Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 7-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q/A | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NXRT | |
Entity Registrant Name | NexPoint Residential Trust, Inc. | |
Entity Central Index Key | 1620393 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,405,244 |
COMBINED_CONSOLIDATED_BALANCE_
COMBINED CONSOLIDATED BALANCE SHEETS (Unaudited) (Predecessor, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Predecessor | ||
Operating Real Estate Investments | ||
Land (including from VIEs of $156,150,000 and $127,740,000, respectively) | $157,730,000 | $129,320,000 |
Buildings and improvements (including from VIEs of $611,372,378 and $479,936,656, respectively) | 619,741,634 | 488,292,528 |
Intangible lease assets (including from VIEs of $9,432,000 and $17,594,000, respectively) | 9,432,000 | 17,884,000 |
Construction in progress (including from VIEs of $9,009,458 and $6,530,212, respectively) | 9,060,566 | 6,530,212 |
Furniture, fixtures, and equipment (including from VIEs of $10,954,789 and $7,853,753, respectively) | 11,406,368 | 8,287,107 |
Total Gross Operating Real Estate Investments | 807,370,568 | 650,313,847 |
Accumulated depreciation and amortization (including from VIEs of $20,057,871 and $21,109,832, respectively) | -20,515,228 | -21,787,940 |
Total Net Operating Real Estate Investments | 786,855,340 | 628,525,907 |
Cash and cash equivalents (including from VIEs of $29,205,190 and $11,868,779, respectively) | 31,923,332 | 12,661,535 |
Restricted cash (including from VIEs of $59,744,979 and $47,192,578, respectively) | 60,546,240 | 47,817,342 |
Accounts receivable (including from VIEs of $1,546,744 and $1,134,869, respectively) | 1,602,394 | 1,151,225 |
Prepaid and other assets (including from VIEs of $3,137,716 and $2,545,660, respectively) | 3,177,632 | 2,568,933 |
Deferred financing costs, net (including from VIEs of $5,484,552 and $4,535,381, respectively) | 5,647,715 | 4,632,429 |
TOTAL ASSETS | 889,752,653 | 697,357,371 |
LIABILITIES AND EQUITY | ||
Mortgages payable (including from VIEs of $602,717,060 and $480,976,130, respectively) | 611,117,060 | 486,976,130 |
Accounts payable and other accrued liabilities (including from VIEs of $3,985,069 and $5,512,955, respectively) | 4,053,780 | 5,642,297 |
Accrued real estate taxes payable (including from VIEs of $2,561,376 and $3,692,468, respectively) | 2,602,968 | 3,858,836 |
Accrued interest payable (including from VIEs of $1,229,084 and $1,006,420, respectively) | 1,246,393 | 1,030,962 |
Security deposit liability (including from VIEs of $1,497,188 and $1,484,004, respectively) | 1,528,417 | 1,513,431 |
Prepaid rents (including from VIEs of $1,293,984 and $760,046, respectively) | 1,304,947 | 791,810 |
Due to affiliates (including from VIEs of $ and $20,000, respectively) | 20,000 | |
Total Liabilities | 621,853,565 | 499,833,466 |
Invested Equity | 176,549,066 | |
NexPoint Residential Trust, Inc. stockholders' equity: | ||
Preferred Stock: 100,000,000 shares authorized and 0 shares issued at par value $0.01 | ||
Common Stock: 500,000,000 shares authorized and 21,405,244 shares issued at par value $0.01 | 214,052 | |
Additional paid in capital | 240,947,572 | |
Accumulated other comprehensive loss | -575,618 | -305,860 |
Noncontrolling interests | 27,313,082 | 21,280,699 |
Total Equity | 267,899,088 | 197,523,905 |
TOTAL LIABILITIES AND EQUITY | $889,752,653 | $697,357,371 |
COMBINED_CONSOLIDATED_BALANCE_1
COMBINED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares, issued | 21,405,244 | 21,405,244 |
Common stock, par value | $0.01 | $0.01 |
VIE | ||
Land | $156,150,000 | $127,740,000 |
Buildings and improvements | 611,372,378 | 479,936,656 |
Intangible lease assets | 9,432,000 | 17,594,000 |
Construction in progress | 9,009,458 | 6,530,212 |
Furniture, fixtures, and equipment | 10,954,789 | 7,853,753 |
Accumulated depreciation and amortization | 20,057,871 | 21,109,832 |
Cash and cash equivalents | 29,205,190 | 11,868,779 |
Restricted cash | 59,744,979 | 47,192,578 |
Accounts receivable | 1,546,744 | 1,134,869 |
Prepaid and other assets | 3,137,716 | 2,545,660 |
Deferred financing costs, net | 5,484,552 | 4,535,381 |
Mortgages payable | 602,717,060 | 480,976,130 |
Accounts payable and other accrued liabilities | 3,985,069 | 5,512,955 |
Accrued real estate taxes payable | 2,561,376 | 3,692,468 |
Accrued interest payable | 1,229,084 | 1,006,420 |
Security deposit liability | 1,497,188 | 1,484,004 |
Prepaid rents | 1,293,984 | 760,046 |
Due to affiliates | $20,000 |
COMBINED_CONSOLIDATED_STATEMEN
COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) (Predecessor, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Predecessor | ||
Revenues | ||
Rental income | $22,690,537 | $3,560,203 |
Other | 2,846,933 | 416,782 |
Total revenues | 25,537,470 | 3,976,985 |
Expenses | ||
Property operating expenses | 7,319,301 | 1,037,751 |
Acquisition costs | 1,931,601 | 1,894,896 |
Real estate taxes and insurance | 3,377,919 | 532,581 |
Property management fees (related party) | 758,814 | 122,624 |
Management and administrative fees (related party) | 1,276,687 | 108,199 |
Property general and administrative expenses | 1,146,558 | 155,014 |
Depreciation and amortization | 11,610,290 | 2,011,191 |
Total expenses | 27,421,170 | 5,862,256 |
Operating loss | -1,883,700 | -1,885,271 |
Interest expense | -4,008,849 | -737,570 |
Net loss | -5,892,549 | -2,622,841 |
Net loss attributable to noncontrolling interests | -493,696 | -318,030 |
Net loss attributable to invested equity | -5,398,853 | -2,304,811 |
Other comprehensive loss | ||
Net losses related to interest rate cap valuations | -269,758 | |
Total comprehensive loss | -6,162,307 | -2,622,841 |
Comprehensive loss attributable to noncontrolling interest | -517,999 | -318,030 |
Comprehensive loss attributable to invested equity | ($5,644,308) | ($2,304,811) |
Loss per share: Basic and diluted (See Footnote 2) | $0 | $0 |
COMBINED_CONSOLIDATED_STATEMEN1
COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Amortization of deferred financing fees | $306,596 | $25,440 |
Supplemental Disclosure of Noncash Investing and Financing Activities | ||
Change in fair value on hedging derivative instruments | 0 | |
Predecessor | ||
Cash flows from operating activities | ||
Net loss | -5,892,549 | -2,622,841 |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 11,610,290 | 2,011,191 |
Amortization of deferred financing fees | 306,596 | 25,440 |
Change in fair value on derivative instruments included in interest expense | 115,529 | 204,903 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | -451,171 | -273,928 |
Prepaid and other assets | -537,381 | -68,207 |
Restricted cash | -273,451 | -1,527,435 |
Accounts payable and other accrued liabilities | -3,738,478 | 1,276,654 |
Net cash provided by (used in) operating activities | 1,139,385 | -974,223 |
Cash flows from investing activities | ||
Change in restricted cash | -12,455,447 | -4,847,032 |
Additions to operating real estate investments | -6,821,354 | -679,412 |
Acquisitions of operating real estate investments | -143,695,084 | -147,029,766 |
Net cash used in investing activities | -162,971,885 | -152,556,210 |
Cash flows from financing activities | ||
Mortgage proceeds received | 106,386,933 | 118,320,000 |
Mortgage payments | -246,003 | |
Deferred financing fees paid | -1,321,883 | -1,232,819 |
Interest rate cap fees paid | -242,240 | -505,369 |
Due to affiliates | -20,000 | |
Contributions from noncontrolling interest | 6,526,079 | 5,115,648 |
Contributions | 70,011,411 | 36,410,946 |
Net cash provided by financing activities | 181,094,297 | 158,108,406 |
Net increase in cash | 19,261,797 | 4,577,973 |
Cash, beginning of period | 12,661,535 | 189,868 |
Cash, end of period | 31,923,332 | 4,767,841 |
Supplemental Disclosure of Cash Flow Information | ||
Interest paid | 3,371,293 | 752,006 |
Supplemental Disclosure of Noncash Investing and Financing Activities | ||
Capitalized construction costs included in accounts payable and other accrued liabilities | 734,367 | 232,377 |
Change in fair value on hedging derivative instruments | 269,758 | |
Liabilities assumed from acquisitions | 903,280 | 795,251 |
Other assets acquired from acquisitions | 214,365 | 275,016 |
Assumed debt on acquisitions of operating real estate investments | $18,000,000 |
COMBINED_CONSOLIDATED_STATEMEN2
COMBINED CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED) (Predecessor, USD $) | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor |
USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Invested Equity | Noncontrolling Interest | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Beginning Balance, Values at Dec. 31, 2014 | $197,523,905 | $0 | $0 | $0 | $0 | ($305,860) | $176,549,066 | $21,280,699 |
Beginning Balance, Shares at Dec. 31, 2014 | 0 | 0 | ||||||
Contributions | 76,537,490 | 70,011,411 | 6,526,079 | |||||
Other comprehensive loss | -269,758 | -269,758 | ||||||
Net loss | -5,892,549 | -5,398,853 | -493,696 | |||||
Exchange of predecessor invested equity for common stock, Values | 214,052 | 240,947,572 | -241,161,624 | |||||
Exchange of predecessor invested equity for common stock, Shares | 21,405,244 | |||||||
Ending Balances, Values at Mar. 31, 2015 | $267,899,088 | $0 | $214,052 | $240,947,572 | ($575,618) | $27,313,082 | ||
Ending Balances, Shares at Mar. 31, 2015 | 0 | 21,405,244 |
Organization_and_Description_o
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business |
NexPoint Residential Trust, Inc. (the “Company”, “we”, “our”) was incorporated on September 19, 2014, and intends to elect to be taxed as a real estate investment trust (“REIT”) focused on “value-add” multifamily investments primarily located in the Southwestern and Southeastern United States. Substantially all of the Company’s business will be conducted through NexPoint Residential Trust Operating Partnership, L.P. (the “OP”). The Company’s subsidiary, NexPoint Residential Trust Operating Partnership GP, LLC is the sole general partner of the OP. The sole limited partner of the OP is the Company. | |
The Company began operations on March 31, 2015 as a result of the transfer and contribution by NexPoint Credit Strategies Fund ("NHF") of all but one of the multifamily properties owned by NHF through its subsidiary Freedom REIT, LLC ("Freedom REIT"). NHF is a publicly listed closed-end fund that was formed on June 29, 2006 and is managed by NexPoint Advisors, L.P. ("NexPoint Advisors"), an SEC-registered investment adviser and affiliate of Highland Capital Management, L.P. and our advisor. We use the term “predecessor" to mean the carve out business of the entities that owned all or a majority interest in the multifamily properties transferred or contributed to the Company by NHF. On March 31, 2015, NHF distributed all of the outstanding shares of the Company's common stock held by NHF to holders of NHF common shares. We refer to the distribution of our common stock by NHF as the "Spin-Off." The combined consolidated financial statements represent the operations and activities of the predecessor until the Spin-Off. The Company recorded the assets and liabilities associated with the multifamily properties involved in this Spin-Off at their respective historical carrying values at the time of Spin-Off in accordance with the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 505-60, Spinoffs and Reverse Spinoffs. Certain properties included in the Spin-Off have interests owned by parties other than the Company that are reflected at historical carrying values in the financial statements of the Company as “noncontrolling interests”, as required under accounting principles generally accepted in the United States of America (“GAAP”). | |
We are externally managed by NexPoint Real Estate Advisors, L.P., (our "Adviser"), through an Advisory Agreement dated March 16, 2015, by and among the Company, the OP and our Adviser. Our Adviser conducts substantially all of our operations and provides asset management for our real estate investments. We will not have any employees while the Advisory Agreement is in effect. All of our investment decisions will be made by our Adviser, subject to general oversight by our Adviser’s investment committee and our Board of Directors. Our Adviser is an affiliate of NexPoint Advisors. | |
The Company’s investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions and achieve long-term capital appreciation for its stockholders through targeted management and a capex value-add component. Consistent with the Company’s policy to acquire assets for both income and capital gain, the Company intends to hold majority interests in the properties for long-term appreciation and to engage in the business of directly or indirectly acquiring, owning and, operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities primarily in the Southeastern and Southwestern United States consistent with our investment objectives. | |
The Company may also participate with third parties in property ownership, through limited liability companies, funds or other types of co-ownership or acquire real estate or interests in real estate in exchange for the issuance of common stock, units, preferred stock or options to purchase stock. These types of investments may permit the Company to own interests in larger assets without unduly restricting diversification which provides flexibility in structuring the Company’s portfolio. | |
The Company may allocate up to approximately thirty percent of the portfolio to investments in real estate-related debt and securities with the potential for high current income or total returns. These allocations may include first and second mortgages, subordinated, bridge, mezzanine, construction and other loans, as well as debt securities related to or secured by real estate and common and preferred equity securities, which may include securities of other REIT or real estate companies. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Summary of Significant Accounting Policies | |||||||||||||||
2. Summary of Significant Accounting Policies | |||||||||||||||
Predecessor | |||||||||||||||
With the exception of a nominal amount of initial cash funded at inception, the Company did not own any assets prior to March 31, 2015. The business and operations of the Company prior to March 31, 2015 occurred under the predecessor. Our predecessor included all of the properties in our portfolio that were held indirectly by Freedom REIT, a wholly owned subsidiary of NHF, prior to the Spin-Off that occurred on March 31, 2015. Our predecessor was determined in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). References throughout these combined consolidated financial statements to the Company, we, or our, include the activity of the predecessor defined above. | |||||||||||||||
Basis of Accounting | |||||||||||||||
The accompanying unaudited interim combined consolidated financial statements of the Company are prepared in accordance with GAAP and with Rule 10-01 Regulation S-X for interim financial statements. The combined consolidated balance sheets include the accounts of the Company and its subsidiaries. Our predecessor combined consolidated financial statements were derived from the historical accounting records of our predecessor and reflect the historical financial position, results of operations and cash flows for the periods prior to the Spin-Off. All intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting polices consistent with those of the Company. In addition, the Company evaluates relationships with other entities to identify whether there are variable interest entities (“VIE’s”) as required by FASB ASC 810, Consolidation, and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the financial statements in accordance with FASB ASC 810. In the opinion of the Company’s management, the accompanying combined consolidated financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this quarterly report on form 10-Q should be read in conjunction with our predecessor audited financial statements identified as “Freedom REIT Contribution Group” for the year ended December 31, 2014 and notes thereto included in the information statement filed as an exhibit to our registration statement on Form 10 filed on March 12, 2015. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2015. | |||||||||||||||
Use of Estimates | |||||||||||||||
The preparation of the combined consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. | |||||||||||||||
Real Estate Investments | |||||||||||||||
Upon acquisition, in accordance with FASB ASC 805, Business Combinations, the purchase price of a property is allocated to land, building, improvements, furniture, fixtures, and equipment, and intangible lease assets. The purchase price allocation is based on management’s estimate of the property’s “as-if” vacant fair value, which is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the purchase price to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. | |||||||||||||||
If any debt is assumed in an acquisition, the difference between the fair value and the face value of debt is recorded as a premium or discount and amortized to interest expense over the life of the debt assumed. Costs associated with the acquisition of a property, including acquisition fees paid, are expensed as incurred. | |||||||||||||||
The results of operations for acquired properties are included in the combined consolidated statements of operations and comprehensive loss from their respective acquisition dates. | |||||||||||||||
Real estate assets, including land, building, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs associated with the development and improvement of the Company’s real estate assets are capitalized as incurred. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table: | |||||||||||||||
Land | Not depreciated | ||||||||||||||
Building | 30 years | ||||||||||||||
Improvements | 15 years | ||||||||||||||
Furniture, fixtures, and equipment | 3 years | ||||||||||||||
Intangible lease assets | 6 months | ||||||||||||||
Construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete the historical cost of the renovation is placed into service in one of the categories above depending on the renovation project and is depreciated over the estimated useful lives as described in the table above. | |||||||||||||||
Impairment | |||||||||||||||
Real estate assets that are determined to be held and used will be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. For the periods ended March 31, 2015 and 2014, the Company did not record any impairment charges related to real estate assets. | |||||||||||||||
Cash and Cash Equivalents | |||||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. | |||||||||||||||
Restricted Cash | |||||||||||||||
Restricted cash is comprised of amounts set aside for security deposits, capital improvements and lender impound reserve accounts on the Company’s borrowings for escrow deposits, and amounts set aside for real estate taxes and insurance. The following is a summary of the restricted cash held as of March 31, 2015 and December 31, 2014: | |||||||||||||||
31-Mar-15 | December 31, 2014 | ||||||||||||||
Security deposits | $ | 1,498,986 | $ | 1,574,302 | |||||||||||
Operating escrows | 7,648,193 | 7,299,426 | |||||||||||||
Renovation and repair escrows | 51,399,061 | 38,943,614 | |||||||||||||
$ | 60,546,240 | $ | 47,817,342 | ||||||||||||
Deferred Financing Costs | |||||||||||||||
The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to earnings. Deferred financing costs, net of amortization, of $5,647,715 and $4,632,429 are recorded on the accompanying combined consolidated balance sheets as of March 31, 2015 and at December 31, 2014, respectively. Amortization of deferred financing costs of $306,596 and $25,440 is included in interest expense in the combined consolidated statements of operations and comprehensive loss for the three month periods ended March 31, 2015 and 2014, respectively. | |||||||||||||||
Noncontrolling Interests | |||||||||||||||
Noncontrolling interests are comprised of the Company’s joint venture partners’ interests in the joint ventures in multifamily properties that the Company consolidates. The Company reports its joint venture partners’ interests in its consolidated real estate joint ventures and other subsidiary interests held by third parties as noncontrolling interests. The Company records these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investment’s net income or loss and equity contributions and distributions. These noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic ownership percentage. | |||||||||||||||
Accounting for Joint Ventures | |||||||||||||||
The Company first analyzes its investments in joint ventures to determine if the joint venture is a VIE in accordance with FASB ASC 810, and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests that change with changes in the fair value of the VIE’s net assets. The Company assesses at each level of the joint venture whether the entity is (i) a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If an entity in which the Company holds a joint venture interest qualifies as a VIE and the Company is determined to be the primary beneficiary, the joint venture is consolidated. | |||||||||||||||
The following table represents the Company’s investments in joint ventures at March 31, 2015 and December 31, 2014: | |||||||||||||||
Properties | Location | Year Acquired | Effective Ownership | Effective Ownership | |||||||||||
Percentage at March 31, 2015 | Percentage at | ||||||||||||||
31-Dec-14 | |||||||||||||||
The Miramar Apartments | Dallas, Texas | 2013 | 100 | % | 100 | % | |||||||||
Arbors on Forest Ridge | Bedford, Texas | 2014 | 90 | % | 90 | % | |||||||||
Cutter's Point | Richardson, Texas | 2014 | 90 | % | 90 | % | |||||||||
Eagle Crest | Irving, Texas | 2014 | 90 | % | 90 | % | |||||||||
Meridian | Austin, Texas | 2014 | 90 | % | 90 | % | |||||||||
Silverbrook | Grand Prairie, Texas | 2014 | 90 | % | 90 | % | |||||||||
Timberglen | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
Toscana | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Grove at Alban | Frederick, Maryland | 2014 | 76 | % | 76 | % | |||||||||
Willowdale Crossings | Frederick, Maryland | 2014 | 80 | % | 80 | % | |||||||||
Edgewater at Sandy Springs | Atlanta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Beechwood Terrace | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Willow Grove | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Woodbridge | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Abbington Heights | Antioch, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
The Summit at Sabal Park | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Courtney Cove | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Colonial Forest | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Blanding | Orange Park, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Regency | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Jade Park (FKA Wood Forest) | Daytona Beach, Florida | 2014 | 90 | % | 90 | % | |||||||||
Mandarin Reserve (FKAVictoria Park) | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Radbourne Lake | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Timber Creek | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Belmont at Duck Creek | Garland, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Arbors | Tucker, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings at Holcomb Bridge | Roswell, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Knolls | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Regatta Bay | Seabrook, Texas | 2014 | 90 | % | 90 | % | |||||||||
