Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Resource Real Estate Opportunity REIT, Inc. | ' |
Entity Central Index Key | '0001466225 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 55,488,025 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments: | ' | ' |
Rental properties, net | $307,959 | $121,098 |
Loans held for investment, net | 1,753 | 11,109 |
Identified intangible assets, net | 3,880 | 1,641 |
Assets of discontinued operations | 149 | 9,127 |
Investments | 313,741 | 142,975 |
Cash | 58,606 | 29,336 |
Restricted cash | 3,267 | 158 |
Stock subscriptions receivable | 1,700 | 3,038 |
Due from related parties | 466 | 0 |
Tenant receivables, net | 373 | 110 |
Deposits | 1,147 | 409 |
Prepaid expenses and other assets | 1,600 | 935 |
Deferred financing costs, net | 865 | 561 |
Deferred offering costs | 0 | 3,015 |
Total assets | 381,765 | 180,537 |
Liabilities: | ' | ' |
Mortgage notes payable | 17,086 | 9,043 |
Revolving credit facility | 760 | 760 |
Accounts payable | 3,275 | 591 |
Accrued expenses and other liabilities | 5,797 | 2,826 |
Due to related parties | 1,462 | 671 |
Tenant prepayments | 500 | 306 |
Security deposits | 1,451 | 815 |
Distribution payable | 1,536 | 1,671 |
Liabilities of discontinued operations | 36 | 536 |
Total liabilities | 31,903 | 17,219 |
Stockholders’ equity: | ' | ' |
Preferred stock (par value $.01; 10,000,000 shares authorized, none issued) | 0 | 0 |
Common stock (par value $.01; 1,000,000,000 shares authorized; 46,581,720 and 22,291,810 shares issued, respectively; and 46,539,509 and 22,277,030 shares outstanding, respectively) | 465 | 223 |
Convertible stock (par value $.01; 50,000 shares authorized, issued and outstanding) | 1 | 1 |
Additional paid-in capital | 410,231 | 196,089 |
Accumulated deficit | -60,835 | -32,995 |
Total stockholders’ equity | 349,862 | 163,318 |
Total liabilities and stockholders’ equity | $381,765 | $180,537 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Shares Issued | 46,581,720 | 22,291,810 |
Common stock, outstanding (in shares) | 46,539,509 | 22,277,030 |
Convertible stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible stock, authorized (in shares) | 50,000 | 50,000 |
Convertible stock, issued (in shares) | 50,000 | 50,000 |
Convertible stock, outstanding (in shares) | 50,000 | 50,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental income | $11,026 | $4,834 | $26,335 | $9,167 |
Gain on foreclosures | 0 | 56 | 67 | 571 |
Interest income | 73 | 32 | 188 | 135 |
Total revenues | 11,099 | 4,922 | 26,590 | 9,873 |
Expenses: | ' | ' | ' | ' |
Rental operating | 7,268 | 3,381 | 17,145 | 6,459 |
Acquisition costs | 3,711 | -115 | 6,228 | 2,757 |
Foreclosure costs | 0 | 0 | 49 | 150 |
Management fees - related parties | 1,210 | 580 | 2,938 | 1,189 |
General and administrative | 1,319 | 688 | 3,805 | 2,271 |
Loss on disposal of assets | 0 | 0 | 36 | 0 |
Depreciation and amortization expense | 5,285 | 2,382 | 11,169 | 3,704 |
Total expenses | 18,793 | 6,916 | 41,370 | 16,530 |
Loss before other (expense) income | -7,694 | -1,994 | -14,780 | -6,657 |
Other (expense) income: | ' | ' | ' | ' |
Gain on redemption of stock | 7 | 0 | 29 | 0 |
Interest expense | -149 | -255 | -396 | -398 |
Insurance proceeds in excess of cost basis | 0 | 0 | 0 | 5 |
Loss from continuing operations | -7,836 | -2,249 | -15,147 | -7,050 |
Discontinued operations: | ' | ' | ' | ' |
(Loss) income from discontinued operations | -24 | -111 | -696 | 819 |
Net gain on disposition | 0 | 0 | 3,173 | 0 |
(Loss) income from discontinued operations, net | -24 | -111 | 2,477 | 819 |
Net loss | -7,860 | -2,360 | -12,670 | -6,231 |
Comprehensive loss | ($7,860) | ($2,360) | ($12,670) | ($6,231) |
Weighted average common shares outstanding (in shares) | 36,156 | 15,953 | 33,055 | 12,979 |
Basic and diluted loss per common share: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | ($0.22) | ($0.14) | ($0.46) | ($0.54) |
Discontinued operations (in dollars per share) | $0 | ($0.01) | $0.08 | $0.06 |
Net loss (in dollars per share) | ($0.22) | ($0.15) | ($0.38) | ($0.48) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Convertible Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2012 | $163,318,000 | $223,000 | $1,000 | $196,089,000 | ($32,995,000) |
Balance (in shares) at Dec. 31, 2012 | 22,277,030 | 22,277,000 | 50,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Issuance of common stock | 229,301,000 | 230,000 | ' | 229,071,000 | ' |
Issuance of common stock (in shares) | ' | 23,045,000 | ' | ' | ' |
Common stock issued through distribution reinvestment plan | 6,258,000 | 7,000 | ' | 6,251,000 | ' |
Proceeds from distribution reinvestment plan (in shares) | ' | 659,000 | ' | ' | ' |
Syndication costs | -26,788,000 | ' | ' | -26,788,000 | ' |
Distributions of common stock | 0 | 6,000 | ' | 5,890,000 | -5,896,000 |
Distributions of common stock (in shares) | ' | 589,000 | ' | ' | ' |
Distributions declared | -9,274,000 | ' | ' | ' | -9,274,000 |
Share redemptions | -283,000 | -1,000 | 0 | -282,000 | ' |
Share redemptions (in shares) | ' | -31,000 | 0 | ' | ' |
Net loss and comprehensive loss | -12,670,000 | ' | ' | ' | -12,670,000 |
Balance at Sep. 30, 2013 | $349,862,000 | $465,000 | $1,000 | $410,231,000 | ($60,835,000) |
Balance (in shares) at Sep. 30, 2013 | 46,539,509 | 46,539,000 | 50,000 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($12,670) | ($6,231) |
Loss (income) from discontinued operations | 696 | -819 |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Gain on foreclosures | -67 | -642 |
Loss on disposal of assets | 36 | 0 |
Loss on property impairment | 539 | 0 |
Net gain on disposition | -3,173 | 0 |
Depreciation and amortization | 11,169 | 3,704 |
Amortization of deferred financing costs | 158 | 133 |
Accretion of discount and direct loan fees and costs | -9 | -10 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Restricted cash | -3,109 | 359 |
Tenant receivables, net | -263 | -84 |
Deposits | -738 | -196 |
Prepaid expenses and other assets | -1,016 | -480 |
Due to related parties, net | 791 | -2,558 |
Accounts payable and accrued expenses | 4,914 | 3,407 |
Tenant prepayments | 107 | 42 |
Security deposits | 186 | 103 |
Net cash used in operating activities of continuing operations | -2,449 | -3,272 |
Cash flows from investing activities: | ' | ' |
Property acquisitions | -168,663 | -52,401 |
Proceeds from disposal of properties, net of closing costs | 10,043 | 0 |
Loan acquisitions | 0 | -10,300 |
Capital expenditures | -20,203 | -9,568 |
Principal payments received on loan | 14 | 321 |
Cash received on foreclosure of loans held for investment | 0 | 518 |
Net cash used in investing activities of continuing operations | -178,809 | -71,430 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock, net of redemptions | 230,363 | 84,192 |
Payment of deferred financing costs | -247 | -118 |
Payment of deferred offering costs | 2,800 | 0 |
Increase in borrowings | 8,190 | 23,483 |
Principal payments on borrowings | -147 | -13,312 |
Distributions paid on common stock | -3,153 | -841 |
Syndication costs | -26,788 | -10,220 |
Net cash provided by financing activities of continuing operations | 211,018 | 83,184 |
Net cash provided by continuing operations | 29,760 | 8,482 |
Cash flows from discontinued operations: | ' | ' |
Net cash (used in) provided by operating activities | -490 | 1,168 |
Net cash used in investing activities | 0 | -281 |
Net cash (used in) provided by discontinued operations | -490 | 887 |
Net increase in cash | 29,270 | 9,369 |
Cash at beginning of period | 29,336 | 14,927 |
Cash at end of period | $58,606 | $24,296 |
NATURE_OF_BUSINESS_AND_OPERATI
NATURE OF BUSINESS AND OPERATIONS | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NATURE OF BUSINESS AND OPERATIONS | ' |
NATURE OF BUSINESS AND OPERATIONS | |
Resource Real Estate Opportunity REIT, Inc. (the “Company”) was organized in Maryland on June 3, 2009 to purchase a diversified portfolio of discounted U.S. commercial real estate and real estate-related assets in order to generate gains to stockholders from the potential appreciation in the value of the assets and to generate current income for stockholders by distributing cash flow from the Company’s investments. Resource Real Estate Opportunity Advisor, LLC (the “Advisor”), an indirect wholly owned subsidiary of Resource America, Inc. (“RAI”), a publicly traded company (NASDAQ: REXI) operating in the real estate, financial fund management and commercial finance sectors, has been engaged to manage the day-to-day operations of the Company. The Advisor agreed to invest 1% of the first $250.0 million invested in the Company by non-affiliated investors, or up to $2.5 million. As of September 30, 2013, the Advisor had purchased 276,000 shares of common stock totaling $2.5 million. | |
On September 15, 2009, the Company commenced a private placement offering to accredited investors for the sale of up to 5.0 million shares of common stock at a price of $10 per share. The private offering, which closed on June 9, 2010, raised aggregate gross proceeds of $12.8 million, or $11.3 million, net of $1.5 million in syndication costs, from the issuance of 1,283,727 common shares, including 20,000 shares purchased by the Advisor. In conjunction with the private offering, the Company also offered 5,000 shares of convertible stock at a price of $1.00 per share. Investors acquired 937 shares of the convertible stock and the Advisor purchased 4,063 shares. The Advisor contributed $200,000 to the Company in exchange for 20,000 shares of common stock on June 17, 2009, of which 4,500 shares were exchanged for 45,000 shares of convertible stock in June 2010 (see Note 13). | |
On June 16, 2010, the Company’s registration statement on Form S-11 (File No. 333-160463), registering a primary public offering of up to 75.0 million shares of common stock and a public offering pursuant to the Company’s distribution reinvestment plan of up to an additional 7.5 million shares of common stock, was declared effective under the Securities Act of 1933, as amended, and the Company commenced its public offering. The Company is offering shares of common stock in its ongoing primary offering for $10 per share, with discounts available to certain categories of investors. The Company is also offering shares pursuant to its distribution reinvestment plan at a purchase price equal to $9.50 per share. | |
As of September 30, 2013, the Company has raised $447.5 million in offering proceeds through the issuance of an aggregate of 44,999,826 shares of its $0.01 par value common stock. | |
On May 30, 2013 the Company filed a registration statement on Form S-11 to register a follow-on public offering. Pursuant to the registration statement, the Company proposes to register $350,000,000 of its common stock in a primary offering and $35,000,000 of common stock pursuant to the distribution reinvestment plan. If the follow-on offering commences, the Company expects it to commence no later than the fourth quarter of 2013. In connection with the filing of this follow-on offering registration statement, the Company has determined to continue offering shares in its current offering beyond June 16, 2013. The Company intends to continue offering shares of common stock in its current offering until the earlier of (i) the sale of all $750,000,000 of shares in the primary offering, (ii) December 12, 2013, or (iii) the date the registration statement relating to the Company's proposed follow-on offering is declared effective by the SEC. | |
The Company has acquired, and intends to continue to acquire, real estate-related debt and equity that has been significantly discounted due to the effects of economic events and high levels of leverage, as well as stabilized properties that may benefit from extensive renovations that may increase their long-term values. The Company has a particular focus on acquiring and operating multifamily assets, and it has targeted, and intends to continue to target, this asset class while also acquiring interests in other types of commercial property assets consistent with its investment objectives. The Company’s targeted portfolio consists of commercial real estate assets, principally (i) non-performing or distressed loans, including but not limited to first and second priority mortgage loans, mezzanine loans, subordinate participations in first mortgage loans, or B-Notes, and other loans, (ii) real estate that was foreclosed upon and sold by financial institutions, (iii) multifamily rental properties to which the Company can add value with a capital infusion (“value add properties”), and (iv) discounted investment-grade commercial mortgage-backed securities. However, the Company is not limited in the types of real estate assets in which it may invest and, accordingly, it may invest in other real estate-related assets either directly or together with a co-investor or joint venture partner. | |
The Company is organized and conducts its operations in a manner intended to allow it to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes under Subchapter M of the Internal Revenue Code of 1986, as amended. The Company also operates its business in a manner intended to maintain its exemption from registration under the Investment Company Act of 1940, as amended. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: | |||||||
Principles of Consolidation | |||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: | |||||||
Subsidiary | Apartment | Number | Location | ||||
Complex | of Units | ||||||
RRE Opportunity Holdings, LLC | N/A | N/A | N/A | ||||
Resource Real Estate Opportunity OP, LP | N/A | N/A | N/A | ||||
RRE 107th Avenue Holdings, LLC | 107th Avenue | 5 | Omaha, NE | ||||
RRE Westhollow Holdings, LLC | Arcadia | 404 | Houston, TX | ||||
RRE Crestwood Holdings, LLC (a) | Town Park (a) | 270 | Birmingham, AL | ||||
RRE Iroquois, LP | Vista Apartment Homes | 133 | Philadelphia, PA | ||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||
RRE Campus Club Holdings, LLC | Campus Club | 64 | Tampa, FL | ||||
RRE Bristol Holdings, LLC | The Redford | 856 | Houston, TX | ||||
RRE Cannery Holdings, LLC | Cannery Lofts | 156 | Dayton, OH | ||||
RRE Williamsburg Holdings, LLC | Williamsburg | 976 | Cincinnati, OH | ||||
RRE Skyview Holdings, LLC | Cityside Crossing | 360 | Houston, TX | ||||
RRE Park Forest Holdings, LLC | Mosaic | 216 | Oklahoma City, OK | ||||
RRE Foxwood Holdings, LLC | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||
RRE Flagstone Holdings, LLC | The Alcove | 292 | Houston, TX | ||||
RRE Deerfield Holdings, LLC | Deerfield | 166 | Hermantown, MN | ||||
RRE Kenwick Canterbury Holdings, LLC | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||
RRE Armand Place Holdings, LLC | Ivy at Clear Creek | 244 | Houston, TX | ||||
RRE Autumn Wood Holdings, LLC | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||
RRE Village Square Holdings, LLC | Village Square | 271 | Houston, TX | ||||
RRE Nob Hill Holdings, LLC | Nob Hill | 192 | Winter Park, FL | ||||
RRE Brentdale Holdings, LLC | Brentdale | 412 | Plano, TX | ||||
RRE Jefferson Point Holdings, LLC | Jefferson Point | 208 | Newport News, VA | ||||
RRE Centennial Holdings, LLC | Centennial | 276 | Littleton, CO | ||||
RRE Pinnacle Holdings, LLC | Pinnacle | 224 | Westminster, CO | ||||
N/A - Not Applicable | |||||||
(a) - Discontinued operations | |||||||
All intercompany accounts and transactions have been eliminated in consolidation. | |||||||
Use of Estimates | |||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
Rental Properties | |||||||
The Company records acquired rental properties at fair value. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates using the straight line method. The Company anticipates the estimated useful lives of its assets by class as follows: | |||||||
Buildings | 27.5 years | ||||||
Building improvements | 3.0 to 27.5 years | ||||||
Tenant improvements | Shorter of lease term or expected useful life | ||||||
Impairment of Long Lived Assets | |||||||
When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for permanent impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. The review also considers factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. | |||||||
For properties to be held or used, an impairment loss will be recorded when such anticipated cash flows are less than the carrying value of the assets to the extent that the carrying value exceeds the estimated fair value of the properties. For properties held for sale, the impairment loss would be the adjustment to fair value less the estimated cost to dispose of the asset. For the three months ended September 30, 2013, the Company did not record impairment charges at any of its properties. For the nine months ended September 30, 2013, the Company recorded a $539,000 impairment charge for one of its properties which is included in (loss) income from discontinued operations. | |||||||
Loans Held for Investment, Net | |||||||
The Company records acquired performing loans held for investment at cost and reviews them for potential impairment at each balance sheet date. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. A TDR may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. | |||||||
The amount of impairment, if any, is measured by comparing the recorded amount of the loan to the present value of the expected cash flows or, as a practical expedient, the fair value of the collateral. If a loan is deemed to be impaired, the Company records a reserve for loan losses through a charge to income for any shortfall. | |||||||
Interest income from performing loans held for investment is recognized based on the contractual terms of the loan agreement. Fees related to any buy down of the interest rate are deferred as prepaid interest income and amortized over the term of the loan as an adjustment to interest income. The initial investment made in a purchased performing loan includes the amount paid to the seller plus fees. The initial investment frequently differs from the related loan’s principal amount at the date of the purchase. The difference is recognized as an adjustment of the yield over the life of the loan. Closing costs related to the purchase of a performing loan held for investment are amortized over the term of the loan and accreted as an adjustment to interest income. | |||||||
The Company may acquire real estate loans at a discount due to the credit quality of such loans and the respective borrowers under such loans. Revenues from these loans are recorded under the effective interest method. Under this method, an effective interest rate (“EIR”) is applied to the cost basis of the real estate loan held for investment. The EIR that is calculated when the loan held for investment is acquired remains constant and is the basis for subsequent impairment testing and income recognition. However, if the amount and timing of future cash collections are not reasonably estimable, the Company accounts for the real estate receivable on the cost recovery method. Under the cost recovery method of accounting, no income is recognized until the basis of the loan held for investment has been fully recovered. | |||||||
Allocation of the Purchase Price of Acquired and Foreclosed Assets | |||||||
The cost of rental properties acquired directly as fee interests and rental properties which are acquired through foreclosing on a loan are allocated to net tangible and intangible assets based on their relative fair values. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and to identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships. Fair value estimates are based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. In addition, the Company may obtain independent appraisal reports. The information in the appraisal reports along with the aforementioned information available to the Company's management is used in allocating the purchase price. The independent appraisers have no involvement in management's allocation decisions other than providing market information. | |||||||
In allocating the purchase price, management also includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period. Management also estimates costs to execute similar leases, including leasing commissions and legal and other related expenses, to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. | |||||||
The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases. | |||||||
The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if it were vacant. Management’s estimates of value are made using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered by management in its analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. | |||||||
The total amount of other intangible assets acquired is further allocated to customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of the Company’s existing relationships with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. | |||||||
The Company amortizes the value of in-place leases to expense over the average remaining term of the respective leases. The value of customer relationship intangibles are amortized to expense over the initial term and any renewal periods in the respective leases, but in no event will the amortization periods for the intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles associated with that tenant would be charged to expense in that period. | |||||||
