CNL Healthcare Properties II (CHPII) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 01, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
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 Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		4,899,140

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Real estate investment properties, net	$ 53,941,517	$ 31,085,939
Cash	9,696,074	12,310,920
Intangibles, net	5,307,372	4,653,504
Other assets	533,837	192,423
Restricted cash	268,312	110,999
Total assets	69,747,112	48,353,785
Liabilities:
Mortgages and notes payable, net	24,476,945	19,532,986
Due to related parties	1,505,955	1,023,909
Accounts payable and accrued liabilities	1,506,741	836,647
Other liabilities	414,752	450,311
Total liabilities	27,904,393	21,843,853
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized; none issued or outstanding
Capital in excess of par value	46,937,915	28,984,932
Accumulated loss	(2,858,095)	(1,658,977)
Accumulated distributions	(2,286,353)	(846,200)
Total stockholders' equity	41,842,719	26,509,932
Total liabilities and stockholders' equity	69,747,112	48,353,785
Class A Common Stock
Stockholders' equity:
Common stock value	8,971	8,080
Total stockholders' equity	8,971	8,080
Class T Common Stock
Stockholders' equity:
Common stock value	35,482	20,492
Total stockholders' equity	35,482	20,492
Class I Common Stock
Stockholders' equity:
Common stock value	4,799	1,605
Total stockholders' equity	$ 4,799	$ 1,605

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
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
Class A Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares issued	909,695	808,011
Common stock, shares outstanding	897,081	808,011
Class T Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares issued	3,554,014	2,049,223
Common stock, shares outstanding	3,548,178	2,049,223
Class I Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	479,851	160,490
Common stock, shares outstanding	479,851	160,490

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Rental income and tenant reimbursements	$ 422,967		$ 1,253,209
Total revenues	1,906,891	$ 1,095,696	5,001,893	$ 2,178,566
Operating expenses:
Property operating expenses	1,139,378	626,933	2,728,764	1,236,358
General and administrative expenses	300,879	178,940	906,961	664,727
Acquisition fees and expenses			818
Depreciation and amortization	570,105	324,417	1,480,712	647,185
Total operating expenses	2,095,896	1,194,860	5,378,504	2,684,712
Operating loss	(189,005)	(99,164)	(376,611)	(506,146)
Other income (expense):
Interest and other income	9,884		9,946
Interest expense and loan cost amortization	(289,504)	(196,489)	(797,208)	(402,683)
Total other expense	(279,620)	(196,489)	(787,262)	(402,683)
Loss before income taxes	(468,625)	(295,653)	(1,163,873)	(908,829)
Income tax (benefit) expense	(9,938)	12,253	35,245	41,878
Net loss attributable to common stockholders	(458,687)	(307,906)	(1,199,118)	(950,707)
Health Care Resident Service
Revenues:
Resident fees and services	1,483,924	1,095,696	3,748,684	2,178,566
Management Service
Operating expenses:
Property management fees	85,534	64,570	261,249	136,442
Class A Common Stock
Other income (expense):
Net loss attributable to common stockholders	$ (87,907)	$ (108,891)	$ (257,552)	$ (342,975)
Net loss per share of common stock outstanding (basic and diluted)	$ (0.10)	$ (0.16)	$ (0.30)	$ (0.65)
Weighted average number of common shares outstanding (basic and diluted)	879,674	693,354	857,729	529,801
Distributions declared per common share	$ 0.1440	$ 0.1440	$ 0.4320	$ 0.3930
Class T Common Stock
Other income (expense):
Net loss attributable to common stockholders	$ (327,896)	$ (189,504)	$ (845,906)	$ (584,620)
Net loss per share of common stock outstanding (basic and diluted)	$ (0.10)	$ (0.16)	$ (0.30)	$ (0.65)
Weighted average number of common shares outstanding (basic and diluted)	3,281,231	1,206,653	2,817,132	903,076
Distributions declared per common share	$ 0.1177	$ 0.1169	$ 0.3530	$ 0.3087
Class I Common Stock
Other income (expense):
Net loss attributable to common stockholders	$ (42,884)	$ (9,511)	$ (95,660)	$ (23,112)
Net loss per share of common stock outstanding (basic and diluted)	$ (0.10)	$ (0.16)	$ (0.30)	$ (0.65)
Weighted average number of common shares outstanding (basic and diluted)	429,142	60,561	318,577	35,702
Distributions declared per common share	$ 0.1310	$ 0.1328	$ 0.3936	$ 0.3715

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Total	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 Dec. 31, 2016	$ 5,832,755	$ 6,226,141	$ (342,447)	$ (57,361)	$ 3,251	$ 3,086	$ 85
Beginning Balance (in shares) at Dec. 31, 2016					325,119	308,587	8,454
Subscriptions received for common stock, including distribution reinvestments	$ 16,665,946	16,650,186			$ 3,781	$ 11,178	$ 801
Subscriptions received for common stock, including distribution reinvestments (in shares)	2,200,000				378,053	1,117,844	80,135
Stock dividends issued		(143)			$ 55	$ 85	$ 3
Stock dividends issued (in shares)	14,000				5,454	8,549	291
Stock issuance and offering costs	$ (1,366,381)	(1,366,381)
Net loss	(950,707)		(950,707)
Cash distributions declared	(477,359)			(477,359)
Ending Balance at Sep. 30, 2017	19,704,254	21,509,803	(1,293,154)	(534,720)	$ 7,087	$ 14,349	$ 889
Ending Balance (in shares) at Sep. 30, 2017					708,626	1,434,980	88,880
Beginning Balance at Dec. 31, 2017	26,509,932	28,984,932	(1,658,977)	(846,200)	$ 8,080	$ 20,492	$ 1,605
Beginning Balance (in shares) at Dec. 31, 2017					808,011	2,049,223	160,490
Subscriptions received for common stock, including distribution reinvestments	$ 19,752,438	19,733,531			$ 937	$ 14,803	$ 3,167
Subscriptions received for common stock, including distribution reinvestments (in shares)	4,900,000				93,663	1,480,250	316,665
Stock dividends issued		(352)			$ 80	$ 245	$ 27
Stock dividends issued (in shares)	14,000				8,021	24,541	2,696
Redemptions of common stock	$ (185,460)	(185,276)			$ (126)	$ (58)
Redemptions of common stock, shares					(12,614)	(5,836)
Stock issuance and offering costs	(1,594,920)	(1,594,920)
Net loss	(1,199,118)		(1,199,118)
Cash distributions declared	(1,440,153)			(1,440,153)
Ending Balance at Sep. 30, 2018	$ 41,842,719	$ 46,937,915	$ (2,858,095)	$ (2,286,353)	$ 8,971	$ 35,482	$ 4,799
Ending Balance (in shares) at Sep. 30, 2018					897,081	3,548,178	479,851

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities:
Net cash flows provided by operating activities	$ 204,725	$ 82,390
Investing activities:
Acquisition of property	(24,740,622)	(21,854,119)
Payment of direct acquisition costs		(6,187)
Capital expenditures	(72,330)	(58,781)
Net cash used in investing activities	(24,812,952)	(21,919,087)
Financing activities:
Subscriptions received for common stock through primary offering	19,009,962	16,448,354
Payment of underwriting compensation	(984,483)	(967,600)
Payment of cash distributions, net of distribution reinvestments	(597,676)	(259,767)
Redemptions of common stock	(185,460)
Proceeds from mortgages and notes payable	5,000,000	16,050,000
Payment of loan costs	(91,649)	(208,035)
Net cash flows provided by financing activities	22,150,694	31,062,952
Net (decrease) increase in cash and restricted cash	(2,457,533)	9,226,255
Cash and restricted cash at beginning of period	12,421,919	6,360,241
Cash and restricted cash at end of period	9,964,386	15,586,496
Amounts incurred but not paid (including amounts due to related parties):
Acquisition fees and expenses related to asset acquisition	91,097	24,900
Loan costs	27,807
Selling commissions and dealer manager fees	41,651	16,438
Annual distribution and stockholder servicing fee	1,395,460	$ 549,449
Assumption of liabilities on acquisition of property	$ 115,779

