Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Steadfast Apartment REIT, Inc. | ' |
Entity Central Index Key | '0001585219 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 5,832,486 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Real Estate: | ' | ' |
Land | $14,537,515 | $0 |
Building and improvements | 70,320,135 | 0 |
Tenant origination and absorption costs | 2,314,230 | 0 |
Investments in real estate | 87,171,880 | 0 |
Less accumulated depreciation and amortization | -1,354,372 | 0 |
Total real estate, net | 85,817,508 | 0 |
Cash and cash equivalents | 20,258,072 | 203,500 |
Restricted cash | 1,067,730 | 0 |
Rents and other receivables | 461,983 | 0 |
Deferred financing costs and other assets, net | 3,526,090 | 0 |
Total assets | 111,131,383 | 203,500 |
Liabilities: | ' | ' |
Accounts payable and accrued liabilities | 1,870,005 | 74,771 |
Mortgage notes payable | 60,970,000 | 0 |
Distributions payable | 271,654 | 0 |
Due to affiliates | 593,502 | 11,873 |
Total liabilities | 63,705,161 | 86,644 |
Commitments and Contingencies | ' | ' |
Redeemable common stock | 200,556 | 0 |
Stockholders’ Equity: | ' | ' |
Preferred stock, $0.01 per share; 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 52,430,352 | 203,355 |
Cumulative distributions and net losses | -5,246,372 | -86,644 |
Total stockholders’ equity | 47,225,666 | 116,856 |
Total liabilities and stockholders’ equity | 111,131,383 | 203,500 |
Common Stock | ' | ' |
Stockholders’ Equity: | ' | ' |
Common stock, $0.01 par value per share | 41,676 | 135 |
Convertible Stock | ' | ' |
Stockholders’ Equity: | ' | ' |
Common stock, $0.01 par value per share | $10 | $10 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 999,999,000 | 999,999,000 |
Common stock, shares issued | 4,167,638 | 13,500 |
Common stock, shares outstanding | 4,167,638 | 13,500 |
Convertible Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Revenues: | ' | ' | ' |
Rental income | $0 | $1,601,385 | $1,785,964 |
Tenant reimbursements and other | 0 | 138,663 | 146,948 |
Total revenues | 0 | 1,740,048 | 1,932,912 |
Expenses: | ' | ' | ' |
Operating, maintenance and management | 0 | 441,824 | 498,382 |
Real estate taxes and insurance | 0 | 284,297 | 304,649 |
Fees to affiliates | 0 | 953,666 | 1,713,203 |
Depreciation and amortization | 0 | 1,204,076 | 1,354,372 |
Interest expense | 0 | 287,399 | 405,468 |
General and administrative expenses | 22,792 | 486,056 | 1,075,227 |
Acquisition costs | 0 | 515,705 | 940,535 |
Total expenses | 22,792 | 4,173,023 | 6,291,836 |
Net loss | ($22,792) | ($2,432,975) | ($4,358,924) |
Net loss per common share - basic and diluted (in dollars per share) | ($2.41) | ($0.86) | ($3.56) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 9,450 | 2,833,846 | 1,224,298 |
Distributions declared per share | $0 | $0.23 | $0.44 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Common | Common | Additional Paid-In Capital | Cumulative Distributions & Net Losses |
Common Stock | Convertible Stock | |||||
BALANCE, beginning of period (in usd) at Aug. 21, 2013 | $0 | ' | $0 | $0 | $0 | $0 |
BALANCE, beginning of period (in shares) at Aug. 21, 2013 | ' | ' | 0 | 0 | ' | ' |
Increase (decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | 13,500 | ' | ' | ' |
Issuance of common stock (in usd) | 202,500 | ' | 135 | ' | 202,365 | ' |
Issuance of convertible stock (in shares) | ' | ' | ' | 1,000 | ' | ' |
Issuance of convertible stock (in usd) | 1,000 | ' | ' | 10 | 990 | ' |
Net loss for period | -86,644 | ' | ' | ' | ' | -86,644 |
BALANCE, end of period (in usd) at Dec. 31, 2013 | 116,856 | ' | 135 | 10 | 203,355 | -86,644 |
BALANCE, end of period (in shares) at Dec. 31, 2013 | ' | ' | 13,500 | 1,000 | ' | ' |
Increase (decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | 4,154,138 | ' | ' | ' |
Issuance of common stock (in usd) | 61,546,939 | ' | 41,541 | ' | 61,505,398 | ' |
Commissions on sales of common stock and related dealer manager fees to affiliates | -5,649,279 | ' | ' | ' | -5,649,279 | ' |
Transfers to redeemable common stock | -200,556 | ' | ' | ' | -200,556 | ' |
Other offering costs to affiliates | -3,509,796 | ' | ' | ' | -3,509,796 | ' |
Distributions declared | -800,804 | -800,804 | ' | ' | ' | -800,804 |
Amortization of stock-based compensation | 81,230 | ' | ' | ' | 81,230 | ' |
Net loss for period | -4,358,924 | ' | ' | ' | ' | -4,358,924 |
BALANCE, end of period (in usd) at Sep. 30, 2014 | 47,225,666 | ' | 41,676 | 10 | 52,430,352 | -5,246,372 |
BALANCE, end of period (in shares) at Sep. 30, 2014 | ' | ' | 4,167,638 | 1,000 | ' | ' |
BALANCE, beginning of period (in usd) at Jun. 30, 2014 | ' | ' | ' | ' | ' | ' |
Increase (decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Distributions declared | ' | -642,532 | ' | ' | ' | ' |
Net loss for period | -2,432,975 | ' | ' | ' | ' | ' |
BALANCE, end of period (in usd) at Sep. 30, 2014 | $47,225,666 | ' | ' | $10 | ' | ' |
BALANCE, end of period (in shares) at Sep. 30, 2014 | ' | ' | ' | 1,000 | ' | ' |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($22,792) | ($4,358,924) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 0 | 1,354,372 |
Amortization of deferred financing costs | 0 | 11,520 |
Amortization of stock-based compensation | 0 | 81,230 |
Change in fair value of interest rate cap agreements | 0 | 140,339 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash for operating activities | 0 | -900,706 |
Rents and other receivables | 0 | -20,953 |
Other assets | 0 | -292,011 |
Accounts payable and accrued liabilities | 19,167 | 1,795,234 |
Due to affiliates, net | 3,625 | 460,036 |
Net cash used in operating activities | 0 | -1,729,863 |
Cash Flows from Investing Activities: | ' | ' |
Acquisition of real estate investments | 0 | -85,518,265 |
Additions to real estate investments | 0 | -107,630 |
Escrow deposits for pending real estate acquisitions | 0 | -3,931,200 |
Restricted cash for investing activities | 0 | -167,024 |
Purchase of interest rate caps | 0 | -502,483 |
Cash used in investing activities | 0 | -90,226,602 |
Cash Flows from Financing Activities: | ' | ' |
Proceeds from issuance of mortgage notes payable | 0 | 60,970,000 |
Proceeds from issuance of common stock | 202,500 | 60,905,353 |
Proceeds from issuance of convertible stock | 1,000 | 0 |
Payments of commissions on sale of common stock and related dealer manager fees | 0 | -5,649,279 |
Reimbursement of other offering costs to affiliates | 0 | -3,388,203 |
Payment of deferred financing costs | 0 | -498,240 |
Distributions to common stockholders | 0 | -328,594 |
Net cash provided by financing activities | 203,500 | 112,011,037 |
Net increase in cash and cash equivalents | 203,500 | 20,054,572 |
Cash and cash equivalents, beginning of period | 0 | 203,500 |
Cash and cash equivalents, end of period | 203,500 | 20,258,072 |
Supplemental Disclosures of Cash Flow Information: | ' | ' |
Interest paid | 0 | 146,120 |
Distributions payable | 0 | 271,654 |
Application of escrow deposits to acquire real estate | 0 | 1,545,985 |
Increase in amounts receivable from transfer agent | 0 | 441,030 |
Increase in amounts payable to affiliates for other offering costs | 0 | 121,593 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | $0 | ($200,556) |
Organization_and_Business
Organization and Business | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Business | ' |
Organization and Business | |
Steadfast Apartment REIT, Inc. (the “Company”) was formed on August 22, 2013, as a Maryland corporation that intends to qualify as a real estate investment trust (“REIT”). 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 convertible stock (the “Convertible Stock”) as described in Note 6. | |
Substantially all of the Company’s business is conducted through Steadfast Apartment REIT Operating Partnership, L.P. (the “Operating Partnership”), a Delaware limited partnership formed on August 27, 2013. 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, executed a Limited Partnership Agreement (the “Partnership Agreement”) on September 3, 2013. As the Company accepts subscriptions for shares of its common stock, the Company transfers substantially all of the net offering proceeds from its Public Offering (defined below) to the Operating Partnership as a capital contribution in exchange for partnership interests and the Company’s percentage ownership in the Operating Partnership increases proportionately. | |
As of September 30, 2014, the Company owned four multifamily properties comprising a total of 1,047 apartment homes. For more information on the Company's real estate portfolio, see Note 3. | |
Public Offering | |
On December 30, 2013, the Securities and Exchange Commission (the “SEC”) declared effective the Company’s registration statement on Form S-11 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 commenced its Public Offering on December 30, 2013. The Company may, from time to time, in its sole discretion, change the price at which the Company offers shares to the public in the Primary Offering or 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 Company may reallocate shares of common stock registered in the Public Offering between the Primary Offering and the DRP. | |
Pursuant to the terms of the Public Offering, offering proceeds were held in an escrow account until the Company raised the minimum offering amount of $2,000,000. On February 27, 2014, the Company raised the minimum offering amount and the offering proceeds held in escrow were released to the Company. As of September 30, 2014, the Company had sold 4,139,141 shares of common stock in the Public Offering for gross proceeds of $61,546,939, including 14,074 shares of common stock issued pursuant to the DRP for gross offering proceeds of $200,556. The Company will continue to offer shares of the Company’s common stock on a continuous basis until the Public Offering terminates on or before December 30, 2015, unless extended. However, in certain states the Public Offering may continue for only one year unless the Company renews the offering period for an additional year. The Company reserves the right to terminate the Public Offering at any time. | |
The Company intends to use substantially all of the net proceeds from the Public Offering to invest in and manage a diverse portfolio of multifamily properties located in targeted markets throughout the United States. In addition to the Company’s focus on multifamily properties, the Company may also make selective strategic acquisitions of other types of commercial properties. The Company may also acquire or originate mortgage, mezzanine, bridge and other real estate loans and equity securities of other real estate companies. | |
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, the Operating Partnership and the Advisor (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, 2014. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties and real estate-related assets, sources and presents investment opportunities to the Company’s board of directors and provides investment management services on the Company’s behalf. The Advisor has also entered into an Advisory Services Agreement with Crossroads Capital Advisors, LLC (“Crossroads Capital Advisors”), whereby Crossroads Capital Advisors provides advisory services to the Company on behalf of the Advisor. The Company has retained Steadfast Capital Markets Group, LLC (the “Dealer Manager”), an affiliate of the Company, to serve as the dealer manager for the Public Offering. The Dealer Manager is responsible for marketing the Company’s shares of common stock being offered pursuant to the Public Offering. The Advisor, along with the Dealer Manager, also provides offering services, marketing, investor relations and other administrative services on the Company’s behalf. | |
The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership will pay all of the Company’s administrative costs and expenses, and such expenses will be treated as expenses of the Operating Partnership. | |
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_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||
There have been no significant changes to the Company's accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the period from August 22, 2013 (inception) to December 31, 2013. For further information about the Company's accounting policies, refer to the Company's consolidated financial statements and notes thereto for the period from August 22, 2013 (inception) to December 31, 2013 included in the Company's Annual Report on Form 10-K filed with the SEC on March 21, 2014. | ||||||||||||||
Principles of Consolidation and Basis of Presentation | ||||||||||||||
The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. | ||||||||||||||
The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the period from August 22, 2013 (inception) to December 31, 2013. | ||||||||||||||
Use of Estimates | ||||||||||||||
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: | ||||||||||||||
• | Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; | |||||||||||||
• | Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |||||||||||||
• | Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. | ||||||||||||||
The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. | ||||||||||||||
Interest rate cap agreements - These derivatives are recorded at fair value. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in deferred financing costs and other assets in the accompanying consolidated balance sheets. | ||||||||||||||
The following table reflects the Company's assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: | ||||||||||||||
September 30, 2014 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||
Interest rate cap agreements | $ | — | $ | 362,144 | $ | — | ||||||||
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, due to affiliates and mortgage notes payable. | ||||||||||||||
The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables and accounts payable and accrued liabilities 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 mortgage notes payable are classified as Level 3 within the fair value hierarchy. | ||||||||||||||
