Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 13-May-14 | |
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 | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 67,738,650 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ' | ' |
Rental properties, net | $650,306 | $390,373 |
Loans held for investment, net | 1,746 | 1,724 |
Identified intangible assets, net | 6,951 | 5,182 |
Assets of discontinued operations | 0 | 88 |
Investments | 659,003 | 397,367 |
Cash | 137,984 | 270,323 |
Restricted cash | 3,432 | 4,456 |
Due from related parties | 54 | 530 |
Tenant receivables, net | 475 | 573 |
Deposits | 241 | 141 |
Accounts receivable - other | 39 | 0 |
Prepaid expenses and other assets | 1,433 | 1,567 |
Deferred financing costs, net | 4,606 | 3,602 |
Goodwill | 7,031 | 0 |
Total assets | 814,298 | 678,559 |
Liabilities: | ' | ' |
Mortgage notes payable | 249,342 | 111,811 |
Revolving credit facilities | 37,041 | 37,041 |
Accounts payable | 1,909 | 1,417 |
Accrued expenses and other liabilities | 4,949 | 2,745 |
Accrued real estate taxes | 2,776 | 2,117 |
Due to related parties, net | 1,826 | 1,718 |
Tenant prepayments | 796 | 615 |
Security deposits | 2,446 | 1,826 |
Distribution payable | 2,248 | 2,222 |
Total liabilities | 303,333 | 161,512 |
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; 67,554,712 and 66,725,241 shares issued, respectively; and 67,450,482 and 66,667,136 shares outstanding, respectively) | 675 | 668 |
Convertible stock (“promote sharesâ€; par value $.01; 50,000 shares authorized, issued and outstanding) | 1 | 1 |
Additional paid-in capital | 598,236 | 590,591 |
Accumulated other comprehensive (loss) income | -38 | 20 |
Accumulated deficit | -99,038 | -74,233 |
Total stockholders’ equity | 499,836 | 517,047 |
Noncontrolling interest | 11,129 | 0 |
Total equity | 510,965 | 517,047 |
Total liabilities and stockholders’ equity | $814,298 | $678,559 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 |
Preferred stock, outstanding (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 | 67,554,712 | 66,725,241 |
Common stock, outstanding (in shares) | 67,450,482 | 66,667,136 |
Convertible stock ('promote shares'), par value (in dollars per share) | $0.01 | $0.01 |
Convertible stock ('promote shares'), authorized (in shares) | 50,000 | 50,000 |
Convertible stock ('promote shares'), issued (in shares) | 50,000 | 50,000 |
Convertible stock ('promote shares'), outstanding (in shares) | 50,000 | 50,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Rental income | $20,669 | $6,796 |
Gain on foreclosures | 0 | 3,460 |
Interest income | 515 | 54 |
Total revenues | 21,184 | 10,310 |
Expenses: | ' | ' |
Rental operating | 12,027 | 4,608 |
Acquisition costs | 2,500 | 686 |
Foreclosure costs | 0 | 39 |
Management fees - related parties | 2,109 | 777 |
General and administrative | 2,294 | 912 |
Loss on disposal of assets | 1,627 | 37 |
Depreciation and amortization expense | 11,079 | 2,769 |
Total expenses | 31,636 | 9,828 |
(Loss) income before other expenses | -10,452 | 482 |
Other (expense) income: | ' | ' |
Gain on forfeiture/redemption of stock | 0 | 21 |
Interest expense | -2,739 | -125 |
(Loss) income from continuing operations | -13,191 | 378 |
Discontinued operations: | ' | ' |
Income (loss) from discontinued operations | 2 | -578 |
Net loss | -13,189 | -200 |
Net income attributable to noncontrolling interest | -804 | 0 |
Net loss attributable to stockholders | -13,993 | -200 |
Other comprehensive loss: | ' | ' |
Designated derivatives, fair value adjustment | -58 | 0 |
Comprehensive loss | ($13,247) | ($200) |
Weighted average common shares outstanding (in shares) | 67,364 | 22,612 |
Basic and diluted (loss) income per common share: | ' | ' |
Continuing operations (in dollars per share) | ($0.20) | $0.02 |
Discontinued operations (in dollars per share) | $0 | ($0.03) |
Net loss (in dollars per share) | ($0.20) | ($0.01) |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Convertible Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2013 | $517,047 | $668 | $1 | $590,591 | $20 | ($74,233) | $517,047 | $0 |
Balance (in shares) at Dec. 31, 2013 | 66,667,136 | 66,667,000 | 50,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued through distribution reinvestment plan (in shares) | 496,135 | 496,000 | ' | ' | ' | ' | ' | ' |
Common stock issued through distribution reinvestment plan | 4,712 | 4 | ' | 4,708 | ' | ' | 4,712 | 0 |
Syndication costs | 3 | ' | ' | 3 | ' | ' | 3 | 0 |
Distributions of common stock | 0 | 3 | ' | 3,330 | ' | -3,333 | 0 | 0 |
Distributions of common stock (in shares) | ' | 333,000 | ' | ' | ' | ' | ' | ' |
Distributions declared | -6,729 | ' | ' | ' | ' | -6,729 | -6,729 | 0 |
Share redemptions | -342 | 0 | ' | -396 | ' | 54 | -342 | 0 |
Share redemptions (in shares) | ' | -46,000 | ' | ' | ' | ' | ' | ' |
Designated derivatives, fair value adjustment | -58 | ' | ' | ' | -58 | ' | -58 | 0 |
Acquisition of noncontrolling interests | 17,237 | ' | ' | ' | ' | ' | ' | 17,237 |
Deconsolidation of noncontrolling interest | -6,912 | ' | ' | ' | ' | ' | ' | -6,912 |
Net loss | -13,189 | ' | ' | ' | ' | -13,993 | -13,993 | 804 |
Net income attributable to noncontrolling interests | -804 | ' | ' | ' | ' | -804 | -804 | 0 |
Balance at Mar. 31, 2014 | $510,965 | $675 | $1 | $598,236 | ($38) | ($99,038) | $499,836 | $11,129 |
Balance (in shares) at Mar. 31, 2014 | 67,450,482 | 67,450,000 | 50,000 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($13,189) | ($200) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
(Income) loss from discontinued operations | -2 | 578 |
Gain on foreclosures | 0 | -3,460 |
Loss on disposal of assets | 1,627 | 37 |
Loss on property impairment | 0 | 539 |
Depreciation and amortization | 11,079 | 3,140 |
Amortization of deferred financing costs | 188 | 59 |
Deferred offering costs | 0 | -500 |
Accretion of discount and direct loan fees and costs | 0 | -9 |
Changes in operating assets and liabilities, net of acquisitions: | ' | ' |
Restricted cash | 1,024 | 100 |
Tenant receivables, net | 98 | -38 |
Deposits | -100 | 38 |
Prepaid expenses and other assets | 569 | 362 |
Due to related parties, net | 108 | 862 |
Accounts payable and accrued expenses | 3,328 | 1,818 |
Tenant prepayments | 135 | 3 |
Security deposits | 414 | 7 |
Net cash provided by operating activities of continuing operations | 5,279 | 3,336 |
Cash flows from investing activities: | ' | ' |
Property acquisitions | -70,164 | -18,386 |
Ownership acquisitions | -58,493 | 0 |
Capital expenditures | -4,712 | -6,393 |
Principal payments received on loans | -22 | 9 |
Net cash used in investing activities of continuing operations | -133,391 | -24,770 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of common stock | 0 | 54,541 |
Redemptions | -342 | 0 |
Payment of deferred financing costs | 1,192 | 0 |
Deferred offering costs | 0 | 1,334 |
Principal payments on borrowings | -797 | -49 |
Distributions paid on common stock | -1,989 | -1,062 |
Syndication costs | 3 | -6,408 |
Net cash (used in) provided by financing activities of continuing operations | -4,317 | 48,356 |
Net cash (used in) provided by continuing operations | -132,429 | 26,922 |
Cash flows from discontinued operations: | ' | ' |
Net cash provided by (used in) operating activities | 90 | -1,433 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | 0 |
Financing provided for disposed property | 0 | 0 |
Net cash provided by (used in) discontinued operations | 90 | -1,433 |
Net (decrease) increase in cash | -132,339 | 25,489 |
Cash at beginning of period | 270,323 | 29,336 |
Cash at end of period | $137,984 | $54,825 |
NATURE_OF_BUSINESS_AND_OPERATI
NATURE OF BUSINESS AND OPERATIONS | 3 Months Ended |
Mar. 31, 2014 | |
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. | |
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, with discounts available to certain categories of purchasers. 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 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 15). | |
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 also offering shares pursuant to its distribution reinvestment plan at a purchase price equal to $9.50 per share. The primary portion of the initial public offering closed on December 13, 2013. On December 26, 2013, the unsold primary offering shares were deregistered and, on December 30, 2013, the registration of the shares issuable pursuant to the distribution reinvestment plan was continued pursuant to a Registration Statement on Form S-3. 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. The Advisor purchased 35,000 shares of common stock in 2011 for $315,000; 141,500 shares in 2012 for $1.3 million; and 84,056 shares in 2013 for $756,504. As of March 31, 2014, the Advisor had purchased 276,056 shares of common stock for an aggregate purchase price of $2.5 million. | |
As of December 13, 2013, the Company had raised aggregate gross offering proceeds of $645.8 million through its private and public offerings, which resulted in the issuance of 64,926,311 shares of common stock, including the 276,056 shares purchased by the Advisor. The Company issued 496,135 shares for $4.7 million pursuant to the distribution reinvestment plan since December 31, 2013. | |
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. | |
The consolidated financial statements and the information and tables contained in the notes thereto as of March 31, 2014 are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). However, in the opinion of management, these interim financial statements include all the necessary adjustments to fairly present the results of the interim periods presented. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 may not necessarily be indicative of the results of operations for the full year ending December 31, 2013. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 Complex | Number | Property Location | ||||||
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 Charlemagne Holdings, LLC | N/A | N/A | N/A | ||||||
RRE 107th Avenue Holdings, LLC (“107th Avenue”) | 107th Avenue | 5 | Omaha, NE | ||||||
RRE Westhollow Holdings, LLC (“Westhollow”) | Arcadia | 404 | Houston, TX | ||||||
RRE Crestwood Holdings, LLC (“Crestwood”) | Town Park (a) | N/A | Birmingham, AL | ||||||
RRE Iroquois, LP (“Vista”) | Vista Apartment Homes | 133 | Philadelphia, PA | ||||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||||
RRE Campus Club Holdings, LLC (“Campus Club”) | Campus Club | 64 | Tampa, FL | ||||||
RRE Bristol Holdings, LLC (“Bristol”) | The Redford | 856 | Houston, TX | ||||||
RRE Cannery Holdings, LLC (“Cannery”) | Cannery Lofts | 156 | Dayton, OH | ||||||
RRE Williamsburg Holdings, LLC (“Williamsburg”) | Williamsburg | 976 | Cincinnati, OH | ||||||
WPL Holdings, LLC | Williamsburg | N/A | Cincinnati, OH | ||||||
Parking Lot | |||||||||
RRE Skyview Holdings, LLC ("Skyview") | Cityside Crossing | 360 | Houston, TX | ||||||
RRE Park Forest Holdings, LLC ("Park Forest") | Mosaic | 216 | Oklahoma City, OK | ||||||
RRE Foxwood Holdings, LLC ("Foxwood") | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||||
RRE Flagstone Holdings, LLC ("Flagstone") | The Alcove | 292 | Houston, TX | ||||||
RRE Deerfield Holdings, LLC ("Deerfield") | Deerfield | 166 | Hermantown, MN | ||||||
RRE Kenwick Canterbury Holdings, LLC ("Kenwick & Canterbury") | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||||
RRE Armand Place Holdings, LLC ("Armand") | Ivy at Clear Creek | 244 | Houston, TX | ||||||
RRE Autumn Wood Holdings, LLC ("Autumn Wood") | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||||
RRE Village Square Holdings, LLC ("Village Square") | Trailpoint at the Woodlands | 271 | Houston, TX | ||||||
RRE Nob Hill Holdings, LLC ("Nob Hill") | Nob Hill | 192 | Winter Park, FL | ||||||
RRE Brentdale Holdings, LLC ("Brentdale") | Brentdale | 412 | Plano, TX | ||||||
RRE Jefferson Point Holdings, LLC ("Jefferson Point") | Jefferson Point | 208 | Newport News, VA | ||||||
RRE Centennial Holdings, LLC ("Centennial") | Centennial | 276 | Littleton, CO | ||||||
RRE Pinnacle Holdings, LLC ("Pinnacle") | Pinnacle | 224 | Westminster, CO | ||||||
RRE Jasmine Holdings, LLC ("Jasmine") | Jasmine at Holcomb Bridge | 437 | Alpharetta, GA | ||||||
RRE River Oaks Holdings, LLC ("River Oaks") | Terrace at River Oaks | 314 | San Antonio, TX | ||||||
RRE Nicollet Ridge Holdings, LLC ("Nicollet Ridge") | Nicollet Ridge | 339 | Burnsville, MN | ||||||
RRE Addison Place, LLC ("Addison Place") | Addison Place | 403 | Alpharetta, GA | ||||||
N/A - Not Applicable | |||||||||
(a) - Discontinued operations | |||||||||
All intercompany accounts and transactions have been eliminated in consolidation. | |||||||||
The consolidated financial statements reflect the Company's accounts and the accounts of the Company's majority-owned and/or controlled subsidiaries. The Company follows the provisions of Accounting Standards Codification (“ASC”) Topic 810, “Consolidation,” and accordingly consolidates entities that are variable interest entities (“VIEs”) where it has determined that it is the primary beneficiary of such entities. Once it has been determined that the Company holds a variable interest in a VIE, management performs a qualitative analysis to determine (i) if the Company has the power to direct the matters that most significantly impact the VIE's financial performance; and (ii) if the Company has the obligation to absorb the losses of the VIE that could potentially be significant to the VIE or the right to receive the benefits of the VIE that could potentially be significant to the VIE. If the Company's interest possesses both of these characteristics, the Company is deemed to be the primary beneficiary and would be required to consolidate the VIE. The Company will continually assess its involvement with VIEs and re-evaluate the requirement to consolidate them. The portions of these entities that the Company does not own are presented as noncontrolling interests as of the dates and for the periods presented in the consolidated financial statements. The consolidated financial statements also include the accounts of the Company and its majority-owned and/or controlled subsidiaries as follows: | |||||||||
Subsidiary | Ownership % | Apartment Complex | Number | Property Location | |||||
of Units | |||||||||
PRIP 3700, LLC ("Champion Farms") | 70.00% | Champion Farms | 264 | Louisville, KY | |||||
PRIP 10637, LLC ("Fieldstone") | 83.00% | Fieldstone | 266 | Woodlawn, OH | |||||
PRIP 500, LLC ("Pinehurst") | 97.50% | Pinehurst | 146 | Kansas City, MO | |||||
PRIP 1102, LLC ("Pheasant Run") | 97.50% | Pheasant Run | 160 | Lee's Summit, MO | |||||
PRIP 11128, LLC ("Retreat at Shawnee") | 97.50% | Retreat at Shawnee | 342 | Shawnee, KS | |||||
PRIP 6700, LLC ("Hilltop Village") | 49.00% | Hilltop Village | 124 | Kansas City, MO | |||||
PRIP 3383, LLC ("Conifer Place") | 42.50% | Conifer Place | 420 | Norcross, GA | |||||
PRIP Stone Ridge, LLC ("Stone Ridge") | 68.50% | Stone Ridge | 191 | Columbia, SC | |||||
PRIP Coursey, LLC ("Evergreen at Coursey Place") | 51.70% | Evergreen at Coursey Place | 352 | Baton Rouge, LA | |||||
PRIP Pines, LLC ("Pines of York") | 90.00% | Pines of York | 248 | Yorktown, VA | |||||
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. | |||||||||
An impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of a property to be held and used. 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 March 31, 2013, the Company recorded a $539,000 impairment charge for one of its loans held for investment (Heatherwood Note). The Heatherwood Note impairment charge of $539,000 is reflected in income from discontinued operations, as the Company sold the Heatherwood Apartments in April 2013. | |||||||||
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 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. | |||||||||
Goodwill | |||||||||
The Company records the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed as goodwill. Goodwill is not amortized but is tested for impairment at a level of reporting referred to as a reporting unit on an annual basis, during the fourth quarter of each calendar year, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. | |||||||||
Noncontrolling Interests | |||||||||
Noncontrolling interests are presented and disclosed as a separate component of stockholders' equity (not as a liability or other item outside of stockholders' equity). Consolidated net income (loss) includes the noncontrolling interests’ share of income (loss). All changes in the Company’s ownership interest in a subsidiary are accounted for as stockholders' equity transactions if the Company retains its controlling financial interest in the subsidiary. | |||||||||
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 sale 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 $40.3 million and $2 million for the 12 months periods ending March 31, 2015 and 2016, respectively, and none thereafter. | |||||||||
