Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 23, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Resource Real Estate Opportunity REIT II, Inc. | ||
Entity Central Index Key | 1,559,484 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 59,428,703 | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Rental properties, net | $ 754,588,000 | $ 388,157,000 |
Identified intangible assets, net | 2,689,000 | 3,882,000 |
Total investments | 757,277,000 | 392,039,000 |
Cash | 104,889,000 | 180,826,000 |
Restricted cash | 6,620,000 | 3,901,000 |
Tenant receivables | 68,000 | 17,000 |
Due from related parties | 604,000 | 363,000 |
Subscriptions receivable | 0 | 7,614,000 |
Prepaid expenses and other assets | 1,852,000 | 2,260,000 |
Deferred offering costs | 0 | 1,937,000 |
Total assets | 871,310,000 | 588,957,000 |
Liabilities: | ||
Mortgage notes payable, net | 455,361,000 | 152,917,000 |
Accounts payable and accrued expenses | 11,997,000 | 5,942,000 |
Due to related parties | 2,648,000 | 6,035,000 |
Tenant prepayments | 546,000 | 314,000 |
Security deposits | 1,097,000 | 572,000 |
Distribution payable | 8,769,000 | 2,778,000 |
Derivative liability | 0 | 127,000 |
Total liabilities | 480,418,000 | 168,685,000 |
Stockholders’ equity: | ||
Preferred stock (par value $.01, 10,000,000 shares authorized, none issued and outstanding) | 0 | 0 |
Common stock | 591,000 | 526,000 |
Additional paid-in capital | 520,746,000 | 465,449,000 |
Accumulated other comprehensive loss | (74,000) | (117,000) |
Accumulated deficit | (130,372,000) | (45,587,000) |
Total stockholders’ equity | 390,892,000 | 420,272,000 |
Total liabilities and stockholders’ equity | 871,310,000 | 588,957,000 |
Convertible stock | ||
Stockholders’ equity: | ||
Common stock | 1,000 | 1,000 |
Total stockholders’ equity | $ 1,000 | $ 1,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, shares issued (in shares) | 59,160,177 | 52,696,985 | |
Common stock, shares outstanding (in shares) | 59,160,177 | 52,696,985 | |
Convertible stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 50,000 | 50,000 | |
Common stock, shares issued (in shares) | 50,000 | 50,000 | |
Common stock, shares outstanding (in shares) | 50,000 | 50,000 | 50,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||
Rental income | $ 52,928,000 | $ 14,661,000 |
Total revenues | 52,928,000 | 14,661,000 |
Expenses: | ||
Rental operating | 25,467,000 | 8,235,000 |
Acquisition costs | 9,079,000 | 9,136,000 |
Management fees | 9,235,000 | 2,435,000 |
General and administrative | 9,272,000 | 3,690,000 |
Loss on disposal of assets | 2,516,000 | 1,680,000 |
Depreciation and amortization expense | 30,964,000 | 9,270,000 |
Total expenses | 86,533,000 | 34,446,000 |
Loss before other income (expense) | (33,605,000) | (19,785,000) |
Other income (expense): | ||
Interest income | 209,000 | 129,000 |
Insurance proceeds in excess of cost basis | 185,000 | 0 |
Interest expense | (10,950,000) | (2,516,000) |
Net loss | (44,161,000) | (22,172,000) |
Other comprehensive loss: | ||
Designated derivatives, fair value adjustment | 43,000 | (82,000) |
Comprehensive loss | $ (44,118,000) | $ (22,254,000) |
Weighted average common shares outstanding (in shares) | 57,834 | 24,230 |
Basic and diluted net loss per common share (in dollars per share) | $ (0.76) | $ (0.92) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Convertible stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Balance, beginning of period at Dec. 31, 2014 | $ 37,613 | $ 1 | $ 48 | $ 42,148 | $ (35) | $ (4,549) |
Balance, beginning of period (in shares) at Dec. 31, 2014 | 50,000 | 4,760,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock | 466,983 | $ 467 | 466,516 | |||
Issuance of stock (in shares) | 46,829,000 | |||||
Distributions of common stock | 0 | $ 3 | 2,265 | (2,268) | ||
Distributions of common stock (in shares) | 227,000 | |||||
Offering costs | (53,841) | (53,841) | ||||
Common stock issued through distribution reinvestment plan | 8,425 | $ 9 | 8,416 | |||
Common stock issued through dividend reinvestment plan (in shares) | 887,000 | |||||
Distributions declared | (16,598) | (16,598) | ||||
Common stock redemptions | (56) | $ (1) | (55) | |||
Advisor's initial investment, net of 5,000 share conversion | (6,000) | |||||
Designated derivatives, fair value adjustment | (82) | (82) | ||||
Net loss | (22,172) | (22,172) | ||||
Balance, end of period at Dec. 31, 2015 | $ 420,272 | $ 1 | $ 526 | 465,449 | (117) | (45,587) |
Balance, beginning of period (in shares) at Dec. 31, 2015 | 52,696,985 | 50,000 | 52,697,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of stock | $ 42,466 | $ 43 | 42,423 | |||
Issuance of stock (in shares) | 4,259,000 | |||||
Distributions of common stock | (20,608) | |||||
Offering costs | (6,263) | (6,263) | ||||
Common stock issued through distribution reinvestment plan | 20,608 | $ 24 | 20,584 | |||
Common stock issued through dividend reinvestment plan (in shares) | 2,371,000 | |||||
Distributions declared | (40,624) | (40,624) | ||||
Common stock redemptions | (1,449) | $ (2) | (1,447) | |||
Advisor's initial investment, net of 5,000 share conversion | (167,000) | |||||
Designated derivatives, fair value adjustment | 43 | 43 | ||||
Net loss | (44,161) | (44,161) | ||||
Balance, end of period at Dec. 31, 2016 | $ 390,892 | $ 1 | $ 591 | $ 520,746 | $ (74) | $ (130,372) |
Balance, beginning of period (in shares) at Dec. 31, 2016 | 59,160,177 | 50,000 | 59,160,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (44,161,000) | $ (22,172,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Loss on disposal of assets | 2,516,000 | 1,680,000 |
Depreciation and amortization | 30,964,000 | 9,270,000 |
Amortization of deferred financing costs | 737,000 | 294,000 |
Amortization of mortgage premiums | (121,000) | (51,000) |
Change in fair value of interest rate swap | (170,000) | 127,000 |
Changes in operating assets and liabilities: | ||
Restricted cash | 1,301,000 | 1,769,000 |
Tenant receivables | (51,000) | (12,000) |
Due from related parties | (241,000) | (329,000) |
Prepaid expenses and other assets | 2,479,000 | (916,000) |
Due to related parties | (1,450,000) | 2,166,000 |
Accounts payable and accrued expenses | 4,657,000 | 3,705,000 |
Tenant prepayments | 173,000 | 257,000 |
Security deposits | (57,000) | 10,000 |
Net cash (used in) provided by operating activities | (6,026,000) | (7,740,000) |
Cash flows from investing activities | ||
Property acquisitions | (339,080,000) | (315,453,000) |
Capital expenditures | (31,334,000) | (9,359,000) |
Restricted cash - capital reserves | (676,000) | 0 |
Net cash (used in) provided by investing activities | (371,090,000) | (324,812,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of redemptions | 48,632,000 | 463,135,000 |
Payment of deferred financing costs | (3,908,000) | (2,180,000) |
Increase in borrowings | 278,627,000 | 102,300,000 |
Repayments on borrowings | (1,657,000) | (7,593,000) |
Purchase of interest rate caps | (227,000) | (110,000) |
Distributions paid on common stock | (14,025,000) | (5,654,000) |
Offering costs | (6,263,000) | (52,301,000) |
Net cash (used in) provided by financing activities | 301,179,000 | 497,597,000 |
Net (decrease) increase in cash | (75,937,000) | 165,045,000 |
Cash at beginning of period | 180,826,000 | 15,781,000 |
Cash at end of period | $ 104,889,000 | $ 180,826,000 |
Nature of Business and Operatio
Nature of Business and Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Operations | NOTE 1 - NATURE OF BUSINESS AND OPERATIONS Resource Real Estate Opportunity REIT II, Inc. (the “Company”) was organized in Maryland on September 28, 2012 . The Company offered up to 100,000,000 shares of common stock in its primary initial public offering for $10 per share, with volume discounts available to investors who purchased $1.0 million or more of shares through the same participating broker-dealer. Discounts were also available for other categories of investors. The Company continues to offer up to 10,000,000 shares pursuant to the Company’s distribution reinvestment plan at a purchase price equal to $8.65 per share ( $8.56 per share prior to March 31, 2017). The Company has adopted a fiscal year ending December 31. On February 6, 2014 , the Securities and Exchange Commission (the “SEC”) declared effective the Company's Registration Statement on Form S-11, as amended (Commission File No. 333-184476) (the “Registration Statement”), relating to the offering of up to 110,000,000 shares of the Company’s common stock, including shares offered pursuant to the Company's distribution reinvestment plan. The primary portion of the offering closed on February 10, 2016 . Resource Real Estate Opportunity Advisor II, LLC (the "Advisor”) is a wholly owned subsidiary of Resource Real Estate, Inc. (the "Sponsor") and an indirect wholly owned subsidiary of Resource America, Inc. (“RAI”), operating in the real estate, financial fund management and commercial finance sectors. The Advisor acts as the Company's external advisor and manages the Company's day-to-day operations and its portfolio of real estate investments and provides asset-management, marketing, investor relations and other administrative services on the Company's behalf, all subject to the supervision of the Company's Board of Directors. On October 9, 2012 , the Advisor contributed $200,000 to the Company in exchange for 20,000 shares of common stock. On December 20, 2013 , the Advisor received 50,000 shares of convertible stock in exchange for 5,000 shares of the Company’s common stock. The Advisor purchased an additional 117,778 shares of common stock in 2016 for $1.1 million . On September 8, 2016, RAI was acquired by C-III Capital Partners, LLC ("C-III"), a leading commercial real estate services company engaged in a broad range of activities. C-III controls our Advisor and Resource Real Estate Opportunity Manager II, LLC, the Company's property manager. C-III also controls all of the shares of the Company's common stock held by RAI and our Advisor. As of December 31, 2016 , a total of 59,160,177 shares, including shares purchased by the Advisor and shares issued through the distribution reinvestment plan, have been issued in connection with the Company's public offering resulting in gross offering proceeds of $584.1 million . As of December 31, 2016 , the Company had issued 3,280,313 shares for $29.2 million pursuant to its distribution reinvestment plan. The Company’s objective is to take advantage of the Sponsor's dedicated multifamily investing and lending platforms to invest in multifamily assets across the entire spectrum of investments in order to provide stockholders with growing cash flow and increasing asset values. The Company has acquired and may continue to acquire (i) underperforming multifamily rental properties which the Company will renovate and stabilize in order to increase rents, (ii) distressed real estate owned by financial institutions, usually as a result of foreclosure, and non-performing or distressed loans, including first- and second-priority mortgage loans and other loans which the Company will resolve, and (iii) performing loans, including first- and second-priority mortgage loans and other loans the Company originates or purchases either directly or with a co-investor or joint venture partner. The Company 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, commencing with its taxable year ended December 31, 2014. 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 taxable 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 at least 90% of its REIT taxable net income to its stockholders. The Company also intends to operate its business in a manner that will permit it to maintain its exemption from registration under the Investment Company Act of 1940, as amended. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 as follows: Subsidiary Apartment Complex Number of Units Property Location RRE Opportunity Holdings II, LLC N/A N/A N/A RRE Opportunity OP II, LP N/A N/A N/A RRE Bear Creek Holdings, LLC, or Bear Creek Adair off Addison 152 Dallas, TX RRE Oak Hill Holdings, LLC, or Oak Hill Overton Trails Apartment Homes 360 Fort Worth, TX RRE Buckhead Holdings, LLC, or Buckhead Uptown Buckhead 216 Atlanta, GA RRE Farrington Holdings, LLC, or Farrington Crosstown at Chapel Hill 411 Chapel Hill, NC RRE Mayfair Chateau Holdings, LLC, or Mayfair Chateau The Brookwood 274 Homewood, AL RRE Fairways of Bent Tree Holdings, LLC, or Fairways of Bent Tree Adair off Addison Apartment Homes 200 Dallas, TX RRE Montclair Terrace Holdings, LLC, or Montclair Holdings Montclair 188 Portland, OR RRE Spalding Crossing Holdings, LLC, or Spalding Crossing 1000 Spalding Crossing 252 Atlanta, GA RRE Grand Reserve Holdings, LLC, or Grand Reserve Grand Reserve 319 Naperville, IL RRE Canterwood Holdings, LLC, or Canterwood Verdant Apartment Homes 216 Boulder, CO RRE Fox Ridge Holdings, LLC, or Fox Ridge Arcadia Apartment Homes 300 Centennial, CO RRE Riverlodge Holdings, LLC, or Riverlodge Riverlodge 498 Austin, TX RRE Breckenridge Holdings, LLC, or Breckenridge Breckenridge 357 Portland, OR RRE Santa Rosa Holdings, LLC, or Santa Rosa Santa Rosa 476 Irving, TX RRE Windbrooke Holdings, LLC, or Windbrooke Crossing Windbrooke Crossing 236 Buffalo Grove, IL RRE Woods Holdings, LLC, or The Woods of Burnsville The Woods of Burnsville 400 Burnsville, MN N/A - Not Applicable 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, 2016 , the Company had $112.1 million of deposits at various banks, $105.2 million of which was greater than the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such deposits. Real Estate Investments The Company records acquired real estate at fair value. The Company considers the period of future benefit of an asset to determine its appropriate useful life. The Company's estimated useful lives of its assets by class are as follows: Buildings 27.5 years Building improvements 3.0 to 27.5 years Tenant improvements Expected useful life Lease intangibles Remaining term of related lease As four of the Company's multifamily properties are located in the Dallas-Fort Worth area, two properties are located in Portland, Oregon, two properties are located in the Atlanta area and two properties are located in the Denver area, the Company's portfolio is currently 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 When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for 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. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, 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 is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. The Company did not recognize any impairment charges during the year ended December 31, 2016 . Allocation of Purchase Price of Acquired Assets Upon the acquisition of real properties, the Company allocates the purchase price of properties 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. Fair value estimates are based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. In addition, the Company may obtain independent appraisal reports. The information in the appraisal reports, along with the aforementioned information available to the Company's management, is used in allocating the purchase price. The independent appraisers have no involvement in management's allocation decisions other than providing market information. 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 expected to be made using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered by management in its analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. 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 respective 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 do amortization periods for the intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles would be charged to expense in that period. 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. These estimates are subject to change until all information is finalized, which is generally within one year of the acquisition date. Revenue Recognition The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease and includes amounts expected to be received in later years in deferred rents. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period the related expenses are incurred. The specific timing of a sale is measured against various criteria related to the terms of the transaction and any continuing involvement associated with the property. If the criteria for profit recognition under the full-accrual method are not met, the Company defers the gain recognition and accounts for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery methods, as appropriate, until the appropriate criteria are met. The future minimum rental payments to be received from noncancelable operating leases are $33.1 million and $266,000 for the years ending December 31, 2017 and 2018, and none thereafter. Tenant Receivables The Company makes estimates of the collectability of its tenant receivables related to base rents, including straight-line rentals, expense reimbursements and other revenue or income. The Company specifically analyzes accounts receivable and historical bad debts, tenant creditworthiness, current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year . At December 31, 2016 and 2015 , there were allowances for uncollectible receivables of $5,009 and $194 , respectively. Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ended December 31, 2014. Accordingly, the Company will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to its stockholders, and provided it satisfies on a continuing basis, through actual investment and operating results, the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be 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 lost 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 (“TRSs”). In general, the Company’s TRS may hold assets and engage in activities that it 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, 2016 and 2015 , the Company had no TRSs. Earnings Per Share Basic earnings per share is calculated on the basis of weighted-average number of common shares outstanding during the year. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. None of the 50,000 shares of convertible stock (discussed in Note 11) are included in the diluted earnings per share calculation because the necessary conditions for conversion have not been satisfied as of December 31, 2016 . Accrued distributions as of December 31, 2016 , that could be potentially settled in the issuance of common stock, could be excluded from the calculation of earnings per share because the impact would be anti-dilutive. All common shares and per common share information in the financial statements were adjusted retroactively for the effect of one 0.83333% stock distribution issued on January 15, 2015 . Correction of an Immaterial Error During the second quarter ended June 30, 2016, the Company made an adjustment to correct an immaterial error related to the accrual of real estate taxes in connection with a property acquisition. As a result of this error, the Company increased accounts payable and accrued expenses and rental properties by $832,283 , respectively. The adjustment impacts the Consolidated Balance Sheet, Note 5- Rental Properties, net and Note 6 - Acquisitions as of December 31, 2015 . This correction had no impact on earnings or cash flows. Organization and Offering Costs The Company incurred organizational, accounting, and offering costs in pursuit of its financing. Organization and offering costs (other than selling commissions and dealer-manager fees) of the Company were initially paid by the Advisor on behalf of the Company. Organization costs were expensed as incurred and included all expenses incurred by the Company in connection with the formation of the Company, including but not limited to legal fees and other costs to incorporate the Company. Pursuant to the Amended and Restated Advisory Agreement between the Company and the Advisor dated January 9, 2014 (the “Advisory Agreement”), the Companywas obligated to reimburse the Advisor for organizational and offering costs it incurred on the Company's behalf, but only to the extent that such reimbursements would not cause organizational and offering expenses (other than selling commissions and the dealer manager fees) to exceed 2.5% of the gross offering proceeds raised in the offering, when recorded by the Company. The primary portion of the offering closed on February 10, 2016 , at which point total organizational and offering costs incurred did not exceed 2.5% of the gross offering proceeds raised in the offering. Through December 31, 2016 , the Company incurred $11.2 million of offering costs consisting of accounting, advertising, allocated payroll, due diligence, marketing, legal and similar costs. As of December 31, 2016 , the Advisor had paid $7.2 million of these costs on behalf of the Company. These costs were deferred and subsequently a portion of these costs was charged to equity upon the sale of each share of common stock sold under the public offering. As of December 31, 2016 , the Company had reimbursed all $7.2 million of offering costs to the Advisor. Adoption of New Accounting Standards In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items". The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendment will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. On January 1, 2016, the Company adopted ASU 2015-01 and the adoption had no impact on the Company's consolidated financial statements. In February 2015, FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis", which makes certain changes to both the variable interest model and the voting model, including changes to (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. ASU 2015-02 is effective for the Company beginning January 1, 2016. On January 1, 2016, the Company adopted ASU 2015-02 and the adoption had no impact on the Company's consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs", which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The Company applied the new guidance on a retrospective basis and adjusted the balance sheet of each individual period presented to reflect the period-specific effects of applying the new guidance. This guidance was effective and was adopted by the Company on January 1, 2016. Accordingly, the Company has reclassified $2.5 million of unamortized debt issuance costs at December 31, 2015 from assets to liabilities as a direct reduction of the related mortgage notes payable. In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments", which eliminates the requirement to retroactively revise comparative financial information for prior periods presented in financial statements due to changes in provisional amounts recorded for acquisitions in subsequent periods. Upon adoption, disclosure of the amounts recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date are required. ASU 2015-16 was effective and adopted by the Company on January 1, 2016 and the adoption had no impact on its consolidated financial statements. In August 2014, FASB issued ASU No. 2014-15, "Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." Under the new guidance, an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The adoption of the new requirements did not have an impact on the Company's consolidated financial statements. Accounting Standards Issued But Not Yet Effective In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which will replace most existing revenue recognition guidance in GAAP. The core principle of ASU No. 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU No. 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU No. 2014-09 will be effective for the Company beginning January 1, 2018, including interim periods in 2018, and allows for both retrospective and prospective methods of adoption. In accordance with the Company’s plan for the adoption of ASU 2014-09, the Company has identified revenue streams and is performing an in-depth review to identify the related performance obligations and to evaluate the impact on the Company’s consolidated financial statements and internal accounting processes and controls. As the majority of the Company’s revenues are derived from lease contracts, the Company does not expect that the adoption of ASU 2014-09 or related amendments and modifications issued by FASB will have a material impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, "Leases", which is intended to improve financial reporting about leasing transactions and requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-02 to have a significant impact on its consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15 "Classification of Certain Cash Receipts and Cash Payments", which addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. The guidance is effective for the Company as of January 1, 2018. Early application is permitted. The adoption of the new requirements is not expected to have a material impact on the reporting of the Company's consolidated cash flows. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | NOTE 3 - SUPPLEMENTAL CASH FLOW INFORMATION The following table presents supplemental cash flow information (in thousands): Years Ended December 31, 2016 2015 Non-cash financing and investing activities: Distributions on common stock declared but not yet paid $ 8,769 $ 2,778 Stock issued from distribution reinvestment plan 20,608 8,425 Stock distributions issued — 2,268 Deferred offering costs — 493 Due to related parties — 17 Rental property and other assets acquired through assumption of mortgage notes payable 28,704 22,189 Cash paid during the period for: Interest $ 9,082 $ 1,784 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 4 - RESTRICTED CASH Restricted cash represents escrow deposits with lenders to be used to pay real estate taxes, insurance, and capital improvement. A summary of the components of restricted cash follows (in thousands): December 31, December 31, Real estate taxes $ 3,252 $ 1,586 Insurance 671 293 Capital improvements 2,697 2,022 Total $ 6,620 $ 3,901 Unrestricted cash designated for capital expenditures $ 71,738 $ 45,171 |
Rental Properties, Net
Rental Properties, Net | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Rental Properties, Net | NOTE 5 - RENTAL PROPERTIES, NET The Company’s investments in rental properties consisted of the following (in thousands): December 31, December 31, 2015 Land $ 108,587 $ 66,487 Building and improvements 629,060 314,716 Furniture, fixtures and equipment 36,307 10,539 Construction in progress 7,641 1,710 781,595 393,452 Less: accumulated depreciation (27,007 ) (5,295 ) $ 754,588 $ 388,157 Depreciation expense for the years ended December 31, 2016 and 2015 was $21.9 million and $5.1 million , respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 6 - ACQUISITIONS As of December 31, 2016 , the Company owned 16 properties. In order to finalize the fair values of the acquired assets and liabilities, the Company obtained third-party appraisals. The Company has up to 12 months from the date of acquisition to finalize the valuation for each property. All valuations have been finalized as of December 31, 2016 . The table below summarizes these acquisitions and the respective fair values assigned (in thousands): Multifamily City and State Date of Contractual Purchase (1) Land Building and Furniture, Fixture and Equipment Intangible Assets Debt Assumed Other Fair Valued Adair off Addison Dallas, Texas 6/4/2014 $ 9,500 $ 1,889 $ 7,061 $ 199 $ 351 $ — $ (85 ) $ 9,415 Overton Trails Apartment Homes Fort Worth, Texas 12/19/2014 $ 47,000 $ 4,834 $ 40,486 $ 504 $ 1,176 $ — $ (60 ) $ 46,940 Uptown Buckhead Atlanta, Georgia 3/30/2015 $ 32,500 $ 6,464 $ 24,993 $ 399 $ 644 $ — $ (117 ) $ 32,383 Crosstown at Chapel Hill Chapel Hill, North Carolina 5/19/2015 $ 46,750 $ 7,098 $ 37,947 $ 608 $ 1,097 $ — $ (231 ) $ 46,519 The Brookwood Homewood, Alabama 8/21/2015 $ 30,050 $ 3,595 $ 25,997 $ 411 $ 766 $ (22,189 ) $ (148 ) $ 8,432 Adair off Addison Apartment Homes Dallas, Texas 8/27/2015 $ 21,250 $ 2,532 $ 17,831 $ 304 $ 583 $ — $ (229 ) $ 21,021 1000 Spalding Crossing Atlanta, Georgia 9/24/2015 $ 41,000 $ 5,030 $ 34,765 $ 399 $ 806 $ — $ (51 ) $ 40,949 Montclair Terrace Portland, Oregon 10/29/2015 $ 32,750 $ 3,545 $ 28,282 $ 304 $ 619 $ — $ (80 ) $ 32,670 Grand Reserve Naperville, Illinois 12/18/2015 $ 66,700 $ 12,132 $ 52,981 $ 1,097 $ 1,322 $ — $ (98 ) $ 67,435 Verdant Apartment Homes Boulder, Colorado 12/18/2015 $ 65,200 $ 19,527 $ 44,140 $ 514 $ 1,019 $ — $ (344 ) $ 64,856 Arcadia Apartment Homes Centennial, Colorado 1/22/2016 $ 60,250 $ 8,578 $ 49,990 $ 492 $ 1,191 $ — $ (126 ) $ 60,125 Riverlodge Austin, Texas 3/23/2016 $ 57,000 $ 6,776 $ 47,992 $ 698 $ 1,534 $ (28,765 ) $ (393 ) $ 27,842 Breckenridge Portland, Oregon 5/17/2016 $ 81,500 $ 9,642 $ 69,701 $ 812 $ 1,345 $ — $ (181 ) $ 81,319 Santa Rosa Irvine, Texas 6/28/2016 $ 70,000 $ 8,410 $ 59,326 $ 718 $ 1,546 $ — $ (616 ) $ 69,384 Windbrooke Crossing Buffalo Grove, Illinois 12/22/2016 $ 48,250 $ 4,634 $ 42,576 $ 608 $ 1,059 $ — $ (660 ) $ 48,217 The Woods at Burnsville Burnsville, Minnesota 12/23/2016 $ 51,000 $ 3,900 $ 45,053 $ 821 $ 1,225 $ — $ (84 ) $ 50,915 (1) Contractual purchase price excludes closing costs, acquisition expenses and other immaterial settlement date adjustments and pro-rations.. The table below summarizes the total revenues, net loss, and acquisition costs of the Company's 2016 acquisitions (in thousands): Year Ended Multifamily Community December 31, 2016 Arcadia Apartment Homes Total Revenues $ 4,595 Net Loss $ (1,867 ) Acquisition Costs $ 55 Acquisition Fee $ 1,371 Riverlodge Total Revenues $ 5,009 Net Loss $ (3,625 ) Acquisition Costs $ 194 Acquisition Fee $ 1,380 Breckenridge Total Revenues $ 3,407 Net Loss $ (3,060 ) Acquisition Costs $ 159 Acquisition Fee $ 1,798 Santa Rosa Total Revenues $ 3,388 Net Loss $ (1,585 ) Acquisition Costs $ 163 Acquisition Fee $ 1,627 Windbrooke Total Revenues $ 125 Net Loss $ (172 ) Acquisition Costs $ 126 Acquisition Fee $ 1,001 The Woods of Burnsville Total Revenues $ 146 Net Loss $ (129 ) Acquisition Costs $ 118 Acquisition Fee $ 1,046 |
Identified Intangible Assets, N
Identified Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets, Net | IDENTIFIED INTANGIBLE ASSETS, NET Identified intangible assets, net, consist of in-place rental leases. The gross value of acquired in-place leases totaled $16.3 million and $8.4 million as of December 31, 2016 and 2015, respectively, net of accumulated amortization of $13.6 million and $4.5 million , respectively . The weighted average remaining life of the rental leases is five months and four months as of December 31, 2016 and 2015 , respectively. For the years ended December 31, 2016 and 2015 , amo rtization expense was $9.1 million and $4.1 million , respectively. Expected amortization for the rental leases for the next 12 months is $2.7 million and none thereafter. |
Mortgage Notes Payable, Net
Mortgage Notes Payable, Net | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable, Net | MORTGAGE NOTES PAYABLE, NET The following table presents a summary of the Company's mortgage notes payable, net (in thousands): December 31, 2016 December 31, 2015 Collateral Outstanding borrowings Premium, net Deferred Financing Costs, net Carrying Value Outstanding borrowings Premium, net Deferred Financing Costs, net Carrying Value Overton Trails Apartment Homes $ 31,075 $ — $ (344 ) $ 30,731 $ 31,075 $ — $ (382 ) $ 30,693 Uptown Buckhead 20,200 — (284 ) 19,916 20,200 — (320 ) 19,880 Crosstown at Chapel Hill 32,000 — (373 ) 31,627 32,000 — (491 ) 31,509 The Brookwood - Key Bank 18,247 508 (239 ) 18,516 18,603 621 (293 ) 18,931 The Brookwood - Capital One 2,699 39 (41 ) 2,697 2,739 47 (50 ) 2,736 Adair off Addison and Adair off Addison Apartment Homes 25,500 — (464 ) 25,036 25,500 — (583 ) 24,917 1000 Spalding Crossing 24,600 — (289 ) 24,311 24,600 — (349 ) 24,251 Riverlodge 28,292 — (393 ) 27,899 — — — — Verdant Apartment Homes 37,300 — (345 ) 36,955 — — — — Arcadia Apartment Homes 40,200 — (379 ) 39,821 — — — — Grand Reserve 42,395 — (446 ) 41,949 — — — — Montclair Terrace 21,083 — (345 ) 20,738 — — — — Breckenridge 52,975 — (697 ) 52,278 — — — — Santa Rosa 45,700 — (643 ) 45,057 — — — — Windbrooke Crossing 38,320 — (490 ) 37,830 — — — — $ 460,586 $ 547 $ (5,772 ) $ 455,361 $ 154,717 $ 668 $ (2,468 ) $ 152,917 The following table presents additional information about the Company's mortgage notes payable, net (in thousands, except percentages): Maturity Margin over LIBOR Annual Interest Rate Average Average Overton Trails Apartment Homes 1/1/2025 1.91 % 2.68 % $ 118 $ 155 (1) (3) (5) Uptown Buckhead 7/1/2025 2.22 % 2.99 % $ 78 $ 70 (1) (3) (5) Crosstown at Chapel Hill 7/10/2020 1.70 % 2.47 % $ 95 $ — (1) (4) (5) The Brookwood - Key Bank 11/1/2021 — 4.73 % $ 104 $ 27 (2) (7) The Brookwood - Capital One 11/1/2021 — 5.40 % $ 16 $ — (2) (7) Adair off Addison and Adair off Addison Apartment Homes 1/1/2021 1.55 % 2.32 % $ 87 $ — (1) (3) (5) 1000 Spalding Crossing 1/1/2022 — 3.88 % $ 108 $ 39 (2) (5) Riverlodge 5/1/2022 — 3.76 % $ 144 $ 130 (2) (7) Verdant Apartment Homes 5/1/2023 — 3.89 % $ 154 $ 26 (2) (5) Arcadia Apartment Homes 5/1/2023 — 3.89 % $ 167 $ 19 (2) Grand Reserve 6/1/2023 2.57 % 3.34 % $ 185 $ 88 (1) (3) (6) Montclair Terrace 6/1/2023 2.45 % 3.22 % $ 93 $ 21 (1) (3) (7) Breckenridge 7/1/2023 2.36 % 3.13 % $ 213 $ 54 (1) (3) (5) Santa Rosa 9/1/2026 2.11 % 2.88 % $ 146 $ 98 (1) (3) (5) Windbrooke Crossing 1/1/2024 2.69 % 3.46 % $ 194 $ 70 (1) (3) (5) (1) Variable rate based on one-month LIBOR of 0.77167% (as of December 31, 2016) plus a fixed margin (2) Fixed rate (3) Variable rate hedged with interest rate cap cash flow hedge (4) Fixed rate interest swap associated with the variable rate debt (5) Monthly interest-only payment currently required (6) Monthly fixed principal plus interest payment required (7) Fixed monthly payment of principal and interest payment required On August 21, 2015, the Company recorded a fair value adjustment, which represented the fair value of the debt assumed over its principal amount in connection with The Brookwood Apartment Home acquisition. The fair value adjustment (premium)is amortized to interest expense over the term of the related mortgages loans using the effective interest method. As of December 31, 2016 , the net unamortized mortgage premium was $546,607 and was included as a component of mortgage loans payable in the accompanying consolidated balance sheets. At December 31, 2016 , the weighted average interest rate of all our outstanding indebtedness was 3.31% All mortgage notes are collateralized by a first or second mortgage lien on the assets of the respective property as named in the table above. 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. As of December 31, 2016 and 2015 , the Company had $6.6 million and $3.9 million of restricted cash related to escrow deposits held by mortgage lenders for real estate taxes, insurance and capital reserves (see Note 5). Annual principal payments on the mortgage notes payable for each of the next five years ending December 31, and thereafter, are as follows (in thousands): 2017 $ 3,778 2018 6,547 2019 8,398 2020 39,714 2021 50,927 Thereafter 351,222 $ 460,586 The mortgage notes payable are recourse only with respect to the properties that secure the notes, subject to certain limited standard exceptions, as defined in each mortgage note. The Company has guaranteed the mortgage notes by executing a guarantee with respect to the properties. These exceptions are referred to as “carveouts.” In general, carveouts relate to damages suffered by the lender for a borrower’s failure to pay rents, insurance or condemnation proceeds to lender, failure to pay water, sewer and other public assessments or charges, failure to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the Company to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loan if the borrower voluntarily files for bankruptcy or seeks reorganization, or if a related party of the borrower does so with respect to the subsidiary. The Company has also guaranteed the completion and payment of costs of completion of no less than $1.8 million for renovations at Uptown Buckhead by June 30, 2017 . For the Crosstown at Chapel Hill Mortgage Loan, beginning with the calendar quarter ending December 31, 2017, the property must maintain a certain level of debt service coverage. |