Organization

Organization	9 Months Ended
	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization	1. Organization CNL Healthcare Properties II, Inc. (“Company”) is a Maryland corporation organized on July 10, 2015 that elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the year ended December 31, 2017. The Company is sponsored by CNL Financial Group, LLC (“Sponsor” or “CNL”) and is externally managed and advised by CHP II Advisors, LLC (“Advisor”), 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. On March 2, 2016, pursuant to a registration statement on Form S-11 under the Securities Act of 1933, the Company commenced its initial public offering of up to $1.75 billion (“Primary Offering”), in any combination, of Class A, Class T and Class I shares of common stock on a “best efforts” basis, which meant that CNL Securities Corp. (“Dealer Manager”), an affiliate of the Sponsor, used its best efforts but was not required to sell any specific amount of shares. The Company also offered up to $250 million, in any combination, of Class A, Class T and Class I shares pursuant to its distribution reinvestment plan (“Reinvestment Plan” and, together with the Primary Offering, the “Offering”). On August 31, 2018, the Company’s board of directors approved the termination of its Offering and the suspension of its Reinvestment Plan, effective October 1, 2018. The Company also suspended its share redemption plan (“Redemption Plan”) and discontinued its stock dividends concurrently. In October 2018, the Company deregistered the unsold shares of its common stock under its previous registration statement on Form S-11. In addition, the Company announced it had formed a special committee consisting solely of its independent directors (“Special Committee”) to consider possible strategic alternatives available to the Company, including, without limitation, (i) an orderly disposition of the Company’s assets or one or more of the Company’s asset classes and the distribution of the net sale proceeds thereof to the stockholders of the Company and (ii) a potential business combination or other transaction. Although the Company has formed the Special Committee for the exploration of possible strategic alternatives, the Company is not obligated to enter into any particular transaction or any transaction at all. As of September 30, 2018, the Company had received aggregate Offering proceeds of approximately $51.2 million (4.9 million shares), including approximately $1.2 million (0.1 million shares) of proceeds pursuant to the Reinvestment Plan. The Company has contributed the net proceeds from its Offering to CHP II Partners, LP (“Operating Partnership”) in exchange for partnership interests. The Company owns substantially all of its assets either directly or indirectly through the 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 Operating Partnership owns assets through: (1) a wholly-owned taxable REIT subsidiary (“TRS”), CHP II TRS Holding, Inc. (“TRS Holdings”) and (2) property owner subsidiaries, which are single purpose entities. The Company has leased its two seniors housing properties to single member limited liability companies wholly-owned by TRS Holdings and engaged independent third-party managers under management agreements to operate the properties as permitted under the REIT Investment Diversification and Empowerment Act of 2007 (“RIDEA”) structures; whereas, its medical office building has been leased on a net or modified gross basis to third-party tenants.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Consolidation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles in the United States (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which, in the opinion of management, are necessary for the fair statement of the Company’s results for the interim period presented. Operating results for the quarter and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the year ending December 31, 2018. Amounts as of December 31, 2017 included in the unaudited condensed consolidated financial statements have been derived from audited consolidated financial statements as of that date but do not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership and its other subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. 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 condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Adopted 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, including interim periods within that reporting period, with earlier adoption permitted. In addition, the FASB issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)," which clarifies the scope of subtopic 610-20, that was issued as a part of ASU 2014-09, as it relates to in-substance nonfinancial assets and must be adopted concurrently with ASC 606. Both ASUs can be adopted using one of two retrospective transition methods: (i) retrospectively to each prior reporting period presented or (ii) as a cumulative-effect adjustment as of the date of adoption. The Company adopted these ASUs using the modified retrospective approach as its transition method on January 1, 2018; the adoption of which did not have a material impact to its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amended the hedge accounting model to better reflect an entity’s risk management activities. The ASU expands an entities ability to hedge nonfinancial and financial risk components as well as reduce the complexity related to fair value hedges of interest rate risk. The ASU further eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company early adopted this ASU prospectively on January 1, 2018; the adoption of which did not have a material impact on the Company’s consolidated financial statements. 2. Summary of Significant Accounting Policies (continued) Recent Accounting Pronouncements — 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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which includes a practical expedient for lessors allowing them to elect to not separate lease and non-lease components in a contract for the purpose of revenue recognition and disclosure if certain criteria are met. The Company plans to elect the practical expedient and apply to all leases that qualify under the established criteria. 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 expects that adoption will impact the Company’s consolidated financial statements and related financial statement disclosures; specifically, the Company’s consolidated financial position as it relates to the required presentation for arrangements such as ground or other leases in which the Company is the lessee. However, the Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated results of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which expands the scope to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payments. The amendments also clarify that this topic does not apply to share-based payments used to provide financing to the issuer or awards granted in conjunction with selling of goods or services to customers as a part of a contract accounted for under Revenue from Contracts with Customers (Topic 606). The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company does not expect of adoption of this ASU will have a material impact on the Company’s consolidated financial statements.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue	3. Revenue Resident fees and services are operating revenues relating to the Company’s managed seniors housing property, which is operated under a RIDEA structure. Resident fees and services directly relate to the provision of monthly goods and services that are generally bundled together under a single resident agreement. The Company accounts for its resident agreements as a single performance obligation under ASC 606 given the Company’s overall promise to provide a series of stand-ready goods and services to its residents each month. Resident fees and services are recorded in the period in which the goods are provided and the services performed and generally consist of (1) monthly rent, which covers occupancy of the residents’ unit as well as basic services, such as utilities, meals and certain housekeeping services, and (2) service level charges, such as assisted living care, memory care and ancillary services. Resident agreements are generally short-term in nature, billed monthly in advance and cancelable by the residents with a 30-day notice. Resident agreements may require the payment of upfront fees prior to moving into the community with any non-refundable portion of such fees being recorded as deferred revenue and amortized over the estimated resident stay. The following table represents the disaggregated revenue for resident fees and services during the nine months ended September 30, 2018 and 2017: Nine Months Ended September 30, Type of Investment Number of Units Revenues Percentage of Revenues Resident fees and services: 2018 2017 2018 2017 2018 2017 Assisted living 129 67 $ 2,706,757 $ 1,609,755 72.2 % 73.9 % Memory care 52 22 998,661 556,818 26.6 % 25.6 % Other revenues ― ― 43,266 11,993 1.2 % 0.5 % 181 89 $ 3,748,684 $ 2,178,566 100.0 % 100.0 %

Real Estate Acquisitions

Real Estate Acquisitions	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Real Estate Acquisitions	4. Real Estate Acquisitions During the nine months ended September 30, 2018, the Company acquired a seniors housing community in Riverview, Florida (“Riverview”) for a purchase price of approximately $24.3 million. In connection therewith, the Company incurred approximately $0.7 million of acquisition fees and expenses, which were capitalized as a component of the cost of the assets acquired and allocated on a relative fair value basis. The seniors housing community features 92 resident units (62 assisted living and 30 memory care units) and is operated under a RIDEA structure pursuant to a five-year property management agreement with Fosters Development, Inc. (“Fosters”). During the nine months ended September 30, 2017, the Company acquired a seniors housing community in Pensacola, Florida (“Summer Vista”) for a purchase price of approximately $21.4 million. In connection therewith, the Company incurred approximately $0.6 million of acquisition fees and expenses, which were capitalized as a component of the cost of the assets acquired and allocated on a relative fair value basis. The seniors housing community features 89 resident units (67 assisted living and 22 memory care units) and is operated under a RIDEA structure pursuant to a five-year property management agreement with SRI Management, LLC (“Superior Residences”). The following summarizes the purchase price allocation for the above mentioned acquisitions, and the related assets acquired and liabilities assumed in connection with the acquisitions: September 30, 2018 2017 Land and land improvements $ 1,763,286 $ 2,269,406 Buildings and building improvements 21,087,594 17,611,786 Furniture, fixtures and equipment 813,747 857,338 In-place resident agreement intangibles (1) 1,282,871 1,286,507 Liabilities assumed (115,779 ) (170,918 ) Total purchase price consideration $ 24,831,719 $ 21,854,119 FOOTNOTE: (1) At the acquisition date, the weighted-average amortization period on the acquired in-place resident agreement intangibles was approximately 2.5 years and is based on the expected unit turnover.

