Cover
Cover | 6 Months Ended |
Jun. 30, 2019 | |
Cover page. | |
Document Type | S-4 |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2019 |
Entity Registrant Name | Steadfast Apartment REIT, Inc. |
Entity Central Index Key | 0001585219 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Small Business | false |
Entity ExTransition Period | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate: | |||
Land | $ 164,113,072 | $ 164,113,072 | $ 164,113,072 |
Building and improvements | 1,421,049,714 | 1,411,198,832 | 1,394,779,659 |
Total real estate held for investment, cost | 1,585,162,786 | 1,575,311,904 | 1,558,892,731 |
Less accumulated depreciation and amortization | (255,443,023) | (218,672,162) | (147,726,630) |
Total real estate held for investment, net | 1,329,719,763 | 1,356,639,742 | 1,411,166,101 |
Real estate under development: | |||
Real estate held for development | 2,576,467 | 0 | |
Total real estate, net | 1,332,296,230 | 1,356,639,742 | 1,411,166,101 |
Cash and cash equivalents | 43,745,735 | 58,880,007 | 27,298,855 |
Restricted cash | 10,913,822 | 13,858,768 | 11,368,850 |
Rents and other receivables | 1,850,444 | 1,836,406 | 1,722,065 |
Other assets | 2,870,473 | 2,923,725 | 2,812,186 |
Total assets | 1,391,676,704 | 1,434,138,648 | 1,454,368,057 |
Liabilities: | |||
Accounts payable and accrued liabilities | 29,749,779 | 32,330,278 | 27,612,665 |
Notes Payable, net: | |||
Mortgage notes payable, net | 501,954,042 | 502,143,306 | 948,557,074 |
Credit facilities, net | 548,256,798 | 548,012,437 | 44,848,788 |
Total notes payable, net | 1,050,210,840 | 1,050,155,743 | 993,405,862 |
Distributions payable | 3,856,773 | 3,953,499 | 3,886,730 |
Due to affiliates | 2,634,840 | 1,711,168 | 2,760,555 |
Total liabilities | 1,086,452,232 | 1,088,150,688 | 1,027,665,812 |
Commitments and contingencies | |||
Redeemable common stock | 36,397,062 | ||
Stockholders' Equity: | |||
Preferred stock, value | 0 | 0 | |
Additional paid-in capital | 690,921,687 | 684,140,823 | 633,186,743 |
Cumulative distributions and net losses | (386,218,653) | (338,670,111) | (243,389,996) |
Total stockholders' equity | 305,224,472 | 345,987,960 | 390,305,183 |
Total liabilities and stockholders' equity | 1,391,676,704 | 1,434,138,648 | 1,454,368,057 |
Common Stock [Member] | |||
Notes Payable, net: | |||
Distributions payable | 3,856,773 | 3,953,499 | 3,886,730 |
Stockholders' Equity: | |||
Common/Convertible stock, $0.01 par value per share | 521,428 | 517,238 | 508,426 |
Convertible Stock [Member] | |||
Stockholders' Equity: | |||
Common/Convertible stock, $0.01 par value per share | $ 10 | $ 10 | $ 10 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Common Stock [Member] | |||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 999,999,000 | 999,999,000 | 999,999,000 |
Stock, shares issued (in shares) | 52,142,845 | 51,723,801 | 50,842,640 |
Stock, shares outstanding (in shares) | 52,142,845 | 51,723,801 | 50,842,640 |
Convertible Stock [Member] | |||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 1,000 | 1,000 | 1,000 |
Stock, shares issued (in shares) | 1,000 | 1,000 | 1,000 |
Stock, shares outstanding (in shares) | 1,000 | 1,000 | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||
Rental income | $ 42,887,126 | $ 41,909,599 | $ 85,204,046 | $ 82,636,991 | $ 150,900,039 | $ 146,032,596 | $ 128,723,298 |
Other income | 1,069,487 | 565,567 | 1,519,177 | 1,205,201 | 19,063,191 | 17,365,562 | 15,287,216 |
Total revenues | 43,956,613 | 42,475,166 | 86,723,223 | 83,842,192 | 169,963,230 | 163,398,158 | 144,010,514 |
Expenses: | |||||||
Operating, maintenance and management | 10,496,086 | 10,439,849 | 20,537,351 | 20,414,684 | 42,446,994 | 41,113,376 | 35,644,845 |
Real estate taxes and insurance | 6,443,394 | 5,962,503 | 13,024,583 | 11,647,883 | 23,501,730 | 22,745,539 | 20,836,003 |
Fees to affiliates | 6,265,958 | 5,826,703 | 12,331,606 | 11,623,381 | 25,976,226 | 24,342,996 | 24,629,873 |
Depreciation and amortization | 18,515,635 | 17,629,793 | 36,797,927 | 35,065,143 | 70,993,280 | 68,417,556 | 67,991,543 |
Interest expense | 12,165,781 | 10,231,952 | 24,399,076 | 19,346,307 | 44,374,484 | 34,944,074 | 26,060,155 |
Loss on debt extinguishment | 0 | 0 | 41,609 | 0 | 4,975,497 | 0 | 0 |
General and administrative expenses | 2,062,769 | 1,330,544 | 3,943,353 | 2,709,066 | 6,795,365 | 5,456,273 | 4,848,801 |
Acquisition costs | 0 | 2,185 | 1,681,768 | ||||
Total expenses | 55,949,623 | 51,421,344 | 111,075,505 | 100,806,464 | 219,063,576 | 197,021,999 | 181,692,988 |
Net loss | $ (11,993,010) | $ (8,946,178) | $ (24,352,282) | $ (16,964,272) | $ (49,100,346) | $ (33,623,841) | $ (37,682,474) |
Loss per common share - basic and diluted (in dollars per share) | $ (0.23) | $ (0.17) | $ (0.47) | $ (0.33) | $ (0.96) | $ (0.67) | $ (0.80) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 52,123,442 | 51,186,141 | 51,999,327 | 51,081,717 | 51,312,947 | 50,358,618 | 47,092,206 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock [Member] | Stock [Member]Common Stock [Member] | Stock [Member]Convertible Stock [Member] | Additional Paid-in Capital [Member] | Cumulative Distributions & Net Losses [Member] |
BALANCE, beginning of period (in shares) at Dec. 31, 2015 | 35,504,854 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2015 | $ 372,564,581 | $ 355,048 | $ 10 | $ 456,614,453 | $ (84,404,930) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 14,350,215 | |||||
Issuance of common stock | 212,715,246 | $ 143,503 | 212,571,743 | |||
Commissions on sales of common stock and related dealer manager fees to affiliates | (17,659,380) | (17,659,380) | ||||
Transfers from redeemable common stock | (19,309,449) | (19,309,449) | ||||
Redemption of common stock (in shares) | (156,583) | |||||
Repurchase of common stock | (2,156,699) | $ (1,566) | (2,155,133) | |||
Other offering costs to affiliates | (4,165,911) | (4,165,911) | ||||
Distributions declared | (42,357,688) | (42,357,688) | ||||
Amortization of stock-based compensation | 100,060 | 100,060 | ||||
Net loss | (37,682,474) | (37,682,474) | ||||
BALANCE, end of period (in shares) at Dec. 31, 2016 | 49,698,486 | 1,000 | ||||
BALANCE, end of period at Dec. 31, 2016 | 462,048,286 | $ 496,985 | $ 10 | 625,996,383 | (164,445,092) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 1,583,829 | |||||
Issuance of common stock | 23,338,092 | $ 15,838 | 23,322,254 | |||
Transfers from redeemable common stock | (10,025,412) | (10,025,412) | ||||
Redemption of common stock (in shares) | (439,675) | |||||
Repurchase of common stock | (6,190,737) | $ (4,397) | (6,186,340) | |||
Distributions declared | (45,321,063) | $ (45,321,063) | (45,321,063) | |||
Amortization of stock-based compensation | 79,858 | 79,858 | ||||
Net loss | (33,623,841) | (33,623,841) | ||||
BALANCE, end of period (in shares) at Dec. 31, 2017 | 50,842,640 | 1,000 | ||||
BALANCE, end of period at Dec. 31, 2017 | 390,305,183 | $ 508,426 | $ 10 | 633,186,743 | (243,389,996) | |
Increase (decrease) in Stockholders' Equity | ||||||
Net loss | (8,018,094) | |||||
BALANCE, end of period (in shares) at Mar. 31, 2018 | 51,024,374 | 1,000 | ||||
BALANCE, end of period at Mar. 31, 2018 | 410,831,381 | $ 510,244 | $ 10 | 673,041,680 | (262,720,553) | |
BALANCE, beginning of period (in shares) at Dec. 31, 2017 | 50,842,640 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2017 | 390,305,183 | $ 508,426 | $ 10 | 633,186,743 | (243,389,996) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 766,782 | |||||
Issuance of common stock | 11,469,940 | $ 7,668 | 11,462,272 | |||
Commissions on sales of common stock and related dealer manager fees to affiliates | 32,414 | 32,414 | ||||
Transfers from redeemable common stock | 37,028,102 | 37,028,102 | ||||
Redemption of common stock (in shares) | (346,612) | |||||
Repurchase of common stock | (4,886,216) | $ (3,466) | (4,882,750) | |||
Distributions declared | (22,798,113) | (22,798,113) | (22,798,113) | |||
Amortization of stock-based compensation | 27,678 | 27,678 | ||||
Net loss | (16,964,272) | (16,964,272) | ||||
BALANCE, end of period (in shares) at Jun. 30, 2018 | 51,262,810 | 1,000 | ||||
BALANCE, end of period at Jun. 30, 2018 | 394,214,716 | $ 512,628 | $ 10 | 676,854,459 | (283,152,381) | |
BALANCE, beginning of period (in shares) at Dec. 31, 2017 | 50,842,640 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2017 | 390,305,183 | $ 508,426 | $ 10 | 633,186,743 | (243,389,996) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 1,512,493 | |||||
Issuance of common stock | 22,713,975 | $ 15,125 | 22,698,850 | |||
Commissions on sales of common stock and related dealer manager fees to affiliates | 32,414 | 32,414 | ||||
Transfers from redeemable common stock | 37,028,102 | 37,028,102 | ||||
Redemption of common stock (in shares) | (631,332) | |||||
Repurchase of common stock | (8,886,216) | $ (6,313) | (8,879,903) | |||
Distributions declared | (46,179,769) | (46,179,769) | (46,179,769) | |||
Amortization of stock-based compensation | 74,617 | 74,617 | ||||
Net loss | (49,100,346) | (49,100,346) | ||||
BALANCE, end of period (in shares) at Dec. 31, 2018 | 51,723,801 | 1,000 | ||||
BALANCE, end of period at Dec. 31, 2018 | 345,987,960 | $ 517,238 | $ 10 | 684,140,823 | (338,670,111) | |
BALANCE, beginning of period (in shares) at Mar. 31, 2018 | 51,024,374 | 1,000 | ||||
BALANCE, beginning of period at Mar. 31, 2018 | 410,831,381 | $ 510,244 | $ 10 | 673,041,680 | (262,720,553) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 382,876 | |||||
Issuance of common stock | 5,768,910 | $ 3,828 | 5,765,082 | |||
Commissions on sales of common stock and related dealer manager fees to affiliates | 32,414 | 32,414 | ||||
Redemption of common stock (in shares) | (144,440) | |||||
Repurchase of common stock | (2,000,000) | $ (1,444) | (1,998,556) | |||
Distributions declared | (11,485,650) | (11,485,650) | (11,485,650) | |||
Amortization of stock-based compensation | 13,839 | 13,839 | ||||
Net loss | (8,946,178) | (8,946,178) | ||||
BALANCE, end of period (in shares) at Jun. 30, 2018 | 51,262,810 | 1,000 | ||||
BALANCE, end of period at Jun. 30, 2018 | 394,214,716 | $ 512,628 | $ 10 | 676,854,459 | (283,152,381) | |
BALANCE, beginning of period (in shares) at Dec. 31, 2018 | 51,723,801 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2018 | 345,987,960 | $ 517,238 | $ 10 | 684,140,823 | (338,670,111) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 693,889 | |||||
Issuance of common stock | 10,757,262 | $ 6,938 | 10,750,324 | |||
Redemption of common stock (in shares) | (274,845) | |||||
Repurchase of common stock | (4,000,000) | $ (2,748) | (3,997,252) | |||
Distributions declared | (23,196,260) | (23,196,260) | (23,196,260) | |||
Amortization of stock-based compensation | 27,792 | 27,792 | ||||
Net loss | (24,352,282) | (24,352,282) | ||||
BALANCE, end of period (in shares) at Jun. 30, 2019 | 52,142,845 | 1,000 | ||||
BALANCE, end of period at Jun. 30, 2019 | 305,224,472 | $ 521,428 | $ 10 | 690,921,687 | (386,218,653) | |
BALANCE, beginning of period (in shares) at Apr. 01, 2019 | 51,939,159 | 1,000 | ||||
BALANCE, beginning of period at Apr. 01, 2019 | 325,509,613 | $ 519,392 | $ 10 | 687,531,131 | (362,540,920) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 339,571 | |||||
Issuance of common stock | 5,378,696 | $ 3,395 | 5,375,301 | |||
Redemption of common stock (in shares) | (135,885) | |||||
Repurchase of common stock | (2,000,000) | $ (1,359) | (1,998,641) | |||
Distributions declared | (11,684,723) | $ (11,684,723) | (11,684,723) | |||
Amortization of stock-based compensation | 13,896 | 13,896 | ||||
Net loss | (11,993,010) | (11,993,010) | ||||
BALANCE, end of period (in shares) at Jun. 30, 2019 | 52,142,845 | 1,000 | ||||
BALANCE, end of period at Jun. 30, 2019 | $ 305,224,472 | $ 521,428 | $ 10 | $ 690,921,687 | $ (386,218,653) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities: | |||||
Net loss | $ (24,352,282) | $ (16,964,272) | $ (49,100,346) | $ (33,623,841) | $ (37,682,474) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
Depreciation and amortization | 36,797,927 | 35,065,143 | 70,993,280 | 68,417,556 | 67,991,543 |
Loss on disposal of buildings and improvements | 140,919 | 188,369 | 493,941 | 109,321 | 94,010 |
Amortization of deferred financing costs | 494,204 | 493,241 | 1,056,545 | 1,012,380 | 937,075 |
Amortization of stock-based compensation | 27,792 | 27,678 | 74,617 | 79,858 | 100,060 |
Change in fair value of interest rate cap agreements | 199,723 | (578,894) | (87,160) | 447,668 | 270,222 |
Amortization of loan discount | 0 | 177,491 | 207,074 | 354,984 | 90,718 |
Loss on debt extinguishment | 41,609 | 0 | 4,975,497 | 0 | 0 |
Insurance claim recoveries | (639,483) | (143,972) | (441,087) | (341,250) | (658,886) |
Changes in operating assets and liabilities: | |||||
Rents and other receivables | (89,038) | 75,434 | (114,341) | (60,878) | (275,383) |
Other assets | 259,566 | (789,711) | (151,179) | 279,756 | (956,089) |
Accounts payable and accrued liabilities | (2,702,679) | 1,373,613 | 6,290,350 | (1,380,056) | 8,181,287 |
Due to affiliates | 1,003,318 | (146,735) | (639,916) | (625,107) | 129,657 |
Net cash provided by operating activities | 11,181,576 | 18,777,385 | 33,557,275 | 34,670,391 | 38,221,740 |
Cash Flows from Investing Activities: | |||||
Acquisition of real estate held for development | (2,158,815) | 0 | (210,030,200) | ||
Additions to real estate investments | (9,883,640) | (7,808,428) | |||
Additions to real estate held for development | (102,284) | 0 | (18,049,643) | (26,826,024) | (53,334,756) |
Escrow deposits for pending real estate acquisitions | (700,100) | 0 | (100,000) | (7,092,300) | |
Purchase of interest rate cap agreements | (43,200) | (300,000) | (116,100) | ||
Proceeds from settlement of interest rate cap agreements | 270,000 | ||||
Proceeds from insurance claims | 714,483 | 143,972 | 441,087 | 341,250 | 658,886 |
Net cash used in investing activities | (12,130,356) | (7,664,456) | (17,481,756) | (26,784,774) | (269,914,470) |
Cash Flows from Financing Activities: | |||||
Proceeds from issuance of mortgage notes payable | 160,850,000 | 197,832,000 | 41,850,000 | ||
Principal payments on mortgage notes payable | (480,716) | (278,140) | (611,459,963) | (289,590) | (255,878) |
Borrowings from credit facilities | 562,669,000 | 10,000,000 | 35,000,000 | ||
Principal payments on credit facilities | (56,000,000) | (186,300,000) | |||
Proceeds from issuance of common stock | 193,953,605 | ||||
Payments of commissions on sale of common stock | (113,998) | (114,741) | (229,973) | (234,942) | (16,862,099) |
Reimbursement of other offering costs to affiliates | (5,485,093) | ||||
Payment of deferred financing costs | (4,528,781) | (965,063) | (1,005,250) | ||
Payment of debt extinguishment costs | (1,019,491) | ||||
Distributions to common stockholders | (12,535,724) | (11,422,475) | (23,399,025) | (21,884,846) | (19,252,136) |
Repurchase of common stock | (4,000,000) | (4,886,216) | (8,886,216) | (6,190,737) | (2,156,699) |
Net cash provided by (used in) financing activities | (17,130,438) | (16,701,572) | 17,995,551 | (8,033,178) | 225,786,450 |
Net decrease in cash, cash equivalents and restricted cash | (18,079,218) | (5,588,643) | 34,071,070 | (147,561) | (5,906,280) |
Cash, cash equivalents and restricted cash, beginning of the period | 72,738,775 | 38,667,705 | 38,667,705 | 38,815,266 | 44,721,546 |
Cash, cash equivalents and restricted cash, end of the period | 54,659,557 | 33,079,062 | 72,738,775 | 38,667,705 | 38,815,266 |
Supplemental Disclosures of Cash Flow Information: | |||||
Interest paid | 23,807,702 | 18,585,763 | 41,773,839 | 32,177,704 | 24,100,572 |
Supplemental Disclosures of Noncash Flow Transactions: | |||||
Distributions payable | 3,856,773 | 3,792,428 | 66,769 | 98,125 | 1,224,836 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | 10,757,262 | 11,469,940 | 22,713,975 | 23,338,092 | 21,880,716 |
Redemptions payable | 2,000,000 | 2,000,000 | (631,040) | 1,577,842 | 761,317 |
Accounts payable and accrued liabilities from additions to real estate investments | 954,446 | 436,638 | (941,697) | (427,084) | (89,223) |
Due to affiliates from additions to real estate investments | 75,443 | 94,442 | (147,084) | (91,127) | (303,902) |
Due to affiliates for commissions on sale of common stock | 185,953 | $ 415,184 | |||
Operating lease right-of-use asset, net | 5,871 | ||||
Operating lease liabilities, net | $ 5,936 | ||||
Application of escrow deposits to acquire real estate | 7,092,300 | ||||
Assumption of mortgage notes payable to acquire real estate | 47,100,000 | ||||
Discount on assumed mortgage notes payable | (2,721,540) | ||||
Decrease in amounts receivable from transfer agent | (3,119,075) | ||||
Decrease in amounts payable to affiliates for other offering costs | (1,319,182) | ||||
(Decrease) increase in redeemable common stock | (36,397,062) | 10,025,412 | 19,309,449 | ||
(Decrease) increase in due to affiliates for commissions on sale of common stock and related dealer manager fees | $ (262,387) | $ (234,942) | $ 797,281 |
Organization and Business
Organization and Business | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Organization and Business | 1. Organization and Business Steadfast Apartment REIT, Inc. (the “Company”) was formed on August 22, 2013, as a Maryland corporation that elected to qualify as a real estate investment trust (“REIT”) commencing with the taxable year ended December 31, 2014. On September 3, 2013, the Company was initially capitalized with the sale of 13,500 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $15.00 per share for an aggregate purchase price of $202,500. Steadfast Apartment Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on August 22, 2013, invested $1,000 in the Company in exchange for 1,000 shares of non-participating, non-voting The Company owns and operates a diverse portfolio of multifamily properties located in targeted markets throughout the United States. As of June 30, 2019, the Company owned 34 multifamily properties comprising a total of 11,601 apartment homes and one parcel of land held for the development of apartment homes. The Company may acquire additional multifamily properties or pursue multifamily developments in the future. For more information on the Company’s real estate portfolio, see Note 3 (Real Estate). Public Offering On December 30, 2013, the Company commenced its initial public offering to offer a maximum of 66,666,667 shares of common stock for sale to the public at an initial price of $15.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also registered up to 7,017,544 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $14.25 per share. The Company terminated its Public Offering on March 24, 2016, but continues to offer shares of common stock pursuant to the DRP. As of the termination of the Public Offering, the Company had sold 48,625,651 shares of common stock in the Public Offering for gross proceeds of $724,849,631, including 1,011,561 shares of common stock issued pursuant to the DRP for gross offering proceeds of $14,414,752. As of June 30, 2019, the Company had issued 53,615,560 shares of common stock for gross offering proceeds of $799,097,238, including 6,001,533 shares of common stock issued pursuant to the DRP for gross offering proceeds of $88,662,359. On March 12, 2019, the Company’s board of directors approved an estimated value per share of the Company’s common stock of $15.84 as of December 31, 2018. In connection with the determination of an estimated value per share, the Company’s board of directors approved a price per share for the DRP of $15.84, effective April 1, 2019. The Company’s board of directors may again, from time to time, in its sole discretion, change the price at which the Company offers shares pursuant to the DRP to reflect changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement dated December 13, 2013, by and among the Company, Steadfast Apartment REIT Operating Partnership, L.P. (the “Operating Partnership”) and the Advisor (as amended, the “Advisory Agreement”). The Advisory Agreement is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on December 13, 2019. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day Substantially all of the Company’s business is conducted through the Operating Partnership. The Company is the sole general partner of the Operating Partnership. The Company and Steadfast Apartment REIT Limited Partner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into a Limited Partnership Agreement (the “Partnership Agreement”) on September 3, 2013. As the Company accepted subscriptions for shares of its common stock, the Company transferred substantially all of the net offering proceeds from its Public Offering to the Operating Partnership as a contribution in exchange for partnership interests and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership pays all of the Company’s administrative costs and expenses, and such expenses are treated as expenses of the Operating Partnership. | 1. Organization and Business Steadfast Apartment REIT, Inc. (the “Company”) was formed on August 22, 2013, as a Maryland corporation that elected to qualify as a real estate investment trust (“REIT”) commencing with the taxable year ended December 31, 2014. On September 3, 2013, the Company was initially capitalized with the sale of 13,500 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $15.00 per share for an aggregate purchase price of $202,500. Steadfast Apartment Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on August 22, 2013, invested $1,000 in the Company in exchange for 1,000 shares of non-participating, non-voting The Company owns and operates a diverse portfolio of multifamily properties located in targeted markets throughout the United States. As of December 31, 2018, the Company owned 34 multifamily properties comprising a total of 11,601 apartment homes. For more information on the Company’s real estate portfolio, see Note 3 (Real Estate). Public Offering On December 30, 2013, the Company commenced its initial public offering to offer a maximum of 66,666,667 shares of common stock for sale to the public at an initial price of $15.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also registered up to 7,017,544 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $14.25 per share. The Company terminated its Public Offering on March 24, 2016, but continues to offer shares of common stock pursuant to the DRP. As of the termination of the Public Offering, the Company had sold 48,625,651 shares of common stock in the Public Offering for gross proceeds of $724,849,631, including 1,011,561 shares of common stock issued pursuant to the DRP for gross offering proceeds of $14,414,752. As of December 31, 2018, the Company had issued 52,921,670 shares of common stock for gross offering proceeds of $788,339,974, including 5,307,643 shares of common stock issued pursuant to the DRP for gross offering proceeds of $77,905,095. On February 14, 2017, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $14.85 as of December 31, 2016. On March 14, 2018, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $15.18 as of December 31, 2017. On March 12, 2019, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $15.84 as of December 31, 2018. In connection with the determination of an estimated value per share, the Company’s board of directors determined a price per share for the DRP of $14.85, $15.18 and $15.84, effective March 1, 2017, April 1, 2018 and April 1, 2019, respectively. The Company’s board of directors may again, from time to time, in its sole discretion, change the price at which the Company offers shares pursuant to the DRP to reflect changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement dated December 13, 2013, by and among the Company, Steadfast Apartment REIT Operating Partnership, L.P. (the “Operating Partnership”) and the Advisor (as amended, the “Advisory Agreement”). The Advisory Agreement is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on December 13, 2019. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day Substantially all of the Company’s business is conducted through the Operating Partnership. The Company is the sole general partner of the Operating Partnership. The Company and Steadfast Apartment REIT Limited Partner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into a Limited Partnership Agreement (the “Partnership Agreement”) on September 3, 2013. As the Company accepted subscriptions for shares of its common stock, the Company transferred substantially all of the net offering proceeds from its Public Offering to the Operating Partnership as a contribution in exchange for partnership interests and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership pays all of the Company’s administrative costs and expenses, and such expenses are treated as expenses of the Operating Partnership. The Company commenced its real estate operations on May 22, 2014, upon acquiring a fee simple interest in a multifamily property located in Spring Hill, Tennessee. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K 2016-02 33-10532), 10-K Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q Regulation S-X. 10-K Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring • Level 1: • Level 2: • Level 3: When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: June 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 8,046 $ — December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of June 30, 2019 and December 31, 2018, the fair value of the notes payable was $1,096,206,883 and $1,042,358,884, respectively, compared to the carrying value of $1,050,210,840 and $1,050,155,743, respectively. Distribution Policy The Company elected to be taxed, and currently qualifies, as a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the six months ended June 30, 2019, were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2019 through June 30, 2019. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and six months ended June 30, 2019, the Company declared distributions totaling $0.224 and $0.446 per share of common stock, respectively. During the three and six months ended June 30, 2018, the Company declared distributions totaling $0.224 and $0.446 per share of common stock, respectively. Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements were reclassified to conform to the current presentation. These reclassifications did not change the results of operations of those prior periods. On January 1, 2019, the Company adopted ASU 2016-02, non-lease The table below provides a reconciliation of the prior period presentation of the income statement line items that were reclassified in our consolidated statements of operations to conform to the current period presentation, pursuant to the adoption of the new lease accounting standard and election of the single component practical expedient: Three Months Ended Six Months Ended Rental income (presentation prior to January 1, 2019) $ 37,749,899 $ 74,550,233 Tenant reimbursements (1) 4,159,700 8,086,758 Rental income (presentation effective January 1, 2019) $ 41,909,599 $ 82,636,991 (1) Tenant reimbursements include reimbursements for recoverable costs. Recent Accounting Pronouncements In February 2016, the FASB established ASC Topic 842, Leases 2016-02, right-of-use 2018-01, Land Easement Practical Expedient for Transition to Topic 842 2018-01”), ASU 2018-10, Codification Improvements to Topic 842 2018-10”), ASU 2018-11, Targeted Improvements 2018-11”) 2018-20, Leases Narrow-scope Improvements for Lessors 2018-20”). ASC 842-10-65-1(f) 842-20-25-2 not right-of-use As it relates to the Company as lessor, the Company did not experience a material impact on the recognition of leases in the consolidated financial statements because under ASC 842, lessors continue to account for leases using an approach that is substantially equivalent to historical guidance for sales-type leases, direct financing leases, and operating leases. The Company elected a practical expedient which allows lessors to not separate non-lease non-lease Under ASC 842, beginning on January 1, 2019, changes in the probability of collecting tenant rental income could result in direct adjustments of rental income and tenant receivables. The Company did not experience a material impact on its rental income and tenant receivables as of the adoption date. The Company’s rental income consists of fixed rental payments from tenants under operating leases and is recognized on a straight-line basis over the respective operating lease terms. The Company recognizes minimum rent, including rental abatements, concessions and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the non-cancelable The Company recognized $42,887,126 and $85,204,046 of rental income related to operating lease payments of which $4,332,509 and $8,410,436 was for variable lease payments for the three and six months ended June 30, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses 2016-13”). ASU 2016-13 requires held-to-maturity 2016-13 requires 2016-13 require 2018-19, Codification Improvements to Topic 326, Financial Instruments Credit Losses 2018-19”), 2016-13. ASU 2016-13 is In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 2018-13 is 2018-13 modify 2018-13 removed 2018-13 requires 2018-13 will 2018-13. The SEC’s Disclosure Update and Simplification rule (Release 33-10532) Rule 3-04 of Regulation S-X. year-to-date 10-Q year-to-date 10-Q), 10-Q | 2. Summary of Significant Accounting Policies There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K 2016-18, Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. Square footage, occupancy and certain other measures used to describe real estate included in the notes to the consolidated financial statements are presented on an unaudited basis. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Real Estate Assets Depreciation and Amortization Real estate costs related to the development, construction and improvement of properties are capitalized. Acquisition costs related to business combinations are expensed as incurred. Acquisition costs related to asset acquisitions are capitalized. On January 1, 2017, the Company early adopted ASU 2017-01, Business Combinations (Topic 805): clarifying the definition of a business 2017-01”), Buildings 27.5 years Building improvements 5-25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related lease Furniture, fixtures, and equipment 5-10 years Real Estate Purchase Price Allocation Prior to its adoption of ASU 2017-01, 2017-01, The Company assesses the acquisition-date fair values of all tangible assets, identifiable intangible assets and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis) and that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. Intangible assets include the value of in-place in-place lease-up. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up lease-up The Company amortizes the value of in-place non-cancelable in-place The Company records above-market and below-market in-place in-place in-place non-cancelable non-cancelable The total amount of other intangible assets acquired will be further allocated to in-place Estimates of the fair values of the tangible assets, identifiable intangible assets and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up Impairment of Real Estate Assets The Company accounts for its real estate assets in accordance with ASC 360, Property, Plant and Equipment Rents and Other Receivables The Company will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. Due to the short-term nature of the operating leases, the Company does not maintain a deferred rent receivable related to the straight-lining of rents. Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers The Company’s revenue consists of rental revenues and tenant reimbursements and other. There was no impact to the Company’s recognition of rental revenue from leasing arrangements as this was specifically excluded from ASC 606. The company identified limited sources of revenues from non-lease non-cancellable Leases Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. As of December 31, 2018 and 2017, the Company had amounts in excess of federally insured limits in deposit accounts with a financial institution. The Company limits such deposits to financial institutions with high credit standing. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants. As of December 31, 2018 and 2017, the Company had a restricted cash balance of $13,858,768 and $11,368,850, respectively, which represents amounts set aside as impounds for future property tax payments, property insurance payments and tenant improvement payments as required by agreements with the Company’s lenders. Deferred Financing Costs The Company capitalizes deferred financing costs such as commitment fees, legal fees and other third-party costs associated with obtaining commitments for financing that result in a closing of such financing, as a contra liability against the respective outstanding debt balance. The Company amortizes these costs over the terms of the respective financing agreements using the effective interest method. The Company expenses unamortized deferred financing costs when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. Derivative Financial Instruments The Company accounts for its derivative instruments in accordance with ASC 815, Derivatives and Hedges The Company measures its derivative instruments and hedging activities at fair value and records them as an asset or liability, depending on its rights or obligations under the applicable derivative contract. For derivatives designated as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged items are recorded in earnings. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivatives designated as cash flow hedges, the effective portions of changes in fair value of the derivatives are reported in other comprehensive income (loss) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedges and ineffective portions of hedges are recognized in earnings in the affected period. The Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of the designated hedged item or transaction. As of December 31, 2018 and 2017, the Company did not have any derivatives designated as cash flow or fair value hedges, nor are derivatives being used for trading or speculative purposes. Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring • Level 1: • Level 2: • Level 3: When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 347,409 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of December 31, 2018 and 2017, the fair value of the notes payable was $1,042,358,884 and $1,011,004,179, respectively, compared to the carrying value of $1,050,155,743 and $993,405,862, respectively. Accounting for Stock-Based Compensation The Company amortizes the fair value of stock-based compensation awards to expense over the vesting period and records any dividend equivalents earned as dividends for financial reporting purposes. Stock-based compensation awards are valued at the fair value on the date of grant and amortized as an expense over the vesting period. Distribution Policy The Company elected to be taxed as, and qualifies as, a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the year ended December 31, 2018, were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2018 to December 31, 2018. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the years ended December 31, 2018 and 2017, the Company declared distributions totaling $0.900 and $0.900 per share of common stock, respectively. Operating Expenses Pursuant to the Company’s Articles of Amendment and Restatement (the “Charter”), the Company is limited in the amount of certain operating expenses it may record on a rolling four-quarter basis to the greater of 2% of average invested assets and 25% of net income. Operating expenses include all costs and expenses incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company, excluding expenses of raising capital, interest payments, taxes, property operating expenses, non-cash Income Taxes The Company elected to be taxed as, and qualifies as, a REIT under the Internal Revenue Code and has operated as such commencing with the taxable year ended December 31, 2014. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including the requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it would be subject to federal income tax on its taxable income at regular corporate income tax rates and generally would not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT. The Company follows ASC 740, Income Taxes Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements were reclassified to conform to the current period presentation. These reclassifications did not change the results of operations of prior periods. On January 1, 2018, the Company adopted ASU 2016-18, Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”). 2014-09 2014-09 2014-09 2015-14, Revenue from Contracts with Customers (Topic 606) 2014-09 2014-09 non-lease 2014-09. In February 2016, the FASB issued ASU 2016-02, Leases 2016-02”), 2016-02 2016-02 2016-02 2016-02, In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements 2018-11”). 2018-11 2016-02. 2018-11 2016-02 2018-11 2018-11, 2018-11 2016-02. 2018-11 2016-02 2018-11 In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), Narrow-scope Improvements for Lessors 2018-20”). 2018-20 non-lease 2016-02 non-lease 2016-02 2016-02. 2018-20 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses 2016-13”) . 2016-13 requires held-to-maturity 2016-13 requires 2016-13 require 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses 2018-19”), Leases 2016-13. 2016-13 is In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash 2016-18”) , 2016-18 2016-18 2016-18, In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (“Subtopic 610-20”): 2017-05”), 610-20 2017-05 610-20 610-20, 2014-09 2017-05 2014-09. 2017-05 2017-05 2017-05. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting 2017-09”). 2017-09 Compensation—Stock Compensation 2017-09 2017-09 2017-09 2017-09. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 2018-13 2018-13 2018-13 2018-13. |
Real Estate
Real Estate | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Real Estate | 3. Real Estate As of June 30, 2019, the Company owned 34 multifamily properties comprising a total of 11,601 apartment homes and one parcel of land held for the development of apartment homes. The total contract acquisition price of the Company’s real estate portfolio was $1,501,958,217, including development costs. As of June 30, 2019 and December 31, 2018, the Company’s portfolio was approximately 93.8% and 93.9% occupied and the average monthly rent was $1,189 and $1,163, respectively. As of June 30, 2019 and December 31, 2018, accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2019 Assets Land Building and Total Real Real Estate Total Real Estate Investments in real estate $ 164,113,072 $ 1,421,049,714 $ 1,585,162,786 $ 2,576,467 $ 1,587,739,253 Less: Accumulated depreciation and amortization — (255,443,023 ) (255,443,023 ) — (255,443,023 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,165,606,691 $ 1,329,719,763 $ 2,576,467 $ 1,332,296,230 December 31, 2018 Assets Land Building and Total Real Estate Held for Real Estate Total Real Estate Investments in real estate $ 164,113,072 $ 1,411,198,832 $ 1,575,311,904 $ — $ 1,575,311,904 Less: Accumulated depreciation and amortization — (218,672,162 ) (218,672,162 ) — (218,672,162 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,192,526,670 $ 1,356,639,742 $ — $ 1,356,639,742 Depreciation and amortization expense was $18,515,635 and $36,797,927 for the three and six months ended June 30, 2019, and $17,629,793 and $35,065,143 for the three and six months ended June 30, 2018, respectively, all of which related to the depreciation of the Company’s buildings and improvements. Real Estate Under Development During the six months ended June 30, 2019, the Company acquired the following land held for the development of apartment homes: Development Name Location Purchase Land Held for Construction Total Carrying Victory Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 107,284 $ 2,576,467 Operating Leases As of June 30, 2019, the Company’s real estate portfolio comprised 11,601 residential apartment homes and was 96.0% leased by a diverse group of residents. The residential lease terms consist of lease durations equal to twelve months or less. Some residential leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $4,288,717 and $4,130,860 as of June 30, 2019 and December 31, 2018, respectively. As of June 30, 2019 and 2018, no tenant represented over 10% of the Company’s annualized base rent. | 3. Real Estate As of December 31, 2018, the Company owned 34 multifamily properties comprising a total of 11,601 apartment homes. The total contract acquisition price of the Company’s real estate portfolio was $1,499,381,750. As of December 31, 2018 and 2017, the Company’s portfolio was approximately 93.9% and 93.1% occupied and the average monthly rent was $1,163 and $1,137, respectively. As of December 31, 2018 and 2017, accumulated depreciation and amortization related to the Company’s consolidated real estate properties were as follows: December 31, 2018 Assets Land Building and Total Real Estate Investments in real estate $ 164,113,072 $ 1,411,198,832 $ 1,575,311,904 Less: Accumulated depreciation and amortization — (218,672,162 ) (218,672,162 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,192,526,670 $ 1,356,639,742 December 31, 2017 Assets Land Building and Total Real Estate Investments in real estate $ 164,113,072 $ 1,394,779,659 $ 1,558,892,731 Less: Accumulated depreciation and amortization — (147,726,630 ) (147,726,630 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,247,053,029 $ 1,411,166,101 Depreciation and amortization expense was $70,993,280, $68,417,556 and $67,991,543 for the years ended December 31, 2018, 2017 and 2016, respectively. Depreciation of the Company’s buildings and improvements was $70,993,280, $67,407,444 and $54,857,243 for the years ended December 31, 2018, 2017 and 2016, respectively. Amortization of the Company’s tenant origination and absorption costs was $0, $1,010,112 and $13,134,300 for the years ended December 31, 2018, 2017 and 2016, respectively. Tenant origination and absorption costs had a weighted-average amortization period as of the date of acquisition of less than one year. As of March 31, 2017, all tenant origination and absorption costs were fully amortized and written off. Operating Leases As of December 31, 2018, the Company’s real estate portfolio comprised 11,601 residential apartment homes and was 95.5% leased by a diverse group of residents. The residential lease terms consist of lease durations equal to twelve months or less. Some residential leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $4,130,860 and $3,613,649 as of December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, no tenant represented over 10% of the Company’s annualized base rent. |
Other Assets
Other Assets | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other Assets | 4. Other Assets As of June 30, 2019 and December 31, 2018, other assets consisted of: June 30, 2019 December 31, 2018 Prepaid expenses $ 479,897 $ 1,690,959 Interest rate cap agreements (Note 10) 8,046 207,769 Escrow deposits for pending real estate acquisitions 500,100 100,000 Other deposits 1,876,559 924,997 Operating lease right-of-use 5,871 — Other assets $ 2,870,473 $ 2,923,725 | 4. Other Assets As of December 31, 2018 and 2017, other assets consisted of: December 31, 2018 2017 Prepaid expenses $ 1,690,959 $ 1,411,353 Interest rate cap agreements 207,769 347,409 Escrow deposits for pending real estate acquisitions 100,000 — Other deposits 924,997 1,053,424 Other assets $ 2,923,725 $ 2,812,186 |
Debt
Debt | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Debt | 5. Debt Mortgage Notes Payable The following is a summary of mortgage notes payable, net secured by real property as of June 30, 2019 and December 31, 2018. June 30, 2019 Number of Maturity Date Range Interest Rate Range Weighted Principal Type Minimum Maximum Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.41 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34% 4.60% 4.45 % 227,646,617 Mortgage notes payable, gross 15 4.43 % 505,078,617 Deferred financing costs, net (2) (3,124,575 ) Mortgage notes payable, net $ 501,954,042 December 31, 2018 Number of Maturity Date Range Interest Rate Range Weighted Principal Type Minimum Maximum Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.53 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34% 4.60% 4.45 % 228,127,333 Mortgage notes payable, gross 15 4.49 % 505,559,333 Deferred financing costs, net (2) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to deferred financing costs as of June 30, 2019 and December 31, 2018 was $1,893,742 and $1,602,290, respectively. Master Credit Facility On July 31, 2018, (the “Closing Date”), 16 indirect wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their lenders for an aggregate principal amount of $479,318,649 and entered into a Master Credit Facility Agreement (“MCFA”) with Newmark Group Inc. (“Facility Lender”) for an aggregate principal amount of $551,669,000. The MCFA provides for three tranches: (i) a fixed rate loan in the aggregate principal amount of $331,001,400 that accrues interest at 4.43% per annum; (ii) a fixed rate loan in the aggregate principal amount of $137,917,250 that accrues interest at 4.57%; and (iii) a variable rate loan in the aggregate principal amount of $82,750,350 that accrues interest at the one-month CME Loans Additionally, on the Closing Date, five of the Company’s indirect wholly-owned subsidiaries terminated the existing mortgage loans with their lenders for an aggregate principal amount of $131,318,742 and entered into new loan agreements with PNC Bank, National Association (“PNC Bank”) for an aggregate principal amount of $160,850,000. Each loan agreement provides for a term loan, a (“CME Loan” and, collectively, the “CME Loans”), with a maturity date of August 1, 2028, unless the maturity date is accelerated with the loan terms. Each CME Loan accrues interest at a fixed rate of 4.43% per annum. The entire outstanding principal balance and any accrued and unpaid interest on each of the CME Loans are due on the maturity date. Interest only payments on the CME Loans are payable monthly in arrears on specified dates as set forth in each loan agreement and interest and principal payments are due beginning September 1, 2023. Monthly payments are due and payable on the first day of each month, commencing September 1, 2018. The Company paid $643,400 in the aggregate in loan origination fees to PNC Bank in connection with the refinancings, and paid the Advisor a loan coordination fee of $804,250. Line of Credit On May 18, 2016, the Company entered into a line of credit facility (the “Line of Credit”) with PNC Bank in an amount not to exceed $65,000,000. The Line of Credit provided for advances (each, an “LOC Loan” and collectively, the “LOC Loans”) solely for the purpose of financing the costs in connection with acquisitions and development of real estate projects and for general corporate purposes (subject to certain debt service and loan to value requirements). The Line of Credit had a maturity date of May 17, 2019, subject to extension (the “LOC Maturity Date”), as further described in the loan agreement (the “LOC Loan Agreement”) entered into by certain of the Company’s wholly-owned subsidiaries with PNC Bank in connection with the acquisition of the Landings of Brentwood Property (the “Mortgaged Property”). Advances made under the Line of Credit were secured by the Mortgaged Property, as evidenced by the LOC Loan Agreement, the Revolving Credit Loan Note (the “LOC Note”), the Deed of Trust and a Guaranty from the Company (the “LOC Guaranty,” together with the LOC Loan Agreement and the LOC Note, the “LOC Loan Documents”). The Company had the option to select the interest rate in respect of the outstanding unpaid principal amount of the LOC Loans from the following options (the “Interest Rate Options”): (1) the sum of the Base Rate (as defined in the LOC Loan Agreement) plus 0.60%, or (2) a rate per annum fixed for the applicable LIBOR Interest Period (as defined in the LOC Loan Agreement) equal to the sum of LIBOR plus 1.60%. The Company terminated the Line of Credit on January 9, 2019. As of June 30, 2019 and December 31, 2018, the advances obtained and certain financing costs incurred under the MCFA and Line of Credit, which is included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of June 30, 2019 December 31, 2018 Principal balance on Line of Credit, gross (1) $ — $ — Principal balance on MCFA, gross 551,669,000 551,669,000 Deferred financing costs, net on MCFA (2) (3,412,202 ) (3,612,316 ) Deferred financing costs, net on Line of Credit (3) — (44,247 ) Credit facilities, net $ 548,256,798 $ 548,012,437 (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2019 and December 31, 2018, was $628,755 and $428,641, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of June 30, 2019 and December 31, 2018, was $0 and $280,753, respectively. Maturity and Interest The following is a summary of the Company’s aggregate maturities as of June 30, 2019: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt (1) $ 1,056,747,617 $ 486,230 $ 1,191,072 $ 5,196,926 $ 5,302,529 $ 6,112,773 $ 1,038,458,087 (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. The Company’s notes payable contain customary financial and non-financial For the three and six months ended June 30, 2019, the Company incurred interest expense of $12,165,781 and $24,399,076, respectively. Interest expense for the three and six months ended June 30, 2019, includes amortization of deferred financing costs of $246,432 and $494,204, net unrealized losses from the change in fair value of interest rate cap agreements of $20,107 and $199,723 and credit facility commitment fees of $0 and $2,137, respectively. For the three and six months ended June 30, 2018, the Company incurred interest expense of $10,231,952 and $19,346,307, respectively. Interest expense for the three and six months ended June 30, 2018, includes amortization of deferred financing costs of $246,966 and $493,241, net unrealized gains from the change in fair value of interest rate cap agreements of $131,281 and $578,894, credit facility commitment fees of $7,479 and $14,877, costs associated with the refinancing of debt of $0 and $21,472 and loan discount amortization of $88,746 and $177,491, respectively. Interest expense of $3,903,574 and $4,006,127 was payable as of June 30, 2019 and December 31, 2018, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. | 5. Debt Mortgage Notes Payable The following is a summary of mortgage notes payable, net secured by real property as of December 31, 2018 and 2017: December 31, 2018 Interest Rate Range Weighted Type Number of Maturity Date Range Minimum Maximum Principal Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88 % 1-Mo LIBOR + 2.28 % 4.53 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.45 % 228,127,333 Mortgage notes payable, gross 15 4.49 % 505,559,333 Discount, net (2) — Deferred financing costs, net (3) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 December 31, 2017 Interest Rate Range Weighted Type Number of Maturity Date Range Minimum Maximum Principal Variable rate (1) 29 12/1/2021 - 9/1/2026 1-Mo LIBOR + 1.61 % 1-Mo LIBOR + 2.48 % 3.58 % $ 888,345,717 Fixed rate 2 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.51 % 67,823,579 Mortgage notes payable, gross 31 3.63 % 956,169,296 Discount, net (2) (2,275,838 ) Deferred financing costs, net (3) (5,336,384 ) Mortgage notes payable, net $ 948,557,074 (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to the debt discount as of December 31, 2018 and 2017 was $0 and $445,702, respectively. (3) Accumulated amortization related to deferred financing costs as of December 31, 2018 and 2017 was $1,602,290 and $2,234,655, respectively. Credit Facilities Refinancing Transactions On July 31, 2018, (the “Closing Date”), 16 indirect wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their lenders for an aggregate principal amount of $479,318,649 and entered into a Master Credit Facility Agreement (“MCFA”) with Newmark Knight Frank (formerly with Berkeley Point Capital LLC) (“Facility Lender”) for an aggregate principal amount of $551,669,000. The MCFA provides for three tranches: (i) a fixed rate loan in the aggregate principal amount of $331,001,400 that accrues interest at 4.43% per annum; (ii) a fixed rate loan in the aggregate principal amount of $137,917,250 that accrues interest at 4.57%; and (iii) a variable rate loan in the aggregate principal amount of $82,750,350 that accrues interest at the one-month On the Closing Date, five indirect wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their lenders for an aggregate principal amount of $131,318,742 and entered into new loan agreements with PNC Bank, National Association (“PNC Bank”) for an aggregate principal amount of $160,850,000. Each loan agreement provides for a term loan (each a “CME Loan” and, collectively the “CME Loans”) with a maturity date of August 1, 2028, unless the maturity date is accelerated with the loan terms. Each CME Loan accrues interest at a fixed rate of 4.43% per annum. The entire outstanding principal balance and any accrued and unpaid interest on each of the CME Loans are due on the maturity date. Interest only payments on the CME Loans are payable monthly in arrears on specified dates as set forth in each loan agreement and interest and principal payments are due beginning September 1, 2023. Monthly payments are due and payable on the first day of each month, commencing September 1, 2018. The Company paid $643,400 in the aggregate in loan origination fees to PNC Bank in connection with the refinancings, and paid the Advisor a loan coordination fee of $804,250. On November 29, 2017, three of the Company’s wholly-owned subsidiaries refinanced their existing loans under the Company’s revolving credit facility for an aggregate principal amount of $93,825,000 and entered into new loan agreements (each a “Tranche 1 Loan Agreement”), with PNC Bank, for an aggregate principal amount of $100,752,000, (the “November Refinancing Transactions”). Additionally, on December 29, 2017, another three of the Company’s wholly-owned subsidiaries refinanced their existing loans under the revolving credit facility for an aggregate principal amount of $92,475,000 and entered into new loan agreements, (each a “Tranche 2 Loan Agreement” and, together with the Tranche 1 Loan Agreement, the “Loan Agreements”) with PNC Bank for an aggregate principal amount of $97,080,000, (the “December Refinancing Transactions,” and, together with the November Refinancing Transactions, the “2017 Refinancing Transactions”). In the 2017 Refinancing Transactions, each Loan Agreement was made pursuant to the Freddie Mac Capital Markets Execution Program (“CME”), as evidenced by a multifamily note. Pursuant to the CME, PNC Bank originates the mortgage loan and then transfers the loan to the Federal Home Loan Mortgage Corporation. Each Loan Agreement refinanced in November and December provides for a term loan with a maturity of December 1, 2024 or January 1, 2025, respectively, unless the maturity date is accelerated in accordance with its terms. Each loan refinanced in November and December accrues interest at the one-month Revolving Credit Facility On August 26, 2015, the Company entered into a revolving credit facility (the “Credit Facility”) with PNC Bank in an amount not to exceed $200,000,000, which provided for advances to purchase properties or refinance existing properties from time to time (subject to certain debt service and loan to value requirements). The Credit Facility had a maturity date of September 1, 2020, subject to extension (the “Maturity Date”). The maximum amount available to be drawn under the Credit Facility could have been increased up to $350,000,000 at any time during the period from January 1, 2016 to 12 months prior to the Maturity Date, as further described in the Credit Agreement (the “Credit Agreement”) entered into by certain of the Company’s wholly-owned subsidiaries with PNC Bank in connection with property acquisitions. For each advance drawn under the Credit Facility, an Addition Fee, as defined in the Credit Agreement, was incurred. Advances made under the Credit Facility were secured by the property for which such advances were used (each a “Loan” and collectively the “Loans”), as evidenced by the Credit Agreement, Multifamily Loan and Security Agreement (the “Loan and Security Agreement”), the Multifamily Revolving Credit Note (the “Note”) and a Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the “Mortgage”) and a Guaranty from the Company (the “Guaranty,” together with the Credit Agreement, the Loan and Security Agreement, the Note and the Mortgage, the “Loan Documents”). Each Loan was purchased from PNC Bank by the Federal Home Loan Mortgage Corporation (“Freddie Mac”). As of December 31, 2018, the Company had no outstanding balance under the Credit Facility. The Company is in the process of terminating the Credit Facility. Interest on the outstanding principal balances of the loans accrued at the one-month Revolving Line of Credit On May 18, 2016, the Company entered into a line of credit facility (the “Line of Credit”) with PNC Bank in an amount not to exceed $65,000,000. The Line of Credit provided for advances (each, an “LOC Loan” and collectively, the “LOC Loans”) solely for the purpose of financing the costs in connection with acquisitions and development of real estate projects and for general corporate purposes (subject to certain debt service and loan to value requirements). The Line of Credit had a maturity date of May 17, 2019, subject to extension (the “LOC Maturity Date”), as further described in the loan agreement (the “LOC Loan Agreement”) entered into by certain of the Company’s wholly-owned subsidiaries with PNC Bank in connection with the acquisition of the Landings of Brentwood Property (the “Mortgaged Property”). Advances made under the Line of Credit were secured by the Mortgaged Property, as evidenced by the LOC Loan Agreement, the Revolving Credit Loan Note (the “LOC Note”), the Deed of Trust and a Guaranty from the Company (the “LOC Guaranty,” together with the LOC Loan Agreement and the LOC Note, the “LOC Loan Documents”). The Company had the option to select the interest rate in respect of the outstanding unpaid principal amount of the LOC Loans from the following options (the “Interest Rate Options”): (1) the sum of the Base Rate (as defined in the LOC Loan Agreement) plus 0.60%, or (2) a rate per annum fixed for the applicable LIBOR Interest Period (as defined in the LOC Loan Agreement) equal to the sum of LIBOR plus 1.60%. The Company could have selected different Interest Rate Options and different LIBOR Interest Periods to apply simultaneously to the LOC Loans comprising of different Borrowing Tranches (as defined in the LOC Loan Agreement) and could have converted to or renewed one or more Interest Rate Options with respect to all or any portion of the LOC Loans comprising any borrowing tranche provided that there could not have been at any time outstanding more than eight Borrowing Tranches. Monthly interest payments were due and payable in arrears on the first day of each month and on the LOC Maturity Date. The entire outstanding principal balance and any accrued and unpaid interest on the LOC Loans were due and payable in full on the LOC Maturity Date. In addition to monthly interest payments, the Company paid PNC Bank a non-refundable As of December 31, 2018 and 2017, the advances obtained and certain financing costs incurred under the MCFA and the Line of Credit, which are included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table: Amount of Advance as of 2018 2017 Principal balance on revolving line of credit, gross (1) $ — $ 45,000,000 Principal balance on master credit facility, gross 551,669,000 — Deferred financing costs, net on master credit facility (2) (3,612,316 ) — Deferred financing costs, net on revolving line of credit (3) (44,247 ) (151,212 ) Credit facilities, net $ 548,012,437 $ 44,848,788 (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of December 31, 2018 and 2017, was $428,641 and $0, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of December 31, 2018 and 2017, was $280,753 and $173,788, respectively. Maturity and Interest The following is a summary of the Company’s aggregate maturities as of December 31, 2018: Maturities During the Years Ending December 31, Contractual Obligations Total 2019 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt obligations (1) $ 1,057,228,333 $ 966,946 $ 1,186,787 $ 5,099,404 $ 5,204,834 $ 6,018,069 $ 1,038,752,293 (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. The Company’s notes payable contain customary financial and non-financial For the years ended December 31, 2018, 2017 and 2016, the Company incurred interest expense of $44,374,484, $34,944,074 and $26,060,155, respectively. Interest expense for the years ended December 31, 2018, 2017 and 2016 includes amortization of deferred financing costs of $1,056,545, $1,012,380 and $937,075, net unrealized (gain) loss from the change in fair value of interest rate cap agreements of $(87,160), $447,668 and $270,222, amortization of loan discount of $207,074, $354,984 and $90,718, seasoning fees on the Credit Facility of $0, $85,426 and $0, Credit Facility commitment fees of $57,007, $45,680 and $65,302 and costs associated with the refinancing of debt of $587,520, $664,880 and $0, respectively. Interest expense of $4,006,127 and $2,581,941 was payable as of December 31, 2018 and 2017, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Stockholders' Equity | 6. Stockholders’ Equity General Under the Company’s Articles of Amendment and Restatement (the “Charter”), the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,999,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of convertible stock with a par value of $0.01 per share and 100,000,000 shares designated as preferred stock with a par value of $0.01 per share. Common Stock The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. On September 3, 2013, the Company issued 13,500 shares of common stock to the Sponsor for $202,500. From inception through March 24, 2016, the date of the termination of the Public Offering, the Company had issued 48,625,651 shares of common stock in its Public Offering for offering proceeds of $640,012,497, including 1,011,561 shares of common stock issued pursuant to the DRP for total proceeds of $14,414,752, net of offering costs of $84,837,134. Following the termination of the Public Offering, the Company continues to offer shares pursuant to the DRP. As of June 30, 2019, the Company had issued 53,615,560 shares of common stock for offering proceeds of $714,260,104, including 6,001,533 shares of common stock issued pursuant to the DRP for total proceeds of $88,662,359, net of offering costs of $84,837,134. The offering costs primarily consisted of selling commissions and dealer manager fees paid in the Primary Offering. As further discussed in Note 8 (Incentive Award Plan and Independent Director Compensation), the shares of restricted common stock vest and become non-forfeitable non-forfeitable The issuance and vesting activity for the six months ended June 30, 2019 and year ended December 31, 2018, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended Year Ended Nonvested shares at the beginning of the period 7,497 7,497 Granted shares — 4,998 Vested shares — (4,998 ) Nonvested shares at the end of the period 7,497 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2019 and year ended December 31, 2018 was as follows: Grant Year Weighted Average Fair Value 2018 $ 15.18 2019 n/a Included in general and administrative expenses is $13,896 and $27,792 for the three and six months ended June 30, 2019, and $13,839 and $27,678 for the three and six months ended June 30, 2018, respectively, for compensation expense related to the issuance of restricted common stock. As of June 30, 2019, the compensation expense related to the issuance of the restricted common stock not yet recognized was $62,467. The weighted average remaining term of the restricted common stock was approximately 0.8 years as of June 30, 2019. As of June 30, 2019, no shares of restricted common stock issued to the independent directors have been forfeited. Convertible Stock The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000. The Convertible Stock will convert into shares of common stock if and when: (A) the Company has made total distributions on the then-outstanding shares of its common stock equal to the original issue price of those shares plus an aggregate 6.0% cumulative, non-compounded, non-renewal non-compounded, as-converted Preferred Stock The Charter also provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter without the approval of the stockholders to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of June 30, 2019 and December 31, 2018, no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company’s board of directors has approved the DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The purchase price per share under the DRP was initially $14.25. On March 12, 2019, March 14, 2018 and February 14, 2017, the Company’s board of directors approved a price per share for the DRP of $15.84, $15.18 and $14.85, effective April 1, 2019, April 1, 2018 and March 1, 2017, respectively, in connection with the determination of an estimated value per share of the Company’s common stock. The Company’s board of directors may again, in its sole discretion, from time to time, change this price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. No sales commissions or dealer manager fees are payable on shares sold through the DRP. The Company’s board of directors may amend, suspend or terminate the DRP at its discretion at any time upon ten days’ notice to the Company’s stockholders. Following any termination of the DRP, all subsequent distributions to stockholders will be made in cash. Share Repurchase Plan and Redeemable Common Stock The Company’s share repurchase plan may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase plan until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. The purchase price per share for shares repurchased pursuant to the Company’s share repurchase plan will be further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the Repurchase Date (defined below) as a result of the sale of one or more of the Company’s assets that constitutes a return of capital as a result of such sales. Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (“Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior to the Repurchase Date. The Company is not obligated to repurchase shares of its common stock under the share repurchase plan. The share repurchase plan limits the number of shares to be repurchased in any calendar year to the lesser of (1) 5% of the weighted average number of shares of common stock outstanding during the prior calendar year and (2) those that could be funded from the net proceeds from the sale of shares under the DRP in the prior calendar year, plus such additional funds as may be reserved for that purpose by the Company’s board of directors. Such sources of funds could include cash on hand, cash available from borrowings and cash from liquidations of securities investments as of the end of the applicable month, to the extent that such funds are not otherwise dedicated to a particular use, such as working capital, cash distributions to stockholders or purchases of real estate assets. The Company’s board of directors has further limited the amount of shares that may be repurchased pursuant to the share repurchase plan to $2,000,000 per quarter. There is no fee in connection with a repurchase of shares of the Company’s common stock pursuant to the Company’s share repurchase plan. As of June 30, 2019, the Company had recognized repurchases payable of $2,000,000, which is included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets. During the three and six months ended June 30, 2019, the Company repurchased a total of 135,885 and 274,845 shares with a total repurchase value of $2,000,000 and $4,000,000, and received requests for repurchases of 355,607 and 796,515 shares with a total repurchase value of $5,210,102 and $11,623,936, respectively. During the three and six months ended June 30, 2018, the Company repurchased a total of 144,440 and 346,610 shares with a total repurchase value of $2,000,000 and $4,886,216, and received requests for the repurchase of 231,575 and 541,527 shares with a total repurchase value of $3,212,937 and $7,475,664, respectively. As of June 30, 2019 and 2018, the Company’s total outstanding repurchase requests received that were subject to the Company’s limitations on repurchases were 1,778,162 shares and 379,816 shares, respectively, with a total net repurchase value of $25,978,431 and $5,224,754, respectively. The Company cannot guarantee that the funds set aside for the share repurchase plan will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to repurchase requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the Company will treat the shares that have not been repurchased as a request for repurchase in the following quarter pursuant to the limitations of the share repurchase plan and when sufficient funds are available, unless the stockholder withdraws the request for repurchase. Such pending requests will be honored among all requests for repurchases in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death or disability; and, next, pro rata as to other repurchase requests. The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the share repurchase plan at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the share repurchase plan are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase plan is in the best interest of the Company’s stockholders. Therefore, a stockholder may not have the opportunity to make a repurchase request prior to any potential termination or suspension of the Company’s share repurchase plan. The share repurchase plan will terminate in the event that a secondary market develops for the Company’s shares of common stock. Pursuant to the share repurchase plan, for the three and six months ended June 30, 2019, the Company had no amounts to reclassify from temporary equity to permanent equity. For the three and six months ended June 30, 2018, the Company reclassified $0 and $37,028,102, net of $2,000,000 and $4,886,216 of fulfilled redemption requests, respectively, from temporary equity to permanent equity, which is included in additional paid-in Distributions The Company’s long-term goal is to pay distributions solely from cash flow from operations. However, because the Company may receive income from interest or rents at various times during the Company’s fiscal year and because the Company may need cash flow from operations during a particular period to fund capital expenditures and other expenses, the Company expects that at times during the Company’s operational stage, the Company will declare distributions in anticipation of cash flow that the Company expects to receive during a later period, and the Company expects to pay these distributions in advance of its actual receipt of these funds. The Company’s board of directors has the authority under its organizational documents, to the extent permitted by Maryland law, to fund distributions from sources such as borrowings, offering proceeds or advances and the deferral of fees and expense reimbursements by the Advisor, in its sole discretion. The Company has not established a limit on the amount of proceeds it may use to fund distributions from sources other than cash flow from operations. If the Company pays distributions from sources other than cash flow from operations, the Company will have fewer funds available and stockholders’ overall return on their investment in the Company may be reduced. To maintain the Company’s qualification as a REIT, the Company must make aggregate annual distributions to its stockholders of at least 90% of its REIT taxable income (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). If the Company meets the REIT qualification requirements, the Company generally will not be subject to federal income tax on the income that the Company distributes to its stockholders each year. Distributions Declared The Company’s board of directors approved a cash distribution that accrues at a rate of $0.002466 per day for each share of the Company’s common stock during each of the three and six months ended June 30, 2019 and 2018, which, if paid over a 365-day Distributions declared for the three and six months ended June 30, 2019, were $11,684,723 and $23,196,260, including $5,286,618 and $10,630,544, or 333,752 and 685,789 shares of common stock, respectively, attributable to the DRP. Distributions declared for the three and six months ended June 30, 2018 were $11,485,650 and $22,798,113, including $5,698,302 and $11,369,398, or 375,382 and 757,274 shares of common stock, respectively, attributable to the DRP. As of June 30, 2019 and December 31, 2018, $3,856,773 and $3,953,499 of distributions declared were payable, which included $1,734,110 and $1,860,828, or 109,477 shares and 122,584 shares of common stock, attributable to the DRP, respectively. Distributions Paid For the three and six months ended June 30, 2019, the Company paid cash distributions of $6,419,268 and $12,535,724, which related to distributions declared for each day in the period from March 1, 2019 through May 31, 2019 and December 1, 2018 through May 31, 2019, respectively. Additionally, for the three and six months ended June 30, 2019, 339,564 shares and 693,883 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,378,696 and $10,757,262, respectively. For the three and six months ended June 30, 2019, the Company paid total distributions of $11,797,964 and $23,292,986, respectively. For the three and six months ended June 30, 2018, the Company paid cash distributions of $5,824,954 and $11,422,475, which related to distributions declared for each day in the period from March 1, 2018 through May 31, 2018 and December 1, 2017 through May 31, 2018, respectively. Additionally, for the three and six months ended June 30, 2018, 382,875 shares and 766,783 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,768,910 and $11,469,940, respectively. For the three and six months ended June 30, 2018, the Company paid total distributions of $11,593,864 and $22,892,415, respectively. | 6. Stockholders’ Equity General Under the Charter, the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,999,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of convertible stock with a par value of $0.01 per share and 100,000,000 shares designated as preferred stock with a par value of $0.01 per share. Common Stock The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. On September 3, 2013, the Company issued 13,500 shares of common stock to the Sponsor for $202,500. From inception through March 24, 2016, the date of the termination of the Public Offering, the Company had issued 48,625,651 shares of common stock in its Public Offering for offering proceeds of $640,012,497, including 1,011,561 shares of common stock issued pursuant to the DRP for total proceeds of $14,414,752, net of offering costs of $84,837,134. Following the termination of the Public Offering, the Company continues to offer shares pursuant to the DRP. As of December 31, 2018, the Company had issued 52,921,670 shares of common stock for offering proceeds of $703,502,840, including 5,307,643 shares of common stock issued pursuant to the DRP for total proceeds of $77,905,095, net of offering costs of $84,837,134. The Offering costs primarily consisted of selling commissions and dealer manager fees. As further discussed in Note 8 (Incentive Award Plan and Independent Director Compensation), the shares of restricted common stock vest and become non-forfeitable non-forfeitable The issuance and vesting activity for the years ended December 31, 2018, 2017 and 2016 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with the Company raising $2,000,000 in the Public Offering and the independent directors’ re-election Year Ended December 31, 2018 2017 2016 Nonvested shares at the beginning of the period 7,497 9,997 11,247 Granted shares 4,998 4,998 4,998 Vested shares (4,998 ) (7,498 ) (6,248 ) Nonvested shares at the end of the period 7,497 7,497 9,997 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the years ended December 31, 2018, 2017 and 2016 was as follows: Grant Year Weighted Average Fair Value 2016 $ 14.46 2017 14.85 2018 15.18 Included in general and administrative expenses is $74,617, $79,858 and $100,060 for the years ended December 31, 2018, 2017 and 2016, respectively, for compensation expense related to the issuance of restricted common stock. As of December 31, 2018, the compensation expense related to the issuance of the restricted common stock not yet recognized was $90,259. The weighted average remaining term of the restricted common stock was approximately one year as of December 31, 2018. As of December 31, 2018, no shares of restricted common stock issued to the independent directors have been forfeited. Convertible Stock The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000. The Convertible Stock will convert into shares of common stock if and when: (A) the Company has made total distributions on the then-outstanding shares of its common stock equal to the original issue price of those shares plus an aggregate 6.0% cumulative, non-compounded, non-renewal non-compounded, as-converted Preferred Stock The Charter also provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter without the approval of the stockholders to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of December 31, 2018 and 2017, no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company’s board of directors has approved the DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The purchase price per share under the DRP was initially $14.25. On March 12, 2019, March 14, 2018 and February 14, 2017, the Company’s board of directors determined a price per share for the DRP of $15.84, $15.18 and $14.85, effective April 1, 2019, April 1, 2018 and March 1, 2017, respectively, in connection with the determination of an estimated value per share of the Company’s common stock. The Company’s board of directors may again, in its sole discretion, from time to time, change this price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. No sales commissions or dealer manager fees are payable on shares sold through the DRP. The Company’s board of directors may amend, suspend or terminate the DRP at its discretion at any time upon ten days’ notice to the Company’s stockholders. Following any termination of the DRP, all subsequent distributions to stockholders will be made in cash. Share Repurchase Plan and Redeemable Common Stock The Company’s share repurchase plan may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase plan until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recent publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. The “Estimated Value Per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. The purchase price per share for shares repurchased pursuant to the Company’s share repurchase plan will be further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the Repurchase Date (defined below) as a result of the sale of one or more of the Company’s assets that constitutes a return of capital as a result of such sales. Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (“Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior to the Repurchase Date. During the year ended December 31, 2018, the Company repurchased a total of 631,332 shares with a total repurchase value of $8,886,216 and received requests for repurchases of 1,814,302 shares with a total repurchase value of $25,249,054. During the year ended December 31, 2017, the Company repurchased a total of 439,675 shares with a total repurchase value of $6,190,737 and received requests for the repurchase of 548,395 shares with a total repurchase value of $7,766,028, respectively. As of December 31, 2018 and 2017, the Company’s total outstanding repurchase requests received that were subject to the Company’s limitations on repurchases (discussed below) were 1,334,360 shares and 548,395 shares, respectively, with a total net repurchase value of $18,591,460 and $7,766,028, respectively. The Company cannot guarantee that the funds set aside for the share repurchase plan will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to repurchase requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the Company will treat the shares that have not been repurchased as a request for repurchase in the following quarter pursuant to the limitations of the share repurchase plan and when sufficient funds are available, unless the stockholder withdraws the request for repurchase. Such pending requests will be honored among all requests for repurchases in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death or disability; and, next, pro rata as to other repurchase requests. The Company is not obligated to repurchase shares of its common stock under the share repurchase plan. The share repurchase plan limits the number of shares to be repurchased in any calendar year to (1) 5% of the weighted average number of shares of common stock outstanding during the prior calendar year and (2) those that could be funded from the net proceeds from the sale of shares under the DRP in the prior calendar year, plus such additional funds as may be reserved for that purpose by the Company’s board of directors. Such sources of funds could include cash on hand, cash available from borrowings and cash from liquidations of securities investments as of the end of the applicable month, to the extent that such funds are not otherwise dedicated to a particular use, such as working capital, cash distributions to stockholders or purchases of real estate assets. The Company’s board of directors has further limited the amount of shares that may be repurchased pursuant to the share repurchase plan to $2,000,000 per quarter. There is no fee in connection with a repurchase of shares of the Company’s common stock pursuant to the Company’s share repurchase plan. As of December 31, 2018, the Company has recognized repurchases payable of $2,000,000, which is included in accounts payable and accrued liabilities on the accompanying consolidated balance sheets. The Company’s board of directors may, in its sole discretion, further amend, suspend or terminate the share repurchase plan at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the share repurchase plan are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase plan is in the best interest of the Company’s stockholders. Therefore, a stockholder may not have the opportunity to make a repurchase request prior to any potential termination or suspension of the Company’s share repurchase plan. The share repurchase plan will terminate in the event that a secondary market develops for the Company’s shares of common stock. Pursuant to the share repurchase plan, for the year ended December 31, 2018, the Company reclassified $37,028,102, net of $8,886,216 of fulfilled redemption requests, from temporary equity to permanent equity, which is included as additional paid-in Distributions The Company’s long-term policy is to pay distributions solely from cash flow from operations. However, because the Company may receive income from interest or rents at various times during the Company’s fiscal year and because the Company may need cash flow from operations during a particular period to fund capital expenditures and other expenses, the Company expects that from time to time during the Company’s operational stage, the Company will declare distributions in anticipation of cash flow that the Company expects to receive during a later period, and the Company expects to pay these distributions in advance of its actual receipt of these funds. The Company’s board of directors has the authority under its organizational documents, to the extent permitted by Maryland law, to fund distributions from sources such as borrowings, offering proceeds or advances and the deferral of fees and expense reimbursements by the Advisor, in its sole discretion. The Company has not established a limit on the amount of proceeds it may use to fund distributions from sources other than cash flow from operations. If the Company pays distributions from sources other than cash flow from operations, the Company will have fewer funds available and stockholders’ overall return on their investment in the Company may be reduced. To maintain the Company’s qualification as a REIT, the Company must make aggregate annual distributions to its stockholders of at least 90% of its REIT taxable income (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). If the Company meets the REIT qualification requirements, the Company generally will not be subject to federal income tax on the income that the Company distributes to its stockholders each year. Distributions Declared The Company’s board of directors approved a cash distribution that accrued at a rate of $0.002466 per day for each share of the Company’s common stock during the years ended December 31, 2018 and 2017, which, if paid over a 365-day Distributions declared for the years ended December 31, 2018 and 2017 were $46,179,769 and $45,321,063, including $22,603,893 and $23,316,731, or 1,497,359 shares and 1,573,774 shares of common stock, respectively, attributable to the DRP. As of December 31, 2018 and 2017, $3,953,499 and $3,886,730 of distributions declared were payable, which included $1,860,828 and $1,970,910, or 122,584 shares and 132,721 shares of common stock, attributable to the DRP, respectively. Distributions Paid For the years ended December 31, 2018 and 2017, the Company paid cash distributions of $23,399,025 and $21,884,846, which related to distributions declared for each day in the period from December 1, 2017 through November 30, 2018 and December 1, 2016 through November 30, 2017, respectively. Additionally, for the years ended December 31, 2018 and 2017, 1,507,497 and 1,578,832 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $22,713,975 and $23,338,092, respectively. For the years ended December 31, 2018 and 2017, the Company paid total distributions of $46,113,000 and $45,222,938, respectively. |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Related Party Arrangements | 7. Related Party Arrangements The Company has entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments and the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, as well as acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. Amounts attributable to the Advisor and its affiliates incurred (earned) for the three and six months ended June 30, 2019 and 2018, and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of June 30, 2019 and December 31, 2018, are as follows: Incurred (Earned) For the Incurred (Earned) For the Payable (Prepaid) as of 2019 2018 2019 2018 June 30, December 31, Consolidated Statements of Operations: Expensed Investment management fees (1) $ 4,174,176 $ 4,281,765 $ 8,334,328 $ 8,544,018 $ 947,431 $ 55,865 Acquisition expenses (2) 92,661 — 92,661 — — — Property management: Fees (1) 1,245,150 1,221,040 2,479,427 2,412,207 416,484 410,424 Reimbursement of onsite personnel (3) 3,776,431 3,653,858 7,504,136 7,216,593 732,049 768,107 Reimbursement of other (1) 846,632 323,898 1,517,851 667,156 103,973 41,989 Reimbursement of property operations (3) 26,600 22,994 49,742 46,643 — — Reimbursement of property G&A (2) 26,845 10,388 61,832 19,687 — — Other operating expenses (2) 413,043 279,690 828,151 541,101 173,507 93,740 Insurance proceeds (4) — — — — — (75,000 ) Property insurance (5) 359,663 379,095 641,978 758,189 — (101,573 ) Rental revenue (6) (14,745 ) — (29,490 ) — — — Consolidated Balance Sheets: Capitalized Acquisition fees (7) 48,343 — 48,343 — — — Acquisition expenses (8) 154,477 — 218,712 — 20,000 1,607 Capital expenditures (9) — 1,673 — 7,295 — — Construction management: Fees (9) 303,518 51,659 461,417 188,102 44,231 10,281 Reimbursement of labor costs (9) 110,945 267,796 261,305 500,387 11,211 29,203 Additional paid-in Selling commissions — — — — 185,954 299,952 $ 11,563,739 $ 10,493,856 $ 22,470,393 $ 20,901,378 $ 2,634,840 $ 1,534,595 (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in other income in the accompanying consolidated statements of operations. (5) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (6) Included in rental income in the accompanying consolidated statements of operations. (7) Included in real estate held for development in the accompanying consolidated balance sheets. (8) Included in total real estate, net in the accompanying consolidated balance sheets following the adoption of ASU 2017-01 (9) Included in building and improvements in the accompanying consolidated balance sheets. Investment Management Fee The Company pays the Advisor a monthly investment management fee equal to one-twelfth Acquisition Fees and Expenses The Company pays the Advisor an acquisition fee equal to 1.0% of the cost of investment, which includes the amount actually paid or budgeted to fund the acquisition, origination, development, construction or improvement of any real property or real estate-related asset acquired. In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor and amounts the Advisor pays to third parties in connection with the selection, evaluation, acquisition and development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets. The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 4.5% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 4.5% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a Financial Industry Regulatory Authority, Inc. (“FINRA”) member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer. Loan Coordination Fee The Company pays the Advisor or its affiliate a loan coordination fee equal to 1.0% of the initial amount of the new debt financed or outstanding debt assumed in connection with the acquisition, development, construction, improvement or origination of a property or a real estate-related asset. In addition, in connection with any financing or the refinancing of any debt (in each case, other than identified at the time of the acquisition of a property or a real estate-related asset), the Company pays the Advisor or its affiliate a loan coordination fee equal to 0.75% of the amount of debt financed or refinanced. Property Management Fees and Expenses The Company has entered into property management agreements (each, as amended from time to time, a “Property Management Agreement”) with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the management of each of the Company’s properties. At June 30, 2019, the property management fee payable with respect to each property under the Property Management Agreements ranged from 2.50% to 3.0% of the annual gross revenue collected at the property, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. Each Property Management Agreement has an initial one-year month-to-month gives 60-days’ In addition to the property management fee, the Property Management Agreements also specify certain other reimbursements payable to the Property Manager for benefit administration, information technology infrastructure, licenses, support and training services and capital expenditures. The Company also reimburses the Property Manager for the salaries and related benefits of on-site Construction Management Fees and Expenses The Company has entered into construction management agreements (each, a “Construction Management Agreement”) with Pacific Coast Land & Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with capital improvements and renovation or value-enhancement projects for certain properties the Company acquires. The construction management fee payable with respect to each property under the Construction Management Agreements ranges from 8.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement can be terminated by either party with 30 days’ prior written notice to the other party. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred as such costs relate to capital improvements and renovations for apartment homes taken out of service while they undergo the planned renovation. The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations. Development Services Agreement In some instances, the Company may enter into a Development Services Agreement with Steadfast Multifamily Development, Inc., an affiliate of the Advisor, (the “Developer”), in connection with a development project, pursuant to which the Developer will receive a development fee and reimbursement for certain expenses for overseeing the development project. The Company entered into a Development Services Agreement with the Developer in connection with the Victory Station development project that provided for a development fee equal to 4% of the hard and soft costs of the development project as specified in the Development Services Agreement. 