Tenant Receivables | |||||||||
Tenant receivables are stated in the financial statements at amounts due from tenants 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 March 31, 2014 and December 31, 2013 , there were allowances for uncollectible receivables of $19,000 and $86,000, respectively. | |||||||||
Deferred Offering Costs | |||||||||
Through March 31, 2014, the Advisor has advanced $4.6 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 was 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 was 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 March 31, 2014 and December 31, 2013, $4.6 million and $4.2 million, respectively, have been reimbursed 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 March 31, 2014 and December 31, 2013, the Company had no TRSs. | |||||||||
The Company evaluates the benefits from tax positions taken or expected to be taken in its tax return. 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 year. 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 of the convertible shares (discussed in Note 15) 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 two 0.5% stock distributions issued to stockholders. Common stock shares issued on the Consolidated Balance Sheets have also been adjusted retroactively for the effect of these 12 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). | |||||||||
Adoption of New Accounting Standard | |||||||||
The Company early adopted the following accounting standard during 2014 which had a material impact on its consolidated financial position, results of operations and cash flows: | |||||||||
Accounting Standards Issued But Not Yet Effective | |||||||||
In April 2014, the Financial Accounting Standards Board, or FASB, issued authoritative guidance to change the criteria for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in a company's operations and financial results should be reported as discontinued operations, with expanded disclosures. In addition, disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify as a discontinued operation is required. The Company has early adopted this guidance and such guidance became effective for the Company during the three months ended March 31, 2014. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
The following table presents supplemental cash flow information (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Non-cash activities: | ||||||||
Property and intangibles received on foreclosure of loans held for investment | $ | — | $ | 10,150 | ||||
Financing provided for disposed property | — | 800 | ||||||
Stock issued from distribution reinvestment plan | 4,712 | 9,984 | ||||||
Stock distributions issued | 3,333 | 8,221 | ||||||
Cash distributions on common stock declared but not yet paid | 2,248 | 2,222 | ||||||
Deferred financing costs and escrow deposits funded directly by mortgage note and revolving credit facility | — | 2,880 | ||||||
Debt assumed | 138,327 | — | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 1,778 | $ | 537 | ||||
RENTAL_PROPERTIES_NET
RENTAL PROPERTIES, NET | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Real Estate Investments, Net [Abstract] | ' | |||||||
RENTAL PROPERTIES, NET | ' | |||||||
RENTAL PROPERTIES, NET | ||||||||
The Company’s investments in rental properties consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land | $ | 125,072 | $ | 62,859 | ||||
Building and improvements | 529,467 | 325,412 | ||||||
Furniture, fixtures and equipment | 16,218 | 17,051 | ||||||
Construction in progress | 1,679 | 827 | ||||||
672,436 | 406,149 | |||||||
Less: accumulated depreciation | (22,130 | ) | (15,776 | ) | ||||
$ | 650,306 | $ | 390,373 | |||||
Depreciation expense for the three months ended March 31, 2014 and 2013 was $5.9 million and $1.8 million, respectively. |
LOANS_HELD_FOR_INVESTMENT_NET
LOANS HELD FOR INVESTMENT, NET | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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 8). The face value of the performing notes as of both March 31, 2014 and December 31, 2013 was $1.9 million. The performing notes were purchased net of discounts and the unamortized accretable discounts totaled $287,000 and $292,000 at March 31, 2014 and December 31, 2013, 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): | |||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Current | $ | 1,551 | 89% | $ | 1,529 | 89% | |||||||
Delinquent: | |||||||||||||
30−89 days | — | —% | 195 | 11% | |||||||||
90−180 days | 195 | 11% | — | —% | |||||||||
Greater than 180 days | — | —% | — | —% | |||||||||
$ | 1,746 | 100% | $ | 1,724 | 100% | ||||||||
The following table provides information about the credit quality of the Company’s loans held for investment, net, (in thousands): | |||||||||||||
March 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Loans: | |||||||||||||
Performing | $ | 1,551 | $ | 1,529 | |||||||||
Nonperforming | 195 | 195 | |||||||||||
Total | $ | 1,746 | $ | 1,724 | |||||||||
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 | |||||||||||
Face value | $ | 242 | $ | 1,058 | $ | 800 | |||||||
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. Accordingly, the Company and the borrower under this note entered into a forbearance agreement in January 2012 which expired on December 31, 2013. The borrower did not pay the outstanding balance at the expiration of the forbearance period, which caused the borrower under the Peterson Note to be in default of such agreement. This forbearance agreement is considered a troubled debt restructuring. On February 27, 2014, the Company was the successful bidder at a foreclosure sale of the property collateralizing the Peterson Note. On April 6, 2014, the Company sold its interest in the sheriff's deed for the Peterson Apartments for $195,000 to an unaffiliated third party. | |||||||||||||
The Company has individually evaluated each loan for impairment and determined that, as of March 31, 2014, two loans were not impaired and the Peterson Note was impaired. As of March 31, 2014, the Company recorded an impairment charge of approximately $24,000 on the Peterson Note. | |||||||||||||
There was a $24,000 allowance for credit losses as of March 31, 2014. There were no charge-offs for the three months ended March 31, 2014. |
ACQUISITIONS_GOODWILL_AND_FORE
ACQUISITIONS, GOODWILL AND FORECLOSURES | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS, GOODWILL AND FORECLOSURES | ' | |||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS, GOODWILL AND FORECLOSURES | ||||||||||||||||||||||||||||||||||||||||||
Real Estate Investments | ||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2014, the Company owned interests in 35 properties, including 10 multifamily properties purchased on January 28, 2014 as part of the Paladin acquisition, discussed below. 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 the Company's wholly-owned acquisitions and the respective fair values assigned (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | City and State | Date of | Purchase | Land | Building and | Furniture, Fixture and Equipment | Intangible Assets | Other Assets | Other | Fair Valued | ||||||||||||||||||||||||||||||||
Community Name | Acquisition | Price (2) | Improvements | Liabilities | Assigned | |||||||||||||||||||||||||||||||||||||
Addison Place | Alpharetta, GA | 3/28/14 | $ | 70,500 | (3) | $ | 18,137 | $ | 51,843 | $ | — | $ | 521 | $ | 55 | $ | (392 | ) | $ | 70,164 | ||||||||||||||||||||||
Nicollet Ridge | Burnsville, MN | 12/20/13 | 33,149 | 4,134 | 26,992 | 1,016 | 1,008 | 36 | (107 | ) | 33,079 | |||||||||||||||||||||||||||||||
Terrace at River Oaks | San Antonio, TX | 12/16/13 | 22,500 | 3,830 | 17,510 | 491 | 669 | 48 | (63 | ) | 22,485 | |||||||||||||||||||||||||||||||
Jasmine at Holcomb Bridge | Alpharetta, GA | 10/25/13 | 25,050 | 7,582 | 16,023 | 587 | 859 | 37 | (161 | ) | 24,927 | |||||||||||||||||||||||||||||||
Centennial | Littleton, | 9/30/13 | 30,600 | 5,702 | 23,609 | 198 | 1,090 | 24 | (190 | ) | 30,433 | |||||||||||||||||||||||||||||||
CO | ||||||||||||||||||||||||||||||||||||||||||
Pinnacle | Westminster, | 9/30/13 | 24,250 | 2,923 | 20,301 | 97 | 928 | 20 | (147 | ) | 24,122 | |||||||||||||||||||||||||||||||
CO | ||||||||||||||||||||||||||||||||||||||||||
Jefferson Point | Newport News, | 9/9/13 | 18,250 | 3,951 | 13,048 | 584 | 667 | 23 | (59 | ) | 18,214 | |||||||||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
Brentdale | Plano, | 7/25/13 | 32,200 | 5,785 | 24,418 | 798 | 1,199 | 52 | (317 | ) | 31,935 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Nob Hill | Winter Park, | 6/27/13 | 10,100 | 2,512 | 6,459 | 523 | 606 | 50 | (61 | ) | 10,089 | |||||||||||||||||||||||||||||||
FL | ||||||||||||||||||||||||||||||||||||||||||
Trailpoint at the Woodlands | Spring, | 6/24/13 | 27,200 | 3,785 | 22,014 | 697 | 704 | 40 | (170 | ) | 27,070 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Retreat at Rocky Ridge | Hoover, | 4/18/13 | 8,500 | 1,616 | 6,418 | 30 | 436 | 2 | (89 | ) | 8,413 | |||||||||||||||||||||||||||||||
AL | ||||||||||||||||||||||||||||||||||||||||||
Ivy at Clear Creek | Houston, | 3/28/13 | 11,750 | 1,877 | 9,175 | 28 | 670 | 8 | (127 | ) | 11,631 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
One Hundred Chevy Chase Apartments | Lexington, | 3/13/13 | 6,850 | 1,323 | 4,981 | 41 | 505 | 7 | (101 | ) | 6,756 | |||||||||||||||||||||||||||||||
KY | ||||||||||||||||||||||||||||||||||||||||||
Deerfield | Hermantown | 3/21/12 | 10,300 | (4) (1) | 1,660 | 11,110 | 500 | 423 | 1 | (4 | ) | 13,690 | ||||||||||||||||||||||||||||||
MN | ||||||||||||||||||||||||||||||||||||||||||
The Alcove | Houston, | 12/21/12 | 5,500 | 1,202 | 3,865 | 20 | 413 | 54 | (13 | ) | 5,541 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Cityside Crossing | Houston, | 12/19/12 | 14,425 | 1,949 | 11,676 | 37 | 763 | 49 | (68 | ) | 14,406 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
The Reserve at | Memphis, | 12/7/12 | 2,275 | 775 | 1,124 | 39 | 337 | 16 | (90 | ) | 2,201 | |||||||||||||||||||||||||||||||
Mount Moriah | TN | |||||||||||||||||||||||||||||||||||||||||
Mosaic | Oklahoma City, | 12/6/12 | 2,050 | 1,000 | 2,609 | 30 | 123 | 14 | (14 | ) | 3,762 | |||||||||||||||||||||||||||||||
OK | ||||||||||||||||||||||||||||||||||||||||||
Williamsburg | Cincinnati, | 6/20/12 | 41,250 | 3,223 | 35,111 | 1,007 | 1,909 | 49 | (274 | ) | 41,025 | |||||||||||||||||||||||||||||||
Apartments | OH | |||||||||||||||||||||||||||||||||||||||||
Cannery Lofts | Dayton, | 5/13/11 | 7,100 | (5) (1) | 160 | 7,913 | 200 | 609 | 35 | — | 8,917 | |||||||||||||||||||||||||||||||
OH | ||||||||||||||||||||||||||||||||||||||||||
The Redford | Houston, | 3/27/12 | 11,400 | 4,073 | 5,235 | 262 | 1,558 | 272 | — | 11,400 | ||||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Campus Club | Tampa, | 10/21/12 | 8,300 | (6) (1) | 1,650 | 6,250 | 200 | 435 | — | — | 8,535 | |||||||||||||||||||||||||||||||
Apartments | FL | |||||||||||||||||||||||||||||||||||||||||
Vista Apartment | Philadelphia, | 6/17/11 | 12,000 | (7) (1) | 1,163 | 9,913 | — | 535 | 530 | (141 | ) | 12,000 | ||||||||||||||||||||||||||||||
Homes | PA | |||||||||||||||||||||||||||||||||||||||||
Arcadia at | Houston, | 9/3/10 | 7,800 | (8) (1) | 943 | 6,599 | — | 258 | — | — | 7,800 | |||||||||||||||||||||||||||||||
Westheimer | TX | |||||||||||||||||||||||||||||||||||||||||
107th Avenue | Omaha, | 8/18/10 | 225 | 25 | 196 | — | 4 | — | — | 225 | ||||||||||||||||||||||||||||||||
NE | ||||||||||||||||||||||||||||||||||||||||||
-1 | The date of acquisition reflects the date the Company acquired the note secured by the property listed. | |||||||||||||||||||||||||||||||||||||||||
-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 | 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. | |||||||||||||||||||||||||||||||||||||||||
-4 | 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. | |||||||||||||||||||||||||||||||||||||||||
-5 | 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. | |||||||||||||||||||||||||||||||||||||||||
-6 | 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. | |||||||||||||||||||||||||||||||||||||||||
-7 | 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. | |||||||||||||||||||||||||||||||||||||||||
-8 | 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 interests in 12 properties during the three months ended March 31, 2014. As of March 31, 2014, asset valuations are based on preliminary valuations at the date of purchase. In order to finalize the fair values of the acquired assets and liabilities, the Company is in the process of obtaining third-party appraisals for all of the properties acquired. The Company has up to 12 months from the date of acquisition to finalize the valuation for each property. The preliminary valuation of Addison Place is included in the table above. | ||||||||||||||||||||||||||||||||||||||||||
Paladin Acquisition | ||||||||||||||||||||||||||||||||||||||||||
On July 18, 2013, Resource Real Estate Opportunity OP, LP (the “Operating Partnership”), the operating partnership of the Company, entered into an Agreement and Plan of Merger with RRE Charlemagne Holdings, LLC, a wholly owned subsidiary of the Operating Partnership (“Merger Sub”), Paladin Realty Income Properties, Inc. (“Paladin”), and Paladin Realty Income Properties, L.P. (“Paladin OP”), whose sole general partner is Paladin, pursuant to which Paladin OP was to merge with and into Merger Sub (the “Merger”), with Merger Sub surviving as a wholly owned subsidiary of the Operating Partnership. | ||||||||||||||||||||||||||||||||||||||||||
On January 28, 2014, the parties completed the Merger resulting in the acquisition by the Operating Partnership of interests in 11 joint ventures that owned a total of 10 multifamily communities with more than 2,500 rentable units and two office properties that contain more than 75,000 rentable square feet. The Operating Partnership also acquired, as part of the Merger, a promissory note in the principal amount of $3.5 million issued by a consolidated joint venture which is eliminated in consolidation. This promissory note is secured by the co-venturer’s interests in such joint venture. The consideration for the Merger was $51.2 million, exclusive of transaction costs. | ||||||||||||||||||||||||||||||||||||||||||
On March 6, 2014, the Company, through a wholly-owned subsidiary, sold its entire 47.65% membership interest in FPA/PRIP Governor Park, LLC ("Governor Park") to FPA Governor Park Associates, LLC for $456,000 pursuant to that certain assignment and assumption of membership interests agreement of even date. Governor Park owns two small office buildings in San Diego, California. The sale price approximated the fair value, therefore no gain or loss has been recognized. | ||||||||||||||||||||||||||||||||||||||||||
The estimated allocation of the purchase price for the interests in the other 10 joint ventures, which is expected to be completed by June 30, 2014, is included below: | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | City | Ownership % | Land | Building | Intangible | Fair Value | Other Net | Non-controlling interest | Total | Goodwill | Allocation of | |||||||||||||||||||||||||||||||
Community Name | and | and | Assets | of | Assets | Company | Purchase | |||||||||||||||||||||||||||||||||||
State | Improvements | Property | (Liabilities) | Equity | Price | |||||||||||||||||||||||||||||||||||||
Champion Farms | Louisville, KY | 70 | % | $ | 3,146 | $ | 21,838 | $ | 646 | $ | 25,630 | $ | (17,419 | ) | $ | (2,463 | ) | $ | 5,748 | $ | 366 | 6,114 | ||||||||||||||||||||
Fieldstone | Woodlawn, OH | 83 | % | 3,089 | 18,980 | 854 | 22,923 | (16,201 | ) | (1,143 | ) | 5,579 | 328 | 5,907 | ||||||||||||||||||||||||||||
Pinehurst | Kansas City, MO | 97.5 | % | 1,627 | 7,193 | 153 | 8,973 | (4,510 | ) | (112 | ) | 4,351 | — | 4,351 | ||||||||||||||||||||||||||||
Pheasant Run | Lee's Summit, MO | 97.5 | % | 1,486 | 9,321 | 306 | 11,113 | (6,711 | ) | (110 | ) | 4,292 | — | 4,292 | ||||||||||||||||||||||||||||
Retreat at Shawnee | Shawnee, KS | 97.5 | % | 2,363 | 16,126 | 659 | 19,148 | (14,543 | ) | (115 | ) | 4,490 | — | 4,490 | ||||||||||||||||||||||||||||
Hilltop Village | Kansas City, MO | 49 | % | 715 | 3,241 | 264 | 4,220 | (4,729 | ) | 260 | (249 | ) | 60 | (189 | ) | |||||||||||||||||||||||||||
Conifer Place | Norcross, GA | 42.5 | % | 10,798 | 24,176 | 1,139 | 36,113 | (29,596 | ) | (3,745 | ) | 2,772 | 3,986 | 6,758 | ||||||||||||||||||||||||||||
Stone Ridge | Columbia, SC | 68.5 | % | 2,825 | 3,840 | 335 | 7,000 | 506 | (2,364 | ) | 5,142 | 1,052 | 6,194 | |||||||||||||||||||||||||||||
Evergreen at Coursey Place | Baton Rouge, LA | 51.7 | % | 9,470 | 33,209 | 705 | 43,384 | (29,063 | ) | (6,912 | ) | 7,409 | 620 | 8,029 | ||||||||||||||||||||||||||||
Pines of York | Yorktown, VA | 90 | % | 8,773 | 11,231 | 800 | 20,804 | (15,473 | ) | (533 | ) | 4,798 | — | 4,798 | ||||||||||||||||||||||||||||