Real Estate Assets, net

Real Estate Assets, net	9 Months Ended
	Sep. 30, 2018
Real Estate [Abstract]
Real Estate Assets, net	5. Real Estate Assets, net The gross carrying amount and accumulated depreciation of the Company’s real estate assets as of September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, 2018 2017 Land and land improvements $ 4,446,358 $ 2,683,051 Building and building improvements 49,197,217 28,109,037 Furniture, fixtures and equipment 1,764,570 879,288 Less: accumulated depreciation (1,466,628 ) (585,437 ) Real estate assets, net $ 53,941,517 $ 31,085,939 Depreciation expense on the Company’s real estate assets, net was approximately $0.3 million and $0.9 million for the quarter and nine months ended September 30, 2018, respectively, and approximately $0.2 million and $0.4 million for the quarter and nine months ended September 30, 2017, respectively.

Intangibles, net

Intangibles, net	9 Months Ended
	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Intangibles, net	6. Intangibles, net The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities as of September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, 2018 2017 In-place lease intangibles $ 2,209,247 $ 2,209,125 In-place resident agreement intangibles 2,569,378 1,286,507 Below-market ground lease intangibles 1,543,910 1,543,824 Less: accumulated amortization (1,015,163 ) (385,952 ) Intangible assets, net $ 5,307,372 $ 4,653,504 Below-market lease intangibles $ (340,409 ) $ (340,390 ) Less: accumulated amortization 22,915 ― Intangible liabilities, net (1) $ (317,494 ) $ (340,390 ) FOOTNOTE: (1) Intangible liabilities, net are included in other liabilities in the accompanying condensed consolidated balance sheets. Amortization on the Company’s intangible assets was approximately $0.2 million and $0.6 million for the quarter and nine months ended September 30, 2018, respectively, of which approximately $10,000 and $30,000 was treated as an increase of property operating expenses and approximately $0.2 million and $0.6 million was included in depreciation and amortization. Amortization on the Company’s intangible assets was approximately $0.1 million and $0.3 million for the quarter and nine months ended September 30, 2017, respectively, all of which was included in depreciation and amortization. Amortization on the Company’s intangible liabilities was approximately $8,000 and $23,000 for the quarter and nine months ended September 30, 2018, respectively, all of which was treated as an increase in rental income and tenant reimbursements. There was no amortization expense on the Company’s intangible liabilities for the quarter and nine months ended September 30, 2017. The estimated future amortization on the Company’s intangibles for the remainder of 2018, each of the next four years and thereafter, in the aggregate, as of September 30, 2018 is as follows: In-Place Lease Intangibles In-Place Resident Agreement Intangibles Below- market Ground Leases Total Assets Below- market leases Total Liabilities 2018 $ 56,939 $ 256,938 $ 9,897 $ 323,774 $ 7,638 $ 7,638 2019 227,754 899,100 39,587 1,166,441 30,553 30,553 2020 198,365 513,148 39,587 751,100 27,103 27,103 2021 188,568 85,525 39,587 313,680 25,953 25,953 2022 188,568 ― 39,587 228,155 25,953 25,953 Thereafter 1,178,248 ― 1,345,974 2,524,222 200,294 200,294 $ 2,038,442 $ 1,754,711 $ 1,514,219 $ 5,307,372 $ 317,494 $ 317,494

Indebtedness

Indebtedness	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Indebtedness	7. Indebtedness In August 2018, in connection with the Riverview acquisition, the Company entered into a secured mortgage loan agreement with Florida Community Bank in the amount of approximately $5.0 million (“Riverview Loan”). The Riverview loan matures on August 31, 2023. The Riverview loan accrues interest at a rate of the sum of LIBOR plus 2.25%, with monthly payments of interest for the first 24 months, and monthly payments of interest and principal during the remaining months using a 30-year amortization period with the remaining balance payable at maturity. The Company may prepay, without penalty, all or any part of the Riverview Loan at any time. The following table provides details of the Company’s indebtedness as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 Mortgages and notes payable: Mortgage loans (1) $ 24,500,000 $ 19,500,000 Notes payable 312,500 312,500 Mortgages and notes payable 24,812,500 19,812,500 Loan costs, net (335,555 ) (279,514 ) Total mortgages and notes payable, net $ 24,476,945 $ 19,532,986 FOOTNOTE: (1) As of September 30, 2018, the Company’s mortgage loans are collateralized by its Summer Vista, Mid America Surgery, and Riverview properties. The fair market value of the mortgage and notes payable was approximately $24.9 million as of September 30, 2018, 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. The following is a schedule of future principal payments and maturity for the Company’s indebtedness for the remainder of 2018, each of the next four years and thereafter, in the aggregate, as of September 30, 2018: 2018 $ 32,036 2019 199,072 2020 5,829,156 2021 295,611 2022 13,304,382 Thereafter 5,152,243 $ 24,812,500

