CNL Healthcare Properties II (CHPII) 10-K 15 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 06, 2017	Jun. 30, 2016
Document And Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	CHPII
Entity Registrant Name	CNL Healthcare Properties II, Inc.
Entity Central Index Key	1,648,383
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 0
Class A Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		331,436
Class T Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		524,730
Class I Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		8,454

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash	$ 5,977,241	$ 200,000
Restricted cash	383,000
Prepaid expenses	48,928
Total assets	6,409,169	200,000
Liabilities:
Notes payable	312,500
Due to related parties	240,651
Accounts payable and accrued liabilities	23,263
Total liabilities	576,414
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized; none issued or outstanding
Common stock value		200
Capital in excess of par value	6,226,141	199,800
Accumulated loss	(342,447)
Accumulated distributions	(57,361)
Total stockholders' equity	5,832,755	200,000
Total liabilities and stockholders' equity	6,409,169	$ 200,000
Class A Common Stock
Stockholders' equity:
Common stock value	3,251
Total stockholders' equity	3,251
Class T Common Stock
Stockholders' equity:
Common stock value	3,086
Total stockholders' equity	3,086
Class I Common Stock
Stockholders' equity:
Common stock value	85
Total stockholders' equity	$ 85

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value		$ 0.01
Common stock, shares authorized		1,000,000,000
Common stock, shares issued		20,000
Common stock, shares outstanding		20,000
Class A Common Stock
Common stock, par value	$ 0.01
Common stock, shares authorized	1,200,000,000
Common stock, shares issued	325,119
Common stock, shares outstanding	325,119
Class T Common Stock
Common stock, par value	$ 0.01
Common stock, shares authorized	700,000,000
Common stock, shares issued	308,587
Common stock, shares outstanding	308,587
Class I Common Stock
Common stock, par value	$ 0.01
Common stock, shares authorized	100,000,000
Common stock, shares issued	8,454
Common stock, shares outstanding	8,454

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Operating expenses:
General and administrative	$ 309,998
Acquisition fees and expenses	2,500
Total operating expenses	312,498
Operating loss	(312,498)
Other expense:
Interest expense	29,949
Total other expense	29,949
Net loss attributable to common stockholders	(342,447)
Class A Common Stock
Other expense:
Net loss attributable to common stockholders	$ (265,390)
Net loss per share of common stock outstanding (basic and diluted) | $ / shares	$ (0.91)
Weighted average number of common shares outstanding (basic and diluted) | shares	291,149	[1]
Distributions declared per common share | $ / shares	$ 0.1750
Class T Common Stock
Other expense:
Net loss attributable to common stockholders	$ (70,272)
Net loss per share of common stock outstanding (basic and diluted) | $ / shares	$ (0.91)
Weighted average number of common shares outstanding (basic and diluted) | shares	77,093	[1]
Distributions declared per common share | $ / shares	$ 0.1533
Class I Common Stock
Other expense:
Net loss attributable to common stockholders	$ (6,785)
Net loss per share of common stock outstanding (basic and diluted) | $ / shares	$ (0.91)
Weighted average number of common shares outstanding (basic and diluted) | shares	7,443	[1]
Distributions declared per common share | $ / shares	$ 0.1750
[1]	For the purposes of determining the weighted average number of shares of common stock outstanding, stock dividends issued are treated as if such shares were outstanding as of July 11, 2016 (the date the Company commenced operations).

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock	Capital in Excess of Par Value	Accumulated Loss	Accumulated Distributions	Class A Common Stock	Class T Common Stock	Class I Common Stock
Beginning Balance at Jul. 09, 2015	$ 0
Subscriptions received for common stock, including distribution reinvestments and Issuance of initial common stock shares	200,000	$ 200	$ 199,800
Subscriptions received for common stock, including distribution reinvestments and Issuance of initial common stock shares (in shares)		20,000
Ending Balance at Dec. 31, 2015	$ 200,000	$ 200	199,800
Ending Balance (in shares) at Dec. 31, 2015	20,000	20,000
Conversion of initial common stock shares		$ (200)				$ 200
Conversion of initial common stock shares (in shares)		(20,000)				20,000
Subscriptions received for common stock, including distribution reinvestments and Issuance of initial common stock shares	$ 6,386,693		6,380,503			$ 3,024	$ 3,082	$ 84
Subscriptions received for common stock, including distribution reinvestments and Issuance of initial common stock shares (in shares)	600,000					302,430	308,138	8,375
Stock dividends issued			(32)			$ 27	$ 4	$ 1
Stock dividends issued (in shares)	3,000					2,689	449	79
Stock issuance and offering costs	$ (354,130)		(354,130)
Net loss	(342,447)			$ (342,447)
Cash distributions declared	(57,361)				$ (57,361)
Ending Balance at Dec. 31, 2016	$ 5,832,755		$ 6,226,141	$ (342,447)	$ (57,361)	$ 3,251	$ 3,086	$ 85
Ending Balance (in shares) at Dec. 31, 2016						325,119	308,587	8,454

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS	12 Months Ended
	Dec. 31, 2016USD ($)
Operating activities:
Net loss	$ (342,447)
Changes in operating assets and liabilities:
Prepaid expenses	(48,928)
Due to related parties	73,545
Accounts payable and accrued liabilities	23,263
Net cash flows used in operating activities	(294,567)
Financing activities:
Subscriptions received for common stock through primary offering	6,132,100
Subscriptions received for common stock through private placement	251,250
Payment of selling commissions and dealer manager fees	(184,532)
Payment of distributions to stockholders, net	(56,510)
Proceeds from notes payable	312,500
REIT Funding escrow	(383,000)
Net cash flows provided by financing activities	6,071,808
Net increase in cash	5,777,241
Cash at beginning of period	200,000
Cash at end of period	5,977,241
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	29,363
Amounts incurred but not paid (including amounts due to related parties):
Selling commissions and Dealer Manager fees	12,373
Annual distribution and stockholder servicing fee	$ 154,733