The fair value of the mortgage notes payable is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of September 30, 2014 and December 31, 2013, the carrying value of the mortgage notes payable approximated their fair value. | ||||||||||||||
Distribution Policy | ||||||||||||||
The Company intends to elect to be taxed as a REIT and to operate as a REIT for federal income tax purposes commencing with the Company’s taxable year ending 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). On April 4, 2014, the Company’s board of directors declared a dividend which began to accrue on April 7, 2014. Distributions paid during the nine months ended September 30, 2014, were based on daily record dates during the period from April 7, 2014 to September 30, 2014 and calculated at a rate of $0.002466 per share per day. Each day during the period from April 7, 2014 to September 30, 2014 was a record date for distributions. | ||||||||||||||
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, the Company’s financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and nine months ended September 30, 2014, the Company declared distributions totaling $0.227 and $0.436 per share of common stock, respectively. | ||||||||||||||
Per Share Data | ||||||||||||||
Basic loss per share attributable to common stockholders for the period presented is 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 assumes each share was issued and outstanding each day 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. | ||||||||||||||
Recently Issued Accounting Standards Updates | ||||||||||||||
In April 2014, the FASB issued new guidance that limits discontinued operations reporting to disposals of components of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (b) the component of an entity or group of components of an entity is disposed of by sale; or (c) the component of an entity or group of components of an entity is disposed of other than by sale. This guidance also requires additional disclosures about discontinued operations and is effective for reporting periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted the new guidance for the reporting period beginning January 1, 2014. As a result of the adoption of this guidance, properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations. As there are no properties currently classified as held for sale, the adoption of this guidance did not have an impact on the presentation of the Company’s consolidated financial statements. | ||||||||||||||
In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede existing revenue guidance under GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for public business entities for annual periods beginning after December 15, 2016, including interim periods within that period. Early adoption is not permitted under GAAP. The Company is currently investigating the impact of this new guidance. | ||||||||||||||
In August 2014, the FASB issued new guidance that requires management to evaluate whether there are conditions and events that raise substantial doubt about an entity’s ability to continue as a going concern. Until now, the requirement to perform a going concern evaluation existed only in auditing standards. The new guidance requires management to evaluate relevant conditions, events and certain management plans that are known or reasonably knowable as of the evaluation date when determining whether substantial doubt about an entity’s ability to continue as a going concern exists. Management will be required to make this evaluation for both annual and interim reporting periods. The standard states substantial doubt about an entity’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. The guidance is effective for annual periods ending after December 15, 2016 and for annual periods and interim periods thereafter. Early adoption is permitted. The Company is currently investigating the impact of this new guidance. |
Real_Estate
Real Estate | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | |||||||||||||||||||||||||||||||
Real Estate | ' | |||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
As of September 30, 2014, the Company owned four multifamily properties, comprising of a total of 1,047 apartment homes. The total acquisition price of the Company’s real estate portfolio was $87,064,250. As of September 30, 2014, the Company’s portfolio was approximately 95.4% occupied and the average monthly rent was $809. | ||||||||||||||||||||||||||||||||
Current Year Acquisitions | ||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2014, the Company acquired the following properties: | ||||||||||||||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||||||||
Property Name | Location | Purchase Date | Units | Acquisition Fee | Loan Coordination Fee | Land | Buildings and Improvements | Tenant Origination and Absorption Costs | Total Purchase Price | |||||||||||||||||||||||
Villages at Spring Hill | Spring Hill, TN | 5/22/14 | 176 | $ | 147,484 | $ | 99,400 | $ | 1,130,314 | $ | 12,650,066 | $ | 419,620 | $ | 14,200,000 | |||||||||||||||||
Harrison Place Apartments | Indianapolis, IN | 6/30/14 | 307 | 296,186 | 195,300 | 3,087,687 | 24,288,806 | 487,757 | 27,864,250 | |||||||||||||||||||||||
Club at Summer Valley | Austin, TX | 8/28/14 | 260 | 231,751 | 150,500 | 4,850,153 | 15,986,068 | 663,779 | 21,500,000 | |||||||||||||||||||||||
Terrace Cove | Austin, TX | 8/28/14 | 304 | 254,984 | 164,500 | 5,469,361 | 17,287,565 | 743,074 | 23,500,000 | |||||||||||||||||||||||
1,047 | $ | 930,405 | $ | 609,700 | $ | 14,537,515 | $ | 70,212,505 | $ | 2,314,230 | $ | 87,064,250 | ||||||||||||||||||||
As of September 30, 2014, accumulated depreciation and amortization related to the Company's consolidated real estate properties and related intangibles were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||||||
Investments in real estate | $ | 14,537,515 | $ | 70,320,135 | $ | 2,314,230 | $ | 87,171,880 | ||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (540,747 | ) | (813,625 | ) | (1,354,372 | ) | |||||||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 14,537,515 | $ | 69,779,388 | $ | 1,500,605 | $ | 85,817,508 | ||||||||||||||||||||||||
Depreciation and amortization expenses were $1,204,076 and $1,354,372 for the three and nine months ended September 30, 2014. | ||||||||||||||||||||||||||||||||
Amortization of the Company’s tenant origination and absorption costs was $718,415 and $813,625 for the three and nine months ended September 30, 2014. Tenant origination and absorption costs had a weighted-average amortization period as of the date of acquisition of less than one year. | ||||||||||||||||||||||||||||||||
Operating Leases | ||||||||||||||||||||||||||||||||
As of September 30, 2014, the Company’s real estate portfolio comprised 1,047 residential units and was 95.4% occupied 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 $181,134 and $0 as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, no tenant represented over 10% of the Company's annualized base rent. |
Deferred_Financing_Costs_and_O
Deferred Financing Costs and Other Assets | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||
Deferred Financing Costs and Other Assets | ' | |||
Deferred Financing Costs and Other Assets | ||||
As of December 31, 2013, there were no deferred financing costs and other assets. As of September 30, 2014, deferred financing costs and other assets, net of accumulated amortization, consisted of: | ||||
September 30, 2014 | ||||
Deferred financing costs | $ | 498,240 | ||
Less: accumulated amortization | (11,520 | ) | ||
486,720 | ||||
Prepaid expenses | 173,480 | |||
Interest rate cap agreements | 362,144 | |||
Escrow deposits for pending real estate acquisitions | 2,385,215 | |||
Deposits | 118,531 | |||
$ | 3,526,090 | |||
Debt
Debt | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Debt | ' | ||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||
Mortgage Notes Payable | |||||||||||||||||||||||||||||
The following is a summary of mortgage notes payable secured by real property as of September 30, 2014. There were no mortgage notes payable as of December 31, 2013. | |||||||||||||||||||||||||||||
Property Name | Payment Type | Maturity Date | Interest Rate | Principal Outstanding at September 30, 2014 | |||||||||||||||||||||||||
1 | Villages at Spring Hill | Principal and interest (1) | 1-Jun-24 | LIBOR + 2.13% (2) | $ | 9,940,000 | |||||||||||||||||||||||
2 | Harrison Place Apartments | Principal and interest (1) | 1-Jul-24 | LIBOR + 1.84% (2) | 19,530,000 | ||||||||||||||||||||||||
3 | Club at Summer Valley | Principal and interest (1) | 1-Sep-24 | LIBOR + 1.98% (2) | 15,050,000 | ||||||||||||||||||||||||
4 | Terrace Cove | Principal and interest (1) | 1-Sep-24 | LIBOR + 1.98% (2) | 16,450,000 | ||||||||||||||||||||||||
$ | 60,970,000 | ||||||||||||||||||||||||||||
_________________ | |||||||||||||||||||||||||||||
-1 | A monthly payment of interest only is due and payable for 48 months from the loan date, after which, a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
-2 | See Note 10 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. | ||||||||||||||||||||||||||||
The following is a summary of the Company's aggregate maturities as of September 30, 2014: | |||||||||||||||||||||||||||||
Maturities During the Years Ending December 31, | |||||||||||||||||||||||||||||
Contractual Obligations | Total | Remainder of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
Principal payments on outstanding debt | $ | 60,970,000 | $ | — | $ | — | $ | — | $ | — | $ | 386,573 | $ | 60,583,427 | |||||||||||||||
For the three and nine months ended September 30, 2014, the Company incurred interest expense of $287,399 and $405,468, respectively. Interest expense for the three and nine months ended September 30, 2014 includes amortization of deferred financing costs of $9,151 and $11,520 and net unrealized losses from the change in fair value of interest rate cap agreements of $57,127 and $140,339, respectively. | |||||||||||||||||||||||||||||
Interest expense of $107,489 and $0 was payable as of September 30, 2014 and December 31, 2013, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||
Sep. 30, 2014 | |||
Stockholders' Equity Note [Abstract] | ' | ||
Stockholders' Equity | ' | ||
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 Company’s common stock entitles 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 Company’s 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 September 30, 2014, the Company had issued 4,139,141 shares of common stock in its Public Offering for offering proceeds of $52,387,864, net of offering costs of $9,159,075, including 14,074 shares of common stock pursuant to the DRP for total proceeds of $200,556. The offering costs primarily consist of selling commissions and dealer manager fees. Offering proceeds include $441,030 and $0 of amounts due from the Company’s transfer agent as of September 30, 2014 and December 31, 2013, respectively, which are included in rents and other receivables in the accompanying consolidated balance sheets. | |||
On February 27, 2014, the Company granted 3,333 shares of restricted common stock to each of its three independent directors pursuant to the Company’s independent directors’ compensation plan at a fair value of $15.00 per share in connection with the Company raising $2,000,000 in the Public Offering. On August 6, 2014, the Company granted 1,666 shares of restricted common stock to each of its three independent directors pursuant to the Company's independent directors' compensation plan at a fair value of $15.00 per share as compensation for services in connection with their re-election to the board of directors at the Company’s annual meeting of stockholders. The shares of restricted common stock vest and become non-forfeitable in four equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant or will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company. | |||
Included in general and administrative expenses is $30,967 and $81,230 for the three and nine months ended September 30, 2014, for compensation expense related to the issuance of restricted common stock. The weighted average remaining term of the restricted common stock is 1.56 years as of September 30, 2014. | |||
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, annual return on the original issue price of those shares, (B) the Company lists its common stock for trading on a national securities exchange, or (C) the Advisory Agreement is terminated or not renewed (other than for “cause” as defined in the Advisory Agreement). In the event of a termination or non-renewal of the Advisory Agreement for cause, all of the shares of the Convertible Stock will be redeemed for $1.00. In general, each share of Convertible Stock will convert into a number of shares of common stock equal to 1/1000 of the quotient of (A) 15% of the excess of (1) the Company’s “enterprise value” plus the aggregate value of distributions paid to date on the then outstanding shares of the Company’s common stock over (2) the aggregate purchase price paid by stockholders for those outstanding shares of common stock plus an aggregated 6.0% cumulative, non-compounded, annual return on the original issue price of those outstanding shares, divided by (B) the Company’s enterprise value divided by the number of outstanding shares of common stock on an as-converted basis, in each case calculated as of the date of the conversion. | |||
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, into one or more classes or series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of September 30, 2014 and December 31, 2013, 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 is $14.25. The Company’s board of directors may, in its sole discretion, from time to time, change this price based upon changes in the Company’s estimated value per share, the then current price of shares of the Company’s common stock offered in the Public Offering 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, in its sole discretion, amend, suspend, or terminate the DRP 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. | |||
Prior to the date the Company publishes an estimated value per share of its common stock, the purchase price for shares repurchased under the Company’s share repurchase plan will be as follows: | |||
