Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 04, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Steadfast Income REIT, Inc. | |
Entity Central Index Key | 1,468,010 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 76,203,010 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Real Estate: | ||
Land | $ 174,102,422 | $ 174,102,422 |
Building and improvements | 1,511,224,371 | 1,487,961,762 |
Other intangible assets | 2,644,263 | 2,644,263 |
Construction-in-progress | 0 | 2,192,635 |
Total real estate, cost | 1,687,971,056 | 1,666,901,082 |
Less accumulated depreciation and amortization | (214,964,389) | (163,445,987) |
Total real estate, net | 1,473,006,667 | 1,503,455,095 |
Cash and cash equivalents | 74,793,620 | 32,076,582 |
Restricted cash | 25,035,324 | 27,700,811 |
Short-term investments | 30,000,000 | 0 |
Rents and other receivables | 2,823,301 | 2,742,011 |
Other assets, net | 4,410,351 | 4,328,851 |
Total assets | 1,610,069,263 | 1,570,303,350 |
Liabilities: | ||
Accounts payable and accrued liabilities | 43,471,677 | 40,752,458 |
Notes payable: | ||
Mortgage notes payable, net | 987,012,365 | 1,115,752,899 |
Credit facilities, net | 232,490,899 | 0 |
Total notes payable, net | 1,219,503,264 | 1,115,752,899 |
Distributions payable | 4,487,297 | 4,668,261 |
Due to affiliates | 2,316,649 | 2,682,209 |
Total liabilities | 1,269,778,887 | 1,163,855,827 |
Commitments and contingencies | ||
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 673,917,322 | 677,624,840 |
Cumulative distributions and net losses | (334,390,882) | (271,944,072) |
Total stockholders’ equity | 340,290,376 | 406,447,523 |
Total liabilities and stockholders’ equity | 1,610,069,263 | 1,570,303,350 |
Common Stock [Member] | ||
Notes payable: | ||
Distributions payable | 4,487,297 | 4,668,261 |
Stockholders’ Equity: | ||
Common stock | 763,926 | 766,745 |
Convertible Stock [Member] | ||
Stockholders’ Equity: | ||
Common stock | $ 10 | $ 10 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Stockholders’ Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Stock [Member] | ||
Stockholders’ Equity: | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 999,999,000 | 999,999,000 |
Stock, shares issued (in shares) | 76,479,044 | 76,674,502 |
Stock, shares outstanding (in shares) | 76,479,044 | 76,674,502 |
Convertible Stock [Member] | ||
Stockholders’ Equity: | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, shares issued (in shares) | 1,000 | 1,000 |
Stock, shares outstanding (in shares) | 1,000 | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Rental income | $ 48,606,833 | $ 47,233,877 | $ 143,710,190 | $ 139,155,382 |
Tenant reimbursements and other | 7,765,092 | 5,932,544 | 19,591,268 | 17,306,141 |
Total revenues | 56,371,925 | 53,166,421 | 163,301,458 | 156,461,523 |
Expenses: | ||||
Operating, maintenance and management | 15,607,923 | 14,681,517 | 43,220,781 | 40,275,265 |
Real estate taxes and insurance | 8,980,995 | 8,524,454 | 27,940,715 | 27,310,197 |
Fees to affiliates | 7,062,486 | 5,660,066 | 19,947,606 | 16,441,909 |
Depreciation and amortization | 17,559,941 | 16,496,386 | 51,723,985 | 48,832,712 |
Interest expense | 10,520,206 | 10,019,513 | 30,707,522 | 29,527,109 |
Loss on debt extinguishment | 3,743,325 | 0 | 4,932,369 | 0 |
General and administrative expenses | 2,596,236 | 1,388,213 | 6,185,026 | 4,405,988 |
Acquisition costs | 0 | 0 | 0 | 7,145 |
Total expenses | 66,071,112 | 56,770,149 | 184,658,004 | 166,800,325 |
Net loss | $ (9,699,187) | $ (3,603,728) | $ (21,356,546) | $ (10,338,802) |
Loss per common share — basic and diluted (in dollars per share) | $ (0.13) | $ (0.05) | $ (0.28) | $ (0.14) |
Weighted average number of common shares outstanding — basic and diluted (in shares) | 76,164,515 | 76,370,121 | 76,258,795 | 76,371,860 |
Distributions declared per common share (in dollars per share) | $ 0.18 | $ 0.181 | $ 0.536492 | $ 0.537 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Stock [Member]Common Stock [Member] | Stock [Member]Convertible Stock [Member] | Additional Paid-In Capital [Member] | Cumulative Distributions & Net Losses [Member] |
Beginning balance at Dec. 31, 2014 | $ 477,063,230 | $ 768,585 | $ 10 | $ 680,138,132 | $ (203,843,497) | |
Beginning balance (in shares) at Dec. 31, 2014 | 76,858,483 | 1,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock | 78 | $ 140 | (62) | |||
Issuance of common stock (in shares) | 14,008 | |||||
Transfers to redeemable common stock | (1,000,000) | (1,000,000) | ||||
Repurchase of common stock | (2,000,000) | $ (1,980) | (1,998,020) | |||
Repurchase of common stock (in shares) | (197,989) | |||||
Distributions declared | (55,076,217) | (55,076,217) | ||||
Amortization of stock-based compensation | 184,350 | 184,350 | ||||
Change in value of restricted common stock to Advisor | 300,440 | 300,440 | ||||
Net loss | (13,024,358) | (13,024,358) | ||||
Ending balance at Dec. 31, 2015 | 406,447,523 | $ 766,745 | $ 10 | 677,624,840 | (271,944,072) | |
Ending balance (in shares) at Dec. 31, 2015 | 76,674,502 | 1,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock | 0 | $ 75 | (75) | |||
Issuance of common stock (in shares) | 7,500 | |||||
Transfers to redeemable common stock | (1,000,000) | (1,000,000) | ||||
Repurchase of common stock | (3,000,000) | $ (2,894) | (2,997,106) | |||
Repurchase of common stock (in shares) | (289,397) | |||||
Distributions declared | (41,090,264) | $ (41,090,264) | (41,090,264) | |||
Amortization of stock-based compensation | 61,254 | 61,254 | ||||
Change in value of restricted common stock to Advisor | 228,409 | 228,409 | ||||
Net loss | (21,356,546) | (21,356,546) | ||||
Ending balance at Sep. 30, 2016 | $ 340,290,376 | $ 763,926 | $ 10 | $ 673,917,322 | $ (334,390,882) | |
Ending balance (in shares) at Sep. 30, 2016 | 76,392,605 | 1,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (21,356,546) | $ (10,338,802) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 51,723,985 | 48,832,712 |
Amortization of deferred financing costs | 1,237,263 | 1,183,398 |
Amortization of stock-based compensation | 61,254 | 171,486 |
Change in value of restricted common stock to Advisor | 228,409 | 27,431 |
Amortization of loan premiums and discounts, net | (934,747) | (926,094) |
Change in fair value of interest rate cap agreements | 466,841 | 1,908,550 |
Loss on debt extinguishment | 4,932,369 | 0 |
Insurance claim recoveries | (897,985) | 0 |
Loss on disposal of building and improvements | 848,546 | 0 |
Changes in operating assets and liabilities: | ||
Restricted cash for operating activities | 1,788,259 | (1,071,569) |
Rents and other receivables | (81,290) | (1,270,093) |
Other assets | (402,524) | 360,694 |
Accounts payable and accrued liabilities | 1,097,178 | (1,082,251) |
Due to affiliates | (407,334) | (1,093,400) |
Net cash provided by operating activities | 38,303,678 | 36,702,062 |
Cash Flows from Investing Activities: | ||
Short-term investments | (30,000,000) | 0 |
Additions to real estate investments | (21,460,288) | (23,363,985) |
Restricted cash for investing activities | 877,228 | 299,697 |
Purchase of interest rate cap agreements | (259,000) | (296,250) |
Proceeds from insurance claims | 897,985 | 0 |
Net cash used in investing activities | (49,944,075) | (23,360,538) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of mortgage notes payable | 427,867,278 | 83,246,333 |
Principal payments on mortgage notes payable | (555,671,555) | (54,136,297) |
Borrowings from credit facility | 251,124,750 | 6,000,000 |
Principal payments on credit facility | (16,000,000) | 0 |
Payment of deferred financing costs | (5,489,473) | (595,601) |
Payment of debt extinguishment costs | (3,202,337) | 0 |
Distributions to common stockholders | (41,271,228) | (41,360,816) |
Repurchase of common stock | (3,000,000) | 0 |
Net cash provided by (used in) financing activities | 54,357,435 | (6,846,381) |
Net increase in cash and cash equivalents | 42,717,038 | 6,495,143 |
Cash and cash equivalents, beginning of period | 32,076,582 | 29,529,312 |
Cash and cash equivalents, end of period | 74,793,620 | 36,024,455 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid, net of amounts capitalized of $80,166 and $134,943 for the nine months ended September 30, 2016 and 2015, respectively | 29,713,280 | 27,511,861 |
Supplemental Disclosure of Noncash Transactions: | ||
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | 0 | 78 |
Increase in redeemable common stock payable | 1,000,000 | 4,267,538 |
Increase in accounts payable and accrued liabilities from additions to real estate investments | 622,041 | 495,544 |
Decrease in due to affiliates from additions to real estate investments | $ 41,774 | $ 0 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||||
Capitalized interest | $ 13,799 | $ 34,268 | $ 80,166 | $ 134,943 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Steadfast Income REIT, Inc. (the “Company”) was formed on May 4, 2009, as a Maryland corporation that has elected to be treated as, and currently qualifies as, a real estate investment trust (“REIT”). On June 12, 2009, the Company was initially capitalized pursuant to the sale of 22,223 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $9.00 per share for an aggregate purchase price of $200,007 . On July 10, 2009, Steadfast Income Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on May 1, 2009, invested $1,000 in the Company in exchange for 1,000 shares of convertible stock (the “Convertible Stock”) as described in Note 6. Substantially all of the Company’s business is conducted through Steadfast Income REIT Operating Partnership, L.P., a Delaware limited partnership formed on July 6, 2009 (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As the Company accepted subscriptions for shares of its common stock in the Public Offering (as defined below), the Company transferred substantially all of the net offering proceeds to the Operating Partnership in exchange for limited partnership interests, and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Company and Advisor entered into an Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Partnership Agreement”) on September 28, 2009. As of September 30, 2016 , the Company owned 65 multifamily properties comprising a total of 16,709 apartment homes and an additional 25,973 square feet of rentable commercial space at three properties. Private Offering On October 13, 2009, the Company commenced a private offering of up to $94,000,000 in shares of the Company’s common stock at a purchase price of $9.40 per share (with discounts available for certain categories of purchasers) (the “Private Offering”). The Company offered its shares of common stock for sale in the Private Offering pursuant to a confidential private placement memorandum and only to persons that were “accredited investors,” as that term is defined under the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder. On July 9, 2010, the Company terminated the Private Offering and on July 19, 2010, the Company commenced its registered Public Offering described below. The Company sold 637,279 shares of common stock in the Private Offering for gross offering proceeds of $5,844,325 . Public Offering On July 23, 2009, the Company filed a registration statement on Form S-11 with the Securities and Exchange Commission (the “SEC”) to offer a maximum of 150,000,000 shares of common stock for sale to the public at an initial price of $10.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also registered up to 15,789,474 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $9.50 per share. The SEC declared the Company’s registration statement effective on July 9, 2010. The Company commenced the Public Offering on July 19, 2010. On July 12, 2012, the Company’s board of directors determined an estimated value per share of the Company’s common stock as of March 31, 2012 of $10.24 . As a result of the determination of the estimated value per share of the Company’s common stock as of March 31, 2012, effective September 10, 2012, the offering price of the Company’s common stock to the public in the Primary Offering increased from the previous price of $10.00 per share to $10.24 per share. Additionally, effective September 10, 2012, the price of shares of the Company’s common stock issued pursuant to the DRP increased from a price of $9.50 per share to a price of $9.73 per share, or 95% of the new Primary Offering price of $10.24 per share. Effective September 10, 2012, the Company’s board of directors increased the amount of distributions paid on each share of the Company’s common stock from $0.001917 per share per day to $0.001964 per share per day, which, if paid each day over a 365-day period, is equivalent to a 7.0% annualized distribution rate based on the $10.24 per share offering price. The Company terminated its Public Offering on December 20, 2013. Following termination of the Public Offering, the Company continued to offer shares of common stock pursuant to the DRP until the Company’s board of directors suspended the DRP effective for distributions earned beginning on December 1, 2014. Through December 20, 2013, the Company sold 73,608,337 shares of common stock in the Public Offering for gross proceeds of $745,389,748 , including 1,588,289 shares of common stock issued pursuant to the DRP for gross offering proceeds of $15,397,232 . On March 10, 2015, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $10.35 as of December 31, 2014. On February 25, 2016, the Company’s board of directors again determined an estimated value per share of the Company’s common stock of $11.44 as of December 31, 2015. The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement by and among the Company, the Operating Partnership and the Advisor (as amended, the “Advisory Agreement”), which is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on November 15, 2017. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties and real estate-related assets, sources and presents investment opportunities to the Company’s board of directors and provides investment management services on the Company’s behalf. Steadfast Capital Markets Group, LLC (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager for the Public Offering. The Dealer Manager was responsible for marketing the Company’s shares of common stock being offered pursuant to the Public Offering. The Advisor, along with the Dealer Manager, provides marketing, investor relations and other administrative services on the Company’s behalf. The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation, rather than as a partnership. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring real properties, the Operating Partnership may pay all of the Company’s administrative costs and expenses, and such expenses will be treated as expenses of the Operating Partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015 , other than the adoption of Accounting Standard Updates (“ASU”) 2015-03, as amended by ASU 2015-15 and ASU 2016-15, as further described below. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 18, 2016. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications have not changed the results of operations of prior periods. During the nine months ended September 30, 2016 , the Company adopted new accounting guidance to simplify the presentation of debt issuance costs. As a result, net deferred financing costs of $6,697,472 related to mortgage notes payable as of December 31, 2015 , were reclassified from other assets, net to mortgage notes payable, net on the consolidated balance sheets. Short-term Investments Short-term investments consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. As of September 30, 2016 , short-term investments consisted of $30,000,000 held in a certificate of deposit and are included in short-term investments on the consolidated balance sheets. No short-term investments were held as of December 31, 2015 . The short-term investment is classified as held-to-maturity and was recorded at the amortized cost on the accompanying consolidated balance sheets. Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements - These derivatives did not qualify as fair value hedges and are recorded at fair value. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets, net in the accompanying consolidated balance sheets. The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: September 30, 2016 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 90,302 $ — December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 298,143 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and mortgage notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The fair value of the notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of September 30, 2016 and December 31, 2015 , the fair value of the notes payable was $1,226,421,667 and $1,118,126,231 , respectively, compared to the carrying value of $1,219,503,264 and $1,115,752,899 , respectively. The Company has determined that its notes payable are classified as Level 3 within the fair value hierarchy. Distribution Policy The Company has elected to be treated as, and currently qualifies as, a REIT. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions were based on daily record dates and calculated at a rate of $0.001964 per share per day during the year ended December 31, 2015 and the three months ended March 31, 2016. Distributions were based on daily record dates and calculated at a rate of $0.001958 per share per day during the six months ended September 30, 2016 . Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and nine months ended September 30, 2016 , the Company declared distributions of $0.180 and $0.536 per common share, respectively. During the three and nine months ended September 30, 2015 , the Company declared distributions of $0.181 and $0.537 per common share, respectively. Per Share Data Basic earnings (loss) per share attributable for all periods presented are computed by dividing net income (loss) attributable to controlling interest by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share are computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assumes each share was issued and outstanding each day during the period. The Company’s unvested shares of restricted common stock contain non-forfeitable rights to dividends and are considered to be participating securities in accordance with GAAP and, therefore, are included in the computation of earnings (loss) per share under the two-class method. Under the two-class method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The unvested shares of restricted common stock are not allocated losses as the awards do not have a contractual obligation to share in the losses of the Company. The two-class method is an earnings (loss) allocation formula that determines earnings (loss) per share for each class of common shares and participating securities according to dividends declared and participation rights in undistributed earnings. Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. Recently Issued Accounting Standards Updates In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( Topic 606 ). The new guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance supersedes the revenue requirements in Revenue Recognition ( Topic 605 ) and most industry-specific guidance throughout the Industry Topics of the Codification. The new guidance does not apply to lease contracts within the scope of Leases ( Topic 840 ). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) , which delayed the effective date of the new guidance by one year, which will result in the new guidance being effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is evaluating the impact of adopting the new guidance on its financial statements, but does not expect the adoption to have a material impact on its financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , that requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern. Until now, the requirement to perform a going concern evaluation existed only in auditing standards. The new guidance requires management to evaluate relevant conditions, events and certain management plans that are known or reasonably knowable as of the evaluation date when determining whether substantial doubt about an entity’s ability to continue as a going concern exists. Management will be required to make this evaluation for both annual and interim reporting periods. The standard states substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. The guidance is effective for annual periods ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items , that eliminates the concept of the extraordinary items from GAAP. The objective of the new guidance is to simplify the income statement presentation requirements of GAAP by altogether removing the concept of extraordinary items from consideration. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. The Company did not experience a material impact from adopting this new guidance. In February 2015, the FASB issued ASU 2015-02, Consolidation , which makes changes to both the variable interest model and the voting model of consolidation. Under ASU 2015-02, companies will need to re-evaluate whether an entity meets the criteria to be considered a variable interest entity (“VIE”) or whether the consolidation of an entity should be assessed under the voting model. The new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. The new standard was effective for the Company beginning on January 1, 2016. The adoption of the new standard did not result in the consolidation of entities not previously consolidated or the deconsolidation of any entities previously consolidated. Upon adopting the new standard, the Operating Partnership became a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and continues to consolidate, the Operating Partnership determined to be a VIE. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , as amended in August 2015 by ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, that will require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The FASB will permit debt issuance costs related to line-of-credit arrangements to be deferred and presented as an asset and subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The recognition and measurement guidance for debt issuance costs will not be affected by the new guidance. The guidance requires retrospective application and is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. Upon adoption, the Company reclassified net debt issuance costs of $9,332,831 and $6,697,472 as of September 30, 2016 and December 31, 2015 , respectively, related to mortgage notes payable from other assets, net to mortgage notes payable, net on the consolidated balance sheets. In February 2016, the FASB issued ASU 2016-02, Leases , amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company is assessing whether the new standard will have a material effect on its financial position or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), that clarifies how certain cash receipts and cash payments should be classified on the statement of cash flows. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. Upon adoption, the Company reclassified payments for debt extinguishment costs of $3,202,337 from cash flows from operating activities to cash flows from financing activities as of September 30, 2016 . There was no impact as of December 31, 2015 . |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Real Estate | Real Estate As of September 30, 2016 , the Company owned 65 multifamily properties, encompassing in the aggregate 16,709 apartment homes and 25,973 square feet of rentable commercial space. The total purchase price of the Company’s real estate portfolio, including development and construction costs for apartment homes constructed by the Company, was $1,643,666,920 , exclusive of closing costs. As of September 30, 2016 and December 31, 2015 , the Company’s portfolio was approximately 94.0% occupied and the average monthly rent was $1,027 and $999 , respectively. As of September 30, 2016 and December 31, 2015 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: September 30, 2016 Assets Land Building and Improvements Other Intangible Assets Construction-in-Progress Total Real Estate Investments in real estate $ 174,102,422 $ 1,511,224,371 $ 2,644,263 $ — $ 1,687,971,056 Less: Accumulated depreciation and amortization — (214,456,650 ) (507,739 ) — (214,964,389 ) Net investments in real estate and related lease intangibles $ 174,102,422 $ 1,296,767,721 $ 2,136,524 $ — $ 1,473,006,667 December 31, 2015 Assets Land Building and Improvements Other Intangible Assets Construction-in-Progress Total Real Estate Investments in real estate $ 174,102,422 $ 1,487,961,762 $ 2,644,263 $ 2,192,635 $ 1,666,901,082 Less: Accumulated depreciation and amortization — (163,053,124 ) (392,863 ) — (163,445,987 ) Net investments in real estate and related lease intangibles $ 174,102,422 $ 1,324,908,638 $ 2,251,400 $ 2,192,635 $ 1,503,455,095 Depreciation and amortization expenses were $17,559,941 and $51,723,985 for the three and nine months ended September 30, 2016 , and $16,496,386 and $48,832,712 for the three and nine months ended September 30, 2015 , respectively. Depreciation of the Company’s buildings and improvements were $17,521,649 and $51,609,109 for the three and nine months ended September 30, 2016 , and $16,458,094 and $48,502,050 for the three and nine months ended September 30, 2015 , respectively. No amortization of tenant origination and absorption costs were recorded for the three and nine months ended September 30, 2016 . Amortization of the Company’s tenant origination and absorption costs was $0 and $215,786 for the three and nine months ended September 30, 2015 . Tenant origination and absorption costs had a weighted-average amortization period as of the date of acquisition of less than one year. At December 31, 2015, all tenant origination and absorption costs were fully amortized and written off. Amortization of the Company’s other intangible assets was $38,292 and $114,876 for the three and nine months ended September 30, 2016 , and $38,292 and $114,876 for the three and nine months ended September 30, 2015 , respectively. The future amortization of the Company’s acquired other intangible assets as of September 30, 2016 and thereafter is as follows: October 1 through December 31, 2016 $ 38,292 2017 153,168 2018 153,168 2019 153,168 2020 153,168 Thereafter 1,485,560 $ 2,136,524 Operating Leases As of September 30, 2016 , the Company’s real estate portfolio comprised 16,709 apartment homes and was 96.5% leased by a diverse group of residents. For each of the three and nine months ended September 30, 2016 and 2015 , the Company’s real estate portfolio earned approximately 99% of its rental income from residential tenants and approximately 1% of its rental income from commercial office tenants. The residential tenant lease terms consist of lease durations equal to 12 months or less. The commercial office tenant leases consist of remaining lease durations varying from 2.67 to 3.08 years. Some residential and commercial leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit and/or a letter of credit for commercial tenants. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets and totaled $5,077,677 and $4,672,961 as of September 30, 2016 and December 31, 2015 , respectively. The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial office tenants as of September 30, 2016 and thereafter is as follows: October 1 through December 31, 2016 $ 46,614 2017 187,120 2018 189,136 2019 108,760 $ 531,630 As of September 30, 2016 and December 31, 2015 , no tenant represented over 10% of the Company’s annualized base rent and there were no significant industry concentrations with respect to its commercial leases. |
Other Assets, Net
Other Assets, Net | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets, Net | Other Assets, Net As of September 30, 2016 and December 31, 2015 , other assets, net of accumulated amortization, consisted of: September 30, December 31, Deferred financing costs of revolving credit facility $ — $ 660,585 Less: accumulated amortization — (547,402 ) — 113,183 Prepaid expenses 3,078,372 2,648,238 Interest rate cap agreements (Note 11) 90,302 298,143 Deposits 1,241,677 1,269,287 Other assets, net $ 4,410,351 $ 4,328,851 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Notes Payable The following is a summary of mortgage notes payable, net secured by real property as of September 30, 2016 and December 31, 2015 : September 30, 2016 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 37 10/1/2017 - 10/1/2056 3.19 % 5.94 % 4.07 % $ 473,453,405 Mortgage notes payable - variable (1) 21 8/31/2017 - 1/1/2026 1-Mo LIBOR + 1.65% 1-Mo LIBOR + 2.65% 2.81 % 517,740,682 Total mortgage notes payable, gross 58 3.41 % 991,194,087 Premium, net (2) 2,517,258 Deferred financing costs, net (3) (6,698,980 ) Total mortgage notes payable, net $ 987,012,365 December 31, 2015 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 37 10/1/2017 - 1/1/2053 3.31 % 5.94 % 4.32 % $ 477,139,001 Mortgage notes payable - variable (1) 30 5/16/2017 - 1/1/2026 1-Mo LIBOR + 1.62% 1-Mo LIBOR + 2.75% 2.77 % 641,859,365 Total mortgage notes payable, gross 67 3.44 % 1,118,998,366 Premium/discount, net (2) 3,452,005 Deferred financing costs, net (3) (6,697,472 ) Total mortgage notes payable, net $ 1,115,752,899 _____________________________ (1) See Note 11 for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The following table summarizes the debt premiums and discounts as of September 30, 2016 , including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations: Unamortized Portion of Net Debt Premium as of September 30, 2016 Amortization of Net Debt Premium During the Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ 2,517,258 $ 317,351 $ 308,698 $ 934,747 $ 926,094 (3) The following table summarizes the deferred financing costs, net related to mortgage notes payable as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Deferred financing costs $ 10,104,244 $ 10,140,097 Less: accumulated amortization (3,405,264 ) (3,442,625 ) Deferred financing costs, net $ 6,698,980 $ 6,697,472 Refinancing Transactions On June 29 and June 30, 2016 , 14 wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their respective lenders for an aggregate principal amount of $283,313,677 and entered into new loan agreements (each a “Loan Agreement”) with, as applicable, PNC Bank, N.A. (“PNC Bank”) and Berkeley Point Capital LLC (“Berkeley” and, together with PNC Bank, the “Lenders”) for an aggregate principal amount of $358,002,000 (the “June Refinancing Transactions”). On July 29, 2016 , nine wholly-owned subsidiaries of the Company also entered into a credit agreement (the “Credit Agreement”) with PNC Bank in connection with the refinancing of certain additional mortgage loans as further detailed below. Further, on August 30, 2016 and September 29, 2016 , three wholly-owned subsidiaries of the Company terminated the existing mortgage loans with an aggregate principal amount of $61,575,025 and entered into new mortgage notes for an aggregate principal amount of $63,620,600 (collectively, the “Third Quarter Refinancing Transactions” and together with the June Refinancing Transactions, the “Refinancing Transactions”). In the June Refinancing Transactions, each Loan Agreement was made pursuant to the Freddie Mac Capital Markets Execution Program (the “CME”), as evidenced by a multifamily note. Pursuant to the CME, the applicable Lender originates the mortgage loan and then transfers the loan to the Federal Home Loan Mortgage Association. Each Loan Agreement provides for a term loan with a maturity date of July 1, 2023 , unless the maturity date is accelerated in accordance with its terms. Each loan accrues interest at one-month LIBOR plus 2.31% . The entire outstanding principal balance and any accrued and unpaid interest on each of the Loans are due on the maturity date. Interest and principal payments on the loans are payable monthly in arrears on specified dates as set forth in each Loan Agreement. Monthly payments are due and payable on the first day of each month, commencing August 1, 2016 . Revolving Credit Facility The Company entered into a revolving credit facility with PNC Bank to borrow up to $20,000,000 . On July 18, 2014 , the Company and PNC Bank amended the revolving credit facility to, among other things, increase the potential borrowing limit from $20,000,000 to $35,000,000 . The amended and restated credit facility consisted of a Tranche A and a Tranche B, and provided certain security for borrowings under the credit facility. The maximum amount that could be borrowed under Tranche A and Tranche B were $20,000,000 and $15,000,000 , respectively. For each advance under the amended and restated credit facility, the Company had the option to select the interest rate from the following options: (1) Base Rate Option (as defined in the amended and restated credit facility) plus (i) with respect to Tranche A, 0.75% and (ii) with respect to Tranche B, 2.0% ; or (2) LIBOR Option, which was a rate per annum fixed for the LIBOR Interest Period (as defined in the amended and restated credit facility) equal to the sum of LIBOR plus (i) with respect to Tranche A, 1.6% and (ii) with respect to Tranche B, 3.0% . No amounts were outstanding under the credit facility as of September 30, 2016 or December 31, 2015 . The amended and restated credit facility had a maturity date of July 17, 2016 , subject to extension. On June 30, 2016 , the Company repaid all outstanding amounts due and terminated the amended and restated credit facility. Credit Facility On July 29, 2016, nine wholly-owned subsidiaries of the Company entered into the Credit Agreement and a multifamily note with PNC Bank (the Credit Agreement, Loan and Security Agreements, Mortgages and Guaranty, collectively referred to herein as the “Loan Documents”) that provide for a new credit facility in an amount not to exceed $350,000,000 to refinance certain of the Company’s existing mortgage loans. The credit