Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | Resource REIT, Inc. | ||
Entity Central Index Key | 0001559484 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Title of 12(g) Security | Common Stock, par value $0.01 per share | ||
Entity Shell Company | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-55430 | ||
Entity Tax Identification Number | 80-0854717 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Address, Address Line One | 1845 Walnut Street | ||
Entity Address, Address Line Two | 17th Floor | ||
Entity Address, City or Town | Philadelphia | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19103 | ||
City Area Code | 215 | ||
Local Phone Number | 231-7050 | ||
Entity Common Stock, Shares Outstanding | 166,259,239 | ||
Entity Public Float | $ 1,431,563,223 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Philadelphia, Pennsylvania | ||
Auditor Firm ID | 248 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments in real estate: | ||
Rental properties, net | $ 1,876,047 | $ 897,975 |
Identified intangible assets, net | 5 | |
Assets held for sale - rental properties | 150,176 | |
Total investments in real estate | 2,026,223 | 897,980 |
Cash | 112,838 | 70,015 |
Restricted cash | 10,420 | 14,769 |
Subtotal - cash and restricted cash | 123,258 | 84,784 |
Tenant receivables, net of allowance of $1,621 and $774, respectively | 1,121 | 516 |
Due from related parties | 2,763 | |
Prepaid expenses and other assets | 12,143 | 9,180 |
Goodwill | 154,531 | 154,935 |
Total assets | 2,317,276 | 1,150,158 |
Liabilities: | ||
Mortgage notes payable, net | 1,408,851 | 825,986 |
Accounts payable and accrued expenses | 22,664 | 15,867 |
Accrued real estate taxes | 10,960 | 7,370 |
Due to related parties | 20,245 | |
Tenant prepayments | 2,231 | 1,210 |
Security deposits | 4,975 | 2,860 |
Total liabilities | 1,449,681 | 873,538 |
Equity: | ||
Preferred stock, par value $.01; 10,000,000 shares authorized, none issued | ||
Common stock, par value $.01; 1,000,000,000 shares authorized; 165,766,753 and 86,075,442 shares issued and outstanding (including 1,055,589 and 790,272 of unvested restricted shares, respectively) | 1,658 | 861 |
Convertible stock; par value $.01; 50,000 shares authorized; 50,000 and 49,935 shares issued and outstanding, respectively | 1 | 1 |
Additional paid-in capital | 1,328,378 | 618,074 |
Accumulated other comprehensive income (loss) | 262 | (391) |
Accumulated deficit | (462,704) | (469,736) |
Total stockholders’ equity | 867,595 | 148,809 |
Noncontrolling interest | 127,811 | |
Total equity | 867,595 | 276,620 |
Total liabilities and equity | $ 2,317,276 | $ 1,150,158 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Tenant receivables, allowance | $ 1,621,000 | $ 774,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 165,766,753 | 86,075,442 |
Common stock, outstanding (in shares) | 165,766,753 | 86,075,442 |
Convertible stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible stock, authorized (in shares) | 50,000 | 50,000 |
Convertible stock, issued (in shares) | 50,000 | 49,935 |
Convertible stock, outstanding (in shares) | 50,000 | 49,935 |
Unvested Restricted Shares | ||
Common stock, issued (in shares) | 1,055,589 | 790,272 |
Common stock, outstanding (in shares) | 1,055,589 | 790,272 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Rental income | $ 240,877 | $ 133,242 | $ 135,171 |
Property management fee income - related parties | 342 | 1,493 | |
Asset management fee income - related parties | 833 | 3,571 | |
Other revenue | 37 | 232 | |
Total revenues | 242,089 | 138,538 | 135,171 |
Expenses: | |||
Property operating expenses | 64,845 | 38,786 | 38,480 |
Real estate taxes | 30,355 | 17,210 | 17,036 |
Acquisition costs | 113 | ||
Property management fees - third party | 6,690 | 2,023 | |
Property management fees- related party | 4,071 | 6,029 | |
Asset Management fees - related party | 8,518 | 12,505 | |
Transaction expenses | 465 | 2,282 | |
Casualty loss | 2,359 | 338 | 302 |
General and administrative- Property related | 5,818 | 3,643 | 3,595 |
General and administrative- Corporate | 25,303 | 8,543 | 6,462 |
Loss on disposal of assets | 848 | 656 | 541 |
Depreciation and amortization expense | 96,918 | 51,460 | 53,814 |
Total expenses | 233,601 | 137,643 | 138,764 |
Income (loss) before net gains on dispositions | 8,488 | 895 | (3,593) |
Net gains on dispositions of properties | 93,665 | 38,810 | |
Income before other income (expense) | 102,153 | 895 | 35,217 |
Other income (expense): | |||
Interest expense | (47,377) | (25,723) | (37,908) |
Interest income | 22 | 217 | 374 |
Gain on sale of land easement | 310 | ||
Insurance proceeds in excess of cost basis | 311 | 168 | 570 |
Total other income (expense) | (47,044) | (25,028) | (36,964) |
Income (loss) before income taxes | 55,109 | (24,133) | (1,747) |
Provision for income taxes | (206) | ||
Net income (loss) | 54,903 | (24,133) | (1,747) |
Redemption of preferred OP units | (342) | ||
Preferred return to preferred OP unit holders | (3,161) | (1,406) | |
Net income (loss) after preferred return | 51,400 | (25,539) | (1,747) |
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest | 158 | 101 | |
Less: Net loss attributable to noncontrolling interest | 696 | 279 | |
Net income (loss) attributable to common stockholders | $ 52,254 | $ (25,159) | $ (1,747) |
Weighted average common shares outstanding- basic | 153,820 | 85,531 | 85,861 |
Weighted average common shares outstanding - diluted | 153,889 | 85,531 | 85,861 |
Net loss per common share- basic and diluted | $ 0.34 | $ (0.29) | $ (0.02) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net income (loss) | $ 54,903 | $ (24,133) | $ (1,747) |
Other comprehensive income (loss): | |||
Reclassification adjustment for realized loss on designated derivatives | 42 | 124 | 344 |
Designated derivatives, fair value adjustments | 620 | (306) | (88) |
Total comprehensive income (loss) | 55,565 | (24,315) | (1,491) |
Redemption of preferred OP units | (342) | ||
Preferred return to preferred OP unit holders | (3,161) | (1,406) | |
Total comprehensive income (loss) after preferred return to preferred OP unit holders | 52,062 | (25,721) | (1,491) |
Net loss attributable to noncontrolling interest | 696 | 279 | |
Allocation of income to preferred unit holders attributable to noncontrolling interest | 158 | 101 | |
Total other comprehensive loss (income) attributable to noncontrolling interest | (9) | 9 | |
Comprehensive (income) loss attributable to noncontrolling interest | 845 | 389 | |
Comprehensive income (loss) attributable to common stockholders | $ 52,907 | $ (25,332) | $ (1,491) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock | Convertible Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity | Noncontrolling Interest |
Beginning balance at Dec. 31, 2018 | $ 236,306 | $ 862 | $ 500 | $ 626,278 | $ (474) | $ (390,361) | $ 236,306 | |
Beginning balance (in shares) at Dec. 31, 2018 | 86,220,000 | 50,000 | ||||||
Common stock issued through distribution reinvestment plan | 24,499 | $ 29 | 24,470 | 24,499 | ||||
Common stock issued through distribution reinvestment plan (in shares) | 2,916,000 | |||||||
Distributions declared | (42,020) | (42,020) | (42,020) | |||||
Common stock redemptions | (34,120) | $ (41) | (34,079) | (34,120) | ||||
Common stock redemptions (in shares) | (4,051,000) | |||||||
Rescission redemptions | (359) | (359) | (359) | |||||
Rescission redemptions (in shares) | (40,000) | |||||||
Other comprehensive income (loss) | 256 | 256 | 256 | |||||
Net income (loss) | (1,747) | (1,747) | (1,747) | |||||
Ending balance at Dec. 31, 2019 | 182,815 | $ 850 | $ 500 | 616,310 | (218) | (434,128) | 182,815 | |
Ending balance (in shares) at Dec. 31, 2019 | 85,045,000 | 50,000 | ||||||
Issuance of operating partnership units in Self- Management Transaction | 128,200 | $ 128,200 | ||||||
Common stock issued through distribution reinvestment plan | 6,085 | $ 7 | 6,078 | 6,085 | ||||
Common stock issued through distribution reinvestment plan (in shares) | 717,000 | |||||||
Issuance of restricted stock | $ 8 | (8) | ||||||
Issuance of restricted stock (in shares) | 791,000 | |||||||
Stock-based compensation | 10 | 10 | 10 | |||||
Distributions declared | (10,449) | (10,449) | (10,449) | |||||
Common stock redemptions | (4,320) | $ (4) | (4,316) | (4,320) | ||||
Common stock redemptions (in shares) | (477,000) | |||||||
Preferred return to preferred OP unit holders or Allocation of income to preferred unit holders | (1,406) | (1,305) | (1,305) | (101) | ||||
Other comprehensive income (loss) | (182) | (173) | (173) | (9) | ||||
Net income (loss) | (24,133) | (23,854) | (23,854) | (279) | ||||
Ending balance at Dec. 31, 2020 | $ 276,620 | $ 861 | $ 500 | 618,074 | (391) | (469,736) | 148,809 | 127,811 |
Ending balance (in shares) at Dec. 31, 2020 | 86,075,442 | 86,076,000 | 50,000 | |||||
Merger | $ 645,275 | $ 712 | 644,563 | 645,275 | ||||
Merger (in shares) | 71,222,000 | |||||||
Common stock issued through distribution reinvestment plan | 10,575 | $ 12 | 10,563 | 10,575 | ||||
Common stock issued through distribution reinvestment plan (in shares) | 1,228,000 | |||||||
Issuance of restricted stock | $ 5 | (5) | ||||||
Issuance of restricted stock (in shares) | 581,000 | |||||||
Stock-based compensation | 4,572 | 4,572 | 4,572 | |||||
Distributions declared | (46,332) | (45,222) | (45,222) | (1,110) | ||||
Common stock redemptions | $ (7,977) | $ (7) | (7,970) | (7,977) | ||||
Common stock redemptions (in shares) | (879,789) | (880,000) | ||||||
Preferred return to preferred OP unit holders or Allocation of income to preferred unit holders | $ (3,161) | (3,016) | (3,016) | (145) | ||||
Rescission redemptions (in shares) | (20,520,287) | |||||||
Conversion of common OP units to common stock | $ 75 | 58,581 | 58,656 | (58,656) | ||||
Conversion of common OP units to common stock (in shares) | 7,540,000 | |||||||
Redemption of preferred OP units | $ (67,542) | (329) | (329) | (67,213) | ||||
Other comprehensive income (loss) | 662 | 653 | 653 | 9 | ||||
Net income (loss) | 54,903 | 55,599 | 55,599 | $ (696) | ||||
Ending balance at Dec. 31, 2021 | $ 867,595 | $ 1,658 | $ 500 | $ 1,328,378 | $ 262 | $ (462,704) | $ 867,595 | |
Ending balance (in shares) at Dec. 31, 2021 | 165,766,753 | 165,767,000 | 50,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 54,903 | $ (24,133) | $ (1,747) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Loss on disposal of assets | 848 | 656 | 541 |
Net gain on disposition of property | (93,665) | (38,810) | |
Net gain on sale of land easement | (310) | ||
Loss on extinguishment of debt | 1,462 | 64 | 69 |
Casualty gain | (2,966) | (703) | (527) |
Depreciation and amortization | 96,918 | 51,460 | 53,814 |
Amortization of deferred financing costs | 2,554 | 1,478 | 2,320 |
Amortization of debt premium (discount), net | 23 | (315) | (333) |
Realized loss on change in fair value of interest rate cap | 42 | 124 | 344 |
Stock based compensation | 4,572 | 10 | |
Accretion of discount and direct loan fees and costs | (76) | (43) | |
Changes in operating assets and liabilities: | |||
Tenant receivables | (292) | (327) | (6) |
Due to/from related parties, net | 23 | 1,088 | (349) |
Prepaid expenses and other assets | 4,975 | (2,008) | (19) |
Accounts payable and accrued expenses | 3,400 | 4 | (1,259) |
Tenant prepayments | (626) | 122 | (51) |
Security deposits | 378 | 354 | 120 |
Net cash provided by operating activities | 72,549 | 27,488 | 14,064 |
Cash flows from investing activities: | |||
Cash acquired in connection with Merger, net of acquisition costs | 76,858 | ||
Proceeds from disposal of property, net of closing costs | 99,402 | 17,532 | |
Proceeds from sale of land easement | 313 | ||
Principal payments received on loans held for investment | 885 | 27 | |
Working capital pain in Self-Management Transaction | (811) | ||
Payment of consideration related to Self-Management Transaction | (19,125) | (7,875) | |
Insurance proceeds received for casualty losses | 4,011 | 847 | 749 |
Capital expenditures | (28,424) | (11,297) | (14,423) |
Net cash provided by (used in) investing activities | 132,722 | (17,938) | 3,885 |
Cash flows from financing activities: | |||
Redemptions of common and convertible stock | (7,977) | (4,320) | (34,120) |
Recission of common stock | (359) | ||
Redemption of preferred OP units | (67,542) | ||
Payment of deferred financing costs | (5,523) | (116) | |
Borrowings on mortgages | 33,202 | 34,369 | 26,676 |
Repayments on borrowings | (79,470) | (11,655) | (9,230) |
Purchase of interest rate caps | (569) | (348) | (62) |
Distributions paid on common stock and participating OP Units | (35,757) | (4,364) | (17,521) |
Distributions paid to preferred unit holders | (3,161) | (286) | |
Net cash (used in) provided by financing activities | (166,797) | 13,396 | (34,732) |
Net increase (decrease) in cash and restricted cash | 38,474 | 22,946 | (16,783) |
Cash and restricted cash at beginning of year | 84,784 | 61,838 | 78,621 |
Cash and restricted cash at end of year | $ 123,258 | $ 84,784 | $ 61,838 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of cash and restricted cash | ||||
Cash | $ 112,838 | $ 70,015 | $ 49,534 | |
Restricted cash | 10,420 | 14,769 | 12,304 | |
Subtotal - cash and restricted cash | $ 123,258 | $ 84,784 | $ 61,838 | $ 78,621 |
Nature of Business and Operatio
Nature of Business and Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Operations | NOTE 1 - NATURE OF BUSINESS AND OPERATIONS Resource REIT, Inc., (the “Company”), formerly known as Resource Real Estate Opportunity REIT II, Inc. (“REIT II”) was organized in Maryland on September 28, 2012. REIT II launched an initial public offering in February 2014, the primary portion of which terminated in February 2016. Substantially all of the business of Resource REIT, Inc. is conducted through RRE Opportunity OP II, LP (“OP II” or the “Operating Partnership”) in which Resource REIT, Inc. is the sole general partner. The Company has adopted a fiscal year ending December 31. Resource REIT, Inc.'s objective is to make investments in apartment communities to provide investors with growing cash flow and increasing asset values. The Company has acquired underperforming apartments which it has or will renovate and stabilize in order to increase rents. Resource REIT, Inc. elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ending December 31, 2014. Resource REIT, Inc. also operates its business in a manner intended to permit it to maintain its exemption from registration under the Investment Company Act of 1940, as amended. As such, to maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90 % of its net income (excluding net capital gains) to its stockholders as well as comply with certain other requirements. Accordingly, the Company generally will not be subject to U.S. federal income taxes to the extent that it annually distributes all of its REIT taxable income to its stockholders. The Company also operates its business in a manner that will permit it to maintain its exemption from registration under the Investment Company Act of 1940, as amended. Prior to the execution of the REIT I Merger Agreement (as defined below), on September 8, 2020 , Resource Real Estate Opportunity REIT, Inc. ("REIT I"), a non-traded real estate investment trust ("REIT") sponsored by Resource America, Inc. (“RAI”), the Company’s initial sponsor, entered into a series of transactions to become self-managed (the “Self-Management Transaction”) and succeeded to the advisory, asset management and property management arrangements in place for the Company. Accordingly, the sponsor of the Company changed from RAI to Resource Real Estate Opportunity OP, LP, the operating partnership of REIT I, while the REIT I Merger (defined below) was pending. As of December 31, 2021 , a total of 165.8 million shares of common stock, including shares issued through the distribution reinvestment plan, remain outstanding. Blackstone Merger On January 23, 2022 , the Company, Rapids Parent LLC (“Parent”) and Rapids Merger Sub LLC (“Rapids Merger Sub”) entered into an Agreement and Plan of Merger (the “Blackstone Merger Agreement”). The Blackstone Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, the Company will merge with and into Rapids Merger Sub (the “Blackstone Merger”). Upon completion of the Blackstone Merger, Rapids Merger Sub will survive and the separate existence of the Company will cease. The Blackstone Merger and the other transactions contemplated by the Blackstone Merger Agreement were unanimously approved by the Company’s Board of Directors (the “Board”). Parent and Rapids Merger Sub are affiliates of Blackstone Real Estate Income Trust, Inc. (“BREIT”), which is an affiliate of Blackstone Inc. Pursuant to the terms and conditions in the Blackstone Merger Agreement, at the effective time of the Blackstone Merger (the “Effective Time”), each share of common stock (or fraction thereof), $ 0.01 par value per share, of the Company that is issued and outstanding immediately prior to the Effective Time will be automatically cancelled and converted into the right to receive an amount in cash equal to $ 14.75 (the “Common Stock Consideration”), without interest. In addition, at the Effective Time, each share of convertible stock (or fraction thereof), $ 0.01 par value per share, of the Company that is issued and outstanding immediately prior to the Effective Time will be automatically cancelled and converted into the right to receive an amount in cash equal to $ 1,846.76 , without interest. The Blackstone Merger Agreement contains customary representations, warranties and covenants, including, among others, covenants by the Company to conduct its business in all material respects in the ordinary course of business and in a manner consistent with past practice, subject to certain exceptions, during the period between the execution of the Blackstone Merger Agreement and the consummation of the Blackstone Merger. The consummation of the Blackstone Merger is subject to certain customary closing conditions, including, among others, approval of the Blackstone Merger by the affirmative vote of the holders of a majority of the outstanding shares of the Company’s common stock entitled to cast a vote on the Blackstone Merger (the “Stockholder Approval”). The Company will hold a special meeting on May 16 , 2022 for the purpose of obtaining the Stockholder Approval. In addition, the holders of at least two-thirds of the outstanding shares of the Company’s convertible stock entitled to vote on the Blackstone Merger have approved the Blackstone Merger by written consent in accordance with Maryland law and our charter and bylaws. Mergers with Resource Real Estate Opportunity REIT, Inc. and Resource Apartment REIT III, Inc. On September 8, 2020 , REIT II entered into merger agreements (as described herein) to acquire each of REIT I and Resource Apartment REIT III, Inc. (“REIT III”) in stock-for-stock transactions whereby each of REIT I and REIT III were to be merged into one of REIT II’s wholly owned subsidiaries. The REIT I Merger (as defined below) and the REIT III Merger (as defined below) are referred to collectively herein as the Resource REIT Mergers. Each of the Resource REIT Mergers was intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended. The Resource REIT Mergers became effective as of January 28, 2021 . REIT I Merger On September 8, 2020 , REIT II, OP II, Revolution I Merger Sub, LLC, a wholly-owned subsidiary of REIT II (“Merger Sub I”), REIT I, and Resource Real Estate Opportunity OP, LP (“OP I”), the operating partnership of REIT I, entered into an Agreement and Plan of Merger (the “REIT I Merger Agreement”). Effective January 28, 2021 , REIT I merged with and into Merger Sub I, with Merger Sub I surviving as direct, wholly-owned subsidiary of REIT II (the “REIT I Company Merger”) and OP I merged with and into OP II (the “REIT I Partnership Merger” and, together with the REIT I Company Merger, the “REIT I Merger”), with OP II surviving. At such time, the separate existence of REIT I and OP I ceased. At the effective time of the REIT I Company Merger, each issued and outstanding share of REIT I’s common stock (or fraction thereof) converted into the right to receive 1.22423 shares of REIT II’s common stock, and each issued and outstanding share of REIT I’s convertible stock converted into the right to receive $ 0.02 in cash (without interest). At the effective time of the REIT I Partnership Merger, each common unit of partnership interests in OP I outstanding immediately prior to the effective time of the REIT I Partnership Merger converted into the right to receive 1.22423 common units of partnership interest in OP II ("OP Common Units") and each Series A Cumulative Participating Redeemable Preferred Unit in OP I issued and outstanding immediately prior to the effective time of the REIT I Partnership Merger converted into the right to receive one Series A Cumulative Participating Redeemable Preferred Unit in OP II ("OP Preferred Units"). REIT III Merger On September 8, 2020 , REIT II, OP II, Revolution III Merger Sub, LLC, a wholly-owned subsidiary of REIT II (“Merger Sub III”), REIT III, and Resource Apartment OP III, LP (“OP III”), the operating partnership of REIT III, entered into an Agreement and Plan of Merger (the “REIT III Merger Agreement”). Effective January 28, 2021 , REIT III merged with and into Merger Sub III, with Merger Sub III surviving as a direct, wholly-owned subsidiary of REIT II (the “REIT III Company Merger”) and OP III merged with and into OP II (the “REIT III Partnership Merger” and, together with the REIT III Company Merger, the “REIT III Merger”), with OP II surviving the REIT III Partnership Merger. At such time, the separate existence of REIT III and OP III ceased. The REIT I Merger and the REIT III Merger are hereinafter together referred to as the “ Resource REIT Mergers”. At the effective time of the REIT III Company Merger, each issued and outstanding share of REIT III’s common stock (or fraction thereof) converted into the right to receive 0.925862 shares of REIT II’s common stock. At the effective time of the REIT III Partnership Merger, each common unit of partnership interests in OP III outstanding immediately prior to the effective time of the REIT III Partnership Merger was retired and ceased to exist. In addition, for each share of REIT II common stock issued in the REIT III Company Merger, a common unit of partnership interest was issued to REIT II by OP II. Effective as of the close of the REIT I Merger, REIT II acquired Resource Real Estate Opportunity Advisor II, LLC and Resource Real Estate Opportunity Advisor, LLC (the “Former Advisor”), Resource Apartment Advisor III, LLC and became a self-managed REIT. In connection with the Resource REIT Mergers, REIT II was the legal acquirer and REIT I was the accounting acquirer for financial reporting purposes, as discussed in Note 6, Rental Properties. Thus, the financial information set forth herein subsequent to the Resource REIT Mergers reflects results of the combined entity, and the financial information set forth herein prior to the Resource REIT Mergers reflects REIT I’s results. For this reason, period to period comparisons may not be meaningful. On September 8, 2020, REIT I, entered into a series of transactions to become self-managed (the “Self-Management Transaction”) as further described in Note 3, Self-Management Transaction, and succeeded to the advisory, asset management and property management arrangements in place for the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States of America ("GAAP"). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Segment Reporting The Company does not evaluate performance on a relationship specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist of periodic temporary deposits of cash. At December 31, 2021, the Company had $ 125.3 million of deposits at various banks, $ 108.1 million of which were over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such deposits. Rental Properties The Company records acquired real estate at fair value on their acquisition date. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates the asset using the straight line method. The Company's estimated useful lives of its assets by class are as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture and fixtures 2.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related lease Improvements and replacements are capitalized when they have a useful life greater than or equal to one year . The Company pays a construction management fee of 5.0 % of actual aggregate costs to Greystar to construct improvements, or to repair, rehab or reconstruct a property. These costs are capitalized along with the related asset. Costs of repairs and maintenance are expensed as incurred. As of December 31, 2021 , the Company's real estate investments located in Texas, Georgia, Illinois, Colorado, and California represent approximately 26 %, 13 %, 12 %, 10 %, and 7 % of the portfolio. This makes it particularly susceptible to adverse economic developments in these real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for multifamily rentals resulting from the local business climate, could negatively affect the Company's liquidity and adversely affect its ability to fund its ongoing operations. Impairment of Long Lived Assets The Company periodically evaluates its long-lived assets, primarily investments in rental properties, for impairment indicators. The review considers factors such as past and expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for permanent impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. An impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss would be the adjustment to fair value less the estimated cost to dispose of the asset. In conjunction with the Resource REIT Merger and for the Company’s annual estimated value per share calculation in 2020 and 2019, the Company engaged with a third-party to provide the estimated fair value of its rental properties as of January 28, 2021, December 31, 2020 and 2019, respectively. The Company compared these values to its carrying values and concluded that there was no indication that the carrying value of the Company’s investments in real estate were not recoverable as of December 31, 2021, 2020 and 2019. There were no impairment losses recorded on long lived assets during the years ended December 31, 2021, 2020 and 2019 . Casualty Loss The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage and business interruption. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in other income when the proceeds are received. Allocation of Purchase Price of Acquired Assets On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU No. 2017-01"). Acquisitions that do not meet the definition of a business under this guidance are accounted for as asset acquisitions. In most cases, the Company believes that acquisitions of real estate will no longer be considered a business combination as in most cases substantially all of the fair value is concentrated in a single identifiable asset or group of tangible assets that are physically attached to each other (land and building). However, if the Company determines that substantially all of the fair value of the gross assets acquired is not concentrated in either a single identifiable asset or in a group of similar identifiable assets, the screen is not met, and the Company will then perform an assessment to determine whether the set is a business by using the framework outlined in the ASU. If the Company determines that the acquired asset is not a business, the Company will allocate the cost of the acquisition including transaction costs to the assets acquired or liabilities assumed based on their related fair value. Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings, fixtures and improvements, identified intangible lease assets, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases, the value of tenant relationships, and liabilities, based in each case on their fair values. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases. The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if vacant. Management’s estimates of value are determined by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered in the analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. Management also estimates costs to execute similar leases including leasing commissions and legal and other related expenses to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. The total amount of other intangible assets acquired is further allocated to customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics considered by management in allocating these values include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. The Company amortizes the value of in-place leases to expense over the remaining term of the underlying leases. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does amortization periods for the intangible assets exceed the remaining depreciable life of the building. The determination of the fair value of the assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the fair value of these assets and liabilities, which could impact the Company's reported net income (loss). Goodwill The Company records the excess of the cost of an acquired entity over the difference between the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed as goodwill. Goodwill is not amortized but is tested for impairment at a level of reporting referred to as a reporting unit during the fourth quarter of each calendar year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. There have been no such events or changes in circumstances during the years ended December 31, 2021 and 2020. Revenue Recognition and Receivables The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease, which is accounted for in accordance with Accounting Standards Codification ("ASC") 842, Leases (“ASC 842”). The future minimum rental payments to be received from noncancelable operating leases are approximate ly $ 124.2 million and $ 1.7 million for the years ending December 31, 2022 and 2023, and no ne thereafter. These figures include future minimum rentals from noncancelable operating leases for residential real estate properties held for sale of approximate ly $ 9.8 million and $ 130,000 for the years ending December 31, 2022 and 2023, and no ne thereafter. The future minimum rental payments to be received from noncancelable operating leases for both commercial rental properties and antenna rentals are $ 423,000 , $ 389,000 , $ 336,000 , $ 253,000 , and $ 184,000 for the years ending December 31, 2022 through December 31, 2026, respectively, and $ 1.1 million thereafter. Revenue is primarily derived from the rental of residential housing units for which the Company receives minimum rents and utility reimbursements pursuant to underlying tenant lease agreements. The Company also receives other ancillary fees for administration of leases, late payments, amenities, and revenue sharing arrangements for cable income from contracts with cable providers at the Company's properties (discussed below). A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The Company records the utility reimbursement income and ancillary charges in the period when the performance obligation is completed, either at a point in time or on a monthly basis as the service is utilized. The Company has cable income revenue sharing arrangements from contracts with cable providers at the Company's properties. Included in accrued expenses and other liabilities on the consolidated balance sheets at December 31, 2021 and 2020 is a contract liability related to deferred revenue from contracts with cable providers of approximately $ 1.7 million and $ 760,000 , respectively. The Company recognizes income from these contracts on a straight line basis over the contract period of 10 years to 12 years . During the years ended December 31, 2021, 2020 and 2019, approximate ly $ 275,000 , $ 118,000 and $ 77,000 , respectively of revenue from the contract liability was recognized as income. The Company evaluates its portfolio of operating leases for collectability at both the onset of the underlying leases and on an ongoing basis. Tenant receivables include amounts for which collectability was assessed as probable in accordance with the guidance in ASC 842-30. For tenant receivables, which include base rents, straight-line rentals, expense reimbursements and other revenue or income, the Company also estimates a general allowance for uncollectible accounts under ASC 450-20. The Company determines the collectability of its receivables related to rental revenue by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, and the condition of the general economy and the industry as a whole. If collectability is not probable, the Company adjusts rental income for the amount of the uncollectible revenue. Due to the COVID-19 pandemic, some residents have experienced difficulty making rent payments and the Company’s receivables have increased compared to historical levels. As of December 31, 2021 and 2020, the Company recorded a $ 1.6 million an d $ 774,000 , respectively, allowance for bad debts to appropriately reflect management’s estimate for uncollectible accounts. The total adjustment to rental and other property income for the years ended December 31, 2021, 2020 and 2019 were $ 2.0 million, $ 1.2 million and $ 299,000 respectively, for provision for bad debt, net of recoveries . The provision for bad debts was recorded as a reduction to rental income in the Company’s consolidated statements of operations and comprehensive loss. The age of the receivables included in the allowance balance at December 31, 2021 was: 13.1 % less than 30 days past due, 11.9 % 31-60 days past due, 1.2 % 61-90 days past due and 73.8 % over 90 days past due. Following the Self- Management Transaction (described in Note 3 below) through the effective date of the Resource REIT Mergers on January 28, 2021, the Company received asset management and property management fees from REIT II and REIT III. The monthly asset management fee was equal to one-twelfth of 1.0% of the cost of each asset held by REIT II and one-twelfth of 1.0% of the appraised value of each asset held by REIT III, without deduction for depreciation, bad debts or other non-cash reserves. The monthly property management fee was calculated based on 4.5 % of the gross monthly receipts from REIT II's and REIT III’s properties. The Company recognized revenue for both asset and property management fees as earned on a monthly basis. The Company had determined under ASC 606 – Revenue from Contracts with Customers (“ASC 606”), that the performance obligation for asset and property management services are satisfied as the services are rendered. The Company was compensated for its services on a monthly basis and these services represent a series of distinct daily services in accordance with ASC 606. As a result of the Resource REIT Mergers, these fees are no longer being paid. Leases For operating leases where the Company is the lessor, the underlying leased asset is recognized as real estate on the balance sheet. The Company, as a lessor of multifamily apartment units, has nonlease components associated with these leases (i.e. common area maintenance, utilities, etc.). The Company combines nonlease component revenue streams and accounts for them as a combined component with leasing revenue. For leases in which the Company is the lessee, primarily consisting of office leases, a parking lot lease, and office equipment leases, the Company recognizes a right-of-use (“ROU”) asset and a lease liability equal to the present value of the minimum lease payments. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company’s consolidated balance sheets. The Company uses a market rate for equipment leases, when readily determinable, in calculating the present value of lease payments. Otherwise, the incremental borrowing rate is used. The operating lease ROU asset includes any lease payments and excludes lease incentives. Operating lease terms may include options to extend the lease when it is reasonably certain the lease will be extended. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ended December 31, 2014. To maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90 % of its taxable net income (excluding net capital gains) to its stockholders as well as comply with other requirements, including certain asset, income and stock ownership tests. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100 % of its REIT taxable income each year. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it is subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it fails its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. The dividends paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Taxable income, generally, will differ from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company may elect to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”). In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. While a TRS may generate net income, a TRS can declare dividends to the Company which will be included in the Company’s taxable income and necessitate a distribution to its stockholders. Conversely, if the Company retains earnings at a TRS level, no distribution is required and the Company can increase book equity of the consolidated entity. As of December 31, 2021 and 2020, the Company treated one of its subsidiaries as a TRS. The Company evaluates the benefits from tax positions taken or expected to be taken in its tax return. Only the largest amount of benefits from tax positions that will more likely than not be sustainable upon examination are recognized by the Company. The Company does not have any unrecognized tax benefits, nor interest and penalties, recorded in its consolidated financial statements and does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next 12 months. The Company is subject to examination by the U.S. Internal Revenue Service and by the taxing authorities in other states in which the Company has significant business operations. The Company is not currently undergoing any examinations by taxing authorities. The Company is not subject to IRS examination for the tax return years 2017 and prior. Earnings Per Share Basic earnings per share is calculated on the basis of the weighted-average number of common shares outstanding during the year. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share take into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. Distributions declared per common share assume each share was issued and outstanding each day during the period or based upon the two-class method, whichever is more dilutive. The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts): Years Ended December 31, 2021 2020 2019 Numerator for earnings per share: Net income (loss) $ 54,903 $ ( 24,133 ) $ ( 1,747 ) Redemption of preferred OP units ( 342 ) — — Preferred return to preferred OP unit holders ( 3,161 ) ( 1,406 ) — Net income (loss) after preferred return 51,400 ( 25,539 ) ( 1,747 ) Less: Allocation of income to preferred unit holders attributable to noncontrolling interest 158 101 — Less: Net loss attributable to noncontrolling interest 696 279 — Net income (loss) attributable to common stockholders $ 52,254 $ ( 25,159 ) $ ( 1,747 ) Denominator for earnings per share: Weighted average common shares outstanding 153,820 85,531 85,861 Denominator for basic earnings per share 153,820 85,531 85,861 Weighted average unvested restricted stock 69 — — Denominator for diluted earnings per share 153,889 85,531 85,861 Earnings per weighted average common share: Basic $ 0.34 $ ( 0.29 ) $ ( 0.02 ) Diluted $ 0.34 $ ( 0.29 ) $ ( 0.02 ) No ne of the shares of convertible stock (see Note 12) or 467,461 unvested performance awards that vest only upon a liquidation event are included in the diluted earnings per share calculations, because the necessary conditions for conversion have not been satisfied as of December 31, 2021 (were such date to represent the end of the contingency period). Prior to their redemption and/or conversion, net losses attributable to outstanding OP Common Units and OP Preferred Units were included in net (income) loss attributable to noncontrolling interest, and therefore, were excluded from the calculation of income (loss) per common share, basic and diluted, for all periods presented. Reclassifications Certain amounts in the prior years’ financial statements have been reclassified to conform to the current-year presentation. On the consolidated statements of operations, Management fees- related party were split into two line items, Property management fees – related party and Asset management fees- related party; certain administrative expenses previously reflected in rental operating expenses are now included in general and administrative expenses; general and administrative is now presented in two line items for corporate and property related; and casualty losses have been broken out from rental operating expenses and presented on a separate line. On the consolidated balance sheet, Operating lease right-of-use assets is included in Prepaid expenses and other assets, and Operating lease liabilities are now included in Accounts payable and accrued expenses. All shares presented for prior periods have been converted based on the exchange ratio of 1.22423 (See REIT I Merger in Note 1). The impact of the reclassifications made to prior year amounts are not material and did not affect net loss. Adoption of New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848).” ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. During the year ended December 31, 2021 , the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Self-Management Transaction
Self-Management Transaction | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Self-Management Transaction | NOTE 3 - SELF-MANAGEMENT TRANSACTION On September 8, 2020, OP I, entered into the Self-Management Transaction with Resource PM Holdings LLC (“PM Holdings”), Resource NewCo LLC (“Advisor Holdings”), C-III Capital Partners LLC (“C-III” or “PM Contributor”), RRE Legacy Co, LLC (formerly known as Resource Real Estate, LLC) (“Advisor Contributor” or “Resource Real Estate”) and Resource America, Inc. (“RAI”), pursuant to which C-III and RAI contributed to OP I all of the membership interests in PM Holdings and Advisor Holdings and certain assets related to the business of PM Holdings and Advisor Holdings including 100 % of the membership interests in PM Holdings and Advisor Holdings and $ 659,000 of leasehold improvements and furniture in exchange for approximately 6.2 million common operating partnership units in OP I (“OP I Common Units”) and 319,965 Series A Preferred Units in OP I (“OP I Preferred Units”) (collectively “OP I Units”). Additional consideration included the following deferred payments in cash: (i) $ 7.5 million paid upon the effectiveness of the Resource REIT Merger; (ii) six monthly payments of $ 2.0 million, totaling $ 12.0 million, for the six months following the closing of the Self-Management Transaction and (iii) 12 monthly payments of $ 625,000 , totaling $ 7.5 million, for the 12 months following the closing of the Self-Management Transaction. At the time of the REIT I Partnership Merger, the OP I Common Units converted into approximately 7.5 million OP Common Units; the participation rights of the OP I Preferred Units increased to 391,711 OP Preferred Units. On September 13, 2021, the Company entered into a letter agreement with C-III and Legacy Co, and on September 14, 2021, the Company redeemed all of the 319,965 outstanding Series A Preferred Units collectively held by C-III and Legacy Co and exchanged all of the 7,539,737.53 common units collectively held by C-III and Legacy Co for an equivalent number of shares of common stock of the Company. As part of the Self-Management Transaction, REIT I paid outstanding obligations due to RAI of approximately $ 811,000 , presented in the table below as “Net working capital” consisting primarily of approximately $ 4.3 million in accrued management fees transferred to the Company as well as approximately $ 150,000 of prepaid rent, software subscriptions, and security deposits. Additionally, the Company assumed payroll liabilities of approximately $ 2.9 million and approximately $ 684,000 due to the third-party property manager, Greystar. The operating leases for office space in Philadelphia, Pennsylvania and Denver, Colorado were assumed. In accordance with ASC 842, Leases, an operating lease right of use asset and liability were calculated and reflected as part of the Self-Management Transaction. As part of the Self-Management Transaction, OP I hired the workforce currently responsible for the management and day-to-day real estate and accounting operations of the Company under the various agreements acquired. As part of the Self-Management Transaction, REIT I recorded approximately $ 2.3 million of transaction costs during the year ended December 31, 2020. Under the terms of the Self-Management Transaction, the following consideration was given in exchange (in thousands): Fair value of OP I Units issued $ 128,200 Net working capital 811 Subsequent consideration 27,000 Net consideration $ 156,011 The Self-Management Transaction was accounted for as a business combination in accordance with ASC 805, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date and transaction costs to be expensed. The fair value of the OP Units issued was based on a valuation report prepared by a third-party valuation specialist that was subject to management’s review and approval. The following table summarizes the purchase price allocation (dollars in thousands): Assets: Due from related parties $ 4,299 Prepaid expenses and other assets 150 Goodwill 154,531 Property and equipment 659 Operating lease right-of-use assets 3,244 Total assets acquired $ 162,883 Liabilities: Other liabilities $ 3,628 Operating lease liabilities 3,244 Total liabilities assumed 6,872 Net assets acquired $ 156,011 The allocation of the purchase price above required a significant amount of judgment and represented management’s best estimate of the fair value as of the acquisition date. Goodwill In connection with the Self-Management Transaction, the Company recorded goodwill of approximately $ 154.5 million as a result of the consideration exceeding the fair value of the net assets acquired. Goodwill represents the estimated future benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded represents the Company's management structure and the cost savings associated with acquiring the Advisor and eliminating the management fee arrangement. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table presents supplemental cash flow information (in thousands): Years Ended December 31, 2021 2020 2019 Non-cash financing and investing activities: Stock issued pursuant to distribution reinvestment plan $ 10,575 $ 6,085 $ 24,499 Accrual for construction in process 2,237 848 2,470 Repayments on borrowings through refinancing 461,968 130,539 58,350 Lease liabilities arising from obtaining right-of-use assets — — 526 Accrued allocation of income to preferred unit holders — 1,120 — Deferred financing costs, interest, and fees funded through refinancing — 3,245 973 Non-cash activity related to sales: Mortgage notes payable settled directly with proceeds from sale of rental property 65,900 — 61,041 Non-cash activity related to Self-Management Transaction: Due to related parties for acquisition of net assets acquired in Self-Management Transaction — 19,125 — Operating Partnership units issued in exchange for net assets acquired in Self-Management Transaction — 128,200 — Non-cash activity related to Resource REIT Merger: Net assets acquired in REIT II Merger in exchange for common shares 543,840 — — Net assets acquired in REIT III Merger in exchange for common shares 101,435 — — Implied REIT I common stock issued in exchange for net assets acquired in Resource REIT Merger 645,275 — — Cash paid during the period for: Interest $ 41,865 $ 25,106 $ 35,936 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 5 - RESTRICTED CASH Restricted cash represents escrow deposits with lenders to be used to pay real estate taxes, insurance, debt service, and capital improvements. The following table presents a summary of the components of the Company's restricted cash (in thousands): December 31, 2021 December 31, 2020 Real estate taxes $ 6,879 $ 7,910 Insurance 1,486 1,350 Debt service reserve 157 2,045 Capital improvements 1,898 3,464 Total $ 10,420 $ 14,769 |
Investments in Real Estate
Investments in Real Estate | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Abstract] | |
Investments in Real Estate | NOTE 6 - INVESTMENTS IN REAL ESTATE As of December 31, 2021, the Company's investments in rental properties consisted o f 45 a partment properties that contain 13,707 un its. The following table summarizes the Company’s investments in rental properties (in thousands): December 31, December 31, Land $ 293,492 $ 196,355 Building and improvements 1,799,028 929,323 Furniture, fixtures and equipment 53,438 46,879 Construction in progress 8,318 1,374 2,154,276 1,173,931 Less: accumulated depreciation ( 278,229 ) ( 275,956 ) $ 1,876,047 $ 897,975 Depreciation expense for the years ended December 31, 2021, 2020, and 2019 was approximately $ 88.5 million, $ 51.5 million, and $ 53.8 million, respectively. Assets Held for Sale During the three months ended December 31, 2021, the Company entered into agreements to sell three rental properties, Maxwell Townhomes, The Bryant at Yorba Linda and Sunset Ridge, with net book values totaling approximately $ 150.2 million. The Company confirmed the intent and ability to sell these properties in their present conditions and these properties qualified for held for sale accounting treatment upon meeting all applicable criteria prior to December 31, 2021, at which time depreciation ceased. As such, the assets associated with these properties were separately classified and included as assets held for sale on the Company's consolidated balance sheet as of December 31, 2021. The Company completed the sales of Maxwell Townhomes and The Bryant at Yorba Linda on January 20, 2022 and Sunset Ridge on March 22, 2022. The following table summarizes the Company's investments in rental properties held for sale (in thousands): December 31, 2021 Land $ 58,577 Building and improvements 134,489 Furniture, fixtures and equipment 8,179 Construction in progress 97 201,342 Less: accumulated depreciation ( 51,166 ) Assets held for sale - rental properties $ 150,176 Resource REIT Mergers Both the REIT I Merger and the REIT III Merger (collectively the “ Resource REIT Mergers”) were accounted for as asset acquisitions under ASC 805 as substantially all of the fair value of the gross assets acquired are Class B multifamily rental properties. The total purchase price was allocated to the individual assets acquired and liabilities assumed based upon their relative fair values. Based on an evaluation of the relevant factors and the guidance in ASC 805, all of which required significant management judgment, the entity in the Resource REIT Mergers considered the acquirer for accounting purposes was not the legal acquirer. In order to make this determination, various factors were analyzed, including which entity issued its equity interests, relative voting rights, existence of minority interests (if any), control of the board of directors, management composition, relative size, transaction initiation, and other factors such as operational structure, and relative composition of employees, and other factors. The strongest factors identified were the relative size of the companies and management composition. Based on financial measures, REIT I was a larger entity than REIT II and REIT III. REIT I had more common stock outstanding at a higher net asset value than REIT II and REIT III and upon the consummation of the Resource REIT Mergers was issued more shares of REIT II than were held by REIT II stockholders or than were issued to REIT III stockholders in the REIT III Merger. REIT I also contained the management entity. Based on these factors, REIT I was concluded to be the accounting acquirer. The assets (including identifiable intangible assets) and liabilities of REIT II and REIT III as of the effective time of the respective Resource REIT Mergers were recorded at their respective relative fair values and added to those of REIT I. Transaction costs incurred by REIT I in connection with the Resource REIT Mergers were capitalized in the period in which the costs were incurred and services were received. The total purchase price was allocated to the individual assets acquired and liabilities assumed based upon their relative fair values based on appraisals and other methods. Intangible assets were recognized at their relative fair values in accordance with ASC 805. The REIT I Merger was effected by each of REIT I’s 70.3 million issued and outstanding shares of common stock being converted into the right to receive 1.22423 shares (“REIT I Exchange Ratio”) of common stock of REIT II (“REIT II Common Stock”), for a total of 86.1 million newly issued shares of REIT II Common Stock. The 60.0 million issued and outstanding shares of REIT II Common Stock that were outstanding at the time of the REIT I Merger remain outstanding. As the REIT I Merger is considered a reverse acquisition, the total consideration transferred was computed on the basis of an estimated net asset value per share of the merged entity of $ 9.06 per share as of January 28, 2021, divided by the REIT I Exchange Ratio to compute the estimated REIT I value per share as of January 28, 2021 of approximately $ 11.09 per share. Consideration transferred is calculated as such (in thousands except share and per share data): Merged entity estimated net asset value as of Resource REIT Merger date $ 9.06 REIT I exchange ratio 1.22423 REIT I estimated value per share as of January 28, 2021 $ 11.09 REIT II common stock outstanding as of January 28, 2021 60,026,513 REIT I exchange ratio 1.22423 Implied REIT I common stock issued as consideration 49,032,055 REIT I estimated value per share as of January 28, 2021 $ 11.09 Value of implied REIT I common stock issued as consideration $ 543,840 The allocation of the values of the real estate and other assets and liabilities as of January 28, 2021, inclusive of $ 5.0 million in estimated capitalized transaction costs and elimination of intercompany balances between REIT I and REIT II, is as follows (in thousands): Assets: Land $ 127,920 Building and improvements 940,630 Intangibles 6,765 Cash and restricted cash 67,563 Other assets 6,062 Total assets $ 1,148,940 Liabilities: Mortgage notes payable, net of $ 3.0 million discount $ 580,676 Due to related parties 988 Accounts payable and other liabilities 18,456 Total liabilities 600,120 Fair value of net assets acquired $ 548,820 Less: REIT I's Merger expenses 4,980 Fair value of net assets acquired, less REIT I's Merger expenses $ 543,840 Although REIT I is the accounting acquirer, REIT II is the legal acquirer of both REIT III and REIT I. As such, the 12.1 million issued and outstanding shares of REIT III common stock were converted into the right to receive 0.925862 newly issued shares of REIT II Common Stock. Consideration transferred is calculated as such (in thousands except share and per share data): REIT III common stock outstanding as of January 28, 2021 12,092,466 REIT III exchange ratio 0.925862 REIT II shares issued as consideration 11,195,955 REIT I exchange ratio 1.22423 Implied REIT I common stock issued as consideration 9,145,303 REIT I estimated value per share as of January 28, 2021 $ 11.09 Value of implied REIT I common stock issued as consideration $ 101,435 The allocation of the values of the real estate and other assets and liabilities as of January 28, 2021, inclusive of approximately $ 929,000 in estimated capitalized transaction costs and elimination of intercompany balances between REIT I and REIT III, is as follows (in thousands): Assets: Land $ 43,733 Building and improvements 184,400 Intangibles 1,609 Cash and restricted cash 22,969 Other assets 626 Total assets $ 253,337 Liabilities: Mortgage notes payable, net of $ 2.1 million premium $ 147,191 Due to related parties 836 Accounts payable and other liabilities 2,946 Total liabilities 150,973 Fair value of net assets acquired $ 102,364 Less: REIT I's Merger expenses 929 Fair value of net assets acquired, less REIT I's Merger expenses $ 101,435 Valuation and Purchase Price Allocation The Company obtained third party appraisals for all properties included in the Resource REIT Mergers which the Company utilized to allocate the purchase price based on the relative fair value. Land was valued based on similar (but not identical) transactions in the subject properties market with the appraiser making adjustments based on both qualitative and quantitative data (Level 3). The buildings were valued based on the “as-if-vacant” value which is estimated using an income, or discounted cash flow model, using market assumptions pertaining to, among other items, absorption period, lease-up costs, market rent, operating expenses and terminal capitalization and discount rates (Level 3). Capitalization rates used in the analysis ranged from 4.5 % to 5.5 % and discount rates ranged from 5 % to 7.25 %. Building improvements and furniture, fixtures and equipment were valued using the cost approach, in which the appraiser utilized Marshall Valuation Service as the source for the replacement cost and life estimates and included soft costs and entrepreneurial incentive. The total cost estimates were depreciated based on the estimated effective ages of each asset compared to their anticipated lives. In place leases were valued using market rent estimates for units based on recently signed leases as well as market rents signed at competing properties. A downtime estimate was then applied to each tenant based upon their market leasing assumption. The lease in place value is calculated as the total market rent multiplied by the downtime of each tenant, aggregated by unit type (Level 3). Assumed debt was valued based on recently closed transactions and investor surveys for spreads and rates applicable to each property. The market interest rate was calculated using the most applicable treasury rate based on the remaining term of the debt and applying a market-derived spread (Level 3). The revenue and net loss of the 23 properties ( 6,508 units) acquired in the Resource REIT Mergers is as follows for the year ended December 31, 2021 (in thousands): REIT II REIT III Total Revenue $ 84,212 $ 20,778 $ 104,990 Net loss $ ( 5,696 ) $ ( 2,322 ) $ ( 8,018 ) Pro Forma Financial Information (unaudited) The following condensed pro forma operating information is presented as if the Resource REIT Mergers and the Self–Management Transaction had been included in operations as of January 1, 2020 (in thousands, except per share data):  Year Ended Year Ended  December 31, 2021 December 31, 2020 Revenue $ 248,584 $ 239,902 Net income (loss) $ 63,457 $ ( 63,985 ) Net loss attributable to noncontrolling interests $ 373 $ 3,287 Net income (loss) attributable to common stockholders $ 60,327 $ ( 65,178 ) Net income (loss) to common stockholders per share, basic and diluted $ 0.38 $ ( 0.41 ) Dispositions The Company disposed of five properties during the year ended December 31, 2021 and two properties during the year ended December 31, 2019. There were no dispositions during the years ended December 31, 2020. The following table presents details of the Company’s disposition activity during the years ended December 31, 2021 and December 31, 2019 (in thousands): Multifamily Community Location Sale Date Contract Sales Price Net Gain on Disposition Revenue Attributable to Property Sold Net (Loss) Income Attributable to Properties Sold 2021 Dispositions: Evergreen at Coursey Baton Rouge, LA June 29, 2021 $ 49,751 $ 18,734 $ 2,272 $ ( 107 ) The Retreat at Rocky Ridge Hoover, AL October 12, 2021 25,400 17,665 1,962 384 Tech Center Square Newport News, VA October 21, 2021 36,700 22,949 2,407 463 The Brookwood Homewood, AL October 26, 2021 45,300 6,385 3,134 ( 210 ) Pines of York Yorktown, VA November 2, 2021 45,000 27,932 2,926 254 $ 202,151 $ 93,665 $ 12,701 $ 784 2019 Dispositions: Williamsburg Cincinnati, OH March 8, 2019 $ 70,000 $ 34,575 $ 2,151 $ ( 1,431 ) Pinehurst Kansas City, MO December 20, 2019 12,310 4,235 1,427 ( 460 ) $ 82,310 $ 38,810 $ 3,578 $ ( 1,891 ) |