Repurchase Price | |||
Share Purchase Anniversary | on Repurchase Date(1) | ||
Less than 1 year | No Repurchase Allowed | ||
1 year | 92.5% of Purchase Price | ||
2 years | 95.0% of Purchase Price | ||
3 years | 97.5% of Purchase Price | ||
4 years | 100.0% of Purchase Price | ||
In the event of a stockholder’s death or disability(2) | Average Issue Price for Shares(3) | ||
Following the date the Company publishes an estimated value per share of its common stock, the purchase price for shares repurchased under the Company’s share repurchase plan will be as follows: | |||
Repurchase Price | |||
Share Purchase Anniversary | on Repurchase Date(1) | ||
Less than 1 year | No Repurchase Allowed | ||
1 year | 92.5% of Estimated Value per Share(4) | ||
2 years | 95.0% of Estimated Value per Share(4) | ||
3 years | 97.5% of Estimated Value per Share(4) | ||
4 years | 100.0% of Estimated Value per Share(4) | ||
In the event of a stockholder’s death or disability(2) | Average Issue Price for Shares(3) | ||
______________________________________________________________ | |||
-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 required one year holding period to be eligible to redeem shares under the Company’s share repurchase plan does not apply in the event of death or disability of a stockholder. | ||
-3 | 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. | ||
-4 | For purposes of the share repurchase plan, the “Estimated Value per Share” will equal the purchase price until the day the Company publicly discloses, subsequent to completion of the Company’s offering stage, a new Estimated Value per Share. The Company’s board of directors will determine an estimated value per share of the Company’s common stock based on valuations by independent third-party appraisers and qualified valuation experts no later than 18 months following the end of the Company’s offering stage, or such earlier time as required by any regulatory requirement regarding the timing of a valuation. | ||
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 as a result of the sale of one or more of the Company’s assets that constitutes a return of capital distribution as a result of such sales. | |||
Repurchases of shares of the Company’s common stock will be made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Repurchase requests will be honored approximately 30 days following the end of the applicable quarter (the “Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior to the Repurchase Date. To date, the Company has not received any redemption requests. | |||
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 redemption requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, a stockholder can (1) withdraw the stockholder’s request for repurchase or (2) ask that the Company honor the stockholder’s request in a future quarter, if any, when such repurchases can be made pursuant to the limitations of the share repurchase plan and when sufficient funds are available. Such pending requests will be honored among all requests for redemptions 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 the Company’s 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. There is no fee in connection with a repurchase of shares of the Company’s common stock. | |||
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 the Company’s 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 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. | |||
Distributions | |||
The Company’s long-term policy will be to pay distributions solely from cash flow from operations. However, the Company expects to have insufficient cash flow from operations available for distribution until the Company makes substantial investments. Further, 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 least during the early stages of the Company’s development and 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. In these instances, 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 from the Public Offering to fund distributions. If the Company pays distributions from sources other than cash flow from operations, the Company will have fewer funds available for investments 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 | |||
On April 4, 2014, 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, which, if paid over a 365-day period, is equivalent to a 6.0% annualized distribution rate based on a purchase price of $15.00 per share of the Company's common stock. This distribution began to accrue on April 7, 2014. The distributions declared accrue daily to stockholders of record as of the close of business on each day and are payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month. There is no guarantee that the Company will continue to pay distributions at this rate or at all. | |||
Distributions declared for the three and nine months ended September 30, 2014 were $642,532 and $800,804, including $269,216 and $321,218, or 18,892 and 22,542 shares, of common stock, respectively, attributable to the DRP. | |||
As of September 30, 2014, $271,654 of distributions declared were payable, which included $120,662, or 8,467 shares of common stock, of distributions reinvested pursuant to the DRP. | |||
Distributions Paid | |||
For three and nine months ended September 30, 2014, the Company paid cash distributions of $279,014 and $328,594, which related to distributions declared for each day in the period from June 1, 2014 through August 31, 2014 and April 7, 2014 through August 31, 2014, respectively. Additionally, for the three and nine months ended September 30, 2014, 12,315 and 14,074 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $175,490 and $200,556. For the three and nine months ended September 30, 2014, the Company paid total distributions of $454,504 and $529,150. |
Related_Party_Arrangements
Related Party Arrangements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||||||
Related Party Arrangements | ' | ||||||||||||||||||||
Related Party Arrangements | |||||||||||||||||||||
The Company has entered into the Advisory Agreement with the Advisor and a Dealer Manager Agreement with the Dealer Manager with respect to the Public Offering. Pursuant to the Advisory Agreement and Dealer Manager Agreement, the Company is 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 for the three and nine months ended September 30, 2014 and for the period from August 22, 2013 (inception) to September 30, 2013 and amounts outstanding to the Advisor and its affiliates as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
Incurred For the | Payable as of | ||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | Period from August 22, 2013 (Inception) to September 30, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||||
Consolidated Statements of Operations: | |||||||||||||||||||||
Expensed | |||||||||||||||||||||
Organization costs(4) | $ | — | $ | 42,882 | $ | — | $ | — | $ | — | |||||||||||
Investment management fees(1) | 80,155 | 88,740 | — | 41,397 | — | ||||||||||||||||
Acquisition fees(1) | 488,962 | 930,405 | — | 46,416 | — | ||||||||||||||||
Acquisition expenses(2) | 307,183 | 516,067 | — | — | — | ||||||||||||||||
Loan coordination fees(1) | 315,000 | 609,700 | — | — | — | ||||||||||||||||
Property management: | |||||||||||||||||||||
Fees(1) | 50,915 | 58,037 | — | 27,626 | — | ||||||||||||||||
Reimbursement of onsite personnel(3) | 141,426 | 163,500 | — | 36,720 | — | ||||||||||||||||
Other fees(1) | 18,634 | 26,321 | — | 2,249 | — | ||||||||||||||||
Other operating expenses(4) | 173,320 | 430,672 | 3,625 | 274,481 | 11,873 | ||||||||||||||||
Consolidated Balance Sheets: | |||||||||||||||||||||
Capitalized to real estate | |||||||||||||||||||||
Construction management fees | 5,439 | 5,524 | — | 138 | — | ||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||
Other offering costs reimbursement | 2,061,463 | 3,509,796 | — | 164,475 | — | ||||||||||||||||
Selling commissions | 2,486,052 | 3,909,240 | — | — | — | ||||||||||||||||
Dealer manager fees | 1,129,004 | 1,740,039 | — | — | — | ||||||||||||||||
$ | 7,257,553 | $ | 12,030,923 | $ | 3,625 | $ | 593,502 | $ | 11,873 | ||||||||||||
____________________________________________________________________________ | |||||||||||||||||||||
-1 | Included in fees to affiliates in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-2 | Included in acquisition costs in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-3 | Included in operating, maintenance and management in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-4 | Included in general and administrative expenses in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
Organization and Offering Costs | |||||||||||||||||||||
Organization and offering expenses include all expenses (other than sales commissions and the dealer manager fee) to be paid by the Company in connection with the Public Offering, including legal, accounting, printing, mailing and filing fees, charges of the Company’s transfer agent, expenses of organizing the Company, data processing fees, advertising and sales literature costs, bona fide out-of-pocket due diligence costs and amounts to reimburse the Advisor or its affiliates for the salaries of its employees and other costs in connection with preparing supplemental sales materials and providing other administrative services in connection with the Public Offering. Any such reimbursement will not exceed actual expenses incurred by the Advisor. After the termination of the Public Offering, the Advisor will reimburse the Company to the extent total organization and offering expenses borne by the Company exceed 15% of the gross proceeds raised in the Public Offering. In addition, to the extent the Company does not pay the full sales commissions or dealer manager fee for shares sold in the Public Offering, the Company may also reimburse costs of bona fide training and education meetings held by the Company (primarily the travel, meal and lodging costs of registered representatives of broker-dealers), attendance and sponsorship fees and cost reimbursement of employees of the Company’s affiliates to attend seminars conducted by broker-dealers and, in certain cases, reimbursement to participating broker-dealers for technology costs associated with the offering, costs and expenses related to such technology costs, and costs and expenses associated with the facilitation of the marketing of the Company’s shares and the ownership of the Company’s shares by such broker-dealers’ customers; provided, however, that the Company will not pay any of the foregoing costs to the extent that such payment would cause total underwriting compensation paid by the Company to exceed 10% of the gross offering proceeds of the Offering, as required by the rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”). | |||||||||||||||||||||
Organization and offering costs include payments made to Crossroads Capital Advisors, an affiliate of the Sponsor, for certain specified services provided to the Company on behalf of the Advisor, including, without limitation, establishing operational and administrative processes; engaging and negotiating with vendors; providing recommendations and advice for the development of marketing materials and ongoing communications with investors; and assisting in public relations activities and the administration of the DRP and share redemption plan. As of September 30, 2014, the Advisor had incurred $750,006 of amounts payable to Crossroads Capital Advisors for the services described above. | |||||||||||||||||||||
The amount of reimbursable organization and offering (“O&O”) costs that have been paid or recognized from inception through September 30, 2014 is as follows: | |||||||||||||||||||||
Amount | Percentage of Gross Offering Proceeds | ||||||||||||||||||||
Gross offering proceeds: | $ | 61,346,383 | 100 | % | |||||||||||||||||
O&O limitation | 15 | % | |||||||||||||||||||
Total O&O costs available to be paid/reimbursed | $ | 9,201,957 | 15 | % | |||||||||||||||||
O&O expenses recorded: | |||||||||||||||||||||
Sales commissions paid | $ | 3,909,240 | 6.37 | % | |||||||||||||||||
Broker dealer fees paid | 1,740,039 | 2.84 | % | ||||||||||||||||||
Offering cost reimbursements accrual | 3,509,796 | 5.72 | % | ||||||||||||||||||
Organizational costs reimbursements | 42,882 | 0.07 | % | ||||||||||||||||||
Total O&O cost reimbursements recorded by the Company | $ | 9,201,957 | 15 | % | |||||||||||||||||
When recognized, organization costs are expensed as incurred. From inception through September 30, 2014, the Advisor incurred $42,882 of organizational costs on the Company’s behalf, all of which was reimbursed to the Advisor. | |||||||||||||||||||||
Offering costs, including selling commissions and dealer manager fees, are deferred and charged to stockholders’ equity as such amounts are reimbursed to the Advisor, the Dealer Manager or their affiliates from gross offering proceeds. For the three and nine months ended September 30, 2014, the Advisor incurred $2,078,946 and $5,747,990 of offering costs related to the Public Offering. The Advisor has incurred total offering costs related to the Public Offering of $6,969,383 from inception through September 30, 2014, of which $3,459,587 is deferred and may be reimbursable, subject to the limitations described above and the approval of the independent directors. | |||||||||||||||||||||
The Company accrued $164,475 for the reimbursement of offering costs in the accompanying balance sheet as of September 30, 2014. The deferred offering costs of $3,459,587 were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceed the 15% limitation described above. | |||||||||||||||||||||
Investment Management Fee | |||||||||||||||||||||
The Company pays the Advisor a monthly investment management fee equal to one-twelfth of 0.50% of the cost of the Company’s real properties and real estate-related assets until the aggregate cost of the Company’s investments in real properties and real estate related assets equals $300,000,000. Thereafter, the Company will pay the Advisor a monthly investment management fee equal to one-twelfth of 1.0% of the cost of investments in properties and real estate-related assets. Such fee will be calculated including acquisition fees, acquisition expenses and any debt attributable to such investments, or the Company’s proportionate share thereof in the case of investments made through joint ventures. | |||||||||||||||||||||