facility has a maturity date of August 1, 2021 , subject to extension, as further described in the Credit Agreement. Advances made under the credit facility are secured by the properties set out in the schedule below (the “Collateral Pool Property”), pursuant to a mortgage deed of trust with the nine wholly-owned subsidiaries of the Company in favor of PNC Bank. The credit facility accrues interest at the one-month LIBOR plus (1) the servicing spread of 0.05% and (2) the net spread, based on the debt service coverage ratio, of between 1.73% and 1.93% , as further described in the Credit Agreement. The entire outstanding principal balance and any accrued and unpaid interest on the credit facility are due on the maturity date. Interest only payments on the credit facility are payable monthly in arrears and are due and payable on the first day of each month, commencing September 1, 2016. The Company’s nine wholly-owned subsidiaries may voluntarily prepay all or a portion of the amounts advanced under the Loan Documents. Notwithstanding the foregoing, in the event a Collateral Pool Property is released or the Credit Agreement is terminated, a termination fee is due and payable by the Company’s nine wholly-owned subsidiaries. In certain instances of a breach of the Credit Agreement, the Company guarantees to PNC Bank the full and prompt payment and performance when due of all amounts for which the Company’s nine wholly-owned subsidiaries are personally liable under the Loan Documents, in addition to all costs and expenses incurred by PNC Bank in enforcing such guaranty. The Company paid loan origination fees to PNC Bank of $1,293,186 , and the Advisor earned a refinancing fee of $1,175,624 . As of September 30, 2016 , the advances obtained under the credit facility on July 29, 2016 are summarized in the following table: Collateralized Property (1) Amount of Advance Ashley Oaks Apartment Homes $ 24,867,500 Trails at Buda Ranch 21,025,000 Deer Valley Apartments 22,982,500 Carrington Park at Huffmeister 20,430,500 Carrington Place 27,535,500 Carrington at Champion Forest 25,121,250 Audubon Park Apartments 16,602,500 Oak Crossing 17,980,000 Meritage at Steiner Ranch 58,580,000 $ 235,124,750 Deferred financing costs, net on Credit Facility (2) (2,633,851 ) Credit Facility, net $ 232,490,899 ___________ (1) Each property is pledged as collateral for repayment of all amounts advanced under the credit facility. (2) Accumulated amortization related to deferred financing costs for the credit facility as of September 30, 2016 , was $288,296 . Maturity and Interest The following is a summary of the Company’s aggregate maturities as of September 30, 2016 : Remainder of 2016 Maturities During the Years Ending December 31, Contractual Obligation Total 2017 2018 2019 2020 Thereafter Principal payments on outstanding debt obligations (1) $ 1,226,318,837 $ 2,432,254 $ 50,291,756 $ 76,606,732 $ 89,789,011 $ 101,811,593 $ 905,387,491 _____________________________ (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the deferred financing costs and debt premiums associated with certain notes payable. The Company’s notes payable contain customary financial and non-financial debt covenants. As of September 30, 2016 and December 31, 2015 , the Company was in compliance with all financial and non-financial debt covenants. For the three and nine months ended September 30, 2016 , the Company incurred interest of $10,534,005 and $30,787,688 , respectively. Interest expense for the three and nine months ended September 30, 2016 includes amortization of deferred financing costs of $459,798 and $1,237,263 , amortization of loan premiums and discounts of $317,351 and $934,747 , net unrealized loss from the change in fair value of interest rate cap agreements of $21,570 and $466,841 and capitalized interest of $13,799 and $80,166 , respectively. The capitalized interest is included in real estate on the consolidated balance sheets. For the three and nine months ended September 30, 2015 , the Company incurred interest of $10,053,781 and $29,662,052 , respectively. Interest expense for the three and nine months ended September 30, 2015 includes amortization of deferred financing costs of $451,270 and $1,183,398 , amortization of loan premiums of $308,698 and $926,094 , net unrealized loss from the change in fair value of interest rate cap agreements of $540,376 and $1,908,550 and capitalized interest of $34,268 and $134,943 , respectively. The capitalized interest is included in real estate on the consolidated balance sheets. Interest expense of $3,157,807 and $2,932,922 was payable as of September 30, 2016 and December 31, 2015 , respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity General Under the Company’s Third Articles of Amendment and Restatement (the “Charter”), the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,999,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of convertible stock with a par value of $0.01 per share and 100,000,000 shares designated as preferred stock with a par value of $0.01 per share. Common Stock The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. During 2009, the Company issued 22,223 shares of common stock to the Sponsor for $200,007 . The Company terminated its Public Offering on December 20, 2013, but continued to offer shares pursuant to the DRP through November 30, 2014. As of September 30, 2016 , the Company had issued 76,732,395 shares of common stock in its Private Offering and Public Offering for offering proceeds of $679,572,220 , net of offering costs of $95,845,468 , including 4,073,759 shares of common stock pursuant to the DRP for total proceeds of $39,580,847 . Offering costs primarily consisted of selling commissions and dealer manager fees. The issuance and vesting activity for the nine months ended September 30, 2016 and for the year ended December 31, 2015 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their initial election or re-election to the board of directors at the Company’s annual meeting, upon their departure from the board of directors, or in appreciation of their service and commitment to the Company is as follows: For the Nine Months Ended September 30, 2016 For the Year Ended December 31, 2015 Nonvested shares at the beginning of the period 11,250 16,875 Granted shares 7,500 14,000 Vested shares (6,875 ) (19,625 ) Nonvested shares at the end of the period 11,875 11,250 Additionally, the weighted average fair value of restricted stock issued to the Company’s independent directors for the nine months ended September 30, 2016 and for the year ended December 31, 2015 is as follows: Grant Year Weighted Average Fair Value 2015 $ 10.35 2016 11.44 The shares of restricted common stock vest and become non-forfeitable in four equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant and will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan, as defined below. Included in general and administrative expenses is $35,526 and $61,254 for the three and nine months ended September 30, 2016 and $125,719 and $171,486 for the three and nine months ended September 30, 2015 , respectively, for compensation expense related to the issuance of restricted common stock. The weighted average remaining term of the restricted common stock is 1.97 years as of September 30, 2016 . As of September 30, 2016 , the compensation expense related to the issuance of the restricted common stock not vested was $120,143 . On June 11, 2014 , the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000 . The shares of restricted stock vest and become non-forfeitable upon the earliest to occur of (i) 50% at December 31, 2015 and 50% at December 31, 2016, (ii) certain liquidity events of the Company, (iii) the Company’s cumulative modified funds from operations exceed the lesser of (a) the cumulative amount of distributions paid to the Company’s stockholders or (b) an amount that is equal to a 7.0% cumulative, non-compounded annual return on the Company’s stockholders’ invested capital, or (iv) the Company’s termination of, or failure to renew, the Advisory Agreement other than for “cause” (as defined in the Advisory Agreement). The shares of restricted stock shall be forfeited if the Advisor is terminated for any reason other than (iv) above. The fair value of the shares of unvested restricted stock was $2,792,969 as of September 30, 2016 . As of September 30, 2016 , 244,141 shares were vested. The fair value of the vested common stock and unvested restricted common stock as of September 30, 2016 and December 31, 2015 of $5,585,938 and $5,493,164 , respectively, are recorded in stockholders’ equity in the accompanying consolidated balance sheets. Included in general and administrative expenses on the accompanying consolidated statements of operations is $57,714 and $228,409 for the three and nine months ended September 30, 2016 and $5,291 and $27,431 for the three and nine months ended September 30, 2015 , respectively, for the change in value of restricted common stock issued to the Advisor. Convertible Stock The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000 . The Convertible Stock will convert into shares of the Company’s common stock if and when: (A) the Company has made total distributions on the then outstanding shares of common stock equal to the original issue price of those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, (B) subject to specified conditions, the Company lists the common stock for trading on a national securities exchange or (C) the Advisory Agreement is terminated or not renewed by the Company (other than for “cause” as defined in the Advisory Agreement). A “listing” will also be deemed to have occurred on the effective date of any merger of the Company in which the consideration received by the holders of the Company’s common stock is the securities of another issuer that are listed on a national securities exchange. Upon conversion, each share of Convertible Stock will convert into a number of shares of common stock equal to 1/1000 of the quotient of (A) 10% of the amount, if any, by which (1) the Company’s “enterprise value” (as defined in the Charter) plus the aggregate value of distributions paid to date on the outstanding shares of common stock exceeds (2) the aggregate purchase price paid by the stockholders for those shares plus an 8.0% cumulative, non-compounded, annual return on the original issue price of those shares, divided by (B) the Company’s enterprise value divided by the number of outstanding shares of common stock, in each case calculated as of the date of the conversion. In the event of a termination or non-renewal of the Advisory Agreement by the Company for cause, the Convertible Stock will be redeemed by the Company for $1.00 . Preferred Stock The Charter also provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of September 30, 2016 and December 31, 2015 , no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan In connection with the Public Offering, the Company’s board of directors approved the DRP through which common stockholders could elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The initial purchase price per share under the DRP was $9.50 . Effective September 10, 2012, in connection with the change in the Public Offering price, shares of the Company’s common stock were issued pursuant to the DRP at a price of $9.73 per share. Effective with distributions earned beginning on December 1, 2014, the Company’s board of directors elected to suspend the DRP. As a result, all distributions are paid in cash and not reinvested in shares of the Company’s common stock. The Company’s board of directors may, in its sole discretion, from time to time, reinstate the DRP at a price based upon the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant, although there is no assurance as to if or when this will happen. No sales commissions or dealer manager fees were payable on shares sold through the DRP. Share Repurchase Program and Redeemable Common Stock The Company’s share repurchase program may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase program until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. The purchase price for shares repurchased under the Company’s share repurchase program is as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1)(2) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share 2 years 95.0% of Estimated Value per Share 3 years 97.5% of Estimated Value per Share 4 years 100.0% of Estimated Value per Share In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. (2) For purposes of the share repurchase program, the “Estimated Value per Share” will equal the most recently publicly disclosed estimated value per share of the Company as determined by the Company’s board of directors. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. The purchase price per share for shares repurchased pursuant to the share repurchase program will be further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the repurchase date as a result of the sale of one or more of the Company’s assets that constitutes a return of capital distribution as a result of such sales. Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter during which the share repurchase program is in effect. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (the “Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior to the Repurchase Date. On October 21, 2014, the Company’s board of directors elected to suspend the Company’s share repurchase program, effective November 20, 2014. On May 12, 2015, the Company’s board of directors elected to reinstate the share repurchase program, effective July 1, 2015. During the three and nine months ended September 30, 2016 , the Company repurchased a total of 93,939 and 289,397 shares with a total repurchase value of $1,000,000 and $3,000,000 , respectively, and received net requests for the repurchase of 470,377 and 1,084,838 shares with a total net repurchase value of $5,168,917 and $11,858,991 , respectively. During the three and nine months ended September 30, 2015 , the Company received net requests for the repurchase of 422,879 shares with a total net repurchase value of $4,267,538 . No amounts were repurchased during the three and nine months ended September 30, 2015 . The Company cannot guarantee that the funds set aside for the share repurchase program will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the redemption requests exceed the Company’s restrictions on limitation or the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to redemption requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the requesting stockholder could (1) withdraw the request for repurchase or (2) ask that the Company honor the request in a future quarter, if any, when such repurchases may be made pursuant to the limitations of the share repurchase program and when sufficient funds are available. Such pending requests would be honored among all requests for redemptions in any given redemption period as follows: first, pro rata as to redemptions sought upon a stockholder’s death or disability; and, next, pro rata as to other redemption requests. The Company is not obligated to repurchase shares of the Company’s common stock under the share repurchase program. In no event shall redemptions under the share repurchase program exceed 5% of the weighted average number of shares of the Company’s common stock outstanding during the prior calendar year. In addition to the above limitation, effective July 1, 2015, in no event shall the value of the shares repurchased pursuant to the share repurchase program exceed $2,000,000 during the quarter beginning July 1, 2015, with each subsequent quarter not to exceed $1,000,000 . On August 9, 2016, the Company’s board of directors approved and authorized an increase to the value of the shares that may be repurchased pursuant to the share repurchase program from $1,000,000 to $2,000,000 , effective on the October 2016 repurchase date. There is no fee in connection with a repurchase of shares of the Company’s common stock. As of September 30, 2016 , the Company has recognized redemptions payable of $2,000,000 , which is included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets. The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the share repurchase program at any time upon 30 days’ notice to the Company’s stockholders if it determines that the funds available to fund the share repurchase program are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase program is in the best interest of the Company’s stockholders. Therefore, stockholders may not have the opportunity to make a repurchase request prior to any potential termination of the Company’s share repurchase program. Distributions Declared Distributions declared (1) accrue daily to stockholders of record as of the close of business on each day, (2) are payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month and (3) are calculated at a rate of $0.001958 per share per day, which if paid each day over a 366-day period, is equivalent to a 7.0% annualized distribution rate based on a purchase price of $10.24 per share of common stock. Distributions declared for the three and nine months ended September 30, 2016 were $13,767,424 and $41,090,264 , all of which were payable in cash. Distributions declared for the three and nine months ended September 30, 2015 were $13,888,802 and $41,210,771 , including $0 and $78 , or 0 and 8 shares of common stock, respectively, attributable to the DRP. As of September 30, 2016 and December 31, 2015 , $4,487,297 and $4,668,261 in distributions declared were payable, none of which were reinvested pursuant to the DRP. Distributions Paid For the three and nine months ended September 30, 2016 , the Company paid total distributions of $13,772,501 and $41,271,228 , which related to distributions declared for each day in the period from June 1, 2016 through August 31, 2016 and December 1, 2015 through August 31, 2016 , respectively. All distributions were paid in cash. For the three and nine months ended September 30, 2015 , the Company paid cash distributions of $13,887,973 and $41,360,816 , which related to distributions declared for each day in the period from June 1, 2015 through August 31, 2015 and December 1, 2014 through August 31, 2015 , respectively. Additionally, for the three and nine months ended September 30, 2015 , 0 and 8 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $0 and $78 , respectively. For the three and nine months ended September 30, 2015 , the Company paid total distributions of $13,887,973 and $41,360,894 . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share (“EPS”) for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net loss attributable to the Company $ (9,699,187 ) $ (3,603,728 ) $ (21,356,546 ) $ (10,338,802 ) Less: dividends declared on participating securities 46,391 90,485 138,165 268,505 Net loss attributable to common stockholders (9,745,578 ) (3,694,213 ) (21,494,711 ) (10,607,307 ) Weighted average common shares outstanding — basic and diluted 76,164,515 76,370,121 76,258,795 76,371,860 Loss per common share — basic and diluted $ (0.13 ) $ (0.05 ) $ (0.28 ) $ (0.14 ) The Company excluded all unvested restricted common shares outstanding issued to the Advisor and the Company’s independent directors from the calculation of diluted loss per common share as the effect would have been antidilutive. |