Identified Intangible Assets, N
Identified Intangible Assets, Net and Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets, Net and Goodwill | NOTE 7 - IDENTIFIED INTANGIBLE ASSETS, NET AND GOODWILL Identified intangible assets, net, r elate to in-place apartment unit rental and antennae l eases. Th e net carrying value of the acquired in-place leases totaled zero and $ 5,000 as o f December 31, 2021 and 2020, respectively, net of accumulated amortization of approximately $ 32.3 million and $ 27.1 million, respectively. The net carrying value of acquired in-place leases were fully amortized in the third quarter of 2021. Amortization of the in-place apartment unit rentals wa s approximately $ 8.4 million f or the year ended December 31, 2021. There was no amortization of in-place apartment unit rentals for the year ended December 31, 2020 and 2019. As of December 31, 2021 and 2020, the Company had approximately $ 154.5 million and $ 154.9 million, respectively, of goodwill included on the consolidated balance sheets. The table below presents the rollforward of activity in goodwill for the year ended December 31, 2021: Balance, January 1, 2021 $ 154,935 Sale of Evergreen at Coursey Place ( 268 ) Sale of Pines of York ( 136 ) Balance, December 31, 2021 $ 154,531 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 8 - D EBT The following table presents a summary of the Company's debt, net (in thousands): Weighted Average Maturity in Years at December 31, 2021 December 31, 2020 December 31, 2021 Mortgage notes payable, net - variable rate $ 607,711 $ 675,791 3.86 Mortgage notes payable, net - fixed rate 801,140 150,195 6.29 Total mortgage notes payable, net $ 1,408,851 $ 825,986 5.24 Revolving credit facility $ — $ — — Weighted average interest rate on mortgages - variable 2.05 % 2.12 % Weighted average interest rate on mortgages - fixed 2.96 % 4.03 % Weighted average interest rate on revolving credit facility — — Weighted average interest rate on total debt 2.56 % 2.46 % The following table presents the Company's annual future principal payments on outstanding borrowings as of December 31, 2021 (in thousands): 2022 $ 38,899 2023 39,943 2024 226,578 2025 191,219 2026 95,567 Thereafter 823,115 $ 1,415,321 Structured Credit Facility On January 28, 2021, subsidiaries of the Company (collectively, “Borrower”) entered into a structured credit facility transaction with CBRE Multifamily Capital, Inc. for delivery of loans and/or advances to Fannie Mae (the “Facility”) for a term of 15 years (the “Facility Termination Date”). Pursuant to the terms of the loan documents for the Facility, the lender agreed to make advances at both fixed and variable rates to Borrower during the term of the Facility provided that Borrower satisfies certain customary conditions as set forth in the Facility loan documents (the “Loan Documents”), including debt service coverage tests and loan-to-value tests. The fixed rate advances in the Facility may have terms not less than five or more than 15 years from the closing of such advance and variable rate advances in the Facility may have terms not less than five or more than 10 years from the closing of such advance. All advances must have maturity dates that do not exceed the Facility Termination Date. Borrower has the option to convert variable rate advances to fixed rate advances beginning on the first day of the second year of the variable rate advance term and ending seven years prior to the Facility Termination Date, subject to the satisfaction of customary requirements set forth in the Loan Documents. The Facility is non-recourse to the Borrower except for the customary exceptions to non-recourse provisions of the Loan Documents (“carve-outs”). The Borrower’s obligations for the carve-outs are guaranteed solely by the Borrowers. The Company is the key principal under the Facility and as such must continue to indirectly own an interest in each Borrower and is subject to certain transfer restrictions with respect to its ownership interest in each Borrower as provided in the Loan Documents. In addition, the Facility contains customary representations and warranties, financial and other covenants, events of default and remedies typical for this type of facility. The initial advance of approximately $ 495.2 million under the Facility occurred on January 28, 2021 and is secured by the following twelve multifamily properties located in Arizona, Colorado, Georgia, Oregon and Texas (including five properties formerly held by REIT II): Estates at Johns Creek, Heritage Pointe, Providence in the Park, South Lamar Village, Verona Apartments, Westside, 81 Fifty at West Hills, Adair off Addison I & II, Montclair Terrace, Palmer at Las Colinas, and Uptown Buckhead. The proceeds from the initial advance were used to refinance or pay off $ 462.0 million of the Company’s debt. Loans that were repaid in full were loans secured by Vista Apartment Homes, Cannery Lofts, Retreat at Rocky Ridge, Tech Center Square, and Aston at Cinco Ranch. The Company recorded approximately $ 4.6 million of extinguishment costs upon the refinance for the year ended December 31, 2021 including approximately $ 2.4 million in prepayment penalties, included in Interest Expense on the Consolidated Statements of Operations. Additional information about the initial advance on the Facility, which is included in Mortgage notes payable, net on the Consolidated Balance Sheet as of December 31, 2021, is as follows (in thousands): Collateral Original Loan Amount Maturity Date Type Annual Interest Rate Fixed Advance 1 $ 235,205 2/1/2031 Fixed 2.79 % Fixed Advance 2 $ 235,205 2/1/2028 Fixed 2.62 % Floating Advance $ 24,760 2/1/2031 Floating (1) 2.11 % (1) Floating rate based on 30-day average SOFR plus a fixed margin of 2.06 %. Revolving Credit Facility On May 20, 2021, the Company entered into a Credit Agreement (the “Credit Facility”) for which BofA Securities, Inc. acted as sole book runner and sole lead arranger and Bank of America, N.A. acted as administrative agent and L/C issuer (the “Credit Agreement”). The Credit Facility is a secured revolving credit facility in the initial amount of approximately $ 100.0 million, including approximately $ 15.0 million available in letters of credit, subject to the Company's ability to increase the lenders’ aggregate commitment during the term of the Credit Agreement to a maximum of approximately $ 500.0 million, subject to certain limitations. The availability of borrowings under the Credit Facility will be based on the value of a pool of eligible income-producing multifamily properties owned, directly or indirectly and from time to time, by the Company or subsidiaries of the Company. The Credit Facility is a three-year interest-only facility with all outstanding principal due at maturity, subject to a one-year extension option. The Credit Facility may be prepaid or terminated at any time without penalty. The proceeds of the Credit Facility may be used for general corporate purposes, including refinancing existing indebtedness and working capital. The Credit Facility is guaranteed by the Company and certain subsidiaries of the Company, and secured by a pledge of the equity interests of certain of the Company’s subsidiaries. Borrowings under the Credit Facility will bear interest, at the Company’s option, at either the Eurodollar Rate (defined as a rate equal to LIBOR or a comparable or successor rate) for a designated interest period plus an applicable margin, or the base rate (as defined as the highest of the Bank of America prime rate, the federal funds rate plus 0.50 % or the Eurodollar Rate plus 1.0 %) plus an applicable margin. The anticipated applicable margin for borrowings under the Credit Facility for base rate loans will range from 0.60 % to 1.20 % per annum and the applicable margin for Eurodollar Rate loans will range from 1.60 % to 2.20 % per annum, depending on the ratio of consolidated total indebtedness to total asset value (as such terms are defined in the Credit Agreement), with the lowest rate applying if such ratio is less than 45 %, and the highest rate applying if such ratio is equal to or greater than 60 %. The Company is also required to pay a fee to the lenders that is assessed on the unused portion of the facility. A default rate will apply on all obligations in the event of default under the Credit Facility at 2.0 % above the otherwise applicable rate. The Company is also subject to certain financial covenants, including (i) the ratio of the Company’s consolidated indebtedness to total asset value not to exceed 65 % as of the last day of each of the first six fiscal quarters ending after May 20, 2021 and 60 % as of the last day of each fiscal quarter thereafter; (ii) consolidated secured recourse indebtedness other than the Credit Facility not to exceed 5 % of total asset value; (iii) consolidated fixed charge coverage ratio not less than 1.35 x to 1.00x as of the last day of each of the first four fiscal quarters ending after May 20, 2021 and 1.50 x to 1.00x as of the last day of each fiscal quarter thereafter; and (iv) tangible net worth of not less $ 678.8 million, plus 75 % of the net proceeds of any future equity issuances by the Company or any of its consolidated subsidiaries. The Company is in compliance with each of the applicable financial covenants as of December 31, 2021. There were no borrowings under the Credit Facility during the year ended December 31, 2021. As of December 31, 2021 , availability under the Credit Facility was approximately $ 100.0 million a nd was secured by pledges of the ownership interests in the subsidiaries that own six apartment communities: Vista Apartment Homes, Cannery Lofts, Aston at Cinco Ranch, Bay Club, Windbrooke and Perimeter 5550. The Company has approximately $ 1.1 million of deferred finance costs for the Credit Facility which is included in Prepaid Expenses and Other Assets on the Consolidated Balance Sheet as of December 31, 2021, which will be amortized over the term of the Credit Facility. During the year ended December 31, 2021, approximately $ 230,000 of amortization of deferred financing costs related to the Credit Facility were included in interest expense. Accumulated amortization of deferred financing costs related to the Credit Facility as of December 31, 2021 was approximately $ 230,000 and the net book value of deferred financing costs related to the Credit Facility as of December 31, 2021 related to mortgage notes payable was approximately $ 892,000 . In addition, the Company paid $ 188,333 in unused fees for the year ended December 31, 2021 on the Credit Facility. Other Mortgage notes payable assumed as part of both the Resource REIT Mergers and the acquisitions of Point Bonita Apartment Homes, Paladin (Pines of York and Evergreen at Coursey (prior to their sales)), and Maxwell were recorded at their fair values. The premium or discount is amortized over the remaining term of the loans and included in interest expense. The net premium or discount included in the consolidated balance sheets as of December 31, 2021 was approximatel y $ 162,000 . For the years ended December 31, 2021 ,2020 and 2019, interest expense was increased by approximately $ 21,000 and reduced by approximately $ 315,000 and $ 333,000 , re spectively, for the amortization of the premium or discount. As of December 31, 2021, the Company ow ned 37 apartment co mmunities that served as collateral for mortgages payable. All mortgage notes are collateralized by a first mortgage lien on the assets of the respective property. The amount outstanding on the mortgages may be prepaid in full during the entire term with a prepayment penalty on the majority of mortgages held. The mortgage notes payable are recourse only with respect to the properties that secure the notes, subject to certain limited standard exceptions, as defined in each mortgage note. These exceptions are referred to as “carveouts.” The Company has guaranteed the carveouts under mortgage notes, other than the notes with respect to the Credit Facility, by executing a guarantee with respect to the properties. In general, carveouts relate to damages suffered by the lender for a borrower’s failure to pay rents, insurance or condemnation proceeds to lender, failure to pay water, sewer and other public assessments or charges, failure to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the Company to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loan if the borrower voluntarily files for bankruptcy or seeks reorganization, or if a related party of the borrower does so with respect to the subsidiary. As of December 31, 2021, the Company believes that there are no material defaults or instances of noncompliance in regards to any of these mortgages payable. The Company had a $ 74.4 million mortgage note payable secured by The Bryant at Yorba Linda which included net worth, liquidity, and debt service coverage ratio covenants. The Company repaid the debt upon the sale of the property on January 20, 2022. During the three months ended December 31, 2021, the Company repaid four mortgage notes payable (Perimeter 5550, Bay Club, Windbrooke, and Trailpoint at the Woodlands) and paid approximately $ 938,000 in prepayment penalties, included in Interest Expense on the Consolidated Statements of Operations. Deferred financing costs incurred to obtain financing are amortized over the term of the related debt. During the years ended December 31, 2021, 2020 and 2019, $ 3.8 million, $ 1.5 million and $ 2.3 million, respectively, of amortization of deferred financing costs was included in interest expense. Accumulated amortization of deferred financing costs related to mortgages payable as of December 31, 2021 and 2020 was approximately $ 4.6 million and $ 6.3 million, respectively and the net book value of deferred financing costs as of December 31, 2021 and 2020 related to mortgage notes payable was $ 6.3 million and $ 5.7 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 9 – LEASES As the lessee, the Company’s operating leases primarily consist of office leases, a parking lot lease and office equipment leases. These operating leases have remaining terms ranging from less than one year to six years . Some of the leases include options to extend the lease for up to an additional five years . Only those rental periods reasonably certain to be extended beyond the initial term expiration are included within the calculation of the operating lease liability. As of December 31, 2021, the payments due under the contractually obligated portion of these leases totaled $ 2.8 million. The market rate is used for leases, when readily determinable, in calculating the present value of lease payments for the operating lease liability. Otherwise, the incremental borrowing rate based on the information available at commencement date is used. As of December 31, 2021, the weighted average remaining lease term was 4.69 years a nd the weighted average discount rate was 2.21 % for the Company’s operating leases. As of December 31, 2021, the Company included approximatel y $ 2.6 million i n its consolidated balance sheet for operating lease right-of-use assets and liabilities . As a part of the Self-Management Transaction, the Company assumed an office lease in Philadelphia, Pennsylvania (“the Philadelphia office lease”). The Philadelphia office lease has a remaining five-year term expiring September 2026 and requires current monthly minimum rental payments of $ 45,034 plus a proportionate share of the utilities, taxes and other operating expenses of the building. The Company’s lease expense related to the parking lot lease for the years ended December 31, 2021, 2020 and 2019 was approximately $ 36,000 , which is included in rental operating expenses in the consolidated statements of operations. The Company’s lease expense related to all other leases for the years ended December 31, 2021, 2020 and 2019 was approximately $ 624,000 , $ 253,000 and $ 126,000 , respectively, which is included in general and administrative expenses in the consolidated statements of operations. The following table presents the Company’s annual payments for the operating lease liabilities (including reasonably assured extension periods) for each of the next five 12–month periods ending December 31, and thereafter (in thousands): Future minimum operating lease payments: 2022 $ 583 2023 572 2024 573 2025 586 2026 448 Thereafter — Total future minimum operating lease payments 2,762 Less: imputed interest ( 138 ) Operating lease liabilities $ 2,624 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in each component of the Company's accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019 (in thousands): Balance, January 1, 2019 $ ( 474 ) Reclassification adjustment for realized loss on designated derivatives 344 Designated derivatives, fair value adjustments ( 88 ) Balance, December 31, 2019 ( 218 ) Reclassification adjustment for realized loss on designated derivatives 124 Designated derivatives, fair value adjustments ( 306 ) Noncontrolling interest 9 Balance, December 31, 2020 ( 391 ) Reclassification adjustment for realized loss on designated derivatives 42 Designated derivatives, fair value adjustments 620 Noncontrolling interest ( 9 ) Balance, December 31, 2021 $ 262 |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | NOTE 11 – CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS In the ordinary course of its business operations, the Company had relationships with several related parties. Relationship with C-III and RAI As of December 31, 2021, C-III and its subsidiary, Legacy Co, collectively own approximately 8.3 million common shares. Following the Self-Management Transaction and prior to September 14, 2021, C-III and Legacy Co collectively owned approximately 7.5 million OP Common Units and 319,965 OP Preferred Units and had the right to designate one individual to be included on the board of directors of the Company. In accordance with a letter agreement between the parties, on September 14, 2021, the Company redeemed all of the 319,965 outstanding Series A Preferred Units collectively held by C-III and Legacy Co for $ 67.5 million and exchanged all of the 7,539,737.53 common units collectively held by C-III and Legacy Co for an equivalent number of shares of common stock of the Company. In addition, on that date, the board nominee resigned his position as a member of the board of directors of the Company. Prior to the Self-Management Transaction, C-III controlled our Former Advisor as well as the external advisors to REIT II and REIT III, as indirect subsidiaries of RAI, and owned the property management entities for the Company, REIT II and REIT III. On September 8, 2020, the Company entered into a Transitional Services Agreement with C-III, Advisor Contributor and RAI (the “Transitional Services Agreement”), pursuant to which, effective September 8, 2020 and for a one-year period, C-III provided to the Company and its affiliates and subsidiaries certain services in order to ensure an orderly transition and the continued conduct and operation of the advisory and property management business acquired by the Company in connection with the Self-Management Transaction. In connection with these services, the Company has paid C-III an agreed-upon monthly fee for each service provided, as well as reimbursement of out-of-pocket expenses incurred by C-III and RAI as a result of the provision of these services. C-III also reimbursed the Company for services provided by the Company’s employees to C-III during this period. In addition, C-III sublet from the Company a portion of the office space in Philadelphia until December 31, 2020. Property loss pool : The Company participated (with other properties directly or indirectly managed by RAI and C-III) in a catastrophic insurance policy, which covered claims up to $ 250.0 million, after either a $ 25,000 or a $ 100,000 deductible per incident, depending on location and/or type of loss. Therefore, unforeseen or catastrophic losses in excess of the Company's insured limits could have a material adverse effect on the Company's financial condition and operating results. This policy expired on March 1, 2021 and was replaced with similar coverage in the normal course of business independent of RAI and C-III. General liability coverage : The Company (with other properties directly managed by RAI) had an insured and dedicated limit for the general liability of $ 1,000,000 per occurrence. Total claims were limited to $ 2.0 million per premium year. In excess of these limits, the Company participated (with other properties directly or indirectly managed by RAI and C-III) in a $ 50.0 million per occurrence excess liability program. Therefore, the total insured limit per occurrence was $ 51.0 million for the general and excess liability program, after a $ 25,000 deductible per incident. This policy expired on March 1, 2021 and was replaced with similar coverage in the normal course of business independent of RAI and C-III. Internal audit fees. Prior to the Self-Management Transaction, RAI performed internal audit services for the Company. Directors and officers insurance: Prior to the Self-Management Transaction in September 2020, the Company participated in a liability insurance program for directors and officers coverage with other C-III managed entities and subsidiaries. Thereafter, until the effectiveness of the Resource REIT Mergers, the Company participated in a liability insurance program for directors and officers coverage with REIT II and REIT III. Other expenses . The Company utilized the services of The Planning and Zoning Resource Company, a subsidiary of C-III, for zoning reports for acquisitions. Relationship with the Former Advisor The Company is party to an advisory agreement (the “Advisory Agreement”), pursuant to which the Former Advisor provided the Company with investment management, administrative and related services. The Advisory Agreement has a one-year term and may be renewed for an unlimited number of successive one-year terms. The current term of the Advisory Agreement expires on September 14, 2022. Under the Advisory Agreement, the Former Advisor received fees and was reimbursed for its expenses as set forth below. Following the Self-Management transaction, the Company is no longer externally advised and these fees are no longer being paid: Acquisition fees. The Company paid the Former Advisor an acquisition fee of 2.0 % of the cost of investments acquired on behalf of the Company, plus any capital expenditure reserves allocated, or the amount funded by the Company to acquire loans, including acquisition expenses and any debt attributable to such investments. Asset management fees. The Company paid the Former Advisor a monthly asset management fee equal to one -twelfth of 1.0 % of the higher of the cost or the independently appraised value of each asset, without deduction for depreciation, bad debts or other non-cash reserves. The asset management fee was based only on the portion of the costs or value attributable to the Company’s investment in an asset if the Company did not own all or a majority of an asset and does not manage or control the asset. Disposition fees. The Former Advisor earned a disposition fee in connection with the sale of a property equal to the lesser of one -half of the aggregate brokerage commission paid, or if none is paid, 2.75 % of the contract sales price. Debt financing fees. The Former Advisor earned a debt financing fee equal to 0.5 % of the amount available under any debt financing obtained for which it provided substantial services. Expense reimbursements. The Company also paid directly or reimbursed the Former Advisor for all of the expenses paid or incurred by the Former Advisor or its affiliates on behalf of the Company or in connection with the services provided to the Company in relation to its public offering, including its ongoing distribution reinvestment plan offering. Reimbursements also included expenses the Former Advisor incurred in connection with providing services to the Company, including the Company’s allocable share of costs for Former Advisor personnel and overhead, out of pocket expenses incurred in connection with the selection and acquisition of properties or other real estate related debt investments, whether or not the Company ultimately acquires the investment. However, the Company did not reimburse the Former Advisor or its affiliates for employee costs in connection with services for which the Former Advisor earned acquisition or