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 at the time of the acquisition of a property or a real estate-related asset), the Company will pay 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 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 (each a “Property Management Agreement”) at September 30, 2014 is 3.0% of the annual gross revenue collected at the property which is usual and customary for comparable property management services rendered to similar properties in similar geographic markets, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. | |||||||||||||||||||||
In addition to the property management fee, the Property Management Agreements also specify certain other fees payable to the Property Manager for benefit administration, information technology infrastructure, licenses, and support, and training services. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees. | |||||||||||||||||||||
Construction Management Fee | |||||||||||||||||||||
The Company has entered into Construction Management Agreements 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 (each a “Construction Management Agreement”) has ranged from 8.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. For all properties acquired after October 15, 2014, such fees will be in an amount equal to 8.0% of the total cost of the project. Generally, each Construction Management Agreement can be terminated by either party with 30 days prior written notice to the other party. | |||||||||||||||||||||
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 employee costs 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's first test of the 2%/25% Limitation is for the four fiscal quarters ended September 30, 2014. The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2%/25% Limitation, unless approved by the independent directors. For purposes of determining the 2%/25% Limitation amount, “Average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company that are in any way related to the Company’s operation, including the Company’s allocable share of Advisor overhead and investment management fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of the Company’s assets; (f) acquisition fees and acquisition expenses (including expenses relating to potential acquisitions that the Company does not close); (g) real estate commissions on the resale of investments; and (h) other expenses connected with the acquisition, disposition, management and ownership of investments (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of real property). | |||||||||||||||||||||
For the four fiscal quarters ended September 30, 2014, the Company's total operating expenses exceeded the 2%/25% Limitation by $583,345 (the “Excess Amount”). The Company's independent directors have determined that such Excess Amount was justified based on unusual and non-recurring factors, including the fact that the Excess Amount reflects legitimate total operating expenses necessary for the operation of the Company’s business, the Company was in registration for its initial public offering of common stock from September 6, 2013 through December 30, 2013, the Company did not commence operations until its first property acquisition on May 22, 2014 and the rate of investments thereafter caused the expenses incurred as a result of being a public company to be disproportionate to the Company’s average invested assets and net income. | |||||||||||||||||||||
Disposition Fee | |||||||||||||||||||||
If the Advisor or its affiliates provides 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 of the brokerage commissions paid, but in no event to exceed 1% of the sales price of each property or real estate-related asset sold. To the extent the disposition fee is paid upon the sale of any assets other than real property, it will be included as an operating expense for purposes of the 2%/25% Limitation. In connection with the sale of securities, the disposition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the disposition fee to a firm that is not a registered broker-dealer. As of September 30, 2014, the Company had not sold or otherwise disposed of property or any real estate-related assets. Accordingly, the Company had not incurred any disposition fees as of September 30, 2014. | |||||||||||||||||||||
Selling Commissions and Dealer Manager Fees | |||||||||||||||||||||
The Company pays 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. A reduced sales commission and dealer manager fee is paid in connection with volume discounts and certain other categories of sales. No sales commission or dealer manager fee is paid with respect to shares of common stock issued pursuant to the DRP. The Dealer Manager reallows 100% of sales commissions earned to participating broker-dealers. The Dealer Manager may also reallow to any participating broker-dealer a portion of the dealer manager fee that is attributable to that participating broker-dealer for certain marketing costs of that participating broker-dealer. The Dealer Manager will negotiate the reallowance of the dealer manager fee on a case-by-case basis with each participating broker-dealer subject to various factors associated with the cost of the marketing program. |
Incentive_Award_Plan_and_Indep
Incentive Award Plan and Independent Director Compensation | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Incentive Award Plan and Independent Director Compensation | ' |
Incentive Award Plan and Independent Director Compensation | |
The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. | |
Under the Company’s independent directors’ compensation plan, which is a sub-plan of the Incentive Award Plan, each of the Company’s independent directors was entitled to receive 3,333 shares of restricted common stock once the Company raised $2,000,000 in gross offering proceeds in the Public Offering. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 1,666 shares of restricted common stock. One-fourth of the shares of restricted common stock generally vest and become non-forfeitable upon issuance and the remaining portion will vest in three equal annual installments beginning on the date of grant and ending on the third anniversary of the date of grant; provided, however, that the restricted stock will become fully vested and become non-forfeitable on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company. | |
On February 27, 2014, the Company raised over $2,000,000 in gross offering proceeds in the Public Offering and granted each of the three independent directors 3,333 shares of restricted common stock. On August 7, 2014, the Company granted 1,666 shares of restricted common stock to each of its three independent directors upon their re-election to the Company’s board of directors at the annual meeting of stockholders. The Company recorded stock-based compensation expense of $30,967 and $81,230 for the three and nine months ended September 30, 2014, 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 (except the audit committee chairperson will receive an additional $10,000 annual retainer, prorated for any partial term). In addition, the independent directors are 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. The Company recorded an operating expense of, and paid, $57,750 and $174,250 for the three and nine months ended September 30, 2014, respectively, related to the independent directors annual retainer, which is included in general and administrative expenses in the accompanying consolidated statements of operations. The Company recorded an operating expense of $19,167 for the period from August 22, 2013 (inception) to September 30, 2013 related to the independent directors annual retainer, which is included in the general and administrative expenses in the accompanying consolidated statements of operations |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Economic Dependency | |
The Company is dependent on the Advisor and the Dealer Manager for certain services that are essential to the Company, including the sale of the Company’s shares of common and preferred stock available for issue; the identification, evaluation, negotiation, purchase, and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources. | |
Concentration of Credit Risk | |
The geographic concentration of the Company's portfolio makes it particularly susceptible to adverse economic developments in the Austin, Texas, Indianapolis, Indiana 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_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||
The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. As of September 30, 2014, the Company had four interest rate cap agreements with notional amounts totaling $60,970,000. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2014: | |||||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Villages at Spring Hill | Cap | Cap Floating Rate | 5/22/14 | 5/31/15 | $ | 9,940,000 | One-Month LIBOR | 0.1565 | % | 2 | % | $ | 49,302 | $ | — | ||||||||||||||
5/31/16 | 2.5 | % | |||||||||||||||||||||||||||
5/31/17 | 3 | % | |||||||||||||||||||||||||||
6/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Harrison Place | Cap | Cap Floating Rate | 6/30/14 | 6/30/15 | 19,530,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 106,539 | — | |||||||||||||||||
6/30/16 | 2.5 | % | |||||||||||||||||||||||||||
6/30/17 | 3 | % | |||||||||||||||||||||||||||
7/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Club at Summer Valley | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 15,050,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 98,567 | — | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Terrace Cove | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 16,450,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 107,736 | — | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
$ | 60,970,000 | $ | 362,144 | $ | — | ||||||||||||||||||||||||
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 nine months ended September 30, 2014 resulted in an unrealized loss of $57,127 and $140,339, which is included in interest expense in the accompanying consolidated statements of operations. The fair value of the interest rate caps of $362,144 as of September 30, 2014 is included in deferred financing costs and other assets, net on the accompanying consolidated balance sheets. |
Pro_Forma_Information_unaudite
Pro Forma Information (unaudited) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Pro Forma Information (unaudited) | ' | ||||||||||||||||
Pro Forma Information (unaudited) | |||||||||||||||||
The following table summarizes, on an unaudited basis, the consolidated pro forma results of operations of the Company for the three and nine months ended September 30, 2014. The Company acquired two properties during the three months ended September 30, 2014 and four properties during the nine months ended September 30, 2014. These properties contributed $1,932,912 of revenues and $1,202,384 of net loss, including $1,354,372 of depreciation and amortization, to the Company’s results of operations from the date of acquisition to September 30, 2014. The following unaudited pro forma information for the three and nine months ended September 30, 2014 and 2013 has been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2013. 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. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | 2,653,716 | $ | 2,531,041 | $ | 7,961,147 | $ | 7,593,124 | |||||||||
Net loss | $ | (2,823,952 | ) | $ | (3,888,842 | ) | $ | (8,471,857 | ) | $ | (11,666,525 | ) | |||||
Basic and diluted net loss per common share | $ | (0.68 | ) | $ | (0.93 | ) | $ | (2.03 | ) | $ | (2.79 | ) | |||||
The pro forma information reflects adjustments for actual revenues and expenses of the properties acquired during the three and nine months ended September 30, 2014 for the respective period prior to acquisition by the Company. Net income 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, 2013 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. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Status of Our Offering | |
The Company commenced its Public Offering on December 30, 2013. As of November 10, 2014, the Company had sold 5,803,989 shares of common stock in the Public Offering for gross proceeds of $86,341,561, including 34,037 shares of common stock issued pursuant to the DRP for gross offering proceeds of $485,031. | |
Distributions Paid | |
On October 1, 2014, the Company paid distributions of $271,654, which related to distributions declared for each day in the period from September 1, 2014 through September 30, 2014 and consisted of cash distributions paid in the amount of $150,992 and $120,662 in shares issued pursuant to the DRP. | |
On November 3, 2014, the Company paid distributions of $363,414, which related to distributions declared for each day in the period from October 1, 2014 through October 31, 2014 and consisted of cash distributions paid in the amount of $199,600 and $163,814 in shares issued pursuant to the DRP. | |
Amendment and Restatement of the Dealer Manager Agreement | |
On October 15, 2014, the Company entered into the Amended and Restated Dealer Manager Agreement, with the Dealer Manager, which amends the original Dealer Manager Agreement to remove the option for the Dealer Manager, or a participating dealer in the Primary Offering, to elect a trailing sales commission collectively equal to 8.0% of the gross proceeds from the sale of primary shares in the Primary Offering. | |
Acquisition of AMLI at McGinnis Ferry | |
On October 16, 2014, the Company acquired a fee simple interest in a 696-unit mulitfamily residential community located in Suwanee, Goergia, commonly known as AMLI at McGinnis Ferry (the “McGinnis Property”), for an aggregate purchase price of $98,500,000, exclusive of closing costs. The Company has initiated the process to re-name the McGinnis Property to “The Residences on McGinnis Ferry.” | |
