Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 74,650,288 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Real Estate: | ||
Land | $ 126,002,217 | $ 106,932,041 |
Building and improvements | 1,037,152,532 | 916,068,353 |
Tenant origination and absorption costs | 1,766,904 | 0 |
Other intangible assets | 2,644,263 | 2,644,263 |
Total real estate held for investment, cost | 1,167,565,916 | 1,025,644,657 |
Less accumulated depreciation and amortization | (216,584,185) | (182,081,988) |
Total real estate held for investment, net | 950,981,731 | 843,562,669 |
Real estate held for sale, net | 0 | 183,152,661 |
Total real estate, net | 950,981,731 | 1,026,715,330 |
Cash and cash equivalents | 97,309,038 | 171,228,485 |
Restricted cash | 15,576,439 | 31,005,231 |
Investment in unconsolidated joint venture | 13,818,724 | 8,133,156 |
Rents and other receivables | 2,280,501 | 2,737,800 |
Assets related to real estate held for sale | 0 | 2,862,292 |
Other assets | 2,321,271 | 3,258,584 |
Total assets | 1,082,287,704 | 1,245,940,878 |
Liabilities: | ||
Accounts payable and accrued liabilities | 30,124,758 | 28,004,830 |
Notes payable: | ||
Mortgage notes payable, net | 721,917,291 | 625,302,105 |
Credit facility, net | 52,333,769 | 90,222,098 |
Notes payable related to real estate held for sale, net | 0 | 160,261,735 |
Total notes payable, net | 774,251,060 | 875,785,938 |
Distributions payable | 3,411,890 | 4,595,301 |
Due to affiliates | 1,537,339 | 1,967,129 |
Liabilities related to real estate held for sale | 0 | 4,939,907 |
Total liabilities | 809,325,047 | 915,293,105 |
Commitments and contingencies (Note 11) | ||
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 | 658,186,441 | 664,110,915 |
Cumulative distributions and net losses | (385,972,484) | (334,217,946) |
Total stockholders’ equity | 272,962,657 | 330,647,773 |
Total liabilities and stockholders’ equity | 1,082,287,704 | 1,245,940,878 |
Common Stock [Member] | ||
Notes payable: | ||
Distributions payable | 3,411,890 | 4,595,301 |
Stockholders’ Equity: | ||
Common stock | 748,690 | 754,794 |
Convertible Stock [Member] | ||
Stockholders’ Equity: | ||
Common stock | $ 10 | $ 10 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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) | 74,868,939 | 76,202,862 |
Stock, shares outstanding (in shares) | 74,868,939 | 76,202,862 |
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 (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Rental income | $ 31,885,583 | $ 49,068,474 | $ 93,133,369 | $ 146,047,621 |
Tenant reimbursements and other | 4,356,135 | 6,523,633 | 12,620,283 | 18,943,156 |
Total revenues | 36,241,718 | 55,592,107 | 105,753,652 | 164,990,777 |
Expenses: | ||||
Operating, maintenance and management | 10,457,329 | 16,392,711 | 28,936,191 | 44,808,803 |
Real estate taxes and insurance | 5,657,098 | 9,275,615 | 18,329,576 | 28,982,886 |
Fees to affiliates | 4,113,139 | 5,682,920 | 11,854,429 | 16,972,905 |
Depreciation and amortization | 12,579,032 | 17,850,748 | 34,781,722 | 53,852,540 |
Interest expense | 8,452,962 | 11,655,008 | 24,021,396 | 33,763,957 |
Loss on debt extinguishment | 0 | 401,674 | 2,282,247 | 401,674 |
General and administrative expenses | 1,151,340 | 2,042,856 | 4,835,308 | 5,218,885 |
Total expenses | 42,410,900 | 63,301,532 | 125,040,869 | 184,001,650 |
Loss before other (expense) income | (6,169,182) | (7,709,425) | (19,287,217) | (19,010,873) |
Other (expense) income: | ||||
Equity in loss from unconsolidated joint venture | (287,540) | 0 | (3,102,044) | 0 |
Gain on sales of real estate, net | 0 | 5,382,847 | 81,247,054 | 5,382,847 |
Total other (expense) income | (287,540) | 5,382,847 | 78,145,010 | 5,382,847 |
Net (loss) income | $ (6,456,722) | $ (2,326,578) | $ 58,857,793 | $ (13,628,026) |
(Loss) income per common share — basic and diluted (in dollars per share) | $ (0.09) | $ (0.03) | $ 0.78 | $ (0.18) |
Weighted average number of common shares outstanding — basic (in shares) | 74,928,285 | 75,707,400 | 75,164,006 | 75,884,934 |
Weighted average number of common shares outstanding — diluted (in shares) | 74,940,350 | 75,707,400 | 75,176,774 | 75,884,934 |
Distributions declared per common share (in dollars per share) | $ 0.14 | $ 0.181 | $ 1.47 | $ 0.536 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - 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 (in shares) at Dec. 31, 2016 | 76,202,862 | 1,000 | ||||
Beginning balance at Dec. 31, 2016 | $ 320,428,243 | $ 762,029 | $ 10 | $ 672,018,194 | $ (352,351,990) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 7,500 | |||||
Issuance of common stock | $ 75 | (75) | ||||
Repurchase of common stock (in shares) | (730,953) | |||||
Repurchase of common stock | (8,000,000) | $ (7,310) | (7,992,690) | |||
Distributions declared | (54,339,823) | (54,339,823) | ||||
Amortization of stock-based compensation | 85,486 | 85,486 | ||||
Net income | 72,473,867 | 72,473,867 | ||||
Ending balance (in shares) at Dec. 31, 2017 | 75,479,409 | 1,000 | ||||
Ending balance at Dec. 31, 2017 | 330,647,773 | $ 754,794 | $ 10 | 664,110,915 | (334,217,946) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock (in shares) | 7,500 | |||||
Issuance of common stock | (3,102,044) | $ 75 | (75) | |||
Repurchase of common stock (in shares) | (617,970) | |||||
Repurchase of common stock | (6,000,000) | $ (6,179) | (5,993,821) | |||
Distributions declared | (110,612,331) | $ (110,612,331) | (110,612,331) | |||
Amortization of stock-based compensation | 69,422 | 69,422 | ||||
Net income | 58,857,793 | 58,857,793 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 74,868,939 | 1,000 | ||||
Ending balance at Sep. 30, 2018 | $ 272,962,657 | $ 748,690 | $ 10 | $ 658,186,441 | $ (385,972,484) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 58,857,793 | $ (13,628,026) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 34,781,722 | 53,852,540 |
Amortization of deferred financing costs | 799,989 | 1,410,865 |
Amortization of stock-based compensation | 69,422 | 68,191 |
Amortization of loan premiums | (222,466) | (930,922) |
Change in fair value of interest rate cap agreements | (103,506) | 606,690 |
Gain on sales of real estate | (81,247,054) | (5,382,847) |
Loss on debt extinguishment | 2,282,247 | 401,674 |
Insurance claim recoveries | (1,005) | (45,660) |
Loss on disposal of building and improvements | 427 | 14,613 |
Gain on short-term investments | 0 | (278,883) |
Equity in loss from unconsolidated joint venture | 3,102,044 | 0 |
Changes in operating assets and liabilities: | ||
Rents and other receivables | 457,299 | (47,527) |
Other assets | 1,244,119 | 1,253,864 |
Accounts payable and accrued liabilities | 358,873 | (699,621) |
Due to affiliates | (427,837) | (723,313) |
Net cash provided by operating activities | 19,952,067 | 35,871,638 |
Cash Flows from Investing Activities: | ||
Proceeds from short-term investments | 0 | 30,363,633 |
Cash contributions to unconsolidated joint venture | (2,931,578) | 0 |
Cash distributions from unconsolidated joint venture | 530,100 | 0 |
Acquisition of real estate investments | (67,886,062) | 0 |
Additions to real estate investments | (6,754,330) | (12,311,010) |
Escrow deposits for pending real estate acquisitions | (2,600,000) | 0 |
Purchase of interest rate cap agreements | (203,300) | (37,350) |
Proceeds from sales of real estate, net | 176,926,493 | 10,582,230 |
Proceeds from insurance claims | 1,005 | 45,660 |
Net cash provided by investing activities | 97,082,328 | 28,643,163 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of mortgage notes payable | 106,482,000 | 303,751 |
Principal payments on mortgage notes payable | (158,021,981) | (7,796,360) |
Principal payments on credit facility | (38,410,500) | 0 |
Payment of deferred financing costs | (1,323,128) | (44,866) |
Payment of debt extinguishment costs | (175,575) | 0 |
Distributions to common stockholders | (111,795,742) | (40,859,650) |
Repurchase of common stock | (6,000,000) | (6,000,000) |
Net cash used in financing activities | (209,244,926) | (54,397,125) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (92,210,531) | 10,117,676 |
Cash, cash equivalents and restricted cash, beginning of period | 205,096,008 | 93,777,878 |
Cash, cash equivalents and restricted cash, end of period | 112,885,477 | 103,895,554 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 23,639,700 | 32,497,952 |
Supplemental Disclosure of Noncash Transactions: | ||
Decrease in distributions payable | (1,183,411) | (167,021) |
Assumption of mortgage notes payable to acquire real estate | 65,000,000 | 0 |
Application of escrow deposits to acquire real estate | 2,600,000 | 0 |
Mortgage notes payable assumed by buyer in connection with property sales | (67,140,194) | 0 |
Assets and liabilities deconsolidated in connection with the Second Closing Properties: | ||
Real estate, net | (98,350,076) | 0 |
Notes payable, net | 76,336,778 | 0 |
Restricted cash | (913,408) | 0 |
Accounts payable and accrued liabilities | 674,912 | 0 |
Decrease in accounts payable and accrued liabilities from additions to investment in unconsolidated joint venture | (398,817) | 0 |
Decrease in accounts payable and accrued liabilities from additions to real estate investments | (122,517) | (444,078) |
Decrease in due to affiliates from additions to real estate investments | $ (1,953) | $ (2,121) |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2018 | |
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 elected to be taxed 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 7 (Stockholders’ Equity). The Company owns a diverse portfolio of real estate investments, primarily in the multifamily sector, located throughout the United States. As of September 30, 2018 , the Company owned 39 multifamily properties comprising a total of 10,622 apartment homes, an additional 21,130 square feet of rentable commercial space at two properties, and a 10% interest in one unconsolidated joint venture that owned 20 multifamily properties with a total of 4,584 apartment homes. 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 (defined and 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 19, 2010, the Company commenced its initial public offering of up to 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 offered 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 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 with distributions earned beginning on December 1, 2014. Through December 1, 2014, the Company sold 76,095,116 shares of common stock in the Public Offering for gross offering proceeds of $769,573,363 , including 4,073,759 shares of common stock issued pursuant to the DRP for gross offering proceeds of $39,580,847 . 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 determined an estimated value per share of the Company’s common stock of $11.44 as of December 31, 2015. On February 15, 2017, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $11.65 as of December 31, 2016. On March 13, 2018, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $10.84 as of December 31, 2017. On May 9, 2018, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $9.84 , which represents the estimated value per share of the Company’s common stock of $10.84 as of December 31, 2017, less the special distribution of $1.00 per share of common stock that was paid to stockholders of record as of the close of business on April 20, 2018. The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement by and among the Company, Steadfast Income REIT Operating Partnership, L.P., a Delaware limited partnership formed on July 6, 2009 (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 term of the Advisory Agreement expires on November 15, 2018. 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. Stira Capital Markets Group, LLC (formerly known as Steadfast Capital Markets Group, LLC) (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager for the Public Offering. The Advisor, along with the Dealer Manager, also provides marketing, investor relations and other administrative services on the Company’s behalf. Substantially all of the Company’s business is conducted through the Operating Partnership. The Company is the sole general partner of the Operating Partnership. The Company and Advisor entered into an Amended and Restated Limited Partnership Agreement of the Operating Partnership (the “Partnership Agreement”) on September 28, 2009. 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 and operating real properties, the Operating Partnership will 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, 2018 | |
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, 2017 , other than the adoption of Accounting Standards Update (“ASU”) 2014-09, ASU 2016-18 and ASU 2017-05, 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, 2017 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 29, 2018. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the consolidated variable interest entity (“VIE”) that the Company controls and of which the Company is the primary beneficiary, and the Operating Partnership’s 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 Operating Partnership is a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and consolidates, the Operating Partnership. 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, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . 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, 2017 . 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. 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 - The Company has entered into certain interest rate cap agreements. These derivatives 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 in the accompanying consolidated balance sheets. Changes in the fair value of the interest rate cap agreements are recorded as interest expense in the accompanying consolidated statements of operations. 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, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 358,452 $ — December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 51,646 $ — 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, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, 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, 2018 and December 31, 2017 , the fair value of the notes payable was $762,196,690 and $878,004,294 , respectively, compared to the carrying value of $774,251,060 and $875,785,938 , respectively. The Company has determined that its notes payable are classified as Level 3 within the fair value hierarchy. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants and cash placed with a qualified intermediary for reinvestment under Section 1031 of the Internal Revenue Code. As of September 30, 2018 and December 31, 2017 , the Company had a restricted cash balance of $15,576,439 and $31,005,231 , respectively, which represents $0 and $17,197,810 of cash proceeds from property sales that are being held by qualified intermediaries as of September 30, 2018 and December 31, 2017 , respectively, and $15,576,439 and $13,807,421 set aside as impounds for future property tax payments, property insurance payments and tenant improvement payments as required by agreements with the Company’s lenders as of September 30, 2018 and December 31, 2017 , respectively. The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 : September 30, 2018 2017 Cash and cash equivalents $ 97,309,038 $ 80,224,237 Restricted cash 15,576,439 23,671,317 Total cash, cash equivalents and restricted cash $ 112,885,477 $ 103,895,554 The beginning of period restricted cash balance for the nine months ended September 30, 2018 and 2017, includes $2,862,292 and $12,086,960 that is included in assets related to real estate held for sale as of December 31, 2017 and 2016, respectively, on the accompanying consolidated balance sheet. All such amounts were disposed of in conjunction with the property sales during the nine months ended September 30, 2018 and year ended December 31, 2017 . Investments in Unconsolidated Joint Ventures The Company accounts for investments in unconsolidated joint venture entities in which it may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost and subsequently adjusted to reflect additional contributions or distributions and the Company’s proportionate share of equity in the joint venture’s income (loss). The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in income (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. The Company has elected the cumulative earnings approach to classify cash receipts from the unconsolidated joint venture on the accompanying consolidated statements of cash flows. Distribution Policy The Company has elected to be taxed as, and qualifies as, a REIT beginning with its taxable year ending December 31, 2010. 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 during the three months ended March 31, 2018, June 30, 2018 and September 30, 2018, were based on daily record dates and calculated at a rate of $0.001964 per share per day, $0.001683 , and $0.001519 per share per day, respectively. Distributions during the nine months ended September 30, 2017 , were based on daily record dates and calculated at a rate of $0.001964 per share per day. Each day during the nine months ended September 30, 2018 and 2017 , was a distribution record date. 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, 2018 , the Company declared aggregate distributions of $0.140 and $1.470 per common share, respectively, including a special distribution the Company’s board of directors declared in the amount $1.00 per share of common stock to stockholders of record as of the close of business on April 20, 2018 . During the three and nine months ended September 30, 2017 , the Company declared distributions of $0.181 and $0.536 per common share, respectively. Per Share Data Basic earnings (loss) per share attributable to common stockholders for all periods presented are computed by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share is 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 assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings (loss) per share. Basic earnings (loss) per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income (loss) remaining after deduction of dividends declared during the period. The undistributed earnings (loss) are allocated to all outstanding common shares based on the relative percentage of each class of shares. The Company does not have any participating securities outstanding other than the shares of common stock and the unvested restricted common stock during the periods presented. Earnings (loss) attributable to the unvested restricted common stock are deducted from earnings (loss) in the computation of per share amounts where applicable. Reclassifications Certain amounts in the Company’s prior period condensed consolidated unaudited financial statements were reclassified to conform to the current period presentation. These reclassifications did not change the results of operations of prior periods. On January 1, 2018 , the Company adopted ASU 2016-18, as further described below. As a result, the Company no longer presents transfers between cash and restricted cash in the consolidated statements of cash flows. Instead, restricted cash is included with cash and cash equivalents when reconciling the beginning of the period and end of the period total amounts shown on the consolidated statements of cash flows. 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. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( Topic 606 ) (“ASU 2014-09”). ASU 2014-09 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. ASU 2014-09 supersedes the revenue requirements in Revenue Recognition ( Topic 605 ) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 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 ASU 2014-09 by one year, which resulted in ASU 2014-09 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 selected the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and adopted ASU 2014-09 effective January 1, 2018. The Company identified limited sources of revenues from non-lease components, and the Company did not experience a material impact on its revenue recognition in the consolidated financial statements upon adoption. Additionally, there was no impact to the Company’s recognition of rental revenue, as rental revenue from leasing arrangements was specifically excluded from ASU 2014-09. In February 2016, the FASB issued ASU 2016-02, Leases , (“ASU 2016-02”), 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. ASU 2016-02 requires a modified retrospective transition approach. ASU 2016-02 will be effective in the first quarter of 2019 and allows for early adoption. The Company is evaluating the impact of ASU 2016-02 on its leases both as it relates to the Company acting as a lessor and as a lessee. Based on the preliminary results of its evaluation, as it relates to the former, the Company does not expect any material impact on the recognition of leases in the consolidated financial statements because under ASU 2016-02, lessors will continue to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. As it relates to the latter, the Company does not expect a material impact on the recognition of leases in the consolidated financial statements because the quantity of leased equipment by the Company is limited. The Company is finalizing its evaluation of ASU 2016-02 and plans to adopt ASU 2016-02 on January 1, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures and believes that rents and other receivables in its consolidated balance sheets may be impacted by the adoption of ASU 2016-13. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance January 1, 2018 and applied it retrospectively. As a result of adopting ASU 2016-18, the Company began presenting restricted cash along with cash and cash equivalents in its consolidated statements of cash flows. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“Subtopic 610-20”): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”), that clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. ASU 2017-05 also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. Subtopic 610-20, which was issued in May 2014 as part of ASU 2014-09 (discussed above), provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. An entity is required to apply amendments in ASU 2017-05 at the same time it applies the amendments in ASU 2014-09 (discussed above). ASU 2017-05 requires modified retrospective application and is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2014-09 and ASU 2017-05 on January 1, 2018, and experienced an impact on the gain recognized related to the sale of the Second Closing Properties (as defined in Note 3 (Real Estate)). The sale of the Second Closing Properties is considered a partial sale and the Company no longer controlled the Second Closing Properties after the sale. The retained noncontrolling interest was recognized at fair value and a full gain on the sale was recognized under ASU 2014-09. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). The FASB issued ASU 2017-09 to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation , to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 requires prospective application and is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Upon adoption of ASU 2017-09 on January 1, 2018, the Company did not experience a material impact. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). The FASB issued ASU 2018-11 to clarify ASU 2016-02. The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies ASU 2016-02 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with Topic 606. Otherwise, the entity must account for the combined component as an operating lease in accordance with Topic 842. For entities that have not adopted Topic 842 before the issuance of ASU 2018-11, the effective date and transition requirements for ASU 2018-11 related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement , based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , including the consideration of costs and benefits. ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements and related disclosures and believes that certain disclosures of interest rate cap agreements in its consolidated financial statements may be impacted by the adoption of ASU 2018-13. |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Property Acquisitions During the nine months ended September 30, 2018 , the Company acquired each of the following two properties through Section 1031 exchanges: Purchase Price Allocation Property Name Location Purchase Date Units Land Buildings and Improvements Tenant Origination and Absorption Costs Total Purchase Price Double Creek Flats Plainfield, IN 5/7/2018 240 $ 1,306,880 $ 30,081,288 $ 463,911 $ 31,852,079 Jefferson at Perimeter Apartments Dunwoody, GA 6/11/2018 504 17,763,296 84,567,694 1,302,993 103,633,983 744 $ 19,070,176 $ 114,648,982 $ 1,766,904 $ 135,486,062 As of September 30, 2018 , the Company owned 39 multifamily properties encompassing in the aggregate 10,622 apartment homes and an additional 21,130 square feet of rentable commercial space at two properties. The total purchase price of the Company’s real estate portfolio was $1,131,486,219 . As of September 30, 2018 and December 31, 2017 , the Company’s portfolio was approximately 94.2% and 93.8% occupied and the average monthly rent was $1,058 and $1,037 , respectively. As of September 30, 2018 and December 31, 2017 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: September 30, 2018 Assets Land Building and Improvements Tenant Origination and Absorption Costs Other Intangible Assets Total Real Estate Held for Investment Real Estate Held for Sale Investments in real estate $ 126,002,217 $ 1,037,152,532 $ 1,766,904 $ 2,644,263 $ 1,167,565,916 $ — Less: Accumulated depreciation and amortization — (214,602,209 ) (1,167,901 ) (814,075 ) (216,584,185 ) — Net investments in real estate and related lease intangibles $ 126,002,217 $ 822,550,323 $ 599,003 $ 1,830,188 $ 950,981,731 $ — December 31, 2017 Assets Land Building and Improvements Tenant Origination and Absorption Costs Other Intangible Assets Total Real Estate Held for Investment Real Estate Held for Sale Investments in real estate $ 106,932,041 $ 916,068,353 $ — $ 2,644,263 $ 1,025,644,657 $ 222,652,327 Less: Accumulated depreciation and amortization — (181,382,789 ) — (699,199 ) (182,081,988 ) (39,499,666 ) Net investments in real estate and related lease intangibles $ 106,932,041 $ 734,685,564 $ — $ 1,945,064 $ 843,562,669 $ 183,152,661 Depreciation and amortization expenses were $12,579,032 and $34,781,722 for the three and nine months ended September 30, 2018 , and $17,850,748 and $53,852,540 for the three and nine months ended September 30, 2017 , respectively. Depreciation of the Company’s buildings and improvements was $11,657,288 and $33,498,945 for the three and nine months ended September 30, 2018 , and $17,812,456 and $53,737,664 for the three and nine months ended September 30, 2017 , respectively. Amortization of the Company’s tenant origination and absorption costs was $883,452 and $1,167,901 for the three and nine months ended September 30, 2018 , respectively. There was no amortization of the Company’s tenant origination and absorption costs for the three and nine months ended September 30, 2017 . Tenant origination and absorption costs had a weighted-average amortization period as of the date of acquisition of less than one year. Amortization of the Company’s other intangible assets was $38,292 and $114,876 for the three and nine months ended September 30, 2018 , and $38,292 and $114,876 for the three and nine months ended September 30, 2017 , respectively. The future amortization of the Company’s acquired other intangible assets as of September 30, 2018 , and thereafter is as follows: October 1 through December 31, 2018 $ 38,292 2019 153,168 2020 153,168 2021 153,168 2022 153,168 Thereafter 1,179,224 $ 1,830,188 Operating Leases As of September 30, 2018 , the Company’s real estate portfolio comprised 10,622 residential apartment homes and was 95.7% leased by a diverse group of residents. For each of the three and nine months ended September 30, 2018 and 2017 , the Company’s real estate portfolio earned in excess of 99% and less than 1% of its rental income from residential tenants and commercial office tenants, respectively. 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 0.67 to 6.50 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 $3,068,718 and $3,339,602 as of September 30, 2018 and December 31, 2017 , 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, 2018 , and thereafter is as follows: October 1 through December 31, 2018 $ 65,260 2019 180,858 2020 74,313 2021 76,535 2022 78,844 Thereafter 185,501 $ 661,311 As of September 30, 2018 and December 31, 2017 , 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. Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. On November 10, 2017, the Company, BREIT Steadfast MF JV LP (the “Joint Venture”), BREIT Steadfast MF Parent LLC (“BREIT LP”) and BREIT Steadfast MF GP LLC (“BREIT GP”, and together with BREIT LP, “BREIT”), executed a Contribution Agreement (the “Contribution Agreement”) whereby the Company agreed to contribute a portfolio of 20 properties owned by the Company to the Joint Venture in exchange for a combination of cash and a 10% ownership interest in the Joint Venture (the “Transaction”). BREIT LP owns a 90% interest in the Joint Venture and BREIT GP serves as the general partner of the Joint Venture. Each of BREIT LP and BREIT GP is a wholly-owned subsidiary of Blackstone Real Estate Income Trust, Inc. SIR LANDS Holdings, LLC, a wholly-owned subsidiary of the Company, holds the Company’s 10% interest in the Joint Venture. The 20 properties contributed by the Company to the Joint Venture consist of properties located in Austin, Dallas and San Antonio, Texas, Nashville, Tennessee and Louisville, Kentucky (the “LANDS Portfolio”). On November 15, 2017 (the “First Closing Date”), the Company, through certain indirect wholly-owned subsidiaries, contributed 12 apartment communities (the “First Closing Properties”) to indirect, wholly-owned subsidiaries of the Joint Venture. On January 31, 2018 (the “Second Closing Date”), the Company, through certain indirect wholly-owned subsidiaries, contributed eight apartment communities (the “Second Closing Properties”) to indirect, wholly-owned subsidiaries of the Joint Venture. For additional information on the Transaction, see Note 4 (Investment in Unconsolidated Joint Venture). The aggregate purchase price of the First Closing Properties was $318,576,792 , exclusive of closing costs. On the First Closing Date, the Company sold a 90% interest in the First Closing Properties for $335,430,000 , resulting in a gain of $76,135,530 , which includes reductions to the net book value of the properties due to historical depreciation and amortization expense. The aggregate purchase price of the Second Closing Properties was $117,240,032 , exclusive of closing costs. On the Second Closing Date, the Company sold a 90% interest in the Second Closing Properties for $125,370,000 , resulting in a gain of $38,523,427 , which includes reductions to the net book value of the properties due to historical depreciation and amortization expense. The purchaser of the First Closing Properties and Second Closing Properties was the Joint Venture. 