Related Party Arrangements

Related Party Arrangements	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
Related Party Arrangements	8. Related Party Arrangements The Company is externally advised and has no direct employees. All of the Company’s executive officers are executive officers, or 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 — In March 2017, the Company entered into an amended and restated dealer manager agreement pursuant to which the Dealer Manager received a combined selling commission and dealer manager fee of up to 8.5% of the sale price for each Class A share and up to 4.75% of the sale price for each Class T share sold in the Primary Offering, all or a portion of which could be reallowed to participating broker dealers. In addition, for Class T shares sold in the Primary Offering, the Dealer Manager could choose the respective amounts of the commission and dealer manager fee, provided that the selling commission did not exceed 3.0% of the gross proceeds from the completed sale of such Class T shares. The Company has and will continue to 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. 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 12. “Subsequent Events” for additional information. The Company recorded 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 is relieved over time, as the fees are paid to the Dealer Manager, or is 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 occurrence 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 8.5% of the gross offering price of those shares purchased in such Primary Offering (excluding shares purchased through the Reinvestment Plan and those received as stock dividends); or (v) any other conditions described in the Company’s prospectus. The Company’s distribution and stockholder servicing fees liability was approximately $1.4 million as of September 30, 2018. The Company’s obligation to pay the annual distribution and stockholder servicing fee ceased effective October 31, 2018 upon the conversion of the Class T and Class I shares into Class A Shares. Refer to Note 12. “Subsequent Events” for additional information. CNL Capital Markets, LLC — The Company will pay CNL Capital Markets, LLC, 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. 8. 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 Advisor received an investment services fee of 2.25% of the purchase price of properties for services in connection with the selection, evaluation, structure and purchase of assets. 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 four consecutive fiscal quarters (“Expense Year”) unless approved by the independent directors. For the Expense Year ended September 30, 2018, the Company’s total operating expenses were in excess of this limitation by approximately $0.4 million. As of September 30, 2018, the Company had received cumulative approvals from its independent directors for total operating expenses in excess of this limitation of approximately $0.9 million. The Company’s independent directors determined that the higher relationship of operating expenses to average invested assets was justified based on unattained capital raise expectations which limited the number of investments, and the cost of operating a public company. 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, Security and Exchange Commission (“SEC”) registration fees, Financial Industry Regulatory Authority (“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. For the quarter and nine months ended September 30, 2018, the Company paid cash distributions of approximately $38,000 and $114,000, respectively, and issued stock dividends of approximately 1,000 shares and 2,000 shares, respectively, to the Advisor. For the quarter and nine months ended September 30, 2017, the Company paid cash distributions of approximately $40,000 and $108,000, respectively, and issued stock dividends of approximately 800 shares and 3,000 shares, respectively. 8. Related Party Arrangements (continued) Pursuant to an expense support arrangement, the Advisor has agreed to accept payment in 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”). Under the terms of the Expense Support Agreement, for each quarter within a calendar expense support year, the Company will record a proportional estimate of the cumulative year-to-date period based on an estimate of the annual expense support expected for the calendar expense support year. In exchange for services rendered and in consideration of the expense support provided under this arrangement, 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 year divided by the board of directors’ most recent determination of net asset value (“NAV”) 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 such terms are defined in the Company’s prospectus), excluding for the purposes of calculating this threshold any shares of restricted stock owned by the Advisor. The following fees for services rendered are expected to be settled in the form of restricted stock pursuant to the Expense Support Agreement for the quarter and nine months ended September 30, 2018 and cumulatively as of September 30, 2018: Quarter Ended Nine Months Ended As of September 30, September 30, September 30, 2018 2017 2018 2017 2018 Fees for services rendered: Asset management fees $ 87,488 $ 42,800 $ 229,088 $ 86,060 $ 359,454 Advisor personnel expenses (1) 112,784 95,805 362,555 320,204 798,958 Total fees for services rendered $ 200,272 $ 138,605 $ 591,643 $ 406,264 $ 1,158,412 Then-current offering price or NAV $ 10.06 $ 10.93 $ 10.06 $ 10.93 $ 10.06 Restricted stock shares (2) 19,908 12,681 58,811 37,170 115,150 Cash distributions on restricted stock (3) $ 8,113 $ ― $ 16,226 $ ― $ 16,226 Stock dividends on restricted stock (4) 170 ― 340 ― 340 FOOTNOTES: (1) Amounts consist of personnel and related overhead costs of the Advisor or its affiliates (which, in general, are those expenses relating to the Company’s administration on an on-going basis) that are reimbursable by the Company. (2) Represents restricted stock shares issued or expected to be issued to the Advisor as of September 30, 2018 pursuant to the Expense Support Agreement. No fair value was assigned to the restricted stock shares as the shares are expected to be valued at zero upon issuance, which represents the lowest possible value estimated at vesting. In addition, the restricted stock shares will be treated as unissued for financial reporting purposes until the vesting criteria are met. (3) The cash distributions have been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations. (4) The par v alue of the stock dividends has been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations. 8. Related Party Arrangements (continued) The fees payable to the Dealer Manager for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows: Quarter Ended Nine Months Ended Unpaid amounts as of (1) September 30, September 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 Selling commissions (2) $ 121,413 $ 138,544 $ 343,087 $ 481,913 $ 16,522 $ 10,000 Dealer manager fees (2) 153,073 161,461 429,356 422,112 25,129 18,150 Distribution and stockholder servicing fees (2) 307,630 239,677 822,477 462,356 1,395,460 798,524 $ 582,116 $ 539,682 $ 1,594,920 $ 1,366,381 $ 1,437,111 $ 826,674 The expenses incurred by and reimbursable to the Company’s related parties for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows: Quarter Ended Nine Months Ended Unpaid amounts as of (1) September 30, September 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 Reimbursable expenses: Operating expenses (3) $ 227,393 $ 221,415 $ 754,188 $ 652,824 $ 68,844 $ 197,235 Acquisition fees and expenses 8,680 5,816 10,183 27,705 ― ― 236,073 227,231 764,371 680,529 68,844 197,235 Investment Service Fees (4) 545,625 ― 545,625 481,500 ― ― Asset Management Fees (5) 87,488 42,800 229,088 86,060 ― ― $ 869,186 $ 270,031 $ 1,539,084 $ 1,248,089 $ 68,844 $ 197,235 FOOTNOTES: (1) Amounts are recorded as due to related parties in the accompanying condensed consolidated balance sheets. (2) Amounts are recorded as stock issuance and offering costs in the accompanying condensed consolidated statements of stockholders’ equity. (3) Amounts are recorded as general and administrative expenses in the accompanying condensed consolidated statements of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying condensed consolidated balance sheets. For the quarter and nine months ended September 30, 2018, approximately $0.1 million and $0.4 million, respectively, of personnel expenses of affiliates of the Advisor are expected to be settled in accordance with the terms of the Expense Support Agreement and as such our general administrative expenses were reduced by approximately $0.1 million and $0.4 million, respectively. For the quarter and nine months ended September 30, 2017, approximately $0.1 million and $0.3 million, respectively, of personnel expenses of affiliates of the Advisor were settled in accordance with the terms of the Expense Support Agreement. (4) For the quarter and nine months ended September 30, 2018 the Company incurred approximately $0.5 million in investment services fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. For the nine months ended September 30, 2017, the Company incurred approximately $0.5 million in investment service fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. No such fees were incurred for the quarter ended September 30, 2017. (5) For the quarter and nine months ended September 30, 2018, the Company incurred approximately $0.1 million and $0.2 million, respectively, in asset management fees, all of which are expected to be settled in accordance with the terms of the Expense Support Agreement. For the quarter and nine months ended September 30, 2017, the Company incurred approximately $43,000 and $86,000 in asset management fees, respectively, all of which were settled in accordance with the terms of the Expense Support Agreement.

Equity

Equity	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Equity	9. Equity Subscription Proceeds — As of September 30, 2018 and 2017, the Company had received aggregate subscription proceeds of approximately $51.2 million (4.9 million shares) and $23.3 million (2.2 million shares), respectively, both of which include $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 a private placement made in 2016 and approximately $1.2 million (0.1 million shares) and $221,000 (22,100 shares), respectively, of subscription proceeds pursuant to the Reinvestment Plan. The Company terminated and closed its Primary Offering effective October 1, 2018 and concurrently suspended the Reinvestment Plan. Distributions — For the nine months ended September 30, 2018 and 2017, the Company declared and paid cash distributions of approximately $1.4 million and $0.5 million, respectively, which were net of class-specific expenses. In addition, the Company declared and issued stock dividends of approximately 35,000 and 14,000 shares of common stock during the nine months ended September 30, 2018 and 2017, respectively. For the nine months ended September 30, 2018 and 2017, 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 nine months ended September 30, 2018 and 2017 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 stock shares to recipients is non-taxable. In September 2018, the Company’s board of directors declared a monthly cash distribution of $0.0480, less class-specific expenses, on each outstanding share of common stock on October 1, 2018, November 1, 2018 and December 1, 2018. These distributions are to be paid and distributed by December 31, 2018. In connection with the termination of the Offering effective October 1, 2018, the Company’s board of directors determined that it does not intend to authorize additional stock dividends at this time. Refer to Note 12. “Subsequent Events” for additional information. Redemptions — During the nine months ended September 30, 2018, the Company received requests for the redemption of common stock under its Redemption Plan of approximately $59,000 in Class T shares and $127,000 in Class A shares, which were approved for redemption at a weighted average price per share of $10.05 and paid in March 2018, June 2018, and September 2018, respectively. There were no redemptions requested during the nine months ended September 30, 2017. In connection with the termination of the Offering and the board of directors’ decision to consider possible strategic alternatives available to the Company, the Redemption Plan was suspended effective October 1, 2018 and the Company no longer accepts or processes any redemption requests received after such date.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The accompanying condensed consolidated financial statements include an interim tax provision for the quarter and nine months ended September 30, 2018 and 2017. The Company recorded a total provision for income tax (benefit) expense of approximately ($10,000) and $35,000 for the quarter and nine months ended September 30, 2018, respectively, and approximately $12,000 and $42,000 for the quarter and nine months ended September 30, 2017, respectively. Of the approximate $35,000 in income tax expense for the nine months ended September 30, 2018, approximately $32,000 represent current income tax expense, and approximately $3,000 represents a decrease to the Company’s net deferred tax assets which is primarily due to the reversal of the existing taxable temporary differences. Of the approximate $42,000 in income tax expense for the nine months ended September 30, 2017, $73,000 represents current income tax expense offset by $31,000 of deferred tax benefit.

