Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | Steadfast Apartment REIT, Inc. | |
Entity Central Index Key | 0001585219 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,505,445 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Real Estate: | ||
Land | $ 161,613,722 | $ 161,613,722 |
Building and improvements | 1,401,105,029 | 1,381,769,664 |
Total real estate held for investment, cost | 1,562,718,751 | 1,543,383,386 |
Less accumulated depreciation and amortization | (268,924,964) | (214,231,416) |
Total real estate held for investment, net | 1,293,793,787 | 1,329,151,970 |
Real estate held for development | 4,305,247 | 0 |
Real estate held for sale, net | 0 | 27,487,772 |
Total real estate, net | 1,298,099,034 | 1,356,639,742 |
Cash and cash equivalents | 74,816,801 | 58,880,007 |
Restricted cash | 47,261,216 | 13,858,768 |
Rents and other receivables | 1,849,239 | 1,836,406 |
Other assets | 4,174,228 | 2,923,725 |
Total assets | 1,426,200,518 | 1,434,138,648 |
Liabilities: | ||
Accounts payable and accrued liabilities | 32,023,162 | 31,389,375 |
Notes Payable, net: | ||
Mortgage notes payable, net | 551,806,409 | 502,143,306 |
Credit facilities, net | 548,358,514 | 548,012,437 |
Total notes payable, net | 1,100,164,923 | 1,050,155,743 |
Distributions payable | 3,873,086 | 3,953,499 |
Due to affiliates | 2,677,408 | 1,711,168 |
Liabilities related to real estate held for sale | 0 | 940,903 |
Total liabilities | 1,138,738,579 | 1,088,150,688 |
Commitments and contingencies (Note 9) | ||
Redeemable common stock | 1,182,360 | 0 |
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 | 694,224,617 | 684,140,823 |
Cumulative distributions and net losses | (408,468,464) | (338,670,111) |
Total stockholders’ equity | 286,279,579 | 345,987,960 |
Total liabilities and stockholders’ equity | 1,426,200,518 | 1,434,138,648 |
Common Stock [Member] | ||
Notes Payable, net: | ||
Distributions payable | 3,873,086 | 3,953,499 |
Stockholders’ Equity: | ||
Common/Convertible stock, $0.01 par value per share | 523,416 | 517,238 |
Convertible Stock [Member] | ||
Stockholders’ Equity: | ||
Common/Convertible stock, $0.01 par value per share | $ 10 | $ 10 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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] | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 999,999,000 | 999,999,000 |
Stock, shares issued (in shares) | 52,341,643 | 52,142,845 |
Stock, shares outstanding (in shares) | 52,341,643 | 52,142,845 |
Convertible Stock [Member] | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, shares issued (in shares) | 1,000 | 1,000 |
Stock, shares outstanding (in shares) | 1,000 | 1,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Rental income | $ 42,791,623 | $ 125,428,614 | ||
Rental income | $ 43,962,752 | $ 129,166,798 | ||
Other income | 536,512 | 363,756 | 2,055,689 | 1,568,957 |
Total revenues | 44,499,264 | 43,155,379 | 131,222,487 | 126,997,571 |
Expenses: | ||||
Operating, maintenance and management | 11,788,068 | 11,413,882 | 32,325,417 | 31,828,565 |
Real estate taxes and insurance | 6,086,781 | 5,581,414 | 19,111,364 | 17,229,297 |
Fees to affiliates | 6,917,303 | 9,626,258 | 19,248,909 | 21,249,639 |
Depreciation and amortization | 18,632,477 | 17,855,195 | 55,430,404 | 52,920,337 |
Interest expense | 12,562,978 | 12,273,389 | 36,962,055 | 31,619,697 |
Loss on debt extinguishment | 0 | 4,975,497 | 41,609 | 4,975,497 |
General and administrative expenses | 2,230,541 | 2,101,075 | 6,173,895 | 4,810,141 |
Total expenses | 58,218,148 | 63,826,710 | 169,293,653 | 164,633,173 |
Loss before other income | (13,718,884) | (20,671,331) | (38,071,166) | (37,635,602) |
Other income: | ||||
Gain on sale of real estate, net | 3,329,078 | 0 | 3,329,078 | 0 |
Total other income | 3,329,078 | 0 | 3,329,078 | 0 |
Net loss | $ (10,389,806) | $ (20,671,331) | $ (34,742,088) | $ (37,635,602) |
Loss per common share - basic and diluted (in dollars per share) | $ (0.20) | $ (0.40) | $ (0.67) | $ (0.74) |
Weighted average number of common shares outstanding - basic and diluted (in shares) | 52,279,878 | 51,422,384 | 52,096,357 | 51,198,919 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock [Member] | Stock [Member]Common Stock [Member] | Stock [Member]Convertible Stock [Member] | Additional Paid-in Capital [Member] | Cumulative Distributions & Net Losses [Member] |
BALANCE, beginning of period (in shares) at Dec. 31, 2017 | 50,842,640 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2017 | $ 390,305,183 | $ 508,426 | $ 10 | $ 633,186,743 | $ (243,389,996) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 1,147,631 | |||||
Issuance of common stock | 17,175,364 | $ 11,477 | 17,163,887 | |||
Commissions on sales of common stock and related dealer manager fees to affiliates | 32,414 | 32,414 | ||||
Transfers from redeemable common stock | 37,028,102 | 37,028,102 | ||||
Repurchase of common stock (in shares) | (489,005) | |||||
Repurchase of common stock | (6,886,216) | $ (4,890) | (6,881,326) | |||
Distributions declared ($0.673 per common stock) | $ (34,462,270) | $ (34,462,269) | (34,462,270) | |||
Distributions declared per common share (in dollars per share) | $ 0.673 | $ 0.673 | ||||
Amortization of stock-based compensation | $ 60,721 | 60,721 | ||||
Net loss | (37,635,602) | (37,635,602) | ||||
BALANCE, end of period (in shares) at Sep. 30, 2018 | 51,501,266 | 1,000 | ||||
BALANCE, end of period at Sep. 30, 2018 | 365,617,696 | $ 515,013 | $ 10 | 680,590,541 | (315,487,868) | |
BALANCE, beginning of period (in shares) at Jun. 30, 2018 | 51,262,810 | 1,000 | ||||
BALANCE, beginning of period at Jun. 30, 2018 | 394,214,716 | $ 512,628 | $ 10 | 676,854,459 | (283,152,381) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 380,849 | |||||
Issuance of common stock | 5,705,424 | $ 3,809 | 5,701,615 | |||
Repurchase of common stock (in shares) | (142,393) | |||||
Repurchase of common stock | (2,000,000) | $ (1,424) | (1,998,576) | |||
Distributions declared ($0.673 per common stock) | $ (11,664,156) | $ (11,664,156) | (11,664,156) | |||
Distributions declared per common share (in dollars per share) | $ 0.227 | $ 0.227 | ||||
Amortization of stock-based compensation | $ 33,043 | 33,043 | ||||
Net loss | (20,671,331) | (20,671,331) | ||||
BALANCE, end of period (in shares) at Sep. 30, 2018 | 51,501,266 | 1,000 | ||||
BALANCE, end of period at Sep. 30, 2018 | 365,617,696 | $ 515,013 | $ 10 | 680,590,541 | (315,487,868) | |
BALANCE, beginning of period (in shares) at Dec. 31, 2018 | 51,723,801 | 1,000 | ||||
BALANCE, beginning of period at Dec. 31, 2018 | 345,987,960 | $ 517,238 | $ 10 | 684,140,823 | (338,670,111) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 1,028,077 | |||||
Issuance of common stock | 16,050,790 | $ 10,280 | 16,040,510 | |||
Repurchase of common stock (in shares) | (410,235) | |||||
Repurchase of common stock | (6,000,000) | $ (4,102) | (5,995,898) | |||
Distributions declared ($0.673 per common stock) | $ (35,056,265) | $ (35,056,265) | (35,056,265) | |||
Distributions declared per common share (in dollars per share) | $ 0.673 | $ 0.673 | ||||
Amortization of stock-based compensation | $ 39,182 | 39,182 | ||||
Net loss | (34,742,088) | (34,742,088) | ||||
BALANCE, end of period (in shares) at Sep. 30, 2019 | 52,341,643 | 1,000 | ||||
BALANCE, end of period at Sep. 30, 2019 | 286,279,579 | $ 523,416 | $ 10 | 694,224,617 | (408,468,464) | |
BALANCE, beginning of period (in shares) at Jun. 30, 2019 | 52,142,845 | 1,000 | ||||
BALANCE, beginning of period at Jun. 30, 2019 | 305,224,472 | $ 521,428 | $ 10 | 690,921,687 | (386,218,653) | |
Increase (decrease) in Stockholders' Equity | ||||||
Issuance of common stock (in shares) | 334,187 | |||||
Issuance of common stock | 5,293,528 | $ 3,342 | 5,290,186 | |||
Repurchase of common stock (in shares) | (135,389) | |||||
Repurchase of common stock | (2,000,000) | $ (1,354) | (1,998,646) | |||
Distributions declared ($0.673 per common stock) | $ (11,860,005) | $ (11,860,005) | (11,860,005) | |||
Distributions declared per common share (in dollars per share) | $ 0.227 | $ 0.227 | ||||
Amortization of stock-based compensation | $ 11,390 | 11,390 | ||||
Net loss | (10,389,806) | (10,389,806) | ||||
BALANCE, end of period (in shares) at Sep. 30, 2019 | 52,341,643 | 1,000 | ||||
BALANCE, end of period at Sep. 30, 2019 | $ 286,279,579 | $ 523,416 | $ 10 | $ 694,224,617 | $ (408,468,464) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Cash Flows from Operating Activities: | ||
Net loss | $ (34,742,088) | $ (37,635,602) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 55,430,404 | 52,920,337 |
Loss on disposal of buildings and improvements | 150,978 | 211,742 |
Amortization of deferred financing costs | 750,751 | 762,658 |
Amortization of stock-based compensation | 39,182 | 60,721 |
Change in fair value of interest rate cap agreements | 223,867 | (641,013) |
Gain on sale of real estate | (3,329,078) | 0 |
Amortization of loan discount | 0 | 207,074 |
Loss on debt extinguishment | 41,609 | 4,975,497 |
Insurance claim recoveries | (706,654) | (331,716) |
Changes in operating assets and liabilities: | ||
Rents and other receivables | (87,831) | (136,231) |
Other assets | (799,448) | (351,980) |
Accounts payable and accrued liabilities | 1,014,193 | 5,900,772 |
Due to affiliates | 807,450 | (206,276) |
Net cash provided by operating activities | 18,793,335 | 25,735,983 |
Cash Flows from Investing Activities: | ||
Acquisition of real estate held for development | (2,158,815) | 0 |
Additions to real estate investments | (19,206,964) | (13,049,961) |
Additions to real estate held for development | (1,789,630) | 0 |
Escrow deposits for pending real estate acquisitions | (700,100) | 0 |
Capitalized acquisition costs related to mergers | (10,471) | 0 |
Purchase of interest rate cap agreements | (18,000) | (43,200) |
Net proceeds from sale of real estate investments | 29,944,301 | 0 |
Proceeds from settlement of interest rate cap agreements | 0 | 270,000 |
Proceeds from insurance claims | 781,654 | 331,716 |
Net cash provided by (used in) investing activities | 6,841,975 | (12,491,445) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of mortgage notes payable | 126,121,000 | 160,850,000 |
Principal payments on mortgage notes payable | (76,105,725) | (611,223,676) |
Borrowings from credit facilities | 0 | 562,669,000 |
Principal payments on credit facilities | 0 | (56,000,000) |
Payments of commissions on sale of common stock | (172,278) | (173,111) |
Payment of loan financing deposits | (254,722) | 0 |
Payment of deferred financing costs | (798,455) | (4,538,261) |
Payment of debt extinguishment costs | 0 | (1,019,491) |
Distributions to common stockholders | (19,085,888) | (17,364,466) |
Repurchase of common stock | (6,000,000) | (6,886,216) |
Net cash provided by financing activities | 23,703,932 | 26,313,779 |
Net increase in cash, cash equivalents and restricted cash | 49,339,242 | 39,558,317 |
Cash, cash equivalents and restricted cash, beginning of the period | 72,738,775 | 38,667,705 |
Cash, cash equivalents and restricted cash, end of the period | 122,078,017 | 78,226,022 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid, net of amounts capitalized of $49,068 and $0 for the nine months ended September 30, 2019 and 2018, respectively | 36,328,593 | 30,062,317 |
Supplemental Disclosures of Noncash Flow Transactions: | ||
Distributions payable | 3,873,086 | 3,809,169 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | 16,050,790 | 17,175,364 |
Redeemable common stock | 1,182,360 | 0 |
Redemptions payable | 817,640 | 2,000,000 |
Accounts payable and accrued liabilities from additions to real estate investments | 729,005 | 189,223 |
Due to affiliates from additions to real estate investments | 62,159 | 50,519 |
Accounts payable & accrued liabilities from capitalized acquisition costs related to the proposed mergers | 503,041 | 0 |
Accounts payable & accrued liabilities from additions to real estate held for development | 41,434 | 0 |
Due to affiliates for commissions on sale of common stock | 127,673 | 356,814 |
Restricted cash held as substitution deposit for MCFA from proceeds from sale of real estate investments | 17,514,055 | $ 0 |
Operating lease right-of-use asset,net | 3,462 | |
Operating lease liabilities, net | $ 4,989 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2019 | |
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 elected to qualify as a real estate investment trust (“REIT”) commencing with the taxable year ended December 31, 2014. On September 3, 2013, the Company was initially capitalized with the sale of 13,500 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $15.00 per share for an aggregate purchase price of $202,500 . Steadfast Apartment Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on August 22, 2013, invested $1,000 in the Company in exchange for 1,000 shares of non-participating, non-voting convertible stock (the “Convertible Stock”) as described in Note 6 (Stockholders’ Equity). The Company owns and operates a diverse portfolio of multifamily properties located in targeted markets throughout the United States. As of September 30, 2019 , the Company owned 33 multifamily properties comprising a total of 11,455 apartment homes and one parcel of land held for the development of apartment homes. The Company may acquire additional multifamily properties or pursue multifamily developments in the future. For more information on the Company’s real estate portfolio, see Note 3 (Real Estate). Public Offering On December 30, 2013, the Company commenced its initial public offering to offer a maximum of 66,666,667 shares of common stock for sale to the public at an initial price of $15.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also registered up to 7,017,544 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $14.25 per share. The Company terminated its Public Offering on March 24, 2016, but continues to offer shares of common stock pursuant to the DRP. As of the termination of the Public Offering, the Company had sold 48,625,651 shares of common stock in the Public Offering for gross proceeds of $724,849,631 , including 1,011,561 shares of common stock issued pursuant to the DRP for gross offering proceeds of $14,414,752 . As of September 30, 2019 , the Company had issued 53,949,748 shares of common stock for gross offering proceeds of $804,390,765 , including 6,335,721 shares of common stock issued pursuant to the DRP for gross offering proceeds of $93,955,886 . On March 12, 2019 , the Company’s board of directors approved an estimated value per share of the Company’s common stock of $15.84 as of December 31, 2018 . In connection with the determination of an estimated value per share, the Company’s board of directors approved a price per share for the DRP of $15.84 , effective April 1, 2019 . The Company’s board of directors may again, from time to time, in its sole discretion, change the price at which the Company offers shares pursuant to the DRP to reflect changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. The business of the Company is externally managed by the Advisor, pursuant to the Advisory Agreement dated December 13, 2013, by and among the Company, Steadfast Apartment REIT Operating Partnership, L.P. (the “Operating Partnership”) and the Advisor (as amended, the “Advisory Agreement”). The Advisory Agreement is subject to annual renewal by the Company’s board of directors. The current term of the Advisory Agreement expires on December 13, 2020. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties, 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 certain advisory services to the Company on behalf of the Advisor. Stira Capital Markets Group, LLC (formerly known as Steadfast Capital Markets Group, LLC) (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager for the Public Offering. The Dealer Manager was responsible for marketing the Company’s shares of common stock offered pursuant to the Public Offering. The Advisor, along with the Dealer Manager, provides marketing, investor relations and other administrative services on the Company’s behalf. Substantially all of the Company’s business is conducted through the Operating Partnership. The Company is the sole general partner of the Operating Partnership. The Company and Steadfast Apartment REIT Limited Partner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into the Limited Partnership Agreement of Steadfast Apartment REIT Operating Partnership L.P. on September 3, 2013 (as amended, the “Partnership Agreement”). Steadfast Apartment REIT Limited Partner, LLC made a $1,000 capital contribution to the Operating Partnership as the initial limited partner. As the Company accepted subscriptions for shares of its common stock, the Company transferred substantially all of the net offering proceeds from its Public Offering to the Operating Partnership as a contribution in exchange for partnership interests and the Company’s percentage ownership in the Operating Partnership increased proportionately. The Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the Operating Partnership being taxed as a corporation. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership pays all of the Company’s administrative costs and expenses, and such expenses are treated as expenses of the Operating Partnership. Pending Mergers with Steadfast Income REIT, Inc. and Steadfast Apartment REIT III, Inc. On August 5, 2019, the Company entered into the Merger Agreements (as defined herein) to acquire each of Steadfast Income REIT, Inc. (“SIR”) and Steadfast Apartment REIT III, Inc. (“STAR III”), which are public non-traded REITs sponsored by the Sponsor. As described in greater detail below, both pending mergers are stock-for-stock transactions whereby each of SIR and STAR III will be merged with and into a wholly-owned subsidiary of the Company. The consummation of the Company’s merger with SIR is not contingent upon the completion of the Company’s merger with STAR III, and the consummation of the Company’s merger with STAR III is not contingent upon the completion of the Company’s merger with SIR. Proposed SIR Merger On August 5, 2019, the Company, SIR, the Operating Partnership, Steadfast Income REIT Operating Partnership, L.P., the operating partnership of SIR, and SI Subsidiary, LLC, a wholly-owned subsidiary of the Company (the “SIR Merger Sub”) entered into an Agreement and Plan of Merger (the “SIR Merger Agreement”). Subject to the terms and conditions of the SIR Merger Agreement, SIR will merge with and into SIR Merger Sub (the “SIR Merger”), with SIR Merger Sub surviving the SIR Merger, such that following the SIR Merger, the surviving entity will continue as a wholly-owned subsidiary of the Company. In accordance with the applicable provisions of the Maryland General Corporation Law (“MGCL”) the separate existence of SIR shall cease. At the effective time of the SIR Merger and subject to the terms and conditions of the SIR Merger Agreement, each issued and outstanding share of SIR’s common stock (or a fraction thereof), $0.01 par value per share (the “SIR Common Stock”), will be converted into the right to receive 0.5934 shares of the Company’s common stock. The obligations of each party to consummate the SIR Merger are subject to a number of conditions, including receipt of the approval of the SIR Merger and of an amendment to SIR’s charter to delete certain provisions regarding roll-up transactions by the holders of a majority of the outstanding shares of SIR Common Stock. Proposed STAR III Merger On August 5, 2019, the Company, STAR III, the Operating Partnership, Steadfast Apartment REIT III Operating Partnership, L.P., the operating partnership of STAR III, and SIII Subsidiary, LLC, a wholly-owned subsidiary of the Company, (the “STAR III Merger Sub,”) entered into an Agreement and Plan of Merger (the “STAR III Merger Agreement” and together with the SIR Merger Agreement, the “Merger Agreements”). Subject to the terms and conditions of the STAR III Merger Agreement, STAR III will merge with and into the STAR III Merger Sub (the “STAR III Merger”), with STAR III Merger Sub surviving the STAR III Merger, such that following the STAR III Merger, the surviving entity will continue as a wholly-owned subsidiary of the Company. In accordance with the applicable provisions of the MGCL the separate existence of STAR III shall cease. At the effective time of the STAR III Merger and subject to the terms and conditions of the STAR III Merger Agreement, each issued and outstanding share of STAR III’s common stock (or a fraction thereof), $0.01 par value per share (the “STAR III Common Stock”), will be converted into the right to receive 1.430 shares of the Company’s common stock. The obligations of each party to consummate the STAR III Merger are subject to a number of conditions, including receipt of the approval of the STAR III Merger and of an amendment to STAR III’s charter to delete certain provisions regarding roll-up transactions by the holders of a majority of the outstanding shares of STAR III Common Stock. Combined Company The combined company after the STAR III Merger and/or the SIR Merger will retain the name “Steadfast Apartment REIT, Inc.” The mergers are each intended to qualify as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2018 , other than Accounting Standards Update (“ASU”) 2016-02 and the Securities and Exchange Commission’s (“SEC”) Disclosure Update and Simplification rule (Release 33-10532), as further described below. 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, 2018 , included in the Company’s Annual Report on Form 10-K filed with the SEC on March 14, 2019. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and nine months ended September 30, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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, 2018 . 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 - The Company has entered into certain 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 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 tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: September 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 1,902 $ — December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of September 30, 2019 and December 31, 2018 , the fair value of the notes payable was $1,129,952,413 and $1,042,358,884 , respectively, compared to the carrying value of $1,100,164,923 and $1,050,155,743 , respectively. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants and cash is placed with a qualified intermediary for reinvestment under Section 1031 of the Internal Revenue Code. As of September 30, 2019, the Company had a restricted cash balance of $47,261,216 , which includes $19,714,500 in allocated loan amounts held by the lender of the Company’s master credit facility and $12,382,678 of cash proceeds from the sale of one property that are being held by qualified intermediaries as of September 30, 2019. As of December 31, 2018, the Company had a restricted cash balance of $13,858,768 , which consisted primarily of real estate tax impounds. In connection with the property sale, the Company was required to deposit $19,714,500 , as substitution for the loan amount allocated in the Company’s master credit facility to the sold property, $17,514,055 of which was funded from proceeds from the sale of the property. For more information on the Company’s master credit facility, see Note 5 (Debt). The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018: September 30, 2019 2018 Cash and cash equivalents $ 74,816,801 $ 62,267,700 Restricted cash 47,261,216 15,958,322 Total cash, cash and cash equivalents and restricted cash $ 122,078,017 $ 78,226,022 Distribution Policy The Company elected to be taxed, and currently qualifies, as a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the three and nine months ended September 30, 2019 , were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2019 through September 30, 2019 . Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and nine months ended September 30, 2019 , the Company declared distributions totaling $0.227 and $0.673 per share of common stock, respectively. During the three and nine months ended September 30, 2018 , the Company declared distributions totaling $0.227 and $0.673 per share of common stock, respectively. Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, tenants and products and services, its assets have been aggregated into one reportable segment. Reclassifications Certain amounts in the Company’s prior period consolidated financial statements were reclassified to conform to the current presentation. These reclassifications did not change the results of operations of those prior periods. On January 1, 2019, the Company adopted ASU 2016-02, as further described below. As a result, all income earned pursuant to tenant leases is reflected as one line item, “Rental Income,” in the consolidated statements of operations. To facilitate comparability, the Company has reclassified the prior period’s lease and non-lease income consistently with the current periods presented. The table below provides a reconciliation of the prior period presentation of the income statement line items that were reclassified in our consolidated statements of operations to conform to the current period presentation, pursuant to the adoption of the new lease accounting standard and election of the single component practical expedient: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Rental income (presentation prior to January 1, 2019) $ 38,226,188 $ 112,776,421 Tenant reimbursements (1) (presentation prior to January 1, 2019) 4,565,435 12,652,193 Rental income (presentation effective January 1, 2019) $ 42,791,623 $ 125,428,614 _________________ (1) Tenant reimbursements include reimbursements for recoverable costs. Recent Accounting Pronouncements In February 2016, the FASB established ASC Topic 842, Leases (“ASC 842”), by issuing ASU 2016-02, which requires lessees to recognize right-of-use assets and lease liabilities for operating leases on the balance sheet and disclose key information about leasing arrangements. ASC 842 also makes targeted changes to lessor accounting. ASC 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”), ASU 2018-10, Codification Improvements to Topic 842 (“ASU 2018-10”), ASU 2018-11, Targeted Improvements (“ASU 2018-11”) and ASU 2018-20, Leases (Topic 842), Narrow-scope Improvements for Lessors (“ASU 2018-20”). ASC 842 requires a modified retrospective transition approach that was effective in the first quarter of 2019, subject to early adoption. The Company elected an optional transition method that allows entities to initially apply ASC 842 at the adoption date (January 1, 2019) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company evaluated the impact of ASC 842 on its leases both as it relates to the Company acting as a lessee and as a lessor. Based on its evaluation, as it relates to the former, the Company elected to apply each of the practical expedients described in ASC 842-10-65-1(f) that allowed the Company, among other things, to not reassess lease classification conclusions or initial direct cost accounting as of December 31, 2018, therefore these leases continue to be accounted for as operating leases. The Company also elected the practical expedient described in ASC 842-20-25-2 not to apply the recognition requirements in ASC 842 to short-term leases and instead, to recognize lease payments in the consolidated statement of operations on a straight-line basis over the lease term. The Company did not experience a material impact on the recognition of leases in the consolidated financial statements because the quantity of leased equipment by the Company is limited and immaterial to the consolidated financial statements. Upon adoption, the Company recognized an initial operating lease right-of-use asset, net, of $7,656 and an operating lease liability, net, of $7,720 . As it relates to the Company as lessor, the Company did not experience a material impact on the recognition of leases in the consolidated financial statements because under ASC 842, lessors continue to account for leases using an approach that is substantially equivalent to historical guidance for sales-type leases, direct financing leases, and operating leases. The Company elected a practical expedient which allows lessors to not separate non-lease components from the lease component when the timing and pattern of transfer for the lease components and non-lease components are the same and if the lease component is classified as an operating lease. As a result, on January 1, 2019, the Company began presenting all rentals and reimbursements from tenants as a single line item rental income within the consolidated statements of operations. As of January 1, 2019, the Company implemented changes to its business processes and controls related to accounting for and the presentation and disclosure of leases, including the reclassification of tenant reimbursements, previously disclosed as part of tenant reimbursements and other, to rental income, in the consolidated statements of operations. Under ASC 842, beginning on January 1, 2019, changes in the probability of collecting tenant rental income could result in direct adjustments of rental income and tenant receivables. The Company did not experience a material impact on its rental income and tenant receivables as of the adoption date. The Company’s rental income consists of fixed rental payments from tenants under operating leases and is recognized on a straight-line basis over the respective operating lease terms. The Company recognizes minimum rent, including rental abatements, concessions and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the non-cancelable term of the related lease. The Company’s rental income that relates to variable lease payments consists of tenant reimbursements and includes reimbursements for recoverable costs, which are recognized as revenue in the period during which the applicable expenses are incurred and the tenant’s obligation to reimburse the Company arises. The Company recognized $43,962,752 and $129,166,798 of rental income related to operating lease payments, of which $4,740,396 and $13,150,831 was for variable lease payments for the three and nine months ended September 30, 2019 , respectively. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”), which clarifies that operating lease receivables accounted for under ASC 842 Leases, are not in the scope of the new credit losses guidance. The effective date and transition requirements for this guidance are the same as for ASU 2016-13. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures and does not expect a material impact on its consolidated financial statements and related disclosures from its adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The issuance of ASU 2018-13 is part of a disclosure framework project. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. Achieving the objective of improving the effectiveness of the notes to financial statements includes: (1) the development of a framework that promotes consistent decisions by the FASB board about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. ASU 2018-13 removed certain disclosure requirements under Topic 820 such as the disclosure requirements of the valuation process for level 3 fair value measurements and modified and added certain of the disclosure requirements in Topic 820. ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements and related disclosures and believes that certain disclosures of interest rate cap agreements in its consolidated financial statements may be impacted by the adoption of ASU 2018-13. The SEC’s Disclosure Update and Simplification rule (Release 33-10532) amends the interim financial statement requirements to require a reconciliation of changes in stockholder’ equity in the notes or as a separate statement. This analysis should reconcile the beginning balance to the ending balance of each caption in stockholders’ equity for each period for which an income statement is required to be filed and comply with the remaining content requirements of Rule 3-04 of Regulation S-X. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods and comparable periods in Form 10-Q but only for the year-to-date periods in registration statements. The rule does not prescribe the format of the presentation as long as the appropriate periods are provided. Per a Compliance and Disclosure Interpretation (Q 105.09, Exchange Act Forms, 10-Q), “the amendments are effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendments and proximity of effectiveness to the filing date for most filers’ quarterly reports, the staff would not object if the filer’s first presentation of the changes in the shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments.” This allowed the Company to adopt the amendment for the Company’s first quarter 2019 filing. The Company first adopted this guidance in the three months ended March 31, 2019, by presenting a reconciliation of changes in stockholders’ equity for the current and prior period as a separate statement. |
Real Estate
Real Estate | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate | Real Estate As of September 30, 2019 , the Company owned 33 multifamily properties comprising a total of 11,455 apartment homes and one parcel of land held for the development of apartment homes. The total contract acquisition price of the Company’s real estate portfolio was $1,471,571,997 , including development costs. As of September 30, 2019 and December 31, 2018 , the Company’s portfolio was approximately 94.4% and 93.9% occupied and the average monthly rent was $1,190 and $1,163 , respectively. As of September 30, 2019 and December 31, 2018 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: September 30, 2019 Assets Land Building and Improvements (1) Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 161,613,722 $ 1,401,105,029 $ 1,562,718,751 $ 4,305,247 $ — Less: Accumulated depreciation and amortization — (268,924,964 ) (268,924,964 ) — — Net investments in real estate and related lease intangibles $ 161,613,722 $ 1,132,180,065 $ 1,293,793,787 $ 4,305,247 $ — ____________________ (1) During the three and nine months ended September 30, 2019, the Company capitalized $513,512 of costs related to the pending mergers with SIR and STAR III, included in building and improvements in the accompanying consolidated balance sheets. December 31, 2018 Assets Land Building and Improvements Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 161,613,722 $ 1,381,769,664 $ 1,543,383,386 $ — $ 31,928,519 Less: Accumulated depreciation and amortization — (214,231,416 ) (214,231,416 ) — (4,440,747 ) Net investments in real estate and related lease intangibles $ 161,613,722 $ 1,167,538,248 $ 1,329,151,970 $ — $ 27,487,772 Total depreciation and amortization expense was $18,632,477 and $55,430,404 for the three and nine months ended September 30, 2019 , respectively, and $17,855,195 and $52,920,337 for the three and nine months ended September 30, 2018 , respectively. Depreciation of the Company’s buildings and improvements was $18,631,573 and $55,429,500 for the three and nine months ended September 30, 2019, respectively, and $17,855,195 and $52,920,337 for the three and nine months ended September 30, 2018, respectively. Real Estate Under Development During the nine months ended September 30, 2019 , the Company acquired the following land held for the development of apartment homes: Development Name Location Purchase Date Land Held for Development Construction in Progress Total Carrying Value Garrison Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 1,836,063 $ 4,305,246 Capitalized Acquisition Costs Related to the Pending Mergers with SIR and STAR III The SIR Merger and STAR III Merger are each accounted for as an asset acquisition. In accordance with the asset acquisition method of accounting, costs incurred to acquire the asset are capitalized as part of the acquisition price. Upon signing both the SIR Merger Agreement and the STAR III Merger Agreement on August 5, 2019, the SIR Merger and STAR III Merger were considered probable of occurring, at which point the Company began to capitalize the merger related acquisition costs to building and improvements in the accompanying consolidated balance sheets. Prior to such date, the merger related acquisition costs were expensed to general and administrative expenses in the accompanying consolidated statements of operations. Operating Leases As of September 30, 2019 , the Company’s real estate portfolio comprised 11,455 residential apartment homes and was 96.4% leased by a diverse group of residents. The residential lease