The determination of the fair value of assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the purchase price allocations, which could impact the amount of the Company’s reported net income. Initial purchase price allocations are subject to change until all information is finalized, which is generally within one year of the acquisition date. | |||||||
Discontinued Operations | |||||||
Assuming no significant continuing involvement by the Company after the sale, the sale of a property is considered a discontinued operation. | |||||||
Revenue Recognition | |||||||
The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease and includes amounts expected to be received in later years in deferred rents. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period in which the related expenses are incurred. | |||||||
The specific timing of a property disposition is measured against various criteria related to the terms of the transaction and any continuing involvement associated with the property. If the criteria for gain recognition under the full-accrual method are not met, the Company defers gain recognition and accounts for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery methods, as appropriate, until the appropriate criteria are met. | |||||||
The future minimum rental payments to be received from noncancelable operating leases are $27.4 million and $195,000 for the 12 month periods ending September 30, 2014 and 2015, respectively, and none thereafter. | |||||||
Tenant Receivables | |||||||
Tenant receivables are stated in the financial statements net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, the condition of the general economy and the industry as a whole. The Company writes off receivables when they become uncollectible. At September 30, 2013 and December 31, 2012, allowances for uncollectible receivables totaled $6,000 and $8,000, respectively. | |||||||
Deferred Offering Costs | |||||||
Through September 30, 2013, the Advisor has advanced $4.1 million on behalf of the Company for the payment of public offering costs consisting of accounting, advertising, allocated payroll, due diligence, marketing, legal and similar costs. A portion of these costs is charged to equity upon the sale of each share of common stock sold under the public offering. Similarly, a portion of the proceeds received from the sales of shares in the Company's public offering is paid to the Advisor to reimburse it for the amount incurred on behalf of the Company. Deferred offering costs represent the portion of the total costs incurred that have not been charged to equity to date. As of September 30, 2013 and December 31, 2012, $4.1 million and $3.9 million, respectively, had been reimbursed to the Advisor. Upon completion of the public offering, any deferred offering costs in excess of reimbursements will be charged back to the Advisor. | |||||||
Income Taxes | |||||||
To maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90% of its taxable net income (excluding net capital gains) to its stockholders as well as comply with other requirements, including certain asset, income and stock ownership tests. Accordingly, the Company generally will not be subject to corporate U.S. federal income taxes to the extent that it annually distributes at least 90% of its taxable net income to its stockholders. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it is subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it fails its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. | |||||||
The dividends-paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Generally, taxable income differs from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. | |||||||
The Company may elect to treat certain of its subsidiaries as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRSs may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. As of September 30, 2013 and December 31, 2012, the Company had no TRSs. | |||||||
The Company evaluates the benefits of tax positions taken or expected to be taken in its tax returns. Only the largest amount of benefits from tax positions that will more likely than not be sustainable upon examination are recognized by the Company. The Company does not have any unrecognized tax benefits, nor interest and penalties, recorded in its consolidated financial statements and does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next 12 months. | |||||||
The Company is subject to examination by the U.S. Internal Revenue Service and by the taxing authorities in other states in which the Company has significant business operations. The Company is not currently undergoing any examinations by taxing authorities. | |||||||
Earnings Per Share | |||||||
Basic earnings per share are calculated on the basis of the weighted-average number of common shares outstanding during the period. Basic earnings per share are computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share take into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. Due to reported losses for the periods presented, 50,000 convertible shares (discussed in Note 13) are not included in the diluted earnings per share calculations. For the purposes of calculating earnings per share, all common shares and per common share information in the financial statements have been adjusted retroactively for the effect of seven 1.5% stock distributions, two 0.75% stock distributions, one 0.585% stock distribution, and one 0.5% stock distribution issued to stockholders. Common stock shares issued and authorized on the Consolidated Balance Sheets have also been adjusted retroactively for the effect of these 11 distributions. | |||||||
Reclassifications | |||||||
Certain amounts in the prior year financial statements have been reclassified to conform to the current-year presentation. The impact of the reclassifications made to prior year amounts are not material and did not affect net income (loss). |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
The following table presents supplemental cash flow information (in thousands): | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Non-cash activities: | ||||||||
Investor contributions held in escrow which have converted to common stock | $ | 1,700 | $ | 2,389 | ||||
Properties and intangibles received on foreclosure of loans held for investment | 10,150 | 17,047 | ||||||
Financing provided for disposed property | 800 | — | ||||||
Stock distributions issued | 5,896 | 5,018 | ||||||
Distributions on common stock declared but not yet paid | 1,536 | 2,640 | ||||||
Stock issued from distribution reinvestment plan | 6,258 | 1,052 | ||||||
Deferred financing costs and escrow deposits funded directly by mortgage note | 865 | 611 | ||||||
and revolving credit facility | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 216 | $ | 227 | ||||
RENTAL_PROPERTIES_NET
RENTAL PROPERTIES, NET | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate Investments, Net [Abstract] | ' | |||||||
RENTAL PROPERTIES, NET | ' | |||||||
RENTAL PROPERTIES, NET | ||||||||
The Company’s investments in rental properties consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Land | $ | 52,356 | $ | 16,378 | ||||
Building and improvements | 254,611 | 102,037 | ||||||
Furniture, fixtures and equipment | 11,176 | 5,872 | ||||||
Construction-in-progress | 1,102 | 1,083 | ||||||
319,245 | 125,370 | |||||||
Less: accumulated depreciation | (11,286 | ) | (4,272 | ) | ||||
$ | 307,959 | $ | 121,098 | |||||
Depreciation expense for the nine months ended September 30, 2013 and 2012 was $7.1 million and $1.7 million, respectively. |
LOANS_HELD_FOR_INVESTMENT_NET
LOANS HELD FOR INVESTMENT, NET | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
LOANS HELD FOR INVESTMENT, NET [Abstract] | ' | ||||||||||||
LOANS HELD FOR INVESTMENT, NET | ' | ||||||||||||
LOANS HELD FOR INVESTMENT, NET | |||||||||||||
On March 15, 2011, the Company purchased, at a discount, two non-performing promissory notes and two performing promissory notes (the “Notes”), each of which was secured by a first priority mortgage on the respective multifamily rental apartment communities. The contract purchase price for the Notes was a total of $3.1 million, excluding closing costs. On August 2, 2011, the borrower of one of the non-performing promissory notes entered into a forbearance agreement with the Company and, on September 23, 2011, paid the Company a negotiated amount in satisfaction of the note in full. On August 18, 2011, the Company was the successful bidder at a foreclosure sale of the property collateralizing the second non-performing note, the Heatherwood Note. Possession of the Heatherwood Apartments was obtained in February 2012 and the property was subsequently sold in April 2013 (See Note 7). The face value of the performing notes as of September 30, 2013 and December 31, 2012 was $2.1 million and $1.3 million, respectively. The performing notes were purchased net of discounts and the unamortized accretable discounts totaled $296,000 and $316,000 at September 30, 2013 and December 31, 2012, respectively. | |||||||||||||
On April 18, 2013, in connection with the sale of the Heatherwood Apartments, the Company originated an $800,000 mortgage loan to the purchaser of the Heatherwood Apartments on the same date. | |||||||||||||
The following table provides the aging of the Company’s loans held for investment (dollars in thousands): | |||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Current | $ | 1,753 | 100% | $ | 959 | 9% | |||||||
Delinquent: | |||||||||||||
30−89 days | — | —% | 10,150 | 91% | |||||||||
90−180 days | — | —% | — | —% | |||||||||
Greater than 180 days | — | —% | — | —% | |||||||||
$ | 1,753 | 100% | $ | 11,109 | 100% | ||||||||
The following table provides information about the credit quality of the Company’s loans held for investment, net (in thousands): | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Loans: | |||||||||||||
Performing | $ | 1,753 | $ | 959 | |||||||||
Nonperforming | — | 10,150 | |||||||||||
Total | $ | 1,753 | $ | 11,109 | |||||||||
The following table provides information about the terms of the Company's loans held for investment (dollars in thousands): | |||||||||||||
Peterson | Trail Ridge | Heatherwood | |||||||||||
Note | Note | Note | |||||||||||
Maturity date | 12/31/13 | 10/28/21 | 5/17/16 | ||||||||||
Interest rate | 7.4 | % | 7.5 | % | 4 | % | |||||||
Average monthly payment | $ | 3 | $ | 8 | $ | 11 | |||||||
The Peterson Note matured on December 31, 2011 with an unpaid balance of $238,000 that is currently in default. Accordingly, the Company and the borrower under this note entered into a forbearance agreement in January 2012 which expires on December 31, 2013. This forbearance agreement is considered a troubled debt restructuring. The borrower continues to pay the debt service payments as required by the forbearance agreement. | |||||||||||||
The Company has individually evaluated each loan for impairment and determined that, as of September 30, 2013, two loans are unimpaired and the troubled debt restructuring is impaired. Although the troubled debt restructuring loan is impaired, based on the evaluation performed, the Company did not record an impairment charge because the borrower is current on its payments under the forbearance agreement and the value of the collateral securing the loan exceeds the balance of the loan held for investment. | |||||||||||||
There was no allowance for credit losses or charge-offs as of and for the nine months ended September 30, 2013 and 2012. |
ACQUISITIONS_AND_FORECLOSURES
ACQUISITIONS AND FORECLOSURES | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND FORECLOSURES | ' | |||||||||||||||||||||||||||||||||||||
ACQUISITIONS AND FORECLOSURES | ||||||||||||||||||||||||||||||||||||||
Real Estate Investments | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2013, the Company had acquired and owned 21 properties. The Company estimated the fair values of certain of the acquired assets and liabilities based on preliminary valuations at the date of purchase. The Company is in the process of obtaining appraisals in order to finalize the estimated valuations for the more recent acquisitions. The table below summarizes these acquisitions and the respective fair values assigned (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Multifamily | City and State | Date of | Purchase | Land | Building | Furniture, | Intangible | Other Assets | Other | Fair Valued | ||||||||||||||||||||||||||||
Community Name | Acquisition | Price (1) | and | Fixture | Assets | Liabilities | Assigned | |||||||||||||||||||||||||||||||
Improvements | and | |||||||||||||||||||||||||||||||||||||
Equipment | ||||||||||||||||||||||||||||||||||||||
Centennial | Littleton, CO | 9/30/13 | $ | 30,600 | (2) | $ | 7,041 | $ | 22,498 | $ | — | $ | 1,060 | $ | 24 | $ | (190 | ) | $ | 30,433 | ||||||||||||||||||
Pinnacle | Westminster, CO | 9/30/13 | 24,250 | (2) | 4,325 | 19,033 | — | 892 | 20 | (147 | ) | 24,123 | ||||||||||||||||||||||||||
Jefferson Point | Newport News, VA | 9/9/13 | 18,250 | (2) | 5,533 | 12,332 | — | 385 | 23 | (59 | ) | 18,214 | ||||||||||||||||||||||||||
Brentdale | Plano, TX | 7/25/13 | 32,200 | (2) | 5,604 | 25,936 | — | 660 | 52 | (317 | ) | 31,935 | ||||||||||||||||||||||||||
Nob Hill | Winter Park, FL | 6/27/13 | 10,100 | (2) | 3,659 | 5,987 | — | 454 | 50 | (61 | ) | 10,089 | ||||||||||||||||||||||||||
Village Square | Spring, Texas | 6/24/13 | 27,200 | (2) | 4,625 | 22,369 | — | 206 | 40 | (170 | ) | 27,070 | ||||||||||||||||||||||||||
Retreat at Rocky Ridge | Hoover, Alabama | 4/18/13 | 8,500 | 1,616 | 6,418 | 30 | 436 | 2 | (89 | ) | 8,413 | |||||||||||||||||||||||||||
Ivy at Clear Creek | Houston, TX | 3/28/13 | 11,750 | (2) | 1,877 | 9,175 | 28 | 670 | 8 | (127 | ) | 11,631 | ||||||||||||||||||||||||||
One Hundred Chevy Chase Apartments | Lexington, KY | 3/13/13 | 6,850 | 1,323 | 4,981 | 41 | 505 | 7 | (101 | ) | 6,756 | |||||||||||||||||||||||||||
Deerfield | Hermantown | 1/22/13 | (3) | 10,300 | (2) | 1,028 | 8,592 | — | 680 | 1 | (4 | ) | 10,297 | |||||||||||||||||||||||||
MN | ||||||||||||||||||||||||||||||||||||||
The Alcove | Houston, TX | 12/21/12 | 5,500 | 1,202 | 3,865 | 20 | 413 | 54 | (13 | ) | 5,541 | |||||||||||||||||||||||||||
Cityside Crossing | Houston, TX | 12/19/12 | 14,425 | (2) | 1,949 | 11,676 | 37 | 763 | 49 | (68 | ) | 14,406 | ||||||||||||||||||||||||||
The Reserve at | Memphis, TN | 12/7/12 | 2,275 | 775 | 1,124 | 39 | 337 | 16 | (90 | ) | 2,201 | |||||||||||||||||||||||||||
Mount Moriah | ||||||||||||||||||||||||||||||||||||||
Mosaic | Oklahoma City, OK | 12/6/12 | 2,050 | (2) | 545 | 1,422 | 16 | 67 | 14 | (16 | ) | 2,048 | ||||||||||||||||||||||||||
Williamsburg Apartments | Cincinnati, OH | 6/20/12 | 41,250 | 3,223 | 35,111 | 1,007 | 1,909 | 49 | (274 | ) | 41,025 | |||||||||||||||||||||||||||
Cannery Lofts | Dayton, OH | 6/6/12 | (4) | 7,100 | 160 | 7,913 | 200 | 609 | 35 | — | 8,917 | |||||||||||||||||||||||||||
The Redford | Houston, TX | 3/27/12 | 11,400 | 4,073 | 5,235 | 262 | 1,558 | 272 | — | 11,400 | ||||||||||||||||||||||||||||
Campus Club | Tampa, FL | 2/21/12 | (5) | 8,300 | 1,650 | 6,250 | 200 | 435 | — | — | 8,535 | |||||||||||||||||||||||||||
Apartments | ||||||||||||||||||||||||||||||||||||||
Vista Apartment | Philadelphia, PA | 8/2/11 | (6) | 12,000 | 1,163 | 9,913 | — | 535 | 530 | (141 | ) | 12,000 | ||||||||||||||||||||||||||
Homes | ||||||||||||||||||||||||||||||||||||||
Arcadia at | Houston, TX | 10/5/10 | (7) | 7,800 | 943 | 6,599 | — | 258 | — | — | 7,800 | |||||||||||||||||||||||||||
Westheimer | ||||||||||||||||||||||||||||||||||||||
107th Avenue | Omaha, NE | 8/26/10 | 250 | 25 | 196 | — | 4 | — | — | 225 | ||||||||||||||||||||||||||||
-1 | Purchase price excludes closing costs and acquisition expenses. For properties acquired through foreclosure, the purchase price reflects the contract purchase price of the note. | |||||||||||||||||||||||||||||||||||||
-2 | Asset valuations are based on preliminary valuations at the date of purchase. The Company is in the process of obtaining an appraisal to finalize the valuation. The Company has up to 12 months from the date of acquisition to finalize the valuation. | |||||||||||||||||||||||||||||||||||||
-3 | Deerfield originally served as the collateral for a non-performing note that the Company purchased on March 21, 2012. On July 19, 2012, the Company was the successful bidder at a foreclosure sale and formally received title to the property on January 22, 2013. | |||||||||||||||||||||||||||||||||||||
-4 | Cannery Lofts originally served as the collateral for a non-performing note that the Company purchased on May 13, 2011. On December 21, 2011, the Company entered into a settlement agreement with the borrower and, subsequently, the Company foreclosed and formally received title to the property on June 6, 2012. | |||||||||||||||||||||||||||||||||||||
-5 | Campus Club Apartments originally served as collateral for a non-performing note that the Company purchased on October 21, 2011. On February 9, 2012, the Company was the successful bidder at a foreclosure sale and took title to the property on February 21, 2012. | |||||||||||||||||||||||||||||||||||||
-6 | Vista Apartment Homes, formerly known as Iroquois Apartments, originally served as the collateral for a non-performing promissory note that the Company purchased on June 17, 2011. On August 2, 2011, the Company was the successful bidder at a sheriff's sale and formally received title to the property. | |||||||||||||||||||||||||||||||||||||
-7 | Arcadia at Westheimer originally served as the collateral for a non-performing promissory note that the Company purchased on September 3, 2010. The Company commenced foreclosure proceedings and, on October 5, 2010, formally received title to the property. | |||||||||||||||||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||||||||||||||
The Company acquired ten properties, as follows, during the nine months ended September 30, 2013. In order to finalize the fair values of the acquired assets and liabilities, third-party appraisals were obtained for two of the properties acquired during the nine months ended September 30, 2013. The Company estimated the fair values of certain of the acquired assets and liabilities for the other eight properties acquired during the nine months ended September 30, 2013 based on preliminary valuations at the date of purchase. The Company is in the process of obtaining third-party appraisals in order to finalize these estimated values. Thus, the provisional measurements of fair values set forth below are subject to change. Such changes could be significant. The Company expects to finalize the valuation and complete the purchase price allocation for each property as soon as practicable but no later than one year from the respective acquisition date. | ||||||||||||||||||||||||||||||||||||||
Deerfield | ||||||||||||||||||||||||||||||||||||||
On March 21, 2012, the Company purchased, at a discount, a non-performing promissory note (the "Deerfield Note") that was secured by a first priority mortgage on a multifamily rental community in Hermantown, Minnesota. The contract purchase price for the Deerfield Note was $10.3 million, excluding closing costs. The Company paid an acquisition fee of $217,000, or 2% of the purchase price including closing costs, to the Advisor. On July 19, 2012, the Company was the successful bidder at a foreclosure sale of the property securing the Deerfield Note and took title to the property on January 22, 2013 (see Note 17). | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,028 | ||||||||||||||||||||||||||||||||||||
Buildings | 8,592 | |||||||||||||||||||||||||||||||||||||
9,620 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 680 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 1 | |||||||||||||||||||||||||||||||||||||
Security deposits | (4 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 10,297 | ||||||||||||||||||||||||||||||||||||
One Hundred Chevy Chase Apartments | ||||||||||||||||||||||||||||||||||||||
On March 13, 2013, the Company purchased a multifamily residential rental apartment complex located in Lexington, Kentucky, known as One Hundred Chevy Chase Apartments (formerly known as Kenwick & Canterbury), for $6.9 million, excluding closing costs. The Company paid an acquisition fee of $139,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,323 | ||||||||||||||||||||||||||||||||||||
Buildings | 4,981 | |||||||||||||||||||||||||||||||||||||
Personal Property | 41 | |||||||||||||||||||||||||||||||||||||
6,345 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 505 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 7 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (17 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (10 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (74 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 6,756 | ||||||||||||||||||||||||||||||||||||
Ivy at Clear Creek | ||||||||||||||||||||||||||||||||||||||
