement to liquidation distributions | ' | ' | ' | ' | $10 | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption date | ' | ' | ' | ' | ' | ' | 28-Jun-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption extension period | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price per share | ' | ' | ' | ' | $10 | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption percentage | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion expense | ' | ' | 3,073,000 | 635,000 | 535,000 | 0 | 1,100,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock outstanding | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative non-convertible redeemable preferred stock | ' | ' | ' | ' | 73,669,000 | ' | 73,669,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value, derivative | ' | ' | ' | ' | 4,600,000 | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($2,000,000) | ($1,400,000) | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred_Stock_and_Warrants_t3
Preferred Stock and Warrants to Purchase Common Stock - Warrants to Purchase Common Stock - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants [Member] | Warrants to Purchase Common Stock [Member] | Warrants to Purchase Common Stock [Member] | ||
Preferred Securities And Warrants [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Issued non-detachable warrants to purchase aggregate shares of common stock | ' | ' | ' | ' | ' | 6,000,000 | ' |
Class of warrant or right, exercise Price of warrants or rights | ' | ' | ' | ' | ' | $9 | ' |
Public offering price of common stock | ' | ' | ' | ' | ' | 80.00% | ' |
Warrant exercisable period | ' | ' | ' | ' | ' | '60 days | ' |
Close of business date after the completion of IPO | ' | ' | ' | ' | ' | '60 days | ' |
Liability related to non-detachable warrants | ' | ' | ' | ' | ' | $566,000 | $1,800,000 |
Decrease in fair value | ($11,777,000) | ($473,000) | ($323,050) | ($1,223,000) | ($361,000) | ' | ' |
Preferred_Stock_and_Warrants_t4
Preferred Stock and Warrants to Purchase Common Stock - Loss on Preferred Stock Extinguishment - Additional Information (Detail) (USD $) | 0 Months Ended |
Jun. 28, 2013 | |
Equity [Abstract] | ' |
Loss on extinguishment of preferred stock | $9,500,000 |
Extinguishment of preferred stock, prepayment penalty | 6,400,000 |
Extinguishment of preferred stock, write off of unamortized financing costs | 2,500,000 |
Extinguishment of preferred stock, redemption fee | $600,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Mar. 14, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 04, 2014 | Aug. 03, 2012 | Jun. 04, 2014 | Aug. 03, 2012 | Aug. 03, 2012 |
Property | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | Andros Isles Property Acquisition [Member] | Andros Isles Property Acquisition [Member] | Andros Isles Property Acquisition [Member] | Andros Isles Property Acquisition [Member] | Andros Isles Property Acquisition [Member] | |
Other Payable Due To Affiliate [Member] | Promissory note payable in operating Partnership [Member] | Property | Property | Multi Family Apartment [Member] | ||||||||||
Property | ||||||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating partnership | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' |
Estimated fair value | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition contingent consideration reduced | ' | ' | ' | ' | ' | ' | 2,000,000 | 276,000 | ' | ' | ' | ' | ' | ' |
Restricted units value of limited partnership | ' | ' | 1,100,000 | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate consideration as promissory notes payable | ' | ' | 284,000 | ' | 284,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable due to affiliate | ' | ' | 568,000 | ' | 568,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to fair value calculation | ' | ' | ' | ' | ' | ' | 715,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of consideration paid in restricted limited partnership units | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of consideration paid in promissory notes | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to fair value of contingent consideration | ' | ' | 0 | ' | 0 | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' |
Changes in fair value recorded in general, administrative and other expenses | ' | ' | 1,300,000 | 479,000 | 3,800,000 | 479,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22 | ' |
Number of apartment units | 24,045 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | 360 |
Number of undeveloped land acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Aggregate consideration value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' |
Acquisition contingent consideration payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' |
Consideration in limited partnership unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,300,000 | ' | ' | ' | ' |
Contingent consideration net of cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,200,000 | ' | ' | ' | ' |
Contingent consideration assumed mortgage loan payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,500,000 | ' | ' |