disposition fees. Following the Self-Management Transaction, REIT I, as the indirect owner of the advisor to REIT II and REIT III, received asset management fees, property management fees and debt financing fees from REIT II and REIT III until the Resource REIT Merger in January 2021. Relationship with Resource Real Estate Opportunity Manager Prior to the Self-Management Transaction, Resource Real Estate Opportunity Manager (the “Manager”) managed the Company's real estate properties and real estate-related debt investments and coordinated the leasing of, and managed construction activities related to, some of the Company’s real estate properties pursuant to the terms of the management agreement with the Manager. On the date of the Self-Management Transaction, the Manager became an indirect subsidiary of the Company. Property management fees . Prior to the Self-Management Transaction, the Manager earned 4.5 % of the gross receipts from the Company's properties, provided that for properties that were less than 75 % occupied, the manager received a minimum fee for the first 12 months of ownership for performing certain property management and leasing activities. The Manager subcontracted certain services to an unaffiliated third-party, Greystar, and paid for those services from its property management fee. Construction management fees . The Manager earned a construction management fee of 5.0 % of actual aggregate costs to construct improvements to, or to repair, rehab or reconstruct a property. Debt servicing fees . The Manager earned a debt servicing fee of 2.75 % on payments received from loans held by the Company for investment. Information technology fees and operating expense reimbursement. During the ordinary course of business, the Manager or other affiliates of RAI paid certain shared information technology fees and operating expenses on behalf of the Company for which they were reimbursed. Relationship with ACRES Commercial Realty Corp. (“ACR”) The Company provided office space and other office-related services to ACRES Commercial Realty Corp. (f/k/a Exantas Capital Corp.) under a sublease that was assigned from RAI which terminated on March 31, 2021. In addition, three employees of the Company provided internal audit services until March 31, 2021 under an internal audit engagement letter that was assigned from RAI to Resource NewCo LLC, a subsidiary of the Company. The Company's Chief Financial Officer was a director of ACR until June 2021. The following table presents the Company's amounts payable to, and amounts receivable from, such related parties (in thousands): December 31, December 31, Due from related parties: REIT II Management fees $ — $ 327 Operating expense reimbursements — 1,588 — 1,915 REIT III Management fees — 79 Deferred organization and offering costs reimbursements — 769 — 848 $ — $ 2,763 Due to related parties: C-III/RAI Self-Management Transaction consideration $ — $ 19,125 Allocation of income to preferred unit holders — 1,120 $ — $ 20,245 The following table presents the Company's fees earned by, and expenses paid to, such related parties (in thousands): Years Ended December 31, 2021 2020 2019 Fees earned / expenses paid to related parties: Former Advisor (prior to 9/8/2020): Acquisition costs (1) $ — $ 113 $ — Asset management fees (2) — 8,517 12,498 Disposition fees (3) — — 453 Debt financing fees (4) — 43 116 Overhead allocation (5) — 2,955 3,663 Internal audit (5) — 75 108 Manager (prior to 9/8/2020): Property management fees (2) $ — $ 4,071 $ 6,034 Construction management fees (1) — 298 500 Construction payroll reimbursements (1) — — 97 Operating expense reimbursements (6) — — 184 Debt servicing fees (2) — 1 2 REIT II (prior to 1/28/2021): Asset management fee income $ 669 $ 2,866 $ — Property management fee income 275 1,198 — Debt financing fees — 184 — Operating expense reimbursements (5) 371 1,529 — Internal audit (5) 8 33 — REIT III (prior to 1/28/2021): Asset management fee income $ 164 $ 705 $ — Property management fee income 67 295 — C-III/RAI: Transition services paid to C-III (5) $ 2 $ 182 $ — Transition services paid to the Company (5) — 17 — Sublease rent reimbursement (5) — 15 — Preferred unit distributions 3,161 1,406 — Common OP unit distributions 1,110 — — ACR: Internal audit (7) $ 37 $ 47 $ — Sublease rent reimbursement (5) 30 44 — Other: The Planning & Zoning Resource Company (4) $ — $ — $ 2 (1) Included in Acquisition costs on the consolidated statements of operations and comprehensive loss. (2) Included in Management fees on the consolidated statements of operations and comprehensive loss. (3) Included in Net gain on disposition of property on the consolidated statements of operations and comprehensive loss. (4) Included in Mortgage notes payable, net on the consolidated balance sheets. (5) Included in General and administrative costs on the consolidated statements of operations and comprehensive loss. (6) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. (7) Included in Other revenue on the consolidated statements of operations and comprehensive loss. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | NOTE 12 – EQUITY Preferred Stock The Company’s charter authorizes the Company to issue 10.0 million shares of its $ 0.01 par value preferred stock. As of both December 31, 2021 and 2020 , no shares of preferred stock were issued or outstanding. Common Stock As of December 31, 2021, the Company had an aggregate of 165.8 million sh ares of $ 0.01 par value common stock outstanding, including 1.1 million shares of unvested restricted shares. In accordance with the Company's distribution reinvestment plan ("DRP"), participants in the DRP acquired shares of common stock under the plan at a price equal to 95% of the current estimated value per share of common stock. Commencing on March 31, 2021, participants acquired shares of the Company's common stock under the plan at a price equal to $ 8.61 per share. In conjunction with the Blackstone Merger, on January 23, 2022, the Board suspended the DRP. The following table summarizes the activity (dollars in thousands): Shares Gross Shares issued through private offering 1,279,227 $ 12,737 Shares issued through primary public offering 129,923,354 1,289,845 Shares issued through stock distributions 2,406,986 — Shares issued through distribution reinvestment plan 29,042,460 279,519 Restricted shares issued to employees 1,370,952 — Shares issued through conversion of common OP units 7,539,738 — Shares issued in conjunction with the Resource REIT Mergers 14,724,323 — Total 186,287,040 $ 1,582,101 Shares redeemed and retired ( 20,520,287 ) Total shares issued and outstanding as of December 31, 2021 165,766,753 Convertible Stock As of December 31, 2020, REIT I had 49,935 of $ 0.01 par value convertible stock outstanding. RAI owned 30,273 shares, affiliated persons owned 18,790 shares and outside investors owned 872 shares at December 31, 2020. The convertible stock would have converted into shares of the Company’s common stock upon the occurrence of certain events. Upon the closing of the REIT I Merger, each share of REIT I Convertible Stock were cancelled and converted into the right to receive $ 0.02 in cash (without interest). As of December 31, 2021 , the Company had 50,000 shares of $ 0.01 par value convertible stock outstanding, of which 18,628 were owned by current and former affiliated persons and the remaining were owned by the Company. The convertible stock will convert into shares of the Company’s common stock upon the occurrence of (a) the Company having paid distributions to common stockholders that in the aggregate equal 100 % of the price at which the Company originally sold the shares plus an amount sufficient to produce a 7 % cumulative, non-compounded annual return on the shares at that price; or (b) if the Company lists its common stock on a national securities exchange and, on or after the 31st trading day following the listing, the Company’s value based on the average trading price of its common stock since the listing, plus prior distributions, combine to meet the same 7 % return threshold. Each of these two events is a “Triggering Event.” Upon a Triggering Event, the Company's convertible stock will, unless its advisory agreement has been terminated or not renewed on account of a material breach by Resource Real Estate Opportunity Advisor II, LLC, a wholly-owned subsidiary of the Company , generally be converted into a number of shares of common stock equal to 1 /50,000 of the quotient of: (A) the lesser of (i) 15 % of the amount, if any, by which (1) the value of the Company as of the date of the event triggering the conversion plus the total distributions paid to its stockholders through such date on the then-outstanding shares of its common stock exceeds (2) the sum of the aggregate issue price of those outstanding shares plus a 7 % cumulative, non-compounded, annual return on the issue price of those outstanding shares as of the date of the event triggering the conversion, or (B) the value of the Company divided by the number of outstanding shares of common stock, in each case, as of the date of the event triggering the conversion. As of December 31, 2021 , no Triggering Event had occurred. Redemption of Securities During the year ended December 31, 2021, the Company redeemed shares of its outstanding common stock as follows: Period Total Number of Shares Redeemed (1) Average Price Paid per Share January 2021 136,685 $ 9.08 February 2021 — — March 2021 169,112 $ 9.08 April 2021 — — May 2021 — — June 2021 148,989 $ 9.06 July 2021 — — August 2021 — — September 2021 240,767 $ 9.06 October 2021 — — November 2021 — — December 2021 184,236 $ 9.06 879,789 (1) The shares redeemed in January 2021 were repurchased from employees upon vesting of restricted stock awards in order to facilitate the payment of taxes by the employees. Amended Share Redemption Program On February 3, 2021, the Board of Directors of the Company ("the Board") adopted the Fifth Amended and Restated Share Redemption Program (the “Amended SRP”) pursuant to which, subject to significant conditions and limitations of the program, stockholders of the Company could have their shares repurchased by the Company. The Amended SRP provided that redemptions would continue to be made quarterly but in an amount not to exceed proceeds from the sale of shares in the distribution reinvestment plan in the immediately preceding calendar quarter; provided that, for any quarter in which no distribution reinvestment plan proceeds were available, the funding limitation for the quarter would have been set by the Board upon ten business days’ notice to stockholders. Additional changes to the share redemption program in the Amended SRP clarify the timing of redemption procedures. The effective date of any redemption (the “Redemption Date”) was the 15 th day (or the next business day thereafter) of the last month of the calendar quarter. Redemption requests had to be received by the Company no later than the last business day of the calendar month preceding the month in which the Redemption Date falls. Payment for shares redeemed could be made no later than five business days after the Redemption Date. In addition, the Amended SRP clarified that stockholders eligible to have their shares repurchased by the Company included those who purchased their shares from REIT I or REIT III in their respective initial public offering and distribution reinvestment plans and do not include those stockholders who acquired their shares for value from another stockholder. The Amended SRP also removed any reference to the Former Advisor and its affiliates as the Company is now self-managed. Until January 2022, the share redemption program remained partially suspended, the Company only approved requests for redemption in connection with a stockholder’s death, qualifying disability, or confinement to a long-term care facility (each as described in the Amended SRP and collectively, “Special Redemptions”). In conjunction with the Blackstone Merger Agreement, on January 23, 2022, the Board approved the suspension of the Amended SRP. Distributions Paid to Common Stockholders For the year ended December 31, 2021, the Company paid aggregate distributions of $ 45.2 million including $ 34.6 million of distributions paid in cash and $ 10.6 million of distributions reinvested in shares of c ommon stock through the Company's distribution reinvestment plan, as follows (in thousands): Record Date Per Common Share Distribution Date Net Cash Distributions Distributions reinvested in shares of Common Stock Total Aggregate Distributions March 30, 2021 $ 0.07 March 31, 2021 $ 8,539 $ 2,490 $ 11,029 June 29, 2021 0.07 June 30, 2021 8,365 2,674 11,039 September 29, 2021 0.07 September 30, 2021 8,868 2,704 11,572 December 28, 2021 0.07 December 29, 2021 8,875 2,707 11,582 $ 0.28 $ 34,647 $ 10,575 $ 45,222 Share-Based Compensation On September 8, 2020, the board of directors of REIT I adopted the Resource Real Estate Opportunity REIT, Inc. 2020 Long-Term Incentive Plan (the “2020 LTIP”). At the effective time of the REIT I Merger, the Company assumed the 2020 LTIP as amended to replace all references to REIT I with the Company. The purpose of the 2020 LTIP is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain, and reward certain eligible persons performing services for the Company and by motivating such persons to contribute to the growth and profitability of the Company. The 2020 LTIP allows for grants to the Company’s employees, consultants, and directors of stock options (non-statutory and incentive), restricted stock awards, stock appreciation rights, restricted stock units, performance shares, performance units, cash-based awards, and other stock-based awards. The maximum aggregate number of shares of common stock of the Company that may be issued pursuant to awards granted under the 2020 LTIP is 3.5 million shares. In conjunction with the Self-Management Transaction in September 2020, officers and certain employees of REIT I were granted awards of restricted stock of REIT I pursuant to the 2020 LTIP in the aggregate amount of 645,526 shares. Upon the REIT I Merger, these grants converted to 790,272 shares of the Company's common stock. The fair value of the shares granted as converted upon the REIT I Merger were estimated to be $ 9.08 per share. Of the awards granted, 779,102 shares of restricted stock are performance-based awards and vested 40 %, or 311,641 shares, upon the completion of the REIT I Merger; and the remaining 60 % will vest upon the completion of an initial public offering or a future liquidity event. The remaining 11,170 shares of restricted stock granted are time-based awards and will vest ratably over a three-year period. Dividends on the performance-based awards of restricted stock will not be paid but will be accrued over the vesting period. The accrual as of December 31, 2021 was approximately $ 169,000 and was included in Accounts payable and accrued expenses on the consolidated balance sheets. On February 17, 2021, the Compensation Committee (the “Committee”) of the Board of the Company approved performance-based long-term equity incentive awards pursuant to the 2020 LTIP. After the actual amount of the performance-based award is determined (or earned), the earned shares will be fully vested and generally transferable. Dividends will be deemed to have accrued on all of the earned shares during the measuring period until the determination date. Such accrued dividends on earned shares will be paid to the awardee on the determination date. Thereafter, the awardee is entitled to receive dividends as declared and paid on the earned shares. The awardee will be entitled to vote the shares from the grant date. The awards were designed to align the executive officers’ interests with those of the Company’s stockholders and are a significant component of overall executive officer compensation. The awards were granted effective February 17, 2021 (the grant date), and the number of shares of the Company’s common stock (the “Common Stock”) underlying the awards (that is, the number of shares corresponding to the dollar amounts described below) were determined based on the most recently approved estimated value per share of the Common Stock of $ 9.08 as approved by the Board on March 19, 2020. The Company recorded compensation expense in the years ended December 31, 2021 and 2020 related to these awards of approximately $ 4.6 million and $ 11,000 . Unrecognized compensation expense at December 31, 2021 was $ 7.9 million. Employees were awarded 404,306 shares of three-year vesting restricted stock and the Company’s non-employee directors were awarded 42,980 shares of on e-year vesting restricted stock during the year ended December 31, 2021. The following table presents the changes in unvested restricted stock for the year ended December 31, 2021: Performance Based Awards Weighted Average Grant Date Fair Value Time-Based Service Awards Weighted Average Grant Date Fair Value Total Awards Unvested restricted shares, beginning of period 779,102 $ 9.08 11,170 $ 9.08 790,272 Granted 135,045 $ 9.08 447,286 $ 9.08 582,331 Forfeited — ( 1,651 ) ( 1,651 ) Vested ( 311,641 ) ( 3,722 ) ( 315,363 ) Unvested restricted shares, end of period 602,506 453,083 1,055,589 Noncontrolling Interests Noncontrolling interests represented limited partnership interests in the Operating Partnership, or OP Units, in which the Company was the general partner. General partnership units and limited partnership units of the Operating Partnership were issued as part of the initial capitalization of the Operating Partnership. OP Units were issued as part of the Self-Management Transaction in September 2020. On September 13, 2021, the Company entered into a letter agreement with C-III and Legacy Co, pursuant to which the parties agreed to the following with respect to all outstanding operating partnership units of OP II, held by C-III and Legacy Co. C-III and Legacy Co provided their consent and waiver to the early redemption by OP II of the Series A Preferred Units at the Redemption Price (as defined in the limited partnership agreement for OP II (the “Partnership Agreement”)), plus all accrued distributions on September 14, 2021, prior to the second anniversary of the original issuance date as contemplated by the Partnership Agreement. In addition, the Company agreed to waive the two-year hold period for the exercise of the exchange right provided to C-III and Legacy Co in the Partnership Agreement with respect to their common units, and C-III and Legacy Co provided notice of exchange to OP II and the Company. In accordance with the letter agreement, on September 14, 2021, the Company redeemed all of the 319,965 outstanding Series A Preferred Units collectively held by C-III and Legacy Co for $ 67.5 million and exchanged all of the 7,539,737.53 common units collectively held by C-III and Legacy Co for an equivalent number of shares of common stock of the Company. Due to the redemption and conversion as described in Note 3, there are no noncontrolling interests as of December 31, 2021. Each OP Preferred Unit was entitled to a 7.00 % per annum preferred priority return on the stated value of each OP Preferred Unit commencing on the date of issuance and ending on the fifth anniversary of the date of issuance, as well as, with respect to such distribution period, the amount of distributions a holder of such OP Preferred Unit would be entitled to receive if such OP Preferred Units were treated as part of a single class of units with the Common Units with the right to participate in distributions pari passu with the Common Units (the “Preferred Return”). Investor Rights Agreement On September 8, 2020, the Company, the OP, C-III and RAI entered into an investor rights agreement (the “Investor Rights Agreement”). Pursuant to the Investor Rights Agreement, C-III and RAI (or any successor holder) has the right (i) with respect to Common Units of the OP, after September 8, 2022, and (ii) with respect to OP Preferred Units, after 180 days from the date the Company lists its common stock on a national securities exchange (the “Lock-Up Expiration”), to request the Company to register for resale under the Securities Act of 1933, as amended, all or part, but not less than 50%, of the shares of the Company’s common stock issued or issuable to such holder. The Company will use commercially reasonable efforts to file a registration statement on Form S-3 within 30 days of such request and within 60 days of such request in the case of a registration statement on Form S-11 or such other appropriate form. The Company will cause such registration statement to become effective as soon as reasonably practicable thereafter. The Investor Rights Agreement also grants C-III and RAI (or any successor holder) certain “piggyback” registration rights after the Lock-Up Expiration. For the year ended December 31, 2021, noncontrolling interests were approximately 3.5 % of weighted average shares outstanding prior to their conversion to common stock and/or redemption. The Company evaluates individual noncontrolling interests for the ability to recognize the noncontrolling interest as permanent equity on the consolidated balance sheets at the time such interests are issued and on a continual basis. Any noncontrolling interest that fails to qualify as permanent equity is reclassified as temporary equity and adjusted to the greater of (a) the carrying amount or (b) its redemption value as of the end of the period in which the determination is made. During the year ended December 31, 2021, the Company redeemed the OP Preferred Units and recognized a $ 342,000 expense in the Consolidated Statement of Operations to adjust the book value to redemption value. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures and Disclosures | NOTE 13 - FAIR VALUE MEASURES AND DISCLOSURES In analyzing the fair value of its investments accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The fair values of cash, tenant receivables and accounts payable, approximate their carrying values due to their short nature. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. Derivatives (interest rate caps), which are reported at fair value in the consolidated balance sheets, are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit and volatility factors. (Level 2) The following table presents information about the Company's assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2021 Assets: Interest rate caps $ — $ 1,282 $ — $ 1,282 $ — $ 1,282 $ — $ 1,282 December 31, 2020 Assets: Interest rate caps $ — $ 62 $ — $ 62 $ — $ 62 $ — $ 62 The following table presents the carrying amount and estimated fair value of the Company’s mortgage notes payable-outstanding borrowings (in thousands): December 31, 2021 December 31, 2020 Outstanding Estimated Outstanding Estimated Mortgage notes payable- outstanding borrowings $ 1,415,321 $ 1,358,503 $ 830,950 $ 822,859 The carrying amount of the mortgage notes payable presented is the outstanding borrowings excluding premium or discount and deferred finance costs, net. The fair value of the mortgage notes payable was estimated using rates available to the Company for debt with similar terms and remaining maturities (Level 3). |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | NOTE 14 - DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. As a condition of the Company’s financing facilities, from time to time the Company may be required to enter into certain derivative transactions as may be required by the lender. These transactions would generally be in line with the Company’s own risk management objectives and also serve to protect the lender. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company entered into a total of 18 interest rate caps that were designated as cash flow hedges. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the year ended December 31, 2021, such derivatives were used to hedge the variable cash flows, indexed to USD-LIBOR and one loan indexed to SOFR, associated with an existing variable-rate loan agreement. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next 12 months, the Company estimates that an additional approximately $ 144,000 will be reclassified as an increase to interest expense. During the year ended December 31, 2021, the Company repaid or refinanced 16 lo ans for which the associated interest rate caps remain as assets but no longer qualify as effective cash flow hedges with a fair value as of December 31, 2021 of approximately $ 280,000 . During the years ended December 31, 2021, 2020 and 2019, the Company recorded expenses of approximatel y $ 42,000 , $ 124,000 and $ 344,000 , respectively, due to amortization of premiums paid for interest rate caps. The following table presents the Company's outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2021 and 2020 (dollars in thousands): Interest Rate Derivative Number of Instruments Notional Amount Maturity Dates December 31, 2021 Interest rate caps 18 $ 626,623 January 1, 2022 through February 1, 2026 December 31, 2020 Interest rate caps 22 $ 677,238 May 1, 2021 through January 1, 2025 Tabular Disclosure of Fair Value of Derivative Instrument on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments on the consolidated balance sheets as of December 31, 2021 and 2020 (in thousands): Asset Derivatives Liabilities Derivatives December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Prepaid expenses and other assets $ 1,282 Prepaid expenses and other assets $ 62 — $ — — $ — |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Legal Matters On June 17, 2021, stockholders Karl R. Wilber and Julia M. Wilber, as co-trustees of the Karl R. and Julia M. Wilber Revocable Trust dtd 2/18/2002 (“Wilber Trust”), sent a letter to Alan F. Feldman alleging breaches of fiduciary duty by the directors of the Company’s predecessor entities arising from the Self-Management Transaction and Resource REIT Mergers and demanding that the board of directors of the Company (the “Board”) take action to remedy such breaches (the “Demand Letter”). On August 3 , 2021, the Board formed a special committee to investigate the allegations in the Demand Letter. The special committee engaged independent counsel and conducted a full investigation and, on January 25, 2022, communicated to Wilber Trust its conclusion that the claims in the Demand Letter had no merit and would not be pursued by the Company. On February 7, 2022, the Wilber Trust filed a class action complaint in the Circuit Court for Baltimore City, Maryland ( Karl R. Wilber et al. v. Alan F. Feldman et al. , Case No. 24-C-22-000531) against the Board, the Company, C-III, and RRE Legacy. The complaint alleges, among other things, that (a) the former REIT II directors breached their fiduciary duties by approving the REIT I Merger given that the Self-Management Transaction provided inadequate value to both REIT I and REIT II, thus diluting the stock value of the purported class; (b) the current Board failed to consider the value of the claims in the Demand Letter when negotiating the proposed transaction with BREIT; and (c) C-III and the sponsor were unjustly enriched by the Self-Management Transaction. Wilber Trust seeks an unspecified award of compensatory damages and invalidation of the stock consideration paid to C-III and the sponsor in the Self-Management Transaction. Defendants’ response is due on April 15, 2022. The Company intends to vigorously defend against the complaint. Based on the early stage of the litigation, it is not possible to estimate the amount or range of possible loss that might result from an adverse judgment or a settlement of this matter. |
Benefit Plan
Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Benefit Plan | NOTE 16 – BENEFIT PLAN Following the Self-Management Transaction in September 2020, the Company sponsors a defined contribution 401(k) plan to provide retirement benefits for employees that meet minimum employment criteria. The Company currently matches 100 % of the first 3 % of employee contributions and 50 % of the next 2 % of employee contributions. Employer matching contributions vest immediately upon contribution to the plan. The Company recognize d approximately $ 272,000 and $ 36,000 , respectively, of expense for the year ended December 31, 2021 and 2020 for employer matching contributions. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except for the following: On January 20, 2022, the Company sold The Bryant at Yorba Linda in Yorba Linda, California fo r $ 205.5 million. The Company expects to recognize a gain on the sale during the quarter ending March 31, 2022. On January 20, 2022, the Company sold Maxwell Townhomes in San Antonio, Texas for $ 48.0 million. The Company expects to recognize a gain on the sale during the quarter ending March 31, 2022. On January 23, 2022, the Company entered into the Blackstone Merger Agreement. In addition, the Company's board of directors suspended the share redemption program and the distribution reinvestment plan offering. On January 28, 2022, the Company repaid in the full the loans secured by Skyview, Courtney Meadows, Indigo Creek, and Meridian Pointe. On March 22, 2022, the Company sold Sunset Ridge in San Antonio, Texas for $ 60.8 million. The Company expects to recognize a gain on the sale during the quarter ending March 31, 2022. |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Years Ended 2021 2020 2019 Investments in real estate: Balance at beginning of the year $ 1,173,930 $ 1,163,727 $ 1,212,720 Resource REIT Mergers 1,296,686 — — Improvements, etc. 28,424 11,297 14,423 Dispositions during the year ( 143,422 ) ( 1,094 ) ( 63,416 ) Balance at end of year $ 2,355,618 $ 1,173,930 $ 1,163,727 Accumulated Depreciation: Balance at beginning of year $ ( 275,955 ) $ ( 225,583 ) $ ( 194,777 ) Sales 32,221 — 22,075 Depreciation ( 88,394 ) ( 51,411 ) ( 53,802 ) Disposals 2,733 1,039 921 Balance at end of year $ ( 329,395 ) $ ( 275,955 ) $ ( 225,583 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States of America ("GAAP"). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Segment Reporting | Segment Reporting The Company does not evaluate performance on a relationship specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist of periodic temporary deposits of cash. At December 31, 2021, the Company had $ 125.3 million of deposits at various banks, $ 108.1 million of which were over the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such deposits. |
Rental Properties | Rental Properties The Company records acquired real estate at fair value on their acquisition date. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates the asset using the straight line method. The Company's estimated useful lives of its assets by class are as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture and fixtures 2.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related lease Improvements and replacements are capitalized when they have a useful life greater than or equal to one year . The Company pays a construction management fee of 5.0 % of actual aggregate costs to Greystar to construct improvements, or to repair, rehab or reconstruct a property. These costs are capitalized along with the related asset. Costs of repairs and maintenance are expensed as incurred. As of December 31, 2021 , the Company's real estate investments located in Texas, Georgia, Illinois, Colorado, and California represent approximately 26 %, 13 %, 12 %, 10 %, and 7 % of the portfolio. This makes it particularly susceptible to adverse economic developments in these real estate markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, industry slowdowns, relocations of businesses, changing demographics and other factors, or any decrease in demand for multifamily rentals resulting from the local business climate, could negatively affect the Company's liquidity and adversely affect its ability to fund its ongoing operations. |
Impairment of Long Lived Assets | Impairment of Long Lived Assets The Company periodically evaluates its long-lived assets, primarily investments in rental properties, for impairment indicators. The review considers factors such as past and expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for permanent impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. An impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss would be the adjustment to fair value less the estimated cost to dispose of the asset. In conjunction with the Resource REIT Merger and for the Company’s annual estimated value per share calculation in 2020 and 2019, the Company engaged with a third-party to provide the estimated fair value of its rental properties as of January 28, 2021, December 31, 2020 and 2019, respectively. The Company compared these values to its carrying values and concluded that there was no indication that the carrying value of the Company’s investments in real estate were not recoverable as of December 31, 2021, 2020 and 2019. There were no impairment losses recorded on long lived assets during the years ended December 31, 2021, 2020 and 2019 . |
Casualty Loss | Casualty Loss The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage and business interruption. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in other income when the proceeds are received. |
Allocation of Purchase Price of Acquired Assets | Allocation of Purchase Price of Acquired Assets On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business ("ASU No. 2017-01"). Acquisitions that do not meet the definition of a business under this guidance are accounted for as asset acquisitions. In most cases, the Company believes that acquisitions of real estate will no longer be considered a business combination as in most cases substantially all of the fair value is concentrated in a single identifiable asset or group of tangible assets that are physically attached to each other (land and building). However, if the Company determines that substantially all of the fair value of the gross assets acquired is not concentrated in either a single identifiable asset or in a group of similar identifiable assets, the screen is not met, and the Company will then perform an assessment to determine whether the set is a business by using the framework outlined in the ASU. If the Company determines that the acquired asset is not a business, the Company will allocate the cost of the acquisition including transaction costs to the assets acquired or liabilities assumed based on their related fair value. Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings, fixtures and improvements, identified intangible lease assets, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases, the value of tenant relationships, and liabilities, based in each case on their fair values. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases. The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if vacant. Management’s estimates of value are determined by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered in the analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. Management also estimates costs to execute similar leases including leasing commissions and legal and other related expenses to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. The total amount of other intangible assets acquired is further allocated to customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics considered by management in allocating these values include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. The Company amortizes the value of in-place leases to expense over the remaining term of the underlying leases. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event does amortization periods for the intangible assets exceed the remaining depreciable life of the building. The determination of the fair value of the assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the fair value of these assets and liabilities, which could impact the Company's reported net income (loss). |
Goodwill | Goodwill The Company records the excess of the cost of an acquired entity over the difference between the amounts assigned to assets acquired (including identified intangible assets) and liabilities assumed as goodwill. Goodwill is not amortized but is tested for impairment at a level of reporting referred to as a reporting unit during the fourth quarter of each calendar year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. There have been no such events or changes in circumstances during the years ended December 31, 2021 and 2020. |
Revenue Recognition and Receivables | Revenue Recognition and Receivables The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease, which is accounted for in accordance with Accounting Standards Codification ("ASC") 842, Leases (“ASC 842”). The future minimum rental payments to be received from noncancelable operating leases are approximate ly $ 124.2 million and $ 1.7 million for the years ending December 31, 2022 and 2023, and no ne thereafter. These figures include future minimum rentals from noncancelable operating leases for residential real estate properties held for sale of approximate ly $ 9.8 million and $ 130,000 for the years ending December 31, 2022 and 2023, and no ne thereafter. The future minimum rental payments to be received from noncancelable operating leases for both commercial rental properties and antenna rentals are $ 423,000 , $ 389,000 , $ 336,000 , $ 253,000 , and $ 184,000 for the years ending December 31, 2022 through December 31, 2026, respectively, and $ 1.1 million thereafter. Revenue is primarily derived from the rental of residential housing units for which the Company receives minimum rents and utility reimbursements pursuant to underlying tenant lease agreements. The Company also receives other ancillary fees for administration of leases, late payments, amenities, and revenue sharing arrangements for cable income from contracts with cable providers at the Company's properties (discussed below). A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The Company records the utility reimbursement income and ancillary charges in the period when the performance obligation is completed, either at a point in time or on a monthly basis as the service is utilized. The Company has cable income revenue sharing arrangements from contracts with cable providers at the Company's properties. Included in accrued expenses and other liabilities on the consolidated balance sheets at December 31, 2021 and 2020 is a contract liability related to deferred revenue from contracts with cable providers of approximately $ 1.7 million and $ 760,000 , respectively. The Company recognizes income from these contracts on a straight line basis over the contract period of 10 years to 12 years . During the years ended December 31, 2021, 2020 and 2019, approximate ly $ 275,000 , $ 118,000 and $ 77,000 , respectively of revenue from the contract liability was recognized as income. The Company evaluates its portfolio of operating leases for collectability at both the onset of the underlying leases and on an ongoing basis. Tenant receivables include amounts for which collectability was assessed as probable in accordance with the guidance in ASC 842-30. For tenant receivables, which include base rents, straight-line rentals, expense reimbursements and other revenue or income, the Company also estimates a general allowance for uncollectible accounts under ASC 450-20. The Company determines the collectability of its receivables related to rental revenue by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, and the condition of the general economy and the industry as a whole. If collectability is not probable, the Company adjusts rental income for the amount of the uncollectible revenue. Due to the COVID-19 pandemic, some residents have experienced difficulty making rent payments and the Company’s receivables have increased compared to historical levels. As of December 31, 2021 and 2020, the Company recorded a $ 1.6 million an d $ 774,000 , respectively, allowance for bad debts to appropriately reflect management’s estimate for uncollectible accounts. The total adjustment to rental and other property income for the years ended December 31, 2021, 2020 and 2019 were $ 2.0 million, $ 1.2 million and $ 299,000 respectively, for provision for bad debt, net of recoveries . The provision for bad debts was recorded as a reduction to rental income in the Company’s consolidated statements of operations and comprehensive loss. The age of the receivables included in the allowance balance at December 31, 2021 was: 13.1 % less than 30 days past due, 11.9 % 31-60 days past due, 1.2 % 61-90 days past due and 73.8 % over 90 days past due. Following the Self- Management Transaction (described in Note 3 below) through the effective date of the Resource REIT Mergers on January 28, 2021, the Company received asset management and property management fees from REIT II and REIT III. The monthly asset management fee was equal to one-twelfth of 1.0% of the cost of each asset held by REIT II and one-twelfth of 1.0% of the appraised value of each asset held by REIT III, without deduction for depreciation, bad debts or other non-cash reserves. The monthly property management fee was calculated based on 4.5 % of the gross monthly receipts from REIT II's and REIT III’s properties. The Company recognized revenue for both asset and property management fees as earned on a monthly basis. The Company had determined under ASC 606 – Revenue from Contracts with Customers (“ASC 606”), that the performance obligation for asset and property management services are satisfied as the services are rendered. The Company was compensated for its services on a monthly basis and these services represent a series of distinct daily services in accordance with ASC 606. As a result of the Resource REIT Mergers, these fees are no longer being paid. |
Leases | Leases For operating leases where the Company is the lessor, the underlying leased asset is recognized as real estate on the balance sheet. The Company, as a lessor of multifamily apartment units, has nonlease components associated with these leases (i.e. common area maintenance, utilities, etc.). The Company combines nonlease component revenue streams and accounts for them as a combined component with leasing revenue. For leases in which the Company is the lessee, primarily consisting of office leases, a parking lot lease, and office equipment leases, the Company recognizes a right-of-use (“ROU”) asset and a lease liability equal to the present value of the minimum lease payments. Operating leases are included in operating lease ROU assets and operating lease liabilities in the Company’s consolidated balance sheets. The Company uses a market rate for equipment leases, when readily determinable, in calculating the present value of lease payments. Otherwise, the incremental borrowing rate is used. The operating lease ROU asset includes any lease payments and excludes lease incentives. Operating lease terms may include options to extend the lease when it is reasonably certain the lease will be extended. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ended December 31, 2014. To maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90 % of its taxable net income (excluding net capital gains) to its stockholders as well as comply with other requirements, including certain asset, income and stock ownership tests. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100 % of its REIT taxable income each year. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it is subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it fails its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. The dividends paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Taxable income, generally, will differ from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company may elect to treat certain of its subsidiaries as taxable REIT subsidiaries (“TRS”). In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. While a TRS may generate net income, a TRS can declare dividends to the Company which will be included in the Company’s taxable income and necessitate a distribution to its stockholders. Conversely, if the Company retains earnings at a TRS level, no distribution is required and the Company can increase book equity of the consolidated entity. As of December 31, 2021 and 2020, the Company treated one of its subsidiaries as a TRS. The Company evaluates the benefits from tax positions taken or expected to be taken in its tax return. Only the largest amount of benefits from tax positions that will more likely than not be sustainable upon examination are recognized by the Company. The Company does not have any unrecognized tax benefits, nor interest and penalties, recorded in its consolidated financial statements and does not anticipate significant adjustments to the total amount of unrecognized tax benefits within the next 12 months. The Company is subject to examination by the U.S. Internal Revenue Service and by the taxing authorities in other states in which the Company has significant business operations. The Company is not currently undergoing any examinations by taxing authorities. The Company is not subject to IRS examination for the tax return years 2017 and prior. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated on the basis of the weighted-average number of common shares outstanding during the year. Basic earnings per share is computed by dividing income available to common stockholders by the weighted-average common shares outstanding during the period. Diluted earnings per share take into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. Distributions declared per common share assume each share was issued and outstanding each day during the period or based upon the two-class method, whichever is more dilutive. The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts): Years Ended December 31, 2021 2020 2019 Numerator for earnings per share: Net income (loss) $ 54,903 $ ( 24,133 ) $ ( 1,747 ) Redemption of preferred OP units ( 342 ) — — Preferred return to preferred OP unit holders ( 3,161 ) ( 1,406 ) — Net income (loss) after preferred return 51,400 ( 25,539 ) ( 1,747 ) Less: Allocation of income to preferred unit holders attributable to noncontrolling interest 158 101 — Less: Net loss attributable to noncontrolling interest 696 279 — Net income (loss) attributable to common stockholders $ 52,254 $ ( 25,159 ) $ ( 1,747 ) Denominator for earnings per share: Weighted average common shares outstanding 153,820 85,531 85,861 Denominator for basic earnings per share 153,820 85,531 85,861 Weighted average unvested restricted stock 69 — — Denominator for diluted earnings per share 153,889 85,531 85,861 Earnings per weighted average common share: Basic $ 0.34 $ ( 0.29 ) $ ( 0.02 ) Diluted $ 0.34 $ ( 0.29 ) $ ( 0.02 ) No ne of the shares of convertible stock (see Note 12) or 467,461 unvested performance awards that vest only upon a liquidation event are included in the diluted earnings per share calculations, because the necessary conditions for conversion have not been satisfied as of December 31, 2021 (were such date to represent the end of the contingency period). Prior to their redemption and/or conversion, net losses attributable to outstanding OP Common Units and OP Preferred Units were included in net (income) loss attributable to noncontrolling interest, and therefore, were excluded from the calculation of income (loss) per common share, basic and diluted, for all periods presented. |
Reclassifications | Reclassifications Certain amounts in the prior years’ financial statements have been reclassified to conform to the current-year presentation. On the consolidated statements of operations, Management fees- related party were split into two line items, Property management fees – related party and Asset management fees- related party; certain administrative expenses previously reflected in rental operating expenses are now included in general and administrative expenses; general and administrative is now presented in two line items for corporate and property related; and casualty losses have been broken out from rental operating expenses and presented on a separate line. On the consolidated balance sheet, Operating lease right-of-use assets is included in Prepaid expenses and other assets, and Operating lease liabilities are now included in Accounts payable and accrued expenses. All shares presented for prior periods have been converted based on the exchange ratio of 1.22423 (See REIT I Merger in Note 1). The impact of the reclassifications made to prior year amounts are not material and did not affect net loss. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848).” ASU 2020-04 provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in ASU 2020-04 are effective for all entities as of March 12, 2020 through December 31, 2022. During the year ended December 31, 2021 , the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The Company's estimated useful lives of its assets by class are as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture and fixtures 2.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related lease |
Schedule of Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the periods presented (in thousands, except per share amounts): Years Ended December 31, 2021 2020 2019 Numerator for earnings per share: Net income (loss) $ 54,903 $ ( 24,133 ) $ ( 1,747 ) Redemption of preferred OP units ( 342 ) — — Preferred return to preferred OP unit holders ( 3,161 ) ( 1,406 ) — Net income (loss) after preferred return 51,400 ( 25,539 ) ( 1,747 ) Less: Allocation of income to preferred unit holders attributable to noncontrolling interest 158 101 — Less: Net loss attributable to noncontrolling interest 696 279 — Net income (loss) attributable to common stockholders $ 52,254 $ ( 25,159 ) $ ( 1,747 ) Denominator for earnings per share: Weighted average common shares outstanding 153,820 85,531 85,861 Denominator for basic earnings per share 153,820 85,531 85,861 Weighted average unvested restricted stock 69 — — Denominator for diluted earnings per share 153,889 85,531 85,861 Earnings per weighted average common share: Basic $ 0.34 $ ( 0.29 ) $ ( 0.02 ) Diluted $ 0.34 $ ( 0.29 ) $ ( 0.02 ) |
Self-Management Transaction (Ta
Self-Management Transaction (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Consideration Given under Self-Management Transaction | Under the terms of the Self-Management Transaction, the following consideration was given in exchange (in thousands): Fair value of OP I Units issued $ 128,200 Net working capital 811 Subsequent consideration 27,000 Net consideration $ 156,011 |
PM Holdings and Advisor Holdings | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation | The following table summarizes the purchase price allocation (dollars in thousands): Assets: Due from related parties $ 4,299 Prepaid expenses and other assets 150 Goodwill 154,531 Property and equipment 659 Operating lease right-of-use assets 3,244 Total assets acquired $ 162,883 Liabilities: Other liabilities $ 3,628 Operating lease liabilities 3,244 Total liabilities assumed 6,872 Net assets acquired $ 156,011 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table presents supplemental cash flow information (in thousands): Years Ended December 31, 2021 2020 2019 Non-cash financing and investing activities: Stock issued pursuant to distribution reinvestment plan $ 10,575 $ 6,085 $ 24,499 Accrual for construction in process 2,237 848 2,470 Repayments on borrowings through refinancing 461,968 130,539 58,350 Lease liabilities arising from obtaining right-of-use assets — — 526 Accrued allocation of income to preferred unit holders — 1,120 — Deferred financing costs, interest, and fees funded through refinancing — 3,245 973 Non-cash activity related to sales: Mortgage notes payable settled directly with proceeds from sale of rental property 65,900 — 61,041 Non-cash activity related to Self-Management Transaction: Due to related parties for acquisition of net assets acquired in Self-Management Transaction — 19,125 — Operating Partnership units issued in exchange for net assets acquired in Self-Management Transaction — 128,200 — Non-cash activity related to Resource REIT Merger: Net assets acquired in REIT II Merger in exchange for common shares 543,840 — — Net assets acquired in REIT III Merger in exchange for common shares 101,435 — — Implied REIT I common stock issued in exchange for net assets acquired in Resource REIT Merger 645,275 — — Cash paid during the period for: Interest $ 41,865 $ 25,106 $ 35,936 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Components of Restricted Cash | The following table presents a summary of the components of the Company's restricted cash (in thousands): December 31, 2021 December 31, 2020 Real estate taxes $ 6,879 $ 7,910 Insurance 1,486 1,350 Debt service reserve 157 2,045 Capital improvements 1,898 3,464 Total $ 10,420 $ 14,769 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate [Line Items] | |
Schedule of Investments in Rental Properties | As of December 31, 2021, the Company's investments in rental properties consisted o f 45 a partment properties that contain 13,707 un its. The following table summarizes the Company’s investments in rental properties (in thousands): December 31, December 31, Land $ 293,492 $ 196,355 Building and improvements 1,799,028 929,323 Furniture, fixtures and equipment 53,438 46,879 Construction in progress 8,318 1,374 2,154,276 1,173,931 Less: accumulated depreciation ( 278,229 ) ( 275,956 ) $ 1,876,047 $ 897,975 The following table summarizes the Company's investments in rental properties held for sale (in thousands): December 31, 2021 Land $ 58,577 Building and improvements 134,489 Furniture, fixtures and equipment 8,179 Construction in progress 97 201,342 Less: accumulated depreciation ( 51,166 ) Assets held for sale - rental properties $ 150,176 |
Summary of Consideration Transferred | Consideration transferred is calculated as such (in thousands except share and per share data): Merged entity estimated net asset value as of Resource REIT Merger date $ 9.06 REIT I exchange ratio 1.22423 REIT I estimated value per share as of January 28, 2021 $ 11.09 REIT II common stock outstanding as of January 28, 2021 60,026,513 REIT I exchange ratio 1.22423 Implied REIT I common stock issued as consideration 49,032,055 REIT I estimated value per share as of January 28, 2021 $ 11.09 Value of implied REIT I common stock issued as consideration $ 543,840 Consideration transferred is calculated as such (in thousands except share and per share data): REIT III common stock outstanding as of January 28, 2021 12,092,466 REIT III exchange ratio 0.925862 REIT II shares issued as consideration 11,195,955 REIT I exchange ratio 1.22423 Implied REIT I common stock issued as consideration 9,145,303 REIT I estimated value per share as of January 28, 2021 $ 11.09 Value of implied REIT I common stock issued as consideration $ 101,435 |
Summary of Revenue and Net Loss of Properties Acquired in Mergers | The revenue and net loss of the 23 properties ( 6,508 units) acquired in the Resource REIT Mergers is as follows for the year ended December 31, 2021 (in thousands): REIT II REIT III Total Revenue $ 84,212 $ 20,778 $ 104,990 Net loss $ ( 5,696 ) $ ( 2,322 ) $ ( 8,018 ) |
Summary of Condensed Pro forma Operating Information | The following condensed pro forma operating information is presented as if the Resource REIT Mergers and the Self–Management Transaction had been included in operations as of January 1, 2020 (in thousands, except per share data):  Year Ended Year Ended  December 31, 2021 December 31, 2020 Revenue $ 248,584 $ 239,902 Net income (loss) $ 63,457 $ ( 63,985 ) Net loss attributable to noncontrolling interests $ 373 $ 3,287 Net income (loss) attributable to common stockholders $ 60,327 $ ( 65,178 ) Net income (loss) to common stockholders per share, basic and diluted $ 0.38 $ ( 0.41 ) |
Summary of Details of Disposition Activity | The following table presents details of the Company’s disposition activity during the years ended December 31, 2021 and December 31, 2019 (in thousands): Multifamily Community Location Sale Date Contract Sales Price Net Gain on Disposition Revenue Attributable to Property Sold Net (Loss) Income Attributable to Properties Sold 2021 Dispositions: Evergreen at Coursey Baton Rouge, LA June 29, 2021 $ 49,751 $ 18,734 $ 2,272 $ ( 107 ) The Retreat at Rocky Ridge Hoover, AL October 12, 2021 25,400 17,665 1,962 384 Tech Center Square Newport News, VA October 21, 2021 36,700 22,949 2,407 463 The Brookwood Homewood, AL October 26, 2021 45,300 6,385 3,134 ( 210 ) Pines of York Yorktown, VA November 2, 2021 45,000 27,932 2,926 254 $ 202,151 $ 93,665 $ 12,701 $ 784 2019 Dispositions: Williamsburg Cincinnati, OH March 8, 2019 $ 70,000 $ 34,575 $ 2,151 $ ( 1,431 ) Pinehurst Kansas City, MO December 20, 2019 12,310 4,235 1,427 ( 460 ) $ 82,310 $ 38,810 $ 3,578 $ ( 1,891 ) |