On March 28, 2013, the Company purchased a multifamily residential rental apartment complex located in Houston, Texas, known as Ivy at Clear Creek (formerly known as Armand Place), for $11.8 million, excluding closing costs. The Company paid an acquisition fee of $236,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,877 | ||||||||||||||||||||||||||||||||||||
Buildings | 9,175 | |||||||||||||||||||||||||||||||||||||
Personal Property | 28 | |||||||||||||||||||||||||||||||||||||
11,080 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 670 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 8 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (68 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (14 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (45 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 11,631 | ||||||||||||||||||||||||||||||||||||
Retreat at Rocky Ridge | ||||||||||||||||||||||||||||||||||||||
On April 18, 2013, the Company purchased a multifamily residential rental apartment complex located in Hoover, Alabama, known as Retreat at Rocky Ridge (formerly known as Autumn Wood), for $8.5 million, excluding closing costs. The Company paid an acquisition fee of $172,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,616 | ||||||||||||||||||||||||||||||||||||
Buildings | 6,418 | |||||||||||||||||||||||||||||||||||||
Personal Property | 30 | |||||||||||||||||||||||||||||||||||||
8,064 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 436 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 2 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (67 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (6 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (16 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 8,413 | ||||||||||||||||||||||||||||||||||||
Village Square | ||||||||||||||||||||||||||||||||||||||
On June 24, 2013, the Company purchased a multifamily residential rental apartment complex located in Houston, Texas, known as Village Square, for $27.2 million excluding closing costs. The Company paid an acquisition fee of $545,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 4,625 | ||||||||||||||||||||||||||||||||||||
Buildings | 22,369 | |||||||||||||||||||||||||||||||||||||
26,994 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 206 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 40 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (132 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (8 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (30 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 27,070 | ||||||||||||||||||||||||||||||||||||
Nob Hill | ||||||||||||||||||||||||||||||||||||||
On June 27, 2013, the Company purchased a multifamily residential rental apartment complex located in Winter Park, Florida, known as Nob Hill, for $10.1 million, excluding closing costs. The Company paid an acquisition fee of $203,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 3,659 | ||||||||||||||||||||||||||||||||||||
Buildings | 5,987 | |||||||||||||||||||||||||||||||||||||
9,646 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 454 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 50 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (39 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (18 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 10,089 | ||||||||||||||||||||||||||||||||||||
Brentdale | ||||||||||||||||||||||||||||||||||||||
On July 25, 2013, the Company purchased a multifamily residential rental apartment complex located in Plano, Texas, known as Brentdale, for $32.2 million, excluding closing costs. The Company paid an acquisition fee of $645,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 5,604 | ||||||||||||||||||||||||||||||||||||
Buildings | 25,936 | |||||||||||||||||||||||||||||||||||||
31,540 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 660 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 52 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (244 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (69 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 31,935 | ||||||||||||||||||||||||||||||||||||
Jefferson Point | ||||||||||||||||||||||||||||||||||||||
On September 9, 2013, the Company purchased a multifamily residential rental apartment complex located in Newport News, Virginia, known as Jefferson Point, for $18.3 million, excluding closing costs. The Company paid an acquisition fee of $367,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 5,533 | ||||||||||||||||||||||||||||||||||||
Buildings | 12,332 | |||||||||||||||||||||||||||||||||||||
17,865 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 385 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 23 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (37 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (18 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 18,214 | ||||||||||||||||||||||||||||||||||||
Pinnacle | ||||||||||||||||||||||||||||||||||||||
On September 30, 2013, the Company purchased a multifamily residential rental apartment complex located in Westminster, Colorado, known as Pinnacle, for $24.3 million, excluding closing costs. The Company paid an acquisition fee of $486,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 4,325 | ||||||||||||||||||||||||||||||||||||
Buildings | 19,033 | |||||||||||||||||||||||||||||||||||||
23,358 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 892 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 20 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (99 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (8 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (40 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 24,123 | ||||||||||||||||||||||||||||||||||||
Centennial | ||||||||||||||||||||||||||||||||||||||
On September 30, 2013, the Company purchased a multifamily residential rental apartment complex located in Littleton, Colorado, known as Centennial, for $30.6 million, excluding closing costs. The Company paid an acquisition fee of $613,000, or 2% of the purchase price including closing costs, to the Advisor. | ||||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 7,041 | ||||||||||||||||||||||||||||||||||||
Buildings | 22,498 | |||||||||||||||||||||||||||||||||||||
29,539 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 1,060 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 24 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (122 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (12 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (56 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 30,433 | ||||||||||||||||||||||||||||||||||||
DISPOSITION_OF_PROPERTIES_AND_
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS | ' | ||||||||||||||||
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS | |||||||||||||||||
The Company reports its property dispositions as discontinued operations. Assuming no significant continuing involvement by the Company after the sale, the sale of property is considered a discontinued operation. Included in discontinued operations for the three and nine months ended September 30, 2013 and 2012 are the operating results of the two properties discussed below. | |||||||||||||||||
The Company sold the Heatherwood Apartments, which was originally obtained through foreclosure in February 2012, to an unaffiliated purchaser for $1.0 million on April 18, 2013 and recognized a loss on disposition of $31,000. The Company provided the purchaser with financing for $800,000 and the purchaser paid cash of $200,000 in connection with the disposition. | |||||||||||||||||
The Company sold the Town Park Apartments to an unaffiliated purchaser on April 30, 2013 for $10.3 million and recognized a gain of approximately $3.2 million on disposition. | |||||||||||||||||
The results of discontinued operations are summarized for the three and nine months ended September 30, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Rental income | $ | — | $ | 777 | $ | 1,081 | $ | 2,118 | |||||||||
Gain on foreclosure | — | 36 | — | 1,232 | |||||||||||||
Total revenues | — | 813 | 1,081 | 3,350 | |||||||||||||
Expenses: | |||||||||||||||||
Rental operating | 23 | 609 | 810 | 1,755 | |||||||||||||
Acquisition Costs | — | — | — | 3 | |||||||||||||
Management fees - related parties | — | 46 | 62 | 130 | |||||||||||||
General and administrative | 1 | 85 | 225 | 271 | |||||||||||||
Loss on property impairment | — | — | 539 | — | |||||||||||||
Depreciation and amortization expense | — | 209 | 141 | 547 | |||||||||||||
Total expenses | 24 | 949 | 1,777 | 2,706 | |||||||||||||
(Loss) income from discontinued operations | (24 | ) | (136 | ) | (696 | ) | 644 | ||||||||||
Gain on dispositions | — | — | 3,173 | — | |||||||||||||
Insurance proceeds in excess of cost basis | — | 25 | 175 | ||||||||||||||
(Loss) income from discontinued operations, net | $ | (24 | ) | $ | (111 | ) | $ | 2,477 | $ | 819 | |||||||
Weighted average common shares outstanding | 36,156 | 15,953 | 33,055 | 12,979 | |||||||||||||
Basic and diluted (loss) income per common share | $ | — | $ | (0.01 | ) | $ | 0.08 | $ | 0.06 | ||||||||
IDENTIFIED_INTANGIBLE_ASSETS_N
IDENTIFIED INTANGIBLE ASSETS, NET | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
IDENTIFIED INTANGIBLE ASSETS, NET | ' | |||
IDENTIFIED INTANGIBLE ASSETS, NET | ||||
Identified intangible assets, net, consisted of rental and antennae leases and leasing commissions. The value of the acquired in-place leases totaled $12.4 million and $6.8 million as of September 30, 2013 and December 31, 2012, respectively, less accumulated amortization of $8.5 million and $5.2 million, respectively. The weighted-average remaining life of the rental leases is 11.6 months and one month as of September 30, 2013 and December 31, 2012, respectively. The leasing commissions, valued at $306,000, were fully amortized as of December 31, 2012. Expected amortization for the antennae leases at the Vista Apartment Homes is $16,000 annually through 2025. Total amortization expense was $4.1 million and $2.0 million for the nine months ended September 30, 2013 and 2012, respectively. Expected amortization for the rental and antennae leases for the next five years ending September 30, and thereafter, is as follows (in thousands): | ||||
2014 | $ | 3,698 | ||
2015 | 16 | |||
2016 | 16 | |||
2017 | 16 | |||
2018 | 16 | |||
Thereafter | 118 | |||
$ | 3,880 | |||
MORTGAGE_NOTES_PAYABLE
MORTGAGE NOTES PAYABLE | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
MORTGAGE NOTES PAYABLE | ' | ||||||||||||
MORTGAGE NOTES PAYABLE | |||||||||||||
On April 3, 2012, the Company, through its operating partnership, entered into a mortgage loan (the “Iroquois Mortgage Note”) for $9.2 million. The Iroquois Mortgage Note bears interest at one-month London Interbank Offered Rate (“LIBOR”) plus 2.61% and requires monthly payments of principal and interest. The amount outstanding under the Iroquois Mortgage Note may be prepaid in full after the first year of its term at a 1.0% premium based on the principal being repaid and with no prepayment premium during the last three months of its term. The Iroquois Mortgage Note is secured by a first lien mortgage on the assets of the Vista Apartment Homes. The Company recorded interest expense on the Iroquois Mortgage Note of $64,000 and $66,000 for the three months ended September 30, 2013 and 2012, respectively, and $191,000 and $130,000 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||
On August 22, 2013, the Company, through a wholly-owned subsidiary, entered into a mortgage loan (the “Cannery Mortgage Note”) for $8.2 million. The Cannery Mortgage Note bears interest at one-month LIBOR plus 3.30% and requires monthly payments of interest only through September 2015, at which point payments of principal and interest are required through the maturity date of September 1, 2020. The amount outstanding under the Cannery Mortgage Note may be prepaid in full after the first year of its term at a 1.0% premium based on the principal being repaid and with no prepayment premium during the last three months of its term. The Cannery Mortgage Note is secured by a first lien mortgage on the assets of the Cannery Lofts. The Company recorded interest expense on the Cannery Mortgage Note of $32,000 for both the three and nine months ended September 30, 2013. | |||||||||||||
The following is a summary of the mortgage notes payable (dollars in thousands): | |||||||||||||
Collateral | Balance | Maturity | Annual | Average | |||||||||
Outstanding at | Date | Interest Rate | Monthly Debt | ||||||||||
30-Sep-13 | Service | ||||||||||||
Vista Apartment Homes | $ | 8,896 | 5/1/17 | 2.79% | (1) | $ | 38 | ||||||
Cannery Lofts | 8,190 | 9/1/20 | 3.48% | (2) | 24 | ||||||||
-1 | One-month LIBOR (0.179% as of September 30, 2013) plus 2.61% margin. | ||||||||||||
-2 | One-month LIBOR plus 3.30% margin. | ||||||||||||
Annual principal payments on the mortgage notes payable for each of the next five years ending September 30 are as follows (in thousands): | |||||||||||||
2014 | $ | 200 | |||||||||||
2015 | 206 | ||||||||||||
2016 | 1,920 | ||||||||||||
2017 | 9,916 | ||||||||||||
2018 | 1,693 | ||||||||||||
Thereafter | $ | 3,151 | |||||||||||
$ | 17,086 | ||||||||||||
The mortgage notes payable are recourse only with respect to the Vista Apartment Homes and Cannery Lofts, subject to certain limited standard exceptions, as defined in the mortgage notes. These exceptions are referred to as “carveouts.” The Company has guaranteed the carveouts described in the mortgage notes by executing a guarantee with respect to the Vista Apartment Homes and Cannery Lofts. In general, carveouts relate to damages suffered by the lender for a borrower’s failure to pay rents, insurance or condemnation proceeds to lender, failure to pay water, sewer and other public assessments or charges, failure to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the Company to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loans if the borrowers voluntarily file for bankruptcy or seek reorganization, or if a related party of the borrower does so with respect to the subsidiaries. |
REVOLVING_CREDIT_FACILITY
REVOLVING CREDIT FACILITY | 9 Months Ended |
Sep. 30, 2013 | |
Line of Credit Facility [Abstract] | ' |
REVOLVING CREDIT FACILITY | ' |
REVOLVING CREDIT FACILITY | |
On December 2, 2011, the Company, through its operating partnership, entered into a secured revolving credit facility (the “Credit Facility”) with Bank of America, N.A. On May 23, 2013 the Company amended the Credit Facility to increase the amount it may borrow under the Credit Facility from $25.0 million to $50.0 million. Draws under the Credit Facility are secured by certain of the Company's properties with an aggregate value of $41.4 million and are guaranteed by the Company. The amount currently available to be borrowed is $16.1 million. The Company paid certain closing costs in connection with the Credit Facility, including loan fees totaling $318,750. As of both September 30, 2013 and December 31, 2012, the Company had outstanding borrowings of $760,000 under the Credit Facility. | |
The Credit Facility, as amended, matures on May 23, 2017, and may be extended to May 23, 2019 subject to satisfaction of certain terms and conditions and payment of an extension fee equal to 0.2% of the amount committed under the Credit Facility at the time of any such extension. Interest on outstanding borrowings is incurred at a rate of one-month LIBOR plus 3.0% (3.179% at September 30, 2013). The Company is required to make monthly interest-only payments. The Company also may prepay the Credit Facility in whole or in part at any time without premium or penalty. The Company recorded interest expense of $6,000 and $131,000 for the three months ended September 30, 2013 and 2012, respectively, and $15,000 and $134,000, for the nine months ended September 30, 2013 and 2012, respectively. | |
The Credit Facility requires a certain minimum tangible net worth and a certain amount of unencumbered liquid assets. The Company was in compliance with all of its financial debt covenants at September 30, 2013. |
DEFERRED_FINANCING_COSTS
DEFERRED FINANCING COSTS | 9 Months Ended | |||
Sep. 30, 2013 | ||||
DEFERRED FINANCING COSTS [Abstract] | ' | |||
DEFERRED FINANCING COSTS | ' | |||
DEFERRED FINANCING COSTS | ||||
Deferred financing costs incurred to obtain financing are amortized over the term of the related debt. Accumulated amortization as of September 30, 2013 and December 31, 2012 was approximately $357,000 and $199,000, respectively. Estimated amortization of the existing deferred financing costs for the next five years ending September 30, is as follows (in thousands): | ||||
2014 | $ | 230 | ||
2015 | 205 | |||
2016 | 204 | |||
2017 | 142 | |||
2018 | 29 | |||
Thereafter | 55 | |||
$ | 865 | |||
CERTAIN_RELATIONSHIPS_AND_RELA
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | ' | ||||||||||||||||
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | |||||||||||||||||
In the ordinary course of its business operations, the Company has ongoing relationships with several related parties. | |||||||||||||||||
Relationship with RAI | |||||||||||||||||
The majority of the receivables from related parties represents escrow funds held by RAI for insurance on the Company's properties. The Company's properties are partially self-insured with respect to property and casualty losses. RAI holds the escrow funds related to the self-insurance pool on its books. Therefore unforeseen or catastrophic losses in excess of the Company's insured limits could have a material adverse effect on the Company's financial condition and operating results. | |||||||||||||||||
Relationship with the Advisor | |||||||||||||||||
In September 2009, the Company entered into an advisory agreement (the “Advisory Agreement”) pursuant to which the Advisor provides the Company with investment management, administrative and related services. The Advisory Agreement was amended in January 2010 and further amended in January 2011. The Advisory Agreement has a one-year term and renews for an unlimited number of successive one-year terms upon the approval of the conflicts committee of the Company's board of directors. The Company renewed the advisory agreement for another year on September 12, 2013. Under the Advisory Agreement, the Advisor receives fees and is reimbursed for its expenses as set forth below: | |||||||||||||||||
Acquisition fees. The Company pays the Advisor an acquisition fee of 2% of the cost of investments acquired on behalf of the Company, plus any capital expenditure reserves allocated, or the amount funded by the Company to acquire loans, including acquisition expenses and any debt attributable to such investments. | |||||||||||||||||
Asset management fees. The Company pays the Advisor a monthly asset management fee equal to one-twelfth of 1% of the higher of the cost or the independently appraised value of each asset, without deduction for depreciation, bad debts or other non-cash reserves. The asset management fee is based only on the portion of the costs or value attributable to the Company’s investment in an asset if the Company does not own all or a majority of an asset and does not manage or control the asset. | |||||||||||||||||
Disposition fees. The Advisor earns a disposition fee in connection with the sale of a property equal to the lesser of one-half of the aggregate brokerage commission paid, or 2.75% of the contract sales price. No properties were sold during the three months ended September 30, 2013. Two properties were sold during the nine months ended September 30, 2013 and disposition fees were paid to the Advisor, which are included in general and administrative expenses. No properties were sold during the three and nine months ended September 30, 2012 and therefore, no disposition fees were paid during these periods. | |||||||||||||||||
Debt financing fees. The Advisor earns a debt financing fee equal to 0.5% of the amount available under any debt financing obtained for which the Advisor provided substantial services. On August 22, 2013, the Company entered into the Cannery Mortgage Note, the details of which are summarized in Note 9 above. The Advisor earned and received debt financing fees for this transaction, which are included in the "Fees earned/ expenses paid to related parties" summary schedule below. | |||||||||||||||||
Expense reimbursements. The Company also pays directly or reimburses the Advisor for all of the expenses paid or incurred by the Advisor or its affiliates on behalf of the Company or in connection with the services provided to the Company in relation to its ongoing public offering. This includes all organization and offering costs of up to 2.5% of gross offering proceeds. | |||||||||||||||||
Reimbursements also include expenses the Advisor incurs in connection with providing services to the Company, including the Company’s allocable share of costs for Advisor personnel and overhead, out of pocket expenses incurred in connection with the selection and acquisition of properties or other real estate related debt investments, whether or not the Company ultimately acquires the investment. However, the Company will not reimburse the Advisor or its affiliates for employee costs in connection with services for which the Advisor earns acquisition or disposition fees. | |||||||||||||||||