Organization

Organization	12 Months Ended
	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization	1. Organization CNL Healthcare Properties II, Inc. is a Maryland corporation organized on July 10, 2015 that intends to qualify as a REIT for U.S. federal income tax purposes beginning with the year ending December 31, 2017 or the year in which the Company commences material operations. The Company is sponsored by CNL Financial Group, LLC and was formed primarily to acquire and manage a diversified portfolio of healthcare real estate and real estate-related assets that it believes will generate a steady current return and provide long-term value to its stockholders. It intends to focus on investing, primarily in the United States, within the seniors housing, medical office, acute care and post-acute care sectors, as well as other types of real estate and real estate-related securities and loans. The Company is externally managed and advised by CHP II Advisors, LLC, an affiliate of CNL. The Advisor provides advisory services to the Company relating to substantially all aspects of its investments and operations, including real estate acquisitions, asset management and other operational matters. During the period from July 10, 2015 to December 31, 2015, the Company sold 20,000 shares of common stock to the Advisor for an aggregate purchase price of $0.2 million, and these shares were converted into 20,000 Class A shares upon the filing of the Company’s Articles of Amendment and Restatement in March 2016. On March 2, 2016, pursuant to a registration statement on Form S-11 under the Securities Act of 1933, the Company commenced its Primary Offering of up to $1.75 billion, in any combination, of Class A, Class T and Class I shares of common stock on a “best efforts” basis, which means that the Dealer Manager will use its best efforts but is not required to sell any specific amount of shares. The Company also intends to offer up to $250 million, in any combination, of Class A, Class T and Class I shares to be issued pursuant to its Reinvestment Plan. The Company reserves the right to reallocate the shares offered between the Primary Offering and the Reinvestment Plan. From the time of the Company’s formation on July 10, 2015 (inception) through July 10, 2016, the Company had not commenced operations because they were in their development stage and had not received the minimum required offering amount of $2.0 million in shares of common stock. T through the sale of 250,000 Class A shares to and The Company intends to own substantially all of its assets either directly or indirectly through an Operating Partnership, in which the Company is the sole limited partner and its wholly-owned subsidiary, CHP II GP, LLC, is the sole general partner. The Company generally expects to lease its seniors housing properties to TRSs and engage independent third-party managers under management agreements to operate the properties as permitted under RIDEA structures; however, the Company may also lease its properties to third-party tenants under triple-net or similar lease structures, where the tenant bears all or substantially all of the costs (including cost increases for real estate taxes, utilities, insurance and ordinary repairs). Medical office, acute care and post-acute care properties will generally be leased on a triple-net, net or modified gross basis to third-party tenants. In addition, the Company expects most investments will be wholly-owned, although, it may invest through partnerships with other entities where the Company believes it is appropriate and beneficial. The Company expects to invest in a combination of stabilized assets, new property developments and properties which have not reached full stabilization. Finally, the Company may invest in and originate mortgage, bridge or mezzanine loans or in entities that make investments similar to the foregoing investment types. The Company would generally make loans to the owners of properties to enable them to acquire land, buildings, or to develop property. In exchange, the owner generally grants the Company a first lien or collateralized interest in a participating mortgage collateralized by the property or by interests in the entity that owns the property.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation — The accompanying consolidated financial statements include the Company’s accounts, the Operating Partnership and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The Company’s operations commenced on July 11, 2016, when aggregate subscription proceeds in excess of the minimum offering amount were released from escrow. As a result, there are no comparative financial statements for the year ended December 31, 2016. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Company’s consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash — Cash consists of demand deposits at commercial banks with original maturities of three months or less. Restricted Cash — Certain amounts of cash are restricted as security to repay the Company’s Notes and two semi-annual interest payments until the Company raises at least $10 million in gross proceeds in the Primary Offering. Income Taxes — The Company intends to qualify for taxation as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ending December 31, 2017 or the first year in which the Company commences material operations. Prior to the Company’s REIT election, it is subject to corporate federal and state income taxes. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes at least 90 percent of its REIT taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. For the year ended December 31, 2016, the Company had no taxable income. The Company expects to form one or more subsidiaries that may elect to be taxed as a TRS for U.S. federal income tax purposes. Under the provisions of the Internal Revenue Code and applicable state laws, a TRS will be subject to taxation on taxable income from its operations. The Company will account for federal and state income taxes with respect to a TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and respective tax bases and operating losses and tax-credit carry forwards. Fair Value Measurements — GAAP emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. GAAP requires the use of observable market data, when available, in making fair value measurements. Observable inputs are inputs that the market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of ours. When market data inputs are unobservable, the Company utilizes inputs that it believes reflects the Company’s best estimate of the assumptions market participants would use in pricing the asset or liability. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. As a basis for considering market participant assumptions in fair value measurements, GAAP 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). The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company as the ability to access. 2. Summary of Significant Accounting Policies (continued) • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability, which are typically based on the Company’s own assumptions, as there is little, if any, related market activity. Per Share Data — Net loss per share for the period presented is computed by dividing net loss by the weighted average number of common stock shares outstanding for each share class during the period in which the Company was operational. Diluted loss per share is computed based on the weighted average number of common stock shares outstanding for each share class and all potentially dilutive securities, if any. For purposes of determining the weighted average number of shares of common stock outstanding, stock dividends are treated as if such shares were outstanding as of July 11, 2016 (when the Company commenced operations). Adopted Accounting Pronouncements — In February 2015, FASB issued Accounting Standard Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis,” which requires amendments to both the variable interest entity (“VIE”) and voting models. The amendments (i) modify the identification of variable interests (fees paid to a decision maker or service provider), the VIE characteristics for a limited partnership or similar entity and primary beneficiary determination under the VIE model, and (ii) eliminate the presumption within the current voting model that a general partner controls a limited partnership or similar entity. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The amendments may be applied using either a modified retrospective or full retrospective approach. The Company adopted ASU 2015-02 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it does not own any VIE’s. In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that loan costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts or premiums. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The ASU is to be applied retrospectively for each period presented. Upon adoption, an entity is required to comply with the applicable disclosures for a change in an accounting principle. The FASB subsequently issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which clarifies that, given the absence of authoritative guidance in ASU 2015-03 regarding presentation and subsequent measurement of loan costs related to line-of-credit arrangements, the SEC Staff would not object to an entity deferring and presenting loan costs as an asset and subsequently amortizing the loan costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-03 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it has not incurred any loan costs. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires an acquirer to recognize provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company adopted ASU 2015-16 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it has not yet made its first investment. 2. Summary of Significant Accounting Policies (continued) Recent Accounting Pronouncements — In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” as a new ASC topic (Topic 606). The core principle of this ASU is that an entity should 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. The ASU further provides guidance for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, lease contracts). The FASB subsequently issued ASU 2015-14 to defer the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017 with earlier adoption permitted. ASU 2014-09 can be adopted using one of two retrospective transition methods: 1) retrospectively to each prior reporting period presented or 2) as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a transition method and is currently evaluating the impact this ASU will have on the Company’s consolidated statements once it makes its first investment. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842): Accounting for Leases,” which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU further modifies lessors’ classification criteria for leases and the accounting for sales-type and direct financing leases. The ASU will also require qualitative and quantitative disclosures designed to give financial statement users additional information on the amount, timing, and uncertainty of cash flows arising from leases. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The ASU is to be applied using a modified retrospective approach. The Company is currently evaluating the impact this ASU will have on the Company’s consolidated financial statements once it makes its first investment. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU further clarifies how the predominance principle should be applied to cash receipts and payments relating to more than one class of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied retrospectively for each period presented. The Company has determined that it will early adopt this ASU on January 1, 2017 and that adoption will not materially impact the presentation of the Company’s consolidated cash flows. In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties that are under Common Control,” which requires an entity to consider its indirect interests held by related parties that are under common control on a proportionate basis when evaluating whether the entity is a primary beneficiary of a VIE. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company will adopt this ASU on January 1, 2017 and has determined that adoption will not materially impact the presentation of the Company’s consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which modifies the presentation of the statement of cash flows and requires reconciliation to the overall change in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result, the statement of cash flows will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied retrospectively for each period presented. The Company has determined that it will early adopt this ASU on January 1, 2017 and that adoption will not materially impact the presentation of the Company’s consolidated cash flows. 2. Summary of Significant Accounting Policies (continued) In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business and provides a framework by which to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied prospectively for each period presented. The Company expects to early adopt this ASU and is currently evaluating the impact this ASU will have on the Company’s consolidated financial position, results of operations and cash flows once it makes its first investment.