$ | 44,292 | $ | 149,155 | $ | 5,861 | $ | 199,308 | $ | (137,739 | ) | $ | (17,237 | ) | $ | 44,332 | $ | 6,412 | $ | 50,744 | |||||||||||||||||||||||
Governor Park (sold March 6, 2014) | 47.7 | % | 456 | |||||||||||||||||||||||||||||||||||||||
Total purchase price | $ | 51,200 | ||||||||||||||||||||||||||||||||||||||||
On March 31, 2014, the Company purchased the remaining 48.3% ownership interest of its joint venture partner in ERES Coursey, LLC ("Coursey Place") for $7.5 million, bringing the Company's ownership percentage of Evergreen at Coursey Place to 100% from 51.7%. A summary of the transaction is below: | ||||||||||||||||||||||||||||||||||||||||||
Purchase price excluding closing costs | $ | 7,500 | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest assumed | 6,912 | |||||||||||||||||||||||||||||||||||||||||
Prepaid insurance | 7 | |||||||||||||||||||||||||||||||||||||||||
Goodwill | 619 | |||||||||||||||||||||||||||||||||||||||||
Transaction expenses | 45 | |||||||||||||||||||||||||||||||||||||||||
$ | 7,583 | |||||||||||||||||||||||||||||||||||||||||
Total goodwill for the Company is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Goodwill at date of acquisition | $ | 6,412 | ||||||||||||||||||||||||||||||||||||||||
Buyout of Coursey Place joint venture interest | 619 | |||||||||||||||||||||||||||||||||||||||||
Total goodwill | $ | 7,031 | ||||||||||||||||||||||||||||||||||||||||
MEASUREMENT_PERIOD_ADJUSTMENTS
MEASUREMENT PERIOD ADJUSTMENTS | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | |||||||||||
MEASUREMENT PERIOD ADJUSTMENTS | ' | |||||||||||
MEASUREMENT PERIOD ADJUSTMENTS | ||||||||||||
On January 22, 2013, the Company took title to Deerfield after foreclosing on the Deerfield Note, which was originally acquired by the Company for $10.3 million. | ||||||||||||
The measurement period for the above acquisition was finalized during the three months ended December 31, 2013. In completing the accounting for the acquisition of Deerfield, the Company determined that the fair value of the net assets acquired exceeded the fair value of the consideration paid for this acquisition. Accordingly, the Company retrospectively adjusted the provisional amounts with respect to the Deerfield acquisition that was recognized at the acquisition date to reflect new information from the completed third party appraisal report that, if known at the acquisition date, would have affected the measurement of the amounts recognized as of that date. The final purchase price adjustment recorded during the measurement period resulted in a gain on foreclosure of $3.4 million on the Deerfield acquisition. Those changes are reflected in the table below: | ||||||||||||
Deerfield | ||||||||||||
22-Jan-13 | Measurement | 22-Jan-13 | ||||||||||
(As initially reported) | period adjustment | (As adjusted) | ||||||||||
Land | $ | 1,028 | $ | 632 | $ | 1,660 | ||||||
Building | 8,592 | 2,518 | 11,110 | |||||||||
Personal property | — | 500 | 500 | |||||||||
Intangible assets | 680 | (257 | ) | 423 | ||||||||
Identifiable net assets | 10,300 | 3,393 | 13,693 | |||||||||
Gain on foreclosure | — | (3,393 | ) | — | ||||||||
Total net identifiable net assets | $ | 10,300 | $ | — | $ | 13,693 | ||||||
DISPOSITION_OF_PROPERTIES
DISPOSITION OF PROPERTIES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS | ' | ||||||||
DISPOSITION OF PROPERTIES AND DISCONTINUED OPERATIONS | |||||||||
The Company reported its property dispositions as discontinued operations under prior accounting guidance. 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 months ended March 31, 2014 and 2013 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 months ended March 31, 2014 and 2013 as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Rental income | $ | 3 | $ | 806 | |||||
Total revenues | 3 | 806 | |||||||
Expenses: | |||||||||
Rental operating | 1 | 646 | |||||||
General and administrative | — | 58 | |||||||
Loss on property impairment | — | 539 | |||||||
Depreciation and amortization expense | — | 141 | |||||||
Total expenses | 1 | 1,384 | |||||||
Income (loss) from discontinued operations | 2 | (578 | ) | ||||||
Weighted average common shares outstanding | 67,364 | 22,612 | |||||||
Basic and diluted loss per common share | $ | — | $ | (0.03 | ) | ||||
IDENTIFIED_INTANGIBLE_ASSETS_N
IDENTIFIED INTANGIBLE ASSETS, NET | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
IDENTIFIED INTANGIBLE ASSETS, NET | ' | |||
IDENTIFIED INTANGIBLE ASSETS, NET | ||||
Identified intangible assets, net, consist of rental and antennae leases and leasing commissions. The value of the acquired in-place leases totaled $23.0 million and $16.7 million as of March 31, 2014 and December 31, 2013, respectively, net of accumulated amortization of $16.1 million and $11.5 million, respectively. The weighted-average remaining life of the rental leases is 10.0 months and 11.6 months as of March 31, 2014 and December 31, 2013, respectively. Expected amortization for the antennae leases at the Vista Apartment Homes is $16,000 annually through 2025. Amortization of the rental and antennae leases for the three months ended March 31, 2014 was $4.6 million. | ||||
Expected amortization for the rental and antennae leases for the next five years ending March 31, and thereafter, is as follows (in thousands): | ||||
2015 | $ | 6,761 | ||
2016 | 19 | |||
2017 | 17 | |||
2018 | 16 | |||
2019 | 16 | |||
Thereafter | 122 | |||
$ | 6,951 | |||
MORTGAGE_NOTE_PAYABLE
MORTGAGE NOTE PAYABLE | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
MORTGAGE NOTE PAYABLE | ' | |||||||||||||||||||||
MORTGAGE NOTES PAYABLE | ||||||||||||||||||||||
The following is a summary of the mortgage notes payable (in thousands, except percentages): | ||||||||||||||||||||||
Balance Outstanding at | Maturity | Annual | Average | Interest Expense | ||||||||||||||||||
March 31, | Date | Interest Rate | Monthly Debt | Three Months Ended | ||||||||||||||||||
Service | March 31, | |||||||||||||||||||||
Collateral | 2014 | 2014 | 2013 | |||||||||||||||||||
Vista Apartment Homes | $ | 8,794 | 5/1/17 | 2.76 | % | (1) | $ | 38 | $ | 61 | $ | 64 | ||||||||||
Cannery Lofts | 8,190 | 9/1/20 | 3.45 | % | (1) | 24 | 71 | N/A | ||||||||||||||
Deerfield | 10,530 | 11/1/20 | 4.66 | % | (2) | 41 | 123 | N/A | ||||||||||||||
Village Square | 19,362 | 11/1/23 | 5.02 | % | (1) | 81 | 124 | N/A | ||||||||||||||
Ivy at Clear Creek | 8,586 | 11/1/23 | 5.02 | % | (1) | 36 | 55 | N/A | ||||||||||||||
Centennial | 23,161 | 1/1/19 | 3.6 | % | (2) | 101 | 209 | N/A | ||||||||||||||
Pinnacle | 18,702 | 1/1/19 | 3.6 | % | (2) | 82 | 169 | N/A | ||||||||||||||
Terrace at River Oaks | 14,259 | 1/1/22 | 4.32 | % | (2) | 69 | 154 | N/A | ||||||||||||||
Champion Farms | 17,403 | 7/1/16 | 6.14 | % | (2) | 85 | 173 | N/A | ||||||||||||||
Fieldstone | 15,979 | 7/1/14 | 6.05 | % | (2) | 137 | 167 | N/A | ||||||||||||||
Pinehurst | 4,428 | 1/1/16 | 5.58 | % | (2) | 39 | 41 | N/A | ||||||||||||||
Pheasant Run | 6,759 | 10/1/17 | 5.95 | % | (2) | 31 | 64 | N/A | ||||||||||||||
Retreat of Shawnee | 14,333 | 2/1/18 | 5.58 | % | (2) | 99 | 129 | N/A | ||||||||||||||
Hilltop Village | 4,505 | 12/1/17 | 5.81 | % | (2) | 33 | 42 | N/A | ||||||||||||||
Conifer Crossing | 29,380 | 9/1/15 | 5.96 | % | (2) | 203 | 286 | N/A | ||||||||||||||
Coursey Place | 29,313 | 8/1/21 | 5.07 | % | (2) | 154 | 247 | N/A | ||||||||||||||
Pines of York | 15,658 | 12/1/21 | 4.46 | % | (2) | 80 | 121 | N/A | ||||||||||||||
$ | 249,342 | |||||||||||||||||||||
-1 | Variable rate based on one-month LIBOR of 0.15175% (as of March 31, 2014). | |||||||||||||||||||||
-2 | Fixed rate. | |||||||||||||||||||||
Annual principal payments on the mortgage notes payable for each of the next five years ending March 31, and thereafter, are as follows (in thousands): | ||||||||||||||||||||||
2015 | $ | 21,300 | ||||||||||||||||||||
2016 | 5,871 | |||||||||||||||||||||
2017 | 50,273 | |||||||||||||||||||||
2018 | 26,886 | |||||||||||||||||||||
2019 | 30,026 | |||||||||||||||||||||
Thereafter | $ | 114,986 | ||||||||||||||||||||
$ | 249,342 | |||||||||||||||||||||
The mortgage notes payable are recourse only with respect to the properties that secure the notes, subject to certain limited standard exceptions, as defined in each mortgage note. The Company has guaranteed the mortgage notes by executing a guarantee with respect to the properties. These exceptions are referred to as “carveouts.” 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 loan if the borrower voluntarily files for bankruptcy or seeks reorganization, or if a related party of the borrower does so with respect to the subsidiary. |
REVOLVING_CREDIT_FACILITY
REVOLVING CREDIT FACILITY | 3 Months Ended | |
Mar. 31, 2014 | ||
Line of Credit Facility [Abstract] | ' | |
REVOLVING CREDIT FACILITY | ' | |
REVOLVING CREDIT FACILITIES | ||
On December 2, 2011, the Company, through its operating partnership, entered into a secured revolving credit facility (the “Bank of America Credit Facility”) with Bank of America, N.A. (“Bank of America”). On May 23, 2013 the Company amended the Bank of America Credit Facility to increase the amount it may borrow under the Bank of America Credit Facility from $25 million to $50 million (the “Facility Amount”). Draws under the Bank of America Credit Facility are secured by certain of the Company's properties with an aggregate value of $102.0 million and are guaranteed by the Company. The amount currently available to be borrowed is $45.5 million. The Company paid certain closing costs in connection with the Bank of America Credit Facility, including loan fees totaling $413,305. As of both March 31, 2014 and December 31, 2013, the Company had outstanding borrowings of $1.5 million under the Bank of America Credit Facility. | ||
The Bank of America Credit Facility, as amended, matures on May 23, 2017, and may be extended to May 23, 2019 subject to satisfaction of certain conditions and payment of an extension fee equal to 0.25% of the amount committed under the Bank of America Credit Facility. Interest on outstanding borrowings is incurred at a rate of LIBOR plus 3.0% (3.15% at March 31, 2014). The Company is required to make monthly interest-only payments. The Company also may prepay the Bank of America Credit Facility in whole or in part at any time without premium or penalty. The Company recorded interest expense of $8,000 for the three months ended March 31, 2014 in connection with its borrowings under the Bank of America Credit Facility. | ||
The operating partnership's obligations with respect to the Bank of America Credit Facility are guaranteed by the Company, pursuant to the terms of a guaranty dated as of December 2, 2011, or the Guaranty. The Bank of America Credit Facility and the Guaranty contain restrictive covenants for maintaining a certain tangible net worth and a certain level of liquid assets, and for restricting the securing of additional debt as follows: | ||
• | the Company must maintain a minimum tangible net worth equal to at least (i) 200% of the outstanding principal amount of the Bank of America Credit facility and (ii) $20.0 million; | |
• | the Company must also maintain unencumbered liquid assets with a market value of not less than the greater of (i) $5.0 million or (ii) 20% of the outstanding principal amount of the Bank of America Credit Facility; and | |
• | the Company may not incur any additional secured or unsecured debt without Bank of America's prior written consent and approval, which consent and approval is not to be unreasonable withheld. | |
The Company was in compliance with all such covenants at March 31, 2014. | ||
On December 20, 2013, the Company, through a wholly-owned subsidiary, entered into a secured revolving credit facility, ("Jefferson Point Credit Facility") with PNC Bank, National Association for $15 million. Draws under the Jefferson Point Credit Facility are secured by the assets of Jefferson Point Apartments. The Company provided a repayment guarantee of all interest and scheduled monthly principal payments (excluding the final payment at maturity for the outstanding balance.) The Jefferson Point Credit Facility matures on December 20, 2018. As of March 31, 2014 and December 31, 2013, the Company had outstanding borrowings of $12.5 million. Interest on outstanding borrowings is incurred at a rate of LIBOR plus 2.00% (2.15% at March 31, 2014). The Company paid certain closing costs in connection with the Jefferson Point Credit Facility, including loan fees totaling $75,000. The Company recorded interest expense of $68,000 for the three months ended March 31, 2014 in connection with its borrowings under the Jefferson Point Credit Facility. | ||
On December 27, 2013, the Company, through a wholly-owned subsidiary, entered into a secured revolving credit facility ("Brentdale Credit Facility") with U.S. Bank National Association for $29.7 million. Draws under the Brentdale Credit Facility are secured by the assets of Brentdale Apartments. The Company provided a $6.5 million repayment guarantee. The Brentdale Credit Facility matures on December 27, 2017, and may be extended to December 27, 2019 subject to satisfaction of certain conditions and payment of an extension fee equal to 0.25% of the amount committed under the Brentdale Credit Facility. As of March 31, 2014 and December 31, 2013, the Company had outstanding borrowings of $23.0 million. Interest on outstanding borrowings is incurred at a rate of LIBOR plus 1.95% (2.10% at March 31, 2014). The Company paid certain closing costs in connection with the Brentdale Credit Facility, including loan fees totaling $222,000. The Company recorded interest expense of $7,000 for the three months ended March 31, 2014 in connection with its borrowings under the Brentdale Credit Facility. |
DEFERRED_FINANCING_COSTS
DEFERRED FINANCING COSTS | 3 Months Ended | |||
Mar. 31, 2014 | ||||
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 March 31, 2014 and December 31, 2013 was approximately $550,000 and $419,000, respectively. Estimated amortization of the existing deferred financing costs for the next five years ending March 31, and thereafter, are as follows (in thousands): | ||||
2015 | $ | 943 | ||
2016 | 930 | |||
2017 | 924 | |||
2018 | 560 | |||
2019 | 276 | |||
Thereafter | 973 | |||
$ | 4,606 | |||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Equity [Abstract] | ' | |||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
The following table presents the changes in each component of accumulated other comprehensive income for the three months ended March 31, 2014 (dollars in thousands): | ||||
Net unrealized gain (loss) | ||||
on derivatives | ||||
1-Jan-14 | $ | 20 | ||
Unrealized loss on designated derivative | (58 | ) | ||
31-Mar-14 | $ | (38 | ) |
CERTAIN_RELATIONSHIPS_AND_RELA
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 Company's properties participate in an insurance pool with other properties directly and indirectly managed by RAI. RAI holds the escrow funds related to the insurance pool on its books. The insurance pool covers losses up to $3.0 million. Catastrophic insurance would cover losses in excess of the insurance pool up to $85.0 million. 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 15, 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 2.0% 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 1.0% 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 if none is paid, 2.75% of the contract sales price. No properties were sold during the three months ended March 31, 2014 and 2013 and, therefore, no disposition fees were earned in either period. | ||||||||
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 it provided substantial services. | ||||||||
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 public offering, including its ongoing distribution reinvestment plan 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 construction management fee and property management/debt servicing fees. | ||||||||
Construction management fees. The Manager earns a construction management fee of 5.0% of actual aggregate costs to construct improvements, or to repair, rehab or reconstruct a property. | ||||||||
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”), an affiliate of the Advisor, served as the Company’s dealer-manager and was responsible for marketing the Company’s shares in the primary portion of its public offering. Pursuant to the terms of the dealer-manager agreement with Resource Securities, the Company paid Resource Securities a selling commission of up to 7% of gross primary offering proceeds and a dealer-manager fee of up to 3% of gross primary offering proceeds. | ||||||||
Resource Securities reallowed 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 could 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): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Receivables from related parties: | ||||||||