Deferred Financing Costs
Deferred Financing Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Financing Costs | Deferred financing costs incurred to obtain financing are amortized over the term of the related debt. As of December 31, 2016 and December 31, 2015 , accumulated amortization of deferred financing costs was $876,721 and $ 139,722 , respectively. Amortization of deferred financing costs for the next five years ending December 31, and thereafter, are as follows (in thousands): 2017 $ 1,011 2018 996 2019 979 2020 909 2021 728 Thereafter 1,150 $ 5,773 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the changes in accumulated other comprehensive loss for the year ended December 31, 2016 (in thousands): Net unrealized loss on derivatives Balance, January 1, 2015 $ (35 ) Designated derivatives, fair value adjustment (82 ) Balance, December 31, 2015 (117 ) Designated derivatives, fair value adjustment 43 Balance, December 31, 2016 $ (74 ) |
Certain Relationships And Relat
Certain Relationships And Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Certain Relationships And Related Party Transactions | NOTE 10 – CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS In the ordinary course of its business operations, the Company has ongoing relationships with several related parties. Relationship with RAI Self-insurance funds held in escrow . Substantially all of the receivables from related parties represent insurance deposits held in escrow funds held by Resource Real Estate, Inc. ("RRE") for self-insurance which, if unused, will be returned to the Company. The Company's properties participate in insurance pools with other properties directly and indirectly managed by RAI for both the property insurance and general liability. RRE holds the deposits in escrow to fund future insurance claims. The pool for property insurance covers losses up to $2.5 million and the pool for the general liability covers losses up to the first $50,000 of each general liability incident. Catastrophic insurance would cover losses in excess of the insurance pools up to $140.0 million and $51.0 million , respectively. 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. During the year ended December 31, 2016 , the Company paid $905,797 into the insurance pools. Internal audit fees. RAI performs internal audit services for the Company. Relationship with the Advisor Pursuant to the terms of the Advisory Agreement, the Advisor provides the Company with the services of its management team, including its officers, along with appropriate support personnel. The Advisor will be reimbursed for the Company’s allocable share of costs for Advisor personnel, including allocable personnel salaries and benefits. Each of the Company’s officers is an employee of the Sponsor or one of its affiliates. The Company does not have any employees. The Advisor is not obligated to dedicate any specific portion of its time or the time of its personnel to the Company’s business. The Advisor is at all times subject to the supervision and oversight of the Company’s Board of Directors and has only such functions and authority as the Company delegates to it. During the course of the offering, the Advisor provided offering-related services to the Company and advanced funds to the Company for both operating costs and organization and offering costs. These amounts were reimbursed to the Advisor from the proceeds from the offering. As of December 31, 2016 , the Advisor had paid costs on a cumulative basis on behalf of the Company of approximately $7.2 million . The Advisory Agreement has a one -year term and renews for an unlimited number of successive one -year terms upon the approval of the conflicts committee of the Company's Board of Directors. Under the Advisory Agreement, the Advisor receives fees and is reimbursed for its expenses as set forth below: Acquisition fees. The Advisor earns 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 Advisor earns a monthly asset management fee equal to one-twelfth of 1.0% of the cost of each asset, without deduction for depreciation, bad debts or other non-cash reserves. The asset management fee is based only on the portion of the costs or value attributable to the Company’s investment in an asset if the Company does not own all or a majority of an asset and does not manage or control the asset. Disposition fees. The Advisor earns a disposition fee in connection with of the sale of a property equal to the lesser of one-half of the aggregate brokerage commission paid, or if none is paid, 2.0% of the contract sales price. No properties were sold during the year s ended December 31, 2015 and 2016 and, therefore, no disposition fees were earned. Debt financing fees. The Advisor earns a debt financing fee equal to 0.5% of the amount available under any debt financing obtained for which it provided substantial services. Expense reimbursements. The Company also pays directly or reimburses the Advisor for all of the expenses paid or incurred by the Advisor or its affiliates on behalf of the Company or in connection with the services provided to the Company in relation to its public offering, including its distribution reinvestment plan offering. This included all organization and offering costs of up to 2.5% of gross offering proceeds. Reimbursements also include expenses the Advisor incurs in connection with providing services to the Company, including the Company’s allocable share of costs for Advisor personnel and overhead, out-of-pocket expenses incurred in connection with the selection and acquisition of properties or other real estate related debt investments, whether or not the Company ultimately acquires the investment. However, the Company will not reimburse the Advisor or its affiliates for employee costs in connection with services for which the Advisor earns acquisition or disposition fees. Relationship with Resource Real Estate Opportunity Manager II Resource Real Estate Opportunity Manager II, LLC (the “Manager”), an affiliate of the Advisor, manages real estate properties and real estate-related debt investments and coordinates the leasing of, and manages construction activities related to the Company’s real estate property pursuant to the terms of the management agreement with the Manager. Property management fees. The Manager earns a property management fee equal to 4.5% of actual gross cash receipts from the Company's properties, provided that for properties that are less than 75% occupied, the Manager receives a minimum fee for the first 12 months of ownership, for performing certain property management and leasing activities. Construction management fees. The Manager earns a construction management fee of 5.0% of actual aggregate costs to construct improvements, or to repair, rehab or reconstruct a property. Debt servicing fees. The Manager earns a debt servicing fee of 2.75% on payments received from loans held by the Company for investment. No debt servicing fees were earned during the years ended December 31, 2015 and 2016. Information technology fees and Operating Expense reimbursement. During the ordinary course of business, the Manager or other affiliates of RAI may pay certain shared information technology fees and operating expenses on behalf of the Company. Relationship with Resource Securities Resource Securities, Inc. (“Resource Securities”), an affiliate of the Advisor, served as the Company’s dealer-manager and was responsible for marketing the Company’s shares during the primary portion of its public offering. Pursuant to the terms of the dealer-manager agreement with Resource Securities, the Company paid Resource Securities a selling commission of up to 7% of gross primary offering proceeds and a dealer-manager fee of up to 3% of gross primary offering proceeds. Resource Securities reallowed all selling commissions earned and a portion of the dealer-manager fee as a marketing fee to participating broker-dealers. No selling commissions or dealer-manager fees are earned by Resource Securities in connection with sales under the distribution reinvestment plan. Relationship with Other Related Parties The Company utilizes the services of a printing company, Graphic Images, LLC (“Graphic Images”), the principal owner of which is the father of RAI’s Chief Financial Officer. The Company paid The Planning & Zoning Resource Company, an affiliate of C-III, $2,065 for zoning reports in relation to certain acquisitions. The amounts receivable/payable and the fees earned/expenses incurred by such related parties are summarized in the following tables (in thousands): December 31, December 31, Due from related parties: Resource Securities $ — $ 37 RAI - insurance pools 604 326 $ 604 $ 363 Due to related parties: Advisor Acquisition fees $ 1,022 $ 2,646 Asset management fees — 309 Organization and offering costs — 1,937 Operating expense reimbursements 1,078 115 Manager Property management fees 244 99 Operating expense reimbursements 304 218 Resource Securities Selling commissions and dealer-manager fees — 711 $ 2,648 $ 6,035 Graphic Images $ — $ 3 Years Ended December 31, 2016 2015 Fees earned / expenses incurred: Advisor Acquisition fees (1) $ 8,497 $ 7,479 Asset management fees (2) $ 6,892 $ 1,806 Debt financing fees (3) $ 1,537 $ 582 Organization and offering costs (4) $ 86 $ 4,107 Operating expense reimbursements (5) $ 4,130 $ 805 Manager Property management fees (2) $ 2,278 $ 613 Construction management fees (7) $ 1,371 $ 437 Operating expense reimbursements (8) $ 132 $ 61 Information technology fees (5) $ 166 $ 47 Resource Securities: Selling commissions and dealer-manager fees (6) $ 4,193 $ 45,454 Other Graphic Images (4) (5) $ 8 $ 460 The Planning & Zoning Resource Company (5) $ 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 Mortgage notes payable, net on the consolidated balance sheets. (4) Included in Deferred offering costs or Stockholders' Equity on the consolidated balance sheets. As of December 31, 2016 , all previously deferred offering costs have been reclassified to Stockholders' Equity. (5) Included in General and administrative on the consolidated statements of operations and comprehensive loss. (6) Included in Stockholders' equity on the consolidated balance sheets. (7) Included in Rental properties, net on the consolidated balance sheets. (8) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. Amount excludes the allocated payroll expenses described in Note 14 - Operating Expenses. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | EQUITY Preferred Stock The Company’s charter authorizes the Company to issue 10,000,000 shares of its $0.01 par value preferred stock. As of December 31, 2016 and 2015 , no shares of preferred stock were issued or outstanding. Convertible Stock As of December 31, 2016 , the Company had 50,000 shares of $0.01 par value convertible stock outstanding, which are owned by the Advisor. 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 its Advisor, 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) 25% 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 10% cumulative, non-compounded, annual return on the issue price of those outstanding shares as of the date of the event triggering the conversion, or (ii) 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 6% cumulative, non-compounded, annual return on the issue price of those outstanding shares as of the date of the event triggering the conversion, divided by (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. Common Stock As of December 31, 2016 , the Company had an aggregate of 59,160,177 shares of $0.01 par value common stock outstanding, including the Advisor's additional purchase of 117,778 shares of common stock for $1.1 million during 2016 , as follows (dollars in thousands): Shares Issued Gross Proceeds Shares issued through initial public offering 55,791,297 $ 556,197 Shares issued through stock distributions 246,365 — Shares issued through distribution reinvestment plan 3,280,313 29,247 Advisor's initial investment, net of 5,000 share conversion 15,000 150 Total shares redeemed and retired (172,798 ) (1,497 ) 59,160,177 $ 584,097 Redemptions During the year ended December 31, 2016 , the Company redeemed shares as follows (in thousands, except per share data): Period Total Number (1) Average Price Paid per Share Cumulative Number (2) Approximate Dollar January 2016 — $— — (2) February 2016 — $— — (2) March 2016 8 $9.64 13 (2) April 2016 — $— — (2) May 2016 — $— — (2) June 2016 48 $8.48 61 (2) July 2016 — $— — (2) August 2016 — $— — (2) September 2016 — $— — (2) October 2016 54 $8.40 116 (2) November 2016 — $— — (2) December 2016 57 $8.75 173 (2) (1) All purchases of equity securities by the Company in the year ended December 31, 2016 were made pursuant to the Company's share redemption program. (2) The Company currently limits the dollar value and number of shares that may be repurchased under the program, as discussed below. All redemption requests tendered were honored during the year ended December 31, 2016 . The Company will not redeem in excess of 5% of the weighted-average number of shares outstanding during the 12 month period immediately prior to the effective date of redemption. Generally, the cash available for redemption will be limited to proceeds from the distribution reinvestment plan plus, if the Company had positive operating cash flow from the previous fiscal year, 1% of all operating cash flow from the previous fiscal year. These limitations apply to all redemptions, including redemptions sought upon a stockholder’s death, qualifying disability or confinement to a long-term care facility. The Company's board of directors, in its sole discretion, may suspend, terminate or amend the Company's share redemption program without stockholder approval upon 30 days' notice if it determines that such suspension, termination or amendment is in the Company's best interest. The Company's board may also reduce the number of shares purchased under the share redemption program if it determines the funds otherwise available to fund the Company's share redemption program are needed for other purposes. These limitations apply to all redemptions, including redemptions sought upon a stockholder's death, qualifying disability or confinement to a long-term care facility. Distributions For the year ended December 31, 2016 , the Company paid aggregate distributions of $34.6 million , including $14.0 million of distributions paid in cash and $20.6 million of distributions reinvested in shares of common stock through the Company's distribution reinvestment plan, as follows (in thousands): Authorization Date Per Record Dates Distribution Date Distributions reinvested in shares of Common Stock Net Cash Distributions Total Aggregate Distributions December 17, 2015 $ 0.00164384 December 31, 2015 through January 28, 2016 January 29, 2016 $ 1,540 $ 1,039 2,579 December 17, 2015 0.00164384 January 29, 2016 through February 26, 2016 February 29, 2016 1,618 1,103 2,721 February 24, 2016 0.00164384 February 27, 2016 through March 30, 2016 March 31, 2016 1,843 1,263 3,106 March 29, 2016 0.00164384 March 31, 2016 through April 29, 2016 April 30, 2016 1,635 1,105 2,740 March 29, 2016 0.00164384 April 30, 2016 through May 30, 2016 May 31, 2016 1,640 1,106 2,746 March 29, 2016 0.00164384 May 31, 2016 through June 29, 2016 June 30, 2016 1,870 1,270 3,140 June 15, 2016 0.00164384 June 30, 2016 through July 28, 2016 July 31, 2016 1,652 1,115 2,767 June 15, 2016 0.00164384 July 29, 2016 through August 30, 2016 August 31, 2016 1,891 1,269 3,160 June 15, 2016 0.00164384 August 31, 2016 through September 29, 2016 September 30, 2016 1,725 1,158 2,883 September 30, 2016 0.00164384 September 30, 2016 through October 30, 2016 October 31, 2016 1,729 1,161 2,890 September 30, 2016 0.00164384 October 31, 2016 through November 29, 2016 November 30, 2016 1,769 1,225 2,994 September 30, 2016 0.00164384 November 30, 2016 through December 29, 2016 December 30, 2016 1,696 1,211 2,907 $ 20,608 $ 14,025 $ 34,633 On December 15, 2016 , the Company's Board of Directors approved distributions