terms consist of lease durations equal to twelve months or less. Some residential leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $4,329,563 and $4,130,860 as of September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 and 2018 , no tenant represented over 10% of the Company’s annualized base rent. 2019 Dispositions Randall Highlands Apartments On March 31, 2015, the Company, through an indirect wholly-owned subsidiary, acquired Randall Highlands Apartments, a multifamily property located in North Aurora, Illinois, containing 146 apartment homes. The purchase price of Randall Highlands Apartments was $32,115,000 , exclusive of closing costs. On September 26, 2019, the Company sold Randall Highlands Apartments for $31,000,000 , resulting in a gain of $3,329,078 , which includes reductions to the net book value of the property due to historical depreciation and amortization expense. The purchaser of Randall Highlands Apartments was not affiliated with the Company or the Advisor. The results of operations for the three and nine months ended September 30, 2019 and 2018 , through the date of sale for Randall Highlands Apartments, were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Rental income $ 789,589 $ 815,168 $ 2,366,420 $ 2,314,405 Other income 1,041 1,072 4,754 8,635 Total revenues 790,630 816,240 2,371,174 2,323,040 Expenses: Operating, maintenance and management 199,831 177,373 529,200 508,808 Real estate taxes and insurance 169,267 209,923 571,248 577,792 Fees to affiliates 36,135 33,012 103,855 88,769 Depreciation and amortization 96,270 303,428 709,579 904,845 Interest expense — 75,800 — 484,049 Loss on debt extinguishment — 184,527 — 184,527 General and administrative expenses 1,656 2,602 9,407 7,524 Total expenses $ 503,159 $ 986,665 $ 1,923,289 $ 2,756,314 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2019 and December 31, 2018 , other assets consisted of: September 30, 2019 December 31, 2018 Prepaid expenses $ 1,148,875 $ 1,690,959 Interest rate cap agreements (Note 10) 1,902 207,769 Escrow deposits for pending real estate acquisitions 500,100 100,000 Other deposits 2,502,717 924,997 Operating lease right-of-use assets, net 20,634 — Other assets $ 4,174,228 $ 2,923,725 Amortization of the Company’s operating lease right-of-use asset for the three and nine months ended September 30, 2019 , was $904 and $904 , respectively. Amortization of the Company’s operating lease right-of-use asset for the three and nine months ended September 30, 2018 , was $0 and $0 , respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Notes Payable The following is a summary of mortgage notes payable, net, secured by real property as of September 30, 2019 and December 31, 2018 . September 30, 2019 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 6 12/1/2024 - 9/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 3.99% $ 202,046,000 Fixed rate 10 7/1/2025 - 5/1/2054 3.36 % 4.60 % 4.11% 353,528,608 Mortgage notes payable, gross 16 4.07% 555,574,608 Deferred financing costs, net (2) (3,768,199 ) Mortgage notes payable, net $ 551,806,409 December 31, 2018 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.53% $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.45% 228,127,333 Mortgage notes payable, gross 15 4.49% 505,559,333 Deferred financing costs, net (2) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 ___________ (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to deferred financing costs as of September 30, 2019 and December 31, 2018 was $2,048,573 and $1,602,290 , respectively. Stoneridge Farms Financing On July 30, 2019, one of the Company’s indirect wholly-owned subsidiaries entered into a loan agreement with Berkeley Point Capital LLC, d/b/a Newmark Knight Frank (“Berkeley Point”), for the principal amount of $45,711,000 . The loan agreement provides for a term loan with a maturity date of August 1, 2029, unless the maturity date is accelerated pursuant to the loan agreement’s terms. The loan accrues interest at a fixed rate of 3.36% per annum. The entire outstanding principal balance and any accrued and unpaid interest on the loan is due on the maturity date. Interest only payments on the loan are payable monthly in arrears on specified dates as set forth in the loan agreement and interest and principal payments are due beginning September 1, 2024. Monthly payments are due and payable on the first day of each month, commencing September 1, 2019. The loan is secured by Stoneridge Farms, a 336 -unit property located in Smyrna, Tennessee. The Company paid $228,555 in loan origination fees to Berkeley Point in connection with the financing, and paid the Advisor a loan coordination fee of $342,833 . Refinancing Transactions On September 27, 2019, the Company, through its wholly-owned subsidiaries (each, a “Borrower” and collectively, the “Borrowers”), refinanced $75,386,000 of existing variable rate loans with its existing lender, PNC Bank, National Association (“PNC Bank”) with new fixed rate Freddie Mac loans in an aggregate principal amount of $80,410,000 . Each of the loans has a maturity date of October 1, 2029. Interest only payments are payable monthly through November 1, 2024, with interest and principal payments due monthly thereafter. The Borrowers paid $301,538 in the aggregate in loan origination fees to PNC Bank in connection with the refinancing, and the Advisor earned loan coordination fees of $200,000 . The refinancing transactions are treated as loan modifications in accordance with ASC 470 Debt, with lender direct expenses capitalized as deferred financing costs in mortgage notes payable, net in the accompanying consolidated balance sheets and third-party loan fees expensed in interest expense in the accompanying consolidated statements of operations. The following is a summary of the refinancing of mortgage notes payable secured by real property during the three months ended September 30, 2019: Property Closing Date Lender Interest Rate Loan Amount Delano at North Richland Hills 9/27/2019 PNC Bank 3.56% $ 32,159,000 Lakeside at Coppell 9/27/2019 PNC Bank 3.56% 48,251,000 $ 80,410,000 Master Credit Facility On July 31, 2018 , (the “Closing Date”), 16 indirect wholly-owned subsidiaries of the Company terminated the existing mortgage loans with their lenders for an aggregate principal amount of $479,318,649 and entered into a Master Credit Facility Agreement (“MCFA”) with Newmark Group Inc. (“Facility Lender”) for an aggregate principal amount of $551,669,000 . The MCFA provides for three tranches: (i) a fixed rate loan in the aggregate principal amount of $331,001,400 that accrues interest at 4.43% per annum; (ii) a fixed rate loan in the aggregate principal amount of $137,917,250 that accrues interest at 4.57% ; and (iii) a variable rate loan in the aggregate principal amount of $82,750,350 that accrues interest at the one-month London Interbank Offered Rate (“LIBOR”) plus 1.70% . The loans have a maturity date of August 1, 2028 , unless the maturity date is accelerated in accordance with the terms of the loan documents. Interest only payments are payable monthly through August 1, 2025, with interest and principal payments due monthly thereafter. The Company paid $1,930,842 in the aggregate in loan origination fees to the Facility Lender in connection with the refinancings, and paid the Advisor a loan coordination fee of $2,758,345 . CME Loans Additionally, on the Closing Date, five of the Company’s indirect wholly-owned subsidiaries terminated the existing mortgage loans with their lenders for an aggregate principal amount of $131,318,742 and entered into new loan agreements with PNC Bank for an aggregate principal amount of $160,850,000 . Each loan agreement provides for a term loan, a (“CME Loan” and, collectively, the “CME Loans”), with a maturity date of August 1, 2028 , unless the maturity date is accelerated in accordance with the loan terms. Each CME Loan accrues interest at a fixed rate of 4.43% per annum. The entire outstanding principal balance and any accrued and unpaid interest on each of the CME Loans are due on the maturity date. Interest only payments on the CME Loans are payable monthly in arrears on specified dates as set forth in each loan agreement and interest and principal payments are due beginning September 1, 2023 . Monthly payments are due and payable on the first day of each month, commencing September 1, 2018 . The Company paid $643,400 in the aggregate in loan origination fees to PNC Bank in connection with the refinancings, and paid the Advisor a loan coordination fee of $804,250 . Line of Credit On May 18, 2016 , the Company entered into a line of credit facility (the “Line of Credit”) with PNC Bank in an amount not to exceed $65,000,000 . The Line of Credit provided for advances (each, an “LOC Loan” and collectively, the “LOC Loans”) solely for the purpose of financing the costs in connection with acquisitions and development of real estate projects and for general corporate purposes (subject to certain debt service and loan to value requirements). The Line of Credit had a maturity date of May 17, 2019 , subject to extension (the “LOC Maturity Date”), as further described in the loan agreement (the “LOC Loan Agreement”) entered into by certain of the Company’s wholly-owned subsidiaries with PNC Bank in connection with the acquisition of the Landings of Brentwood Property (the “Mortgaged Property”). Advances made under the Line of Credit were secured by the Mortgaged Property, as evidenced by the LOC Loan Agreement, the Revolving Credit Loan Note (the “LOC Note”), the Deed of Trust and a Guaranty from the Company (the “LOC Guaranty,” together with the LOC Loan Agreement and the LOC Note, the “LOC Loan Documents”). The Company had the option to select the interest rate in respect of the outstanding unpaid principal amount of the LOC Loans from the following options (the “Interest Rate Options”): (1) the sum of the Base Rate (as defined in the LOC Loan Agreement) plus 0.60% , or (2) a rate per annum fixed for the applicable LIBOR Interest Period (as defined in the LOC Loan Agreement) equal to the sum of LIBOR plus 1.60% . The Company terminated the Line of Credit on January 9, 2019. As of September 30, 2019 and December 31, 2018 , the advances obtained and certain financing costs incurred under the MCFA and Line of Credit, which is included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of September 30, 2019 December 31, 2018 Principal balance on Line of Credit, gross (1) $ — $ — Principal balance on MCFA, gross 551,669,000 551,669,000 Deferred financing costs, net on MCFA (2) (3,310,486 ) (3,612,316 ) Deferred financing costs, net on Line of Credit (3) — (44,247 ) Credit facilities, net $ 548,358,514 $ 548,012,437 ___________ (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of September 30, 2019 and December 31, 2018 , was $730,471 and $428,641 , respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of September 30, 2019 and December 31, 2018 , was $0 and $280,753 , respectively. Maturity and Interest The following is a summary of the Company’s aggregate maturities as of September 30, 2019 : Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2019 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt (1) $ 1,107,243,608 $ 247,221 $ 1,142,443 $ 4,327,459 $ 4,412,236 $ 5,231,961 $ 1,091,882,288 ______________ (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. The Company’s notes payable contain customary financial and non-financial debt covenants. At September 30, 2019 , the Company was in compliance with all debt covenants. For the three and nine months ended September 30, 2019 , the Company incurred interest expense of $12,562,978 and $36,962,055 , respectively. Interest expense for the three and nine months ended September 30, 2019 , includes amortization of deferred financing costs of $256,547 and $750,751 , net unrealized losses from the change in fair value of interest rate cap agreements of $24,144 and $223,867 and credit facility commitment fees of $0 and $2,137 , net of capitalized interest of $49,068 and $49,068 , respectively. The capitalized interest is included in real estate held for development on the consolidated balance sheets. For the three and nine months ended September 30, 2018 , the Company incurred interest expense of $12,273,389 and $31,619,697 , respectively. Interest expense for the three and nine months ended September 30, 2018 , includes amortization of deferred financing costs of $269,417 and $762,658 , net unrealized gains from the change in fair value of interest rate cap agreements of $62,119 and $641,013 , credit facility commitment fees of $16,101 and $30,978 , loan fees associated with mortgage notes refinancing of $566,048 and $587,520 and loan discount amortization of $29,582 and $207,074 , respectively. Interest expense of $3,664,971 and $4,006,127 was payable as of September 30, 2019 and December 31, 2018 , respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [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 of preferred stock with a par value of $0.01 per share. Common Stock The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the Maryland General Corporation Law and to all rights of a stockholder pursuant to the Maryland General Corporation Law. The common stock has no preferences or preemptive, conversion or exchange rights. On September 3, 2013, the Company issued 13,500 shares of common stock to the Sponsor for $202,500 . From inception through March 24, 2016, the date of the termination of the Public Offering, the Company had issued 48,625,651 shares of common stock in its Public Offering for offering proceeds of $640,012,497 , including 1,011,561 shares of common stock issued pursuant to the DRP for total proceeds of $14,414,752 , net of offering costs of $84,837,134 . Following the termination of the Public Offering, the Company continues to offer shares pursuant to the DRP. As of September 30, 2019 , the Company had issued 53,949,748 shares of common stock for offering proceeds of $719,553,631 , including 6,335,721 shares of common stock issued pursuant to the DRP for total proceeds of $93,955,886 , net of offering costs of $84,837,134 . The offering costs primarily consisted of selling commissions and dealer manager fees paid in the Primary Offering. As further discussed in Note 8 (Incentive Award Plan and Independent Director Compensation), the shares of restricted common stock vest and become non-forfeitable 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 nine months ended September 30, 2019 and year ended December 31, 2018 , for the restricted stock issued to the Company’s independent directors were as follows: Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Nonvested shares at the beginning of the period 7,497 7,497 Granted shares — 4,998 Vested shares (3,749 ) (4,998 ) Nonvested shares at the end of the period 3,748 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the nine months ended September 30, 2019 and year ended December 31, 2018 was as follows: Grant Year Weighted Average Fair Value 2018 $15.18 2019 n/a Included in general and administrative expenses is $11,390 and $39,182 for the three and nine months ended September 30, 2019 , and $33,044 and $60,721 for the three and nine months ended September 30, 2018 , respectively, for compensation expense related to the issuance of restricted common stock. As of September 30, 2019 , the compensation expense related to the issuance of the restricted common stock not yet recognized was $51,076 . The weighted average remaining term of the restricted common stock was approximately 1.2 years as of September 30, 2019 . As of September 30, 2019 , no shares of restricted common stock issued to the independent directors have been forfeited. Convertible Stock The Company issued 1,000 shares of Convertible Stock to the Advisor for $1,000 . The Convertible Stock will convert into shares of common stock if and when: (A) the Company has made total distributions on the then-outstanding shares of its common stock equal to the original issue price of those shares plus an aggregate 6.0% cumulative, non-compounded, 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 repurchased 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 September 30, 2019 and December 31, 2018 , no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company’s board of directors has approved the DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The purchase price per share under the DRP was initially $14.25 . On March 12, 2019 , March 14, 2018 and February 14, 2017 , the Company’s board of directors approved a price per share for the DRP of $15.84 , $15.18 and $14.85 , effective April 1, 2019 , April 1, 2018 and March 1, 2017 , respectively, in connection with the determination of an estimated value per share of the Company’s common stock. The Company’s board of directors may again, in its sole discretion, from time to time, change this price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. No sales commissions or dealer manager fees are payable on shares sold through the DRP. The Company’s board of directors may amend, suspend or terminate the DRP at its discretion at any time upon ten days ’ notice to the Company’s stockholders. Following any termination of the DRP, all subsequent distributions to stockholders will be made in cash. Share Repurchase Plan and Redeemable Common Stock The Company’s share repurchase plan may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase plan until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84 . The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) T he “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. The purchase price per share for shares repurchased pursuant to the Company’s share repurchase plan will be further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the Repurchase Date (defined below) as a result of the sale of one or more of the Company’s assets that constitutes a return of capital as a result of such sales. Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (“Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three business days prior to the Repurchase Date. In connection with the proposed SIR Merger and STAR III Merger, on August 5, 2019, the Company’s board of directors approved the Amended and Restated Share Repurchase Plan (the “Amended & Restated SRP”), which became effective September 5, 2019, and will apply with repurchases made on the repurchase dates subsequent to the effective date of the Amended & Restated SRP. Under the Amended & Restated SRP, the Company will only repurchase shares of common stock in connection with the death or qualifying disability (as determined by the Company’s board in its sole discretion) of a stockholder, subject to certain terms and conditions specified in the Amended & Restated SRP. Repurchases pursuant to the Amended and Restated SRP will continue to be limited to $2,000,000 per quarter. The Company expects that the board of directors of the Combined Company will determine the terms of the share repurchase plan at a later date following consummation of the SIR Merger and STAR III Merger. The Company is not obligated to repurchase shares of its common stock under the share repurchase plan. In no event shall repurchases under the share repurchase plan exceed 5% of the weighted average number of shares of common stock outstanding during the prior calendar year or the $2,000,000 limit for any quarter put in place by the Company’s board of directors. There is no fee in connection with a repurchase of shares of the Company’s common stock pursuant to the Company’s share repurchase plan. As of September 30, 2019 and 2018 , the Company had outstanding and unfulfilled repurchase requests of 55,166 (pursuant to the Amended & Restated SRP) and 142,393 shares of common stock, respectively, and recorded $817,640 and $2,000,000 , respectively, in accounts payable and accrued liabilities on the accompanying consolidated balance sheets related to these unfulfilled repurchase requests, all of which were repurchased on the October 31, 2019 and 2018 repurchase dates. During the three and nine months ended September 30, 2019 , the Company repurchased a total of 135,389 and 410,234 shares with a total repurchase value of $2,000,000 and $6,000,000 , and received requests for repurchases of 55,301 and 851,817 shares with a total repurchase value of $819,634 and $12,443,570 , respectively. During the three and nine months ended September 30, 2018 , the Company repurchased a total of 142,393 and 489,003 shares with a total repurchase value of $2,000,000 and $6,886,216 , and received requests for the repurchase of 837,351 and 1,378,877 shares with a total repurchase value of $11,690,162 and $19,165,825 , respectively. The Company cannot guarantee that the funds set aside for the share repurchase plan will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to repurchase requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the Company will treat the shares that have not been repurchased as a request for repurchase in the following quarter pursuant to the limitations of the share repurchase plan and when sufficient funds are available, unless the stockholder withdraws the request for repurchase. Such pending requests will be honored among all requests for repurchases in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death or disability; and, next, pro rata as to other repurchase requests. The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the share repurchase plan at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the share repurchase plan are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase plan is in the best interest of the Company’s stockholders. Therefore, a stockholder may not have the opportunity to make a repurchase request prior to any potential termination or suspension of the Company’s share repurchase plan. The share repurchase plan will terminate in the event that a secondary market develops for the Company’s shares of common stock. For the three and nine months ended September 30, 2019 , the Company reclassified $1,182,360 , net pursuant to the share repurchase plan from accounts payable and accrued liabilities to temporary equity. For the three and nine months ended September 30, 2018 , the Company reclassified $0 and $37,028,102 , net of $2,000,000 and $6,886,216 of fulfilled redemption requests, respectively, from temporary equity to permanent equity, which is included in additional paid-in capital on the accompanying consolidated balance sheets. Distributions The Company’s long-term goal is to pay distributions solely from cash flow from operations. However, because the Company may receive income from interest or rents at various times during the Company’s fiscal year and because the Company may need cash flow from operations during a particular period to fund capital expenditures and other expenses, the Company expects that at times during the Company’s operational stage, the Company will declare distributions in anticipation of cash flow that the Company expects to receive during a later period, and the Company expects to pay these distributions in advance of its actual receipt of these funds. The Company’s board of directors has the authority under its organizational documents, to the extent permitted by Maryland law, to fund distributions from sources such as borrowings, offering proceeds or advances and the deferral of fees and expense reimbursements by the Advisor, in its sole discretion. The Company has not established a limit on the amount of proceeds it may use to fund distributions from sources other than cash flow from operations. If the Company pays distributions from sources other than cash flow from operations, the Company will have fewer funds available and stockholders’ overall return on their investment in the Company may be reduced. To maintain the Company’s qualification as a REIT, the Company must make aggregate annual distributions to its stockholders of at least 90% of its REIT taxable income (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). If the Company meets the REIT qualification requirements, the Company generally will not be subject to federal income tax on the income that the Company distributes to its stockholders each year. Distributions Declared The Company’s board of directors approved a cash distribution that accrues at a rate of $0.002466 per day for each share of the Company’s common stock during each of the three and nine months ended September 30, 2019 and 2018 , 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. The distributions declared accrue daily to stockholders of record as of the close of business on each day and are payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month. There is no guarantee that the Company will continue to pay distributions at this rate or at all. Distributions declared for the three and nine months ended September 30, 2019 , were $11,860,005 and $35,056,265 , including $5,269,020 and $15,899,564 , or 332,640 and 1,018,429 shares of common stock, respectively, attributable to the DRP. Distributions declared for the three and nine months ended September 30, 2018 , were $11,664,156 and $34,462,269 , including $5,672,728 and $17,042,127 , or 373,697 and 1,130,971 shares of common stock, respectively, attributable to the DRP. As of September 30, 2019 and December 31, 2018 , $3,873,086 and $3,953,499 of distributions declared were payable, which included $1,709,602 and $1,860,828 , or 107,929 shares and 122,584 shares of common stock, attributable to the DRP, respectively. Distributions Paid For the three and nine months ended September 30, 2019 , the Company paid cash distributions of $6,550,164 and $19,085,888 , which related to distributions declared for each day in the period from June 1, 2019 through August 31, 2019 and December 1, 2018 through August 31, 2019, respectively. Additionally, for the three and nine months ended September 30, 2019 , 334,187 shares and 1,028,071 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,293,528 and $16,050,790 , respectively. For the three and nine months ended September 30, 2019 , the Company paid total distributions of $11,843,692 and $35,136,678 , respectively. For the three and nine months ended September 30, 2018 , the Company paid cash distributions of $5,941,991 and $17,364,466 , which related to distributions declared for each day in the period from June 1, 2018 through August 31, 2018 and December 1, 2017 through August 31, 2018, respectively. Additionally, for the three and nine months ended September 30, 2018 , 375,851 shares and 1,142,634 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,705,424 and $17,175,364 , respectively. For the three and nine months ended September 30, 2018 , the Company paid total distributions of $11,647,415 and $34,539,830 , respectively. |
Related Party Arrangements
Related Party Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements The Company has entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services related to the investment of funds in real estate and real estate-related investments and the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, as well as acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. Amounts attributable to the Advisor and its affiliates incurred (earned) for the three and nine months ended September 30, 2019 and 2018 , and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of September 30, 2019 and December 31, 2018 , are as follows: Incurred (Earned) For the Incurred (Earned) For the Payable (Prepaid) as of Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 September 30, 2019 December 31, 2018 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 4,190,746 $ 4,282,469 $ 12,525,074 $ 12,826,487 $ 2,487 $ 55,865 Acquisition expenses (2) 5,933 — 98,594 — — — Loan coordination fees (1) 542,833 3,562,595 542,833 3,562,595 200,000 — Disposition fees (3) 310,000 — 310,000 — 310,000 — Disposition transaction costs (3) 3,252 — 3,252 — — — Property management: Fees (1) 1,276,621 1,241,104 3,756,048 3,653,311 427,803 410,424 Reimbursement of onsite personnel (4) 3,937,443 3,947,855 11,441,579 11,164,448 1,240,363 768,107 Reimbursement of other (1) 907,103 540,090 2,424,954 1,207,246 49,272 41,989 Reimbursement of property operations (4) 28,519 25,118 78,261 71,761 — — Reimbursement of property G&A (2) 14,269 9,894 76,101 29,581 — — Other operating expenses (2) 493,915 326,867 1,322,066 867,968 257,651 93,740 Insurance proceeds (5) — — — — — (75,000 ) Property insurance (6) 891,113 353,715 1,533,091 1,111,904 (500,727 ) (101,573 ) Rental revenue (7) (14,745 ) (6,840 ) (44,235 ) (6,840 ) — — Consolidated Balance Sheets: Capitalized Acquisition fees (8) — — 48,343 — — — Acquisition expenses (9) 278,311 — 497,023 — — 1,607 Capital expenditures (10) — — — 7,295 — — Construction management: Fees (10) 492,218 162,951 953,635 351,053 47,120 10,281 Reimbursement of labor costs (10) 117,871 224,473 379,176 724,860 15,038 29,203 Deferred financing costs (11) 3,594 18,923 3,594 18,923 — — Additional paid-in capital Selling commissions — — — — 127,674 299,952 $ 13,478,996 $ 14,689,214 $ 35,949,389 $ 35,590,592 $ 2,176,681 $ 1,534,595 _____________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in gain on sale of real estate, net in the accompanying consolidated statements of operations. (4) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (5) Included in other income in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in real estate held for development in the accompanying consolidated balance sheets. (9) Included in total real estate, net in the accompanying consolidated balance sheets. (10) Included in building and improvements in the accompanying consolidated balance sheets. (11) Included in notes payable, net in the accompanying consolidated balance sheets. Investment Management Fee The Company pays the Advisor a monthly investment management fee equal to one-twelfth of 1.0% of (1) the cost of investments in real properties and real estate-related assets acquired directly by the Company or (2) the Company’s allocable cost of each investment in real property or real estate related asset acquired through a joint venture. The investment management fee is calculated including the amount actually paid or budgeted to fund acquisition fees, acquisition expenses, cost of development, construction or improvement 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 of any real property or real estate-related asset acquired. In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor and amounts the Advisor pays to third parties in connection with the selection, evaluation, acquisition and development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets. The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 4.5% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 4.5% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a Financial Industry Regulatory Authority, Inc. (“FINRA”) member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer. Loan Coordination Fee The Company pays the Advisor or its affiliate a loan coordination fee equal to 1.0% of the initial amount of the new debt financed or outstanding debt assumed in connection with the acquisition, development, construction, improvement or origination of a property or a real estate-related asset. In addition, in connection with any financing or the refinancing of any debt (in each case, other than identified at the time of the acquisition of a property or a real estate-related asset), the Company pays the Advisor or its affiliate a loan coordination fee equal to 0.75% of the amount of debt financed or refinanced. In some instances, the Company and the Advisor agreed to a loan coordination fee of $100,000 per loan refinanced. Property Management Fees and Expenses The Company has entered into property management agreements (each, as amended from time to time, a “Property Management Agreement”) with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the management of each of the Company’s properties. At September 30, 2019 , the property management fee payable with respect to each property under the Property Management Agreements ranged from 2.50% to 3.0% of the annual gross revenue collected at the property, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. Each Property Management Agreement has an initial one -year term and continues thereafter on a month-to-month basis unless either party gives 60 -days’ prior notice of its desire to terminate the Property Management Agreement, provided that the Company may terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days’ prior written notice to the Property Manager. In addition to the property management fee, the Property Management Agreements also specify certain other reimbursements payable to the Property Manager for benefit administration, information technology infrastructure, licenses, support and training services and capital expenditures. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees. Construction Management Fees and Expenses The Company has entered into construction management agreements (each, a “Construction Management Agreement”) with Pacific Coast Land & Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with capital improvements and renovation or value-enhancement projects for certain properties the Company acquires. The construction management fee payable with respect to each property under the Construction Management Agreements ranges from 8.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement can be terminated by either party with 30 days ’ prior written notice to the other party. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred as such costs relate to capital improvements and renovations for apartment homes taken out of service while they undergo the planned renovation. The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations. Development Services In some instances, the Company may enter into a Development Services Agreement with Steadfast Multifamily Development, Inc., an affiliate of the Advisor, (the “Developer”), in connection with a development project, pursuant to which the Developer will receive a development fee and reimbursement for certain expenses for overseeing the development project. The Company entered into a Development Services Agreement with the Developer in connection with the Garrison Station development project that provided for a development fee equal to 4% of the hard and soft costs of the development project as specified in the Development Services Agreement. 