Sabal Palm at Lake Buena Vista | Orlando, Florida | 2014 | 90 | % | 90 | % | |||||||||
Steeplechase Apartments | Fredericksburg, Virginia | 2014 | 85 | % | 85 | % | |||||||||
Barrington Mill | Marietta, Georgia | 2015 | 90 | % | 0 | % | -1 | ||||||||
Cornerstone | Orlando, Florida | 2015 | 90 | % | 0 | % | -1 | ||||||||
Dana Point | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Heatherstone | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Versailles | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
McMillan Place | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
-1 | Properties were acquired in 2015, therefore no ownership as of December 31, 2014. | ||||||||||||||
In connection with its indirect equity investments in the properties acquired, the Company holds LLC membership interests in the operating partnerships. These entities are deemed to be variable interest entities as we have disproportionately few voting rights (in the form of substantive participating rights over all of the decisions that are made that most significantly affect economic performance) relative to our economic interests in the entities and substantially all of the activities of the entities are performed on our behalf. The Company is considered the primary beneficiary of these VIEs as no single party meets both criteria to be the primary beneficiary, and we are the member of the related party group that has both the power to direct the activities that most significantly impact economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Within the related party group, the Company is the most closely associated to the VIE based on the purpose and design of the entity, the size of our ownership interests relative to the other investors, and the rights we hold with respect to the other investors’ equity interests, including our ability to preclude any transfers of their interests and ability to drag them along on the sale of our equity interest. All VIEs are consolidated in the Company’s financial statements. The assets of these VIEs can only be used to settle obligations of the VIEs, and the creditors of these entities have no recourse to other assets of the Company. | |||||||||||||||
The other investor in the VIEs is BH Equity or affiliates of BH Equity. When these VIEs were formed under our predecessor, BH Equity invested in each VIE (with the exception of Miramar) on the same basis as us, receiving a proportional share of each VIE (other than Miramar). Each VIE has a non-recourse mortgage that has standard scope non-recourse carve outs required by agency lenders and generally call for protection by the borrower and the guarantor against losses by the lender for so-called “bad acts,” such as misrepresentations, and may include full recourse liability for more significant events such as bankruptcy. BH Equity, or its affiliates provided non-recourse carve out guarantees for the mortgage indebtedness currently outstanding relating to the Portfolio. In consideration of the guarantees provided by BH Equity and its affiliates, they will earn an additional 10% profit interest in the VIE such that distributions will be made to the members of the VIE pro rata in proportion to their relative percentage interests until the members have received an internal rate of return equal to 13%. Then, generally 80% of the distributions will be paid to us and 20% of the distributions will be paid to BH Equity or an affiliate. | |||||||||||||||
Revenue Recognition | |||||||||||||||
The Company’s primary operations consist of rental income earned from its residents under lease agreements with terms of one year or less. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, pets, administrative, application and other fees and are recognized when earned. | |||||||||||||||
Asset Management & Property Management Services | |||||||||||||||
Management fee expenses are recognized when incurred in accordance with each management agreement, see additional disclosures at Note 8. | |||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||
Allowances for rental income receivables are established when management determines that collections of such receivables are doubtful. Balances are considered past due when payment is not received on the contractual due date. When management has determined that receivables are uncollectible, they are written off against the allowance for doubtful accounts. | |||||||||||||||
Income Taxes | |||||||||||||||
The Company intends to elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its first taxable year of operations as a separate public company. If the Company qualifies for taxation as a REIT, it generally will not be subject to federal corporate income tax on its taxable income that is distributed to its stockholders as long as it distributes at least 90% of its taxable income to its stockholders and meets certain tests regarding the nature of the Company’s income and assets. As a REIT, the Company will not be subject to federal income tax with respect to the portion of the Company’s income that meets certain criteria and is distributed annually to stockholders. The Company intends to operate in a manner that allows the Company to meet the requirements for taxation as a REIT, including creating taxable REIT subsidiaries to hold assets that generate income that would not be consistent with the rules applicable for qualification as a REIT if held directly by the REIT. If the Company were to fail to meet these requirements, it could be subject to federal income tax on the Company’s taxable income at regular corporate rates. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. The Company will also be disqualified for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. | |||||||||||||||
Reportable Segment | |||||||||||||||
Substantially all of the Company’s consolidated net loss is from investments in real estate properties within the multi-family sector that the Company owns through LLCs. The Company evaluates operating performance on an individual property level and views its real estate assets as one industry segment and, accordingly, its properties are aggregated into one reportable segment. | |||||||||||||||
Concentration of Credit Risk | |||||||||||||||
The Company maintains cash balances with high quality financial institutions and periodically evaluates the creditworthiness of such institutions and believes that the Company is not exposed to significant credit risk. Cash balances may be in excess of the amounts insured by the Federal Deposit Insurance Corporation. | |||||||||||||||
Fair Value Measurements | |||||||||||||||
Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB ASC 820, Fair Value Measurement and Disclosures, establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) | |||||||||||||||
· | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. | ||||||||||||||
· | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||
· | Level 3 inputs are the unobservable inputs for the asset or liability, which are typically based on an entity’s own assumption, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on input from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company utilizes an independent third party to perform the valuation analysis for each property acquisition and also to perform the market valuations on the interest rate caps and has established policies, as described above, processes and procedures intended to ensure that the valuation methodologies for investments and interest rate caps are fair and consistent as of the measurement date. | |||||||||||||||
Per Share Data | |||||||||||||||
The Company began operations on March 31, 2015 as described above and therefore no earnings per share have been disclosed on the combined consolidated statements of operations and comprehensive loss since all operating activities of the Company were presented as predecessor operations. Basic earnings per share will be presented for all periods following March 31, 2015 and computed by dividing net income or 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. | |||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||
Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Exchange Act, for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. We may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act. The following recent accounting pronouncements reflect effective dates that delay the adoption until those standards would otherwise apply to private companies. | |||||||||||||||
In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changed the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. As a result, under the new standard the Company does not expect to report discontinued operations for most real estate dispositions. The new standard is effective for any disposals of components of the Company in annual reporting periods beginning on or after December 15, 2014. The Company implemented the provisions of ASU 2014-08 as of January 1, 2015. | |||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods beginning after December 15, 2017 and interim periods within that reporting period. The Company will implement the provisions of ASU 2014-09 as of January 1, 2018. The Company has not yet determined the impact of the new standard on its current policies for revenue recognition. | |||||||||||||||
In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The ASU also significantly changes how to evaluate voting rights for entities that are not similar to limited partnerships when determining whether the entity is a VIE, which may affect entities for which the decision making rights are conveyed though a contractual arrangement. The ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2016. The Company will implement the provisions of ASU 2015-02 as of January 1, 2017. The Company has not yet determined the impact of the new standard on its current policies for consolidation. | |||||||||||||||
In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest, which changes the way reporting enterprises record debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for annual reporting periods beginning after December 15, 2015. The Company will implement the provisions of ASU 2015-03 as of January 1, 2016. The Company does not expect the new standard to have a material impact on its financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||
Acquisitions | 3. Acquisitions | ||||||||||||||||||||||
As of March 31, 2015, through its consolidated joint ventures, the Company has invested in a total of thirty-eight multifamily properties as listed below (property descriptions including rentable square footage, number of units, average effective monthly rent and occupancy are unaudited): | |||||||||||||||||||||||
Multifamily Property Name | Rentable Square Footage | Number of Units | Date Acquired | Average | % Occupied as | % Occupied as | |||||||||||||||||
Effective | of March 31, | of December 31, 2014 (2) | |||||||||||||||||||||
Monthly Rent | 2015 (2) | ||||||||||||||||||||||
Per Unit (1) | |||||||||||||||||||||||
The Miramar Apartments | 183,100 | 314 | 10/31/13 | $ | 552 | 96.5 | % | 92.7 | % | ||||||||||||||
Arbors on Forest Ridge | 154,556 | 210 | 1/31/14 | $ | 781 | 96.2 | % | 92.9 | % | ||||||||||||||
Cutter's Point | 197,972 | 196 | 1/31/14 | $ | 949 | 94.9 | % | 96.4 | % | ||||||||||||||
Eagle Crest | 395,951 | 447 | 1/31/14 | $ | 756 | 95.5 | % | 94.9 | % | ||||||||||||||
Meridian | 148,200 | 200 | 1/31/14 | $ | 776 | 94.5 | % | 95 | % | ||||||||||||||
Silverbrook | 526,138 | 642 | 1/31/14 | $ | 682 | 93.8 | % | 91.7 | % | ||||||||||||||
Timberglen | 221,376 | 304 | 1/31/14 | $ | 717 | 93.8 | % | 93.4 | % | ||||||||||||||
Toscana | 115,400 | 192 | 1/31/14 | $ | 625 | 93.8 | % | 93.2 | % | ||||||||||||||
The Grove at Alban | 267,300 | 290 | 3/10/14 | $ | 941 | 94.1 | % | 89.3 | % | ||||||||||||||
Willowdale Crossings | 411,800 | 432 | 5/15/14 | $ | 996 | 87.5 | % | 82.9 | % | ||||||||||||||
Edgewater at Sandy Springs | 726,774 | 760 | 7/18/14 | $ | 778 | 92 | % | 92.5 | % | ||||||||||||||
Beechwood Terrace | 271,728 | 300 | 7/21/14 | $ | 756 | 96 | % | 98.7 | % | ||||||||||||||
Willow Grove | 229,140 | 244 | 7/21/14 | $ | 704 | 96.7 | % | 94.7 | % | ||||||||||||||
Woodbridge | 246,840 | 220 | 7/21/14 | $ | 840 | 94.5 | % | 90.5 | % | ||||||||||||||
Abbington Heights | 238,974 | 274 | 8/1/14 | $ | 755 | 96.4 | % | 96 | % | ||||||||||||||
The Summit at Sabal Park | 204,545 | 252 | 8/20/14 | $ | 802 | 93.3 | % | 88.5 | % | ||||||||||||||
Courtney Cove | 224,958 | 324 | 8/20/14 | $ | 694 | 94.1 | % | 95.1 | % | ||||||||||||||
Colonial Forest | 160,093 | 174 | 8/20/14 | $ | 612 | 90.8 | % | 94.8 | % | ||||||||||||||
Park at Blanding | 116,410 | 117 | 8/20/14 | $ | 753 | 94 | % | 88.9 | % | ||||||||||||||
Park at Regency | 134,253 | 159 | 8/20/14 | $ | 735 | 93.1 | % | 91.2 | % | ||||||||||||||
Jade Park (FKA Wood Forest) | 118,392 | 144 | 8/20/14 | $ | 698 | 91 | % | 96.5 | % | ||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 449,276 | 520 | 9/15/14 | $ | 677 | 95.4 | % | 95.4 | % | ||||||||||||||
Radbourne Lake | 246,599 | 225 | 9/30/14 | $ | 930 | 93.8 | % | 92.4 | % | ||||||||||||||
Timber Creek | 248,391 | 352 | 9/30/14 | $ | 716 | 88.1 | % | 93.2 | % | ||||||||||||||
Belmont at Duck Creek | 198,279 | 240 | 9/30/14 | $ | 825 | 93.3 | % | 93.8 | % | ||||||||||||||
The Arbors | 127,536 | 140 | 10/16/14 | $ | 734 | 91.4 | % | 92.1 | % | ||||||||||||||
The Crossings | 377,840 | 380 | 10/16/14 | $ | 699 | 96.3 | % | 94.7 | % | ||||||||||||||
The Crossings at Holcomb Bridge | 247,982 | 268 | 10/16/14 | $ | 729 | 95.1 | % | 93.7 | % | ||||||||||||||
The Knolls | 311,160 | 312 | 10/16/14 | $ | 778 | 93.9 | % | 95.2 | % | ||||||||||||||
Regatta Bay | 200,440 | 240 | 11/4/14 | $ | 955 | 95 | % | 96.3 | % | ||||||||||||||
Sabal Palm at Lake Buena Vista | 370,768 | 400 | 11/5/14 | $ | 1,053 | 93 | % | 95 | % | ||||||||||||||
Steeplechase Apartments | 115,712 | 156 | 12/18/14 | $ | 1,005 | 89.1 | % | 92.9 | % | ||||||||||||||
McMillan Place | 290,051 | 402 | 1/15/15 | $ | 667 | 92.3 | % | -3 | |||||||||||||||
Cornerstone | 317,565 | 430 | 1/15/15 | $ | 827 | 90.7 | % | -3 | |||||||||||||||
Barrington Mill | 692,180 | 752 | 2/6/15 | $ | 709 | 96 | % | -3 | |||||||||||||||
Dana Point | 206,276 | 264 | 2/26/15 | $ | 772 | 94.7 | % | -3 | |||||||||||||||
Heatherstone | 115,615 | 152 | 2/26/15 | $ | 762 | 92.8 | % | -3 | |||||||||||||||
Versailles | 300,908 | 388 | 2/26/15 | $ | 800 | 92 | % | -3 | |||||||||||||||
10,110,478 | 11,816 | ||||||||||||||||||||||
-1 | Average effective monthly rent per unit is equal to the average of (i) the contractual rent for commenced leases as of March 31, 2015 minus any tenant concession over the term of the lease, divided by (ii) the number of units under commenced leases as of March 31, 2015. | ||||||||||||||||||||||
-2 | Percent occupied is calculated as (i) the number of units occupied as of March 31, 2015, and at December 31, 2014, divided by total number of units, expressed as a percentage. | ||||||||||||||||||||||
-3 | Properties Acquired in 2015. |
Real_Estate_Investments
Real Estate Investments | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||
Real Estate Investments | 4. Real Estate Investments | ||||||||||||||||||||||||
As of March 31, 2015, the major components of the Company’s investments in multifamily properties, were as follows (unaudited): | |||||||||||||||||||||||||
Property | Land | Building and Improvements | Intangible Lease Assets | Construction in Progress | Furniture, Fixtures and Equipment | Totals | |||||||||||||||||||
The Miramar Apartments | $ | 1,580,000 | $ | 8,369,256 | $ | — | $ | 51,108 | $ | 451,579 | $ | 10,451,944 | |||||||||||||
Arbors on Forest Ridge | 2,330,000 | 10,860,861 | — | — | 287,754 | 13,478,616 | |||||||||||||||||||
Cutter's Point | 3,330,000 | 12,666,499 | — | 24,701 | 371,423 | 16,392,623 | |||||||||||||||||||
Eagle Crest | 5,450,000 | 21,502,269 | — | 255,092 | 482,312 | 27,689,673 | |||||||||||||||||||
Meridian | 2,310,000 | 10,285,125 | — | 324 | 234,190 | 12,829,639 | |||||||||||||||||||
Silverbrook | 4,860,000 | 24,593,306 | — | 160,361 | 1,007,362 | 30,621,029 | |||||||||||||||||||
Timberglen | 2,510,000 | 14,085,555 | — | 81,645 | 332,500 | 17,009,701 | |||||||||||||||||||
Toscana | 1,730,000 | 7,006,461 | — | 80,284 | 261,700 | 9,078,445 | |||||||||||||||||||
The Grove at Alban | 3,640,000 | 18,928,816 | — | 92,690 | 297,617 | 22,959,123 | |||||||||||||||||||
Willowdale Crossings | 4,650,000 | 35,540,995 | — | 65,264 | 486,529 | 40,742,787 | |||||||||||||||||||
Edgewater at Sandy | 14,290,000 | 41,318,896 | — | 1,378,139 | 1,229,042 | 58,216,076 | |||||||||||||||||||
Springs | |||||||||||||||||||||||||
Beechwood Terrace | 1,390,000 | 20,124,973 | — | 38,727 | 231,435 | 21,785,135 | |||||||||||||||||||
Willow Grove | 3,940,000 | 9,990,585 | — | 539,035 | 174,319 | 14,643,939 | |||||||||||||||||||
Woodbridge | 3,650,000 | 12,063,289 | — | 305,915 | 215,642 | 16,234,845 | |||||||||||||||||||
Abbington Heights | 1,770,000 | 16,117,302 | — | 39,666 | 221,456 | 18,148,424 | |||||||||||||||||||
The Summit at Sabal Park | 5,770,000 | 13,021,170 | — | 125,330 | 274,165 | 19,190,665 | |||||||||||||||||||
Courtney Cove | 5,880,000 | 12,569,229 | — | 153,913 | 405,233 | 19,008,375 | |||||||||||||||||||
Colonial Forest | 2,090,000 | 3,134,390 | — | 289,101 | 200,304 | 5,713,794 | |||||||||||||||||||
Park at Blanding | 2,610,000 | 3,874,234 | — | 24,781 | 127,263 | 6,636,279 | |||||||||||||||||||
Park at Regency | 2,620,000 | 5,352,249 | — | 138,050 | 256,352 | 8,366,651 | |||||||||||||||||||
Jade Park (FKA Wood Forest) | 1,490,000 | 6,166,312 | — | 224,596 | 144,067 | 8,024,975 | |||||||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 5,610,000 | 19,699,737 | — | 741,759 | 417,614 | 26,469,110 | |||||||||||||||||||
Radbourne Lake | 2,440,000 | 20,950,098 | — | 168,636 | 430,825 | 23,989,559 | |||||||||||||||||||
Timber Creek | 11,260,000 | 10,755,680 | — | 1,652,306 | 153,543 | 23,821,529 | |||||||||||||||||||
Belmont at Duck Creek | 1,910,000 | 16,875,625 | — | 9,894 | 221,835 | 19,017,354 | |||||||||||||||||||
The Arbors | 1,730,000 | 5,859,987 | 199,000 | 403,110 | 98,776 | 8,290,873 | |||||||||||||||||||
The Crossings | 4,150,000 | 16,139,574 | 834,000 | 611,754 | 255,384 | 21,990,712 | |||||||||||||||||||
The Crossings at Holcomb | 5,560,000 | 9,811,712 | 616,000 | 316,550 | 201,804 | 16,506,065 | |||||||||||||||||||
Bridge | |||||||||||||||||||||||||
The Knolls | 3,410,000 | 16,935,843 | 759,000 | 203,470 | 231,605 | 21,539,917 | |||||||||||||||||||
Regatta Bay | 1,660,000 | 15,803,412 | 714,000 | 17,186 | 167,550 | 18,362,149 | |||||||||||||||||||
Sabal Palm at Lake Buena | 7,580,000 | 40,133,564 | 1,387,000 | 282,225 | 455,566 | 49,838,356 | |||||||||||||||||||
Vista | |||||||||||||||||||||||||
Steeplechase Apartments | 6,120,000 | 10,373,000 | 492,000 | 116,345 | 71,768 | 17,173,113 | |||||||||||||||||||
Barrington Mill | 10,170,000 | 45,912,126 | 1,814,000 | 264,359 | 138,978 | 58,299,463 | |||||||||||||||||||
Cornerstone | 1,500,000 | 29,322,368 | 894,000 | 201,848 | 77,375 | 31,995,590 | |||||||||||||||||||
Dana Point | 4,090,000 | 11,548,000 | 362,000 | — | 236,502 | 16,236,502 | |||||||||||||||||||
Heatherstone | 2,320,000 | 6,787,000 | 208,000 | — | 136,275 | 9,451,275 | |||||||||||||||||||
Versailles | 6,720,000 | 18,519,000 | 581,000 | — | 347,275 | 26,167,275 | |||||||||||||||||||
McMillan Place | 3,610,000 | 16,743,136 | 572,000 | 2,404 | 71,448 | 20,998,988 | |||||||||||||||||||
157,730,000 | 619,741,634 | 9,432,000 | 9,060,566 | 11,406,368 | 807,370,568 | ||||||||||||||||||||
Accumulated depreciation | — | (13,913,263 | ) | (5,351,567 | ) | — | (1,250,398 | ) | (20,515,228 | ) | |||||||||||||||
and amortization | |||||||||||||||||||||||||
$ | 157,730,000 | $ | 605,828,371 | $ | 4,080,433 | $ | 9,060,566 | $ | 10,155,970 | $ | 786,855,340 | ||||||||||||||
As of December 31, 2014, the major components of the Company’s investments in multifamily properties, were as follows: | |||||||||||||||||||||||||
Property | Land | Building and Improvements | Intangible Lease Assets | Construction in Progress | Furniture, Fixtures and Equipment | Totals | |||||||||||||||||||
The Miramar Apartments | $ | 1,580,000 | $ | 8,355,872 | $ | 290,000 | $ | — | $ | 433,354 | $ | 10,659,226 | |||||||||||||
Arbors on Forest Ridge | 2,330,000 | 10,831,742 | 312,000 | 1,556 | 263,482 | 13,738,780 | |||||||||||||||||||
Cutter's Point | 3,330,000 | 12,619,109 | 352,000 | 27,633 | 326,259 | 16,655,001 | |||||||||||||||||||
Eagle Crest | 5,450,000 | 21,465,476 | 654,000 | 125,369 | 463,430 | 28,158,275 | |||||||||||||||||||
Meridian | 2,310,000 | 10,258,263 | 299,000 | — | 198,449 | 13,065,712 | |||||||||||||||||||
Silverbrook | 4,860,000 | 24,543,851 | 793,000 | 92,461 | 903,432 | 31,192,744 | |||||||||||||||||||
Timberglen | 2,510,000 | 14,076,404 | 408,000 | 375 | 309,404 | 17,304,183 | |||||||||||||||||||
Toscana | 1,730,000 | 6,961,530 | 230,000 | 23,145 | 229,169 | 9,173,844 | |||||||||||||||||||
The Grove at Alban | 3,640,000 | 18,913,344 | 796,000 | 104,844 | 228,722 | 23,682,910 | |||||||||||||||||||
Willowdale Crossings | 4,650,000 | 35,543,667 | 1,172,000 | 1,200 | 401,169 | 41,768,036 | |||||||||||||||||||
Edgewater at Sandy | 14,290,000 | 41,094,413 | 1,930,000 | 1,261,227 | 1,005,747 | 59,581,387 | |||||||||||||||||||
Springs | |||||||||||||||||||||||||
Beechwood Terrace | 1,390,000 | 19,680,820 | 409,000 | 164,621 | 157,222 | 21,801,663 | |||||||||||||||||||
Willow Grove | 3,940,000 | 9,512,555 | 298,000 | 647,574 | 91,824 | 14,489,953 | |||||||||||||||||||
Woodbridge | 3,650,000 | 12,020,293 | 334,000 | 305,915 | 178,974 | 16,489,182 | |||||||||||||||||||
Abbington Heights | 1,770,000 | 15,863,951 | 400,000 | 110,310 | 170,595 | 18,314,856 | |||||||||||||||||||
The Summit at Sabal Park | 5,770,000 | 12,972,098 | 404,000 | 81,884 | 221,200 | 19,449,182 | |||||||||||||||||||
Courtney Cove | 5,880,000 | 12,486,882 | 431,000 | 80,447 | 311,573 | 19,189,902 | |||||||||||||||||||
Colonial Forest | 2,090,000 | 3,116,687 | 186,000 | 242,841 | 166,378 | 5,801,906 | |||||||||||||||||||
Park at Blanding | 2,610,000 | 3,691,461 | 177,000 | 183,739 | 111,158 | 6,773,358 | |||||||||||||||||||
Park at Regency | 2,620,000 | 5,343,919 | 220,000 | 60,558 | 196,138 | 8,440,615 | |||||||||||||||||||
Jade Parl (FKA Wood Forest) | 1,490,000 | 6,061,395 | 200,000 | 218,688 | 89,406 | 8,059,489 | |||||||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 5,610,000 | 19,679,711 | 701,000 | 701,020 | 300,213 | 26,991,944 | |||||||||||||||||||
Radbourne Lake | 2,440,000 | 20,830,406 | 652,000 | 148,114 | 355,391 | 24,425,911 | |||||||||||||||||||
Timber Creek | 11,260,000 | 10,704,510 | 799,000 | 948,430 | 113,475 | 23,825,415 | |||||||||||||||||||
Belmont at Duck Creek | 1,910,000 | 16,654,792 | 436,000 | 107,063 | 134,860 | 19,242,715 | |||||||||||||||||||
The Arbors | 1,730,000 | 5,844,105 | 199,000 | 162,100 | 44,827 | 7,980,032 | |||||||||||||||||||
The Crossings | 4,150,000 | 16,138,747 | 834,000 | 491,672 | 126,678 | 21,741,097 | |||||||||||||||||||
The Crossings at Holcomb | 5,560,000 | 9,788,284 | 616,000 | 48,173 | 66,311 | 16,078,768 | |||||||||||||||||||
Bridge | |||||||||||||||||||||||||
The Knolls | 3,410,000 | 16,931,399 | 759,000 | 107,984 | 124,357 | 21,332,740 | |||||||||||||||||||
Regatta Bay | 1,660,000 | 15,803,412 | 714,000 | 1,014 | 110,384 | 18,288,810 | |||||||||||||||||||
Sabal Palm at Lake Buena | 7,580,000 | 40,130,430 | 1,387,000 | 80,255 | 438,526 | 49,616,211 | |||||||||||||||||||
Vista | |||||||||||||||||||||||||