Related Party Arrangements

Related Party Arrangements	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Arrangements	3. Related Party Arrangements The Company is externally advised and has no direct employees. All of the Company’s executive officers are executive officers, or are on the board, of managers of the Advisor. In addition, certain directors and officers hold similar positions with CNL Securities Corp., the Dealer Manager of the Offering and a wholly owned subsidiary of CNL. In connection with services provided to the Company, affiliates are entitled to the following fees: Dealer Manager — The Dealer Manager will receive a selling commission of up to 7% of the sale price for each Class A share and 2% of the sale price for each Class T share sold in the Primary Offering, all or a portion of which may be reallowed to participating broker dealers. In addition, the Dealer Manager will receive a dealer manager fee in an amount equal to 2.75% of the price of each Class A share or Class T share sold in the Primary Offering, all or a portion of which may be reallowed to participating broker dealers. Refer to Note 8. “Subsequent Events” for additional information related to a proposed modification to the Company’s underwriting compensation. The Company will pay a distribution and stockholder servicing fee, subject to certain underwriting compensation limits, with respect to the Class T and Class I shares sold in the Primary Offering in an annual amount equal to 1% and 0.50%, respectively, of the current gross offering price per Class T or Class I share, respectively, or if the Company is no longer offering shares in a public offering, the estimated per share value per Class T or Class I share, respectively. If the Company reports an estimated per share value prior to the termination of the Primary Offering, the annual distribution and stockholder servicing fee will continue to be calculated as a percentage of the current gross offering price per Class T or Class I share until the Company reports an estimated per share value following the termination of the Primary Offering, at which point the distribution fee will be calculated based on the new estimated per share value, until such underwriting compensation limits are met or the shares are converted to Class A shares pursuant to the terms of the securities. Refer to Note 8. “Subsequent Events” for additional information related to a proposed modification to the Company’s underwriting compensation. The Company records the annual distribution and stockholder servicing fees as a reduction to capital in excess of par value and measures the related liability in an amount equal to the maximum fees owed in relation to the Class T and Class I shares on the shares’ issuance date. The liability will be relieved over time, as the fees are paid to the Dealer Manager, or it will be adjusted if the fees are no longer owed on any Class T or Class I share that is redeemed or repurchased, as well as upon the earliest occurence of: (i) a listing on a national securities exchange; (ii) a merger or consolidation of the Company with or into another entity, or the sale or other disposition of all or substantially all of the Company’s assets; (iii) after the termination of the Primary Offering in which the initial shares in the account were sold, the end of the month in which total underwriting compensation paid in the Primary Offering is not less than 10% of the gross proceeds from all share classes of the Primary Offering; (iv) the end of the month in which the total underwriting compensation paid in a Primary Offering with respect to shares purchased in a Primary Offering is not less than 9.75% of the gross offering price of those shares purchased in such Primary Offering (excluding shares purchased through the Company’s Reinvestment Plan and those received as stock dividends); or (v) any other conditions described in the Company’s prospectus. 3. Related Party Arrangements (continued) Advisor — The Company will pay the Advisor a monthly asset management fee in an amount equal to 0.0667% of the monthly average of the sum of the Company’s and the Operating Partnership’s respective daily real estate asset value, without duplication, plus the outstanding principal amount of any loans made, plus the amount invested in other permitted investments. For this purpose, “real estate asset value” equals the amount invested in wholly-owned properties, determined on the basis of cost, and in the case of properties owned by any joint venture or partnership in which the Company is a co-venturer or partner the portion of the cost of such properties paid by the Company, exclusive of acquisition fees and acquisition expenses and will not be reduced for any recognized impairment. Any recognized impairment loss will not reduce the real estate asset value for the purposes of calculating the asset management fee. The asset management fee, which will not exceed fees which are competitive for similar services in the same geographic area, may or may not be taken, in whole or in part as to any year, in the Advisor’s sole discretion. All or any portion of the asset management fee not taken as to any fiscal year shall be deferred without interest and may be taken in such other fiscal year as the Advisor shall determine. The Company will pay the Advisor a construction management fee of up to 1% of hard and soft costs associated with the initial construction or renovation of a property, or with the management and oversight of expansion projects and other capital improvements, in those cases in which the value of the construction, renovation, expansion or improvements exceeds (i) 10% of the initial purchase price of the property and (ii) $1 million in which case such fee will be due and payable as draws are funded for such projects. The Advisor will receive an investment services fee of 2.25% of the purchase price of properties and funds advanced for loans or the amount invested in the case of other assets for services in connection with the selection, evaluation, structure and purchase of assets. No investment services fee will be paid to the Advisor in connection with the Company’s purchase of securities. The Advisor, its affiliates and related parties also are entitled to reimbursement of certain operating expenses in connection with their provision of services to the Company, including personnel costs, subject to the limitation that the Company will not reimburse the Advisor for any amount by which operating expenses exceed the greater of 2% of its