RAI and affiliates | $ | 54 | $ | 530 | ||||
Payables to related parties: | ||||||||
Advisor: | ||||||||
Acquisition fees | $ | 952 | $ | — | ||||
Expense reimbursements | 228 | 775 | ||||||
Resource Real Estate Opportunity Manager, LLC: | ||||||||
Property management fees | 269 | 266 | ||||||
Operating expense reimbursements | 362 | 500 | ||||||
Resource Securities, Inc. | ||||||||
Selling commissions and dealer manager fees | — | 174 | ||||||
Other | 15 | 3 | ||||||
$ | 1,826 | $ | 1,718 | |||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Fees earned / expenses paid to related parties: | ||||||||
Advisor: | ||||||||
Acquisition fees | $ | 2,723 | $ | 555 | ||||
Asset management fees | $ | 1,250 | $ | 406 | ||||
Organization and offering costs | $ | — | $ | 103 | ||||
Overhead allocation | $ | 351 | $ | 101 | ||||
Resource Real Estate Opportunity Manager LLC: | ||||||||
Property management fees | $ | 696 | $ | 413 | ||||
Construction management fees | $ | 229 | $ | — | ||||
Debt servicing fees | $ | — | $ | 1 | ||||
Resource Securities, Inc.: | ||||||||
Selling commissions and dealer manager fees | $ | — | $ | 5,100 | ||||
Other: | ||||||||
Ledgewood | $ | 30 | $ | 31 | ||||
Graphic Images | $ | 33 | $ | 133 | ||||
EQUITY
EQUITY | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
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 March 31, 2014 and December 31, 2013, no shares of preferred stock were issued and outstanding. | |||||||||||||||||||
Common Stock | |||||||||||||||||||
As of March 31, 2014, the Company had issued an aggregate of 67,554,712 shares, net of redemptions, 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 | 62,485,461 | 622,000 | |||||||||||||||||
Shares issued through stock distributions | 2,132,266 | — | |||||||||||||||||
Shares issued through distribution reinvestment plan | 1,657,758 | 16,000 | |||||||||||||||||
Shares issued in conjunction with the Advisor's initial investment, | 15,500 | 200 | |||||||||||||||||
net of 4,500 share conversion | |||||||||||||||||||
Total | 67,554,712 | $ | 650,700 | ||||||||||||||||
Convertible Stock | |||||||||||||||||||
As of March 31, 2014 and December 31, 2013, the Company had 50,000 shares of $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 the 31st trading day after 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 March 31, 2014, the Company redeemed its shares as follows: | |||||||||||||||||||
Period | Total Number | Average Price | Cumulative Number of | Approximate Dollar | |||||||||||||||
of Shares | Paid per Share | Shares Purchased | Value of Shares | ||||||||||||||||
Redeemed (1) | as Part of a | Available That May | |||||||||||||||||
Publicly Announced | Yet Be Redeemed | ||||||||||||||||||
Plan or Program (2) | Under the Program | ||||||||||||||||||
Jan-14 | — | — | — | -2 | |||||||||||||||
Feb-14 | — | — | — | -2 | |||||||||||||||
Mar-14 | 46,237 | $8.66 | 46,237 | -2 | |||||||||||||||
-1 | All redemptions of equity securities by the Company in the three months ended March 31, 2014 were made pursuant to the Company's share redemption program. | ||||||||||||||||||
-2 | The Company currently limits the dollar value and number of shares that may be redeemed under the program as described below. | ||||||||||||||||||
All redemption requests tendered were honored during the three months ended March 31, 2014. | |||||||||||||||||||
The Company will not redeem in excess of 5% of the weighted-average number of shares outstanding during the 12-month period immediately prior to the effective date of redemption. The Company's board of directors will determine at least quarterly whether it has sufficient excess cash to repurchase shares. Generally, the cash available for redemptions will be limited to proceeds from the Company's distribution reinvestment plan plus, if the Company has positive operating cash flow from the previous fiscal year, 1% of all operating cash flow from the previous year. | |||||||||||||||||||
The Company's Board of Directors, in its sole discretion, may suspend, terminate or amend the Company's share redemption program without stockholder approval upon 30 days' notice if it determines that such suspension, termination or amendment is in the Company's best interest. The Company's board may also reduce the number of shares purchased under the share redemption program if it determines the funds otherwise available to fund the Company's share redemption program are needed for other purposes. These limitations apply to all redemptions, including redemptions sought upon a stockholder's death, qualifying disability or confinement to a long-term care facility. | |||||||||||||||||||
Distributions | |||||||||||||||||||
For the three months ended March 31, 2014, the Company paid aggregate distributions of $6.7 million, including $2.0 million of distributions paid in cash and $4.7 million of distributions reinvested in shares of common stock through the Company's distribution reinvestment plan, as follows (in thousands): | |||||||||||||||||||
Record Date | Per Common | Distribution Date | Distribution | Aggregate | Total | ||||||||||||||
Share | invested in | Cash | Aggregate | ||||||||||||||||
shares of | Distribution | Distribution | |||||||||||||||||
Common Stock | |||||||||||||||||||
December 31, 2013 | $ | 0.033 | January 2, 2014 | $ | 1,566 | $ | 656 | $ | 2,222 | ||||||||||
January 31, 2014 | 0.033 | February 3, 2014 | 1,575 | 663 | 2,238 | ||||||||||||||
February 28, 2014 | 0.033 | March 2, 2014 | 1,571 | 670 | 2,241 | ||||||||||||||
$ | 4,712 | $ | 1,989 | $ | 6,701 | ||||||||||||||
On February 4, 2014, the Company's Board of Directors declared cash distributions of $2.2 million ($0.3333 per common share) to stockholders of record as of the close of business on March 31, 2014, which distributions were paid on April 1, 2014. | |||||||||||||||||||
Since its formation, the Company has declared a total of seven quarterly stock distributions of 0.015 shares each, two quarterly stock distributions of 0.0075 shares each, one quarterly stock distribution of 0.00585 shares each, and two quarterly stock distributions of 0.005 shares each of its common stock outstanding. In connection with these stock distributions, the Company increased its accumulated deficit by $21.0 million as of March 31, 2014. |
FAIR_VALUE_MEASURES_AND_DISCLO
FAIR VALUE MEASURES AND DISCLOSURES | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASURES AND DISCLOSURES | ' | |||||||||||||||
FAIR VALUE MEASURES 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 carrying and fair values of the Company’s loans held for investment, net, mortgage note payable and revolving credit facilities were as follows (in thousands): | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Loans held for investment, net | $ | 1,746 | $ | 1,746 | $ | 1,724 | $ | 1,724 | ||||||||
Mortgage notes payable | $ | (249,342 | ) | $ | (248,393 | ) | $ | (111,811 | ) | $ | (110,413 | ) | ||||
Revolving credit facilities | $ | (37,041 | ) | $ | (37,041 | ) | $ | (37,041 | ) | $ | (37,041 | ) | ||||
The fair value of the loans held for investment, net, was estimated by comparing the recorded amount of the loan to the fair value of the collateral. On February 27, 2014, the Company foreclosed on the property securing the Peterson Note. On March 3, 2014, an offer to purchase the property was presented to the Company for $24,000 less than the carrying amount of the note. Accordingly, the Company has adjusted the carrying amount of the note at December 31, 2013 for such impairment. | ||||||||||||||||
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 values of the revolving credit facilities equal the carrying amounts because the interest rate of each of the credit facilities is variable. |
DERIVATIVES_AND_HEDGING_ACTIVI
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | ' | ||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | |||||||||||||||||||||||||
Risk Management Objective of Using Derivatives | |||||||||||||||||||||||||
The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. | |||||||||||||||||||||||||
As a condition to certain of the Company’s financing facilities, from time to time the Company may be required to enter into certain derivative transactions as may be required by the lender. These transactions would generally be in line with the Company’s own risk management objectives and also service to protect the lender. | |||||||||||||||||||||||||
Cash Flow Hedges of Interest Rate Risk | |||||||||||||||||||||||||
The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company entered into two interest rate caps that were designated as cash flow hedges during 2013. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. | |||||||||||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the year end December 31, 2013 such derivatives were used to hedge the variable cash flows, indexed to USD-LIBOR, associated with existing variable-rate loan agreements. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three months ended March 31, 2014, the Company did not record any hedge ineffectiveness in earnings. | |||||||||||||||||||||||||
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. | |||||||||||||||||||||||||
As of March 31, 2014, the Company had the following outstanding interest rate derivatives,which mature on November 1, 2018, that were designated as cash flow hedges of interest rate risk (dollars in thousands): | |||||||||||||||||||||||||
Interest Rate Derivative | Number of Instruments | Notional | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Interest Rate Caps | 2 | $ | 27,948 | ||||||||||||||||||||||
Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet | |||||||||||||||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Interest rate cap | $ | 232 | Interest rate cap | $ | 290 | — | $ | — | — | $ | — | ||||||||||||||
OPERATING_EXPENSE_LIMITATION
OPERATING EXPENSE LIMITATION | 3 Months Ended |
Mar. 31, 2014 | |
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 quarters ended March 31, 2014 were in compliance with the charter imposed limitation. |
GAIN_ON_FORECLOSURE
GAIN ON FORECLOSURE | 3 Months Ended |
Mar. 31, 2014 | |
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 $3.4 million. After making adjustments to security deposits totaling $81,000, the Company recorded a net gain on foreclosure of $3.5 million during the three months ended March 31, 2013. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | |
On February 27, 2014, the Company was the successful bidder at a foreclosure sale of the property collateralizing the Peterson Note. On April 6, 2014, the Company sold its interest in the sheriff's deed for the Peterson Apartment for $195,000 to an unaffiliated purchaser. | |
On May 5, 2014, the Company purchased a 142-unit multifamily community located in Plano, Texas from an unaffiliated seller for $15.0 million. | |
The Company has evaluated subsequent events and determined that no events have occurred, other than those disclosed above, which would require an adjustment to the consolidated financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
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 Complex | Number | Property Location | ||||
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 Charlemagne Holdings, LLC | N/A | N/A | N/A | ||||
RRE 107th Avenue Holdings, LLC (“107th Avenue”) | 107th Avenue | 5 | Omaha, NE | ||||
RRE Westhollow Holdings, LLC (“Westhollow”) | Arcadia | 404 | Houston, TX | ||||
RRE Crestwood Holdings, LLC (“Crestwood”) | Town Park (a) | N/A | Birmingham, AL | ||||
RRE Iroquois, LP (“Vista”) | Vista Apartment Homes | 133 | Philadelphia, PA | ||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||
RRE Campus Club Holdings, LLC (“Campus Club”) | Campus Club | 64 | Tampa, FL | ||||
RRE Bristol Holdings, LLC (“Bristol”) | The Redford | 856 | Houston, TX | ||||
RRE Cannery Holdings, LLC (“Cannery”) | Cannery Lofts | 156 | Dayton, OH | ||||
RRE Williamsburg Holdings, LLC (“Williamsburg”) | Williamsburg | 976 | Cincinnati, OH | ||||
WPL Holdings, LLC | Williamsburg | N/A | Cincinnati, OH | ||||
Parking Lot | |||||||
RRE Skyview Holdings, LLC ("Skyview") | Cityside Crossing | 360 | Houston, TX | ||||
RRE Park Forest Holdings, LLC ("Park Forest") | Mosaic | 216 | Oklahoma City, OK | ||||
RRE Foxwood Holdings, LLC ("Foxwood") | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||
RRE Flagstone Holdings, LLC ("Flagstone") | The Alcove | 292 | Houston, TX | ||||
RRE Deerfield Holdings, LLC ("Deerfield") | Deerfield | 166 | Hermantown, MN | ||||
RRE Kenwick Canterbury Holdings, LLC ("Kenwick & Canterbury") | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||
RRE Armand Place Holdings, LLC ("Armand") | Ivy at Clear Creek | 244 | Houston, TX | ||||
RRE Autumn Wood Holdings, LLC ("Autumn Wood") | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||
RRE Village Square Holdings, LLC ("Village Square") | Trailpoint at the Woodlands | 271 | Houston, TX | ||||
RRE Nob Hill Holdings, LLC ("Nob Hill") | Nob Hill | 192 | Winter Park, FL | ||||
RRE Brentdale Holdings, LLC ("Brentdale") | Brentdale | 412 | Plano, TX | ||||
RRE Jefferson Point Holdings, LLC ("Jefferson Point") | Jefferson Point | 208 | Newport News, VA | ||||
RRE Centennial Holdings, LLC ("Centennial") | Centennial | 276 | Littleton, CO | ||||
RRE Pinnacle Holdings, LLC ("Pinnacle") | Pinnacle | 224 | Westminster, CO | ||||
RRE Jasmine Holdings, LLC ("Jasmine") | Jasmine at Holcomb Bridge | 437 | Alpharetta, GA | ||||
RRE River Oaks Holdings, LLC ("River Oaks") | Terrace at River Oaks | 314 | San Antonio, TX | ||||
RRE Nicollet Ridge Holdings, LLC ("Nicollet Ridge") | Nicollet Ridge | 339 | Burnsville, MN | ||||
RRE Addison Place, LLC ("Addison Place") | Addison Place | 403 | Alpharetta, GA | ||||
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. | |||||||
An impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of a property to be held and used. 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 Purchase Price of Acquired and Foreclosed Assets | ' | ||||||
The cost of rental properties acquired directly as fee interests and 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. | |||||||
Goodwill | ' | ||||||
The Company records the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed as goodwill. Goodwill is not amortized but is tested for impairment at a level of reporting referred to as a reporting unit on an annual basis, during the fourth quarter of each calendar year, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. | |||||||
Noncontrolling Interest | ' | ||||||
Noncontrolling interests are presented and disclosed as a separate component of stockholders' equity (not as a liability or other item outside of stockholders' equity). Consolidated net income (loss) includes the noncontrolling interests’ share of income (loss). All changes in the Company’s ownership interest in a subsidiary are accounted for as stockholders' equity transactions if the Company retains its controlling financial interest in the subsidiary. | |||||||
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 sale 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 at amounts due from tenants 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 March 31, 2014, the Advisor has advanced $4.6 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 was 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 was 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 March 31, 2014 and December 31, 2013, $4.6 million and $4.2 million, respectively, have been reimbursed 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 March 31, 2014 and December 31, 2013, the Company had no TRSs. | |||||||
The Company evaluates the benefits from tax positions taken or expected to be taken in its tax return. 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 year. 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. | |||||||
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). | |||||||
Adoption of New Accounting Standard | ' | ||||||
early adopted the following accounting standard during 2014 which had a material impact on its consolidated financial position, results of operations and cash flows: | |||||||
Accounting Standards Issued But Not Yet Effective | |||||||
In April 2014, the Financial Accounting Standards Board, or FASB, issued authoritative guidance to change the criteria for reporting discontinued operations. Under the new guidance, only disposals representing a strategic shift in a company's operations and financial results should be reported as discontinued operations, with expanded disclosures. In addition, disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify as a discontinued operation is required. The Company |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
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 Complex | Number | Property Location | ||||
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 Charlemagne Holdings, LLC | N/A | N/A | N/A | ||||