Steeplechase Apartments | 6,120,000 | 10,373,000 | 492,000 | — | 15,000 | 17,000,000 | |||||||||||||||||||
129,320,000 | 488,292,528 | 17,884,000 | 6,530,212 | 8,287,107 | 650,313,847 | ||||||||||||||||||||
Accumulated depreciation | — | (8,533,478 | ) | (12,442,170 | ) | — | (812,292 | ) | (21,787,940 | ) | |||||||||||||||
and amortization | |||||||||||||||||||||||||
$ | 129,320,000 | $ | 479,759,050 | $ | 5,441,830 | $ | 6,530,212 | $ | 7,474,815 | $ | 628,525,907 | ||||||||||||||
Depreciation expense was $5,818,665 and $735,525 for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
Amortization expense related to the Company’s intangible lease assets was $5,791,625 and $1,275,666 for the three months ended March 31, 2015 and 2014, respectively. Amortization expense related to the Company’s intangible lease assets for the remainder of the year ended December 31, 2015 is expected to be $4,080,433. Due to the six month useful life attributable to intangible lease assets, the value of intangible lease assets on any acquisition prior to September 30, 2014 has been fully amortized and the assets and related accumulated amortization have been written-off as of March 31, 2015. |
Pro_Forma_Financial_Informatio
Pro Forma Financial Information (Unaudited) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Pro Forma Financial Information [Abstract] | |||||||||
Pro Forma Financial Information (Unaudited) | 5. Pro Forma Financial Information (Unaudited) | ||||||||
The following table summarizes, on an unaudited basis, the combined consolidated pro forma results of operations of the Company for the periods ended March 31, 2015 and 2014. The Company acquired thirty seven properties during the period January 1, 2014 through March 31, 2015 and one additional property subsequent to the period on April 15, 2015 (see footnote 10). The following unaudited pro forma information for the periods ended March 31, 2015 and 2014 has been provided to give effect to the acquisitions of the properties as if they had occurred on January 1, 2014. This pro forma financial information is not intended to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Actual | |||||||||
Total revenue | $ | 25,537,470 | $ | 3,976,985 | |||||
Net loss | (5,892,549 | ) | (2,622,841 | ) | |||||
Pro forma: | |||||||||
Total revenues | 28,286,111 | 27,048,805 | |||||||
Net income (loss) | 1,114,373 | (11,038,316 | ) | ||||||
The pro forma information includes adjustments to actual revenues and expenses recorded to reflect operations of all properties acquired as of and subsequent to March 31, 2015, assuming each was owned by the Company and operating as of January 1, 2014. Net loss has been adjusted as follows: (1) interest expense has been adjusted to reflect the additional interest expense that would have been charged had the Company acquired the properties on January 1, 2014 under the same financing arrangements as existed as of the acquisition date; (2) depreciation and amortization has been adjusted based on the Company’s basis in the properties, and half of intangible lease assets have been amortized during the three month period ended March 31, 2014 due to the six month life; (3) acquisition costs have been excluded for pro forma purposes for the acquisition costs of the properties; (4) management and advisory fees have been adjusted for based on pro forma basis; and (5) general and administrative fees expected to be incurred on a quarterly basis at a parent level have been adjusted for based on a quarterly estimate of $950,000. | |||||||||
Debt
Debt | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||
Debt | 6. Debt | |||||||||||||||||||||
Mortgages Payable | ||||||||||||||||||||||
The following table contains summary information concerning the mortgage debt that is nonrecourse to the Company and encumbers the multifamily properties as of March 31, 2015: | ||||||||||||||||||||||
Property | Type | Term (months) | Amortization (months) | Outstanding Principal | Interest Rate (1) | Maturity Date | ||||||||||||||||
The Miramar Apartments | -2 | Floating | 120 | 360 | $ | 8,400,000 | 2.40% | 2/1/25 | ||||||||||||||
Arbors on Forest Ridge | -3 | Floating | 84 | 360 | 10,244,000 | 2.91% | 2/1/21 | |||||||||||||||
Cutter's Point | -3 | Floating | 84 | 360 | 12,676,000 | 2.91% | 2/1/21 | |||||||||||||||
Eagle Crest | -3 | Floating | 84 | 360 | 21,860,000 | 2.91% | 2/1/21 | |||||||||||||||
Meridian | -3 | Floating | 84 | 360 | 9,840,000 | 2.91% | 2/1/21 | |||||||||||||||
Silverbrook | -3 | Floating | 84 | 360 | 24,320,000 | 2.91% | 2/1/21 | |||||||||||||||
Timberglen | -3 | Floating | 84 | 360 | 13,560,000 | 2.91% | 2/1/21 | |||||||||||||||
Toscana | -3 | Floating | 84 | 360 | 7,100,000 | 2.91% | 2/1/21 | |||||||||||||||
Beechwood Terrace | -4 | Floating | 84 | 360 | 17,120,000 | 2.26% | 8/1/21 | |||||||||||||||
Colonial Forest | -4 | Floating | 84 | 360 | 4,125,000 | 2.34% | 9/1/21 | |||||||||||||||
Courtney Cove | -4 | Floating | 84 | 360 | 14,210,000 | 2.26% | 9/1/21 | |||||||||||||||
Edgewater at Sandy Springs | -4 | Floating | 84 | 360 | 43,550,000 | 2.27% | 8/1/21 | |||||||||||||||
The Grove at Alban | -4 | Floating | 84 | 360 | 18,720,000 | 2.72% | 4/1/21 | |||||||||||||||
Park at Blanding | -4 | Floating | 84 | 360 | 4,875,000 | 2.34% | 9/1/21 | |||||||||||||||
Park at Regency | -4 | Floating | 84 | 360 | 6,225,000 | 2.34% | 9/1/21 | |||||||||||||||
The Summit at Sabal Park | -4 | Floating | 84 | 360 | 14,287,000 | 2.26% | 9/1/21 | |||||||||||||||
Mandarin Reserve (FKA Victoria Park) | -4 | Floating | 84 | 360 | 19,650,000 | 2.28% | 10/1/21 | |||||||||||||||
Willow Grove | -4 | Floating | 84 | 360 | 11,000,000 | 2.29% | 8/1/21 | |||||||||||||||
Willowdale Crossings | -4 | Floating | 84 | 360 | 32,800,000 | 2.45% | 6/1/21 | |||||||||||||||
Jade Park (FKA Wood Forest) | -4 | Floating | 84 | 360 | 5,850,000 | 2.33% | 9/1/21 | |||||||||||||||
Woodbridge | -4 | Floating | 84 | 360 | 12,800,000 | 2.27% | 8/1/21 | |||||||||||||||
Steeplechase | -4 | Floating | 84 | 360 | 13,600,000 | 2.29% | 1/1/22 | |||||||||||||||
Barrington Mill | -4 | Floating | 84 | 360 | 43,500,000 | 2.14% | 3/1/22 | |||||||||||||||
Dana Point | -4 | Floating | 84 | 360 | 12,176,000 | 2.23% | 3/1/22 | |||||||||||||||
Heatherstone | -4 | Floating | 84 | 360 | 7,087,000 | 2.26% | 3/1/22 | |||||||||||||||
Versailles | -4 | Floating | 84 | 360 | 19,623,000 | 2.21% | 3/1/22 | |||||||||||||||
Timber Creek | -5 | Floating | 120 | 360 | 19,482,000 | 2.00% | 10/1/24 | |||||||||||||||
Radbourne Lake | -5 | Floating | 120 | 360 | 19,213,000 | 1.99% | 10/1/24 | |||||||||||||||
The Arbors | -5 | Floating | 120 | 360 | 5,812,000 | 1.99% | 11/1/24 | |||||||||||||||
The Crossings | -5 | Floating | 120 | 360 | 16,200,000 | 1.99% | 11/1/24 | |||||||||||||||
The Crossings at Holcomb Bridge | -5 | Floating | 120 | 360 | 12,450,000 | 1.99% | 11/1/24 | |||||||||||||||
The Knolls | -5 | Floating | 120 | 360 | 16,038,000 | 1.99% | 11/1/24 | |||||||||||||||
McMillan Place | -5 | Floating | 120 | 360 | 15,738,000 | 2.10% | 2/1/25 | |||||||||||||||
Abbington Heights | -6 | Fixed | 120 | 360 | 10,544,915 | 3.79% | 9/1/22 | |||||||||||||||
Belmont at Duck Creek | -7 | Fixed | 84 | 360 | 11,480,786 | 4.68% | 9/1/18 | |||||||||||||||
Regatta Bay | -8 | Fixed | 480 | 480 | 13,131,125 | 4.85% | 8/1/50 | |||||||||||||||
Sabal Palm at Lake Buena Vista | -9 | Floating | 120 | 360 | 37,680,000 | 1.99% | 12/1/24 | |||||||||||||||
Cornerstone | -10 | Fixed | 120 | 360 | 23,775,000 | 4.24% | 3/1/23 | |||||||||||||||
$ | 610,742,826 | |||||||||||||||||||||
Valuation adjustments | 374,234 | |||||||||||||||||||||
$ | 611,117,060 | |||||||||||||||||||||
-1 | Interest rate is based on one month LIBOR plus an applicable margin, except for Abbington Heights (based on fixed rate of 3.79%), Belmont at Duck Creek (based on fixed rate of 4.68%), Regatta Bay (based on fixed rate of 4.85%) and Cornerstone (based on a blended fixed rate of 4.24%). One month LIBOR as of March 31, 2015 was 0.18%. | |||||||||||||||||||||
-2 | Loan can be pre-paid within the first 12 months of the term at par plus 1.00% of the unpaid principal balance, loan can be pre-paid starting in the 13th month of the term through the 24th month of the term at par plus 0.50% of the unpaid principal balance, loan can be pre-paid starting in the 25th month of the term through the 36th month of the term at par plus 0.25% of the unpaid principal balance and at par during the last two years of the term. | |||||||||||||||||||||
-3 | Loan can be pre-paid starting in the 25th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. | |||||||||||||||||||||
-4 | Loans can be pre-paid starting in the 13th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. | |||||||||||||||||||||
-5 | Loans can be pre-paid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term. | |||||||||||||||||||||
-6 | Debt was assumed upon acquisition of this property and approximated fair value. The loan is open to pre-payment in the last three months of the term. | |||||||||||||||||||||
-7 | Debt was assumed upon acquisition of this property. An adjustment was made to approximate the debt to fair value. The loan is open to pre-payment in the last six months of the term. | |||||||||||||||||||||
-8 | Debt was assumed upon acquisition of this property and is a Housing and Urban Development (“HUD”) loan that is fully amortizing and approximated fair value. Debt is insured by HUD under the Section 221(d)(4) program. | |||||||||||||||||||||
-9 | Loan can be pre-paid in the first 12 months of the term at par plus 5.00% and can also be prepaid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term. | |||||||||||||||||||||
-10 | Debt in the amount of $18,000,000 was assumed upon acquisition and approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013 and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months interest only. The first mortgage is prepayable and subject to yield maintenance from month 13 through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. Concurrently with the acquisition of the property, we placed a supplemental second mortgage on the property with a principal amount of $5,775,000, a fixed rate of 4.70%, and maturing conterminously with the first mortgage. The supplemental second mortgage is prepayable and subject to yield maintenance from the date of issuance through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. As of March 31, 2015, the total indebtedness secured by the property is $23,775,000 and has a blended pay rate of 4.24%. | |||||||||||||||||||||
The weighted average interest rate of our mortgage indebtedness was 2.53% as of March 31, 2015 and 2.65% as of December 31, 2014. Each of our mortgages is a non-recourse obligation subject to customary exceptions. The loan agreements contain customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. | ||||||||||||||||||||||
Schedule of Debt Maturities | ||||||||||||||||||||||
Debt maturities scheduled for each of the next five years and thereafter, are as follows: | ||||||||||||||||||||||
Remainder of 2015 | $ | 829,539 | ||||||||||||||||||||
2016 | 4,632,983 | |||||||||||||||||||||
2017 | 8,087,338 | |||||||||||||||||||||
2018 | 13,668,179 | |||||||||||||||||||||
2019 | 14,583,922 | |||||||||||||||||||||
Thereafter | 568,940,865 | |||||||||||||||||||||
Total | $ | 610,742,826 | ||||||||||||||||||||
Fair_Value_Measures_and_Financ
Fair Value Measures and Financial Instruments | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Fair Value Measures and Financial Instruments | 7. Fair Value Measures and Financial Instruments | |||||||||||||||||||||||||||
From time to time, the Company records certain assets and liabilities at fair value. Real estate assets are recorded at fair value at acquisition and may be stated at fair value if they become impaired in a given period and may be stated at fair value if they are held for sale and the fair value of such assets is below historical cost. Additionally, the Company records derivative financial instruments at fair value. The Company also uses fair value metrics to evaluate the carrying values of its real estate assets and for the disclosure of certain financial instruments. | ||||||||||||||||||||||||||||
Real estate acquisitions | ||||||||||||||||||||||||||||
As of December 31, 2014 and as further discussed in Notes 2 and 3, the Company acquired thirty two properties for approximately $633,200,000. The purchase prices of these properties were allocated as follows: land $129,320,000, building, building improvements, furniture, fixtures and equipment $485,996,000, and intangible lease assets $17,884,000 based on their estimated fair values using Level 3 inputs. Of the thirty two properties acquired there were three properties with assumed debt which was recorded based on their estimated fair value using Level 2 inputs. | ||||||||||||||||||||||||||||
During the period ended March 31, 2015 and as further discussed in Notes 2 and 3, the Company acquired six additional properties for approximately $162,588,400. The purchase prices of these properties were allocated as follows: land $28,410,000, building, building improvements, furniture, fixtures, and equipment $129,747,400, and intangible lease assets $4,431,000 based on their estimated fair values using Level 3 inputs. Of six properties acquired there was one property with assumed debt which was recorded based on its estimated fair value using Level 2 inputs. | ||||||||||||||||||||||||||||
As discussed in Note 2, fair value measurements at the time of acquisition were determined by management using available market information and appropriate valuation methodologies available to management for the period ended March 31, 2015 and at December 31, 2014. Critical estimates in valuing certain assets and liabilities and the assumptions of what marketplace participants would use in making estimates of fair value include, but are not limited to: future expected cash flows, estimated carrying costs, estimated origination costs, lease up periods and tenant risk attributes, as well as assumptions about the period of time the acquired lease will continue to be used in the Company’s portfolio and discount rates used in these calculations. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. Assumptions may not always reflect unanticipated events and changes in circumstances may occur. In making such estimates, management uses a number of sources, including appraisals, third party cost segregation studies or other market data, as well as, information obtained in its pre-acquisition due diligence, marketing and leasing activities. Considerable judgment is necessary to interpret market data and estimate fair value. Accordingly, there can be no assurance that the estimates discussed herein, using Level 3 inputs, are indicative of the amounts the Company could realize on disposition of the real estate assets or other financial instruments. The use of different market assumptions and/or estimation methodologies could have a material effect on the estimated fair value amounts. The following table represents critical assumptions used and the ranges for those assumptions: | ||||||||||||||||||||||||||||
Going-in cap rate | 4.8% - 6.2% | |||||||||||||||||||||||||||
Terminal cap rate | 5.2% - 6.8% | |||||||||||||||||||||||||||
Discount rate | 5.5% - 10.7% | |||||||||||||||||||||||||||
Growth rate revenues | 1.6% - 3.3% | |||||||||||||||||||||||||||
Growth rate operating costs | 1.6% - 3.3% | |||||||||||||||||||||||||||
Derivative financial instruments and hedging activities | ||||||||||||||||||||||||||||
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. | ||||||||||||||||||||||||||||
The Company’s objectives in using interest rate derivatives are to add stability to interest expense related to mortgage debt and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate caps related to mortgage debt as part of its interest rate risk management strategy. Interest rate caps involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The rate caps have terms ranging from 3-4 years. During the three-months ended March 31, 2015 and 2014, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The derivatives cap our variable interest rate at a weighted average interest rate of 6.00%. | ||||||||||||||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive loss (“OCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three-months ended March 31, 2015, the Company recorded no ineffectiveness in earnings attributable to derivatives designated as cash flow hedges. During the three-months ended March 31, 2014, the Company had no derivatives designated as cash flow hedges. | ||||||||||||||||||||||||||||
As of March 31, 2015, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: | ||||||||||||||||||||||||||||
Product | Number of Instruments | Notional | ||||||||||||||||||||||||||
Interest rate caps | 14 | $ | 246,999,000 | |||||||||||||||||||||||||
Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to interest rate movements but do not meet the strict hedge accounting requirements of FASB ASC 815, Derivatives and Hedging. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As of March 31, 2015, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: | ||||||||||||||||||||||||||||
Product | Number of Instruments | Notional | ||||||||||||||||||||||||||
Interest rate caps | 20 | $ | 304,812,000 | |||||||||||||||||||||||||
The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the combined consolidated balance sheets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||
Asset Derivative | Liability Derivative | |||||||||||||||||||||||||||
Balance | March 31, | December 31, | Balance | March 31, | December 31, | |||||||||||||||||||||||
Sheet Location | 2015 | 2014 | Sheet Location | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate caps | Other assets | 289,903 | 263,301 | Other liabilities | — | — | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate caps | Other assets | 79,203 | 194,732 | Other liabilities | — | — | ||||||||||||||||||||||
Total | 369,107 | 458,033 | — | — | ||||||||||||||||||||||||
The tables below present the effect of the Company’s derivative financial instruments on the combined consolidated statements of operations and comprehensive loss for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Amount of gain | Location of gain | Amount of gain | Location of gain | Amount of gain | ||||||||||||||||||||||||
(loss) recognized in | (loss) reclassified | (loss) reclassified | (loss) recognized in | (loss) recognized in | ||||||||||||||||||||||||
OCI on derivative | from accumulated | from accumulated OCI | income on derivative | income on derivative | ||||||||||||||||||||||||
(effective portion) | OCI into income | into income (effective | (ineffective portion) | (ineffective portion) | ||||||||||||||||||||||||
(effective portion) | portion) | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging | ||||||||||||||||||||||||||||
instruments | ||||||||||||||||||||||||||||
For the three months ended March 31, | ||||||||||||||||||||||||||||
Interest rate caps | (269,758 | ) | — | Interest expense | — | — | Interest expense | — | — | |||||||||||||||||||
Total | (269,758 | ) | — | — | — | — | — | |||||||||||||||||||||
Amount of gain (loss) | ||||||||||||||||||||||||||||
recognized in income | ||||||||||||||||||||||||||||
Location of gain (loss) recognized in income | 2015 | 2014 | ||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||
instruments | ||||||||||||||||||||||||||||
For the three months ended March 31, | ||||||||||||||||||||||||||||
Interest rate caps | Interest expense | (115,529 | ) | (204,903 | ) | |||||||||||||||||||||||
Total | (115,529 | ) | (204,903 | ) | ||||||||||||||||||||||||
Other financial instruments | ||||||||||||||||||||||||||||
Cash equivalents, rents and accounts receivables, accounts payable, accrued expenses and other liabilities are carried at amounts that reasonably approximate their fair values because of the short-term nature of these instruments. | ||||||||||||||||||||||||||||
Long-term indebtedness is carried at amounts that reasonably approximate their fair value because of the limited period in which the amounts were outstanding and owed on some loans and the variable interest rate terms. Management used a market spread from quoted prices to determine the interest rate on variable rate loans which was 2.02% and 2.02% as of March 31, 2015 and December 31, 2014, respectively. On fixed rate debt management used quoted prices which ranged from 3.7% to 3.9%. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. Related Party Transactions |
Asset Management Fee | |
In accordance with the operating agreement of each real estate property the Company earns an asset management fee for services provided in connection with monitoring the operations of the properties. The asset management fee is equal to 0.5% per annum of the aggregate effective Gross Income of the properties, as defined. For the three months ended March 31, 2015 and 2014, the properties comprising the Company incurred asset management fees to the Company of $126,715 and $16,959, respectively. Since the fees are paid to the Company they have been eliminated in consolidation. | |
Property management and construction fees | |
The Company has entered into management agreements with BH Management Services, LLC (“BH”), the Company’s property manager, who manages the Company’s properties and supervises the implementation of the Company’s value-add program. BH is an affiliate of the noncontrolling interest member of the Company by virtue of ownership in certain VIEs through its affiliate BH Equity. The property management fee is approximately 3% of the monthly gross income from each property managed. Currently BH manages all of our properties. Additionally, the Company may pay BH certain other fees, including (1) a fee of $15.00 per unit for the one time setup and inspection of properties, (2) a construction supervision fee of 5-6% of total project costs, which is capitalized, and other owner approved fees at $55 per hour. For the three months ended March 31, 2015 and 2014, the properties comprising the Company incurred management fees to BH of $758,814 and $122,624, respectively. For the three months ended March 31, 2015 and 2014, the properties comprising the Company incurred construction supervision fees to BH of $140,948 and $0, respectively. | |
Management and administrative fee | |
Prior to the Spin-Off, the predecessor paid NexPoint Advisors, an affiliate of the Adviser, an annual fee, paid monthly, in an amount equal to 1.00% of the average daily value of the predecessor’s “Managed Assets”. The predecessor’s Managed Assets were an amount equal to the total assets of the predecessor, including any form of leverage, minus all accrued expenses incurred in the normal course of operations, but not excluding any liabilities or obligations attributable to investment leverage obtained through (i) indebtedness of any type (including, without limitation, borrowing through a credit facility or the issuance of debt securities), (ii) the issuance of preferred stock or other preference securities, (iii) the reinvestment of collateral received for securities loaned in accordance with the predecessor’s investment objectives and policies, and/or (iv) any other means. | |
Additionally, the predecessor paid NexPoint Advisors an administrative fee for services to the predecessor. The administrative fee was payable monthly, in an amount equal to 0.20% of the average weekly value of the predecessor’s Managed Assets. The advisory and administration fees were paid by the predecessor on behalf of the Company. | |