in an amount of $0.00164384 per share of common stock for stockholders of record each day in the period from December 30, 2016 through and including March 30, 2017 , payable on January 31, 2017 , February 28, 2017 and March 31, 2017 . The following is a reconciliation of total aggregate distributions paid to total distributions declared for the year ended December 31, 2016 (in thousands): Total aggregate distributions paid $ 34,633 Less: distribution payable at December 31, 2015 (2,778 ) Add: distribution payable at December 31, 2016 8,769 Total distributions declared $ 40,624 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures and Disclosures | FAIR VALUE MEASURES AND DISCLOSURES In analyzing the fair value of its investments accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The fair 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. The fair value of rental properties is usually estimated based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships, based in each case on their fair values. Derivatives (interest rate caps and swap) 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, 2016 Assets: Interest rate caps $ — $ 365 $ — $ 365 Cancelable Swap — 43 — 43 $ — $ 408 $ — $ 408 Liabilities: Cancelable swap $ — $ — $ — $ — $ — $ — $ — $ — Level 1 Level 2 Level 3 Total December 31, 2015 Assets: Interest rate caps $ — $ 52 $ — $ 52 $ — $ 52 $ — $ 52 Liabilities: Cancelable swap $ — $ (127 ) $ — $ (127 ) $ — $ (127 ) $ — $ (127 ) Interest rate caps are included in Prepaid expenses and other assets on the consolidated balance sheets. The cancelable swap is included in Prepaid expenses and other assets as of December 31, 2016 and in Derivative liabilities on the consolidated balance sheet as of December 31, 2015 . The outstanding balance and estimated fair value of the Company’s mortgage notes payable are as follows (in thousands): December 31, 2016 December 31, 2015 Outstanding Balance Estimated Fair Outstanding Balance Estimated Fair Mortgage notes payable $ 460,586 $ 449,977 $ 154,717 $ 157,068 The carrying amount of the mortgage notes payable presented is the outstanding borrowings excluding premium 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, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain 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 mortgage loans, 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. Interest Rate Caps 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 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, 2016 , such derivatives were used to hedge the variable cash flows, indexed to USD-London InterBank Offered Rate ("LIBOR"), associated with an existing variable-rate loan agreement. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2016 and 2015 , the Company recorded no hedge ineffectiveness in earnings. During the year ended December 31, 2015 , the Company accelerated the reclassification of amounts in other comprehensive income to earnings as a result of the hedged forecasted transactions becoming probable not to occur. The accelerated amounts were a loss of $19,009 . 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 $69,834 will be reclassified as an increase to interest expense. Cancelable swaps To manage its exposure to interest rate movements, the Company has also entered into a cancelable interest rate swap that was not designated as a hedging instrument. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements but do not meet the strict hedge accounting requirements. As of December 31, 2016 , the Company had the following outstanding interest rate derivatives (dollars in thousands): Interest Rate Derivative Number of Instruments Notional Maturity Dates Derivatives designated as hedging instruments: Interest rate caps 8 $ 280,000 January 1, 2018 through September 1, 2020 Derivatives not designated as hedging instruments: Cancelable swap 1 $ 32,000 July 28, 2020 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, 2016 and 2015 (in thousands): Asset Derivatives Liabilities Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Derivatives designated as hedging instruments: Interest rate caps $ 365 Interest rate caps $ 52 NA $ — NA $ — Derivatives not designated as hedging instruments: Cancelable swap $ 43 NA $ — Cancelable swap $ — NA $ (127 ) Interest rate caps are included in Prepaid expenses and other assets on the consolidated balance sheets. The cancelable swap is included in Prepaid expenses and other assets as of December 31, 2016 and in Derivative liability on the consolidated balance sheet as of December 31, 2015 . The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016 and 2015 (in thousands): Amount of Gain (Loss) Recognized in Income for the Years Ended Derivatives Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income December 31, 2016 December 31, 2015 Interest rate caps Interest expense $ 10 $ — Amount of Gain (Loss) Recognized in Income for the Years Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income December 31, 2016 December 31, 2015 Cancelable swap Interest expense $ 283 $ (359 ) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) for the Years Ended Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) for the Years Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Interest rate products $ 33 $ (96 ) Interest expense $ (10 ) $ — Credit-risk-related Contingent Features The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the company could also be declared in default on its derivative obligations. As of December 31, 2016 , the Company has not posted any collateral related to these agreements. |
Operating Expenses
Operating Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Operating Expenses | OPERATING EXPENSES As defined under the Company's charter, the Advisor must reimburse the Company the amount by which the aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of the average invested assets or 25% of net income, unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. “Average invested assets” means the average monthly book value of assets invested, directly or indirectly, in equity interests in and loans secured by real estate during the 12-month period before deducting depreciation, bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company, as determined under GAAP, that are in any way related to operations, including advisory fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and stock exchange listing of stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of assets; and (f) acquisition fees, acquisition expenses (including expenses relating to potential investments that do not close), disposition fees on the resale of property and other expenses connected with the acquisition, disposition and ownership of real estate interests, loans or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). Operating expenses for the four quarters ended December 31, 2016 did not exceed the charter imposed limitation. Allocated payroll associated with a portion of the compensation paid by the Advisor or its affiliates to the Company’s executive officers was included in general and administrative expenses in the consolidated statements of operations and comprehensive loss and was reimbursed to the Advisor during the years ended December 31, 2016 and 2015 . Allocated payroll expense from the Manager is included in rental operating expenses in the consolidated statements of operations and comprehensive loss. Allocated payroll for the years ended December 31, 2016 and 2015 was $971,516 and $319,284 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 31, 2017 , the Company entered into a $38.3 million secured mortgage loan with CBRE Capital Markets, Inc. (the "Woods at Burnsville Loan"), secured by The Woods at Burnsville. The Woods at Burnsville Loan, which matures on February 1, 2024 , bears interest at a floating rate of one-month LIBOR plus 2.13% . Monthly payments are initially interest only. Beginning with the March 2019 payment, monthly payments will include interest and principal, which based on current rates, amounts to approximately $159,200 per month. On March 28, 2017 , the Board of Directors approved the following distributions: daily accrual amount of $0.00164384 per shareof common stock for the period from March 31, 2017 through and including June 29, 2017 , payable on April 28, 2017 , May 31, 2017 and June 30, 2017 . The Company has evaluated subsequent events and determined that no events have occurred, other than those disclosed above, which would require an adjustment to the consolidated financial statements. |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2016 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SEC Schedule III Real Estate and Accumulated Depreciation Disclosure [Text Block] | Column A Column B Column C Column D Column E Column F Column G Column H Description Encumbrances Initial cost to Company Cost capitalized subsequent to acquisition Gross Amount at which carried at close of period Accumulated Depreciation Date of Construction Date Acquired Real estate owned: Residential — 9,149 2,825 11,973 (1,413 ) 1980 6/4/2014 Dallas, Texas Residential 31,075 45,824 3,990 49,814 (4,008 ) 1999 12/19/2014 Fort Worth, Texas Residential 20,200 31,856 3,906 35,762 (2,136 ) 1989 3/30/2015 Atlanta, Georgia Residential 32,000 45,653 3,676 49,329 (2,863 ) 1990 5/19/2015 Chapel Hill, North Carolina Residential 21,494 30,002 4,030 34,033 (1,650 ) 1968 8/21/2015 Homewood, Alabama Residential 25,500 20,667 2,254 22,920 (1,183 ) 1979 8/27/2015 Dallas, Texas Residential 24,600 40,194 2,450 42,645 (1,892 ) 1995 9/24/2015 Atlanta Georgia Residential 21,083 32,131 1,008 33,138 (1,393 ) 2004 10/29/2015 Portland, Oregon Residential 42,395 66,213 3,191 69,404 (2,391 ) 1991 12/18/2015 Naperville, Illinois Residential 37,300 64,181 2,162 66,343 (1,810 ) 1997 12/18/2015 Boulder, Colorado Residential 40,200 59,059 3,281 62,340 (1,851 ) 1984 1/22/2016 Centennial, Colorado Residential 28,292 55,466 1,875 57,341 (1,551 ) 2001 3/23/2016 Austin, Texas Column A Column B Column C Column D Column E Column F Column G Column H Description Encumbrances Initial cost to Company Cost capitalized subsequent to acquisition Gross Amount at which carried at close of period Accumulated Depreciation Date of Construction Date Acquired Residential 52,975 80,155 (323 ) 79,832 (1,636 ) 1985 5/17/2016 Portland, Oregon Residential 45,700 68,454 740 69,194 (1,231 ) 1991 6/28/2016 Irving, Texas Residential 38,320 47,817 (12 ) 47,805 1986 12/22/2016 Buffalo Grove, Illinois Residential — 49,775 (51 ) 49,723 1984 12/23/2016 Burnsville, Minnesota $ 461,133 $ 746,595 $ 35,001 $ 781,595 $ (27,007 ) Years Ended 2016 2015 (in thousands) Investments in real estate: Balance at beginning of the year $ 392,620 $ 54,883 Additions during the year: — — Acquisitions 361,558 330,059 Improvements, etc. 31,334 9,359 Dispositions during the year: (3,917 ) (1,680 ) Balance at end of year $ 781,595 $ 392,620 Accumulated Depreciation: Balance at beginning of year $ (5,295 ) $ 180 Depreciation (21,870 ) 5,120 Disposals 158 (4 ) Balance at the end of year $ (27,007 ) $ 5,295 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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 as follows: Subsidiary Apartment Complex Number of Units Property Location RRE Opportunity Holdings II, LLC N/A N/A N/A RRE Opportunity OP II, LP N/A N/A N/A RRE Bear Creek Holdings, LLC, or Bear Creek Adair off Addison 152 Dallas, TX RRE Oak Hill Holdings, LLC, or Oak Hill Overton Trails Apartment Homes 360 Fort Worth, TX RRE Buckhead Holdings, LLC, or Buckhead Uptown Buckhead 216 Atlanta, GA RRE Farrington Holdings, LLC, or Farrington Crosstown at Chapel Hill 411 Chapel Hill, NC RRE Mayfair Chateau Holdings, LLC, or Mayfair Chateau The Brookwood 274 Homewood, AL RRE Fairways of Bent Tree Holdings, LLC, or Fairways of Bent Tree Adair off Addison Apartment Homes 200 Dallas, TX RRE Montclair Terrace Holdings, LLC, or Montclair Holdings Montclair 188 Portland, OR RRE Spalding Crossing Holdings, LLC, or Spalding Crossing 1000 Spalding Crossing 252 Atlanta, GA RRE Grand Reserve Holdings, LLC, or Grand Reserve Grand Reserve 319 Naperville, IL RRE Canterwood Holdings, LLC, or Canterwood Verdant Apartment Homes 216 Boulder, CO RRE Fox Ridge Holdings, LLC, or Fox Ridge Arcadia Apartment Homes 300 Centennial, CO RRE Riverlodge Holdings, LLC, or Riverlodge Riverlodge 498 Austin, TX RRE Breckenridge Holdings, LLC, or Breckenridge Breckenridge 357 Portland, OR RRE Santa Rosa Holdings, LLC, or Santa Rosa Santa Rosa 476 Irving, TX RRE Windbrooke Holdings, LLC, or Windbrooke Crossing Windbrooke Crossing 236 Buffalo Grove, IL RRE Woods Holdings, LLC, or The Woods of Burnsville The Woods of Burnsville 400 Burnsville, MN N/A - Not Applicable 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, 2016 , the Company had $112.1 million of deposits at various banks, $105.2 million of which was greater than the insurance limit of the Federal Deposit Insurance Corporation. No losses have been experienced on such deposits. |
Real Estate Investments | As four of the Company's multifamily properties are located in the Dallas-Fort Worth area, two properties are located in Portland, Oregon, two properties are located in the Atlanta area and two properties are located in the Denver area, the Company's portfolio is currently 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. Real Estate Investments The Company records acquired real estate at fair value. The Company considers the period of future benefit of an asset to determine its appropriate useful life. |
Impairment of Long-Lived Assets | Impairment of Long Lived Assets When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for 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. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, 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 is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. The Company did not recognize any impairment charges during the year ended December 31, 2016 . |
Allocation of Purchase Price of Acquired Assets | Allocation of Purchase Price of Acquired Assets Upon the acquisition of real properties, the Company allocates the purchase price of properties 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. Fair value estimates are based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. In addition, the Company may obtain independent appraisal reports. The information in the appraisal reports, along with the aforementioned information available to the Company's management, is used in allocating the purchase price. The independent appraisers have no involvement in management's allocation decisions other than providing market information. 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 expected to be made using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered by management in its analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. 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 respective 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 do amortization periods for the intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles would be charged to expense in that period. 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. These estimates are subject to change until all information is finalized, which is generally within one year of the acquisition date. |
Revenue Recognition | Revenue Recognition The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease and includes amounts expected to be received in later years in deferred rents. The Company records property operating expense reimbursements due from tenants for common area maintenance, real estate taxes and other recoverable costs in the period the related expenses are incurred. The specific timing of a sale is measured against various criteria related to the terms of the transaction and any continuing involvement associated with the property. If the criteria for profit recognition under the full-accrual method are not met, the Company defers the gain recognition and accounts for the continued operations of the property by applying the percentage-of-completion, reduced profit, deposit, installment or cost recovery methods, as appropriate, until the appropriate criteria are met. |
Tenant Receivables | Tenant Receivables The Company makes estimates of the collectability of its tenant receivables related to base rents, including straight-line rentals, expense reimbursements and other revenue or income. The Company specifically analyzes accounts receivable and historical bad debts, tenant creditworthiness, current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, with respect to tenants in bankruptcy, the Company makes estimates of the expected recovery of pre-petition and post-petition claims in assessing the estimated collectability of the related receivable. In some cases, the ultimate resolution of these claims can exceed one year . |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ended December 31, 2014. Accordingly, the Company will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to its stockholders, and provided it satisfies on a continuing basis, through actual investment and operating results, the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be 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 lost 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 (“TRSs”). In general, the Company’s TRS may hold assets and engage in activities that it 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. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated on the basis of weighted-average number of common shares outstanding during the year. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. None of the 50,000 shares of convertible stock (discussed in Note 11) are included in the diluted earnings per share calculation because the necessary conditions for conversion have not been satisfied as of December 31, 2016 . |
