Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | Steadfast Apartment REIT, Inc. | |
Entity Central Index Key | 1585219 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 18,569,153 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real Estate: | ||
Land | $49,055,569 | $34,558,732 |
Building and improvements | 373,509,919 | 234,259,502 |
Tenant origination and absorption costs | 8,203,800 | 5,578,528 |
Total real estate, cost | 430,769,288 | 274,396,762 |
Less accumulated depreciation and amortization | -8,358,449 | -4,409,133 |
Total real estate, net | 422,410,839 | 269,987,629 |
Cash and cash equivalents | 31,214,539 | 28,595,826 |
Restricted cash | 3,640,910 | 2,792,589 |
Rents and other receivables | 2,630,496 | 2,056,147 |
Deferred financing costs and other assets, net | 4,966,046 | 3,038,306 |
Total assets | 464,862,830 | 306,470,497 |
Liabilities: | ||
Accounts payable and accrued liabilities | 5,148,155 | 3,386,648 |
Mortgage notes payable | 272,611,100 | 196,930,600 |
Distributions payable | 1,108,253 | 608,904 |
Due to affiliates | 1,419,903 | 1,499,869 |
Total liabilities | 280,287,411 | 202,426,021 |
Commitments and contingencies | ||
Redeemable common stock | 1,686,498 | 660,089 |
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 207,068,792 | 117,443,760 |
Cumulative distributions and net losses | -24,339,775 | -14,151,178 |
Total stockholders’ equity | 182,888,921 | 103,384,387 |
Total liabilities and stockholders’ equity | 464,862,830 | 306,470,497 |
Common stock, $0.01 par value per share; 999,999,000 shares authorized, 9,179,536 and 13,500 shares issued and outstanding at December 31, 2014 and 2013, respectively [Member] | ||
Stockholders’ Equity: | ||
Common/Convertible stock, $0.01 par value per share | 159,894 | 91,795 |
Convertible stock, $0.01 par value per share; 1,000 shares authorized, issued and outstanding as of December 31, 2014 and 2013, respectively [Member] | ||
Stockholders’ Equity: | ||
Common/Convertible stock, $0.01 par value per share | $10 | $10 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 999,999,000 | 999,999,000 |
Common stock, shares issued (in shares) | 15,989,405 | 9,179,536 |
Common stock, shares outstanding (in shares) | 15,989,405 | 9,179,536 |
Convertible Stock [Member] | ||
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 1,000 | 1,000 |
Common stock, shares outstanding (in shares) | 1,000 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues: | ||
Rental income | $7,008,979 | $0 |
Tenant reimbursements and other | 736,840 | 0 |
Total revenues | 7,745,819 | 0 |
Expenses: | ||
Operating, maintenance and management | 1,900,733 | 0 |
Real estate taxes and insurance | 1,140,952 | 0 |
Fees to affiliates | 3,464,033 | 0 |
Depreciation and amortization | 5,356,169 | 0 |
Interest expense | 1,760,583 | 0 |
General and administrative expenses | 576,432 | 275,523 |
Acquisition costs | 1,026,215 | 3,409 |
Total expenses | 15,225,117 | 278,932 |
Net loss | ($7,479,298) | ($278,932) |
Loss per common share - basic and diluted (in dollars per share) | ($0.61) | ($3.33) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 12,235,415 | 83,853 |
Distributions declared per share (in dollars per share) | $0.22 | $0 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Stock [Member] | Stock [Member] | Additional Paid-In Capital [Member] | Cumulative Distributions & Net Losses [Member] | Total Stockholders' Equity [Member] |
Common Stock [Member] | Convertible Stock [Member] | ||||||
BALANCE, beginning of period at Dec. 31, 2013 | $135 | $10 | $203,355 | ($86,644) | $116,856 | ||
BALANCE, beginning of period (in shares) at Dec. 31, 2013 | 13,500 | 1,000 | |||||
Increase (decrease) in Stockholders' Equity | |||||||
Issuance of common stock | 91,660 | 136,296,232 | 136,387,892 | ||||
Issuance of common stock (in shares) | 9,166,036 | ||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | -12,789,627 | -12,789,627 | |||||
Transfers to redeemable common stock | -693,640 | -693,640 | |||||
Other offering costs to affiliates | -5,667,857 | -5,667,857 | |||||
Distributions declared | -2,224,079 | -2,224,079 | |||||
Amortization of stock-based compensation | 95,297 | 95,297 | |||||
Net loss for period | -11,840,455 | -11,840,455 | |||||
BALANCE, end of period at Dec. 31, 2014 | 103,384,387 | 91,795 | 10 | 117,443,760 | -14,151,178 | 103,384,387 | |
BALANCE, end of period (in shares) at Dec. 31, 2014 | 9,179,536 | 1,000 | |||||
Increase (decrease) in Stockholders' Equity | |||||||
Issuance of common stock | 68,121 | 101,737,058 | 101,805,179 | ||||
Issuance of common stock (in shares) | 6,812,108 | ||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | -9,772,776 | -9,772,776 | |||||
Transfers to redeemable common stock | -1,062,758 | -1,062,758 | |||||
Redemption of common stock | -22 | -33,529 | -33,551 | ||||
Redemption of common stock (in shares) | -2,239 | ||||||
Other offering costs to affiliates | -1,257,030 | -1,257,030 | |||||
Distributions declared | -2,709,299 | -2,709,299 | -2,709,299 | ||||
Amortization of stock-based compensation | 14,067 | 14,067 | |||||
Net loss for period | -7,479,298 | -7,479,298 | -7,479,298 | ||||
BALANCE, end of period at Mar. 31, 2015 | $182,888,921 | $159,894 | $10 | $207,068,792 | ($24,339,775) | $182,888,921 | |
BALANCE, end of period (in shares) at Mar. 31, 2015 | 15,989,405 | 1,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash Flows from Operating Activities: | ||
Net loss | ($7,479,298) | ($278,932) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5,356,169 | 0 |
Amortization of deferred financing costs | 43,578 | 0 |
Amortization of stock-based compensation | 14,067 | 37,702 |
Change in fair value of interest rate cap agreements | 664,110 | 0 |
Changes in operating assets and liabilities: | ||
Restricted cash for operating activities | -739,097 | 0 |
Rents and other receivables | -249,091 | 0 |
Other assets | -54,068 | 0 |
Accounts payable and accrued liabilities | 1,634,081 | -53,658 |
Due to affiliates, net | -729,516 | 175,904 |
Net cash used in operating activities | -1,539,065 | -118,984 |
Cash Flows from Investing Activities: | ||
Acquisition of real estate investments | -154,364,900 | 0 |
Additions to real estate investments | -1,134,746 | 0 |
Escrow deposits for pending real estate acquisitions | -3,950,100 | 0 |
Restricted cash for investing activities | -109,224 | 0 |
Purchase of interest rate cap agreements | -592,150 | 0 |
Cash used in investing activities | -160,151,120 | 0 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of mortgage notes payable | 75,680,500 | 0 |
Proceeds from issuance of common stock | 100,645,056 | 4,789,680 |
Payments of commissions on sale of common stock and related dealer manager fees | -9,772,776 | -251,975 |
Reimbursement of other offering costs to affiliates | -607,480 | 0 |
Payment of deferred financing costs | -489,210 | 0 |
Distributions to common stockholders | -1,113,641 | 0 |
Redemptions of common stock | -33,551 | 0 |
Net cash provided by financing activities | 164,308,898 | 4,537,705 |
Net increase in cash and cash equivalents | 2,618,713 | 4,418,721 |
Cash and cash equivalents, beginning of period | 28,595,826 | 203,500 |
Cash and cash equivalents, end of period | 31,214,539 | 4,622,221 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 972,481 | 0 |
Supplemental Disclosures of Noncash Flow Transactions: | ||
Distributions payable | 499,349 | 0 |
Application of escrow deposits to acquire real estate | 2,450,100 | 0 |
Increase in amounts receivable from transfer agent | -63,814 | -94,500 |
Increase in amounts payable to affiliates for other offering costs | 649,550 | 437,770 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | -1,096,309 | 0 |
Increase in redeemable common stock | 1,062,758 | 0 |
Increase in redemptions payable | 36,349 | 0 |
Increase in accounts payable and accrued liabilities from additions to real estate investments | $91,077 | $0 |
Organization_and_Business
Organization and Business | 3 Months Ended |
Mar. 31, 2015 | |
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 general partner of the Operating Partnership. The Company and Steadfast Apartment REIT Limited Partner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into a Limited Partnership Agreement (the “Partnership Agreement”) on September 3, 2013. As the Company 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 contribution in exchange for partnership interests and the Company’s percentage ownership in the Operating Partnership increases proportionately. | |
As of March 31, 2015, the Company owned 12 multifamily properties comprising a total of 3,794 apartment homes. For more information on the Company’s real estate portfolio, see Note 3. | |
Public Offering | |
On December 30, 2013, the Company commenced its initial public offering pursuant to a registration statement on Form S-11, filed with the Securities and Exchange Commission (the “SEC”), 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 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 March 31, 2015, the Company had sold 15,963,147 shares of common stock in the Public Offering for gross proceeds of $238,193,071. 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 (as amended, the “Advisory Agreement”). The Advisory Agreement is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on December 13, 2015. 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 | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | ||||||||||||
There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2014. For further information about the Company's accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2015. | |||||||||||||
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 months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||
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. Changes in the fair value of the interest rate cap agreements are recorded as interest expense in the accompanying consolidated statements of operations. | |||||||||||||
The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: | |||||||||||||
March 31, 2015 | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||
Interest rate cap agreements | $ | — | $ | 576,454 | $ | — | |||||||
December 31, 2014 | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||
Interest rate cap agreements | $ | — | $ | 648,414 | $ | — | |||||||
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 March 31, 2015 and December 31, 2014, the fair value of the mortgage notes payable was $259,076,618 and $191,983,420, respectively, compared to the carrying value of $272,611,100 and $196,930,600, respectively. | |||||||||||||
Distribution Policy | |||||||||||||
The Company intends to elect to be taxed as a REIT beginning with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). 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 three months ended March 31, 2015 were based on daily record dates and calculated at a rate of $0.002466 per share per day. Each day during the period from January 1, 2015 to March 31, 2015 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, 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 months ended March 31, 2015, the Company declared distributions totaling $0.222 per share of common stock. No distributions were declared for the three months ended March 31, 2014. | |||||||||||||
Per Share Data | |||||||||||||
Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assumes each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. | |||||||||||||
Segment Disclosure | |||||||||||||
The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In August 2014, the FASB issued Accounting Standard Updates (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, 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 does not expect there to be a material impact from adopting this new guidance. | |||||||||||||
In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, that eliminates the concept of the extraordinary items from GAAP. The objective of the new guidance is to simplify the income statement presentation requirements of GAAP. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. | |||||||||||||
In February 2015, the FASB issued ASU 2015-02, Consolidation, that provides amendments to the consolidation analysis. The amendments in this new guidance affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. | |||||||||||||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the new guidance will require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs will not be affected by the new guidance. The guidance requires retrospective application and is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. Upon adoption, the Company will reclassify debt issuance costs from deferred financing costs and other assets, net to mortgage notes payable on the consolidated balance sheet. |
Real_Estate
Real Estate | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||
Real Estate | Real Estate | |||||||||||||||||||||||||||