Acquisition contingent consideration, Estimated fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,700,000 | ' | ' |
Business acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4-Jun-14 | ' | ' | ' | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Property | Class A Units [Member] | Commitments [Member] | Andros Isles Property Acquisition [Member] | Contributed Properties [Member] | Contributed Properties [Member] | Other Properties [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | ELRM [Member] | Minimum [Member] | Maximum [Member] | ||||||
Class A Units [Member] | Property | ELRM [Member] | ELRM [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease term | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate lease rental | $165,000 | ' | ' | $165,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties | ' | ' | 34 | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fees equal to gross receipts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management support fees | 0 | 0 | ' | 0 | 418,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | 100.00% |
Costs reimbursed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 218,000 | 163,050 | 549,000 | 163,050 | ' | ' | ' | ' | ' |
Number of stock units purchased | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of consideration paid | ' | ' | ' | ' | ' | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership units issued, acquisition | ' | ' | ' | 34,638,356 | ' | ' | ' | ' | 1,263,725 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership units value issued, acquisition | ' | ' | ' | 282,300,000 | ' | ' | ' | ' | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other receivables due from affiliates | 2,182,000 | ' | ' | 2,182,000 | ' | 2,544,000 | ' | ' | ' | ' | ' | ' | 2,182,000 | ' | 2,182,000 | ' | 2,544,000 | ' | ' | ' | ' |
Accounts payable due to affiliates, net | $1,334,000 | ' | ' | $1,334,000 | ' | $915,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,334,000 | $915,000 | ' | ' |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 14, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Redeemable Non- Controlling Interests in Operating Partnership [Member] | Redeemable Non- Controlling Interests in Operating Partnership [Member] | Follow-on offering [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted LTIP Units [Member] | Independent Directors [Member] | 2006 Award Plan and 2012 Award Plan [Member] | 2006 Incentive Award Plan [Member] | 2006 Incentive Award Plan [Member] | 2006 Incentive Award Plan [Member] | 2006 Incentive Award Plan [Member] | Series D Preferred Stock [Member] | Series D Preferred Stock [Member] | Series E Preferred Stock [Member] | |||||
Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | |||||||||||||||
Stockholders Equity Note Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 50,000,000 | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,976,300 | 20,976,300 | 7,400,000 |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,976,300 | 20,976,300 | 7,400,000 |
Common stock, shares authorized | ' | 300,000,000 | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares issued | ' | 25,516,036 | ' | 25,182,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding | ' | 25,516,036 | ' | 25,182,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock distributions reinvestment, shares | ' | ' | ' | ' | ' | ' | 133,810 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,038 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares forfeited | ' | 800 | ' | ' | ' | ' | ' | ' | ' | ' | 800 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock distributions per share | ' | $0.30 | ' | $0.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares excluded from computation of diluted earnings per share | ' | 192,916 | ' | 7,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum DRIP reinvestment shares | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price for shares under the Amended and Restated DRIP | $8.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock distributions reinvestment, amount | ' | $1,090,000 | $930,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Limited Partnership Units issued | ' | 25,648 | ' | ' | 41,429,634 | 33,450,957 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited partnership units for a total consideration | ' | 337,700,000 | ' | 272,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional limited partnership units to The Elco Parties | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years restricted limited partnership subject to vesting and cancellation | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term incentive plan issued | ' | 818,602 | ' | 720,322 | ' | ' | ' | ' | ' | 256,042 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense of restricted stock | ' | 1,317,000 | 193,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 154,000 | 13,000 | 168,000 | 18,000 | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 54,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense, recognition period | ' | ' | ' | ' | ' | ' | ' | '3 years 9 months 26 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of restricted common stock | ' | $1,600,000 | ' | $60,310 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average price per share of restricted stock | ' | $8.15 | ' | $8.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity_Status_of_Nonvested_Sha