75% of the development fee will be paid in 14 monthly installments and the remaining 25% will be paid upon delivery by the Developer to us of a certificate of occupancy. As of June 30, 2019, no amounts had been paid pursuant to the Development Services Agreement. Property Insurance The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor. In addition, the Company deposits amounts with an affiliate of the Sponsor to cover the cost of property and property related insurance across certain properties of the Company. Other Operating Expense Reimbursement In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring 12-month non-cash (d) non-cash As of June 30, 2019, the Company’s total operating expenses, as defined above, did not exceed the 2%/25% Limitation. Disposition Fee If the Advisor or its affiliates provide a substantial amount of services in connection with the sale of a property or real estate-related asset as determined by a majority of the Company’s independent directors, the Company will pay the Advisor or its affiliates a fee equivalent to one-half Selling Commissions and Dealer Manager Fees The Company entered into the Dealer Manager Agreement with the Dealer Manager in connection with the Public Offering. The Company paid the Dealer Manager up to 7% and 3% of the gross offering proceeds from the Primary Offering as selling commissions and dealer manager fees, respectively. The Dealer Manager reallowed 100% of sales commissions earned to participating broker-dealers. The Dealer Manager could also reallow to any participating broker-dealer a portion of the dealer manager fee that was attributable to that participating broker-dealer for certain marketing costs of that participating broker-dealer. The Dealer Manager negotiated the reallowance of the dealer manager fee on a case-by-case paid-in | 7. Related Party Arrangements The Company has entered into the Advisory Agreement with the Advisor and a Dealer Manager Agreement with the Dealer Manager. Pursuant to the Advisory Agreement and Dealer Manager Agreement, the Company is or was obligated to pay the Advisor and the Dealer Manager specified fees upon the provision of certain services related to the Public Offering, the investment of funds in real estate and real estate-related investments and the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, as well as acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. Amounts attributable to the Advisor and its affiliates incurred (earned) for the years ended December 31, 2018, 2017 and 2016 are as follows: Incurred (Earned) For the Year Ended December 31, 2018 2017 2016 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 15,743,185 $ 16,904,458 $ 15,096,243 Acquisition fees (1) — — 2,766,209 Acquisition expenses (2) — — 782,047 Loan coordination fees (1) 3,562,595 1,483,740 1,539,500 Property management: Fees (1) 4,886,436 4,706,698 4,140,513 Reimbursement of onsite personnel (3) 14,959,964 14,194,648 13,013,601 Other fees (1) 1,784,010 1,248,100 1,087,408 Other fees—property operations (3) 82,461 103,320 — Other fees—G&A (4) 49,916 92,488 66,064 Other operating expenses (4) 1,175,061 1,449,733 1,231,329 Insurance proceeds (5) (150,000 ) (172,213 ) — Property insurance (6) 1,394,218 909,568 174,281 Rental revenue (7) (21,589 ) — — Consolidated Balance Sheets: Capitalized Acquisition expenses (8) 26,113 — — Capital expenditures (9) 7,295 28,691 23,178 Construction management: Fees (9) 585,532 1,453,859 3,601,084 Reimbursement of labor costs (9) 908,206 2,551,463 3,804,318 Deferred financing costs (10) 18,923 — — Additional paid-in Other offering costs reimbursement — — 4,165,911 Selling commissions — — 12,017,003 Dealer manager fees — — 5,642,377 $ 45,012,326 $ 44,954,553 $ 69,151,066 (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in acquisition costs in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in general and administrative expenses in the accompanying consolidated statements of operations. (5) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in total real estate, cost in the accompanying consolidated balance sheets following the adoption of ASU 2017-01 (9) Included in building and improvements in the accompanying consolidated balance sheets. (10) Included in credit facilities, net in the accompanying consolidated balance sheets. Amounts attributable to the Advisor and its affiliates paid (received) for the years ended December 31, 2018, 2017 and 2016 are as follows: Paid (Received) During the Year Ended December 31, 2018 2017 2016 Consolidated Statements of Operations: Expensed Investment management fees $ 15,687,320 $ 18,317,568 $ 14,734,308 Acquisition fees — — 3,276,927 Acquisition expenses — — 927,647 Loan coordination fees 4,290,695 755,640 1,539,500 Property management: Fees 4,872,734 4,685,475 4,053,502 Reimbursement of onsite personnel 14,958,751 14,022,282 12,831,296 Other fees 1,783,971 1,245,748 1,078,882 Other fees—property operations 82,461 103,320 — Other fees—G&A 49,916 92,488 66,064 Other operating expenses 1,157,836 1,585,631 1,085,134 Insurance proceeds (75,000 ) (172,213 ) — Property insurance 1,323,074 1,001,744 230,241 Rental revenue (21,589 ) — — Consolidated Balance Sheets: Capitalized Acquisition expenses 24,507 — — Capital expenditures 7,295 28,691 23,178 Construction management: Fees 700,410 1,431,290 3,625,869 Reimbursement of labor costs 941,879 2,665,299 4,083,432 Deferred financing costs 18,923 — — Additional paid-in Other offering costs reimbursement — — 5,485,093 Selling commissions 262,387 234,942 11,219,722 Dealer manager fees — — 5,642,377 $ 46,065,570 $ 45,997,905 $ 69,903,172 Amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of December 31, 2018 and 2017, are as follows: Payable (Prepaid) as of December 31, 2018 2017 Consolidated Statements of Operations: Expensed Investment management fees $ 55,865 $ — Loan coordination fees — 728,100 Property management: Fees 410,424 396,722 Reimbursement of onsite personnel 768,107 766,894 Other fees 41,989 41,950 Other operating expenses 93,740 76,515 Insurance proceeds (75,000 ) — Property insurance (101,573 ) (172,717 ) Consolidated Balance Sheets: Capitalized Acquisition expenses 1,607 — Construction management: Fees 10,281 125,159 Reimbursement of labor costs 29,203 62,876 Additional paid-in Selling commissions 299,952 562,339 $ 1,534,595 $ 2,587,838 Investment Management Fee The Company pays the Advisor a monthly investment management fee equal to one-twelfth Acquisition Fees and Expenses The Company pays the Advisor an acquisition fee equal to 1.0% of the cost of investment, which includes the amount actually paid or budgeted to fund the acquisition, origination, development, construction or improvement (i.e. value-enhancement) of any real property or real estate-related asset acquired. In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor and amounts the Advisor pays to third parties in connection with the selection, evaluation, acquisition and development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets. The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 4.5% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 4.5% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer. Loan Coordination Fee The Company pays the Advisor or its affiliate a loan coordination fee equal to 1.0% of the initial amount of the new debt financed or outstanding debt assumed in connection with the acquisition, development, construction, improvement or origination of a property or a real estate-related asset. In addition, in connection with any financing or the refinancing of any debt (in each case, other than identified at the time of the acquisition of a property or a real estate-related asset), the Company pays the Advisor or its affiliate a loan coordination fee equal to 0.75% of the amount of debt financed or refinanced. Property Management Fees and Expenses The Company has entered into property management agreements (each, as amended from time to time, a “Property Management Agreement”) with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the management of each of the Company’s properties. The property management fee payable with respect to each property under the Property Management Agreements at December 31, 2018 ranged from 2.5% to 3.0% of the annual gross revenue collected at the property, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. Each Property Management Agreement has an initial one-year month-to-month In addition to the property management fee, the Property Management Agreements specify certain other fees payable to the Property Manager for benefit administration, information technology infrastructure, licenses, support and training services and capital expenditures. The Company also reimburses the Property Manager for the salaries and related benefits of on-site Construction Management Fees and Expenses The Company has entered into construction management agreements (each a “Construction Management Agreement”) with Pacific Coast Land & Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with capital improvements and renovation or value-enhancement projects for certain properties the Company acquires. The construction management fee payable with respect to each property under the Construction Management Agreements ranges from 8.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement can be terminated by either party with 30 days’ prior written notice to the other party. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred as such costs relate to capital improvements and renovations for apartment homes taken out of service while they undergo the planned renovation. The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations. Property Insurance The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor. In addition, the Company deposits amounts with an affiliate of the Sponsor to cover the cost of property and property related insurance across certain properties of the Company. Other Operating Expense Reimbursement In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring 12-month non-cash (d) non-cash For the year ended December 31, 2018, the Advisor and its affiliates incurred $1,175,061 of the Company’s operating expenses, including the allocable share of the Advisor’s overhead expenses of $790,466, none of which were in excess of the 2%/25% Limitation and are included in the $6,795,365 of general and administrative expenses recognized by the Company. As of December 31, 2018, the Company’s total operating expenses, as defined above, did not exceed the 2%/25% Limitation. For the year ended December 31, 2017, the Advisor and its affiliates incurred $1,449,733 of the Company’s operating expenses, including the allocable share of the Advisor’s overhead expenses of $974,471, none of which were in excess of the 2%/25% Limitation and are included in the $5,456,273 of general and administrative expenses recognized by the Company. For the year ended December 31, 2016, the Advisor and its affiliates incurred $1,231,329 of the Company’s operating expenses, including the allocable share of the Advisor’s overhead expenses of $919,868, none of which were in excess of the 2%/25% Limitation and are included in the $4,848,801 of general and administrative expenses recognized by the Company. Disposition Fee If the Advisor or its affiliates provide a substantial amount of services in connection with the sale of a property or real estate-related asset as determined by a majority of the Company’s independent directors, the Company will pay the Advisor or its affiliates one-half Selling Commissions and Dealer Manager Fees The Company paid the Dealer Manager up to 7% and 3% of the gross offering proceeds from the Primary Offering as selling commissions and dealer manager fees, respectively. The Dealer Manager reallowed 100% of sales commissions earned to participating broker-dealers. The Dealer Manager could also reallow to any participating broker-dealer a portion of the dealer manager fee that was attributable to that participating broker-dealer for certain marketing costs of that participating broker-dealer. The Dealer Manager negotiated the reallowance of the dealer manager fee on a case-by-case paid-in |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | ||
Incentive Award Plan and Independent Director Compensation | 8. Incentive Award Plan and Independent Director Compensation The Company has adopted an incentive award plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified Under the Company’s independent directors’ compensation plan, which is a sub-plan re-election One-fourth non-forfeitable non-forfeitable The Company recorded stock-based compensation expense of $13,896 and $27,792 for the three and six months ended June 30, 2019 and $13,839 and $27,678 for the three and six months ended June 30, 2018, respectively, related to the independent directors’ restricted common stock. In addition to the stock awards, the Company pays each of its independent directors an annual retainer of $55,000, prorated for any partial term (the audit committee chairperson receives an additional $10,000 annual retainer, prorated for any partial term). The independent directors are also paid for attending meetings as follows: (i) $2,500 for each board meeting attended in person, (ii) $1,500 for each committee meeting attended in person in such director’s capacity as a committee member, (iii) $1,000 for each board meeting attended via teleconference (not to exceed $4,000 for any one set of meetings attended on any given day). All directors also receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors. Director compensation is an operating expense of the Company that is subject to the operating expense reimbursement obligation of the Advisor discussed in Note 7 (Related Party Arrangements). The Company recorded an operating expense of $99,750 and $252,000 for the three and six months ended June 30, 2019, and $61,750 and $117,500 for the three and six months ended June 30, 2018, related to the independent directors’ annual retainer and attending board and committee meetings, which is included in general and administrative expenses in the accompanying consolidated statements of operations. As of June 30, 2019 and December 31, 2018, $99,750 and $151,750, respectively, related to the independent directors’ annual retainer and board meetings attendance is included in accounts payable and accrued liabilities in the consolidated balance sheets. | 8. Incentive Award Plan and Independent Director Compensation The Company has adopted an incentive award plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified Under the Company’s independent directors’ compensation plan, which is a sub-plan re-election One-fourth non-forfeitable non-forfeitable The Company recorded stock-based compensation expense of $74,617, $79,858 and $100,060 for the years ended December 31, 2018, 2017 and 2016, respectively, related to the independent directors’ restricted common stock. In addition to the stock awards, the Company pays each of its independent directors an annual retainer of $55,000, prorated for any partial term (the audit committee chairperson receives an additional $10,000 annual retainer, prorated for any partial term). The independent directors are also paid for attending meetings as follows: (i) $2,500 for each board meeting attended in person, (ii) $1,500 for each committee meeting attended in person in such director’s capacity as a committee member, (iii) $1,000 for each board meeting attended via teleconference (not to exceed $4,000 for any one set of meetings attended on any given day). All directors also receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors. Director compensation is an operating expense of the Company that is subject to the operating expense reimbursement obligation of the Advisor discussed in Note 7 (Related Party Arrangements). The Company recorded an operating expense of $496,000, $242,500 and $239,000 for the years ended December 31, 2018, 2017 and 2016, respectively, related to the independent directors’ annual retainer and attending board meetings, which is included in general and administrative expenses in the accompanying consolidated statements of operations. As of December 31, 2018 and 2017, $151,750 and $55,750, respectively, related to the independent directors’ annual retainer and board meetings attendance is included in accounts payable and accrued liabilities in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments and Contingencies | 9. Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services, the Company will be required to obtain such services from other sources. The Company may not be able to retain services from such other sources on favorable terms or at all. Concentration of Credit Risk The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Atlanta, Georgia, Dallas/Fort Worth, Texas and Nashville, Tennessee apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies. | 9. Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services, the Company will be required to obtain such services from other sources. The Company may not be able to retain services from such other sources on favorable terms or at all. Concentration of Credit Risk The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Atlanta, Georgia, Dallas/Fort Worth, Texas and Nashville, Tennessee apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Financial Instruments | 10. Derivative Financial Instruments The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at June 30, 2019 and December 31, 2018: June 30, 2019 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 7/1/2019 - 8/1/2021 One-Month LIBOR 17 $ 559,157,350 2.40 % 3.47 % $ 8,046 December 31, 2018 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52 % 3.46 % $ 207,769 The interest rate cap agreements are not designated as effective cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three and six months ended June 30, 2019, resulted in an unrealized loss of $20,107 and $199,723 and for the three and six months ended June 30, 2018, resulted in an unrealized gain of $131,281 and $578,894, respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the three and six months ended June 30, 2019 and 2018, the Company did not acquire any interest rate cap agreements or receive any settlement proceeds. The fair value of the interest rate cap agreements of $8,046 and $207,769 as of June 30, 2019 and December 31, 2018, respectively, is included in other assets on the accompanying consolidated balance sheets. | 10. Derivative Financial Instruments The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at December 31, 2018 and 2017: December 31, 2018 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52 % 3.46 % $ 207,769 December 31, 2017 Type Maturity Date Range Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 6/1/2018 - 1/1/2021 One-Month LIBOR 29 $ 888,368,100 1.56 % 3.17 % $ 347,409 The interest rate cap agreements are not designated as effective cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the years ended December 31, 2018, 2017 and 2016, resulted in an unrealized (gain) loss of $(87,160), $447,668 and $270,222, respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the years ended December 31, 2018 and 2017, the Company acquired interest rate cap agreements of $43,200 and $300,000, respectively, and received settlement proceeds from interest rate cap agreements of $270,000 and $0, respectively. The fair value of the interest rate cap agreements of $207,769 and $347,409 as of December 31, 2018 and 2017, is included in other assets on the accompanying consolidated balance sheets. |
Pro Forma Information (unaudite
Pro Forma Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Pro Forma Information (unaudited) | 11. Pro Forma Information (unaudited) The following table summarizes, on an unaudited basis, the consolidated pro forma results of operations of the Company for the years ended December 31, 2016 and 2015. The Company acquired four properties during the year ended December 31, 2016. These properties contributed $12,408,647 of revenues and $4,723,946 of net loss, including $10,154,803 of depreciation and amortization, to the Company’s results of operations from the date of acquisition to December 31, 2016. The following unaudited pro forma information for the years ended December 31, 2016 and 2015 have been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2015. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. Year Ended December 31, 2016 2015 Revenues $ 156,616,663 $ 154,697,793 Net loss $ (37,701,106 ) $ (46,322,812 ) Loss per common share, basic and diluted $ (0.80 ) $ (2.13 ) The pro forma information reflects adjustments for actual revenues and expenses of the properties acquired during the year ended December 31, 2016 for the respective period prior to acquisition by the Company. Net loss has been adjusted as follows: (1) interest expense has been adjusted to reflect the additional interest expense that would have been charged had the Company acquired the properties on January 1, 2015 under the same financing arrangements as existed as of the acquisition date; (2) depreciation and amortization has been adjusted based on the Company’s basis in the properties; and (3) transaction costs have been adjusted for the acquisition of the properties. |
Selected Quarterly Results (una
Selected Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Results (unaudited) | 12. Selected Quarterly Results (unaudited) Presented below is a summary of the Company’s unaudited quarterly financial information for the years ended December 31, 2018 and 2017: First Second Third Fourth Total 2018 Revenues $ 41,367,026 $ 42,475,166 $ 43,155,379 $ 42,965,659 $ 169,963,230 Net loss (8,018,094 ) (8,946,178 ) (20,671,331 ) (11,464,743 ) (49,100,346 ) Loss per common share, basic and diluted (0.16 ) (0.17 ) (0.40 ) (0.22 ) (0.96 ) Distributions declared per common share 0.222 0.224 0.227 0.227 0.900 2017 Revenues $ 39,704,775 $ 40,820,869 $ 41,590,622 $ 41,281,892 $ 163,398,158 Net loss (8,413,038 ) (6,959,061 ) (8,132,098 ) (10,119,644 ) (33,623,841 ) Loss per common share, basic and diluted (0.17 ) (0.14 ) (0.16 ) (0.20 ) (0.67 ) Distributions declared per common share 0.222 0.224 0.227 0.227 0.900 |
Subsequent Events
Subsequent Events | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Subsequent Events [Abstract] | ||
Subsequent Events | 11. Subsequent Events Distributions Paid On July 1, 2019, the Company paid distributions of $3,856,773, which related to distributions declared for each day in the period from June 1, 2019 through June 30, 2019 and consisted of cash distributions paid in the amount of $2,122,663 and $1,734,110 in shares issued pursuant to the DRP. On August 1, 2019, the Company paid distributions of $3,993,908, which related to distributions declared for each day in the period from July 1, 2019 through July 31, 2019 and consisted of cash distributions paid in the amount of $2,208,277 and $1,785,631 in shares issued pursuant to the DRP. Shares Repurchased On July 31, 2019, the Company repurchased 135,389 shares of its common stock for a total repurchase value of $2,000,000, or $14.77 per share, pursuant to the Company’s share repurchase plan. Stoneridge Farms Financing On July 30, 2019, one of the Company’s indirect wholly-owned subsidiaries entered into a loan agreement with Berkeley Point Capital LLC, d/b/a Newmark Knight Frank (“Berkeley Point”) for the principal amount of $45,711,000. The loan agreement provides for a term loan with a maturity date of August 1, 2029, unless the maturity date is accelerated pursuant to the loan terms. The loan accrues interest at a fixed rate of 3.36% per annum. The entire outstanding principal balance and any accrued and unpaid interest on the loan is due on the maturity date. Interest only payments on the loan are payable monthly in arrears on specified dates as set forth in the loan agreement and interest and principal payments are due beginning September 1, 2024. Monthly payments are due and payable on the first day of each month, commencing September 1, 2019. The loan is secured by Stoneridge Farms Apartments, a 336 unit property located in Smyrna, Tennessee. The Company paid $228,555 in loan origination fees to Berkeley Point in connection with the financing, and paid the Advisor a loan coordination fee of $342,833. Distributions Declared On August 6, 2019, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on October 1, 2019 and ending on December 31, 2019. The distributions will be equal to $0.002466 per share of the Company’s common stock per day. The distributions for each record date in October 2019, November 2019 and December 2019 will be paid in November 2019, December 2019 and January 2020, respectively. The distributions will be payable to stockholders from legally available funds therefor. Proposed Mergers with Steadfast Income REIT, Inc. and Steadfast Apartment REIT, Inc. On August 5, 2019, the Company entered into the Merger Agreements (as defined herein) to acquire each of Steadfast Income REIT, Inc. (“SIR”) and Steadfast Apartment REIT III, Inc. (“STAR III”). Both mergers are stock-for-stock The combined company after the mergers (the “Combined Company”) will retain the name “Steadfast Apartment REIT, Inc.” Each merger is intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code. If the mergers were to occur today, the Combined Company’s portfolio would consist of 71 properties in 14 states with an average effective rent of $1,158. Based on occupancy as of June 30, 2019, the Combined Company’s portfolio would have an occupancy rate of 94%, an average age of 20 years and gross real estate assets of $3.3 billion. Proposed SIR Merger On August 5, 2019, the Company, the Operating Partnership, SIR, Steadfast Income REIT Operating Partnership, L.P., the operating partnership of SIR, and SI Subsidiary, LLC, a wholly-owned subsidiary of the Company (“SIR Merger Sub”), entered into an Agreement and Plan of Merger (the “SIR Merger Agreement”). Subject to the terms and conditions of the SIR Merger Agreement, SIR will merge with and into SIR Merger Sub (the “SIR Merger”), with SIR Merger Sub surviving the SIR Merger, such that following the SIR Merger, the surviving entity will continue as a wholly-owned subsidiary of the Company. In accordance with the applicable provisions of the Maryland General Corporation Law (the “MGCL”), the separate existence of SIR shall cease. At the effective time of the SIR Merger and subject to the terms and conditions of the SIR Merger Agreement, each issued and outstanding share of SIR’s common stock (or a fraction thereof), $0.01 par value per share (the “SIR Common Stock”), will be converted into the right to receive 0.5934 shares of STAR’s common stock, $0.01 par value per share (the “STAR Common Stock”). The obligation of each party to consummate the SIR Merger is subject to a number of conditions, including receipt of the approval of the SIR Merger by the holders of a majority of the outstanding shares of the SIR Common Stock (the “SIR Stockholder Approval”) and of an amendment to SIR’s charter to delete certain provisions regarding roll-up SIR (with the prior approval of its special committee) may terminate the SIR Merger Agreement in order to enter into an “Alternative Acquisition Agreement” with respect to a “Superior Proposal” (each as defined in the SIR Merger Agreement) at any time prior to receipt by SIR of the SIR Stockholder Approval pursuant to the terms of the SIR Merger Agreement. The Company may terminate the SIR Merger Agreement at any time prior to the receipt of the SIR Stockholder Approval, in certain limited circumstances, including upon an “Adverse Recommendation Change” (as defined in the SIR Merger Agreement). If the SIR Merger Agreement is terminated in connection with SIR’s acceptance of a Superior Proposal or making an Adverse Recommendation Change, then SIR must pay to the Company a termination fee of (i)(A) $8,694,218 if such termination occurs no later than seven (7) business days after (x) 11:59 p.m. New York City time on September 5, 2019 (the “SIR Go Shop Period End Time”) or (y) the end of the specified period for negotiations with the Company following notice (received within five (5) business days of the SIR Go Shop Period End Time) that SIR intends to enter into a Superior Proposal or (B) $20,866,122 if it occurred thereafter and (ii) up to $2,000,000 as reimbursement for the Company’s Expenses (as defined in the SIR Merger Agreement). Proposed STAR III Merger On August 5, 2019, the Company, the Operating Partnership, STAR III, Steadfast Apartment REIT III Operating Partnership, L.P., the operating partnership of STAR III, and SIII Subsidiary, LLC, a wholly-owned subsidiary of the Company (“STAR III Merger Sub”), entered into an Agreement and Plan of Merger (the “STAR III Merger Agreement” and together with the SIR Merger Agreement, the “Merger Agreements”). Subject to the terms and conditions of the STAR III Merger Agreement, STAR III will merge with and into STAR III Merger Sub (the “STAR III Merger” and together with SIR Merger, the “Mergers”), with STAR III Merger Sub surviving the STAR III Merger, such that following the STAR III Merger, the surviving entity will continue as a wholly-owned subsidiary of the Company. In accordance with the applicable provisions of the MGCL, the separate existence of STAR III shall cease. At the effective time of the STAR III Merger and subject to the terms and conditions of the STAR III Merger Agreement, each issued and outstanding share of STAR III’s common stock (or a fraction thereof), $0.01 par value per share (the “STAR III Common Stock”), will be converted into the right to receive 1.430 shares of STAR Common Stock. The obligation of each party to consummate the STAR III Merger is subject to a number of conditions, including receipt of the approval of the STAR III Merger by the holders of a majority of the outstanding shares of STAR III Common Stock (the “STAR III Stockholder Approval”) and of an amendment to STAR III’s charter to delete certain provisions regarding roll-up STAR III (with the prior approval of its special committee) may terminate the STAR III Merger Agreement in order to enter into an “Alternative Acquisition Agreement” with respect to a “Superior Proposal” (each as defined in the STAR III Merger Agreement) at any time prior to receipt by STAR III of the STAR III Stockholder Approval pursuant to the terms of the STAR III Merger Agreement. The Company may terminate the STAR III Merger Agreement at any time prior to the receipt of the STAR III Stockholder Approval, in certain limited circumstances, including upon an “Adverse Recommendation Change” (as defined in the STAR III Merger Agreement). If the STAR III Merger Agreement is terminated in connection with STAR III’s acceptance of a Superior Proposal or making an Adverse Recommendation Change, then STAR III must pay to the Company a termination fee of (i)(A) $2,660,000 if such termination occurs no later than five (5) business days after (x) 11:59 p.m. New York City time on September 19, 2019 (the “STAR III Go Shop Period End Time”) or (y) the end of the specified period for negotiations with the Company following notice (received within five (5) business days of the STAR III Go Shop Period End Time) that STAR III intends to enter into a Superior Proposal or (B) $5,320,000 if it occurred thereafter. Amended and Restated Advisory Agreement Concurrently with the entry into the Merger Agreements, the Company and the Advisor entered into the Amended and Restated STAR Advisory Agreement (the “Amended STAR Advisory Agreement”), which shall become effective at the effective time of the earlier of the SIR Merger or the STAR III Merger. The Amended STAR Advisory Agreement will amend the Company’s existing Advisory Agreement to lower certain fees and to change the form of consideration for the Investment Management Fee (as defined therein) so that such fees are paid 50% in cash and 50% in STAR Common Stock. In addition, the Amended STAR Advisory Agreement provides for a Subordinated Incentive Listing Fee and Subordinated Share of Net Sales Proceeds (each as defined therein) to be payable to the STAR Advisor. Pursuant to the Merger Agreement, the Advisor may request to receive a new class of convertible stock in exchange for the Convertible Stock owned in lieu of the incentive and performance fees provided for in the Amended STAR Advisory Agreement; provided that such request must be made prior to the consummation of either of the Mergers. Amended and Restated Share Repurchase Plan In connection with the proposed Mergers, on August 5, 2019, the Company’s board of directors approved the Amended and Restated Share Repurchase Plan (the “Amended & Restated SRP”), which will become effective September 5, 2019, and will apply beginning with repurchases made on the repurchase date (as defined in the Amended & Restated SRP) with respect to the third quarter of 2019. Under the Amended & Restated SRP, the Company will only repurchase shares of common stock in connection with the death or qualifying disability (as determined by the Company’s board in its sole discretion) of a stockholder, subject to certain terms and conditions specified in the Amended & Restated SRP. Repurchases pursuant to the Amended and Restated SRP will continue to be limited to $2,000,000 per quarter. The Company expects that the board of directors of the Combined Company will determine the terms of the share repurchase plan at a later date following consummation of the Mergers. | 13. Subsequent Events Distributions Paid On January 1, 2019, the Company paid distributions of $3,953,499, which related to distributions declared for each day in the period from December 1, 2018 through December 31, 2018 and consisted of cash distributions paid in the amount of $2,092,671 and $1,860,828 in shares issued pursuant to the DRP. On February 1, 2019, the Company paid distributions of $3,962,806, which related to distributions declared for each day in the period from January 1, 2019 through January 31, 2019 and consisted of cash distributions paid in the amount of $2,110,932 and $1,851,874 in shares issued pursuant to the DRP. On March 1, 2019, the Company paid distributions of $3,578,717, which related to distributions declared for each day in the period from February 1, 2019 through February 28, 2019 and consisted of cash distributions paid in the amount of $1,914,109 and $1,664,608 in shares issued pursuant to the DRP. Estimated Value per Share On March 12, 2019, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $15.84 as of December 31, 2018. In connection with the determination of an estimated value per share, the Company’s board of directors determined a price per share for the DRP of $15.84, effective April 1, 2019. Shares Repurchased On January 31, 2019, the Company repurchased 138,961 shares of its common stock for a total repurchase value of $2,000,000, or $14.39 average price per share, pursuant to the Company’s share repurchase plan. Distributions Declared On March 12, 2019, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on April 1, 2019 and ending on June 30, 2019. The distributions will be equal to $0.002466 per share of the Company’s common stock per day. The distributions for each record date in April 2019, May 2019 and June 2019 will be paid in May 2019, June 2019 and July 2019, respectively. The distributions will be payable to stockholders from legally available funds therefor. |