RRE 107th Avenue Holdings, LLC (“107th Avenue”) | 107th Avenue | 5 | Omaha, NE | ||||
RRE Westhollow Holdings, LLC (“Westhollow”) | Arcadia | 404 | Houston, TX | ||||
RRE Crestwood Holdings, LLC (“Crestwood”) | Town Park (a) | N/A | Birmingham, AL | ||||
RRE Iroquois, LP (“Vista”) | Vista Apartment Homes | 133 | Philadelphia, PA | ||||
RRE Iroquois Holdings, LLC | N/A | N/A | N/A | ||||
RRE Campus Club Holdings, LLC (“Campus Club”) | Campus Club | 64 | Tampa, FL | ||||
RRE Bristol Holdings, LLC (“Bristol”) | The Redford | 856 | Houston, TX | ||||
RRE Cannery Holdings, LLC (“Cannery”) | Cannery Lofts | 156 | Dayton, OH | ||||
RRE Williamsburg Holdings, LLC (“Williamsburg”) | Williamsburg | 976 | Cincinnati, OH | ||||
WPL Holdings, LLC | Williamsburg | N/A | Cincinnati, OH | ||||
Parking Lot | |||||||
RRE Skyview Holdings, LLC ("Skyview") | Cityside Crossing | 360 | Houston, TX | ||||
RRE Park Forest Holdings, LLC ("Park Forest") | Mosaic | 216 | Oklahoma City, OK | ||||
RRE Foxwood Holdings, LLC ("Foxwood") | The Reserve at Mt. Moriah | 220 | Memphis, TN | ||||
RRE Flagstone Holdings, LLC ("Flagstone") | The Alcove | 292 | Houston, TX | ||||
RRE Deerfield Holdings, LLC ("Deerfield") | Deerfield | 166 | Hermantown, MN | ||||
RRE Kenwick Canterbury Holdings, LLC ("Kenwick & Canterbury") | One Hundred Chevy Chase Apartments | 244 | Lexington, KY | ||||
RRE Armand Place Holdings, LLC ("Armand") | Ivy at Clear Creek | 244 | Houston, TX | ||||
RRE Autumn Wood Holdings, LLC ("Autumn Wood") | Retreat at Rocky Ridge | 196 | Hoover, AL | ||||
RRE Village Square Holdings, LLC ("Village Square") | Trailpoint at the Woodlands | 271 | Houston, TX | ||||
RRE Nob Hill Holdings, LLC ("Nob Hill") | Nob Hill | 192 | Winter Park, FL | ||||
RRE Brentdale Holdings, LLC ("Brentdale") | Brentdale | 412 | Plano, TX | ||||
RRE Jefferson Point Holdings, LLC ("Jefferson Point") | Jefferson Point | 208 | Newport News, VA | ||||
RRE Centennial Holdings, LLC ("Centennial") | Centennial | 276 | Littleton, CO | ||||
RRE Pinnacle Holdings, LLC ("Pinnacle") | Pinnacle | 224 | Westminster, CO | ||||
RRE Jasmine Holdings, LLC ("Jasmine") | Jasmine at Holcomb Bridge | 437 | Alpharetta, GA | ||||
RRE River Oaks Holdings, LLC ("River Oaks") | Terrace at River Oaks | 314 | San Antonio, TX | ||||
RRE Nicollet Ridge Holdings, LLC ("Nicollet Ridge") | Nicollet Ridge | 339 | Burnsville, MN | ||||
RRE Addison Place, LLC ("Addison Place") | Addison Place | 403 | Alpharetta, GA | ||||
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) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
The following table presents supplemental cash flow information (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Non-cash activities: | ||||||||
Property and intangibles received on foreclosure of loans held for investment | $ | — | $ | 10,150 | ||||
Financing provided for disposed property | — | 800 | ||||||
Stock issued from distribution reinvestment plan | 4,712 | 9,984 | ||||||
Stock distributions issued | 3,333 | 8,221 | ||||||
Cash distributions on common stock declared but not yet paid | 2,248 | 2,222 | ||||||
Deferred financing costs and escrow deposits funded directly by mortgage note and revolving credit facility | — | 2,880 | ||||||
Debt assumed | 138,327 | — | ||||||
Cash paid during the period for: | ||||||||
Interest | $ | 1,778 | $ | 537 | ||||
RENTAL_PROPERTIES_NET_Tables
RENTAL PROPERTIES, NET (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Real Estate Investments, Net [Abstract] | ' | |||||||
Investments in Rental Properties | ' | |||||||
The Company’s investments in rental properties consisted of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Land | $ | 125,072 | $ | 62,859 | ||||
Building and improvements | 529,467 | 325,412 | ||||||
Furniture, fixtures and equipment | 16,218 | 17,051 | ||||||
Construction in progress | 1,679 | 827 | ||||||
672,436 | 406,149 | |||||||
Less: accumulated depreciation | (22,130 | ) | (15,776 | ) | ||||
$ | 650,306 | $ | 390,373 | |||||
LOANS_HELD_FOR_INVESTMENT_NET_
LOANS HELD FOR INVESTMENT, NET (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
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): | |||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||
Amount | Percent | Amount | Percent | ||||||||||
Current | $ | 1,551 | 89% | $ | 1,529 | 89% | |||||||
Delinquent: | |||||||||||||
30−89 days | — | —% | 195 | 11% | |||||||||
90−180 days | 195 | 11% | — | —% | |||||||||
Greater than 180 days | — | —% | — | —% | |||||||||
$ | 1,746 | 100% | $ | 1,724 | 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): | |||||||||||||
March 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Loans: | |||||||||||||
Performing | $ | 1,551 | $ | 1,529 | |||||||||
Nonperforming | 195 | 195 | |||||||||||
Total | $ | 1,746 | $ | 1,724 | |||||||||
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 | |||||||||||
Face value | $ | 242 | $ | 1,058 | $ | 800 | |||||||
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_GOODWILL_AND_FORE1
ACQUISITIONS, GOODWILL AND FORECLOSURES (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
Schedule of purchase price allocation | ' | |||||||||||||||||||||||||||||||||||||||||
The estimated allocation of the purchase price for the interests in the other 10 joint ventures, which is expected to be completed by June 30, 2014, is included below: | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | City | Ownership % | Land | Building | Intangible | Fair Value | Other Net | Non-controlling interest | Total | Goodwill | Allocation of | |||||||||||||||||||||||||||||||
Community Name | and | and | Assets | of | Assets | Company | Purchase | |||||||||||||||||||||||||||||||||||
State | Improvements | Property | (Liabilities) | Equity | Price | |||||||||||||||||||||||||||||||||||||
Champion Farms | Louisville, KY | 70 | % | $ | 3,146 | $ | 21,838 | $ | 646 | $ | 25,630 | $ | (17,419 | ) | $ | (2,463 | ) | $ | 5,748 | $ | 366 | 6,114 | ||||||||||||||||||||
Fieldstone | Woodlawn, OH | 83 | % | 3,089 | 18,980 | 854 | 22,923 | (16,201 | ) | (1,143 | ) | 5,579 | 328 | 5,907 | ||||||||||||||||||||||||||||
Pinehurst | Kansas City, MO | 97.5 | % | 1,627 | 7,193 | 153 | 8,973 | (4,510 | ) | (112 | ) | 4,351 | — | 4,351 | ||||||||||||||||||||||||||||
Pheasant Run | Lee's Summit, MO | 97.5 | % | 1,486 | 9,321 | 306 | 11,113 | (6,711 | ) | (110 | ) | 4,292 | — | 4,292 | ||||||||||||||||||||||||||||
Retreat at Shawnee | Shawnee, KS | 97.5 | % | 2,363 | 16,126 | 659 | 19,148 | (14,543 | ) | (115 | ) | 4,490 | — | 4,490 | ||||||||||||||||||||||||||||
Hilltop Village | Kansas City, MO | 49 | % | 715 | 3,241 | 264 | 4,220 | (4,729 | ) | 260 | (249 | ) | 60 | (189 | ) | |||||||||||||||||||||||||||
Conifer Place | Norcross, GA | 42.5 | % | 10,798 | 24,176 | 1,139 | 36,113 | (29,596 | ) | (3,745 | ) | 2,772 | 3,986 | 6,758 | ||||||||||||||||||||||||||||
Stone Ridge | Columbia, SC | 68.5 | % | 2,825 | 3,840 | 335 | 7,000 | 506 | (2,364 | ) | 5,142 | 1,052 | 6,194 | |||||||||||||||||||||||||||||
Evergreen at Coursey Place | Baton Rouge, LA | 51.7 | % | 9,470 | 33,209 | 705 | 43,384 | (29,063 | ) | (6,912 | ) | 7,409 | 620 | 8,029 | ||||||||||||||||||||||||||||
Pines of York | Yorktown, VA | 90 | % | 8,773 | 11,231 | 800 | 20,804 | (15,473 | ) | (533 | ) | 4,798 | — | 4,798 | ||||||||||||||||||||||||||||
$ | 44,292 | $ | 149,155 | $ | 5,861 | $ | 199,308 | $ | (137,739 | ) | $ | (17,237 | ) | $ | 44,332 | $ | 6,412 | $ | 50,744 | |||||||||||||||||||||||
Governor Park (sold March 6, 2014) | 47.7 | % | 456 | |||||||||||||||||||||||||||||||||||||||
Total purchase price | $ | 51,200 | ||||||||||||||||||||||||||||||||||||||||
The table below summarizes the Company's wholly-owned acquisitions and the respective fair values assigned (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||||||
Multifamily | City and State | Date of | Purchase | Land | Building and | Furniture, Fixture and Equipment | Intangible Assets | Other Assets | Other | Fair Valued | ||||||||||||||||||||||||||||||||
Community Name | Acquisition | Price (2) | Improvements | Liabilities | Assigned | |||||||||||||||||||||||||||||||||||||
Addison Place | Alpharetta, GA | 3/28/14 | $ | 70,500 | (3) | $ | 18,137 | $ | 51,843 | $ | — | $ | 521 | $ | 55 | $ | (392 | ) | $ | 70,164 | ||||||||||||||||||||||
Nicollet Ridge | Burnsville, MN | 12/20/13 | 33,149 | 4,134 | 26,992 | 1,016 | 1,008 | 36 | (107 | ) | 33,079 | |||||||||||||||||||||||||||||||
Terrace at River Oaks | San Antonio, TX | 12/16/13 | 22,500 | 3,830 | 17,510 | 491 | 669 | 48 | (63 | ) | 22,485 | |||||||||||||||||||||||||||||||
Jasmine at Holcomb Bridge | Alpharetta, GA | 10/25/13 | 25,050 | 7,582 | 16,023 | 587 | 859 | 37 | (161 | ) | 24,927 | |||||||||||||||||||||||||||||||
Centennial | Littleton, | 9/30/13 | 30,600 | 5,702 | 23,609 | 198 | 1,090 | 24 | (190 | ) | 30,433 | |||||||||||||||||||||||||||||||
CO | ||||||||||||||||||||||||||||||||||||||||||
Pinnacle | Westminster, | 9/30/13 | 24,250 | 2,923 | 20,301 | 97 | 928 | 20 | (147 | ) | 24,122 | |||||||||||||||||||||||||||||||
CO | ||||||||||||||||||||||||||||||||||||||||||
Jefferson Point | Newport News, | 9/9/13 | 18,250 | 3,951 | 13,048 | 584 | 667 | 23 | (59 | ) | 18,214 | |||||||||||||||||||||||||||||||
VA | ||||||||||||||||||||||||||||||||||||||||||
Brentdale | Plano, | 7/25/13 | 32,200 | 5,785 | 24,418 | 798 | 1,199 | 52 | (317 | ) | 31,935 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Nob Hill | Winter Park, | 6/27/13 | 10,100 | 2,512 | 6,459 | 523 | 606 | 50 | (61 | ) | 10,089 | |||||||||||||||||||||||||||||||
FL | ||||||||||||||||||||||||||||||||||||||||||
Trailpoint at the Woodlands | Spring, | 6/24/13 | 27,200 | 3,785 | 22,014 | 697 | 704 | 40 | (170 | ) | 27,070 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Retreat at Rocky Ridge | Hoover, | 4/18/13 | 8,500 | 1,616 | 6,418 | 30 | 436 | 2 | (89 | ) | 8,413 | |||||||||||||||||||||||||||||||
AL | ||||||||||||||||||||||||||||||||||||||||||
Ivy at Clear Creek | Houston, | 3/28/13 | 11,750 | 1,877 | 9,175 | 28 | 670 | 8 | (127 | ) | 11,631 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
One Hundred Chevy Chase Apartments | Lexington, | 3/13/13 | 6,850 | 1,323 | 4,981 | 41 | 505 | 7 | (101 | ) | 6,756 | |||||||||||||||||||||||||||||||
KY | ||||||||||||||||||||||||||||||||||||||||||
Deerfield | Hermantown | 3/21/12 | 10,300 | (4) (1) | 1,660 | 11,110 | 500 | 423 | 1 | (4 | ) | 13,690 | ||||||||||||||||||||||||||||||
MN | ||||||||||||||||||||||||||||||||||||||||||
The Alcove | Houston, | 12/21/12 | 5,500 | 1,202 | 3,865 | 20 | 413 | 54 | (13 | ) | 5,541 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Cityside Crossing | Houston, | 12/19/12 | 14,425 | 1,949 | 11,676 | 37 | 763 | 49 | (68 | ) | 14,406 | |||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
The Reserve at | Memphis, | 12/7/12 | 2,275 | 775 | 1,124 | 39 | 337 | 16 | (90 | ) | 2,201 | |||||||||||||||||||||||||||||||
Mount Moriah | TN | |||||||||||||||||||||||||||||||||||||||||
Mosaic | Oklahoma City, | 12/6/12 | 2,050 | 1,000 | 2,609 | 30 | 123 | 14 | (14 | ) | 3,762 | |||||||||||||||||||||||||||||||
OK | ||||||||||||||||||||||||||||||||||||||||||
Williamsburg | Cincinnati, | 6/20/12 | 41,250 | 3,223 | 35,111 | 1,007 | 1,909 | 49 | (274 | ) | 41,025 | |||||||||||||||||||||||||||||||
Apartments | OH | |||||||||||||||||||||||||||||||||||||||||
Cannery Lofts | Dayton, | 5/13/11 | 7,100 | (5) (1) | 160 | 7,913 | 200 | 609 | 35 | — | 8,917 | |||||||||||||||||||||||||||||||
OH | ||||||||||||||||||||||||||||||||||||||||||
The Redford | Houston, | 3/27/12 | 11,400 | 4,073 | 5,235 | 262 | 1,558 | 272 | — | 11,400 | ||||||||||||||||||||||||||||||||
TX | ||||||||||||||||||||||||||||||||||||||||||
Campus Club | Tampa, | 10/21/12 | 8,300 | (6) (1) | 1,650 | 6,250 | 200 | 435 | — | — | 8,535 | |||||||||||||||||||||||||||||||
Apartments | FL | |||||||||||||||||||||||||||||||||||||||||
Vista Apartment | Philadelphia, | 6/17/11 | 12,000 | (7) (1) | 1,163 | 9,913 | — | 535 | 530 | (141 | ) | 12,000 | ||||||||||||||||||||||||||||||
Homes | PA | |||||||||||||||||||||||||||||||||||||||||
Arcadia at | Houston, | 9/3/10 | 7,800 | (8) (1) | 943 | 6,599 | — | 258 | — | — | 7,800 | |||||||||||||||||||||||||||||||
Westheimer | TX | |||||||||||||||||||||||||||||||||||||||||
107th Avenue | Omaha, | 8/18/10 | 225 | 25 | 196 | — | 4 | — | — | 225 | ||||||||||||||||||||||||||||||||
NE | ||||||||||||||||||||||||||||||||||||||||||
-1 | The date of acquisition reflects the date the Company acquired the note secured by the property listed. | |||||||||||||||||||||||||||||||||||||||||
-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 | 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. | |||||||||||||||||||||||||||||||||||||||||
-4 | 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. | |||||||||||||||||||||||||||||||||||||||||
-5 | 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. | |||||||||||||||||||||||||||||||||||||||||
-6 | 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. | |||||||||||||||||||||||||||||||||||||||||
-7 | 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. | |||||||||||||||||||||||||||||||||||||||||
-8 | 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. | |||||||||||||||||||||||||||||||||||||||||
A summary of the transaction is below: | ||||||||||||||||||||||||||||||||||||||||||
Purchase price excluding closing costs | $ | 7,500 | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest assumed | 6,912 | |||||||||||||||||||||||||||||||||||||||||
Prepaid insurance | 7 | |||||||||||||||||||||||||||||||||||||||||
Goodwill | 619 | |||||||||||||||||||||||||||||||||||||||||
Transaction expenses | 45 | |||||||||||||||||||||||||||||||||||||||||
$ | 7,583 | |||||||||||||||||||||||||||||||||||||||||
Total goodwill for the Company is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Goodwill at date of acquisition | $ | 6,412 | ||||||||||||||||||||||||||||||||||||||||
Buyout of Coursey Place joint venture interest | 619 | |||||||||||||||||||||||||||||||||||||||||
Total goodwill | $ | 7,031 | ||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | ' | |||||||||||||||||||||||||||||||||||||||||
Total goodwill for the Company is as follows: | ||||||||||||||||||||||||||||||||||||||||||
Goodwill at date of acquisition | $ | 6,412 | ||||||||||||||||||||||||||||||||||||||||
Buyout of Coursey Place joint venture interest | 619 | |||||||||||||||||||||||||||||||||||||||||
Total goodwill | $ | 7,031 | ||||||||||||||||||||||||||||||||||||||||
MEASUREMENT_PERIOD_ADJUSTMENTS1
MEASUREMENT PERIOD ADJUSTMENTS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Accounting Changes and Error Corrections [Abstract] | ' | |||||||||||
Schedule of Measurement Period Adjustments | ' | |||||||||||
Deerfield | ||||||||||||
22-Jan-13 | Measurement | 22-Jan-13 | ||||||||||
(As initially reported) | period adjustment | (As adjusted) | ||||||||||
Land | $ | 1,028 | $ | 632 | $ | 1,660 | ||||||
Building | 8,592 | 2,518 | 11,110 | |||||||||
Personal property | — | 500 | 500 | |||||||||
Intangible assets | 680 | (257 | ) | 423 | ||||||||
Identifiable net assets | 10,300 | 3,393 | 13,693 | |||||||||
Gain on foreclosure | — | (3,393 | ) | — | ||||||||
Total net identifiable net assets | $ | 10,300 | $ | — | $ | 13,693 | ||||||
DISPOSITION_OF_PROPERTIES_Tabl
DISPOSITION OF PROPERTIES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Results of Discontinued Operations | ' | ||||||||
The results of discontinued operations are summarized for the three months ended March 31, 2014 and 2013 as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Rental income | $ | 3 | $ | 806 | |||||
Total revenues | 3 | 806 | |||||||
Expenses: | |||||||||
Rental operating | 1 | 646 | |||||||
General and administrative | — | 58 | |||||||
Loss on property impairment | — | 539 | |||||||
Depreciation and amortization expense | — | 141 | |||||||
Total expenses | 1 | 1,384 | |||||||
Income (loss) from discontinued operations | 2 | (578 | ) | ||||||
Weighted average common shares outstanding | 67,364 | 22,612 | |||||||
Basic and diluted loss per common share | $ | — | $ | (0.03 | ) | ||||
IDENTIFIED_INTANGIBLE_ASSETS_N1
IDENTIFIED INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||
Rental and Antennae Leases | ' | |||
Expected amortization for the rental and antennae leases for the next five years ending March 31, and thereafter, is as follows (in thousands): | ||||
2015 | $ | 6,761 | ||
2016 | 19 | |||
2017 | 17 | |||
2018 | 16 | |||
2019 | 16 | |||
Thereafter | 122 | |||
$ | 6,951 | |||
MORTGAGE_NOTE_PAYABLE_Tables
MORTGAGE NOTE PAYABLE (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Summary of Mortgage Notes Payable | ' | |||||||||||||||||||||
The following is a summary of the mortgage notes payable (in thousands, except percentages): | ||||||||||||||||||||||
Balance Outstanding at | Maturity | Annual | Average | Interest Expense | ||||||||||||||||||
March 31, | Date | Interest Rate | Monthly Debt | Three Months Ended | ||||||||||||||||||