Commitment and Contingencies

Commitment and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events In October 2018, the Company repaid approximately $0.3 million of promissory notes and redeemed approximately $0.3 million (26,000 shares) of shares, which were both previously issued in connection with a private placement offering in August 2016. In connection with the close of the Offering effective October 1, 2018, certain underwriting compensation limits were met and, effective October 31, 2018, each Class T and Class I share automatically converted into a Class A share pursuant to the terms of the Company’s charter. The Class T and Class I shares converted into Class A shares on a one-for-one basis because the most recent estimated NAV per share of $10.06, which was approved by the Company’s board of directors as of December 31, 2017, is the same for all share classes. Stockholders who received Class A shares upon the conversion will no longer be subject to the class-specific expenses associated with Class T and Class I shares. The Company’s obligation to pay the approximate $1.4 million distribution and stockholder servicing fees liability as of September 30, 2018 to the Dealer Manager ceased effective October 31, 2018 upon the conversion of the Class T and Class I shares into Class A Shares.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles in the United States (“GAAP”). The unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which, in the opinion of management, are necessary for the fair statement of the Company’s results for the interim period presented. Operating results for the quarter and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the year ending December 31, 2018. Amounts as of December 31, 2017 included in the unaudited condensed consolidated financial statements have been derived from audited consolidated financial statements as of that date but do not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The accompanying condensed consolidated financial statements include the accounts of the Company, the Operating Partnership and its other subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation.
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 condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Adopted Accounting Pronouncements	Adopted 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, including interim periods within that reporting period, with earlier adoption permitted. In addition, the FASB issued ASU 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20)," which clarifies the scope of subtopic 610-20, that was issued as a part of ASU 2014-09, as it relates to in-substance nonfinancial assets and must be adopted concurrently with ASC 606. Both ASUs can be adopted using one of two retrospective transition methods: (i) retrospectively to each prior reporting period presented or (ii) as a cumulative-effect adjustment as of the date of adoption. The Company adopted these ASUs using the modified retrospective approach as its transition method on January 1, 2018; the adoption of which did not have a material impact to its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12 “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities,” which amended the hedge accounting model to better reflect an entity’s risk management activities. The ASU expands an entities ability to hedge nonfinancial and financial risk components as well as reduce the complexity related to fair value hedges of interest rate risk. The ASU further eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company early adopted this ASU prospectively on January 1, 2018; the adoption of which did not have a material impact on the Company’s consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements — 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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements,” which includes a practical expedient for lessors allowing them to elect to not separate lease and non-lease components in a contract for the purpose of revenue recognition and disclosure if certain criteria are met. The Company plans to elect the practical expedient and apply to all leases that qualify under the established criteria. 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 expects that adoption will impact the Company’s consolidated financial statements and related financial statement disclosures; specifically, the Company’s consolidated financial position as it relates to the required presentation for arrangements such as ground or other leases in which the Company is the lessee. However, the Company does not expect the adoption of this ASU to have a material impact on the Company’s consolidated results of operations or cash flows. In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”, which expands the scope to include share-based payment transactions for acquiring goods and services from nonemployees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payments. The amendments also clarify that this topic does not apply to share-based payments used to provide financing to the issuer or awards granted in conjunction with selling of goods or services to customers as a part of a contract accounted for under Revenue from Contracts with Customers (Topic 606). The ASU is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company does not expect of adoption of this ASU will have a material impact on the Company’s consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue From Contract With Customer [Abstract]
Schedule of Disaggregated Revenue for Resident Fees and Services	The following table represents the disaggregated revenue for resident fees and services during the nine months ended September 30, 2018 and 2017: Nine Months Ended September 30, Type of Investment Number of Units Revenues Percentage of Revenues Resident fees and services: 2018 2017 2018 2017 2018 2017 Assisted living 129 67 $ 2,706,757 $ 1,609,755 72.2 % 73.9 % Memory care 52 22 998,661 556,818 26.6 % 25.6 % Other revenues ― ― 43,266 11,993 1.2 % 0.5 % 181 89 $ 3,748,684 $ 2,178,566 100.0 % 100.0 %

Real Estate Acquisitions (Table

Real Estate Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Summary of Purchase Price Allocation and Related Assets Acquired and Liabilities Assumed	The following summarizes the purchase price allocation for the above mentioned acquisitions, and the related assets acquired and liabilities assumed in connection with the acquisitions: September 30, 2018 2017 Land and land improvements $ 1,763,286 $ 2,269,406 Buildings and building improvements 21,087,594 17,611,786 Furniture, fixtures and equipment 813,747 857,338 In-place resident agreement intangibles (1) 1,282,871 1,286,507 Liabilities assumed (115,779 ) (170,918 ) Total purchase price consideration $ 24,831,719 $ 21,854,119 FOOTNOTE: (1) At the acquisition date, the weighted-average amortization period on the acquired in-place resident agreement intangibles was approximately 2.5 years and is based on the expected unit turnover.

Real Estate Assets, net (Tables

Real Estate Assets, net (Tables)	9 Months Ended
	Sep. 30, 2018
Real Estate [Abstract]
Schedule of Real Estate Assets	The gross carrying amount and accumulated depreciation of the Company’s real estate assets as of September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, 2018 2017 Land and land improvements $ 4,446,358 $ 2,683,051 Building and building improvements 49,197,217 28,109,037 Furniture, fixtures and equipment 1,764,570 879,288 Less: accumulated depreciation (1,466,628 ) (585,437 ) Real estate assets, net $ 53,941,517 $ 31,085,939

Intangibles, net (Tables)