Correction of an Immaterial Error | Correction of an Immaterial Error During the second quarter ended June 30, 2016, the Company made an adjustment to correct an immaterial error related to the accrual of real estate taxes in connection with a property acquisition. As a result of this error, the Company increased accounts payable and accrued expenses and rental properties by $832,283 , respectively. The adjustment impacts the Consolidated Balance Sheet, Note 5- Rental Properties, net and Note 6 - Acquisitions as of December 31, 2015 . This correction had no impact on earnings or cash flows. |
Organization and Offering Costs | Organization and Offering Costs The Company incurred organizational, accounting, and offering costs in pursuit of its financing. Organization and offering costs (other than selling commissions and dealer-manager fees) of the Company were initially paid by the Advisor on behalf of the Company. Organization costs were expensed as incurred and included all expenses incurred by the Company in connection with the formation of the Company, including but not limited to legal fees and other costs to incorporate the Company. Pursuant to the Amended and Restated Advisory Agreement between the Company and the Advisor dated January 9, 2014 (the “Advisory Agreement”), the Companywas obligated to reimburse the Advisor for organizational and offering costs it incurred on the Company's behalf, but only to the extent that such reimbursements would not cause organizational and offering expenses (other than selling commissions and the dealer manager fees) to exceed 2.5% of the gross offering proceeds raised in the offering, when recorded by the Company. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items". The amendments in ASU No. 2015-01 eliminate from GAAP the concept of extraordinary items. Although the amendment will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU No. 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. On January 1, 2016, the Company adopted ASU 2015-01 and the adoption had no impact on the Company's consolidated financial statements. In February 2015, FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis", which makes certain changes to both the variable interest model and the voting model, including changes to (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. ASU 2015-02 is effective for the Company beginning January 1, 2016. On January 1, 2016, the Company adopted ASU 2015-02 and the adoption had no impact on the Company's consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs", which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected. The Company applied the new guidance on a retrospective basis and adjusted the balance sheet of each individual period presented to reflect the period-specific effects of applying the new guidance. This guidance was effective and was adopted by the Company on January 1, 2016. Accordingly, the Company has reclassified $2.5 million of unamortized debt issuance costs at December 31, 2015 from assets to liabilities as a direct reduction of the related mortgage notes payable. In September 2015, FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments", which eliminates the requirement to retroactively revise comparative financial information for prior periods presented in financial statements due to changes in provisional amounts recorded for acquisitions in subsequent periods. Upon adoption, disclosure of the amounts recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized at the acquisition date are required. ASU 2015-16 was effective and adopted by the Company on January 1, 2016 and the adoption had no impact on its consolidated financial statements. In August 2014, FASB issued ASU No. 2014-15, "Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." Under the new guidance, an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The guidance is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. The adoption of the new requirements did not have an impact on the Company's consolidated financial statements. Accounting Standards Issued But Not Yet Effective In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which will replace most existing revenue recognition guidance in GAAP. The core principle of ASU No. 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU No. 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU No. 2014-09 will be effective for the Company beginning January 1, 2018, including interim periods in 2018, and allows for both retrospective and prospective methods of adoption. In accordance with the Company’s plan for the adoption of ASU 2014-09, the Company has identified revenue streams and is performing an in-depth review to identify the related performance obligations and to evaluate the impact on the Company’s consolidated financial statements and internal accounting processes and controls. As the majority of the Company’s revenues are derived from lease contracts, the Company does not expect that the adoption of ASU 2014-09 or related amendments and modifications issued by FASB will have a material impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, "Leases", which is intended to improve financial reporting about leasing transactions and requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-02 to have a significant impact on its consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15 "Classification of Certain Cash Receipts and Cash Payments", which addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. The guidance is effective for the Company as of January 1, 2018. Early application is permitted. The adoption of the new requirements is not expected to have a material impact on the reporting of the Company's consolidated cash flows. |
Fair value measurement | 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. The fair value of rental properties is usually estimated based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships, based in each case on their fair values. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Wholly-Owned Subsidiaries | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: Subsidiary Apartment Complex Number of Units Property Location RRE Opportunity Holdings II, LLC N/A N/A N/A RRE Opportunity OP II, LP N/A N/A N/A RRE Bear Creek Holdings, LLC, or Bear Creek Adair off Addison 152 Dallas, TX RRE Oak Hill Holdings, LLC, or Oak Hill Overton Trails Apartment Homes 360 Fort Worth, TX RRE Buckhead Holdings, LLC, or Buckhead Uptown Buckhead 216 Atlanta, GA RRE Farrington Holdings, LLC, or Farrington Crosstown at Chapel Hill 411 Chapel Hill, NC RRE Mayfair Chateau Holdings, LLC, or Mayfair Chateau The Brookwood 274 Homewood, AL RRE Fairways of Bent Tree Holdings, LLC, or Fairways of Bent Tree Adair off Addison Apartment Homes 200 Dallas, TX RRE Montclair Terrace Holdings, LLC, or Montclair Holdings Montclair 188 Portland, OR RRE Spalding Crossing Holdings, LLC, or Spalding Crossing 1000 Spalding Crossing 252 Atlanta, GA RRE Grand Reserve Holdings, LLC, or Grand Reserve Grand Reserve 319 Naperville, IL RRE Canterwood Holdings, LLC, or Canterwood Verdant Apartment Homes 216 Boulder, CO RRE Fox Ridge Holdings, LLC, or Fox Ridge Arcadia Apartment Homes 300 Centennial, CO RRE Riverlodge Holdings, LLC, or Riverlodge Riverlodge 498 Austin, TX RRE Breckenridge Holdings, LLC, or Breckenridge Breckenridge 357 Portland, OR RRE Santa Rosa Holdings, LLC, or Santa Rosa Santa Rosa 476 Irving, TX RRE Windbrooke Holdings, LLC, or Windbrooke Crossing Windbrooke Crossing 236 Buffalo Grove, IL RRE Woods Holdings, LLC, or The Woods of Burnsville The Woods of Burnsville 400 Burnsville, MN N/A - Not Applicable |
Real Estate Investments | The Company's estimated useful lives of its assets by class are as follows: Buildings 27.5 years Building improvements 3.0 to 27.5 years Tenant improvements Expected useful life Lease intangibles Remaining term of related lease |
Supplemental Cash Flow Inform26
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | The following table presents supplemental cash flow information (in thousands): Years Ended December 31, 2016 2015 Non-cash financing and investing activities: Distributions on common stock declared but not yet paid $ 8,769 $ 2,778 Stock issued from distribution reinvestment plan 20,608 8,425 Stock distributions issued — 2,268 Deferred offering costs — 493 Due to related parties — 17 Rental property and other assets acquired through assumption of mortgage notes payable 28,704 22,189 Cash paid during the period for: Interest $ 9,082 $ 1,784 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Components of Restricted Cash | A summary of the components of restricted cash follows (in thousands): December 31, December 31, Real estate taxes $ 3,252 $ 1,586 Insurance 671 293 Capital improvements 2,697 2,022 Total $ 6,620 $ 3,901 Unrestricted cash designated for capital expenditures $ 71,738 $ 45,171 |
Rental Properties, Net (Tables)
Rental Properties, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Schedule of Investments in Rental Properties | The Company’s investments in rental properties consisted of the following (in thousands): December 31, December 31, 2015 Land $ 108,587 $ 66,487 Building and improvements 629,060 314,716 Furniture, fixtures and equipment 36,307 10,539 Construction in progress 7,641 1,710 781,595 393,452 Less: accumulated depreciation (27,007 ) (5,295 ) $ 754,588 $ 388,157 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Acquisitions and Assigned Fair Values | The table below summarizes these acquisitions and the respective fair values assigned (in thousands): Multifamily City and State Date of Contractual Purchase (1) Land Building and Furniture, Fixture and Equipment Intangible Assets Debt Assumed Other Fair Valued Adair off Addison Dallas, Texas 6/4/2014 $ 9,500 $ 1,889 $ 7,061 $ 199 $ 351 $ — $ (85 ) $ 9,415 Overton Trails Apartment Homes Fort Worth, Texas 12/19/2014 $ 47,000 $ 4,834 $ 40,486 $ 504 $ 1,176 $ — $ (60 ) $ 46,940 Uptown Buckhead Atlanta, Georgia 3/30/2015 $ 32,500 $ 6,464 $ 24,993 $ 399 $ 644 $ — $ (117 ) $ 32,383 Crosstown at Chapel Hill Chapel Hill, North Carolina 5/19/2015 $ 46,750 $ 7,098 $ 37,947 $ 608 $ 1,097 $ — $ (231 ) $ 46,519 The Brookwood Homewood, Alabama 8/21/2015 $ 30,050 $ 3,595 $ 25,997 $ 411 $ 766 $ (22,189 ) $ (148 ) $ 8,432 Adair off Addison Apartment Homes Dallas, Texas 8/27/2015 $ 21,250 $ 2,532 $ 17,831 $ 304 $ 583 $ — $ (229 ) $ 21,021 1000 Spalding Crossing Atlanta, Georgia 9/24/2015 $ 41,000 $ 5,030 $ 34,765 $ 399 $ 806 $ — $ (51 ) $ 40,949 Montclair Terrace Portland, Oregon 10/29/2015 $ 32,750 $ 3,545 $ 28,282 $ 304 $ 619 $ — $ (80 ) $ 32,670 Grand Reserve Naperville, Illinois 12/18/2015 $ 66,700 $ 12,132 $ 52,981 $ 1,097 $ 1,322 $ — $ (98 ) $ 67,435 Verdant Apartment Homes Boulder, Colorado 12/18/2015 $ 65,200 $ 19,527 $ 44,140 $ 514 $ 1,019 $ — $ (344 ) $ 64,856 Arcadia Apartment Homes Centennial, Colorado 1/22/2016 $ 60,250 $ 8,578 $ 49,990 $ 492 $ 1,191 $ — $ (126 ) $ 60,125 Riverlodge Austin, Texas 3/23/2016 $ 57,000 $ 6,776 $ 47,992 $ 698 $ 1,534 $ (28,765 ) $ (393 ) $ 27,842 Breckenridge Portland, Oregon 5/17/2016 $ 81,500 $ 9,642 $ 69,701 $ 812 $ 1,345 $ — $ (181 ) $ 81,319 Santa Rosa Irvine, Texas 6/28/2016 $ 70,000 $ 8,410 $ 59,326 $ 718 $ 1,546 $ — $ (616 ) $ 69,384 Windbrooke Crossing Buffalo Grove, Illinois 12/22/2016 $ 48,250 $ 4,634 $ 42,576 $ 608 $ 1,059 $ — $ (660 ) $ 48,217 The Woods at Burnsville Burnsville, Minnesota 12/23/2016 $ 51,000 $ 3,900 $ 45,053 $ 821 $ 1,225 $ — $ (84 ) $ 50,915 (1) Contractual purchase price excludes closing costs, acquisition expenses and other immaterial settlement date adjustments and pro-rations.. |
Fair Value of Net Assets Acquired | The table below summarizes the total revenues, net loss, and acquisition costs of the Company's 2016 acquisitions (in thousands): Year Ended Multifamily Community December 31, 2016 Arcadia Apartment Homes Total Revenues $ 4,595 Net Loss $ (1,867 ) Acquisition Costs $ 55 Acquisition Fee $ 1,371 Riverlodge Total Revenues $ 5,009 Net Loss $ (3,625 ) Acquisition Costs $ 194 Acquisition Fee $ 1,380 Breckenridge Total Revenues $ 3,407 Net Loss $ (3,060 ) Acquisition Costs $ 159 Acquisition Fee $ 1,798 Santa Rosa Total Revenues $ 3,388 Net Loss $ (1,585 ) Acquisition Costs $ 163 Acquisition Fee $ 1,627 Windbrooke Total Revenues $ 125 Net Loss $ (172 ) Acquisition Costs $ 126 Acquisition Fee $ 1,001 The Woods of Burnsville Total Revenues $ 146 Net Loss $ (129 ) Acquisition Costs $ 118 Acquisition Fee $ 1,046 |
Mortgage Notes Payable, Net (Ta
Mortgage Notes Payable, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Mortgage Notes Payable | The following table presents a summary of the Company's mortgage notes payable, net (in thousands): December 31, 2016 December 31, 2015 Collateral Outstanding borrowings Premium, net Deferred Financing Costs, net Carrying Value Outstanding borrowings Premium, net Deferred Financing Costs, net Carrying Value Overton Trails Apartment Homes $ 31,075 $ — $ (344 ) $ 30,731 $ 31,075 $ — $ (382 ) $ 30,693 Uptown Buckhead 20,200 — (284 ) 19,916 20,200 — (320 ) 19,880 Crosstown at Chapel Hill 32,000 — (373 ) 31,627 32,000 — (491 ) 31,509 The Brookwood - Key Bank 18,247 508 (239 ) 18,516 18,603 621 (293 ) 18,931 The Brookwood - Capital One 2,699 39 (41 ) 2,697 2,739 47 (50 ) 2,736 Adair off Addison and Adair off Addison Apartment Homes 25,500 — (464 ) 25,036 25,500 — (583 ) 24,917 1000 Spalding Crossing 24,600 — (289 ) 24,311 24,600 — (349 ) 24,251 Riverlodge 28,292 — (393 ) 27,899 — — — — Verdant Apartment Homes 37,300 — (345 ) 36,955 — — — — Arcadia Apartment Homes 40,200 — (379 ) 39,821 — — — — Grand Reserve 42,395 — (446 ) 41,949 — — — — Montclair Terrace 21,083 — (345 ) 20,738 — — — — Breckenridge 52,975 — (697 ) 52,278 — — — — Santa Rosa 45,700 — (643 ) 45,057 — — — — Windbrooke Crossing 38,320 — (490 ) 37,830 — — — — $ 460,586 $ 547 $ (5,772 ) $ 455,361 $ 154,717 $ 668 $ (2,468 ) $ 152,917 The following table presents additional information about the Company's mortgage notes payable, net (in thousands, except percentages): Maturity Margin over LIBOR Annual Interest Rate Average Average Overton Trails Apartment Homes 1/1/2025 1.91 % 2.68 % $ 118 $ 155 (1) (3) (5) Uptown Buckhead 7/1/2025 2.22 % 2.99 % $ 78 $ 70 (1) (3) (5) Crosstown at Chapel Hill 7/10/2020 1.70 % 2.47 % $ 95 $ — (1) (4) (5) The Brookwood - Key Bank 11/1/2021 — 4.73 % $ 104 $ 27 (2) (7) The Brookwood - Capital One 11/1/2021 — 5.40 % $ 16 $ — (2) (7) Adair off Addison and Adair off Addison Apartment Homes 1/1/2021 1.55 % 2.32 % $ 87 $ — (1) (3) (5) 1000 Spalding Crossing 1/1/2022 — 3.88 % $ 108 $ 39 (2) (5) Riverlodge 5/1/2022 — 3.76 % $ 144 $ 130 (2) (7) Verdant Apartment Homes 5/1/2023 — 3.89 % $ 154 $ 26 (2) (5) Arcadia Apartment Homes 5/1/2023 — 3.89 % $ 167 $ 19 (2) Grand Reserve 6/1/2023 2.57 % 3.34 % $ 185 $ 88 (1) (3) (6) Montclair Terrace 6/1/2023 2.45 % 3.22 % $ 93 $ 21 (1) (3) (7) Breckenridge 7/1/2023 2.36 % 3.13 % $ 213 $ 54 (1) (3) (5) Santa Rosa 9/1/2026 2.11 % 2.88 % $ 146 $ 98 (1) (3) (5) Windbrooke Crossing 1/1/2024 2.69 % 3.46 % $ 194 $ 70 (1) (3) (5) (1) Variable rate based on one-month LIBOR of 0.77167% (as of December 31, 2016) plus a fixed margin (2) Fixed rate (3) Variable rate hedged with interest rate cap cash flow hedge (4) Fixed rate interest swap associated with the variable rate debt (5) Monthly interest-only payment currently required (6) Monthly fixed principal plus interest payment required (7) Fixed monthly payment of principal and interest payment required |
Annual Principal Payments on Mortgage Notes Payable for Next Five Years | Annual principal payments on the mortgage notes payable for each of the next five years ending December 31, and thereafter, are as follows (in thousands): 2017 $ 3,778 2018 6,547 2019 8,398 2020 39,714 2021 50,927 Thereafter 351,222 $ 460,586 |
Deferred Financing Costs (Table
Deferred Financing Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Financing Costs | Amortization of deferred financing costs for the next five years ending December 31, and thereafter, are as follows (in thousands): 2017 $ 1,011 2018 996 2019 979 2020 909 2021 728 Thereafter 1,150 $ 5,773 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in accumulated other comprehensive loss for the year ended December 31, 2016 (in thousands): Net unrealized loss on derivatives Balance, January 1, 2015 $ (35 ) Designated derivatives, fair value adjustment (82 ) Balance, December 31, 2015 (117 ) Designated derivatives, fair value adjustment 43 Balance, December 31, 2016 $ (74 ) |
Certain Relationships And Rel33