Service | March 31, | |||||||||||||||||||||
Collateral | 2014 | 2014 | 2013 | |||||||||||||||||||
Vista Apartment Homes | $ | 8,794 | 5/1/17 | 2.76 | % | (1) | $ | 38 | $ | 61 | $ | 64 | ||||||||||
Cannery Lofts | 8,190 | 9/1/20 | 3.45 | % | (1) | 24 | 71 | N/A | ||||||||||||||
Deerfield | 10,530 | 11/1/20 | 4.66 | % | (2) | 41 | 123 | N/A | ||||||||||||||
Village Square | 19,362 | 11/1/23 | 5.02 | % | (1) | 81 | 124 | N/A | ||||||||||||||
Ivy at Clear Creek | 8,586 | 11/1/23 | 5.02 | % | (1) | 36 | 55 | N/A | ||||||||||||||
Centennial | 23,161 | 1/1/19 | 3.6 | % | (2) | 101 | 209 | N/A | ||||||||||||||
Pinnacle | 18,702 | 1/1/19 | 3.6 | % | (2) | 82 | 169 | N/A | ||||||||||||||
Terrace at River Oaks | 14,259 | 1/1/22 | 4.32 | % | (2) | 69 | 154 | N/A | ||||||||||||||
Champion Farms | 17,403 | 7/1/16 | 6.14 | % | (2) | 85 | 173 | N/A | ||||||||||||||
Fieldstone | 15,979 | 7/1/14 | 6.05 | % | (2) | 137 | 167 | N/A | ||||||||||||||
Pinehurst | 4,428 | 1/1/16 | 5.58 | % | (2) | 39 | 41 | N/A | ||||||||||||||
Pheasant Run | 6,759 | 10/1/17 | 5.95 | % | (2) | 31 | 64 | N/A | ||||||||||||||
Retreat of Shawnee | 14,333 | 2/1/18 | 5.58 | % | (2) | 99 | 129 | N/A | ||||||||||||||
Hilltop Village | 4,505 | 12/1/17 | 5.81 | % | (2) | 33 | 42 | N/A | ||||||||||||||
Conifer Crossing | 29,380 | 9/1/15 | 5.96 | % | (2) | 203 | 286 | N/A | ||||||||||||||
Coursey Place | 29,313 | 8/1/21 | 5.07 | % | (2) | 154 | 247 | N/A | ||||||||||||||
Pines of York | 15,658 | 12/1/21 | 4.46 | % | (2) | 80 | 121 | N/A | ||||||||||||||
$ | 249,342 | |||||||||||||||||||||
-1 | Variable rate based on one-month LIBOR of 0.15175% (as of March 31, 2014). | |||||||||||||||||||||
-2 | Fixed rate. | |||||||||||||||||||||
Annual Principal Payments on the Mortgage Note Payable | ' | |||||||||||||||||||||
Annual principal payments on the mortgage notes payable for each of the next five years ending March 31, and thereafter, are as follows (in thousands): | ||||||||||||||||||||||
2015 | $ | 21,300 | ||||||||||||||||||||
2016 | 5,871 | |||||||||||||||||||||
2017 | 50,273 | |||||||||||||||||||||
2018 | 26,886 | |||||||||||||||||||||
2019 | 30,026 | |||||||||||||||||||||
Thereafter | $ | 114,986 | ||||||||||||||||||||
$ | 249,342 | |||||||||||||||||||||
DEFERRED_FINANCING_COSTS_Table
DEFERRED FINANCING COSTS (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
DEFERRED FINANCING COSTS [Abstract] | ' | |||
Estimated Amortization of Deferred Financing Costs | ' | |||
Estimated amortization of the existing deferred financing costs for the next five years ending March 31, and thereafter, are as follows (in thousands): | ||||
2015 | $ | 943 | ||
2016 | 930 | |||
2017 | 924 | |||
2018 | 560 | |||
2019 | 276 | |||
Thereafter | 973 | |||
$ | 4,606 | |||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Equity [Abstract] | ' | |||
Components of Accumulated Other Comprehensive Income | ' | |||
The following table presents the changes in each component of accumulated other comprehensive income for the three months ended March 31, 2014 (dollars in thousands): | ||||
Net unrealized gain (loss) | ||||
on derivatives | ||||
1-Jan-14 | $ | 20 | ||
Unrealized loss on designated derivative | (58 | ) | ||
31-Mar-14 | $ | (38 | ) |
CERTAIN_RELATIONSHIPS_AND_RELA1
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Fees Earned From / Expenses Paid to Related Parties | ' | |||||||
The fees earned / expenses paid and the amounts payable to such related parties are summarized in the following tables (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Receivables from related parties: | ||||||||
RAI and affiliates | $ | 54 | $ | 530 | ||||
Payables to related parties: | ||||||||
Advisor: | ||||||||
Acquisition fees | $ | 952 | $ | — | ||||
Expense reimbursements | 228 | 775 | ||||||
Resource Real Estate Opportunity Manager, LLC: | ||||||||
Property management fees | 269 | 266 | ||||||
Operating expense reimbursements | 362 | 500 | ||||||
Resource Securities, Inc. | ||||||||
Selling commissions and dealer manager fees | — | 174 | ||||||
Other | 15 | 3 | ||||||
$ | 1,826 | $ | 1,718 | |||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Fees earned / expenses paid to related parties: | ||||||||
Advisor: | ||||||||
Acquisition fees | $ | 2,723 | $ | 555 | ||||
Asset management fees | $ | 1,250 | $ | 406 | ||||
Organization and offering costs | $ | — | $ | 103 | ||||
Overhead allocation | $ | 351 | $ | 101 | ||||
Resource Real Estate Opportunity Manager LLC: | ||||||||
Property management fees | $ | 696 | $ | 413 | ||||
Construction management fees | $ | 229 | $ | — | ||||
Debt servicing fees | $ | — | $ | 1 | ||||
Resource Securities, Inc.: | ||||||||
Selling commissions and dealer manager fees | $ | — | $ | 5,100 | ||||
Other: | ||||||||
Ledgewood | $ | 30 | $ | 31 | ||||
Graphic Images | $ | 33 | $ | 133 | ||||
EQUITY_Tables
EQUITY (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Schedule of Shares Issued | ' | ||||||||||||||||||
As of March 31, 2014, the Company had issued an aggregate of 67,554,712 shares, net of redemptions, 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 | 62,485,461 | 622,000 | |||||||||||||||||
Shares issued through stock distributions | 2,132,266 | — | |||||||||||||||||
Shares issued through distribution reinvestment plan | 1,657,758 | 16,000 | |||||||||||||||||
Shares issued in conjunction with the Advisor's initial investment, | 15,500 | 200 | |||||||||||||||||
net of 4,500 share conversion | |||||||||||||||||||
Total | 67,554,712 | $ | 650,700 | ||||||||||||||||
Schedule of Redemption of Securities | ' | ||||||||||||||||||
During the three months ended March 31, 2014, the Company redeemed its shares as follows: | |||||||||||||||||||
Period | Total Number | Average Price | Cumulative Number of | Approximate Dollar | |||||||||||||||
of Shares | Paid per Share | Shares Purchased | Value of Shares | ||||||||||||||||
Redeemed (1) | as Part of a | Available That May | |||||||||||||||||
Publicly Announced | Yet Be Redeemed | ||||||||||||||||||
Plan or Program (2) | Under the Program | ||||||||||||||||||
Jan-14 | — | — | — | -2 | |||||||||||||||
Feb-14 | — | — | — | -2 | |||||||||||||||
Mar-14 | 46,237 | $8.66 | 46,237 | -2 | |||||||||||||||
-1 | All redemptions of equity securities by the Company in the three months ended March 31, 2014 were made pursuant to the Company's share redemption program. | ||||||||||||||||||
-2 | The Company currently limits the dollar value and number of shares that may be redeemed under the program as described below. | ||||||||||||||||||
Schedule of Distributions | ' | ||||||||||||||||||
For the three months ended March 31, 2014, the Company paid aggregate distributions of $6.7 million, including $2.0 million of distributions paid in cash and $4.7 million of distributions reinvested in shares of common stock through the Company's distribution reinvestment plan, as follows (in thousands): | |||||||||||||||||||
Record Date | Per Common | Distribution Date | Distribution | Aggregate | Total | ||||||||||||||
Share | invested in | Cash | Aggregate | ||||||||||||||||
shares of | Distribution | Distribution | |||||||||||||||||
Common Stock | |||||||||||||||||||
December 31, 2013 | $ | 0.033 | January 2, 2014 | $ | 1,566 | $ | 656 | $ | 2,222 | ||||||||||
January 31, 2014 | 0.033 | February 3, 2014 | 1,575 | 663 | 2,238 | ||||||||||||||
February 28, 2014 | 0.033 | March 2, 2014 | 1,571 | 670 | 2,241 | ||||||||||||||
$ | 4,712 | $ | 1,989 | $ | 6,701 | ||||||||||||||
FAIR_VALUE_MEASURES_AND_DISCLO1
FAIR VALUE MEASURES AND DISCLOSURES (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
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 facilities were as follows (in thousands): | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Loans held for investment, net | $ | 1,746 | $ | 1,746 | $ | 1,724 | $ | 1,724 | ||||||||
Mortgage notes payable | $ | (249,342 | ) | $ | (248,393 | ) | $ | (111,811 | ) | $ | (110,413 | ) | ||||
Revolving credit facilities | $ | (37,041 | ) | $ | (37,041 | ) | $ | (37,041 | ) | $ | (37,041 | ) |
DERIVATIVES_AND_HEDGING_ACTIVI1
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Outstanding Interest Rate Derivatives | ' | ||||||||||||||||||||||||
As of March 31, 2014, the Company had the following outstanding interest rate derivatives,which mature on November 1, 2018, that were designated as cash flow hedges of interest rate risk (dollars in thousands): | |||||||||||||||||||||||||
Interest Rate Derivative | Number of Instruments | Notional | |||||||||||||||||||||||
Amount | |||||||||||||||||||||||||
Interest Rate Caps | 2 | $ | 27,948 | ||||||||||||||||||||||
Fair Value and Balance Sheet Location of Derivatives | ' | ||||||||||||||||||||||||
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | 31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||
Interest rate cap | $ | 232 | Interest rate cap | $ | 290 | — | $ | — | — | $ | — | ||||||||||||||
NATURE_OF_BUSINESS_AND_OPERATI1
NATURE OF BUSINESS AND OPERATIONS (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 42 Months Ended | 3 Months Ended | 12 Months Ended | 42 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Jun. 16, 2010 | Jun. 30, 2010 | Jun. 09, 2010 | Sep. 15, 2009 | Jun. 17, 2009 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 09, 2010 | Sep. 15, 2009 | Jun. 09, 2010 | Jun. 16, 2010 | Sep. 15, 2009 | Jun. 16, 2010 | Mar. 31, 2014 | |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Convertible Stock [Member] | Convertible Stock [Member] | Convertible Stock [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | ||||
Advisor [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | Private Offering [Member] | Private Offering [Member] | Private Offering [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Advisor [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | Advisor [Member] | Private Offering [Member] | Ongoing Public Offering [Member] | Ongoing Public Offering [Member] | |||||||||||||
Advisor [Member] | ||||||||||||||||||||||
Securities Financing Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity organized date | 3-Jun-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum shares under offering (in shares) | 1,000,000,000 | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 75,000,000 | ' |
Sale price of share (in dollars per share) | ' | ' | ' | $9.50 | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' |
Proceeds from issuance of stock under private offering | ' | ' | ' | ' | ' | $12,800,000 | ' | $200,000 | ' | $645,800,000 | ' | $756,504 | $1,300,000 | $315,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance from private placement | ' | ' | ' | ' | ' | 11,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of syndication costs | -3,000 | 6,408,000 | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | 1,283,727 | ' | 20,000 | ' | ' | 64,926,311 | 84,056 | 141,500 | 35,000 | 276,056 | 5,000 | ' | 4,063 | ' | ' | ' | ' |
Stock acquired by outside investors (in shares) | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 937 | ' | ' | ' | ' | ' | ' |
Common shares converted by advisor (in shares) | ' | ' | ' | ' | 4,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible shares issued (in shares) | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized, distribution reinvestment plan (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' |
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 |
Shares purchased by Advisor (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 276,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased by Advisor | 675,000 | ' | 668,000 | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued through distribution reinvestment plan (in shares) | 496,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued through distribution reinvestment plan | $4,712,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
distributions | Property | ||
Asset Impairment Charges [Abstract] | ' | ' | ' |
Loss on property impairment | $0 | $539,000 | ' |
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 - fiscal 2014 | 40,300,000 | ' | ' |
Future minimum rental payments to be received from noncancelable operating leases - fiscal 2015 | 2,000,000 | ' | ' |
Tenant Receivable [Abstract] | ' | ' | ' |
Allowance for uncollectable receivables | 19,000 | ' | 86,000 |
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] | ' | ' | ' |
Antidilutive securities not included in the diluted earnings per share calculations | 50,000 | 50,000,000 | ' |
Number of stock distributions | 12 | ' | ' |
Dividend Distribution One [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 7 | ' | ' |
Dividend Distribution Two [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 2 | ' | ' |
Dividend Distribution Three [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 1 | ' | ' |
Dividend Distribution Four [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 2 | ' | ' |
Common Stock [Member] | Dividend Distribution One [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 7 | ' | ' |
Common stock dividend rate | 1.50% | ' | ' |
Common Stock [Member] | Dividend Distribution Two [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 2 | ' | ' |
Common stock dividend rate | 0.75% | ' | ' |
Common Stock [Member] | Dividend Distribution Three [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 1 | ' | ' |
Common stock dividend rate | 0.59% | ' | ' |
Common Stock [Member] | Dividend Distribution Four [Member] | ' | ' | ' |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of stock distributions | 2 | ' | ' |
Common stock dividend rate | 0.50% | ' | ' |
Advisor [Member] | ' | ' | ' |
Deferred Offering Costs [Abstract] | ' | ' | ' |
Advanced deferred offering cost | 4,600,000 | ' | ' |
Reimbursement of offering cost | $4,600,000 | ' | $4,200,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Principles of Consolidation) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Unit | |
RRE 107th Avenue Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | '107th Avenue |
Number of Units | 5 |
Property Location | 'Omaha, NE |
RRE Westhollow Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Arcadia |
Number of Units | 404 |
Property Location | 'Houston, TX |
RRE Crestwood Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Town Park (a) |
Property Location | 'Birmingham, AL |
RRE Iroquois, LP [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Vista Apartment Homes |
Number of Units | 133 |
Property Location | 'Philadelphia, PA |
RRE Campus Club Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Campus Club |
Number of Units | 64 |
Property Location | 'Tampa, FL |
RRE Bristol Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'The Redford |
Number of Units | 856 |
Property Location | 'Houston, TX |
RRE Cannery Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Cannery Lofts |
Number of Units | 156 |
Property Location | 'Dayton, OH |
RRE Williamsburg Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Williamsburg |
Number of Units | 976 |
Property Location | 'Cincinnati, OH |
WPL Holdings LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Williamsburg Parking Lot |
Property Location | 'Cincinnati, OH |
RRE Skyview Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Cityside Crossing |
Number of Units | 360 |
Property Location | 'Houston, TX |
RRE Park Forest Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Mosaic |
Number of Units | 216 |
Property 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 |
Property Location | 'Memphis, TN |
RRE Flagstone Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'The Alcove |
Number of Units | 292 |
Property Location | 'Houston, TX |
RRE Deerfield Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Deerfield |
Number of Units | 166 |
Property 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 |
Property 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 |
Property Location | 'Houston, TX |
RRE Autumn Wood Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Retreat at Rocky Ridge |
Number of Units | 196 |
Property Location | 'Hoover, AL |
RRE Village Square Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Trailpoint at the Woodlands |
Number of Units | 271 |
Property Location | 'Houston, TX |
RRE Nob Hill Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Nob Hill |
Number of Units | 192 |
Property Location | 'Winter Park, FL |
RRE Brentdale Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Brentdale |
Number of Units | 412 |
Property Location | 'Plano, TX |
RRE Jefferson Point Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Jefferson Point |
Number of Units | 208 |
Property Location | 'Newport News, VA |
RRE Centennial Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Centennial |
Number of Units | 276 |
Property Location | 'Littleton, CO |
RRE Pinnacle Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Pinnacle |
Number of Units | 224 |
Property Location | 'Westminster, CO |