Relationship with Resource Real Estate Opportunity Manager | |||||||||||||||||
Resource Real Estate Opportunity Manager, LLC (the “Manager”), an affiliate of the Advisor, manages the Company's real estate properties and real estate-related debt investments and coordinates the leasing of, and manages construction activities related to, some of the Company’s real estate properties pursuant to the terms of the management agreement with the Manager. | |||||||||||||||||
Property management fees. The Manager is entitled to specified fees upon the provision of certain services, including a construction management fee and property management/debt servicing fees. | |||||||||||||||||
Debt servicing fees. The Manager earns a debt servicing fee of 2.75% on payments received from loans held by the Company for investment. | |||||||||||||||||
Expense reimbursement. During the ordinary course of business, the Manager or other affiliates of RAI may pay certain shared operating expenses on behalf of the Company. | |||||||||||||||||
Relationship with Resource Securities | |||||||||||||||||
Resource Securities, Inc. (“Resource Securities,” formerly known as Chadwick Securities, Inc.), an affiliate of the Advisor, has been engaged to serve as the Company’s dealer-manager and is responsible for marketing the Company’s shares in its public offering. Pursuant to the terms of the dealer-manager agreement with Resource Securities, the Company pays Resource Securities a selling commission of up to 7% of gross public offering proceeds and a dealer-manager fee of up to 3% of gross offering proceeds. | |||||||||||||||||
Resource Securities reallows all selling commissions earned and up to 1% of the dealer-manager fee as a marketing fee to participating broker-dealers. No selling commissions or dealer-manager fees are earned by Resource Securities in connection with sales under the distribution reinvestment plan. Additionally, the Company may reimburse Resource Securities for bona fide due diligence expenses. | |||||||||||||||||
Relationship with Other Related Parties | |||||||||||||||||
The Company has also made payment for legal services to the law firm of Ledgewood P.C. (“Ledgewood”). Until 1996, the Chairman of RAI was of counsel to Ledgewood. In connection with the termination of his affiliation with Ledgewood and its redemption of his interest, the Chairman continues to receive certain payments from Ledgewood. Until March 2006, a current executive of RAI was the managing member of Ledgewood. This executive remained of counsel to Ledgewood through June 2007, at which time he became an Executive Vice President of RAI. In connection with his separation, this executive is entitled to receive payments from Ledgewood through 2013. | |||||||||||||||||
The Company utilizes the services of a printing company, Graphic Images, LLC (“Graphic Images”), whose principal owner is the father of RAI’s Chief Financial Officer. | |||||||||||||||||
The fees earned / expenses paid and the amounts payable to such related parties are summarized in the following tables (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Receivables from related parties: | |||||||||||||||||
RAI and affiliates | $ | 466 | $ | — | |||||||||||||
Payables to related parties: | |||||||||||||||||
Advisor: | |||||||||||||||||
Acquisition fees | $ | 155 | $ | — | |||||||||||||
Asset management fees | — | 10 | |||||||||||||||
Organization and operating costs | 4 | — | |||||||||||||||
Expense reimbursements | 88 | 28 | |||||||||||||||
Resource Real Estate Opportunity Manager, LLC: | |||||||||||||||||
Property management fees | 305 | 103 | |||||||||||||||
Operating expense reimbursements | 666 | 262 | |||||||||||||||
Resource Securities, Inc. | |||||||||||||||||
Selling commissions and dealer manager fees | 244 | 268 | |||||||||||||||
$ | 1,462 | $ | 671 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Fees earned / expenses paid to related parties: | |||||||||||||||||
Advisor: | |||||||||||||||||
Acquisition fees | $ | 2,468 | $ | (50 | ) | $ | 4,300 | $ | 1,628 | ||||||||
Asset management fees | $ | 717 | $ | 309 | $ | 1,640 | $ | 659 | |||||||||
Dispositions fees | $ | — | $ | — | $ | 116 | $ | — | |||||||||
Debt financing fees | $ | 41 | $ | — | $ | 41 | $ | 119 | |||||||||
Organization and offering costs | $ | 71 | $ | — | $ | 274 | $ | 291 | |||||||||
Overhead allocation | $ | 131 | $ | 89 | $ | 329 | $ | 477 | |||||||||
Resource Real Estate Opportunity Manager LLC: | |||||||||||||||||
Property management fees | $ | 482 | $ | 300 | $ | 1,256 | $ | 617 | |||||||||
Debt servicing fees | $ | 2 | $ | 1 | $ | 4 | $ | 3 | |||||||||
Resource Securities, Inc.: | |||||||||||||||||
Selling commissions and dealer manager fees | $ | 10,031 | $ | 3,078 | $ | 21,887 | $ | 8,084 | |||||||||
Other: | |||||||||||||||||
Ledgewood | $ | 56 | $ | 18 | $ | 138 | $ | 43 | |||||||||
Graphic Images | $ | 120 | $ | 139 | $ | 340 | $ | 464 | |||||||||
EQUITY
EQUITY | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
EQUITY | ' | ||||||||||||||
EQUITY | |||||||||||||||
Preferred Stock | |||||||||||||||
The Company’s charter authorizes the Company to issue 10.0 million shares of its $0.01 par value preferred stock. As of September 30, 2013 and December 31, 2012, no shares of preferred stock had been issued. | |||||||||||||||
Common Stock and Distribution Reinvestment Plan | |||||||||||||||
As of September 30, 2013, the Company had issued an aggregate of 46,581,720 shares of its $0.01 par value common stock as follows (dollars in thousands): | |||||||||||||||
Shares Issued | Gross Proceeds | ||||||||||||||
Shares issued through private offering | 1,263,727 | $ | 12,500 | ||||||||||||
Shares issued through primary public offering | 42,966,691 | 427,600 | |||||||||||||
Shares issued through stock distributions | 1,566,394 | — | |||||||||||||
Shares issued through distribution reinvestment plan | 769,408 | 7,300 | |||||||||||||
Shares issued in conjunction with the Advisor's initial investment, | 15,500 | 200 | |||||||||||||
net of 4,500 share conversion | |||||||||||||||
Total | 46,581,720 | $ | 447,600 | ||||||||||||
Convertible Stock | |||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company had 50,000 shares of its $0.01 par value convertible stock outstanding of which the Advisor and affiliated persons own 49,063 shares and outside investors own 937 shares. The convertible stock will convert into shares of the Company’s common stock upon the occurrence of (a) the Company having paid distributions to common stockholders that in the aggregate equal 100% of the price at which the Company originally sold the shares plus an amount sufficient to produce a 10% cumulative, non-compounded annual return on the shares at that price; or (b) if the Company lists its common stock on a national securities exchange and, on or after the 31st trading day following the listing, the Company’s value based on the average trading price of its common stock since the listing, plus prior distributions, combine to meet the same 10% return threshold. | |||||||||||||||
Redemption of Securities | |||||||||||||||
During the three months ended September 30, 2013, the Company redeemed 7,114 shares of its common stock for $60,540 (average redemption price of $8.51 per share) under its share redemption program. During the nine months ended September 30, 2013, the Company redeemed 31,126 shares of its common stock for $254,215 (average redemption price of $8.17 per share), under its share redemption program. All shares tendered and eligible for redemption were redeemed during the nine months ended September 30, 2013. During the nine months ended September 30, 2012, the Company did not redeem any shares of its common stock. | |||||||||||||||
Distributions | |||||||||||||||
For the nine months ended September 30, 2013, the Company paid aggregate distributions of $9.4 million, including $3.2 million of distributions paid in cash and $6.3 million of distributions reinvested through its distribution reinvestment plan, as follows: | |||||||||||||||
Distribution | |||||||||||||||
Per | Invested in | ||||||||||||||
Record | Common | Distribution | shares of | Aggregate | |||||||||||
Date | Share | Date | Common Stock | Distribution | |||||||||||
December 31, 2012 | $ | 0.075 | January 15, 2013 | $ | 1,053 | $ | 1,671 | ||||||||
January 31, 2013 | 0.025 | February 15, 2013 | 382 | 599 | |||||||||||
February 28, 2013 | 0.025 | March 15, 2013 | 420 | 647 | |||||||||||
April 1, 2013 | 0.025 | April 15, 2013 | 466 | 709 | |||||||||||
April 30, 2013 | 0.025 | May 1, 2013 | 512 | 770 | |||||||||||
May 31, 2013 | 0.033 | June 3, 2013 | 744 | 1,104 | |||||||||||
June 28, 2013 | 0.033 | July 1, 2013 | 804 | 1,183 | |||||||||||
July 31, 2013 | 0.033 | August 1, 2013 | 890 | 1,302 | |||||||||||
August 30, 2013 | 0.033 | September 3, 2013 | 983 | 1,424 | |||||||||||
$ | 6,254 | $ | 9,409 | ||||||||||||
On July 9, 2013, the Company's Board of Directors declared cash distributions of $1.5 million ($0.033 per common share) to stockholders of record as of the close of business on September 30, 2013, which were paid on October 1, 2013. As the distributions paid on October 1, 2013 were not paid during the nine months ended September 30, 2013, these distributions are not included in the aggregate distributions paid during this period as disclosed above. | |||||||||||||||
Since its formation, the Company has declared a total of seven quarterly stock distributions of 0.015 shares each, two quarterly distributions of 0.0075 shares each, one quarterly distribution of 0.00585 shares each, and one quarterly distribution of 0.005 shares each of its common stock outstanding. In connection with these stock distributions, the Company has increased its accumulated deficit by $27 million as of September 30, 2013. |
FAIR_VALUE_MEASUREMENTS_AND_DI
FAIR VALUE MEASUREMENTS AND DISCLOSURES | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS AND DISCLOSURES | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS AND DISCLOSURES | ||||||||||||||||
In analyzing the fair value of its investments accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The fair value of cash, tenant receivables and accounts payable, approximate their carrying value due to their short nature. The hierarchy followed defines three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. | ||||||||||||||||
Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. | ||||||||||||||||
The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. | ||||||||||||||||
Rental properties obtained through a foreclosed note are measured at fair value on a non-recurring basis. The fair value of rental properties is usually estimated based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships, based in each case on their fair values. | ||||||||||||||||
The following table presents information about the Company’s rental properties measured at fair value on a non-recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
September 30, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Deerfield | $ | — | $ | — | $ | 10,297 | $ | 10,297 | ||||||||
Rental properties, net | $ | — | $ | — | $ | 10,297 | $ | 10,297 | ||||||||
31-Dec-12 | ||||||||||||||||
Assets: | ||||||||||||||||
Cannery | $ | — | $ | — | $ | 8,917 | $ | 8,917 | ||||||||
Heatherwood | — | — | 1,889 | 1,889 | ||||||||||||
Campus Club | — | — | 8,535 | 8,535 | ||||||||||||
Rental properties, net | $ | — | $ | — | $ | 19,341 | $ | 19,341 | ||||||||
The carrying and fair values of the Company’s loans held for investment, net, mortgage note payable and revolving credit facility were as follows (in thousands): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Loans held for investment, net | $ | 1,753 | $ | 1,753 | $ | 11,109 | $ | 11,109 | ||||||||
Mortgage notes payable | (17,086 | ) | $ | (16,518 | ) | $ | (9,043 | ) | $ | (9,043 | ) | |||||
Revolving credit facility | (760 | ) | $ | (760 | ) | $ | (760 | ) | $ | (760 | ) | |||||
The fair values of the loans held for investment, net, were estimated by comparing the recorded amount of the loans to the fair value of the respective collateral. | ||||||||||||||||
The fair value of the mortgage notes payable was estimated using rates available to the Company for debt with similar terms and remaining maturities. | ||||||||||||||||
The fair value of the revolving credit facility and the mortgage note payable equals the carrying amount because the credit facility interest rate is variable. |
OPERATING_EXPENSE_LIMITATION
OPERATING EXPENSE LIMITATION | 9 Months Ended |
Sep. 30, 2013 | |
OPERATING EXPENSE LIMITATION WAIVER [Abstract] | ' |
OPERATING EXPENSE LIMITATION | ' |
OPERATING EXPENSE LIMITATION | |
Under its charter, the Company must limit its total operating expenses to the lesser of 2% of its average invested assets or 25% of its net income for the four most recently completed fiscal quarters, unless the conflicts committee of the Company’s board of directors has determined that such excess expenses were justified based on unusual and non-recurring factors. Operating expenses for the four fiscal quarters ended September 30, 2013 did not exceed the charter imposed limitation. |
GAIN_ON_INSURANCE_CLAIM
GAIN ON INSURANCE CLAIM | 9 Months Ended |
Sep. 30, 2013 | |
GAINS ON INSURANCE CLAIMS [Abstract] | ' |
GAIN ON INSURANCE CLAIM | ' |
GAIN ON INSURANCE CLAIM | |
On January 3, 2012, a fire damaged five units at the Town Park Apartments. The Company was insured for both the property damage and the loss of rental income. The Company reduced the net carrying value of the building and improvements by $98,000. During the nine months ended September 30, 2012, the Company received insurance proceeds of $275,000 and incurred $1,000 of related expenses. Accordingly, these expenses and the excess of proceeds over the carrying value of the property were recorded as insurance proceeds in excess of cost basis, which are included in (loss) income from discontinued operations. |
GAIN_ON_FORECLOSURE
GAIN ON FORECLOSURE | 9 Months Ended |
Sep. 30, 2013 | |
GAIN ON FORECLOSURE [Abstract] | ' |
GAIN ON FORECLOSURE | ' |
GAIN ON FORECLOSURE | |
On January 22, 2013, the Company completed the foreclosure of Deerfield. The Company’s fair value of the property exceeded the carrying value of the Deerfield Note by $148,000. After making adjustments to security deposits totaling $81,000, the Company recorded a net gain on foreclosure of $67,000. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
From October 1 to November 12, 2013, the Company raised an additional $84.6 million in offering proceeds through the issuance of 8.5 million shares of common stock. As of November 12, 2013, 23,653,626 shares remained available for sale to the public under the primary public offering, exclusive of shares available under the Company’s distribution reinvestment plan. | |
On October 25, 2013, the Company purchased a 437 unit multifamily community located in Alpharetta, Georgia from an unaffiliated seller for $26.3 million. | |
On October 29, 2013, the Company entered into a mortgage loan (the “Village Square Mortgage Loan”) with Berkadia Commercial Mortgage LLC, as lender, to borrow approximately $19.4 million. The Village Square Mortgage Loan matures on November 1, 2023 and bears interest at one-month LIBOR plus 2.41%. The Village Square Mortgage Loan requires monthly payments of interest only for the first year of its term, followed by monthly payments of principal and interest for the remainder of the term of the loan. The amount outstanding under the Village Square Mortgage Loan may be prepaid in full (i) during the first year of its term with the payment of a prepayment premium in the amount of 5% of the principal being repaid, (ii) after the first year of its term with the payment of a prepayment premium in the amount of 1% of the principal being repaid, and (iii) with no prepayment premium during the last three months of its term. The Village Square Mortgage Loan is secured by a first mortgage lien on the assets of Village Square, including the land, fixtures, improvements, leases, rents and reserves. | |
On October 29, 2013, the Company entered into a mortgage loan (the “Ivy Mortgage Loan”) with Berkadia Commercial Mortgage LLC, as lender, to borrow approximately$8.6 million. The Ivy Mortgage Loan matures on November 1, 2023 and bears interest at one-month LIBOR plus 2.41%. The Ivy Mortgage Loan requires monthly payments of interest only for the first year of its term, followed by monthly payments of principal and interest for the remainder of the term of the loan. The amount outstanding under the Ivy Mortgage Loan may be prepaid in full (i) during the first year of its term with the payment of a prepayment premium in the amount of 5% of the principal being repaid, (ii) after the first year of its term with the payment of a prepayment premium in the amount of 1% of the principal being repaid, and (iii) with no prepayment premium during the last three months of its term. The Ivy Mortgage Loan is secured by a first mortgage lien on the assets of Ivy at Clear Creek, including the land, fixtures, improvements, leases, rents and reserves. | |
On October 31, 2013, the Company entered into a mortgage loan (the “Deerfield Mortgage Loan”) with Amerisphere Multifamily Finance, L.L.C., as lender, to borrow approximately $10.5 million. The Deerfield Mortgage Loan matures on November 1, 2020 and bears interest at a fixed rate of 4.66%. The Deerfield Mortgage Loan requires monthly payments of interest only for the first two years of its term, followed by monthly payments of principal and interest for the remainder of the term of the loan. The amount outstanding under the Deerfield Mortgage Loan may be prepaid in full at any time with the payment of a prepayment premium in the amount of (i) the greater of 1% of the principal being repaid or the yield maintenance amount if the prepayment is made before October 31, 2016, (ii) 1% of the principal being repaid if the prepayment is made at any time on or after October 31, 2016 and before the last three months of its term, and (iii) no prepayment premium if the prepayment is made during the last three months of its term. The Deerfield Mortgage Loan is secured by a first mortgage lien on the assets of the Deerfield Luxury Townhomes, including the land, fixtures, improvements, leases, rents and reserves. | |
The Company has evaluated subsequent events and determined that no events have occurred, including those disclosed above, which would require an adjustment to the consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Principles of Consolidation | ' | ||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: | |||||||
Subsidiary | Apartment | Number | Location | ||||
Complex | of Units | ||||||
RRE Opportunity Holdings, LLC | N/A | N/A | N/A | ||||
Resource Real Estate Opportunity OP, LP | N/A | N/A | N/A | ||||
RRE 107th Avenue Holdings, LLC | 107th Avenue | 5 | Omaha, NE | ||||
RRE Westhollow Holdings, LLC | Arcadia | 404 | Houston, TX | ||||
RRE Crestwood Holdings, LLC (a) | Town Park (a) | 270 | Birmingham, AL | ||||
RRE Iroquois, LP | Vista Apartment Homes | 133 | Philadelphia, PA | ||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||
RRE Campus Club Holdings, LLC | Campus Club | 64 | Tampa, FL | ||||
RRE Bristol Holdings, LLC | The Redford | 856 | Houston, TX | ||||
RRE Cannery Holdings, LLC | Cannery Lofts | 156 | Dayton, OH | ||||
RRE Williamsburg Holdings, LLC | Williamsburg | 976 | Cincinnati, OH | ||||
RRE Skyview Holdings, LLC | Cityside Crossing | 360 | Houston, TX | ||||
RRE Park Forest Holdings, LLC | Mosaic | 216 | Oklahoma City, OK | ||||
RRE Foxwood Holdings, LLC | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||
RRE Flagstone Holdings, LLC | The Alcove | 292 | Houston, TX | ||||
RRE Deerfield Holdings, LLC | Deerfield | 166 | Hermantown, MN | ||||
RRE Kenwick Canterbury Holdings, LLC | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||
RRE Armand Place Holdings, LLC | Ivy at Clear Creek | 244 | Houston, TX | ||||
RRE Autumn Wood Holdings, LLC | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||
RRE Village Square Holdings, LLC | Village Square | 271 | Houston, TX | ||||
RRE Nob Hill Holdings, LLC | Nob Hill | 192 | Winter Park, FL | ||||
RRE Brentdale Holdings, LLC | Brentdale | 412 | Plano, TX | ||||
RRE Jefferson Point Holdings, LLC | Jefferson Point | 208 | Newport News, VA | ||||
RRE Centennial Holdings, LLC | Centennial | 276 | Littleton, CO | ||||
RRE Pinnacle Holdings, LLC | Pinnacle | 224 | Westminster, CO | ||||
N/A - Not Applicable | |||||||
(a) - Discontinued operations | |||||||
All intercompany accounts and transactions have been eliminated in consolidation. | |||||||
Use of Estimates | ' | ||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||
Rental Properties | ' | ||||||
The Company records acquired rental properties at fair value. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates using the straight line method. The Company anticipates the estimated useful lives of its assets by class as follows: | |||||||