2018 Property Dispositions The Moorings Apartments On November 30, 2012 , the Company, through an indirect wholly owned subsidiary, acquired The Moorings Apartments , a multifamily property located in Roselle, Illinois , containing 216 apartment homes. The purchase price of The Moorings Apartments was $20,250,000 , exclusive of closing costs. On January 5, 2018 , the Company sold The Moorings Apartments for $28,100,000 , resulting in a gain of $9,658,823 , which includes reductions to the net book value of the property due to historical depreciation and amortization expense. The purchaser of The Moorings Apartments was not affiliated with the Company or the Advisor. Arrowhead Apartment Homes On November 30, 2012 , the Company, through an indirect wholly owned subsidiary, acquired Arrowhead Apartment Homes , a multifamily property located in Palatine, Illinois , containing 200 apartment homes. The purchase price of the Arrowhead Apartment Homes was $16,750,000 , exclusive of closing costs. On January 31, 2018 , the Company sold the Arrowhead Apartment Homes for $23,600,000 , resulting in a gain of $8,928,691 , which includes reductions to the net book value of the property due to historical depreciation and amortization expense. The purchaser of the Arrowhead Apartment Homes was not affiliated with the Company or the Advisor. Willow Crossing Apartments On November 20, 2013 , the Company, through an indirect wholly owned subsidiary, acquired Willow Crossing Apartments , a multifamily property located in Elk Grove, Illinois , containing 579 apartment homes. The purchase price of the Willow Crossing Apartments was $58,000,000 , exclusive of closing costs. On February 28, 2018 , the Company sold the Willow Crossing Apartments for $79,000,000 , resulting in a gain of $24,136,113 , which includes reductions to the net book value of the property due to historical depreciation and amortization expense. The purchaser of the Willow Crossing Apartments was not affiliated with the Company or the Advisor. The results of operations for the three and nine months ended September 30, 2018 and 2017 , for the disposed properties through the date of sale, including the properties contributed to the Joint Venture, were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: Rental income $ (83,205 ) $ 20,168,594 $ 2,451,700 $ 59,934,648 Tenant reimbursements and other (39,839 ) 2,721,063 380,654 8,149,055 Total revenues (123,044 ) 22,889,657 2,832,354 68,083,703 Expenses: Operating, maintenance and management 26,821 7,175,202 976,214 19,550,509 Real estate taxes and insurance (11,444 ) 4,183,092 309,609 12,735,473 Fees to affiliates (9,858 ) 899,703 124,449 2,655,951 Depreciation and amortization — 7,237,313 279,432 22,089,398 Interest expense 610 4,657,196 681,932 13,254,366 Loss on debt extinguishment — 401,674 2,010,457 401,674 General and administrative expenses 12,390 476,582 496,884 830,926 Total expenses $ 18,519 $ 25,030,762 $ 4,878,977 $ 71,518,297 |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture On November 10, 2017 , the Company, the Joint Venture, BREIT LP and BREIT GP executed the Contribution Agreement whereby the Company agreed to contribute the LANDS Portfolio to the Joint Venture in exchange for a combination of cash and a 10% ownership interest in the Joint Venture. BREIT LP owns a 90% interest in the Joint Venture and BREIT GP serves as the general partner of the Joint Venture. Each of BREIT LP and BREIT GP is a wholly-owned subsidiary of Blackstone Real Estate Income Trust, Inc. SIR LANDS Holdings, LLC, holds the Company’s 10% interest in the Joint Venture. The Company exercises significant influence, but does not control the Joint Venture. Accordingly, as of the First Closing Date and Second Closing Date, the Company deconsolidated the First Closing Properties and Second Closing Properties and has accounted for its investment in the Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. As of September 30, 2018 and December 31, 2017 , the book value of the Company’s investment in the Joint Venture was $13,818,724 and $8,133,156 , respectively, which includes $7,640,166 and $5,515,754 of outside basis difference. The outside basis difference represents the Company’s transaction costs related to entering into the Joint Venture. During the three and nine months ended September 30, 2018 , $60,294 and $534,592 , respectively, of amortization of this basis difference was included in equity in loss from unconsolidated joint venture on the accompanying consolidated statements of operations. There was no amortization of the outside basis difference during the three and nine months ended September 30, 2017 . During the three and nine months ended September 30, 2018 , the Company received distributions of $0 and $530,100 related to its investment in the Joint Venture, respectively. No distributions were received during the three and nine months ended September 30, 2017 . Unaudited financial information for the Joint Venture as of September 30, 2018 and December 31, 2017 , and for the three and nine months ended September 30, 2018 , is summarized below: September 30, 2018 December 31, 2017 Assets: Real estate assets, net $ 493,559,514 $ 374,277,205 Other assets 24,455,288 15,328,440 Total assets $ 518,014,802 $ 389,605,645 Liabilities and equity: Notes payable, net $ 341,031,466 $ 264,558,057 Other liabilities 24,727,834 11,525,292 Company’s capital 15,225,545 11,352,230 Other partner’s capital 137,029,957 102,170,066 Total liabilities and equity $ 518,014,802 $ 389,605,645 For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Revenues $ 15,571,241 $ 44,783,429 Expenses 17,843,699 70,457,945 Net loss $ (2,272,458 ) $ (25,674,516 ) Company’s proportional net loss $ (227,246 ) $ (2,567,452 ) Amortization of outside basis (60,294 ) (534,592 ) Equity in loss of unconsolidated joint venture $ (287,540 ) $ (3,102,044 ) |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2018 and December 31, 2017 , other assets consisted of: September 30, December 31, Prepaid expenses $ 1,131,689 $ 2,132,212 Interest rate cap agreements (Note 12) 358,452 51,646 Deposits 831,130 1,074,726 Other assets $ 2,321,271 $ 3,258,584 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Notes Payable The following is a summary of mortgage notes payable secured by real property as of September 30, 2018 and December 31, 2017 : September 30, 2018 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 24 1/1/2019 - 10/1/2056 3.19 % 5.75 % 3.96 % $ 384,789,500 Mortgage notes payable - variable (1) 12 7/1/2023 - 11/1/2027 1-Mo LIBOR + 1.77% 1-Mo LIBOR + 2.38% 4.46 % 341,231,672 Total mortgage notes payable, gross 36 4.20 % 726,021,172 Premium, net (2) 380,529 Deferred financing costs, net (3) (4,484,410 ) Total mortgage notes payable, net $ 721,917,291 December 31, 2017 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 32 4/1/2018 - 10/1/2056 3.19 % 5.75 % 3.89 % $ 416,673,854 Mortgage notes payable - variable (1) 14 10/1/2018 - 1/1/2026 1-Mo LIBOR +2.02% 1-Mo LIBOR + 2.50% 3.86 % 372,481,000 Total mortgage notes payable, gross 46 3.87 % 789,154,854 Premium, net (2) 673,653 Deferred financing costs, net (3) (4,264,667 ) Total mortgage notes payable, net $ 785,563,840 _____________________________ (1) See Note 12 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) Accumulated amortization related to debt premiums as of September 30, 2018 and December 31, 2017 was $1,000,240 and $2,468,041 , respectively. (3) Accumulated amortization related to deferred financing costs as of September 30, 2018 and December 31, 2017 was $3,277,299 and $3,951,049 , respectively. 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, multifamily note, loan and security agreements, mortgages and guaranty entered into in connection with the credit facility are 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 London Inter-bank Offered Rate 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. 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 entire outstanding principal balance and any accrued and unpaid interest on the credit facility are due on the maturity date. 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. Between November 15, 2017 and May 31, 2018, seven of the Collateral Pool Properties were either disposed or refinanced, with the advances made to each of the seven Collateral Pool Properties being repaid in full. As of September 30, 2018 and December 31, 2017 , the advances obtained under the credit facility are summarized in the following table: Amount of Advance as of Collateralized Property (1) September 30, 2018 December 31, 2017 Carrington Park at Huffmeister $ — $ 20,430,500 Carrington Place 27,535,500 27,535,500 Carrington at Champion Forest 25,121,250 25,121,250 Oak Crossing — 17,980,000 52,656,750 91,067,250 Deferred financing costs, net on Credit Facility (2) (322,981 ) (845,152 ) Credit Facility, net $ 52,333,769 $ 90,222,098 ___________ (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, 2018 and December 31, 2017 , was $264,560 and $390,241 , respectively. Maturity and Interest The following is a summary of the Company’s aggregate maturities as of September 30, 2018 : Remainder of 2018 Maturities During the Years Ending December 31, Contractual Obligation Total 2019 2020 2021 2022 Thereafter Principal payments on outstanding debt obligations (1) $ 778,677,922 $ 1,863,128 $ 59,341,242 $ 53,723,208 $ 73,499,260 $ 31,789,383 $ 558,461,701 _____________________________ (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, 2018 and December 31, 2017 , the Company was in compliance with all financial and non-financial debt covenants. For the three and nine months ended September 30, 2018 , the Company incurred interest expense of $8,452,962 and $24,021,396 , respectively. Interest expense for the three and nine months ended September 30, 2018 , includes amortization of deferred financing costs of $263,009 and $799,989 , amortization of loan premiums of $48,326 and $222,466 and net unrealized gain from the change in fair value of interest rate cap agreements of $18,199 and $103,506 , respectively. For the three and nine months ended September 30, 2017 , the Company incurred interest expense of $11,655,008 and $33,763,957 , respectively. Interest expense for the three and nine months ended September 30, 2017 includes amortization of deferred financing costs of $472,157 and $1,410,865 , amortization of loan premiums of $313,645 and $930,922 and net unrealized loss from the change in fair value of interest rate cap agreements of $90,601 and $606,690 , respectively. Interest expense of $2,673,715 and $2,766,036 was payable as of September 30, 2018 and December 31, 2017 , 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, 2018 | |
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 . From inception to September 30, 2018 , the Company had issued 76,732,395 shares of common stock in its Private Offering and Public Offering for aggregate 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 offering proceeds of $39,580,847 . Offering costs primarily consisted of selling commissions and dealer manager fees. The Company terminated its Public Offering on December 20, 2013, but continued to offer shares pursuant to the DRP through November 30, 2014. The issuance and vesting activity for the nine months ended September 30, 2018 , and for the year ended December 31, 2017 , for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting is as follows: For the Nine Months Ended September 30, 2018 For the Year Ended December 31, 2017 Nonvested shares at the beginning of the period 11,875 11,875 Granted shares 7,500 7,500 Vested shares (8,125 ) (7,500 ) Nonvested shares at the end of the period 11,250 11,875 The weighted average fair value of restricted stock issued to the Company’s independent directors for the nine months ended September 30, 2018 and for the year ended December 31, 2017 is as follows: Grant Year Weighted Average Fair Value 2017 $ 11.65 2018 9.84 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 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 $34,832 and $69,422 for the three and nine months ended September 30, 2018 , and $38,131 and $68,191 for the three and nine months ended September 30, 2017 , respectively, for compensation expense related to the issuance of restricted common stock. The weighted average remaining term of the restricted common stock is 1.86 years as of September 30, 2018 . As of September 30, 2018 , the compensation expense related to the issuance of the restricted common stock not vested was $111,391 . Convertible Stock During 2009, 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, 2018 and December 31, 2017 , no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company’s board of directors had 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, 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, although there is no assurance as to if or when this will happen, and change the DRP price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. 