Following the Spin-Off and in accordance with the Advisory Agreement, the Company will pay the Adviser a management fee equal to 1.00% of the Average Real Estate Assets, as defined in the Advisory Agreement. The duties performed by our Adviser under the terms of the Advisory Agreement include but are not limited to: providing daily management for us, selecting and working with third party service providers, managing our properties or overseeing the third party property manager, formulating an investment strategy for us and selecting suitable properties and investments for us. “Average Real Estate Assets” means the average of the aggregate book value of Real Estate Assets before reserves for depreciation or other non-cash reserves, computed by taking the average of the book value of real estate assets at the end of each month (or partial month) (1) for which any fee under the Advisory Agreement is calculated or (2) during the year for which any expense reimbursement under the Advisory Agreement is calculated. “Real Estate Assets” is defined broadly in the Advisory Agreement to include, among other things, investments in real estate-related securities and mortgages and reserves for capital expenditures. The management fee is payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the management fee in shares of common stock, subject to certain limitations. | |
In accordance with the Advisory Agreement, the Company will also pay the Adviser an administrative fee equal to 0.20% of the Average Real Estate Assets. The administrative fee will be payable monthly in arrears in cash, unless the Adviser elects, in its sole discretion, to receive all or a portion of the advisory fee in shares of common stock, subject to certain limitations. The management and administrative fees to be paid to the Adviser on the real estate assets that are owned are subject to a stipulated cap. | |
Pursuant to the terms of the Advisory Agreement, the Company will reimburse the Adviser for all documented Operating Expenses and Offering Expenses. Operating Expenses include legal, accounting, financial and due diligence services performed by the Advisor that outside professionals or outside consultants would otherwise perform, and the Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Advisor required for the Company’s operations. Operating Expenses do not include expenses for the management and administrative services described in the Advisory Agreement. Offering Expenses include all expenses (other than underwriters’ discounts) in connection with an offering, including, without limitation, legal, accounting, printing, mailing and filing fees. Certain Operating Expenses such as, our ratable share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses incurred by the Adviser or its affiliates that relate to the operations of the Company will be billed monthly to us under a shared services agreement. | |
Expense Cap | |
Pursuant to the terms of the Advisory Agreement, expenses paid or incurred by us for management and administrative fees payable to the Adviser, stock-based compensation granted under any Company equity compensation plan, and Operating Expenses will not exceed 1.5% of Average Real Estate Assets (the “1.5% Limitation”) per calendar year (or part thereof that the Advisory Agreement is in effect). The cap does not limit the reimbursement of expenses related to securities offerings or Offering Expenses. The cap also does not apply to legal, accounting, financial, due diligence and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation or other events outside the Company’s ordinary course of business or any out-of-pocket acquisitions or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Also, management and administrative fees are further limited on Contributed Assets to $5,691,428 in any calendar year. Contributed Assets refers to all Real Estate Assets contributed to the Company as part of the Spin-off. Management and administrative fees on New Assets are not subject to the above limitation but are subject to the 1.5% Limitation. New Assets are all Real Estate Assets that are not Contributed Assets. | |
The amount of management and administration fees incurred by our predecessor was $1,276,687 and $108,199 for the three months ended March 31, 2015 and 2014, respectively, and are reflected on the statements of operations and comprehensive loss in management and administrative fees. The allocation is based on the terms of the NexPoint Advisors Advisory Agreement prior to the Spin-Off. In management’s estimation, the allocation methodologies used are reasonable and result in a reasonable allocation of operating costs borne by our predecessor; however, these allocations may not be indicative of the cost of future operations or the amount of future allocations. |
Commitment_and_Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies |
Commitments | |
In the normal course of business, the Company enters into various rehabilitation construction related purchase commitments with parties that provide these goods and services. In the event the Company were to terminate rehabilitation construction services prior to the completion of projects, the Company could potentially be committed to satisfy outstanding or uncompleted purchase orders with such parties. At March 31, 2015, management does not anticipate any material deviations from schedule or budget related to rehabilitation projects currently in process. | |
Contingencies | |
In the normal course of business, the Company is subject to claims, lawsuits and legal proceedings. While it is not possible to ascertain the ultimate outcome of all such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts provided or covered by insurance, will not have a material adverse effect on the consolidated balance sheets or consolidated statements of operations and comprehensive loss of the Company. The Company is not involved in any material litigation nor, to management’s knowledge, is any material litigation currently threatened against us or our properties or subsidiaries, other than routine litigation arising in the ordinary course of business. | |
The Company is not aware of any environmental liability with respect to the properties that could have a material adverse effect on our business, assets or results of operations. However, there can be no assurance that such a material environmental liability does not exist. The existence of any such material environmental liability could have an adverse effect on our results of operations and cash flows. |
Subsequent_Events
Subsequent Events | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||
Subsequent Events | 10. Subsequent Events | ||||||||||||||||||||||
The Company acquired the following property subsequent to March 31, 2015 (unaudited): | |||||||||||||||||||||||
Property | Location | Closing Date | Purchase Price (2) | Debt | # Units | Noncontrolling Interest | Effective Ownership | ||||||||||||||||
Bayberry Apartments | West Palm Beach, Florida | 15-Apr-15 | $ | 21,000,000 | $ | 12,660,000 | -1 | 222 | 10 | % | 90 | % | |||||||||||
(1) - New loan with floating interest rate at 1.80% over the one-month LIBOR over an 84 month term, with an initial 48 months of interest only, that matures on May 1, 2022. A third party interest rate cap was purchased fixing the max note rate at 7.75%. The note is pre-payable in the 13th month through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Predecessor | Predecessor | ||||||||||||||
With the exception of a nominal amount of initial cash funded at inception, the Company did not own any assets prior to March 31, 2015. The business and operations of the Company prior to March 31, 2015 occurred under the predecessor. Our predecessor included all of the properties in our portfolio that were held indirectly by Freedom REIT, a wholly owned subsidiary of NHF, prior to the Spin-Off that occurred on March 31, 2015. Our predecessor was determined in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). References throughout these combined consolidated financial statements to the Company, we, or our, include the activity of the predecessor defined above. | |||||||||||||||
Basis of Accounting | Basis of Accounting | ||||||||||||||
The accompanying unaudited interim combined consolidated financial statements of the Company are prepared in accordance with GAAP and with Rule 10-01 Regulation S-X for interim financial statements. The combined consolidated balance sheets include the accounts of the Company and its subsidiaries. Our predecessor combined consolidated financial statements were derived from the historical accounting records of our predecessor and reflect the historical financial position, results of operations and cash flows for the periods prior to the Spin-Off. All intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting polices consistent with those of the Company. In addition, the Company evaluates relationships with other entities to identify whether there are variable interest entities (“VIE’s”) as required by FASB ASC 810, Consolidation, and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the financial statements in accordance with FASB ASC 810. In the opinion of the Company’s management, the accompanying combined consolidated financial statements include all adjustments and eliminations, consisting only of normal recurring items necessary for their fair presentation in conformity with GAAP. Interim results are not necessarily indicative of operating results for a full year. The unaudited information included in this quarterly report on form 10-Q should be read in conjunction with our predecessor audited financial statements identified as “Freedom REIT Contribution Group” for the year ended December 31, 2014 and notes thereto included in the information statement filed as an exhibit to our registration statement on Form 10 filed on March 12, 2015. There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2015. | |||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||
The preparation of the combined consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. It is at least reasonably possible that these estimates could change in the near term. | |||||||||||||||
Real Estate Investments | Real Estate Investments | ||||||||||||||
Upon acquisition, in accordance with FASB ASC 805, Business Combinations, the purchase price of a property is allocated to land, building, improvements, furniture, fixtures, and equipment, and intangible lease assets. The purchase price allocation is based on management’s estimate of the property’s “as-if” vacant fair value, which is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The allocation of the purchase price to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. | |||||||||||||||
If any debt is assumed in an acquisition, the difference between the fair value and the face value of debt is recorded as a premium or discount and amortized to interest expense over the life of the debt assumed. Costs associated with the acquisition of a property, including acquisition fees paid, are expensed as incurred. | |||||||||||||||
The results of operations for acquired properties are included in the combined consolidated statements of operations and comprehensive loss from their respective acquisition dates. | |||||||||||||||
Real estate assets, including land, building, improvements, furniture, fixtures and equipment, and intangible lease assets are stated at historical cost less accumulated depreciation and amortization. Costs associated with the development and improvement of the Company’s real estate assets are capitalized as incurred. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table: | |||||||||||||||
Land | Not depreciated | ||||||||||||||
Building | 30 years | ||||||||||||||
Improvements | 15 years | ||||||||||||||
Furniture, fixtures, and equipment | 3 years | ||||||||||||||
Intangible lease assets | 6 months | ||||||||||||||
Construction in progress includes the cost of renovation projects being performed at the various properties. Once a project is complete the historical cost of the renovation is placed into service in one of the categories above depending on the renovation project and is depreciated over the estimated useful lives as described in the table above. | |||||||||||||||
Impairment | Impairment | ||||||||||||||
Real estate assets that are determined to be held and used will be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, and the Company will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. For the periods ended March 31, 2015 and 2014, the Company did not record any impairment charges related to real estate assets. | |||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||||
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value. | |||||||||||||||
Restricted Cash | Restricted Cash | ||||||||||||||
Restricted cash is comprised of amounts set aside for security deposits, capital improvements and lender impound reserve accounts on the Company’s borrowings for escrow deposits, and amounts set aside for real estate taxes and insurance. The following is a summary of the restricted cash held as of March 31, 2015 and December 31, 2014: | |||||||||||||||
31-Mar-15 | December 31, 2014 | ||||||||||||||
Security deposits | $ | 1,498,986 | $ | 1,574,302 | |||||||||||
Operating escrows | 7,648,193 | 7,299,426 | |||||||||||||
Renovation and repair escrows | 51,399,061 | 38,943,614 | |||||||||||||
$ | 60,546,240 | $ | 47,817,342 | ||||||||||||
Deferred Financing Costs | Deferred Financing Costs | ||||||||||||||
The Company defers costs incurred in obtaining financing and amortizes the costs over the terms of the related loans using the straight-line method, which approximates the effective interest method. Upon repayment of or in conjunction with a material change in the terms of the underlying debt agreement, any unamortized costs are charged to earnings. Deferred financing costs, net of amortization, of $5,647,715 and $4,632,429 are recorded on the accompanying combined consolidated balance sheets as of March 31, 2015 and at December 31, 2014, respectively. Amortization of deferred financing costs of $306,596 and $25,440 is included in interest expense in the combined consolidated statements of operations and comprehensive loss for the three month periods ended March 31, 2015 and 2014, respectively. | |||||||||||||||
Noncontrolling Interests | Noncontrolling Interests | ||||||||||||||
Noncontrolling interests are comprised of the Company’s joint venture partners’ interests in the joint ventures in multifamily properties that the Company consolidates. The Company reports its joint venture partners’ interests in its consolidated real estate joint ventures and other subsidiary interests held by third parties as noncontrolling interests. The Company records these noncontrolling interests at their initial fair value, adjusting the basis prospectively for their share of the respective consolidated investment’s net income or loss and equity contributions and distributions. These noncontrolling interests are not redeemable by the equity holders and are presented as part of permanent equity. Income and losses are allocated to the noncontrolling interest holder based on its economic ownership percentage. | |||||||||||||||
Accounting for Joint Ventures | Accounting for Joint Ventures | ||||||||||||||
The Company first analyzes its investments in joint ventures to determine if the joint venture is a VIE in accordance with FASB ASC 810, and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests that change with changes in the fair value of the VIE’s net assets. The Company assesses at each level of the joint venture whether the entity is (i) a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If an entity in which the Company holds a joint venture interest qualifies as a VIE and the Company is determined to be the primary beneficiary, the joint venture is consolidated. | |||||||||||||||
The following table represents the Company’s investments in joint ventures at March 31, 2015 and December 31, 2014: | |||||||||||||||
Properties | Location | Year Acquired | Effective Ownership | Effective Ownership | |||||||||||
Percentage at March 31, 2015 | Percentage at | ||||||||||||||
31-Dec-14 | |||||||||||||||
The Miramar Apartments | Dallas, Texas | 2013 | 100 | % | 100 | % | |||||||||
Arbors on Forest Ridge | Bedford, Texas | 2014 | 90 | % | 90 | % | |||||||||
Cutter's Point | Richardson, Texas | 2014 | 90 | % | 90 | % | |||||||||
Eagle Crest | Irving, Texas | 2014 | 90 | % | 90 | % | |||||||||
Meridian | Austin, Texas | 2014 | 90 | % | 90 | % | |||||||||
Silverbrook | Grand Prairie, Texas | 2014 | 90 | % | 90 | % | |||||||||
Timberglen | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
Toscana | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Grove at Alban | Frederick, Maryland | 2014 | 76 | % | 76 | % | |||||||||
Willowdale Crossings | Frederick, Maryland | 2014 | 80 | % | 80 | % | |||||||||
Edgewater at Sandy Springs | Atlanta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Beechwood Terrace | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Willow Grove | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Woodbridge | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Abbington Heights | Antioch, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
The Summit at Sabal Park | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Courtney Cove | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Colonial Forest | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Blanding | Orange Park, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Regency | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Jade Park (FKA Wood Forest) | Daytona Beach, Florida | 2014 | 90 | % | 90 | % | |||||||||
Mandarin Reserve (FKAVictoria Park) | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Radbourne Lake | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Timber Creek | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Belmont at Duck Creek | Garland, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Arbors | Tucker, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings at Holcomb Bridge | Roswell, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Knolls | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Regatta Bay | Seabrook, Texas | 2014 | 90 | % | 90 | % | |||||||||
Sabal Palm at Lake Buena Vista | Orlando, Florida | 2014 | 90 | % | 90 | % | |||||||||
Steeplechase Apartments | Fredericksburg, Virginia | 2014 | 85 | % | 85 | % | |||||||||
Barrington Mill | Marietta, Georgia | 2015 | 90 | % | 0 | % | -1 | ||||||||
Cornerstone | Orlando, Florida | 2015 | 90 | % | 0 | % | -1 | ||||||||
Dana Point | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Heatherstone | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Versailles | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
McMillan Place | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
-1 | Properties were acquired in 2015, therefore no ownership as of December 31, 2014. | ||||||||||||||
In connection with its indirect equity investments in the properties acquired, the Company holds LLC membership interests in the operating partnerships. These entities are deemed to be variable interest entities as we have disproportionately few voting rights (in the form of substantive participating rights over all of the decisions that are made that most significantly affect economic performance) relative to our economic interests in the entities and substantially all of the activities of the entities are performed on our behalf. The Company is considered the primary beneficiary of these VIEs as no single party meets both criteria to be the primary beneficiary, and we are the member of the related party group that has both the power to direct the activities that most significantly impact economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. Within the related party group, the Company is the most closely associated to the VIE based on the purpose and design of the entity, the size of our ownership interests relative to the other investors, and the rights we hold with respect to the other investors’ equity interests, including our ability to preclude any transfers of their interests and ability to drag them along on the sale of our equity interest. All VIEs are consolidated in the Company’s financial statements. The assets of these VIEs can only be used to settle obligations of the VIEs, and the creditors of these entities have no recourse to other assets of the Company. | |||||||||||||||
The other investor in the VIEs is BH Equity or affiliates of BH Equity. When these VIEs were formed under our predecessor, BH Equity invested in each VIE (with the exception of Miramar) on the same basis as us, receiving a proportional share of each VIE (other than Miramar). Each VIE has a non-recourse mortgage that has standard scope non-recourse carve outs required by agency lenders and generally call for protection by the borrower and the guarantor against losses by the lender for so-called “bad acts,” such as misrepresentations, and may include full recourse liability for more significant events such as bankruptcy. BH Equity, or its affiliates provided non-recourse carve out guarantees for the mortgage indebtedness currently outstanding relating to the Portfolio. In consideration of the guarantees provided by BH Equity and its affiliates, they will earn an additional 10% profit interest in the VIE such that distributions will be made to the members of the VIE pro rata in proportion to their relative percentage interests until the members have received an internal rate of return equal to 13%. Then, generally 80% of the distributions will be paid to us and 20% of the distributions will be paid to BH Equity or an affiliate. | |||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||
The Company’s primary operations consist of rental income earned from its residents under lease agreements with terms of one year or less. Rental income is recognized when earned. This policy effectively results in income recognition on the straight-line method over the related terms of the leases. Resident reimbursements and other income consist of charges billed to residents for utilities, carport and garage rental, pets, administrative, application and other fees and are recognized when earned. | |||||||||||||||
Asset Management & Property Management Services | Asset Management & Property Management Services | ||||||||||||||
Management fee expenses are recognized when incurred in accordance with each management agreement, see additional disclosures at Note 8. | |||||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | ||||||||||||||
Allowances for rental income receivables are established when management determines that collections of such receivables are doubtful. Balances are considered past due when payment is not received on the contractual due date. When management has determined that receivables are uncollectible, they are written off against the allowance for doubtful accounts. | |||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||