SCHEDULE III. REAL ESTATE AND A
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION | STEADFAST APARTMENT REIT, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION DECEMBER 31, 2018 Initial Cost of Company (2) Gross Amount at which Carried at Close of Period Description Location Ownership Encumbrances (1) Land Building and (3) Total Cost Land Building and (3) Total (4) Accumulated Original Date Villages at Spring Hill Apartments Spring Hill, TN 100 % $ — $ 1,130,314 $ 13,069,686 $ 14,200,000 $ 2,432,058 $ 1,130,314 $ 15,082,124 $ 16,212,438 $ (3,381,917 ) 1994 5/22/2014 Harrison Place Apartments Indianapolis, IN 100 % — 3,087,687 24,776,563 27,864,250 2,651,851 3,087,687 26,940,657 30,028,344 (5,696,001 ) 2001 6/30/2014 Club at Summer Valley Austin, TX 100 % — 4,850,153 16,649,847 21,500,000 2,643,762 4,850,153 18,600,763 23,450,916 (3,709,669 ) 1983 8/28/2014 Terrace Cove Apartment Homes Austin, TX 100 % — 5,469,361 18,030,639 23,500,000 3,618,337 5,469,361 20,861,651 26,331,012 (4,515,179 ) 1986 8/28/2014 The Residences on McGinnis Ferry Suwanee, GA 100 % — 8,682,823 89,817,177 98,500,000 10,542,693 8,682,823 98,215,985 106,898,808 (18,677,946 ) 1998/2002 10/16/2014 The 1800 at Barrett Lakes Kennesaw, GA 100 % 40,581,410 7,012,787 41,987,213 49,000,000 6,931,373 7,012,787 47,689,032 54,701,819 (9,597,787 ) 1988/1997 11/20/2014 The Oasis Colorado 100 % 39,446,852 4,325,607 35,674,393 40,000,000 3,599,085 4,325,607 38,475,242 42,800,849 (7,111,313 ) 1996 12/19/2014 Columns on Wetherington Florence, KY 100 % — 1,276,787 23,723,213 25,000,000 2,527,834 1,276,787 25,700,654 26,977,441 (4,757,117 ) 2002 2/26/2015 Preston Hills at Mill Creek Buford, GA 100 % — 5,813,218 45,186,782 51,000,000 6,304,793 5,813,218 49,898,882 55,712,100 (9,269,171 ) 2000 3/10/2015 Eagle Lake Landing Apartments Speedway, IN 100 % — 1,607,980 17,592,020 19,200,000 1,273,947 1,607,980 18,207,774 19,815,754 (2,865,589 ) 1976 3/27/2015 Reveal on Cumberland Fishers, IN 100 % 21,610,489 3,299,502 25,939,054 29,238,556 488,671 3,299,502 25,939,938 29,239,440 (4,281,274 ) 2014 3/30/2015 Randall Highlands Apartments North Aurora, IL 100 % — 2,499,350 29,787,091 32,286,441 403,686 2,499,350 29,429,169 31,928,519 (4,440,746 ) 2013 3/31/2015 Heritage Place Apartments Franklin, TN 100 % 8,573,416 1,697,036 7,952,964 9,650,000 1,852,727 1,697,036 9,625,050 11,322,086 (1,858,096 ) 1982 4/27/2015 Rosemont at East Cobb Marietta, GA 100 % 13,238,815 3,599,586 12,850,414 16,450,000 3,282,088 3,599,586 15,519,029 19,118,615 (2,986,811 ) 1980 5/21/2015 Ridge Crossings Apartments Hoover, AL 100 % 57,605,492 7,747,295 64,252,705 72,000,000 5,751,824 7,747,295 68,191,056 75,938,351 (11,380,243 ) 1991 5/28/2015 Bella Terra at City Center Aurora, CO 100 % — 5,895,389 31,704,611 37,600,000 3,717,531 5,895,389 34,618,393 40,513,782 (6,028,447 ) 1980 6/11/2015 Hearthstone at City Center Aurora, CO 100 % — 7,219,143 46,180,857 53,400,000 5,309,908 7,219,143 49,883,346 57,102,489 (8,681,129 ) 1984 6/25/2015 Arbors at Brookfield Mauldin, SC 100 % — 7,553,349 59,246,651 66,800,000 8,595,856 7,553,349 66,104,357 73,657,706 (10,867,459 ) 1989 6/30/2015 Carrington Park Kansas City, 100 % — 2,517,886 36,962,114 39,480,000 2,546,434 2,517,886 38,606,792 41,124,678 (5,662,459 ) 2007 8/19/2015 Delano at North Richland Hills North Richland 100 % 29,790,989 3,941,458 34,558,542 38,500,000 3,702,724 3,941,458 37,252,805 41,194,263 (6,234,139 ) 2003 8/26/2015 Meadows at North Richland Hills North Richland 100 % 25,436,887 4,054,337 28,545,663 32,600,000 3,516,866 4,054,337 31,132,540 35,186,877 (5,450,226 ) 1999 8/26/2015 Kensington by the Vineyard Euless, TX 100 % 34,087,674 3,938,677 42,261,323 46,200,000 1,036,500 3,938,677 42,054,107 45,992,784 (5,846,391 ) 1997 8/26/2015 Monticello by the Vineyard Euless, TX 100 % 41,159,556 5,386,400 46,813,600 52,200,000 3,920,646 5,386,400 49,410,763 54,797,163 (7,640,967 ) 2002 9/23/2015 The Shores Oklahoma City, 100 % 23,944,543 2,100,531 34,149,469 36,250,000 301,757 2,100,531 33,541,460 35,641,991 (4,320,907 ) 2013 9/29/2015 Lakeside at Coppell Coppell, TX 100 % $ 45,217,115 $ 4,789,210 $ 55,710,790 $ 60,500,000 $ 1,770,874 $ 4,789,210 $ 55,947,601 $ 60,736,811 $ (7,520,681 ) 1999 10/7/2015 Meadows at River Run Bolingbrook, IL 100 % 43,065,800 1,899,956 56,600,044 58,500,000 3,680,102 1,899,956 58,919,335 60,819,291 (8,154,462 ) 2001 10/30/2015 PeakView at T-Bone Greeley, CO 100 % — 2,461,583 37,838,417 40,300,000 1,390,664 2,461,583 38,420,847 40,882,430 (4,743,945 ) 2002 12/11/2015 Park Valley Apartments Smyrna, GA 100 % 44,691,749 9,991,810 41,408,190 51,400,000 5,514,893 9,991,810 45,712,749 55,704,559 (6,508,171 ) 1987 12/11/2015 PeakView by Horseshoe Lake Loveland, CO 100 % 33,692,519 2,436,847 41,763,153 44,200,000 1,868,333 2,436,847 42,824,231 45,261,078 (5,750,808 ) 2002 12/18/2015 Stoneridge Farms Smyrna, TN 100 % — 4,064,811 43,685,189 47,750,000 2,887,680 4,064,811 45,577,550 49,642,361 (5,914,788 ) 2005 12/30/2015 Fielder’s Creek Englewood, CO 100 % — 4,219,943 28,180,057 32,400,000 1,819,354 4,219,943 29,324,342 33,544,285 (3,618,169 ) 1983 3/23/2016 Landings of Brentwood (6) Brentwood, TN 100 % — 14,525,434 95,474,566 110,000,000 8,014,414 14,525,434 100,249,262 114,774,696 (11,469,916 ) 1986-89 5/18/2016 1250 West Apartments Marietta, GA 100 % — 9,304,511 46,467,989 55,772,500 929,233 9,304,511 45,991,839 55,296,350 (4,612,531 ) 1987 / 95 8/12/2016 Sixteen50 Lake Ray Hubbard Rockwall, TX 100 % — 5,712,311 57,616,149 63,328,460 1,095,957 5,712,311 57,249,507 62,961,818 (5,117,708 ) 2009 9/29/2016 $ 502,143,306 $ 164,113,072 $ 1,332,457,135 $ 1,496,570,207 $ 115,924,455 $ 164,113,072 $ 1,411,198,832 $ 1,575,311,904 $ (218,672,162 ) (1) Encumbrances are net of deferred financing costs associated with the loans for each individual property listed above. (2) Initial cost of company represents costs at acquisition that are included in real estate on the accompanying consolidated balance sheets. (3) Building and improvements include tenant origination and absorption costs. (4) The aggregate cost of real estate for federal income tax purposes was $1.6 billion (unaudited) as of December 31, 2018. (5) Encumbrances exclude the principal balance of $551,669,000 and associated deferred financing costs of $3,656,563 related to the master credit facility. (6) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. A summary of activity for real estate and accumulated depreciation for the years ended December 31, 2018, 2017 and 2016: 2018 2017 2016 Real Estate: Balance at the beginning of the year $ 1,558,892,731 $ 1,535,484,890 $ 1,238,065,773 Acquisitions — — 261,500,960 Improvements 16,960,862 26,307,813 52,941,631 Write-off (541,689 ) (2,899,972 ) (17,023,474 ) Balance at the end of the year $ 1,575,311,904 $ 1,558,892,731 $ 1,535,484,890 Accumulated depreciation: Balance at the beginning of the year $ 147,726,630 $ 82,099,725 $ 31,037,647 Depreciation expense 70,993,280 68,417,556 67,991,543 Write-off (47,748 ) (2,790,651 ) (16,929,465 ) Balance at the end of the year $ 218,672,162 $ 147,726,630 $ 82,099,725 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. | The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. |
Basis of Presentation | The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q Regulation S-X. 10-K | The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. Square footage, occupancy and certain other measures used to describe real estate included in the notes to the consolidated financial statements are presented on an unaudited basis. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Real Estate Assets | Real Estate Assets Depreciation and Amortization Real estate costs related to the development, construction and improvement of properties are capitalized. Acquisition costs related to business combinations are expensed as incurred. Acquisition costs related to asset acquisitions are capitalized. On January 1, 2017, the Company early adopted ASU 2017-01, Business Combinations (Topic 805): clarifying the definition of a business 2017-01”), Buildings 27.5 years Building improvements 5-25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related lease Furniture, fixtures, and equipment 5-10 years Real Estate Purchase Price Allocation Prior to its adoption of ASU 2017-01, 2017-01, The Company assesses the acquisition-date fair values of all tangible assets, identifiable intangible assets and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis) and that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. Intangible assets include the value of in-place in-place lease-up. The Company estimates the value of tenant origination and absorption costs by considering the estimated carrying costs during hypothetical expected lease-up lease-up The Company amortizes the value of in-place non-cancelable in-place The Company records above-market and below-market in-place in-place in-place non-cancelable non-cancelable The total amount of other intangible assets acquired will be further allocated to in-place Estimates of the fair values of the tangible assets, identifiable intangible assets and assumed liabilities require the Company to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up Impairment of Real Estate Assets The Company accounts for its real estate assets in accordance with ASC 360, Property, Plant and Equipment | |
Rents and Other Receivables | Rents and Other Receivables The Company will periodically evaluate the collectability of amounts due from tenants and maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under lease agreements. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of tenants in developing these estimates. Due to the short-term nature of the operating leases, the Company does not maintain a deferred rent receivable related to the straight-lining of rents. | |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers The Company’s revenue consists of rental revenues and tenant reimbursements and other. There was no impact to the Company’s recognition of rental revenue from leasing arrangements as this was specifically excluded from ASC 606. The company identified limited sources of revenues from non-lease non-cancellable Leases | |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. As of December 31, 2018 and 2017, the Company had amounts in excess of federally insured limits in deposit accounts with a financial institution. The Company limits such deposits to financial institutions with high credit standing. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants. As of December 31, 2018 and 2017, the Company had a restricted cash balance of $13,858,768 and $11,368,850, respectively, which represents amounts set aside as impounds for future property tax payments, property insurance payments and tenant improvement payments as required by agreements with the Company’s lenders. | |
Deferred Financing Costs | Deferred Financing Costs The Company capitalizes deferred financing costs such as commitment fees, legal fees and other third-party costs associated with obtaining commitments for financing that result in a closing of such financing, as a contra liability against the respective outstanding debt balance. The Company amortizes these costs over the terms of the respective financing agreements using the effective interest method. The Company expenses unamortized deferred financing costs when the associated debt is refinanced or repaid before maturity unless specific rules are met that would allow for the carryover of such costs to the refinanced debt. Costs incurred in seeking financing transactions that do not close are expensed in the period in which it is determined that the financing will not close. | |
Derivative Financial Instruments | Derivative Financial Instruments The Company accounts for its derivative instruments in accordance with ASC 815, Derivatives and Hedges The Company measures its derivative instruments and hedging activities at fair value and records them as an asset or liability, depending on its rights or obligations under the applicable derivative contract. For derivatives designated as fair value hedges, the changes in the fair value of both the derivative instrument and the hedged items are recorded in earnings. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. For derivatives designated as cash flow hedges, the effective portions of changes in fair value of the derivatives are reported in other comprehensive income (loss) and are subsequently reclassified into earnings when the hedged item affects earnings. Changes in fair value of derivative instruments not designated as hedges and ineffective portions of hedges are recognized in earnings in the affected period. The Company assesses the effectiveness of each hedging relationship by comparing the changes in fair value or cash flows of the derivative hedging instrument with the changes in fair value or cash flows of the designated hedged item or transaction. As of December 31, 2018 and 2017, the Company did not have any derivatives designated as cash flow or fair value hedges, nor are derivatives being used for trading or speculative purposes. | |
Fair Value Measurements | Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring • Level 1: • Level 2: • Level 3: When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: June 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 8,046 $ — December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. | Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring • Level 1: • Level 2: • Level 3: When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 347,409 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of June 30, 2019 and December 31, 2018, the fair value of the notes payable was $1,096,206,883 and $1,042,358,884, respectively, compared to the carrying value of $1,050,210,840 and $1,050,155,743, respectively. | Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of December 31, 2018 and 2017, the fair value of the notes payable was $1,042,358,884 and $1,011,004,179, respectively, compared to the carrying value of $1,050,155,743 and $993,405,862, respectively. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company amortizes the fair value of stock-based compensation awards to expense over the vesting period and records any dividend equivalents earned as dividends for financial reporting purposes. Stock-based compensation awards are valued at the fair value on the date of grant and amortized as an expense over the vesting period. | |
Distribution Policy | Distribution Policy The Company elected to be taxed, and currently qualifies, as a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the six months ended June 30, 2019, were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2019 through June 30, 2019. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and six months ended June 30, 2019, the Company declared distributions totaling $0.224 and $0.446 per share of common stock, respectively. During the three and six months ended June 30, 2018, the Company declared distributions totaling $0.224 and $0.446 per share of common stock, respectively. | Distribution Policy The Company elected to be taxed as, and qualifies as, a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the year ended December 31, 2018, were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2018 to December 31, 2018. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the years ended December 31, 2018 and 2017, the Company declared distributions totaling $0.900 and $0.900 per share of common stock, respectively. |
Operating Expenses | Operating Expenses Pursuant to the Company’s Articles of Amendment and Restatement (the “Charter”), the Company is limited in the amount of certain operating expenses it may record on a rolling four-quarter basis to the greater of 2% of average invested assets and 25% of net income. Operating expenses include all costs and expenses incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company, excluding expenses of raising capital, interest payments, taxes, property operating expenses, non-cash | |
Income Taxes | Income Taxes The Company elected to be taxed as, and qualifies as, a REIT under the Internal Revenue Code and has operated as such commencing with the taxable year ended December 31, 2014. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including the requirement to distribute at least 90% of the Company’s annual REIT taxable income to stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it would be subject to federal income tax on its taxable income at regular corporate income tax rates and generally would not be permitted to qualify for treatment as a REIT for federal income tax purposes for the four taxable years following the year during which qualification is lost, unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially and adversely affect the Company’s net income and net cash available for distribution to stockholders. However, the Company believes it is organized and operates in such a manner as to qualify for treatment as a REIT. The Company follows ASC 740, Income Taxes | |
Per Share Data | Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. | Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. |
Segment Disclosure | Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. | Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. |
Reclassifications | Reclassifications Certain amounts in the Company’s prior period consolidated financial statements were reclassified to conform to the current presentation. These reclassifications did not change the results of operations of those prior periods. On January 1, 2019, the Company adopted ASU 2016-02, non-lease The table below provides a reconciliation of the prior period presentation of the income statement line items that were reclassified in our consolidated statements of operations to conform to the current period presentation, pursuant to the adoption of the new lease accounting standard and election of the single component practical expedient: Three Months Ended Six Months Ended Rental income (presentation prior to January 1, 2019) $ 37,749,899 $ 74,550,233 Tenant reimbursements (1) 4,159,700 8,086,758 Rental income (presentation effective January 1, 2019) $ 41,909,599 $ 82,636,991 (1) Tenant reimbursements include reimbursements for recoverable costs. | Reclassifications Certain amounts in the Company’s prior period consolidated financial statements were reclassified to conform to the current period presentation. These reclassifications did not change the results of operations of prior periods. On January 1, 2018, the Company adopted ASU 2016-18, |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB established ASC Topic 842, Leases 2016-02, right-of-use 2018-01, Land Easement Practical Expedient for Transition to Topic 842 2018-01”), ASU 2018-10, Codification Improvements to Topic 842 2018-10”), ASU 2018-11, Targeted Improvements 2018-11”) 2018-20, Leases Narrow-scope Improvements for Lessors 2018-20”). ASC 842-10-65-1(f) 842-20-25-2 not right-of-use As it relates to the Company as lessor, the Company did not experience a material impact on the recognition of leases in the consolidated financial statements because under ASC 842, lessors continue to account for leases using an approach that is substantially equivalent to historical guidance for sales-type leases, direct financing leases, and operating leases. The Company elected a practical expedient which allows lessors to not separate non-lease non-lease Under ASC 842, beginning on January 1, 2019, changes in the probability of collecting tenant rental income could result in direct adjustments of rental income and tenant receivables. The Company did not experience a material impact on its rental income and tenant receivables as of the adoption date. The Company’s rental income consists of fixed rental payments from tenants under operating leases and is recognized on a straight-line basis over the respective operating lease terms. The Company recognizes minimum rent, including rental abatements, concessions and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the non-cancelable The Company recognized $42,887,126 and $85,204,046 of rental income related to operating lease payments of which $4,332,509 and $8,410,436 was for variable lease payments for the three and six months ended June 30, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses 2016-13”). ASU 2016-13 requires held-to-maturity 2016-13 requires 2016-13 require 2018-19, Codification Improvements to Topic 326, Financial Instruments Credit Losses 2018-19”), 2016-13. ASU 2016-13 is In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 2018-13 is 2018-13 modify 2018-13 removed 2018-13 requires 2018-13 will 2018-13. The SEC’s Disclosure Update and Simplification rule (Release 33-10532) Rule 3-04 of Regulation S-X. year-to-date 10-Q year-to-date 10-Q), 10-Q | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”). 2014-09 2014-09 2014-09 2015-14, Revenue from Contracts with Customers (Topic 606) 2014-09 2014-09 non-lease 2014-09. In February 2016, the FASB issued ASU 2016-02, Leases 2016-02”), 2016-02 2016-02 2016-02 2016-02, In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements 2018-11”). 2018-11 2016-02. 2018-11 2016-02 2018-11 2018-11, 2018-11 2016-02. 2018-11 2016-02 2018-11 In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842), Narrow-scope Improvements for Lessors 2018-20”). 2018-20 non-lease 2016-02 non-lease 2016-02 2016-02. 2018-20 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses 2016-13”) . 2016-13 requires held-to-maturity 2016-13 requires 2016-13 require 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses 2018-19”), Leases 2016-13. 2016-13 is In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash 2016-18”) , 2016-18 2016-18 2016-18, In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (“Subtopic 610-20”): 2017-05”), 610-20 2017-05 610-20 610-20, 2014-09 2017-05 2014-09. 2017-05 2017-05 2017-05. In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting 2017-09”). 2017-09 Compensation—Stock Compensation 2017-09 2017-09 2017-09 2017-09. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 2018-13 2018-13 2018-13 2018-13. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Summary of Useful Lives of Assets by Class | The Company considers the period of future benefit of an asset to determine its appropriate useful life and anticipates the estimated useful lives of assets by class to be generally as follows: Buildings 27.5 years Building improvements 5-25 years Tenant improvements Shorter of lease term or expected useful life Tenant origination and absorption costs Remaining term of related lease Furniture, fixtures, and equipment 5-10 years | |
Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis | The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: June 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 8,046 $ — December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — | The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — December 31, 2017 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 347,409 $ — |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below provides a reconciliation of the prior period presentation of the income statement line items that were reclassified in our consolidated statements of operations to conform to the current period presentation, pursuant to the adoption of the new lease accounting standard and election of the single component practical expedient: Three Months Ended Six Months Ended Rental income (presentation prior to January 1, 2019) $ 37,749,899 $ 74,550,233 Tenant reimbursements (1) 4,159,700 8,086,758 Rental income (presentation effective January 1, 2019) $ 41,909,599 $ 82,636,991 (1) Tenant reimbursements include reimbursements for recoverable costs. |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles | As of June 30, 2019 and December 31, 2018, accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2019 Assets Land Building and Total Real Real Estate Total Real Estate Investments in real estate $ 164,113,072 $ 1,421,049,714 $ 1,585,162,786 $ 2,576,467 $ 1,587,739,253 Less: Accumulated depreciation and amortization — (255,443,023 ) (255,443,023 ) — (255,443,023 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,165,606,691 $ 1,329,719,763 $ 2,576,467 $ 1,332,296,230 December 31, 2018 Assets Land Building and Total Real Estate Held for Real Estate Total Real Estate Investments in real estate $ 164,113,072 $ 1,411,198,832 $ 1,575,311,904 $ — $ 1,575,311,904 Less: Accumulated depreciation and amortization — (218,672,162 ) (218,672,162 ) — (218,672,162 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,192,526,670 $ 1,356,639,742 $ — $ 1,356,639,742 | As of December 31, 2018 and 2017, accumulated depreciation and amortization related to the Company’s consolidated real estate properties were as follows: December 31, 2018 Assets Land Building and Total Real Estate Investments in real estate $ 164,113,072 $ 1,411,198,832 $ 1,575,311,904 Less: Accumulated depreciation and amortization — (218,672,162 ) (218,672,162 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,192,526,670 $ 1,356,639,742 December 31, 2017 Assets Land Building and Total Real Estate Investments in real estate $ 164,113,072 $ 1,394,779,659 $ 1,558,892,731 Less: Accumulated depreciation and amortization — (147,726,630 ) (147,726,630 ) Net investments in real estate and related lease intangibles $ 164,113,072 $ 1,247,053,029 $ 1,411,166,101 |
Schedule of Real Estate Under Development | During the six months ended June 30, 2019, the Company acquired the following land held for the development of apartment homes: Development Name Location Purchase Land Held for Construction Total Carrying Victory Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 107,284 $ 2,576,467 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Schedule of Other Assets | As of June 30, 2019 and December 31, 2018, other assets consisted of: June 30, 2019 December 31, 2018 Prepaid expenses $ 479,897 $ 1,690,959 Interest rate cap agreements (Note 10) 8,046 207,769 Escrow deposits for pending real estate acquisitions 500,100 100,000 Other deposits 1,876,559 924,997 Operating lease right-of-use 5,871 — Other assets $ 2,870,473 $ 2,923,725 | As of December 31, 2018 and 2017, other assets consisted of: December 31, 2018 2017 Prepaid expenses $ 1,690,959 $ 1,411,353 Interest rate cap agreements 207,769 347,409 Escrow deposits for pending real estate acquisitions 100,000 — Other deposits 924,997 1,053,424 Other assets $ 2,923,725 $ 2,812,186 |
Debt (Tables)