75% of the development fee will be paid in 14 monthly installments and the remaining 25% will be paid upon delivery by the Developer to us of a certificate of occupancy. As of September 30, 2019 , no amounts had been paid pursuant to the Development Services Agreement. Property Insurance The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor. In addition, the Company deposits amounts with an affiliate of the Sponsor to cover the cost of property and property related insurance across certain properties of the Company. Other Operating Expense Reimbursement In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “ 2% / 25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2% / 25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring 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 reserves 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, 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) and investment management fees; (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). As of September 30, 2019 , the Company’s total operating expenses, as defined above, did not exceed the 2% / 25% Limitation. Disposition Fee If the Advisor or its affiliates provide a substantial amount of services in connection with the sale of a property or real estate-related asset as determined by a majority of the Company’s independent directors, the Company will pay the Advisor or its affiliates a fee equivalent to one-half 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. Selling Commissions and Dealer Manager Fees The Company entered into the Dealer Manager Agreement with the Dealer Manager in connection with the Public Offering. The Company paid the Dealer Manager up to 7% and 3% of the gross offering proceeds from the Primary Offering as selling commissions and dealer manager fees, respectively. The Dealer Manager reallowed 100% of sales commissions earned to participating broker-dealers. The Dealer Manager could also reallow to any participating broker-dealer a portion of the dealer manager fee that was attributable to that participating broker-dealer for certain marketing costs of that participating broker-dealer. The Dealer Manager negotiated the reallowance of the dealer manager fee on a case-by-case basis with each participating broker-dealer subject to various factors associated with the cost of the marketing program. The Company allowed a participating broker-dealer to elect to receive the 7% selling commissions at the time of sale or elect to have the selling commission paid on a trailing basis. A participating broker-dealer that elected to receive a trailing selling commission is paid as follows: 3% at the time of sale and the remaining 4% paid ratably ( 1% per year) on each of the first four anniversaries of the sale. A reduced selling commission and dealer manager fee was paid in connection with volume discounts and certain other categories of sales. No selling commissions or dealer manager fee was paid with respect to shares of common stock issued pursuant to the DRP. The Company terminated the Public Offering on March 24, 2016 , and as of September 30, 2019 and December 31, 2018 , expects to pay trailing selling commissions of $127,674 and $299,952 , respectively, which were charged to additional paid-in capital and included within amounts due to affiliates in the accompanying consolidated balance sheets. Pending Mergers with Steadfast Income REIT and Steadfast Apartment REIT III Amended and Restated Advisory Agreement Concurrently with the entry into the Merger Agreements, the Company and the Advisor entered into the Amended and Restated STAR Advisory Agreement (the “Amended STAR Advisory Agreement”), which will become effective at the effective time of the earlier of the SIR Merger and STAR Merger. The Amended STAR Advisory Agreement amends the existing Advisory Agreement to lower certain fees and to change the form of consideration for the investment management fee so that such fees are paid 50% in cash and 50% in STAR common stock. Any acquisition fee, disposition fee or loan coordination fee payable to the Advisor will be 0.5% of the cost of investment, sales price or amount financed, as applicable. Any loan coordination fee related to non-acquisition financing or refinancing will be payable to the Advisor in the form of the Company’s common stock. In addition, the Amended STAR Advisory Agreement provides for a Subordinated Incentive Listing Fee, Subordinated Share of Net Sales Proceeds and Performance Fee (each as defined in the Amended STAR Advisory Agreement) to be payable to the Advisor in exchange for the redemption of the 1,000 shares of Convertible Stock currently owned by the Advisor. Pursuant to the Merger Agreements, the Advisor may request to receive a new class of convertible stock in exchange for the Convertible Stock owned by the Advisor in lieu of the Subordinated Incentive Listing Fee, Subordinated Share of Net Sales Proceeds and Performance Fee provided for in the Amended STAR Advisory Agreement; provided that such request must be made prior to the consummation of either of the mergers. |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Award Plan and Independent Director Compensation | Incentive Award Plan and Independent Director Compensation The Company has adopted an incentive award plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified 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 received 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. These restricted stock awards entitle the holders to participate in distributions even if the shares are not fully vested. The Company recorded stock-based compensation expense of $11,390 and $39,182 for the three and nine months ended September 30, 2019 and $33,044 and $60,721 for the three and nine months ended September 30, 2018 , respectively, related to the independent directors’ restricted common stock. In addition to the stock awards, the Company pays each of its independent directors an annual retainer of $55,000 , prorated for any partial term (the audit committee chairperson receives an additional $10,000 annual retainer, prorated for any partial term). The independent directors are also paid for attending meetings as follows: (i) $2,500 for each board meeting attended in person, (ii) $1,500 for each committee meeting attended in person in such director’s capacity as a committee member, (iii) $1,000 for each board meeting attended via teleconference (not to exceed $4,000 for any one set of meetings attended on any given day). All directors also receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors. Director compensation is an operating expense of the Company that is subject to the operating expense reimbursement obligation of the Advisor discussed in Note 7 (Related Party Arrangements). The Company recorded an operating expense of $94,750 and $346,750 for the three and nine months ended September 30, 2019 , and $235,750 and $353,250 for the three and nine months ended September 30, 2018 , related to the independent directors’ annual retainer and attending board and committee meetings, which is included in general and administrative expenses in the accompanying consolidated statements of operations. As of September 30, 2019 and December 31, 2018 , $94,750 and $151,750 , respectively, related to the independent directors’ annual retainer and board meetings attendance is included in accounts payable and accrued liabilities in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services, the Company will be required to obtain such services from other sources. The Company may not be able to retain services from such other sources on favorable terms or at all. Concentration of Credit Risk The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Atlanta, Georgia, Dallas/Fort Worth, Texas and Nashville, Tennessee apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
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. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2019 and December 31, 2018 : September 30, 2019 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 10/1/2019 - 8/1/2021 One-Month LIBOR 11 $ 395,592,350 2.02% 3.46% $ 1,902 December 31, 2018 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52% 3.46% $ 207,769 The interest rate cap agreements are not designated as effective cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three and nine months ended September 30, 2019 , resulted in an unrealized loss of $24,144 and $223,867 , respectively, and for the three and nine months ended September 30, 2018 , resulted in an unrealized gain of $62,119 and $641,013 , respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the three and nine months ended September 30, 2019 , the Company acquired interest rate cap agreements of $18,000 . During the three and nine months ended September 30, 2018 , the Company acquired interest rate cap agreements of $43,200 and received settlement proceeds from interest rate cap agreements of $270,000 . The fair value of the interest rate cap agreements of $1,902 and $207,769 as of September 30, 2019 and December 31, 2018 , respectively, is included in other assets on the accompanying consolidated balance sheets. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid On October 1, 2019 , the Company paid distributions of $3,873,086 , which related to distributions declared for each day in the period from September 1, 2019 through September 30, 2019 and consisted of cash distributions paid in the amount of $2,163,484 and $1,709,602 in shares issued pursuant to the DRP. On November 1, 2019 , the Company paid distributions of $4,009,485 , which related to distributions declared for each day in the period from October 1, 2019 through October 31, 2019 and consisted of cash distributions paid in the amount of $2,248,504 and $1,760,981 in shares issued pursuant to the DRP. Shares Repurchased On October 31, 2019 , the Company repurchased 55,166 shares of its common stock for a total repurchase value of $817,640 , or $14.79 per share, pursuant to the Company’s share repurchase plan. Refinancing Transactions On October 1, 2019, the Company, through the indirect wholly-owned subsidiaries set out in the table below (each a “Borrower” and collectively, the “Borrowers”), refinanced $126,376,000 of existing variable rate loans with PNC Bank with new fixed rate Freddie Mac loans in an aggregate principal amount of $135,524,000 (the “Loans”). Each of the Loans has a ten year term, with interest only payments for the first five years. The Borrowers paid $508,215 in the aggregate in loan origination fees to PNC Bank in connection with the refinancings, and the Advisor earned a loan coordination fee of $400,000 . Property Borrower Closing Date Lender Loan Amount Interest Rate Meadows at N. Richland Hills STAR Meadows, LLC 10/1/2019 PNC Bank $ 26,888,000 3.56 % Park Valley STAR Park Valley, LLC 10/1/2019 PNC Bank 49,100,000 3.56 % Peak View by Horseshoe Lake STAR Horseshoe, LLC 10/1/2019 PNC Bank 38,421,000 3.56 % Reveal on Cumberland STAR Cumberland, LLC 10/1/2019 PNC Bank 21,115,000 3.56 % $ 135,524,000 Distributions Declared On November 5, 2019 , the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on January 1, 2020 and ending on March 31, 2020. The distributions will be equal to $0.002459 per share of the Company’s common stock per day. The distributions for each record date in January 2020, February 2020 and March 2020 will be paid in February 2020, March 2020 and April 2020, respectively. The distributions will be payable to stockholders from legally available funds therefor. Restricted Stock Grant On November 6, 2019, 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 2019 annual meeting of stockholders. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, the Operating Partnership and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. |
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 and nine months ended September 30, 2019 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . 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, 2018 . |
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 - The Company has entered into certain 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 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, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. |
Distribution Policy | Distribution Policy The Company elected to be taxed, and currently qualifies, as a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the three and nine months ended September 30, 2019 , were based on daily record dates and calculated at a rate of $0.002466 per share per day during the period from January 1, 2019 through September 30, 2019 . Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. |
Per Share Data | Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period. Nonvested shares of the Company’s restricted common stock and convertible stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. |
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 February 2016, the FASB established ASC Topic 842, Leases (“ASC 842”), by issuing ASU 2016-02, which requires lessees to recognize right-of-use assets and lease liabilities for operating leases on the balance sheet and disclose key information about leasing arrangements. ASC 842 also makes targeted changes to lessor accounting. ASC 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-01”), ASU 2018-10, Codification Improvements to Topic 842 (“ASU 2018-10”), ASU 2018-11, Targeted Improvements (“ASU 2018-11”) and ASU 2018-20, Leases (Topic 842), Narrow-scope Improvements for Lessors (“ASU 2018-20”). ASC 842 requires a modified retrospective transition approach that was effective in the first quarter of 2019, subject to early adoption. The Company elected an optional transition method that allows entities to initially apply ASC 842 at the adoption date (January 1, 2019) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company evaluated the impact of ASC 842 on its leases both as it relates to the Company acting as a lessee and as a lessor. Based on its evaluation, as it relates to the former, the Company elected to apply each of the practical expedients described in ASC 842-10-65-1(f) that allowed the Company, among other things, to not reassess lease classification conclusions or initial direct cost accounting as of December 31, 2018, therefore these leases continue to be accounted for as operating leases. The Company also elected the practical expedient described in ASC 842-20-25-2 not to apply the recognition requirements in ASC 842 to short-term leases and instead, to recognize lease payments in the consolidated statement of operations on a straight-line basis over the lease term. The Company did not experience a material impact on the recognition of leases in the consolidated financial statements because the quantity of leased equipment by the Company is limited and immaterial to the consolidated financial statements. Upon adoption, the Company recognized an initial operating lease right-of-use asset, net, of $7,656 and an operating lease liability, net, of $7,720 . As it relates to the Company as lessor, the Company did not experience a material impact on the recognition of leases in the consolidated financial statements because under ASC 842, lessors continue to account for leases using an approach that is substantially equivalent to historical guidance for sales-type leases, direct financing leases, and operating leases. The Company elected a practical expedient which allows lessors to not separate non-lease components from the lease component when the timing and pattern of transfer for the lease components and non-lease components are the same and if the lease component is classified as an operating lease. As a result, on January 1, 2019, the Company began presenting all rentals and reimbursements from tenants as a single line item rental income within the consolidated statements of operations. As of January 1, 2019, the Company implemented changes to its business processes and controls related to accounting for and the presentation and disclosure of leases, including the reclassification of tenant reimbursements, previously disclosed as part of tenant reimbursements and other, to rental income, in the consolidated statements of operations. Under ASC 842, beginning on January 1, 2019, changes in the probability of collecting tenant rental income could result in direct adjustments of rental income and tenant receivables. The Company did not experience a material impact on its rental income and tenant receivables as of the adoption date. The Company’s rental income consists of fixed rental payments from tenants under operating leases and is recognized on a straight-line basis over the respective operating lease terms. The Company recognizes minimum rent, including rental abatements, concessions and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the non-cancelable term of the related lease. The Company’s rental income that relates to variable lease payments consists of tenant reimbursements and includes reimbursements for recoverable costs, which are recognized as revenue in the period during which the applicable expenses are incurred and the tenant’s obligation to reimburse the Company arises. The Company recognized $43,962,752 and $129,166,798 of rental income related to operating lease payments, of which $4,740,396 and $13,150,831 was for variable lease payments for the three and nine months ended September 30, 2019 , respectively. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (“ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”), which clarifies that operating lease receivables accounted for under ASC 842 Leases, are not in the scope of the new credit losses guidance. The effective date and transition requirements for this guidance are the same as for ASU 2016-13. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements and related disclosures and does not expect a material impact on its consolidated financial statements and related disclosures from its adoption. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The issuance of ASU 2018-13 is part of a disclosure framework project. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. Achieving the objective of improving the effectiveness of the notes to financial statements includes: (1) the development of a framework that promotes consistent decisions by the FASB board about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. ASU 2018-13 removed certain disclosure requirements under Topic 820 such as the disclosure requirements of the valuation process for level 3 fair value measurements and modified and added certain of the disclosure requirements in Topic 820. ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact ASU 2018-13 will have on its consolidated financial statements and related disclosures and believes that certain disclosures of interest rate cap agreements in its consolidated financial statements may be impacted by the adoption of ASU 2018-13. The SEC’s Disclosure Update and Simplification rule (Release 33-10532) amends the interim financial statement requirements to require a reconciliation of changes in stockholder’ equity in the notes or as a separate statement. This analysis should reconcile the beginning balance to the ending balance of each caption in stockholders’ equity for each period for which an income statement is required to be filed and comply with the remaining content requirements of Rule 3-04 of Regulation S-X. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods and comparable periods in Form 10-Q but only for the year-to-date periods in registration statements. The rule does not prescribe the format of the presentation as long as the appropriate periods are provided. Per a Compliance and Disclosure Interpretation (Q 105.09, Exchange Act Forms, 10-Q), “the amendments are effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendments and proximity of effectiveness to the filing date for most filers’ quarterly reports, the staff would not object if the filer’s first presentation of the changes in the shareholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments.” This allowed the Company to adopt the amendment for the Company’s first quarter 2019 filing. The Company first adopted this guidance in the three months ended March 31, 2019, by presenting a reconciliation of changes in stockholders’ equity for the current and prior period as a separate statement. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis | The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: September 30, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 1,902 $ — December 31, 2018 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements $ — $ 207,769 $ — |