average invested assets or 25% of its net income in any expense year unless approved by the independent directors. The Company will begin to evaluate such limitation on its operating expenses beginning with the Expense Year ending September 30, 2017. For the year ended December 31, 2016, approximately $84,000 of personnel expenses of affiliates of the Advisor were waived and these 2016 expenses will not be reimbursed by the Company in future periods. The Advisor will pay all other organizational and offering expenses incurred in connection with the formation of the Company, without reimbursement by the Company. These expenses include, but are not limited to, SEC registration fees, FINRA filing fees, printing and mailing expenses, blue sky fees and expenses, legal fees and expenses, accounting fees and expenses, advertising and sales literature, transfer agent fees, due diligence expenses, personnel costs associated with processing investor subscriptions, escrow fees and other administrative expenses of the Offering. The Company entered into an amended and restated expense support and restricted stock agreement with the Advisor pursuant to which the Advisor has agreed to accept payment in the form of forfeitable restricted Class A shares of common stock (“Restricted Stock”) in lieu of cash for services rendered, in the event that the Company does not achieve established distribution coverage targets (“Expense Support Agreement”). In exchange for services rendered and in consideration of the expense support provided, the Company shall issue, following each determination date, a number of shares of restricted stock equal to the quotient of the expense support amount provided by the Advisor for the preceding quarter divided by the board of directors’ most recent determination of net asset value per share of the Class A common shares, if the board has made such a determination, or otherwise the most recent public offering price per Class A common share, on the terms and conditions and subject to the restrictions set forth in the Expense Support Agreement. The Restricted Stock is subordinated and forfeited to the extent that shareholders do not receive a Priority Return on their Invested Capital (as defined in the prospectus), excluding for the purposes of calculating this threshold any shares of restricted stock owned by the Advisor. Refer to Note 8. “Subsequent Events” for additional information related to an amendment to this agreement. 3. Related Party Arrangements (continued) CNL Capital Markets Corp. — The Company will pay CNL Capital Markets Corp., an affiliate of CNL, an annual fee payable monthly based on the average number of total investor accounts that will be open during the term of the capital markets service agreement pursuant to which certain administrative services are provided to the Company. These services may include, but are not limited to, the facilitation and coordination of the transfer agent’s activities, client services and administrative call center activities, financial advisor administrative correspondence services, material distribution services and various reporting and troubleshooting activities. Other transactions — As of December 31, 2016, the Company had received aggregate subscription proceeds from its Advisor of $2.7 million (270,000 shares), which is comprised of $200,000 (20,000 shares) of subscription proceeds received from the Advisor prior to the commencement of the Offering and $2.5 million (250,000 shares) of Primary Offering proceeds received for the Advisor that were used to break escrow in its Offering. The Company did not pay any selling commissions or dealer manager fees in connection with the sale of these shares. In addition, during the year ended December 31, 2016, the Company paid cash distributions of approximately $47,000 and issued stock dividends of approximately 2,500 shares to the Advisor. The fees payable to the Dealer Manager for the year ended December 31, 2016, and related amounts unpaid as of December 31, 2016 are as follows: Year ended Unpaid amounts as of (1) December December 31, 2016 2016 Selling commissions (2) $ 97,022 $ 6,550 Dealer Manager fees (2) 99,883 5,823 Distribution and stockholder servicing fees (2) 157,225 154,733 $ 354,130 $ 167,106 The expenses incurred by and reimbursable to the Company’s related parties for the year ended December 31, 2016, and related amounts unpaid as of December 31, 2016 are as follows: Year ended Unpaid amounts as of (1) December December 31, 2016 2016 Reimbursable expenses: Operating expenses (3) $ 206,868 $ 73,545 $ 206,868 $ 73,545 FOOTNOTES: (1) Amounts are recorded as due to related parties in the accompanying consolidated balance sheets. (2) Amounts are recorded as stock issuance and offering costs in the accompanying consolidated statements of stockholders’ equity. (3) Amounts are recorded as general and administrative expenses in the accompanying consolidated statement of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying consolidated balance sheets.

Indebtedness

Indebtedness	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Indebtedness	4. Indebtedness In August 2016, in connection with the Private Placement, the Company issued Notes to each of 125 separate investors for a total principal amount of approximately $0.3 million. The Company owes interest on the Notes of approximately $70,000 per annum, which is payable semi-annually in arrears. The Notes mature on June 30, 2046. Some or all of the Notes may be prepaid at any time, in whole or in part, provided that (i) such prepayment include all accrued and unpaid interest due on such prepaid principal amount to and including the date of prepayment and (ii) if the prepayment occurs prior to the second anniversary of the issue date of the Note, the Company will pay on the date of such prepayment a one-time premium equal to approximately $31,000. In connection with the issuance of the Notes, the Company placed approximately $0.4 million into a third-party escrow account to be held to repay the principal of the Notes and two semi-annual interest payments, which funds shall be released from escrow upon the Company raising at least $10 million in gross proceeds in the Offering. The fair market value of the Notes was approximately $0.6 million as of December 31, 2016, which is based on current rates and spreads the Company would expect to obtain for similar borrowings. Since this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values is categorized as Level 3 on the three-level valuation hierarchy.