The Company intends to elect to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, commencing with its first taxable year of operations as a separate public company. If the Company qualifies for taxation as a REIT, it generally will not be subject to federal corporate income tax on its taxable income that is distributed to its stockholders as long as it distributes at least 90% of its taxable income to its stockholders and meets certain tests regarding the nature of the Company’s income and assets. As a REIT, the Company will not be subject to federal income tax with respect to the portion of the Company’s income that meets certain criteria and is distributed annually to stockholders. The Company intends to operate in a manner that allows the Company to meet the requirements for taxation as a REIT, including creating taxable REIT subsidiaries to hold assets that generate income that would not be consistent with the rules applicable for qualification as a REIT if held directly by the REIT. If the Company were to fail to meet these requirements, it could be subject to federal income tax on the Company’s taxable income at regular corporate rates. The Company would not be able to deduct distributions paid to stockholders in any year in which it fails to qualify as a REIT. The Company will also be disqualified for the four taxable years following the year during which qualification was lost unless the Company is entitled to relief under specific statutory provisions. | |||||||||||||||
Reportable Segment | Reportable Segment | ||||||||||||||
Substantially all of the Company’s consolidated net loss is from investments in real estate properties within the multi-family sector that the Company owns through LLCs. The Company evaluates operating performance on an individual property level and views its real estate assets as one industry segment and, accordingly, its properties are aggregated into one reportable segment. | |||||||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||||||||||||
The Company maintains cash balances with high quality financial institutions and periodically evaluates the creditworthiness of such institutions and believes that the Company is not exposed to significant credit risk. Cash balances may be in excess of the amounts insured by the Federal Deposit Insurance Corporation. | |||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||
Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB ASC 820, Fair Value Measurement and Disclosures, establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy) | |||||||||||||||
· | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. | ||||||||||||||
· | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||
· | Level 3 inputs are the unobservable inputs for the asset or liability, which are typically based on an entity’s own assumption, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on input from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company utilizes an independent third party to perform the valuation analysis for each property acquisition and also to perform the market valuations on the interest rate caps and has established policies, as described above, processes and procedures intended to ensure that the valuation methodologies for investments and interest rate caps are fair and consistent as of the measurement date. | |||||||||||||||
Per Share Data | Per Share Data | ||||||||||||||
The Company began operations on March 31, 2015 as described above and therefore no earnings per share have been disclosed on the combined consolidated statements of operations and comprehensive loss since all operating activities of the Company were presented as predecessor operations. Basic earnings per share will be presented for all periods following March 31, 2015 and computed by dividing net income or 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. | |||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||||
Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 13(a) of the Exchange Act, for complying with new or revised accounting standards applicable to public companies. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for such new or revised standards. We may elect to comply with public company effective dates at any time, and such election would be irrevocable pursuant to Section 107(b) of the JOBS Act. The following recent accounting pronouncements reflect effective dates that delay the adoption until those standards would otherwise apply to private companies. | |||||||||||||||
In April 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changed the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. As a result, under the new standard the Company does not expect to report discontinued operations for most real estate dispositions. The new standard is effective for any disposals of components of the Company in annual reporting periods beginning on or after December 15, 2014. The Company implemented the provisions of ASU 2014-08 as of January 1, 2015. | |||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods beginning after December 15, 2017 and interim periods within that reporting period. The Company will implement the provisions of ASU 2014-09 as of January 1, 2018. The Company has not yet determined the impact of the new standard on its current policies for revenue recognition. | |||||||||||||||
In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a VIE, and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. The ASU also significantly changes how to evaluate voting rights for entities that are not similar to limited partnerships when determining whether the entity is a VIE, which may affect entities for which the decision making rights are conveyed though a contractual arrangement. The ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2016. The Company will implement the provisions of ASU 2015-02 as of January 1, 2017. The Company has not yet determined the impact of the new standard on its current policies for consolidation. | |||||||||||||||
In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest, which changes the way reporting enterprises record debt issuance costs. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for annual reporting periods beginning after December 15, 2015. The Company will implement the provisions of ASU 2015-03 as of January 1, 2016. The Company does not expect the new standard to have a material impact on its financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
Estimated Useful Lives of Assets | Real estate-related depreciation and amortization are computed on a straight-line basis over the estimated useful lives as described in the following table: | ||||||||||||||
Land | Not depreciated | ||||||||||||||
Building | 30 years | ||||||||||||||
Improvements | 15 years | ||||||||||||||
Furniture, fixtures, and equipment | 3 years | ||||||||||||||
Intangible lease assets | 6 months | ||||||||||||||
Summary of Restricted Cash Held | The following is a summary of the restricted cash held as of March 31, 2015 and December 31, 2014: | ||||||||||||||
31-Mar-15 | December 31, 2014 | ||||||||||||||
Security deposits | $ | 1,498,986 | $ | 1,574,302 | |||||||||||
Operating escrows | 7,648,193 | 7,299,426 | |||||||||||||
Renovation and repair escrows | 51,399,061 | 38,943,614 | |||||||||||||
$ | 60,546,240 | $ | 47,817,342 | ||||||||||||
Schedule of Investments in Joint Ventures | The following table represents the Company’s investments in joint ventures at March 31, 2015 and December 31, 2014: | ||||||||||||||
Properties | Location | Year Acquired | Effective Ownership | Effective Ownership | |||||||||||
Percentage at March 31, 2015 | Percentage at | ||||||||||||||
31-Dec-14 | |||||||||||||||
The Miramar Apartments | Dallas, Texas | 2013 | 100 | % | 100 | % | |||||||||
Arbors on Forest Ridge | Bedford, Texas | 2014 | 90 | % | 90 | % | |||||||||
Cutter's Point | Richardson, Texas | 2014 | 90 | % | 90 | % | |||||||||
Eagle Crest | Irving, Texas | 2014 | 90 | % | 90 | % | |||||||||
Meridian | Austin, Texas | 2014 | 90 | % | 90 | % | |||||||||
Silverbrook | Grand Prairie, Texas | 2014 | 90 | % | 90 | % | |||||||||
Timberglen | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
Toscana | Dallas, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Grove at Alban | Frederick, Maryland | 2014 | 76 | % | 76 | % | |||||||||
Willowdale Crossings | Frederick, Maryland | 2014 | 80 | % | 80 | % | |||||||||
Edgewater at Sandy Springs | Atlanta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Beechwood Terrace | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Willow Grove | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Woodbridge | Nashville, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
Abbington Heights | Antioch, Tennessee | 2014 | 90 | % | 90 | % | |||||||||
The Summit at Sabal Park | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Courtney Cove | Tampa, Florida | 2014 | 90 | % | 90 | % | |||||||||
Colonial Forest | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Blanding | Orange Park, Florida | 2014 | 90 | % | 90 | % | |||||||||
Park at Regency | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Jade Park (FKA Wood Forest) | Daytona Beach, Florida | 2014 | 90 | % | 90 | % | |||||||||
Mandarin Reserve (FKAVictoria Park) | Jacksonville, Florida | 2014 | 90 | % | 90 | % | |||||||||
Radbourne Lake | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Timber Creek | Charlotte, North Carolina | 2014 | 90 | % | 90 | % | |||||||||
Belmont at Duck Creek | Garland, Texas | 2014 | 90 | % | 90 | % | |||||||||
The Arbors | Tucker, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Crossings at Holcomb Bridge | Roswell, Georgia | 2014 | 90 | % | 90 | % | |||||||||
The Knolls | Marietta, Georgia | 2014 | 90 | % | 90 | % | |||||||||
Regatta Bay | Seabrook, Texas | 2014 | 90 | % | 90 | % | |||||||||
Sabal Palm at Lake Buena Vista | Orlando, Florida | 2014 | 90 | % | 90 | % | |||||||||
Steeplechase Apartments | Fredericksburg, Virginia | 2014 | 85 | % | 85 | % | |||||||||
Barrington Mill | Marietta, Georgia | 2015 | 90 | % | 0 | % | -1 | ||||||||
Cornerstone | Orlando, Florida | 2015 | 90 | % | 0 | % | -1 | ||||||||
Dana Point | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Heatherstone | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
Versailles | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
McMillan Place | Dallas, Texas | 2015 | 90 | % | 0 | % | -1 | ||||||||
-1 | Properties were acquired in 2015, therefore no ownership as of December 31, 2014. |
Acquisitions_Tables
Acquisitions (Tables) (Multifamily Properties) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Multifamily Properties | |||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||
Summary of Investment in Multifamily Properties | As of March 31, 2015, through its consolidated joint ventures, the Company has invested in a total of thirty-eight multifamily properties as listed below (property descriptions including rentable square footage, number of units, average effective monthly rent and occupancy are unaudited): | ||||||||||||||||||||||
Multifamily Property Name | Rentable Square Footage | Number of Units | Date Acquired | Average | % Occupied as | % Occupied as | |||||||||||||||||
Effective | of March 31, | of December 31, 2014 (2) | |||||||||||||||||||||
Monthly Rent | 2015 (2) | ||||||||||||||||||||||
Per Unit (1) | |||||||||||||||||||||||
The Miramar Apartments | 183,100 | 314 | 10/31/13 | $ | 552 | 96.5 | % | 92.7 | % | ||||||||||||||
Arbors on Forest Ridge | 154,556 | 210 | 1/31/14 | $ | 781 | 96.2 | % | 92.9 | % | ||||||||||||||
Cutter's Point | 197,972 | 196 | 1/31/14 | $ | 949 | 94.9 | % | 96.4 | % | ||||||||||||||
Eagle Crest | 395,951 | 447 | 1/31/14 | $ | 756 | 95.5 | % | 94.9 | % | ||||||||||||||
Meridian | 148,200 | 200 | 1/31/14 | $ | 776 | 94.5 | % | 95 | % | ||||||||||||||
Silverbrook | 526,138 | 642 | 1/31/14 | $ | 682 | 93.8 | % | 91.7 | % | ||||||||||||||
Timberglen | 221,376 | 304 | 1/31/14 | $ | 717 | 93.8 | % | 93.4 | % | ||||||||||||||
Toscana | 115,400 | 192 | 1/31/14 | $ | 625 | 93.8 | % | 93.2 | % | ||||||||||||||
The Grove at Alban | 267,300 | 290 | 3/10/14 | $ | 941 | 94.1 | % | 89.3 | % | ||||||||||||||
Willowdale Crossings | 411,800 | 432 | 5/15/14 | $ | 996 | 87.5 | % | 82.9 | % | ||||||||||||||
Edgewater at Sandy Springs | 726,774 | 760 | 7/18/14 | $ | 778 | 92 | % | 92.5 | % | ||||||||||||||
Beechwood Terrace | 271,728 | 300 | 7/21/14 | $ | 756 | 96 | % | 98.7 | % | ||||||||||||||
Willow Grove | 229,140 | 244 | 7/21/14 | $ | 704 | 96.7 | % | 94.7 | % | ||||||||||||||
Woodbridge | 246,840 | 220 | 7/21/14 | $ | 840 | 94.5 | % | 90.5 | % | ||||||||||||||
Abbington Heights | 238,974 | 274 | 8/1/14 | $ | 755 | 96.4 | % | 96 | % | ||||||||||||||
The Summit at Sabal Park | 204,545 | 252 | 8/20/14 | $ | 802 | 93.3 | % | 88.5 | % | ||||||||||||||
Courtney Cove | 224,958 | 324 | 8/20/14 | $ | 694 | 94.1 | % | 95.1 | % | ||||||||||||||
Colonial Forest | 160,093 | 174 | 8/20/14 | $ | 612 | 90.8 | % | 94.8 | % | ||||||||||||||
Park at Blanding | 116,410 | 117 | 8/20/14 | $ | 753 | 94 | % | 88.9 | % | ||||||||||||||
Park at Regency | 134,253 | 159 | 8/20/14 | $ | 735 | 93.1 | % | 91.2 | % | ||||||||||||||
Jade Park (FKA Wood Forest) | 118,392 | 144 | 8/20/14 | $ | 698 | 91 | % | 96.5 | % | ||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 449,276 | 520 | 9/15/14 | $ | 677 | 95.4 | % | 95.4 | % | ||||||||||||||
Radbourne Lake | 246,599 | 225 | 9/30/14 | $ | 930 | 93.8 | % | 92.4 | % | ||||||||||||||
Timber Creek | 248,391 | 352 | 9/30/14 | $ | 716 | 88.1 | % | 93.2 | % | ||||||||||||||
Belmont at Duck Creek | 198,279 | 240 | 9/30/14 | $ | 825 | 93.3 | % | 93.8 | % | ||||||||||||||
The Arbors | 127,536 | 140 | 10/16/14 | $ | 734 | 91.4 | % | 92.1 | % | ||||||||||||||
The Crossings | 377,840 | 380 | 10/16/14 | $ | 699 | 96.3 | % | 94.7 | % | ||||||||||||||
The Crossings at Holcomb Bridge | 247,982 | 268 | 10/16/14 | $ | 729 | 95.1 | % | 93.7 | % | ||||||||||||||
The Knolls | 311,160 | 312 | 10/16/14 | $ | 778 | 93.9 | % | 95.2 | % | ||||||||||||||
Regatta Bay | 200,440 | 240 | 11/4/14 | $ | 955 | 95 | % | 96.3 | % | ||||||||||||||
Sabal Palm at Lake Buena Vista | 370,768 | 400 | 11/5/14 | $ | 1,053 | 93 | % | 95 | % | ||||||||||||||
Steeplechase Apartments | 115,712 | 156 | 12/18/14 | $ | 1,005 | 89.1 | % | 92.9 | % | ||||||||||||||
McMillan Place | 290,051 | 402 | 1/15/15 | $ | 667 | 92.3 | % | -3 | |||||||||||||||
Cornerstone | 317,565 | 430 | 1/15/15 | $ | 827 | 90.7 | % | -3 | |||||||||||||||
Barrington Mill | 692,180 | 752 | 2/6/15 | $ | 709 | 96 | % | -3 | |||||||||||||||
Dana Point | 206,276 | 264 | 2/26/15 | $ | 772 | 94.7 | % | -3 | |||||||||||||||
Heatherstone | 115,615 | 152 | 2/26/15 | $ | 762 | 92.8 | % | -3 | |||||||||||||||
Versailles | 300,908 | 388 | 2/26/15 | $ | 800 | 92 | % | -3 | |||||||||||||||
10,110,478 | 11,816 | ||||||||||||||||||||||
-1 | Average effective monthly rent per unit is equal to the average of (i) the contractual rent for commenced leases as of March 31, 2015 minus any tenant concession over the term of the lease, divided by (ii) the number of units under commenced leases as of March 31, 2015. | ||||||||||||||||||||||
-2 | Percent occupied is calculated as (i) the number of units occupied as of March 31, 2015, and at December 31, 2014, divided by total number of units, expressed as a percentage. | ||||||||||||||||||||||
-3 | Properties Acquired in 2015. |
Real_Estate_Investments_Tables
Real Estate Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||
Summary of Major Components of Investments in Multifamily Properties | As of March 31, 2015, the major components of the Company’s investments in multifamily properties, were as follows (unaudited): | ||||||||||||||||||||||||
Property | Land | Building and Improvements | Intangible Lease Assets | Construction in Progress | Furniture, Fixtures and Equipment | Totals | |||||||||||||||||||
The Miramar Apartments | $ | 1,580,000 | $ | 8,369,256 | $ | — | $ | 51,108 | $ | 451,579 | $ | 10,451,944 | |||||||||||||
Arbors on Forest Ridge | 2,330,000 | 10,860,861 | — | — | 287,754 | 13,478,616 | |||||||||||||||||||
Cutter's Point | 3,330,000 | 12,666,499 | — | 24,701 | 371,423 | 16,392,623 | |||||||||||||||||||
Eagle Crest | 5,450,000 | 21,502,269 | — | 255,092 | 482,312 | 27,689,673 | |||||||||||||||||||
Meridian | 2,310,000 | 10,285,125 | — | 324 | 234,190 | 12,829,639 | |||||||||||||||||||
Silverbrook | 4,860,000 | 24,593,306 | — | 160,361 | 1,007,362 | 30,621,029 | |||||||||||||||||||
Timberglen | 2,510,000 | 14,085,555 | — | 81,645 | 332,500 | 17,009,701 | |||||||||||||||||||
Toscana | 1,730,000 | 7,006,461 | — | 80,284 | 261,700 | 9,078,445 | |||||||||||||||||||
The Grove at Alban | 3,640,000 | 18,928,816 | — | 92,690 | 297,617 | 22,959,123 | |||||||||||||||||||
Willowdale Crossings | 4,650,000 | 35,540,995 | — | 65,264 | 486,529 | 40,742,787 | |||||||||||||||||||
Edgewater at Sandy | 14,290,000 | 41,318,896 | — | 1,378,139 | 1,229,042 | 58,216,076 | |||||||||||||||||||
Springs | |||||||||||||||||||||||||
Beechwood Terrace | 1,390,000 | 20,124,973 | — | 38,727 | 231,435 | 21,785,135 | |||||||||||||||||||
Willow Grove | 3,940,000 | 9,990,585 | — | 539,035 | 174,319 | 14,643,939 | |||||||||||||||||||
Woodbridge | 3,650,000 | 12,063,289 | — | 305,915 | 215,642 | 16,234,845 | |||||||||||||||||||
Abbington Heights | 1,770,000 | 16,117,302 | — | 39,666 | 221,456 | 18,148,424 | |||||||||||||||||||
The Summit at Sabal Park | 5,770,000 | 13,021,170 | — | 125,330 | 274,165 | 19,190,665 | |||||||||||||||||||
Courtney Cove | 5,880,000 | 12,569,229 | — | 153,913 | 405,233 | 19,008,375 | |||||||||||||||||||
Colonial Forest | 2,090,000 | 3,134,390 | — | 289,101 | 200,304 | 5,713,794 | |||||||||||||||||||
Park at Blanding | 2,610,000 | 3,874,234 | — | 24,781 | 127,263 | 6,636,279 | |||||||||||||||||||
Park at Regency | 2,620,000 | 5,352,249 | — | 138,050 | 256,352 | 8,366,651 | |||||||||||||||||||
Jade Park (FKA Wood Forest) | 1,490,000 | 6,166,312 | — | 224,596 | 144,067 | 8,024,975 | |||||||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 5,610,000 | 19,699,737 | — | 741,759 | 417,614 | 26,469,110 | |||||||||||||||||||
Radbourne Lake | 2,440,000 | 20,950,098 | — | 168,636 | 430,825 | 23,989,559 | |||||||||||||||||||
Timber Creek | 11,260,000 | 10,755,680 | — | 1,652,306 | 153,543 | 23,821,529 | |||||||||||||||||||
Belmont at Duck Creek | 1,910,000 | 16,875,625 | — | 9,894 | 221,835 | 19,017,354 | |||||||||||||||||||
The Arbors | 1,730,000 | 5,859,987 | 199,000 | 403,110 | 98,776 | 8,290,873 | |||||||||||||||||||
The Crossings | 4,150,000 | 16,139,574 | 834,000 | 611,754 | 255,384 | 21,990,712 | |||||||||||||||||||
The Crossings at Holcomb | 5,560,000 | 9,811,712 | 616,000 | 316,550 | 201,804 | 16,506,065 | |||||||||||||||||||
Bridge | |||||||||||||||||||||||||
The Knolls | 3,410,000 | 16,935,843 | 759,000 | 203,470 | 231,605 | 21,539,917 | |||||||||||||||||||
Regatta Bay | 1,660,000 | 15,803,412 | 714,000 | 17,186 | 167,550 | 18,362,149 | |||||||||||||||||||
Sabal Palm at Lake Buena | 7,580,000 | 40,133,564 | 1,387,000 | 282,225 | 455,566 | 49,838,356 | |||||||||||||||||||
Vista | |||||||||||||||||||||||||
Steeplechase Apartments | 6,120,000 | 10,373,000 | 492,000 | 116,345 | 71,768 | 17,173,113 | |||||||||||||||||||
Barrington Mill | 10,170,000 | 45,912,126 | 1,814,000 | 264,359 | 138,978 | 58,299,463 | |||||||||||||||||||
Cornerstone | 1,500,000 | 29,322,368 | 894,000 | 201,848 | 77,375 | 31,995,590 | |||||||||||||||||||
Dana Point | 4,090,000 | 11,548,000 | 362,000 | — | 236,502 | 16,236,502 | |||||||||||||||||||
Heatherstone | 2,320,000 | 6,787,000 | 208,000 | — | 136,275 | 9,451,275 | |||||||||||||||||||
Versailles | 6,720,000 | 18,519,000 | 581,000 | — | 347,275 | 26,167,275 | |||||||||||||||||||
McMillan Place | 3,610,000 | 16,743,136 | 572,000 | 2,404 | 71,448 | 20,998,988 | |||||||||||||||||||
157,730,000 | 619,741,634 | 9,432,000 | 9,060,566 | 11,406,368 | 807,370,568 | ||||||||||||||||||||
Accumulated depreciation | — | (13,913,263 | ) | (5,351,567 | ) | — | (1,250,398 | ) | (20,515,228 | ) | |||||||||||||||
and amortization | |||||||||||||||||||||||||
$ | 157,730,000 | $ | 605,828,371 | $ | 4,080,433 | $ | 9,060,566 | $ | 10,155,970 | $ | 786,855,340 | ||||||||||||||
As of December 31, 2014, the major components of the Company’s investments in multifamily properties, were as follows: | |||||||||||||||||||||||||
Property | Land | Building and Improvements | Intangible Lease Assets | Construction in Progress | Furniture, Fixtures and Equipment | Totals | |||||||||||||||||||
The Miramar Apartments | $ | 1,580,000 | $ | 8,355,872 | $ | 290,000 | $ | — | $ | 433,354 | $ | 10,659,226 | |||||||||||||
Arbors on Forest Ridge | 2,330,000 | 10,831,742 | 312,000 | 1,556 | 263,482 | 13,738,780 | |||||||||||||||||||
Cutter's Point | 3,330,000 | 12,619,109 | 352,000 | 27,633 | 326,259 | 16,655,001 | |||||||||||||||||||
Eagle Crest | 5,450,000 | 21,465,476 | 654,000 | 125,369 | 463,430 | 28,158,275 | |||||||||||||||||||
Meridian | 2,310,000 | 10,258,263 | 299,000 | — | 198,449 | 13,065,712 | |||||||||||||||||||
Silverbrook | 4,860,000 | 24,543,851 | 793,000 | 92,461 | 903,432 | 31,192,744 | |||||||||||||||||||
Timberglen | 2,510,000 | 14,076,404 | 408,000 | 375 | 309,404 | 17,304,183 | |||||||||||||||||||
Toscana | 1,730,000 | 6,961,530 | 230,000 | 23,145 | 229,169 | 9,173,844 | |||||||||||||||||||
The Grove at Alban | 3,640,000 | 18,913,344 | 796,000 | 104,844 | 228,722 | 23,682,910 | |||||||||||||||||||
Willowdale Crossings | 4,650,000 | 35,543,667 | 1,172,000 | 1,200 | 401,169 | 41,768,036 | |||||||||||||||||||
Edgewater at Sandy | 14,290,000 | 41,094,413 | 1,930,000 | 1,261,227 | 1,005,747 | 59,581,387 | |||||||||||||||||||
Springs | |||||||||||||||||||||||||
Beechwood Terrace | 1,390,000 | 19,680,820 | 409,000 | 164,621 | 157,222 | 21,801,663 | |||||||||||||||||||
Willow Grove | 3,940,000 | 9,512,555 | 298,000 | 647,574 | 91,824 | 14,489,953 | |||||||||||||||||||
Woodbridge | 3,650,000 | 12,020,293 | 334,000 | 305,915 | 178,974 | 16,489,182 | |||||||||||||||||||
Abbington Heights | 1,770,000 | 15,863,951 | 400,000 | 110,310 | 170,595 | 18,314,856 | |||||||||||||||||||
The Summit at Sabal Park | 5,770,000 | 12,972,098 | 404,000 | 81,884 | 221,200 | 19,449,182 | |||||||||||||||||||
Courtney Cove | 5,880,000 | 12,486,882 | 431,000 | 80,447 | 311,573 | 19,189,902 | |||||||||||||||||||
Colonial Forest | 2,090,000 | 3,116,687 | 186,000 | 242,841 | 166,378 | 5,801,906 | |||||||||||||||||||
Park at Blanding | 2,610,000 | 3,691,461 | 177,000 | 183,739 | 111,158 | 6,773,358 | |||||||||||||||||||
Park at Regency | 2,620,000 | 5,343,919 | 220,000 | 60,558 | 196,138 | 8,440,615 | |||||||||||||||||||
Jade Parl (FKA Wood Forest) | 1,490,000 | 6,061,395 | 200,000 | 218,688 | 89,406 | 8,059,489 | |||||||||||||||||||
Mandarin Reserve (FKA Victoria Park) | 5,610,000 | 19,679,711 | 701,000 | 701,020 | 300,213 | 26,991,944 | |||||||||||||||||||
Radbourne Lake | 2,440,000 | 20,830,406 | 652,000 | 148,114 | 355,391 | 24,425,911 | |||||||||||||||||||
Timber Creek | 11,260,000 | 10,704,510 | 799,000 | 948,430 | 113,475 | 23,825,415 | |||||||||||||||||||
Belmont at Duck Creek | 1,910,000 | 16,654,792 | 436,000 | 107,063 | 134,860 | 19,242,715 | |||||||||||||||||||
The Arbors | 1,730,000 | 5,844,105 | 199,000 | 162,100 | 44,827 | 7,980,032 | |||||||||||||||||||
The Crossings | 4,150,000 | 16,138,747 | 834,000 | 491,672 | 126,678 | 21,741,097 | |||||||||||||||||||
The Crossings at Holcomb | 5,560,000 | 9,788,284 | 616,000 | 48,173 | 66,311 | 16,078,768 | |||||||||||||||||||
Bridge | |||||||||||||||||||||||||
The Knolls | 3,410,000 | 16,931,399 | 759,000 | 107,984 | 124,357 | 21,332,740 | |||||||||||||||||||
Regatta Bay | 1,660,000 | 15,803,412 | 714,000 | 1,014 | 110,384 | 18,288,810 | |||||||||||||||||||
Sabal Palm at Lake Buena | 7,580,000 | 40,130,430 | 1,387,000 | 80,255 | 438,526 | 49,616,211 | |||||||||||||||||||
Vista | |||||||||||||||||||||||||
Steeplechase Apartments | 6,120,000 | 10,373,000 | 492,000 | — | 15,000 | 17,000,000 | |||||||||||||||||||
129,320,000 | 488,292,528 | 17,884,000 | 6,530,212 | 8,287,107 | 650,313,847 | ||||||||||||||||||||
Accumulated depreciation | — | (8,533,478 | ) | (12,442,170 | ) | — | (812,292 | ) | (21,787,940 | ) | |||||||||||||||
and amortization | |||||||||||||||||||||||||