As of March 31, 2015, the Company owned 12 multifamily properties, comprising of a total of 3,794 apartment homes. The total acquisition price of the Company’s real estate portfolio was $431,379,250. As of March 31, 2015 and December 31, 2014, the Company’s portfolio was approximately 92.8% and 94.2% occupied and the average monthly rent was $980 and $884, respectively. | ||||||||||||||||||||||||||||
Current Year Acquisitions | ||||||||||||||||||||||||||||
During the three months ended March 31, 2015, the Company acquired the following properties: | ||||||||||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||||
Property Name | Location | Purchase Date | Units | Land | Buildings and Improvements | Tenant Origination and Absorption Costs | Other Accounts Receivable | Total Purchase Price | ||||||||||||||||||||
Columns on Wetherington | Florence, KY | 2/26/15 | 192 | $ | 1,276,787 | $ | 23,172,820 | $ | 550,393 | $ | — | $ | 25,000,000 | |||||||||||||||
Preston Hills at Mill Creek | Buford, GA | 3/10/15 | 464 | 5,813,218 | 43,594,089 | 1,592,693 | — | 51,000,000 | ||||||||||||||||||||
Eagle Lake Landing | Speedway, IN | 3/27/15 | 277 | 1,607,980 | 16,933,827 | 658,193 | — | 19,200,000 | ||||||||||||||||||||
Reveal on Cumberland | Fishers, IN | 3/30/15 | 220 | 3,299,502 | 25,458,315 | 480,739 | 261,444 | 29,500,000 | ||||||||||||||||||||
Randall Highlands Apartments | North Aurora, IL | 3/31/15 | 146 | 2,499,350 | 28,865,543 | 750,107 | — | 32,115,000 | ||||||||||||||||||||
1,299 | $ | 14,496,837 | $ | 138,024,594 | $ | 4,032,125 | $ | 261,444 | $ | 156,815,000 | ||||||||||||||||||
As of March 31, 2015 and December 31, 2014, accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: | ||||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||
Investments in real estate | $ | 49,055,569 | $ | 373,509,919 | $ | 8,203,800 | $ | 430,769,288 | ||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (4,718,897 | ) | (3,639,552 | ) | (8,358,449 | ) | |||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 49,055,569 | $ | 368,791,022 | $ | 4,564,248 | $ | 422,410,839 | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||
Investments in real estate | $ | 34,558,732 | $ | 234,259,502 | $ | 5,578,528 | $ | 274,396,762 | ||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (2,206,072 | ) | (2,203,061 | ) | (4,409,133 | ) | |||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 34,558,732 | $ | 232,053,430 | $ | 3,375,467 | $ | 269,987,629 | ||||||||||||||||||||
Depreciation and amortization expense was $5,356,169 and $0 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||||||
Depreciation of the Company’s buildings and improvements were $2,512,825 and $0 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||||||
Amortization of the Company’s tenant origination and absorption costs was $2,843,344 and $0 for the three months ended March 31, 2015 and 2014, respectively. 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 March 31, 2015, the Company’s real estate portfolio comprised 3,794 residential units and was 92.8% 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 $749,882 and $459,707 as of March 31, 2015 and December 31, 2014, respectively. | ||||||||||||||||||||||||||||
As of March 31, 2015 and 2014, no tenant represented over 10% of the Company’s annualized base rent. |
Deferred_Financing_Costs_and_O
Deferred Financing Costs and Other Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Deferred Financing Costs and Other Assets | Deferred Financing Costs and Other Assets | |||||||
As of March 31, 2015 and December 31, 2014, deferred financing costs and other assets, net of accumulated amortization, consisted of: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred financing costs | $ | 1,807,651 | $ | 1,318,441 | ||||
Less: accumulated amortization | (82,823 | ) | (39,245 | ) | ||||
1,724,828 | 1,279,196 | |||||||
Prepaid expenses | 302,153 | 360,316 | ||||||
Interest rate cap agreements | 576,454 | 648,414 | ||||||
Escrow deposits for pending real estate acquisitions | 2,000,000 | 500,000 | ||||||
Other deposits | 362,611 | 250,380 | ||||||
$ | 4,966,046 | $ | 3,038,306 | |||||
Debt
Debt | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||
Debt | Debt | ||||||||||||||||||||||||||||
Mortgage Notes Payable | |||||||||||||||||||||||||||||
The following is a summary of mortgage notes payable secured by real property as of March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||
Principal Outstanding at | |||||||||||||||||||||||||||||
Property Name | Payment Type | Maturity Date | Interest Rate | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
1 | Villages at Spring Hill Apartments | Principal and interest(1) | June 1, 2024 | 1-Mo LIBOR + 2.13%(2) | $ | 9,940,000 | $ | 9,940,000 | |||||||||||||||||||||
2 | Harrison Place Apartments | Principal and interest(1) | July 1, 2024 | 1-Mo LIBOR + 1.84%(2) | 19,530,000 | 19,530,000 | |||||||||||||||||||||||
3 | Club at Summer Valley | Principal and interest(1) | September 1, 2024 | 1-Mo LIBOR + 1.98%(2) | 15,050,000 | 15,050,000 | |||||||||||||||||||||||
4 | Terrace Cove Apartment Homes | Principal and interest(1) | September 1, 2024 | 1-Mo LIBOR + 1.98%(2) | 16,450,000 | 16,450,000 | |||||||||||||||||||||||
5 | The Residences on McGinnis Ferry | Principal and interest(3) | November 1, 2024 | 1-Mo LIBOR + 1.70%(2) | 73,660,600 | 73,660,600 | |||||||||||||||||||||||
6 | The 1800 at Barrett Lakes | Interest only | December 1, 2021 | 1-Mo LIBOR + 1.77%(2) | 34,300,000 | 34,300,000 | |||||||||||||||||||||||
7 | The Oasis | Interest only | 1-Jan-22 | 1-Mo LIBOR + 1.89%(2) | 28,000,000 | 28,000,000 | |||||||||||||||||||||||
8 | Columns on Wetherington | Principal and interest(3) | March 1, 2025 | 1-Mo LIBOR + 1.68%(2) | 17,500,000 | — | |||||||||||||||||||||||
9 | Preston Hills at Mill Creek | Principal and interest(3) | April 1, 2025 | 1-Mo LIBOR + 1.69%(2) | 35,700,000 | — | |||||||||||||||||||||||
10 | Randall Highlands Apartments | Principal and interest(4) | April 1, 2025 | 1-Mo LIBOR + 1.77%(2) | 22,480,500 | — | |||||||||||||||||||||||
$ | 272,611,100 | $ | 196,930,600 | ||||||||||||||||||||||||||
_________________ | |||||||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||||||
-3 | A monthly payment of interest only is due and payable for 60 months from the loan date, after which a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
-4 | A monthly payment of interest only is due and payable for 36 months from the loan date, after which a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
The following is a summary of the Company’s aggregate maturities as of March 31, 2015: | |||||||||||||||||||||||||||||
Maturities During the Years Ending December 31, | |||||||||||||||||||||||||||||
Contractual Obligations | Total | Remainder of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
Principal payments on outstanding debt | $ | 272,611,100 | $ | — | $ | — | $ | — | $ | 479,920 | $ | 1,346,954 | $ | 270,784,226 | |||||||||||||||
The Company’s mortgage notes payable contain customary financial and non-financial debt covenants. As of March 31, 2015, the Company is in compliance with all financial and non-financial debt covenants. | |||||||||||||||||||||||||||||
For the three months ended March 31, 2015, the Company incurred interest expense of $1,760,583. Interest expense for the three months ended March 31, 2015 includes amortization of deferred financing costs of $43,578 and net unrealized losses from the change in fair value of interest rate cap agreements of $664,110. The Company incurred no interest expense for the three months ended March 31, 2014. | |||||||||||||||||||||||||||||
Interest expense of $365,809 and $285,395 was payable as of March 31, 2015 and December 31, 2014, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, the weighted-average interest rate of the Company’s mortgage notes payable was 1.97% and 1.99%, respectively. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. | |||||||
On September 3, 2013, the Company issued 13,500 shares of common stock to the Sponsor for $202,500. From inception through March 31, 2015, the Company had issued 15,963,147 shares of common stock in its Public Offering for offering proceeds of $208,705,781, including 125,610 shares of common stock issued pursuant to the DRP for total proceeds of $1,789,948, net of offering costs of $29,487,290. The offering costs primarily consist of selling commissions and dealer manager fees. Offering proceeds include $1,843,432 and $1,779,618 of amounts due from the Company’s transfer agent as of March 31, 2015 and December 31, 2014, 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 7, 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. | |||||||
The issuance and vesting activity for the three months ended March 31, 2015 and year ended December 31, 2014 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their initial election or re-election to the board of directors at the Company’s annual meeting is as follows: | |||||||
Three Months Ended March 31, 2015 | Year Ended December 31, 2014 | ||||||
Nonvested shares at the beginning of the period | 11,248 | — | |||||
Granted shares | — | 14,997 | |||||
Vested shares | (2,500 | ) | (3,749 | ) | |||
Nonvested shares at the end of the period | 8,748 | 11,248 | |||||
Included in general and administrative expenses is $14,067 and $37,702 for the three months ended March 31, 2015 and 2014, for compensation expense related to the issuance of restricted common stock. The weighted average remaining term of the restricted common stock was 1.39 years as of March 31, 2015. As of March 31, 2015, no shares of restricted common stock issued to the independent directors have been forfeited. | |||||||
Convertible Stock | |||||||
The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000. The Convertible Stock will convert into shares of common stock if and when: (A) the Company has made total distributions on the then-outstanding shares of its common stock equal to the original issue price of those shares plus an aggregate 6.0% cumulative, non-compounded, 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, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter without the approval of the stockholders to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of March 31, 2015 and December 31, 2014, 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 amend, suspend or terminate the DRP at its discretion at any time upon ten days notice to the Company’s stockholders. Following any termination of the DRP, all subsequent distributions to stockholders will be made in cash. | |||||||
Share Repurchase Plan and Redeemable Common Stock | |||||||
The Company’s share repurchase plan may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase plan until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. | |||||||
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: | |||||||
Share Purchase Anniversary | Repurchase Price | ||||||
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: | |||||||
Share Purchase Anniversary | Repurchase Price | ||||||
on Repurchase Date(1) | |||||||
Less than 1 year | No Repurchase Allowed | ||||||
1 year | 92.5% of Estimated Value per Share(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 | 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 or qualified valuation experts. Pursuant to current rules and regulations, the Company will establish an estimated value per share no later than 150 days following the second anniversary of breaking escrow in the Public Offering. | ||||||
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. During the three months ended March 31, 2015, the Company redeemed a total of 2,239 shares with a total redemption value of $33,551 and received requests for the redemption of 4,660 shares with a total redemption value of $69,900. During the three months ended March 31, 2014, the Company did not redeem any shares or receive requests for the redemption of any shares. | |||||||
As of March 31, 2015, the Company had 4,660 shares of outstanding and unfulfilled redemption requests and recorded $69,900 in accounts payable and accrued liabilities on the accompanying consolidated balance sheet related to these unfulfilled redemption requests. The Company redeemed the outstanding redemption requests as of March 31, 2015 of $69,900 on the April 30, 2015 Repurchase Date. | |||||||
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 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 pursuant to the Company’s share repurchase plan. | |||||||
The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the share repurchase plan at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the share repurchase plan are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase plan is in the best interest of the Company’s stockholders. Therefore, a stockholder may not have the opportunity to make a repurchase request prior to any potential termination of the Company’s share repurchase plan. The share repurchase plan will terminate in the event that a secondary market develops for the Company’s shares of common stock. | |||||||