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	5. Equity Subscription Proceeds — As of December 31, 2016, the Company had received aggregate subscription proceeds of approximately $6.6 million (0.6 million shares), which includes $200,000 (20,000 shares) of subscription proceeds received from the Advisor prior to the commencement of the Offering, approximately $251,250 (25,125 shares) of subscription proceeds received in connection with the Private Placement and approximately $3,000 (300 shares) of subscription proceeds pursuant to the Reinvestment Plan. Distributions — For the year ended December 31, 2016, the Company declared and paid total cash distributions of approximately $57,000. In addition, the Company declared and issued stock dividends of approximately 3,000 shares of common stock during the year ended December 31, 2016. For the year ended December 31, 2016, 100.0% of the cash distributions paid to stockholders were considered a return of capital to stockholders for federal income tax purposes. No amounts distributed to stockholders for the year ended December 31, 2016 were required to be or have been treated by the Company as a return of capital for purposes of calculating the stockholders’ return on their invested capital as described in the Company’s advisory agreement. The distribution of new common shares to recipients is non-taxable. In December 2016, the Company’s board of directors declared a monthly cash distribution of $0.0350 and a monthly stock dividend of 0.001881250 shares on each outstanding share of common stock on January 1, 2017, February 1, 2017 and March 1, 2017. These dividends are to be paid and distributed by March 31, 2017.

Commitment and Contingencies

Commitment and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies From time to time, the Company may be a party to legal proceedings in the ordinary course of, or incidental to the normal course of, its business, including proceedings to enforce its contractual or statutory rights. While the Company cannot predict the outcome of these legal proceedings with certainty, based upon currently available information, the Company does not believe the final outcome of any pending or threatened legal proceeding will have a material adverse effect on its results of operations or financial condition.

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data (Unaudited)	7. Selected Quarterly Financial Data (Unaudited) The following table presents selected unaudited quarterly financial data for the year ended December 31, 2016: 2016 Quarters Third Fourth Full Year Operating loss $ (110,588 ) $ (231,859 ) $ (342,447 ) Net loss (110,588 ) (231,859 ) (342,447 ) Class A common stock: Net loss attributable to Class A stockholders (105,761 ) (155,471 ) (265,390 ) Weighted average number of Class A common shares outstanding (basic and diluted) (1) 279,293 301,715 291,149 Loss per share of Class A common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) Class T common stock: Net loss attributable to Class T stockholders (2,442 ) (72,032 ) (70,272 ) Weighted average number of Class T common shares outstanding (basic and diluted) (1) 6,441 139,790 77,093 Loss per share of Class T common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) Class I common stock: Net loss attributable to Class I stockholders (2,385 ) (4,356 ) (6,785 ) Weighted average number of Class I common shares outstanding (basic and diluted) (1) 6,309 8,454 7,443 Loss per share of Class I common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) FOOTNOTE: (1) For the purposes of determining the weighted average number of shares of common stock outstanding, stock dividends issued are treated as if such shares were outstanding as of July 11, 2016 (the date the Company commenced operations).

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	8. Subsequent Events During the period from January 1, 2017 through February 6, 2017, the Company received additional subscription proceeds of approximately $2.3 million (0.2 million shares). In February 2017, the Company’s board of directors declared a monthly cash distribution of $0.0480 and a monthly stock dividend of 0.00100625 shares on each outstanding share of common stock on April 1, 2017, May 1, 2017 and June 1, 2017. These dividends are to be paid and distributed by June 30, 2017. In February 2017, the Company’s board of directors approved the Company’s second articles of amendment and restatement, which relates to a proposed reduction in underwriting compensation to 8.5% of gross proceeds for each share class of common stock sold in the Primary Offering. The proposed modification to the Company’s charter will require stockholder approval at the special meeting of stockholders to be held in March 2017. In February 2017, the Advisor and the Company’s board of directors approved the second amended and restated expense support agreement, which includes revisions to change to an annual measurement date for determining expense support and to exclude the impact of completed development properties from the calculation for a specified period of time after the property is placed into service (as defined in the agreement). In February 2017, the Advisor and the Company’s board of directors approved a renewal of the advisory agreement through March 2018 as well as revisions to lower the disposition fee to an amount equal to either (a) 1% of the gross market capitalization of the Company upon the occurrence of a listing of the common shares of the Company, or 1% of the gross consideration paid to the Company or its stockholders upon the occurrence of any other liquidity event (including the sale or transfer of the Company or a portion thereof), or (b) 1% of the gross sales price upon the sale or transfer of one or more assets (including the sale of all of the Company’s assets).