$ | 129,320,000 | $ | 479,759,050 | $ | 5,441,830 | $ | 6,530,212 | $ | 7,474,815 | $ | 628,525,907 | ||||||||||||||
Pro_Forma_Financial_Informatio1
Pro Forma Financial Information (Unaudited) (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Pro Forma Financial Information [Abstract] | |||||||||
Summary of Pro Forma Financial Information | This pro forma financial information is not intended to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Actual | |||||||||
Total revenue | $ | 25,537,470 | $ | 3,976,985 | |||||
Net loss | (5,892,549 | ) | (2,622,841 | ) | |||||
Pro forma: | |||||||||
Total revenues | 28,286,111 | 27,048,805 | |||||||
Net income (loss) | 1,114,373 | (11,038,316 | ) | ||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||
Summary of Mortgage Debt to Company and Encumbers Multifamily Properties | The following table contains summary information concerning the mortgage debt that is nonrecourse to the Company and encumbers the multifamily properties as of March 31, 2015: | |||||||||||||||||||||
Property | Type | Term (months) | Amortization (months) | Outstanding Principal | Interest Rate (1) | Maturity Date | ||||||||||||||||
The Miramar Apartments | -2 | Floating | 120 | 360 | $ | 8,400,000 | 2.40% | 2/1/25 | ||||||||||||||
Arbors on Forest Ridge | -3 | Floating | 84 | 360 | 10,244,000 | 2.91% | 2/1/21 | |||||||||||||||
Cutter's Point | -3 | Floating | 84 | 360 | 12,676,000 | 2.91% | 2/1/21 | |||||||||||||||
Eagle Crest | -3 | Floating | 84 | 360 | 21,860,000 | 2.91% | 2/1/21 | |||||||||||||||
Meridian | -3 | Floating | 84 | 360 | 9,840,000 | 2.91% | 2/1/21 | |||||||||||||||
Silverbrook | -3 | Floating | 84 | 360 | 24,320,000 | 2.91% | 2/1/21 | |||||||||||||||
Timberglen | -3 | Floating | 84 | 360 | 13,560,000 | 2.91% | 2/1/21 | |||||||||||||||
Toscana | -3 | Floating | 84 | 360 | 7,100,000 | 2.91% | 2/1/21 | |||||||||||||||
Beechwood Terrace | -4 | Floating | 84 | 360 | 17,120,000 | 2.26% | 8/1/21 | |||||||||||||||
Colonial Forest | -4 | Floating | 84 | 360 | 4,125,000 | 2.34% | 9/1/21 | |||||||||||||||
Courtney Cove | -4 | Floating | 84 | 360 | 14,210,000 | 2.26% | 9/1/21 | |||||||||||||||
Edgewater at Sandy Springs | -4 | Floating | 84 | 360 | 43,550,000 | 2.27% | 8/1/21 | |||||||||||||||
The Grove at Alban | -4 | Floating | 84 | 360 | 18,720,000 | 2.72% | 4/1/21 | |||||||||||||||
Park at Blanding | -4 | Floating | 84 | 360 | 4,875,000 | 2.34% | 9/1/21 | |||||||||||||||
Park at Regency | -4 | Floating | 84 | 360 | 6,225,000 | 2.34% | 9/1/21 | |||||||||||||||
The Summit at Sabal Park | -4 | Floating | 84 | 360 | 14,287,000 | 2.26% | 9/1/21 | |||||||||||||||
Mandarin Reserve (FKA Victoria Park) | -4 | Floating | 84 | 360 | 19,650,000 | 2.28% | 10/1/21 | |||||||||||||||
Willow Grove | -4 | Floating | 84 | 360 | 11,000,000 | 2.29% | 8/1/21 | |||||||||||||||
Willowdale Crossings | -4 | Floating | 84 | 360 | 32,800,000 | 2.45% | 6/1/21 | |||||||||||||||
Jade Park (FKA Wood Forest) | -4 | Floating | 84 | 360 | 5,850,000 | 2.33% | 9/1/21 | |||||||||||||||
Woodbridge | -4 | Floating | 84 | 360 | 12,800,000 | 2.27% | 8/1/21 | |||||||||||||||
Steeplechase | -4 | Floating | 84 | 360 | 13,600,000 | 2.29% | 1/1/22 | |||||||||||||||
Barrington Mill | -4 | Floating | 84 | 360 | 43,500,000 | 2.14% | 3/1/22 | |||||||||||||||
Dana Point | -4 | Floating | 84 | 360 | 12,176,000 | 2.23% | 3/1/22 | |||||||||||||||
Heatherstone | -4 | Floating | 84 | 360 | 7,087,000 | 2.26% | 3/1/22 | |||||||||||||||
Versailles | -4 | Floating | 84 | 360 | 19,623,000 | 2.21% | 3/1/22 | |||||||||||||||
Timber Creek | -5 | Floating | 120 | 360 | 19,482,000 | 2.00% | 10/1/24 | |||||||||||||||
Radbourne Lake | -5 | Floating | 120 | 360 | 19,213,000 | 1.99% | 10/1/24 | |||||||||||||||
The Arbors | -5 | Floating | 120 | 360 | 5,812,000 | 1.99% | 11/1/24 | |||||||||||||||
The Crossings | -5 | Floating | 120 | 360 | 16,200,000 | 1.99% | 11/1/24 | |||||||||||||||
The Crossings at Holcomb Bridge | -5 | Floating | 120 | 360 | 12,450,000 | 1.99% | 11/1/24 | |||||||||||||||
The Knolls | -5 | Floating | 120 | 360 | 16,038,000 | 1.99% | 11/1/24 | |||||||||||||||
McMillan Place | -5 | Floating | 120 | 360 | 15,738,000 | 2.10% | 2/1/25 | |||||||||||||||
Abbington Heights | -6 | Fixed | 120 | 360 | 10,544,915 | 3.79% | 9/1/22 | |||||||||||||||
Belmont at Duck Creek | -7 | Fixed | 84 | 360 | 11,480,786 | 4.68% | 9/1/18 | |||||||||||||||
Regatta Bay | -8 | Fixed | 480 | 480 | 13,131,125 | 4.85% | 8/1/50 | |||||||||||||||
Sabal Palm at Lake Buena Vista | -9 | Floating | 120 | 360 | 37,680,000 | 1.99% | 12/1/24 | |||||||||||||||
Cornerstone | -10 | Fixed | 120 | 360 | 23,775,000 | 4.24% | 3/1/23 | |||||||||||||||
$ | 610,742,826 | |||||||||||||||||||||
Valuation adjustments | 374,234 | |||||||||||||||||||||
$ | 611,117,060 | |||||||||||||||||||||
-1 | Interest rate is based on one month LIBOR plus an applicable margin, except for Abbington Heights (based on fixed rate of 3.79%), Belmont at Duck Creek (based on fixed rate of 4.68%), Regatta Bay (based on fixed rate of 4.85%) and Cornerstone (based on a blended fixed rate of 4.24%). One month LIBOR as of March 31, 2015 was 0.18%. | |||||||||||||||||||||
-2 | Loan can be pre-paid within the first 12 months of the term at par plus 1.00% of the unpaid principal balance, loan can be pre-paid starting in the 13th month of the term through the 24th month of the term at par plus 0.50% of the unpaid principal balance, loan can be pre-paid starting in the 25th month of the term through the 36th month of the term at par plus 0.25% of the unpaid principal balance and at par during the last two years of the term. | |||||||||||||||||||||
-3 | Loan can be pre-paid starting in the 25th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. | |||||||||||||||||||||
-4 | Loans can be pre-paid starting in the 13th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. | |||||||||||||||||||||
-5 | Loans can be pre-paid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term. | |||||||||||||||||||||
-6 | Debt was assumed upon acquisition of this property and approximated fair value. The loan is open to pre-payment in the last three months of the term. | |||||||||||||||||||||
-7 | Debt was assumed upon acquisition of this property. An adjustment was made to approximate the debt to fair value. The loan is open to pre-payment in the last six months of the term. | |||||||||||||||||||||
-8 | Debt was assumed upon acquisition of this property and is a Housing and Urban Development (“HUD”) loan that is fully amortizing and approximated fair value. Debt is insured by HUD under the Section 221(d)(4) program. | |||||||||||||||||||||
-9 | Loan can be pre-paid in the first 12 months of the term at par plus 5.00% and can also be prepaid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term. | |||||||||||||||||||||
-10 | Debt in the amount of $18,000,000 was assumed upon acquisition and approximated fair value. The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013 and had a term of 120 months with an initial 24 months of interest only. At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months interest only. The first mortgage is prepayable and subject to yield maintenance from month 13 through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. Concurrently with the acquisition of the property, we placed a supplemental second mortgage on the property with a principal amount of $5,775,000, a fixed rate of 4.70%, and maturing conterminously with the first mortgage. The supplemental second mortgage is prepayable and subject to yield maintenance from the date of issuance through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. As of March 31, 2015, the total indebtedness secured by the property is $23,775,000 and has a blended pay rate of 4.24%. | |||||||||||||||||||||
Schedule of Debt Maturities | Debt maturities scheduled for each of the next five years and thereafter, are as follows: | |||||||||||||||||||||
Remainder of 2015 | $ | 829,539 | ||||||||||||||||||||
2016 | 4,632,983 | |||||||||||||||||||||
2017 | 8,087,338 | |||||||||||||||||||||
2018 | 13,668,179 | |||||||||||||||||||||
2019 | 14,583,922 | |||||||||||||||||||||
Thereafter | 568,940,865 | |||||||||||||||||||||
Total | $ | 610,742,826 | ||||||||||||||||||||
Fair_Value_Measures_and_Financ1
Fair Value Measures and Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Summary of Critical Assumptions | The following table represents critical assumptions used and the ranges for those assumptions: | |||||||||||||||||||||||||||
Going-in cap rate | 4.8% - 6.2% | |||||||||||||||||||||||||||
Terminal cap rate | 5.2% - 6.8% | |||||||||||||||||||||||||||
Discount rate | 5.5% - 10.7% | |||||||||||||||||||||||||||
Growth rate revenues | 1.6% - 3.3% | |||||||||||||||||||||||||||
Growth rate operating costs | 1.6% - 3.3% | |||||||||||||||||||||||||||
Schedule of Outstanding Interest Rate Derivatives | As of March 31, 2015, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: | |||||||||||||||||||||||||||
Product | Number of Instruments | Notional | ||||||||||||||||||||||||||
Interest rate caps | 14 | $ | 246,999,000 | |||||||||||||||||||||||||
As of March 31, 2015, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: | ||||||||||||||||||||||||||||
Product | Number of Instruments | Notional | ||||||||||||||||||||||||||
Interest rate caps | 20 | $ | 304,812,000 | |||||||||||||||||||||||||
Summary of Derivative Financial Instruments and Classification on the Combined Consolidated Balance Sheet | The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the combined consolidated balance sheets as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||
Asset Derivative | Liability Derivative | |||||||||||||||||||||||||||
Balance | March 31, | December 31, | Balance | March 31, | December 31, | |||||||||||||||||||||||
Sheet Location | 2015 | 2014 | Sheet Location | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate caps | Other assets | 289,903 | 263,301 | Other liabilities | — | — | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||||
Interest rate caps | Other assets | 79,203 | 194,732 | Other liabilities | — | — | ||||||||||||||||||||||
Total | 369,107 | 458,033 | — | — | ||||||||||||||||||||||||
Summary of Derivative Financial Instruments and Combined Consolidated Statements of Operations and Comprehensive Loss | The tables below present the effect of the Company’s derivative financial instruments on the combined consolidated statements of operations and comprehensive loss for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||
Amount of gain | Location of gain | Amount of gain | Location of gain | Amount of gain | ||||||||||||||||||||||||
(loss) recognized in | (loss) reclassified | (loss) reclassified | (loss) recognized in | (loss) recognized in | ||||||||||||||||||||||||
OCI on derivative | from accumulated | from accumulated OCI | income on derivative | income on derivative | ||||||||||||||||||||||||
(effective portion) | OCI into income | into income (effective | (ineffective portion) | (ineffective portion) | ||||||||||||||||||||||||
(effective portion) | portion) | |||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
Derivatives designated as hedging | ||||||||||||||||||||||||||||
instruments | ||||||||||||||||||||||||||||
For the three months ended March 31, | ||||||||||||||||||||||||||||
Interest rate caps | (269,758 | ) | — | Interest expense | — | — | Interest expense | — | — | |||||||||||||||||||
Total | (269,758 | ) | — | — | — | — | — | |||||||||||||||||||||
Amount of gain (loss) | ||||||||||||||||||||||||||||
recognized in income | ||||||||||||||||||||||||||||
Location of gain (loss) recognized in income | 2015 | 2014 | ||||||||||||||||||||||||||
Derivatives not designated as hedging | ||||||||||||||||||||||||||||
instruments | ||||||||||||||||||||||||||||
For the three months ended March 31, | ||||||||||||||||||||||||||||
Interest rate caps | Interest expense | (115,529 | ) | (204,903 | ) | |||||||||||||||||||||||
Total | (115,529 | ) | (204,903 | ) | ||||||||||||||||||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||
Schedule of Subsequent Events [Table Text Block] | The Company acquired the following property subsequent to March 31, 2015 (unaudited): | ||||||||||||||||||||||
Property | Location | Closing Date | Purchase Price (2) | Debt | # Units | Noncontrolling Interest | Effective Ownership | ||||||||||||||||
Bayberry Apartments | West Palm Beach, Florida | 15-Apr-15 | $ | 21,000,000 | $ | 12,660,000 | -1 | 222 | 10 | % | 90 | % | |||||||||||
Organization_and_Description_o1
Organization and Description of Business - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Real Estate Properties [Line Items] | |
Date of incorporation | 19-Sep-14 |
Maximum | |
Real Estate Properties [Line Items] | |
Investments in real estate-related debt and securities | 30.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Land | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets | Not depreciated |
Building | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets | 30 years |
Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets | 15 years |
Furniture, Fixtures, and Equipment | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Intangible Lease Assets | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives of assets | 6 months |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment charges related to real estate assets | $0 | $0 | |
Amortization of deferred financing fees | 306,596 | 25,440 | |
Percentage of distributions paid | 80.00% | ||
Proportion of taxable income distributed to stockholders to be considered REIT | 90.00% | ||
Number of reportable segments | 1 | ||
B H Equity | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Additional profit interest in VIE | 10.00% | ||
Percentage of distributions paid | 20.00% | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Internal rate of return in VIE | 13.00% | ||
Predecessor | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred financing costs, net | 5,647,715 | 4,632,429 | |
Amortization of deferred financing fees | $306,596 | $25,440 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Restricted Cash Held (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Security deposits | $1,498,986 | $1,574,302 |
Operating escrows | 7,648,193 | 7,299,426 |
Renovation and repair escrows | 51,399,061 | 38,943,614 |
Predecessor | ||
Restricted cash held | $60,546,240 | $47,817,342 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Investments in Joint Ventures (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
The Miramar Apartments | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2013 | |
Effective ownership percentage | 100.00% | 100.00% |
Arbors on Forest Ridge | Bedford | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Cutter's Point | Richardson | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Eagle Crest | Irving | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Meridian | Austin | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Silverbrook | Grand Prairie | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Timberglen | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Toscana | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Grove at Alban | Frederick | Maryland | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 76.00% | 76.00% |
Willowdale Crossings | Frederick | Maryland | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 80.00% | 80.00% |
Edgewater at Sandy Springs | Atlanta | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Beechwood Terrace | Nashville | Tennessee | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Willow Grove | Nashville | Tennessee | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Woodbridge | Nashville | Tennessee | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Abbington Heights | Antioch | Tennessee | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Summit at Sabal Park | Tampa | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Courtney Cove | Tampa | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Colonial Forest | Jacksonville | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Park at Blanding | Orange Park | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Park at Regency | Jacksonville | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Jade Park (FKA Wood Forest) | Daytona Beach | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Mandarin Reserve (FKA Victoria Park) | Jacksonville | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Radbourne Lake | Charlotte | North Carolina | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Timber Creek | Charlotte | North Carolina | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Belmont at Duck Creek | Garland | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Arbors | Tucker | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Crossings | Marietta | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Crossings at Holcomb Bridge | Roswell | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
The Knolls | Marietta | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Regatta Bay | Seabrook | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Sabal Palm at Lake Buena Vista | Orlando | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 90.00% | 90.00% |
Steeplechase Apartments | Fredericksburg | Virginia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2014 | |
Effective ownership percentage | 85.00% | 85.00% |
Barrington Mill | Marietta | Georgia | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
Cornerstone | Orlando | Florida | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
Dana Point | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
Heatherstone | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
Versailles | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
McMillan Place | Dallas | Texas | ||
Schedule Of Equity Method Investments [Line Items] | ||
Year of acquisition | 2015 | |
Effective ownership percentage | 90.00% | 0.00% |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Details) | Dec. 31, 2014 | Mar. 31, 2015 |
Property | Property | |
Business Acquisition [Line Items] | ||
Number of multifamily properties | 32 | |
Multifamily Properties | ||
Business Acquisition [Line Items] | ||
Number of multifamily properties | 38 |
Acquisitions_Summary_of_Invest
Acquisitions - Summary of Investment in Multifamily Properties (Details) | 3 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | |||
Property | ||||
sqft | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 10,110,478 | |||
Number of Units | 11,816 | |||
The Miramar Apartments | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 183,100 | |||
Number of Units | 314 | |||
Date Acquired | 31-Oct-13 | |||
Average Effective Monthly Rent Per Unit | 552 | [1] | ||
% Occupied | 96.50% | [2] | 92.70% | [2] |
Arbors on Forest Ridge | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 154,556 | |||
Number of Units | 210 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 781 | [1] | ||
% Occupied | 96.20% | [2] | 92.90% | [2] |
Cutter's Point | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 197,972 | |||
Number of Units | 196 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 949 | [1] | ||
% Occupied | 94.90% | [2] | 96.40% | [2] |
Eagle Crest | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 395,951 | |||
Number of Units | 447 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 756 | [1] | ||
% Occupied | 95.50% | [2] | 94.90% | [2] |
Meridian | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 148,200 | |||
Number of Units | 200 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 776 | [1] | ||
% Occupied | 94.50% | [2] | 95.00% | [2] |
Silverbrook | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 526,138 | |||
Number of Units | 642 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 682 | [1] | ||
% Occupied | 93.80% | [2] | 91.70% | [2] |
Timberglen | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 221,376 | |||
Number of Units | 304 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 717 | [1] | ||
% Occupied | 93.80% | [2] | 93.40% | [2] |
Toscana | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 115,400 | |||
Number of Units | 192 | |||
Date Acquired | 31-Jan-14 | |||
Average Effective Monthly Rent Per Unit | 625 | [1] | ||
% Occupied | 93.80% | [2] | 93.20% | [2] |
The Grove at Alban | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 267,300 | |||
Number of Units | 290 | |||
Date Acquired | 10-Mar-14 | |||
Average Effective Monthly Rent Per Unit | 941 | [1] | ||
% Occupied | 94.10% | [2] | 89.30% | [2] |
Willowdale Crossings | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 411,800 | |||
Number of Units | 432 | |||
Date Acquired | 15-May-14 | |||
Average Effective Monthly Rent Per Unit | 996 | [1] | ||
% Occupied | 87.50% | [2] | 82.90% | [2] |
Edgewater at Sandy Springs | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 726,774 | |||
Number of Units | 760 | |||
Date Acquired | 18-Jul-14 | |||
Average Effective Monthly Rent Per Unit | 778 | [1] | ||
% Occupied | 92.00% | [2] | 92.50% | [2] |
Beechwood Terrace | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 271,728 | |||
Number of Units | 300 | |||
Date Acquired | 21-Jul-14 | |||
Average Effective Monthly Rent Per Unit | 756 | [1] | ||
% Occupied | 96.00% | [2] | 98.70% | [2] |
Willow Grove | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 229,140 | |||
Number of Units | 244 | |||
Date Acquired | 21-Jul-14 | |||
Average Effective Monthly Rent Per Unit | 704 | [1] | ||
% Occupied | 96.70% | [2] | 94.70% | [2] |
Woodbridge | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 246,840 | |||
Number of Units | 220 | |||
Date Acquired | 21-Jul-14 | |||
Average Effective Monthly Rent Per Unit | 840 | [1] | ||
% Occupied | 94.50% | [2] | 90.50% | [2] |
Abbington Heights | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 238,974 | |||
Number of Units | 274 | |||
Date Acquired | 1-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 755 | [1] | ||
% Occupied | 96.40% | [2] | 96.00% | [2] |
The Summit at Sabal Park | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 204,545 | |||
Number of Units | 252 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 802 | [1] | ||
% Occupied | 93.30% | [2] | 88.50% | [2] |
Courtney Cove | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 224,958 | |||
Number of Units | 324 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 694 | [1] | ||
% Occupied | 94.10% | [2] | 95.10% | [2] |
Colonial Forest | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 160,093 | |||
Number of Units | 174 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 612 | [1] | ||
% Occupied | 90.80% | [2] | 94.80% | [2] |
Park at Blanding | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 116,410 | |||
Number of Units | 117 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 753 | [1] | ||
% Occupied | 94.00% | [2] | 88.90% | [2] |
Park at Regency | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 134,253 | |||
Number of Units | 159 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 735 | [1] | ||
% Occupied | 93.10% | [2] | 91.20% | [2] |
Jade Park (FKA Wood Forest) | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 118,392 | |||
Number of Units | 144 | |||
Date Acquired | 20-Aug-14 | |||
Average Effective Monthly Rent Per Unit | 698 | [1] | ||
% Occupied | 91.00% | [2] | 96.50% | [2] |
Mandarin Reserve (FKA Victoria Park) | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 449,276 | |||
Number of Units | 520 | |||
Date Acquired | 15-Sep-14 | |||
Average Effective Monthly Rent Per Unit | 677 | [1] | ||
% Occupied | 95.40% | [2] | 95.40% | [2] |