Pursuant to the share repurchase plan, for the three months ended March 31, 2015 and 2014, the Company reclassified $1,062,758 and $0, net of $33,551 and $0 of fulfilled redemption requests, respectively, from permanent equity to temporary equity, which is included as redeemable common stock on the accompanying consolidated balance sheets. | |||||||
Distributions | |||||||
The Company’s long-term policy is 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 our 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 months ended March 31, 2015 were $2,709,299, including $1,374,500, or 96,456 shares of common stock, attributable to the DRP. No distributions were declared for the three months ended March 31, 2014. | |||||||
As of March 31, 2015, $1,108,253 of distributions declared were payable, which included $571,713, or 40,120 shares of common stock, attributable to the DRP. | |||||||
Distributions Paid | |||||||
For the three months ended March 31, 2015, the Company paid cash distributions of $1,113,641, which related to distributions declared for each day in the period from December 1, 2014 through February 28, 2015. Additionally, for the three months ended March 31, 2015, 76,934 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $1,096,309. For the three months ended March 31, 2015, the Company paid total distributions of $2,209,950. No distributions were paid for the three months ended March 31, 2014. |
Related_Party_Arrangements
Related Party Arrangements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 months ended March 31, 2015 and 2014 and amounts outstanding to the Advisor and its affiliates as of March 31, 2015 and December 31, 2014 are as follows: | |||||||||||||||||
Incurred For The Three Months Ended March 31, | Payable as of | ||||||||||||||||
2015 | 2014 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||
Consolidated Statements of Operations: | |||||||||||||||||
Expensed | |||||||||||||||||
Organization costs(4) | $ | — | $ | 42,882 | $ | — | $ | — | |||||||||
Investment management fees(1) | 810,046 | — | 42,523 | 147,946 | |||||||||||||
Acquisition fees(1) | 1,609,063 | — | 185,587 | 581,418 | |||||||||||||
Acquisition expenses(2) | 667,265 | 3,409 | — | 22,157 | |||||||||||||
Loan coordination fees(1) | 756,805 | — | — | 280,000 | |||||||||||||
Property management: | |||||||||||||||||
Fees(1) | 223,849 | — | 85,729 | 65,882 | |||||||||||||
Reimbursement of onsite personnel(3) | 701,042 | — | 139,726 | 66,268 | |||||||||||||
Other fees(1) | 64,270 | — | 9,159 | 6,799 | |||||||||||||
Other operating expenses(4) | 259,167 | 129,613 | 294,826 | 322,804 | |||||||||||||
Consolidated Balance Sheets: | |||||||||||||||||
Capitalized to real estate | |||||||||||||||||
Construction management fees | 87,313 | — | 12,803 | 6,595 | |||||||||||||
Additional paid-in capital | |||||||||||||||||
Other offering costs reimbursement | 1,257,030 | 437,770 | 649,550 | — | |||||||||||||
Selling commissions | 6,729,532 | 196,302 | — | — | |||||||||||||
Dealer manager fees | 3,043,244 | 55,673 | — | — | |||||||||||||
$ | 16,208,626 | $ | 865,649 | $ | 1,419,903 | $ | 1,499,869 | ||||||||||
_____________________ | |||||||||||||||||
-1 | Included in fees to affiliates in the accompanying consolidated statements of operations. | ||||||||||||||||
-2 | Included in acquisition costs in the accompanying consolidated statements of operations. | ||||||||||||||||
-3 | Included in operating, maintenance and management in the accompanying consolidated statements of operations. | ||||||||||||||||
-4 | Included in general and administrative expenses in the accompanying consolidated statements of operations. | ||||||||||||||||
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 (including sales commissions and dealer manager fees) borne by the Company exceed 15% of the gross proceeds raised in the Primary 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 Public Offering, as required by the rules of 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 repurchase plan. As of March 31, 2015 and December 31, 2014, the Advisor had incurred $1,350,010 and $1,000,008, respectively, of amounts payable to Crossroads Capital Advisors for the services described above on the Company’s behalf, all of which was recorded by the Company as offering costs during the applicable periods. | |||||||||||||||||
The amount of reimbursable organization and offering (“O&O”) costs that have been paid or recognized from inception through March 31, 2015 is as follows: | |||||||||||||||||
Amount | Percentage of Gross Offering Proceeds | ||||||||||||||||
Gross offering proceeds: | $ | 236,403,123 | 100 | % | |||||||||||||
O&O limitation | 15 | % | |||||||||||||||
Total O&O costs available to be paid/reimbursed | $ | 35,460,468 | 15 | % | |||||||||||||
O&O expenses recorded: | |||||||||||||||||
Sales commissions paid | $ | 15,544,589 | 6.58 | % | |||||||||||||
Broker dealer fees paid | 7,017,814 | 2.97 | % | ||||||||||||||
Offering cost reimbursements accrual | 6,924,887 | 2.93 | % | ||||||||||||||
Organizational costs reimbursements | 42,882 | 0.02 | % | ||||||||||||||
Total O&O cost reimbursements recorded by the Company | $ | 29,530,172 | 12.49 | % | |||||||||||||
When recognized, organization costs are expensed as incurred. From inception through March 31, 2015, 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 months ended March 31, 2015 and 2014, the Advisor incurred $2,000,349 and $1,523,489 of offering costs related to the Public Offering. The Advisor has incurred total offering costs related to the Public Offering of $11,221,098 from inception through March 31, 2015, of which $4,296,211 is deferred and may be reimbursable, subject to the limitations described above and the approval of the independent directors. | |||||||||||||||||
The Company accrued $649,550 and $0 for the reimbursement of offering costs in the accompanying consolidated balance sheet as of March 31, 2015 and December 31, 2014. The deferred offering costs of $4,296,211 were not included in the financial statements of the Company because such costs were not a liability of the Company as they exceeded the 15% limitation described above. | |||||||||||||||||
Investment Management Fee | |||||||||||||||||
The Company paid the Advisor a monthly investment management fee equal to one-twelfth of 0.50% of (1) the cost of the Company’s investments in real properties and real estate-related assets until the aggregate cost of the Company’s investments in real properties and real estate related assets equaled $300,000,000. Thereafter, the Company pays the Advisor a monthly investment management fee equal to one-twelfth of 1.0% of the cost of our investments in real 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 identified 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 March 31, 2015 ranges from 2.5% to 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 are 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. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred as such costs relate to capital improvements and renovations for units taken out of service while they undergo the planned renovation. | |||||||||||||||||
Other Operating Expense Reimbursement | |||||||||||||||||
In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. | |||||||||||||||||
The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2%/25% Limitation, unless 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). | |||||||||||||||||
At March 31, 2015, the Company’s allocable share of the Advisor’s overhead expenses did not exceed the 2%/25% Limitation test. | |||||||||||||||||
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 March 31, 2015 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 March 31, 2015. | |||||||||||||||||
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 | 3 Months Ended |
Mar. 31, 2015 | |
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. Each subsequent independent director that joins the Company’s board of directors receives 3,333 shares of restricted common stock upon election to the Company’s board of directors. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 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 $14,067 and $37,702 for the three months ended March 31, 2015 and 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, $60,750 and $55,750 for the three months ended March 31, 2015 and 2014 related to the independent directors annual retainer, which is included in general and administrative expenses in the accompanying consolidated statements of operations. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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 Atlanta, Georgia, Indianapolis, Indiana and Austin, Texas 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 | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
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 March 31, 2015, the Company had ten interest rate cap agreements with notional amounts totaling $272,611,100. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Villages at Spring Hill Apartments | Cap | Cap Floating Rate | 5/22/14 | 5/31/15 | $ | 9,940,000 | One-Month LIBOR | 0.1763 | % | 2 | % | $ | 11,480 | $ | 28,864 | ||||||||||||||
5/31/16 | 2.5 | % | |||||||||||||||||||||||||||
5/31/17 | 3 | % | |||||||||||||||||||||||||||
6/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Harrison Place Apartments | Cap | Cap Floating Rate | 6/30/14 | 6/30/15 | 19,530,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 25,685 | 62,838 | |||||||||||||||||
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 | 0.1763 | % | 2 | % | 25,447 | 59,005 | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Terrace Cove Apartment Homes | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 16,450,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 27,815 | 64,494 | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
The Residences on McGinnis Ferry | Cap | Cap Floating Rate | 10/16/14 | 10/31/15 | 73,660,600 | One-Month LIBOR | 0.1763 | % | 2 | % | 23,739 | 57,197 | |||||||||||||||||
11/1/18 | 5.44 | % | |||||||||||||||||||||||||||
The 1800 at Barrett Lakes | Cap | Cap Floating Rate | 11/20/14 | 11/30/15 | 34,300,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 81,219 | 175,313 | |||||||||||||||||
11/30/16 | 2.5 | % | |||||||||||||||||||||||||||
11/30/17 | 3 | % | |||||||||||||||||||||||||||
12/1/18 | 3.5 | % | |||||||||||||||||||||||||||
The Oasis | Cap | Cap Floating Rate | 12/19/14 | 12/31/15 | 28,000,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 119,432 | 200,703 | |||||||||||||||||
12/31/16 | 2.5 | % | |||||||||||||||||||||||||||
12/31/17 | 3 | % | |||||||||||||||||||||||||||
1/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Columns on Wetherington | Cap | Cap Floating Rate | 2/26/15 | 2/29/16 | 17,500,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 56,108 | — | |||||||||||||||||
2/28/17 | 2.5 | % | |||||||||||||||||||||||||||
2/28/18 | 3 | % | |||||||||||||||||||||||||||
3/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Preston Hills at Mill Creek | Cap | Cap Floating Rate | 3/10/15 | 3/31/16 | 35,700,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 126,114 | — | |||||||||||||||||
3/31/17 | 2.5 | % | |||||||||||||||||||||||||||
3/31/18 | 3 | % | |||||||||||||||||||||||||||
4/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Randall Highlands Apartments | Cap | Cap Floating Rate | 3/31/15 | 3/31/16 | $ | 22,480,500 | One-Month LIBOR | 0.1763 | % | 2 | % | $ | 79,415 | $ | — | ||||||||||||||
3/31/17 | 2.5 | % | |||||||||||||||||||||||||||
3/31/18 | 3 | % | |||||||||||||||||||||||||||
4/1/19 | 3.5 | % | |||||||||||||||||||||||||||
$ | 272,611,100 | $ | 576,454 | $ | 648,414 | ||||||||||||||||||||||||
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 months ended March 31, 2015 and 2014 resulted in an unrealized loss of $664,110 and $0, respectively, which is included in interest expense in the accompanying consolidated statements of operations. The fair value of the interest rate caps of $576,454 and $648,414 as of March 31, 2015 and December 31, 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 months ended March 31, 2015 and 2014. The Company acquired five properties during the three months ended March 31, 2015. These properties contributed $645,412 of revenues and $1,009,333 of net loss, including $522,955 of depreciation and amortization, to the Company’s results of operations from the date of acquisition to March 31, 2015. The following unaudited pro forma information for the three months ended March 31, 2015 and 2014 has been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2014. 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 March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | $ | 11,590,854 | $ | 4,490,447 | |||||
Net loss | $ | (6,183,900 | ) | $ | (6,327,894 | ) | |||
Loss per common share, basic and diluted | $ | (0.51 | ) | $ | (0.52 | ) | |||
The pro forma information reflects adjustments for actual revenues and expenses of the properties acquired during the three months ended March 31, 2015 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, 2014 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 | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Status of Our Offering | |