Equity - Status of Nonvested Shares of Restricted Common Stock (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Restricted Common Stock, Beginning Balance | 7,400 |
Restricted Common Stock, Granted | 200,038 |
Restricted Common Stock, Vested | -13,722 |
Restricted Common Stock, Forfeited | -800 |
Restricted Common Stock, Ending Balance | 192,916 |
Weighted Average Grant Date Fair Value, Beginning Balance | $9 |
Weighted Average Grant Date Fair Value, Granted | $8.15 |
Weighted Average Grant Date Fair Value, Vested | $8.15 |
Weighted Average Grant Date Fair Value, Forfeited | $8.15 |
Weighted Average Grant Date Fair Value, Ending Balance | $8.18 |
NonControlling_Interests_Addit
Non-Controlling Interests - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 25,648 | ' | 25,648 | ' | ' |
Capital accounts distribution reinvested | ' | ' | $209,000 | ' | ' |
Capital accounts distribution units issued | ' | ' | 25,648 | ' | ' |
Non-controlling interest | 27,694,000 | ' | 27,694,000 | ' | 3,896,000 |
Net (income)/loss attributable to non-controlling interest | -112,000 | 0 | 1,371,000 | 0 | ' |
Landmark Properties Acquisition [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 1,252,245 | ' | 1,252,245 | ' | ' |
Lake Village And Laurel Heights [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 3,425,900 | ' | 3,425,900 | ' | ' |
Landmark at Bella Vista - Duluth, GA [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 894,183 | ' | 894,183 | ' | ' |
Landmark at Maple Glen - Orange Park, FL [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 1,116,976 | ' | 1,116,976 | ' | ' |
Landmark at Andros Isles - Daytona Beach, FL [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 1,263,725 | ' | 1,263,725 | ' | ' |
Redeemable Non- Controlling Interests in Operating Partnership [Member] | ' | ' | ' | ' | ' |
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Limited partnership units issued | 41,429,634 | ' | 41,429,634 | ' | 33,450,957 |
Limited partnership units for a total consideration | 337,700,000 | ' | 337,700,000 | ' | 272,600,000 |
Limited partnership units redemption value | $337,700,000 | ' | $337,700,000 | ' | ' |
Controlling ownership interest percent | 37.70% | ' | 37.70% | ' | 42.40% |
Non controlling ownership interest percent | 62.30% | ' | 62.30% | ' | 57.60% |
Fair_Value_of_Derivatives_and_2
Fair Value of Derivatives and Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' | ' | ' | ' |
Interest Expense in Fair Value | $208,000 | $28,000 | $305,000 | $55,000 |
Gains losses on hedging derivatives qualifying as cash flow hedges | 408,000 | 310,000 | 686,000 | 310,000 |
Change in fair value of instrument not designated as hedging instrument | $370,000 | ' | $370,000 | ' |
Fair_Value_of_Derivatives_and_3
Fair Value of Derivatives and Financial Instruments - Summary of Derivative Arrangements (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Non-designated Hedges [Member] | Interest Rate Caps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional balance | 102,065 | 102,065 |
Weighted average interest rate | 2.81% | 2.81% |
Weighted average capped interest rate | 3.68% | 3.68% |
Estimated fair value, asset/(liability), net | 173 | 478 |
Non-designated Hedges [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional balance | 58,800 | ' |
Weighted average interest rate | 2.17% | ' |
Weighted average capped interest rate | ' | ' |
Estimated fair value, asset/(liability), net | -1,726 | ' |
Non-designated Hedges [Member] | Minimum [Member] | Interest Rate Caps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2015-03 | '2015-03 |
Non-designated Hedges [Member] | Minimum [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2018-09 | ' |
Non-designated Hedges [Member] | Maximum [Member] | Interest Rate Caps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2018-07 | '2018-07 |
Non-designated Hedges [Member] | Maximum [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2018-09 | ' |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Notional balance | 32,100 | 32,100 |
Weighted average interest rate | 2.38% | 2.38% |
Weighted average capped interest rate | ' | ' |
Estimated fair value, asset/(liability), net | -1,036 | -350 |
Cash Flow Hedges [Member] | Minimum [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2020-07 | '2020-07 |
Cash Flow Hedges [Member] | Maximum [Member] | Interest Rate Swaps [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Maturity date | '2020-08 | '2020-08 |
Fair_Value_of_Derivatives_and_4
Fair Value of Derivatives and Financial Instruments - Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | $1,018,669 | $838,434 |
Credit Facility | 160,688 | 145,200 |
Line of credit | 3,902 | ' |
Warrants | 14,166 | 16,919 |
Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Warrants | 4,600 | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | ' | ' |
Unsecured notes payable to affiliates | ' | ' |
Credit Facility | ' | ' |