Radbourne Lake | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 246,599 | |||
Number of Units | 225 | |||
Date Acquired | 30-Sep-14 | |||
Average Effective Monthly Rent Per Unit | 930 | [1] | ||
% Occupied | 93.80% | [2] | 92.40% | [2] |
Timber Creek | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 248,391 | |||
Number of Units | 352 | |||
Date Acquired | 30-Sep-14 | |||
Average Effective Monthly Rent Per Unit | 716 | [1] | ||
% Occupied | 88.10% | [2] | 93.20% | [2] |
Belmont at Duck Creek | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 198,279 | |||
Number of Units | 240 | |||
Date Acquired | 30-Sep-14 | |||
Average Effective Monthly Rent Per Unit | 825 | [1] | ||
% Occupied | 93.30% | [2] | 93.80% | [2] |
The Arbors | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 127,536 | |||
Number of Units | 140 | |||
Date Acquired | 16-Oct-14 | |||
Average Effective Monthly Rent Per Unit | 734 | [1] | ||
% Occupied | 91.40% | [2] | 92.10% | [2] |
The Crossings | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 377,840 | |||
Number of Units | 380 | |||
Date Acquired | 16-Oct-14 | |||
Average Effective Monthly Rent Per Unit | 699 | [1] | ||
% Occupied | 96.30% | [2] | 94.70% | [2] |
The Crossings at Holcomb Bridge | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 247,982 | |||
Number of Units | 268 | |||
Date Acquired | 16-Oct-14 | |||
Average Effective Monthly Rent Per Unit | 729 | [1] | ||
% Occupied | 95.10% | [2] | 93.70% | [2] |
The Knolls | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 311,160 | |||
Number of Units | 312 | |||
Date Acquired | 16-Oct-14 | |||
Average Effective Monthly Rent Per Unit | 778 | [1] | ||
% Occupied | 93.90% | [2] | 95.20% | [2] |
Regatta Bay | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 200,440 | |||
Number of Units | 240 | |||
Date Acquired | 4-Nov-14 | |||
Average Effective Monthly Rent Per Unit | 955 | [1] | ||
% Occupied | 95.00% | [2] | 96.30% | [2] |
Sabal Palm at Lake Buena Vista | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 370,768 | |||
Number of Units | 400 | |||
Date Acquired | 5-Nov-14 | |||
Average Effective Monthly Rent Per Unit | 1,053 | [1] | ||
% Occupied | 93.00% | [2] | 95.00% | [2] |
Steeplechase Apartments | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 115,712 | |||
Number of Units | 156 | |||
Date Acquired | 18-Dec-14 | |||
Average Effective Monthly Rent Per Unit | 1,005 | [1] | ||
% Occupied | 89.10% | [2] | 92.90% | [2] |
McMillan Place | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 290,051 | |||
Number of Units | 402 | |||
Date Acquired | 15-Jan-15 | |||
Average Effective Monthly Rent Per Unit | 667 | [1] | ||
% Occupied | 92.30% | [2] | ||
Cornerstone | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 317,565 | |||
Number of Units | 430 | |||
Date Acquired | 15-Jan-15 | |||
Average Effective Monthly Rent Per Unit | 827 | [1] | ||
% Occupied | 90.70% | [2] | ||
Barrington Mill | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 692,180 | |||
Number of Units | 752 | |||
Date Acquired | 6-Feb-15 | |||
Average Effective Monthly Rent Per Unit | 709 | [1] | ||
% Occupied | 96.00% | [2] | ||
Dana Point | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 206,276 | |||
Number of Units | 264 | |||
Date Acquired | 26-Feb-15 | |||
Average Effective Monthly Rent Per Unit | 772 | [1] | ||
% Occupied | 94.70% | [2] | ||
Heatherstone | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 115,615 | |||
Number of Units | 152 | |||
Date Acquired | 26-Feb-15 | |||
Average Effective Monthly Rent Per Unit | 762 | [1] | ||
% Occupied | 92.80% | [2] | ||
Versailles | ||||
Real Estate Properties [Line Items] | ||||
Rentable Square Footage | 300,908 | |||
Number of Units | 388 | |||
Date Acquired | 26-Feb-15 | |||
Average Effective Monthly Rent Per Unit | 800 | [1] | ||
% Occupied | 92.00% | [2] | ||
[1] | Average effective monthly rent per unit is equal to the average of (i) the contractual rent for commenced leases as of March 31, 2015 minus any tenant concession over the term of the lease, divided by (ii) the number of units under commenced leases as of March 31, 2015. | |||
[2] | Percent occupied is calculated as (i) the number of units occupied as of March 31, 2015, and at December 31, 2014, divided by total number of units, expressed as a percentage. |
Real_Estate_Investments_Summar
Real Estate Investments - Summary of Major Components of Investments in Multifamily Properties (Details) (Multifamily Properties, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real Estate Properties [Line Items] | ||
Real estate investment, gross | $807,370,568 | $650,313,847 |
Accumulated depreciation and amortization | -20,515,228 | -21,787,940 |
Total Net Operating Real Estate Investments | 786,855,340 | 628,525,907 |
Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,432,000 | 17,884,000 |
Accumulated depreciation and amortization | -5,351,567 | -12,442,170 |
Total Net Operating Real Estate Investments | 4,080,433 | 5,441,830 |
Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 157,730,000 | 129,320,000 |
Total Net Operating Real Estate Investments | 157,730,000 | 129,320,000 |
Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 619,741,634 | 488,292,528 |
Accumulated depreciation and amortization | -13,913,263 | -8,533,478 |
Total Net Operating Real Estate Investments | 605,828,371 | 479,759,050 |
Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,060,566 | 6,530,212 |
Total Net Operating Real Estate Investments | 9,060,566 | 6,530,212 |
Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 11,406,368 | 8,287,107 |
Accumulated depreciation and amortization | -1,250,398 | -812,292 |
Total Net Operating Real Estate Investments | 10,155,970 | 7,474,815 |
The Miramar Apartments | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,451,944 | 10,659,226 |
The Miramar Apartments | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 290,000 | |
The Miramar Apartments | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,580,000 | 1,580,000 |
The Miramar Apartments | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 8,369,256 | 8,355,872 |
The Miramar Apartments | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 51,108 | |
The Miramar Apartments | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 451,579 | 433,354 |
Arbors on Forest Ridge | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 13,478,616 | 13,738,780 |
Arbors on Forest Ridge | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 312,000 | |
Arbors on Forest Ridge | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,330,000 | 2,330,000 |
Arbors on Forest Ridge | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,860,861 | 10,831,742 |
Arbors on Forest Ridge | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,556 | |
Arbors on Forest Ridge | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 287,754 | 263,482 |
Cutter's Point | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,392,623 | 16,655,001 |
Cutter's Point | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 352,000 | |
Cutter's Point | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,330,000 | 3,330,000 |
Cutter's Point | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 12,666,499 | 12,619,109 |
Cutter's Point | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 24,701 | 27,633 |
Cutter's Point | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 371,423 | 326,259 |
Eagle Crest | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 27,689,673 | 28,158,275 |
Eagle Crest | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 654,000 | |
Eagle Crest | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,450,000 | 5,450,000 |
Eagle Crest | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 21,502,269 | 21,465,476 |
Eagle Crest | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 255,092 | 125,369 |
Eagle Crest | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 482,312 | 463,430 |
Meridian | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 12,829,639 | 13,065,712 |
Meridian | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 299,000 | |
Meridian | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,310,000 | 2,310,000 |
Meridian | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,285,125 | 10,258,263 |
Meridian | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 324 | |
Meridian | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 234,190 | 198,449 |
Silverbrook | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 30,621,029 | 31,192,744 |
Silverbrook | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 793,000 | |
Silverbrook | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 4,860,000 | 4,860,000 |
Silverbrook | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 24,593,306 | 24,543,851 |
Silverbrook | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 160,361 | 92,461 |
Silverbrook | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,007,362 | 903,432 |
Timberglen | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 17,009,701 | 17,304,183 |
Timberglen | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 408,000 | |
Timberglen | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,510,000 | 2,510,000 |
Timberglen | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 14,085,555 | 14,076,404 |
Timberglen | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 81,645 | 375 |
Timberglen | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 332,500 | 309,404 |
Toscana | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,078,445 | 9,173,844 |
Toscana | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 230,000 | |
Toscana | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,730,000 | 1,730,000 |
Toscana | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 7,006,461 | 6,961,530 |
Toscana | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 80,284 | 23,145 |
Toscana | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 261,700 | 229,169 |
The Grove at Alban | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 22,959,123 | 23,682,910 |
The Grove at Alban | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 796,000 | |
The Grove at Alban | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,640,000 | 3,640,000 |
The Grove at Alban | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 18,928,816 | 18,913,344 |
The Grove at Alban | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 92,690 | 104,844 |
The Grove at Alban | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 297,617 | 228,722 |
Willowdale Crossings | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 40,742,787 | 41,768,036 |
Willowdale Crossings | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,172,000 | |
Willowdale Crossings | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 4,650,000 | 4,650,000 |
Willowdale Crossings | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 35,540,995 | 35,543,667 |
Willowdale Crossings | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 65,264 | 1,200 |
Willowdale Crossings | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 486,529 | 401,169 |
Edgewater at Sandy Springs | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 58,216,076 | 59,581,387 |
Edgewater at Sandy Springs | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,930,000 | |
Edgewater at Sandy Springs | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 14,290,000 | 14,290,000 |
Edgewater at Sandy Springs | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 41,318,896 | 41,094,413 |
Edgewater at Sandy Springs | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,378,139 | 1,261,227 |
Edgewater at Sandy Springs | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,229,042 | 1,005,747 |
Beechwood Terrace | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 21,785,135 | 21,801,663 |
Beechwood Terrace | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 409,000 | |
Beechwood Terrace | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,390,000 | 1,390,000 |
Beechwood Terrace | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 20,124,973 | 19,680,820 |
Beechwood Terrace | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 38,727 | 164,621 |
Beechwood Terrace | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 231,435 | 157,222 |
Willow Grove | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 14,643,939 | 14,489,953 |
Willow Grove | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 298,000 | |
Willow Grove | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,940,000 | 3,940,000 |
Willow Grove | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,990,585 | 9,512,555 |
Willow Grove | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 539,035 | 647,574 |
Willow Grove | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 174,319 | 91,824 |
Woodbridge | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,234,845 | 16,489,182 |
Woodbridge | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 334,000 | |
Woodbridge | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,650,000 | 3,650,000 |
Woodbridge | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 12,063,289 | 12,020,293 |
Woodbridge | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 305,915 | 305,915 |
Woodbridge | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 215,642 | 178,974 |
Abbington Heights | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 18,148,424 | 18,314,856 |
Abbington Heights | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 400,000 | |
Abbington Heights | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,770,000 | 1,770,000 |
Abbington Heights | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,117,302 | 15,863,951 |
Abbington Heights | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 39,666 | 110,310 |
Abbington Heights | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 221,456 | 170,595 |
The Summit at Sabal Park | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 19,190,665 | 19,449,182 |
The Summit at Sabal Park | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 404,000 | |
The Summit at Sabal Park | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,770,000 | 5,770,000 |
The Summit at Sabal Park | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 13,021,170 | 12,972,098 |
The Summit at Sabal Park | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 125,330 | 81,884 |
The Summit at Sabal Park | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 274,165 | 221,200 |
Courtney Cove | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 19,008,375 | 19,189,902 |
Courtney Cove | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 431,000 | |
Courtney Cove | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,880,000 | 5,880,000 |
Courtney Cove | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 12,569,229 | 12,486,882 |
Courtney Cove | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 153,913 | 80,447 |
Courtney Cove | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 405,233 | 311,573 |
Colonial Forest | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,713,794 | 5,801,906 |
Colonial Forest | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 186,000 | |
Colonial Forest | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,090,000 | 2,090,000 |
Colonial Forest | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,134,390 | 3,116,687 |
Colonial Forest | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 289,101 | 242,841 |
Colonial Forest | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 200,304 | 166,378 |
Park at Blanding | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 6,636,279 | 6,773,358 |
Park at Blanding | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 177,000 | |
Park at Blanding | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,610,000 | 2,610,000 |
Park at Blanding | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,874,234 | 3,691,461 |
Park at Blanding | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 24,781 | 183,739 |
Park at Blanding | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 127,263 | 111,158 |
Park at Regency | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 8,366,651 | 8,440,615 |
Park at Regency | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 220,000 | |
Park at Regency | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,620,000 | 2,620,000 |
Park at Regency | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,352,249 | 5,343,919 |
Park at Regency | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 138,050 | 60,558 |
Park at Regency | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 256,352 | 196,138 |
Jade Park (FKA Wood Forest) | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 8,024,975 | 8,059,489 |
Jade Park (FKA Wood Forest) | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 200,000 | |
Jade Park (FKA Wood Forest) | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,490,000 | 1,490,000 |
Jade Park (FKA Wood Forest) | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 6,166,312 | 6,061,395 |
Jade Park (FKA Wood Forest) | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 224,596 | 218,688 |
Jade Park (FKA Wood Forest) | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 144,067 | 89,406 |
Mandarin Reserve (FKA Victoria Park) | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 26,469,110 | 26,991,944 |
Mandarin Reserve (FKA Victoria Park) | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 701,000 | |
Mandarin Reserve (FKA Victoria Park) | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,610,000 | 5,610,000 |
Mandarin Reserve (FKA Victoria Park) | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 19,699,737 | 19,679,711 |
Mandarin Reserve (FKA Victoria Park) | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 741,759 | 701,020 |
Mandarin Reserve (FKA Victoria Park) | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 417,614 | 300,213 |
Radbourne Lake | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 23,989,559 | 24,425,911 |
Radbourne Lake | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 652,000 | |
Radbourne Lake | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,440,000 | 2,440,000 |
Radbourne Lake | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 20,950,098 | 20,830,406 |
Radbourne Lake | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 168,636 | 148,114 |
Radbourne Lake | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 430,825 | 355,391 |
Timber Creek | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 23,821,529 | 23,825,415 |
Timber Creek | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 799,000 | |
Timber Creek | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 11,260,000 | 11,260,000 |
Timber Creek | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,755,680 | 10,704,510 |
Timber Creek | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,652,306 | 948,430 |
Timber Creek | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 153,543 | 113,475 |
Belmont at Duck Creek | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 19,017,354 | 19,242,715 |
Belmont at Duck Creek | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 436,000 | |
Belmont at Duck Creek | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,910,000 | 1,910,000 |
Belmont at Duck Creek | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,875,625 | 16,654,792 |
Belmont at Duck Creek | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,894 | 107,063 |
Belmont at Duck Creek | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 221,835 | 134,860 |
The Arbors | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 8,290,873 | 7,980,032 |
The Arbors | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 199,000 | 199,000 |
The Arbors | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,730,000 | 1,730,000 |
The Arbors | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,859,987 | 5,844,105 |
The Arbors | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 403,110 | 162,100 |
The Arbors | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 98,776 | 44,827 |
The Crossings | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 21,990,712 | 21,741,097 |
The Crossings | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 834,000 | 834,000 |
The Crossings | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 4,150,000 | 4,150,000 |
The Crossings | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,139,574 | 16,138,747 |
The Crossings | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 611,754 | 491,672 |
The Crossings | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 255,384 | 126,678 |
The Crossings at Holcomb Bridge | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,506,065 | 16,078,768 |
The Crossings at Holcomb Bridge | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 616,000 | 616,000 |
The Crossings at Holcomb Bridge | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 5,560,000 | 5,560,000 |
The Crossings at Holcomb Bridge | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,811,712 | 9,788,284 |
The Crossings at Holcomb Bridge | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 316,550 | 48,173 |
The Crossings at Holcomb Bridge | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 201,804 | 66,311 |
The Knolls | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 21,539,917 | 21,332,740 |
The Knolls | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 759,000 | 759,000 |
The Knolls | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,410,000 | 3,410,000 |
The Knolls | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,935,843 | 16,931,399 |
The Knolls | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 203,470 | 107,984 |
The Knolls | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 231,605 | 124,357 |
Regatta Bay | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 18,362,149 | 18,288,810 |
Regatta Bay | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 714,000 | 714,000 |
Regatta Bay | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,660,000 | 1,660,000 |
Regatta Bay | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 15,803,412 | 15,803,412 |
Regatta Bay | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 17,186 | 1,014 |
Regatta Bay | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 167,550 | 110,384 |
Sabal Palm at Lake Buena Vista | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 49,838,356 | 49,616,211 |
Sabal Palm at Lake Buena Vista | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,387,000 | 1,387,000 |
Sabal Palm at Lake Buena Vista | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 7,580,000 | 7,580,000 |
Sabal Palm at Lake Buena Vista | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 40,133,564 | 40,130,430 |
Sabal Palm at Lake Buena Vista | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 282,225 | 80,255 |
Sabal Palm at Lake Buena Vista | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 455,566 | 438,526 |
Steeplechase Apartments | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 17,173,113 | 17,000,000 |
Steeplechase Apartments | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 492,000 | 492,000 |
Steeplechase Apartments | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 6,120,000 | 6,120,000 |
Steeplechase Apartments | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,373,000 | 10,373,000 |
Steeplechase Apartments | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 116,345 | |
Steeplechase Apartments | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 71,768 | 15,000 |
Barrington Mill | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 58,299,463 | |
Barrington Mill | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,814,000 | |