RRE Jasmine Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Jasmine at Holcomb Bridge |
Number of Units | 437 |
Property Location | 'Alpharetta, GA |
RRE River Oaks Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Terrace at River Oaks |
Number of Units | 314 |
Property Location | 'San Antonio, TX |
RRE Nicollet Ridge Holdings, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Nicollet Ridge |
Number of Units | 339 |
Property Location | 'Burnsville, MN |
PRIP 3700, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Champion Farms |
Number of Units | 264 |
Property Location | 'Louisville, KY |
PRIP 10637, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Fieldstone |
Number of Units | 266 |
Property Location | 'Woodlawn, OH |
PRIP 500, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Pinehurst |
Number of Units | 146 |
Property Location | 'Kansas City, MO |
PRIP 1102, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Pheasant Run |
Number of Units | 160 |
Property Location | 'Lee's Summit, MO |
PRIP 11128, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Retreat at Shawnee |
Number of Units | 342 |
Property Location | 'Shawnee, KS |
PRIP 6700, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Hilltop Village |
Number of Units | 124 |
Property Location | 'Kansas City, MO |
PRIP 3383, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Conifer Place |
Number of Units | 420 |
Property Location | 'Norcross, GA |
PRIP Stone Ridge, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Stone Ridge |
Number of Units | 191 |
Property Location | 'Columbia, SC |
PRIP Coursey, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Evergreen at Coursey Place |
Number of Units | 352 |
Property Location | 'Baton Rouge, LA |
PRIP Pines, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Pines of York |
Number of Units | 248 |
Property Location | 'Yorktown, VA |
PRIP Addison Place, LLC [Member] | ' |
Subsidiary or Equity Method Investee [Line Items] | ' |
Apartment Complex | 'Addison Place |
Number of Units | 403 |
Property Location | 'Alpharetta, GA |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Rental Property Useful Lives) (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Building [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful lives | '27 years 6 months |
Building Improvements [Member] | Minimum [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful lives | '3 years |
Building Improvements [Member] | Maximum [Member] | ' |
Real Estate Properties [Line Items] | ' |
Estimated useful lives | '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 $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Non-cash activities: | ' | ' | ' |
Property and intangibles received on foreclosure of loans held for investment | $0 | ' | $10,150 |
Financing provided for disposed property | 0 | 0 | 800 |
Stock issued from distribution reinvestment plan | 4,712 | ' | 9,984 |
Stock distributions issued | 3,333 | ' | 8,221 |
Cash distributions on common stock declared but not yet paid | 2,248 | ' | 2,222 |
Deferred financing costs and escrow deposits funded directly by mortgage note and revolving credit facility | 0 | ' | 2,880 |
Debt assumed | 138,327 | ' | 0 |
Cash paid during the period for: | ' | ' | ' |
Interest | $1,778 | ' | $537 |
RENTAL_PROPERTIES_NET_Details
RENTAL PROPERTIES, NET (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Investments in rental properties [Abstract] | ' | ' | ' |
Land | $125,072,000 | ' | $62,859,000 |
Building and improvements | 529,467,000 | ' | 325,412,000 |
Furniture, fixtures and equipment | 16,218,000 | ' | 17,051,000 |
Construction in progress | 1,679,000 | ' | 827,000 |
Rental properties, gross | 672,436,000 | ' | 406,149,000 |
Less: accumulated depreciation | -22,130,000 | ' | -15,776,000 |
Rental properties, net | 650,306,000 | ' | 390,373,000 |
Depreciation expense | $5,900,000 | $1,800,000 | ' |
LOANS_HELD_FOR_INVESTMENT_NET_1
LOANS HELD FOR INVESTMENT, NET (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Aug. 02, 2011 | Mar. 15, 2011 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Apr. 18, 2013 | Mar. 31, 2014 | Dec. 31, 2011 | Apr. 06, 2014 | |
Loan | Loan | Loan | Peterson Note [Member] | Peterson Note [Member] | Subsequent Event [Member] | ||||
Peterson Note [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of nonperforming promissory notes | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Number of performing promissory notes | ' | 2 | ' | ' | ' | ' | ' | ' | ' |
Purchase price of promissory note | ' | $3,100,000 | ' | ' | ' | ' | ' | ' | ' |
Number of nonperforming promissory notes into forbearance agreement | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Performing notes - accretable amount | ' | ' | 1,900,000 | ' | 1,900,000 | ' | ' | ' | ' |
Purchase discount, net | ' | ' | 287,000 | ' | 292,000 | ' | ' | ' | ' |
Unpaid loan balance | ' | ' | ' | ' | ' | ' | ' | 238,000 | ' |
Sale of interest in Peterson | ' | ' | ' | ' | ' | ' | ' | ' | 195,000 |
Loan made to purchaser | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' |
Number of loans not impaired | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Loss on property impairment | ' | ' | $0 | $539,000 | ' | ' | $24,000 | ' | ' |
LOANS_HELD_FOR_INVESTMENT_NET_2
LOANS HELD FOR INVESTMENT, NET (Loans Held for Investments) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | $1,746 | $1,724 |
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 | 1,551 | 1,529 |
Percentage of loan to total loans (in hundredths) | 89.00% | 89.00% |
30-89 Days [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | 0 | 195 |
Percentage of loan to total loans (in hundredths) | 0.00% | 11.00% |
90 - 180 Days [Member] | ' | ' |
Loans Held for Investment [Line Items] | ' | ' |
Total loans held for investment, net | 195 | 0 |
Percentage of loan to total loans (in hundredths) | 11.00% | 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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | $1,746 | $1,724 |
Performing [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | 1,551 | 1,529 |
Nonperforming [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total Loans | $195 | $195 |
LOANS_HELD_FOR_INVESTMENT_NET_4
LOANS HELD FOR INVESTMENT, NET (Terms of Loans Held for Investment) (Details) (USD $) | Apr. 18, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Peterson Note [Member] | Trail Ridge Note [Member] | Heatherwood Note [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Face value | $800 | $242 | $1,058 | $800 |
Interest rate | ' | 7.39% | 7.50% | 4.00% |
Average monthly payment | ' | $3 | $8 | $11 |
ACQUISITIONS_GOODWILL_AND_FORE2
ACQUISITIONS, GOODWILL AND FORECLOSURES (Real Estate Investments) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jan. 28, 2014 | Mar. 28, 2014 | Dec. 20, 2013 | Dec. 16, 2013 | Oct. 25, 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 | Mar. 21, 2012 | Jan. 22, 2013 | Dec. 21, 2012 | Dec. 19, 2012 | Dec. 07, 2012 | Dec. 06, 2012 | Jun. 20, 2012 | 13-May-11 | Mar. 27, 2012 | Oct. 21, 2012 | Jun. 17, 2011 | Sep. 03, 2010 | Aug. 18, 2010 | Jan. 28, 2014 |
Property | Addison Place | Nicollet Ridge | Terrace at River Oaks | Jasmine at Holcomb Bridge | Centennial | Pinnacle | Jefferson Point | Brentdale | Nob Hill | Trailpoint at the Woodlands | Retreat at Rocky Ridge | Ivy at Clear Creek | One Hundred Chevy Chase Apartments | Deerfield | Deerfield | The Alcove | Cityside Crossing | The Reserve at Mount Moriah | Mosaic | Williamsburg Apartments | Cannery Lofts | The Redford | Campus Club Apartments | Vista Apartment Homes | Arcadia at Westheimer | 107th Avenue | Multifamily Community [Member] | ||
Resource Real Estate Opportunity OP, LP [Member] | |||||||||||||||||||||||||||||
Paladin acquisition | |||||||||||||||||||||||||||||
Property | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 |
Number of properties | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase Price | ' | ' | $70,500 | $33,149 | $22,500 | $25,050 | $30,600 | $24,250 | $18,250 | $32,200 | $10,100 | $27,200 | $8,500 | $11,750 | $6,850 | $10,300 | ' | $5,500 | $14,425 | $2,275 | $2,050 | $41,250 | $7,100 | $11,400 | $8,300 | $12,000 | $7,800 | $225 | ' |
Rental property: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | ' | 44,292 | 18,137 | 4,134 | 3,830 | 7,582 | 5,702 | 2,923 | 3,951 | 5,785 | 2,512 | 3,785 | 1,616 | 1,877 | 1,323 | 1,660 | 1,660 | 1,202 | 1,949 | 775 | 1,000 | 3,223 | 160 | 4,073 | 1,650 | 1,163 | 943 | 25 | ' |
Building and Improvements | ' | 149,155 | 51,843 | 26,992 | 17,510 | 16,023 | 23,609 | 20,301 | 13,048 | 24,418 | 6,459 | 22,014 | 6,418 | 9,175 | 4,981 | 11,110 | ' | 3,865 | 11,676 | 1,124 | 2,609 | 35,111 | 7,913 | 5,235 | 6,250 | 9,913 | 6,599 | 196 | ' |
Furniture, Fixture and Equipment | ' | ' | 0 | 1,016 | 491 | 587 | 198 | 97 | 584 | 798 | 523 | 697 | 30 | 28 | 41 | 500 | ' | 20 | 37 | 39 | 30 | 1,007 | 200 | 262 | 200 | 0 | 0 | 0 | ' |
Intangible Assets | ' | 5,861 | 521 | 1,008 | 669 | 859 | 1,090 | 928 | 667 | 1,199 | 606 | 704 | 436 | 670 | 505 | 423 | 423 | 413 | 763 | 337 | 123 | 1,909 | 609 | 1,558 | 435 | 535 | 258 | 4 | ' |
Other Assets | ' | ' | 55 | 36 | 48 | 37 | 24 | 20 | 23 | 52 | 50 | 40 | 2 | 8 | 7 | 1 | ' | 54 | 49 | 16 | 14 | 49 | 35 | 272 | 0 | 530 | 0 | 0 | ' |
Other Liabilities | ' | ' | -392 | -107 | -63 | -161 | -190 | -147 | -59 | -317 | -61 | -170 | -89 | -127 | -101 | -4 | ' | -13 | -68 | -90 | -14 | -274 | 0 | 0 | 0 | -141 | 0 | 0 | ' |
Fair Valued Assigned | ' | $50,744 | $70,164 | $33,079 | $22,485 | $24,927 | $30,433 | $24,122 | $18,214 | $31,935 | $10,089 | $27,070 | $8,413 | $11,631 | $6,756 | $13,690 | ' | $5,541 | $14,406 | $2,201 | $3,762 | $41,025 | $8,917 | $11,400 | $8,535 | $12,000 | $7,800 | $225 | ' |
Valuation period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_GOODWILL_AND_FORE3
ACQUISITIONS, GOODWILL AND FORECLOSURES (Acquisitions) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||
Mar. 31, 2014 | Jan. 28, 2014 | Dec. 31, 2013 | Mar. 06, 2014 | Mar. 31, 2014 | Jan. 28, 2014 | Jan. 28, 2013 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Mar. 31, 2014 | Mar. 30, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | |
Property | FPA/PRIP Governor Park, LLC [Member] | FPA/PRIP Governor Park, LLC [Member] | Merger with Paladin Realty Income Properties, L.P. [Member] | Merger with Paladin Realty Income Properties, L.P. [Member] | Merger with Paladin Realty Income Properties, L.P. [Member] | Merger with Paladin Realty Income Properties, L.P. [Member] | Champion Farms [Member] | Fieldstone [Member] | Pinehurst [Member] | Pheasant Run [Member] | Retreat at Shawnee [Member] | Hilltop Village [Member] | Conifer Place [Member] | Stone Ridge [Member] | Evergreen at Coursey Place [Member] | Evergreen at Coursey Place [Member] | Evergreen at Coursey Place [Member] | Pines of York [Member] | |||
Office Building [Member] | Resource Real Estate Opportunity OP, LP [Member] | Resource Real Estate Opportunity OP, LP [Member] | Multifamily Community [Member] | Office Building [Member] | |||||||||||||||||
Property | Unit | sqft | Resource Real Estate Opportunity OP, LP [Member] | Resource Real Estate Opportunity OP, LP [Member] | |||||||||||||||||
Joint_Venture | Property | Property | |||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | 12 | ' | ' | ' | ' | ' | ' | 10 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation period | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of joint venture interests acquired | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of rentable units | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net rentable square feet | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition of promissory note | ' | ' | ' | ' | ' | $3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to acquire joint venture interests, real estate property, and promissory note | ' | ' | ' | ' | ' | 51,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of membership interest, percent sold | ' | ' | ' | 47.65% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of membership interest | ' | ' | ' | 456,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions of joint venture interest, net of interest sold | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the net assets acquired: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership % | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48.30% | ' | ' | ' |
Land | ' | 44,292,000 | ' | ' | ' | ' | ' | ' | ' | 3,146,000 | 3,089,000 | 1,627,000 | 1,486,000 | 2,363,000 | 715,000 | 10,798,000 | 2,825,000 | ' | ' | 9,470,000 | 8,773,000 |
Building and Improvements | ' | 149,155,000 | ' | ' | ' | ' | ' | ' | ' | 21,838,000 | 18,980,000 | 7,193,000 | 9,321,000 | 16,126,000 | 3,241,000 | 24,176,000 | 3,840,000 | ' | ' | 33,209,000 | 11,231,000 |
Intangible Assets | ' | 5,861,000 | ' | ' | ' | ' | ' | ' | ' | 646,000 | 854,000 | 153,000 | 306,000 | 659,000 | 264,000 | 1,139,000 | 335,000 | ' | ' | 705,000 | 800,000 |
Fair Value of Property | ' | 199,308,000 | ' | ' | ' | ' | ' | ' | ' | 25,630,000 | 22,923,000 | 8,973,000 | 11,113,000 | 19,148,000 | 4,220,000 | 36,113,000 | 7,000,000 | ' | ' | 43,384,000 | 20,804,000 |
Other Net Assets (Liabilities) | ' | -137,739,000 | ' | ' | ' | ' | ' | ' | ' | -17,419,000 | -16,201,000 | -4,510,000 | -6,711,000 | -14,543,000 | -4,729,000 | -29,596,000 | 506,000 | ' | ' | -29,063,000 | -15,473,000 |
Total Company Equity | ' | 44,332,000 | ' | ' | ' | ' | ' | ' | ' | 5,748,000 | 5,579,000 | 4,351,000 | 4,292,000 | 4,490,000 | -249,000 | 2,772,000 | 5,142,000 | ' | ' | 7,409,000 | 4,798,000 |
Non-controlling interest | ' | -17,237,000 | ' | ' | ' | ' | ' | ' | ' | -2,463,000 | -1,143,000 | -112,000 | -110,000 | -115,000 | 260,000 | -3,745,000 | -2,364,000 | 6,912,000 | ' | -6,912,000 | -533,000 |
Fair Valued Assigned | ' | 50,744,000 | ' | ' | ' | ' | ' | ' | ' | 6,114,000 | 5,907,000 | 4,351,000 | 4,292,000 | 4,490,000 | -189,000 | 6,758,000 | 6,194,000 | 7,583,000 | ' | 8,029,000 | 4,798,000 |
Total purchase price | 51,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire interest in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,500,000 | ' | ' | ' |
Ownership percentage in joint venture | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | 83.00% | 97.50% | 97.50% | 97.50% | 49.00% | 42.50% | 68.50% | 100.00% | 51.70% | 51.70% | 90.00% |
Prepaid insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000 | ' | ' | ' |
Goodwill | 7,031,000 | 6,412,000 | 0 | ' | ' | ' | ' | ' | ' | 366,000 | 328,000 | 0 | 0 | 0 | 60,000 | 3,986,000 | 1,052,000 | 619,000 | ' | 620,000 | 0 |
Transaction expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $45,000 | ' | ' | ' |
Number of properties | 35 | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_GOODWILL_AND_FORE4
ACQUISITIONS, GOODWILL AND FORECLOSURES (Coursey Place) (Details) (USD $) | Mar. 31, 2014 | Jan. 28, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jan. 28, 2014 |
In Thousands, unless otherwise specified | Evergreen at Coursey Place [Member] | Evergreen at Coursey Place [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Purchase price excluding closing costs | ' | ' | ' | $7,500 | ' |
Noncontrolling interest assumed | ' | -17,237 | ' | 6,912 | -6,912 |
Prepaid insurance | ' | ' | ' | 7 | ' |
Goodwill | 7,031 | 6,412 | 0 | 619 | 620 |
Transaction expenses | ' | ' | ' | 45 | ' |
Fair Valued Assigned | ' | $50,744 | ' | $7,583 | $8,029 |
ACQUISITIONS_GOODWILL_AND_FORE5
ACQUISITIONS, GOODWILL AND FORECLOSURES (Goodwill) (Details) (USD $) | Mar. 31, 2014 | Jan. 28, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $7,031 | $6,412 | $0 |
Evergreen at Coursey Place [Member] | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Goodwill | $619 | $620 | ' |
MEASUREMENT_PERIOD_ADJUSTMENTS2
MEASUREMENT PERIOD ADJUSTMENTS (Details) (USD $) | 3 Months Ended | 0 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 28, 2014 | Jan. 22, 2013 | Mar. 21, 2012 | Jan. 22, 2013 | Jan. 22, 2013 |
Deerfield | Deerfield | Deerfield | Deerfield | ||||
Scenario, Previously Reported [Member] | Scenario, Adjustment [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchase price | $58,493 | $0 | ' | $10,300 | ' | ' | ' |
Gain on foreclosure | ' | ' | ' | ' | ' | ' | 3,393 |
Land | ' | ' | 44,292 | 1,660 | 1,660 | 1,028 | 632 |
Building | ' | ' | ' | 11,110 | ' | 8,592 | 2,518 |
Personal property | ' | ' | ' | 500 | ' | 0 | 500 |
Intangible assets | ' | ' | 5,861 | 423 | 423 | 680 | -257 |
Gain on foreclosure | ' | ' | ' | ' | ' | ' | -3,393 |
Identifiable net assets | ' | ' | $199,308 | $13,693 | ' | $10,300 | $3,393 |
DISPOSITION_OF_PROPERTIES_Deta
DISPOSITION OF PROPERTIES (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 18, 2013 | Apr. 30, 2013 |
Property | Property | Heatherwood Apartments Inkster Michigan [Member] | Town Park Apartments [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Discontinued operations, number of properties | 2 | 2 | ' | ' |