Buildings | 27.5 years | ||||||
Building improvements | 3.0 to 27.5 years | ||||||
Tenant improvements | Shorter of lease term or expected useful life | ||||||
Impairment of Long-Lived Assets | ' | ||||||
When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for permanent impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. The review also considers factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. | |||||||
For properties to be held or used, an impairment loss will be recorded when such anticipated cash flows are less than the carrying value of the assets to the extent that the carrying value exceeds the estimated fair value of the properties. For properties held for sale, the impairment loss would be the adjustment to fair value less the estimated cost to dispose of the asset. | |||||||
Loans Held for Investment, Net | ' | ||||||
The Company records acquired performing loans held for investment at cost and reviews them for potential impairment at each balance sheet date. The Company considers a loan to be impaired if one of two conditions exists. The first condition is if, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition is if the loan is deemed to be a troubled-debt restructuring (“TDR”) where a concession has been given to a borrower in financial difficulty. A TDR may not have an associated specific loan loss allowance if the principal and interest amount is considered recoverable based on current market conditions, expected collateral performance and/or guarantees made by the borrowers. | |||||||
The amount of impairment, if any, is measured by comparing the recorded amount of the loan to the present value of the expected cash flows or, as a practical expedient, the fair value of the collateral. If a loan is deemed to be impaired, the Company records a reserve for loan losses through a charge to income for any shortfall. | |||||||
Interest income from performing loans held for investment is recognized based on the contractual terms of the loan agreement. Fees related to any buy down of the interest rate are deferred as prepaid interest income and amortized over the term of the loan as an adjustment to interest income. The initial investment made in a purchased performing loan includes the amount paid to the seller plus fees. The initial investment frequently differs from the related loan’s principal amount at the date of the purchase. The difference is recognized as an adjustment of the yield over the life of the loan. Closing costs related to the purchase of a performing loan held for investment are amortized over the term of the loan and accreted as an adjustment to interest income. | |||||||
The Company may acquire real estate loans at a discount due to the credit quality of such loans and the respective borrowers under such loans. Revenues from these loans are recorded under the effective interest method. Under this method, an effective interest rate (“EIR”) is applied to the cost basis of the real estate loan held for investment. The EIR that is calculated when the loan held for investment is acquired remains constant and is the basis for subsequent impairment testing and income recognition. However, if the amount and timing of future cash collections are not reasonably estimable, the Company accounts for the real estate receivable on the cost recovery method. Under the cost recovery method of accounting, no income is recognized until the basis of the loan held for investment has been fully recovered. | |||||||
Allocation of the Purchase Price of Acquired and Foreclosed Assets | ' | ||||||
The cost of rental properties acquired directly as fee interests and rental properties which are acquired through foreclosing on a loan are allocated to net tangible and intangible assets based on their relative fair values. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and to identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships. Fair value estimates are based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. In addition, the Company may obtain independent appraisal reports. The information in the appraisal reports along with the aforementioned information available to the Company's management is used in allocating the purchase price. The independent appraisers have no involvement in management's allocation decisions other than providing market information. | |||||||
In allocating the purchase price, management also includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up period. Management also estimates costs to execute similar leases, including leasing commissions and legal and other related expenses, to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. | |||||||
The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases. | |||||||
The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if it were vacant. Management’s estimates of value are made using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered by management in its analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. | |||||||
The total amount of other intangible assets acquired is further allocated to customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of the Company’s existing relationships with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. | |||||||
The Company amortizes the value of in-place leases to expense over the average remaining term of the respective leases. The value of customer relationship intangibles are amortized to expense over the initial term and any renewal periods in the respective leases, but in no event will the amortization periods for the intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles associated with that tenant would be charged to expense in that period. | |||||||
The determination of the fair value of assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the purchase price allocations, which could impact the amount of the Company’s reported net income. Initial purchase price allocations are subject to change until all information is finalized, which is generally within one year of the acquisition date. | |||||||
Discontinued Operations | ' | ||||||
Assuming no significant continuing involvement by the Company after the sale, the sale of a property is considered a discontinued operation. | |||||||
Revenue Recognition | ' | ||||||
The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease and includes amounts expected to be received in later years in deferred rents. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period in which the related expenses are incurred. | |||||||
The specific timing of a property disposition is measured against various criteria related to the terms of the transaction and any continuing involvement associated with the property. If the criteria for gain recognition under the full-accrual method are not met, the Company defers gain recognition and accounts for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery methods, as appropriate, until the appropriate criteria are met. | |||||||
Tenant Receivables | ' | ||||||
Tenant receivables are stated in the financial statements net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, the condition of the general economy and the industry as a whole. The Company writes off receivables when they become uncollectible. | |||||||
Deferred Offering Costs | ' | ||||||
Through September 30, 2013, the Advisor has advanced $4.1 million on behalf of the Company for the payment of public offering costs consisting of accounting, advertising, allocated payroll, due diligence, marketing, legal and similar costs. A portion of these costs is charged to equity upon the sale of each share of common stock sold under the public offering. Similarly, a portion of the proceeds received from the sales of shares in the Company's public offering is paid to the Advisor to reimburse it for the amount incurred on behalf of the Company. Deferred offering costs represent the portion of the total costs incurred that have not been charged to equity to date. As of September 30, 2013 and December 31, 2012, $4.1 million and $3.9 million, respectively, had been reimbursed to the Advisor. Upon completion of the public offering, any deferred offering costs in excess of reimbursements will be charged back to the Advisor. | |||||||
Income Taxes | ' | ||||||
To maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90% of its taxable net income (excluding net capital gains) to its stockholders as well as comply with other requirements, including certain asset, income and stock ownership tests. Accordingly, the Company generally will not be subject to corporate U.S. federal income taxes to the extent that it annually distributes at least 90% of its taxable net income to its stockholders. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it is subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it fails its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. | |||||||
The dividends-paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Generally, taxable income differs from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. | |||||||
The Company may elect to treat certain of its subsidiaries as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRSs may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. As of September 30, 2013 and December 31, 2012, the Company had no TRSs. | |||||||
The Company evaluates the benefits of tax positions taken or expected to be taken in its tax returns. Only the largest amount of benefits from tax positions that will more likely than not be sustainable upon examination are recognized by the Company. The Company does not have any unrecognized tax benefits, nor interest and penalties, recorded in its consolidated financial statements and does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next 12 months. | |||||||
The Company is subject to examination by the U.S. Internal Revenue Service and by the taxing authorities in other states in which the Company has significant business operations. The Company is not currently undergoing any examinations by taxing authorities. | |||||||
Earnings Per Share | ' | ||||||
Basic earnings per share are calculated on the basis of the weighted-average number of common shares outstanding during the period. Basic earnings per share are computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share take into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. Due to reported losses for the periods presented, 50,000 convertible shares (discussed in Note 13) are not included in the diluted earnings per share calculations. For the purposes of calculating earnings per share, all common shares and per common share information in the financial statements have been adjusted retroactively for the effect of seven 1.5% stock distributions, two 0.75% stock distributions, one 0.585% stock distribution, and one 0.5% stock distribution issued to stockholders. Common stock shares issued and authorized on the Consolidated Balance Sheets have also been adjusted retroactively for the effect of these 11 distributions. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Wholly Owned Subsidiaries Information | ' | ||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: | |||||||
Subsidiary | Apartment | Number | Location | ||||
Complex | of Units | ||||||
RRE Opportunity Holdings, LLC | N/A | N/A | N/A | ||||
Resource Real Estate Opportunity OP, LP | N/A | N/A | N/A | ||||
RRE 107th Avenue Holdings, LLC | 107th Avenue | 5 | Omaha, NE | ||||
RRE Westhollow Holdings, LLC | Arcadia | 404 | Houston, TX | ||||
RRE Crestwood Holdings, LLC (a) | Town Park (a) | 270 | Birmingham, AL | ||||
RRE Iroquois, LP | Vista Apartment Homes | 133 | Philadelphia, PA | ||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||
RRE Campus Club Holdings, LLC | Campus Club | 64 | Tampa, FL | ||||
RRE Bristol Holdings, LLC | The Redford | 856 | Houston, TX | ||||
RRE Cannery Holdings, LLC | Cannery Lofts | 156 | Dayton, OH | ||||
RRE Williamsburg Holdings, LLC | Williamsburg | 976 | Cincinnati, OH | ||||
RRE Skyview Holdings, LLC | Cityside Crossing | 360 | Houston, TX | ||||
RRE Park Forest Holdings, LLC | Mosaic | 216 | Oklahoma City, OK | ||||
RRE Foxwood Holdings, LLC | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||
RRE Flagstone Holdings, LLC | The Alcove | 292 | Houston, TX | ||||
RRE Deerfield Holdings, LLC | Deerfield | 166 | Hermantown, MN | ||||
RRE Kenwick Canterbury Holdings, LLC | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||
RRE Armand Place Holdings, LLC | Ivy at Clear Creek | 244 | Houston, TX | ||||
RRE Autumn Wood Holdings, LLC | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||
RRE Village Square Holdings, LLC | Village Square | 271 | Houston, TX | ||||
RRE Nob Hill Holdings, LLC | Nob Hill | 192 | Winter Park, FL | ||||
RRE Brentdale Holdings, LLC | Brentdale | 412 | Plano, TX | ||||
RRE Jefferson Point Holdings, LLC | Jefferson Point | 208 | Newport News, VA | ||||
RRE Centennial Holdings, LLC | Centennial | 276 | Littleton, CO | ||||
RRE Pinnacle Holdings, LLC | Pinnacle | 224 | Westminster, CO | ||||
N/A - Not Applicable | |||||||
(a) - Discontinued operations | |||||||
Estimated Useful Lives of Assets | ' | ||||||
The Company anticipates the estimated useful lives of its assets by class as follows: | |||||||
Buildings | 27.5 years | ||||||
Building improvements | 3.0 to 27.5 years | ||||||
Tenant improvements | Shorter of lease term or expected useful life |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
The following table presents supplemental cash flow information (in thousands): | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
Non-cash activities: | ||||||||
Investor contributions held in escrow which have converted to common stock | $ | 1,700 | $ | 2,389 | ||||
Properties and intangibles received on foreclosure of loans held for investment | 10,150 | 17,047 | ||||||
Financing provided for disposed property | 800 | — | ||||||
Stock distributions issued | 5,896 | 5,018 | ||||||
Distributions on common stock declared but not yet paid | 1,536 | 2,640 | ||||||
Stock issued from distribution reinvestment plan | 6,258 | 1,052 | ||||||
Deferred financing costs and escrow deposits funded directly by mortgage note | 865 | 611 | ||||||
and revolving credit facility | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 216 | $ | 227 | ||||
RENTAL_PROPERTIES_NET_Tables
RENTAL PROPERTIES, NET (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate Investments, Net [Abstract] | ' | |||||||
Investments in Rental Properties | ' | |||||||
The Company’s investments in rental properties consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Land | $ | 52,356 | $ | 16,378 | ||||
Building and improvements | 254,611 | 102,037 | ||||||
Furniture, fixtures and equipment | 11,176 | 5,872 | ||||||
Construction-in-progress | 1,102 | 1,083 | ||||||
319,245 | 125,370 | |||||||
Less: accumulated depreciation | (11,286 | ) | (4,272 | ) | ||||
$ | 307,959 | $ | 121,098 | |||||
LOANS_HELD_FOR_INVESTMENT_NET_
LOANS HELD FOR INVESTMENT, NET (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
LOANS HELD FOR INVESTMENT, NET [Abstract] | ' | ||||||||||||
Aging of Loans Held for Investment | ' | ||||||||||||
The following table provides the aging of the Company’s loans held for investment (dollars in thousands): | |||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Current | $ | 1,753 | 100% | $ | 959 | 9% | |||||||
Delinquent: | |||||||||||||
30−89 days | — | —% | 10,150 | 91% | |||||||||
90−180 days | — | —% | — | —% | |||||||||
Greater than 180 days | — | —% | — | —% | |||||||||
$ | 1,753 | 100% | $ | 11,109 | 100% | ||||||||
Credit Quality of Loans Held for Investment | ' | ||||||||||||
The following table provides information about the credit quality of the Company’s loans held for investment, net (in thousands): | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
Loans: | |||||||||||||
Performing | $ | 1,753 | $ | 959 | |||||||||
Nonperforming | — | 10,150 | |||||||||||
Total | $ | 1,753 | $ | 11,109 | |||||||||
Terms of Loans Held for Investment | ' | ||||||||||||
The following table provides information about the terms of the Company's loans held for investment (dollars in thousands): | |||||||||||||
Peterson | Trail Ridge | Heatherwood | |||||||||||
Note | Note | Note | |||||||||||
Maturity date | 12/31/13 | 10/28/21 | 5/17/16 | ||||||||||
Interest rate | 7.4 | % | 7.5 | % | 4 | % | |||||||
Average monthly payment | $ | 3 | $ | 8 | $ | 11 | |||||||
ACQUISITIONS_AND_FORECLOSURES_
ACQUISITIONS AND FORECLOSURES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The table below summarizes these acquisitions and the respective fair values assigned (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Multifamily | City and State | Date of | Purchase | Land | Building | Furniture, | Intangible | Other Assets | Other | Fair Valued | ||||||||||||||||||||||||||||
Community Name | Acquisition | Price (1) | and | Fixture | Assets | Liabilities | Assigned | |||||||||||||||||||||||||||||||
Improvements | and | |||||||||||||||||||||||||||||||||||||
Equipment | ||||||||||||||||||||||||||||||||||||||
Centennial | Littleton, CO | 9/30/13 | $ | 30,600 | (2) | $ | 7,041 | $ | 22,498 | $ | — | $ | 1,060 | $ | 24 | $ | (190 | ) | $ | 30,433 | ||||||||||||||||||
Pinnacle | Westminster, CO | 9/30/13 | 24,250 | (2) | 4,325 | 19,033 | — | 892 | 20 | (147 | ) | 24,123 | ||||||||||||||||||||||||||
Jefferson Point | Newport News, VA | 9/9/13 | 18,250 | (2) | 5,533 | 12,332 | — | 385 | 23 | (59 | ) | 18,214 | ||||||||||||||||||||||||||
Brentdale | Plano, TX | 7/25/13 | 32,200 | (2) | 5,604 | 25,936 | — | 660 | 52 | (317 | ) | 31,935 | ||||||||||||||||||||||||||
Nob Hill | Winter Park, FL | 6/27/13 | 10,100 | (2) | 3,659 | 5,987 | — | 454 | 50 | (61 | ) | 10,089 | ||||||||||||||||||||||||||
Village Square | Spring, Texas | 6/24/13 | 27,200 | (2) | 4,625 | 22,369 | — | 206 | 40 | (170 | ) | 27,070 | ||||||||||||||||||||||||||
Retreat at Rocky Ridge | Hoover, Alabama | 4/18/13 | 8,500 | 1,616 | 6,418 | 30 | 436 | 2 | (89 | ) | 8,413 | |||||||||||||||||||||||||||
Ivy at Clear Creek | Houston, TX | 3/28/13 | 11,750 | (2) | 1,877 | 9,175 | 28 | 670 | 8 | (127 | ) | 11,631 | ||||||||||||||||||||||||||
One Hundred Chevy Chase Apartments | Lexington, KY | 3/13/13 | 6,850 | 1,323 | 4,981 | 41 | 505 | 7 | (101 | ) | 6,756 | |||||||||||||||||||||||||||
Deerfield | Hermantown | 1/22/13 | (3) | 10,300 | (2) | 1,028 | 8,592 | — | 680 | 1 | (4 | ) | 10,297 | |||||||||||||||||||||||||
MN | ||||||||||||||||||||||||||||||||||||||
The Alcove | Houston, TX | 12/21/12 | 5,500 | 1,202 | 3,865 | 20 | 413 | 54 | (13 | ) | 5,541 | |||||||||||||||||||||||||||
Cityside Crossing | Houston, TX | 12/19/12 | 14,425 | (2) | 1,949 | 11,676 | 37 | 763 | 49 | (68 | ) | 14,406 | ||||||||||||||||||||||||||
The Reserve at | Memphis, TN | 12/7/12 | 2,275 | 775 | 1,124 | 39 | 337 | 16 | (90 | ) | 2,201 | |||||||||||||||||||||||||||
Mount Moriah | ||||||||||||||||||||||||||||||||||||||
Mosaic | Oklahoma City, OK | 12/6/12 | 2,050 | (2) | 545 | 1,422 | 16 | 67 | 14 | (16 | ) | 2,048 | ||||||||||||||||||||||||||
Williamsburg Apartments | Cincinnati, OH | 6/20/12 | 41,250 | 3,223 | 35,111 | 1,007 | 1,909 | 49 | (274 | ) | 41,025 | |||||||||||||||||||||||||||
Cannery Lofts | Dayton, OH | 6/6/12 | (4) | 7,100 | 160 | 7,913 | 200 | 609 | 35 | — | 8,917 | |||||||||||||||||||||||||||
The Redford | Houston, TX | 3/27/12 | 11,400 | 4,073 | 5,235 | 262 | 1,558 | 272 | — | 11,400 | ||||||||||||||||||||||||||||
Campus Club | Tampa, FL | 2/21/12 | (5) | 8,300 | 1,650 | 6,250 | 200 | 435 | — | — | 8,535 | |||||||||||||||||||||||||||
Apartments | ||||||||||||||||||||||||||||||||||||||
Vista Apartment | Philadelphia, PA | 8/2/11 | (6) | 12,000 | 1,163 | 9,913 | — | 535 | 530 | (141 | ) | 12,000 | ||||||||||||||||||||||||||
Homes | ||||||||||||||||||||||||||||||||||||||
Arcadia at | Houston, TX | 10/5/10 | (7) | 7,800 | 943 | 6,599 | — | 258 | — | — | 7,800 | |||||||||||||||||||||||||||
Westheimer | ||||||||||||||||||||||||||||||||||||||
107th Avenue | Omaha, NE | 8/26/10 | 250 | 25 | 196 | — | 4 | — | — | 225 | ||||||||||||||||||||||||||||
-1 | Purchase price excludes closing costs and acquisition expenses. For properties acquired through foreclosure, the purchase price reflects the contract purchase price of the note. | |||||||||||||||||||||||||||||||||||||
-2 | Asset valuations are based on preliminary valuations at the date of purchase. The Company is in the process of obtaining an appraisal to finalize the valuation. The Company has up to 12 months from the date of acquisition to finalize the valuation. | |||||||||||||||||||||||||||||||||||||
-3 | Deerfield originally served as the collateral for a non-performing note that the Company purchased on March 21, 2012. On July 19, 2012, the Company was the successful bidder at a foreclosure sale and formally received title to the property on January 22, 2013. | |||||||||||||||||||||||||||||||||||||
-4 | Cannery Lofts originally served as the collateral for a non-performing note that the Company purchased on May 13, 2011. On December 21, 2011, the Company entered into a settlement agreement with the borrower and, subsequently, the Company foreclosed and formally received title to the property on June 6, 2012. | |||||||||||||||||||||||||||||||||||||