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 does 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 prior to April 28, 2018, was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) The Company’s board of directors elected to suspend the Company’s share repurchase program, effective April 28, 2018. The board of directors of the Company subsequently determined to reinstate and amend the terms of the Company’s share repurchase program, effective May 20, 2018. Pursuant to the amended and reinstated share repurchase program, the revised repurchase price is equal to 93% of the most recently publicly disclosed estimated value per share. From May 20, 2018 to September 30, 2018 , the share repurchase price was $9.15 per share, which represents 93% of the estimated value per share of $9.84 . The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) 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) The “Share Repurchase Price” shall equal 93% of the Estimated Value per Share. The “Estimated Value per Share” equals the most recently determined estimated value per share determined by the Company’s board of directors. (3) The required one year holding period to be eligible to redeem shares under the Company’s share repurchase program does not apply in the event of death or disability of a stockholder. (4) The purchase price per share for shares redeemed 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 is 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 end of the applicable quarter. During the three and nine months ended September 30, 2018 , the Company repurchased a total of 218,555 and 617,970 shares with a total repurchase value of $2,000,000 and $6,000,000 , respectively, and received net requests for the repurchase of 540,098 and 2,111,753 shares with a total net repurchase value of $4,927,921 and $18,790,955 , respectively. During the three and nine months ended September 30, 2017 , the Company redeemed a total of 178,700 and 542,881 shares with a total repurchase value of $2,000,000 and $6,000,000 , respectively, and received net requests for the repurchase of 974,696 and 1,997,597 shares with a total net repurchase value of $11,150,165 and $22,891,881 . As of September 30, 2018 and 2017 , the Company’s total outstanding repurchase requests received that were subject to the Company’s limitations on repurchases (discussed below) were 4,594,502 shares and 2,765,053 shares, respectively, with a total net repurchase value of $42,426,793 and $32,016,930 , respectively. 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. To the extent that repurchase requests exceed the Company’s limitations on repurchases 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 is given to repurchase 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 were available. Such pending requests are honored among all requests for repurchases in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death or disability; and, next, pro rata as to other repurchase requests. The Company is not obligated to repurchase shares of the Company’s common stock under the share repurchase program. In no event shall repurchases 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 or the $2,000,000 limit for any quarter put in place by the Company’s board of directors. There is no fee in connection with a repurchase of shares of the Company’s common stock. As of September 30, 2018 , the Company has recognized repurchases 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) accrued daily to stockholders of record as of the close of business on each day, (2) were payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month and (3) were calculated at a rate of $0.001519 per share per day during the three months ended September 30, 2018 , which if paid each day over a 365-day period, is equivalent to a 6.0% annualized distribution rate based on a purchase price of $9.24 per share of common stock, were calculated at a rate of $0.001683 per share per day during the three months ended June 30, 2018, which if paid each day over a 365-day period, is equivalent to a 6.0% annualized distribution rate based on a purchase price of $10.24 per share of common stock and were calculated at a rate of $0.001964 per share per day during the three months ended March 31, 2018, which if paid each day over a 365-day period, is equivalent to a 7.0% annualized distribution rate based on a purchase price of $10.24 per share of common stock. Additionally, on April 16, 2018 , the Company’s board of directors declared a special distribution in the amount of $1.00 per share, or $75,298,163 in the aggregate, to stockholders of record as of the close of business on April 20, 2018 . Distributions declared for the three and nine months ended September 30, 2018 , were $10,472,649 and $110,612,331 , respectively, all of which were attributable to cash distributions. Distributions declared for the three and nine months ended September 30, 2017 , were $13,681,897 and $40,692,629 , all of which were attributable to cash distributions. As of September 30, 2018 and December 31, 2017 , $3,411,890 and $4,595,301 in distributions declared were payable. Distributions Paid For the three and nine months ended September 30, 2018 , the Company paid cash distributions of $10,851,615 and $111,795,742 , which related to distributions declared for each day in the period from June 1, 2018 through August 31, 2018 , and December 1, 2017 through August 31, 2018 , respectively, inclusive of the special distribution in the amount of $75,298,163 paid on May 2, 2018 , to stockholders of record as of the close of business on April 20, 2018 . All such distributions were paid in cash. For the three and nine months ended September 30, 2017 , the Company paid cash distributions of $13,692,248 and $40,859,650 , which related to distributions declared for each day in the period from June 1, 2017 through August 31, 2017 , and December 1, 2016 through August 31, 2017 , respectively. All such distributions were paid in cash. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table presents a reconciliation of net income (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, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) attributable to the Company $ (6,456,722 ) $ (2,326,578 ) $ 58,857,793 $ (13,628,026 ) Less: dividends declared on participating securities 1,784 2,419 5,997 7,177 Net income (loss) attributable to common stockholders (6,458,506 ) (2,328,997 ) 58,851,796 (13,635,203 ) Weighted average common shares outstanding — basic 74,928,285 75,707,400 75,164,006 75,884,934 Weighted average common shares outstanding — diluted 74,940,350 75,707,400 75,176,774 75,884,934 Earnings (loss) per common share — basic and diluted $ (0.09 ) $ (0.03 ) $ 0.78 $ (0.18 ) For the three and nine months ended September 30, 2017 , the Company excluded all unvested restricted common shares outstanding issued to 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, 2018 | |
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, 2018 and 2017 , and amounts that are payable (prepaid) to the Advisor and its affiliates as of September 30, 2018 and December 31, 2017 , 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, 2018 2017 2018 2017 September 30, 2018 December 31, 2017 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 2,543,225 $ 3,573,959 $ 7,309,666 $ 10,723,093 $ 20,041 $ — Acquisition expenses (2) 7,415 — 230,732 — — — Property management: Fees (1) 1,035,326 1,640,754 3,038,678 4,871,838 348,243 402,315 Reimbursement of onsite personnel (3) 3,383,288 4,978,529 9,469,655 14,317,706 991,220 772,584 Other fees (1) 474,588 468,207 1,083,925 1,377,974 34,197 44,981 Other fees - property operations (3) 27,993 72,353 70,386 155,259 — — Other fees - G&A (2) 37,028 28,591 71,754 99,016 — — Other operating expenses (2) 129,426 248,051 805,175 898,494 137,025 87,221 Disposition fees (4) — 601,125 3,841,050 601,125 — 566,625 Disposition transaction costs (4) — 15,469 67,464 15,469 — — Loan coordination fee (1) 60,000 — 422,160 — — 86,675 Property insurance (5) 503,734 612,878 1,131,915 737,063 (72,161 ) (160,942 ) Insurance proceeds (6) — — — (102,147 ) — — Consolidated Balance Sheets: Capitalized Construction management: Fees (7) 43,739 159,345 109,212 421,063 4,474 6,431 Reimbursement of labor costs (7) 29,392 62,966 64,829 193,830 2,139 297 Capital expenditures (7) 1,500 15,202 39,680 53,882 — — Capitalized costs on investment in unconsolidated joint venture (8) — — 58,386 — — — Acquisition expenses (9) — — 245,048 — — — Acquisition fees (9) — — 705,722 — — — $ 8,276,654 $ 12,477,429 $ 28,765,437 $ 34,363,665 $ 1,465,178 $ 1,806,187 _____________________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. Reflects acquisition expenses that did not meet the capitalization criteria under ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business (“ASU 2017-01”). (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in gain on sales of real estate, net in the accompanying consolidated statements of operations. (5) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (6) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (7) Included in building and improvements in the accompanying consolidated balance sheets. (8) Included in investment in unconsolidated joint venture in the accompanying consolidated balance sheets. (9) Included in total real estate, cost in the accompanying consolidated balance sheets. Reflects acquisition expenses that did meet the capitalization criteria under ASU 2017-01. 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. The investment management 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 some instances, the Advisor has agreed to reduce the acquisition fee to 0.5% of the cost of investment when funds from the disposition of a prior property are used to fund the acquisition of a real property. 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 Financial Industry Regulatory Authority, Inc. (“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). As of September 30, 2018 , the property management fee payable with respect to each property under the Property Management Agreements (as amended from time to time, each a “Property Management Agreement”) ranged from 2.50% to 3.50% 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 members 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 60 -days’ 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, support and training services and capital expenditures. 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. As of September 30, 2018 , the construction management fee payable with respect to each property pursuant to the Construction Management Agreements (each a “Construction Management Agreement”) ranged from 6.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement can be terminated by either party with 30 days’ prior written notice to the other party. 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 units 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 certain of its employees for time spent working on capital improvements and renovations at its properties. Property Insurance The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor. In addition, the Company deposits amounts with an affiliate of the Sponsor to cover the cost of property insurance across certain properties of the Company. 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, “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, 2018 , the Company’s total operating expenses, as defined above, did not exceed the 2% / 25% Limitation. Disposition Fee The Company pays 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 (a “Final Liquidity Event”), 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 pays 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) 1.50% 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 3.0% 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 6.0% of the contract sales price. Loan Coordination Fee From time to time, upon the approval of a majority of independent directors, the Company pays the Advisor a loan coordination fee equal to 0.50% of the amount of debt refinanced. Contribution, Settlement and Release Agreements Certain of the Company’s subsidiaries and the Property Manager were named as defendants in two Texas class action lawsuits alleging violations of the Texas Water Code (collectively, the “Actions”). The Company’s subsidiaries and the Property Manager disputed plaintiffs’ claims in the Actions; however, to avoid the time and expense associated with defending the Actions, the Company’s subsidiaries and other affiliated Steadfast entities (collectively, the “Steadfast Parties”) entered into Settlement Agreements with the plaintiffs that provided for a settlement payment to the class members and a release of claims by plaintiffs and class members against the Steadfast Parties. In connection with the settlement agreements, on April 17, 2017, the Steadfast Parties entered into a contribution, settlement and release agreement whereby all agreed to an allocation of all costs related to the actions and their settlements and a release of all claims a Steadfast Party may have against any other Steadfast Party. The Company’s proportionate share of the settlements was $378,405 , which consisted of funds used to pay a portion of (1) the settlement payments to the plaintiffs and class members in the actions and (2) legal costs, less insurance proceeds. |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , 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 then 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 initial 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, if any, that joins the Company’s board of directors would receive 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 first anniversary of 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 9, 2018, 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 2018 annual meeting of stockholders. The Company recorded stock-based compensation expense of $34,832 and $69,422 for the three and nine months ended September 30, 2018 , and $38,131 and $68,191 for the three and nine months ended September 30, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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 and Oklahoma City, Oklahoma 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, 2018 | |