Related Party Arrangements
Related Party Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements The Company has entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments, the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, and the Company is obligated to reimburse the Advisor and its affiliates for acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. Amounts attributable to the Advisor and its affiliates incurred for the three and nine months ended September 30, 2016 and 2015 and amounts outstanding to the Advisor and its affiliates as of September 30, 2016 and December 31, 2015 are as follows: Incurred (Received) For the Incurred (Received) For the Payable (Prepaid) as of Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 September 30, 2016 December 31, 2015 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 3,525,330 $ 3,473,724 $ 10,537,619 $ 10,370,441 $ 7,843 $ 1,169,770 Acquisition fees (1) — 187,735 960 187,735 — — Acquisition expenses (2) — — — 7,145 — — Property management Fees (1) 1,621,239 1,570,816 4,793,878 4,621,570 533,527 520,127 Reimbursement of onsite personnel (3) 4,851,872 5,003,907 14,017,673 14,079,041 1,036,120 703,791 Other fees (1) 422,190 427,791 1,331,412 1,262,163 52,011 52,237 Other fees - G&A (4) 33,427 — 33,427 — — — Other operating expenses (4) 311,955 292,300 982,560 1,046,087 149,985 51,029 Refinancing fee (1) 1,493,727 — 3,283,737 — 310,134 — Insurance proceeds (5) — — (100,000 ) — — — Consolidated Balance Sheets: Capitalized Construction management Fees (6) 421,811 711,056 937,201 1,283,818 213,613 71,133 Reimbursement of labor costs (6) 97,813 25,335 279,695 75,896 13,416 114,122 Insurance deductible reserve account (7) 62,093 37,245 136,582 37,245 (186,277 ) (74,489 ) Deferred financing costs (8) 84,022 — 139,229 — — — $ 12,925,479 $ 11,692,664 $ 36,373,973 $ 32,933,896 $ 2,130,372 $ 2,607,720 _____________________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in acquisition costs in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in general and administrative expenses in the accompanying consolidated statements of operations. (5) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (6) Included in building and improvements in the accompanying consolidated balance sheets. (7) Included in other assets, net in the accompanying consolidated balance sheets upon payment. The amortization of the reserve is included in operating, maintenance and management in the accompanying consolidated statements of operations. (8) Included in mortgage notes payable, net in the accompanying consolidated balance sheets. Investment Management Fee The Company pays the Advisor a monthly investment management fee equal to one-twelfth of 0.80% of (1) the cost of real properties and real estate-related assets acquired directly by the Company or (2) the Company’s allocable cost of each real property or real estate-related asset acquired through a joint venture. Such fee is calculated including acquisition fees, acquisition expenses and any debt attributable to such investments, or the Company’s proportionate share thereof in the case of investments made through joint ventures. The cost of real properties and real estate-related assets that have been sold by the Company during the applicable month is excluded from the fee. Acquisition Fees and Expenses The Company pays the Advisor an acquisition fee equal to 2.0% of (1) the cost of investment, as defined in the Advisory Agreement, in connection with the acquisition or origination of any type of real property or real estate-related asset acquired directly by the Company or (2) the Company’s allocable portion of the purchase price in connection with the acquisition or origination of any type of real property or real estate-related asset acquired through a joint venture, including any acquisition and origination expenses and any debt attributable to such investments. In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor or its affiliates, including personnel-related costs for acquisition due diligence, legal and non-recurring management services, and amounts the Advisor pays to third parties in connection with the selection, acquisition or development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets. The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 6.0% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 6.0% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer. Property Management Fees and Expenses The Company has entered into Property Management Agreements with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the acquisition of each of the Company’s properties (other than EBT Lofts, Library Lofts and Stuart Hall Lofts, which are managed by an unaffiliated third-party management company). The property management fee payable with respect to each property under the Property Management Agreements (each a “Property Management Agreement”) ranges from 2.50% to 3.75% of the annual gross revenue collected, which is usual and customary for comparable property management services rendered to similar properties in similar geographic markets, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. The Property Manager also receives an oversight fee of 1% of gross revenues at certain of the properties at which it does not serve as a property manager. Generally, each Property Management Agreement has an initial one year term and will continue thereafter on a month-to-month basis unless either party gives a 60 -day prior notice of its desire to terminate the Property Management Agreement, provided that the Company may terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days’ prior written notice to the Property Manager. In addition to the property management fee, the Property Management Agreements also specify certain other fees payable to the Property Manager or its affiliates, including fees for benefit administration, information technology infrastructure, licenses, and support and training services. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees. Construction Management The Company has entered into Construction Management Agreements with Pacific Coast Land and Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with the planned capital improvements and renovation for certain of the Company’s properties. The construction management fee payable with respect to each property under the Construction Management Agreements (each a “Construction Management Agreement”) ranges from 5.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement has a term equal to the planned renovation timeline unless either party gives a 30 -day prior notice of its desire to terminate the Construction Management Agreement. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred, as such costs relate to capital improvements and renovations for apartment homes taken out of service while they undergo the planned renovation. The Company may also reimburse the Construction Manager for the salaries and related benefits of its employees for time spent working on capital improvements and renovations at its properties. Insurance Deductible Reserve The Company deposits with an affiliate of the Sponsor moneys to fund an insurance deductible reserve account to cover the cost of required insurance deductibles across all multifamily properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible reserve account may be used by the Company or another affiliate of the Sponsor. Other Operating Expense Reimbursement In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “ 2% / 25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2% / 25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2% / 25% Limitation unless the independent directors have determined that such excess expenses were justified. For purposes of determining the 2% / 25% Limitation amount, “average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12 -month period before deducting depreciation, bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company that are in any way related to the Company’s operation, including the Company’s allocable share of Advisor overhead and investment management fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of the Company’s assets; (f) acquisition fees and acquisition expenses (including expenses relating to potential acquisitions that the Company does not close); (g) real estate commissions on the resale of investments; and (h) other expenses connected with the acquisition, disposition, management and ownership of investments (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of real property). At September 30, 2016 , the Company’s total operating expenses, as defined above, did not exceed the 2% / 25% Limitation. Disposition Fee The Company will pay the Advisor a disposition fee in connection with a sale of a property or real estate-related asset and in the event of the sale of the entire Company, in either case when the Advisor or its affiliates provides a substantial amount of services as determined by a majority of the Company’s independent directors. With respect to a sale of a property or real estate-related asset, the Company will pay the Advisor a disposition fee equal to 1.5% of the contract sales price of the investment sold. With respect to a final liquidity event, the Company will pay the Advisor a disposition fee equal to (i) 0.5% of the total consideration paid in a final liquidity event if the price per share paid to stockholders is less than or equal to $9.00 ; (ii) 0.75% of the total consideration paid in a final liquidity event if the price per share paid to stockholders is between $9.01 and $10.24 ; (iii) 1.00% of the total consideration paid in a final liquidity event if the price per share paid to stockholders is between $10.25 and $11.24 ; (iv) 1.25% of the total consideration paid in a final liquidity event if the price per share paid to stockholders is between $11.25 and $12.00 ; and (v) 1.5% of the total consideration paid in a final liquidity event if the price per share paid to stockholders is greater than or equal to $12.01 . To the extent the disposition fee is paid upon the sale of any assets other than real property, it will be included as an operating expense for purposes of the 2% / 25% Limitation. In connection with the sale of securities, the disposition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the disposition fee to a firm that is not a registered broker-dealer. The Charter limits the maximum amount of the disposition fees payable to the Advisor for the sale of any real property to the lesser of one-half of the brokerage commission paid or 3% of the contract sales price, but in no event shall the total real estate commissions paid, including any disposition fees payable to the Advisor, exceed 6% of the contract sales price. Refinancing Fee The Company pays the Advisor a refinancing fee equal to 0.50% of the refinancing amount in connection with the refinancing of certain of the Company’s existing mortgage loans. For the three and nine months ended September 30, 2016 , the Advisor earned $1,493,727 and $3,283,737 in refinancing fees in connection with the Refinancing Transactions. Restricted Stock Agreement On June 11, 2014 , the Company entered into a restricted stock agreement with the Advisor whereby the Company issued to the Advisor 488,281.25 restricted shares of the Company’s common stock at a fair market value of $10.24 per share in satisfaction of certain deferred fees due to the Advisor in the aggregate amount of $5,000,000 . The shares of restricted stock vest and become non-forfeitable upon the earliest to occur of (i) 50% at December 31, 2015 and 50% at December 31, 2016, (ii) certain liquidity events of the Company, (iii) the Company’s cumulative modified funds from operations exceed the lesser of (a) the cumulative amount of distributions paid to the Company’s stockholders or (b) an amount that is equal to a 7.0% cumulative, non-compounded annual return on the Company’s stockholders’ invested capital, or (iv) the Company’s termination of, or failure to renew, the Advisory Agreement other than for “cause” (as defined in the Advisory Agreement). The shares of unvested restricted stock shall be forfeited if the Advisor is terminated for any reason other than (iv) above. |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Award Plan and Independent Director Compensation | Incentive Award Plan and Independent Director Compensation The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. No awards have been granted under the Incentive Award Plan as of September 30, 2016 and December 31, 2015 , except those awards granted to the independent directors as described below. Under the Company’s independent directors’ compensation plan, which is a sub-plan of the Incentive Award Plan, each of the Company’s independent directors was entitled to receive 5,000 shares of restricted common stock in connection with the initial meeting of the Company’s full board of directors. The Company’s board of directors, and each of the independent directors, agreed to delay the initial grant of restricted stock until the Company raised $2,000,000 in gross offering proceeds in the Private Offering. Each subsequent independent director that joins the Company’s board of directors receives 5,000 shares of restricted common stock upon election to the Company’s board of directors. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 2,500 shares of restricted common stock. One-fourth of the shares of restricted common stock generally vest and become non-forfeitable upon issuance and the remaining portion will vest in three equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant; provided, however, that the restricted stock will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability or (2) a change in control of the Company and as otherwise provided in the Incentive Award Plan. On August 10, 2015, the Company’s board of directors granted 2,000 shares of restricted common stock pursuant to the Incentive Award Plan to each of Larry H. Dale and Kerry D. Vandell in appreciation for their service as independent directors and commitment to the Company for their prior years of service as independent directors, all of which vested immediately. On August 11, 2015, the Company granted 5,000 shares of restricted common stock to its new independent director, Don B. Saulic. On August 9, 2016, the Company granted 2,500 shares of restricted common stock to each of its three independent directors upon their re-election to the Company’s board of directors at the 2016 annual meeting of stockholders. The Company recorded stock-based compensation expense of $35,526 and $61,254 for the three and nine months ended September 30, 2016 and $125,719 and $171,486 for the three and nine months ended September 30, 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor and its affiliates for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources. Concentration of Credit Risk The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Houston, Texas, Chicago, Illinois and Austin, Texas apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2016 and December 31, 2015 : September 30, 2016 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 11/1/2016 - 10/1/2019 One-Month LIBOR 44 $ 995,112,000 0.53 % 2.69 % $ 90,302 December 31, 2015 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 11/1/2016 - 10/1/2019 One-Month LIBOR 30 $ 637,110,000 0.43 % 2.68 % $ 298,143 The interest rate cap agreements are not designated as cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three and nine months ended September 30, 2016 resulted in an unrealized loss of $21,570 and $466,841 , respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the three and nine months ended September 30, 2016 , the Company acquired interest rate cap agreements of $0 and $259,000 , and during the three and nine months ended September 30, 2015 , the Company acquired interest rate cap agreements of $231,000 and $296,250 . The fair value of the interest rate cap agreements of $90,302 and $298,143 as of September 30, 2016 and December 31, 2015 , respectively, are included in other assets, net on the accompanying consolidated balance sheets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid On October 3, 2016 , the Company paid distributions of $4,487,297 , which related to distributions declared for each day in the period from September 1, 2016 through September 30, 2016 . All such distributions were paid in cash. On November 1, 2016 , the Company paid distributions of $4,636,500 , which related to distributions declared for each day in the period from October 1, 2016 through October 31, 2016 . All such distributions were paid in cash. Shares Repurchased On October 31, 2016 , the Company repurchased 189,743 shares of its common stock for a total repurchase value of $2,000,000 , or $10.54 per share, pursuant to the Company’s share repurchase program. Distributions Declared On November 8, 2016, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on January 1, 2017 and ending on March 31, 2017. The distributions will be equal to $0.001964 per share of the Company’s common stock. The distributions for each record date in January 2017, February 2017 and March 2017 will be paid in February 2017, March 2017 and April 2017, respectively. The distributions will be payable to stockholders from legally available funds therefor. Advisory Agreement On November 8, 2016, the Company entered into Amendment No. 9 (the “Amendment”) to the Amended and Restated Advisory Agreement, by and among the Company, the Operating Partnership and the Advisor. The amendment renewed the Advisory Agreement for a term beginning on November 15, 2016 and ending on November 15, 2017. Plan of Liquidation In the event that the board of directors has not determined to pursue a liquidity event by December 31, 2016, the board of directors will adopt a resolution declaring that a proposed liquidation of the Company is advisable on substantially the terms and conditions set forth in the resolution (the “Plan of Liquidation”) and direct that the proposed Plan of Liquidation be submitted for consideration at either an annual or special meeting of the stockholders. The adoption of a Plan of Liquidation and the submission to the stockholders may be postponed if a majority of directors, including a majority of independent directors, determines that a liquidation is not then in the best interest of the stockholders. On November 8, 2016, the Company’s board of directors, including a majority of the independent directors, determined to postpone presenting a liquidation decision to stockholders as it is not now in the best interests of the Company’s stockholders. In accordance with the Company’s charter, the board of directors will reconsider whether to seek stockholder approval of the Company’s liquidation at least annually. The board of directors, pursuant to its fiduciary duties, continuously evaluates opportunities, including possible liquidation events, of the Company. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. |
Basis of Presentation | The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Reclassifications | Reclassifications Certain prior year amounts in the consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications have not changed the results of operations of prior periods. |
Short-term Investments | Short-term Investments Short-term investments consist of any highly-liquid securities that have an original maturity of less than one year but greater than three months at the time of purchase. |
Fair Value Measurements | Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements - These derivatives did not qualify as fair value hedges and are recorded at fair value. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets, net in the accompanying consolidated balance sheets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and mortgage notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, short-term investments, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The fair value of the notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. |
Distribution Policy | Distribution Policy The Company has elected to be treated as, and currently qualifies as, a REIT. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions were based on daily record dates and calculated at a rate of $0.001964 per share per day during the year ended December 31, 2015 and the three months ended March 31, 2016. Distributions were based on daily record dates and calculated at a rate of $0.001958 per share per day during the six months ended September 30, 2016 . Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. |
Per Share Data | Per Share Data Basic earnings (loss) per share attributable for all periods presented are computed by dividing net income (loss) attributable to controlling interest by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share are computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assumes each share was issued and outstanding each day during the period. The Company’s unvested shares of restricted common stock contain non-forfeitable rights to dividends and are considered to be participating securities in accordance with GAAP and, therefore, are included in the computation of earnings (loss) per share under the two-class method. Under the two-class method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. The unvested shares of restricted common stock are not allocated losses as the awards do not have a contractual obligation to share in the losses of the Company. The two-class method is an earnings (loss) allocation formula that determines earnings (loss) per share for each class of common shares and participating securities according to dividends declared and participation rights in undistributed earnings. |
Segment Disclosure | Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. |
Recently Issued Accounting Standards Updates | Recently Issued Accounting Standards Updates In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( Topic 606 ). The new guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The new guidance supersedes the revenue requirements in Revenue Recognition ( Topic 605 ) and most industry-specific guidance throughout the Industry Topics of the Codification. The new guidance does not apply to lease contracts within the scope of Leases ( Topic 840 ). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) , which delayed the effective date of the new guidance by one year, which will result in the new guidance being effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted, but can be no earlier than the original public entity effective date of fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is evaluating the impact of adopting the new guidance on its financial statements, but does not expect the adoption to have a material impact on its financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , that requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern. Until now, the requirement to perform a going concern evaluation existed only in auditing standards. The new guidance requires management to evaluate relevant conditions, events and certain management plans that are known or reasonably knowable as of the evaluation date when determining whether substantial doubt about an entity’s ability to continue as a going concern exists. Management will be required to make this evaluation for both annual and interim reporting periods. The standard states substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. The guidance is effective for annual periods ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items , that eliminates the concept of the extraordinary items from GAAP. The objective of the new guidance is to simplify the income statement presentation requirements of GAAP by altogether removing the concept of extraordinary items from consideration. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. The Company did not experience a material impact from adopting this new guidance. In February 2015, the FASB issued ASU 2015-02, Consolidation , which makes changes to both the variable interest model and the voting model of consolidation. Under ASU 2015-02, companies will need to re-evaluate whether an entity meets the criteria to be considered a variable interest entity (“VIE”) or whether the consolidation of an entity should be assessed under the voting model. The new standard specifically eliminates the presumption in the current voting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. The new standard was effective for the Company beginning on January 1, 2016. The adoption of the new standard did not result in the consolidation of entities not previously consolidated or the deconsolidation of any entities previously consolidated. Upon adopting the new standard, the Operating Partnership became a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and continues to consolidate, the Operating Partnership determined to be a VIE. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , as amended in August 2015 by ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, that will require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The FASB will permit debt issuance costs related to line-of-credit arrangements to be deferred and presented as an asset and subsequently amortized over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The recognition and measurement guidance for debt issuance costs will not be affected by the new guidance. The guidance requires retrospective application and is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. Upon adoption, the Company reclassified net debt issuance costs of $9,332,831 and $6,697,472 as of September 30, 2016 and December 31, 2015 , respectively, related to mortgage notes payable from other assets, net to mortgage notes payable, net on the consolidated balance sheets. In February 2016, the FASB issued ASU 2016-02, Leases , amending the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The guidance will be effective in the first quarter of 2019 and allows for early adoption. The Company is assessing whether the new standard will have a material effect on its financial position or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force), that clarifies how certain cash receipts and cash payments should be classified on the statement of cash flows. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The guidance is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. Upon adoption, the Company reclassified payments for debt extinguishment costs of $3,202,337 from cash flows from operating activities to cash flows from financing activities as of September 30, 2016 . There was no impact as of December 31, 2015 . |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Assets Required to be Measured at Fair Value on a Recurring Basis | The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: September 30, 2016 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 90,302 $ — December 31, 2015 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 298,143 $ — |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Schedule of Accumulated Depreciation and Amortization Related to the Consolidated Real Estate Properties and Related Intangibles | As of September 30, 2016 and December 31, 2015 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: September 30, 2016 Assets Land Building and Improvements Other Intangible Assets Construction-in-Progress Total Real Estate Investments in real estate $ 174,102,422 $ 1,511,224,371 $ 2,644,263 $ — $ 1,687,971,056 Less: Accumulated depreciation and amortization — (214,456,650 ) (507,739 ) — (214,964,389 ) Net investments in real estate and related lease intangibles $ 174,102,422 $ 1,296,767,721 $ 2,136,524 $ — $ 1,473,006,667 December 31, 2015 Assets Land Building and Improvements Other Intangible Assets Construction-in-Progress Total Real Estate Investments in real estate $ 174,102,422 $ 1,487,961,762 $ 2,644,263 $ 2,192,635 $ 1,666,901,082 Less: Accumulated depreciation and amortization — (163,053,124 ) (392,863 ) — (163,445,987 ) Net investments in real estate and related lease intangibles $ 174,102,422 $ 1,324,908,638 $ 2,251,400 $ 2,192,635 $ 1,503,455,095 |
Schedule of Future Amortization of Acquired Other Intangible Assets | The future amortization of the Company’s acquired other intangible assets as of September 30, 2016 and thereafter is as follows: October 1 through December 31, 2016 $ 38,292 2017 153,168 2018 153,168 2019 153,168 2020 153,168 Thereafter 1,485,560 $ 2,136,524 |
Schedule of Future Minimum Rental Receipts from Properties under Non-cancelable Operating Leases Attributable to Commercial Office Tenants | The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial office tenants as of September 30, 2016 and thereafter is as follows: October 1 through December 31, 2016 $ 46,614 2017 187,120 2018 189,136 2019 108,760 $ 531,630 |
Other Assets, Net (Tables)
Other Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Financing Costs and Other Assets, Net of Accumulated Amortization | As of September 30, 2016 and December 31, 2015 , other assets, net of accumulated amortization, consisted of: September 30, December 31, Deferred financing costs of revolving credit facility $ — $ 660,585 Less: accumulated amortization — (547,402 ) — 113,183 Prepaid expenses 3,078,372 2,648,238 Interest rate cap agreements (Note 11) 90,302 298,143 Deposits 1,241,677 1,269,287 Other assets, net $ 4,410,351 $ 4,328,851 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable, net secured by real property as of September 30, 2016 and December 31, 2015 : September 30, 2016 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 37 10/1/2017 - 10/1/2056 3.19 % 5.94 % 4.07 % $ 473,453,405 Mortgage notes payable - variable (1) 21 8/31/2017 - 1/1/2026 1-Mo LIBOR + 1.65% 1-Mo LIBOR + 2.65% 2.81 % 517,740,682 Total mortgage notes payable, gross 58 3.41 % 991,194,087 Premium, net (2) 2,517,258 Deferred financing costs, net (3) (6,698,980 ) Total mortgage notes payable, net $ 987,012,365 December 31, 2015 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 37 10/1/2017 - 1/1/2053 3.31 % 5.94 % 4.32 % $ 477,139,001 Mortgage notes payable - variable (1) 30 5/16/2017 - 1/1/2026 1-Mo LIBOR + 1.62% 1-Mo LIBOR + 2.75% 2.77 % 641,859,365 Total mortgage notes payable, gross 67 3.44 % 1,118,998,366 Premium/discount, net (2) 3,452,005 Deferred financing costs, net (3) (6,697,472 ) Total mortgage notes payable, net $ 1,115,752,899 _____________________________ (1) See Note 11 for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The following table summarizes the debt premiums and discounts as of September 30, 2016 , including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations: Unamortized Portion of Net Debt Premium as of September 30, 2016 Amortization of Net Debt Premium During the Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ 2,517,258 $ 317,351 $ 308,698 $ 934,747 $ 926,094 (3) The following table summarizes the deferred financing costs, net related to mortgage notes payable as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Deferred financing costs $ 10,104,244 $ 10,140,097 Less: accumulated amortization (3,405,264 ) (3,442,625 ) Deferred financing costs, net $ 6,698,980 $ 6,697,472 |
Summary of Debt Premiums and Discounts | The following table summarizes the debt premiums and discounts as of September 30, 2016 , including the unamortized portion included in the principal balance as well as amounts amortized as an offset to interest expense in the accompanying consolidated statements of operations: Unamortized Portion of Net Debt Premium as of September 30, 2016 Amortization of Net Debt Premium During the Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 $ 2,517,258 $ 317,351 $ 308,698 $ 934,747 $ 926,094 |