Schedule of Cash and Cash Equivalents and Restricted Cash | The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018: September 30, 2019 2018 Cash and cash equivalents $ 74,816,801 $ 62,267,700 Restricted cash 47,261,216 15,958,322 Total cash, cash and cash equivalents and restricted cash $ 122,078,017 $ 78,226,022 |
Restrictions on Cash and Cash Equivalents | The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018: September 30, 2019 2018 Cash and cash equivalents $ 74,816,801 $ 62,267,700 Restricted cash 47,261,216 15,958,322 Total cash, cash and cash equivalents and restricted cash $ 122,078,017 $ 78,226,022 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below provides a reconciliation of the prior period presentation of the income statement line items that were reclassified in our consolidated statements of operations to conform to the current period presentation, pursuant to the adoption of the new lease accounting standard and election of the single component practical expedient: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Rental income (presentation prior to January 1, 2019) $ 38,226,188 $ 112,776,421 Tenant reimbursements (1) (presentation prior to January 1, 2019) 4,565,435 12,652,193 Rental income (presentation effective January 1, 2019) $ 42,791,623 $ 125,428,614 _________________ (1) Tenant reimbursements include reimbursements for recoverable costs. |
Real Estate (Tables)
Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles | As of September 30, 2019 and December 31, 2018 , accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: September 30, 2019 Assets Land Building and Improvements (1) Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 161,613,722 $ 1,401,105,029 $ 1,562,718,751 $ 4,305,247 $ — Less: Accumulated depreciation and amortization — (268,924,964 ) (268,924,964 ) — — Net investments in real estate and related lease intangibles $ 161,613,722 $ 1,132,180,065 $ 1,293,793,787 $ 4,305,247 $ — ____________________ (1) During the three and nine months ended September 30, 2019, the Company capitalized $513,512 of costs related to the pending mergers with SIR and STAR III, included in building and improvements in the accompanying consolidated balance sheets. December 31, 2018 Assets Land Building and Improvements Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 161,613,722 $ 1,381,769,664 $ 1,543,383,386 $ — $ 31,928,519 Less: Accumulated depreciation and amortization — (214,231,416 ) (214,231,416 ) — (4,440,747 ) Net investments in real estate and related lease intangibles $ 161,613,722 $ 1,167,538,248 $ 1,329,151,970 $ — $ 27,487,772 |
Schedule of Real Estate Under Development | During the nine months ended September 30, 2019 , the Company acquired the following land held for the development of apartment homes: Development Name Location Purchase Date Land Held for Development Construction in Progress Total Carrying Value Garrison Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 1,836,063 $ 4,305,246 |
Disposal Groups, Including Discontinued Operations | The results of operations for the three and nine months ended September 30, 2019 and 2018 , through the date of sale for Randall Highlands Apartments, were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Revenues: Rental income $ 789,589 $ 815,168 $ 2,366,420 $ 2,314,405 Other income 1,041 1,072 4,754 8,635 Total revenues 790,630 816,240 2,371,174 2,323,040 Expenses: Operating, maintenance and management 199,831 177,373 529,200 508,808 Real estate taxes and insurance 169,267 209,923 571,248 577,792 Fees to affiliates 36,135 33,012 103,855 88,769 Depreciation and amortization 96,270 303,428 709,579 904,845 Interest expense — 75,800 — 484,049 Loss on debt extinguishment — 184,527 — 184,527 General and administrative expenses 1,656 2,602 9,407 7,524 Total expenses $ 503,159 $ 986,665 $ 1,923,289 $ 2,756,314 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of September 30, 2019 and December 31, 2018 , other assets consisted of: September 30, 2019 December 31, 2018 Prepaid expenses $ 1,148,875 $ 1,690,959 Interest rate cap agreements (Note 10) 1,902 207,769 Escrow deposits for pending real estate acquisitions 500,100 100,000 Other deposits 2,502,717 924,997 Operating lease right-of-use assets, net 20,634 — Other assets $ 4,174,228 $ 2,923,725 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Mortgage Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable, net, secured by real property as of September 30, 2019 and December 31, 2018 . September 30, 2019 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 6 12/1/2024 - 9/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 3.99% $ 202,046,000 Fixed rate 10 7/1/2025 - 5/1/2054 3.36 % 4.60 % 4.11% 353,528,608 Mortgage notes payable, gross 16 4.07% 555,574,608 Deferred financing costs, net (2) (3,768,199 ) Mortgage notes payable, net $ 551,806,409 December 31, 2018 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 8 12/1/2024 - 11/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 4.53% $ 277,432,000 Fixed rate 7 7/1/2025 - 5/1/2054 4.34 % 4.60 % 4.45% 228,127,333 Mortgage notes payable, gross 15 4.49% 505,559,333 Deferred financing costs, net (2) (3,416,027 ) Mortgage notes payable, net $ 502,143,306 ___________ (1) See Note 10 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) Accumulated amortization related to deferred financing costs as of September 30, 2019 and December 31, 2018 was $2,048,573 and $1,602,290 , respectively. |
Summary Financing of Mortgage Notes Payable Secured by Real Property | The following is a summary of the refinancing of mortgage notes payable secured by real property during the three months ended September 30, 2019: Property Closing Date Lender Interest Rate Loan Amount Delano at North Richland Hills 9/27/2019 PNC Bank 3.56% $ 32,159,000 Lakeside at Coppell 9/27/2019 PNC Bank 3.56% 48,251,000 $ 80,410,000 Property Borrower Closing Date Lender Loan Amount Interest Rate Meadows at N. Richland Hills STAR Meadows, LLC 10/1/2019 PNC Bank $ 26,888,000 3.56 % Park Valley STAR Park Valley, LLC 10/1/2019 PNC Bank 49,100,000 3.56 % Peak View by Horseshoe Lake STAR Horseshoe, LLC 10/1/2019 PNC Bank 38,421,000 3.56 % Reveal on Cumberland STAR Cumberland, LLC 10/1/2019 PNC Bank 21,115,000 3.56 % $ 135,524,000 |
Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility | As of September 30, 2019 and December 31, 2018 , the advances obtained and certain financing costs incurred under the MCFA and Line of Credit, which is included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of September 30, 2019 December 31, 2018 Principal balance on Line of Credit, gross (1) $ — $ — Principal balance on MCFA, gross 551,669,000 551,669,000 Deferred financing costs, net on MCFA (2) (3,310,486 ) (3,612,316 ) Deferred financing costs, net on Line of Credit (3) — (44,247 ) Credit facilities, net $ 548,358,514 $ 548,012,437 ___________ (1) At December 31, 2018, Landings of Brentwood was pledged as collateral pursuant to the Line of Credit. On January 9, 2019, the Company terminated the Line of Credit. (2) Accumulated amortization related to deferred financing costs in respect of the MCFA as of September 30, 2019 and December 31, 2018 , was $730,471 and $428,641 , respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Line of Credit as of September 30, 2019 and December 31, 2018 , was $0 and $280,753 , respectively. |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of September 30, 2019 : Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2019 2020 2021 2022 2023 Thereafter Principal payments on outstanding debt (1) $ 1,107,243,608 $ 247,221 $ 1,142,443 $ 4,327,459 $ 4,412,236 $ 5,231,961 $ 1,091,882,288 ______________ (1) Projected principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude the amortization of deferred financing costs associated with the notes payable. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services | The issuance and vesting activity for the nine months ended September 30, 2019 and year ended December 31, 2018 , for the restricted stock issued to the Company’s independent directors were as follows: Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Nonvested shares at the beginning of the period 7,497 7,497 Granted shares — 4,998 Vested shares (3,749 ) (4,998 ) Nonvested shares at the end of the period 3,748 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the nine months ended September 30, 2019 and year ended December 31, 2018 was as follows: Grant Year Weighted Average Fair Value 2018 $15.18 2019 n/a |
Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84 . The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) T he “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published | From March 29, 2016, the date the Company first published an estimated value per share, until April 14, 2018, the purchase price for shares repurchased under the Company’s share repurchase plan was as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of Estimated Value per Share (2) 2 years 95.0% of Estimated Value per Share (2) 3 years 97.5% of Estimated Value per Share (2) 4 years 100.0% of Estimated Value per Share (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Estimated Value per Share” is the most recent publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the most recently publicly disclosed estimated value per share. Pursuant to the amended share repurchase plan, the current share repurchase price is $14.73 per share, which represents 93% of the estimated value per share of $15.84 . The share repurchase price is further reduced based on how long the stockholder has held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) T he “Share Repurchase Price” equals 93% of the Estimated Value per Share. (3) The required one -year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Attributable to the Advisor and its Affiliates | Amounts attributable to the Advisor and its affiliates incurred (earned) for the three and nine months ended September 30, 2019 and 2018 , and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of September 30, 2019 and December 31, 2018 , are as follows: Incurred (Earned) For the Incurred (Earned) For the Payable (Prepaid) as of Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 September 30, 2019 December 31, 2018 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 4,190,746 $ 4,282,469 $ 12,525,074 $ 12,826,487 $ 2,487 $ 55,865 Acquisition expenses (2) 5,933 — 98,594 — — — Loan coordination fees (1) 542,833 3,562,595 542,833 3,562,595 200,000 — Disposition fees (3) 310,000 — 310,000 — 310,000 — Disposition transaction costs (3) 3,252 — 3,252 — — — Property management: Fees (1) 1,276,621 1,241,104 3,756,048 3,653,311 427,803 410,424 Reimbursement of onsite personnel (4) 3,937,443 3,947,855 11,441,579 11,164,448 1,240,363 768,107 Reimbursement of other (1) 907,103 540,090 2,424,954 1,207,246 49,272 41,989 Reimbursement of property operations (4) 28,519 25,118 78,261 71,761 — — Reimbursement of property G&A (2) 14,269 9,894 76,101 29,581 — — Other operating expenses (2) 493,915 326,867 1,322,066 867,968 257,651 93,740 Insurance proceeds (5) — — — — — (75,000 ) Property insurance (6) 891,113 353,715 1,533,091 1,111,904 (500,727 ) (101,573 ) Rental revenue (7) (14,745 ) (6,840 ) (44,235 ) (6,840 ) — — Consolidated Balance Sheets: Capitalized Acquisition fees (8) — — 48,343 — — — Acquisition expenses (9) 278,311 — 497,023 — — 1,607 Capital expenditures (10) — — — 7,295 — — Construction management: Fees (10) 492,218 162,951 953,635 351,053 47,120 10,281 Reimbursement of labor costs (10) 117,871 224,473 379,176 724,860 15,038 29,203 Deferred financing costs (11) 3,594 18,923 3,594 18,923 — — Additional paid-in capital Selling commissions — — — — 127,674 299,952 $ 13,478,996 $ 14,689,214 $ 35,949,389 $ 35,590,592 $ 2,176,681 $ 1,534,595 _____________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in gain on sale of real estate, net in the accompanying consolidated statements of operations. (4) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (5) Included in other income in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in real estate held for development in the accompanying consolidated balance sheets. (9) Included in total real estate, net in the accompanying consolidated balance sheets. (10) Included in building and improvements in the accompanying consolidated balance sheets. (11) Included in notes payable, net in the accompanying consolidated balance sheets. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at September 30, 2019 and December 31, 2018 : September 30, 2019 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 10/1/2019 - 8/1/2021 One-Month LIBOR 11 $ 395,592,350 2.02% 3.46% $ 1,902 December 31, 2018 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2019 - 8/1/2021 One-Month LIBOR 22 $ 713,237,850 2.52% 3.46% $ 207,769 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Summary Financing of Mortgage Notes Payable Secured by Real Property | The following is a summary of the refinancing of mortgage notes payable secured by real property during the three months ended September 30, 2019: Property Closing Date Lender Interest Rate Loan Amount Delano at North Richland Hills 9/27/2019 PNC Bank 3.56% $ 32,159,000 Lakeside at Coppell 9/27/2019 PNC Bank 3.56% 48,251,000 $ 80,410,000 Property Borrower Closing Date Lender Loan Amount Interest Rate Meadows at N. Richland Hills STAR Meadows, LLC 10/1/2019 PNC Bank $ 26,888,000 3.56 % Park Valley STAR Park Valley, LLC 10/1/2019 PNC Bank 49,100,000 3.56 % Peak View by Horseshoe Lake STAR Horseshoe, LLC 10/1/2019 PNC Bank 38,421,000 3.56 % Reveal on Cumberland STAR Cumberland, LLC 10/1/2019 PNC Bank 21,115,000 3.56 % $ 135,524,000 |
Organization and Business - Nar
Organization and Business - Narrative (Details) | Aug. 05, 2019$ / sharesshares | Sep. 03, 2013USD ($)$ / sharesshares | Aug. 22, 2013USD ($)shares | Sep. 30, 2019propertyapartmentmultifamily_property$ / shares | Dec. 31, 2018$ / shares | Mar. 14, 2018$ / shares |
Initial capitalization | ||||||
Share price (in dollars per share) | $ 14.73 | |||||
Residential Real Estate [Member] | ||||||
Initial capitalization | ||||||
Number of multifamily properties | multifamily_property | 33 | |||||
Number of apartment homes | apartment | 11,455 | |||||
Number of parcels of land held for development | property | 1 | |||||
Common Stock [Member] | ||||||
Initial capitalization | ||||||
Share price (in dollars per share) | $ 15 | |||||
Stock, par value (in dollars per share) | 0.01 | $ 0.01 | ||||
Convertible Stock [Member] | ||||||
Initial capitalization | ||||||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||||
Sponsor [Member] | Common Stock [Member] | ||||||
Initial capitalization | ||||||
Issuance of common stock (in shares) | shares | 13,500 | |||||
Share price (in dollars per share) | $ 15 | |||||
Issuance of common stock | $ | $ 202,500 | |||||
Advisor [Member] | Convertible Stock [Member] | ||||||
Initial capitalization | ||||||
Issuance of common stock (in shares) | shares | 1,000 | |||||
Issuance of common stock | $ | $ 1,000 | |||||
SIR Merger Agreement [Member] | ||||||
Initial capitalization | ||||||
Stock, par value (in dollars per share) | $ 0.01 | |||||
STAR III Merger Agreement [Member] | ||||||
Initial capitalization | ||||||
Stock, par value (in dollars per share) | $ 0.01 | |||||
Steadfast Apartment REIT, Inc. [Member] | ||||||
Initial capitalization | ||||||
Proceeds from contributed capital | $ | $ 1,000 | |||||
Steadfast Apartment REIT, Inc. [Member] | SIR Merger Agreement [Member] | ||||||
Initial capitalization | ||||||
Entity shares issued per acquiree share | shares | 0.5934 | |||||
Steadfast Apartment REIT, Inc. [Member] | STAR III Merger Agreement [Member] | ||||||
Initial capitalization | ||||||
Entity shares issued per acquiree share | shares | 1.430 |
Organization and Business - N_2
Organization and Business - Narrative - Public Offering (Details) - USD ($) | Dec. 30, 2013 | Sep. 30, 2019 | Mar. 24, 2016 | Mar. 24, 2016 | Apr. 01, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 14, 2018 | Mar. 01, 2017 |
Public Offering Information | |||||||||
Registration statement, price per share (in dollars per share) | $ 14.73 | ||||||||
Common Stock [Member] | |||||||||
Public Offering Information | |||||||||
Registration statement, price per share (in dollars per share) | $ 15 | ||||||||
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 | $ 15.84 | $ 15.84 | $ 15.18 | $ 14.25 | $ 14.85 | |||
Issuance of common stock (in shares) | 6,335,721 | 1,011,561 | |||||||
Proceeds from issuance of common stock | $ 93,955,886 | $ 14,414,752 | |||||||
Common Stock [Member] | IPO [Member] | |||||||||
Public Offering Information | |||||||||
Issuance of common stock (in shares) | 53,949,748 | 48,625,651 | 48,625,651 | ||||||
Proceeds from issuance of common stock | $ 804,390,765 | $ 724,849,631 | $ 640,012,497 |
Summary of Significant Accoun_4
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, Recurring [Member] - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
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 | 1,902 | 207,769 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value | $ 551,806,409 | $ 502,143,306 | ||
Cash and cash equivalents | 74,816,801 | 58,880,007 | $ 62,267,700 | |
Restricted cash | 47,261,216 | 13,858,768 | 15,958,322 | |
Total cash, cash and cash equivalents and restricted cash | 122,078,017 | 72,738,775 | $ 78,226,022 | $ 38,667,705 |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes payable, fair value | 1,129,952,413 | 1,042,358,884 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Carrying value | $ 1,100,164,923 | $ 1,050,155,743 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative - Restricted Cash (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 47,261,216 | $ 13,858,768 | $ 15,958,322 |
Allocated Loan Amounts Held by Lender of Master Credit Facility [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 19,714,500 | ||
Cash Proceeds from Sale of Property, Held by Intermediaries [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 12,382,678 | $ 17,514,055 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Narrative - Distribution Policy (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | |||