-5 | Campus Club Apartments originally served as collateral for a non-performing note that the Company purchased on October 21, 2011. On February 9, 2012, the Company was the successful bidder at a foreclosure sale and took title to the property on February 21, 2012. | |||||||||||||||||||||||||||||||||||||
-6 | Vista Apartment Homes, formerly known as Iroquois Apartments, originally served as the collateral for a non-performing promissory note that the Company purchased on June 17, 2011. On August 2, 2011, the Company was the successful bidder at a sheriff's sale and formally received title to the property. | |||||||||||||||||||||||||||||||||||||
-7 | Arcadia at Westheimer originally served as the collateral for a non-performing promissory note that the Company purchased on September 3, 2010. The Company commenced foreclosure proceedings and, on October 5, 2010, formally received title to the property. | |||||||||||||||||||||||||||||||||||||
Deerfield Note Property - Hermantown, Minnesota [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,028 | ||||||||||||||||||||||||||||||||||||
Buildings | 8,592 | |||||||||||||||||||||||||||||||||||||
9,620 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 680 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 1 | |||||||||||||||||||||||||||||||||||||
Security deposits | (4 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 10,297 | ||||||||||||||||||||||||||||||||||||
One Hundred Chevy Chase - Lexington, Kentucky [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,323 | ||||||||||||||||||||||||||||||||||||
Buildings | 4,981 | |||||||||||||||||||||||||||||||||||||
Personal Property | 41 | |||||||||||||||||||||||||||||||||||||
6,345 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 505 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 7 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (17 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (10 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (74 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 6,756 | ||||||||||||||||||||||||||||||||||||
Ivy at Clear Creek - Houston, TX [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,877 | ||||||||||||||||||||||||||||||||||||
Buildings | 9,175 | |||||||||||||||||||||||||||||||||||||
Personal Property | 28 | |||||||||||||||||||||||||||||||||||||
11,080 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 670 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 8 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (68 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (14 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (45 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 11,631 | ||||||||||||||||||||||||||||||||||||
Retreat at Rocky Ridge - Hoover, Alabama [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 1,616 | ||||||||||||||||||||||||||||||||||||
Buildings | 6,418 | |||||||||||||||||||||||||||||||||||||
Personal Property | 30 | |||||||||||||||||||||||||||||||||||||
8,064 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 436 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 2 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (67 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (6 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (16 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 8,413 | ||||||||||||||||||||||||||||||||||||
Village Square - Houston, Texas [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 4,625 | ||||||||||||||||||||||||||||||||||||
Buildings | 22,369 | |||||||||||||||||||||||||||||||||||||
26,994 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 206 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 40 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (132 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (8 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (30 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 27,070 | ||||||||||||||||||||||||||||||||||||
Nob Hill - Winter Park, FL [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 3,659 | ||||||||||||||||||||||||||||||||||||
Buildings | 5,987 | |||||||||||||||||||||||||||||||||||||
9,646 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 454 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 50 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (39 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (18 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 10,089 | ||||||||||||||||||||||||||||||||||||
Brentdale - Plano, TX [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 5,604 | ||||||||||||||||||||||||||||||||||||
Buildings | 25,936 | |||||||||||||||||||||||||||||||||||||
31,540 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 660 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 52 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (244 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (69 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 31,935 | ||||||||||||||||||||||||||||||||||||
Jefferson Point - Newport News, VA [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 5,533 | ||||||||||||||||||||||||||||||||||||
Buildings | 12,332 | |||||||||||||||||||||||||||||||||||||
17,865 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 385 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 23 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (37 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (4 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (18 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 18,214 | ||||||||||||||||||||||||||||||||||||
Pinnacle - Westminister, CO [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 4,325 | ||||||||||||||||||||||||||||||||||||
Buildings | 19,033 | |||||||||||||||||||||||||||||||||||||
23,358 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 892 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 20 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (99 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (8 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (40 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 24,123 | ||||||||||||||||||||||||||||||||||||
Centennial - Littleton, CO [Member] | ' | |||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | |||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired | ' | |||||||||||||||||||||||||||||||||||||
The following table reflects the estimated values of the net assets acquired (in thousands): | ||||||||||||||||||||||||||||||||||||||
Rental property: | ||||||||||||||||||||||||||||||||||||||
Land | $ | 7,041 | ||||||||||||||||||||||||||||||||||||
Buildings | 22,498 | |||||||||||||||||||||||||||||||||||||
29,539 | ||||||||||||||||||||||||||||||||||||||
Acquired intangibles − in-place leases | 1,060 | |||||||||||||||||||||||||||||||||||||
Prepaid insurance | 24 | |||||||||||||||||||||||||||||||||||||
Accrued real estate taxes | (122 | ) | ||||||||||||||||||||||||||||||||||||
Prepaid rents | (12 | ) | ||||||||||||||||||||||||||||||||||||
Security deposits | (56 | ) | ||||||||||||||||||||||||||||||||||||
Estimated fair value assigned | $ | 30,433 | ||||||||||||||||||||||||||||||||||||
DISPOSITION_OF_PROPERTIES_AND_1
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Results of Discontinued Operations | ' | ||||||||||||||||
The results of discontinued operations are summarized for the three and nine months ended September 30, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
Rental income | $ | — | $ | 777 | $ | 1,081 | $ | 2,118 | |||||||||
Gain on foreclosure | — | 36 | — | 1,232 | |||||||||||||
Total revenues | — | 813 | 1,081 | 3,350 | |||||||||||||
Expenses: | |||||||||||||||||
Rental operating | 23 | 609 | 810 | 1,755 | |||||||||||||
Acquisition Costs | — | — | — | 3 | |||||||||||||
Management fees - related parties | — | 46 | 62 | 130 | |||||||||||||
General and administrative | 1 | 85 | 225 | 271 | |||||||||||||
Loss on property impairment | — | — | 539 | — | |||||||||||||
Depreciation and amortization expense | — | 209 | 141 | 547 | |||||||||||||
Total expenses | 24 | 949 | 1,777 | 2,706 | |||||||||||||
(Loss) income from discontinued operations | (24 | ) | (136 | ) | (696 | ) | 644 | ||||||||||
Gain on dispositions | — | — | 3,173 | — | |||||||||||||
Insurance proceeds in excess of cost basis | — | 25 | 175 | ||||||||||||||
(Loss) income from discontinued operations, net | $ | (24 | ) | $ | (111 | ) | $ | 2,477 | $ | 819 | |||||||
Weighted average common shares outstanding | 36,156 | 15,953 | 33,055 | 12,979 | |||||||||||||
Basic and diluted (loss) income per common share | $ | — | $ | (0.01 | ) | $ | 0.08 | $ | 0.06 | ||||||||
IDENTIFIED_INTANGIBLE_ASSETS_N1
IDENTIFIED INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Expected Amortization for Rental and Antennae Leases | ' | |||
Expected amortization for the rental and antennae leases for the next five years ending September 30, and thereafter, is as follows (in thousands): | ||||
2014 | $ | 3,698 | ||
2015 | 16 | |||
2016 | 16 | |||
2017 | 16 | |||
2018 | 16 | |||
Thereafter | 118 | |||
$ | 3,880 | |||
MORTGAGE_NOTES_PAYABLE_Tables
MORTGAGE NOTES PAYABLE (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||
Summary of the Mortgage Note Payable | ' | ||||||||||||
The following is a summary of the mortgage notes payable (dollars in thousands): | |||||||||||||
Collateral | Balance | Maturity | Annual | Average | |||||||||
Outstanding at | Date | Interest Rate | Monthly Debt | ||||||||||
30-Sep-13 | Service | ||||||||||||
Vista Apartment Homes | $ | 8,896 | 5/1/17 | 2.79% | (1) | $ | 38 | ||||||
Cannery Lofts | 8,190 | 9/1/20 | 3.48% | (2) | 24 | ||||||||
-1 | One-month LIBOR (0.179% as of September 30, 2013) plus 2.61% margin. | ||||||||||||
-2 | One-month LIBOR plus 3.30% margin. | ||||||||||||
Annual Principal Payments on the Mortgage Note Payable | ' | ||||||||||||
Annual principal payments on the mortgage notes payable for each of the next five years ending September 30 are as follows (in thousands): | |||||||||||||
2014 | $ | 200 | |||||||||||
2015 | 206 | ||||||||||||
2016 | 1,920 | ||||||||||||
2017 | 9,916 | ||||||||||||
2018 | 1,693 | ||||||||||||
Thereafter | $ | 3,151 | |||||||||||
$ | 17,086 | ||||||||||||
DEFERRED_FINANCING_COSTS_Table
DEFERRED FINANCING COSTS (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
DEFERRED FINANCING COSTS [Abstract] | ' | |||
Estimated Amortization of the Existing Deferred Financing Costs | ' | |||
Estimated amortization of the existing deferred financing costs for the next five years ending September 30, is as follows (in thousands): | ||||
2014 | $ | 230 | ||
2015 | 205 | |||
2016 | 204 | |||
2017 | 142 | |||
2018 | 29 | |||
Thereafter | 55 | |||
$ | 865 | |||
CERTAIN_RELATIONSHIPS_AND_RELA1
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Receivables from and Payables to Related Parties | ' | ||||||||||||||||
The fees earned / expenses paid and the amounts payable to such related parties are summarized in the following tables (in thousands): | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Receivables from related parties: | |||||||||||||||||
RAI and affiliates | $ | 466 | $ | — | |||||||||||||
Payables to related parties: | |||||||||||||||||
Advisor: | |||||||||||||||||
Acquisition fees | $ | 155 | $ | — | |||||||||||||
Asset management fees | — | 10 | |||||||||||||||
Organization and operating costs | 4 | — | |||||||||||||||
Expense reimbursements | 88 | 28 | |||||||||||||||
Resource Real Estate Opportunity Manager, LLC: | |||||||||||||||||
Property management fees | 305 | 103 | |||||||||||||||
Operating expense reimbursements | 666 | 262 | |||||||||||||||
Resource Securities, Inc. | |||||||||||||||||
Selling commissions and dealer manager fees | 244 | 268 | |||||||||||||||
$ | 1,462 | $ | 671 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Fees earned / expenses paid to related parties: | |||||||||||||||||
Advisor: | |||||||||||||||||
Acquisition fees | $ | 2,468 | $ | (50 | ) | $ | 4,300 | $ | 1,628 | ||||||||
Asset management fees | $ | 717 | $ | 309 | $ | 1,640 | $ | 659 | |||||||||
Dispositions fees | $ | — | $ | — | $ | 116 | $ | — | |||||||||
Debt financing fees | $ | 41 | $ | — | $ | 41 | $ | 119 | |||||||||
Organization and offering costs | $ | 71 | $ | — | $ | 274 | $ | 291 | |||||||||
Overhead allocation | $ | 131 | $ | 89 | $ | 329 | $ | 477 | |||||||||
Resource Real Estate Opportunity Manager LLC: | |||||||||||||||||
Property management fees | $ | 482 | $ | 300 | $ | 1,256 | $ | 617 | |||||||||
Debt servicing fees | $ | 2 | $ | 1 | $ | 4 | $ | 3 | |||||||||
Resource Securities, Inc.: | |||||||||||||||||
Selling commissions and dealer manager fees | $ | 10,031 | $ | 3,078 | $ | 21,887 | $ | 8,084 | |||||||||
Other: | |||||||||||||||||
Ledgewood | $ | 56 | $ | 18 | $ | 138 | $ | 43 | |||||||||
Graphic Images | $ | 120 | $ | 139 | $ | 340 | $ | 464 | |||||||||
EQUITY_Tables
EQUITY (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Equity [Abstract] | ' | ||||||||||||||
Schedule of Shares Issued | ' | ||||||||||||||
As of September 30, 2013, the Company had issued an aggregate of 46,581,720 shares of its $0.01 par value common stock as follows (dollars in thousands): | |||||||||||||||
Shares Issued | Gross Proceeds | ||||||||||||||
Shares issued through private offering | 1,263,727 | $ | 12,500 | ||||||||||||
Shares issued through primary public offering | 42,966,691 | 427,600 | |||||||||||||
Shares issued through stock distributions | 1,566,394 | — | |||||||||||||
Shares issued through distribution reinvestment plan | 769,408 | 7,300 | |||||||||||||
Shares issued in conjunction with the Advisor's initial investment, | 15,500 | 200 | |||||||||||||
net of 4,500 share conversion | |||||||||||||||
Total | 46,581,720 | $ | 447,600 | ||||||||||||
Schedule of Dividend Distributions | ' | ||||||||||||||
For the nine months ended September 30, 2013, the Company paid aggregate distributions of $9.4 million, including $3.2 million of distributions paid in cash and $6.3 million of distributions reinvested through its distribution reinvestment plan, as follows: | |||||||||||||||
Distribution | |||||||||||||||
Per | Invested in | ||||||||||||||
Record | Common | Distribution | shares of | Aggregate | |||||||||||
Date | Share | Date | Common Stock | Distribution | |||||||||||
December 31, 2012 | $ | 0.075 | January 15, 2013 | $ | 1,053 | $ | 1,671 | ||||||||
January 31, 2013 | 0.025 | February 15, 2013 | 382 | 599 | |||||||||||
February 28, 2013 | 0.025 | March 15, 2013 | 420 | 647 | |||||||||||
April 1, 2013 | 0.025 | April 15, 2013 | 466 | 709 | |||||||||||
April 30, 2013 | 0.025 | May 1, 2013 | 512 | 770 | |||||||||||
May 31, 2013 | 0.033 | June 3, 2013 | 744 | 1,104 | |||||||||||
June 28, 2013 | 0.033 | July 1, 2013 | 804 | 1,183 | |||||||||||
July 31, 2013 | 0.033 | August 1, 2013 | 890 | 1,302 | |||||||||||
August 30, 2013 | 0.033 | September 3, 2013 | 983 | 1,424 | |||||||||||
$ | 6,254 | $ | 9,409 | ||||||||||||
FAIR_VALUE_MEASUREMENTS_AND_DI1
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Rental Properties, Net, Measured at Fair Value on a Non-recurring Basis | ' | |||||||||||||||
The following table presents information about the Company’s rental properties measured at fair value on a non-recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value (in thousands): | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
September 30, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Deerfield | $ | — | $ | — | $ | 10,297 | $ | 10,297 | ||||||||
Rental properties, net | $ | — | $ | — | $ | 10,297 | $ | 10,297 | ||||||||
31-Dec-12 | ||||||||||||||||
Assets: | ||||||||||||||||
Cannery | $ | — | $ | — | $ | 8,917 | $ | 8,917 | ||||||||
Heatherwood | — | — | 1,889 | 1,889 | ||||||||||||
Campus Club | — | — | 8,535 | 8,535 | ||||||||||||
Rental properties, net | $ | — | $ | — | $ | 19,341 | $ | 19,341 | ||||||||
Carrying and Fair Values of the Company's Loans Held for Investment, Net, Mortgage Note Payable and Revolving Credit Facility | ' | |||||||||||||||
The carrying and fair values of the Company’s loans held for investment, net, mortgage note payable and revolving credit facility were as follows (in thousands): | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Loans held for investment, net | $ | 1,753 | $ | 1,753 | $ | 11,109 | $ | 11,109 | ||||||||
Mortgage notes payable | (17,086 | ) | $ | (16,518 | ) | $ | (9,043 | ) | $ | (9,043 | ) | |||||
Revolving credit facility | (760 | ) | $ | (760 | ) | $ | (760 | ) | $ | (760 | ) | |||||
NATURE_OF_BUSINESS_AND_OPERATI1
NATURE OF BUSINESS AND OPERATIONS (Narrative) (Details) (USD $) | 9 Months Ended | 39 Months Ended | 39 Months Ended | 9 Months Ended | 39 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 16, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 09, 2010 | Sep. 15, 2009 | Sep. 15, 2009 | Jun. 17, 2009 | Jun. 30, 2010 | Jun. 09, 2010 | Sep. 15, 2009 | Jun. 09, 2010 | 30-May-13 | Sep. 30, 2013 | Jun. 16, 2010 | 30-May-13 | |
Common Stock | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Follow-on Public Offering [Member] | |||||
Maximum [Member] | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Convertible Stock | Convertible Stock | Convertible Stock | Common Stock | Common Stock | ||||||||||
Maximum [Member] | Advisor [Member] | Advisor [Member] | Maximum [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | Maximum [Member] | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||
Securities Financing Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity organized date | 3-Jun-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage the advisor has agreed to invest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount invested by non affiliated investors | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount agreed by advisor to be invested maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | 44,999,826 | ' | ' | ' | ' | 276,000 | ' | ' | 1,283,727 | ' | ' | 20,000 | ' | 5,000 | ' | 4,063 | ' | ' | ' | ' |
Proceeds from issuance of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | 12,800,000 | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares under offering (in shares) | 1,000,000,000 | ' | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' |
Sale price of share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | $1 | ' | ' | $9.50 | ' | ' |
Net proceeds from issuance from private placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of syndication costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock acquired by outside investors (in shares) | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 937 | ' | ' | ' | ' | ' | ' |
Common shares converted by advisor (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,500 | ' | ' | ' | ' | ' | ' | ' |
Convertible shares issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | 230,363,000 | 84,192,000 | 447,600,000 | ' | 447,500,000 | 427,600,000 | ' | ' | ' | ' | ' | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of common stock to be registered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | 350,000,000 |
Amount of common stock to be sold | ' | ' | ' | ' | ' | ' | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Property | Convertible Stock | Convertible Stock | Convertible Stock | Convertible Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Advisor [Member] | Advisor [Member] | ||||
Distribution | Dividend Distribution One [Member] | Dividend Distribution Two [Member] | Dividend Distribution Three [Member] | Dividend Distribution Four [Member] | |||||||||||
Distribution | Distribution | Distribution | Distribution | ||||||||||||
Impairment of Long Lived Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on property impairment | $0 | $539,000 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of impaired properties | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of Purchase Price of Acquired Assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial purchase price allocation subject to change, period | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum rental payments to be received from noncancelable operating leases - 12 month period ending September 30, 2014 | 27,400,000 | 27,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future minimum rental payments to be received from noncancelable operating leases - 12 month period ending September, 2015 | 195,000 | 195,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tenant Receivable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for uncollectable receivables | 6,000 | 6,000 | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Offering Costs [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advanced deferred offering cost | 0 | 0 | ' | 3,015,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' |
Reimbursement of offering cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,100,000 | $3,900,000 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage distribution (in hundredths) | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years entity may be precluded from REIT qualifications (in years) | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible stock excluded from earnings per share calculation (in shares) | ' | ' | ' | ' | 50,000 | 50,000 | 50,000 | 50,000 | ' | ' | ' | ' | ' | ' | ' |