Intangibles, net (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangibles	The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities as of September 30, 2018 and December 31, 2017 are as follows: September 30, December 31, 2018 2017 In-place lease intangibles $ 2,209,247 $ 2,209,125 In-place resident agreement intangibles 2,569,378 1,286,507 Below-market ground lease intangibles 1,543,910 1,543,824 Less: accumulated amortization (1,015,163 ) (385,952 ) Intangible assets, net $ 5,307,372 $ 4,653,504 Below-market lease intangibles $ (340,409 ) $ (340,390 ) Less: accumulated amortization 22,915 ― Intangible liabilities, net (1) $ (317,494 ) $ (340,390 ) FOOTNOTE: (1) Intangible liabilities, net are included in other liabilities in the accompanying condensed consolidated balance sheets.
Schedule of Estimated Future Amortization of Intangibles	The estimated future amortization on the Company’s intangibles for the remainder of 2018, each of the next four years and thereafter, in the aggregate, as of September 30, 2018 is as follows: In-Place Lease Intangibles In-Place Resident Agreement Intangibles Below- market Ground Leases Total Assets Below- market leases Total Liabilities 2018 $ 56,939 $ 256,938 $ 9,897 $ 323,774 $ 7,638 $ 7,638 2019 227,754 899,100 39,587 1,166,441 30,553 30,553 2020 198,365 513,148 39,587 751,100 27,103 27,103 2021 188,568 85,525 39,587 313,680 25,953 25,953 2022 188,568 ― 39,587 228,155 25,953 25,953 Thereafter 1,178,248 ― 1,345,974 2,524,222 200,294 200,294 $ 2,038,442 $ 1,754,711 $ 1,514,219 $ 5,307,372 $ 317,494 $ 317,494

Indebtedness (Tables)

Indebtedness (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Schedule of Indebtedness	The following table provides details of the Company’s indebtedness as of September 30, 2018 and December 31, 2017: September 30, December 31, 2018 2017 Mortgages and notes payable: Mortgage loans (1) $ 24,500,000 $ 19,500,000 Notes payable 312,500 312,500 Mortgages and notes payable 24,812,500 19,812,500 Loan costs, net (335,555 ) (279,514 ) Total mortgages and notes payable, net $ 24,476,945 $ 19,532,986
Schedule of Future Principal Payments and Maturity	The following is a schedule of future principal payments and maturity for the Company’s indebtedness for the remainder of 2018, each of the next four years and thereafter, in the aggregate, as of September 30, 2018: 2018 $ 32,036 2019 199,072 2020 5,829,156 2021 295,611 2022 13,304,382 Thereafter 5,152,243 $ 24,812,500

Related Party Arrangements (Tab

Related Party Arrangements (Tables)	9 Months Ended
	Sep. 30, 2018
Related Party Arrangement, Fees and Expenses Incurred By, Reimbursable, Settled and Paid	The expenses incurred by and reimbursable to the Company’s related parties for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows: Quarter Ended Nine Months Ended Unpaid amounts as of (1) September 30, September 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 Reimbursable expenses: Operating expenses (3) $ 227,393 $ 221,415 $ 754,188 $ 652,824 $ 68,844 $ 197,235 Acquisition fees and expenses 8,680 5,816 10,183 27,705 ― ― 236,073 227,231 764,371 680,529 68,844 197,235 Investment Service Fees (4) 545,625 ― 545,625 481,500 ― ― Asset Management Fees (5) 87,488 42,800 229,088 86,060 ― ― $ 869,186 $ 270,031 $ 1,539,084 $ 1,248,089 $ 68,844 $ 197,235 FOOTNOTES: (1) Amounts are recorded as due to related parties in the accompanying condensed consolidated balance sheets. (2) Amounts are recorded as stock issuance and offering costs in the accompanying condensed consolidated statements of stockholders’ equity. (3) Amounts are recorded as general and administrative expenses in the accompanying condensed consolidated statements of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying condensed consolidated balance sheets. For the quarter and nine months ended September 30, 2018, approximately $0.1 million and $0.4 million, respectively, of personnel expenses of affiliates of the Advisor are expected to be settled in accordance with the terms of the Expense Support Agreement and as such our general administrative expenses were reduced by approximately $0.1 million and $0.4 million, respectively. For the quarter and nine months ended September 30, 2017, approximately $0.1 million and $0.3 million, respectively, of personnel expenses of affiliates of the Advisor were settled in accordance with the terms of the Expense Support Agreement. (4) For the quarter and nine months ended September 30, 2018 the Company incurred approximately $0.5 million in investment services fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. For the nine months ended September 30, 2017, the Company incurred approximately $0.5 million in investment service fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. No such fees were incurred for the quarter ended September 30, 2017. (5) For the quarter and nine months ended September 30, 2018, the Company incurred approximately $0.1 million and $0.2 million, respectively, in asset management fees, all of which are expected to be settled in accordance with the terms of the Expense Support Agreement. For the quarter and nine months ended September 30, 2017, the Company incurred approximately $43,000 and $86,000 in asset management fees, respectively, all of which were settled in accordance with the terms of the Expense Support Agreement.
Dealer Manager
Related Party Arrangement, Fees and Expenses Incurred By, Reimbursable, Settled and Paid	The fees payable to the Dealer Manager for the quarter and nine months ended September 30, 2018 and 2017, and related amounts unpaid as of September 30, 2018 and December 31, 2017 are as follows: Quarter Ended Nine Months Ended Unpaid amounts as of (1) September 30, September 30, September 30, December 31, 2018 2017 2018 2017 2018 2017 Selling commissions (2) $ 121,413 $ 138,544 $ 343,087 $ 481,913 $ 16,522 $ 10,000 Dealer manager fees (2) 153,073 161,461 429,356 422,112 25,129 18,150 Distribution and stockholder servicing fees (2) 307,630 239,677 822,477 462,356 1,395,460 798,524 $ 582,116 $ 539,682 $ 1,594,920 $ 1,366,381 $ 1,437,111 $ 826,674
Expense Support Agreement
Related Party Arrangement, Fees and Expenses Incurred By, Reimbursable, Settled and Paid	The following fees for services rendered are expected to be settled in the form of restricted stock pursuant to the Expense Support Agreement for the quarter and nine months ended September 30, 2018 and cumulatively as of September 30, 2018: Quarter Ended Nine Months Ended As of September 30, September 30, September 30, 2018 2017 2018 2017 2018 Fees for services rendered: Asset management fees $ 87,488 $ 42,800 $ 229,088 $ 86,060 $ 359,454 Advisor personnel expenses (1) 112,784 95,805 362,555 320,204 798,958 Total fees for services rendered $ 200,272 $ 138,605 $ 591,643 $ 406,264 $ 1,158,412 Then-current offering price or NAV $ 10.06 $ 10.93 $ 10.06 $ 10.93 $ 10.06 Restricted stock shares (2) 19,908 12,681 58,811 37,170 115,150 Cash distributions on restricted stock (3) $ 8,113 $ ― $ 16,226 $ ― $ 16,226 Stock dividends on restricted stock (4) 170 ― 340 ― 340 FOOTNOTES: (1) Amounts consist of personnel and related overhead costs of the Advisor or its affiliates (which, in general, are those expenses relating to the Company’s administration on an on-going basis) that are reimbursable by the Company. (2) Represents restricted stock shares issued or expected to be issued to the Advisor as of September 30, 2018 pursuant to the Expense Support Agreement. No fair value was assigned to the restricted stock shares as the shares are expected to be valued at zero upon issuance, which represents the lowest possible value estimated at vesting. In addition, the restricted stock shares will be treated as unissued for financial reporting purposes until the vesting criteria are met. (3) The cash distributions have been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations. (4) The par v alue of the stock dividends has been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations.