REIT I and REIT II Merger Agreement | |
Real Estate [Line Items] | |
Summary of Purchase Price Allocation | The allocation of the values of the real estate and other assets and liabilities as of January 28, 2021, inclusive of $ 5.0 million in estimated capitalized transaction costs and elimination of intercompany balances between REIT I and REIT II, is as follows (in thousands): Assets: Land $ 127,920 Building and improvements 940,630 Intangibles 6,765 Cash and restricted cash 67,563 Other assets 6,062 Total assets $ 1,148,940 Liabilities: Mortgage notes payable, net of $ 3.0 million discount $ 580,676 Due to related parties 988 Accounts payable and other liabilities 18,456 Total liabilities 600,120 Fair value of net assets acquired $ 548,820 Less: REIT I's Merger expenses 4,980 Fair value of net assets acquired, less REIT I's Merger expenses $ 543,840 |
REIT I and REIT III Merger Agreement | |
Real Estate [Line Items] | |
Summary of Purchase Price Allocation | The allocation of the values of the real estate and other assets and liabilities as of January 28, 2021, inclusive of approximately $ 929,000 in estimated capitalized transaction costs and elimination of intercompany balances between REIT I and REIT III, is as follows (in thousands): Assets: Land $ 43,733 Building and improvements 184,400 Intangibles 1,609 Cash and restricted cash 22,969 Other assets 626 Total assets $ 253,337 Liabilities: Mortgage notes payable, net of $ 2.1 million premium $ 147,191 Due to related parties 836 Accounts payable and other liabilities 2,946 Total liabilities 150,973 Fair value of net assets acquired $ 102,364 Less: REIT I's Merger expenses 929 Fair value of net assets acquired, less REIT I's Merger expenses $ 101,435 |
Identified Intangible Assets,_2
Identified Intangible Assets, Net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | As of December 31, 2021 and 2020, the Company had approximately $ 154.5 million and $ 154.9 million, respectively, of goodwill included on the consolidated balance sheets. The table below presents the rollforward of activity in goodwill for the year ended December 31, 2021: Balance, January 1, 2021 $ 154,935 Sale of Evergreen at Coursey Place ( 268 ) Sale of Pines of York ( 136 ) Balance, December 31, 2021 $ 154,531 |
Disposition of Property (Tables
Disposition of Property (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Details of Disposition Activity | The following table presents details of the Company’s disposition activity during the years ended December 31, 2021 and December 31, 2019 (in thousands): Multifamily Community Location Sale Date Contract Sales Price Net Gain on Disposition Revenue Attributable to Property Sold Net (Loss) Income Attributable to Properties Sold 2021 Dispositions: Evergreen at Coursey Baton Rouge, LA June 29, 2021 $ 49,751 $ 18,734 $ 2,272 $ ( 107 ) The Retreat at Rocky Ridge Hoover, AL October 12, 2021 25,400 17,665 1,962 384 Tech Center Square Newport News, VA October 21, 2021 36,700 22,949 2,407 463 The Brookwood Homewood, AL October 26, 2021 45,300 6,385 3,134 ( 210 ) Pines of York Yorktown, VA November 2, 2021 45,000 27,932 2,926 254 $ 202,151 $ 93,665 $ 12,701 $ 784 2019 Dispositions: Williamsburg Cincinnati, OH March 8, 2019 $ 70,000 $ 34,575 $ 2,151 $ ( 1,431 ) Pinehurst Kansas City, MO December 20, 2019 12,310 4,235 1,427 ( 460 ) $ 82,310 $ 38,810 $ 3,578 $ ( 1,891 ) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt, Net | The following table presents a summary of the Company's debt, net (in thousands): Weighted Average Maturity in Years at December 31, 2021 December 31, 2020 December 31, 2021 Mortgage notes payable, net - variable rate $ 607,711 $ 675,791 3.86 Mortgage notes payable, net - fixed rate 801,140 150,195 6.29 Total mortgage notes payable, net $ 1,408,851 $ 825,986 5.24 Revolving credit facility $ — $ — — Weighted average interest rate on mortgages - variable 2.05 % 2.12 % Weighted average interest rate on mortgages - fixed 2.96 % 4.03 % Weighted average interest rate on revolving credit facility — — Weighted average interest rate on total debt 2.56 % 2.46 % |
Annual Future Principal Payments on Outstanding Borrowings | The following table presents the Company's annual future principal payments on outstanding borrowings as of December 31, 2021 (in thousands): 2022 $ 38,899 2023 39,943 2024 226,578 2025 191,219 2026 95,567 Thereafter 823,115 $ 1,415,321 |
Summary of Additional Information about Initial Advance on Facility | Additional information about the initial advance on the Facility, which is included in Mortgage notes payable, net on the Consolidated Balance Sheet as of December 31, 2021, is as follows (in thousands): Collateral Original Loan Amount Maturity Date Type Annual Interest Rate Fixed Advance 1 $ 235,205 2/1/2031 Fixed 2.79 % Fixed Advance 2 $ 235,205 2/1/2028 Fixed 2.62 % Floating Advance $ 24,760 2/1/2031 Floating (1) 2.11 % (1) Floating rate based on 30-day average SOFR plus a fixed margin of 2.06 %. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Annual Payments for Operating Lease Liabilities | The following table presents the Company’s annual payments for the operating lease liabilities (including reasonably assured extension periods) for each of the next five 12–month periods ending December 31, and thereafter (in thousands): Future minimum operating lease payments: 2022 $ 583 2023 572 2024 573 2025 586 2026 448 Thereafter — Total future minimum operating lease payments 2,762 Less: imputed interest ( 138 ) Operating lease liabilities $ 2,624 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The following table presents the changes in each component of the Company's accumulated other comprehensive loss for the years ended December 31, 2021, 2020 and 2019 (in thousands): Balance, January 1, 2019 $ ( 474 ) Reclassification adjustment for realized loss on designated derivatives 344 Designated derivatives, fair value adjustments ( 88 ) Balance, December 31, 2019 ( 218 ) Reclassification adjustment for realized loss on designated derivatives 124 Designated derivatives, fair value adjustments ( 306 ) Noncontrolling interest 9 Balance, December 31, 2020 ( 391 ) Reclassification adjustment for realized loss on designated derivatives 42 Designated derivatives, fair value adjustments 620 Noncontrolling interest ( 9 ) Balance, December 31, 2021 $ 262 |
Certain Relationships and Rel_2
Certain Relationships and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Fees Earned/Expenses Paid and Amounts Payable and Amounts Receivable to Related Parties | The following table presents the Company's amounts payable to, and amounts receivable from, such related parties (in thousands): December 31, December 31, Due from related parties: REIT II Management fees $ — $ 327 Operating expense reimbursements — 1,588 — 1,915 REIT III Management fees — 79 Deferred organization and offering costs reimbursements — 769 — 848 $ — $ 2,763 Due to related parties: C-III/RAI Self-Management Transaction consideration $ — $ 19,125 Allocation of income to preferred unit holders — 1,120 $ — $ 20,245 The following table presents the Company's fees earned by, and expenses paid to, such related parties (in thousands): Years Ended December 31, 2021 2020 2019 Fees earned / expenses paid to related parties: Former Advisor (prior to 9/8/2020): Acquisition costs (1) $ — $ 113 $ — Asset management fees (2) — 8,517 12,498 Disposition fees (3) — — 453 Debt financing fees (4) — 43 116 Overhead allocation (5) — 2,955 3,663 Internal audit (5) — 75 108 Manager (prior to 9/8/2020): Property management fees (2) $ — $ 4,071 $ 6,034 Construction management fees (1) — 298 500 Construction payroll reimbursements (1) — — 97 Operating expense reimbursements (6) — — 184 Debt servicing fees (2) — 1 2 REIT II (prior to 1/28/2021): Asset management fee income $ 669 $ 2,866 $ — Property management fee income 275 1,198 — Debt financing fees — 184 — Operating expense reimbursements (5) 371 1,529 — Internal audit (5) 8 33 — REIT III (prior to 1/28/2021): Asset management fee income $ 164 $ 705 $ — Property management fee income 67 295 — C-III/RAI: Transition services paid to C-III (5) $ 2 $ 182 $ — Transition services paid to the Company (5) — 17 — Sublease rent reimbursement (5) — 15 — Preferred unit distributions 3,161 1,406 — Common OP unit distributions 1,110 — — ACR: Internal audit (7) $ 37 $ 47 $ — Sublease rent reimbursement (5) 30 44 — Other: The Planning & Zoning Resource Company (4) $ — $ — $ 2 (1) Included in Acquisition costs on the consolidated statements of operations and comprehensive loss. (2) Included in Management fees on the consolidated statements of operations and comprehensive loss. (3) Included in Net gain on disposition of property on the consolidated statements of operations and comprehensive loss. (4) Included in Mortgage notes payable, net on the consolidated balance sheets. (5) Included in General and administrative costs on the consolidated statements of operations and comprehensive loss. (6) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. (7) Included in Other revenue on the consolidated statements of operations and comprehensive loss. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Common Stock | The following table summarizes the activity (dollars in thousands): Shares Gross Shares issued through private offering 1,279,227 $ 12,737 Shares issued through primary public offering 129,923,354 1,289,845 Shares issued through stock distributions 2,406,986 — Shares issued through distribution reinvestment plan 29,042,460 279,519 Restricted shares issued to employees 1,370,952 — Shares issued through conversion of common OP units 7,539,738 — Shares issued in conjunction with the Resource REIT Mergers 14,724,323 — Total 186,287,040 $ 1,582,101 Shares redeemed and retired ( 20,520,287 ) Total shares issued and outstanding as of December 31, 2021 165,766,753 During the year ended December 31, 2021, the Company redeemed shares of its outstanding common stock as follows: Period Total Number of Shares Redeemed (1) Average Price Paid per Share January 2021 136,685 $ 9.08 February 2021 — — March 2021 169,112 $ 9.08 April 2021 — — May 2021 — — June 2021 148,989 $ 9.06 July 2021 — — August 2021 — — September 2021 240,767 $ 9.06 October 2021 — — November 2021 — — December 2021 184,236 $ 9.06 879,789 (1) The shares redeemed in January 2021 were repurchased from employees upon vesting of restricted stock awards in order to facilitate the payment of taxes by the employees. |
Schedule of Distributions | For the year ended December 31, 2021, the Company paid aggregate distributions of $ 45.2 million including $ 34.6 million of distributions paid in cash and $ 10.6 million of distributions reinvested in shares of c ommon stock through the Company's distribution reinvestment plan, as follows (in thousands): Record Date Per Common Share Distribution Date Net Cash Distributions Distributions reinvested in shares of Common Stock Total Aggregate Distributions March 30, 2021 $ 0.07 March 31, 2021 $ 8,539 $ 2,490 $ 11,029 June 29, 2021 0.07 June 30, 2021 8,365 2,674 11,039 September 29, 2021 0.07 September 30, 2021 8,868 2,704 11,572 December 28, 2021 0.07 December 29, 2021 8,875 2,707 11,582 $ 0.28 $ 34,647 $ 10,575 $ 45,222 |
Summary of Changes in Unvested Restricted Stock | Employees were awarded 404,306 shares of three-year vesting restricted stock and the Company’s non-employee directors were awarded 42,980 shares of on e-year vesting restricted stock during the year ended December 31, 2021. The following table presents the changes in unvested restricted stock for the year ended December 31, 2021: Performance Based Awards Weighted Average Grant Date Fair Value Time-Based Service Awards Weighted Average Grant Date Fair Value Total Awards Unvested restricted shares, beginning of period 779,102 $ 9.08 11,170 $ 9.08 790,272 Granted 135,045 $ 9.08 447,286 $ 9.08 582,331 Forfeited — ( 1,651 ) ( 1,651 ) Vested ( 311,641 ) ( 3,722 ) ( 315,363 ) Unvested restricted shares, end of period 602,506 453,083 1,055,589 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following table presents information about the Company's assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as follows (in thousands): Level 1 Level 2 Level 3 Total December 31, 2021 Assets: Interest rate caps $ — $ 1,282 $ — $ 1,282 $ — $ 1,282 $ — $ 1,282 December 31, 2020 Assets: Interest rate caps $ — $ 62 $ — $ 62 $ — $ 62 $ — $ 62 |
Carrying Amount and Estimated Fair Values of Loan Held for Investment, Net, and Mortgage Notes Payable - outstanding borrowings | The following table presents the carrying amount and estimated fair value of the Company’s mortgage notes payable-outstanding borrowings (in thousands): December 31, 2021 December 31, 2020 Outstanding Estimated Outstanding Estimated Mortgage notes payable- outstanding borrowings $ 1,415,321 $ 1,358,503 $ 830,950 $ 822,859 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Outstanding Interest Rate Derivatives | The following table presents the Company's outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2021 and 2020 (dollars in thousands): Interest Rate Derivative Number of Instruments Notional Amount Maturity Dates December 31, 2021 Interest rate caps 18 $ 626,623 January 1, 2022 through February 1, 2026 December 31, 2020 Interest rate caps 22 $ 677,238 May 1, 2021 through January 1, 2025 |
Fair Value and Balance Sheet Location of Derivatives | The table below presents the fair value of the Company’s derivative financial instruments on the consolidated balance sheets as of December 31, 2021 and 2020 (in thousands): Asset Derivatives Liabilities Derivatives December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Prepaid expenses and other assets $ 1,282 Prepaid expenses and other assets $ 62 — $ — — $ — |
Nature of Business and Operat_2
Nature of Business and Operations (Details) - $ / shares | Jan. 23, 2022 | Jan. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||||
Minimum distribution percentage of taxable net income excluding net capital gains | 90.00% | |||
Common stock par value | $ 0.01 | $ 0.01 | ||
Convertible stock par value | $ 0.01 | $ 0.01 | ||
REIT I Merger Agreement | ||||
Class Of Stock [Line Items] | ||||
Date of merger agreement | Sep. 8, 2020 | |||
Effective date of merger agreement | Jan. 28, 2021 | |||
REIT I Company Merger | ||||
Class Of Stock [Line Items] | ||||
Convertible common stock, right to receive number of shares at the effective time of merger | 1.22423 | |||
Convertible common stock, right to receive cash per share without interest at the effective time of merger | $ 0.02 | |||
REIT I Partnership Merger | ||||
Class Of Stock [Line Items] | ||||
Convertible common stock, right to receive number of shares at the effective time of merger | 1.22423 | |||
Series A cumulative participating redeemable preferred unit, description | each Series A Cumulative Participating Redeemable Preferred Unit in OP I issued and outstanding immediately prior to the effective time of the REIT I Partnership Merger converted into the right to receive one Series A Cumulative Participating Redeemable Preferred Unit in OP II ("OP Preferred Units"). | |||
REIT III Merger Agreement | ||||
Class Of Stock [Line Items] | ||||
Date of merger agreement | Sep. 8, 2020 | |||
Effective date of merger agreement | Jan. 28, 2021 | |||
Convertible common stock, right to receive number of shares at the effective time of merger | 0.925862 | |||
Blackstone Merger Agreement | Subsequent Event | ||||
Class Of Stock [Line Items] | ||||
Date of merger agreement | Jan. 23, 2022 | |||
Common stock par value | $ 0.01 | |||
Right to receive cash for per common stock cancelled and converted | 14.75 | |||
Convertible stock par value | 0.01 | |||
Right to receive cash for per convertible stock cancelled and converted | $ 1,846.76 | |||
Shares issued through distribution reinvestment plan | ||||
Class Of Stock [Line Items] | ||||
Common stock, shares issued (in shares) | 165,800,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 28, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Deposits at various banks | $ 125,300,000 | |||
Cash, uninsured amount | 108,100,000 | |||
Asset Impairment Charges [Abstract] | ||||
Impairment of real estate | 0 | $ 0 | $ 0 | |
Revenue Recognition [Abstract] | ||||
Contract liability | $ 1,700,000 | 760,000 | ||
Revenue contract period | 10 years to 12 years | |||
Revenue recognized from contract with customer liability | $ 275,000 | 118,000 | 77,000 | |
Allowance for uncollectible receivables | 1,621,000 | 774,000 | ||
Adjustment to rental and other property income, net of recoveries | $ 2,000,000 | $ 1,200,000 | $ 299,000 | |
Description of asset management fee, percentage | The monthly asset management fee was equal to one-twelfth of 1.0% of the cost of each asset held by REIT II and one-twelfth of 1.0% of the appraised value of each asset held by REIT III, without deduction for depreciation, bad debts or other non-cash reserves. | |||
Description of property management fee, percentage | The monthly property management fee was calculated based on 4.5% of the gross monthly receipts from REIT II's and REIT III’s properties. | |||
Income Tax Disclosure [Abstract] | ||||
Minimum distribution percentage of taxable net income excluding net capital gains | 90.00% | |||
Distribution percentage of taxable net income not subject to federal corporate income tax | 100.00% | |||
Number of years entity may be precluded from REIT qualifications | 4 years | |||
Manager | ||||
Property, Plant and Equipment [Line Items] | ||||
Management fee (as percent) | 5.00% | |||
Convertible Stock | ||||
Revenue Recognition [Abstract] | ||||
Antidilutive securities not included in the diluted earnings per share calculations | 0 | |||
Unvested Performance Awards | ||||
Revenue Recognition [Abstract] | ||||
Antidilutive securities not included in the diluted earnings per share calculations | 467,461 | |||
REIT II and REIT III | ||||
Property, Plant and Equipment [Line Items] | ||||
Management fee (as percent) | 4.50% | |||
REIT I Company Merger | ||||
Reclassifications [Abstract] | ||||
Exchange ratio | 1.22423 | |||
Less Than 30 Days Past Due | ||||
Revenue Recognition [Abstract] | ||||
Receivables percentage included in the allowance balance | 13.10% | |||
31-60 Days Past Due | ||||
Revenue Recognition [Abstract] | ||||
Receivables percentage included in the allowance balance | 11.90% | |||
61-90 Days Past Due | ||||
Revenue Recognition [Abstract] | ||||
Receivables percentage included in the allowance balance | 1.20% | |||
Over 90 Days Past Due | ||||
Revenue Recognition [Abstract] | ||||
Receivables percentage included in the allowance balance | 73.80% | |||
Improvements and replacements | ||||
Property, Plant and Equipment [Line Items] | ||||
Improvements and replacements, useful life greater than or equal to one year, capitalization threshold (in years) | 1 year | |||
Operating leases for residential rental properties | ||||
Revenue Recognition [Abstract] | ||||
Future minimum rental payments, in one years | $ 124,200,000 | |||
Future minimum rental payments, in two years | 1,700,000 | |||
Future minimum rental payments, thereafter | 0 | |||
Operating leases for residential rental properties | Residential Real Estate Properties Held for Sale | ||||
Revenue Recognition [Abstract] | ||||
Future minimum rental held for sale, current | 9,800,000 | |||
Future minimum rental held for sale, in two years | 130,000 | |||
Future minimum rental held for sale, thereafter | 0 | |||
Commercial rental properties and antenna rentals | ||||
Revenue Recognition [Abstract] | ||||
Future minimum rental payments, in one years | 4,230,000 | |||
Future minimum rental payments, in two years | 389,000 | |||
Future minimum rental payments, in three years | 336,000 | |||
Future minimum rental payments, in four years | 253,000 | |||
Future minimum rental payments, in five years | 184,000 | |||
Future minimum rental payments, thereafter | $ 1,100,000 | |||
Texas | Geographic concentration risk | ||||
Risks and Uncertainties [Abstract] | ||||
Real estate investment | 26.00% | |||
Georgia | Geographic concentration risk | ||||
Risks and Uncertainties [Abstract] | ||||
Real estate investment | 13.00% | |||
Illinois | Geographic concentration risk | ||||
Risks and Uncertainties [Abstract] | ||||
Real estate investment | 12.00% | |||
Colorado | Geographic concentration risk | ||||
Risks and Uncertainties [Abstract] | ||||
Real estate investment | 10.00% | |||
California | Geographic concentration risk | ||||
Risks and Uncertainties [Abstract] | ||||
Real estate investment | 7.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 27 years 6 months |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 5 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 27 years 6 months |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 5 years |
Tenant improvements | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | Shorter of lease term or expected useful life |
Lease intangibles | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | Weighted average remaining term of related lease |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Net income (loss) | $ 54,903 | $ (24,133) | $ (1,747) |
Redemption of preferred OP units | (342) | ||
Preferred return to preferred OP unit holders | (3,161) | (1,406) | |
Net income (loss) after preferred return | 51,400 | (25,539) | (1,747) |
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest | 158 | 101 | |
Less: Net loss attributable to noncontrolling interest | 696 | 279 | |
Net income (loss) attributable to common stockholders | $ 52,254 | $ (25,159) | $ (1,747) |
Denominator for basic earnings per share | 153,820 | 85,531 | 85,861 |
Weighted average unvested restricted stock | 69 | ||
Denominator for diluted earnings per share | 153,889 | 85,531 | 85,861 |
Earnings Per Share [Abstract] | |||
Basic | $ 0.34 | $ (0.29) | $ (0.02) |
Diluted | $ 0.34 | $ (0.29) | $ (0.02) |
Self-Management Transaction - N
Self-Management Transaction - Narrative (Details) - USD ($) | Sep. 14, 2021 | Sep. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Units redeemed | 20,520,287 | |||
Goodwill | $ 154,531,000 | $ 154,935,000 | ||
OP I Preferred Units | C-III and Legacy Co | ||||
Business Acquisition [Line Items] | ||||
Units redeemed | 319,965 | |||
Common Units | C-III and Legacy Co | ||||
Business Acquisition [Line Items] | ||||
Common units exchanged for common stock | 7,539,737.53 | |||
Series A Preferred Units | C-III and Legacy Co | ||||
Business Acquisition [Line Items] | ||||
Units redeemed | 319,965 | |||
Self-Management Transaction | ||||
Business Acquisition [Line Items] | ||||
Leasehold improvements and furniture | $ 659,000 | |||
Deferred payments in cash | 7,500,000 | |||
Business combination outstanding obligation due | 811,000 | |||
Business combination assets acquired accrued management fees | 4,300,000 | |||
Business combination assets acquired prepaid rent | 150,000 | |||
Business combination liabilities assumed payroll liabilities | 2,900,000 | |||
Business combination liabilities assumed due to third party | 684,000 | |||
Transaction costs | $ 2,300,000 | |||
Goodwill | 154,500,000 | |||
Self-Management Transaction | Six Monthly | ||||
Business Acquisition [Line Items] | ||||
Deferred payments | 2,000,000 | |||
Deferred payments | 12,000,000 | |||
Self-Management Transaction | Twelve Monthly | ||||
Business Acquisition [Line Items] | ||||
Deferred payments | 625,000 | |||
Deferred payments | $ 7,500,000 | |||
Self-Management Transaction | O P I Common Units | ||||
Business Acquisition [Line Items] | ||||
Conversion of OP common units | 7,500,000 | |||
Self-Management Transaction | OP I Preferred Units | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | 319,965 | |||
Self-Management Transaction | Participation Rights of the OP I Preferred Units Increased OP Preferred Units | ||||
Business Acquisition [Line Items] | ||||
Conversion of OP common units | 391,711 | |||
Self-Management Transaction | PM Holdings and Advisor Holdings | REIT I OP | ||||
Business Acquisition [Line Items] | ||||
Percentage of membership interest | 100.00% | |||
Self-Management Transaction | PM Holdings and Advisor Holdings | REIT I OP | O P I Common Units | ||||
Business Acquisition [Line Items] | ||||
Business combination, consideration transferred | 6,200,000 |
Self-Management Transaction - S
Self-Management Transaction - Schedule of Consideration Given under Self-Management Transaction (Details) $ in Thousands | Sep. 08, 2020USD ($) |
Business Combinations [Abstract] | |
Fair value of OP I Units issued | $ 128,200 |
Net working capital | 811 |
Subsequent consideration | 27,000 |
Net consideration | $ 156,011 |
Self-Management Transaction -_2
Self-Management Transaction - Summary of Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 08, 2020 |
Assets: | |||
Goodwill | $ 154,531 | $ 154,935 | |
PM Holdings and Advisor Holdings | |||
Assets: | |||
Due from related parties | $ 4,299 | ||
Prepaid expenses and other assets | 150 | ||
Goodwill | 154,531 | ||
Property and equipment | 659 | ||
Operating lease right-of-use assets | 3,244 | ||
Total assets acquired | 162,883 | ||
Liabilities: | |||
Other liabilities | 3,628 | ||
Operating lease liabilities | 3,244 | ||
Total liabilities assumed | 6,872 | ||
Net assets acquired | $ 156,011 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-cash financing and investing activities: | |||
Stock issued pursuant to distribution reinvestment plan | $ 10,575 | $ 6,085 | $ 24,499 |
Accruals for construction in process | 2,237 | 848 | 2,470 |
Repayments on borrowings through refinancing | 461,968 | 130,539 | 58,350 |
Lease liabilities arising from obtaining right-of-use assets | 526 | ||
Accrued allocation of income to preferred unit holders | 1,120 | ||
Deferred financing costs, interest, and fees funded through refinancing | 3,245 | 973 | |
Non-cash activity related to sales: | |||
Mortgage notes payable settled directly with proceeds from sale of rental property | 65,900 | 61,041 | |
Cash paid during the period for: | |||
Interest | 41,865 | 25,106 | $ 35,936 |
Self-Management Transaction | |||
Non-cash activity related to Self-Management Transaction: | |||
Due to related parties for acquisition of net assets acquired in Self-Management Transaction | 19,125 | ||
Operating Partnership units issued in exchange for net assets acquired in Self-Management Transaction | $ 128,200 | ||
REIT II | |||
Non-cash activity related to Merger: | |||
Net assets acquired in Resource REIT Merger in exchange for common shares | 543,840 | ||
REIT III Merger Agreement | |||
Non-cash activity related to Merger: | |||
Net assets acquired in Resource REIT Merger in exchange for common shares | 101,435 | ||
REIT I | |||
Non-cash activity related to Merger: | |||
Net assets acquired in Resource REIT Merger in exchange for common shares | $ 645,275 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 10,420 | $ 14,769 | $ 12,304 |
Real Estate Taxes | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 6,879 | 7,910 | |
Insurance | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 1,486 | 1,350 | |
Debt service reserve | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 157 | 2,045 | |
Capital Improvements | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 1,898 | $ 3,464 |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) | Jan. 28, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)PropertyUnitshares | Dec. 31, 2020USD ($)Propertyshares | Dec. 31, 2019USD ($)Property |
Real Estate [Line Items] | ||||
Number of rental properties | Property | 45 | |||
Number of units | Unit | 13,707 | |||
Depreciation expense | $ | $ 88,500,000 | $ 51,500,000 | $ 53,800,000 | |
Net book value of rental properties | $ | $ 1,876,047,000 | $ 897,975,000 | ||
Common stock, issued (in shares) | 165,766,753 | 86,075,442 | ||
Common stock, outstanding (in shares) | 165,766,753 | 86,075,442 | ||
Disposed of by Sale | ||||
Real Estate [Line Items] | ||||
Number of rental properties | Property | 5 | 0 | 2 | |
Rental Properties Held For Sale | ||||
Real Estate [Line Items] | ||||
Number of rental properties | Property | 3 | |||
Net book value of rental properties | $ | $ 150,176,000 | |||