The Company financed the payment of the purchase price for the McGinnis Property with (1) proceeds from the Public Offering and (2) a loan in the aggregate principal amount of $73,660,600. The McGinnis Property consists of 40 residential buildings consisting of 208 one-bedroom apartments, 372 two-bedroom apartments and 116 three-bedroom apartments . The apartments range in size from 888 to 1,515 square feet and average 1,217 square feet. An acquisition fee of approximately $1,100,000 and a loan coordination fee of $737,000 were earned by the Advisor in connection with the acquisition of the McGinnis Property. | |
The Company has not yet measured the fair value of the tangible and identifiable intangible assets and liabilities of the acquisition. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation and Basis of Presentation | ||
The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. | ||
Basis of Presentation | ' | |
The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: | ||
• | Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; | |
• | Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. | |
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. | ||
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, due to affiliates and mortgage notes payable. | ||
The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables and accounts payable and accrued liabilities 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. | ||
Distribution Policy | ' | |
Distribution Policy | ||
The Company intends to elect to be taxed as a REIT and to operate as a REIT for federal income tax purposes commencing with the Company’s taxable year ending 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). On April 4, 2014, the Company’s board of directors declared a dividend which began to accrue on April 7, 2014. Distributions paid during the nine months ended September 30, 2014, were based on daily record dates during the period from April 7, 2014 to September 30, 2014 and calculated at a rate of $0.002466 per share per day. Each day during the period from April 7, 2014 to September 30, 2014 was a record date for distributions. | ||
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, the Company’s financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and nine months ended September 30, 2014, the Company declared distributions totaling $0.227 and $0.436 per share of common stock, respectively. | ||
Per Share Data | ' | |
Per Share Data | ||
Basic loss per share attributable to common stockholders for the period presented is 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 assumes each share was issued and outstanding each day 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. | ||
Recently Issued Accounting Standards Updates | ' | |
Recently Issued Accounting Standards Updates | ||
In April 2014, the FASB issued new guidance that limits discontinued operations reporting to disposals of components of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when any of the following occurs: (a) the component of an entity or group of components of an entity meets the criteria to be classified as held for sale; (b) the component of an entity or group of components of an entity is disposed of by sale; or (c) the component of an entity or group of components of an entity is disposed of other than by sale. This guidance also requires additional disclosures about discontinued operations and is effective for reporting periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. The Company early adopted the new guidance for the reporting period beginning January 1, 2014. As a result of the adoption of this guidance, properties that are classified as held for sale in the ordinary course of business on or subsequent to January 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations. As there are no properties currently classified as held for sale, the adoption of this guidance did not have an impact on the presentation of the Company’s consolidated financial statements. | ||
In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede existing revenue guidance under GAAP. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for public business entities for annual periods beginning after December 15, 2016, including interim periods within that period. Early adoption is not permitted under GAAP. The Company is currently investigating the impact of this new guidance. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | |||||||||||||
The following table reflects the Company's assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: | ||||||||||||||
September 30, 2014 | ||||||||||||||
Fair Value Measurements Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||
Interest rate cap agreements | $ | — | $ | 362,144 | $ | — | ||||||||
Real_Estate_Tables
Real Estate (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | ' | |||||||||||||||||||||||||||||||
During the nine months ended September 30, 2014, the Company acquired the following properties: | ||||||||||||||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||||||||
Property Name | Location | Purchase Date | Units | Acquisition Fee | Loan Coordination Fee | Land | Buildings and Improvements | Tenant Origination and Absorption Costs | Total Purchase Price | |||||||||||||||||||||||
Villages at Spring Hill | Spring Hill, TN | 5/22/14 | 176 | $ | 147,484 | $ | 99,400 | $ | 1,130,314 | $ | 12,650,066 | $ | 419,620 | $ | 14,200,000 | |||||||||||||||||
Harrison Place Apartments | Indianapolis, IN | 6/30/14 | 307 | 296,186 | 195,300 | 3,087,687 | 24,288,806 | 487,757 | 27,864,250 | |||||||||||||||||||||||
Club at Summer Valley | Austin, TX | 8/28/14 | 260 | 231,751 | 150,500 | 4,850,153 | 15,986,068 | 663,779 | 21,500,000 | |||||||||||||||||||||||
Terrace Cove | Austin, TX | 8/28/14 | 304 | 254,984 | 164,500 | 5,469,361 | 17,287,565 | 743,074 | 23,500,000 | |||||||||||||||||||||||
1,047 | $ | 930,405 | $ | 609,700 | $ | 14,537,515 | $ | 70,212,505 | $ | 2,314,230 | $ | 87,064,250 | ||||||||||||||||||||
Real Estate and Related Intangibles and Accumulated Depreciation and Amortization | ' | |||||||||||||||||||||||||||||||
As of September 30, 2014, accumulated depreciation and amortization related to the Company's consolidated real estate properties and related intangibles were as follows: | ||||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||||||
Investments in real estate | $ | 14,537,515 | $ | 70,320,135 | $ | 2,314,230 | $ | 87,171,880 | ||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (540,747 | ) | (813,625 | ) | (1,354,372 | ) | |||||||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 14,537,515 | $ | 69,779,388 | $ | 1,500,605 | $ | 85,817,508 | ||||||||||||||||||||||||
Deferred_Financing_Costs_and_O1
Deferred Financing Costs and Other Assets (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||
Schedule of Other Assets | ' | |||
As of December 31, 2013, there were no deferred financing costs and other assets. As of September 30, 2014, deferred financing costs and other assets, net of accumulated amortization, consisted of: | ||||
September 30, 2014 | ||||
Deferred financing costs | $ | 498,240 | ||
Less: accumulated amortization | (11,520 | ) | ||
486,720 | ||||
Prepaid expenses | 173,480 | |||
Interest rate cap agreements | 362,144 | |||
Escrow deposits for pending real estate acquisitions | 2,385,215 | |||
Deposits | 118,531 | |||
$ | 3,526,090 | |||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||||||||||||||||||||||
The following is a summary of mortgage notes payable secured by real property as of September 30, 2014. There were no mortgage notes payable as of December 31, 2013. | |||||||||||||||||||||||||||||
Property Name | Payment Type | Maturity Date | Interest Rate | Principal Outstanding at September 30, 2014 | |||||||||||||||||||||||||
1 | Villages at Spring Hill | Principal and interest (1) | 1-Jun-24 | LIBOR + 2.13% (2) | $ | 9,940,000 | |||||||||||||||||||||||
2 | Harrison Place Apartments | Principal and interest (1) | 1-Jul-24 | LIBOR + 1.84% (2) | 19,530,000 | ||||||||||||||||||||||||
3 | Club at Summer Valley | Principal and interest (1) | 1-Sep-24 | LIBOR + 1.98% (2) | 15,050,000 | ||||||||||||||||||||||||
4 | Terrace Cove | Principal and interest (1) | 1-Sep-24 | LIBOR + 1.98% (2) | 16,450,000 | ||||||||||||||||||||||||
$ | 60,970,000 | ||||||||||||||||||||||||||||
_________________ | |||||||||||||||||||||||||||||
-1 | A monthly payment of interest only is due and payable for 48 months from the loan date, after which, a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
-2 | See Note 10 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. | ||||||||||||||||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||||||||||||||
The following is a summary of the Company's aggregate maturities as of September 30, 2014: | |||||||||||||||||||||||||||||
Maturities During the Years Ending December 31, | |||||||||||||||||||||||||||||
Contractual Obligations | Total | Remainder of 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||||||
Principal payments on outstanding debt | $ | 60,970,000 | $ | — | $ | — | $ | — | $ | — | $ | 386,573 | $ | 60,583,427 | |||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Stockholders' Equity Note [Abstract] | ' | ||
Schedule of share repurchase plan before estimated value per share of common stock is published | ' | ||
Prior to the date the Company publishes an estimated value per share of its common stock, the purchase price for shares repurchased under the Company’s share repurchase plan will be as follows: | |||
Repurchase Price | |||
Share Purchase Anniversary | on Repurchase Date(1) | ||
Less than 1 year | No Repurchase Allowed | ||
1 year | 92.5% of Purchase Price | ||
2 years | 95.0% of Purchase Price | ||
3 years | 97.5% of Purchase Price | ||
4 years | 100.0% of Purchase Price | ||
In the event of a stockholder’s death or disability(2) | Average Issue Price for Shares(3) | ||
-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 required one year holding period to be eligible to redeem shares under the Company’s share repurchase plan does not apply in the event of death or disability of a stockholder. | ||
-3 | 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. | ||
-4 | For purposes of the share repurchase plan, the “Estimated Value per Share” will equal the purchase price until the day the Company publicly discloses, subsequent to completion of the Company’s offering stage, a new Estimated Value per Share. The Company’s board of directors will determine an estimated value per share of the Company’s common stock based on valuations by independent third-party appraisers and qualified valuation experts no later than 18 months following the end of the Company’s offering stage, or such earlier time as required by any regulatory requirement regarding the timing of a valuation. | ||
Schedule of share repurchase plan after estimated value per share of common stock is published | ' | ||
Following the date the Company publishes an estimated value per share of its common stock, the purchase price for shares repurchased under the Company’s share repurchase plan will be as follows: | |||
Repurchase Price | |||
Share Purchase Anniversary | on Repurchase Date(1) | ||
Less than 1 year | No Repurchase Allowed | ||
1 year | 92.5% of Estimated Value per Share(4) | ||
2 years | 95.0% of Estimated Value per Share(4) | ||
3 years | 97.5% of Estimated Value per Share(4) | ||
4 years | 100.0% of Estimated Value per Share(4) | ||
In the event of a stockholder’s death or disability(2) | Average Issue Price for Shares(3) | ||
______________________________________________________________ | |||
-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 required one year holding period to be eligible to redeem shares under the Company’s share repurchase plan does not apply in the event of death or disability of a stockholder. | ||
-3 | 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. | ||
-4 | For purposes of the share repurchase plan, the “Estimated Value per Share” will equal the purchase price until the day the Company publicly discloses, subsequent to completion of the Company’s offering stage, a new Estimated Value per Share. The Company’s board of directors will determine an estimated value per share of the Company’s common stock based on valuations by independent third-party appraisers and qualified valuation experts no later than 18 months following the end of the Company’s offering stage, or such earlier time as required by any regulatory requirement regarding the timing of a valuation. |
Related_Party_Arrangements_Tab
Related Party Arrangements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||||||
Schedule of amounts attributable to the Advisor and its affiliates | ' | ||||||||||||||||||||
Amounts attributable to the Advisor and its affiliates incurred for the three and nine months ended September 30, 2014 and for the period from August 22, 2013 (inception) to September 30, 2013 and amounts outstanding to the Advisor and its affiliates as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
Incurred For the | Payable as of | ||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | Period from August 22, 2013 (Inception) to September 30, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||||
Consolidated Statements of Operations: | |||||||||||||||||||||
Expensed | |||||||||||||||||||||
Organization costs(4) | $ | — | $ | 42,882 | $ | — | $ | — | $ | — | |||||||||||
Investment management fees(1) | 80,155 | 88,740 | — | 41,397 | — | ||||||||||||||||
Acquisition fees(1) | 488,962 | 930,405 | — | 46,416 | — | ||||||||||||||||
Acquisition expenses(2) | 307,183 | 516,067 | — | — | — | ||||||||||||||||
Loan coordination fees(1) | 315,000 | 609,700 | — | — | — | ||||||||||||||||
Property management: | |||||||||||||||||||||
Fees(1) | 50,915 | 58,037 | — | 27,626 | — | ||||||||||||||||
Reimbursement of onsite personnel(3) | 141,426 | 163,500 | — | 36,720 | — | ||||||||||||||||
Other fees(1) | 18,634 | 26,321 | — | 2,249 | — | ||||||||||||||||
Other operating expenses(4) | 173,320 | 430,672 | 3,625 | 274,481 | 11,873 | ||||||||||||||||
Consolidated Balance Sheets: | |||||||||||||||||||||
Capitalized to real estate | |||||||||||||||||||||
Construction management fees | 5,439 | 5,524 | — | 138 | — | ||||||||||||||||
Additional paid-in capital | |||||||||||||||||||||