Acquisition contingent consideration | ' | ' |
Line of credit | ' | ' |
Warrants | ' | ' |
Liabilities at fair value | ' | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ELRM [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | ' | ' |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | 1,062,380 | 858,658 |
Unsecured notes payable to affiliates | ' | ' |
Credit Facility | 160,728 | 145,247 |
Acquisition contingent consideration | ' | ' |
Line of credit | 3,914 | ' |
Warrants | ' | ' |
Liabilities at fair value | 1,227,022 | 1,003,905 |
Significant Other Observable Inputs (Level 2) [Member] | ELRM [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | ' | ' |
Unsecured notes payable to affiliates | 5,784 | 5,784 |
Credit Facility | ' | ' |
Acquisition contingent consideration | ' | 4,030 |
Line of credit | ' | ' |
Warrants | 566 | 1,789 |
Liabilities at fair value | 19,950 | 22,703 |
Significant Unobservable Inputs (Level 3) [Member] | ELRM [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | 2,700 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | 6,300 | 11,100 |
Significant Unobservable Inputs (Level 3) [Member] | Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | 4,600 | ' |
Fair Value Estimate [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | 1,062,380 | 858,658 |
Unsecured notes payable to affiliates | 5,784 | 5,784 |
Credit Facility | 160,728 | 145,247 |
Acquisition contingent consideration | ' | 4,030 |
Line of credit | 3,914 | ' |
Warrants | 566 | 1,789 |
Liabilities at fair value | 1,246,972 | 1,026,608 |
Fair Value Estimate [Member] | ELRM [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Fair Value Estimate [Member] | Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | 2,700 | ' |
Fair Value Estimate [Member] | Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | 6,300 | 11,100 |
Fair Value Estimate [Member] | Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | 4,600 | ' |
Carrying Value [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Mortgage loan payables, net | 1,018,669 | 838,434 |
Unsecured notes payable to affiliates | 5,784 | 5,784 |
Credit Facility | 160,688 | 145,200 |
Acquisition contingent consideration | ' | 4,030 |
Line of credit | 3,902 | ' |
Warrants | 566 | 1,789 |
Liabilities at fair value | 1,203,209 | 1,006,337 |
Carrying Value [Member] | ELRM [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ' | ' |
Carrying Value [Member] | Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | 2,700 | ' |
Carrying Value [Member] | Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | 6,300 | 11,100 |
Carrying Value [Member] | Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Preferred stock derivative | $4,600 | ' |
Fair_Value_of_Derivatives_and_5
Fair Value of Derivatives and Financial Instruments - Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Andros Isles [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Fair value inputs and assumptions related to net operating income basis period | '4 years | ' |
Series D Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Redemption of Series D Preferred Stock | 50.00% | 50.00% |
Series E Preferred Stock [Member] | ' | ' |
Fair Value Assets Liabilities Measured On Recurring Basis [Line Items] | ' | ' |
Redemption of Series D Preferred Stock | 50.00% | ' |
Fair_Value_of_Derivatives_and_6
Fair Value of Derivatives and Financial Instruments - Reconciliation of Fair Value of Acquisition Contingent Consideration and Warrant Liability Measured on Recurring Basis (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $16,919,000 | ' |
Additions | 8,700,000 | ' | 8,700,000 | ' |
Change due to liability realized | ' | ' | -276,000 | ' |
Changes in fair value | ' | ' | -11,777,000 | ' |
Ending Balance | 14,166,000 | ' | 14,166,000 | ' |
Warrants [Member] | ' | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,789,000 | ' |
Additions | ' | ' | ' | ' |
Change due to liability realized | ' | ' | ' | ' |
Changes in fair value | -473,000 | -323,050 | -1,223,000 | -361,000 |
Ending Balance | 566,000 | ' | 566,000 | ' |
Series E Preferred Stock [Member] | ' | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' |
Additions | 6,000,000 | ' | 6,000,000 | ' |
Change due to liability realized | ' | ' | ' | ' |
Changes in fair value | ' | ' | -1,400,000 | ' |
Ending Balance | 4,600,000 | ' | 4,600,000 | ' |
Series D Preferred Stock Derivative [Member] | ' | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 11,100,000 | ' |
Additions | ' | ' | ' | ' |
Change due to liability realized | ' | ' | ' | ' |
Changes in fair value | ' | ' | -4,800,000 | ' |
Ending Balance | 6,300,000 | ' | 6,300,000 | ' |
Andros Isles [Member] | Acquisition Contingent Consideration [Member] | ' | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' |
Additions | 2,700,000 | ' | 2,700,000 | ' |
Change due to liability realized | ' | ' | ' | ' |
Changes in fair value | ' | ' | ' | ' |
Ending Balance | 2,700,000 | ' | 2,700,000 | ' |
ELRM [Member] | Acquisition Contingent Consideration [Member] | ' | ' | ' | ' |
Fair Value Measurement [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 4,030,000 | ' |
Additions | ' | ' | ' | ' |