Organization - Additional Infor

Organization - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Mar. 02, 2016
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Aggregate offering proceeds	$ 19,009,962	$ 16,448,354
Common stock, shares sold	4,900,000	2,200,000
Initial Public Offering
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, value authorized			$ 1,750,000,000
Aggregate offering proceeds	$ 51,200,000
Common stock, shares sold	4,900,000
Reinvestment Plan
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Common stock, value authorized			$ 250,000,000
Aggregate offering proceeds	$ 1,200,000
Common stock, shares sold	100,000

Revenue - Schedule of Disaggreg

Revenue - Schedule of Disaggregated Revenue for Resident Fees and Services (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)ResidentialUnit	Sep. 30, 2017USD ($)ResidentialUnit
Disaggregation Of Revenue [Line Items]
Resident fees and services: Number of Units | ResidentialUnit			181	89
Resident fees and services: Percentage of Revenues			100.00%	100.00%
Health Care Resident Service
Disaggregation Of Revenue [Line Items]
Resident fees and services: Revenues	$ 1,483,924	$ 1,095,696	$ 3,748,684	$ 2,178,566
Assisted Living
Disaggregation Of Revenue [Line Items]
Resident fees and services: Number of Units | ResidentialUnit			129	67
Resident fees and services: Percentage of Revenues			72.20%	73.90%
Assisted Living | Health Care Resident Service
Disaggregation Of Revenue [Line Items]
Resident fees and services: Revenues			$ 2,706,757	$ 1,609,755
Memory Care
Disaggregation Of Revenue [Line Items]
Resident fees and services: Number of Units | ResidentialUnit			52	22
Resident fees and services: Percentage of Revenues			26.60%	25.60%
Memory Care | Health Care Resident Service
Disaggregation Of Revenue [Line Items]
Resident fees and services: Revenues			$ 998,661	$ 556,818
Other Revenues
Disaggregation Of Revenue [Line Items]
Resident fees and services: Percentage of Revenues			1.20%	0.50%
Other Revenues | Health Care Resident Service
Disaggregation Of Revenue [Line Items]
Resident fees and services: Revenues			$ 43,266	$ 11,993

Real Estate Acquisitions - Addi

Real Estate Acquisitions - Additional Information (Details)	9 Months Ended
	Sep. 30, 2018USD ($)ResidentialAssistedLivingMemoryCare	Sep. 30, 2017USD ($)ResidentialAssistedLivingMemoryCare
Business Acquisition [Line Items]
Acquisition fees and expenses	$ 818
Fosters
Business Acquisition [Line Items]
Property management agreement period	5 years
Superior Residences
Business Acquisition [Line Items]
Property management agreement period		5 years
Riverview Florida
Business Acquisition [Line Items]
Purchase price	$ 24,300,000
Acquisition fees and expenses	$ 700,000
Number of resident units | Residential	92
Riverview Florida | Assisted Living
Business Acquisition [Line Items]
Number of resident units | AssistedLiving	62
Riverview Florida | Memory Care
Business Acquisition [Line Items]
Number of resident units | MemoryCare	30
Summer Vista
Business Acquisition [Line Items]
Purchase price		$ 21,400,000
Acquisition fees and expenses		$ 600,000
Number of resident units | Residential		89
Summer Vista | Assisted Living
Business Acquisition [Line Items]
Number of resident units | AssistedLiving		67
Summer Vista | Memory Care
Business Acquisition [Line Items]
Number of resident units | MemoryCare		22

Real Estate Acquisitions - Summ

Real Estate Acquisitions - Summary of Purchase Price Allocation and Related Assets Acquired and Liabilities Assumed (Details) - Riverview and Summer Vista - USD ($)		Sep. 30, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Land and land improvements		$ 1,763,286	$ 2,269,406
Buildings and building improvements		21,087,594	17,611,786
Furniture, fixtures and equipment		813,747	857,338
In-place resident agreement intangibles	[1]	1,282,871	1,286,507
Liabilities assumed		(115,779)	(170,918)
Total purchase price consideration		$ 24,831,719	$ 21,854,119
[1]	At the acquisition date, the weighted-average amortization period on the acquired in-place resident agreement intangibles was approximately 2.5 years and is based on the expected unit turnover.

Real Estate Acquisitions - Su_2

Real Estate Acquisitions - Summary of Purchase Price Allocation and Related Assets Acquired and Liabilities Assumed (Parenthetical) (Details)	9 Months Ended
	Sep. 30, 2018
Riverview and Summer Vista
Business Acquisition [Line Items]
Weighted average amortization period on acquired in-place resident agreement intangibles	2 years 6 months

Real Estate Assets, net - Sched

Real Estate Assets, net - Schedule of Real Estate Assets (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Real Estate [Abstract]
Land and land improvements	$ 4,446,358	$ 2,683,051
Building and building improvements	49,197,217	28,109,037
Furniture, fixtures and equipment	1,764,570	879,288
Less: accumulated depreciation	(1,466,628)	(585,437)
Real estate assets, net	$ 53,941,517	$ 31,085,939

Real Estate Assets, net - Addit

Real Estate Assets, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Real Estate Assets,Net [Member]
Real Estate Properties [Line Items]
Depreciation expense	$ 0.3	$ 0.2	$ 0.9	$ 0.4

Intangibles, net - Schedule of

Intangibles, net - Schedule of Gross Carrying Amount and Accumulated Amortization of Intangibles (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
In-place lease intangibles	$ 2,209,247	$ 2,209,125
In-place resident agreement intangibles	2,569,378	1,286,507
Below-market ground lease intangibles	1,543,910	1,543,824
Less: accumulated amortization	(1,015,163)	(385,952)
Intangible assets, net	5,307,372	4,653,504
Below-market lease intangibles	(340,409)	(340,390)
Less: accumulated amortization	22,915
Intangible liabilities, net	$ (317,494)	$ (340,390)

Intangibles, net - Additional I

Intangibles, net - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Finite Lived Intangible Assets And Liabilities [Line Items]
Amortization expense on intangible assets	$ 200,000		$ 600,000
Amortization of intangible liabilities		$ 0		$ 0
Property Operating Expenses
Finite Lived Intangible Assets And Liabilities [Line Items]
Amortization expense on intangible assets	10,000		30,000
Depreciation And Amortization
Finite Lived Intangible Assets And Liabilities [Line Items]
Amortization expense on intangible assets	200,000	$ 100,000	600,000	$ 300,000
Rental Income from Operating Leases
Finite Lived Intangible Assets And Liabilities [Line Items]
Amortization of intangible liabilities	$ 8,000		$ 23,000

Intangibles, net - Schedule o_2

Intangibles, net - Schedule of Estimated Future Amortization of Intangibles (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Finite Lived Intangible Assets And Liabilities [Line Items]
2,018	$ 323,774
2,019	1,166,441
2,020	751,100
2,021	313,680
2,022	228,155
Thereafter	2,524,222
Intangible assets, net	5,307,372	$ 4,653,504
2,018	7,638
2,019	30,553
2,020	27,103
2,021	25,953
2,022	25,953
Thereafter	200,294
Below-market lease intangibles	317,494	$ 340,390
2,018	7,638
2,019	30,553
2,020	27,103
2,021	25,953
2,022	25,953
Thereafter	200,294
Finite-lived intangible liabilities	317,494
In-Place Lease Intangibles
Finite Lived Intangible Assets And Liabilities [Line Items]
2,018	56,939
2,019	227,754
2,020	198,365
2,021	188,568
2,022	188,568
Thereafter	1,178,248
Intangible assets, net	2,038,442
In-Place Resident Agreement Intangibles
Finite Lived Intangible Assets And Liabilities [Line Items]
2,018	256,938
2,019	899,100
2,020	513,148
2,021	85,525
Intangible assets, net	1,754,711
Below-Market Ground Leases
Finite Lived Intangible Assets And Liabilities [Line Items]
2,018	9,897
2,019	39,587
2,020	39,587
2,021	39,587
2,022	39,587
Thereafter	1,345,974
Intangible assets, net	$ 1,514,219

Indebtedness - Additional Infor

Indebtedness - Additional Information (Details) - USD ($)		1 Months Ended
		Aug. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Secured mortgage loan amount	[1]		$ 24,500,000	$ 19,500,000
Level 3
Debt Instrument [Line Items]
Mortgage and notes payable, fair market value			$ 24,900,000
Riverview Florida
Debt Instrument [Line Items]
Secured mortgage loan amount		$ 5,000,000
Secured mortgage loan, maturity date		Aug. 31, 2023
Secured mortgage loan, payment of interest, term		24 months
Secured mortgage loan, amortization period		30 years
Riverview Florida | LIBOR
Debt Instrument [Line Items]
Secured mortgage loan, interest rate		2.25%
[1]	As of September 30, 2018, the Company’s mortgage loans are collateralized by its Summer Vista, Mid America Surgery, and Riverview properties.