Debt (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Summary of Mortgage Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable, net secured by real property as of June 30, 2019 and December 31, 2018. June 30, 2019 Number of Maturity Date Range Interest Rate Range Weighted Principal Type Minimum Maximum Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.41 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34% 4.60% 4.45 % 227,646,617 Mortgage notes payable, gross 15 4.43 % 505,078,617 Deferred financing costs, net (2) (3,124,575 ) Mortgage notes payable, net $ 501,954,042 December 31, 2018 Number of Maturity Date Range Interest Rate Range Weighted Principal Type Minimum Maximum Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.53 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34% 4.60% 4.45 % 228,127,333 Mortgage notes payable, gross 15 4.49 % 505,559,333 Deferred financing costs, net (2) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to deferred financing costs as of June 30, 2019 and December 31, 2018 was $1,893,742 and $1,602,290, respectively. | The following is a summary of mortgage notes payable, net secured by real property as of December 31, 2018 and 2017: December 31, 2018 Interest Rate Range Weighted Type Number of Maturity Date Range Minimum Maximum Principal Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88 % 1-Mo LIBOR + 2.28 % 4.53 % $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.45 % 228,127,333 Mortgage notes payable, gross 15 4.49 % 505,559,333 Discount, net (2) — Deferred financing costs, net (3) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 December 31, 2017 Interest Rate Range Weighted Type Number of Maturity Date Range Minimum Maximum Principal Variable rate (1) 29 12/1/2021 - 9/1/2026 1-Mo LIBOR + 1.61 % 1-Mo LIBOR + 2.48 % 3.58 % $ 888,345,717 Fixed rate 2 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.51 % 67,823,579 Mortgage notes payable, gross 31 3.63 % 956,169,296 Discount, net (2) (2,275,838 ) Deferred financing costs, net (3) (5,336,384 ) Mortgage notes payable, net $ 948,557,074 (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to the debt discount as of December 31, 2018 and 2017 was $0 and $445,702, respectively. (3) Accumulated amortization related to deferred financing costs as of December 31, 2018 and 2017 was $1,602,290 and $2,234,655, respectively. |
Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility | As of June 30, 2019 and December 31, 2018, the advances obtained and certain financing costs incurred under the MCFA and Line of Credit, which is included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of June 30, 2019 December 31, 2018 Principal balance on Line of Credit, gross (1) $ — $ — Principal balance on MCFA, gross 551,669,000 551,669,000 Deferred financing costs, net on MCFA (2) (3,412,202 ) (3,612,316 ) Deferred financing costs, net on Line of Credit (3) — (44,247 ) Credit facilities, net $ 548,256,798 $ 548,012,437 (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2019 and December 31, 2018, was $628,755 and $428,641, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of June 30, 2019 and December 31, 2018, was $0 and $280,753, respectively. | As of December 31, 2018 and 2017, the advances obtained and certain financing costs incurred under the MCFA and the Line of Credit, which are included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table: Amount of Advance as of 2018 2017 Principal balance on revolving line of credit, gross (1) $ — $ 45,000,000 Principal balance on master credit facility, gross 551,669,000 — Deferred financing costs, net on master credit facility (2) (3,612,316 ) — Deferred financing costs, net on revolving line of credit (3) (44,247 ) (151,212 ) Credit facilities, net $ 548,012,437 $ 44,848,788 (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of December 31, 2018 and 2017, was $428,641 and $0, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of December 31, 2018 and 2017, was $280,753 and $173,788, respectively. |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of June 30, 2019: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt (1) $ 1,056,747,617 $ 486,230 $ 1,191,072 $ 5,196,926 $ 5,302,529 $ 6,112,773 $ 1,038,458,087 (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. | The following is a summary of the Company’s aggregate maturities as of December 31, 2018: Maturities During the Years Ending December 31, Contractual Obligations Total 2019 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt obligations (1) $ 1,057,228,333 $ 966,946 $ 1,186,787 $ 5,099,404 $ 5,204,834 $ 6,018,069 $ 1,038,752,293 (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services | The issuance and vesting activity for the six months ended June 30, 2019 and year ended December 31, 2018, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended Year Ended Nonvested shares at the beginning of the period 7,497 7,497 Granted shares — 4,998 Vested shares — (4,998 ) Nonvested shares at the end of the period 7,497 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2019 and year ended December 31, 2018 was as follows: Grant Year Weighted Average Fair Value 2018 $ 15.18 2019 n/a | The issuance and vesting activity for the years ended December 31, 2018, 2017 and 2016 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with the Company raising $2,000,000 in the Public Offering and the independent directors’ re-election Year Ended December 31, 2018 2017 2016 Nonvested shares at the beginning of the period 7,497 9,997 11,247 Granted shares 4,998 4,998 4,998 Vested shares (4,998 ) (7,498 ) (6,248 ) Nonvested shares at the end of the period 7,497 7,497 9,997 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the years ended December 31, 2018, 2017 and 2016 was as follows: Grant Year Weighted Average Fair Value 2016 $ 14.46 2017 14.85 2018 15.18 |
Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recent publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. The “Estimated Value Per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recent publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84. The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the Estimated Value per Share. The “Estimated Value Per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one-year (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Schedule of Amounts Attributable to the Advisor and its Affiliates | Amounts attributable to the Advisor and its affiliates incurred (earned) for the three and six months ended June 30, 2019 and 2018, and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of June 30, 2019 and December 31, 2018, are as follows: Incurred (Earned) For the Incurred (Earned) For the Payable (Prepaid) as of 2019 2018 2019 2018 June 30, December 31, Consolidated Statements of Operations: Expensed Investment management fees (1) $ 4,174,176 $ 4,281,765 $ 8,334,328 $ 8,544,018 $ 947,431 $ 55,865 Acquisition expenses (2) 92,661 — 92,661 — — — Property management: Fees (1) 1,245,150 1,221,040 2,479,427 2,412,207 416,484 410,424 Reimbursement of onsite personnel (3) 3,776,431 3,653,858 7,504,136 7,216,593 732,049 768,107 Reimbursement of other (1) 846,632 323,898 1,517,851 667,156 103,973 41,989 Reimbursement of property operations (3) 26,600 22,994 49,742 46,643 — — Reimbursement of property G&A (2) 26,845 10,388 61,832 19,687 — — Other operating expenses (2) 413,043 279,690 828,151 541,101 173,507 93,740 Insurance proceeds (4) — — — — — (75,000 ) Property insurance (5) 359,663 379,095 641,978 758,189 — (101,573 ) Rental revenue (6) (14,745 ) — (29,490 ) — — — Consolidated Balance Sheets: Capitalized Acquisition fees (7) 48,343 — 48,343 — — — Acquisition expenses (8) 154,477 — 218,712 — 20,000 1,607 Capital expenditures (9) — 1,673 — 7,295 — — Construction management: Fees (9) 303,518 51,659 461,417 188,102 44,231 10,281 Reimbursement of labor costs (9) 110,945 267,796 261,305 500,387 11,211 29,203 Additional paid-in Selling commissions — — — — 185,954 299,952 $ 11,563,739 $ 10,493,856 $ 22,470,393 $ 20,901,378 $ 2,634,840 $ 1,534,595 (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in other income in the accompanying consolidated statements of operations. (5) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (6) Included in rental income in the accompanying consolidated statements of operations. (7) Included in real estate held for development in the accompanying consolidated balance sheets. (8) Included in total real estate, net in the accompanying consolidated balance sheets following the adoption of ASU 2017-01 (9) Included in building and improvements in the accompanying consolidated balance sheets. | Amounts attributable to the Advisor and its affiliates incurred (earned) for the years ended December 31, 2018, 2017 and 2016 are as follows: Incurred (Earned) For the Year Ended December 31, 2018 2017 2016 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 15,743,185 $ 16,904,458 $ 15,096,243 Acquisition fees (1) — — 2,766,209 Acquisition expenses (2) — — 782,047 Loan coordination fees (1) 3,562,595 1,483,740 1,539,500 Property management: Fees (1) 4,886,436 4,706,698 4,140,513 Reimbursement of onsite personnel (3) 14,959,964 14,194,648 13,013,601 Other fees (1) 1,784,010 1,248,100 1,087,408 Other fees—property operations (3) 82,461 103,320 — Other fees—G&A (4) 49,916 92,488 66,064 Other operating expenses (4) 1,175,061 1,449,733 1,231,329 Insurance proceeds (5) (150,000 ) (172,213 ) — Property insurance (6) 1,394,218 909,568 174,281 Rental revenue (7) (21,589 ) — — Consolidated Balance Sheets: Capitalized Acquisition expenses (8) 26,113 — — Capital expenditures (9) 7,295 28,691 23,178 Construction management: Fees (9) 585,532 1,453,859 3,601,084 Reimbursement of labor costs (9) 908,206 2,551,463 3,804,318 Deferred financing costs (10) 18,923 — — Additional paid-in Other offering costs reimbursement — — 4,165,911 Selling commissions — — 12,017,003 Dealer manager fees — — 5,642,377 $ 45,012,326 $ 44,954,553 $ 69,151,066 (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in acquisition costs in the accompanying consolidated statements of operations. (3) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (4) Included in general and administrative expenses in the accompanying consolidated statements of operations. (5) Included in tenant reimbursements and other in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in total real estate, cost in the accompanying consolidated balance sheets following the adoption of ASU 2017-01 (9) Included in building and improvements in the accompanying consolidated balance sheets. (10) Included in credit facilities, net in the accompanying consolidated balance sheets. Amounts attributable to the Advisor and its affiliates paid (received) for the years ended December 31, 2018, 2017 and 2016 are as follows: Paid (Received) During the Year Ended December 31, 2018 2017 2016 Consolidated Statements of Operations: Expensed Investment management fees $ 15,687,320 $ 18,317,568 $ 14,734,308 Acquisition fees — — 3,276,927 Acquisition expenses — — 927,647 Loan coordination fees 4,290,695 755,640 1,539,500 Property management: Fees 4,872,734 4,685,475 4,053,502 Reimbursement of onsite personnel 14,958,751 14,022,282 12,831,296 Other fees 1,783,971 1,245,748 1,078,882 Other fees—property operations 82,461 103,320 — Other fees—G&A 49,916 92,488 66,064 Other operating expenses 1,157,836 1,585,631 1,085,134 Insurance proceeds (75,000 ) (172,213 ) — Property insurance 1,323,074 1,001,744 230,241 Rental revenue (21,589 ) — — Consolidated Balance Sheets: Capitalized Acquisition expenses 24,507 — — Capital expenditures 7,295 28,691 23,178 Construction management: Fees 700,410 1,431,290 3,625,869 Reimbursement of labor costs 941,879 2,665,299 4,083,432 Deferred financing costs 18,923 — — Additional paid-in Other offering costs reimbursement — — 5,485,093 Selling commissions 262,387 234,942 11,219,722 Dealer manager fees — — 5,642,377 $ 46,065,570 $ 45,997,905 $ 69,903,172 Amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of December 31, 2018 and 2017, are as follows: Payable (Prepaid) as of December 31, 2018 2017 Consolidated Statements of Operations: Expensed Investment management fees $ 55,865 $ — Loan coordination fees — 728,100 Property management: Fees 410,424 396,722 Reimbursement of onsite personnel 768,107 766,894 Other fees 41,989 41,950 Other operating expenses 93,740 76,515 Insurance proceeds (75,000 ) — Property insurance (101,573 ) (172,717 ) Consolidated Balance Sheets: Capitalized Acquisition expenses 1,607 — Construction management: Fees 10,281 125,159 Reimbursement of labor costs 29,203 62,876 Additional paid-in Selling commissions 299,952 562,339 $ 1,534,595 $ 2,587,838 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Schedule of Interest Rate Derivative Instruments | The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at June 30, 2019 and December 31, 2018: June 30, 2019 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 7/1/2019 - 8/1/2021 One-Month LIBOR 17 $ 559,157,350 2.40 % 3.47 % $ 8,046 December 31, 2018 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52 % 3.46 % $ 207,769 | The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at December 31, 2018 and 2017: December 31, 2018 Type Maturity Date Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52 % 3.46 % $ 207,769 December 31, 2017 Type Maturity Date Range Based on Number of Notional Variable Weighted Fair Value Interest Rate Cap 6/1/2018 - 1/1/2021 One-Month LIBOR 29 $ 888,368,100 1.56 % 3.17 % $ 347,409 |
Pro Forma Information (unaudi_2
Pro Forma Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Unaudited Pro Forma Information | This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. Year Ended December 31, 2016 2015 Revenues $ 156,616,663 $ 154,697,793 Net loss $ (37,701,106 ) $ (46,322,812 ) Loss per common share, basic and diluted $ (0.80 ) $ (2.13 ) |
Selected Quarterly Results (u_2
Selected Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | Presented below is a summary of the Company’s unaudited quarterly financial information for the years ended December 31, 2018 and 2017: First Second Third Fourth Total 2018 Revenues $ 41,367,026 $ 42,475,166 $ 43,155,379 $ 42,965,659 $ 169,963,230 Net loss (8,018,094 ) (8,946,178 ) (20,671,331 ) (11,464,743 ) (49,100,346 ) Loss per common share, basic and diluted (0.16 ) (0.17 ) (0.40 ) (0.22 ) (0.96 ) Distributions declared per common share 0.222 0.224 0.227 0.227 0.900 2017 Revenues $ 39,704,775 $ 40,820,869 $ 41,590,622 $ 41,281,892 $ 163,398,158 Net loss (8,413,038 ) (6,959,061 ) (8,132,098 ) (10,119,644 ) (33,623,841 ) Loss per common share, basic and diluted (0.17 ) (0.14 ) (0.16 ) (0.20 ) (0.67 ) Distributions declared per common share 0.222 0.224 0.227 0.227 0.900 |
Organization and Business - Nar
Organization and Business - Narrative (Detail) | Sep. 03, 2013USD ($)$ / sharesshares | Aug. 22, 2013USD ($)shares | Jun. 30, 2019PropertyApartmentResidential$ / shares | Dec. 31, 2018Apartmentmulit_tenant_property | Mar. 14, 2018$ / shares | Dec. 31, 2016$ / shares | Apr. 04, 2014$ / shares |
Initial capitalization | |||||||
Share price (in dollars per share) | $ 15.84 | ||||||
Common Stock [Member] | |||||||
Initial capitalization | |||||||
Share price (in dollars per share) | $ 15 | $ 14.85 | $ 15 | ||||
Residential Real Estate [Member] | |||||||
Initial capitalization | |||||||
Number of multifamily properties | 34 | 34 | |||||
Number of apartment homes | 11,601 | 11,601 | |||||
Number of parcels of land held for development | Property | 1 | ||||||
Sponsor [Member] | Common Stock [Member] | |||||||
Initial capitalization | |||||||
Issuance of common stock (in shares) | shares | 13,500 | ||||||
Share price (in dollars per share) | $ 15 | ||||||
Issuance of common stock | $ | $ 202,500 | ||||||
Advisor [Member] | Convertible Stock [Member] | |||||||
Initial capitalization | |||||||
Issuance of common stock (in shares) | shares | 1,000 | ||||||
Issuance of common stock | $ | $ 1,000 |
Organization and Business - N_2
Organization and Business - Narrative - Public Offering (Detail) - USD ($) | Dec. 30, 2013 | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 24, 2016 | Mar. 24, 2016 | Apr. 01, 2019 | Mar. 12, 2019 | Apr. 01, 2018 | Mar. 14, 2018 | Dec. 31, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Apr. 04, 2014 |
Public Offering Information | |||||||||||||
Registration statement, price per share (in dollars per share) | $ 15.84 | ||||||||||||
Distribution Reinvestment Plan [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Registration statement, price per share (in dollars per share) | $ 14.25 | ||||||||||||
Common Stock [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Registration statement, price per share (in dollars per share) | $ 15 | $ 14.85 | $ 15 | ||||||||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 7,017,544 | ||||||||||||
Registration statement, price per share (in dollars per share) | $ 14.25 | $ 15.84 | $ 15.84 | $ 15.84 | $ 15.18 | $ 15.18 | $ 14.85 | ||||||
Issuance of common stock (in shares) | 6,001,533 | 5,307,643 | 1,011,561 | 1,011,561 | |||||||||
Proceeds from issuance of common stock | $ 88,662,359 | $ 77,905,095 | $ 14,414,752 | $ 14,414,752 | |||||||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | Subsequent Event [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Registration statement, price per share (in dollars per share) | $ 15.84 | $ 15.84 | |||||||||||
Common Stock [Member] | Primary Offering [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 66,666,667 | ||||||||||||
Registration statement, price per share (in dollars per share) | $ 15 | ||||||||||||
Common Stock [Member] | IPO [Member] | |||||||||||||
Public Offering Information | |||||||||||||
Issuance of common stock (in shares) | 53,615,560 | 52,921,670 | 48,625,651 | 48,625,651 | |||||||||
Proceeds from issuance of common stock | $ 799,097,238 | $ 788,339,974 | $ 724,849,631 | $ 640,012,497 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Useful Lives of Assets by Class (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 27 years 6 months |
Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative - Real Estate Assets (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Impairment of real estate assets | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative - Restricted Cash (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 10,913,822 | $ 13,858,768 | $ 11,368,850 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Recurring [Member] - Interest Rate Cap [Member] - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate cap agreements | $ 0 | $ 0 | $ 0 |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate cap agreements | 8,046 | 207,769 | 347,409 |
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate cap agreements | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value | $ 501,954,042 | $ 502,143,306 | $ 948,557,074 |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notes payable, fair value | 1,096,206,883 | 1,042,358,884 | 1,011,004,179 |
Reported Value Measurement [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value | $ 1,050,210,840 | $ 1,050,155,743 | $ 993,405,862 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Narrative - Distribution Policy (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||||
REIT Taxable Income Planned Distribution Rate | 90.00% | ||||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | $ 0.002466 | |||||||||||
Distributions declared per common share (in dollars per share) | $ 0.224 | $ 0.227 | $ 0.227 | $ 0.224 | $ 0.222 | $ 0.227 | $ 0.227 | $ 0.224 | $ 0.222 | $ 0.446 | $ 0.446 | $ 0.900 | $ 0.900 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Narrative - Operating Expenses (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |
Other operating expense reimbursement, percentage of average invested assets, threshold | 2.00% |
Other operating expense reimbursement, percentage of net income, threshold | 25.00% |
General and Administrative Expense [Member] | Advisor [Member] | |
Related Party Transaction [Line Items] | |
Related party transaction, expenses from transactions with related party | $ 1,175,061 |
Advisor [Member] | |
Related Party Transaction [Line Items] | |
Amount payable | 93,740 |
Advisor [Member] | General and Administrative Expense [Member] | |
Related Party Transaction [Line Items] | |
Related party transaction, expenses from transactions with related party | $ 5,084,671 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Narrative - Income Taxes (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Liability for uncertain tax positions, current | $ 0 | $ 0 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Detail) - Segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 1 | 1 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($)PropertyApartmentResidential | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)PropertyApartmentResidential | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Apartmentmulit_tenant_property | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Real Estate [Line Items] | |||||||
Purchase price | $ 1,501,958,217 | $ 1,499,381,750 | |||||
Average percentage of real estate portfolio occupied | 93.80% | 93.90% | 93.10% | ||||
Average monthly collected rent | $ 1,189 | $ 1,163 | $ 1,137 | ||||
Depreciation and amortization | $ 18,515,635 | $ 17,629,793 | $ 36,797,927 | $ 35,065,143 | 70,993,280 | 68,417,556 | $ 67,991,543 |
Building and Improvements [Member] | |||||||
Real Estate [Line Items] | |||||||
Depreciation | 70,993,280 | 67,407,444 | 54,857,243 | ||||
Tenant Origination and Absorption [Member] | |||||||
Real Estate [Line Items] | |||||||
Amortization of intangible assets | $ 0 | $ 1,010,112 | $ 13,134,300 | ||||
Tenant Origination and Absorption [Member] | Maximum [Member] | |||||||
Real Estate [Line Items] | |||||||
Weighted average amortization period of tenant origination and absorption costs | 1 year | ||||||
Residential Real Estate [Member] | |||||||
Real Estate [Line Items] | |||||||
Number of multifamily properties | 34 | 34 | 34 | ||||
Number of apartment homes | 11,601 | 11,601 | 11,601 | ||||
Average percentage of real estate portfolio occupied | 96.00% | 95.50% | |||||
Number of parcels of land held for development | Property | 1 | 1 |
Real Estate - Schedule of Accum
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate [Line Items] | |||
Investments in real estate | $ 1,585,162,786 | $ 1,575,311,904 | $ 1,558,892,731 |
Less: Accumulated depreciation and amortization | (255,443,023) | (218,672,162) | (147,726,630) |
Total real estate held for investment, net | 1,329,719,763 | 1,356,639,742 | 1,411,166,101 |
Land [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 164,113,072 | 164,113,072 | 164,113,072 |
Less: Accumulated depreciation and amortization | 0 | 0 | 0 |
Total real estate held for investment, net | 164,113,072 | 164,113,072 | 164,113,072 |
Building And Improvements [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 1,421,049,714 | 1,411,198,832 | 1,394,779,659 |
Less: Accumulated depreciation and amortization | (255,443,023) | (218,672,162) | (147,726,630) |
Total real estate held for investment, net | 1,165,606,691 | 1,192,526,670 | $ 1,247,053,029 |
Real Estate Held for Investment [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 1,587,739,253 | 1,575,311,904 | |
Less: Accumulated depreciation and amortization | (255,443,023) | (218,672,162) | |
Total real estate held for investment, net | 1,332,296,230 | 1,356,639,742 | |
Real Estate Under Development [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 2,576,467 | 0 | |
Less: Accumulated depreciation and amortization | 0 | 0 | |
Total real estate held for investment, net | $ 2,576,467 | $ 0 |
Real Estate - Narrative - Opera
Real Estate - Narrative - Operating Leases (Detail) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)ResidentialTenants | Jun. 30, 2018Tenants | Dec. 31, 2018USD ($)ApartmentTenants | Dec. 31, 2017USD ($)Tenants | |
Real Estate Properties [Line Items] | ||||
Average percentage of real estate portfolio occupied | 93.80% | 93.90% | 93.10% | |
Residential Real Estate [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of apartment homes | 11,601 | 11,601 | ||
Average percentage of real estate portfolio occupied | 96.00% | 95.50% | ||
Tenant [Member] | Customer Concentration Risk [Member] | ||||
Real Estate Properties [Line Items] | ||||
Number of major customers | Tenants | 0 | 0 | 0 | 0 |
Accounts Payable and Accrued Liabilities [Member] | ||||
Real Estate Properties [Line Items] | ||||
Security deposit liability | $ | $ 4,288,717 | $ 4,130,860 | $ 3,613,649 | |
Maximum [Member] | ||||
Real Estate Properties [Line Items] | ||||
Operating lease term | 12 months | |||
Maximum [Member] | Residential Real Estate [Member] | ||||
Real Estate Properties [Line Items] | ||||
Operating lease term | 12 months |
Other Assets (Detail)
Other Assets (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 479,897 | $ 1,690,959 | $ 1,411,353 |
Interest rate cap agreements | 8,046 | 207,769 | 347,409 |
Escrow deposits for pending real estate acquisitions | 500,100 | 100,000 | 0 |
Other deposits | 1,876,559 | 924,997 | 1,053,424 |
Operating lease right-of-use assets, net | 5,871 | ||
Other assets | $ 2,870,473 | $ 2,923,725 | $ 2,812,186 |
Debt - Summary of Mortgage Note
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($)Instruments | Dec. 31, 2018USD ($)Instruments | Dec. 31, 2017USD ($)Instruments | |
Debt Instrument [Line Items] | |||
Total notes payable, net | $ 1,050,210,840 | $ 1,050,155,743 | $ 993,405,862 |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | Instruments | 15 | 15 | 31 |
Weighted Average Interest Rate | 4.43% | 4.49% | 3.63% |
Principal Outstanding | $ 505,078,617 | $ 505,559,333 | $ 956,169,296 |
Discount, net | (2,275,838) | ||
Debt issuance costs, net | (3,124,575) | (3,416,027) | (5,336,384) |
Total notes payable, net | $ 501,954,042 | $ 502,143,306 | $ 948,557,074 |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | Instruments | 8 | 8 | 29 |
Weighted Average Interest Rate | 4.41% | 4.53% | 3.58% |
Principal Outstanding | $ 277,432,000 | $ 277,432,000 | $ 888,345,717 |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member] | Minimum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 1.88% | 1.88% | 1.61% |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Variable Interest [Member] | Maximum [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.28% | 2.28% | 2.48% |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member] | |||
Debt Instrument [Line Items] | |||
Number of Instruments | Instruments | 7 | 7 | 2 |
Weighted Average Interest Rate | 4.45% | 4.45% | 4.51% |
Principal Outstanding | $ 227,646,617 | $ 228,127,333 | $ 67,823,579 |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.34% | 4.34% | 4.34% |
Notes Payable to Banks [Member] | Mortgage Notes Payable, Fixed Interest [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.60% | 4.60% | 4.60% |
Debt - Summary of Mortgage No_2
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||
Accumulated amortization of debt discount | $ 0 | $ 177,491 | $ 207,074 | $ 354,984 | $ 90,718 | |
Notes Payable to Banks [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Accumulated amortization of debt discount | $ 88,746 | $ 177,491 | 0 | 85,426 | $ 0 | |
Accumulated amortization of deferred financing costs | $ 1,893,742 | $ 1,602,290 | $ 2,234,655 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Jul. 31, 2018USD ($)Subsidiary | Nov. 29, 2017USD ($)Subsidiary | May 18, 2016USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 29, 2017USD ($)Subsidiary | Aug. 26, 2015USD ($) |
Shares Issued And Outstanding [Line Items] | ||||||||||||
Interest expense | $ 12,165,781 | $ 10,231,952 | $ 24,399,076 | $ 19,346,307 | $ 44,374,484 | $ 34,944,074 | $ 26,060,155 | |||||
Amortization of deferred financing costs | 246,432 | 246,966 | 494,204 | 493,241 | 1,056,545 | 1,012,380 | 937,075 | |||||
Change in fair value of interest rate cap agreements | (199,723) | 578,894 | 87,160 | (447,668) | (270,222) | |||||||
Accumulated amortization of debt discount | 0 | 177,491 | 207,074 | 354,984 | 90,718 | |||||||
Credit facility seasoning fees | 7,479 | 14,877 | 57,007 | 45,680 | 65,302 | |||||||
Credit facility commitment fees | 0 | 0 | 2,137 | 21,472 | 587,520 | 664,880 | 0 | |||||
Interest Rate Cap [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Change in fair value of interest rate cap agreements | 20,107 | 131,281 | (199,723) | 578,894 | $ (87,160) | 447,668 | 270,222 | |||||
Master Credit Facility Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Loan Coordination Advisory Fee, Amount | $ 2,758,345 | |||||||||||
CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Loan Coordination Advisory Fee, Amount | 804,250 | |||||||||||
Lineof Credit P N C Bank [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 65,000,000 | |||||||||||
Unused commitment fee percentage | 0.15% | |||||||||||
Lineof Credit P N C Bank [Member] | Line of Credit [Member] | LIBOR [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 1.60% | |||||||||||
Lineof Credit P N C Bank [Member] | Line of Credit [Member] | Base Rate [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 0.60% | |||||||||||
November Refinancing Transactions [Member] | LIBOR [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 1.94% | |||||||||||
December Refinancing Transactions [Member] | LIBOR [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 1.88% | |||||||||||
Subsidiaries [Member] | CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Loan Coordination Advisory Fee, Amount | 804,250 | |||||||||||
Accounts Payable and Accrued Liabilities [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Interest payable | $ 3,903,574 | $ 3,903,574 | $ 4,006,127 | 2,581,941 | ||||||||
Notes Payable to Banks [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Accumulated amortization of debt discount | $ 88,746 | $ 177,491 | 0 | $ 85,426 | $ 0 | |||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 551,669,000 | $ 200,000,000 | ||||||||||
Line of credit facility, borrowing capacity, accordion feature | $ 350,000,000 | |||||||||||
Unused commitment fee percentage | 0.10% | |||||||||||
Additional unused commitment fee percentage | 1.00% | |||||||||||
Seasoning fee percentage | $ 0.0025 | |||||||||||
Seasoning fee percentage, increase on each subsequent anniversary | 0.25% | |||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Servicing rate | 0.05% | |||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 1.80% | |||||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 2.10% | |||||||||||
Berkeley Point [Member] | Master Credit Facility Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | 551,669,000 | |||||||||||
Debt Instrument, Fee Amount | 1,930,842 | |||||||||||
Berkeley Point [Member] | Master Credit Facility Agreement Tranche 1 [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 331,001,400 | |||||||||||
Fixed interest rate | 4.43% | |||||||||||
Berkeley Point [Member] | Master Credit Facility Agreement Tranche 2 [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 137,917,250 | |||||||||||
Fixed interest rate | 4.57% | |||||||||||
Berkeley Point [Member] | Master Credit Facility Agreement Tranche 3 [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 82,750,350 | |||||||||||
Berkeley Point [Member] | Master Credit Facility Agreement Tranche 3 [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Variable rate | 1.70% | |||||||||||
Berkeley Point [Member] | CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Debt Instrument, Fee Amount | $ 643,400 | |||||||||||
Berkeley Point [Member] | Subsidiaries [Member] | Master Credit Facility Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Amount of debt repaid under refinancing transactions | $ 479,318,649 | |||||||||||
Number of subsidiaries refinanced under the revolving credit facility | Subsidiary | 16 | |||||||||||
Berkeley Point [Member] | Subsidiaries [Member] | CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Debt Instrument, Fee Amount | $ 643,400 | |||||||||||