Change due to liability realized | ' | ' | -276,000 | ' |
Changes in fair value | ' | ' | -3,754,000 | ' |
Ending Balance | ' | ' | ' | ' |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property | 2013 Property Acquisitions [Member] | 2014 Property Acquisitions [Member] | 2014 Property Acquisitions [Member] | Consolidated Joint Ventures [Member] | ELRM Acquisition [Member] | |||||
Property | Property | Property | Property | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of total properties | ' | ' | ' | ' | 38 | 12 | ' | 13 | 6 | ' |
Additions of apartment units | ' | ' | ' | ' | ' | 3,012 | 4,757 | 4,757 | ' | ' |
Aggregate purchase price | $367,883,000 | ' | $367,883,000 | ' | ' | $241,500,000 | $367,900,000 | $367,900,000 | ' | ' |
Acquisition-related expenses | -1,707,000 | 1,632,000 | 2,011,000 | 2,640,000 | ' | 1,100,000 | 117,000 | 2,000,000 | ' | 175,000 |
Correction of immaterial error | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Acquisition-related expense, reimbursement | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | 6,300,000 | ' | 19,900,000 | ' | 1,600,000 |
Net Income (loss) | ' | ' | ' | ' | ' | ($1,100,000) | ' | ($6,700,000) | ' | ($327,000) |
Business_Combinations_Fair_Val
Business Combinations - Fair Value of Assets Acquired and Liabilities Assumed at Time of Acquisition (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | 2013 Property Acquisitions [Member] | 2014 Property Acquisitions [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Land | ' | ' | $39,649 | $56,382 |
Land improvements | ' | ' | 19,497 | 3,910 |
Building and improvements | ' | ' | 170,361 | 292,242 |
Furniture, fixtures and equipment | ' | ' | 4,279 | 6,100 |
In-place leases | ' | ' | 6,745 | 11,081 |
(Above)/below market leases | ' | ' | ' | -1,182 |
Fair market value of assumed debt | ' | ' | -33,915 | -181,118 |
Acquisition contingent consideration | -2,700 | -4,030 | ' | -2,700 |
Other assets/liabilities, net | ' | ' | -1,912 | -620 |
Total | ' | ' | 204,704 | 184,095 |
Equity/limited partnership unit consideration | ' | ' | -33,677 | -91,304 |
Net cash consideration | ' | ' | $171,027 | $92,791 |
Business_Combinations_Fair_Val1
Business Combinations - Fair Value of Assets Acquired and Liabilities Assumed at Time of Acquisition (Parenthetical) (Detail) (USD $) | Jun. 30, 2014 |
Business Combinations [Abstract] | ' |
Net Below market debt adjustment | $652,000 |
Business_Combinations_Fair_Val2
Business Combinations - Fair Value of Property Management Business (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ' | ' |
Goodwill | $9,198,000 | $9,679,000 |
Total purchase price | 367,883,000 | ' |
Acquisition contingent consideration | -2,700,000 | -4,030,000 |
Property Management Business [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Furniture, fixtures and equipment | 81,000 | ' |
Other assets, net | 631,000 | ' |
Identified intangible assets, net | 21,070,000 | ' |
Goodwill | 9,198,000 | ' |
Total purchase price | 30,980,000 | ' |
Accounts payable and accrued liabilities | -196,000 | ' |
Unsecured notes payable to affiliate | -10,000,000 | ' |
Limited partnership units | -9,839,000 | ' |
Acquisition contingent consideration | -6,734,000 | ' |
Deferred tax liability, net | -4,211,000 | ' |
Cash paid | $0 | ' |
Business_Combinations_Fair_Val3
Business Combinations - Fair Value of Property Management Business (Parenthetical) (Detail) (USD $) | 3 Months Ended | |||
Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | |
Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Increase (decrease) in goodwill | $481,000 | ($1,000,000) | $3,300,000 | ' |
Decrease to identified intangible assets | ' | ' | 3,300,000 | ' |
Decrease in deferred tax liability, net | ' | $1,000,000 | ' | ' |
Limited partnership units forfeited due to error correction | ' | ' | ' | 58,965 |
Business_Combinations_Pro_Form
Business Combinations - Pro Forma Revenues, Net Loss, Net Loss Attributable to Controlling Interest and Net Loss Per Common Share Attributable to Controlling Interest - Basic and Diluted (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Business Combinations [Abstract] | ' | ' | ' | ' |
Revenues | $66,439 | $65,141 | $130,708 | $126,591 |
Net loss | -254 | -20,005 | -27,495 | -24,390 |
Net loss attributable to controlling interest | ($99) | ($10,097) | ($10,668) | ($12,310) |
Net loss per common share attributable to controlling interest - basic and diluted | ($0.01) | ($0.46) | ($0.42) | ($0.58) |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2013 | Jul. 17, 2014 | Jul. 17, 2014 | Jul. 17, 2014 | Jul. 28, 2014 | |
Property | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Declaration of Distributions [Member] | Declaration of Distributions [Member] | Declaration of Distributions [Member] | Villa Tuscany Apartments [Member] | ||
Distribution One [Member] | Distribution Two [Member] | Apartment | |||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' |
Authorized distribution | ' | $0.03 | ' | ' | ' |
Annualized distribution | ' | ' | 3.00% | 3.68% | ' |
Stock purchase price per share | ' | ' | $10 | $8.15 | ' |
Acquisition of total properties | 38 | ' | ' | ' | 342 |