Other offering costs reimbursement | 2,061,463 | 3,509,796 | — | 164,475 | — | ||||||||||||||||
Selling commissions | 2,486,052 | 3,909,240 | — | — | — | ||||||||||||||||
Dealer manager fees | 1,129,004 | 1,740,039 | — | — | — | ||||||||||||||||
$ | 7,257,553 | $ | 12,030,923 | $ | 3,625 | $ | 593,502 | $ | 11,873 | ||||||||||||
____________________________________________________________________________ | |||||||||||||||||||||
-1 | Included in fees to affiliates in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-2 | Included in acquisition costs in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-3 | Included in operating, maintenance and management in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
-4 | Included in general and administrative expenses in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | ||||||||||||||||||||
Schedule of reimbursable organization and offering costs | ' | ||||||||||||||||||||
The amount of reimbursable organization and offering (“O&O”) costs that have been paid or recognized from inception through September 30, 2014 is as follows: | |||||||||||||||||||||
Amount | Percentage of Gross Offering Proceeds | ||||||||||||||||||||
Gross offering proceeds: | $ | 61,346,383 | 100 | % | |||||||||||||||||
O&O limitation | 15 | % | |||||||||||||||||||
Total O&O costs available to be paid/reimbursed | $ | 9,201,957 | 15 | % | |||||||||||||||||
O&O expenses recorded: | |||||||||||||||||||||
Sales commissions paid | $ | 3,909,240 | 6.37 | % | |||||||||||||||||
Broker dealer fees paid | 1,740,039 | 2.84 | % | ||||||||||||||||||
Offering cost reimbursements accrual | 3,509,796 | 5.72 | % | ||||||||||||||||||
Organizational costs reimbursements | 42,882 | 0.07 | % | ||||||||||||||||||
Total O&O cost reimbursements recorded by the Company | $ | 9,201,957 | 15 | % | |||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | ' | ||||||||||||||||||||||||||||
The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2014: | |||||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | September 30, 2014 | December 31, 2013 | |||||||||||||||||||
Villages at Spring Hill | Cap | Cap Floating Rate | 5/22/14 | 5/31/15 | $ | 9,940,000 | One-Month LIBOR | 0.1565 | % | 2 | % | $ | 49,302 | $ | — | ||||||||||||||
5/31/16 | 2.5 | % | |||||||||||||||||||||||||||
5/31/17 | 3 | % | |||||||||||||||||||||||||||
6/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Harrison Place | Cap | Cap Floating Rate | 6/30/14 | 6/30/15 | 19,530,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 106,539 | — | |||||||||||||||||
6/30/16 | 2.5 | % | |||||||||||||||||||||||||||
6/30/17 | 3 | % | |||||||||||||||||||||||||||
7/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Club at Summer Valley | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 15,050,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 98,567 | — | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Terrace Cove | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 16,450,000 | One-Month LIBOR | 0.1565 | % | 2 | % | 107,736 | — | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
$ | 60,970,000 | $ | 362,144 | $ | — | ||||||||||||||||||||||||
Pro_Forma_Information_unaudite1
Pro Forma Information (unaudited) (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Business Acquisition, Pro Forma Information | ' | ||||||||||||||||
The following unaudited pro forma information for the three and nine months ended September 30, 2014 and 2013 has been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2013. 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. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | 2,653,716 | $ | 2,531,041 | $ | 7,961,147 | $ | 7,593,124 | |||||||||
Net loss | $ | (2,823,952 | ) | $ | (3,888,842 | ) | $ | (8,471,857 | ) | $ | (11,666,525 | ) | |||||
Basic and diluted net loss per common share | $ | (0.68 | ) | $ | (0.93 | ) | $ | (2.03 | ) | $ | (2.79 | ) |
Organization_and_Business_Deta
Organization and Business (Details) (USD $) | 10 Months Ended | 0 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2014 | Apr. 04, 2014 | Sep. 03, 2013 | Aug. 23, 2013 | |
Common Stock | Common Stock | Convertible Stock | |||
Sponsor | Advisor | ||||
Initial capitalization | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | 13,500 | 1,000 |
Share Price | ' | ' | $15 | $15 | ' |
Issuance of common stock | $61,346,383 | ' | ' | $202,500 | $1,000 |
Number of Real Estate Properties | ' | 4 | ' | ' | ' |
Units | ' | 1,047 | ' | ' | ' |
Organization_and_Business_Publ
Organization and Business - Public Offering Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 13 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 13 Months Ended | 0 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Apr. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 30, 2013 | Dec. 30, 2013 | Sep. 30, 2014 | |
IPO | IPO | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | |||||
IPO | IPO | Primary Offering | Distribution Reinvestment Plan | Distribution Reinvestment Plan | ||||||||
Public Offering Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares authorized for sale under registration statement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,666,667 | 7,017,544 | ' |
Registration statement, price per share | ' | ' | ' | ' | ' | ' | $15 | ' | ' | $15 | $14.25 | $14.25 |
Escrow account release threshold, minimum offering amount | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Dividend Reinvestment Plan | ' | 12,315 | 14,074 | 14,074.12 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, dividend reinvestment plan | ' | 175,490 | 200,556 | 200,556 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | 4,139,141 | 4,139,141 | ' | ' | ' |
Initial public offering, gross proceeds | $202,500 | ' | $60,905,353 | ' | ' | ' | ' | $61,546,939 | ' | ' | ' | ' |
Offering period | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Fair Value Measurements (Details) (Interest Rate Cap, Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 |
Level 1 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Interest rate cap agreements | $0 |
Level 2 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Interest rate cap agreements | 362,144 |
Level 3 | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' |
Interest rate cap agreements | $0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
segment | ||||
Distribution Policy | ' | ' | ' | ' |
REIT qualifying ordinary taxable income distribution percentage, minimum | ' | ' | ' | 90.00% |
Common share, distribution rate per share per day, declared (in dollars per share) | ' | ' | $0.00 | ' |
Distributions declared per share | $0 | $0.23 | ' | $0.44 |
Segment Reporting | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 1 |
Real_Estate_Details
Real Estate (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Residential Real Estate [Member] | Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ' | ' | ' | ' |
Number of units in real estate property | 1,047 | 4 | ' | ' |
Contract purchase price | $87,064,250 | ' | ' | ' |
Average percentage of real estate portfolio occupied | 95.40% | ' | ' | ' |
Average monthly collected rent | 809 | ' | ' | ' |
Security Deposit Liability | ' | ' | $181,134 | $0 |
Real_Estate_Purchase_Price_All
Real Estate - Purchase Price Allocation (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Business Acquisition | ' |
Units | 1,047 |
Acquisition Fee | $930,405 |
Loan Coordination Fee | 609,700 |
Land | 14,537,515 |
Buildings and Improvements | 70,212,505 |
Tenant Origination and Absorption Costs | 2,314,230 |
Total Purchase Price | 87,064,250 |
Villages at Spring Hill | ' |
Business Acquisition | ' |
Units | 176 |
Acquisition Fee | 147,484 |
Loan Coordination Fee | 99,400 |
Land | 1,130,314 |
Buildings and Improvements | 12,650,066 |
Tenant Origination and Absorption Costs | 419,620 |
Total Purchase Price | 14,200,000 |
Harrison Place Apartments | ' |
Business Acquisition | ' |
Units | 307 |
Acquisition Fee | 296,186 |
Loan Coordination Fee | 195,300 |
Land | 3,087,687 |
Buildings and Improvements | 24,288,806 |
Tenant Origination and Absorption Costs | 487,757 |
Total Purchase Price | 27,864,250 |
Club at Summer Valley | ' |
Business Acquisition | ' |
Units | 260 |
Acquisition Fee | 231,751 |
Loan Coordination Fee | 150,500 |
Land | 4,850,153 |
Buildings and Improvements | 15,986,068 |
Tenant Origination and Absorption Costs | 663,779 |
Total Purchase Price | 21,500,000 |
Terrace Cove | ' |
Business Acquisition | ' |
Units | 304 |
Acquisition Fee | 254,984 |
Loan Coordination Fee | 164,500 |
Land | 5,469,361 |
Buildings and Improvements | 17,287,565 |
Tenant Origination and Absorption Costs | 743,074 |
Total Purchase Price | $23,500,000 |
Real_Estate_Real_Estate_Intang
Real Estate - Real Estate, Intangibles, Accumulated Depreciation and Amortization (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ' | ' | ' | ' |
Average percentage of real estate portfolio occupied | ' | ' | 95.40% | ' |
Investments in real estate | ' | $87,171,880 | $87,171,880 | $0 |
Less accumulated depreciation and amortization | ' | -1,354,372 | -1,354,372 | 0 |
Total real estate, net | ' | 85,817,508 | 85,817,508 | 0 |
Depreciation and amortization | 0 | 1,204,076 | 1,354,372 | ' |
Land | ' | ' | ' | ' |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ' | ' | ' | ' |
Investments in real estate | ' | 14,537,515 | 14,537,515 | ' |
Less accumulated depreciation and amortization | ' | 0 | 0 | ' |
Total real estate, net | ' | 14,537,515 | 14,537,515 | ' |
Building and Improvements | ' | ' | ' | ' |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ' | ' | ' | ' |
Investments in real estate | ' | 70,320,135 | 70,320,135 | ' |
Less accumulated depreciation and amortization | ' | -540,747 | -540,747 | ' |
Total real estate, net | ' | 69,779,388 | 69,779,388 | ' |
Tenant Origination and Absorption | ' | ' | ' | ' |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ' | ' | ' | ' |
Investments in real estate | ' | 2,314,230 | 2,314,230 | ' |
Less accumulated depreciation and amortization | ' | -813,625 | -813,625 | ' |
Total real estate, net | ' | 1,500,605 | 1,500,605 | ' |
Amortization of intangible assets | ' | $718,415 | $813,625 | ' |
Deferred_Financing_Costs_and_O2
Deferred Financing Costs and Other Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Deferred financing costs | $498,240 | ' |
Less: accumulated amortization | -11,520 | ' |
Deferred financing costs, net | 486,720 | ' |
Prepaid expenses | 173,480 | ' |
Interest rate cap agreements | 362,144 | ' |
Escrow deposits for pending real estate acquisitions | 2,385,215 | ' |
Deposits | 118,531 | ' |
Deferred financing costs and other assets, net | $3,526,090 | $0 |
Debt_Mortgage_Notes_Payable_De
Debt - Mortgage Notes Payable (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | $60,970,000 | $0 | |
Number of periods interest payments due | '48 months | ' | |
Notes Payable to Banks [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | 60,970,000 | ' | |
Notes Payable to Banks [Member] | Villages at Spring Hill | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | 9,940,000 | ' | |
Notes Payable to Banks [Member] | Villages at Spring Hill | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Basis spread on variable rate | 2.13% | [1],[2] | ' |
Notes Payable to Banks [Member] | Harrison Place Apartments | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | 19,530,000 | ' | |
Notes Payable to Banks [Member] | Harrison Place Apartments | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Basis spread on variable rate | 1.84% | [1],[2] | ' |
Notes Payable to Banks [Member] | Club at Summer Valley | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | 15,050,000 | ' | |
Notes Payable to Banks [Member] | Club at Summer Valley | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Basis spread on variable rate | 1.98% | [1],[2] | ' |
Notes Payable to Banks [Member] | Terrace Cove | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Mortgage notes payable | $16,450,000 | ' | |
Notes Payable to Banks [Member] | Terrace Cove | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Basis spread on variable rate | 1.98% | [1],[2] | ' |
[1] | A monthly payment of interest only is due and payable for 48 months from the loan date, after which, a monthly payment of principal and interest is due and payable until the maturity date. | ||
[2] | See Note 10 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. |
Debt_Schedule_of_Aggregate_Lon
Debt - Schedule of Aggregate Long-Term Debt Maturities (Details) (USD $) | Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
Total | $60,970,000 |
Remainder of 2014 | 0 |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 386,573 |
Thereafter | $60,583,427 |
Debt_Details
Debt (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Interest Rate Cap | Interest Rate Cap | Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Interest expense | $0 | $287,399 | $405,468 | ' | ' | ' | ' |
Amortization of deferred financing costs | 0 | 9,151 | 11,520 | ' | ' | ' | ' |
Change in fair value of interest rate cap agreements | 0 | ' | -140,339 | -57,127 | -140,339 | ' | ' |
Interest payable | ' | ' | ' | ' | ' | $107,489 | $0 |
Stockholders_Equity_Class_of_S
Stockholders' Equity - Class of Stock Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
vote | ||
Information by class of stock | ' | ' |
Common and preferred shares authorized | 1,100,000,000 | ' |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock | ' | ' |
Information by class of stock | ' | ' |
Common stock, shares authorized | 999,999,000 | 999,999,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Number of votes per share | 1 | ' |
Convertible Stock | ' | ' |
Information by class of stock | ' | ' |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Stockholders_Equity_ShareBased
Stockholders' Equity - Share-Based Compensation (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | 13 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 13 Months Ended | 9 Months Ended | 13 Months Ended | 0 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 06, 2014 | Feb. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 06, 2014 | Feb. 27, 2014 | Aug. 06, 2014 | Aug. 06, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 27, 2014 | Sep. 03, 2013 | |
Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | IPO | IPO | IPO | IPO | IPO | Sponsor | |||||||
Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Independent Directors Compensation Plan | Common Stock | |||||||||
Director One | Director One | Director Two | Director Two | Director Three | Director Three | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Common Stock | ||||||||||||
director | installment | Director One | Director One | Director Two | Director Three | Restricted Stock | ||||||||||||||||||||
Equity issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,139,141 | 4,139,141 | ' | 13,500 |
Issuance of common stock | ' | ' | ' | $61,346,383 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $202,500 |
Proceeds from issuance of stock, net of offering costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,387,864 | ' | ' |
Offering costs | 0 | ' | 5,649,279 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,159,075 | ' | ' | ' | ' |
Stock issued during period, shares, dividend reinvestment plan | ' | 12,315 | 14,074 | ' | 14,074.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, dividend reinvestment plan | ' | 175,490 | 200,556 | ' | 200,556 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivable from transfer agent | ' | 441,030 | 441,030 | ' | 441,030 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | ' | ' | 1,666 | 3,333 | 1,666 | 3,333 | 1,666 | 3,333 | ' | ' | ' | ' | 1,666 | 3,333 | 1,666 | 1,666 | ' | ' | ' | ' | ' | ' |
Number of directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted, grant date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | $15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering proceeds, threshold for reimbursement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | 2,000,000 | ' |
Number of equal annual vesting installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | $0 | ' | $81,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $30,967 | $81,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 6 months 22 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Convertibl
Stockholders' Equity - Convertible Stock (Details) (USD $) | 10 Months Ended | 0 Months Ended | 9 Months Ended | |
Jun. 30, 2014 | Aug. 23, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Advisor | Advisor | Advisor | ||
Convertible Stock | Convertible Stock | Convertible Stock | ||
Private Placement | ||||
Information by class of stock | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | 1,000 | ' | 1,000 |
Issuance of common stock | $61,346,383 | $1,000 | ' | $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% | ' |
Stock redemption price | ' | ' | $1 | ' |
Convertible stock, conversion ratio | ' | ' | 0.10% | ' |
Convertible stock, percentage applied to the excess of "enterprise value", including distributions to date | ' | ' | 15.00% | ' |
Stockholders_Equity_Preferred_
Stockholders' Equity - Preferred Stock (Details) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
series | ||
Stockholders' Equity Note [Abstract] | ' | ' |
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | 1 | ' |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | 1 | ' |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders_Equity_Distributi
Stockholders' Equity - Distribution Reinvestment Plan (Details) (USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 13 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 04, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 04, 2014 | Sep. 30, 2014 | Dec. 30, 2013 | Sep. 30, 2014 | |
Distribution Reinvestment Plan | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Dividend Paid | ||||||
Distribution Reinvestment Plan | Distribution Reinvestment Plan | ||||||||||||
Information by class of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15 | $14.25 | $14.25 | ' |
Sales commissions or dealer manager fees payable on shares sold under the plan | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Notice period for termination of plan | ' | ' | ' | ' | ' | '10 days | ' | ' | ' | ' | ' | ' | ' |
Common share, distribution rate per share per day, declared (in dollars per share) | ' | ' | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' |
Distribution period | ' | ' | ' | ' | ' | ' | ' | ' | '365 days | ' | ' | ' | ' |
Common stock distribution rate percentage | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' |
Distributions declared | ' | ' | ' | 800,804 | ' | ' | ' | 642,532 | 800,804 | ' | ' | ' | ' |
Dividends, common stock, distribution reinvestment plan | ' | ' | ' | ' | ' | ' | ' | 269,216 | 321,218 | ' | ' | ' | ' |
Dividends, common stock, distribution reinvestment plan, shares | ' | ' | ' | 8,467 | ' | ' | ' | 18,892.36 | 22,541.60 | ' | ' | ' | ' |
Distributions payable | 0 | ' | ' | 271,654 | ' | ' | ' | ' | ' | ' | ' | ' | 271,654 |
Distributions paid, common stock, including distribution reinvestment plan | ' | 454,504 | ' | 529,150 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions paid to common stockholders through common stock issuances pursuant to distribution reinvestment plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,662 |
Stock issued during period, shares, dividend reinvestment plan | ' | 12,315 | ' | 14,074 | 14,074.12 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock, dividend reinvestment plan | ' | 175,490 | ' | 200,556 | 200,556 | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of ordinary dividends, common stock | $0 | $279,014 | ' | $328,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Share_Repu
Stockholders' Equity - Share Repurchase Plan (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | ||
REIT Taxable Income Qualification Information | ' | |
Minimum Percentage of Ordinary Taxable Income Distribution Requirement | 90.00% | |
Share Repurchase Plan | ' | |
Share Repurchase Plan | ' | |
Number of Company assets sold that constitute a return of capital as a result of such sale. | 1 | |
Written request period for repurchase of shares | '15 days | |
Payment period following the Repurchase Date for honoring repurchase requests | '30 days | |
Minimum number of days prior to repurchase date a repurchase request may be withdrawn | '3 days | |
Notice period for amendment, suspension, or termination of share repurchase plan. | '30 days | |
Common Stock | Share Repurchase Plan | ' | |
Share Repurchase Plan | ' | |
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 | |
Holding period | '1 year | |
Share repurchase plan, maximum period of time allowed to complete valuation of entity's common stock | '18 months | |
Maximum percentage of weighted average shares outstanding in prior calendar period that may be repurchased in current calendar period | 5.00% | |
Fee charged to repurchase shares | 0 | |
Common Stock | Share Repurchase Plan Pre Published Valuation | ' | |
Share Repurchase Plan | ' | |
Less than 1 year | 0.00% | [1] |
1 year | 92.50% | [1] |
2 years | 95.00% | [1] |
3 years | 97.50% | [1] |
4 years | 100.00% | [1] |
Common Stock | Share Repurchase Plan Post Published Valuation | ' | |
Share Repurchase Plan | ' | |
Less than 1 year | 0.00% | [1] |
1 year | 92.50% | [1],[2] |
2 years | 95.00% | [1],[2] |
3 years | 97.50% | [1],[2] |
4 years | 100.00% | [1],[2] |
[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] | For purposes of the share repurchase plan, the bEstimated Value per Shareb will equal the purchase price until the day the Company publicly discloses, subsequent to completion of the Companybs offering stage, a new Estimated Value per Share. The Companybs board of directors will determine an estimated value per share of the Companybs common stock based on valuations by independent third-party appraisers and qualified valuation experts no later than 18 months following the end of the Companybs offering stage, or such earlier time as required by any regulatory requirement regarding the timing of a valuation. |
Related_Party_Arrangements_Amo
Related Party Arrangements - Amounts Incurred, Paid, and Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||
Additional Paid-In Capital | Organizational Costs | Organizational Costs | Other Offering Costs Reimbursement | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | Property Manager | ||||||||||||||||||||||||||||||
Organizational Costs | Organizational Costs | Organizational Costs | Organizational Costs | Investment Management Fees | Investment Management Fees | Investment Management Fees | Investment Management Fees | Acquisition Fees | Acquisition Fees | Acquisition Fees | Acquisition Fees | Acquisition Expenses | Acquisition Expenses | Acquisition Expenses | Acquisition Expenses | Loan Coordination Fees | Loan Coordination Fees | Loan Coordination Fees | Loan Coordination Fees | Construction Management Fees | Construction Management Fees | Construction Management Fees | Construction Management Fees | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Sales Commissions Paid | Sales Commissions Paid | Sales Commissions Paid | Sales Commissions Paid | Dealer Management Fees | Dealer Management Fees | Dealer Management Fees | Dealer Management Fees | General And Administrative Expense | General And Administrative Expense | General And Administrative Expense | General And Administrative Expense | Property Management, Fees | Property Management, Fees | Property Management, Fees | Property Management, Fees | Property Management, Labor and Related Benefits | Property Management, Labor and Related Benefits | Property Management, Labor and Related Benefits | Property Management, Labor and Related Benefits | Property Management, Other Fees | Property Management, Other Fees | Property Management, Other Fees | Property Management, Other Fees | ||||||||||||||||||||||||||||||||||||||
Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Other Operating Expenses | Other Operating Expenses | Other Operating Expenses | Other Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts attributable to the Advisor and its affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||
Incurred for the period | ' | ' | $164,475 | $42,882 | $42,882 | $3,509,796 | $3,625 | $7,257,553 | $12,030,923 | ' | $0 | [1] | $0 | [1] | $42,882 | [1] | ' | $0 | [2] | $80,155 | [2] | $88,740 | [2] | ' | $0 | [2] | $488,962 | [2] | $930,405 | [2] | ' | $0 | [3] | $307,183 | [3] | $516,067 | [3] | ' | $0 | [2] | $315,000 | [2] | $609,700 | [2] | ' | $0 | $5,439 | $5,524 | ' | $2,078,946 | $5,747,990 | $6,969,383 | $0 | $2,061,463 | $3,509,796 | ' | $0 | $2,486,052 | $3,909,240 | ' | $1,129,004 | $1,740,039 | $0 | ' | $3,625 | [1] | $173,320 | [1] | $430,672 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Property management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [2] | 50,915 | [2] | 58,037 | [2] | ' | 0 | [4] | 141,426 | [4] | 163,500 | [4] | ' | 0 | [2] | 18,634 | [2] | 26,321 | [2] | ' | ||||||||||||||||||
Outstanding as of end of period | ' | ' | ' | ' | ' | ' | ' | 593,502 | 593,502 | 11,873 | ' | 0 | 0 | 0 | ' | 41,397 | 41,397 | 0 | ' | 46,416 | 46,416 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 138 | 138 | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 274,481 | 274,481 | 11,873 | ' | 27,626 | 27,626 | 0 | ' | 36,720 | 36,720 | 0 | ' | 2,249 | 2,249 | 0 | |||||||||||||||||||||||||||
Payable as of end of period | $593,502 | $11,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42,882 | $42,882 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||
[1] | Included in general and administrative expenses in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Included in fees to affiliates in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Included in acquisition costs in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Included in operating, maintenance and management in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. |
Related_Party_Arrangements_Org
Related Party Arrangements - Organization and Offering Costs (Details) (USD $) | 1 Months Ended | 9 Months Ended | 10 Months Ended | 10 Months Ended | 13 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | 3 Months Ended | 9 Months Ended | 13 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 13 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | ||||
Organization And Offering Costs | Sales Commissions Paid | Dealer Management Fees | Other Offering Costs Reimbursement | Organizational Costs Reimbursements | Organizational Costs Reimbursements | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | Additional Paid-In Capital | ||||||||
Organization And Offering Costs | Organization And Offering Costs | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Organizational Costs Reimbursements | Organizational Costs Reimbursements | Organizational Costs Reimbursements | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | Advisor | ||||||||||||||||||
Sales Commissions Paid | Sales Commissions Paid | Sales Commissions Paid | Dealer Management Fees | Dealer Management Fees | Dealer Management Fees | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | Other Offering Costs Reimbursement | ||||||||||||||||||||||||||
Organization and Offering Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Organization and offering costs limitation, expressed as a percentage of offering proceeds | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Underwriting compensation maximum threshold, percentage of gross proceeds of public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross offering proceeds | ' | ' | $61,346,383 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Percentage of gross offering proceeds | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reimbursable organization and offering costs expressed as a percentage of gross offering proceeds | ' | ' | ' | ' | 15.00% | 0.00% | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total O & O costs available to be paid/reimbursed | ' | ' | ' | ' | 9,201,957 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Reimbursement of other offering costs to affiliates | 0 | -3,388,203 | ' | ' | ' | 3,909,240 | 1,740,039 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Incurred for the period | ' | ' | ' | ' | 9,201,957 | ' | ' | 3,509,796 | 42,882 | 42,882 | 3,625 | 7,257,553 | 12,030,923 | ' | ' | 2,078,946 | 5,747,990 | 6,969,383 | 0 | [1] | 0 | [1] | 42,882 | [1] | 164,475 | 0 | 2,486,052 | 3,909,240 | 1,129,004 | 1,740,039 | 0 | 0 | 2,061,463 | 3,509,796 |