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation — The accompanying consolidated financial statements include the Company’s accounts, the Operating Partnership and its subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The Company’s operations commenced on July 11, 2016, when aggregate subscription proceeds in excess of the minimum offering amount were released from escrow. As a result, there are no comparative financial statements for the year ended December 31, 2016.
Use of Estimates	Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Company’s consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Cash	Cash — Cash consists of demand deposits at commercial banks with original maturities of three months or less.
Restricted Cash	Restricted Cash — Certain amounts of cash are restricted as security to repay the Company’s Notes and two semi-annual interest payments until the Company raises at least $10 million in gross proceeds in the Primary Offering.
Income Taxes	Income Taxes — The Company intends to qualify for taxation as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ending December 31, 2017 or the first year in which the Company commences material operations. Prior to the Company’s REIT election, it is subject to corporate federal and state income taxes. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes at least 90 percent of its REIT taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. For the year ended December 31, 2016, the Company had no taxable income. The Company expects to form one or more subsidiaries that may elect to be taxed as a TRS for U.S. federal income tax purposes. Under the provisions of the Internal Revenue Code and applicable state laws, a TRS will be subject to taxation on taxable income from its operations. The Company will account for federal and state income taxes with respect to a TRS using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and respective tax bases and operating losses and tax-credit carry forwards.
Fair Value Measurements	Fair Value Measurements — GAAP emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. GAAP requires the use of observable market data, when available, in making fair value measurements. Observable inputs are inputs that the market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of ours. When market data inputs are unobservable, the Company utilizes inputs that it believes reflects the Company’s best estimate of the assumptions market participants would use in pricing the asset or liability. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. As a basis for considering market participant assumptions in fair value measurements, GAAP 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). The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company as the ability to access. • Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. • Level 3 – Unobservable inputs for the asset or liability, which are typically based on the Company’s own assumptions, as there is little, if any, related market activity.
Per Share Data	Per Share Data — Net loss per share for the period presented is computed by dividing net loss by the weighted average number of common stock shares outstanding for each share class during the period in which the Company was operational. Diluted loss per share is computed based on the weighted average number of common stock shares outstanding for each share class and all potentially dilutive securities, if any. For purposes of determining the weighted average number of shares of common stock outstanding, stock dividends are treated as if such shares were outstanding as of July 11, 2016 (when the Company commenced operations).
Adopted Accounting Pronouncements	Adopted Accounting Pronouncements — In February 2015, FASB issued Accounting Standard Update (“ASU”) 2015-02, “Amendments to the Consolidation Analysis,” which requires amendments to both the variable interest entity (“VIE”) and voting models. The amendments (i) modify the identification of variable interests (fees paid to a decision maker or service provider), the VIE characteristics for a limited partnership or similar entity and primary beneficiary determination under the VIE model, and (ii) eliminate the presumption within the current voting model that a general partner controls a limited partnership or similar entity. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The amendments may be applied using either a modified retrospective or full retrospective approach. The Company adopted ASU 2015-02 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it does not own any VIE’s. In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that loan costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts or premiums. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The ASU is to be applied retrospectively for each period presented. Upon adoption, an entity is required to comply with the applicable disclosures for a change in an accounting principle. The FASB subsequently issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which clarifies that, given the absence of authoritative guidance in ASU 2015-03 regarding presentation and subsequent measurement of loan costs related to line-of-credit arrangements, the SEC Staff would not object to an entity deferring and presenting loan costs as an asset and subsequently amortizing the loan costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-03 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it has not incurred any loan costs. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires an acquirer to recognize provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The new guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2015. The Company adopted ASU 2015-16 on January 1, 2016; the adoption of which did not have an impact on the Company’s consolidated financial statements since it has not yet made its first investment.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” as a new ASC topic (Topic 606). The core principle of this ASU is that an entity should 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. The ASU further provides guidance for any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards (for example, lease contracts). The FASB subsequently issued ASU 2015-14 to defer the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017 with earlier adoption permitted. ASU 2014-09 can be adopted using one of two retrospective transition methods: 1) retrospectively to each prior reporting period presented or 2) as a cumulative-effect adjustment as of the date of adoption. The Company has not yet selected a transition method and is currently evaluating the impact this ASU will have on the Company’s consolidated statements once it makes its first investment. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842): Accounting for Leases,” which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The ASU requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU further modifies lessors’ classification criteria for leases and the accounting for sales-type and direct financing leases. The ASU will also require qualitative and quantitative disclosures designed to give financial statement users additional information on the amount, timing, and uncertainty of cash flows arising from leases. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018 with early adoption permitted. The ASU is to be applied using a modified retrospective approach. The Company is currently evaluating the impact this ASU will have on the Company’s consolidated financial statements once it makes its first investment. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU further clarifies how the predominance principle should be applied to cash receipts and payments relating to more than one class of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied retrospectively for each period presented. The Company has determined that it will early adopt this ASU on January 1, 2017 and that adoption will not materially impact the presentation of the Company’s consolidated cash flows. In October 2016, the FASB issued ASU 2016-17, “Consolidation (Topic 810): Interests Held Through Related Parties that are under Common Control,” which requires an entity to consider its indirect interests held by related parties that are under common control on a proportionate basis when evaluating whether the entity is a primary beneficiary of a VIE. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company will adopt this ASU on January 1, 2017 and has determined that adoption will not materially impact the presentation of the Company’s consolidated financial position, results of operations or cash flows. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which modifies the presentation of the statement of cash flows and requires reconciliation to the overall change in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. As a result, the statement of cash flows will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied retrospectively for each period presented. The Company has determined that it will early adopt this ASU on January 1, 2017 and that adoption will not materially impact the presentation of the Company’s consolidated cash flows. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business,” which clarifies the definition of a business and provides a framework by which to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted. The ASU is to be applied prospectively for each period presented. The Company expects to early adopt this ASU and is currently evaluating the impact this ASU will have on the Company’s consolidated financial position, results of operations and cash flows once it makes its first investment.

Related Party Arrangements (Tab

Related Party Arrangements (Tables)	12 Months Ended
	Dec. 31, 2016
Fees and Expenses Incurred and Reimbursable to Affiliates and Related Parties	The expenses incurred by and reimbursable to the Company’s related parties for the year ended December 31, 2016, and related amounts unpaid as of December 31, 2016 are as follows: Year ended Unpaid amounts as of (1) December December 31, 2016 2016 Reimbursable expenses: Operating expenses (3) $ 206,868 $ 73,545 $ 206,868 $ 73,545 FOOTNOTES: (1) Amounts are recorded as due to related parties in the accompanying consolidated balance sheets. (2) Amounts are recorded as stock issuance and offering costs in the accompanying consolidated statements of stockholders’ equity. (3) Amounts are recorded as general and administrative expenses in the accompanying consolidated statement of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying consolidated balance sheets.
Dealer Manager
Fees and Expenses Incurred and Reimbursable to Affiliates and Related Parties	The fees payable to the Dealer Manager for the year ended December 31, 2016, and related amounts unpaid as of December 31, 2016 are as follows: Year ended Unpaid amounts as of (1) December December 31, 2016 2016 Selling commissions (2) $ 97,022 $ 6,550 Dealer Manager fees (2) 99,883 5,823 Distribution and stockholder servicing fees (2) 157,225 154,733 $ 354,130 $ 167,106 FOOTNOTES: (1) Amounts are recorded as due to related parties in the accompanying consolidated balance sheets. (2) Amounts are recorded as stock issuance and offering costs in the accompanying consolidated statements of stockholders’ equity. (3) Amounts are recorded as general and administrative expenses in the accompanying consolidated statement of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying consolidated balance sheets.

Selected Quarterly Financial 17

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Selected Unaudited Quarterly Financial Data	The following table presents selected unaudited quarterly financial data for the year ended December 31, 2016: 2016 Quarters Third Fourth Full Year Operating loss $ (110,588 ) $ (231,859 ) $ (342,447 ) Net loss (110,588 ) (231,859 ) (342,447 ) Class A common stock: Net loss attributable to Class A stockholders (105,761 ) (155,471 ) (265,390 ) Weighted average number of Class A common shares outstanding (basic and diluted) (1) 279,293 301,715 291,149 Loss per share of Class A common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) Class T common stock: Net loss attributable to Class T stockholders (2,442 ) (72,032 ) (70,272 ) Weighted average number of Class T common shares outstanding (basic and diluted) (1) 6,441 139,790 77,093 Loss per share of Class T common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) Class I common stock: Net loss attributable to Class I stockholders (2,385 ) (4,356 ) (6,785 ) Weighted average number of Class I common shares outstanding (basic and diluted) (1) 6,309 8,454 7,443 Loss per share of Class I common stock (basic and diluted) $ (0.38 ) $ (0.52 ) $ (0.91 ) FOOTNOTE: (1) For the purposes of determining the weighted average number of shares of common stock outstanding, stock dividends issued are treated as if such shares were outstanding as of July 11, 2016 (the date the Company commenced operations).