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, 2018 and December 31, 2017 : September 30, 2018 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 12/1/2018 - 7/1/2021 One-Month LIBOR 14 $ 386,897,000 2.26 % 2.91 % $ 358,452 December 31, 2017 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 1/1/2018 - 10/1/2019 One-Month LIBOR 18 $ 458,655,000 1.56 % 2.89 % $ 51,646 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, 2018 , resulted in an unrealized gain of $18,199 and $103,506 , respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the three and nine months ended September 30, 2018 , the Company acquired interest rate cap agreements of $0 and $203,300 , respectively, and during the three and nine months ended September 30, 2017 , the Company acquired interest rate cap agreements of $37,350 . The fair value of the interest rate cap agreements of $358,452 and $51,646 as of September 30, 2018 and December 31, 2017 , respectively, is included in other assets on the accompanying consolidated balance sheets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid On October 1, 2018 , the Company paid distributions of $3,411,890 , which related to distributions declared for each day in the period from September 1, 2018 through September 30, 2018 . All such distributions were paid in cash. On November 1, 2018 , the Company paid distributions of $3,525,297 , which related to distributions declared for each day in the period from October 1, 2018 through October 31, 2018 . All such distributions were paid in cash. Repayment and Termination of loans On October 31, 2018, the Company repaid in full the existing mortgage loans secured by Truman Farms Villas and EBT Lofts with an aggregate principal amount of $10,003,847 . Shares Repurchased On October 31, 2018 , the Company repurchased 218,800 shares of its common stock for a total repurchase value of $2,000,000 , or $9.14 per share, pursuant to the Company’s share repurchase program. Distributions Declared On November 7, 2018, 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, 2019 and ending on March 31, 2019. The distributions will be equal to $0.001519 per share of the Company’s common stock. The distributions for each record date in January 2019, February 2019 and March 2019 will be paid in February 2019, March 2019 and April 2019, respectively. The distributions will be payable to stockholders from legally available funds therefor. Advisory Agreement On November 7, 2018, the Company entered into Amendment No. 11 (the “Amendment”) to the Advisory Agreement. The Amendment (i) reduces the amount of the acquisition fee payable to the Advisor in the event proceeds from a prior disposition are used to fund an acquisition, (ii) amends the terms of the payment of the disposition fee payable to the Advisor to take into account, among other items, special distributions paid by the Company, (iii) provides for the payment of a loan coordination fee to the Advisor for any financing or refinancing of any debt (in each case, other than at the time of the acquisition of an investment), in an amount equal to 0.50% of the amount financed or refinanced and (iv) renews the term of the Advisory Agreement, effective November 15, 2018, for an additional one-year term ending on November 15, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the consolidated variable interest entity (“VIE”) that the Company controls and of which the Company is the primary beneficiary, and the Operating Partnership’s 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 Operating Partnership is a VIE as the limited partner lacks substantive kick-out rights and substantive participating rights. The Company is the primary beneficiary of, and consolidates, the Operating Partnership. |
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, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . 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, 2017 . |
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. |
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 - The Company has entered into certain interest rate cap agreements. These derivatives 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 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, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, 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 taxed as, and qualifies as, a REIT beginning with its taxable year ending December 31, 2010. 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 during the three months ended March 31, 2018, June 30, 2018 and September 30, 2018, were based on daily record dates and calculated at a rate of $0.001964 per share per day, $0.001683 , and $0.001519 per share per day, respectively. Distributions during the nine months ended September 30, 2017 , were based on daily record dates and calculated at a rate of $0.001964 per share per day. Each day during the nine months ended September 30, 2018 and 2017 , was a distribution record date. 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 to common stockholders for all periods presented are computed by dividing net income (loss) by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted earnings (loss) per share is 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 assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings (loss) per share. Basic earnings (loss) per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income (loss) remaining after deduction of dividends declared during the period. The undistributed earnings (loss) are allocated to all outstanding common shares based on the relative percentage of each class of shares. The Company does not have any participating securities outstanding other than the shares of common stock and the unvested restricted common stock during the periods presented. Earnings (loss) attributable to the unvested restricted common stock are deducted from earnings (loss) in the computation of per share amounts where applicable. |
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 | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ( Topic 606 ) (“ASU 2014-09”). ASU 2014-09 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. ASU 2014-09 supersedes the revenue requirements in Revenue Recognition ( Topic 605 ) and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 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 ASU 2014-09 by one year, which resulted in ASU 2014-09 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 selected the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and adopted ASU 2014-09 effective January 1, 2018. The Company identified limited sources of revenues from non-lease components, and the Company did not experience a material impact on its revenue recognition in the consolidated financial statements upon adoption. Additionally, there was no impact to the Company’s recognition of rental revenue, as rental revenue from leasing arrangements was specifically excluded from ASU 2014-09. In February 2016, the FASB issued ASU 2016-02, Leases , (“ASU 2016-02”), 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. ASU 2016-02 requires a modified retrospective transition approach. ASU 2016-02 will be effective in the first quarter of 2019 and allows for early adoption. The Company is evaluating the impact of ASU 2016-02 on its leases both as it relates to the Company acting as a lessor and as a lessee. Based on the preliminary results of its evaluation, as it relates to the former, the Company does not expect any material impact on the recognition of leases in the consolidated financial statements because under ASU 2016-02, lessors will continue to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. As it relates to the latter, the Company does not expect a material impact on the recognition of leases in the consolidated financial statements because the quantity of leased equipment by the Company is limited. The Company is finalizing its evaluation of ASU 2016-02 and plans to adopt ASU 2016-02 on January 1, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures and believes that rents and other receivables in its consolidated balance sheets may be impacted by the adoption of ASU 2016-13. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Therefore, amounts generally described as restricted cash should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted this guidance January 1, 2018 and applied it retrospectively. As a result of adopting ASU 2016-18, the Company began presenting restricted cash along with cash and cash equivalents in its consolidated statements of cash flows. In February 2017, the FASB issued ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (“Subtopic 610-20”): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets (“ASU 2017-05”), that clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset and defines the term in substance nonfinancial asset. ASU 2017-05 also clarifies that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. Subtopic 610-20, which was issued in May 2014 as part of ASU 2014-09 (discussed above), provides guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with noncustomers. An entity is required to apply amendments in ASU 2017-05 at the same time it applies the amendments in ASU 2014-09 (discussed above). ASU 2017-05 requires modified retrospective application and is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2014-09 and ASU 2017-05 on January 1, 2018, and experienced an impact on the gain recognized related to the sale of the Second Closing Properties (as defined in Note 3 (Real Estate)). The sale of the Second Closing Properties is considered a partial sale and the Company no longer controlled the Second Closing Properties after the sale. The retained noncontrolling interest was recognized at fair value and a full gain on the sale was recognized under ASU 2014-09. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). The FASB issued ASU 2017-09 to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation - Stock Compensation , to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 requires prospective application and is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Upon adoption of ASU 2017-09 on January 1, 2018, the Company did not experience a material impact. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). The FASB issued ASU 2018-11 to clarify ASU 2016-02. The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies ASU 2016-02 at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also provides lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: (1) the timing and pattern of transfer of the nonlease components and associated lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with Topic 606. Otherwise, the entity must account for the combined component as an operating lease in accordance with Topic 842. For entities that have not adopted Topic 842 before the issuance of ASU 2018-11, the effective date and transition requirements for ASU 2018-11 related to separating components of a contract are the same as the effective date and transition requirements in ASU 2016-02. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement , based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements , including the consideration of costs and benefits. ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of ASU 2018-13 will have on its consolidated financial statements and related disclosures and believes that certain disclosures of interest rate cap agreements in its consolidated financial statements may be impacted by the adoption of ASU 2018-13. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the nine months ended September 30, 2018 and 2017 : September 30, 2018 2017 Cash and cash equivalents $ 97,309,038 $ 80,224,237 Restricted cash 15,576,439 23,671,317 Total cash, cash equivalents and restricted cash $ 112,885,477 $ 103,895,554 |
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, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 358,452 $ — December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 51,646 $ — |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | During the nine months ended September 30, 2018 , the Company acquired each of the following two properties through Section 1031 exchanges: Purchase Price Allocation Property Name Location Purchase Date Units Land Buildings and Improvements Tenant Origination and Absorption Costs Total Purchase Price Double Creek Flats Plainfield, IN 5/7/2018 240 $ 1,306,880 $ 30,081,288 $ 463,911 $ 31,852,079 Jefferson at Perimeter Apartments Dunwoody, GA 6/11/2018 504 17,763,296 84,567,694 1,302,993 103,633,983 744 $ 19,070,176 $ 114,648,982 $ 1,766,904 $ 135,486,062 |
Schedule of Accumulated Depreciation and Amortization Related to the Consolidated Real Estate Properties and Related Intangibles | As of September 30, 2018 and December 31, 2017 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: September 30, 2018 Assets Land Building and Improvements Tenant Origination and Absorption Costs Other Intangible Assets Total Real Estate Held for Investment Real Estate Held for Sale Investments in real estate $ 126,002,217 $ 1,037,152,532 $ 1,766,904 $ 2,644,263 $ 1,167,565,916 $ — Less: Accumulated depreciation and amortization — (214,602,209 ) (1,167,901 ) (814,075 ) (216,584,185 ) — Net investments in real estate and related lease intangibles $ 126,002,217 $ 822,550,323 $ 599,003 $ 1,830,188 $ 950,981,731 $ — December 31, 2017 Assets Land Building and Improvements Tenant Origination and Absorption Costs Other Intangible Assets Total Real Estate Held for Investment Real Estate Held for Sale Investments in real estate $ 106,932,041 $ 916,068,353 $ — $ 2,644,263 $ 1,025,644,657 $ 222,652,327 Less: Accumulated depreciation and amortization — (181,382,789 ) — (699,199 ) (182,081,988 ) (39,499,666 ) Net investments in real estate and related lease intangibles $ 106,932,041 $ 734,685,564 $ — $ 1,945,064 $ 843,562,669 $ 183,152,661 |
Schedule of Future Amortization of Acquired Other Intangible Assets | The future amortization of the Company’s acquired other intangible assets as of September 30, 2018 , and thereafter is as follows: October 1 through December 31, 2018 $ 38,292 2019 153,168 2020 153,168 2021 153,168 2022 153,168 Thereafter 1,179,224 $ 1,830,188 |
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, 2018 , and thereafter is as follows: October 1 through December 31, 2018 $ 65,260 2019 180,858 2020 74,313 2021 76,535 2022 78,844 Thereafter 185,501 $ 661,311 |
Schedule of Property Dispositions | The results of operations for the three and nine months ended September 30, 2018 and 2017 , for the disposed properties through the date of sale, including the properties contributed to the Joint Venture, were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues: Rental income $ (83,205 ) $ 20,168,594 $ 2,451,700 $ 59,934,648 Tenant reimbursements and other (39,839 ) 2,721,063 380,654 8,149,055 Total revenues (123,044 ) 22,889,657 2,832,354 68,083,703 Expenses: Operating, maintenance and management 26,821 7,175,202 976,214 19,550,509 Real estate taxes and insurance (11,444 ) 4,183,092 309,609 12,735,473 Fees to affiliates (9,858 ) 899,703 124,449 2,655,951 Depreciation and amortization — 7,237,313 279,432 22,089,398 Interest expense 610 4,657,196 681,932 13,254,366 Loss on debt extinguishment — 401,674 2,010,457 401,674 General and administrative expenses 12,390 476,582 496,884 830,926 Total expenses $ 18,519 $ 25,030,762 $ 4,878,977 $ 71,518,297 |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Joint Venture | Unaudited financial information for the Joint Venture as of September 30, 2018 and December 31, 2017 , and for the three and nine months ended September 30, 2018 , is summarized below: September 30, 2018 December 31, 2017 Assets: Real estate assets, net $ 493,559,514 $ 374,277,205 Other assets 24,455,288 15,328,440 Total assets $ 518,014,802 $ 389,605,645 Liabilities and equity: Notes payable, net $ 341,031,466 $ 264,558,057 Other liabilities 24,727,834 11,525,292 Company’s capital 15,225,545 11,352,230 Other partner’s capital 137,029,957 102,170,066 Total liabilities and equity $ 518,014,802 $ 389,605,645 For the Three Months Ended September 30, 2018 For the Nine Months Ended September 30, 2018 Revenues $ 15,571,241 $ 44,783,429 Expenses 17,843,699 70,457,945 Net loss $ (2,272,458 ) $ (25,674,516 ) Company’s proportional net loss $ (227,246 ) $ (2,567,452 ) Amortization of outside basis (60,294 ) (534,592 ) Equity in loss of unconsolidated joint venture $ (287,540 ) $ (3,102,044 ) |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , other assets consisted of: September 30, December 31, Prepaid expenses $ 1,131,689 $ 2,132,212 Interest rate cap agreements (Note 12) 358,452 51,646 Deposits 831,130 1,074,726 Other assets $ 2,321,271 $ 3,258,584 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable secured by real property as of September 30, 2018 and December 31, 2017 : September 30, 2018 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 24 1/1/2019 - 10/1/2056 3.19 % 5.75 % 3.96 % $ 384,789,500 Mortgage notes payable - variable (1) 12 7/1/2023 - 11/1/2027 1-Mo LIBOR + 1.77% 1-Mo LIBOR + 2.38% 4.46 % 341,231,672 Total mortgage notes payable, gross 36 4.20 % 726,021,172 Premium, net (2) 380,529 Deferred financing costs, net (3) (4,484,410 ) Total mortgage notes payable, net $ 721,917,291 December 31, 2017 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Mortgage notes payable - fixed 32 4/1/2018 - 10/1/2056 3.19 % 5.75 % 3.89 % $ 416,673,854 Mortgage notes payable - variable (1) 14 10/1/2018 - 1/1/2026 1-Mo LIBOR +2.02% 1-Mo LIBOR + 2.50% 3.86 % 372,481,000 Total mortgage notes payable, gross 46 3.87 % 789,154,854 Premium, net (2) 673,653 Deferred financing costs, net (3) (4,264,667 ) Total mortgage notes payable, net $ 785,563,840 _____________________________ (1) See Note 12 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) Accumulated amortization related to debt premiums as of September 30, 2018 and December 31, 2017 was $1,000,240 and $2,468,041 , respectively. (3) Accumulated amortization related to deferred financing costs as of September 30, 2018 and December 31, 2017 was $3,277,299 and $3,951,049 , respectively. |