As of May 8, 2015, the Company had sold 18,547,555 shares of common stock in the Public Offering for gross proceeds of $276,762,011, including 212,156 shares of common stock issued pursuant to the DRP for gross offering proceeds of $3,023,229. | |
Distributions Paid | |
On April 1, 2015, the Company paid distributions of $1,108,253, which related to distributions declared for each day in the period from March 1, 2015 through March 31, 2015 and consisted of cash distributions paid in the amount of $536,540 and $571,713 in shares issued pursuant to the DRP. | |
On May 1, 2015, the Company paid distributions of $1,255,360, which related to distributions declared for each day in the period from April 1, 2015 through April 30, 2015 and consisted of cash distributions paid in the amount of $593,892 and $661,468 in shares issued pursuant to the DRP. | |
Acquisition of Heritage Place Apartments | |
On April 27, 2015, the Company acquired a fee simple interest in Heritage Place Apartments (the “Heritage Place Property”) located in Franklin, Tennessee for a purchase price of $9,650,000, exclusive of closing costs. The Company financed the payment of the purchase price for the Heritage Place Property with proceeds from its initial public offering. The Heritage Place Property consists of 13 two-story garden-style residential buildings and a leasing office. The Heritage Place Property contains 105 units, all of which are two-bedroom apartments that average 921 square feet. The Company has not yet measured the fair value of the tangible and identified intangible assets and liabilities of the acquisition. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
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. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
Use of Estimates | Use of Estimates | |
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. | ||
Fair Value Measurements | Fair Value Measurements | |
Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: | ||
• | Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; | |
• | Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and | |
• | Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. | |
When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. | ||
The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. | ||
Interest rate cap agreements - 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. Changes in the fair value of the interest rate cap agreements are recorded as interest expense in the accompanying consolidated statements of operations. | ||
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. 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. | ||
Distribution Policy | Distribution Policy | |
The Company intends to elect to be taxed as a REIT beginning with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). | ||
Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. | ||
Per Share Data | Per Share Data | |
Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assumes each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. | ||
Segment Disclosure | Segment Disclosure | |
The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In August 2014, the FASB issued Accounting Standard Updates (“ASU”) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, 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 does not expect there to be a material impact from adopting this new guidance. | ||
In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, that eliminates the concept of the extraordinary items from GAAP. The objective of the new guidance is to simplify the income statement presentation requirements of GAAP. Eliminating the extraordinary classification simplifies income statement presentation by altogether removing the concept of extraordinary items from consideration. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. | ||
In February 2015, the FASB issued ASU 2015-02, Consolidation, that provides amendments to the consolidation analysis. The amendments in this new guidance affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The guidance is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect there to be a material impact from adopting this new guidance. | ||
In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. To simplify presentation of debt issuance costs, the new guidance will require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs will not be affected by the new guidance. The guidance requires retrospective application and is effective for annual periods, including interim periods within that period, beginning after December 15, 2015. Early adoption is permitted. Upon adoption, the Company will reclassify debt issuance costs from deferred financing costs and other assets, net to mortgage notes payable on the consolidated balance sheet. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis | The following table reflects the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: | ||||||||||||
March 31, 2015 | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||
Interest rate cap agreements | $ | — | $ | 576,454 | $ | — | |||||||
December 31, 2014 | |||||||||||||
Fair Value Measurements Using | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||
Assets: | |||||||||||||
Interest rate cap agreements | $ | — | $ | 648,414 | $ | — | |||||||
Real_Estate_Tables
Real Estate (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||
Schedule of Purchase Price Allocation | During the three months ended March 31, 2015, the Company acquired the following properties: | |||||||||||||||||||||||||||
Purchase Price Allocation | ||||||||||||||||||||||||||||
Property Name | Location | Purchase Date | Units | Land | Buildings and Improvements | Tenant Origination and Absorption Costs | Other Accounts Receivable | Total Purchase Price | ||||||||||||||||||||
Columns on Wetherington | Florence, KY | 2/26/15 | 192 | $ | 1,276,787 | $ | 23,172,820 | $ | 550,393 | $ | — | $ | 25,000,000 | |||||||||||||||
Preston Hills at Mill Creek | Buford, GA | 3/10/15 | 464 | 5,813,218 | 43,594,089 | 1,592,693 | — | 51,000,000 | ||||||||||||||||||||
Eagle Lake Landing | Speedway, IN | 3/27/15 | 277 | 1,607,980 | 16,933,827 | 658,193 | — | 19,200,000 | ||||||||||||||||||||
Reveal on Cumberland | Fishers, IN | 3/30/15 | 220 | 3,299,502 | 25,458,315 | 480,739 | 261,444 | 29,500,000 | ||||||||||||||||||||
Randall Highlands Apartments | North Aurora, IL | 3/31/15 | 146 | 2,499,350 | 28,865,543 | 750,107 | — | 32,115,000 | ||||||||||||||||||||
1,299 | $ | 14,496,837 | $ | 138,024,594 | $ | 4,032,125 | $ | 261,444 | $ | 156,815,000 | ||||||||||||||||||
Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles | As of March 31, 2015 and December 31, 2014, accumulated depreciation and amortization related to the Company’s consolidated real estate properties and related intangibles were as follows: | |||||||||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||
Investments in real estate | $ | 49,055,569 | $ | 373,509,919 | $ | 8,203,800 | $ | 430,769,288 | ||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (4,718,897 | ) | (3,639,552 | ) | (8,358,449 | ) | |||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 49,055,569 | $ | 368,791,022 | $ | 4,564,248 | $ | 422,410,839 | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Land | Building and Improvements | Tenant Origination and Absorption | Total Real Estate | |||||||||||||||||||||||||
Investments in real estate | $ | 34,558,732 | $ | 234,259,502 | $ | 5,578,528 | $ | 274,396,762 | ||||||||||||||||||||
Less: Accumulated depreciation and amortization | — | (2,206,072 | ) | (2,203,061 | ) | (4,409,133 | ) | |||||||||||||||||||||
Net investments in real estate and related lease intangibles | $ | 34,558,732 | $ | 232,053,430 | $ | 3,375,467 | $ | 269,987,629 | ||||||||||||||||||||
Deferred_Financing_Costs_and_O1
Deferred Financing Costs and Other Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of Other Assets | As of March 31, 2015 and December 31, 2014, deferred financing costs and other assets, net of accumulated amortization, consisted of: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Deferred financing costs | $ | 1,807,651 | $ | 1,318,441 | ||||
Less: accumulated amortization | (82,823 | ) | (39,245 | ) | ||||
1,724,828 | 1,279,196 | |||||||
Prepaid expenses | 302,153 | 360,316 | ||||||
Interest rate cap agreements | 576,454 | 648,414 | ||||||
Escrow deposits for pending real estate acquisitions | 2,000,000 | 500,000 | ||||||
Other deposits | 362,611 | 250,380 | ||||||
$ | 4,966,046 | $ | 3,038,306 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||
Summary of Mortgage Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable secured by real property as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||
Principal Outstanding at | |||||||||||||||||||||||||||||
Property Name | Payment Type | Maturity Date | Interest Rate | March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
1 | Villages at Spring Hill Apartments | Principal and interest(1) | June 1, 2024 | 1-Mo LIBOR + 2.13%(2) | $ | 9,940,000 | $ | 9,940,000 | |||||||||||||||||||||
2 | Harrison Place Apartments | Principal and interest(1) | July 1, 2024 | 1-Mo LIBOR + 1.84%(2) | 19,530,000 | 19,530,000 | |||||||||||||||||||||||
3 | Club at Summer Valley | Principal and interest(1) | September 1, 2024 | 1-Mo LIBOR + 1.98%(2) | 15,050,000 | 15,050,000 | |||||||||||||||||||||||
4 | Terrace Cove Apartment Homes | Principal and interest(1) | September 1, 2024 | 1-Mo LIBOR + 1.98%(2) | 16,450,000 | 16,450,000 | |||||||||||||||||||||||
5 | The Residences on McGinnis Ferry | Principal and interest(3) | November 1, 2024 | 1-Mo LIBOR + 1.70%(2) | 73,660,600 | 73,660,600 | |||||||||||||||||||||||
6 | The 1800 at Barrett Lakes | Interest only | December 1, 2021 | 1-Mo LIBOR + 1.77%(2) | 34,300,000 | 34,300,000 | |||||||||||||||||||||||
7 | The Oasis | Interest only | 1-Jan-22 | 1-Mo LIBOR + 1.89%(2) | 28,000,000 | 28,000,000 | |||||||||||||||||||||||
8 | Columns on Wetherington | Principal and interest(3) | March 1, 2025 | 1-Mo LIBOR + 1.68%(2) | 17,500,000 | — | |||||||||||||||||||||||
9 | Preston Hills at Mill Creek | Principal and interest(3) | April 1, 2025 | 1-Mo LIBOR + 1.69%(2) | 35,700,000 | — | |||||||||||||||||||||||
10 | Randall Highlands Apartments | Principal and interest(4) | April 1, 2025 | 1-Mo LIBOR + 1.77%(2) | 22,480,500 | — | |||||||||||||||||||||||
$ | 272,611,100 | $ | 196,930,600 | ||||||||||||||||||||||||||
_________________ | |||||||||||||||||||||||||||||
-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. | ||||||||||||||||||||||||||||
-3 | A monthly payment of interest only is due and payable for 60 months from the loan date, after which a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
-4 | A monthly payment of interest only is due and payable for 36 months from the loan date, after which a monthly payment of principal and interest is due and payable until the maturity date. | ||||||||||||||||||||||||||||
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of March 31, 2015: | ||||||||||||||||||||||||||||
Maturities During the Years Ending December 31, | |||||||||||||||||||||||||||||
Contractual Obligations | Total | Remainder of 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||||||
Principal payments on outstanding debt | $ | 272,611,100 | $ | — | $ | — | $ | — | $ | 479,920 | $ | 1,346,954 | $ | 270,784,226 | |||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Stockholders' Equity Note [Abstract] | |||||||
Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services | The issuance and vesting activity for the three months ended March 31, 2015 and year ended December 31, 2014 for the restricted stock issued to the Company’s independent directors as compensation for services in connection with their initial election or re-election to the board of directors at the Company’s annual meeting is as follows: | ||||||
Three Months Ended March 31, 2015 | Year Ended December 31, 2014 | ||||||
Nonvested shares at the beginning of the period | 11,248 | — | |||||
Granted shares | — | 14,997 | |||||
Vested shares | (2,500 | ) | (3,749 | ) | |||
Nonvested shares at the end of the period | 8,748 | 11,248 | |||||
Schedule of Share Repurchase Plan Prior to 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: | ||||||
Share Purchase Anniversary | Repurchase Price | ||||||
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 | 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 or qualified valuation experts. Pursuant to current rules and regulations, the Company will establish an estimated value per share no later than 150 days following the second anniversary of breaking escrow in the Public Offering. | ||||||
Schedule of Share Repurchase Plan Following 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: | ||||||
Share Purchase Anniversary | Repurchase Price | ||||||
on Repurchase Date(1) | |||||||
Less than 1 year | No Repurchase Allowed | ||||||