Organization - Additional Infor

Organization - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016	Jul. 11, 2016	Mar. 02, 2016
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, shares sold		600,000
Aggregate purchase price	$ 200,000	$ 6,386,693
Minimum offering amount		$ 2,000,000
Sale of common stock, shares	20,000
Sale of common stock, value	$ 200
Initial Public Offering
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, value authorized				$ 1,750,000,000
Reinvestment Plan
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, value authorized				$ 250,000,000
Advisor
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, shares sold	20,000	270,000
Aggregate purchase price	$ 200,000
Advisor | Initial Public Offering
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, shares sold		250,000
Class A Common Stock
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, shares sold		302,430
Aggregate purchase price		$ 3,024
Conversion of shares		20,000
Sale of common stock, shares		325,119
Sale of common stock, value		$ 3,251
Class A Common Stock | Advisor
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Conversion of shares	20,000
Sale of common stock, shares			250,000
Sale of common stock, value			$ 2,500,000

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Summary Of Significant Accounting Policies [Line Items]
Restricted cash as security until minimum gross proceeds in primary offering	$ 10,000,000
Taxable income	$ 0
Minimum
Summary Of Significant Accounting Policies [Line Items]
Percentage of taxable income for distribution to stockholders	90.00%

Related Party Arrangements - Ad

Related Party Arrangements - Additional Information (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016
Related Party Transaction [Line Items]
Aggregate proceeds from offering		$ 6,132,100
Common stock, shares sold		600,000
Cash distributions paid		$ 56,510
Stock dividends issued		3,000
Advisor
Related Party Transaction [Line Items]
Monthly asset management fee as percentage of real estate value		0.0667%
Initial purchase price of property percentage		10.00%
Property management fee		$ 1,000,000
Investment service fee as percentage of purchase price of properties		2.25%
Investment services fee		$ 0
Personnel expenses of affiliates		84,000
Aggregate proceeds from offering		$ 2,700,000
Common stock, shares sold	20,000	270,000
Cash distributions paid		$ 47,000
Stock dividends issued		2,500
Advisor | Prior to Commencement of Offering
Related Party Transaction [Line Items]
Aggregate proceeds from offering		$ 200,000
Common stock, shares sold		20,000
Advisor | Initial Public Offering
Related Party Transaction [Line Items]
Aggregate proceeds from offering		$ 2,500,000
Common stock, shares sold		250,000
Maximum | Advisor
Related Party Transaction [Line Items]
Construction management fee as percentage of hard and soft costs		1.00%
Operating expenses reimbursement percentage of average invested assets		2.00%
Operating expenses reimbursement percentage of net income		25.00%
Minimum
Related Party Transaction [Line Items]
Underwriting compensation percentage on gross proceeds from shares of primary offering		10.00%
Underwriting compensation percentage on gross offering price from shares of primary offering		9.75%
Class A Common Stock
Related Party Transaction [Line Items]
Dealer manager fee		2.75%
Common stock, shares sold		302,430
Stock dividends issued		2,689
Class A Common Stock | Maximum
Related Party Transaction [Line Items]
Selling commission		7.00%
Class T Common Stock
Related Party Transaction [Line Items]
Selling commission		2.00%
Dealer manager fee		2.75%
Distribution and stockholder servicing fee		1.00%
Common stock, shares sold		308,138
Stock dividends issued		449
Class I Common Stock
Related Party Transaction [Line Items]
Distribution and stockholder servicing fee		0.50%
Common stock, shares sold		8,375
Stock dividends issued		79

Related Party Arrangements - Fe

Related Party Arrangements - Fees and Expenses Incurred and Reimbursable to Affiliates and Related Parties (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Related Party Transaction [Line Items]
Distribution and stockholder servicing fees	$ 154,733
Operating expenses	206,868	[1]
Total reimbursable expenses	206,868
Operating expenses, Unpaid amount	73,545	[2]
Related parties, Unpaid amount	73,545	[2]
Dealer Manager
Related Party Transaction [Line Items]
Selling commissions	97,022	[3]
Dealer Manager fees	99,883	[3]
Distribution and stockholder servicing fees	157,225	[3]
Total offering expenses	354,130
Selling commissions, Unpaid amount	6,550	[2]
Dealer Manager fees, Unpaid amount	5,823	[2]
Distribution and stockholder servicing fees, Unpaid amount	154,733	[2]
Total offering expenses unpaid	$ 167,106	[2]
[1]	Amounts are recorded as general and administrative expenses in the accompanying consolidated statement of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying consolidated balance sheets.
[2]	Amounts are recorded as due to related parties in the accompanying consolidated balance sheets.
[3]	Amounts are recorded as stock issuance and offering costs in the accompanying consolidated statements of stockholders’ equity.

Indebtedness - Additional Infor

Indebtedness - Additional Information (Details)	1 Months Ended	12 Months Ended
	Aug. 31, 2016USD ($)Investor	Dec. 31, 2016USD ($)
Level 3
Debt Instrument [Line Items]
Notes, fair market value		$ 600,000
Promissory Notes | Private Placement
Debt Instrument [Line Items]
Number of investors | Investor	125
Debt instrument, principal amount	$ 300,000
Annual interest payable	70,000
Debt instrument, payment terms		The Company owes interest on the Notes of approximately $70,000 per annum, which is payable semi-annually in arrears. The Notes mature on June 30, 2046. Some or all of the Notes may be prepaid at any time, in whole or in part, provided that (i) such prepayment include all accrued and unpaid interest due on such prepaid principal amount to and including the date of prepayment and (ii) if the prepayment occurs prior to the second anniversary of the issue date of the Note, the Company will pay on the date of such prepayment a one-time premium equal to approximately $31,000. In connection with the issuance of the Notes, the Company placed approximately $0.4 million into a third-party escrow account to be held to repay the principal of the Notes and two semi-annual interest payments, which funds shall be released from escrow upon the Company raising at least $10 million in gross proceeds in the Offering.
Debt instrument, maturity date		Jun. 30, 2046
Amount held on third-party escrow account	400,000
Minimum required proceeds from issuance of private placement to get escrow deposit released	$ 10,000,000
One-time premium		$ 31,000