Schedule of Revolving Credit Facility Advances | As of September 30, 2018 and December 31, 2017 , the advances obtained under the credit facility are summarized in the following table: Amount of Advance as of Collateralized Property (1) September 30, 2018 December 31, 2017 Carrington Park at Huffmeister $ — $ 20,430,500 Carrington Place 27,535,500 27,535,500 Carrington at Champion Forest 25,121,250 25,121,250 Oak Crossing — 17,980,000 52,656,750 91,067,250 Deferred financing costs, net on Credit Facility (2) (322,981 ) (845,152 ) Credit Facility, net $ 52,333,769 $ 90,222,098 ___________ (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, 2018 and December 31, 2017 , was $264,560 and $390,241 , respectively. |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of September 30, 2018 : Remainder of 2018 Maturities During the Years Ending December 31, Contractual Obligation Total 2019 2020 2021 2022 Thereafter Principal payments on outstanding debt obligations (1) $ 778,677,922 $ 1,863,128 $ 59,341,242 $ 53,723,208 $ 73,499,260 $ 31,789,383 $ 558,461,701 _____________________________ (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, 2018 | |
Equity [Abstract] | |
Schedule of Restricted Stock Issued to Independent Directors as Compensation | The issuance and vesting activity for the nine months ended September 30, 2018 , and for the year ended December 31, 2017 , for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting is as follows: For the Nine Months Ended September 30, 2018 For the Year Ended December 31, 2017 Nonvested shares at the beginning of the period 11,875 11,875 Granted shares 7,500 7,500 Vested shares (8,125 ) (7,500 ) Nonvested shares at the end of the period 11,250 11,875 The weighted average fair value of restricted stock issued to the Company’s independent directors for the nine months ended September 30, 2018 and for the year ended December 31, 2017 is as follows: Grant Year Weighted Average Fair Value 2017 $ 11.65 2018 9.84 |
Schedule of Repurchase Prices Under Share Repurchase Plan | The purchase price for shares repurchased under the Company’s share repurchase program prior to April 28, 2018, was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) The Company’s board of directors elected to suspend the Company’s share repurchase program, effective April 28, 2018. The board of directors of the Company subsequently determined to reinstate and amend the terms of the Company’s share repurchase program, effective May 20, 2018. Pursuant to the amended and reinstated share repurchase program, the revised repurchase price is equal to 93% of the most recently publicly disclosed estimated value per share. From May 20, 2018 to September 30, 2018 , the share repurchase price was $9.15 per share, which represents 93% of the estimated value per share of $9.84 . The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) 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) The “Share Repurchase Price” shall equal 93% of the Estimated Value per Share. The “Estimated Value per Share” equals the most recently determined estimated value per share determined by the Company’s board of directors. (3) The required one year holding period to be eligible to redeem shares under the Company’s share repurchase program does not apply in the event of death or disability of a stockholder. (4) The purchase price per share for shares redeemed 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, 2018 | |
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 income (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, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net income (loss) attributable to the Company $ (6,456,722 ) $ (2,326,578 ) $ 58,857,793 $ (13,628,026 ) Less: dividends declared on participating securities 1,784 2,419 5,997 7,177 Net income (loss) attributable to common stockholders (6,458,506 ) (2,328,997 ) 58,851,796 (13,635,203 ) Weighted average common shares outstanding — basic 74,928,285 75,707,400 75,164,006 75,884,934 Weighted average common shares outstanding — diluted 74,940,350 75,707,400 75,176,774 75,884,934 Earnings (loss) per common share — basic and diluted $ (0.09 ) $ (0.03 ) $ 0.78 $ (0.18 ) |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 , and amounts that are payable (prepaid) to the Advisor and its affiliates as of September 30, 2018 and December 31, 2017 , 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, 2018 2017 2018 2017 September 30, 2018 December 31, 2017 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 2,543,225 $ 3,573,959 $ 7,309,666 $ 10,723,093 $ 20,041 $ — Acquisition expenses (2) 7,415 — 230,732 — — — Property management: Fees (1) 1,035,326 1,640,754 3,038,678 4,871,838 348,243 402,315 Reimbursement of onsite personnel (3) 3,383,288 4,978,529 9,469,655 14,317,706 991,220 772,584 Other fees (1) 474,588 468,207 1,083,925 1,377,974 34,197 44,981 Other fees - property operations (3) 27,993 72,353 70,386 155,259 — — Other fees - G&A (2) 37,028 28,591 71,754 99,016 — — Other operating expenses (2) 129,426 248,051 805,175 898,494 137,025 87,221 Disposition fees (4) — 601,125 3,841,050 601,125 — 566,625 Disposition transaction costs (4) — 15,469 67,464 15,469 — — Loan coordination fee (1) 60,000 — 422,160 — — 86,675 Property insurance (5) 503,734 612,878 1,131,915 737,063 (72,161 ) (160,942 ) Insurance proceeds (6) — — — (102,147 ) — — Consolidated Balance Sheets: Capitalized Construction management: Fees (7) 43,739 159,345 109,212 421,063 4,474 6,431 Reimbursement of labor costs (7) 29,392 62,966 64,829 193,830 2,139 297 Capital expenditures (7) 1,500 15,202 39,680 53,882 — — Capitalized costs on investment in unconsolidated joint venture (8) — — 58,386 — — — Acquisition expenses (9) — — 245,048 — — — Acquisition fees (9) — — 705,722 — — — $ 8,276,654 $ 12,477,429 $ 28,765,437 $ 34,363,665 $ 1,465,178 $ 1,806,187 _____________________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. Reflects acquisition expenses that did not meet the capitalization criteria under ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business (“ASU 2017-01”). (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in gain on sales of real estate, net in the accompanying consolidated statements of operations. (5) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (6) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (7) Included in building and improvements in the accompanying consolidated balance sheets. (8) Included in investment in unconsolidated joint venture in the accompanying consolidated balance sheets. (9) Included in total real estate, cost in the accompanying consolidated balance sheets. Reflects acquisition expenses that did meet the capitalization criteria under ASU 2017-01. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 : September 30, 2018 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 12/1/2018 - 7/1/2021 One-Month LIBOR 14 $ 386,897,000 2.26 % 2.91 % $ 358,452 December 31, 2017 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest rate cap 1/1/2018 - 10/1/2019 One-Month LIBOR 18 $ 458,655,000 1.56 % 2.89 % $ 51,646 |
Organization and Business - Nar
Organization and Business - Narrative (Details) | Jul. 10, 2009USD ($)shares | Jun. 12, 2009USD ($)$ / sharesshares | Sep. 30, 2018ft²Investmentapartmentproperty$ / sharesshares | Dec. 31, 2009shares | Jun. 30, 2018$ / shares | Mar. 31, 2018$ / shares | Dec. 31, 2017shares |
Class of Stock [Line Items] | |||||||
Units (apartment homes) | apartment | 744 | ||||||
Residential Real Estate [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of multifamily real estate properties owned | property | 39 | ||||||
Units (apartment homes) | apartment | 10,622 | ||||||
Commercial Real Estate [Member] | |||||||
Class of Stock [Line Items] | |||||||
Units (apartment homes) | property | 2 | ||||||
Net rentable area (in square feet) | ft² | 21,130 | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ / shares | $ 9.24 | $ 10.24 | $ 10.24 | ||||
Stock issued to advisor (in shares) | 74,868,939 | 76,202,862 | |||||
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 | 1,000 | |||||
Stock issued to advisor (in shares) | 1,000 | ||||||
BREIT Steadfast MF JV LP [Member] | |||||||
Class of Stock [Line Items] | |||||||
Ownership percentage | 10.00% | ||||||
BREIT Steadfast MF JV LP [Member] | Residential Real Estate [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of multifamily real estate properties owned | property | 20 | ||||||
Units (apartment homes) | apartment | 4,584 | ||||||
Number of Joint Ventures | Investment | 1 |
Organization and Business - Pri
Organization and Business - Private Offering (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2018 | Jul. 09, 2010 | Jun. 30, 2018 | Mar. 31, 2018 | 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) | $ 9.24 | $ 10.24 | $ 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 ($) | May 02, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 20, 2013 | Dec. 31, 2017 | Jun. 30, 2018 | May 09, 2018 | Mar. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 10, 2012 | Jul. 19, 2010 | Jul. 23, 2009 |
Class of Stock [Line Items] | ||||||||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | 4,073,759 | |||||||||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 39,580,847 | |||||||||||||||
Common stock, estimated value, per share (in dollars per share) | $ 9.84 | |||||||||||||||
Special distribution (in dollars per share) | $ 0.14 | $ 0.181 | $ 1.47 | $ 0.536 | ||||||||||||
IPO [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Issuance of common stock (in shares) | 76,095,116 | |||||||||||||||
Issuance of common stock | $ 769,573,363 | |||||||||||||||
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) | 4,073,759 | |||||||||||||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 39,580,847 | |||||||||||||||
Common Stock [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Share price (in dollars per share) | $ 9.24 | $ 9.24 | $ 10.24 | $ 10.24 | ||||||||||||
Common stock, estimated value, per share (in dollars per share) | $ 10.84 | $ 11.65 | $ 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 | |||||||||||||||
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) | $ 9.5 | |||||||||||||||
Dividend Paid [Member] | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Special distribution (in dollars per share) | $ 1 |
Summary of Significant Accoun_4
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, 2018 | Dec. 31, 2017 |
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 | 358,452 | 51,646 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable, net | $ 721,917,291 | $ 625,302,105 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable at fair value | 762,196,690 | 878,004,294 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable, net | $ 774,251,060 | $ 875,785,938 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Restricted cash | $ 15,576,439 | $ 31,005,231 | $ 23,671,317 | |
Restricted cash held in qualified intermediaries | 0 | 17,197,810 | ||
Restricted cash impounds set aside for future property taxes, property insurance payments, and tenant improvements as required by lenders | 15,576,439 | 13,807,421 | ||
Restricted held in real estate assets held for sale | 2,862,292 | $ 12,086,960 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 97,309,038 | 171,228,485 | 80,224,237 | |
Restricted cash | 15,576,439 | 31,005,231 | 23,671,317 | |
Total cash, cash equivalents and restricted cash | $ 112,885,477 | $ 205,096,008 | $ 103,895,554 | $ 93,777,878 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Distribution Policy (Details) - $ / shares | Aug. 08, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Accounting Policies [Abstract] | |||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001519 | $ 0.001519 | $ 0.001683 | $ 0.001964 | $ 0.001964 | $ 0.001964 | |
Distributions declared per common share (in dollars per share) | $ 0.14 | $ 0.181 | $ 1.47 | $ 0.536 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Segment Disclosure (Details) | 9 Months Ended |
Sep. 30, 2018segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Real Estate - Schedule of Purch
Real Estate - Schedule of Purchase Price Allocation (Details) | Sep. 30, 2018USD ($)apartment |
Business Acquisition [Line Items] | |
Units (apartment homes) | apartment | 744 |
Land | $ 19,070,176 |
Buildings and Improvements | 114,648,982 |
Tenant Origination and Absorption Costs | 1,766,904 |
Total Purchase Price | $ 135,486,062 |
Double Creek Flats [Member] | |
Business Acquisition [Line Items] | |
Units (apartment homes) | apartment | 240 |
Land | $ 1,306,880 |
Buildings and Improvements | 30,081,288 |
Tenant Origination and Absorption Costs | 463,911 |
Total Purchase Price | $ 31,852,079 |
Jefferson at Perimeter Apartments [Member] | |
Business Acquisition [Line Items] | |
Units (apartment homes) | apartment | 504 |
Land | $ 17,763,296 |
Buildings and Improvements | 84,567,694 |
Tenant Origination and Absorption Costs | 1,302,993 |
Total Purchase Price | $ 103,633,983 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)ft²apartmentproperty | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ft²apartmentpropertycustomer | Sep. 30, 2017USD ($)customer | Dec. 31, 2017USD ($) | |
Real Estate Properties [Line Items] | |||||
Units (apartment homes) | apartment | 744 | 744 | |||
Contract purchase price | $ 1,131,486,219 | ||||
Average percentage of real estate portfolio occupied | 94.20% | 93.80% | |||
Average monthly collected rent | $ 1,058 | $ 1,037 | |||
Depreciation and amortization | $ 12,579,032 | $ 17,850,748 | $ 34,781,722 | $ 53,852,540 | |
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 | 3,068,718 | $ 3,068,718 | $ 3,339,602 | ||
Building and Improvements [Member] | |||||
Real Estate Properties [Line Items] | |||||