1 year | 92.5% of Estimated Value per Share(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 | 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 or qualified valuation experts. Pursuant to current rules and regulations, the Company will establish an estimated value per share no later than 150 days following the second anniversary of breaking escrow in the Public Offering. |
Related_Party_Arrangements_Tab
Related Party Arrangements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 months ended March 31, 2015 and 2014 and amounts outstanding to the Advisor and its affiliates as of March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||||||
Incurred For The Three Months Ended March 31, | Payable as of | ||||||||||||||||
2015 | 2014 | 31-Mar-15 | 31-Dec-14 | ||||||||||||||
Consolidated Statements of Operations: | |||||||||||||||||
Expensed | |||||||||||||||||
Organization costs(4) | $ | — | $ | 42,882 | $ | — | $ | — | |||||||||
Investment management fees(1) | 810,046 | — | 42,523 | 147,946 | |||||||||||||
Acquisition fees(1) | 1,609,063 | — | 185,587 | 581,418 | |||||||||||||
Acquisition expenses(2) | 667,265 | 3,409 | — | 22,157 | |||||||||||||
Loan coordination fees(1) | 756,805 | — | — | 280,000 | |||||||||||||
Property management: | |||||||||||||||||
Fees(1) | 223,849 | — | 85,729 | 65,882 | |||||||||||||
Reimbursement of onsite personnel(3) | 701,042 | — | 139,726 | 66,268 | |||||||||||||
Other fees(1) | 64,270 | — | 9,159 | 6,799 | |||||||||||||
Other operating expenses(4) | 259,167 | 129,613 | 294,826 | 322,804 | |||||||||||||
Consolidated Balance Sheets: | |||||||||||||||||
Capitalized to real estate | |||||||||||||||||
Construction management fees | 87,313 | — | 12,803 | 6,595 | |||||||||||||
Additional paid-in capital | |||||||||||||||||
Other offering costs reimbursement | 1,257,030 | 437,770 | 649,550 | — | |||||||||||||
Selling commissions | 6,729,532 | 196,302 | — | — | |||||||||||||
Dealer manager fees | 3,043,244 | 55,673 | — | — | |||||||||||||
$ | 16,208,626 | $ | 865,649 | $ | 1,419,903 | $ | 1,499,869 | ||||||||||
_____________________ | |||||||||||||||||
-1 | Included in fees to affiliates in the accompanying consolidated statements of operations. | ||||||||||||||||
-2 | Included in acquisition costs in the accompanying consolidated statements of operations. | ||||||||||||||||
-3 | Included in operating, maintenance and management in the accompanying consolidated statements of operations. | ||||||||||||||||
-4 | Included in general and administrative expenses in the accompanying consolidated statements of operations. | ||||||||||||||||
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 March 31, 2015 is as follows: | ||||||||||||||||
Amount | Percentage of Gross Offering Proceeds | ||||||||||||||||
Gross offering proceeds: | $ | 236,403,123 | 100 | % | |||||||||||||
O&O limitation | 15 | % | |||||||||||||||
Total O&O costs available to be paid/reimbursed | $ | 35,460,468 | 15 | % | |||||||||||||
O&O expenses recorded: | |||||||||||||||||
Sales commissions paid | $ | 15,544,589 | 6.58 | % | |||||||||||||
Broker dealer fees paid | 7,017,814 | 2.97 | % | ||||||||||||||
Offering cost reimbursements accrual | 6,924,887 | 2.93 | % | ||||||||||||||
Organizational costs reimbursements | 42,882 | 0.02 | % | ||||||||||||||
Total O&O cost reimbursements recorded by the Company | $ | 29,530,172 | 12.49 | % | |||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Villages at Spring Hill Apartments | Cap | Cap Floating Rate | 5/22/14 | 5/31/15 | $ | 9,940,000 | One-Month LIBOR | 0.1763 | % | 2 | % | $ | 11,480 | $ | 28,864 | ||||||||||||||
5/31/16 | 2.5 | % | |||||||||||||||||||||||||||
5/31/17 | 3 | % | |||||||||||||||||||||||||||
6/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Harrison Place Apartments | Cap | Cap Floating Rate | 6/30/14 | 6/30/15 | 19,530,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 25,685 | 62,838 | |||||||||||||||||
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 | 0.1763 | % | 2 | % | 25,447 | 59,005 | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
Terrace Cove Apartment Homes | Cap | Cap Floating Rate | 8/28/14 | 8/31/15 | 16,450,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 27,815 | 64,494 | |||||||||||||||||
8/31/16 | 2.5 | % | |||||||||||||||||||||||||||
8/31/17 | 3 | % | |||||||||||||||||||||||||||
9/1/18 | 3.5 | % | |||||||||||||||||||||||||||
The Residences on McGinnis Ferry | Cap | Cap Floating Rate | 10/16/14 | 10/31/15 | 73,660,600 | One-Month LIBOR | 0.1763 | % | 2 | % | 23,739 | 57,197 | |||||||||||||||||
11/1/18 | 5.44 | % | |||||||||||||||||||||||||||
The 1800 at Barrett Lakes | Cap | Cap Floating Rate | 11/20/14 | 11/30/15 | 34,300,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 81,219 | 175,313 | |||||||||||||||||
11/30/16 | 2.5 | % | |||||||||||||||||||||||||||
11/30/17 | 3 | % | |||||||||||||||||||||||||||
12/1/18 | 3.5 | % | |||||||||||||||||||||||||||
The Oasis | Cap | Cap Floating Rate | 12/19/14 | 12/31/15 | 28,000,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 119,432 | 200,703 | |||||||||||||||||
12/31/16 | 2.5 | % | |||||||||||||||||||||||||||
12/31/17 | 3 | % | |||||||||||||||||||||||||||
1/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Columns on Wetherington | Cap | Cap Floating Rate | 2/26/15 | 2/29/16 | 17,500,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 56,108 | — | |||||||||||||||||
2/28/17 | 2.5 | % | |||||||||||||||||||||||||||
2/28/18 | 3 | % | |||||||||||||||||||||||||||
3/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Preston Hills at Mill Creek | Cap | Cap Floating Rate | 3/10/15 | 3/31/16 | 35,700,000 | One-Month LIBOR | 0.1763 | % | 2 | % | 126,114 | — | |||||||||||||||||
3/31/17 | 2.5 | % | |||||||||||||||||||||||||||
3/31/18 | 3 | % | |||||||||||||||||||||||||||
4/1/19 | 3.5 | % | |||||||||||||||||||||||||||
Fair Value as of | |||||||||||||||||||||||||||||
Property | Type | Purpose | Effective Date | Maturity Date | Notional Amount | Based on | Variable Rate | Cap Rate | March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Randall Highlands Apartments | Cap | Cap Floating Rate | 3/31/15 | 3/31/16 | $ | 22,480,500 | One-Month LIBOR | 0.1763 | % | 2 | % | $ | 79,415 | $ | — | ||||||||||||||
3/31/17 | 2.5 | % | |||||||||||||||||||||||||||
3/31/18 | 3 | % | |||||||||||||||||||||||||||
4/1/19 | 3.5 | % | |||||||||||||||||||||||||||
$ | 272,611,100 | $ | 576,454 | $ | 648,414 | ||||||||||||||||||||||||
Pro_Forma_Information_unaudite1
Pro Forma Information (unaudited) (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information for the three months ended March 31, 2015 and 2014 has been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2014. 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 March 31, | |||||||||
2015 | 2014 | ||||||||
Revenues | $ | 11,590,854 | $ | 4,490,447 | |||||
Net loss | $ | (6,183,900 | ) | $ | (6,327,894 | ) | |||
Loss per common share, basic and diluted | $ | (0.51 | ) | $ | (0.52 | ) |
Organization_and_Business_Narr
Organization and Business - Narrative (Details) (USD $) | 0 Months Ended | |||
Sep. 03, 2013 | Aug. 23, 2013 | Mar. 31, 2015 | Apr. 04, 2014 | |
multifamily_property | ||||
apartment | ||||
Initial capitalization | ||||
Number of multifamily properties | 12 | |||
Number of apartment homes | 3,794 | |||
Common Stock [Member] | ||||
Initial capitalization | ||||
Share price (in dollars per share) | $15 | |||
Common Stock [Member] | Sponsor [Member] | ||||
Initial capitalization | ||||
Issuance of common stock (in shares) | 13,500 | |||
Share price (in dollars per share) | $15 | |||
Issuance of common stock | $202,500 | |||
Convertible Stock [Member] | Advisor [Member] | ||||
Initial capitalization | ||||
Issuance of common stock (in shares) | 1,000 | |||
Issuance of common stock | $1,000 |
Organization_and_Business_Narr1
Organization and Business - Narrative - Public Offering (Details) (USD $) | 3 Months Ended | 2 Months Ended | 19 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Feb. 27, 2014 | Mar. 31, 2015 | Dec. 30, 2013 | Apr. 04, 2014 | |
Public Offering Information | |||||
Proceeds from issuance of common stock | $238,193,071 | ||||
IPO [Member] | |||||
Public Offering Information | |||||
Escrow account release threshold, minimum offering amount | $2,000,000 | ||||
Offering period | 1 year | ||||
Common Stock [Member] | |||||
Public Offering Information | |||||
Registration statement, price per share (in dollars per share) | $15 | ||||
Common Stock [Member] | IPO [Member] | |||||
Public Offering Information | |||||
Issuance of common stock (in shares) | 15,963,147 | 15,963,147 | |||
Common Stock [Member] | Primary Offering [Member] | |||||
Public Offering Information | |||||
Maximum number of shares authorized for sale under registration statement (in shares) | 66,666,667 | ||||
Registration statement, price per share (in dollars per share) | $15 | ||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | |||||
Public Offering Information | |||||
Maximum number of shares authorized for sale under registration statement (in shares) | 7,017,544 | ||||
Registration statement, price per share (in dollars per share) | $14.25 | 14.25 | $14.25 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis (Details) (Interest Rate Cap [Member], Fair Value, Measurements, Recurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $0 | $0 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | 576,454 | 648,414 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $0 | $0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes payable | $272,611,100 | $196,930,600 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes payable, fair value | 259,076,618 | 191,983,420 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage notes payable | $272,611,100 | $196,930,600 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Narrative - Distribution Policy (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Accounting Policies [Abstract] | ||
Common share, distribution rate per share per day, declared (in dollars per share) | $0.00 | |
Distributions declared per common share (in dollars per share) | $0.22 | $0 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Real_Estate_Narrative_Details
Real Estate - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
multifamily_property | |||
apartment | |||
unit | |||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | |||
Number of multifamily properties | 12 | ||
Units | 1,299 | ||
Purchase price | $431,379,250 | ||
Average percentage of real estate portfolio occupied | 92.80% | 94.20% | |
Average monthly collected rent | 980 | 884 | |
Depreciation and amortization | 5,356,169 | 0 | |
Tenant Origination and Absorption [Member] | |||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | |||
Amortization of intangible assets | 2,843,344 | 0 | |
Maximum [Member] | Tenant Origination and Absorption [Member] | |||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | |||
Weighted average amortization period of tenant origination and absorption costs | 1 year | ||
Building and Building Improvements [Member] | |||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | |||
Depreciation | $2,512,825 | $0 | |
Residential Real Estate [Member] | |||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | |||
Units | 3,794 |
Real_Estate_Schedule_of_Purcha
Real Estate - Schedule of Purchase Price Allocation (Details) (USD $) | Mar. 31, 2015 |
unit | |
Business Acquisition | |
Units | 1,299 |
Land | 14,496,837 |
Buildings and Improvements | 138,024,594 |
Tenant Origination and Absorption Costs | 4,032,125 |
Other Accounts Receivable | 261,444 |
Total Purchase Price | 156,815,000 |
Columns on Wetherington [Member] | |
Business Acquisition | |
Units | 192 |
Land | 1,276,787 |
Buildings and Improvements | 23,172,820 |
Tenant Origination and Absorption Costs | 550,393 |
Other Accounts Receivable | 0 |
Total Purchase Price | 25,000,000 |
Preston Hills at Mill Creek [Member] | |
Business Acquisition | |
Units | 464 |
Land | 5,813,218 |
Buildings and Improvements | 43,594,089 |
Tenant Origination and Absorption Costs | 1,592,693 |
Other Accounts Receivable | 0 |
Total Purchase Price | 51,000,000 |
Eagle Lake Landing [Member] | |
Business Acquisition | |
Units | 277 |
Land | 1,607,980 |
Buildings and Improvements | 16,933,827 |
Tenant Origination and Absorption Costs | 658,193 |
Other Accounts Receivable | 0 |
Total Purchase Price | 19,200,000 |
Reveal on Cumberland [Member] | |
Business Acquisition | |
Units | 220 |
Land | 3,299,502 |
Buildings and Improvements | 25,458,315 |
Tenant Origination and Absorption Costs | 480,739 |
Other Accounts Receivable | 261,444 |
Total Purchase Price | 29,500,000 |
Randall Highlands [Member] | |
Business Acquisition | |
Units | 146 |
Land | 2,499,350 |
Buildings and Improvements | 28,865,543 |
Tenant Origination and Absorption Costs | 750,107 |
Other Accounts Receivable | 0 |
Total Purchase Price | 32,115,000 |
Real_Estate_Schedule_of_Accumu
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | $430,769,288 | $274,396,762 |
Less: Accumulated depreciation and amortization | -8,358,449 | -4,409,133 |