Minimum | Capitalization Rates | ||||
Real Estate [Line Items] | ||||
Valuation and purchase price allocation, measurement input | 4.5 | |||
Minimum | Discount Rates | ||||
Real Estate [Line Items] | ||||
Valuation and purchase price allocation, measurement input | 5 | |||
Maximum | Capitalization Rates | ||||
Real Estate [Line Items] | ||||
Valuation and purchase price allocation, measurement input | 5.5 | |||
Maximum | Discount Rates | ||||
Real Estate [Line Items] | ||||
Valuation and purchase price allocation, measurement input | 7.25 | |||
REIT I Company Merger | ||||
Real Estate [Line Items] | ||||
Convertible common stock, right to receive number of shares at the effective time of merger | 1.22423 | |||
Estimated net asset value per share of the merged entity | $ / shares | $ 9.06 | |||
Estimated value per share of merged entity | $ / shares | $ 11.09 | |||
REIT I Company Merger | Convertible Common Stock | ||||
Real Estate [Line Items] | ||||
Common stock, issued (in shares) | 70,300,000 | |||
Common stock, outstanding (in shares) | 70,300,000 | |||
REIT I Company Merger | REIT II Common Stock | ||||
Real Estate [Line Items] | ||||
Common stock, issued (in shares) | 60,000,000 | |||
Common stock, outstanding (in shares) | 60,026,513 | |||
Convertible common stock, right to receive number of shares at the effective time of merger | 1.22423 | |||
Convertible common stock total number of shares newly issued upon merger | 86,100,000 | |||
REIT I and REIT II Merger Agreement | ||||
Real Estate [Line Items] | ||||
Estimated capitalized transaction costs | $ | $ 4,980,000 | |||
REIT III Merger Agreement | ||||
Real Estate [Line Items] | ||||
Common stock, issued (in shares) | 12,100,000 | |||
Common stock, outstanding (in shares) | 12,092,466 | |||
Convertible common stock, right to receive number of shares at the effective time of merger | 0.925862 | |||
Estimated value per share of merged entity | $ / shares | $ 11.09 | |||
REIT I and REIT III Merger Agreement | ||||
Real Estate [Line Items] | ||||
Number of rental properties | Property | 23 | |||
Number of units | Unit | 6,508 | |||
Estimated capitalized transaction costs | $ | $ 929,000 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Investments in Rental Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Rental Properties, Net: | ||
Land | $ 293,492 | $ 196,355 |
Building and improvements | 1,799,028 | 929,323 |
Furniture, fixtures and equipment | 53,438 | 46,879 |
Construction in progress | 8,318 | 1,374 |
Rental properties, gross | 2,154,276 | 1,173,931 |
Less: accumulated depreciation | (278,229) | (275,956) |
Rental properties, net | 1,876,047 | $ 897,975 |
Rental Properties Held For Sale | ||
Rental Properties, Net: | ||
Land | 58,577 | |
Building and improvements | 134,489 | |
Furniture, fixtures and equipment | 8,179 | |
Construction in progress | 97 | |
Rental properties, gross | 201,342 | |
Less: accumulated depreciation | (51,166) | |
Rental properties, net | $ 150,176 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Calculation of Consideration Transferred (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Common stock outstanding as of January 28, 2021 | 165,766,753 | 86,075,442 | |
REIT I Company Merger | |||
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Merged entity estimated net asset value as of merger date | $ 9.06 | ||
Exchange ratio | 1.22423 | ||
REIT I estimated value per share as of January 28, 2021 | $ 11.09 | ||
REIT I Company Merger | REIT II Common Stock | |||
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Exchange ratio | 1.22423 | ||
Common stock outstanding as of January 28, 2021 | 60,026,513 | ||
REIT I Company Merger | REIT I Common Stock | |||
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Implied REIT I common stock issued as consideration | 49,032,055 | ||
Value of implied REIT I common stock issued as consideration | $ 543,840 | ||
REIT III Merger Agreement | |||
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Exchange ratio | 0.925862 | ||
REIT I estimated value per share as of January 28, 2021 | $ 11.09 | ||
Common stock outstanding as of January 28, 2021 | 12,092,466 | ||
REIT II shares issued as consideration | 11,195,955 | ||
REIT III Merger Agreement | REIT I Common Stock | |||
Summary Of Calculation Of Consideration Transferred [Line Items] | |||
Implied REIT I common stock issued as consideration | 9,145,303 | ||
Value of implied REIT I common stock issued as consideration | $ 101,435 |
Investments in Real Estate - _2
Investments in Real Estate - Summary of Allocation of Values of Real Estate and Other Assets and Liabilities (Details) | Jan. 28, 2021USD ($) |
REIT I and REIT II Merger Agreement | |
Assets: | |
Land | $ 127,920,000 |
Building and improvements | 940,630,000 |
Intangibles | 6,765,000 |
Cash and restricted cash | 67,563,000 |
Other assets | 6,062,000 |
Total assets acquired | 1,148,940,000 |
Liabilities: | |
Mortgage notes payable, net | 580,676,000 |
Due to related parties | 988,000 |
Accounts payable and other liabilities | 18,456,000 |
Total liabilities assumed | 600,120,000 |
Net assets acquired | 548,820,000 |
Less: REIT I's Merger expenses | 4,980,000 |
Fair value of net assets acquired, less REIT I's Merger expenses | 543,840,000 |
REIT I and REIT III Merger Agreement | |
Assets: | |
Land | 43,733,000 |
Building and improvements | 184,400,000 |
Intangibles | 1,609,000 |
Cash and restricted cash | 22,969,000 |
Other assets | 626,000 |
Total assets acquired | 253,337,000 |
Liabilities: | |
Mortgage notes payable, net | 147,191,000 |
Due to related parties | 836,000 |
Accounts payable and other liabilities | 2,946,000 |
Total liabilities assumed | 150,973,000 |
Net assets acquired | 102,364,000 |
Less: REIT I's Merger expenses | 929,000 |
Fair value of net assets acquired, less REIT I's Merger expenses | $ 101,435,000 |
Investments in Real Estate - _3
Investments in Real Estate - Summary of Allocation of Values of Real Estate and Other Assets and Liabilities (Parenthetical) (Details) $ in Millions | Jan. 28, 2021USD ($) |
REIT I and REIT II Merger Agreement | |
Business Acquisition [Line Items] | |
Mortgage notes payable, (discount) premium amount | $ (3) |
REIT I and REIT III Merger Agreement | |
Business Acquisition [Line Items] | |
Mortgage notes payable, (discount) premium amount | $ 2.1 |
Investments in Real Estate - _4
Investments in Real Estate - Summary of Revenue and Net Loss of Properties Acquired in Mergers (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 104,990 |
Net loss | (8,018) |
REIT II | |
Business Acquisition [Line Items] | |
Revenue | 84,212 |
Net loss | (5,696) |
REIT III | |
Business Acquisition [Line Items] | |
Revenue | 20,778 |
Net loss | $ (2,322) |
Investments in Real Estate - _5
Investments in Real Estate - Summary of Condensed Pro forma Operating Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Revenue | $ 248,584 | $ 239,902 |
Net income (loss) | 63,457 | (63,985) |
Net loss attributable to noncontrolling interests | 373 | 3,287 |
Net income (loss) attributable to common stockholders | $ 60,327 | $ (65,178) |
Net income (loss) to common stockholders per share, basic and diluted | $ 0.38 | $ (0.41) |
Investments in Real Estate - _6
Investments in Real Estate - Summary of Details of Disposition Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | $ 202,151 | $ 82,310 |
Net Gain on Disposition | 93,665 | 38,810 |
Revenue Attributable to Property Sold | 12,701 | 3,578 |
Net (Loss) Income Attributable to Properties Sold | 784 | (1,891) |
Evergreen at Coursey | Baton Rouge, LA | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 49,751 | |
Net Gain on Disposition | 18,734 | |
Revenue Attributable to Property Sold | 2,272 | |
Net (Loss) Income Attributable to Properties Sold | (107) | |
The Retreat at Rocky Ridge | Hoover, AL | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 25,400 | |
Net Gain on Disposition | 17,665 | |
Revenue Attributable to Property Sold | 1,962 | |
Net (Loss) Income Attributable to Properties Sold | 384 | |
Tech Center Square | Newport News, VA | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 36,700 | |
Net Gain on Disposition | 22,949 | |
Revenue Attributable to Property Sold | 2,407 | |
Net (Loss) Income Attributable to Properties Sold | 463 | |
The Brookwood | Homewood, AL | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 45,300 | |
Net Gain on Disposition | 6,385 | |
Revenue Attributable to Property Sold | 3,134 | |
Net (Loss) Income Attributable to Properties Sold | (210) | |
Pines of York | Yorktown, VA | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 45,000 | |
Net Gain on Disposition | 27,932 | |
Revenue Attributable to Property Sold | 2,926 | |
Net (Loss) Income Attributable to Properties Sold | $ 254 | |
Williamsburg | Cincinnati, OH | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 70,000 | |
Net Gain on Disposition | 34,575 | |
Revenue Attributable to Property Sold | 2,151 | |
Net (Loss) Income Attributable to Properties Sold | (1,431) | |
Pinehurst | Kansas City, MO | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Contract Sales Price | 12,310 | |
Net Gain on Disposition | 4,235 | |
Revenue Attributable to Property Sold | 1,427 | |
Net (Loss) Income Attributable to Properties Sold | $ (460) |
Identified Intangible Assets,_3
Identified Intangible Assets, Net and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 154,935 |
Goodwill, Ending Balance | 154,531 |
Evergreen at Coursey | |
Goodwill [Line Items] | |
Goodwill related to sale | (268) |
Pines of York | |
Goodwill [Line Items] | |
Goodwill related to sale | $ (136) |
Identified Intangible Assets,_4
Identified Intangible Assets, Net and Goodwill - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||
Identified intangible assets, net | $ 5,000 | ||
Goodwill | $ 154,531,000 | 154,935,000 | |
Acquired in-place leases | |||
Finite Lived Intangible Assets [Line Items] | |||
Identified intangible assets, net | 0 | 5,000,000 | |
Accumulated amortization | 32,300,000 | 27,100,000 | |
Amortization expense | $ 8,400,000 | $ 0 | $ 0 |
Debt - Summary of Debt, Net (De
Debt - Summary of Debt, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Total | $ 1,415,321 | |
Weighted average interest rate on total debt | 2.56% | 2.46% |
Mortgages | ||
Debt Instrument [Line Items] | ||
Mortgages notes payable, net - variable rate | $ 607,711 | $ 675,791 |
Mortgages notes payable, net - fixed rate | 801,140 | 150,195 |
Total | $ 1,408,851 | $ 825,986 |
Weighted Average Maturity in Years | 5 years 2 months 26 days | |
Mortgages | Variable Rate | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total debt | 2.05% | 2.12% |
Weighted Average Maturity in Years | 3 years 10 months 9 days | |
Mortgages | Fixed Rate | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate on total debt | 2.96% | 4.03% |
Weighted Average Maturity in Years | 6 years 3 months 14 days | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | $ 0 |
Weighted average interest rate on total debt | 0.00% | 0.00% |
Debt - Annual Future Principal
Debt - Annual Future Principal Payments on Outstanding Borrowings (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 38,899 |
2023 | 39,943 |
2024 | 226,578 |
2025 | 191,219 |
2026 | 95,567 |
Thereafter | 823,115 |
Total | $ 1,415,321 |
Debt - Narrative (Details)
Debt - Narrative (Details) | May 20, 2021USD ($) | Jan. 28, 2021USD ($)Property | Dec. 31, 2021USD ($)Apartment | Dec. 31, 2021USD ($)Apartment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Refinance or pay off of borrower's debt | $ 79,470,000 | $ 11,655,000 | $ 9,230,000 | |||
Amortization of deferred financing costs | 2,554,000 | 1,478,000 | 2,320,000 | |||
Tangible net worth | $ 678,800,000 | $ 678,800,000 | ||||
Percentage of net proceeds of future equity issuances | 75.00% | |||||
Borrowings under credit facility | $ 33,202,000 | 34,369,000 | 26,676,000 | |||
Number of apartments owned as collateral | Apartment | 37 | 37 | ||||
As of Last Day of Each Fiscal Quarter Thereafter | ||||||
Debt Instrument [Line Items] | ||||||
Financial covenants, percentage of consolidated indebtedness to asset value ratio | 60.00% | |||||
Consolidated fixed charge coverage ratio | 1.50 | |||||
Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Accumulated amortization of deferred financing costs | $ 4,600,000 | $ 4,600,000 | 6,300,000 | |||
Deferred financing costs, net | 6,300,000 | 6,300,000 | 5,700,000 | |||
Mortgage note payable | 74,400,000 | 74,400,000 | ||||
Mortgages | Interest Expense | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment penalties | 938,000 | |||||
Amortization of deferred financing costs | 3,800,000 | 1,500,000 | 2,300,000 | |||
Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Facility termination period | 15 years | |||||
Convertible loan advances from variable to fixed Description | Borrower has the option to convert variable rate advances to fixed rate advances beginning on the first day of the second year of the variable rate advance term and ending seven years prior to the Facility Termination Date, subject to the satisfaction of customary requirements set forth in the Loan Documents. | |||||
Initial advance amount | $ 495,200,000 | |||||
Number of real estate properties secured by mortgage | Property | 12 | |||||
Refinance or pay off of borrower's debt | $ 462,000,000 | |||||
Extinguishment costs | 4,600,000 | |||||
Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | Interest Expense | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment penalties | 2,400,000 | |||||
Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | REIT II | ||||||
Debt Instrument [Line Items] | ||||||
Number of real estate properties secured by mortgage | Property | 5 | |||||
Secured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Initial advance amount | $ 100,000,000 | |||||
Accumulated amortization of deferred financing costs | 230,000 | 230,000 | ||||
Letters of credit | $ 15,000,000 | |||||
Line of credit, interest-only facility maturity period | 3 years | |||||
Line of credit, extension maturity period | 1 year | |||||
Line of credit, maximum amount | $ 500,000,000 | $ 100,000,000 | 100,000,000 | |||
Credit facility, default rate | 2.00% | |||||
Borrowings under credit facility | $ 0 | |||||
Number of apartments owned as collateral | Apartment | 6 | 6 | ||||
Credit facility, unused fee paid | $ 188,333 | |||||
Secured Revolving Credit Facility | Prepaid Expenses and Other Assets | ||||||
Debt Instrument [Line Items] | ||||||
Deferred finance costs | $ 1,100,000 | 1,100,000 | ||||
Secured Revolving Credit Facility | Interest Expense | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of deferred financing costs | 230,000 | |||||
Secured Revolving Credit Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 0.50% | |||||
Secured Revolving Credit Facility | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 1.00% | |||||
Secured Revolving Credit Facility | Mortgages | ||||||
Debt Instrument [Line Items] | ||||||
Deferred financing costs, net | 892,000 | $ 892,000 | ||||
Minimum | As of Last Day of Each of First Four Fiscal Quarters Ending After May 20, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated fixed charge coverage ratio | 1.35 | |||||
Minimum | Secured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of total indebtedness to total asset value ratio | 60.00% | |||||
Minimum | Secured Revolving Credit Facility | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 1.60% | |||||
Minimum | Secured Revolving Credit Facility | Base Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 0.60% | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of consolidated secured recourse indebtedness to total asset value | 5.00% | |||||
Maximum | As of Last Day of Each of First Six Fiscal Quarters Ending After May 20, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Financial covenants, percentage of consolidated indebtedness to asset value ratio | 65.00% | |||||
Maximum | Secured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of total indebtedness to total asset value ratio | 45.00% | |||||
Maximum | Secured Revolving Credit Facility | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 2.20% | |||||
Maximum | Secured Revolving Credit Facility | Base Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as percent) | 1.20% | |||||
Fixed Advances | Minimum | Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Facility termination period | 5 years | |||||
Fixed Advances | Maximum | Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Facility termination period | 15 years | |||||
Variable Advances | Minimum | Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Facility termination period | 5 years | |||||
Variable Advances | Maximum | Structured Credit Facility Transaction | CBRE Multifamily Capital, Inc. | Borrowers | ||||||
Debt Instrument [Line Items] | ||||||
Facility termination period | 10 years | |||||
Acquisitions of Rental Property | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in interest expense due to fair value adjustments | $ 21,000 | $ (315,000) | $ (333,000) | |||
Net premium or discount included in consolidated balance sheets | $ 162,000 | $ 162,000 |
Debt - Summary of Additional In
Debt - Summary of Additional Information about Initial Advance on Facility (Details) - Structured Credit Facility Transaction - Borrowers | Jan. 28, 2021USD ($) | |
Fixed Advance 1 | ||
Debt Instrument [Line Items] | ||
Original Loan Amount | $ 235,205,000 | |
Maturity Date | Feb. 1, 2031 | |
Annual Interest Rate | 2.79% | |
Fixed Advance 2 | ||
Debt Instrument [Line Items] | ||
Original Loan Amount | $ 235,205,000 | |
Maturity Date | Feb. 1, 2028 | |
Annual Interest Rate | 2.62% | |
Floating Advance | ||
Debt Instrument [Line Items] | ||
Original Loan Amount | $ 24,760,000 | |
Maturity Date | Feb. 1, 2031 | |
Annual Interest Rate | 2.11% | [1] |
[1] | Floating rate based on 30-day average SOFR plus a fixed margin of 2.06 %. |
Debt - Summary of Additional _2
Debt - Summary of Additional Information about Initial Advance on Facility (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
SOFR | Structured Credit Facility Transaction | Borrowers | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as percent) | 2.06% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | Sep. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leased Assets [Line Items] | ||||
Option to extend lease term | Some of the leases include options to extend the lease for up to an additional five years | |||
Lessee, operating lease, existence of option to extend | true | |||
Payments due for lease obligations | $ 2,762,000 | |||
Weighted average remaining lease term | 4 years 8 months 8 days | |||
Weighted average discount rate | 2.21% | |||
Operating lease right-of-use assets | $ 2,600,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets | |||
Operating lease liabilities | $ 2,624,000 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts Payable And Accrued Liabilities Current And Noncurrent | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Operating leases, remaining terms | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Operating leases, remaining terms | 6 years | |||
Parking Lot Lease | Rental Operating Expenses | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, expense | $ 36,000 | $ 36,000 | $ 36,000 | |
All Other Leases | General and Administrative Expenses | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease, expense | $ 624,000 | $ 253,000 | $ 126,000 | |
Philadelphia Office Lease | ||||
Operating Leased Assets [Line Items] | ||||
Operating leases, remaining terms | 5 years | |||
Operating lease expiration month and year | 2026-09 | |||
Minimum lease rental payments | $ 45,034 |
Leases - Schedule of Annual Pay
Leases - Schedule of Annual Payments for Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 583 |
2023 | 572 |
2024 | 573 |
2025 | 586 |
2026 | 448 |
Total future minimum operating lease payments | 2,762 |
Less: imputed interest | (138) |
Operating lease liabilities | $ 2,624 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 276,620 | $ 182,815 | $ 236,306 |
Designated derivatives, fair value adjustments | (620) | 306 | 88 |
Noncontrolling interest | 9 | (9) | |
Ending balance | 867,595 | 276,620 | 182,815 |
'Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (391) | (218) | (474) |
Reclassification adjustment for realized loss on designated derivatives | 42 | 124 | 344 |
Designated derivatives, fair value adjustments | 620 | (306) | (88) |
Noncontrolling interest | (9) | 9 | |
Ending balance | $ 262 | $ (391) | $ (218) |
Certain Relationships and Rel_3
Certain Relationships and Related Party Transactions - Narrative (Details) - USD ($) | Sep. 14, 2021 | Dec. 31, 2021 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||
Units redeemed | 20,520,287 | ||
Redemption value | $ 359,000 | ||
Catastrophic insurance, losses in excess of insurance pool, limit | $ 250,000,000 | ||
Catastrophic insurance policy expiration date | Mar. 1, 2021 | ||
General liability insured and dedicated limit per occurrence | $ 1,000,000 | ||
General liability pool claim amount limit | 2,000,000 | ||
General liability loss per occurrence excess liability program | 50,000,000 | ||
General liability insurance, loss covered in excess of insurance pool, limit | 51,000,000 | ||
General liability pool, deductible amount per incident | $ 25,000 | ||
General liability loss policy expiration date | Mar. 1, 2021 | ||
Minimum | |||
Related Party Transaction [Line Items] | |||
Catastrophic insurance, deductible amount per incident | $ 25,000 | ||
Maximum | |||
Related Party Transaction [Line Items] | |||
Catastrophic insurance, deductible amount per incident | $ 100,000 | ||
Manager | |||
Related Party Transaction [Line Items] | |||
Property management fee (as percent) | 4.50% | ||
Occupancy (as percent) | 75.00% | ||
Term for which Manager received minimum property management fee if properties are less than 75% occupied | 12 months | ||
Construction management fee (as percent) | 5.00% | ||
Debt servicing fee (as percent) | 2.75% | ||
C-III and RAI | |||
Related Party Transaction [Line Items] | |||
Terms of transitional services agreement | 1 year | ||
C-III and RAI | OPI Common Units | |||
Related Party Transaction [Line Items] | |||
Units owned by noncontrolling interests | 7,500,000 | ||
C-III and RAI | OPI Preferred Units | |||
Related Party Transaction [Line Items] | |||
Units owned by noncontrolling interests | 319,965 | ||
C-III and RAI | Common Stock | |||
Related Party Transaction [Line Items] | |||
Units owned by noncontrolling interests | 8,300,000 | ||
C-III and Legacy Co | OPI Preferred Units | |||
Related Party Transaction [Line Items] | |||
Units redeemed | 319,965 | ||
Redemption value | $ 67,500,000 | ||
C-III and Legacy Co | Common Stock | |||
Related Party Transaction [Line Items] | |||
Common units exchanged for common stock | 7,539,737.53 | ||
Former Advisor | |||
Related Party Transaction [Line Items] | |||
Term of Advisory Agreement | 1 year | ||
Advisory Agreement, renewal period | 1 year | ||
Acquisition fee (as percent) | 2.00% | ||
Monthly asset management fee (as percent) | 0.083% | ||
Percentage annual asset management fee (as percent) | 1.00% | ||
Disposition fee as a percentage of the aggregate brokerage commission paid | 50.00% | ||
Disposition fee (as percent) | 2.75% | ||
Debt financing fee (as percent) | 0.50% |
Certain Relationships and Rel_4
Certain Relationships and Related Party Transactions - Fees Earned/Expenses Paid and Amounts Payable to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 2,763 | ||
Due to related parties | 20,245 | ||
REIT II | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1,915 | ||
REIT II | Internal Audit | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | $ 8 | 33 | |
REIT II | Management fees | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 327 | ||
REIT II | Expense Reimbursements | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 1,588 | ||
Fees earned / expenses paid to related parties | 371 | 1,529 | |
REIT II | Debt financing fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 184 | ||
REIT II | Asset management fee income | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 669 | 2,866 | |
REIT II | Property management fee income | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 275 | 1,198 | |
REIT III | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 848 | ||
REIT III | Management fees | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 79 | ||
REIT III | Deferred organization and offering costs reimbursements | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 769 | ||
REIT III | Asset management fee income | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 164 | 705 | |
REIT III | Property management fee income | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 67 | 295 | |
C-III/RAI | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 20,245 | ||
C-III/RAI | Self-Management Transaction Consideration | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 19,125 | ||
C-III/RAI | Allocation of income to preferred unit holders | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,120 | ||
C-III/RAI | Transition Services | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 2 | 182 | |
C-III/RAI | Transition Services Paid to Company | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 17 | ||
C-III/RAI | Preferred Unit Distributions | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 3,161 | 1,406 | |
C-III/RAI | Common OP Unit Distributions | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 1,110 | ||
C-III/RAI | Sublease Rent Reimbursement | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 15 | ||
ACR | Internal Audit | |||
Related Party Transaction [Line Items] | |||
Fees earned from related parties | 37 | 47 | |
ACR | Sublease Rent Reimbursement | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | $ 30 | 44 | |
Former Advisor | Disposition Fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | $ 453 | ||
Former Advisor | Internal Audit | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 75 | 108 | |
Former Advisor | Acquisition costs | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 113 | ||
Former Advisor | Asset management fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 8,517 | 12,498 | |
Former Advisor | Debt financing fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 43 | 116 | |
Former Advisor | Overhead allocation | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 2,955 | 3,663 | |
Manager | Construction Payroll Reimbursements | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 97 | ||
Manager | Expense Reimbursements | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 184 | ||
Manager | Property management fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 4,071 | 6,034 | |
Manager | Construction management fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | 298 | 500 | |
Manager | Debt servicing fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | $ 1 | 2 | |
Other | The Planning & Zoning Resource Company | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses paid to related parties | $ 2 |
Equity - Preferred Stock - (Det
Equity - Preferred Stock - (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Equity - Common Stock (Details)
Equity - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||
Common stock, outstanding (in shares) | 165,766,753 | 86,075,442 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 165,766,753 | 86,075,442 |
Gross Proceeds | $ 1,582,101 | |
Total (in shares) | 186,287,040 | |
Share redeemed and retired (in shares) | (20,520,287) | |
Shares issued through private offering | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 1,279,227 | |
Gross Proceeds | $ 12,737 | |
Shares issued through primary public offering | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 129,923,354 | |
Gross Proceeds | $ 1,289,845 | |
Shares issued through stock distributions | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 2,406,986 | |
Shares issued through distribution reinvestment plan | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 29,042,460 | |
Gross Proceeds | $ 279,519 | |
Restricted shares issued to employees | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 1,370,952 | |
Shares issued through conversion of common OP units | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 7,539,738 | |