Summary of Deferred Financing Costs | The following table summarizes the deferred financing costs, net related to mortgage notes payable as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Deferred financing costs $ 10,104,244 $ 10,140,097 Less: accumulated amortization (3,405,264 ) (3,442,625 ) Deferred financing costs, net $ 6,698,980 $ 6,697,472 |
Schedule of Revolving Credit Facility Advances | As of September 30, 2016 , the advances obtained under the credit facility on July 29, 2016 are summarized in the following table: Collateralized Property (1) Amount of Advance Ashley Oaks Apartment Homes $ 24,867,500 Trails at Buda Ranch 21,025,000 Deer Valley Apartments 22,982,500 Carrington Park at Huffmeister 20,430,500 Carrington Place 27,535,500 Carrington at Champion Forest 25,121,250 Audubon Park Apartments 16,602,500 Oak Crossing 17,980,000 Meritage at Steiner Ranch 58,580,000 $ 235,124,750 Deferred financing costs, net on Credit Facility (2) (2,633,851 ) Credit Facility, net $ 232,490,899 ___________ (1) Each property is pledged as collateral for repayment of all amounts advanced under the credit facility. (2) Accumulated amortization related to deferred financing costs for the credit facility as of September 30, 2016 , was $288,296 . |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of September 30, 2016 : Remainder of 2016 Maturities During the Years Ending December 31, Contractual Obligation Total 2017 2018 2019 2020 Thereafter Principal payments on outstanding debt obligations (1) $ 1,226,318,837 $ 2,432,254 $ 50,291,756 $ 76,606,732 $ 89,789,011 $ 101,811,593 $ 905,387,491 _____________________________ (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of the deferred financing costs and debt premiums associated with certain notes payable. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Restricted Stock Issued to Independent Directors as Compensation | The issuance and vesting activity for the nine months ended September 30, 2016 and for the year ended December 31, 2015 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their initial election or re-election to the board of directors at the Company’s annual meeting, upon their departure from the board of directors, or in appreciation of their service and commitment to the Company is as follows: For the Nine Months Ended September 30, 2016 For the Year Ended December 31, 2015 Nonvested shares at the beginning of the period 11,250 16,875 Granted shares 7,500 14,000 Vested shares (6,875 ) (19,625 ) Nonvested shares at the end of the period 11,875 11,250 Additionally, the weighted average fair value of restricted stock issued to the Company’s independent directors for the nine months ended September 30, 2016 and for the year ended December 31, 2015 is as follows: Grant Year Weighted Average Fair Value 2015 $ 10.35 2016 11.44 |
Schedule of Repurchase Prices Under Share Repurchase Plan | The purchase price for shares repurchased under the Company’s share repurchase program is as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1)(2) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share 2 years 95.0% of Estimated Value per Share 3 years 97.5% of Estimated Value per Share 4 years 100.0% of Estimated Value per Share In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. (2) For purposes of the share repurchase program, the “Estimated Value per Share” will equal the most recently publicly disclosed estimated value per share of the Company as determined by the Company’s board of directors. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Net Loss Attributable to Common Stockholders and Shares used in Calculating Basic and Diluted Earnings (Loss) Per Share | The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted earnings (loss) per share (“EPS”) for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net loss attributable to the Company $ (9,699,187 ) $ (3,603,728 ) $ (21,356,546 ) $ (10,338,802 ) Less: dividends declared on participating securities 46,391 90,485 138,165 268,505 Net loss attributable to common stockholders (9,745,578 ) (3,694,213 ) (21,494,711 ) (10,607,307 ) Weighted average common shares outstanding — basic and diluted 76,164,515 76,370,121 76,258,795 76,371,860 Loss per common share — basic and diluted $ (0.13 ) $ (0.05 ) $ (0.28 ) $ (0.14 ) |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Attributable to the Advisor and its Affiliates | Amounts attributable to the Advisor and its affiliates incurred for the three and nine months ended September 30, 2016 and 2015 and amounts outstanding to the Advisor and its affiliates as of September 30, 2016 and December 31, 2015 are as follows: Incurred (Received) For the Incurred (Received) For the Payable (Prepaid) as of Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 September 30, 2016 December 31, 2015 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 3,525,330 $ 3,473,724 $ 10,537,619 $ 10,370,441 $ 7,843 $ 1,169,770 Acquisition fees (1) — 187,735 960 187,735 — — Acquisition expenses (2) — — — 7,145 — — Property management Fees (1) 1,621,239 1,570,816 4,793,878 4,621,570 533,527 520,127 Reimbursement of onsite personnel (3) 4,851,872 5,003,907 14,017,673 14,079,041 1,036,120 703,791 Other fees (1) 422,190 427,791 1,331,412 1,262,163 52,011 52,237 Other fees - G&A (4) 33,427 — 33,427 — — — Other operating expenses (4) 311,955 292,300 982,560 1,046,087 149,985 51,029 Refinancing fee (1) 1,493,727 — 3,283,737 — 310,134 — Insurance proceeds (5) — — (100,000 ) — — — Consolidated Balance Sheets: Capitalized Construction management Fees (6) 421,811 711,056 937,201 1,283,818 213,613 71,133 Reimbursement of labor costs (6) 97,813 25,335 279,695 75,896 13,416 114,122 Insurance deductible reserve account (7) 62,093 37,245 136,582 37,245 (186,277 ) (74,489 ) Deferred financing costs (8) 84,022 — 139,229 — — — $ 12,925,479 $ 11,692,664 $ 36,373,973 $ 32,933,896 $ 2,130,372 $ 2,607,720 _____________________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in acquisition costs in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in general and administrative expenses in the accompanying consolidated statements of operations. (5) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (6) Included in building and improvements in the accompanying consolidated balance sheets. (7) Included in other assets, net in the accompanying consolidated balance sheets upon payment. The amortization of the reserve is included in operating, maintenance and management in the accompanying consolidated statements of operations. (8) Included in mortgage notes payable, net in the accompanying consolidated balance sheets. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivative Instruments | The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2016 and December 31, 2015 : September 30, 2016 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 11/1/2016 - 10/1/2019 One-Month LIBOR 44 $ 995,112,000 0.53 % 2.69 % $ 90,302 December 31, 2015 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 11/1/2016 - 10/1/2019 One-Month LIBOR 30 $ 637,110,000 0.43 % 2.68 % $ 298,143 |
Organization and Business - Nar
Organization and Business - Narrative (Details) | Jul. 10, 2009USD ($)shares | Jun. 12, 2009USD ($)$ / sharesshares | Sep. 30, 2016ft²apartmentproperty$ / sharesshares | Dec. 31, 2009shares | Dec. 31, 2015shares |
Residential Real Estate [Member] | |||||
Class of Stock [Line Items] | |||||
Number of multifamily real estate properties owned | property | 65 | ||||
Number of units in real estate property (in number of units or apartments) | apartment | 16,709 | ||||
Commercial Real Estate [Member] | |||||
Class of Stock [Line Items] | |||||
Number of units in real estate property (in number of units or apartments) | property | 3 | ||||
Net rentable area (in square feet) | ft² | 25,973 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 10.24 | ||||
Stock issued to advisor (in shares) | 76,479,044 | 76,674,502 | |||
Convertible Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock issued to advisor (in shares) | 1,000 | 1,000 | |||
Steadfast REIT Investments, LLC [Member] | Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (in shares) | 22,223 | 22,223 | |||
Share price (in dollars per share) | $ / shares | $ 9 | ||||
Issuance of common stock | $ | $ 200,007 | ||||
Steadfast Income Advisor, LLC [Member] | |||||
Class of Stock [Line Items] | |||||
Investment from advisor | $ | $ 1,000 | ||||
Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock (in shares) | 1,000 | ||||
Stock issued to advisor (in shares) | 1,000 |
Organization and Business - Pri
Organization and Business - Private Offering (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Jul. 09, 2010 | Oct. 13, 2009 | |
Private Offering [Member] | |||
Class of Stock [Line Items] | |||
Issuance of common stock | $ 2,000,000 | ||
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Share price (in dollars per share) | $ 10.24 | ||
Common Stock [Member] | Private Offering [Member] | |||
Class of Stock [Line Items] | |||
Value of shares in private offering | $ 94,000,000 | ||
Share price (in dollars per share) | $ 9.4 | ||
Issuance of common stock (in shares) | 637,279 | ||
Issuance of common stock | $ 5,844,325 |
Organization and Business - Pub
Organization and Business - Public Offering (Details) - USD ($) | Sep. 10, 2012 | Sep. 09, 2012 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 20, 2013 | Mar. 10, 2015 | Jul. 12, 2012 | Jul. 23, 2009 |
Class of Stock [Line Items] | ||||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001958 | $ 0.001964 | |||||||||
Stock issued during period, dividend reinvestment plan (in shares) | 4,073,759 | |||||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 39,580,847 | |||||||||||
IPO [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock issued during period, shares, new issues (in shares) | 73,608,337 | |||||||||||
Issuance of common stock | $ 745,389,748 | |||||||||||
Distribution Reinvestment Plan [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ 9.73 | $ 9.5 | ||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | 1,588,289 | |||||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 15,397,232 | |||||||||||
Common Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ 10.24 | $ 10.24 | ||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001917 | $ 0.001958 | |||||||||
Common stock, distribution rate, percentage | 7.00% | 7.00% | ||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | 0 | 8 | ||||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 0 | $ 78 | ||||||||||
Common stock, estimated value, per share (in dollars per share) | $ 11.44 | $ 10.35 | ||||||||||
Common Stock [Member] | Primary Offering [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance (in shares) | 150,000,000 | |||||||||||
Share price (in dollars per share) | $ 10.24 | $ 10 | ||||||||||
Distributions reinvested, percentage of share price, distribution reinvestment plan | 95.00% | |||||||||||
Common Stock [Member] | IPO [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance, distribution reinvestment plan, up to (in shares) | 15,789,474 | |||||||||||
Share price, distribution reinvestment plan (in dollars per share) | $ 9.73 | $ 9.5 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Reclassifications and Recently Issued Accounting Standards Updates (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred financing costs, net | $ 0 | $ 113,183 |
Other Assets [Member] | Accounting Standards Update 2015-15 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred financing costs, net | (9,332,831) | (6,697,472) |
Mortgage Notes Payable [Member] | Accounting Standards Update 2015-15 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred financing costs, net | $ 6,698,980 | $ 6,697,472 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Short-term Investments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Investment [Line Items] | ||
Short-term investments | $ 30,000,000 | $ 0 |
Certificate of deposit | ||
Investment [Line Items] | ||
Short-term investments | $ 30,000,000 | $ 0 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Summary of Assets Required to be Measured at Fair Value on a Recurring Basis (Details) - Interest Rate Cap [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | 90,302 | 298,143 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable, net | $ 987,012,365 | $ 1,115,752,899 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable at fair value | 1,226,421,667 | 1,118,126,231 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable, net | $ 1,219,503,264 | $ 1,115,752,899 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Distribution Policy (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001958 | $ 0.001964 | ||||
Distributions declared per common share (in dollars per share) | $ 0.18 | $ 0.181 | $ 0.536492 | $ 0.537 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Segment Disclosure (Details) | 9 Months Ended |
Sep. 30, 2016segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Effect on operating cash flows | $ (38,303,678) | $ (36,702,062) | |
Effect on financing cash flows | 54,357,435 | $ (6,846,381) | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-15 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Effect on operating cash flows | 3,202,337 | $ 0 | |
Effect on financing cash flows | $ 3,202,337 | $ 0 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)ft²apartmentproperty | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)ft²apartmentpropertycustomer | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)customer | |
Real Estate Properties [Line Items] | |||||
Contract purchase price | $ 1,643,666,920 | ||||
Average percentage of real estate portfolio occupied | 94.00% | 94.00% | |||
Average monthly collected rent | $ 1,027 | $ 999 | |||
Depreciation and amortization | $ 17,559,941 | $ 16,496,386 | $ 51,723,985 | $ 48,832,712 | |
Tenant [Member] | Customer Concentration Risk [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of tenant representing over 10% of Company's annualized base rent | customer | 0 | 0 | |||
Accounts Payable and Accrued Liabilities [Member] | |||||
Real Estate Properties [Line Items] | |||||
Security deposit liability | 5,077,677 | $ 5,077,677 | $ 4,672,961 | ||
Building and Improvements [Member] | |||||
Real Estate Properties [Line Items] | |||||
Depreciation | 17,521,649 | 16,458,094 | 51,609,109 | 48,502,050 | |
Tenant Origination and Absorption Cost [Member] | |||||
Real Estate Properties [Line Items] | |||||
Amortization | 0 | 0 | $ 0 | 215,786 | |
Weighted-average amortization period (less than) | 1 year | ||||
Other Intangible Assets [Member] | |||||
Real Estate Properties [Line Items] | |||||
Amortization | $ 38,292 | $ 38,292 | $ 114,876 | $ 114,876 | |
Residential Real Estate [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of multifamily real estate properties owned | property | 65 | 65 | |||
Number of units in real estate property (in number of units or apartments) | apartment | 16,709 | 16,709 | |||
Percentage leased | 96.50% | 96.50% | |||
Operating leases, revenue, percentage | 99.00% | 99.00% | 99.00% | 99.00% | |
Residential Real Estate [Member] | Maximum [Member] | |||||
Real Estate Properties [Line Items] | |||||
Operating lease term | 12 months | ||||
Commercial Real Estate [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of units in real estate property (in number of units or apartments) | property | 3 | 3 | |||
Net rentable area (in square feet) | ft² | 25,973 | 25,973 | |||
Operating leases, revenue, percentage | 1.00% | 1.00% | 1.00% | 1.00% | |
Commercial Real Estate [Member] | Minimum [Member] | |||||
Real Estate Properties [Line Items] | |||||
Operating lease term | 2 years 7 months 30 days | ||||
Commercial Real Estate [Member] | Maximum [Member] | |||||
Real Estate Properties [Line Items] | |||||
Operating lease term | 3 years 1 month |
Real Estate - Schedule of Accum
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to the Consolidated Real Estate Properties and Related Intangibles (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | $ 1,687,971,056 | $ 1,666,901,082 |
Less: Accumulated depreciation and amortization | (214,964,389) | (163,445,987) |
Net investments in real estate and related lease intangibles | 1,473,006,667 | 1,503,455,095 |
Land [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 174,102,422 | 174,102,422 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Net investments in real estate and related lease intangibles | 174,102,422 | 174,102,422 |
Building and Improvements [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 1,511,224,371 | 1,487,961,762 |
Less: Accumulated depreciation and amortization | (214,456,650) | (163,053,124) |
Net investments in real estate and related lease intangibles | 1,296,767,721 | 1,324,908,638 |
Other Intangible Assets [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 2,644,263 | 2,644,263 |
Less: Accumulated depreciation and amortization | (507,739) | (392,863) |
Net investments in real estate and related lease intangibles | 2,136,524 | 2,251,400 |