Total real estate, net | 422,410,839 | 269,987,629 |
Land [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 49,055,569 | 34,558,732 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Total real estate, net | 49,055,569 | 34,558,732 |
Building and Improvements [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 373,509,919 | 234,259,502 |
Less: Accumulated depreciation and amortization | -4,718,897 | -2,206,072 |
Total real estate, net | 368,791,022 | 232,053,430 |
Tenant Origination and Absorption [Member] | ||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||
Investments in real estate | 8,203,800 | 5,578,528 |
Less: Accumulated depreciation and amortization | -3,639,552 | -2,203,061 |
Total real estate, net | $4,564,248 | $3,375,467 |
Real_Estate_Narrative_Operatin
Real Estate - Narrative - Operating Leases (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | |
apartment | tenant | ||
unit | |||
Real Estate Properties [Line Items] | |||
Units | 1,299 | ||
Average percentage of real estate portfolio occupied | 92.80% | 94.20% | |
Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Operating lease term | 12 months | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Real Estate Properties [Line Items] | |||
Security deposit liability | 749,882 | 459,707 | |
Residential Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Units | 3,794 | ||
Tenant [Member] | Customer Concentration Risk [Member] | |||
Real Estate Properties [Line Items] | |||
Number of tenants | 0 | 0 |
Deferred_Financing_Costs_and_O2
Deferred Financing Costs and Other Assets - Schedule of Other Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred financing costs | $1,807,651 | $1,318,441 |
Less: accumulated amortization | -82,823 | -39,245 |
Deferred financing costs, net | 1,724,828 | 1,279,196 |
Prepaid expenses | 302,153 | 360,316 |
Interest rate cap agreements | 576,454 | 648,414 |
Escrow deposits for pending real estate acquisitions | 2,000,000 | 500,000 |
Other deposits | 362,611 | 250,380 |
Deferred financing costs and other assets, net | $4,966,046 | $3,038,306 |
Debt_Summary_of_Mortgage_Notes
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Mortgage notes payable | 272,611,100 | $196,930,600 |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 272,611,100 | 196,930,600 |
Notes Payable to Banks [Member] | Villages at Spring Hill Apartments [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 9,940,000 | 9,940,000 |
Notes Payable to Banks [Member] | Villages at Spring Hill Apartments [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.13% | |
Notes Payable to Banks [Member] | Harrison Place Apartments [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 19,530,000 | 19,530,000 |
Notes Payable to Banks [Member] | Harrison Place Apartments [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.84% | |
Notes Payable to Banks [Member] | Club at Summer Valley [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 15,050,000 | 15,050,000 |
Notes Payable to Banks [Member] | Club at Summer Valley [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.98% | |
Notes Payable to Banks [Member] | Terrace Cove Apartment Homes [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 16,450,000 | 16,450,000 |
Notes Payable to Banks [Member] | Terrace Cove Apartment Homes [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.98% | |
Notes Payable to Banks [Member] | The Residences on McGinnis Ferry [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 73,660,600 | 73,660,600 |
Notes Payable to Banks [Member] | The Residences on McGinnis Ferry [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.70% | |
Notes Payable to Banks [Member] | The 1800 at Barrett Lakes [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 34,300,000 | 34,300,000 |
Notes Payable to Banks [Member] | The 1800 at Barrett Lakes [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.77% | |
Notes Payable to Banks [Member] | The Oasis [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 28,000,000 | 28,000,000 |
Notes Payable to Banks [Member] | The Oasis [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.89% | |
Notes Payable to Banks [Member] | Columns on Wetherington [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 17,500,000 | 0 |
Notes Payable to Banks [Member] | Columns on Wetherington [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.68% | |
Notes Payable to Banks [Member] | Preston Hills at Mill Creek [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 35,700,000 | 0 |
Notes Payable to Banks [Member] | Preston Hills at Mill Creek [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.69% | |
Notes Payable to Banks [Member] | Randall Highlands Apartments [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage notes payable | 22,480,500 | $0 |
Notes Payable to Banks [Member] | Randall Highlands Apartments [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.77% |
Debt_Summary_of_Mortgage_Notes1
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Footnote) (Details) (Notes Payable to Banks [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Villages at Spring Hill Apartments [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 48 months |
Harrison Place Apartments [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 48 months |
Club at Summer Valley [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 48 months |
Terrace Cove Apartment Homes [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 48 months |
The Residences on McGinnis Ferry [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 60 months |
Columns on Wetherington [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 60 months |
Preston Hills at Mill Creek [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 60 months |
Randall Highlands Apartments [Member] | |
Debt Instrument [Line Items] | |
Number of periods interest payments due | 36 months |
Debt_Summary_of_Aggregate_Matu
Debt - Summary of Aggregate Maturities (Details) (USD $) | Mar. 31, 2015 |
Debt Disclosure [Abstract] | |
Total | $272,611,100 |
Remainder of 2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 479,920 |
2019 | 1,346,954 |
Thereafter | $270,784,226 |
Debt_Narrative_Details
Debt - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Interest expense | $1,760,583 | $0 | |
Amortization of deferred financing costs | 43,578 | 0 | |
Change in fair value of interest rate cap agreements | 664,110 | 0 | |
Interest Rate Cap [Member] | |||
Debt Instrument [Line Items] | |||
Change in fair value of interest rate cap agreements | 664,110 | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Interest payable | $365,809 | $285,395 | |
Notes Payable to Banks [Member] | |||
Debt Instrument [Line Items] | |||
Weighted-average interest rate of mortgage notes payable | 1.97% | 1.99% |
Stockholders_Equity_Narrative_
Stockholders' Equity - Narrative - General (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||
Common and preferred shares authorized (in shares) | 1,100,000,000 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 999,999,000 | 999,999,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Stockholders_Equity_Narrative_1
Stockholders' Equity - Narrative - Common Stock (Details) (USD $) | 3 Months Ended | 19 Months Ended | 0 Months Ended | 2 Months Ended | 12 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Sep. 03, 2013 | Feb. 27, 2014 | Dec. 31, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | |
installment | director | |||||||
Class of Stock [Line Items] | ||||||||
Offering costs | $9,772,776 | $251,975 | ||||||
Stock issued during period, dividend reinvestment plan (in shares) | 76,934 | 125,610 | ||||||
Proceeds from issuance of common stock, dividend reinvestment plan | 1,096,309 | 1,789,948 | ||||||
Receivable from transfer agent | 1,843,432 | 1,843,432 | 1,779,618 | |||||
Share-based compensation expense | 14,067 | 37,702 | ||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of votes per share | 1 | |||||||
Sponsor [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock (in shares) | 13,500 | |||||||
Issuance of common stock | 202,500 | |||||||
IPO [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Offering costs | 29,487,290 | |||||||
Public offering proceeds | 2,000,000 | |||||||
IPO [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Issuance of common stock (in shares) | 15,963,147 | 15,963,147 | ||||||
Proceeds from issuance of stock, net of offering costs | 208,705,781 | |||||||
Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 0 | 14,997 | ||||||
Forfeited shares (in shares) | 0 | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Number of directors | 3 | |||||||
Shares granted, grant date fair value (in dollars per share) | $15 | $15 | ||||||
Number of equal annual vesting installments | 4 | |||||||
Share-based compensation expense | 14,067 | 37,702 | ||||||
Weighted-average remaining term | 1 year 4 months 20 days | |||||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | IPO [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Public offering proceeds | 2,000,000 | |||||||
Independent Directors Compensation Plan [Member] | Director One [Member] | Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
Independent Directors Compensation Plan [Member] | Director One [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
Independent Directors Compensation Plan [Member] | Director Two [Member] | Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
Independent Directors Compensation Plan [Member] | Director Two [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
Independent Directors Compensation Plan [Member] | Director Three [Member] | Restricted Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
Independent Directors Compensation Plan [Member] | Director Three [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares granted (in shares) | 1,666 | 3,333 | ||||||
General and Administrative Expense [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based compensation expense | $14,067 | $37,702 |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services (Details) (Restricted Stock [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares at the beginning of the year (in shares) | 11,248 | 0 |
Granted shares (in shares) | 0 | 14,997 |
Vested shares (in shares) | -2,500 | -3,749 |
Nonvested shares at the end of the year (in shares) | 8,748 | 11,248 |
Stockholders_Equity_Narrative_2
Stockholders' Equity - Narrative - Convertible Stock (Details) (Advisor [Member], Convertible Stock [Member], USD $) | 0 Months Ended | 3 Months Ended |
Aug. 23, 2013 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||
Issuance of common stock (in shares) | 1,000 | |
Issuance of common stock | $1,000 | |
Aggregate percentage of cumulative, non-compounded, annual return on the original issue price added to total distributions qualifying for conversion of stock | 6.00% | |
Convertible stock redemption price (in dollars per share) | $1 | |
Convertible stock, conversion ratio | 0.10% | |
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | |
Private Placement [Member] | ||
Class of Stock [Line Items] | ||
Issuance of common stock (in shares) | 1,000 | |
Issuance of common stock | $1,000 |
Stockholders_Equity_Narrative_3
Stockholders' Equity - Narrative - Preferred Stock (Details) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
class | ||
Equity [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 (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stockholders_Equity_Narrative_4
Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Apr. 04, 2014 | Dec. 30, 2013 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Share price (in dollars per share) | $15 | ||
Distribution Reinvestment Plan [Member] | |||
Class of Stock [Line Items] | |||
Sales commissions or dealer manager fees payable on shares sold under the plan | $0 | ||
Notice period for termination of plan | 10 days | ||
Distribution Reinvestment Plan [Member] | Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Share price (in dollars per share) | $14.25 | $14.25 |
Stockholders_Equity_Narrative_5
Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Class of Stock [Line Items] | ||
Transfers to redeemable common stock | $1,062,758 | $0 |
Share Repurchase Plan [Member] | ||
Class of Stock [Line Items] | ||
Number of company assets sold that constitute a return of capital as a result of such sale. | 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 | |
Shares redeemed (in shares) | 2,239 | |
Total redemption value | 33,551 | |
Stock requested for redemption (in shares) | 4,660 | |
Stock requested for redemption, amount | 69,900 | |
Shares of outstanding and unfulfilled redemption requests (in shares) | 4,660 | |
Notice period for amendment, suspension, or termination of share repurchase plan. | 30 days | |
Share Repurchase Plan [Member] | Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Number of shares that can be repurchased under Company's share repurchase plan after first anniversary of date of purchase of shares (in shares) | 0 | |