PNC Bank [Member] | CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 160,850,000 | |||||||||||
Fixed interest rate | 4.43% | |||||||||||
PNC Bank [Member] | November Refinancing Transactions [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 100,752,000 | |||||||||||
PNC Bank [Member] | Subsidiaries [Member] | CME Loan [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Amount of debt repaid under refinancing transactions | $ 131,318,742 | |||||||||||
Number of subsidiaries refinanced under the revolving credit facility | Subsidiary | 5 | |||||||||||
Line of credit facility, borrowing capacity | $ 160,850,000 | |||||||||||
Fixed interest rate | 4.43% | |||||||||||
PNC Bank [Member] | Subsidiaries [Member] | November Refinancing Transactions [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Amount of debt repaid under refinancing transactions | $ 93,825,000 | |||||||||||
Number of subsidiaries refinanced under the revolving credit facility | Subsidiary | 3 | |||||||||||
PNC Bank [Member] | Subsidiaries [Member] | Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Number of subsidiaries refinanced under the revolving credit facility | Subsidiary | 3 | |||||||||||
Line of credit facility, borrowing capacity | $ 92,475,000 | |||||||||||
PNC Bank [Member] | Subsidiaries [Member] | December Refinancing Transactions [Member] | Revolving Credit Facility [Member] | ||||||||||||
Shares Issued And Outstanding [Line Items] | ||||||||||||
Line of credit facility, borrowing capacity | $ 97,080,000 |
Debt - Summary of Advances Obta
Debt - Summary of Advances Obtained under the Credit Facility (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Credit facilities, net | $ 548,256,798 | $ 548,012,437 | $ 44,848,788 |
Residential Real Estate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facilities, net | 551,669,000 | 551,669,000 | 0 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs, net | (44,247) | (151,212) | |
Line of Credit [Member] | Residential Real Estate [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facilities, net | 0 | 45,000,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt issuance costs, net | $ (3,412,202) | $ (3,612,316) | $ 0 |
Debt - Summary of Advances Ob_2
Debt - Summary of Advances Obtained under the Credit Facility (Parenthetical) (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Accumulated amortization of deferred financing costs | $ 0 | $ 280,753 | $ 173,788 |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Accumulated amortization of deferred financing costs | $ 628,755 | $ 428,641 | $ 0 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Total | $ 1,056,747,617 | $ 1,057,228,333 |
2019 | 486,230 | 966,946 |
2020 | 1,191,072 | 1,186,787 |
2021 | 5,196,926 | 5,099,404 |
2022 | 5,302,529 | 5,204,834 |
2023 | 6,112,773 | 6,018,069 |
Thereafter | $ 1,038,458,087 | $ 1,038,752,293 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative - General (Detail) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||
Common and preferred shares authorized (in shares) | 1,100,000,000 | 1,100,000,000 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 999,999,000 | 999,999,000 | 999,999,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Convertible Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 1,000 | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Stockholders' Equity - Narrat_2
Stockholders' Equity - Narrative - Common Stock (Detail) | Aug. 13, 2015 | Feb. 27, 2014USD ($) | Sep. 03, 2013USD ($)shares | Jun. 30, 2019USD ($)Vote | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Voteshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Voteshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 24, 2016USD ($)shares | Mar. 24, 2016USD ($)shares |
Class of Stock [Line Items] | ||||||||||||
Number of votes per share | Vote | 1 | 1 | 1 | |||||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | $ (32,414) | $ (32,414) | $ (32,414) | $ 17,659,380 | ||||||||
Share-based compensation expense | $ 27,792 | 27,678 | 74,617 | $ 79,858 | 100,060 | |||||||
Restricted Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share-based Payment Arrangement, Expense | $ 62,467 | $ 90,259 | ||||||||||
Weighted-average remaining term | 9 months 10 days | 1 year | ||||||||||
"Forfeited shares (in shares) | shares" | shares | 0 | 0 | ||||||||||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share-based compensation expense | $ 13,896 | 13,839 | $ 27,792 | 27,678 | $ 74,617 | 79,858 | 100,060 | |||||
Number of equal annual vesting installments | 4 years | |||||||||||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | General and Administrative Expense [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share-based compensation expense | $ 13,896 | $ 13,839 | $ 27,792 | $ 27,678 | $ 74,617 | $ 79,858 | $ 100,060 | |||||
Common Stock [Member] | IPO [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in shares) | shares | 53,615,560 | 52,921,670 | 48,625,651 | 48,625,651 | ||||||||
Proceeds from issuance of common stock | $ 799,097,238 | $ 788,339,974 | $ 724,849,631 | $ 640,012,497 | ||||||||
Net proceeds from the issuance of common stock | $ 714,260,104 | $ 703,502,840 | ||||||||||
Common Stock [Member] | IPO [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Public offering proceeds | $ 2,000,000 | |||||||||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in shares) | shares | 6,001,533 | 5,307,643 | 1,011,561 | 1,011,561 | ||||||||
Proceeds from issuance of common stock | $ 88,662,359 | $ 77,905,095 | $ 14,414,752 | $ 14,414,752 | ||||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | $ 84,837,134 | $ 84,837,134 | ||||||||||
Common Stock [Member] | Sponsor [Member] | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Issuance of common stock (in shares) | shares | 13,500 | |||||||||||
Issuance of common stock | $ 202,500 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services (Detail) - Restricted Stock [Member] - $ / shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested shares at the beginning of the year (in shares) | 7,497 | 7,497 | 9,997 | 11,247 |
Granted shares (in shares) | 0 | 4,998 | 4,998 | 4,998 |
Vested shares (in shares) | 0 | (4,998) | (7,498) | (6,248) |
Nonvested shares at the end of the year (in shares) | 7,497 | 7,497 | 7,497 | 9,997 |
Independent Directors Compensation Plan [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares granted, grant date fair value (in dollars per share) | $ 15.18 | $ 14.85 | $ 14.46 |
Stockholders' Equity - Narrat_3
Stockholders' Equity - Narrative - Convertible Stock (Detail) - Advisor [Member] - Convertible Stock [Member] - USD ($) | Aug. 22, 2013 | Jun. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Issuance of common stock (in shares) | 1,000 | ||
Issuance of common stock | $ 1,000 | ||
Aggregate percentage of cumulative, non-compounded, annual return on the original issue price added to total distributions qualifying for conversion of stock | 6.00% | 6.00% | |
Convertible stock redemption price (in dollars per share) | $ 1 | $ 1 | |
Convertible stock, conversion basis, multiplier | 0.0010 | ||
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | 15.00% | |
Private Placement [Member] | |||
Class of Stock [Line Items] | |||
Issuance of common stock (in shares) | 1,000 | 1,000 | |
Issuance of common stock | $ 1,000 | $ 1,000 |
Stockholders' Equity - Narrat_4
Stockholders' Equity - Narrative - Preferred Stock (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019Classshares | Dec. 31, 2018Classshares | Dec. 31, 2017shares | |
Equity [Abstract] | |||
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | Class | 1 | 1 | |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | Class | 1 | 1 | |
Preferred stock, shares issued (in shares) | shares | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 |
Stockholders' Equity - Narrat_5
Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Dec. 31, 2018 | Apr. 01, 2019 | Mar. 12, 2019 | Apr. 01, 2018 | Mar. 14, 2018 | Dec. 31, 2017 | Mar. 01, 2017 | Dec. 31, 2016 | Apr. 04, 2014 | Dec. 30, 2013 | |
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 15.84 | ||||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 15 | $ 14.85 | $ 15 | ||||||||
Distribution Reinvestment Plan [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 14.25 | ||||||||||
Sales commissions or dealer manager fees payable on shares sold under the plan | $ 0 | $ 0 | |||||||||
Notice period for termination of plan | 10 days | 10 days | |||||||||
Distribution Reinvestment Plan [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 15.84 | $ 15.84 | $ 15.84 | $ 15.18 | $ 15.18 | $ 14.85 | $ 14.25 | ||||
Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 15.84 | $ 15.84 |
Stockholders' Equity - Narrat_6
Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Detail) | Mar. 14, 2018USD ($)$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($)Asset$ / sharesshares | Jun. 30, 2018USD ($)shares | Dec. 31, 2018USD ($)Assetshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)$ / shares | Apr. 04, 2014$ / shares |
Class of Stock [Line Items] | |||||||||
Limit on repurchase, percent | 93.00% | 5.00% | 5.00% | ||||||
Authorized amount, per quarter | $ 2,000,000 | ||||||||
Estimated share price (in dollars per share) | $ / shares | $ 14.73 | ||||||||
Share price (in dollars per share) | $ / shares | $ 15.84 | ||||||||
Transfers to redeemable common stock | $ (37,028,102) | $ (37,028,102) | $ 10,025,412 | $ 19,309,449 | |||||
Accounts Payable and Accrued Liabilities [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchases payable | $ 2,000,000 | $ 2,000,000 | |||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Share price (in dollars per share) | $ / shares | $ 15 | $ 15 | $ 14.85 | $ 15 | |||||
Share Repurchase Plan [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of company assets sold that constitute a return of capital as a result of such sale | Asset | 1 | 1 | |||||||
Written request period for repurchase of shares | 15 days | 15 days | |||||||
Payment period following the repurchase date for honoring repurchase requests | 30 days | 30 days | |||||||
Minimum number of days prior to repurchase date a repurchase request may be withdrawn | 3 days | 3 days | |||||||
Notice period for amendment, suspension, or termination of share repurchase plan | 30 days | 30 days | |||||||
Share Repurchase Plan [Member] | Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares that can be repurchased under Company's share repurchase plan after first anniversary of date of purchase of shares (in shares) | shares | 0 | 0 | 0 | ||||||
Share repurchase plan, maximum period of time allowed from date of death or disability of shareholder to request holding period exemption for shares to be repurchased | 2 years | 2 years | |||||||
Shares redeemed (in shares) | shares | 135,885 | 144,440 | 274,845 | 346,610 | 631,332 | 439,675 | |||
Fulfilled redemption requests | $ 2,000,000 | $ 2,000,000 | $ 4,000,000 | $ 4,886,216 | $ 8,886,216 | $ 6,190,737 | |||
Stock requested for redemption (in shares) | shares | 355,607 | 231,575 | 796,515 | 541,527 | 1,814,302 | 548,395 | |||
Stock requested for redemption, amount | $ 5,210,102 | $ 3,212,937 | $ 11,623,936 | $ 7,475,664 | $ 25,249,054 | $ 7,766,028 | |||
Shares of outstanding and unfulfilled redemption requests (in shares) | shares | 1,778,162 | 379,816 | 1,778,162 | 379,816 | 1,334,360 | 548,395 | |||
Fee charged to repurchase shares | $ 0 | ||||||||
Transfers to redeemable common stock | $ 0 | $ (37,028,102) | (37,028,102) | $ (10,025,412) | |||||
Share Repurchase Plan [Member] | Common Stock [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Stock requested for redemption, amount | $ 25,978,431 | $ 5,224,754 | $ 18,591,460 | $ 7,766,028 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published (Detail) - Share Repurchase Plan Pre-Published Valuation [Member] - Common Stock [Member] | Mar. 29, 2016 |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published (Detail) - Share Repurchase Plan Post Published Valuation [Member] - Common Stock [Member] | Mar. 30, 2016 |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published (Parenthetical) (Detail) - Common Stock [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share Repurchase Plan [Member] | ||
Class of Stock [Line Items] | ||
Share repurchase plan, disability or death holding period exemption period, maximum | 2 years | 2 years |
Share Repurchase Plan As Amended [Member] | ||
Class of Stock [Line Items] | ||
Required holding period to be eligible to redeem shares under share repurchase plan | 1 year | 1 year |
Stockholders' Equity - Narrat_7
Stockholders' Equity - Narrative - Distributions Declared (Detail) - USD ($) | Apr. 04, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 14, 2018 |
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | $ 0.002466 | |||||||
Share price (in dollars per share) | $ 15.84 | ||||||||
Distributions declared | $ 11,684,723 | $ 11,485,650 | $ 23,196,260 | $ 22,798,113 | $ 46,179,769 | $ 45,321,063 | $ 42,357,688 | ||
Dividends payable | $ 3,856,773 | $ 3,856,773 | 3,953,499 | 3,886,730 | |||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | ||||||||
Common stock distribution rate percentage | 6.00% | 6.00% | |||||||
Share price (in dollars per share) | $ 15 | $ 15 | $ 15 | $ 14.85 | |||||
Distributions declared | $ 11,684,723 | 11,485,650 | $ 23,196,260 | $ 22,798,113 | 46,179,769 | 45,321,063 | |||
Dividends, common stock, distribution reinvestment plan | $ 5,286,618 | $ 5,698,302 | $ 10,630,544 | $ 11,369,398 | $ 22,603,893 | $ 23,316,731 | |||
Dividends, common stock, distribution reinvestment plan (in shares) | 333,752 | 375,382 | 685,789 | 757,274 | 1,497,359 | 1,573,774 | |||
Dividends payable | $ 3,856,773 | $ 3,856,773 | $ 3,953,499 | $ 3,886,730 | |||||
Dividends payable, DRP | $ 1,734,110 | $ 1,860,828 | $ 1,970,910 | ||||||
Dividends payable, DRP (in shares) | 109,477 | 122,584 | 132,721 |
Stockholders' Equity - Narrat_8
Stockholders' Equity - Narrative - Distributions Paid (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | |||||||
Payments of ordinary dividends, common stock | $ 6,419,268 | $ 5,824,954 | $ 12,535,724 | $ 11,422,475 | $ 23,399,025 | $ 21,884,846 | $ 19,252,136 |
Distributions paid, common stock, including distribution reinvestment plan | $ 11,797,964 | $ 11,593,864 | $ 23,292,986 | $ 22,892,415 | $ 46,113,000 | $ 45,222,938 | |
Stock issued during period, dividend reinvestment plan (in shares) | 339,564 | 382,875 | |||||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 5,378,696 | $ 5,768,910 | |||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, dividend reinvestment plan (in shares) | 693,883 | 766,783 | 1,507,497 | 1,578,832 | |||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 10,757,262 | $ 11,469,940 | $ 22,713,975 | $ 23,338,092 |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred, Paid, and Payable (Detail) - Advisor [Member] - Advisor and its Affiliates [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||||
Incurred in the period | $ 11,563,739 | $ 10,493,856 | $ 22,470,393 | $ 20,901,378 | $ 45,012,326 | $ 44,954,553 | $ 69,151,066 |
Paid in the period | 46,065,570 | 45,997,905 | 69,903,172 | ||||
Payable at end of period | 2,634,840 | 2,634,840 | 1,534,595 | 2,587,838 | |||
Investment Management Fee [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 15,687,320 | 18,317,568 | 14,734,308 | ||||
Investment Management Fee [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 4,174,176 | 4,281,765 | 8,334,328 | 8,544,018 | 15,743,185 | 16,904,458 | 15,096,243 |
Payable at end of period | 947,431 | 947,431 | 55,865 | ||||
Acquisition Expenses [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 927,647 | ||||||
Acquisition Expenses [Member] | Acquisition Costs [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 92,661 | 0 | 92,661 | 0 | 782,047 | ||
Payable at end of period | 0 | 0 | 0 | ||||
Property Management, Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 4,872,734 | 4,685,475 | 4,053,502 | ||||
Property Management, Fees [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 1,245,150 | 1,221,040 | 2,479,427 | 2,412,207 | 4,886,436 | 4,706,698 | 4,140,513 |
Payable at end of period | 416,484 | 416,484 | 410,424 | 396,722 | |||
Property Management, Reimbursement of Onsite Personnel [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 14,958,751 | 14,022,282 | 12,831,296 | ||||
Property Management, Reimbursement of Onsite Personnel [Member] | Operating, Maintenance and Management [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 3,776,431 | 3,653,858 | 7,504,136 | 7,216,593 | 14,959,964 | 14,194,648 | 13,013,601 |
Payable at end of period | 732,049 | 732,049 | 768,107 | 766,894 | |||
Property Management, Other Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 1,783,971 | 1,245,748 | 1,078,882 | ||||
Property Management, Other Fees [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 846,632 | 323,898 | 1,517,851 | 667,156 | 1,784,010 | 1,248,100 | 1,087,408 |
Payable at end of period | 103,973 | 103,973 | 41,989 | 41,950 | |||
Other Operating Expenses [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 413,043 | 279,690 | 828,151 | 541,101 | |||
Paid in the period | 1,157,836 | 1,585,631 | 1,085,134 | ||||
Payable at end of period | 173,507 | 173,507 | 93,740 | ||||
Other Operating Expenses [Member] | General and Administrative Expense [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 1,175,061 | 1,449,733 | 1,231,329 | ||||
Payable at end of period | 93,740 | 76,515 | |||||
Prepaid Insurance [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 359,663 | 379,095 | 641,978 | 758,189 | 1,394,218 | 909,568 | 174,281 |
Paid in the period | 1,323,074 | 1,001,744 | 230,241 | ||||
Prepaid at end of period | 0 | 0 | (101,573) | (172,717) | |||
Rental Revenue [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Earned in the period | (14,745) | 0 | (29,490) | 0 | (21,589) | ||
Paid in the period | (21,589) | ||||||
Payable at end of period | 0 | 0 | 0 | ||||
Acquisition Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 48,343 | 0 | 48,343 | 0 | |||
Paid in the period | 3,276,927 | ||||||
Payable at end of period | 0 | 0 | 0 | ||||
Acquisition Fees [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 2,766,209 | ||||||
Acquisition Fees and Expenses [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 154,477 | 0 | 218,712 | 0 | 26,113 | ||
Paid in the period | 24,507 | ||||||
Payable at end of period | 20,000 | 20,000 | 1,607 | ||||
Capital Expenditures [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 0 | 1,673 | 0 | 7,295 | 7,295 | 28,691 | 23,178 |
Paid in the period | 7,295 | 28,691 | 23,178 | ||||
Payable at end of period | 0 | 0 | 0 | ||||
Construction Management Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 303,518 | 51,659 | 461,417 | 188,102 | 585,532 | 1,453,859 | 3,601,084 |
Paid in the period | 700,410 | 1,431,290 | 3,625,869 | ||||
Payable at end of period | 44,231 | 44,231 | 10,281 | 125,159 | |||
Construction Management Reimbursement of Labor Costs [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 110,945 | 267,796 | 261,305 | 500,387 | 908,206 | 2,551,463 | 3,804,318 |
Paid in the period | 941,879 | 2,665,299 | 4,083,432 | ||||
Payable at end of period | 11,211 | 11,211 | 29,203 | 62,876 | |||
Sales Commissions Paid [Member] | Additional Paid-in Capital [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 0 | 0 | 0 | 0 | 12,017,003 | ||
Paid in the period | 262,387 | 234,942 | 11,219,722 | ||||
Payable at end of period | 185,954 | 185,954 | 299,952 | 562,339 | |||
Loan Coordination Fees [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 4,290,695 | 755,640 | 1,539,500 | ||||
Loan Coordination Fees [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 3,562,595 | 1,483,740 | 1,539,500 | ||||
Payable at end of period | 728,100 | ||||||
Property Management, Other Fees - Property Operations [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 82,461 | 103,320 | |||||
Property Management, Other Fees - Property Operations [Member] | Fees to Affiliates [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 26,600 | 22,994 | 49,742 | 46,643 | 82,461 | 103,320 | |
Payable at end of period | 0 | 0 | 0 | ||||
Property Management, Other Fees - General and Administrative [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Paid in the period | 49,916 | 92,488 | 66,064 | ||||
Property Management, Other Fees - General and Administrative [Member] | General and Administrative Expense [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 26,845 | 10,388 | 61,832 | 19,687 | 49,916 | 92,488 | 66,064 |
Payable at end of period | 0 | 0 | 0 | ||||
Insurance Proceeds from Related Party [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 0 | $ 0 | 0 | $ 0 | |||
Paid in the period | (75,000) | (172,213) | |||||
Prepaid at end of period | $ 0 | $ 0 | (75,000) | ||||
Insurance Proceeds from Related Party [Member] | General and Administrative Expense [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Earned in the period | (150,000) | $ (172,213) | |||||
Prepaid at end of period | (75,000) | ||||||
Deferred Financing Costs and Other Assets, Net [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 18,923 | ||||||
Paid in the period | $ 18,923 | ||||||
Other Offering Costs Reimbursement [Member] | Additional Paid-in Capital [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 4,165,911 | ||||||
Paid in the period | 5,485,093 | ||||||
Dealer Management Fees [Member] | Additional Paid-in Capital [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Incurred in the period | 5,642,377 | ||||||
Paid in the period | $ 5,642,377 |
Related Party Arrangements - Na
Related Party Arrangements - Narrative - Investment Management Fee (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Advisor [Member] | Investment Management Fee [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly investment management fee, percentage | 0.0833% | 0.0833% |
Related Party Arrangements - _2
Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Detail) - Advisor [Member] - Acquisition Fees and Expenses [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Acquisition fee, percent | 1.00% | 1.00% |
Acquisition fee payable without board approval as a percent of total contract price | 4.50% | 4.50% |
Related Party Arrangements - _3
Related Party Arrangements - Narrative - Loan Coordination Fee (Detail) - Advisor [Member] - Advisor [Member] - Loan Coordination Fee [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Loan coordination fee, acquisitions | 1.00% | 1.00% |
Loan coordination fee, other than acquisitions | 0.75% | 0.75% |
Related Party Arrangements - _4
Related Party Arrangements - Narrative - Property Management Fees and Expenses (Detail) - Property Management Fees and Expenses [Member] - Steadfast Management Company [Member] - Property Manager [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Term of agreement | 1 year | 1 year |
Number of uncured days needed to terminate agreement | 60 days | 60 days |
Notice needed to terminate agreement | 30 days | 30 days |
Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Property management fee, percent | 2.50% | 2.50% |
Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Property management fee, percent | 3.00% | 3.00% |
Related Party Arrangements - _5
Related Party Arrangements - Narrative - Construction Management Fee and Development Services Agreement (Detail) - Affiliated Entity [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Pacific Coast Land Construction Inc. [Member] | Construction Management Fee [Member] | ||
Construction Management Fees and Expenses [Abstract] | ||
Construction management agreement, notice of termination of contract, period | 30 days | 30 days |
Pacific Coast Land Construction Inc. [Member] | Construction Management Fee [Member] | Minimum [Member] | ||
Construction Management Fees and Expenses [Abstract] | ||
Construction management fee, percent | 8.00% | 8.00% |
Pacific Coast Land Construction Inc. [Member] | Construction Management Fee [Member] | Maximum [Member] | ||
Construction Management Fees and Expenses [Abstract] | ||
Construction management fee, percent | 12.00% | 12.00% |
Steadfast Multifamily Development Inc. [Member] | Development Services Agreement [Member] | ||
Development Services Agreement [Abstract] | ||
Development services agreement fee, percent | 4.00% | |
Development services agreement fee paid over installment period, percent | 75.00% | |
Development services agreement fee, period | 14 months | |
Development services agreement fee paid at certificate of occupancy, percent | 25.00% |
Related Party Arrangements - _6
Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)qtr | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)qtr | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |||||||
Operating expenses limitation as a percentage of average invested assets | 2.00% | ||||||
Operating expenses limitation as a percentage of net income | 25.00% | ||||||
Operating expenses | $ 55,949,623 | $ 51,421,344 | $ 111,075,505 | $ 100,806,464 | $ 219,063,576 | $ 197,021,999 | $ 181,692,988 |
Other Operating Expense Reimbursement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
General and administrative expenses | $ 6,795,365 | 5,456,273 | 4,848,801 | ||||
Advisor [Member] | Other Operating Expense Reimbursement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Operating expense limitation, number of rolling quarters | qtr | 4 | 4 | |||||
Operating expenses limitation as a percentage of average invested assets | 2.00% | 2.00% | |||||
Operating expenses limitation as a percentage of net income | 25.00% | 25.00% | |||||
Average invested assets, calculation period | 12 months | 12 months | |||||
Advisor and its Affiliates [Member] | Other Operating Expense Reimbursement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Operating expenses | $ 1,175,061 | 1,449,733 | 1,231,329 | ||||
Overhead expenses | $ 790,466 | $ 974,471 | $ 919,868 |
Related Party Arrangements - _7
Related Party Arrangements - Narrative - Disposition Fee (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Operating expenses limitation as a percentage of average invested assets | 2.00% | |
Operating expenses limitation as a percentage of net income | 25.00% | |
Advisor [Member] | Disposition Fee [Member] | ||
Related Party Transaction [Line Items] | ||
Disposition fee, maximum percent of brokerage commission paid threshold | 50.00% | 50.00% |
Property sale disposition fee, maximum percentage of total sale price | 1.00% | 1.00% |
Operating expenses limitation as a percentage of average invested assets | 2.00% | 2.00% |
Operating expenses limitation as a percentage of net income | 25.00% | 25.00% |
Disposition fees incurred | $ 0 | $ 0 |
Related Party Arrangements - _8
Related Party Arrangements - Narrative - Selling Commissions and Dealer Manager Fees (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Sales Commissionsand Dealer Manager Fees [Member] | Distribution Reinvestment Plan [Member] | |||
Related Party Transaction [Line Items] | |||
Sales commissions or dealer manager fees paid | $ 0 | $ 0 | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Sales commissions [Member] | Primary Offering [Member] | |||
Related Party Transaction [Line Items] | |||
Sales commission, percentage of gross offering proceeds | 7.00% | 7.00% | |
Sales commission, percentage of gross offering proceeds, at time of sale | 3.00% | 3.00% | |
Sales commission, percentage of gross offering proceeds, paid ratably (1% per year) | 4.00% | 4.00% | |
Sales commission, percentage of gross offering proceeds, ratable on each of the first five anniversaries | 1.00% | 1.00% | |
selling commissions on gross offering proceeds from sales of common stock | P4Y | P4Y | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Dealer Management Fees [Member] | Primary Offering [Member] | |||
Related Party Transaction [Line Items] | |||
Dealer manager fees, percentage of gross offering proceeds | 3.00% | 3.00% | |
Advisor [Member] | Advisor and its Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 2,634,840 | $ 1,534,595 | $ 2,587,838 |
Advisor [Member] | Additional Paid-in Capital [Member] | Advisor and its Affiliates [Member] | Sales Commissions Paid [Member] | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 185,954 | $ 299,952 | $ 562,339 |
Incentive Award Plan and Inde_2
Incentive Award Plan and Independent Director Compensation (Detail) - USD ($) | Aug. 13, 2015 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Proceeds from issuance of common stock | $ 193,953,605 | |||||||
Amortization of stock-based compensation | $ 27,792 | $ 27,678 | $ 74,617 | $ 79,858 | 100,060 | |||
Operating expenses | $ 55,949,623 | $ 51,421,344 | 111,075,505 | 100,806,464 | 219,063,576 | 197,021,999 | 181,692,988 | |
Director [Member] | Director Annual Retainer Expense [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Due to related parties | 151,750 | 55,750 | ||||||
Common Stock [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Proceeds from issuance of common stock | 2,000,000 | 2,000,000 | ||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of equal annual vesting installments | 4 years | |||||||
Amortization of stock-based compensation | 13,896 | 13,839 | 27,792 | 27,678 | 74,617 | 79,858 | 100,060 | |
Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Annual retainer | 55,000 | 55,000 | ||||||
Annual retainer, additional due audit committee chairperson | 10,000 | 10,000 | ||||||
Board Meeting attendance fee | 2,500 | 2,500 | ||||||
Committee Meeting attendance fee | 1,500 | 1,500 | ||||||
Teleconference attendance fee | 1,000 | 1,000 | ||||||
Teleconference attendance fee, daily maximum | 4,000 | 4,000 | ||||||
Operating expenses | 99,750 | $ 61,750 | 252,000 | $ 117,500 | 496,000 | $ 242,500 | $ 239,000 | |
Director [Member] | Director Annual Retainer Expense [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Due to related parties | $ 99,750 | $ 99,750 | $ 151,750 | |||||
Director [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | IPO [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares entitled to be received under plan (in shares) | 3,333 | 3,333 | ||||||
Shares entitled to be received upon re-election to Board of Directors (in shares) | 1,666 | 1,666 | ||||||
Vesting percent | 25.00% | 25.00% | ||||||
Number of equal annual vesting installments | 3 years | 3 years |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Detail) - Interest Rate Cap [Member] - Cash Flow Hedging [Member] - Not Designated as Hedging Instrument [Member] | Jun. 30, 2019USD ($)Instruments | Dec. 31, 2018USD ($)Instruments | Dec. 31, 2017USD ($)Instruments |
Derivative [Line Items] | |||
Number of Instruments | Instruments | 17 | 22 | 29 |
Notional Amount | $ 559,157,350 | $ 713,237,850 | $ 888,368,100 |
Weighted Average Rate Cap | 3.47% | 3.46% | 3.17% |
Fair Value | $ 8,046 | $ 207,769 | $ 347,409 |
LIBOR [Member] | |||
Derivative [Line Items] | |||
Variable Rate | 2.40% | 2.52% | 1.56% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||||||
Unrealized gain (loss) | $ (199,723) | $ 578,894 | $ 87,160 | $ (447,668) | $ (270,222) | |||
Proceeds from settlement of interest rate cap agreements | 270,000 | |||||||
Interest Rate Cap [Member] | ||||||||
Derivative [Line Items] | ||||||||