Mergers | ||
Class Of Stock [Line Items] | ||
Common stock, issued (in shares) | 14,724,323 | |
Unvested Restricted Stock | ||
Class Of Stock [Line Items] | ||
Common stock, outstanding (in shares) | 1,055,589 | 790,272 |
Common stock, issued (in shares) | 1,055,589 | 790,272 |
Shares issued through distribution reinvestment plan | ||
Class Of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 8.61 |
Equity - Convertible Stock - (D
Equity - Convertible Stock - (Details) | 12 Months Ended | |
Dec. 31, 2021Event$ / sharesshares | Dec. 31, 2020$ / sharesshares | |
Class Of Stock [Line Items] | ||
Convertible stock, outstanding (in shares) | 50,000 | 49,935 |
Convertible stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 |
Convertible stock held by subsidiary | 30,273 | |
Convertible stock held by affiliated persons (in shares) | 18,628 | 18,790 |
Convertible stock held by outside investors (in shares) | 872 | |
Percentage on original share price (as percent) | 100.00% | |
Percentage non-compounded annual return, option one (as percent) | 7.00% | |
Aggregate percentage return (as percent) | 7.00% | |
Number of possible triggering events | Event | 2 | |
Conversion ratio | 0.00002 | |
Common stock, convertible, triggering event, if lesser of, option one (as percent) | 15.00% | |
Number of triggering events | Event | 0 | |
REIT I Merger | Convertible Common Stock | ||
Class Of Stock [Line Items] | ||
Convertible stock right to receive per share | $ / shares | $ 0.02 |
Equity - Redemption of Securiti
Equity - Redemption of Securities (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | |
Equity [Abstract] | |||||||||||||
Total Number of Shares Redeemed (in shares) | 184,236 | 0 | 0 | 240,767 | 0 | 0 | 148,989 | 0 | 0 | 169,112 | 0 | 136,685 | 879,789 |
Average Price Paid per Share (in dollars per share) | $ 9.06 | $ 0 | $ 0 | $ 9.06 | $ 0 | $ 0 | $ 9.06 | $ 0 | $ 0 | $ 9.08 | $ 0 | $ 9.08 | $ 9.06 |
Equity - Amended Share Redempti
Equity - Amended Share Redemption Program (Details) | Feb. 03, 2021 |
Maximum | |
Subsidiary Sale of Stock [Line Items] | |
Number of business days of payment for share redeemed after redemption date | 5 days |
Equity - Distributions Paid to
Equity - Distributions Paid to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Securities Financing Transaction [Line Items] | |||
Total Aggregate Distribution | $ 45,222 | ||
Net Cash Distribution | 34,647 | ||
Common stock issued through distribution reinvestment plan | $ 10,575 | $ 6,085 | $ 24,499 |
Per Common Share (in dollars per share) | $ 0.28 | ||
Record date of March 30, 2021 | |||
Securities Financing Transaction [Line Items] | |||
Total Aggregate Distribution | $ 11,029 | ||
Net Cash Distribution | 8,539 | ||
Common stock issued through distribution reinvestment plan | $ 2,490 | ||
Per Common Share (in dollars per share) | $ 0.07 | ||
Record date of June 29, 2021 | |||
Securities Financing Transaction [Line Items] | |||
Total Aggregate Distribution | $ 11,039 | ||
Net Cash Distribution | 8,365 | ||
Common stock issued through distribution reinvestment plan | $ 2,674 | ||
Per Common Share (in dollars per share) | $ 0.07 | ||
Record date of September 29, 2021 | |||
Securities Financing Transaction [Line Items] | |||
Total Aggregate Distribution | $ 11,572 | ||
Net Cash Distribution | 8,868 | ||
Common stock issued through distribution reinvestment plan | $ 2,704 | ||
Per Common Share (in dollars per share) | $ 0.07 | ||
Record date of December 28, 2021 | |||
Securities Financing Transaction [Line Items] | |||
Total Aggregate Distribution | $ 11,582 | ||
Net Cash Distribution | 8,875 | ||
Common stock issued through distribution reinvestment plan | $ 2,707 | ||
Per Common Share (in dollars per share) | $ 0.07 |
Equity - Share-Based Compensati
Equity - Share-Based Compensation (Details) - USD ($) | Sep. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 19, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted shares, beginning of period | 790,272 | |||
Number of shares granted | 582,331 | |||
Forfeited | (1,651) | |||
Vested | (315,363) | |||
Unvested restricted shares, end of period | 1,055,589 | 790,272 | ||
Performance-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted shares, beginning of period | 779,102 | |||
Number of shares granted | 135,045 | |||
Vested | (311,641) | |||
Unvested restricted shares, end of period | 602,506 | 779,102 | ||
Unvested restricted shares, weighted average grant date fair value beginning of period | $ 9.08 | |||
Granted | $ 9.08 | |||
Time-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unvested restricted shares, beginning of period | 11,170 | |||
Number of shares granted | 447,286 | |||
Forfeited | (1,651) | |||
Vested | (3,722) | |||
Unvested restricted shares, end of period | 453,083 | 11,170 | ||
Unvested restricted shares, weighted average grant date fair value beginning of period | $ 9.08 | |||
Granted | $ 9.08 | |||
Employees | Unvested Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vesting period | 3 years | |||
Number of shares granted | 404,306 | |||
Non-employee Directors | Unvested Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vesting period | 1 year | |||
Number of shares granted | 42,980 | |||
2020 LTIP | Performance-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Distribution payable | $ 169,000 | |||
Share Based Compensation Arrangement By Share Based Payment Award Granted Effective Date | Feb. 17, 2021 | |||
2020 LTIP | Officers and Certain Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 11,170 | |||
2020 LTIP | Officers and Certain Employees | Unvested Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares grants converted | 790,272 | |||
Fair value of shares granted per share | $ 9.08 | |||
Share-based payment award, compensation expense | $ 4,600,000 | $ 11,000 | ||
Unrecognized compensation expense | $ 7,900,000 | |||
Number of shares granted | 645,526 | |||
2020 LTIP | Officers and Certain Employees | Performance-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 779,102 | |||
2020 LTIP | Officers and Certain Employees | Performance-based Restricted Stock | Upon Completion of Merger | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vesting percentage | 40.00% | |||
Vested | (311,641) | |||
2020 LTIP | Officers and Certain Employees | Performance-based Restricted Stock | Upon Completion of an Initial Public Offering or Liquidity Event | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vesting percentage | 60.00% | |||
2020 LTIP | Officers and Certain Employees | Time-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based payment award, vesting period | 3 years | |||
2020 LTIP | Common Stock | Performance-based Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of shares granted per share | $ 9.08 | |||
2020 LTIP | Common Stock | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized | 3,500,000 |
Equity - Noncontrolling Interes
Equity - Noncontrolling Interests (Details) - USD ($) $ in Thousands | Sep. 14, 2021 | Sep. 08, 2020 | Dec. 31, 2021 | Dec. 31, 2019 |
Minority Interest [Line Items] | ||||
Units redeemed | 20,520,287 | |||
Redemption value | $ 359 | |||
OP I Preferred Units | ||||
Minority Interest [Line Items] | ||||
Percentage of preferred unit return | 7.00% | |||
OP I Preferred Units | C-III and Legacy Co | ||||
Minority Interest [Line Items] | ||||
Units redeemed | 319,965 | |||
Redemption value | $ 67,500 | |||
Common Stock | C-III and Legacy Co | ||||
Minority Interest [Line Items] | ||||
Common units exchanged for common stock | 7,539,737.53 |
Equity - Investor Rights Agreem
Equity - Investor Rights Agreement (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investor Rights Agreement [Line Items] | |
Preferred stock redemption expense | $ 342,000 |
REIT I OP | |
Investor Rights Agreement [Line Items] | |
Percentage of weighted average shares outstanding by noncontrolling interests | 3.50% |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures - Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | $ 1,282 | $ 62 |
Assets at fair value | 1,282 | 62 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | 1,282 | 62 |
Assets at fair value | $ 1,282 | $ 62 |
Fair Value Measures and Discl_4
Fair Value Measures and Disclosures - Schedule of Carrying Amount and Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable- outstanding borrowings | $ 1,415,321 | $ 830,950 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable- outstanding borrowings | $ 1,358,503 | $ 822,859 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)DerivativeLoan | Dec. 31, 2020USD ($)Derivative | Dec. 31, 2019USD ($) | |
Derivatives Fair Value [Line Items] | |||
Interest rate hedge to be reclassified during next 12 months | $ 144,000 | ||
Number of repaid or refinanced loans | Loan | 16 | ||
Effective cash flow hedges fair value | $ 280,000 | ||
Cash flow hedges | |||
Derivatives Fair Value [Line Items] | |||
Expenses or loss due to amortization of premiums for interest rate caps | $ 42,000 | $ 124,000 | $ 344,000 |
Cash flow hedges | Interest Rate Caps | |||
Derivatives Fair Value [Line Items] | |||
Number of Interest Rate Derivatives Held | Derivative | 18 | 22 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Outstanding Interest Rate Derivatives (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Derivative | Dec. 31, 2020USD ($)Derivative | |
Minimum | ||
Derivatives Fair Value [Line Items] | ||
Maturity Dates | Jan. 1, 2022 | May 1, 2021 |
Maximum | ||
Derivatives Fair Value [Line Items] | ||
Maturity Dates | Feb. 1, 2026 | Jan. 1, 2025 |
Cash flow hedges | Interest Rate Caps | ||
Derivatives Fair Value [Line Items] | ||
Number of Instruments (in derivatives) | Derivative | 18 | 22 |
Notional Amount | $ | $ 626,623 | $ 677,238 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Fair Value and Balance Sheet Location of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid expenses and other assets | ||
Derivatives Fair Value [Line Items] | ||
Asset derivatives, fair value | $ 1,282 | $ 62 |
Benefit Plan - Narrative (Detai
Benefit Plan - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contributions, amount | $ 272,000 | $ 36,000 | |
Defined Benefit Contribution One | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching percentage of employee contributions | 100.00% | ||
Company matching percentage of per employee contributions | 3.00% | ||
Defined Benefit Contribution Two | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company matching percentage of employee contributions | 50.00% | ||
Company matching percentage of per employee contributions | 2.00% |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Events - USD ($) $ in Millions | Mar. 22, 2022 | Jan. 20, 2022 |
Yorba Linda, California | Bryant at Yorba Linda | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of building | $ 205.5 | |
San Antonio, Texas | Maxwell Townhomes | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of building | $ 48 | |
San Antonio, Texas | Sunset Ridge | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of building | $ 60.8 |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation - Schedule of Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 1,415,321 | |||
Initial cost to Company | 2,197,968 | |||
Cost capitalized subsequent to acquisition | 157,650 | |||
Gross Amount at which carried at close of period | 2,355,618 | $ 1,173,930 | $ 1,163,727 | $ 1,212,720 |
Accumulated Depreciation | (329,395) | $ (275,955) | $ (225,583) | $ (194,777) |
Iroquois | Philadelphia, PA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | 11,076 | |||
Cost capitalized subsequent to acquisition | 6,578 | |||
Gross Amount at which carried at close of period | 17,654 | |||
Accumulated Depreciation | $ (6,932) | |||
Date of Construction | 1961 | |||
Date Acquired | Jun. 17, 2011 | |||
Cannery | Dayton, OH | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 8,273 | |||
Cost capitalized subsequent to acquisition | 2,468 | |||
Gross Amount at which carried at close of period | 10,741 | |||
Accumulated Depreciation | $ (4,570) | |||
Date of Construction | 1838 | |||
Date Acquired | May 13, 2011 | |||
Trailpoint at the Woodlands | Houston, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 26,496 | |||
Cost capitalized subsequent to acquisition | 5,056 | |||
Gross Amount at which carried at close of period | 31,552 | |||
Accumulated Depreciation | $ (11,524) | |||
Date of Construction | 1981 | |||
Date Acquired | Jun. 24, 2013 | |||
The Westside | Plano, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 38,805 | |||
Initial cost to Company | 31,001 | |||
Cost capitalized subsequent to acquisition | 8,556 | |||
Gross Amount at which carried at close of period | 39,557 | |||
Accumulated Depreciation | $ (13,292) | |||
Date of Construction | 1984 | |||
Date Acquired | Jul. 25, 2013 | |||
Verona | Littleton, CO | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 41,275 | |||
Initial cost to Company | 23,321 | |||
Cost capitalized subsequent to acquisition | 11,275 | |||
Gross Amount at which carried at close of period | 34,596 | |||
Accumulated Depreciation | $ (11,066) | |||
Date of Construction | 1985 | |||
Date Acquired | Sep. 30, 2013 | |||
Skyview | Westminster, CO | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 27,750 | |||
Initial cost to Company | 29,509 | |||
Cost capitalized subsequent to acquisition | 4,425 | |||
Gross Amount at which carried at close of period | 33,934 | |||
Accumulated Depreciation | $ (10,102) | |||
Date of Construction | 1985 | |||
Date Acquired | Sep. 30, 2013 | |||
Maxwell Townhomes | San Antonio, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 21,831 | |||
Cost capitalized subsequent to acquisition | 7,148 | |||
Gross Amount at which carried at close of period | 28,979 | |||
Accumulated Depreciation | $ (11,672) | |||
Date of Construction | 1982 | |||
Date Acquired | Dec. 16, 2013 | |||
Meridian Pointe | Burnsville, MN | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 37,414 | |||
Initial cost to Company | 32,142 | |||
Cost capitalized subsequent to acquisition | 6,644 | |||
Gross Amount at which carried at close of period | 38,786 | |||
Accumulated Depreciation | $ (13,377) | |||
Date of Construction | 1988 | |||
Date Acquired | Dec. 20, 2013 | |||
Estates at Johns Creek | Alpharetta, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 65,650 | |||
Initial cost to Company | 69,111 | |||
Cost capitalized subsequent to acquisition | 10,796 | |||
Gross Amount at which carried at close of period | 79,907 | |||
Accumulated Depreciation | $ (27,263) | |||
Date of Construction | 1999 | |||
Date Acquired | Mar. 28, 2014 | |||
Perimeter Circle | Atlanta, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 26,115 | |||
Initial cost to Company | 28,911 | |||
Cost capitalized subsequent to acquisition | 3,944 | |||
Gross Amount at which carried at close of period | 32,855 | |||
Accumulated Depreciation | $ (10,556) | |||
Date of Construction | 1995 | |||
Date Acquired | May 19, 2014 | |||
Perimeter 5550 | Atlanta, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 21,796 | |||
Cost capitalized subsequent to acquisition | 3,732 | |||
Gross Amount at which carried at close of period | 25,528 | |||
Accumulated Depreciation | $ (8,326) | |||
Date of Construction | 1995 | |||
Date Acquired | May 19, 2014 | |||
Aston at Cinco Ranch | Katy, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 31,385 | |||
Cost capitalized subsequent to acquisition | 3,717 | |||
Gross Amount at which carried at close of period | 35,102 | |||
Accumulated Depreciation | $ (10,843) | |||
Date of Construction | 2000 | |||
Date Acquired | Jun. 26, 2014 | |||
Sunset Ridge | San Antonio, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 28,600 | |||
Initial cost to Company | 34,554 | |||
Cost capitalized subsequent to acquisition | 7,266 | |||
Gross Amount at which carried at close of period | 41,820 | |||
Accumulated Depreciation | $ (12,346) | |||
Date of Construction | 1949 | |||
Date Acquired | Sep. 4, 2014 | |||
Calloway at Las Colinas | Irving, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 51,935 | |||
Initial cost to Company | 47,075 | |||
Cost capitalized subsequent to acquisition | 12,141 | |||
Gross Amount at which carried at close of period | 59,216 | |||
Accumulated Depreciation | $ (18,178) | |||
Date of Construction | 1984 | |||
Date Acquired | Sep. 29, 2014 | |||
South Lamar Village | Austin, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 23,140 | |||
Initial cost to Company | 23,370 | |||
Cost capitalized subsequent to acquisition | 5,888 | |||
Gross Amount at which carried at close of period | 29,258 | |||
Accumulated Depreciation | $ (9,331) | |||
Date of Construction | 1981 | |||
Date Acquired | Feb. 26, 2015 | |||
Heritage Pointe | Gilbert, AZ | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 60,760 | |||
Initial cost to Company | 35,070 | |||
Cost capitalized subsequent to acquisition | 8,898 | |||
Gross Amount at which carried at close of period | 43,968 | |||
Accumulated Depreciation | $ (13,613) | |||
Date of Construction | 1986 | |||
Date Acquired | Mar. 19, 2015 | |||
The Bryant at Yorba Linda | Orange County, CA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 74,367 | |||
Initial cost to Company | 116,036 | |||
Cost capitalized subsequent to acquisition | 14,519 | |||
Gross Amount at which carried at close of period | 130,555 | |||
Accumulated Depreciation | $ (27,148) | |||
Date of Construction | 1986 | |||
Date Acquired | Jun. 1, 2015 | |||
Point Bonita | Chula Vista, CA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 24,776 | |||
Initial cost to Company | 50,365 | |||
Cost capitalized subsequent to acquisition | 7,329 | |||
Gross Amount at which carried at close of period | 57,694 | |||
Accumulated Depreciation | $ (12,402) | |||
Date of Construction | 1988 | |||
Date Acquired | Jun. 15, 2015 | |||
Providence in the Park | Arlington, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 55,250 | |||
Initial cost to Company | 61,490 | |||
Cost capitalized subsequent to acquisition | 4,702 | |||
Gross Amount at which carried at close of period | 66,192 | |||
Accumulated Depreciation | $ (14,064) | |||
Date of Construction | 1997 | |||
Date Acquired | Dec. 22, 2016 | |||
Green Trails | Lisle, IL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 58,125 | |||
Initial cost to Company | 77,128 | |||
Cost capitalized subsequent to acquisition | 2,732 | |||
Gross Amount at which carried at close of period | 79,860 | |||
Accumulated Depreciation | $ (12,996) | |||
Date of Construction | 1988 | |||
Date Acquired | May 31, 2017 | |||
Terraces at Lake Mary | Lake Mary, FL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 30,596 | |||
Initial cost to Company | 43,132 | |||
Cost capitalized subsequent to acquisition | 2,208 | |||
Gross Amount at which carried at close of period | 45,340 | |||
Accumulated Depreciation | $ (7,699) | |||
Date of Construction | 1998 | |||
Date Acquired | Aug. 31, 2017 | |||
Courtney Meadows | Jacksonville, FL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 25,865 | |||
Initial cost to Company | 40,508 | |||
Cost capitalized subsequent to acquisition | 2,090 | |||
Gross Amount at which carried at close of period | 42,598 | |||
Accumulated Depreciation | $ (6,524) | |||
Date of Construction | 2001 | |||
Date Acquired | Dec. 20, 2017 | |||
Addison at Sandy Spring | Sandy Springs, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 21,855 | |||
Initial cost to Company | 33,260 | |||
Cost capitalized subsequent to acquisition | 3,348 | |||
Gross Amount at which carried at close of period | 36,608 | |||
Accumulated Depreciation | $ (5,737) | |||
Date of Construction | 1986 | |||
Date Acquired | Apr. 17, 2018 | |||
Bristol Grapevine | Grapevine, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 32,443 | |||
Initial cost to Company | 43,626 | |||
Cost capitalized subsequent to acquisition | 4,452 | |||
Gross Amount at which carried at close of period | 48,078 | |||
Accumulated Depreciation | $ (7,796) | |||
Date of Construction | 1978 | |||
Date Acquired | Apr. 25, 2018 | |||
Uptown Buckhead | Atlanta, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 25,740 | |||
Initial cost to Company | 42,028 | |||
Cost capitalized subsequent to acquisition | 245 | |||
Gross Amount at which carried at close of period | 42,273 | |||
Accumulated Depreciation | $ (1,278) | |||
Date of Construction | 1989 | |||
Date Acquired | Jan. 28, 2021 | |||
Crosstown at Chapel Hill | Chapel Hill, Nc | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 42,212 | |||
Initial cost to Company | 76,180 | |||
Cost capitalized subsequent to acquisition | 843 | |||
Gross Amount at which carried at close of period | 77,023 | |||
Accumulated Depreciation | $ (3,013) | |||
Date of Construction | 1990 | |||
Date Acquired | Jan. 28, 2021 | |||
Adair off Addison II | Dallas, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 37,115 | |||
Initial cost to Company | 54,696 | |||
Cost capitalized subsequent to acquisition | 358 | |||
Gross Amount at which carried at close of period | 55,054 | |||
Accumulated Depreciation | $ (1,794) | |||
Date of Construction | 1979 | |||
Date Acquired | Jan. 28, 2021 | |||
1000 Spalding | Atlanta, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 35,035 | |||
Initial cost to Company | 52,867 | |||
Cost capitalized subsequent to acquisition | 290 | |||
Gross Amount at which carried at close of period | 53,157 | |||
Accumulated Depreciation | $ (1,658) | |||
Date of Construction | 1995 | |||
Date Acquired | Jan. 28, 2021 | |||
Montclair | Portland, OR | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 30,420 | |||
Initial cost to Company | 49,510 | |||
Cost capitalized subsequent to acquisition | 393 | |||
Gross Amount at which carried at close of period | 49,903 | |||
Accumulated Depreciation | $ (1,535) | |||
Date of Construction | 2004 | |||
Date Acquired | Jan. 28, 2021 | |||
Grand Reserve | Naperville, IL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 47,845 | |||
Initial cost to Company | 82,389 | |||
Cost capitalized subsequent to acquisition | 307 | |||
Gross Amount at which carried at close of period | 82,696 | |||
Accumulated Depreciation | $ (3,233) | |||
Date of Construction | 1991 | |||
Date Acquired | Jan. 28, 2021 | |||
Verdant | Boulder, CO | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 47,146 | |||
Initial cost to Company | 76,848 | |||
Cost capitalized subsequent to acquisition | 174 | |||
Gross Amount at which carried at close of period | 77,022 | |||
Accumulated Depreciation | $ (2,439) | |||
Date of Construction | 1997 | |||
Date Acquired | Jan. 28, 2021 | |||
Arcadia | Centennial, CO | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 56,810 | |||
Initial cost to Company | 88,800 | |||
Cost capitalized subsequent to acquisition | 498 | |||
Gross Amount at which carried at close of period | 89,298 | |||
Accumulated Depreciation | $ (2,758) | |||
Date of Construction | 1984 | |||
Date Acquired | Jan. 28, 2021 | |||
Ravina | Austin, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 24,740 | |||
Initial cost to Company | 84,400 | |||
Cost capitalized subsequent to acquisition | 243 | |||
Gross Amount at which carried at close of period | 84,643 | |||
Accumulated Depreciation | $ (2,994) | |||
Date of Construction | 2001 | |||
Date Acquired | Jan. 28, 2021 | |||
81 Fifty at West Hills | Portland, OR | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 58,500 | |||
Initial cost to Company | 95,088 | |||
Cost capitalized subsequent to acquisition | 488 | |||
Gross Amount at which carried at close of period | 95,576 | |||
Accumulated Depreciation | $ (2,966) | |||
Date of Construction | 1985 | |||
Date Acquired | Jan. 28, 2021 | |||
The Palmer at Las Colinas | Irving, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 58,515 | |||
Initial cost to Company | 86,703 | |||
Cost capitalized subsequent to acquisition | 1,032 | |||
Gross Amount at which carried at close of period | 87,735 | |||
Accumulated Depreciation | $ (2,804) | |||
Date of Construction | 1991 | |||
Date Acquired | Jan. 28, 2021 | |||
Windbrooke | Buffalo Grove, IL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 52,819 | |||
Cost capitalized subsequent to acquisition | 296 | |||
Gross Amount at which carried at close of period | 53,115 | |||
Accumulated Depreciation | $ (1,810) | |||
Date of Construction | 1986 | |||
Date Acquired | Jan. 28, 2021 | |||
Woods of Burnsville | Burnsville, MN | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 35,977 | |||
Initial cost to Company | 68,563 | |||
Cost capitalized subsequent to acquisition | 430 | |||
Gross Amount at which carried at close of period | 68,993 | |||
Accumulated Depreciation | $ (2,269) | |||
Date of Construction | 1984 | |||
Date Acquired | Jan. 28, 2021 | |||
Indigo Creek | Glensdale, AZ | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 38,472 | |||
Initial cost to Company | 75,290 | |||
Cost capitalized subsequent to acquisition | 327 | |||
Gross Amount at which carried at close of period | 75,617 | |||
Accumulated Depreciation | $ (2,536) | |||
Date of Construction | 1998 | |||
Date Acquired | Jan. 28, 2021 | |||
Martin's Point | Lombard, IL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 28,531 | |||
Initial cost to Company | 43,188 | |||
Cost capitalized subsequent to acquisition | 248 | |||
Gross Amount at which carried at close of period | 43,436 | |||
Accumulated Depreciation | $ (1,505) | |||
Date of Construction | 1989 | |||
Date Acquired | Jan. 28, 2021 | |||
Bay Club | Jacksonville, FL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Initial cost to Company | $ 34,713 | |||
Cost capitalized subsequent to acquisition | 250 | |||
Gross Amount at which carried at close of period | 34,963 | |||
Accumulated Depreciation | $ (1,136) | |||
Date of Construction | 1990 | |||
Date Acquired | Jan. 28, 2021 | |||
Tramore Village | Austell, GA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 32,090 | |||
Initial cost to Company | 51,788 | |||
Cost capitalized subsequent to acquisition | 164 | |||
Gross Amount at which carried at close of period | 51,952 | |||
Accumulated Depreciation | $ (1,734) | |||
Date of Construction | 1999 | |||
Date Acquired | Jan. 28, 2021 | |||
Matthews Reserve | Matthews, NC | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 23,758 | |||
Initial cost to Company | 41,071 | |||
Cost capitalized subsequent to acquisition | 379 | |||
Gross Amount at which carried at close of period | 41,450 | |||
Accumulated Depreciation | $ (1,394) | |||
Date of Construction | 1998 | |||
Date Acquired | Jan. 28, 2021 | |||
Winthrop West | Riverview, FL | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 21,704 | |||
Initial cost to Company | 33,790 | |||
Cost capitalized subsequent to acquisition | 320 | |||
Gross Amount at which carried at close of period | 34,110 | |||
Accumulated Depreciation | $ (1,331) | |||
Date of Construction | 1990 | |||
Date Acquired | Jan. 28, 2021 | |||
Wimbledon Oaks | Arlington, TX | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 18,410 | |||
Initial cost to Company | 29,023 | |||
Cost capitalized subsequent to acquisition | 200 | |||
Gross Amount at which carried at close of period | 29,223 | |||
Accumulated Depreciation | $ (999) | |||
Date of Construction | 1986 | |||
Date Acquired | Jan. 28, 2021 | |||
The Summit | Alexandria, VA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 27,580 | |||
Initial cost to Company | 37,748 | |||
Cost capitalized subsequent to acquisition | 251 | |||
Gross Amount at which carried at close of period | 37,999 | |||
Accumulated Depreciation | $ (852) | |||
Date of Construction | 1976 | |||
Date Acquired | Jan. 28, 2021 |
Schedule III Real Estate and _3
Schedule III Real Estate and Accumulated Depreciation - Reconciliations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in real estate: | |||
Balance at beginning of the year | $ 1,173,930 | $ 1,163,727 | $ 1,212,720 |
Mergers | 1,296,686 | ||
Improvements, etc. | 28,424 | 11,297 | 14,423 |
Dispositions during the year | (143,422) | (1,094) | (63,416) |
Balance at end of year | 2,355,618 | 1,173,930 | 1,163,727 |
Accumulated Depreciation: | |||
Balance at beginning of year | (275,955) | (225,583) | (194,777) |
Sales | 32,221 | 0 | 22,075 |
Depreciation | (88,394) | (51,411) | (53,802) |
Disposals | 2,733 | 1,039 | 921 |
Balance at end of year | $ (329,395) | $ (275,955) | $ (225,583) |