Certain Relationships And Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Fees Earned/Expenses Incurred and Amounts Payable to Related Parties | The amounts receivable/payable and the fees earned/expenses incurred by such related parties are summarized in the following tables (in thousands): December 31, December 31, Due from related parties: Resource Securities $ — $ 37 RAI - insurance pools 604 326 $ 604 $ 363 Due to related parties: Advisor Acquisition fees $ 1,022 $ 2,646 Asset management fees — 309 Organization and offering costs — 1,937 Operating expense reimbursements 1,078 115 Manager Property management fees 244 99 Operating expense reimbursements 304 218 Resource Securities Selling commissions and dealer-manager fees — 711 $ 2,648 $ 6,035 Graphic Images $ — $ 3 Years Ended December 31, 2016 2015 Fees earned / expenses incurred: Advisor Acquisition fees (1) $ 8,497 $ 7,479 Asset management fees (2) $ 6,892 $ 1,806 Debt financing fees (3) $ 1,537 $ 582 Organization and offering costs (4) $ 86 $ 4,107 Operating expense reimbursements (5) $ 4,130 $ 805 Manager Property management fees (2) $ 2,278 $ 613 Construction management fees (7) $ 1,371 $ 437 Operating expense reimbursements (8) $ 132 $ 61 Information technology fees (5) $ 166 $ 47 Resource Securities: Selling commissions and dealer-manager fees (6) $ 4,193 $ 45,454 Other Graphic Images (4) (5) $ 8 $ 460 The Planning & Zoning Resource Company (5) $ 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 Mortgage notes payable, net on the consolidated balance sheets. (4) Included in Deferred offering costs or Stockholders' Equity on the consolidated balance sheets. As of December 31, 2016 , all previously deferred offering costs have been reclassified to Stockholders' Equity. (5) Included in General and administrative on the consolidated statements of operations and comprehensive loss. (6) Included in Stockholders' equity on the consolidated balance sheets. (7) Included in Rental properties, net on the consolidated balance sheets. (8) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. Amount excludes the allocated payroll expenses described in Note 14 - Operating Expenses. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Common Stock | During the year ended December 31, 2016 , the Company redeemed shares as follows (in thousands, except per share data): Period Total Number (1) Average Price Paid per Share Cumulative Number (2) Approximate Dollar January 2016 — $— — (2) February 2016 — $— — (2) March 2016 8 $9.64 13 (2) April 2016 — $— — (2) May 2016 — $— — (2) June 2016 48 $8.48 61 (2) July 2016 — $— — (2) August 2016 — $— — (2) September 2016 — $— — (2) October 2016 54 $8.40 116 (2) November 2016 — $— — (2) December 2016 57 $8.75 173 (2) (1) All purchases of equity securities by the Company in the year ended December 31, 2016 were made pursuant to the Company's share redemption program. (2) The Company currently limits the dollar value and number of shares that may be repurchased under the program, as discussed below. As of December 31, 2016 , the Company had an aggregate of 59,160,177 shares of $0.01 par value common stock outstanding, including the Advisor's additional purchase of 117,778 shares of common stock for $1.1 million during 2016 , as follows (dollars in thousands): Shares Issued Gross Proceeds Shares issued through initial public offering 55,791,297 $ 556,197 Shares issued through stock distributions 246,365 — Shares issued through distribution reinvestment plan 3,280,313 29,247 Advisor's initial investment, net of 5,000 share conversion 15,000 150 Total shares redeemed and retired (172,798 ) (1,497 ) 59,160,177 $ 584,097 |
Schedule of Dividends | For the year ended December 31, 2016 , the Company paid aggregate distributions of $34.6 million , including $14.0 million of distributions paid in cash and $20.6 million of distributions reinvested in shares of common stock through the Company's distribution reinvestment plan, as follows (in thousands): Authorization Date Per Record Dates Distribution Date Distributions reinvested in shares of Common Stock Net Cash Distributions Total Aggregate Distributions December 17, 2015 $ 0.00164384 December 31, 2015 through January 28, 2016 January 29, 2016 $ 1,540 $ 1,039 2,579 December 17, 2015 0.00164384 January 29, 2016 through February 26, 2016 February 29, 2016 1,618 1,103 2,721 February 24, 2016 0.00164384 February 27, 2016 through March 30, 2016 March 31, 2016 1,843 1,263 3,106 March 29, 2016 0.00164384 March 31, 2016 through April 29, 2016 April 30, 2016 1,635 1,105 2,740 March 29, 2016 0.00164384 April 30, 2016 through May 30, 2016 May 31, 2016 1,640 1,106 2,746 March 29, 2016 0.00164384 May 31, 2016 through June 29, 2016 June 30, 2016 1,870 1,270 3,140 June 15, 2016 0.00164384 June 30, 2016 through July 28, 2016 July 31, 2016 1,652 1,115 2,767 June 15, 2016 0.00164384 July 29, 2016 through August 30, 2016 August 31, 2016 1,891 1,269 3,160 June 15, 2016 0.00164384 August 31, 2016 through September 29, 2016 September 30, 2016 1,725 1,158 2,883 September 30, 2016 0.00164384 September 30, 2016 through October 30, 2016 October 31, 2016 1,729 1,161 2,890 September 30, 2016 0.00164384 October 31, 2016 through November 29, 2016 November 30, 2016 1,769 1,225 2,994 September 30, 2016 0.00164384 November 30, 2016 through December 29, 2016 December 30, 2016 1,696 1,211 2,907 $ 20,608 $ 14,025 $ 34,633 The following is a reconciliation of total aggregate distributions paid to total distributions declared for the year ended December 31, 2016 (in thousands): Total aggregate distributions paid $ 34,633 Less: distribution payable at December 31, 2015 (2,778 ) Add: distribution payable at December 31, 2016 8,769 Total distributions declared $ 40,624 |
Fair Value Measures and Discl35
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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, 2016 Assets: Interest rate caps $ — $ 365 $ — $ 365 Cancelable Swap — 43 — 43 $ — $ 408 $ — $ 408 Liabilities: Cancelable swap $ — $ — $ — $ — $ — $ — $ — $ — Level 1 Level 2 Level 3 Total December 31, 2015 Assets: Interest rate caps $ — $ 52 $ — $ 52 $ — $ 52 $ — $ 52 Liabilities: Cancelable swap $ — $ (127 ) $ — $ (127 ) $ — $ (127 ) $ — $ (127 ) |
Schedule of Carrying and Fair Values of Assets and Liabilities | The outstanding balance and estimated fair value of the Company’s mortgage notes payable are as follows (in thousands): December 31, 2016 December 31, 2015 Outstanding Balance Estimated Fair Outstanding Balance Estimated Fair Mortgage notes payable $ 460,586 $ 449,977 $ 154,717 $ 157,068 |
Derivatives and Hedging Activ36
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | As of December 31, 2016 , the Company had the following outstanding interest rate derivatives (dollars in thousands): Interest Rate Derivative Number of Instruments Notional Maturity Dates Derivatives designated as hedging instruments: Interest rate caps 8 $ 280,000 January 1, 2018 through September 1, 2020 Derivatives not designated as hedging instruments: Cancelable swap 1 $ 32,000 July 28, 2020 |
Schedule of Fair Value of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments on the consolidated balance sheets as of December 31, 2016 and 2015 (in thousands): Asset Derivatives Liabilities Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Derivatives designated as hedging instruments: Interest rate caps $ 365 Interest rate caps $ 52 NA $ — NA $ — Derivatives not designated as hedging instruments: Cancelable swap $ 43 NA $ — Cancelable swap $ — NA $ (127 ) |
Summary of Effects of Derivatives on Consolidated Statements of Operations and Comprehensive Loss | The table below presents the effect of the Company's derivative financial instruments on the consolidated statements of operations and comprehensive loss for the years ended December 31, 2016 and 2015 (in thousands): Amount of Gain (Loss) Recognized in Income for the Years Ended Derivatives Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income December 31, 2016 December 31, 2015 Interest rate caps Interest expense $ 10 $ — Amount of Gain (Loss) Recognized in Income for the Years Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income December 31, 2016 December 31, 2015 Cancelable swap Interest expense $ 283 $ (359 ) Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) for the Years Ended Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) for the Years Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Interest rate products $ 33 $ (96 ) Interest expense $ (10 ) $ — |
Nature of Business and Operat37
Nature of Business and Operations (Details) - USD ($) | Dec. 20, 2013 | Oct. 09, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Mar. 30, 2016 | Feb. 29, 2016 | Jan. 31, 2016 | Feb. 06, 2014 |
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |||||||||||||||
Common stock, initial public offering price (in dollars per share) | $ 8.75 | $ 0 | $ 8.40 | $ 0 | $ 0 | $ 0 | $ 8.48 | $ 0 | $ 0 | $ 9.64 | $ 0 | $ 0 | |||||
Issuance of stock | $ 42,466,000 | $ 466,983,000 | |||||||||||||||
Common stock, shares issued (in shares) | 59,160,177 | 52,696,985 | |||||||||||||||
Common stock, value, issued | $ 584,097,000 | ||||||||||||||||
Advisor | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Issuance of stock | $ 200,000 | $ 1,100,000 | |||||||||||||||
Issuance of stock (in shares) | 20,000 | 117,778 | |||||||||||||||
Common stock exchanged (in shares) | 5,000 | ||||||||||||||||
Convertible stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized (in shares) | 50,000 | 50,000 | |||||||||||||||
Common stock, shares issued (in shares) | 50,000 | 50,000 | |||||||||||||||
Convertible stock | Advisor | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Issuance of stock (in shares) | 50,000 | ||||||||||||||||
Offering pursuant to Registration Statement | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized (in shares) | 110,000,000 | ||||||||||||||||
Initial public offering | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized (in shares) | 100,000,000 | ||||||||||||||||
Common stock, initial public offering price (in dollars per share) | $ 10 | ||||||||||||||||
Minimum purchase to receive volume discount | $ 1,000,000 | ||||||||||||||||
Common stock, shares issued (in shares) | 55,791,297 | ||||||||||||||||
Common stock, value, issued | $ 556,197,000 | ||||||||||||||||
Distribution reinvestment plan | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares authorized (in shares) | 10,000,000 | ||||||||||||||||
Common stock, initial public offering price (in dollars per share) | $ 8.65 | $ 8.56 | |||||||||||||||
Common stock, shares issued (in shares) | 3,280,313 | ||||||||||||||||
Common stock, value, issued | $ 29,247,000 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Schedule of Wholly-Owned Subsidiaries (Details) | Dec. 31, 2016unit |
Adair off Addison | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 152 |
Overton Trails Apartment Homes | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 360 |
Uptown Buckhead | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 216 |
Crosstown at Chapel Hill | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 411 |
Mayfair Chateau | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 274 |
Adair off Addison Apartment Homes | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 200 |
Montclair Holdings | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 188 |
Spalding Crossing | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 252 |
Grand Reserve | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 319 |
Verdant Apartment Homes | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 216 |
Arcadia Apartment Homes | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 300 |
Riverlodge | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 498 |
Breckenridge | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 357 |
Santa Rosa | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 476 |
Windbrooke Crossing | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 236 |
The Woods of Burnsville | |
Real Estate Properties [Line Items] | |
Number of units in real estate property | 400 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)propertyshares | Dec. 31, 2015USD ($)shares | Jun. 30, 2016USD ($) | Jan. 15, 2015 | Dec. 31, 2014shares | |
Related Party Transaction [Line Items] | |||||
Deposits at various banks | $ 112,100,000 | ||||
Cash, uninsured amount | $ 105,200,000 | ||||
Number of properties owned | property | 16 | ||||
Impairment of real estate | $ 0 | $ 0 | |||
Acquisitions, period to finalize valuation | 1 year | ||||
Future minimum rental payments to be received from noncancelable operating leases, year ending June 30, 2015 | $ 33,100,000 | ||||
Future minimum rental payments to be received from noncancelable operating leases, year ending June 30, 2016 | 266,000 | ||||
Future minimum rental payments to be received thereafter | $ 0 | ||||
Resolution period of bankruptcy claims | 1 year | ||||
Allowance for uncollectible receivables | $ 5,009 | $ 194 | |||
Common stock, shares outstanding (in shares) | shares | 59,160,177 | 52,696,985 | |||
Stock distribution | 0.833% | ||||
Accounts payable and accrued expenses | $ 11,997,000 | $ 5,942,000 | |||
Rental properties, net | 754,588,000 | $ 388,157,000 | |||
Deferred offering costs to date | 11,200,000 | ||||
Debt issuance costs, net | $ 5,773,000 | ||||
Advisor | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding (in shares) | shares | 117,778 | ||||
Maximum reimbursement of organizational and offering costs, percent of offering proceeds | 2.50% | ||||
Advisor | Payment of public offering costs | |||||
Related Party Transaction [Line Items] | |||||
Deferred offering costs, reimbursed | $ 7,200,000 | ||||
Convertible stock | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding (in shares) | shares | 50,000 | 50,000 | 50,000 | ||
Convertible stock | Advisor | |||||
Related Party Transaction [Line Items] | |||||
Common stock, shares outstanding (in shares) | shares | 50,000 | ||||
Assets | Accounting Standards Update 2015-03 | |||||
Related Party Transaction [Line Items] | |||||
Debt issuance costs, net | $ (2,500,000) | ||||
Liability | Accounting Standards Update 2015-03 | |||||
Related Party Transaction [Line Items] | |||||
Debt issuance costs, net | $ 2,500,000 | ||||
Geographic Concentration Risk | Dallas-Fort Worth, Texas | |||||
Related Party Transaction [Line Items] | |||||
Number of properties owned | property | 4 | ||||
Geographic Concentration Risk | Portland, Oregon | |||||
Related Party Transaction [Line Items] | |||||
Number of properties owned | property | 2 | ||||
Geographic Concentration Risk | Atlanta, Georgia | |||||
Related Party Transaction [Line Items] | |||||
Number of properties owned | property | 2 | ||||
Restatement Adjustment | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable and accrued expenses | $ 832,283 | ||||
Rental properties, net | $ 832,283 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Real Estate Investments (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Building | |
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 | 3 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life | 27 years 6 months |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash financing and investing activities: | ||
Distributions on common stock declared but not yet paid | $ 8,769 | $ 2,778 |
Stock issued from distribution reinvestment plan | 20,608 | 8,425 |
Stock distributions issued | 0 | 2,268 |
Deferred offering costs | 0 | 493 |
Due to related parties | 0 | 17 |
Rental property and other assets acquired through assumption of mortgage notes payable | 28,704 | 22,189 |
Cash paid during the period for: | ||
Interest | $ 9,082 | $ 1,784 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 6,620 | $ 3,901 |
Unrestricted cash designated for capital expenditures | 71,738 | 45,171 |
Real estate taxes | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 3,252 | 1,586 |
Insurance | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 671 | 293 |
Capital improvements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 2,697 | $ 2,022 |
Rental Properties, Net (Details
Rental Properties, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Rental Properties, Net | ||
Land | $ 108,587 | $ 66,487 |
Building and improvements | 629,060 | 314,716 |
Furniture, fixtures and equipment | 36,307 | 10,539 |
Construction in progress | 7,641 | 1,710 |
Rental properties, gross | 781,595 | 393,452 |
Less: accumulated depreciation | (27,007) | (5,295) |
Rental properties, net | 754,588 | 388,157 |
Depreciation expense | $ 21,900 | $ 5,100 |
Acquisitions - Summary of Acqui
Acquisitions - Summary of Acquisitions (Details) $ in Thousands | Dec. 23, 2016USD ($) | Dec. 22, 2016USD ($) | Jun. 28, 2016USD ($) | May 17, 2016USD ($) | Mar. 23, 2016USD ($) | Jan. 22, 2016USD ($) | Dec. 18, 2015USD ($) | Oct. 29, 2015USD ($) | Sep. 24, 2015USD ($) | Aug. 27, 2015USD ($) | Aug. 21, 2015USD ($) | May 19, 2015USD ($) | Mar. 30, 2015USD ($) | Dec. 19, 2014USD ($) | Jun. 04, 2014USD ($) | Dec. 31, 2016property |
Business Acquisition [Line Items] | ||||||||||||||||
Number of properties owned | property | 16 | |||||||||||||||
Adair off Addison | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 9,500 | |||||||||||||||
Land | 1,889 | |||||||||||||||
Building and Improvements | 7,061 | |||||||||||||||
Furniture, Fixture and Equipment | 199 | |||||||||||||||
Intangible Assets | 351 | |||||||||||||||
Other Liabilities | (85) | |||||||||||||||
Fair value assigned | $ 9,415 | |||||||||||||||
Overton Trails Apartment Homes | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 47,000 | |||||||||||||||
Land | 4,834 | |||||||||||||||
Building and Improvements | 40,486 | |||||||||||||||
Furniture, Fixture and Equipment | 504 | |||||||||||||||
Intangible Assets | 1,176 | |||||||||||||||
Other Liabilities | (60) | |||||||||||||||
Fair value assigned | $ 46,940 | |||||||||||||||
Uptown Buckhead | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 32,500 | |||||||||||||||