Unrealized gain (loss) | $ 20,107 | $ 131,281 | (199,723) | 578,894 | (87,160) | 447,668 | 270,222 | |
Investing activities acquired | $ 43,200 | 300,000 | ||||||
Proceeds from settlement of interest rate cap agreements | 270,000 | 0 | ||||||
Interest Rate Cap [Member] | Deferred Financing Costs and Other Assets, Net [Member] | ||||||||
Derivative [Line Items] | ||||||||
Fair value of interest rate cap agreements | 8,046 | $ 207,769 | 8,046 | 207,769 | 347,409 | |||
Interest Rate Cap [Member] | Interest Expense [Member] | ||||||||
Derivative [Line Items] | ||||||||
Unrealized gain (loss) | $ (20,107) | $ 131,281 | $ (199,723) | $ 578,894 | $ (87,160) | $ 447,668 | $ 270,222 |
Pro Forma Information (unaudi_3
Pro Forma Information (unaudited) - Narrative (Detail) | 12 Months Ended |
Dec. 31, 2017USD ($)Property | |
Business Combinations [Abstract] | |
Number of properties acquired | Property | 4 |
Contributed revenue | $ 12,408,647 |
Contributed net loss | 4,723,946 |
Contributed depreciation and amortization | $ 10,154,803 |
Pro Forma Information (unaudi_4
Pro Forma Information (unaudited) - Schedule of Unaudited Pro Forma Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Revenues | $ 156,616,663 | $ 154,697,793 |
Net loss | $ (37,701,106) | $ (46,322,812) |
Loss per common share, basic and diluted (in dollars per share) | $ (0.80) | $ (2.13) |
Selected Quarterly Results (u_3
Selected Quarterly Results (unaudited) - Schedule of Unaudited Quarterly Financial Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenues | $ 43,956,613 | $ 42,965,659 | $ 43,155,379 | $ 42,475,166 | $ 41,367,026 | $ 41,281,892 | $ 41,590,622 | $ 40,820,869 | $ 39,704,775 | $ 86,723,223 | $ 83,842,192 | $ 169,963,230 | $ 163,398,158 | $ 144,010,514 |
Net loss | $ (11,993,010) | $ (11,464,743) | $ (20,671,331) | $ (8,946,178) | $ (8,018,094) | $ (10,119,644) | $ (8,132,098) | $ (6,959,061) | $ (8,413,038) | $ (24,352,282) | $ (16,964,272) | $ (49,100,346) | $ (33,623,841) | $ (37,682,474) |
Loss per common share - basic and diluted (in dollars per share) | $ (0.23) | $ (0.22) | $ (0.40) | $ (0.17) | $ (0.16) | $ (0.20) | $ (0.16) | $ (0.14) | $ (0.17) | $ (0.47) | $ (0.33) | $ (0.96) | $ (0.67) | $ (0.80) |
Distributions declared per common share (in dollars per share) | $ 0.224 | $ 0.227 | $ 0.227 | $ 0.224 | $ 0.222 | $ 0.227 | $ 0.227 | $ 0.224 | $ 0.222 | $ 0.446 | $ 0.446 | $ 0.900 | $ 0.900 |
Subsequent Events (Detail)
Subsequent Events (Detail) | Sep. 30, 2019$ / shares | Aug. 05, 2019USD ($)PropertyStates$ / sharesshares | Aug. 01, 2019USD ($) | Jul. 31, 2019USD ($)$ / sharesshares | Jul. 30, 2019USD ($)SubsidiaryApartment | Jul. 01, 2019USD ($) | Mar. 12, 2019$ / shares | Mar. 01, 2019USD ($) | Feb. 01, 2019USD ($) | Jan. 01, 2019USD ($) | Mar. 14, 2018USD ($)$ / shares | Jan. 31, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Apr. 01, 2019$ / shares | Apr. 01, 2018$ / shares | Mar. 01, 2017$ / shares | Apr. 04, 2014$ / shares | Dec. 30, 2013$ / shares |
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 11,797,964 | $ 11,593,864 | $ 23,292,986 | $ 22,892,415 | $ 46,113,000 | $ 45,222,938 | ||||||||||||||||||
Payments of ordinary dividends, common stock | 6,419,268 | 5,824,954 | 12,535,724 | 11,422,475 | 23,399,025 | 21,884,846 | $ 19,252,136 | |||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.84 | |||||||||||||||||||||||
Stock requested for redemption, value | $ 2,000,000 | $ 2,000,000 | $ 4,000,000 | $ 4,886,216 | $ 8,886,216 | 6,190,737 | $ 2,156,699 | |||||||||||||||||
Common share, distribution rate per share per day, declared | $ / shares | $ 0.002466 | $ 0.002466 | ||||||||||||||||||||||
Average monthly collected rent | $ 1,189 | $ 1,163 | $ 1,137 | |||||||||||||||||||||
Authorized amount, per quarter | $ 2,000,000 | |||||||||||||||||||||||
Distribution Reinvestment Plan [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 14.25 | |||||||||||||||||||||||
Forecast [Member] | Steadfast Apartment REIT, Inc. [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Number of properties | Property | 71 | |||||||||||||||||||||||
Number of states with real estate properties | States | 14 | |||||||||||||||||||||||
Average monthly collected rent | $ 1,158 | |||||||||||||||||||||||
Percentage leased | 94.00% | |||||||||||||||||||||||
Properties average age | 20 years | |||||||||||||||||||||||
Gross rental real estate assets | $ 3,300,000,000 | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 3,993,908 | $ 3,856,773 | $ 3,578,717 | $ 3,962,806 | $ 3,953,499 | |||||||||||||||||||
Share repurchased | shares | 135,389 | |||||||||||||||||||||||
Common share, distribution rate per share per day, declared | $ / shares | $ 0.002466 | |||||||||||||||||||||||
Shares repurchased | $ 2,000,000 | |||||||||||||||||||||||
Average cost per share | $ / shares | $ 14.77 | |||||||||||||||||||||||
Amended and restated advisory agreement, paid in cash, percent | 50.00% | |||||||||||||||||||||||
Amended and restated advisory agreement, paid in common stock, percent | 50.00% | |||||||||||||||||||||||
Authorized amount, per quarter | $ 2,000,000 | |||||||||||||||||||||||
Subsequent Event [Member] | S I R Merger Agreement [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | |||||||||||||||||||||||
Subsequent Event [Member] | STAR III Merger Agreement [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Common stock, par value | $ / shares | 0.01 | |||||||||||||||||||||||
Subsequent Event [Member] | Steadfast Apartment REIT, Inc. [Member] | S I R Merger Agreement [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | |||||||||||||||||||||||
Entity shares issued per acquiree share | shares | 0.5934 | |||||||||||||||||||||||
Within the SIR Go Shop Period End Time, termination fee | $ 8,694,218 | |||||||||||||||||||||||
Termination period occurs after SIR Go Shop Period End Time Threshold (no later than) | 7 days | |||||||||||||||||||||||
End of negotiations period within SIR Go Shop Period End Time | 5 days | |||||||||||||||||||||||
After the SIR Go Shop Period End Time, termination fee | $ 20,866,122 | |||||||||||||||||||||||
Expense reimbursement termination fee (up to) | $ 2,000,000 | |||||||||||||||||||||||
Subsequent Event [Member] | Steadfast Apartment REIT, Inc. [Member] | STAR III Merger Agreement [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Entity shares issued per acquiree share | shares | 1.430 | |||||||||||||||||||||||
Within the SIR Go Shop Period End Time, termination fee | $ 2,660,000 | |||||||||||||||||||||||
Termination period occurs after SIR Go Shop Period End Time Threshold (no later than) | 5 days | |||||||||||||||||||||||
End of negotiations period within SIR Go Shop Period End Time | 5 days | |||||||||||||||||||||||
After the SIR Go Shop Period End Time, termination fee | $ 5,320,000 | |||||||||||||||||||||||
Subsequent Event [Member] | Subsidiaries [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Number of subsidiaries | Subsidiary | 1 | |||||||||||||||||||||||
Subsequent Event [Member] | Subsidiaries [Member] | Berkeley Point [Member] | Stoneridge Farms Financing, 3.35%, Due August 01, 2029 [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Face amount | $ 45,711,000 | |||||||||||||||||||||||
Fixed rate | 3.36% | |||||||||||||||||||||||
Number of apartment homes | Apartment | 336 | |||||||||||||||||||||||
Loan fee amount | $ 228,555 | |||||||||||||||||||||||
Advisor loan coordination fees | $ 342,833 | |||||||||||||||||||||||
Subsequent Event [Member] | Dividend Paid [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Payments of ordinary dividends, common stock | 2,208,277 | 2,122,663 | 1,914,109 | 2,110,932 | 2,092,671 | |||||||||||||||||||
Dividends paid-in-kind | $ 1,785,631 | $ 1,734,110 | $ 1,851,874 | $ 1,860,828 | ||||||||||||||||||||
Distributions paid to common stockholders through common stock issuances pursuant to distribution reinvestment plan | $ 1,664,608 | |||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | $ 15 | $ 14.85 | $ 15 | ||||||||||||||||||||
Common share, distribution rate per share per day, declared | $ / shares | $ 0.002466 | |||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | 0.01 | $ 0.01 | ||||||||||||||||||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.84 | $ 15.84 | $ 15.18 | $ 15.84 | $ 15.18 | $ 14.85 | $ 14.25 | |||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Common share, distribution rate per share per day, declared | $ / shares | 0.002466 | |||||||||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | Share Repurchase Plan [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 14.39 | |||||||||||||||||||||||
Share repurchased | shares | 138,960.575 | |||||||||||||||||||||||
Stock requested for redemption, value | $ 2,000,000 | |||||||||||||||||||||||
Common Stock [Member] | Subsequent Event [Member] | Distribution Reinvestment Plan [Member] | ||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.84 | $ 15.84 |
SCHEDULE III. REAL ESTATE AND_2
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION - Real Estate and Accumulated Depreciation and Amortization (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Real Estate: | ||||
Balance at the beginning of the year | $ 1,558,892,731 | $ 1,535,484,890 | $ 1,238,065,773 | |
Acquisitions | 0 | 0 | 261,500,960 | |
Improvements | 16,960,862 | 26,307,813 | 52,941,631 | |
Write-off of disposed and fully depreciated and amortized assets | (541,689) | (2,899,972) | (17,023,474) | |
Balance at the end of the year | 1,575,311,904 | 1,558,892,731 | 1,535,484,890 | |
Accumulated depreciation: | ||||
Balance at the beginning of the year | 147,726,630 | 82,099,725 | 31,037,647 | |
Depreciation expense | 70,993,280 | 68,417,556 | 67,991,543 | |
Write-off of disposed and fully depreciated and amortized assets | (47,748) | (2,790,651) | (16,929,465) | |
Balance at the end of the year | 218,672,162 | 147,726,630 | 82,099,725 | |
Encumbrances | $ 502,143,306 | |||
Initial Cost of Company | ||||
Land | 164,113,072 | |||
Buildings and Improvements | 1,332,457,135 | |||
Total | 1,496,570,207 | |||
Cost Capitalized Subsequent to Acquisition | 115,924,455 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 164,113,072 | |||
Buildings and Improvements | 1,411,198,832 | |||
Total | 1,558,892,731 | $ 1,535,484,890 | $ 1,238,065,773 | 1,575,311,904 |
Accumulated Depreciation | $ (218,672,162) | |||
Villages at Spring Hill Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 16,212,438 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 1,130,314 | |||
Buildings and Improvements | 13,069,686 | |||
Total | 14,200,000 | |||
Cost Capitalized Subsequent to Acquisition | 2,432,058 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 1,130,314 | |||
Buildings and Improvements | 15,082,124 | |||
Total | 16,212,438 | 16,212,438 | ||
Accumulated Depreciation | $ (3,381,917) | |||
Harrison Place Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 30,028,344 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 3,087,687 | |||
Buildings and Improvements | 24,776,563 | |||
Total | 27,864,250 | |||
Cost Capitalized Subsequent to Acquisition | 2,651,851 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 3,087,687 | |||
Buildings and Improvements | 26,940,657 | |||
Total | 30,028,344 | 30,028,344 | ||
Accumulated Depreciation | $ (5,696,001) | |||
Club at Summer Valley [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 23,450,916 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 4,850,153 | |||
Buildings and Improvements | 16,649,847 | |||
Total | 21,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 2,643,762 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,850,153 | |||
Buildings and Improvements | 18,600,763 | |||
Total | 23,450,916 | 23,450,916 | ||
Accumulated Depreciation | $ (3,709,669) | |||
Terrace Cove Apartment Homes [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 26,331,012 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 5,469,361 | |||
Buildings and Improvements | 18,030,639 | |||
Total | 23,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,618,337 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 5,469,361 | |||
Buildings and Improvements | 20,861,651 | |||
Total | 26,331,012 | 26,331,012 | ||
Accumulated Depreciation | $ (4,515,179) | |||
The Residences on McGinnis Ferry [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 106,898,808 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 8,682,823 | |||
Buildings and Improvements | 89,817,177 | |||
Total | 98,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 10,542,693 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 8,682,823 | |||
Buildings and Improvements | 98,215,985 | |||
Total | 106,898,808 | 106,898,808 | ||
Accumulated Depreciation | $ (18,677,946) | |||
The 1800 at Barrett Lakes [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 54,701,819 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 40,581,410 | |||
Initial Cost of Company | ||||
Land | 7,012,787 | |||
Buildings and Improvements | 41,987,213 | |||
Total | 49,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 6,931,373 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 7,012,787 | |||
Buildings and Improvements | 47,689,032 | |||
Total | 54,701,819 | 54,701,819 | ||
Accumulated Depreciation | $ (9,597,787) | |||
The Oasis [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 42,800,849 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 39,446,852 | |||
Initial Cost of Company | ||||
Land | 4,325,607 | |||
Buildings and Improvements | 35,674,393 | |||
Total | 40,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,599,085 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,325,607 | |||
Buildings and Improvements | 38,475,242 | |||
Total | 42,800,849 | 42,800,849 | ||
Accumulated Depreciation | $ (7,111,313) | |||
Columns on Wetherington [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 26,977,441 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 1,276,787 | |||
Buildings and Improvements | 23,723,213 | |||
Total | 25,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 2,527,834 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 1,276,787 | |||
Buildings and Improvements | 25,700,654 | |||
Total | 26,977,441 | 26,977,441 | ||
Accumulated Depreciation | $ (4,757,117) | |||
Preston Hills at Mill Creek [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 55,712,100 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 5,813,218 | |||
Buildings and Improvements | 45,186,782 | |||
Total | 51,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 6,304,793 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 5,813,218 | |||
Buildings and Improvements | 49,898,882 | |||
Total | 55,712,100 | 55,712,100 | ||
Accumulated Depreciation | $ (9,269,171) | |||
Eagle Lake Landing Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 19,815,754 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 1,607,980 | |||
Buildings and Improvements | 17,592,020 | |||
Total | 19,200,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,273,947 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 1,607,980 | |||
Buildings and Improvements | 18,207,774 | |||
Total | 19,815,754 | 19,815,754 | ||
Accumulated Depreciation | $ (2,865,589) | |||
Reveal on Cumberland [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 29,239,440 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 21,610,489 | |||
Initial Cost of Company | ||||
Land | 3,299,502 | |||
Buildings and Improvements | 25,939,054 | |||
Total | 29,238,556 | |||
Cost Capitalized Subsequent to Acquisition | 488,671 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 3,299,502 | |||
Buildings and Improvements | 25,939,938 | |||
Total | 29,239,440 | 29,239,440 | ||
Accumulated Depreciation | $ (4,281,274) | |||
Randall Highlands Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 31,928,519 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 2,499,350 | |||
Buildings and Improvements | 29,787,091 | |||
Total | 32,286,441 | |||
Cost Capitalized Subsequent to Acquisition | 403,686 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 2,499,350 | |||
Buildings and Improvements | 29,429,169 | |||
Total | 31,928,519 | 31,928,519 | ||
Accumulated Depreciation | $ (4,440,746) | |||
Heritage Place Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 11,322,086 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 8,573,416 | |||
Initial Cost of Company | ||||
Land | 1,697,036 | |||
Buildings and Improvements | 7,952,964 | |||
Total | 9,650,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,852,727 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 1,697,036 | |||
Buildings and Improvements | 9,625,050 | |||
Total | 11,322,086 | 11,322,086 | ||
Accumulated Depreciation | $ (1,858,096) | |||
Rosemont at East Cobb [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 19,118,615 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 13,238,815 | |||
Initial Cost of Company | ||||
Land | 3,599,586 | |||
Buildings and Improvements | 12,850,414 | |||
Total | 16,450,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,282,088 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 3,599,586 | |||
Buildings and Improvements | 15,519,029 | |||
Total | 19,118,615 | 19,118,615 | ||
Accumulated Depreciation | $ (2,986,811) | |||
Ridge Crossings Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 75,938,351 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 57,605,492 | |||
Initial Cost of Company | ||||
Land | 7,747,295 | |||
Buildings and Improvements | 64,252,705 | |||
Total | 72,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 5,751,824 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 7,747,295 | |||
Buildings and Improvements | 68,191,056 | |||
Total | 75,938,351 | 75,938,351 | ||
Accumulated Depreciation | $ (11,380,243) | |||
Bella Terra at City Center [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 40,513,782 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 5,895,389 | |||
Buildings and Improvements | 31,704,611 | |||
Total | 37,600,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,717,531 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 5,895,389 | |||
Buildings and Improvements | 34,618,393 | |||
Total | 40,513,782 | 40,513,782 | ||
Accumulated Depreciation | $ (6,028,447) | |||
Hearthstone at City Center [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 57,102,489 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 7,219,143 | |||
Buildings and Improvements | 46,180,857 | |||
Total | 53,400,000 | |||
Cost Capitalized Subsequent to Acquisition | 5,309,908 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 7,219,143 | |||
Buildings and Improvements | 49,883,346 | |||
Total | 57,102,489 | 57,102,489 | ||
Accumulated Depreciation | $ (8,681,129) | |||
Arbors at Brookfield [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 73,657,706 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 7,553,349 | |||
Buildings and Improvements | 59,246,651 | |||
Total | 66,800,000 | |||
Cost Capitalized Subsequent to Acquisition | 8,595,856 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 7,553,349 | |||
Buildings and Improvements | 66,104,357 | |||
Total | 73,657,706 | 73,657,706 | ||
Accumulated Depreciation | $ (10,867,459) | |||
Carrington Park [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 41,124,678 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 2,517,886 | |||
Buildings and Improvements | 36,962,114 | |||
Total | 39,480,000 | |||
Cost Capitalized Subsequent to Acquisition | 2,546,434 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 2,517,886 | |||
Buildings and Improvements | 38,606,792 | |||
Total | 41,124,678 | 41,124,678 | ||
Accumulated Depreciation | $ (5,662,459) | |||
Delano At North Richland Hills [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 41,194,263 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 29,790,989 | |||
Initial Cost of Company | ||||
Land | 3,941,458 | |||
Buildings and Improvements | 34,558,542 | |||
Total | 38,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,702,724 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 3,941,458 | |||
Buildings and Improvements | 37,252,805 | |||
Total | 41,194,263 | 41,194,263 | ||
Accumulated Depreciation | $ (6,234,139) | |||
Meadows at North Richland Hills [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 35,186,877 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 25,436,887 | |||
Initial Cost of Company | ||||
Land | 4,054,337 | |||
Buildings and Improvements | 28,545,663 | |||
Total | 32,600,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,516,866 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,054,337 | |||
Buildings and Improvements | 31,132,540 | |||
Total | 35,186,877 | 35,186,877 | ||
Accumulated Depreciation | $ (5,450,226) | |||
Kensington by The Vineyard [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 45,992,784 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 34,087,674 | |||
Initial Cost of Company | ||||
Land | 3,938,677 | |||
Buildings and Improvements | 42,261,323 | |||
Total | 46,200,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,036,500 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 3,938,677 | |||
Buildings and Improvements | 42,054,107 | |||
Total | 45,992,784 | 45,992,784 | ||
Accumulated Depreciation | $ (5,846,391) | |||
Monticello By The Vineyard [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 54,797,163 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 41,159,556 | |||
Initial Cost of Company | ||||
Land | 5,386,400 | |||
Buildings and Improvements | 46,813,600 | |||
Total | 52,200,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,920,646 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 5,386,400 | |||
Buildings and Improvements | 49,410,763 | |||
Total | 54,797,163 | 54,797,163 | ||
Accumulated Depreciation | $ (7,640,967) | |||
The Shores [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 35,641,991 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 23,944,543 | |||
Initial Cost of Company | ||||
Land | 2,100,531 | |||
Buildings and Improvements | 34,149,469 | |||
Total | 36,250,000 | |||
Cost Capitalized Subsequent to Acquisition | 301,757 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 2,100,531 | |||
Buildings and Improvements | 33,541,460 | |||
Total | 35,641,991 | 35,641,991 | ||
Accumulated Depreciation | $ (4,320,907) | |||
Lakeside at Coppell [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 60,736,811 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 45,217,115 | |||
Initial Cost of Company | ||||
Land | 4,789,210 | |||
Buildings and Improvements | 55,710,790 | |||
Total | 60,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,770,874 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,789,210 | |||
Buildings and Improvements | 55,947,601 | |||
Total | 60,736,811 | 60,736,811 | ||
Accumulated Depreciation | $ (7,520,681) | |||
Meadows at River Run [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 60,819,291 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 43,065,800 | |||
Initial Cost of Company | ||||
Land | 1,899,956 | |||
Buildings and Improvements | 56,600,044 | |||
Total | 58,500,000 | |||
Cost Capitalized Subsequent to Acquisition | 3,680,102 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 1,899,956 | |||
Buildings and Improvements | 58,919,335 | |||
Total | 60,819,291 | 60,819,291 | ||
Accumulated Depreciation | $ (8,154,462) | |||
Peak View at T-Bone Ranch [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 40,882,430 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 2,461,583 | |||
Buildings and Improvements | 37,838,417 | |||
Total | 40,300,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,390,664 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 2,461,583 | |||
Buildings and Improvements | 38,420,847 | |||
Total | 40,882,430 | 40,882,430 | ||
Accumulated Depreciation | $ (4,743,945) | |||
Park Valley Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 55,704,559 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 44,691,749 | |||
Initial Cost of Company | ||||
Land | 9,991,810 | |||
Buildings and Improvements | 41,408,190 | |||
Total | 51,400,000 | |||
Cost Capitalized Subsequent to Acquisition | 5,514,893 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 9,991,810 | |||
Buildings and Improvements | 45,712,749 | |||
Total | 55,704,559 | 55,704,559 | ||
Accumulated Depreciation | $ (6,508,171) | |||
Peak View by Horseshoe Lake [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 45,261,078 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 33,692,519 | |||
Initial Cost of Company | ||||
Land | 2,436,847 | |||
Buildings and Improvements | 41,763,153 | |||
Total | 44,200,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,868,333 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 2,436,847 | |||
Buildings and Improvements | 42,824,231 | |||
Total | 45,261,078 | 45,261,078 | ||
Accumulated Depreciation | $ (5,750,808) | |||
Stoneridge Farms [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 49,642,361 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 4,064,811 | |||
Buildings and Improvements | 43,685,189 | |||
Total | 47,750,000 | |||
Cost Capitalized Subsequent to Acquisition | 2,887,680 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,064,811 | |||
Buildings and Improvements | 45,577,550 | |||
Total | 49,642,361 | 49,642,361 | ||
Accumulated Depreciation | $ (5,914,788) | |||
Fielder's Creek [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 33,544,285 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 4,219,943 | |||
Buildings and Improvements | 28,180,057 | |||
Total | 32,400,000 | |||
Cost Capitalized Subsequent to Acquisition | 1,819,354 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 4,219,943 | |||
Buildings and Improvements | 29,324,342 | |||
Total | 33,544,285 | 33,544,285 | ||
Accumulated Depreciation | $ (3,618,169) | |||
Landings of Brentwood Brentwood TN [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 114,774,696 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 14,525,434 | |||
Buildings and Improvements | 95,474,566 | |||
Total | 110,000,000 | |||
Cost Capitalized Subsequent to Acquisition | 8,014,414 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 14,525,434 | |||
Buildings and Improvements | 100,249,262 | |||
Total | 114,774,696 | 114,774,696 | ||
Accumulated Depreciation | $ (11,469,916) | |||
1250 West Apartments [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 55,296,350 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 9,304,511 | |||
Buildings and Improvements | 46,467,989 | |||
Total | 55,772,500 | |||
Cost Capitalized Subsequent to Acquisition | 929,233 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 9,304,511 | |||
Buildings and Improvements | 45,991,839 | |||
Total | 55,296,350 | 55,296,350 | ||
Accumulated Depreciation | $ (4,612,531) | |||
Sixteen50 @ Lake Ray Hubbard [Member] | ||||
Real Estate: | ||||
Balance at the end of the year | 62,961,818 | |||
Ownership Percent | 100.00% | |||
Accumulated depreciation: | ||||
Encumbrances | $ 0 | |||
Initial Cost of Company | ||||
Land | 5,712,311 | |||
Buildings and Improvements | 57,616,149 | |||
Total | 63,328,460 | |||
Cost Capitalized Subsequent to Acquisition | 1,095,957 | |||
Gross Amount at which Carried at Close of Period | ||||
Land | 5,712,311 | |||
Buildings and Improvements | 57,249,507 | |||
Total | $ 62,961,818 | 62,961,818 | ||
Accumulated Depreciation | $ (5,117,708) |
SCHEDULE III. REAL ESTATE AND_3
SCHEDULE III. REAL ESTATE AND ACCUMULATED DEPRECIATION AND AMORTIZATION - Real Estate and Accumulated Depreciation and Amortization (Footnote) (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 26, 2015 |
Real Estate and Accumulated Depreciation [Line Items] | ||||
Aggregate cost of real estate for federal income tax purposes | $ 1,600,000,000 | |||
Revolving Credit Facility [Member] | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Debt issuance costs, net | $ (3,412,202) | (3,612,316) | $ 0 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||||
Real Estate and Accumulated Depreciation [Line Items] | ||||
Line of credit facility, borrowing capacity | 551,669,000 | $ 200,000,000 | ||
Debt issuance costs, net | $ (3,656,563) |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Reclassifications and Recent Accounting Pronouncements (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Tenant reimbursements (presentation prior to January 1, 2019) | $ 1,069,487 | $ 565,567 | $ 1,519,177 | $ 1,205,201 | $ 19,063,191 | $ 17,365,562 | $ 15,287,216 |
Operating lease right-of-use asset,net | 5,871 | 5,871 | |||||
Operating lease liabilities, net | 5,936 | 5,936 | |||||
Rental income | 42,887,126 | 41,909,599 | 85,204,046 | 82,636,991 | $ 150,900,039 | $ 146,032,596 | $ 128,723,298 |
Accounting Standards Update 2016-02 [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Rental income (presentation prior to January 1, 2019) | 37,749,899 | 74,550,233 | |||||
Tenant reimbursements (presentation prior to January 1, 2019) | 4,159,700 | 8,086,758 | |||||
Rental income (presentation effective January 1, 2019) | $ 41,909,599 | $ 82,636,991 | |||||
Operating lease right-of-use asset,net | 7,656 | 7,656 | |||||
Operating lease liabilities, net | 7,720 | 7,720 | |||||
Variable lease income | $ 4,332,509 | $ 8,410,436 |
Real Estate - Schedule of Real
Real Estate - Schedule of Real Estate Under Development (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate [Line Items] | |||
Land Held for Development | $ 1,585,162,786 | $ 1,575,311,904 | $ 1,558,892,731 |
Real Estate Under Development [Member] | Murfreesboro, TN [Member] | |||
Real Estate [Line Items] | |||
Land Held for Development | 2,469,183 | ||
Construction in Progress | 107,284 | ||
Total Carrying Value | $ 2,576,467 |
Debt - Summary of Advances Ob_3
Debt - Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Revolving credit facilities | $ 548,256,798 | $ 548,012,437 | $ 44,848,788 |
Residential Real Estate [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facilities | 551,669,000 | 551,669,000 | 0 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Deferred financing costs, net | (44,247) | (151,212) | |
Line of Credit [Member] | Residential Real Estate [Member] | |||
Line of Credit Facility [Line Items] | |||
Revolving credit facilities | 0 | 45,000,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Deferred financing costs, net | $ (3,412,202) | $ (3,612,316) | $ 0 |
Debt - Summary of Advances Ob_4
Debt - Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility (Parenthetical) (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Accumulated amortization of deferred financing costs | $ 0 | $ 280,753 | $ 173,788 |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Accumulated amortization of deferred financing costs | $ 628,755 | $ 428,641 | $ 0 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published (Parenthetical) (Detail) - Common Stock [Member] - Share Repurchase Plan Pre-Published Valuation [Member] | 6 Months Ended |
Jun. 30, 2019 | |
Class of Stock [Line Items] | |
Holding period of shares repurchased | 1 year |
Share repurchase plan, maximum period of time allowed from date of death or disability of shareholder to request holding period exemption for shares to be repurchased | 2 years |