Distributions declared per common share (in dollars per share) | $ 0.227 | $ 0.227 | $ 0.673 | $ 0.673 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Reclassficiations and Recent Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other income | $ 536,512 | $ 363,756 | $ 2,055,689 | $ 1,568,957 |
Rental income (presentation effective January 1, 2019) | 43,962,752 | 129,166,798 | ||
Operating lease right-of-use asset,net | 20,634 | 20,634 | ||
Operating lease liabilities, net | 4,989 | 4,989 | ||
Rental income | 42,791,623 | 125,428,614 | ||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Rental income (presentation prior to January 1, 2019) | 38,226,188 | 112,776,421 | ||
Other income | 4,565,435 | 12,652,193 | ||
Rental income (presentation effective January 1, 2019) | $ 42,791,623 | $ 125,428,614 | ||
Operating lease right-of-use asset,net | 7,656 | 7,656 | ||
Operating lease liabilities, net | 7,720 | 7,720 | ||
Variable lease income | $ 4,740,396 | $ 13,150,831 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) | Sep. 26, 2019USD ($) | Mar. 31, 2015USD ($)apartment_home | Sep. 30, 2019USD ($)propertyapartmentmultifamily_property | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)propertyapartmentmultifamily_property | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Real Estate [Line Items] | |||||||
Purchase price | $ 1,471,571,997 | ||||||
Average percentage of real estate portfolio occupied | 94.40% | 93.90% | |||||
Average monthly collected rent | $ 1,190 | $ 1,163 | |||||
Depreciation and amortization | $ 18,632,477 | $ 17,855,195 | $ 55,430,404 | $ 52,920,337 | |||
Residential Real Estate [Member] | |||||||
Real Estate [Line Items] | |||||||
Number of multifamily properties | multifamily_property | 33 | 33 | |||||
Number of apartment homes | apartment | 11,455 | 11,455 | |||||
Number of parcels of land held for development | property | 1 | 1 | |||||
Residential Real Estate [Member] | Randall Highlands Apartments [Member] | North Aurora, Illinois [Member] | |||||||
Real Estate [Line Items] | |||||||
Number of apartment homes | apartment_home | 146 | ||||||
Purchase price | $ 32,115,000 | ||||||
Randall Highlands Apartments [Member] | Residential Real Estate [Member] | North Aurora, Illinois [Member] | |||||||
Real Estate [Line Items] | |||||||
Proceeds from sale | $ 31,000,000 | ||||||
Gain on sale | $ 3,329,078 |
Real Estate - Schedule of Accum
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Real Estate [Line Items] | |||
Investments in real estate | $ 1,562,718,751 | $ 1,562,718,751 | $ 1,543,383,386 |
Less: Accumulated depreciation and amortization | (268,924,964) | (268,924,964) | (214,231,416) |
Net investments in real estate and related lease intangibles | 1,293,793,787 | 1,293,793,787 | 1,329,151,970 |
Cost of acquisition | 513,512 | 513,512 | |
Land [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 161,613,722 | 161,613,722 | 161,613,722 |
Less: Accumulated depreciation and amortization | 0 | 0 | 0 |
Net investments in real estate and related lease intangibles | 161,613,722 | 161,613,722 | 161,613,722 |
Building and Improvements [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 1,401,105,029 | 1,401,105,029 | 1,381,769,664 |
Less: Accumulated depreciation and amortization | (268,924,964) | (268,924,964) | (214,231,416) |
Net investments in real estate and related lease intangibles | 1,132,180,065 | 1,132,180,065 | 1,167,538,248 |
Real Estate Under Development [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 4,305,247 | 4,305,247 | 0 |
Less: Accumulated depreciation and amortization | 0 | 0 | 0 |
Net investments in real estate and related lease intangibles | 4,305,247 | 4,305,247 | 0 |
Total Real Estate Held for Sale [Member] | |||
Real Estate [Line Items] | |||
Investments in real estate | 0 | 0 | 31,928,519 |
Less: Accumulated depreciation and amortization | 0 | 0 | (4,440,747) |
Net investments in real estate and related lease intangibles | $ 0 | $ 0 | $ 27,487,772 |
Real Estate - Schedule of Real
Real Estate - Schedule of Real Estate Under Development (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Real Estate [Line Items] | ||
Land Held for Development | $ 1,562,718,751 | $ 1,543,383,386 |
Real Estate Under Development [Member] | Murfreesboro, TN [Member] | ||
Real Estate [Line Items] | ||
Land Held for Development | 2,469,183 | |
Construction in Progress | 1,836,063 | |
Total Carrying Value | $ 4,305,246 |
Real Estate - Narrative - Opera
Real Estate - Narrative - Operating Leases (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)multifamily_propertytenant | Sep. 30, 2018tenant | Dec. 31, 2018USD ($) | |
Real Estate Properties [Line Items] | |||
Average monthly collected rent | $ 1,190 | $ 1,163 | |
Tenant [Member] | Customer Concentration Risk [Member] | |||
Real Estate Properties [Line Items] | |||
Number of tenants | tenant | 0 | 0 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Real Estate Properties [Line Items] | |||
Security deposit liability | $ 0.964 | ||
Average monthly collected rent | $ 4,329,563 | $ 4,130,860 | |
Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Operating lease term | 12 months | ||
Residential Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Number of Real Estate Properties | multifamily_property | 33 |
Real Estate - Schedule of Opera
Real Estate - Schedule of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Rental income | $ 789,589 | $ 815,168 | $ 2,366,420 | $ 2,314,405 |
Other income | 1,041 | 1,072 | 4,754 | 8,635 |
Total revenues | 790,630 | 816,240 | 2,371,174 | 2,323,040 |
Expenses: | ||||
Operating, maintenance and management | 199,831 | 177,373 | 529,200 | 508,808 |
Real estate taxes and insurance | 169,267 | 209,923 | 571,248 | 577,792 |
Fees to affiliates | 36,135 | 33,012 | 103,855 | 88,769 |
Depreciation and amortization | 96,270 | 303,428 | 709,579 | 904,845 |
Interest expense | 0 | 75,800 | 0 | 484,049 |
Loss on debt extinguishment | 0 | 184,527 | 0 | 184,527 |
General and administrative expenses | 1,656 | 2,602 | 9,407 | 7,524 |
Total expenses | $ 503,159 | $ 986,665 | $ 1,923,289 | $ 2,756,314 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Prepaid expenses | $ 1,148,875 | $ 1,148,875 | $ 1,690,959 | ||
Interest rate cap agreements | 1,902 | 1,902 | 207,769 | ||
Escrow deposits for pending real estate acquisitions | 500,100 | 500,100 | 100,000 | ||
Other deposits | 2,502,717 | 2,502,717 | 924,997 | ||
Operating lease right-of-use assets, net | 20,634 | 20,634 | |||
Other assets | 4,174,228 | 4,174,228 | $ 2,923,725 | ||
Amortization of right of use leased asset | $ 904 | $ 904 | |||
Amortization of leased asset | $ 0 | $ 0 |
Debt - Summary of Mortgage Note
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument | |
Debt Instrument [Line Items] | ||
Total notes payable, net | $ 1,100,164,923 | $ 1,050,155,743 |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 16 | 15 |
Weighted Average Interest Rate | 4.07% | 4.49% |
Principal Outstanding | $ 555,574,608 | $ 505,559,333 |
Deferred financing costs, net | (3,768,199) | (3,416,027) |
Total notes payable, net | 551,806,409 | 502,143,306 |
Accumulated amortization of deferred financing costs | $ 2,048,573 | $ 1,602,290 |
Notes Payable to Banks [Member] | Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 6 | 8 |
Weighted Average Interest Rate | 3.99% | 4.53% |
Principal Outstanding | $ 202,046,000 | $ 277,432,000 |
Notes Payable to Banks [Member] | Variable Rate [Member] | Minimum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.61% | 1.61% |
Notes Payable to Banks [Member] | Variable Rate [Member] | Maximum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Variable rate | 2.48% | 2.48% |
Notes Payable to Banks [Member] | Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Number of Instruments | instrument | 10 | 7 |
Weighted Average Interest Rate | 4.11% | 4.45% |
Principal Outstanding | $ 353,528,608 | $ 228,127,333 |
Notes Payable to Banks [Member] | Fixed Rate [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate | 3.36% | 4.34% |
Notes Payable to Banks [Member] | Fixed Rate [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate | 4.60% | 4.60% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Sep. 27, 2019USD ($) | Jul. 30, 2019USD ($)Subsidiaryapartment | Jul. 31, 2018USD ($)Subsidiary | May 18, 2016USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 12,562,978 | $ 12,273,389 | $ 36,962,055 | $ 31,619,697 | |||||
Amortization of deferred financing costs | 256,547 | 269,417 | 750,751 | 762,658 | |||||
Change in fair value of interest rate cap agreements | 223,867 | (641,013) | |||||||
Credit facility commitment fees | 0 | 566,048 | 2,137 | 587,520 | |||||
Capitalized interest | 49,068 | 49,068 | |||||||
Seasoning fees | 16,101 | 30,978 | |||||||
Amortization of loan discount | 29,582 | 0 | 207,074 | ||||||
Interest payable | 3,664,971 | 3,664,971 | $ 4,006,127 | ||||||
Interest Rate Cap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Change in fair value of interest rate cap agreements | $ 24,144 | $ (62,119) | $ 223,867 | $ (641,013) | |||||
Revolving Credit Facility [Member] | Master Credit Facility Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Advisory fee, amount | $ 2,758,345 | ||||||||
Revolving Credit Facility [Member] | Line of Credit, PNC Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | $ 65,000,000 | ||||||||
Line of Credit [Member] | Line of Credit, PNC Bank [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 0.60% | ||||||||
Line of Credit [Member] | Line of Credit, PNC Bank [Member] | LIBOR [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 1.60% | ||||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | Master Credit Facility Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | 551,669,000 | ||||||||
Loan fee amount | 1,930,842 | ||||||||
Subsidiaries [Member] | Revolving Credit Facility [Member] | CME Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Advisory fee, amount | 804,250 | ||||||||
Subsidiaries [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | CME Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | 160,850,000 | ||||||||
Loan fee amount | $ 643,400 | ||||||||
Newark Group Inc. [Member] | Revolving Credit Facility [Member] | Master Credit Facility Agreement [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of subsidiaries refinanced under revolving credit facility | Subsidiary | 16 | ||||||||
Repayments of debt | $ 479,318,649 | ||||||||
Newark Group Inc. [Member] | Revolving Credit Facility [Member] | Master Credit Facility Agreement Tranche 1 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | $ 331,001,400 | ||||||||
Fixed rate | 4.43% | ||||||||
Newark Group Inc. [Member] | Revolving Credit Facility [Member] | Master Credit Facility Agreement Tranche 2 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | $ 137,917,250 | ||||||||
Fixed rate | 4.57% | ||||||||
Newark Group Inc. [Member] | Revolving Credit Facility [Member] | Master Credit Facility Agreement Tranche 3 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, borrowing capacity | $ 82,750,350 | ||||||||
Fixed rate | 1.70% | ||||||||
PNC Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 80,410,000 | ||||||||
Repayments of debt | 75,386,000 | ||||||||
Loan fee amount | 301,538 | ||||||||
Advisory fee, amount | $ 200,000 | ||||||||
PNC Bank [Member] | Subsidiaries [Member] | Revolving Credit Facility [Member] | CME Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of subsidiaries refinanced under revolving credit facility | Subsidiary | 5 | ||||||||
Repayments of debt | $ 131,318,742 | ||||||||
Fixed rate | 4.43% | ||||||||
Subsidiaries [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of Subsidiaries | Subsidiary | 1 | ||||||||
Subsidiaries [Member] | Berkeley Point Capital LLC [Member] | Stoneridge Farms Financing, 3.35%, Due August 01, 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 45,711,000 | ||||||||
Fixed rate | 3.36% | ||||||||
Number of apartment homes | apartment | 336 | ||||||||
Loan fee amount | $ 228,555 | ||||||||
Loan processing fee | $ 342,833 |
Debt - Summary of Advances Obta
Debt - Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 548,358,514 | $ 548,012,437 |
Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | 0 | (44,247) |
Accumulated amortization of deferred financing costs | 0 | 280,753 |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (3,310,486) | (3,612,316) |
Accumulated amortization of deferred financing costs | 730,471 | 428,641 |
Residential Real Estate [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | 551,669,000 | 551,669,000 |
Residential Real Estate [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 0 | $ 0 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Details) | Sep. 30, 2019USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 1,107,243,608 |
Remainder of 2019 | 247,221 |
2020 | 1,142,443 |
2021 | 4,327,459 |
2022 | 4,412,236 |
2023 | 5,231,961 |
Thereafter | $ 1,091,882,288 |
Debt - Summary of Financing of
Debt - Summary of Financing of Mortgage Notes Payable Secured by Real Property (Details) - PNC Bank [Member] | Sep. 27, 2019USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 80,410,000 |
Delano at North Richland Hills Financing, 3.56%, Due October 1, 2029 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate | 3.56% |
Debt instrument, face amount | $ 32,159,000 |
Lakeside at Coppell Financing, 3.56%, Due October 1, 2029 [Member] | |
Debt Instrument [Line Items] | |
Fixed rate | 3.56% |
Debt instrument, face amount | $ 48,251,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative - General (Details) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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 - Narrat_2
Stockholders' Equity - Narrative - Common Stock (Details) | Sep. 03, 2013USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)voteshares | Sep. 30, 2018USD ($)shares | Mar. 24, 2016USD ($)shares | Mar. 24, 2016USD ($)shares |
Class of Stock [Line Items] | |||||||
Number of votes (per share) | vote | 1 | ||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 334,187 | 375,851.383399209 | |||||
Commissions on sales of common stock and related dealer manager fees to affiliates | $ (32,414) | ||||||
Share-based compensation expense | $ 39,182 | $ 60,721 | |||||
Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based Payment Arrangement, Expense | $ 51,076 | ||||||
Weighted-average remaining term | 1 year 2 months 10 days | ||||||
Forfeited shares (in shares) | shares | 0 | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 1,028,071 | 1,142,634 | |||||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of equal annual vesting installments | 4 years | ||||||
Share-based compensation expense | $ 11,390 | $ 33,044 | $ 39,182 | $ 60,721 | |||
Common Stock [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | General and Administrative Expense [Member] | |||||||
Class of Stock [Line Items] | |||||||
Share-based compensation expense | $ 11,390 | $ 33,044 | $ 39,182 | $ 60,721 | |||
Common Stock [Member] | IPO [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock (in shares) | shares | 53,949,748 | 48,625,651 | 48,625,651 | ||||
Proceeds from issuance of common stock | $ 804,390,765 | $ 724,849,631 | $ 640,012,497 | ||||
Net proceeds from the issuance of common stock | $ 719,553,631 | ||||||
Common Stock [Member] | Distribution Reinvestment Plan [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock (in shares) | shares | 6,335,721 | 1,011,561 | |||||
Proceeds from issuance of common stock | $ 93,955,886 | $ 14,414,752 | |||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 1,011,561 | ||||||
Net proceeds from issuance of common stock, dividend reinvestment plan | $ 14,414,752 | ||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | 84,837,134 | ||||||
Net proceeds from the issuance of common stock | $ 93,955,886 | ||||||
Common Stock [Member] | Sponsor [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock (in shares) | shares | 13,500 | ||||||
Issuance of common stock | $ 202,500 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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 period (in shares) | 7,497 | 7,497 |
Granted shares (in shares) | 0 | 4,998 |
Vested shares (in shares) | (3,749) | (4,998) |
Nonvested shares at the end of the period (in shares) | 3,748 | |
Independent Directors Compensation Plan [Member] | Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares granted, grant date fair value (in dollars per share) | $ 15.18 |
Stockholders' Equity - Narrat_3
Stockholders' Equity - Narrative - Convertible Stock (Details) - Advisor [Member] - Convertible Stock [Member] - USD ($) | Aug. 22, 2013 | Sep. 30, 2019 |
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, 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 - Narrat_4
Stockholders' Equity - Narrative - Preferred Stock (Details) | 9 Months Ended | |
Sep. 30, 2019classshares | Dec. 31, 2018shares | |
Equity [Abstract] | ||
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | class | 1 | |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | class | 1 | |
Preferred stock, shares issued (in shares) | shares | 0 | 0 |
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 |
Stockholders' Equity - Narrat_5
Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Details) - USD ($) | 9 Months Ended | ||||||
Sep. 30, 2019 | Apr. 01, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 14, 2018 | Mar. 01, 2017 | Dec. 30, 2013 | |
Class of Stock [Line Items] | |||||||
Share price (in dollars per share) | $ 14.73 | ||||||
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) | $ 15.84 | $ 15.84 | $ 15.18 | $ 14.25 | $ 14.85 | $ 14.25 |
Stockholders' Equity - Narrat_6
Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Details) | Sep. 05, 2019USD ($) | Mar. 14, 2018USD ($)$ / shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)asset$ / sharesshares | Sep. 30, 2018USD ($)shares |
Class of Stock [Line Items] | ||||||
Authorized amount, per quarter | $ 2,000,000 | $ 2,000,000 | ||||
Limit on repurchase, percent | 93.00% | 5.00% | ||||
Share price (in dollars per share) | $ / shares | $ 14.73 | |||||
Estimated share price (in dollars per share) | $ / shares | $ 15.84 | |||||
Transfers to redeemable common stock | $ (37,028,102) | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share price (in dollars per share) | $ / shares | $ 15 | $ 15 | ||||