Sale price | ' | ' | $1,000 | $10,300 |
Gain (loss) on dispositions | ' | ' | 31 | 3,200 |
Sale price, portion financed by buyer | ' | ' | 800 | ' |
Sale price, portion paid in cash | ' | ' | $200 | ' |
DISPOSITION_OF_PROPERTIES_Resu
DISPOSITION OF PROPERTIES (Results of Discontinued Operations) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Rental income | $3 | $806 |
Total revenues | 3 | 806 |
Expenses: | ' | ' |
Rental operating | 1 | 646 |
General and administrative | 0 | 58 |
Loss on property impairment | 0 | 539 |
Depreciation and amortization expense | 0 | 141 |
Total expenses | 1 | 1,384 |
Income (loss) from discontinued operations | $2 | ($578) |
Weighted average common shares outstanding (in shares) | 67,364 | 22,612 |
Discontinued operations (in dollars per share) | $0 | ($0.03) |
IDENTIFIED_INTANGIBLE_ASSETS_N2
IDENTIFIED INTANGIBLE ASSETS, NET (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Identified intangible assets, net | $6,951,000 | ' | $5,182,000 |
Weighted average remaining life (in months) | '10 months | '0 years 11 months 18 days | ' |
Amortization expense | 4,600,000 | ' | ' |
Acquired in-place leases [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Identified intangible assets, net | 23,000,000 | ' | 16,700,000 |
Accumulated amortization | 16,100,000 | ' | 11,500,000 |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $6,761 | ' |
2015 | 19 | ' |
2016 | 17 | ' |
2017 | 16 | ' |
2018 | 16 | ' |
Thereafter | 122 | ' |
Total | $6,951 | $5,182 |
MORTGAGE_NOTE_PAYABLE_Summary_
MORTGAGE NOTE PAYABLE (Summary of Mortgage Notes Payable) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Vista Apartment Homes [Member] | Vista Apartment Homes [Member] | Cannery Lofts [Member] | Deerfield [Member] | Village Square [Member] | Ivy at Clear Creek [Member] | Centennial [Member] | Pinnacle [Member] | Terrace at River Oaks [Member] | Champion Farms [Member] | Fieldstone [Member] | Pinehurst [Member] | Pheasant Run [Member] | Retreat at Shawnee [Member] | Hilltop Village [Member] | Conifer Crossing [Member] | Coursey Place [Member] | Pines of York [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Participating Mortgage Loans [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage notes payable | $249,342 | $111,811 | $8,794 | ' | $8,190 | $10,530 | $19,362 | $8,586 | $23,161 | $18,702 | $14,259 | $17,403 | $15,979 | $4,428 | $6,759 | $14,333 | $4,505 | $29,380 | $29,313 | $15,658 | ' |
Mortgage loan, maturity date | ' | ' | 1-May-17 | ' | 1-Sep-20 | 1-Nov-20 | 1-Nov-23 | 1-Nov-23 | 1-Jan-19 | 1-Jan-19 | 1-Jan-22 | 1-Jul-16 | 1-Jul-14 | 1-Jan-16 | 1-Oct-17 | 1-Feb-18 | 1-Dec-17 | 1-Sep-15 | 1-Aug-21 | 1-Dec-21 | ' |
Mortgage note, annual interest rate (in hundredths) | ' | ' | 2.76% | ' | 3.45% | 4.66% | 5.02% | 5.02% | 3.60% | 3.60% | 4.32% | 6.14% | 6.05% | 5.58% | 5.95% | 5.58% | 5.81% | 5.96% | 5.07% | 4.46% | 0.15% |
Mortgage loan, average monthly debt service | ' | ' | 38 | ' | 24 | 41 | 81 | 36 | 101 | 82 | 69 | 85 | 137 | 39 | 31 | 99 | 33 | 203 | 154 | 80 | ' |
Interest Expense | ' | ' | $61 | $64 | $71 | $123 | $124 | $55 | $209 | $169 | $154 | $173 | $167 | $41 | $64 | $129 | $42 | $286 | $247 | $121 | ' |
Mortgage loan, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR |
MORTGAGE_NOTE_PAYABLE_Annual_P
MORTGAGE NOTE PAYABLE (Annual Principal Payments on the Mortgage Note Payable) (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $21,300 |
2016 | 5,871 |
2017 | 50,273 |
2018 | 26,886 |
2019 | 30,026 |
Thereafter | 114,986 |
Total | $249,342 |
REVOLVING_CREDIT_FACILITY_Deta
REVOLVING CREDIT FACILITY (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | 23-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | 22-May-13 | Dec. 20, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 27, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Bank of America [Member] | Bank of America [Member] | Bank of America [Member] | Bank of America [Member] | PNC Bank [Member] | PNC Bank [Member] | PNC Bank [Member] | U.S. Bank [Member] | U.S. Bank [Member] | U.S. Bank [Member] | Repayment Guarantee [Member] | |||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | 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 | $15,000,000 | ' | ' | $29,670,000 | ' | ' | ' |
Repayment guarantee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 |
Line of credit facility collateral amount | ' | ' | ' | 102,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, current borrowing capacity | ' | ' | ' | 45,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of deferred financing costs | 1,192,000 | 0 | 413,305 | ' | ' | ' | 75,000 | ' | ' | 222,000 | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | 12,500,000 | 12,500,000 | ' | 23,000,000 | 23,000,000 | ' |
Line of credit facility, expiration date | ' | ' | ' | 23-May-17 | ' | ' | ' | 20-Dec-18 | ' | ' | 27-Dec-17 | ' | ' |
Line of credit facility extended expiration date | ' | ' | ' | 23-May-19 | ' | ' | ' | ' | ' | ' | 27-Dec-19 | ' | ' |
Interest expense | 2,739,000 | 125,000 | ' | 8,000 | ' | ' | ' | 68,000 | ' | ' | 7,000 | ' | ' |
Minimum tangible net worth to maintain, percent of outstanding principal amount of credit facility | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth to maintain | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum unencumbered liquid assets to maintain, market value | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum unencumbered liquid assets to maintain, market value, percent of outstanding principal amount of credit facility | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan, description of variable rate basis | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' |
Basis spread on variable rate (in hundredths) | ' | ' | ' | 3.00% | ' | ' | ' | 2.00% | ' | ' | 1.95% | ' | ' |
Interest rate at end of period | ' | ' | ' | 3.15% | ' | ' | ' | 2.15% | ' | ' | 2.10% | ' | ' |
Extension fee percentage | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' |
DEFERRED_FINANCING_COSTS_Detai
DEFERRED FINANCING COSTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEFERRED FINANCING COSTS [Abstract] | ' | ' |
Accumulated amortization, deferred finance costs | $550 | $419 |
2015 | 943 | ' |
2016 | 930 | ' |
2017 | 924 | ' |
2018 | 560 | ' |
2019 | 276 | ' |
Thereafter | 973 | ' |
Deferred financing costs, net | $4,606 | $3,602 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Net unrealized gain on derivatives [Member] | ||
Accumulated Other Comprehensive Income [Rollforward] | ' | ' | ' |
Beginning balance | ($38) | $20 | $20 |
Unrealized loss on designated derivative | ' | ' | -58 |
Ending balance | ($38) | $20 | ($38) |
CERTAIN_RELATIONSHIPS_AND_RELA2
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Relationship with RAI) (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Related Party Transactions [Abstract] | ' |
Insurance pool, amount of losses covered | $3 |
Catastrophic insurance, amount of losses covered | $85 |
CERTAIN_RELATIONSHIPS_AND_RELA3
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Relationship with the Advisor) (Narrative) (Details) (Advisor [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Advisor [Member] | ' |
Related Party Transaction [Line Items] | ' |
Agreement term (in years) | '1 year |
Percentage acquisition fee paid to advisor (in hundredths) | 2.00% |
Multiple for calculating monthly asset management fee, percentage (one-twelfth) | 8.33% |
Percentage annual asset management fee (in hundredths) | 1.00% |
Debt disposition fee, as a percentage of the contract sales price (in hundredths) | 2.75% |
Debt financing fee | 0.50% |
Maximum reimbursement limit on gross offering proceeds (in hundredths) | 2.50% |
CERTAIN_RELATIONSHIPS_AND_RELA4
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate Opportunity Manager) (Narrative) (Details) (Resource Real Estate Opportunity Manager LLC [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Resource Real Estate Opportunity Manager LLC [Member] | ' |
Related Party Transaction [Line Items] | ' |
Construction management fee percentage | 5.00% |
Debt servicing fee percentage | 2.75% |
CERTAIN_RELATIONSHIPS_AND_RELA5
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Relationship with Resource Securities) (Narrative) (Details) (Resource Securities, Inc. [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
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_RELA6
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Schedule of Related Party Transactions) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' |
Receivables from related parties | $54 | ' | $530 |
Payables to related parties | 1,826 | ' | 1,718 |
Resource America, Inc. and Affiliates [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Receivables from related parties | 54 | ' | 530 |
Advisor [Member] | Acquisition Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 952 | ' | 0 |
Fees earned / expenses paid to related parties | 2,723 | 555 | ' |
Advisor [Member] | Asset Management Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 1,250 | 406 | ' |
Advisor [Member] | Organization and Offering Cost [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 0 | 103 | ' |
Advisor [Member] | Overhead Allocation [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 351 | 101 | ' |
Advisor [Member] | Expense Reimbursements [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 228 | ' | 775 |
Resource Real Estate Opportunity Manager LLC [Member] | Expense Reimbursements [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 362 | ' | 500 |
Resource Real Estate Opportunity Manager LLC [Member] | Property Management Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 269 | ' | 266 |
Fees earned / expenses paid to related parties | 696 | 413 | ' |
Resource Real Estate Opportunity Manager LLC [Member] | Construction Management Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 229 | 0 | ' |
Resource Real Estate Opportunity Manager LLC [Member] | Debt Servicing Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 0 | 1 | ' |
Resource Securities, Inc. [Member] | Selling Commission and Dealer Management Fees [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 0 | ' | 174 |
Fees earned / expenses paid to related parties | 0 | 5,100 | ' |
Other Related Party [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payables to related parties | 15 | ' | 3 |
Ledgewood P.C. [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | 30 | 31 | ' |
Graphic Images LLC [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Fees earned / expenses paid to related parties | $33 | $133 | ' |
EQUITY_Schedule_of_Shares_Issu
EQUITY (Schedule of Shares Issued) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | Private Offering [Member] | Public Placement [Member] | Stock Dividends [Member] | Distribution Reinvestment Plan [Member] | Advisor [Member] | ||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Shares Issued | 67,554,712 | 66,725,241 | 1,263,727 | 62,485,461 | 2,132,266 | 1,657,758 | 15,500 |
Shares converted | ' | ' | ' | ' | ' | ' | 4,500 |
Gross Proceeds | $650,700 | ' | $12,500 | $622,000 | $0 | ' | $200 |
Gross Proceeds, distribution reinvestment plan | ' | ' | ' | ' | ' | $16,000 | ' |
EQUITY_Preferred_and_Common_St
EQUITY (Preferred and Common Stock) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Securities Financing Transaction [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 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Shares Issued | 67,554,712 | 66,725,241 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Private Offering [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | ' |
Private Offering [Member] | Common Stock [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Shares Issued | 67,554,712 | ' |
Private Offering [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Shares Issued | 1,263,727 | ' |
Ongoing Public Offering [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Shares Issued | 62,485,461 | ' |
EQUITY_Convertible_Stock_Detai
EQUITY (Convertible Stock) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | ' | ' |
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 | ' |
Convertible stock held by outside investors (in shares) | 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% | ' |
EQUITY_Redemption_of_Securitie
EQUITY (Redemption of Securities) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | ||||
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | |||
Total Number of Shares Redeemed | ' | 46,237 | [1],[2] | 0 | [1] | 0 | [1],[2] |
Average Price Paid per Share | ' | $8.66 | [2] | $0 | $0 | [2] | |
Cumulative Number of Shares Purchased as Part of a Publicly Announced Plan or Program | ' | 46,237 | [2] | 0 | [2] | 0 | [2] |
Percentage of weighted-average number of outstanding shares during the 12-month period immediately prior to the effective date of the redemption that company will not redeem in excess of (in excess of 5%) | 5.00% | ' | ' | ' | |||
Cash available for redemption, percentage of previous fiscal year operating cash flow | 1.00% | ' | ' | ' | |||
Number of days' notice required to suspend, terminate or amend share redemption program | '30 days | ' | ' | ' | |||
[1] | All redemptions of equity securities by the Company in the three months ended March 31, 2014 were made pursuant to the Company's share redemption program. | ||||||
[2] | The Company currently limits the dollar value and number of shares that may be redeemed under the program as described below. |
EQUITY_Distribution_Reinvestme
EQUITY (Distribution Reinvestment Plan and Distributions) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2014 | Jan. 02, 2014 | Feb. 03, 2014 | Mar. 03, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 02, 2014 | |
distributions | Record Date December 2013 [Member] | Record Date January 2014 [Member] | Record Date February 2014 [Member] | Dividend Distribution One [Member] | Dividend Distribution Two [Member] | Dividend Distribution Three [Member] | Dividend Distribution Four [Member] | Subsequent Event [Member] | |
Distribution | Distribution | Distribution | Distribution | Record Date March 2014 [Member] | |||||
Securities Financing Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Common Share | ' | $0.03 | $0.03 | $0.03 | ' | ' | ' | ' | $0.33 |
Distribution invested in shares of Common Stock | $4,712,000 | $1,566,000 | $1,575,000 | $1,571,000 | ' | ' | ' | ' | ' |
Aggregate Cash Distribution | 1,989,000 | 656,000 | 663,000 | 670,000 | ' | ' | ' | ' | 2,200,000 |
Total Aggregate Distribution | 6,701,000 | 2,222,000 | 2,238,000 | 2,241,000 | ' | ' | ' | ' | ' |
Number of stock distributions | 12 | ' | ' | ' | 7 | 2 | 1 | 2 | ' |
Common stock distributions (in shares) | ' | ' | ' | ' | 0.015 | 0.0075 | 0.00585 | 0.005 | ' |
Increase in accumulated deficit from stock distributions | $21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASURES_AND_DISCLO2
FAIR VALUE MEASURES AND DISCLOSURES (Carrying and Fair Values of the Company's Loans Held for Investment, Net, Mortgage Note Payable and Revolving Credit Facility) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 03, 2014 |
In Thousands, unless otherwise specified | Carrying Amount [Member] | Carrying Amount [Member] | Fair Value [Member] | Fair Value [Member] | Peterson Note [Member] |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' |
Loans held for investment, net | $1,746 | $1,724 | $1,746 | $1,724 | ' |
Mortgage notes payable | -249,342 | -111,811 | -248,393 | -110,413 | ' |
Revolving credit facilities | -37,041 | -37,041 | -37,041 | -37,041 | ' |
Offer for sale of loans held for investment | ' | ' | ' | ' | $24 |
DERIVATIVES_AND_HEDGING_ACTIVI2
DERIVATIVES AND HEDGING ACTIVITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | derivative | |
Derivatives, Fair Value [Line Items] | ' | ' |
Number of Instruments | 2 | ' |
Notional Amount | $27,948 | ' |
Liability Derivatives, Fair Value | 0 | 0 |
Interest Rate Cap [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives, Fair Value | $232 | $290 |
OPERATING_EXPENSE_LIMITATION_W
OPERATING EXPENSE LIMITATION WAIVER (Details) | Mar. 31, 2014 |
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_FORECLOSURE_Details
GAIN ON FORECLOSURE (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Jan. 22, 2013 | |
Foreclosure [Member] | |||
Gain On Foreclosure [Line Items] | ' | ' | ' |
Fair value of the property exceeding carrying value | ' | ' | $3,400,000 |
Adjustment to security deposits | ' | ' | 81,000 |
Gain on foreclosure | $0 | $3,460,000 | $3,500,000 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | 5-May-14 | Apr. 06, 2014 |
Subsequent Event [Member] | Subsequent Event [Member] | |||
Multifamily Community - Plano, Texas [Member] | Peterson Note [Member] | |||
Unit | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Sale of interest in Peterson | ' | ' | ' | $195 |
Number of units | ' | ' | 142 | ' |
Purchase price | $58,493 | $0 | $15,000 | ' |