Number of stock distributions | ' | ' | ' | ' | ' | ' | ' | ' | 11 | 7 | 2 | 1 | 1 | ' | ' |
Common stock dividend rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 0.75% | 0.59% | 0.50% | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Principles of Consolidation) (Details) | 9 Months Ended | |
Sep. 30, 2013 | ||
RRE Opportunity Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'N/A | |
Location | 'N/A | |
Resource Real Estate Opportunity OP, LP [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'N/A | |
Location | 'N/A | |
RRE 107th Avenue Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | '107th Avenue | |
Number of Units | 5 | |
Location | 'Omaha, NE | |
RRE Westhollow Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Arcadia | |
Number of Units | 404 | |
Location | 'Houston, TX | |
RRE Crestwood Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Town Park | [1] |
Number of Units | 270 | |
Location | 'Birmingham, AL | |
RRE Iroquois, LP [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Vista Apartment Homes | |
Number of Units | 133 | |
Location | 'Philadelphia, PA | |
RRE Iroquois Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'N/A | |
Location | 'N/A | |
RRE Campus Club Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Campus Club | |
Number of Units | 64 | |
Location | 'Tampa, FL | |
RRE Bristol Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'The Redford | |
Number of Units | 856 | |
Location | 'Houston, TX | |
RRE Cannery Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Cannery Lofts | |
Number of Units | 156 | |
Location | 'Dayton, OH | |
RRE Williamsburg Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Williamsburg | |
Number of Units | 976 | |
Location | 'Cincinnati, OH | |
RRE Skyview Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Cityside Crossing | |
Number of Units | 360 | |
Location | 'Houston, TX | |
RRE Park Forest Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Mosaic | |
Number of Units | 216 | |
Location | 'Oklahoma City, OK | |
RRE Foxwood Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'The Reserve at Mt. Moriah | |
Number of Units | 220 | |
Location | 'Memphis, TN | |
RRE Flagstone Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'The Alcove | |
Number of Units | 292 | |
Location | 'Houston, TX | |
RRE Deerfield Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Deerfield | |
Number of Units | 166 | |
Location | 'Hermantown, MN | |
RRE Kenwick Canterbury Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'One Hundred Chevy Chase Apartments | |
Number of Units | 244 | |
Location | 'Lexington, KY | |
RRE Armand Place Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Ivy at Clear Creek | |
Number of Units | 244 | |
Location | 'Houston, TX | |
Autumn Wood Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Retreat at Rocky Ridge | |
Number of Units | 196 | |
Location | 'Hoover, AL | |
RRE Village Square Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Village Square | |
Number of Units | 271 | |
Location | 'Houston, TX | |
RRE Nob Hill Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Nob Hill | |
Number of Units | 192 | |
Location | 'Winter Park, FL | |
RRE Brentdale Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Brentdale | |
Number of Units | 412 | |
Location | 'Plano, TX | |
RRE Jefferson Point Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Jefferson Point | |
Number of Units | 208 | |
Location | 'Newport News, VA | |
RRE Centennial Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Centennial | |
Number of Units | 276 | |
Location | 'Littleton, CO | |
RRE Pinnacle Holdings, LLC [Member] | ' | |
Subsidiary or Equity Method Investee [Line Items] | ' | |
Apartment Complex | 'Pinnacle | |
Number of Units | 224 | |
Location | 'Westminster, CO | |
[1] | Discontinued operations |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Rental Property Useful Lives) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Building [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful life | '27 years 6 months |
Building Improvements [Member] | Minimum [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful life | '3 years |
Building Improvements [Member] | Maximum [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful life | '27 years 6 months |
Tenant improvements [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful life description | 'Shorter of lease term or expected useful life |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Non-cash activities: | ' | ' | ' |
Investor contributions held in escrow which have converted to common stock | $1,700 | $2,389 | ' |
Properties and intangibles received on foreclosure of loans held for investment | 10,150 | 17,047 | ' |
Financing provided for disposed property | 800 | 0 | ' |
Stock distributions issued | 5,896 | 5,018 | ' |
Distributions on common stock declared but not yet paid | 1,536 | 2,640 | 1,671 |
Stock issued from distribution reinvestment plan | 6,258 | 1,052 | ' |
Deferred financing costs and escrow deposits funded directly by mortgage note and revolving credit facility | 865 | 611 | ' |
Cash paid during the period for: | ' | ' | ' |
Interest | $216 | $227 | ' |
RENTAL_PROPERTIES_NET_Details
RENTAL PROPERTIES, NET (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments in rental properties [Abstract] | ' | ' | ' |
Land | $52,356,000 | ' | $16,378,000 |
Building and improvements | 254,611,000 | ' | 102,037,000 |
Furniture, fixtures and equipment | 11,176,000 | ' | 5,872,000 |
Construction-in-progress | 1,102,000 | ' | 1,083,000 |
Rental properties, gross | 319,245,000 | ' | 125,370,000 |
Less: accumulated depreciation | -11,286,000 | ' | -4,272,000 |
Rental properties, net | 307,959,000 | ' | 121,098,000 |
Depreciation expense | $7,100,000 | $1,700,000 | ' |
LOANS_HELD_FOR_INVESTMENT_NET_1
LOANS HELD FOR INVESTMENT, NET (Narrative) (Details) (USD $) | 0 Months Ended | |||||||
Aug. 02, 2011 | Mar. 15, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Apr. 18, 2013 | |
Promissory_Note | Promissory_Note | Promissory_Note | Performing [Member] | Performing [Member] | Heatherwood Note [Member] | |||
Mortgage Receivable [Member] | Mortgage Receivable [Member] | Mortgage Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non-performing promissory notes purchased | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of performing promissory notes purchased | ' | 2 | ' | ' | ' | ' | ' | ' |
Purchase price of promissory note | ' | $3,100,000 | ' | ' | ' | ' | ' | ' |
Number of nonperforming promissory notes into forbearance agreement | 1 | ' | ' | ' | ' | ' | ' | ' |
Face value of notes | ' | ' | ' | ' | ' | 2,100,000 | 1,300,000 | 800,000 |
Purchase discount, net | ' | ' | 296,000 | 316,000 | ' | ' | ' | ' |
Unpaid loan balance | ' | ' | 238,000 | ' | ' | ' | ' | ' |
Number of unimpaired loans | ' | ' | 2 | ' | ' | ' | ' | ' |
Allowance for credit losses or charge-offs | ' | ' | $0 | ' | $0 | ' | ' | ' |
LOANS_HELD_FOR_INVESTMENT_NET_2
LOANS HELD FOR INVESTMENT, NET (Schedule of Loans Held for Investment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | $1,753 | $11,109 |
Percentage of loan to total loans (in hundredths) | 100.00% | 100.00% |
Current [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | 1,753 | 959 |
Percentage of loan to total loans (in hundredths) | 100.00% | 9.00% |
30-89 Days [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | 0 | 10,150 |
Percentage of loan to total loans (in hundredths) | 0.00% | 91.00% |
90 - 180 Days [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | 0 | 0 |
Percentage of loan to total loans (in hundredths) | 0.00% | 0.00% |
Greater Than 180 Days [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | $0 | $0 |
Percentage of loan to total loans (in hundredths) | 0.00% | 0.00% |
LOANS_HELD_FOR_INVESTMENT_NET_3
LOANS HELD FOR INVESTMENT, NET (Recorded Investment, Credit Quality Indicator) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | $1,753 | $11,109 |
Performing [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | 1,753 | 959 |
Nonperforming [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | $0 | $10,150 |
LOANS_HELD_FOR_INVESTMENT_NET_4
LOANS HELD FOR INVESTMENT, NET (Terms of Loans Held for Investment) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Peterson Note [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Interest rate | 7.40% |
Average monthly payment | $3 |
Trail Ridge Note [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Interest rate | 7.50% |
Average monthly payment | 8 |
Heatherwood Note [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Interest rate | 4.00% |
Average monthly payment | $11 |
ACQUISITIONS_AND_FORECLOSURES_1
ACQUISITIONS AND FORECLOSURES (Cumulative Acquisitions) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 09, 2013 | Jul. 25, 2013 | Jun. 27, 2013 | Jun. 24, 2013 | Apr. 18, 2013 | Mar. 28, 2013 | Mar. 13, 2013 | Jan. 22, 2013 | Dec. 21, 2012 | Dec. 19, 2012 | Dec. 07, 2012 | Dec. 06, 2012 | Jun. 20, 2012 | Jun. 06, 2012 | Mar. 27, 2012 | Feb. 21, 2012 | Aug. 02, 2011 | Oct. 05, 2010 | Aug. 26, 2010 | |||||||||||||||||||||
Property | Centennial - Littleton, CO [Member] | Pinnacle - Westminister, CO [Member] | Jefferson Point - Newport News, VA [Member] | Brentdale - Plano, TX [Member] | Nob Hill - Winter Park, FL [Member] | Village Square - Houston, Texas [Member] | Retreat at Rocky Ridge - Hoover, Alabama [Member] | Ivy at Clear Creek - Houston, TX [Member] | One Hundred Chevy Chase - Lexington, Kentucky [Member] | Deerfield Note Property - Hermantown, Minnesota [Member] | The Alcove - Houston, TX [Member] | Cityside Crossing - Houston, TX [Member] | The Reserve at Mount Moriah - Memphis, TN [Member] | Mosaic - Oklahoma City, OK [Member] | Williamsburg Apartments - Cincinnati, OH [Member] | Cannery Lofts - Dayton, OH [Member] | The Redford - Houston, TX [Member] | Campus Club Apartments - Tampa, FL [Member] | Vista Apartment Homes - Philadelphia, PA [Member] | Arcadia at Westheimer - Houston, TX [Member] | 107th Avenue - Omaha, NE [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||
Cumulative number of properties acquired and owned | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||
Purchase Price | ' | $30,600 | [1],[2] | $24,250 | [1],[2] | $18,250 | [1],[2] | $32,200 | [1],[2] | $10,100 | [1],[2] | $27,200 | [1],[2] | $8,500 | [1] | $11,750 | [1],[2] | $6,850 | [1] | $10,300 | [1],[2],[3] | $5,500 | [1] | $14,425 | [1],[2] | $2,275 | [1] | $2,050 | [1],[2] | $41,250 | [1] | $7,100 | [1],[4] | $11,400 | [1] | $8,300 | [1],[5] | $12,000 | [1],[6] | $7,800 | [1],[7] | $250 | [1] |
Land | ' | 7,041 | [2] | 4,325 | [2] | 5,533 | [2] | 5,604 | [2] | 3,659 | [2] | 4,625 | [2] | 1,616 | 1,877 | [2] | 1,323 | 1,028 | [2],[3] | 1,202 | 1,949 | [2] | 775 | 545 | [2] | 3,223 | 160 | [4] | 4,073 | 1,650 | [5] | 1,163 | [6] | 943 | [7] | 25 | |||||||
Building and Improvements | ' | 22,498 | [2] | 19,033 | [2] | 12,332 | [2] | 25,936 | [2] | 5,987 | [2] | 22,369 | [2] | 6,418 | 9,175 | [2] | 4,981 | 8,592 | [2],[3] | 3,865 | 11,676 | [2] | 1,124 | 1,422 | [2] | 35,111 | 7,913 | [4] | 5,235 | 6,250 | [5] | 9,913 | [6] | 6,599 | [7] | 196 | |||||||
Furniture, Fixture and Equipment | ' | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] | 30 | 28 | [2] | 41 | 0 | [2],[3] | 20 | 37 | [2] | 39 | 16 | [2] | 1,007 | 200 | [4] | 262 | 200 | [5] | 0 | [6] | 0 | [7] | 0 | |||||||
Intangible Assets | ' | 1,060 | [2] | 892 | [2] | 385 | [2] | 660 | [2] | 454 | [2] | 206 | [2] | 436 | 670 | [2] | 505 | 680 | [2],[3] | 413 | 763 | [2] | 337 | 67 | [2] | 1,909 | 609 | [4] | 1,558 | 435 | [5] | 535 | [6] | 258 | [7] | 4 | |||||||
Other Assets | ' | 24 | [2] | 20 | [2] | 23 | [2] | 52 | [2] | 50 | [2] | 40 | [2] | 2 | 8 | [2] | 7 | 1 | [2],[3] | 54 | 49 | [2] | 16 | 14 | [2] | 49 | 35 | [4] | 272 | 0 | [5] | 530 | [6] | 0 | [7] | 0 | |||||||
Other Liabilities | ' | -190 | [2] | -147 | [2] | -59 | [2] | -317 | [2] | -61 | [2] | -170 | [2] | -89 | -127 | [2] | -101 | -4 | [2],[3] | -13 | -68 | [2] | -90 | -16 | [2] | -274 | 0 | [4] | 0 | 0 | [5] | -141 | [6] | 0 | [7] | 0 | |||||||
Fair value assigned | ' | $30,433 | [2] | $24,123 | [2] | $18,214 | [2] | $31,935 | [2] | $10,089 | [2] | $27,070 | [2] | $8,413 | $11,631 | [2] | $6,756 | $10,297 | [2],[3] | $5,541 | $14,406 | [2] | $2,201 | $2,048 | [2] | $41,025 | $8,917 | [4] | $11,400 | $8,535 | [5] | $12,000 | [6] | $7,800 | [7] | $225 | |||||||
Number of months from date of acquisition to finalize valuation | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||
[1] | Purchase price excludes closing costs and acquisition expenses. For properties acquired through foreclosure, the purchase price reflects the contract purchase price of the note. | ||||||||||||||||||||||||||||||||||||||||||
[2] | Asset valuations are based on preliminary valuations at the date of purchase. The Company is in the process of obtaining an appraisal to finalize the valuation. The Company has up to 12 months from the date of acquisition to finalize the valuation. | ||||||||||||||||||||||||||||||||||||||||||
[3] | Deerfield originally served as the collateral for a non-performing note that the Company purchased on March 21, 2012. On July 19, 2012, the Company was the successful bidder at a foreclosure sale and formally received title to the property on January 22, 2013. | ||||||||||||||||||||||||||||||||||||||||||
[4] | Cannery Lofts originally served as the collateral for a non-performing note that the Company purchased on May 13, 2011. On December 21, 2011, the Company entered into a settlement agreement with the borrower and, subsequently, the Company foreclosed and formally received title to the property on June 6, 2012. | ||||||||||||||||||||||||||||||||||||||||||
[5] | Campus Club Apartments originally served as collateral for a non-performing note that the Company purchased on October 21, 2011. On February 9, 2012, the Company was the successful bidder at a foreclosure sale and took title to the property on February 21, 2012. | ||||||||||||||||||||||||||||||||||||||||||
[6] | Vista Apartment Homes, formerly known as Iroquois Apartments, originally served as the collateral for a non-performing promissory note that the Company purchased on June 17, 2011. On August 2, 2011, the Company was the successful bidder at a sheriff's sale and formally received title to the property. | ||||||||||||||||||||||||||||||||||||||||||
[7] | Arcadia at Westheimer originally served as the collateral for a non-performing promissory note that the Company purchased on September 3, 2010. The Company commenced foreclosure proceedings and, on October 5, 2010, formally received title to the property. |
ACQUISITIONS_AND_FORECLOSURES_2
ACQUISITIONS AND FORECLOSURES (Current Period Acquisitions) (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||||||||||||||||||
Mar. 15, 2011 | Sep. 30, 2013 | Jan. 22, 2013 | Mar. 21, 2012 | Mar. 13, 2013 | Mar. 28, 2013 | Apr. 18, 2013 | Jun. 24, 2013 | Jun. 27, 2013 | Jul. 25, 2013 | Sep. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||||||||||
Property | Deerfield Note Property - Hermantown, Minnesota [Member] | Deerfield Note Property - Hermantown, Minnesota [Member] | One Hundred Chevy Chase - Lexington, Kentucky [Member] | Ivy at Clear Creek - Houston, TX [Member] | Retreat at Rocky Ridge - Hoover, Alabama [Member] | Village Square - Houston, Texas [Member] | Nob Hill - Winter Park, FL [Member] | Brentdale - Plano, TX [Member] | Jefferson Point - Newport News, VA [Member] | Pinnacle - Westminister, CO [Member] | Centennial - Littleton, CO [Member] | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of properties acquired | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of properties acquired with third-party appraisal | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of properties acquired without third-party appraisal | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Purchase price of promissory note | $3,100,000 | ' | ' | $10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Contract purchase price | ' | ' | 10,300,000 | [1],[2],[3] | ' | 6,850,000 | [2] | 11,750,000 | [1],[2] | 8,500,000 | [2] | 27,200,000 | [1],[2] | 10,100,000 | [1],[2] | 32,200,000 | [1],[2] | 18,250,000 | [1],[2] | 24,250,000 | [1],[2] | 30,600,000 | [1],[2] |
Payment of acquisition fees | ' | ' | ' | 217,000 | 139,000 | 236,000 | 172,000 | 545,000 | 203,000 | 645,000 | 367,000 | 486,000 | 613,000 | ||||||||||
Acquisition fee, percentage | ' | ' | ' | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||
Rental property: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Land | ' | ' | 1,028,000 | [1],[3] | ' | 1,323,000 | 1,877,000 | [1] | 1,616,000 | 4,625,000 | [1] | 3,659,000 | [1] | 5,604,000 | [1] | 5,533,000 | [1] | 4,325,000 | [1] | 7,041,000 | [1] | ||
Buildings | ' | ' | 8,592,000 | ' | 4,981,000 | 9,175,000 | 6,418,000 | 22,369,000 | 5,987,000 | 25,936,000 | 12,332,000 | 19,033,000 | 22,498,000 | ||||||||||
Personal Property | ' | ' | 0 | [1],[3] | ' | 41,000 | 28,000 | [1] | 30,000 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Rental property | ' | ' | 9,620,000 | ' | 6,345,000 | 11,080,000 | 8,064,000 | 26,994,000 | 9,646,000 | 31,540,000 | 17,865,000 | 23,358,000 | 29,539,000 | ||||||||||
Acquired intangibles − in-place leases | ' | ' | 680,000 | [1],[3] | ' | 505,000 | 670,000 | [1] | 436,000 | 206,000 | [1] | 454,000 | [1] | 660,000 | [1] | 385,000 | [1] | 892,000 | [1] | 1,060,000 | [1] | ||
Prepaid insurance | ' | ' | 1,000 | ' | 7,000 | 8,000 | 2,000 | 40,000 | 50,000 | 52,000 | 23,000 | 20,000 | 24,000 | ||||||||||
Accrued real estate taxes | ' | ' | ' | ' | -17,000 | -68,000 | -67,000 | -132,000 | -39,000 | -244,000 | -37,000 | -99,000 | -122,000 | ||||||||||
Prepaid rents | ' | ' | ' | ' | -10,000 | -14,000 | -6,000 | -8,000 | -4,000 | -4,000 | -4,000 | -8,000 | -12,000 | ||||||||||
Security deposits | ' | ' | -4,000 | ' | -74,000 | -45,000 | -16,000 | -30,000 | -18,000 | -69,000 | -18,000 | -40,000 | -56,000 | ||||||||||
Fair value assigned | ' | ' | $10,297,000 | [1],[3] | ' | $6,756,000 | $11,631,000 | [1] | $8,413,000 | $27,070,000 | [1] | $10,089,000 | [1] | $31,935,000 | [1] | $18,214,000 | [1] | $24,123,000 | [1] | $30,433,000 | [1] | ||
[1] | Asset valuations are based on preliminary valuations at the date of purchase. The Company is in the process of obtaining an appraisal to finalize the valuation. The Company has up to 12 months from the date of acquisition to finalize the valuation. | ||||||||||||||||||||||
[2] | Purchase price excludes closing costs and acquisition expenses. For properties acquired through foreclosure, the purchase price reflects the contract purchase price of the note. | ||||||||||||||||||||||
[3] | Deerfield originally served as the collateral for a non-performing note that the Company purchased on March 21, 2012. On July 19, 2012, the Company was the successful bidder at a foreclosure sale and formally received title to the property on January 22, 2013. |
DISPOSITION_OF_PROPERTIES_AND_2
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 18, 2013 | Apr. 30, 2013 | |
Property | Heatherwood Apartments [Member] | Town Park Apartments [Member] | ||||
Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' |
Number of properties sold | ' | ' | 2 | ' | ' | ' |
Sale price | ' | ' | ' | ' | $1,000,000 | $10,300,000 |
Gain (loss) on dispositions | 0 | 0 | 3,173,000 | 0 | -31,000 | 3,200,000 |
Sale price, portion financed by buyer | ' | ' | ' | ' | 800,000 | ' |
Sale price, portion paid in cash | ' | ' | ' | ' | $200,000 | ' |
DISPOSITION_OF_PROPERTIES_AND_3
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS (Results of Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental income | $0 | $777 | $1,081 | $2,118 |
Gain on foreclosure | 0 | 36 | 0 | 1,232 |
Total revenues | 0 | 813 | 1,081 | 3,350 |
Expenses: | ' | ' | ' | ' |
Rental operating | 23 | 609 | 810 | 1,755 |
Acquisition Costs | 0 | 0 | 0 | 3 |
Management fees - related parties | 0 | 46 | 62 | 130 |
General and administrative | 1 | 85 | 225 | 271 |
Loss on property impairment | 0 | 0 | 539 | 0 |
Depreciation and amortization expense | 0 | 209 | 141 | 547 |
Total expenses | 24 | 949 | 1,777 | 2,706 |
(Loss) income from discontinued operations | -24 | -136 | -696 | 644 |
Gain on dispositions | 0 | 0 | 3,173 | 0 |
Insurance proceeds in excess of cost basis | 0 | 25 | ' | 175 |
(Loss) income from discontinued operations, net | ($24) | ($111) | $2,477 | $819 |
Weighted average common shares outstanding (in shares) | 36,156 | 15,953 | 33,055 | 12,979 |
Basic and diluted (loss) income per common share | $0 | ($0.01) | $0.08 | $0.06 |
IDENTIFIED_INTANGIBLE_ASSETS_N2
IDENTIFIED INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average remaining life (in months) | '11 months 18 days | ' | '1 month |
Amortization of intangible assets | $4,100,000 | $2,000,000 | ' |
Acquired in-place leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | 12,400,000 | ' | 6,800,000 |
Intangible assets, accumulated amortization | 8,500,000 | ' | 5,200,000 |
Leasing commissions [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets, gross | ' | ' | 306,000 |