Barrington Mill | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 10,170,000 | |
Barrington Mill | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 45,912,126 | |
Barrington Mill | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 264,359 | |
Barrington Mill | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 138,978 | |
Cornerstone | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 31,995,590 | |
Cornerstone | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 894,000 | |
Cornerstone | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 1,500,000 | |
Cornerstone | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 29,322,368 | |
Cornerstone | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 201,848 | |
Cornerstone | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 77,375 | |
Dana Point | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,236,502 | |
Dana Point | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 362,000 | |
Dana Point | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 4,090,000 | |
Dana Point | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 11,548,000 | |
Dana Point | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 236,502 | |
Heatherstone | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 9,451,275 | |
Heatherstone | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 208,000 | |
Heatherstone | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,320,000 | |
Heatherstone | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 6,787,000 | |
Heatherstone | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 136,275 | |
Versailles | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 26,167,275 | |
Versailles | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 581,000 | |
Versailles | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 6,720,000 | |
Versailles | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 18,519,000 | |
Versailles | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 347,275 | |
McMillan Place | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 20,998,988 | |
McMillan Place | Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 572,000 | |
McMillan Place | Land | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 3,610,000 | |
McMillan Place | Improvements | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 16,743,136 | |
McMillan Place | Construction in Progress | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | 2,404 | |
McMillan Place | Furniture, Fixtures, and Equipment | ||
Real Estate Properties [Line Items] | ||
Real estate investment, gross | $71,448 |
Real_Estate_Investments_Additi
Real Estate Investments - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Real Estate Properties [Line Items] | ||
Depreciation expense | $5,818,665 | $735,525 |
Intangible Lease Assets | ||
Real Estate Properties [Line Items] | ||
Amortization expense of intangible lease assets | 5,791,625 | 1,275,666 |
Amortization expense, remainder of fiscal year | $4,080,433 |
Pro_Forma_Financial_Informatio2
Pro Forma Financial Information (Unaudited) - Additional Information (Details) (USD $) | 3 Months Ended | 15 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | Apr. 15, 2015 | |
Property | Property | ||
Pro Forma Financial Information [Line Items] | |||
Number of properties acquired | 37 | ||
General and administrative fees expected | $950,000 | ||
Subsequent Event | |||
Pro Forma Financial Information [Line Items] | |||
Additional property acquired | 1 |
Pro_Forma_Financial_Informatio3
Pro Forma Financial Information (Unaudited) - Summary of Pro Forma Financial Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure - Pro Forma Financial Information (Unaudited) - Summary of Pro Forma Financial Information (Details) [Line Items] | ||
Total revenues, pro forma | $28,286,111 | $27,048,805 |
Net income (loss), pro forma | 1,114,373 | -11,038,316 |
Predecessor | ||
Disclosure - Pro Forma Financial Information (Unaudited) - Summary of Pro Forma Financial Information (Details) [Line Items] | ||
Total revenue, actual | 25,537,470 | 3,976,985 |
Net loss | ($5,892,549) | ($2,622,841) |
Debt_Summary_of_Mortgage_Debt_
Debt - Summary of Mortgage Debt Nonrecourse to Company and Encumbers Multifamily Properties (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Debt Instrument [Line Items] | |
Outstanding Principal | $610,742,826 |
Cornerstone | Debt With Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Mortgages Payable | 23,775,000 |
Interest Rate | 4.09% |
Mortgages Payable | |
Debt Instrument [Line Items] | |
Outstanding Principal | 610,742,826 |
Valuation adjustments | 374,234 |
Mortgages Payable | 611,117,060 |
Mortgages Payable | The Miramar Apartments | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 8,400,000 |
Interest Rate | 2.40% |
Maturity Date | 1-Feb-25 |
Mortgages Payable | Arbors on Forest Ridge | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 10,244,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Cutter's Point | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 12,676,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Eagle Crest | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 21,860,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Meridian | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 9,840,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Silverbrook | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 24,320,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Timberglen | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 13,560,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Toscana | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 7,100,000 |
Interest Rate | 2.91% |
Maturity Date | 1-Feb-21 |
Mortgages Payable | Beechwood Terrace | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 17,120,000 |
Interest Rate | 2.26% |
Maturity Date | 1-Aug-21 |
Mortgages Payable | Colonial Forest | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 4,125,000 |
Interest Rate | 2.34% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | Courtney Cove | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 14,210,000 |
Interest Rate | 2.26% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | Edgewater at Sandy Springs | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 43,550,000 |
Interest Rate | 2.27% |
Maturity Date | 1-Aug-21 |
Mortgages Payable | The Grove at Alban | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 18,720,000 |
Interest Rate | 2.72% |
Maturity Date | 1-Apr-21 |
Mortgages Payable | Park at Blanding | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 4,875,000 |
Interest Rate | 2.34% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | Park at Regency | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 6,225,000 |
Interest Rate | 2.34% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | The Summit at Sabal Park | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 14,287,000 |
Interest Rate | 2.26% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | Mandarin Reserve (FKA Victoria Park) | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 19,650,000 |
Interest Rate | 2.28% |
Maturity Date | 1-Oct-21 |
Mortgages Payable | Willow Grove | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 11,000,000 |
Interest Rate | 2.29% |
Maturity Date | 1-Aug-21 |
Mortgages Payable | Willowdale Crossings | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 32,800,000 |
Interest Rate | 2.45% |
Maturity Date | 1-Jun-21 |
Mortgages Payable | Jade Park (FKA Wood Forest) | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 5,850,000 |
Interest Rate | 2.33% |
Maturity Date | 1-Sep-21 |
Mortgages Payable | Woodbridge | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 12,800,000 |
Interest Rate | 2.27% |
Maturity Date | 1-Aug-21 |
Mortgages Payable | Steeplechase | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 13,600,000 |
Interest Rate | 2.29% |
Maturity Date | 1-Jan-22 |
Mortgages Payable | Barrington Mill | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 43,500,000 |
Interest Rate | 2.14% |
Maturity Date | 1-Mar-22 |
Mortgages Payable | Dana Point | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 12,176,000 |
Interest Rate | 2.23% |
Maturity Date | 1-Mar-22 |
Mortgages Payable | Heatherstone | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 7,087,000 |
Interest Rate | 2.26% |
Maturity Date | 1-Mar-22 |
Mortgages Payable | Versailles | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 19,623,000 |
Interest Rate | 2.21% |
Maturity Date | 1-Mar-22 |
Mortgages Payable | Timber Creek | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 19,482,000 |
Interest Rate | 2.00% |
Maturity Date | 1-Oct-24 |
Mortgages Payable | Radbourne Lake | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 19,213,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Oct-24 |
Mortgages Payable | The Arbors | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 5,812,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Nov-24 |
Mortgages Payable | The Crossings | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 16,200,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Nov-24 |
Mortgages Payable | The Crossings at Holcomb Bridge | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 12,450,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Nov-24 |
Mortgages Payable | The Knolls | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 16,038,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Nov-24 |
Mortgages Payable | McMillan Place | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 15,738,000 |
Interest Rate | 2.10% |
Maturity Date | 1-Feb-25 |
Mortgages Payable | Abbington Heights | Debt With Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 10,544,915 |
Interest Rate | 3.79% |
Maturity Date | 1-Sep-22 |
Mortgages Payable | Belmont at Duck Creek | Debt With Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 84 months |
Amortization (months) | 360 months |
Outstanding Principal | 11,480,786 |
Interest Rate | 4.68% |
Maturity Date | 1-Sep-18 |
Mortgages Payable | Regatta Bay | Debt With Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 480 months |
Amortization (months) | 480 months |
Outstanding Principal | 13,131,125 |
Interest Rate | 4.85% |
Maturity Date | 1-Aug-50 |
Mortgages Payable | Sabal Palm at Lake Buena Vista | Debt With Floating Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | 37,680,000 |
Interest Rate | 1.99% |
Maturity Date | 1-Dec-24 |
Mortgages Payable | Cornerstone | Debt With Fixed Interest Rate | |
Debt Instrument [Line Items] | |
Term (months) | 120 months |
Amortization (months) | 360 months |
Outstanding Principal | $23,775,000 |
Interest Rate | 4.24% |
Maturity Date | 1-Mar-23 |
Debt_Summary_of_Mortgage_Debt_1
Debt - Summary of Mortgage Debt Nonrecourse to Company and Encumbers Multifamily Properties (Parenthetical) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
25th month through 81st month | |
Debt Instrument [Line Items] | |
Mortgage loans description | Loan can be pre-paid starting in the 25th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |
13th month through 81st month | |
Debt Instrument [Line Items] | |
Mortgage loans description | Loans can be pre-paid starting in the 13th month of the term through the 81st month of the term at par plus 1.00% of the unpaid principal balance and at par during the last three months of the term. |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |
13th month through 116th month | |
Debt Instrument [Line Items] | |
Mortgage loans description | Loans can be pre-paid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term. |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |
Abbington Heights | Last Three Months | |
Debt Instrument [Line Items] | |
Mortgage loans description | Debt was assumed upon acquisition of this property and approximated fair value. The loan is open to pre-payment in the last three months of the term. |
Belmont at Duck Creek | Last Six Months | |
Debt Instrument [Line Items] | |
Mortgage loans description | Debt was assumed upon acquisition of this property. An adjustment was made to approximate the debt to fair value. The loan is open to pre-payment in the last six months of the term. |
Regatta Bay | Housing and Urban Development (bHUDb) | |
Debt Instrument [Line Items] | |
Mortgage loans description | Debt was assumed upon acquisition of this property and is a Housing and Urban Development (bHUDb) loan that is fully amortizing and approximated fair value. Debt is insured by HUD under the Section 221(d)(4) program. |
The Miramar Apartments | 25th month through 36th month | |
Debt Instrument [Line Items] | |
Mortgage loans description | Loan can be pre-paid within the first 12 months of the term at par plus 1.00% of the unpaid principal balance, loan can be pre-paid starting in the 13th month of the term through the 24th month of the term at par plus 0.50% of the unpaid principal balance, loan can be pre-paid starting in the 25th month of the term through the 36th month of the term at par plus 0.25% of the unpaid principal balance and at par during the last two years of the term. |
Loan prepayment fee as a percentage of unpaid principal balance | 0.25% |
The Miramar Apartments | First 12 months | |
Debt Instrument [Line Items] | |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |
The Miramar Apartments | 13th month through 24th month | |
Debt Instrument [Line Items] | |
Loan prepayment fee as a percentage of unpaid principal balance | 0.50% |
Sabal Palm at Lake Buena Vista | |
Debt Instrument [Line Items] | |
Mortgage loans description | Loan can be pre-paid in the first 12 months of the term at par plus 5.00% and can also be prepaid starting in the 13th month of the term through the 116th month of the term at par plus 1.00% of the unpaid principal balance and at par during the last four months of the term |
Sabal Palm at Lake Buena Vista | First 12 months | |
Debt Instrument [Line Items] | |
Loan prepayment fee as a percentage of unpaid principal balance | 5.00% |
Sabal Palm at Lake Buena Vista | 13th month through 116th month | |
Debt Instrument [Line Items] | |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |
Mortgages Payable | LIBOR | |
Debt Instrument [Line Items] | |
LIBOR, one month interest rate | 0.18% |
Mortgages Payable | Abbington Heights | |
Debt Instrument [Line Items] | |
Interest Rate | 3.79% |
Mortgages Payable | Belmont at Duck Creek | |
Debt Instrument [Line Items] | |
Interest Rate | 4.68% |
Mortgages Payable | Regatta Bay | |
Debt Instrument [Line Items] | |
Interest Rate | 4.85% |
Mortgages Payable | Cornerstone | |
Debt Instrument [Line Items] | |
Interest Rate | 4.24% |
Debt With Fixed Interest Rate | Cornerstone | |
Debt Instrument [Line Items] | |
Interest Rate | 4.09% |
Fair value of debt assumed upon acquisition | 18,000,000 |
Debt instrument, payment terms | The assumed debt carries a 4.09% fixed rate, was originally issued in March 2013 and had a term of 120 months with an initial 24 months of interest only. |
Mortgages payable (including from VIEs of $602,717,060 and $480,976,130, respectively) | 23,775,000 |
Blended pay rate | 4.24% |
Debt With Fixed Interest Rate | Cornerstone | First Mortgage | |
Debt Instrument [Line Items] | |
Debt instrument, payment terms | At the time of acquisition, the principal balance of the first mortgage remained unchanged and had a remaining term of 98 months with 2 months interest only. The first mortgage is prepayable and subject to yield maintenance from month 13 through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. |
Debt With Fixed Interest Rate | Cornerstone | Second Mortgage | |
Debt Instrument [Line Items] | |
Interest Rate | 4.70% |
Debt instrument, payment terms | The supplemental second mortgage is prepayable and subject to yield maintenance from the date of issuance through August 31, 2022 and is prepayable at par September 1, 2022 until maturity. |
Mortgage on the property with a principal amount | 5,775,000 |
Debt_Additional_Information_De
Debt - Additional Information (Details) | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate of mortgage indebtedness | 2.53% | 2.65% |
Debt_Schedule_of_Debt_Maturiti
Debt - Schedule of Debt Maturities (Details) (USD $) | Mar. 31, 2015 |
Debt Disclosure [Abstract] | |
Remainder of 2015 | $829,539 |
2016 | 4,632,983 |
2017 | 8,087,338 |
2018 | 13,668,179 |
2019 | 14,583,922 |
Thereafter | 568,940,865 |
Total | $610,742,826 |
Fair_Value_Measures_and_Financ2
Fair Value Measures and Financial Instruments - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Property | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Properties acquired | 32 | ||
Properties acquired for cash | $633,200,000 | ||
Purchased price of land | 129,320,000 | ||
Building, building improvements, furniture, fixtures and equipment | 485,996,000 | ||
Intangible lease assets gross | 17,884,000 | ||
Derivatives cap weighted average interest rate | 6.00% | ||
Earnings ineffectiveness to derivatives designated as cash flow hedges | 0 | ||
Change in fair value on hedging derivative instruments | 0 | ||
Debt With Floating Interest Rate | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Interest rate on variable rate loans | 2.02% | 2.02% | |
Debt With Fixed Interest Rate | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Fixed rate debt, minimum | 3.70% | ||
Fixed rate debt, maximum | 3.90% | ||
Minimum | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Interest rate caps term range | 3 years | ||
Maximum | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Interest rate caps term range | 4 years | ||
Additional Real Estate Properties Acquisition | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Properties acquired | 6 | ||
Properties acquired for cash | 162,588,400 | ||
Purchased price of land | 28,410,000 | ||
Building, building improvements, furniture, fixtures and equipment | 129,747,400 | ||
Intangible lease assets gross | $4,431,000 | ||
Level 2 Inputs | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Properties acquired | 3 | ||
Level 2 Inputs | Additional Real Estate Properties Acquisition | |||
Fair Value Inputs Assets Quantitative Information [Line Items] | |||
Properties acquired | 1 |
Fair_Value_Measures_and_Financ3
Fair Value Measures and Financial Instruments - Summary of Critical Assumptions (Details) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 5.50% |
Growth rate revenues | 1.60% |
Growth rate operating costs | 1.60% |
Maximum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount rate | 10.70% |
Growth rate revenues | 3.30% |
Growth rate operating costs | 3.30% |
Going-in cap rate | Minimum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Going-in cap rate | 4.80% |
Going-in cap rate | Maximum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Going-in cap rate | 6.20% |
Terminal cap rate | Minimum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Going-in cap rate | 5.20% |
Terminal cap rate | Maximum | |
Fair Value Inputs Assets Quantitative Information [Line Items] | |
Going-in cap rate | 6.80% |
Fair_Value_Measures_and_Financ4
Fair Value Measures and Financial Instruments - Outstanding Interest Rate Derivatives Designated as Cash Flow Hedges of Interest Rate Risk (Details) (Designated as hedging instrument, Interest rate caps, USD $) | Mar. 31, 2015 |
DerivativeInstrument | |
Designated as hedging instrument | Interest rate caps | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Interest rate caps | 14 |
Interest rate caps | $246,999,000 |
Fair_Value_Measures_and_Financ5
Fair Value Measures and Financial Instruments - Outstanding Interest Rate Derivatives Not Designated as Cash Flow Hedges of Interest Rate Risk (Details) (Not designated as hedging instrument, Interest rate caps, USD $) | Mar. 31, 2015 |
DerivativeInstrument | |
Not designated as hedging instrument | Interest rate caps | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Interest rate caps | 20 |
Interest rate caps | $304,812,000 |
Fair_Value_Measures_and_Financ6
Fair Value Measures and Financial Instruments - Summary of Derivative Financial Instruments and Classification on the Combined Consolidated Balance Sheet (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate caps | $369,107 | $458,033 |
Other assets | Interest rate caps | Designated as hedging instrument | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate caps | 289,903 | 263,301 |
Other assets | Interest rate caps | Not designated as hedging instrument | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Interest rate caps | $79,203 | $194,732 |
Fair_Value_Measures_and_Financ7
Fair Value Measures and Financial Instruments - Summary of Derivative Financial Instruments and Combined Consolidated Statements of Operations and Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative (effective portion) | ($269,758) | |
Amount of gain (loss) recognized in income | -115,529 | -204,903 |
Interest rate caps | Interest Expense | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative (effective portion) | -269,758 | |
Amount of gain (loss) recognized in income | ($115,529) | ($204,903) |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Asset management fee percent | 0.50% | |
Asset management fees | $126,715 | $16,959 |
Nex Point Advisors | ||
Related Party Transaction [Line Items] | ||
Asset management fee percent | 1.00% | |
Percentage of monthly payable administrative fee | 0.20% | |
Predecessor | Nex Point Advisors | ||
Related Party Transaction [Line Items] | ||
Percentage of monthly paid annual fee | 1.00% | |
Percentage of monthly payable administrative fee | 0.20% | |
Management and administration fees | 1,276,687 | 108,199 |
Maximum | Nex Point Advisors | ||
Related Party Transaction [Line Items] | ||
Management and administrative fee percentage | 1.50% | |
Management and administrative fees on contributed assets | 5,691,428 | |
BH Management Services, LLC | ||
Related Party Transaction [Line Items] | ||
Asset management fee percent | 3.00% | |
Inspection of properties fee, per unit | 15 | |
Other owner approved fees, per hour | 55 | |
Property management fees | 758,814 | 122,624 |
Construction supervision fee | $140,948 | $0 |
BH Management Services, LLC | Maximum | ||
Related Party Transaction [Line Items] | ||
Construction supervision fee, percent fee | 6.00% | |
BH Management Services, LLC | Minimum | ||
Related Party Transaction [Line Items] | ||
Construction supervision fee, percent fee | 5.00% |
Subsequent_Events_Summary_of_A
Subsequent Events - Summary of Acquired Property (Details) (USD $) | 0 Months Ended | |
Apr. 15, 2015 | Mar. 31, 2015 | |
Units | Property | |
Subsequent Event [Line Items] | ||
# Units | 11,816 | |
Bayberry Apartments | West Palm Beach | Florida | ||
Subsequent Event [Line Items] | ||
Closing Date | 15-Apr-15 | |
Purchase Price | $21,000,000 | |
Debt | $12,660,000 | |
# Units | 222 | |
Noncontrolling Interest | 10.00% | |
Effective ownership percentage | 90.00% |
Subsequent_Events_Summary_of_A1
Subsequent Events - Summary of Acquired Property (Parenthetical) (Details) (Debt With Floating Interest Rate) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||
New loan floating interest rate | 2.02% | 2.02% |
Bayberry Apartments | ||
Subsequent Event [Line Items] | ||
New loan floating interest rate | 1.80% | |
Debt instrument description | floating interest rate at 1.80% over the one-month LIBOR over an 84 month term, with an initial 48 months of interest only, that matures on May 1, 2022. | |
Maturity Date | 1-May-22 | |
Derivative cap interest rate | 7.75% | |
Loan prepayment fee as a percentage of unpaid principal balance | 1.00% |