Construction-in-Progress [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 0 | 2,192,635 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Net investments in real estate and related lease intangibles | $ 0 | $ 2,192,635 |
Real Estate - Schedule of Futur
Real Estate - Schedule of Future Amortization of Acquired Other Intangible Assets (Details) - Other Intangible Assets [Member] | Sep. 30, 2016USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
October 1 through December 31, 2016 | $ 38,292 |
2,017 | 153,168 |
2,018 | 153,168 |
2,019 | 153,168 |
2,020 | 153,168 |
Thereafter | 1,485,560 |
Future amortization of acquired other intangible assets | $ 2,136,524 |
Real Estate - Schedule of Fut42
Real Estate - Schedule of Future Minimum Rental Receipts from Properties under Non-cancelable Operating Leases Attributable to Commercial Office Tenants (Details) | Sep. 30, 2016USD ($) |
Real Estate [Abstract] | |
October 1 through December 31, 2016 | $ 46,614 |
2,017 | 187,120 |
2,018 | 189,136 |
2,019 | 108,760 |
Total future minimum rental receipts | $ 531,630 |
Other Assets, Net (Details)
Other Assets, Net (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred financing costs of revolving credit facility | $ 0 | $ 660,585 |
Less: accumulated amortization | 0 | (547,402) |
Deferred financing costs, net | 0 | 113,183 |
Prepaid expenses | 3,078,372 | 2,648,238 |
Interest rate cap agreements (Note 11) | 90,302 | 298,143 |
Deposits | 1,241,677 | 1,269,287 |
Other assets, net | $ 4,410,351 | $ 4,328,851 |
Debt - Summary of Notes Payable
Debt - Summary of Notes Payable Secured by Real Property (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016USD ($)instrument | Dec. 31, 2015USD ($)instrument | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 987,012,365 | $ 1,115,752,899 |
Deferred financing costs, net | 0 | (113,183) |
Total notes payable, net | $ 1,219,503,264 | $ 1,115,752,899 |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 58 | 67 |
Weighted Average Interest Rate | 3.41% | 3.44% |
Principal Outstanding | $ 991,194,087 | $ 1,118,998,366 |
Premium/discount, net | 2,517,258 | 3,452,005 |
Deferred financing costs, net | (6,698,980) | (6,697,472) |
Total notes payable, net | $ 987,012,365 | $ 1,115,752,899 |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 37 | 37 |
Weighted Average Interest Rate | 4.07% | 4.32% |
Principal Outstanding | $ 473,453,405 | $ 477,139,001 |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 3.19% | 3.31% |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest Rate Range | 5.94% | 5.94% |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 21 | 30 |
Weighted Average Interest Rate | 2.81% | 2.77% |
Principal Outstanding | $ 517,740,682 | $ 641,859,365 |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | LIBOR [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Variable Rate | 1.65% | 1.62% |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | LIBOR [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Variable Rate | 2.65% | 2.75% |
Debt - Summary of Debt Premiums
Debt - Summary of Debt Premiums and Discounts (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Amortization of debt premium (discount) | $ 934,747 | $ 926,094 | |||
Notes Payable to Banks [Member] | |||||
Debt Instrument [Line Items] | |||||
Premium/discount, net | $ 2,517,258 | 2,517,258 | $ 3,452,005 | ||
Amortization of debt premium (discount) | $ 317,351 | $ 308,698 | $ 934,747 | $ 926,094 |
Debt - Schedule of Deferred Fin
Debt - Schedule of Deferred Financing Costs (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Deferred financing costs of revolving credit facility | $ 0 | $ 660,585 |
Less: accumulated amortization | 0 | (547,402) |
Deferred financing costs, net | 0 | 113,183 |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Deferred financing costs of revolving credit facility | 10,104,244 | 10,140,097 |
Less: accumulated amortization | (3,405,264) | (3,442,625) |
Deferred financing costs, net | $ 6,698,980 | $ 6,697,472 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 29, 2016USD ($)subsidiary | Jun. 30, 2016USD ($)subsidiary | Jul. 18, 2014USD ($) | Sep. 29, 2016USD ($)subsidiary | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jul. 17, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||
Interest expense | $ 10,534,005 | $ 10,053,781 | $ 30,787,688 | $ 29,662,052 | ||||||
Amortization of deferred financing costs | 459,798 | 451,270 | 1,237,263 | 1,183,398 | ||||||
Amortization of debt premium (discount) | 934,747 | 926,094 | ||||||||
Unrealized loss on derivatives | 466,841 | 1,908,550 | ||||||||
Capitalized interest | 13,799 | 34,268 | 80,166 | 134,943 | ||||||
Accounts Payable and Accrued Liabilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest payable | 3,157,807 | 3,157,807 | $ 2,932,922 | |||||||
Interest Rate Cap [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unrealized loss on derivatives | 21,570 | 540,376 | 466,841 | 1,908,550 | ||||||
Notes Payable to Banks [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of subsidiaries | subsidiary | 9 | 14 | 3 | |||||||
Termination of debt | $ 283,313,677 | $ 61,575,025 | ||||||||
Amortization of debt premium (discount) | $ 317,351 | $ 308,698 | $ 934,747 | $ 926,094 | ||||||
Notes Payable to Banks [Member] | Refinancing Transactions Loan Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 358,002,000 | $ 63,620,600 | ||||||||
Notes Payable to Banks [Member] | Refinancing Transactions Loan Agreement [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 2.31% | |||||||||
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 0.05% | |||||||||
Credit agreement limit | $ 350,000,000 | |||||||||
Payments of loan origination fees | 1,293,186 | |||||||||
Refinancing fees paid | $ 1,175,624 | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement limit | $ 35,000,000 | $ 20,000,000 | ||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche A [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement limit | $ 20,000,000 | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche A [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 1.60% | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche A [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 0.75% | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche B [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement limit | $ 15,000,000 | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche B [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 3.00% | |||||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Revolving Credit Facility, Tranche B [Member] | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 2.00% | |||||||||
Minimum [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 1.73% | |||||||||
Maximum [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 1.93% |
Debt - Summary of Revolving Cre
Debt - Summary of Revolving Credit Facility (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Credit facility advances | $ 1,226,318,837 | |
Total notes payable, net | 1,219,503,264 | $ 1,115,752,899 |
Accumulated amortization related to deferred financing cost | 0 | $ (547,402) |
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 235,124,750 | |
Deferred financing costs, net on Credit Facility | (2,633,851) | |
Total notes payable, net | 232,490,899 | |
Accumulated amortization related to deferred financing cost | (288,296) | |
Ashley Oak Apartment Homes [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 24,867,500 | |
The Trails at Buda Ranch [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 21,025,000 | |
Deer Valley Apartments [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 22,982,500 | |
Carrington Park at Huffmeister [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 20,430,500 | |
Carrington Place [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 27,535,500 | |
Carrington at Champion Forest [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 25,121,250 | |
Audubon Park Apartments [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 16,602,500 | |
Oak Crossing [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 17,980,000 | |
Meritage at Steiner Ranch [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | $ 58,580,000 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Details) | Sep. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 1,226,318,837 |
Remainder of 2016 | 2,432,254 |
2,017 | 50,291,756 |
2,018 | 76,606,732 |
2,019 | 89,789,011 |
2,020 | 101,811,593 |
Thereafter | $ 905,387,491 |
Stockholders' Equity - General
Stockholders' Equity - General (Details) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||
Common and preferred stock, shares authorized (in shares) | 1,100,000,000 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 999,999,000 | 999,999,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | Jun. 11, 2014USD ($)$ / sharesshares | Jun. 12, 2009$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)shares | Sep. 30, 2016USD ($)installmentsvote / shares$ / sharesshares | Sep. 30, 2015USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2009USD ($)shares |
Class of Stock [Line Items] | ||||||||
Number of votes per share | vote / shares | 1 | |||||||
Value of shares issued | $ 0 | $ 78 | ||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 4,073,759 | |||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 39,580,847 | |||||||
Share-based compensation | $ 35,526 | $ 125,719 | 61,254 | $ 171,486 | ||||
Change in value of restricted common stock to Advisor | 228,409 | 27,431 | ||||||
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Fair value of shares of restricted stock (in shares) | $ 5,000,000 | 5,585,938 | $ 5,585,938 | $ 5,493,164 | ||||
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Restricted Stock Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of restricted common stock to advisor (in shares) | shares | 488,281.25 | |||||||
Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted common stock, weighted average remaining vesting terms | 1 year 11 months 18 days | |||||||
Compensation expense related to nonvested shares | 120,143 | $ 120,143 | ||||||
Restricted Stock [Member] | Steadfast Income Advisor, LLC [Member] | Tranche One [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares of restricted stock vesting percentage | 50.00% | |||||||
Restricted Stock [Member] | Steadfast Income Advisor, LLC [Member] | Tranche Two [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares of restricted stock vesting percentage | 50.00% | |||||||
Restricted Stock [Member] | Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Fair value of shares of restricted stock (in shares) | $ 2,792,969 | $ 2,792,969 | ||||||
Vested shares (in shares) | shares | 244,141 | 244,141 | ||||||
Restricted Stock [Member] | Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Restricted Stock Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 10.24 | |||||||
Common stock, basis of conversion, percentage of annual return on stockholders' invested capital | 7.00% | |||||||
Restricted Stock [Member] | General and Administrative Expense [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation | $ 35,526 | 125,719 | $ 61,254 | 171,486 | ||||
Restricted Stock [Member] | General and Administrative Expense [Member] | Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Change in value of restricted common stock to Advisor | $ 57,714 | $ 5,291 | $ 228,409 | $ 27,431 | ||||
Director [Member] | Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Restricted common stock, vesting installments | installments | 4 | |||||||
Private Offering and Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | $ 95,845,468 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 0 | 8 | ||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 0 | $ 78 | ||||||
Share price (in dollars per share) | $ / shares | $ 10.24 | $ 10.24 | ||||||
Common Stock [Member] | Steadfast REIT Investments, LLC [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock (in shares) | shares | 22,223 | 22,223 | ||||||
Value of shares issued | $ 200,007 | |||||||
Share price (in dollars per share) | $ / shares | $ 9 | |||||||
Common Stock [Member] | Private Offering and Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock (in shares) | shares | 76,732,395 | |||||||
Total offering proceeds | $ 679,572,220 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares at the beginning of the period (in shares) | 11,250 | 16,875 |
Granted shares (in shares) | 7,500 | 14,000 |
Vested shares (in shares) | (6,875) | (19,625) |
Nonvested shares at the end of the period (in shares) | 11,875 | 11,250 |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Weighted Average Fair Value (in dollars per share) | $ 11.44 | $ 10.35 |
Stockholders' Equity - Converti
Stockholders' Equity - Convertible Stock (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)shares | |
Class of Stock [Line Items] | |
Common stock, basis of conversion, percentage of annual return on original issue price of shares | 8.00% |
Common stock, conversion basis, percent enterprise value | 10.00% |
Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member] | |
Class of Stock [Line Items] | |
Issuance of common stock (in shares) | shares | 1,000 |
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member] | |
Class of Stock [Line Items] | |
Issuance of common stock (in shares) | shares | 1,000 |
Issuance of common stock | $ | $ 1,000 |
Common stock, basis of conversion, percentage of annual return on original issue price of shares | 8.00% |
Conversion basis, multiplier | 0.001 |
Convertible common stock, redemption amount | $ | $ 1 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) | 9 Months Ended | |
Sep. 30, 2016classshares | Dec. 31, 2015shares | |
Equity [Abstract] | ||
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | class | 1 | |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | class | 1 | |
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 |
Preferred stock, shares issued (in shares) | shares | 0 | 0 |
Stockholders' Equity - Distribu
Stockholders' Equity - Distribution Reinvestment Plan (Details) - Distribution Reinvestment Plan [Member] - USD ($) | Sep. 30, 2016 | Sep. 10, 2012 | Jul. 23, 2009 |
Class of Stock [Line Items] | |||
Share price (in dollars per share) | $ 9.73 | $ 9.5 | |
Sales commissions or dealer manager fees payable on shares sold under the plan | $ 0 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program and Redeemable Common Stock (Details) - USD ($) | Aug. 09, 2016 | Jul. 01, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||
Transfers to redeemable common stock | $ (1,000,000) | $ (1,000,000) | |||||
Share Repurchase Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Maximum value of shares allowed to be repurchase per quarter | $ 2,000,000 | $ 1,000,000 | |||||
Number of days notice | 30 days | ||||||
Share Repurchase Program [Member] | Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares that can be repurchased before the first anniversary of date of purchase | 0 | 0 | |||||
Share repurchase plan, disability or death holding period exemption period, maximum | 2 years | ||||||
Required holding period to be eligible to redeem shares under share repurchase plan | 1 year | ||||||
Stock repurchase plan, minimum redemption notice period | 15 days | ||||||
Stock repurchase plan, settlement period | 30 days | ||||||
Business days | 3 days | ||||||
Repurchase of common stock (in shares) | 93,939 | 289,397 | |||||
Stock repurchase plan, stock redeemed, value | $ 1,000,000 | $ 3,000,000 | |||||
Stock requested for redemption (in shares) | 470,377 | 422,879 | 1,084,838 | 422,879 | |||
Stock requested for redemption, value | $ 5,168,917 | $ 4,267,538 | $ 11,858,991 | $ 4,267,538 | |||
Stock repurchase plan, percentage of weighted-average number of shares outstanding, limit on repurchase | 5.00% | ||||||
Share Repurchase Program [Member] | Common Stock [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||||
Class of Stock [Line Items] | |||||||
Shares requested for redemption | $ 2,000,000 | $ 2,000,000 | |||||
Maximum [Member] | Share Repurchase Program [Member] | |||||||
Class of Stock [Line Items] | |||||||
Maximum value of shares allowed to be repurchase per quarter | $ 2,000,000 |
Stockholders' Equity - Schedu57
Stockholders' Equity - Schedule of Repurchase Prices Under Share Repurchase Program (Details) - Share Repurchase Program [Member] - Common Stock [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Class of Stock [Line Items] | |
Stock repurchase plan, repurchase price percentage, after primary offering, less than 1 year | 0.00% |
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 1 | 92.50% |
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 2 | 95.00% |
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 3 | 97.50% |
Stock repurchase plan, repurchase price percentage, after primary offering, anniversary year 4 | 100.00% |
Stockholders' Equity - Schedu58
Stockholders' Equity - Schedule of Repurchase Prices Under Share Repurchase Program (Footnote) (Details) - Common Stock [Member] - Share Repurchase Program [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Class of Stock [Line Items] | |