Depreciation | 11,657,288 | 17,812,456 | 33,498,945 | $ 53,737,664 | |
Real Estate Investment [Member] | |||||
Real Estate Properties [Line Items] | |||||
Amortization of Intangible Assets | 883,452 | 0 | 0 | ||
Tenant Origination and Absorption Costs [Member] | |||||
Real Estate Properties [Line Items] | |||||
Amortization of Intangible Assets | 1,167,901 | ||||
Other Intangible Assets [Member] | |||||
Real Estate Properties [Line Items] | |||||
Amortization of Intangible Assets | $ 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 | 39 | 39 | |||
Units (apartment homes) | apartment | 10,622 | 10,622 | |||
Percentage leased | 95.70% | 95.70% | |||
Operating leases, revenue, percentage (more than 99% for residential tenants, less than 1% for commercial office tenants) | 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] | |||||
Units (apartment homes) | property | 2 | 2 | |||
Net rentable area (in square feet) | ft² | 21,130 | 21,130 | |||
Operating leases, revenue, percentage (more than 99% for residential tenants, less than 1% for commercial office tenants) | 1.00% | 1.00% | 1.00% | 1.00% | |
Commercial Real Estate [Member] | Minimum [Member] | |||||
Real Estate Properties [Line Items] | |||||
Operating lease term | 7 months 30 days | ||||
Commercial Real Estate [Member] | Maximum [Member] | |||||
Real Estate Properties [Line Items] | |||||
Operating lease term | 6 years 6 months 1 day |
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, 2018 | Dec. 31, 2017 |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | $ 1,167,565,916 | $ 1,025,644,657 |
Less: Accumulated depreciation and amortization | (216,584,185) | (182,081,988) |
Net investments in real estate and related lease intangibles | 950,981,731 | 843,562,669 |
Land [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 126,002,217 | 106,932,041 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Net investments in real estate and related lease intangibles | 126,002,217 | 106,932,041 |
Building and Improvements [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 1,037,152,532 | 916,068,353 |
Less: Accumulated depreciation and amortization | (214,602,209) | (181,382,789) |
Net investments in real estate and related lease intangibles | 822,550,323 | 734,685,564 |
Tenant Origination and Absorption Costs [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 1,766,904 | 0 |
Less: Accumulated depreciation and amortization | (1,167,901) | 0 |
Net investments in real estate and related lease intangibles | 599,003 | 0 |
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 | (814,075) | (699,199) |
Net investments in real estate and related lease intangibles | 1,830,188 | 1,945,064 |
Real Estate Investment [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 1,167,565,916 | 1,025,644,657 |
Less: Accumulated depreciation and amortization | (216,584,185) | (182,081,988) |
Net investments in real estate and related lease intangibles | 950,981,731 | 843,562,669 |
Real Estate Investment [Member] | Real Estate Held for Sale [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 0 | 222,652,327 |
Less: Accumulated depreciation and amortization | 0 | (39,499,666) |
Net investments in real estate and related lease intangibles | $ 0 | $ 183,152,661 |
Real Estate - Schedule of Futur
Real Estate - Schedule of Future Amortization of Acquired Other Intangible Assets (Details) - Other Intangible Assets [Member] | Sep. 30, 2018USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
October 1 through December 31, 2018 | $ 38,292 |
2,018 | 153,168 |
2,019 | 153,168 |
2,020 | 153,168 |
2,021 | 153,168 |
Thereafter | 1,179,224 |
Future amortization of acquired other intangible assets | $ 1,830,188 |
Real Estate - Schedule of Fut_2
Real Estate - Schedule of Future Minimum Rental Receipts from Properties under Non-cancelable Operating Leases Attributable to Commercial Office Tenants (Details) | Sep. 30, 2018USD ($) |
Real Estate [Abstract] | |
October 1 through December 31, 2018 | $ 65,260 |
2,018 | 180,858 |
2,019 | 74,313 |
2,020 | 76,535 |
2,021 | 78,844 |
Thereafter | 185,501 |
Total future minimum rental receipts | $ 661,311 |
Real Estate - Joint Venture Arr
Real Estate - Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. (Details) | Jan. 31, 2018apartment_community | Nov. 15, 2017USD ($)apartment_community | Nov. 10, 2017apartment_community | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jul. 03, 2013USD ($) | May 16, 2014USD ($) |
Real Estate [Line Items] | |||||||
Payments to acquire real estate | $ 6,754,330 | $ 12,311,010 | |||||
Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. [Member] | |||||||
Real Estate [Line Items] | |||||||
Gain (Loss) on disposition | $ 38,523,427 | ||||||
Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. [Member] | First Closing Properties [Member] | |||||||
Real Estate [Line Items] | |||||||
Payments to acquire real estate | $ 318,576,792 | ||||||
Proceeds from sale of real estate | 335,430,000 | ||||||
Gain (Loss) on disposition | 76,135,530 | ||||||
Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. [Member] | Second Closing Properties [Member] | |||||||
Real Estate [Line Items] | |||||||
Payments to acquire real estate | $ 117,240,032 | ||||||
Proceeds from sale of real estate | $ 125,370,000 | ||||||
Ownership percent divested | 90.00% | ||||||
Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. [Member] | SIR Land Holdings, LLC [Member] | |||||||
Real Estate [Line Items] | |||||||
Number of properties contributed | apartment_community | 8 | 12 | 20 | ||||
Ownership percentage | 10.00% | ||||||
Joint Venture Arrangement with Blackstone Real Estate Income Trust, Inc. [Member] | BREIT LP [Member] | |||||||
Real Estate [Line Items] | |||||||
Ownership percentage | 90.00% |
Real Estate - Property Disposit
Real Estate - Property Dispositions (Details) | Feb. 28, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 05, 2018USD ($) | Nov. 20, 2013USD ($)apartment | Nov. 30, 2012USD ($)apartment | Sep. 30, 2018USD ($)apartment | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)apartment | Sep. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Units (apartment homes) | apartment | 744 | 744 | |||||||
Revenues: | |||||||||
Rental income | $ 31,885,583 | $ 49,068,474 | $ 93,133,369 | $ 146,047,621 | |||||
Tenant reimbursements and other | 4,356,135 | 6,523,633 | 12,620,283 | 18,943,156 | |||||
Total revenues | 36,241,718 | 55,592,107 | 105,753,652 | 164,990,777 | |||||
Expenses: | |||||||||
Operating, maintenance and management | 10,457,329 | 16,392,711 | 28,936,191 | 44,808,803 | |||||
Real estate taxes and insurance | 5,657,098 | 9,275,615 | 18,329,576 | 28,982,886 | |||||
Fees to affiliates | 4,113,139 | 5,682,920 | 11,854,429 | 16,972,905 | |||||
Depreciation and amortization | 12,579,032 | 17,850,748 | 34,781,722 | 53,852,540 | |||||
Interest expense | 8,452,962 | 11,655,008 | 24,021,396 | 33,763,957 | |||||
Loss on debt extinguishment | 0 | 401,674 | 2,282,247 | 401,674 | |||||
General and administrative expenses | 1,151,340 | 2,042,856 | 4,835,308 | 5,218,885 | |||||
Total expenses | 42,410,900 | 63,301,532 | 125,040,869 | 184,001,650 | |||||
Discontinued Operations, Disposed of by Sale [Member] | |||||||||
Revenues: | |||||||||
Rental income | (83,205) | 20,168,594 | 2,451,700 | 59,934,648 | |||||
Tenant reimbursements and other | (39,839) | 2,721,063 | 380,654 | 8,149,055 | |||||
Total revenues | (123,044) | 22,889,657 | 2,832,354 | 68,083,703 | |||||
Expenses: | |||||||||
Operating, maintenance and management | 26,821 | 7,175,202 | 976,214 | 19,550,509 | |||||
Real estate taxes and insurance | (11,444) | 4,183,092 | 309,609 | 12,735,473 | |||||
Fees to affiliates | (9,858) | 899,703 | 124,449 | 2,655,951 | |||||
Depreciation and amortization | 0 | 7,237,313 | 279,432 | 22,089,398 | |||||
Interest expense | 610 | 4,657,196 | 681,932 | 13,254,366 | |||||
Loss on debt extinguishment | 0 | 401,674 | 2,010,457 | 401,674 | |||||
General and administrative expenses | 12,390 | 476,582 | 496,884 | 830,926 | |||||
Total expenses | $ 18,519 | $ 25,030,762 | $ 4,878,977 | $ 71,518,297 | |||||
Discontinued Operations, Disposed of by Sale [Member] | The Moorings Property [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Units (apartment homes) | apartment | 216 | ||||||||
Purchase price | $ 20,250,000 | ||||||||
Sales price | $ 28,100,000 | ||||||||
Gain on sale | $ 9,658,823 | ||||||||
Discontinued Operations, Disposed of by Sale [Member] | Arrowhead Property [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Units (apartment homes) | apartment | 200 | ||||||||
Purchase price | $ 16,750,000 | ||||||||
Sales price | $ 23,600,000 | ||||||||
Gain on sale | $ 8,928,691 | ||||||||
Discontinued Operations, Disposed of by Sale [Member] | Willow Crossing [Member] | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Units (apartment homes) | apartment | 579 | ||||||||
Purchase price | $ 58,000,000 | ||||||||
Sales price | $ 79,000,000 | ||||||||
Gain on sale | $ 24,136,113 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture - Narrative (Details) - USD ($) | Nov. 10, 2017 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||||
Cash distributions from unconsolidated joint venture | $ 0 | $ 530,100 | $ 0 | ||
BREIT Steadfast MF JV LP [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Noncash or Part Noncash Acquisition, Interest Acquired | 10.00% | ||||
Book value of joint venture | 13,818,724 | 13,818,724 | $ 8,133,156 | ||
Outside difference | 7,640,166 | 7,640,166 | $ 5,515,754 | ||
Amortization of the basis difference | $ 60,294 | $ 534,592 | |||
BREIT LP [Member] | BREIT Steadfast MF JV LP [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Noncash or Part Noncash Acquisition, Interest Acquired | 90.00% |
Other Assets (Details)
Other Assets (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 1,131,689 | $ 2,132,212 |
Interest rate cap agreements | 358,452 | 51,646 |
Deposits | 831,130 | 1,074,726 |
Other assets | $ 2,321,271 | $ 3,258,584 |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture - Schedule of Financial Information of Joint Venture (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Company's Proportional Share: | |||||
Equity in loss of unconsolidated joint venture | $ (287,540) | $ 0 | $ (3,102,044) | $ 0 | |
BREIT Steadfast MF JV LP [Member] | |||||
Assets: | |||||
Real estate assets, net | 493,559,514 | 493,559,514 | $ 374,277,205 | ||
Other assets | 24,455,288 | 24,455,288 | 15,328,440 | ||
Total assets | 518,014,802 | 518,014,802 | 389,605,645 | ||
Liabilities and equity: | |||||
Notes payable, net | 341,031,466 | 341,031,466 | 264,558,057 | ||
Other liabilities | 24,727,834 | 24,727,834 | 11,525,292 | ||
Company’s capital | 15,225,545 | 15,225,545 | 11,352,230 | ||
Other partner’s capital | 137,029,957 | 137,029,957 | 102,170,066 | ||
Total liabilities and equity | 518,014,802 | 518,014,802 | $ 389,605,645 | ||
Income Statement: | |||||
Revenues | 15,571,241 | 44,783,429 | |||
Expenses | 17,843,699 | 70,457,945 | |||
Net loss | (2,272,458) | (25,674,516) | |||
Company's Proportional Share: | |||||
Company’s proportional net loss | (227,246) | (2,567,452) | |||
Amortization of outside basis | (60,294) | (534,592) | |||
Equity in loss of unconsolidated joint venture | $ (287,540) | $ (3,102,044) |
Debt - Summary of Notes Payable
Debt - Summary of Notes Payable Secured by Real Property (Details) | 9 Months Ended | ||
Sep. 30, 2018USD ($)instrument | Sep. 30, 2017 | Dec. 31, 2017USD ($)instrument | |
Debt Instrument [Line Items] | |||
Principal Outstanding | $ 721,917,291 | $ 625,302,105 | |
Total notes payable, net | $ 774,251,060 | $ 875,785,938 | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 36 | 46 | |
Weighted Average Interest Rate | 4.20% | 3.87% | |
Principal Outstanding | $ 726,021,172 | $ 789,154,854 | |
Premium/discount, net | 380,529 | 673,653 | |
Deferred financing costs, net | (4,484,410) | (4,264,667) | |
Total notes payable, net | $ 721,917,291 | $ 785,563,840 | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 24 | 32 | |
Weighted Average Interest Rate | 3.96% | 3.89% | |
Principal Outstanding | $ 384,789,500 | $ 416,673,854 | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 3.19% | 3.19% | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Fixed [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Interest Rate Range | 5.75% | 5.75% | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 12 | 14 | |
Weighted Average Interest Rate | 4.46% | 3.86% | |
Principal Outstanding | $ 341,231,672 | $ 372,481,000 | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | LIBOR [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 1.65% | 1.65% | |
Notes Payable to Banks [Member] | Mortgage Notes Payable - Variable [Member] | LIBOR [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Variable Rate | 2.65% | 2.65% |
Debt - Summary of Debt Premiums
Debt - Summary of Debt Premiums and Discounts (Details) - Notes Payable to Banks [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Accumulated amortization, debt premiums | $ (1,000,240) | $ (2,468,041) |
Accumulated amortization, debt issuance costs | $ (3,277,299) | $ (3,951,049) |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jul. 29, 2016USD ($)subsidiary | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Interest expense | $ 8,452,962 | $ 11,655,008 | $ 24,021,396 | $ 33,763,957 | ||
Amortization of deferred financing costs | 263,009 | 472,157 | 799,989 | 1,410,865 | ||
Amortization Of Financing Costs, Including Cash | 799,989 | 1,410,865 | ||||
Amortization of debt premium (discount) | 222,466 | 930,922 | ||||
Unrealized gain (loss) on derivatives | (103,506) | 606,690 | ||||
Accounts Payable and Accrued Liabilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest payable | 2,673,715 | 2,673,715 | $ 2,766,036 | |||
Interest Rate Cap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unrealized gain (loss) on derivatives | (18,199) | 90,601 | (103,506) | 606,690 | ||
Notes Payable to Banks [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of subsidiaries | subsidiary | 9 | |||||
Amortization of debt premium (discount) | $ 48,326 | $ 313,645 | $ 222,466 | $ 930,922 | ||
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit agreement limit | $ 350,000,000 | |||||
Variable rate | 0.05% | |||||
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, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Credit facility advances | $ 778,677,922 | |
Total notes payable, net | 774,251,060 | $ 875,785,938 |
Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 52,656,750 | 91,067,250 |
Deferred financing costs, net on Credit Facility | (322,981) | (845,152) |
Total notes payable, net | 52,333,769 | 90,222,098 |
Accumulated amortization related to deferred financing cost | (264,560) | (390,241) |
Carrington Park at Huffmeister [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | 0 | 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 | 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 | 25,121,250 |