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Jun. 30, 2017	Jun. 01, 2017	May 01, 2017	Apr. 01, 2017	Mar. 01, 2017	Feb. 14, 2017	Feb. 01, 2017	Jan. 01, 2017	Feb. 06, 2017	Dec. 31, 2015	Dec. 31, 2016
Class Of Stock [Line Items]
Aggregate proceeds from offering											$ 6,600,000
Common stock, shares sold											600,000
Subscription proceeds pursuant to the Reinvestment Plan											$ 3,000
Subscription proceeds pursuant to the Reinvestment Plan, shares											300
Cash distributions declared											$ 57,361
Cash distributions paid											$ 56,510
Stock dividends declared											3,000
Stock dividends issued											3,000
Percentage of cash distributions considered as return on capital for income tax purposes											100.00%
Amount of distributions to stockholders considered as return of capital by the company											$ 0
Monthly cash distributions per share											$ 0.0350
Monthly stock dividend, shares											$ 0.001881250
Distributions to be paid and distributed date											Mar. 31, 2017
Dividends payable, date declared											2016-12
Subsequent Event
Class Of Stock [Line Items]
Common stock, shares sold									200,000
Monthly cash distributions per share						$ 0.0480
Monthly stock dividend, shares						$ 0.00100625
Cash distribution and stock dividend declared date							Feb. 1, 2017	Jan. 1, 2017
Dividends payable, date declared						2017-02
Scenario Forecast
Class Of Stock [Line Items]
Cash distribution and stock dividend declared date		Jun. 1, 2017	May 1, 2017	Apr. 1, 2017	Mar. 1, 2017
Distributions to be paid and distributed date	Jun. 30, 2017
Private Placement
Class Of Stock [Line Items]
Aggregate proceeds from offering											$ 251,250
Common stock, shares sold											25,125
Advisor
Class Of Stock [Line Items]
Common stock, shares sold										20,000	270,000
Cash distributions paid											$ 47,000
Stock dividends issued											2,500
Advisor | Prior to Commencement of Offering
Class Of Stock [Line Items]
Aggregate proceeds from offering											$ 200,000
Common stock, shares sold											20,000

Selected Quarterly Financial 24

Selected Quarterly Financial Data (Unaudited) - Schedule of Selected Unaudited Quarterly Financial Data (Details) - USD ($)		3 Months Ended		12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2016
Selected Quarterly Financial Information [Line Items]
Operating loss		$ (231,859)	$ (110,588)	$ (342,447)
Net loss attributable to common stockholders		(231,859)	(110,588)	(342,447)
Class A Common Stock
Selected Quarterly Financial Information [Line Items]
Operating loss				(265,390)
Net loss attributable to common stockholders		$ (155,471)	$ (105,761)	$ (265,390)
Weighted average number of common shares outstanding (basic and diluted)	[1]	301,715	279,293	291,149
Loss per share of common stock (basic and diluted)		$ (0.52)	$ (0.38)	$ (0.91)
Class T Common Stock
Selected Quarterly Financial Information [Line Items]
Operating loss				$ (70,272)
Net loss attributable to common stockholders		$ (72,032)	$ (2,442)	$ (70,272)
Weighted average number of common shares outstanding (basic and diluted)	[1]	139,790	6,441	77,093
Loss per share of common stock (basic and diluted)		$ (0.52)	$ (0.38)	$ (0.91)
Class I Common Stock
Selected Quarterly Financial Information [Line Items]
Operating loss				$ (6,785)
Net loss attributable to common stockholders		$ (4,356)	$ (2,385)	$ (6,785)
Weighted average number of common shares outstanding (basic and diluted)	[1]	8,454	6,309	7,443
Loss per share of common stock (basic and diluted)		$ (0.52)	$ (0.38)	$ (0.91)
[1]	For the purposes of determining the weighted average number of shares of common stock outstanding, stock dividends issued are treated as if such shares were outstanding as of July 11, 2016 (the date the Company commenced operations).

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions	Jun. 30, 2017	Jun. 01, 2017	May 01, 2017	Apr. 01, 2017	Mar. 01, 2017	Feb. 14, 2017	Feb. 01, 2017	Jan. 01, 2017	Feb. 06, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Aggregate proceeds from offering										$ 6,132,100
Common stock, shares sold										0.6
Dividends payable, date declared										2016-12
Monthly cash distributions per share										$ 0.0350
Monthly stock dividend, shares										$ 0.001881250
Distributions to be paid and distributed date										Mar. 31, 2017
Scenario Forecast
Subsequent Event [Line Items]
Cash distribution and stock dividend declared date		Jun. 1, 2017	May 1, 2017	Apr. 1, 2017	Mar. 1, 2017
Distributions to be paid and distributed date	Jun. 30, 2017
Subsequent Event
Subsequent Event [Line Items]
Aggregate proceeds from offering									$ 2,300,000
Common stock, shares sold									0.2
Dividends payable, date declared						2017-02
Monthly cash distributions per share						$ 0.0480
Monthly stock dividend, shares						$ 0.00100625
Cash distribution and stock dividend declared date							Feb. 1, 2017	Jan. 1, 2017
Reduction in underwriting compensation of gross proceeds						8.50%
Revision to advisory agreement						through March 2018 as well as revisions to lower the disposition fee to an amount equal to either (a) 1% of the gross market capitalization of the Company upon the occurrence of a listing of the common shares of the Company, or 1% of the gross consideration paid to the Company or its stockholders upon the occurrence of any other liquidity event (including the sale or transfer of the Company or a portion thereof), or (b) 1% of the gross sales price upon the sale or transfer of one or more assets (including the sale of all of the Company’s assets).
Disposition fee as a percentage of gross market capitalization upon listing of common shares						1.00%
Disposition fee as a percentage of gross consideration paid to stockholders upon liquidity event						1.00%
Disposition fee as a percentage of gross sales price upon sale or transfer of assets						1.00%