Share Repurchase Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of company assets sold that constitute a return of capital as a result of such sale. | asset | 1 | |||||
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 | |||||
Stock requested for redemption, amount | $ 819,634 | |||||
Shares redeemed (in shares) | shares | 135,389 | |||||
Fulfilled redemption requests | $ 2,000,000 | |||||
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) | shares | 0 | 0 | ||||
Share repurchase plan, maximum period of time allowed from date of death or disability of shareholder to request holding period exemption for shares to be repurchased | 2 years | |||||
Stock requested for redemption, amount | $ 11,690,162 | $ 12,443,570 | $ 19,165,825 | |||
Shares redeemed (in shares) | shares | 410,234 | 489,003 | ||||
Unfulfilled repurchase requests | shares | 55,166 | 142,393 | 55,166 | 142,393 | ||
Fulfilled redemption requests | $ 2,000,000 | $ 6,000,000 | $ 6,886,216 | |||
Stock requested for redemption (in shares) | shares | 55,301 | 837,351 | 851,817 | 1,378,877 | ||
Transfers to redeemable common stock | $ 1,219,538 | $ 0 | $ 1,182,360 | $ (37,028,102) | ||
Share Repurchase Plan As Amended [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Holding period of shares repurchased | 1 year | |||||
Accounts Payable and Accrued Liabilities [Member] | Share Repurchase Plan [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Fulfilled redemption requests | $ (817,640) |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published (Details) (Details) - Share Repurchase Plan Pre Published Valuation [Member] - Common Stock [Member] | Mar. 29, 2016 |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published (Details) (Details) - Share Repurchase Plan Post Published Valuation [Member] - Common Stock [Member] | Mar. 30, 2016 |
Class of Stock [Line Items] | |
Less than 1 year | 0.00% |
1 year | 92.50% |
2 years | 95.00% |
3 years | 97.50% |
4 years | 100.00% |
Stockholders' Equity - Narrat_7
Stockholders' Equity - Narrative - Distributions Declared (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Mar. 14, 2018 | |
Class of Stock [Line Items] | ||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | |||||
Share price (in dollars per share) | $ 14.73 | |||||
Distributions declared | $ 11,860,005 | $ 11,664,156 | $ 35,056,265 | $ 34,462,270 | ||
Dividends payable | $ 3,873,086 | $ 3,873,086 | $ 3,953,499 | |||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | |||||
Common stock distribution rate percentage | 6.00% | |||||
Share price (in dollars per share) | $ 15 | $ 15 | ||||
Distributions declared | $ 11,860,005 | 11,664,156 | $ 35,056,265 | $ 34,462,269 | ||
Dividends, common stock, distribution reinvestment plan | $ 5,269,020 | $ 5,672,728 | $ 15,899,564 | $ 17,042,127 | ||
Dividends, common stock, distribution reinvestment plan (in shares) | 332,640 | 373,697 | 1,018,429 | 1,130,971 | ||
Dividends payable | $ 3,873,086 | $ 3,873,086 | $ 3,953,499 | |||
Dividends payable, DRP | $ 1,709,602 | $ 1,860,828 | ||||
Dividends payable, DRP (in shares) | 107,929 | 122,584 |
Stockholders' Equity - Narrat_8
Stockholders' Equity - Narrative - Distributions Paid (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 6,550,164 | $ 5,941,991 | $ 19,085,888 | $ 17,364,466 |
Stock issued during period, dividend reinvestment plan (in shares) | 334,187 | 375,851.383399209 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 5,293,528 | $ 5,705,424 | ||
Distributions paid, common stock, including distribution reinvestment plan | $ 11,843,692 | $ 11,647,415 | $ 35,136,678 | $ 34,539,830 |
Common Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, dividend reinvestment plan (in shares) | 1,028,071 | 1,142,634 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 16,050,790 | $ 17,175,364 |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) - Advisor [Member] - Advisor and its Affiliates [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | $ 13,478,996 | $ 14,689,214 | $ 35,949,389 | $ 35,590,592 | |
Payable (Prepaid) at end of period | (2,176,681) | (2,176,681) | $ (1,534,595) | ||
Investment Management Fees [Member] | Fees to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 4,190,746 | 4,282,469 | 12,525,074 | 12,826,487 | |
Payable (Prepaid) at end of period | (2,487) | (2,487) | (55,865) | ||
Acquisition Expenses [Member] | Business Combination, Acquisition Related Costs [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 5,933 | 0 | 98,594 | 0 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Loan Coordination Fees [Member] | Fees to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 542,833 | 3,562,595 | 542,833 | 3,562,595 | |
Payable (Prepaid) at end of period | (200,000) | (200,000) | 0 | ||
Disposition Fee [Member] | Gain on Sales of Real Estate, Net [Member] [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 310,000 | 0 | 310,000 | 0 | |
Payable (Prepaid) at end of period | (310,000) | (310,000) | 0 | ||
Disposition Transaction Costs [Member] | Gain on Sales of Real Estate, Net [Member] [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 3,252 | 0 | 3,252 | 0 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Property Management, Fees [Member] | Fees to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 1,276,621 | 1,241,104 | 3,756,048 | 3,653,311 | |
Payable (Prepaid) at end of period | (427,803) | (427,803) | (410,424) | ||
Property Management, Reimbursement of Onsite Personnel [Member] | Reimbursement of onsite personnel [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 3,937,443 | 3,947,855 | 11,441,579 | 11,164,448 | |
Payable (Prepaid) at end of period | (1,240,363) | (1,240,363) | (768,107) | ||
Property Management, Other Fees [Member] | Fees to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 907,103 | 540,090 | 2,424,954 | 1,207,246 | |
Payable (Prepaid) at end of period | (49,272) | (49,272) | (41,989) | ||
Property Management, Other Fees - Property Operations [Member] | Fees to Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 28,519 | 25,118 | 78,261 | 71,761 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Property Management, Other Fees - G&A [Member] | General and Administrative Expense [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 14,269 | 9,894 | 76,101 | 29,581 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Other Operating Expenses [Member] | General and Administrative Expense [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 493,915 | 326,867 | 1,322,066 | 867,968 | |
Payable (Prepaid) at end of period | (257,651) | (257,651) | (93,740) | ||
Insurance Proceeds [Member] | General and Administrative Expense [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 0 | 0 | 0 | 0 | |
Payable (Prepaid) at end of period | 0 | 0 | (75,000) | ||
Property insurance [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 891,113 | 353,715 | 1,533,091 | 1,111,904 | |
Payable (Prepaid) at end of period | (500,727) | (500,727) | (101,573) | ||
Rental Revenue [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 14,745 | 6,840 | 44,235 | 6,840 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Acquisition Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 0 | 0 | 48,343 | 0 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Acquisition Fees and Expenses [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 278,311 | 0 | 497,023 | 0 | |
Payable (Prepaid) at end of period | 0 | 0 | (1,607) | ||
Capital Expenditures [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 0 | 0 | 0 | 7,295 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Construction Management Fees [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 492,218 | 162,951 | 953,635 | 351,053 | |
Payable (Prepaid) at end of period | (47,120) | (47,120) | (10,281) | ||
Construction Management Reimbursement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 117,871 | 224,473 | 379,176 | 724,860 | |
Payable (Prepaid) at end of period | (15,038) | (15,038) | (29,203) | ||
Deferred Financing Costs and Other Assets, Net [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 3,594 | 18,923 | 3,594 | 18,923 | |
Payable (Prepaid) at end of period | 0 | 0 | 0 | ||
Selling Commissions [Member] | Additional Paid-in Capital [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Earned) in the period | 0 | $ 0 | 0 | $ 0 | |
Payable (Prepaid) at end of period | $ (127,674) | $ (127,674) | $ (299,952) |
Related Party Arrangements - Na
Related Party Arrangements - Narrative - Investment Management Fee (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Advisor [Member] | Investment Management Fee [Member] | |
Related Party Transaction [Line Items] | |
Monthly investment management fee, percentage | 0.0833% |
Related Party Arrangements - _2
Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Details) - Advisor [Member] - Advisor [Member] - Acquisition Fees and Expenses [Member] | 9 Months Ended |
Sep. 30, 2019 | |
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 - _3
Related Party Arrangements - Narrative - Loan Coordination Fee (Details) - Advisor [Member] - Advisor [Member] - Loan Coordination Fee [Member] | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Related Party Transaction [Line Items] | |
Loan coordination fee, acquisitions | 1.00% |
Loan coordination fee, other than acquisitions | 0.75% |
Loan coordination advisory fee, other loan fees agreed upon | $ 100,000 |
Related Party Arrangements - _4
Related Party Arrangements - Narrative - Property Management Fees and Expenses (Details) - Property Management Fees and Expenses [Member] - Steadfast Management Company [Member] - Property Manager [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |
Term of agreement | 1 year |
Number of uncured days needed to terminate agreement | 60 days |
Notice needed to terminate agreement | 30 days |
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 - _5
Related Party Arrangements - Narrative - Construction Management Fee and Development Services Agreement (Details) - Affiliated Entity [Member] | 9 Months Ended |
Sep. 30, 2019 | |
Pacific Coast Land & Construction, Inc. [Member] | Construction Management Fee [Member] | |
Construction Management Fees and Expenses [Abstract] | |
Construction management agreement, notice of termination of contract, period | 30 days |
Pacific Coast Land & Construction, Inc. [Member] | Construction Management Fee [Member] | Minimum [Member] | |
Construction Management Fees and Expenses [Abstract] | |
Construction management fee, percent | 8.00% |
Pacific Coast Land & Construction, Inc. [Member] | Construction Management Fee [Member] | Maximum [Member] | |
Construction Management Fees and Expenses [Abstract] | |
Construction management fee, percent | 12.00% |
Steadfast Multifamily Development, Inc. [Member] | Development Services Agreement [Member] | |
Development Services Agreement [Abstract] | |
Development services agreement fee, percent | 4.00% |
Development services agreement fee paid over installment period, percent | 75.00% |
Development services agreement fee, period | 14 months |
Development services agreement fee paid at certificate of occupancy, percent | 25.00% |
Related Party Arrangements - _6
Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Details) - Advisor [Member] - Advisor [Member] - Other Operating Expense Reimbursement [Member] | 9 Months Ended |
Sep. 30, 2019quarter | |
Related Party Transaction [Line Items] | |
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 - _7
Related Party Arrangements - Narrative - Disposition Fee (Details) - Advisor [Member] - Advisor [Member] - Disposition Fee [Member] | 9 Months Ended |
Sep. 30, 2019 | |
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% |
Related Party Arrangements - _8
Related Party Arrangements - Narrative - Selling Commissions and Dealer Manager Fees (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Advisor and its Affiliates [Member] | STAR Advisory Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Amended and Restated Advisory Agreement, Paid in Cash, Percent | 50.00% | |
Amended and Restated Advisory Agreement, Paid in Common Stock, Percent | 50.00% | |
Amended and Restated Advisory Agreement, Advisory Fee, Percent of Transaction | 0.50% | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Sales Commissions [Member] | Primary Offering [Member] | ||
Related Party Transaction [Line Items] | ||
Sales commission, percentage of gross offering proceeds | 7.00% | |
Sales commission, percentage of gross offering proceeds, at time of sale | 3.00% | |
Sales commission, percentage of gross offering proceeds, remaining after sale | 4.00% | |
Sales commission, percentage of gross offering proceeds, ratable on each of the first five anniversaries | 1.00% | |
selling commissions on gross offering proceeds from sales of common stock | P4Y | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Dealer Manager Fees [Member] | Primary Offering [Member] | ||
Related Party Transaction [Line Items] | ||
Dealer manager fees, percentage of gross offering proceeds | 3.00% | |
Steadfast Capital Markets Group, LLC [Member] | Dealer Manager [Member] | Sales Commissions and Dealer Manager Fees [Member] | Distribution Reinvestment Plan [Member] | ||
Related Party Transaction [Line Items] | ||
Sales commissions or dealer manager fees paid | $ 0 | |
Advisor [Member] | Advisor and its Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Amount payable | 2,176,681 | $ 1,534,595 |
Additional Paid-in Capital [Member] | Advisor [Member] | Advisor and its Affiliates [Member] | Sales Commissions Paid [Member] | ||
Related Party Transaction [Line Items] | ||
Amount payable | $ 127,674 | $ 299,952 |
Incentive Award Plan and Inde_2
Incentive Award Plan and Independent Director Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amortization of stock-based compensation | $ 39,182 | $ 60,721 | |||
Operating expenses | $ 58,218,148 | $ 63,826,710 | 169,293,653 | 164,633,173 | |
Director Annual Retainer Expense [Member] | Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amount payable | 94,750 | 94,750 | $ 151,750 | ||
Common Stock [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from issuance of common stock | $ 2,000,000 | ||||
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Common Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equal annual vesting installments | 4 years | ||||
Amortization of stock-based compensation | 11,390 | 33,044 | $ 39,182 | 60,721 | |
Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual amount | 55,000 | ||||
Annual amount, 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 | $ 94,750 | $ 235,750 | $ 346,750 | $ 353,250 | |
Directors [Member] | Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | IPO [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares received under plan (in shares) | 3,333 | ||||
Shares entitled to be received upon re-election to Board of Directors (in shares) | 1,666 | ||||
Shares of restricted stock vesting percentage | 25.00% | ||||
Number of equal annual vesting installments | 3 years |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest Rate Cap [Member] - Cash Flow Hedging [Member] - Not Designated as Hedging Instrument [Member] | Sep. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 11 | 22 |
Notional Amount | $ 395,592,350 | $ 713,237,850 |
Weighted Average Rate Cap | 3.46% | 3.46% |
Fair Value | $ 1,902 | $ 207,769 |
One-Month LIBOR [Member] | ||
Derivative [Line Items] | ||
Variable Rate | 2.02% | 2.52% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Unrealized gain (loss) | $ 223,867 | $ (641,013) | |||
Purchase of interest rate cap agreements | 18,000 | 43,200 | |||
Proceeds from settlement of interest rate cap agreements | 0 | 270,000 | $ 270,000 | ||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) | $ 24,144 | $ (62,119) | 223,867 | (641,013) | |
Purchase of interest rate cap agreements | 18,000 | 43,200 | 18,000 | 43,200 | |
Interest Rate Cap [Member] | Deferred Financing Costs [Member] | |||||
Derivative [Line Items] | |||||
Fair value of interest rate cap agreements | 1,902 | 1,902 | $ 207,769 | ||
Interest Rate Cap [Member] | Interest Expense [Member] | |||||
Derivative [Line Items] | |||||
Unrealized gain (loss) | $ 24,144 | $ (62,119) | $ 223,867 | $ (641,013) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 06, 2019 | Nov. 01, 2019 | Oct. 31, 2019 | Oct. 01, 2019 | Sep. 27, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Event [Line Items] | |||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 11,843,692 | $ 11,647,415 | $ 35,136,678 | $ 34,539,830 | |||||
Payments of ordinary dividends, common stock | $ 6,550,164 | $ 5,941,991 | $ 19,085,888 | $ 17,364,466 | |||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 4,009,485 | $ 3,873,086 | |||||||
Share repurchased (in shares) | 55,166 | ||||||||
Shares repurchased | $ 817,639.85 | ||||||||
Average cost per share (in dollars per share) | $ 14.79 | ||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002459 | ||||||||
Subsequent Event [Member] | Dividend Paid [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments of ordinary dividends, common stock | 2,248,504 | 2,163,484 | |||||||
Shares issued pursuant to DRP (in shares) | $ 1,760,981 | 1,709,602 | |||||||
PNC Bank [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Repayments of debt | $ 75,386,000 | ||||||||
Debt instrument, face amount | 80,410,000 | ||||||||
Loan fee amount | 301,538 | ||||||||
Advisory fee, amount | $ 200,000 | ||||||||
PNC Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Repayments of debt | 126,376,000 | ||||||||
Debt instrument, face amount | $ 135,524,000 | ||||||||
Debt instrument, term | 10 years | ||||||||
Loan fee amount | $ 508,215 | ||||||||
Advisory fee, amount | 400,000 | ||||||||
Meadows at N. Richland Hills Financing, 3.56%, Due October 1, 2029 [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, face amount | $ 26,888,000 | ||||||||
Fixed rate | 3.56% | ||||||||
Park Valley Financing, 3.56%, Due October 1, 2029 [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, face amount | $ 49,100,000 | ||||||||
Fixed rate | 3.56% | ||||||||
Peak View by Horseshoe Lake Financing, 3.56%, Due October 1, 2029 [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, face amount | $ 38,421,000 | ||||||||
Fixed rate | 3.56% | ||||||||
Reveal on Cumberland Financing, 3.56%, Due October 1, 2029 [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, face amount | $ 21,115,000 | ||||||||
Fixed rate | 3.56% |