Oak Crossing [Member] | Revolving Credit Facility [Member] | Refinanced PNC Bank Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility advances | $ 0 | $ 17,980,000 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Details) | Sep. 30, 2018USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 778,677,922 |
Remainder of 2018 | 1,863,128 |
2,019 | 59,341,242 |
2,020 | 53,723,208 |
2,021 | 73,499,260 |
2,022 | 31,789,383 |
Thereafter | $ 558,461,701 |
Stockholders' Equity - General
Stockholders' Equity - General (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2009 | Dec. 31, 2017 | |
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 | |
Convertible Stock [Member] | Steadfast Income Advisor, LLC [Member] | |||
Class of Stock [Line Items] | |||
Issuance of common stock (in shares) | 1,000 | 1,000 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | Jun. 12, 2009shares | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)installmentsvote / shares | Sep. 30, 2017USD ($) | Dec. 31, 2009USD ($)shares | Dec. 31, 2017USD ($)shares |
Class of Stock [Line Items] | |||||||
Number of votes per share | vote / shares | 1 | ||||||
Equity in loss from unconsolidated joint venture | $ (3,102,044) | $ 0 | |||||
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 | $ 34,832 | $ 38,131 | $ 69,422 | 68,191 | |||
Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Restricted common stock, weighted average remaining vesting terms | 1 year 10 months 8 days | ||||||
Compensation expense related to nonvested shares | 111,391 | $ 111,391 | |||||
Restricted Stock [Member] | General and Administrative Expense [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based compensation | $ 34,832 | $ 38,131 | $ 69,422 | $ 68,191 | |||
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] | Steadfast REIT Investments, LLC [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock (in shares) | shares | 22,223 | 22,223 | |||||
Equity in loss from unconsolidated joint venture | $ 200,007 | ||||||
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, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
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) | 11,875 | 11,875 | 11,875 |
Granted shares (in shares) | 7,500 | 7,500 | |
Vested shares (in shares) | (8,125) | (7,500) | |
Nonvested shares at the end of the period (in shares) | 11,250 | 11,875 | |
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) | $ 9.84 | $ 11.65 |
Stockholders' Equity - Converti
Stockholders' Equity - Convertible Stock (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2009 | |
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) | 1,000 | 1,000 |
Steadfast Income Advisor, LLC [Member] | Steadfast Income Advisor, LLC [Member] | Convertible Stock [Member] | ||
Class of Stock [Line Items] | ||
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, 2018classshares | Dec. 31, 2017shares | |
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, 2018 | 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) - Share Repurchase Program [Member] - USD ($) | Jul. 01, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||
Number of days notice | 30 days | |||||
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) | 218,555 | 178,700 | 617,970 | 542,881 | ||
Stock repurchase plan, stock redeemed, value | $ 2,000,000 | $ 2,000,000 | $ 6,000,000 | $ 6,000,000 | ||
Stock requested for redemption (in shares) | 540,098 | 974,696 | 2,111,753 | 1,997,597 | ||
Stock requested for redemption, value | $ 4,927,921 | $ 11,150,165 | $ 18,790,955 | $ 22,891,881 | ||
Stock requested for redemption, outstanding (in shares) | 4,594,502 | 4,594,502 | 2,765,053 | |||
Stock repurchase plan, percentage of weighted-average number of shares outstanding, limit on repurchase | 5.00% | |||||
Shares requested for redemption | $ 42,426,793 | $ 42,426,793 | $ 32,016,930 | |||
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] | ||||||
Class of Stock [Line Items] | ||||||
Maximum value of shares allowed to be repurchase per quarter | $ 2,000,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Repurchase Prices Under Share Repurchase Program (Details) - Share Repurchase Program [Member] - Common Stock [Member] | 9 Months Ended |
Sep. 30, 2018 | |
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 - Distri_2
Stockholders' Equity - Distributions Declared (Details) - USD ($) | Aug. 08, 2018 | May 02, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001519 | $ 0.001519 | $ 0.001683 | $ 0.001964 | $ 0.001964 | $ 0.001964 | |||
Distributions declared per common share (in dollars per share) | $ 0.14 | $ 0.181 | $ 1.47 | $ 0.536 | |||||
Dividends declared | $ 110,612,331 | $ 54,339,823 | |||||||
Distributions payable | $ 3,411,890 | $ 3,411,890 | 4,595,301 | ||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001519 | $ 0.001683 | $ 0.001964 | ||||||
Common stock, distribution rate, percentage | 6.00% | 6.00% | 7.00% | ||||||
Share price (in dollars per share) | $ 9.24 | $ 10.24 | $ 10.24 | $ 9.24 | |||||
Dividends declared | $ 10,472,649 | $ 13,681,897 | $ 110,612,331 | $ 40,692,629 | |||||
Distributions payable | $ 3,411,890 | $ 3,411,890 | $ 4,595,301 | ||||||
Dividend Paid [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Distributions declared per common share (in dollars per share) | $ 1 | ||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 75,298,163 |
Stockholders' Equity - Distri_3
Stockholders' Equity - Distributions Paid (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class of Stock [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 10,851,615 | $ 13,692,248 | $ 111,795,742 | $ 40,859,650 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net income (loss) | $ (6,456,722) | $ (2,326,578) | $ 58,857,793 | $ (13,628,026) | $ 72,473,867 |
Less: dividends declared on participating securities | 1,784 | 2,419 | 5,997 | 7,177 | |
Net income (loss) attributable to common stockholders | $ (6,458,506) | $ (2,328,997) | $ 58,851,796 | $ (13,635,203) | |
Weighted average number of common shares outstanding — basic (in shares) | 74,928,285 | 75,707,400 | 75,164,006 | 75,884,934 | |
Weighted average number of common shares outstanding — diluted (in shares) | 74,940,350 | 75,707,400 | 75,176,774 | 75,884,934 | |
(Loss) income per common share — basic and diluted (in dollars per share) | $ (0.09) | $ (0.03) | $ 0.78 | $ (0.18) |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | $ 8,276,654 | $ 12,477,429 | $ 28,765,437 | $ 34,363,665 | |
Related party transactions, payable (prepaid) | 1,465,178 | 1,465,178 | $ 1,806,187 | ||
Investment Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 20,041 | 20,041 | 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) | 348,243 | 348,243 | 402,315 | ||
Property Management Reimbursement of Onsite Personnel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 991,220 | 991,220 | 772,584 | ||
Property Management Other Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 34,197 | 34,197 | 44,981 | ||
Property Management, Other Fees, Property Operations [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
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) | 137,025 | 137,025 | 87,221 | ||
Disposition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 566,625 | ||
Disposition Transaction Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Loan coordination fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transactions, payable (prepaid) | 0 | 0 | 86,675 | ||
Prepaid insurance [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 503,734 | 612,878 | 1,131,915 | 737,063 | |
Related party transactions, payable (prepaid) | (72,161) | (72,161) | (160,942) | ||
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 | 43,739 | 159,345 | 109,212 | 421,063 | |
Related party transactions, payable (prepaid) | 4,474 | 4,474 | 6,431 | ||
Construction Management Reimbursement of Labor Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 29,392 | 62,966 | 64,829 | 193,830 | |
Related party transactions, payable (prepaid) | 2,139 | 2,139 | 297 | ||
Capital Expenditures [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 1,500 | 15,202 | 39,680 | 53,882 | |
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Capitalized Costs on Investment in Unconsolidated Joint Venture [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 0 | 58,386 | 0 | |
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Capitalized Acquisition Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 0 | 245,048 | 0 | |
Related party transactions, payable (prepaid) | 0 | 0 | 0 | ||
Acquisition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 0 | 705,722 | 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 | 2,543,225 | 3,573,959 | 7,309,666 | 10,723,093 | |
Fees to Affiliates [Member] | Property Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 1,035,326 | 1,640,754 | 3,038,678 | 4,871,838 | |
Fees to Affiliates [Member] | Property Management Other Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 474,588 | 468,207 | 1,083,925 | 1,377,974 | |
Fees to Affiliates [Member] | Property Management, Other Fees, Property Operations [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 27,993 | 72,353 | 70,386 | 155,259 | |
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 | 37,028 | 28,591 | 71,754 | 99,016 | |
Fees to Affiliates [Member] | Disposition Transaction Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 15,469 | 67,464 | 15,469 | |
Acquisition expenses [Member] | Acquisition Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 7,415 | 0 | 230,732 | 0 | |
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 | 3,383,288 | 4,978,529 | 9,469,655 | 14,317,706 | |
General and Administrative Expense [Member] | Other Operating Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 129,426 | 248,051 | 805,175 | 898,494 | |
General and Administrative Expense [Member] | Loan coordination fee [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 60,000 | 0 | 422,160 | 0 | |
General and Administrative Expense [Member] | Insurance Proceeds [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | 0 | 0 | 0 | 102,147 | |
Sales of Real Estate [Member] | Disposition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, expenses from transactions with related party | $ 0 | $ 601,125 | $ 3,841,050 | $ 601,125 |
Related Party Arrangements - In
Related Party Arrangements - Investment Management Fee (Details) | 9 Months Ended |
Sep. 30, 2018 | |
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 | 0.06667% |
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, 2018 | |
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, 2018 | |
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 | 3.50% |
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, 2018 | |
Related Party Transaction [Line Items] | |
Construction management agreement, termination notification period | 30 days |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 6.00% |
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, 2018quarter | |
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, 2018$ / 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 - Lo
Related Party Arrangements - Loan Coordination Fee (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Steadfast Income Advisor, LLC and Affiliates [Member] | Steadfast Income Advisor, LLC [Member] | General and Administrative Expense [Member] | Loan coordination fee [Member] | |
Related Party Transaction [Line Items] | |
Loan coordination fee, percentage | 0.50% |
Related Party Arrangements - _2
Related Party Arrangements - Contributions, Settlement and Release Agreements (Details) - Company Subsidiaries and Property Manager [Member] - Texas Water Code [Member] | 9 Months Ended |
Sep. 30, 2018USD ($)lawsuit | |
Loss Contingencies [Line Items] | |
Number of class action lawsuits | lawsuit | 2 |
Litigation settlement amount | $ | $ 378,405 |
Incentive Award Plan and Inde_2
Incentive Award Plan and Independent Director Compensation (Details) - USD ($) | Aug. 09, 2018 | Aug. 10, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation | $ 34,832 | $ 38,131 | $ 69,422 | $ 68,191 | ||
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 | 7,500 | ||||
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 | 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 | 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 | 2,500 | ||||
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 Instrume_3
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, 2018USD ($)instrument | Dec. 31, 2017USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 14 | 18 |
Notional Amount | $ 386,897,000 | $ 458,655,000 |
Weighted Average Rate Cap | 2.91% | 2.89% |
Fair Value | $ 358,452 | $ 51,646 |
LIBOR [Member] | ||
Derivative [Line Items] | ||
Variable Rate | 2.26% | 1.56% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Unrealized (loss) gain on derivatives | $ 103,506 | $ (606,690) | |||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized (loss) gain on derivatives | $ 18,199 | $ (90,601) | 103,506 | (606,690) | |
Acquired interest rate cap agreements | 0 | 203,300 | $ 37,350 | ||
Deferred Financing Costs and Other Assets, Net [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Fair value of interest rate cap agreements | 358,452 | 358,452 | $ 51,646 | ||
Interest Expense [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized (loss) gain on derivatives | $ 18,199 | $ 103,506 |
Subsequent Events - Distributio
Subsequent Events - Distributions Paid (Details) - Dividend Paid [Member] - USD ($) | Nov. 01, 2018 | Oct. 01, 2018 | May 02, 2018 |
Subsequent Event [Line Items] | |||
Distributions paid, common stock, including distribution reinvestment plan | $ 75,298,163 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Distributions paid, common stock, including distribution reinvestment plan | $ 3,525,297 | $ 3,411,890 |
Subsequent Events - Repayment o
Subsequent Events - Repayment of Loans (Details) | Oct. 31, 2018USD ($) |
Subsequent Event [Member] | Notes Payable to Banks [Member] | Truman Farms Villas and EBT Lofts Properties [Member] | |
Subsequent Event [Line Items] | |
Repayments of Debt | $ 10,003,847 |
Subsequent Events - Shares Repu
Subsequent Events - Shares Repurchased (Details) - Share Repurchase Program [Member] - Common Stock [Member] - USD ($) | Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Repurchase of common stock (in shares) | 218,555 | 178,700 | 617,970 | 542,881 | |
Stock repurchase plan, stock redeemed, value | $ 2,000,000 | $ 2,000,000 | $ 6,000,000 | $ 6,000,000 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repurchase of common stock (in shares) | 218,800 | ||||
Stock repurchase plan, stock redeemed, value | $ 2,000,000 | ||||
Redemption price per share (in dollars per share) | $ 9.14 |
Subsequent Events - Distribut_2
Subsequent Events - Distributions Declared (Details) - $ / shares | Aug. 08, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2017 |
Subsequent Event [Line Items] | ||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001519 | $ 0.001519 | $ 0.001683 | $ 0.001964 | $ 0.001964 | $ 0.001964 |
Subsequent Events - Advisory Ag
Subsequent Events - Advisory Agreement (Details) | Nov. 07, 2018 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Loan coordination fee, percentage | 0.50% |