Share repurchase plan, maximum period of time allowed from date of death or disability of shareholder to request holding period exemption for shares to be repurchased | 2 years | |
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 | |
Stock Repurchase Plan, Stock Redeemed, Value | 33,551 | 0 |
Accounts Payable and Accrued Liabilities [Member] | Share Repurchase Plan [Member] | ||
Class of Stock [Line Items] | ||
Total redemption value | $69,900 |
Stockholders_Equity_Schedule_o1
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published (Details) (Share Repurchase Plan Pre-published Valuation [Member], Common Stock [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Share Repurchase Plan Pre-published Valuation [Member] | Common Stock [Member] | |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders_Equity_Schedule_o2
Stockholders' Equity - Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published (Details) (Share Repurchase Plan Post Published Valuation [Member], Common Stock [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Share Repurchase Plan Post Published Valuation [Member] | Common Stock [Member] | |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders_Equity_Schedule_o3
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to/Following Estimated Value Per Share of Common Stock is Published (Footnote) (Details) (Share Repurchase Plan [Member], Common Stock [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Share Repurchase Plan [Member] | Common Stock [Member] | |
Class of Stock [Line Items] | |
Holding period | 1 year |
Share repurchase plan, maximum period of time allowed to complete valuation of entity's common stock | 150 days |
Stockholders_Equity_Narrative_6
Stockholders' Equity - Narrative - Distributions Declared (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 04, 2014 | |
Class of Stock [Line Items] | |||
Common share, distribution rate per share per day, declared (in dollars per share) | $0.00 | ||
Distributions payable | $499,349 | $0 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common share, distribution rate per share per day, declared (in dollars per share) | $0.00 | ||
Common stock distribution rate percentage | 6.00% | ||
Share price (in dollars per share) | $15 | ||
Distributions declared | 2,709,299 | ||
Dividends, common stock, distribution reinvestment plan | 1,374,500 | ||
Dividends, common stock, distribution reinvestment plan (in shares) | 96,456 | ||
Dividend Paid [Member] | |||
Class of Stock [Line Items] | |||
Dividends, common stock, distribution reinvestment plan (in shares) | 40,120 | ||
Distributions payable | 1,108,253 | ||
Distributions paid to common stockholders through common stock issuances pursuant to distribution reinvestment plan | $571,713 |
Stockholders_Equity_Narrative_7
Stockholders' Equity - Narrative - Distributions Paid (Details) (USD $) | 3 Months Ended | 19 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Equity [Abstract] | |||
Payments of ordinary dividends, common stock | $1,113,641 | $0 | |
Stock issued during period, dividend reinvestment plan (in shares) | 76,934 | 125,610 | |
Proceeds from issuance of common stock, dividend reinvestment plan | 1,096,309 | 1,789,948 | |
Distributions paid, common stock, including distribution reinvestment plan | $2,209,950 | $0 |
Related_Party_Arrangements_Sch
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) (Advisor [Member], USD $) | 19 Months Ended | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Organization Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | $42,882 | |||
Other Offering Costs Reimbursement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 11,221,098 | 2,000,349 | 1,523,489 | |
Advisor and its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 16,208,626 | 865,649 | ||
Payable at end of period | 1,419,903 | 1,419,903 | 1,499,869 | |
Advisor and its Affiliates [Member] | Construction Management Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 87,313 | 0 | ||
Payable at end of period | 12,803 | 12,803 | 6,595 | |
Advisor and its Affiliates [Member] | Other Offering Costs Reimbursement [Member] | Additional Paid-In Capital [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 1,257,030 | 437,770 | ||
Payable at end of period | 649,550 | 649,550 | 0 | |
Advisor and its Affiliates [Member] | Selling Commissions [Member] | Additional Paid-In Capital [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 6,729,532 | 196,302 | ||
Payable at end of period | 0 | 0 | 0 | |
Advisor and its Affiliates [Member] | Dealer Manager Fees [Member] | Additional Paid-In Capital [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 3,043,244 | 55,673 | ||
Payable at end of period | 0 | 0 | 0 | |
Advisor and its Affiliates [Member] | Fees to Affiliates [Member] | Investment Management Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 810,046 | 0 | ||
Payable at end of period | 42,523 | 42,523 | 147,946 | |
Advisor and its Affiliates [Member] | Fees to Affiliates [Member] | Acquisition Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 1,609,063 | 0 | ||
Payable at end of period | 185,587 | 185,587 | 581,418 | |
Advisor and its Affiliates [Member] | Fees to Affiliates [Member] | Loan Coordination Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 756,805 | 0 | ||
Payable at end of period | 0 | 0 | 280,000 | |
Advisor and its Affiliates [Member] | Fees to Affiliates [Member] | Property Management, Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 223,849 | 0 | ||
Payable at end of period | 85,729 | 85,729 | 65,882 | |
Advisor and its Affiliates [Member] | Fees to Affiliates [Member] | Property Management, Other Fees [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 64,270 | 0 | ||
Payable at end of period | 9,159 | 9,159 | 6,799 | |
Advisor and its Affiliates [Member] | Acquisition Costs [Member] | Acquisition Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 667,265 | 3,409 | ||
Payable at end of period | 0 | 0 | 22,157 | |
Advisor and its Affiliates [Member] | Operating, Maintenance and Management [Member] | Property Management, Reimbursement of Onsite Personnel [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 701,042 | 0 | ||
Payable at end of period | 139,726 | 139,726 | 66,268 | |
Advisor and its Affiliates [Member] | General and Administrative Expense [Member] | Organization Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 0 | 42,882 | ||
Payable at end of period | 0 | 0 | 0 | |
Advisor and its Affiliates [Member] | General and Administrative Expense [Member] | Other Operating Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 259,167 | 129,613 | ||
Payable at end of period | $294,826 | $294,826 | $322,804 |
Related_Party_Arrangements_Nar
Related Party Arrangements - Narrative - Organization and Offering Costs (Details) (USD $) | 3 Months Ended | 19 Months Ended | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Advisor [Member] | Organization and Offering Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Organization and offering costs threshold, percentage of gross proceeds of public offering | 15.00% | |||
Advisor [Member] | Organizational Costs Reimbursements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | $42,882 | |||
Advisor [Member] | Other Offering Costs Reimbursement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 2,000,349 | 11,221,098 | 1,523,489 | |
Deferred offering costs | 4,296,211 | 4,296,211 | ||
Advisor [Member] | Advisor and its Affiliates [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount payable | 1,419,903 | 1,419,903 | 1,499,869 | |
Incurred in the period | 16,208,626 | 865,649 | ||
Advisor [Member] | Advisor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Organization and offering costs threshold, percentage of gross proceeds of public offering | 15.00% | |||
Advisor [Member] | Advisor [Member] | Organization and Offering Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Underwriting compensation maximum threshold, percentage of gross proceeds of public offering | 10.00% | |||
Incurred in the period | 29,530,172 | |||
Advisor [Member] | Advisor [Member] | Organizational Costs Reimbursements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 42,882 | |||
Advisor [Member] | Advisor [Member] | Other Offering Costs Reimbursement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred in the period | 6,924,887 | |||
Advisor [Member] | Additional Paid-In Capital [Member] | Advisor and its Affiliates [Member] | Other Offering Costs Reimbursement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount payable | 649,550 | 649,550 | 0 | |
Incurred in the period | 1,257,030 | 437,770 | ||
Crossroads Capital Advisors [Member] | Advisor [Member] | Organization and Offering Costs [Member] | ||||
Related Party Transaction [Line Items] | ||||
Amount payable | 1,350,010 | $1,350,010 | $1,000,008 |
Related_Party_Arrangements_Sch1
Related Party Arrangements - Schedule of Reimbursable Organization and Offering Costs (Details) (Advisor [Member], USD $) | 3 Months Ended | 19 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Organization and Offering Costs [Member] | |||
Related Party Transaction [Line Items] | |||
O&O limitation | 15.00% | ||
Offering Cost Reimbursements Accrual [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | $2,000,349 | $1,523,489 | $11,221,098 |
Organizational Costs Reimbursements [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | 42,882 | ||
Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Gross offering proceeds | 236,403,123 | ||
O&O limitation | 15.00% | ||
Percentage of Gross Offering Proceeds | 100.00% | ||
Advisor [Member] | Organization and Offering Costs [Member] | |||
Related Party Transaction [Line Items] | |||
Total O&O costs available to be paid/reimbursed | 35,460,468 | ||
Incurred in the period | 29,530,172 | ||
Percentage of Gross Offering Proceeds | 12.49% | ||
Advisor [Member] | Sales Commissions Paid [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | 15,544,589 | ||
Percentage of Gross Offering Proceeds | 6.58% | ||
Advisor [Member] | Broker Dealer Fees Paid [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | 7,017,814 | ||
Percentage of Gross Offering Proceeds | 2.97% | ||
Advisor [Member] | Offering Cost Reimbursements Accrual [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | 6,924,887 | ||
Percentage of Gross Offering Proceeds | 2.93% | ||
Advisor [Member] | Organizational Costs Reimbursements [Member] | |||
Related Party Transaction [Line Items] | |||
Incurred in the period | $42,882 | ||
Percentage of Gross Offering Proceeds | 0.02% |
Related_Party_Arrangements_Nar1
Related Party Arrangements - Narrative - Investment Management Fee (Details) (Advisor [Member], Investment Management Fee [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
One-twelfth of 0.50% [Member] | |
Related Party Transaction [Line Items] | |
Monthly investment management fee, percentage | 0.04% |
One-twelfth of 1.0% [Member] | |
Related Party Transaction [Line Items] | |
Monthly investment management fee, percentage | 0.08% |
Advisor [Member] | One-twelfth of 1.0% [Member] | |
Related Party Transaction [Line Items] | |
Aggregate cost of investments in properties and real estate related assets, threshold | 300,000,000 |
Related_Party_Arrangements_Nar2
Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Details) (Advisor [Member], Advisor [Member], Acquisition Fees and Expenses [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Advisor [Member] | Advisor [Member] | Acquisition Fees and Expenses [Member] | |
Related Party Transaction [Line Items] | |
Acquisition fee, percent | 1.00% |
Acquisition fee payable without board approval as a percent of total contract price | 4.50% |
Related_Party_Arrangements_Nar3
Related Party Arrangements - Narrative - Loan Coordination Fee (Details) (Advisor [Member], Advisor [Member], Loan Coordination Fee [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Advisor [Member] | Advisor [Member] | Loan Coordination Fee [Member] | |
Related Party Transaction [Line Items] | |
Loan coordination fee, acquisitions | 1.00% |
Loan coordination fee, other than acquisitions | 0.75% |
Related_Party_Arrangements_Nar4
Related Party Arrangements - Narrative - Property Management Fees and Expenses (Details) (Property Management Fees and Expenses [Member], Steadfast Management Company [Member], Property Manager [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percent fee | 2.50% |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Property management fee, percent fee | 3.00% |
Related_Party_Arrangements_Nar5
Related Party Arrangements - Narrative - Construction Management Fee (Details) (Pacific Coast Land & Construction, Inc. [Member], Affiliated Entity [Member], Construction Management Fee [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 8.00% |
Construction management agreement, notice of termination of contract, period | 30 days |
Minimum [Member] | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 8.00% |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Construction management fee, percent | 12.00% |