Antennae Leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Annual expected amortization expense through 2025 | $16,000 | ' | ' |
IDENTIFIED_INTANGIBLE_ASSETS_N3
IDENTIFIED INTANGIBLE ASSETS, NET (Rental and Antennae Leases) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $3,698 | ' |
2015 | 16 | ' |
2016 | 16 | ' |
2017 | 16 | ' |
2018 | 16 | ' |
Thereafter | 118 | ' |
Total | $3,880 | $1,641 |
MORTGAGE_NOTES_PAYABLE_Narrati
MORTGAGE NOTES PAYABLE (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Apr. 03, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 22, 2013 | |
Iroquois Mortgage Loan [Member] | Iroquois Mortgage Loan [Member] | Iroquois Mortgage Loan [Member] | Iroquois Mortgage Loan [Member] | Iroquois Mortgage Loan [Member] | Cannery Mortgage Note [Member] | Cannery Mortgage Note [Member] | Cannery Mortgage Note [Member] | |||||
Participating Mortgage Loans [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan, issuance date | ' | ' | ' | ' | ' | ' | 3-Apr-12 | ' | ' | ' | ' | ' |
Mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | $9,200,000 | ' | ' | $8,200,000 |
Mortgage loan, description of variable rate basis | ' | ' | ' | ' | ' | ' | 'one-month London Interbank Offered Rate (“LIBORâ€) | ' | ' | ' | 'one-month LIBOR | ' |
Mortgage loan, basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | 2.61% | ' | ' | ' | 3.30% | ' |
Percentage of premium at which loan can be prepaid (in hundredths) | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 1.00% | ' |
Prepayment premium during last quarter of term | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' |
Interest expense | $149,000 | $255,000 | $396,000 | $398,000 | $64,000 | $66,000 | $191,000 | $130,000 | ' | $33,000 | $32,000 | ' |
MORTGAGE_NOTES_PAYABLE_Summary
MORTGAGE NOTES PAYABLE (Summary of the Mortgage Note Payable) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | Iroquois Mortgage Loan [Member] | Iroquois Mortgage Loan [Member] | Cannery Mortgage Note [Member] | Cannery Mortgage Note [Member] | ||||
London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Participating Mortgage Loans [Line Items] | ' | ' | ' | ' | ' | ' | ||
Mortgage notes payable | $17,086 | $9,043 | $8,896 | ' | $8,190 | ' | ||
Mortgage loan, maturity date | ' | ' | 1-May-17 | ' | 1-Sep-20 | ' | ||
Mortgage note, annual interest rate (in hundredths) | ' | ' | 2.79% | [1] | 0.18% | 3.48% | [2] | ' |
Mortgage loan, average monthly debt service | ' | ' | $38 | ' | $24 | ' | ||
Mortgage loan, description of variable rate basis | ' | ' | 'one-month London Interbank Offered Rate (“LIBORâ€) | 'One-month LIBOR | 'one-month LIBOR | 'One-month LIBOR | ||
Mortgage loan, basis spread on variable rate (in hundredths) | ' | ' | 2.61% | ' | 3.30% | ' | ||
[1] | One-month LIBOR (0.179% as of September 30, 2013) plus 2.61% margin. | |||||||
[2] | One-month LIBOR plus 3.30% margin. |
MORTGAGE_NOTES_PAYABLE_Annual_
MORTGAGE NOTES PAYABLE (Annual Principal Payments on the Mortgage Note Payable) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $200 |
2015 | 206 |
2016 | 1,920 |
2017 | 9,916 |
2018 | 1,693 |
Thereafter | 3,151 |
Total | $17,086 |
REVOLVING_CREDIT_FACILITY_Deta
REVOLVING CREDIT FACILITY (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
23-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 22-May-13 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | $149,000 | $255,000 | $396,000 | $398,000 | ' | ' |
Revolving Credit Facility [Member] | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, initiation date | ' | ' | ' | 2-Dec-11 | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 50,000,000 | ' | ' | ' | ' | 25,000,000 | ' |
Line of credit facility collateral amount | ' | 41,400,000 | ' | 41,400,000 | ' | ' | ' |
Line of credit facility, current borrowing capacity | ' | 16,100,000 | ' | 16,100,000 | ' | ' | ' |
Closing costs | 318,750 | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | 760,000 | ' | 760,000 | ' | ' | 760,000 |
Line of credit facility, expiration date | ' | ' | ' | 23-May-17 | ' | ' | ' |
Line of credit facility extended expiration date | ' | ' | ' | 23-May-19 | ' | ' | ' |
Extension fee percentage | ' | ' | ' | 0.20% | ' | ' | ' |
Mortgage loan, description of variable rate basis | ' | ' | ' | 'one-month LIBOR | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | 3.00% | ' | ' | ' |
Interest rate at end of period | ' | 3.18% | ' | 3.18% | ' | ' | ' |
Interest expense | ' | $6,000,000 | $15,000 | $131,000,000 | $134,000 | ' | ' |
DEFERRED_FINANCING_COSTS_Detai
DEFERRED FINANCING COSTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
DEFERRED FINANCING COSTS [Abstract] | ' | ' |
Accumulated amortization, deferred financing costs | $357 | $199 |
2014 | 230 | ' |
2015 | 205 | ' |
2016 | 204 | ' |
2017 | 142 | ' |
2018 | 29 | ' |
Thereafter | 55 | ' |
Deferred financing costs, net | $865 | $561 |
CERTAIN_RELATIONSHIPS_AND_RELA2
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Property | Property | Property | Property | |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Agreement term (in years) | ' | ' | '1 year | ' |
Number of properties sold | ' | ' | 2 | ' |
Advisor [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Acquisition fee, percentage | ' | ' | 2.00% | ' |
Multiple for calculating monthly asset management fee, percentage (one-twelfth) | ' | ' | 8.33% | ' |
Percentage annual asset management fee (in hundredths) | ' | ' | 1.00% | ' |
Disposition fee, as a percentage of aggregate brokerage commission paid (in hundredths) | ' | ' | 50.00% | ' |
Debt disposition fee, as a percentage of the contract sales price (in hundredths) | ' | ' | 2.75% | ' |
Number of properties sold | 0 | 0 | 2 | 0 |
Debt financing fee (in hundredths) | ' | ' | 0.50% | ' |
Maximum reimbursement limit on gross offering proceeds (in hundredths) | ' | ' | 2.50% | ' |
Resource Real Estate Opportunity Manager LLC [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Debt servicing fee percentage | ' | ' | 2.75% | ' |
Resource Securities, Inc. [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Selling commission to be paid, maximum (in hundredths) | ' | ' | 7.00% | ' |
Dealer manager fee to be paid, maximum (in hundredths) | ' | ' | 3.00% | ' |
Percentage dealer manager fees reallows to participating brokers (in hundredths) | ' | ' | 1.00% | ' |
CERTAIN_RELATIONSHIPS_AND_RELA3
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Receivables from and Payables to Related Parties) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Receivables from related parties | $466 | $0 |
Payables to related parties | 1,462 | 671 |
RAI and affiliates [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Receivables from related parties | 466 | 0 |
Advisor and its affiliates [Member] | Acquisitions fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 155 | 0 |
Advisor and its affiliates [Member] | Asset management fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 0 | 10 |
Advisor and its affiliates [Member] | Organization and operation costs [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 4 | 0 |
Advisor and its affiliates [Member] | Expenses reimbursements [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 88 | 28 |
Resource Real Estate Opportunity Manager LLC [Member] | Property management fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 305 | 103 |
Resource Real Estate Opportunity Manager LLC [Member] | Operating expense reimbursement [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | 666 | 262 |
Resource Securities, Inc. [Member] | Selling commission and dealer management fees [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payables to related parties | $244 | $268 |
CERTAIN_RELATIONSHIPS_AND_RELA4
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Fees earned / expenses paid to related parties) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Advisor and its affiliates [Member] | Acquisitions fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $2,468 | ($50) | $4,300 | $1,628 |
Advisor and its affiliates [Member] | Asset management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 717 | 309 | 1,640 | 659 |
Advisor and its affiliates [Member] | Disposition fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 0 | 116 | 0 |
Advisor and its affiliates [Member] | Debt financing fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 41 | 0 | 41 | 119 |
Advisor and its affiliates [Member] | Organization and offering costs [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 71 | 0 | 274 | 291 |
Advisor and its affiliates [Member] | Overhead allocation [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 131 | 89 | 329 | 477 |
Resource Real Estate Opportunity Manager LLC [Member] | Property management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 482 | 300 | 1,256 | 617 |
Resource Real Estate Opportunity Manager LLC [Member] | Debt servicing fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 2 | 1 | 4 | 3 |
Resource Securities, Inc. [Member] | Selling commission and dealer management fees [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 10,031 | 3,078 | 21,887 | 8,084 |
Ledgewood P.C. [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 56 | 18 | 138 | 43 |
Graphic Images, LLC [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $120 | $139 | $340 | $464 |
EQUITY_Narrative_Details
EQUITY (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 09, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | ||||
Distribution | Distribution | Record Date September 2013 [Member] | Record Date September 2013 [Member] | Dividend Distribution One [Member] | Dividend Distribution Two [Member] | Dividend Distribution Three [Member] | Dividend Distribution Four [Member] | |||||
Distribution | Distribution | Distribution | Distribution | |||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, authorized (in shares) | 10,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, issued (in shares) | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued | 46,581,720 | ' | 22,291,810 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible stock shares outstanding (in shares) | 50,000 | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible stock, par value (in dollars per share) | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible stock held by advisor and affiliated persons (in shares) | 49,063 | ' | 49,063 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible stock held by outside investors | 937 | ' | 937 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage on original share price (in hundredths) | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage non-compounded annual return (in hundredths) | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate percentage return (in hundredths) | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of common stock | $283,000 | ' | ' | $60,540,000 | $254,215 | $0 | ' | ' | ' | ' | ' | ' |
Redemption of common stock (in shares) | ' | ' | ' | 7,114 | 31,126 | 0 | ' | ' | ' | ' | ' | ' |
Average redemption price of common stock (in dollars per share) | ' | ' | ' | $8.51 | $8.17 | ' | ' | ' | ' | ' | ' | ' |
Distributions paid in cash and distributions reinvested through distribution reinvestment plan | ' | ' | ' | ' | 9,409,000 | ' | ' | ' | ' | ' | ' | ' |
Distributions paid in cash | 3,153,000 | 841,000 | ' | ' | 3,200,000 | ' | ' | ' | ' | ' | ' | ' |
Stock issued from distribution reinvestment plan | 6,258,000 | 1,052,000 | ' | ' | 6,254,000 | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | ' | ' | ' | ' | ' | ' | ' | 1,536,000 | ' | ' | ' | ' |
Distribution declared (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.03 | ' | ' | ' | ' | ' |
Number of stock distributions | ' | ' | ' | 11 | 11 | ' | ' | ' | 7 | 2 | 1 | 1 |
Common stock distributions (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.015 | 0.0075 | 0.00585 | ' |
Common stock dividend rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 0.75% | 0.59% | 0.50% |
Increase in accumulated deficit from stock distributions | ' | ' | ' | ' | $27,000,000 | ' | ' | ' | ' | ' | ' | ' |
EQUITY_Schedule_of_Shares_Issu
EQUITY (Schedule of Shares Issued) (Details) (USD $) | 9 Months Ended | 39 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 46,581,720 | ' | 46,581,720 | 22,291,810 |
Gross Proceeds | $230,363 | $84,192 | $447,600 | ' |
Private Offering [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 1,263,727 | ' | 1,263,727 | ' |
Gross Proceeds | ' | ' | 12,500 | ' |
Public Offering [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 42,966,691 | ' | 42,966,691 | ' |
Gross Proceeds | ' | ' | 427,600 | ' |
Stock Dividends [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 1,566,394 | ' | 1,566,394 | ' |
Gross Proceeds | ' | ' | 0 | ' |
Distribution Reinvestment Plan [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 769,408 | ' | 769,408 | ' |
Gross Proceeds, distribution reinvestment plan | ' | ' | 7,300 | ' |
Advisor [Member] | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' |
Shares Issued | 15,500 | ' | 15,500 | ' |
Gross Proceeds | ' | ' | $200 | ' |
EQUITY_Schedule_of_Stock_Distr
EQUITY (Schedule of Stock Distributions) (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jan. 15, 2013 | Nov. 15, 2012 | Feb. 15, 2013 | Nov. 15, 2012 | Mar. 15, 2013 | Jan. 09, 2013 | 1-May-13 | Apr. 15, 2013 | Mar. 22, 2013 | Jan. 09, 2013 | Jun. 03, 2013 | 10-May-13 | Jul. 02, 2013 | 10-May-13 | Aug. 01, 2013 | Jul. 09, 2013 | Sep. 03, 2013 | Jul. 09, 2013 |
Common Stock | Record Date December 2012 [Member] | Record Date December 2012 [Member] | Record Date January 2013 [Member] | Record Date January 2013 [Member] | Record Date February 2013 [Member] | Record Date February 2013 [Member] | Record Date April 2013 [Member] | Record Date April 2013 [Member] | Record Date April 2013 [Member] | Record Date April 2013 [Member] | Record Date May 2013 [Member] | Record Date May 2013 [Member] | Record Date June 2013 [Member] | Record Date June 2013 [Member] | Record Date July 2013 [Member] | Record Date July 2013 [Member] | Record Date August 2013 [Member] | Record Date August 2013 [Member] | |||
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution declared (in dollars per share) | ' | ' | ' | ' | $0.08 | ' | $0.03 | ' | $0.03 | ' | ' | $0.03 | $0.03 | ' | $0.03 | ' | $33 | ' | $33 | ' | $33 |
Distributions paid (in dollars per share) | ' | ' | ' | $0.08 | ' | $0.03 | ' | $0.03 | ' | $0.03 | $0.03 | ' | ' | $0.03 | ' | $0.03 | ' | $0.03 | ' | $0.03 | ' |
Distribution Invested in Shares of Common Stock | $6,258 | $1,052 | $6,254 | $1,053 | ' | $382 | ' | $420 | ' | $512 | $466 | ' | ' | $744 | ' | $804 | ' | $890 | ' | $983 | ' |
Aggregate Cash Distribution | ' | ' | $9,409 | $1,671 | ' | $599 | ' | $647 | ' | $770 | $709 | ' | ' | $1,104 | ' | $1,183 | ' | $1,302 | ' | $1,424 | ' |
FAIR_VALUE_MEASUREMENTS_AND_DI2
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Rental Properties, Net, Measured at Fair Value on a Non-recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Rental properties, net | $307,959 | $121,098 |
Nonrecurring Basis [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 10,297 | 19,341 |
Nonrecurring Basis [Member] | Deerfield [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 10,297 | ' |
Nonrecurring Basis [Member] | Cannery [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 8,917 |
Nonrecurring Basis [Member] | Heatherwood [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 1,889 |
Nonrecurring Basis [Member] | Campus Club [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 8,535 |
Nonrecurring Basis [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 0 | 0 |
Nonrecurring Basis [Member] | Level 1 [Member] | Deerfield [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 0 | ' |
Nonrecurring Basis [Member] | Level 1 [Member] | Cannery [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 1 [Member] | Heatherwood [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 1 [Member] | Campus Club [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 0 | 0 |
Nonrecurring Basis [Member] | Level 2 [Member] | Deerfield [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 0 | ' |
Nonrecurring Basis [Member] | Level 2 [Member] | Cannery [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 2 [Member] | Heatherwood [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 2 [Member] | Campus Club [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 0 |
Nonrecurring Basis [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 10,297 | 19,341 |
Nonrecurring Basis [Member] | Level 3 [Member] | Deerfield [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | 10,297 | ' |
Nonrecurring Basis [Member] | Level 3 [Member] | Cannery [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 8,917 |
Nonrecurring Basis [Member] | Level 3 [Member] | Heatherwood [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | 1,889 |
Nonrecurring Basis [Member] | Level 3 [Member] | Campus Club [Member] | ' | ' |
Assets: | ' | ' |
Rental properties, net | ' | $8,535 |
FAIR_VALUE_MEASUREMENTS_AND_DI3
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Carrying and Fair Values of the Company's Loans Held for Investment, Net, Mortgage Note Payable and Revolving Credit Facility) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans held for investment, net | $1,753 | $11,109 |
Mortgage notes payable | -17,086 | -9,043 |
Revolving credit facility | -760 | -760 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Loans held for investment, net | 1,753 | 11,109 |
Mortgage notes payable | -16,518 | -9,043 |
Revolving credit facility | ($760) | ($760) |
OPERATING_EXPENSE_LIMITATION_D
OPERATING EXPENSE LIMITATION (Details) | Sep. 30, 2013 |
Quarter | |
OPERATING EXPENSE LIMITATION WAIVER [Abstract] | ' |
Average invested assets (in hundredths) | 2.00% |
Net income of operating expense (in hundredths) | 25.00% |
Number of most recently completed fiscal quarters for which Company must limit its operating expenses | 4 |
GAIN_ON_INSURANCE_CLAIM_Detail
GAIN ON INSURANCE CLAIM (Details) (USD $) | 0 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Jan. 03, 2012 | Sep. 30, 2012 |
Unit | ||
GAINS ON INSURANCE CLAIMS [Abstract] | ' | ' |
Number of units damaged by fire | 5 | ' |
Reduction in net carrying value of building and improvements | $98 | ' |
Insurance proceeds received | ' | 275 |
Additional expenses incurred in conjunction with insurance claim | ' | $1 |
GAIN_ON_FORECLOSURE_Details
GAIN ON FORECLOSURE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 22, 2013 |
Foreclosure [Member] | |||||
Gain On Foreclosure [Line Items] | ' | ' | ' | ' | ' |
Fair value of the property exceeding carrying value | ' | ' | ' | ' | $148 |
Adjustment to security deposits | ' | ' | ' | ' | 81 |
Gain on foreclosure | $0 | $56 | $67 | $571 | $67 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 9 Months Ended | 39 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 25, 2013 | Oct. 25, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 31, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 31, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 31, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 31, 2013 | |
Public Offering [Member] | Common Stock | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Debt Instrument, Redemption, Period One [Member] | Debt Instrument, Redemption, Period One [Member] | Debt Instrument, Redemption, Period One [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Three [Member] | Debt Instrument, Redemption, Period Three [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Multifamily Property Alpharetta Georgia [Member] | Multifamily Property Alpharetta Georgia [Member] | Common Stock | Common Stock | Village Square Mortgage Loan [Member] | Ivy Mortgage Loan [Member] | Deerfield Mortgage Loan [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | Mortgages [Member] | ||||||
Unit | Public Offering [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Village Square Mortgage Loan [Member] | Ivy Mortgage Loan [Member] | Deerfield Mortgage Loan [Member] | Village Square Mortgage Loan [Member] | Ivy Mortgage Loan [Member] | Deerfield Mortgage Loan [Member] | Village Square Mortgage Loan [Member] | Ivy Mortgage Loan [Member] | Deerfield Mortgage Loan [Member] | ||||||||
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | $230,363,000 | $84,192,000 | $447,600,000 | $427,600,000 | $447,500,000 | ' | ' | $84,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Issued | ' | ' | ' | ' | 44,999,826 | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining shares available for sale to the public | ' | ' | ' | ' | ' | ' | ' | ' | 23,653,626 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of units in multifamily property acquired | ' | ' | ' | ' | ' | ' | 437 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract purchase price | ' | ' | ' | ' | ' | 26,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,400,000 | $8,600,000 | $10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.41% | 2.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt redemption premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 1.00% | 1.00% | 1.00% | 1.00% | 0.00% | 0.00% | 0.00% |