Land | 6,464 | |||||||||||||||
Building and Improvements | 24,993 | |||||||||||||||
Furniture, Fixture and Equipment | 399 | |||||||||||||||
Intangible Assets | 644 | |||||||||||||||
Other Liabilities | (117) | |||||||||||||||
Fair value assigned | $ 32,383 | |||||||||||||||
Crosstown at Chapel Hill | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 46,750 | |||||||||||||||
Land | 7,098 | |||||||||||||||
Building and Improvements | 37,947 | |||||||||||||||
Furniture, Fixture and Equipment | 608 | |||||||||||||||
Intangible Assets | 1,097 | |||||||||||||||
Other Liabilities | (231) | |||||||||||||||
Fair value assigned | $ 46,519 | |||||||||||||||
The Brookwood | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 30,050 | |||||||||||||||
Land | 3,595 | |||||||||||||||
Building and Improvements | 25,997 | |||||||||||||||
Furniture, Fixture and Equipment | 411 | |||||||||||||||
Intangible Assets | 766 | |||||||||||||||
Debt Assumed | (22,189) | |||||||||||||||
Other Liabilities | (148) | |||||||||||||||
Fair value assigned | $ 8,432 | |||||||||||||||
Adair off Addison Apartment Homes | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 21,250 | |||||||||||||||
Land | 2,532 | |||||||||||||||
Building and Improvements | 17,831 | |||||||||||||||
Furniture, Fixture and Equipment | 304 | |||||||||||||||
Intangible Assets | 583 | |||||||||||||||
Other Liabilities | (229) | |||||||||||||||
Fair value assigned | $ 21,021 | |||||||||||||||
Spalding Crossing | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 41,000 | |||||||||||||||
Land | 5,030 | |||||||||||||||
Building and Improvements | 34,765 | |||||||||||||||
Furniture, Fixture and Equipment | 399 | |||||||||||||||
Intangible Assets | 806 | |||||||||||||||
Other Liabilities | (51) | |||||||||||||||
Fair value assigned | $ 40,949 | |||||||||||||||
Montclair Terrace | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 32,750 | |||||||||||||||
Land | 3,545 | |||||||||||||||
Building and Improvements | 28,282 | |||||||||||||||
Furniture, Fixture and Equipment | 304 | |||||||||||||||
Intangible Assets | 619 | |||||||||||||||
Other Liabilities | (80) | |||||||||||||||
Fair value assigned | $ 32,670 | |||||||||||||||
Grand Reserve | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 66,700 | |||||||||||||||
Land | 12,132 | |||||||||||||||
Building and Improvements | 52,981 | |||||||||||||||
Furniture, Fixture and Equipment | 1,097 | |||||||||||||||
Intangible Assets | 1,322 | |||||||||||||||
Other Liabilities | (98) | |||||||||||||||
Fair value assigned | 67,435 | |||||||||||||||
Verdant Apartment Homes | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | 65,200 | |||||||||||||||
Land | 19,527 | |||||||||||||||
Building and Improvements | 44,140 | |||||||||||||||
Furniture, Fixture and Equipment | 514 | |||||||||||||||
Intangible Assets | 1,019 | |||||||||||||||
Other Liabilities | (344) | |||||||||||||||
Fair value assigned | $ 64,856 | |||||||||||||||
Arcadia Apartment Homes | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 60,250 | |||||||||||||||
Land | 8,578 | |||||||||||||||
Building and Improvements | 49,990 | |||||||||||||||
Furniture, Fixture and Equipment | 492 | |||||||||||||||
Intangible Assets | 1,191 | |||||||||||||||
Other Liabilities | (126) | |||||||||||||||
Fair value assigned | $ 60,125 | |||||||||||||||
Riverlodge | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 57,000 | |||||||||||||||
Land | 6,776 | |||||||||||||||
Building and Improvements | 47,992 | |||||||||||||||
Furniture, Fixture and Equipment | 698 | |||||||||||||||
Intangible Assets | 1,534 | |||||||||||||||
Debt Assumed | (28,765) | |||||||||||||||
Other Liabilities | (393) | |||||||||||||||
Fair value assigned | $ 27,842 | |||||||||||||||
Breckenridge | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 81,500 | |||||||||||||||
Land | 9,642 | |||||||||||||||
Building and Improvements | 69,701 | |||||||||||||||
Furniture, Fixture and Equipment | 812 | |||||||||||||||
Intangible Assets | 1,345 | |||||||||||||||
Other Liabilities | (181) | |||||||||||||||
Fair value assigned | $ 81,319 | |||||||||||||||
Santa Rosa | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 70,000 | |||||||||||||||
Land | 8,410 | |||||||||||||||
Building and Improvements | 59,326 | |||||||||||||||
Furniture, Fixture and Equipment | 718 | |||||||||||||||
Intangible Assets | 1,546 | |||||||||||||||
Other Liabilities | (616) | |||||||||||||||
Fair value assigned | $ 69,384 | |||||||||||||||
Windbrooke | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 48,250 | |||||||||||||||
Land | 4,634 | |||||||||||||||
Building and Improvements | 42,576 | |||||||||||||||
Furniture, Fixture and Equipment | 608 | |||||||||||||||
Intangible Assets | 1,059 | |||||||||||||||
Other Liabilities | (660) | |||||||||||||||
Fair value assigned | $ 48,217 | |||||||||||||||
The Woods of Burnsville | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Contractual Purchase Price | $ 51,000 | |||||||||||||||
Land | 3,900 | |||||||||||||||
Building and Improvements | 45,053 | |||||||||||||||
Furniture, Fixture and Equipment | 821 | |||||||||||||||
Intangible Assets | 1,225 | |||||||||||||||
Other Liabilities | (84) | |||||||||||||||
Fair value assigned | $ 50,915 |
Acquisitions - Summary of Reven
Acquisitions - Summary of Revenues, Net Losses and Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Total Revenues | $ 52,928 | $ 14,661 |
Net Loss | (44,161) | (22,172) |
Acquisition costs | 9,079 | $ 9,136 |
Arcadia Apartment Homes | ||
Business Acquisition [Line Items] | ||
Total Revenues | 4,595 | |
Net Loss | (1,867) | |
Acquisition costs | 55 | |
Acquisition Fee | 1,371 | |
Riverlodge | ||
Business Acquisition [Line Items] | ||
Total Revenues | 5,009 | |
Net Loss | (3,625) | |
Acquisition costs | 194 | |
Acquisition Fee | 1,380 | |
Breckenridge | ||
Business Acquisition [Line Items] | ||
Total Revenues | 3,407 | |
Net Loss | (3,060) | |
Acquisition costs | 159 | |
Acquisition Fee | 1,798 | |
Santa Rosa | ||
Business Acquisition [Line Items] | ||
Total Revenues | 3,388 | |
Net Loss | (1,585) | |
Acquisition costs | 163 | |
Acquisition Fee | 1,627 | |
Windbrooke | ||
Business Acquisition [Line Items] | ||
Total Revenues | 125 | |
Net Loss | (172) | |
Acquisition costs | 126 | |
Acquisition Fee | 1,001 | |
The Woods of Burnsville | ||
Business Acquisition [Line Items] | ||
Total Revenues | 146 | |
Net Loss | (129) | |
Acquisition costs | 118 | |
Acquisition Fee | $ 1,046 |
Identified Intangible Assets,46
Identified Intangible Assets, Net (Details) - Acquired in-place leases - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired in-place leases, net | $ 16,300,000 | $ 8,400,000 |
Acquired in-place leases, accumulated amortization | $ 13,600,000 | $ 4,500,000 |
Weighted-average remaining life of rental leases | 5 months | 4 months |
Amortization | $ 9,100,000 | $ 4,100,000 |
Expected amortization for the rental leases for the next year | 2,700,000 | |
Expected amortization for the rental lease after year one | $ 0 |
Mortgage Notes Payable, Net - S
Mortgage Notes Payable, Net - Summary of Mortgage Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 460,586 | |
Deferred Financing Costs, net | (5,773) | |
Carrying Value | 455,361 | $ 152,917 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 460,586 | 154,717 |
Premium, net | 547 | 668 |
Deferred Financing Costs, net | (5,772) | (2,468) |
Carrying Value | $ 455,361 | 152,917 |
Mortgages | LIBOR | ||
Debt Instrument [Line Items] | ||
One-month LIBOR | 0.77167% | |
Mortgages | Overton Trails Apartment Homes Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 31,075 | 31,075 |
Deferred Financing Costs, net | (344) | (382) |
Carrying Value | $ 30,731 | 30,693 |
Margin over LIBOR | 1.909% | |
Annual Interest Rate | 2.68% | |
Average Monthly Debt Service | $ 118 | |
Average Monthly Escrow | 155 | |
Mortgages | Uptown Buckhead Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 20,200 | 20,200 |
Deferred Financing Costs, net | (284) | (320) |
Carrying Value | $ 19,916 | 19,880 |
Margin over LIBOR | 2.22% | |
Annual Interest Rate | 2.99% | |
Average Monthly Debt Service | $ 78 | |
Average Monthly Escrow | 70 | |
Mortgages | Crosstown at Chapel Hill Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 32,000 | 32,000 |
Deferred Financing Costs, net | (373) | (491) |
Carrying Value | $ 31,627 | 31,509 |
Margin over LIBOR | 1.70% | |
Annual Interest Rate | 2.47% | |
Average Monthly Debt Service | $ 95 | |
Average Monthly Escrow | 0 | |
Mortgages | The Brookwood Mortgage Loan - Key Bank | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 18,247 | 18,603 |
Premium, net | 508 | 621 |
Deferred Financing Costs, net | (239) | (293) |
Carrying Value | $ 18,516 | 18,931 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 4.73% | |
Average Monthly Debt Service | $ 104 | |
Average Monthly Escrow | 27 | |
Mortgages | The Brookwood Mortgage Loan - Capital One | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 2,699 | 2,739 |
Premium, net | 39 | 47 |
Deferred Financing Costs, net | (41) | (50) |
Carrying Value | $ 2,697 | 2,736 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 5.40% | |
Average Monthly Debt Service | $ 16 | |
Average Monthly Escrow | 0 | |
Mortgages | Adair off Addison and Adair off Addison Apartment Homes Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 25,500 | 25,500 |
Deferred Financing Costs, net | (464) | (583) |
Carrying Value | $ 25,036 | 24,917 |
Margin over LIBOR | 1.55% | |
Annual Interest Rate | 2.32% | |
Average Monthly Debt Service | $ 87 | |
Average Monthly Escrow | 0 | |
Mortgages | Spalding Crossing Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 24,600 | 24,600 |
Deferred Financing Costs, net | (289) | (349) |
Carrying Value | $ 24,311 | 24,251 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 3.88% | |
Average Monthly Debt Service | $ 108 | |
Average Monthly Escrow | 39 | |
Mortgages | Riverlodge Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 28,292 | 0 |
Deferred Financing Costs, net | (393) | 0 |
Carrying Value | $ 27,899 | 0 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 3.76% | |
Average Monthly Debt Service | $ 144 | |
Average Monthly Escrow | 130 | |
Mortgages | Verdant Apartment Homes | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 37,300 | 0 |
Deferred Financing Costs, net | (345) | 0 |
Carrying Value | $ 36,955 | 0 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 3.89% | |
Average Monthly Debt Service | $ 154 | |
Average Monthly Escrow | 26 | |
Mortgages | Arcadia Apartment Homes | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 40,200 | 0 |
Deferred Financing Costs, net | (379) | 0 |
Carrying Value | $ 39,821 | 0 |
Margin over LIBOR | 0.00% | |
Annual Interest Rate | 3.89% | |
Average Monthly Debt Service | $ 167 | |
Average Monthly Escrow | 19 | |
Mortgages | Grand Reserve | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 42,395 | 0 |
Deferred Financing Costs, net | (446) | 0 |
Carrying Value | $ 41,949 | 0 |
Margin over LIBOR | 2.57% | |
Annual Interest Rate | 3.34% | |
Average Monthly Debt Service | $ 185 | |
Average Monthly Escrow | 88 | |
Mortgages | Montclair Terrace | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 21,083 | 0 |
Deferred Financing Costs, net | (345) | 0 |
Carrying Value | $ 20,738 | 0 |
Margin over LIBOR | 2.45% | |
Annual Interest Rate | 3.22% | |
Average Monthly Debt Service | $ 93 | |
Average Monthly Escrow | 21 | |
Mortgages | Breckenridge | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 52,975 | 0 |
Deferred Financing Costs, net | (697) | 0 |
Carrying Value | $ 52,278 | 0 |
Margin over LIBOR | 2.36% | |
Annual Interest Rate | 3.13% | |
Average Monthly Debt Service | $ 213 | |
Average Monthly Escrow | 54 | |
Mortgages | Santa Rosa Mortgage Loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 45,700 | 0 |
Deferred Financing Costs, net | (643) | 0 |
Carrying Value | $ 45,057 | 0 |
Margin over LIBOR | 2.11% | |
Annual Interest Rate | 2.88% | |
Average Monthly Debt Service | $ 146 | |
Average Monthly Escrow | 98 | |
Mortgages | Windbrooke | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 38,320 | 0 |
Deferred Financing Costs, net | (490) | 0 |
Carrying Value | $ 37,830 | $ 0 |
Margin over LIBOR | 2.69% | |
Annual Interest Rate | 3.46% | |
Average Monthly Debt Service | $ 194 | |
Average Monthly Escrow | $ 70 |
Mortgage Notes Payable, Net - N
Mortgage Notes Payable, Net - Narrative (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Weighted average interest rate of debt outstanding | 3.31% | |
Restricted cash | $ 6,620,000 | $ 3,901,000 |
The Brookwood | ||
Debt Instrument [Line Items] | ||
Premium, net | 546,607 | |
Uptown Buckhead | ||
Debt Instrument [Line Items] | ||
Guarantee of the completion and payment of costs of completion for renovation (no less than) | $ 1,800,000 |
Mortgage Notes Payable, Net - A
Mortgage Notes Payable, Net - Annual Principal Payments on Mortgage Notes Payable (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 3,778 |
2,018 | 6,547 |
2,019 | 8,398 |
2,020 | 39,714 |
2,021 | 50,927 |
Thereafter | 351,222 |
Mortgage notes payable | $ 460,586 |
Deferred Financing Costs (Detai
Deferred Financing Costs (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Amortization of deferred financing costs | $ 876,721 | $ 139,722 |
2,017 | 1,011,000 | |
2,018 | 996,000 | |
2,019 | 979,000 | |
2,020 | 909,000 | |
2,021 | 728,000 | |
Thereafter | 1,150,000 | |
Deferred financing costs, net | $ 5,773,000 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ (420,272) | $ (37,613) |
Designated derivatives, fair value adjustment | 43 | (82) |
Balance, end of period | (390,892) | (420,272) |
Net unrealized loss on derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (117) | (35) |
Balance, end of period | $ (74) | $ (117) |
Certain Relationships And Rel52
Certain Relationships And Related Party Transactions - Narrative (Details) - USD ($) | 12 Months Ended | 51 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Insurance pool, loss limit | $ 2,500,000 | ||
Insurance pool, amount of general liability losses covered | 50,000 | $ 50,000 | |
Catastrophic insurance, property losses in excess of insurance pool, limit | 140,000,000 | ||
Catastrophic insurance, general liability losses in excess of insurance pool, limit | 51,000,000 | ||
Payment for insurance premiums | $ 905,797 | ||
Advisor | |||
Related Party Transaction [Line Items] | |||
Term of advisory agreement | 1 year | ||
Terms of agreement, renewal period | 1 year | ||
Acquisition fee, percent | 2.00% | ||
Monthly asset management fee | 0.083% | ||
Debt disposition fee, as a percentage of the brokerage commission paid | 50.00% | ||
Disposition fee | 2.00% | ||
Debt financing fee | 0.50% | ||
Maximum reimbursement of organizational and offering costs, percent of offering proceeds | 2.50% | ||
Manager | |||
Related Party Transaction [Line Items] | |||
Property management fee | 4.50% | ||
Construction management fee | 5.00% | ||
Debt servicing fee | 2.75% | ||
Resource Securities | |||
Related Party Transaction [Line Items] | |||
Selling commission | 7.00% | ||
Dealer-manager fee | 3.00% | ||
Organization and offering costs | Advisor | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | $ 86,000 | $ 4,107,000 | $ 7,200,000 |
The Planning and Zoning Resource Company | Other | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | $ 2,000 | $ 0 |
Certain Relationships And Rel53
Certain Relationships And Related Party Transactions - Fees Earned/Expenses Incurred and Amounts Payable to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | 51 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Due from related parties | $ 604 | $ 363 | $ 604 |
Due to related parties | 2,648 | 6,035 | 2,648 |
Graphic Images | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 0 | 3 | 0 |
Resource Securities | Resource Securities | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 0 | 37 | 0 |
Resource Securities | Selling commissions and dealer-manager fees | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 0 | 711 | 0 |
Fees earned / expenses incurred | 4,193 | 45,454 | |
Resource America, Inc. | Insurance Funds Held in Escrow | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 604 | 326 | 604 |
Advisor | Acquisition fees | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,022 | 2,646 | 1,022 |
Fees earned / expenses incurred | 8,497 | 7,479 | |
Advisor | Asset management fees | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 0 | 309 | 0 |
Fees earned / expenses incurred | 6,892 | 1,806 | |
Advisor | Debt financing fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | 1,537 | 582 | |
Advisor | Organization and offering costs | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 0 | 1,937 | 0 |
Fees earned / expenses incurred | 86 | 4,107 | 7,200 |
Advisor | Operating expense reimbursements | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 1,078 | 115 | 1,078 |
Fees earned / expenses incurred | 4,130 | 805 | |
Manager | Operating expense reimbursements | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 304 | 218 | 304 |
Fees earned / expenses incurred | 132 | 61 | |
Manager | Property management fees | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 244 | 99 | $ 244 |
Fees earned / expenses incurred | 2,278 | 613 | |
Manager | Construction management fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | 1,371 | 437 | |
Manager | Information technology fees | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | 166 | 47 | |