Required holding period to be eligible to redeem shares under share repurchase plan | 1 year |
Period after which holding period does not apply | 2 years |
Stockholders' Equity - Distri59
Stockholders' Equity - Distributions Declared (Details) - USD ($) | Sep. 10, 2012 | Sep. 09, 2012 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001958 | $ 0.001964 | ||||||
Less: dividends declared on participating securities | $ 41,090,264 | $ 55,076,217 | |||||||
Distributions payable | $ 4,487,297 | $ 4,487,297 | $ 4,487,297 | 4,668,261 | |||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001917 | $ 0.001958 | ||||||
Common stock, distribution rate, percentage | 7.00% | 7.00% | |||||||
Share price (in dollars per share) | $ 10.24 | $ 10.24 | $ 10.24 | ||||||
Less: dividends declared on participating securities | $ 13,767,424 | $ 13,888,802 | $ 41,090,264 | $ 41,210,771 | |||||
Common stock, distributions declared pursuant to DRP | $ 0 | $ 78 | |||||||
Common stock, distributions declared pursuant to DRP (in shares) | 0 | 8 | |||||||
Distributions payable | $ 4,487,297 | $ 4,487,297 | $ 4,487,297 | $ 4,668,261 |
Stockholders' Equity - Distri60
Stockholders' Equity - Distributions Paid (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class of Stock [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 13,772,501 | $ 13,887,973 | $ 41,271,228 | $ 41,360,816 |
Stock issued during period, dividend reinvestment plan (in shares) | 4,073,759 | |||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 39,580,847 | |||
Distributions paid, common stock, including distribution reinvestment plan | $ 13,887,973 | $ 41,360,894 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, dividend reinvestment plan (in shares) | 0 | 8 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 0 | $ 78 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Net loss attributable to the Company | $ (9,699,187) | $ (3,603,728) | $ (21,356,546) | $ (10,338,802) | $ (13,024,358) |
Less: dividends declared on participating securities | 46,391 | 90,485 | 138,165 | 268,505 | |
Net loss attributable to common stockholders | $ (9,745,578) | $ (3,694,213) | $ (21,494,711) | $ (10,607,307) | |
Weighted average number of common shares outstanding — basic and diluted (in shares) | 76,164,515 | 76,370,121 | 76,258,795 | 76,371,860 | |
Loss per common share — basic and diluted (in dollars per share) | $ (0.13) | $ (0.05) | $ (0.28) | $ (0.14) |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC and Affiliates [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | $ 12,925,479 | $ 11,692,664 | $ 36,373,973 | $ 32,933,896 | |
Related party transactions, payable (prepaid) | 2,130,372 | 2,130,372 | $ 2,607,720 | ||
Investment Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 7,843 | 7,843 | 1,169,770 | ||
Acquisition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Acquisition Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Property Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 533,527 | 533,527 | 520,127 | ||
Property Management Reimbursement of Onsite Personnel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 1,036,120 | 1,036,120 | 703,791 | ||
Property Management Other Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 52,011 | 52,011 | 52,237 | ||
Property Management Other Fees G&A [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Other Operating Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 149,985 | 149,985 | 51,029 | ||
Refinancing Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 310,134 | 310,134 | 0 | ||
Insurance Proceeds [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Construction Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 421,811 | 711,056 | 937,201 | 1,283,818 | |
Related party transactions, payable (prepaid) | 213,613 | 213,613 | 71,133 | ||
Construction Management Reimbursement of Labor Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 97,813 | 25,335 | 279,695 | 75,896 | |
Related party transactions, payable (prepaid) | 13,416 | 13,416 | 114,122 | ||
Insurance Deductible Reserve Account [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 62,093 | 37,245 | 136,582 | 37,245 | |
Related party transactions, payable (prepaid) | (186,277) | (186,277) | (74,489) | ||
Deferred Financing Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 84,022 | 0 | 139,229 | 0 | |
Related party transactions, payable (prepaid) | 0 | 0 | $ 0 | ||
Fees to Affiliates [Member] | Investment Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 3,525,330 | 3,473,724 | 10,537,619 | 10,370,441 | |
Fees to Affiliates [Member] | Acquisition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 187,735 | 960 | 187,735 | |
Fees to Affiliates [Member] | Property Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 1,621,239 | 1,570,816 | 4,793,878 | 4,621,570 | |
Fees to Affiliates [Member] | Property Management Other Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 422,190 | 427,791 | 1,331,412 | 1,262,163 | |
Fees to Affiliates [Member] | Property Management Other Fees G&A [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 33,427 | 0 | 33,427 | 0 | |
Acquisition Costs [Member] | Acquisition Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 0 | 0 | 7,145 | |
Operating, Maintenance and Management [Member] | Property Management Reimbursement of Onsite Personnel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 4,851,872 | 5,003,907 | 14,017,673 | 14,079,041 | |
General and Administrative Expense [Member] | Other Operating Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 311,955 | 292,300 | 982,560 | 1,046,087 | |
General and Administrative Expense [Member] | Refinancing Fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 1,493,727 | 0 | 3,283,737 | 0 | |
General and Administrative Expense [Member] | Insurance Proceeds [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, proceeds from transactions with related parties | $ 0 | $ 0 | $ (100,000) | $ 0 |
Related Party Arrangements - In
Related Party Arrangements - Investment Management Fee (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Investment Management Fees [Member] | |
Related Party Transaction [Line Items] | |
Investment management monthly fee, percentage of real properties or related assets acquired | 0.07% |
Related Party Arrangements - Ac
Related Party Arrangements - Acquisition Fees and Expenses (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member] - Acquisition Fees and Expenses [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transaction [Line Items] | |
Acquisition fee, percentage of purchase price of real property or related asset | 2.00% |
Acquisition fees and expenses, maximum, percentage of contract purchase price | 6.00% |
Related Party Arrangements - Pr
Related Party Arrangements - Property Management Fees and Expenses (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Property Manager [Member] | |
Related Party Transaction [Line Items] | |
Property management, oversight fee, percent | 1.00% |
Steadfast Management Company, Inc. [Member] | Property Management Agreement [Member] | |
Related Party Transaction [Line Items] | |
Property management agreement, notice of termination breach | 30 days |
Steadfast Management Company, Inc. [Member] | Property Manager [Member] | Property Management Agreement [Member] | |
Related Party Transaction [Line Items] | |
Property management agreement, initial term | 1 year |
Property management agreement, notice of termination option | 60 days |
Steadfast Management Company, Inc. [Member] | Minimum [Member] | Property Manager [Member] | Property Management Agreement [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percent | 2.50% |
Steadfast Management Company, Inc. [Member] | Maximum [Member] | Property Manager [Member] | Property Management Agreement [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percent | 3.75% |
Related Party Arrangements - Co
Related Party Arrangements - Construction Management Fees (Details) - Affiliated Entity [Member] - Pacific Coast Land & Construction, Inc. [Member] - Construction Management Agreement [Member] | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transaction [Line Items] | |
Construction management agreement, termination notification period | 30 days |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 5.00% |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 12.00% |
Related Party Arrangements - Ot
Related Party Arrangements - Other Operating Expense Reimbursements (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member] - Other Operating Expense Reimbursement [Member] | 9 Months Ended |
Sep. 30, 2016quarter | |
Related Party Transaction [Line Items] | |
Operating expenses limited, number of quarters | 4 |
Other operating expense reimbursement, percentage of average invested assets, threshold | 2.00% |
Other operating expense reimbursement, percentage of net income, threshold | 25.00% |
Average invested assets calculation period | 12 months |
Related Party Arrangements - Di
Related Party Arrangements - Disposition Fee (Details) - Steadfast Income Advisor, LLC [Member] - Steadfast Income Advisor, LLC [Member] | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Disposition Fees [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 1.50% |
Disposition fee, maximum brokerage commission paid threshold, percent | 50.00% |
Disposition fee, maximum, percentage of sales price | 3.00% |
Acquisition fees and expenses, maximum, percentage of contract purchase price | 6.00% |
Disposition Fees Range 1 [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 0.50% |
Share price (in dollars per share) | $ 9 |
Disposition Fees Range 2 [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 0.75% |
Disposition Fees Range 2 [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 9.01 |
Disposition Fees Range 2 [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 10.24 |
Disposition Fees Range 3 [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 1.00% |
Disposition Fees Range 3 [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 10.25 |
Disposition Fees Range 3 [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 11.24 |
Disposition Fees Range 4 [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 1.25% |
Disposition Fees Range 4 [Member] | Minimum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 11.25 |
Disposition Fees Range 4 [Member] | Maximum [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ 12 |
Disposition Fees Range 5 [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, percent of sales price | 1.50% |
Share price (in dollars per share) | $ 12.01 |
Other Operating Expenses [Member] | |
Related Party Transaction [Line Items] | |
Other operating expense reimbursement, percentage of average invested assets, threshold | 2.00% |
Other operating expense reimbursement, percentage of net income, threshold | 25.00% |
Related Party Arrangements - Re
Related Party Arrangements - Refinancing Fee (Details) - Steadfast Income Advisor, LLC and Affiliates [Member] - Steadfast Income Advisor, LLC [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | ||||
Related party transaction, expenses from transactions with related party | $ 12,925,479 | $ 11,692,664 | $ 36,373,973 | $ 32,933,896 |
General and Administrative Expense [Member] | Refinancing Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Refinancing fee, percentage | 0.50% | |||
Related party transaction, expenses from transactions with related party | $ 1,493,727 | $ 0 | $ 3,283,737 | $ 0 |
Related Party Arrangements - 70
Related Party Arrangements - Restricted Stock Agreement (Details) - Steadfast Income Advisor, LLC [Member] $ / shares in Units, $ in Millions | Jun. 11, 2014USD ($)$ / sharesshares |
Restricted Stock [Member] | Tranche One [Member] | |
Related Party Transaction [Line Items] | |
Shares of restricted stock vesting percentage | 50.00% |
Restricted Stock [Member] | Tranche Two [Member] | |
Related Party Transaction [Line Items] | |
Shares of restricted stock vesting percentage | 50.00% |
Restricted Stock Agreement [Member] | Steadfast Income Advisor, LLC [Member] | |
Related Party Transaction [Line Items] | |
Issuance of restricted common stock to advisor (in shares) | shares | 488,281.25 |
Issuance of restricted common stock to Advisor | $ | $ 5 |
Restricted Stock Agreement [Member] | Steadfast Income Advisor, LLC [Member] | Restricted Stock [Member] | |
Related Party Transaction [Line Items] | |
Share price (in dollars per share) | $ / shares | $ 10.24 |
Common stock, basis of conversion, percentage of annual return on stockholders' invested capital | 7.00% |
Incentive Award Plan and Inde71
Incentive Award Plan and Independent Director Compensation (Details) | Aug. 09, 2016director | Aug. 11, 2015shares | Aug. 10, 2015shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($) | Dec. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation | $ | $ 35,526 | $ 125,719 | $ 61,254 | $ 171,486 | ||||
Private Offering [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Issuance of common stock | $ | $ 2,000,000 | |||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 7,500 | 14,000 | ||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of directors | director | 3 | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of restricted stock vesting percentage | 25.00% | |||||||
Restricted common stock, award vesting period | 3 years | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Director One [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,500 | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Director Two [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,500 | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Director Three [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,500 | |||||||
Incentive Award Plan [Member] | Restricted Stock [Member] | Director [Member] | Larry H. Dale [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,000 | |||||||
Incentive Award Plan [Member] | Restricted Stock [Member] | Director [Member] | Kerry D. Vandell [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,000 | |||||||
Incentive Award Plan [Member] | Restricted Stock [Member] | Director [Member] | Don B. Saulic [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 5,000 | |||||||
Initial Election [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 5,000 | |||||||
Re-Election [Member] | Restricted Stock [Member] | Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted shares (in shares) | 2,500 |
Derivative Financial Instrume72
Derivative Financial Instruments - Schedule of Interest Rate Derivative Instruments (Details) - Interest Rate Cap [Member] - Cash Flow Hedging [Member] - Not Designated as Hedging Instrument [Member] | Sep. 30, 2016USD ($)instrument | Dec. 31, 2015USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 44 | 30 |
Notional Amount | $ 995,112,000 | $ 637,110,000 |
Weighted Average Rate Cap | 2.69% | 2.68% |
Fair Value | $ 90,302 | $ 298,143 |
LIBOR [Member] | ||
Derivative [Line Items] | ||
Variable Rate | 0.53% | 0.43% |
Derivative Financial Instrume73
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative [Line Items] | |||||
Unrealized loss on derivatives | $ 466,841 | $ 1,908,550 | |||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized loss on derivatives | $ 21,570 | $ 540,376 | 466,841 | 1,908,550 | |
Acquired interest rate cap agreements | 0 | $ 231,000 | 259,000 | $ 296,250 | |
Deferred Financing Costs and Other Assets, Net [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Fair value of interest rate cap agreements | 90,302 | 90,302 | $ 298,143 | ||
Interest Expense [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized loss on derivatives | $ 21,570 | $ 466,841 |
Subsequent Events - Distributio
Subsequent Events - Distributions Paid (Details) - USD ($) | Nov. 01, 2016 | Oct. 03, 2016 | Sep. 30, 2015 | Sep. 30, 2015 |
Subsequent Event [Line Items] | ||||
Distributions paid, common stock, including distribution reinvestment plan | $ 13,887,973 | $ 41,360,894 | ||
Dividend Paid [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Distributions paid, common stock, including distribution reinvestment plan | $ 4,636,500 | $ 4,487,297 |
Subsequent Events - Shares Repu
Subsequent Events - Shares Repurchased (Details) - Share Repurchase Program [Member] - Common Stock [Member] - USD ($) | Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||
Repurchase of common stock (in shares) | 93,939 | 289,397 | |
Stock repurchase plan, stock redeemed, value | $ 1,000,000 | $ 3,000,000 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Repurchase of common stock (in shares) | 189,743 | ||
Stock repurchase plan, stock redeemed, value | $ 2,000,000 | ||
Redemption price per share (in dollars per share) | $ 10.54 |
Subsequent Events - Distribut76
Subsequent Events - Distributions Declared (Details) - $ / shares | Nov. 08, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 | $ 0.001958 | $ 0.001964 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001964 |