Deferred offering costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,459,587 | 3,459,587 | 3,459,587 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Due to affiliates | ' | $593,502 | ' | $11,873 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42,882 | $42,882 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Included in general and administrative expenses in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2014. |
Related_Party_Arrangements_Inv
Related Party Arrangements - Investment Management Fee (Details) (Advisor, Investment Management Fees [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Aggregate Cost Of Investments In Properties And Real Estate Assets Threshold One | ' |
Investment Management Fee | ' |
Monthly investment management fee, percentage | 0.04% |
Aggregate cost of investments in properties and real estate related assets, threshold | $300,000,000 |
Aggregate Cost Of Investments In Properties And Real Estate Assets Threshold Two | ' |
Investment Management Fee | ' |
Monthly investment management fee, percentage | 0.08% |
Aggregate cost of investments in properties and real estate related assets, threshold | $300,000,000 |
Related_Party_Arrangements_Acq
Related Party Arrangements - Acquisition Fees and Expenses (Details) (Advisor, Acquisition Fees And Expenses) | 3 Months Ended |
Mar. 31, 2014 | |
Advisor | Acquisition Fees And Expenses | ' |
Acquisition Fees and Expenses | ' |
Acquisition fee, percent | 1.00% |
Acquisition fee payable without board approval as a percent of total contract price | 4.50% |
Related_Party_Arrangements_Loa
Related Party Arrangements - Loan Coordination Fee (Details) (Advisor, Loan Coordination Fee) | 3 Months Ended |
Mar. 31, 2014 | |
Advisor | Loan Coordination Fee | ' |
Loan Coordination Fee | ' |
Loan coordination fee, acquisitions (as a percent) | 1.00% |
Loan coordination fee, other than acquisitions (as a percent) | 0.75% |
Related_Party_Arrangements_Pro
Related Party Arrangements - Property Management Fees and Expenses (Details) | 9 Months Ended | 3 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | |
Construction Manager | Steadfast Management Company | Minimum | Maximum | Scenario, Forecast [Member] | |
Construction Manager | Construction Manager | Construction Manager | |||
Amounts attributable to the Advisor and its affiliates | ' | ' | ' | ' | ' |
Construction management fee percent | ' | ' | 8.00% | 12.00% | 8.00% |
Property management fee, percent fee | ' | 3.00% | ' | ' | ' |
Construction management agreement, notice of termination of contract period | '30 days | ' | ' | ' | ' |
Related_Party_Arrangements_Oth
Related Party Arrangements - Other Operating Expense Reimbursements (Details) (Advisor, USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Operating Expenses | ' | ' | ' |
Excess amount of operating expenses exceeding 2%/25% Limitation | $3,625 | $7,257,553 | $12,030,923 |
Other Operating Expenses | ' | ' | ' |
Operating Expenses | ' | ' | ' |
Operating Expense Limitation, Number of Rolling Quarters | ' | ' | 4 |
Operating expenses limitation as a percentage of average invested assets | ' | ' | 2.00% |
Operating expenses limitation as a percentage of net income | ' | ' | 25.00% |
Average invested assets, calculation period | ' | ' | '12 months |
Excess Amount of Total Operating Expenses Limitation | ' | ' | ' |
Operating Expenses | ' | ' | ' |
Excess amount of operating expenses exceeding 2%/25% Limitation | ' | ' | $583,345 |
Related_Party_Arrangements_Dis
Related Party Arrangements - Disposition Fee (Details) (Advisor, Other Operating Expenses, USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2014 | Sep. 30, 2014 | |
Advisor | Other Operating Expenses | ' | ' |
Disposition Fee | ' | ' |
Property sale disposition fee, maximum percentage of total sale price | 1.00% | ' |
Disposition fees incurred | ' | $0 |
Related_Party_Arrangements_Sel
Related Party Arrangements - Selling Commissions and Dealer Manager Fees (Details) (Dealer Manager, USD $) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2014 | Sep. 30, 2014 | |
Sales Commissions And Dealer Manager Fees | Distribution Reinvestment Plan | ' | ' |
Selling Commissions and Dealer Manager Fees | ' | ' |
Sales commissions or dealer manager fees paid | 0 | ' |
Sales Commissions | Primary Offering | ' | ' |
Selling Commissions and Dealer Manager Fees | ' | ' |
Sales commission, percentage of gross offering proceeds | 7.00% | 8.00% |
Dealer Management Fees | Primary Offering | ' | ' |
Selling Commissions and Dealer Manager Fees | ' | ' |
Dealer manager fees, percentage of gross offering proceeds | 3.00% | ' |
Dealer-Manager reallowance of sales commissions earned, percent | ' | 100.00% |
Incentive_Award_Plan_and_Indep1
Incentive Award Plan and Independent Director Compensation (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 06, 2014 | Feb. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 27, 2014 | Feb. 27, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 06, 2014 | Feb. 27, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 06, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | Aug. 06, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | |
IPO | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Director One | Director One | Director One | Director One | Director Two | Director Two | Director Two | Director Three | Director Three | Director Three | Director | Director | Director | Director | Director | Director | ||||
Minimum | IPO | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Common Stock | Common Stock | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Common Stock | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Common Stock | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Independent Directors Compensation Plan | ||||||||
Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Independent Directors Compensation Plan | Independent Directors Compensation Plan | Restricted Stock | Restricted Stock | Independent Directors Compensation Plan | Restricted Stock | Restricted Stock | Independent Directors Compensation Plan | Restricted Stock | Restricted Stock | Restricted Stock | ||||||||||
director | installment | IPO | IPO | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | IPO | IPO | IPO | ||||||||||||||||||
installment | ||||||||||||||||||||||||||||
Incentive Award Plan and Independent Director Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares entitled to be received under plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,333 | ' | ' |
Proceeds from issuance of common stock | $202,500 | ' | $60,905,353 | ' | $2,000,000 | $61,546,939 | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public offering proceeds, threshold for reimbursement | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of directors | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,666 | 3,333 | 1,666 | 3,333 | 1,666 | 3,333 | 1,666 | 1,666 | 3,333 | 1,666 | ' | ' | ' | ' | ' | ' |
Shares entitled to be received upon re-election to Board of Directors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,666 |
Percentage of shares vesting upon issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' |
Number of equal annual vesting installments | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Amortization of stock-based compensation | 0 | ' | 81,230 | ' | ' | ' | ' | ' | 30,967 | 81,230 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual retainer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | ' | ' |
Annual retainer, additional due audit committee chairperson | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' |
Board Meeting attendance fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' |
Committee Meeting attendance fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' |
Teleconference attendance fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Teleconference attendance fee, daily maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' |
Operating Expenses | $22,792 | $4,173,023 | $6,291,836 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,167 | $57,750 | $174,250 | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Villages at Spring Hill | Villages at Spring Hill | Harrison Place Apartments | Harrison Place Apartments | Club at Summer Valley | Club at Summer Valley | Terrace Cove | Terrace Cove | 31-May-15 | 31-May-16 | 31-May-17 | 1-Jun-18 | 30-Jun-15 | 30-Jun-16 | 30-Jun-17 | 1-Jul-18 | August 31, 2015 [Member] | August 31, 2015 [Member] | August 31, 2016 [Member] | August 31, 2016 [Member] | August 31, 2017 [Member] | August 31, 2017 [Member] | September 1, 2018 [Member] | September 1, 2018 [Member] | |||
Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Villages at Spring Hill | Villages at Spring Hill | Villages at Spring Hill | Villages at Spring Hill | Harrison Place Apartments | Harrison Place Apartments | Harrison Place Apartments | Harrison Place Apartments | Club at Summer Valley | Terrace Cove | Club at Summer Valley | Terrace Cove | Club at Summer Valley | Terrace Cove | Club at Summer Valley | Terrace Cove | ||||||
Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | Interest Rate Cap | ||||||||||||||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, number of instruments held | ' | ' | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount of interest rate fair value hedge derivatives | ' | ' | $60,970,000 | $60,970,000 | ' | $9,940,000 | ' | $19,530,000 | ' | $15,050,000 | ' | $16,450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, description of variable rate basis | ' | ' | ' | ' | ' | 'One-Month LIBOR | ' | 'One-Month LIBOR | ' | 'One-Month LIBOR | ' | 'One-Month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate cap, floating rate | ' | ' | ' | ' | ' | 0.16% | ' | 0.16% | ' | 0.16% | ' | 0.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate cap, fixed rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.50% | 3.00% | 3.50% | 2.00% | 2.50% | 3.00% | 3.50% | 2.00% | 2.00% | 2.50% | 2.50% | 3.00% | 3.00% | 3.50% | 3.50% |
Change in fair value of interest rate cap agreements | 0 | 140,339 | 57,127 | 140,339 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate derivative assets, at fair value | ' | ' | $362,144 | $362,144 | $0 | $49,302 | $0 | $106,539 | $0 | $98,567 | $0 | $107,736 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro_Forma_Information_unaudite2
Pro Forma Information (unaudited) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Business Combinations [Abstract] | ' | ' | ' | ' |
Revenues contributed | ' | ' | $1,932,912 | ' |
Contributed net loss | ' | ' | 1,202,384 | ' |
Contributed depreciation and amortization | ' | ' | 1,354,372 | ' |
Revenues | 2,653,716 | 2,531,041 | 7,961,147 | 7,593,124 |
Net loss | ($2,823,952) | ($3,888,842) | ($8,471,857) | ($11,666,525) |
Basic and diluted net loss per common share (in usd) | ($0.68) | ($0.93) | ($2.03) | ($2.79) |
Subsequent_Events_Offering_Sta
Subsequent Events - Offering Status (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 13 Months Ended | 9 Months Ended | 13 Months Ended | 0 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 10, 2014 | |
IPO | IPO | IPO | |||||
Common Stock | Common Stock | Common Stock | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock (in shares) | ' | ' | ' | ' | 4,139,141 | 4,139,141 | 5,803,989 |
Initial public offering, gross proceeds | $202,500 | ' | $60,905,353 | ' | $61,546,939 | ' | $86,341,561 |
Stock Issued During Period, Shares, Dividend Reinvestment Plan | ' | 12,315 | 14,074 | 14,074.12 | ' | ' | 34,037 |
Proceeds from issuance of common stock, dividend reinvestment plan | ' | $175,490 | $200,556 | $200,556 | ' | ' | $485,031 |
Subsequent_Events_Distribution
Subsequent Events - Distributions Paid (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 03, 2014 | Oct. 01, 2014 | Nov. 03, 2014 | Oct. 01, 2014 | |
Subsequent Event | Subsequent Event | Dividend Paid | Dividend Paid | ||||
Subsequent Event | Subsequent Event | ||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Distributions paid, common stock, including distribution reinvestment plan | ' | $454,504 | $529,150 | $363,414 | $271,654 | ' | ' |
Payments of ordinary dividends, common stock | 0 | 279,014 | 328,594 | ' | ' | 199,600 | 150,992 |
Distributions paid to common stockholders through common stock issuances pursuant to distribution reinvestment plan | ' | ' | ' | ' | ' | $163,814 | $120,662 |
Subsequent_Events_Amendment_an
Subsequent Events - Amendment and Restatement of the Dealer Manager Agreement (Details) (Sales Commissions, Dealer Manager, Primary Offering) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2014 | Sep. 30, 2014 | |
Sales Commissions | Dealer Manager | Primary Offering | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Sales commission, percentage of gross offering proceeds | 7.00% | 8.00% |
Subsequent_Events_Acquisition_
Subsequent Events - Acquisition (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||
Sep. 30, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | Oct. 16, 2014 | |
Subsequent Event | AMLI at McGinnis Ferry | AMLI at McGinnis Ferry | Minimum | Maximum | Mortgages | ||
building | Subsequent Event | Subsequent Event | AMLI at McGinnis Ferry | AMLI at McGinnis Ferry | AMLI at McGinnis Ferry | ||
apartment | Subsequent Event | Subsequent Event | Subsequent Event | ||||
sqft | sqft | sqft | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Units | 1,047 | ' | ' | 696 | ' | ' | ' |
Contract purchase price | $87,064,250 | ' | $98,500,000 | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | 73,660,600 |
Residential Buildings | ' | 40 | ' | ' | ' | ' | ' |
One Bedroom Apartments | ' | ' | ' | 208 | ' | ' | ' |
Two Bedroom Apartments | ' | ' | ' | 372 | ' | ' | ' |
Three Bedroom Apartments | ' | ' | ' | 116 | ' | ' | ' |
Square Feet per Apartment | ' | ' | ' | ' | 888 | 1,515 | ' |
Average Square Feet per Apartment | ' | ' | ' | 1,217 | ' | ' | ' |
Acquisition Fees | 930,405 | ' | 1,100,000 | ' | ' | ' | ' |
Loan Processing Fee | $609,700 | ' | $737,000 | ' | ' | ' | ' |