Other | Graphic Images | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | 8 | 460 | |
Other | The Planning and Zoning Resource Company | |||
Related Party Transaction [Line Items] | |||
Fees earned / expenses incurred | $ 2 | $ 0 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ / shares in Units, $ in Thousands | Dec. 15, 2016$ / shares | Dec. 31, 2016USD ($)event$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014shares |
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued (in shares) | shares | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | ||
Common stock, shares outstanding (in shares) | shares | 59,160,177 | 52,696,985 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Number of triggering events | event | 2 | |||
Conversion basis | 0.00002 | |||
Converted if the lesser of, option 1 | 25.00% | |||
Non-compounded annual return, option 1 | 10.00% | |||
Converted if the lesser of, option 2 | 15.00% | |||
Non-compounded annual return, option 2 | 6.00% | |||
Common stock | $ | $ 591 | $ 526 | ||
Maximum redemption of stock based on weighted-average number of shares outstanding | 5.00% | |||
Measurement period for weighting the average number of shares available for redemption | 12 months | |||
Percentage of operating cash flow from prior fiscal year available for stock redemption | 1.00% | |||
Number of days' notice that the board of directors may suspend, terminate or amend the share redemption program | 30 days | |||
Distributions declared | $ | $ 34,633 | |||
Distributions paid on common stock | $ | 14,025 | 5,654 | ||
Distributions reinvested in shares of Common Stock | $ | 20,608 | 0 | ||
Common stock issued through distribution reinvestment plan | $ | $ 20,608 | $ 8,425 | ||
Record for every day from December 30, 2016 through March 30, 2017 | ||||
Class of Stock [Line Items] | ||||
Dividends, authorized cash distributions (in dollars per share) | $ / shares | $ 0.00164384 | |||
Advisor | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | shares | 117,778 | |||
Common stock | $ | $ 1,100 | |||
Convertible stock | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | shares | 50,000 | 50,000 | 50,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common stock conversion terms, percent of paid distributions equal to price at which shares were originally sold | 100.00% | |||
Percent annual return on shares at price equal to distributions paid | 7.00% | |||
Common stock | $ | $ 1 | $ 1 | ||
Convertible stock | Advisor | ||||
Class of Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | shares | 50,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 59,160,177 | 52,696,985 |
Gross Proceeds | $ 584,097 | |
Total shares redeemed and retired (in shares) | (172,798) | |
Total shares redeemed and retired, Gross Proceeds | $ (1,497) | |
Initial public offering | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 55,791,297 | |
Gross Proceeds | $ 556,197 | |
Stock distribution | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 246,365 | |
Gross Proceeds | $ 0 | |
Distribution reinvestment plan | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 3,280,313 | |
Gross Proceeds | $ 29,247 | |
Advisor's Initial Investment | ||
Class of Stock [Line Items] | ||
Shares Issued (in shares) | 15,000 | |
Gross Proceeds | $ 150 | |
Share conversion (in shares) | 5,000 |
Equity - Schedule of Redemption
Equity - Schedule of Redemptions (Details) - $ / shares shares in Thousands | 1 Months Ended | |||||||||||
Dec. 31, 2016 | Nov. 30, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Jan. 31, 2016 | |
Equity [Abstract] | ||||||||||||
Total Number of Shares Redeemed | 57 | 0 | 54 | 0 | 0 | 0 | 48 | 0 | 0 | 8 | 0 | 0 |
Average Price Paid per Share (in dollars per share) | $ 8.75 | $ 0 | $ 8.40 | $ 0 | $ 0 | $ 0 | $ 8.48 | $ 0 | $ 0 | $ 9.64 | $ 0 | $ 0 |
Cumulative Number of Shares Purchased as Part of a Publicly Announced Plan or Program | 173 | 116 | 61 | 13 |
Equity - Schedule of Dividend D
Equity - Schedule of Dividend Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2016 | Jun. 15, 2016 | Mar. 29, 2016 | Feb. 24, 2016 | Dec. 17, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||
Distributions reinvested in shares of Common Stock | $ 20,608 | $ 0 | |||||
Net Cash Distributions | 14,025 | $ 5,654 | |||||
Total Aggregate Distributions | $ 34,633 | ||||||
December 31, 2015 through January 28, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,540 | ||||||
Net Cash Distributions | 1,039 | ||||||
Total Aggregate Distributions | $ 2,579 | ||||||
January 29, 2016 through February 26, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,618 | ||||||
Net Cash Distributions | 1,103 | ||||||
Total Aggregate Distributions | $ 2,721 | ||||||
February 27, 2016 through March 30, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,843 | ||||||
Net Cash Distributions | 1,263 | ||||||
Total Aggregate Distributions | $ 3,106 | ||||||
March 31, 2016 through April 29, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,635 | ||||||
Net Cash Distributions | 1,105 | ||||||
Total Aggregate Distributions | $ 2,740 | ||||||
April 30, 2016 through May 30, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,640 | ||||||
Net Cash Distributions | 1,106 | ||||||
Total Aggregate Distributions | $ 2,746 | ||||||
May 31, 2016 through June 29, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,870 | ||||||
Net Cash Distributions | 1,270 | ||||||
Total Aggregate Distributions | $ 3,140 | ||||||
June 30, 2016 through July 28, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,652 | ||||||
Net Cash Distributions | 1,115 | ||||||
Total Aggregate Distributions | $ 2,767 | ||||||
July 29, 2016 through August 30, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,891 | ||||||
Net Cash Distributions | 1,269 | ||||||
Total Aggregate Distributions | $ 3,160 | ||||||
August 31, 2016 through September 29, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,725 | ||||||
Net Cash Distributions | 1,158 | ||||||
Total Aggregate Distributions | $ 2,883 | ||||||
September 30, 2016 through October 30, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,729 | ||||||
Net Cash Distributions | 1,161 | ||||||
Total Aggregate Distributions | $ 2,890 | ||||||
October 31, 2016 through November 29, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,769 | ||||||
Net Cash Distributions | 1,225 | ||||||
Total Aggregate Distributions | $ 2,994 | ||||||
November 30, 2016 through December 29, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Per Common Share | $ 0.00164384 | ||||||
Distributions reinvested in shares of Common Stock | $ 1,696 | ||||||
Net Cash Distributions | 1,211 | ||||||
Total Aggregate Distributions | $ 2,907 |
Equity - Schedule of Dividends
Equity - Schedule of Dividends Declared (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Total Aggregate Distributions | $ 34,633 | |
Distribution payable | 8,769 | $ 2,778 |
Total distributions declared | $ 40,624 |
Fair Value Measures and Discl59
Fair Value Measures and Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure [Abstract] | ||
Cancelable swap | $ 0 | $ (127) |
Additional Fair Value Elements [Abstract] | ||
Carrying Amount - Mortgage notes payable | 455,361 | 152,917 |
Mortgages | ||
Additional Fair Value Elements [Abstract] | ||
Carrying Amount - Mortgage notes payable | 455,361 | 152,917 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 408 | 52 |
Liabilities, Fair Value Disclosure | 0 | (127) |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 408 | 52 |
Liabilities, Fair Value Disclosure | 0 | (127) |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 |
Interest rate caps | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate caps | 365 | 52 |
Interest rate caps | Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate caps | 0 | 0 |
Interest rate caps | Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate caps | 365 | 52 |
Interest rate caps | Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Interest rate caps | 0 | 0 |
Cancelable swap | Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cancelable swap | 0 | (127) |
Cancelable swap | Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cancelable swap | 0 | 0 |
Cancelable swap | Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cancelable swap | 0 | (127) |
Cancelable swap | Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cancelable swap | 0 | 0 |
Estimated Fair Value | Mortgages | ||
Additional Fair Value Elements [Abstract] | ||
Fair Value - Mortgage notes payable | 449,977 | 157,068 |
Outstanding Balance | Mortgages | ||
Additional Fair Value Elements [Abstract] | ||
Carrying Amount - Mortgage notes payable | $ 460,586 | $ 154,717 |
Derivatives and Hedging Activ60
Derivatives and Hedging Activities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain (loss) reclassified to earnings | $ (19,009) | |
Income (loss) related to derivatives that is expected to be reclassified | $ (69,834) |
Derivatives and Hedging Activ61
Derivatives and Hedging Activities - Outstanding Interest Rate Derivatives (Details) $ in Millions | Dec. 31, 2016USD ($)derivative_contract |
Designated as hedging instruments | Interest rate caps | |
Derivatives, Fair Value [Line Items] | |
Number of Instruments | derivative_contract | 8 |
Notional Amount | $ | $ 280 |
Not designated as hedging instruments | Cancelable swap | |
Derivatives, Fair Value [Line Items] | |
Number of Instruments | derivative_contract | 1 |
Notional Amount | $ | $ 32 |
Derivatives and Hedging Activ62
Derivatives and Hedging Activities - Fair Value of Derivative Instruments and Balance Sheet Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities Derivatives, Fair Value | $ 0 | $ 0 |
Designated as hedging instruments | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 365 | 52 |
Not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 0 | |
Liabilities Derivatives, Fair Value | $ (127) | |
Not designated as hedging instruments | Cancelable swap | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 43 | |
Liabilities Derivatives, Fair Value | $ 0 |
Derivatives and Hedging Activ63
Derivatives and Hedging Activities - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Designated as hedging instruments | Interest expense | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (10) | $ 0 |
Interest rate caps | Designated as hedging instruments | Interest expense | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | 10 | 0 |
Cancelable swap | Not designated as hedging instruments | Interest expense | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Income | 283 | (359) |
Interest rate products | Designated as hedging instruments | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 33 | $ (96) |
Operating Expenses - Narrative
Operating Expenses - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Operating support from advisor, required reimbursement when threshold exceeded, commencement period | 12 months | |
Limitation on total operating expenses, percentage of average invested assets for the four most recently completed fiscal quarter | 2.00% | |
Limitation on total operating expenses, percentage of net income for the four most recently completed fiscal quarter | 25.00% | |
Advisor | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Compensation | $ 971,516 | $ 319,284 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Mar. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||
Secured mortgage loan | $ 460,586,000 | |||
Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Dividends, authorized cash distributions (in dollars per share) | $ 0.00164384 | |||
Mortgages | ||||
Subsequent Event [Line Items] | ||||
Secured mortgage loan | $ 460,586,000 | $ 154,717,000 | ||
Mortgages | Subsequent event | ||||
Subsequent Event [Line Items] | ||||
Secured mortgage loan | $ 38,300,000 | |||
Additional spread on variable rate | 2.13% | |||
Periodic payment (per month) | $ 159,200 |
Schedule III Real Estate and 66
Schedule III Real Estate and Accumulated Depreciation - Schedule of Real Estate Owned (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 461,133 | ||
Initial cost to Company | 746,595 | ||
Cost capitalized subsequent to acquisition | 35,001 | ||
Gross Amount at which carried at close of period | 781,595 | $ 392,620 | $ 54,883 |
Accumulated Depreciation | (27,007) | $ (5,295) | $ (180) |
Residential, Dallas, Texas | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial cost to Company | 9,149 | ||
Cost capitalized subsequent to acquisition | 2,825 | ||
Gross Amount at which carried at close of period | 11,973 | ||
Accumulated Depreciation | (1,413) | ||
Residential, Fort Worth, Texas | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 31,075 | ||
Initial cost to Company | 45,824 | ||
Cost capitalized subsequent to acquisition | 3,990 | ||
Gross Amount at which carried at close of period | 49,814 | ||
Accumulated Depreciation | (4,008) | ||
Residential, Atlanta, Georgia | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 20,200 | ||
Initial cost to Company | 31,856 | ||
Cost capitalized subsequent to acquisition | 3,906 | ||
Gross Amount at which carried at close of period | 35,762 | ||
Accumulated Depreciation | (2,136) | ||
Residential, Chapel Hill, North Carolina | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 32,000 | ||
Initial cost to Company | 45,653 | ||
Cost capitalized subsequent to acquisition | 3,676 | ||
Gross Amount at which carried at close of period | 49,329 | ||
Accumulated Depreciation | (2,863) | ||
Residential, Homewood, Alabama | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 21,494 | ||
Initial cost to Company | 30,002 | ||
Cost capitalized subsequent to acquisition | 4,030 | ||
Gross Amount at which carried at close of period | 34,033 | ||
Accumulated Depreciation | (1,650) | ||
Residential, Dallas, Texas, Property 2 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 25,500 | ||
Initial cost to Company | 20,667 | ||
Cost capitalized subsequent to acquisition | 2,254 | ||
Gross Amount at which carried at close of period | 22,920 | ||
Accumulated Depreciation | (1,183) | ||
Residential, Atlanta, Georgia, Property 2 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 24,600 | ||
Initial cost to Company | 40,194 | ||
Cost capitalized subsequent to acquisition | 2,450 | ||
Gross Amount at which carried at close of period | 42,645 | ||
Accumulated Depreciation | (1,892) | ||
Residential, Portland, Oregon | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 21,083 | ||
Initial cost to Company | 32,131 | ||
Cost capitalized subsequent to acquisition | 1,008 | ||
Gross Amount at which carried at close of period | 33,138 | ||
Accumulated Depreciation | (1,393) | ||
Residential, Naperville, Illinois | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 42,395 | ||
Initial cost to Company | 66,213 | ||
Cost capitalized subsequent to acquisition | 3,191 | ||
Gross Amount at which carried at close of period | 69,404 | ||
Accumulated Depreciation | (2,391) | ||
Residential, Boulder, Colorado | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 37,300 | ||
Initial cost to Company | 64,181 | ||
Cost capitalized subsequent to acquisition | 2,162 | ||
Gross Amount at which carried at close of period | 66,343 | ||
Accumulated Depreciation | (1,810) | ||
Residential, Centennial, Colorado | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 40,200 | ||
Initial cost to Company | 59,059 | ||
Cost capitalized subsequent to acquisition | 3,281 | ||
Gross Amount at which carried at close of period | 62,340 | ||
Accumulated Depreciation | (1,851) | ||
Residential, Austin, Texas | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 28,292 | ||
Initial cost to Company | 55,466 | ||
Cost capitalized subsequent to acquisition | 1,875 | ||
Gross Amount at which carried at close of period | 57,341 | ||
Accumulated Depreciation | (1,551) | ||
Residential, Portland, Oregon, Property 2 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 52,975 | ||
Initial cost to Company | 80,155 | ||
Cost capitalized subsequent to acquisition | (323) | ||
Gross Amount at which carried at close of period | 79,832 | ||
Accumulated Depreciation | (1,636) | ||
Residential, Irving, Texas | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 45,700 | ||
Initial cost to Company | 68,454 | ||
Cost capitalized subsequent to acquisition | 740 | ||
Gross Amount at which carried at close of period | 69,194 | ||
Accumulated Depreciation | (1,231) | ||
Residential, Buffalo Grove, Illinois | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 38,320 | ||
Initial cost to Company | 47,817 | ||
Cost capitalized subsequent to acquisition | (12) | ||
Gross Amount at which carried at close of period | 47,805 | ||
Residential, Burnsville, Minnesota | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial cost to Company | 49,775 | ||
Cost capitalized subsequent to acquisition | (51) | ||
Gross Amount at which carried at close of period | $ 49,723 |
Schedule III Real Estate and 67
Schedule III Real Estate and Accumulated Depreciation - Reconciliations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in real estate: | ||
Balance at beginning of the year | $ 392,620 | |
Additions during the year: | 0 | $ 0 |
Acquisitions | 361,558 | 330,059 |
Improvements, etc. | 31,334 | 9,359 |
Dispositions during the year: | (3,917) | (1,680) |
Balance at end of year | 781,595 | 392,620 |
Accumulated Depreciation: | ||
Balance at beginning of year | 5,295 | |
Depreciation | 21,870 | 5,120 |
Disposals | 158 | (4) |
Balance at the end of year | $ 27,007 | $ 5,295 |