Related_Party_Arrangements_Nar6
Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Details) (Advisor [Member], Advisor [Member], Other Operating Expense Reimbursement [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
quarter | |
Advisor [Member] | Advisor [Member] | Other Operating Expense Reimbursement [Member] | |
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 |
Related_Party_Arrangements_Nar7
Related Party Arrangements - Narrative - Disposition Fee (Details) (Advisor [Member], Advisor [Member], Disposition Fee [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Advisor [Member] | Advisor [Member] | Disposition Fee [Member] | |
Related Party Transaction [Line Items] | |
Disposition fee, maximum percent of brokerage commission paid threshold | 50.00% |
Property sale disposition fee, maximum percentage of total sale price | 1.00% |
Operating expenses limitation as a percentage of average invested assets | 2.00% |
Operating expenses limitation as a percentage of net income | 25.00% |
Disposition fees incurred | $0 |
Related_Party_Arrangements_Nar8
Related Party Arrangements - Narrative - Selling Commissions and Dealer Manager Fees (Details) (Steadfast Capital Markets Group, LLC [Member], Dealer Manager [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Sales Commissions [Member] | Primary Offering [Member] | |
Related Party Transaction [Line Items] | |
Sales commission, percentage of gross offering proceeds | 7.00% |
Dealer manager reallowance of sales commissions earned, percent | 100.00% |
Dealer Manager Fees [Member] | Primary Offering [Member] | |
Related Party Transaction [Line Items] | |
Dealer manager fees, percentage of gross offering proceeds | 3.00% |
Sales Commissions and Dealer Manager Fees [Member] | Distribution Reinvestment Plan [Member] | |
Related Party Transaction [Line Items] | |
Sales commissions or dealer manager fees paid | 0 |
Incentive_Award_Plan_and_Indep1
Incentive Award Plan and Independent Director Compensation - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 07, 2014 | Feb. 27, 2014 | |
installment | director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from issuance of common stock | $100,645,056 | $4,789,680 | |||
Amortization of stock-based compensation | 14,067 | 37,702 | |||
Operating expenses | 15,225,117 | 278,932 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 0 | 14,997 | |||
Common Stock [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from issuance of common stock | 2,000,000 | ||||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equal annual vesting installments | 4 | ||||
Number of directors | 3 | ||||
Amortization of stock-based compensation | 14,067 | 37,702 | |||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from issuance of common stock | 2,000,000 | ||||
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
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 | $60,750 | $55,750 | |||
Director [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of directors | 3 | ||||
Director [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares entitled to be received under plan (in shares) | 3,333 | ||||
Shares entitled to be received upon re-election to Board of Directors (in shares) | 1,666 | ||||
Vesting percent | 25.00% | ||||
Number of equal annual vesting installments | 3 | ||||
Director One [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 | |||
Director One [Member] | Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 | |||
Director Two [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 | |||
Director Two [Member] | Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 | |||
Director Three [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 | |||
Director Three [Member] | Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 1,666 | 3,333 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Narrative (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Unrealized loss | $664,110 | $0 | |
Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Derivative, number of instruments held | 10 | ||
Notional Amount | 272,611,100 | ||
Unrealized loss | 664,110 | ||
Interest rate derivative assets, at fair value | 576,454 | ||
Interest Expense [Member] | Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Unrealized loss | 664,110 | 0 | |
Deferred Financing Costs and Other Assets, Net [Member] | Interest Rate Cap [Member] | |||
Derivative [Line Items] | |||
Interest rate derivative assets, at fair value | $576,454 | $648,414 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) (Interest Rate Cap [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Notional Amount | 272,611,100 | |
Interest rate derivative assets, at fair value | 576,454 | |
Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 9,940,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 11,480 | 28,864 |
Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 19,530,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 25,685 | 62,838 |
Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 15,050,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 25,447 | 59,005 |
Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 16,450,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 27,815 | 64,494 |
The Residences on McGinnis Ferry [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 73,660,600 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 23,739 | 57,197 |
The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 34,300,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 81,219 | 175,313 |
The Oasis [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 28,000,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 119,432 | 200,703 |
Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 17,500,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 56,108 | 0 |
Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 35,700,000 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 126,114 | 0 |
Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 22,480,500 | |
Variable Rate | 0.18% | |
Interest rate derivative assets, at fair value | 79,415 | $0 |
May 31, 2015 [Member] | Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
May 31, 2016 [Member] | Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
May 31, 2017 [Member] | Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
June 1, 2018 [Member] | Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
June 30, 2015 [Member] | Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
June 30, 2016 [Member] | Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
June 30, 2017 [Member] | Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
July 1, 2018 [Member] | Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
August 31, 2015 [Member] | Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
August 31, 2015 [Member] | Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
August 31, 2016 [Member] | Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
August 31, 2016 [Member] | Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
August 31, 2017 [Member] | Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
August 31, 2017 [Member] | Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
September 1, 2018 [Member] | Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
September 1, 2018 [Member] | Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
October 31, 2015 [Member] | The Residences on McGinnis Ferry [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
November 1, 2018 [Member] | The Residences on McGinnis Ferry [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 5.44% | |
November 30, 2015 [Member] | The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
November 30, 2016 [Member] | The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
November 30, 2017 [Member] | The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
December 1, 2018 [Member] | The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
December 31, 2015 [Member] | The Oasis [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
December 31, 2016 [Member] | The Oasis [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
December 31, 2017 [Member] | The Oasis [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
January 1, 2019 [Member] | The Oasis [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
February 29, 2016 [Member] | Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
February 28, 2017 [Member] | Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
February 28, 2018 [Member] | Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
March 1, 2019 [Member] | Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
March 31, 2016 [Member] | Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
March 31, 2016 [Member] | Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.00% | |
March 31, 2017 [Member] | Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
March 31, 2017 [Member] | Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 2.50% | |
March 31, 2018 [Member] | Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
March 31, 2018 [Member] | Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.00% | |
April 1, 2019 [Member] | Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
April 1, 2019 [Member] | Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Cap Rate | 3.50% | |
LIBOR [Member] | Villages at Spring Hill Apartments [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Harrison Place Apartments [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Club at Summer Valley [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Terrace Cove Apartment Homes [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | The Residences on McGinnis Ferry [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | The 1800 at Barrett Lakes [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | The Oasis [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Columns on Wetherington [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Preston Hills at Mill Creek [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR | |
LIBOR [Member] | Randall Highlands Apartments [Member] | ||
Derivative [Line Items] | ||
Derivative, description of variable rate basis | One-Month LIBOR |
Pro_Forma_Information_unaudite2
Pro Forma Information (unaudited) - Narrative (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
property | |
Business Combinations [Abstract] | |
Number of properties acquired | 5 |
Contributed revenue | $645,412 |
Contributed net loss | 1,009,333 |
Contributed depreciation and amortization | $522,955 |
Pro_Forma_Information_unaudite3
Pro Forma Information (unaudited) - Schedule of Unaudited Pro Forma Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Combinations [Abstract] | ||
Revenues | $11,590,854 | $4,490,447 |
Net loss | ($6,183,900) | ($6,327,894) |
Loss per common share, basic and diluted (in dollars per share) | ($0.51) | ($0.52) |
Subsequent_Events_Narrative_St
Subsequent Events - Narrative - Status of Our Offering (Details) (USD $) | 3 Months Ended | 19 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | 8-May-15 | |
Subsequent Event [Line Items] | ||||
Initial public offering, gross proceeds | $100,645,056 | $4,789,680 | ||
Stock issued during period, dividend reinvestment plan (in shares) | 76,934 | 125,610 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | 1,096,309 | 1,789,948 | ||
IPO [Member] | Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Issuance of common stock (in shares) | 15,963,147 | 15,963,147 | ||
IPO [Member] | Common Stock [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Issuance of common stock (in shares) | 18,547,555 | |||
Initial public offering, gross proceeds | 276,762,011 | |||
Stock issued during period, dividend reinvestment plan (in shares) | 212,156 | |||
Proceeds from issuance of common stock, dividend reinvestment plan | $3,023,229 |
Subsequent_Events_Narrative_Di
Subsequent Events - Narrative - Distributions Paid (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | 1-May-15 | Apr. 01, 2015 | |
Subsequent Event [Line Items] | ||||
Distributions paid, common stock, including distribution reinvestment plan | $2,209,950 | $0 | ||
Payments of ordinary dividends, common stock | 1,113,641 | 0 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Distributions paid, common stock, including distribution reinvestment plan | 1,255,360 | 1,108,253 | ||
Dividend Paid [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments of ordinary dividends, common stock | 593,892 | 536,540 | ||
Distributions paid to common stockholders through common stock issuances pursuant to distribution reinvestment plan | $661,468 | $571,713 |
Subsequent_Events_Narrative_Ac
Subsequent Events - Narrative - Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Apr. 27, 2015 | |
apartment | ||
unit | ||
Subsequent Event [Line Items] | ||
Purchase price | $431,379,250 | |
Units | 1,299 | |
Preston Hills [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchase price | $9,650,000 | |
Residential buildings | 13 | |
Units | 105 | |
Average square feet per apartment | 921 |