Indebtedness - Schedule of Inde

Indebtedness - Schedule of Indebtedness (Details) - USD ($)		Sep. 30, 2018	Dec. 31, 2017
Mortgages and notes payable:
Mortgage loans	[1]	$ 24,500,000	$ 19,500,000
Notes payable		312,500	312,500
Mortgages and notes payable		24,812,500	19,812,500
Loan costs, net		(335,555)	(279,514)
Total mortgages and notes payable, net		$ 24,476,945	$ 19,532,986
[1]	As of September 30, 2018, the Company’s mortgage loans are collateralized by its Summer Vista, Mid America Surgery, and Riverview properties.

Indebtedness - Schedule of Futu

Indebtedness - Schedule of Future Principal Payments and Maturity (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
2,018	$ 32,036
2,019	199,072
2,020	5,829,156
2,021	295,611
2,022	13,304,382
Thereafter	5,152,243
Mortgages and notes payable	$ 24,812,500	$ 19,812,500

Related Party Arrangements - Ad

Related Party Arrangements - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Related Party Transaction [Line Items]
Distribution and stockholder servicing fees liability		$ 1,400,000		$ 1,400,000
Cash distributions paid				$ 597,676	$ 259,767
Stock dividends issued				14,000	14,000
Advisor
Related Party Transaction [Line Items]
Monthly asset management fee as percentage of real estate value				0.0667%
Investment service fee as percentage of purchase price of properties				2.25%
Operating expenses in excess of limitation				$ 400,000
Operating expenses in excess of limitation approved				900,000
Cash distributions paid		$ 38,000	$ 40,000	$ 114,000	$ 108,000
Stock dividends issued		1,000	800	2,000	3,000
Class A Common Stock
Related Party Transaction [Line Items]
Stock dividends issued				8,021	5,454
Class T Common Stock
Related Party Transaction [Line Items]
Distribution and stockholder servicing fee				1.00%
Stock dividends issued				24,541	8,549
Class I Common Stock
Related Party Transaction [Line Items]
Distribution and stockholder servicing fee				0.50%
Stock dividends issued				2,696	291
Maximum | Advisor
Related Party Transaction [Line Items]
Operating expenses reimbursement percentage of average invested assets				2.00%
Operating expenses reimbursement percentage of net income				25.00%
Maximum | Class A Common Stock
Related Party Transaction [Line Items]
Selling commission and dealer manager fee	8.50%
Maximum | Class T Common Stock
Related Party Transaction [Line Items]
Selling commission and dealer manager fee	4.75%
Selling commission	3.00%
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				8.50%

Related Party Arrangements - Su

Related Party Arrangements - Summary of Fees for Services Rendered Expected to be Settled in Restricted Stock (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Fees for services rendered:
Asset management fees	[1]	$ 87,488	$ 42,800	$ 229,088	$ 86,060
Stock dividends on restricted stock				14,000	14,000
Expense Support Agreement
Fees for services rendered:
Asset management fees		359,454		$ 359,454
Advisor personnel expenses	[2]	798,958		798,958
Total fees for services rendered		1,158,412		1,158,412
Asset management fees		87,488	42,800	229,088	$ 86,060
Advisor personnel expenses	[2]	112,784	95,805	362,555	320,204
Total fees for services rendered		$ 200,272	$ 138,605	$ 591,643	$ 406,264
Then-current offering price or NAV		$ 10.06		$ 10.06
Then-current offering price or NAV		$ 10.06	$ 10.93	$ 10.06	$ 10.93
Expense Support Agreement | Restricted Stock
Fees for services rendered:
Restricted stock shares	[3]	115,150		115,150
Cash distributions on restricted stock	[4]	$ 16,226		$ 16,226
Stock dividends on restricted stock	[5]	340		340
Restricted stock shares	[3]	19,908	12,681	58,811	37,170
Cash distributions on restricted stock	[4]	$ 8,113		$ 16,226
Stock dividends on restricted stock	[5]	170		340
[1]	For the quarter and nine months ended September 30, 2018, the Company incurred approximately $0.1 million and $0.2 million, respectively, in asset management fees, all of which are expected to be settled in accordance with the terms of the Expense Support Agreement. For the quarter and nine months ended September 30, 2017, the Company incurred approximately $43,000 and $86,000 in asset management fees, respectively, all of which were settled in accordance with the terms of the Expense Support Agreement.
[2]	Amounts consist of personnel and related overhead costs of the Advisor or its affiliates (which, in general, are those expenses relating to the Company’s administration on an on-going basis) that are reimbursable by the Company.
[3]	Represents restricted stock shares issued or expected to be issued to the Advisor as of September 30, 2018 pursuant to the Expense Support Agreement. No fair value was assigned to the restricted stock shares as the shares are expected to be valued at zero upon issuance, which represents the lowest possible value estimated at vesting. In addition, the restricted stock shares will be treated as unissued for financial reporting purposes until the vesting criteria are met.
[4]	The cash distributions have been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations.
[5]	The par value of the stock dividends has been recognized as compensation expense as issued and included in general and administrative expense in the accompanying condensed consolidated statements of operations.

Related Party Arrangements - _2

Related Party Arrangements - Summary of Fees for Services Rendered Expected to be Settled in Restricted Stock (Parenthetical) (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Related Party Transactions [Abstract]
Restricted stock fair value	$ 0

Related Party Arrangements - Fe

Related Party Arrangements - Fees and Expenses Incurred and Reimbursable to Affiliates and Related Parties (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Distribution and stockholder servicing fees				$ 1,395,460	$ 549,449
Acquisition fees and expenses				818
Total reimbursable expenses		$ 236,073	$ 227,231	764,371	680,529
Investment Service Fees	[1]	545,625		545,625	481,500
Asset Management Fees	[2]	87,488	42,800	229,088	86,060
Total reimbursable expenses, net		869,186	270,031	1,539,084	1,248,089
Operating expenses, Unpaid amount	[3]	68,844		68,844		$ 197,235
Total reimbursable expenses due	[3]	68,844		68,844		197,235
Related parties, Unpaid amount	[3]	68,844		68,844		197,235
Reimbursable Expense
Related Party Transaction [Line Items]
Operating expenses	[4]	227,393	221,415	754,188	652,824
Acquisition fees and expenses		8,680	5,816	10,183	27,705
Dealer Manager
Related Party Transaction [Line Items]
Selling commissions	[5]	121,413	138,544	343,087	481,913
Dealer manager fees	[5]	153,073	161,461	429,356	422,112
Distribution and stockholder servicing fees	[5]	307,630	239,677	822,477	462,356
Total offering expenses		582,116	$ 539,682	1,594,920	$ 1,366,381
Selling commissions, Unpaid amount	[3]	16,522		16,522		10,000
Dealer Manager fees, Unpaid amount	[3]	25,129		25,129		18,150
Distribution and stockholder servicing fees, Unpaid amount	[3]	1,395,460		1,395,460		798,524
Total offering expenses unpaid	[3]	$ 1,437,111		$ 1,437,111		$ 826,674
[1]	For the quarter and nine months ended September 30, 2018 the Company incurred approximately $0.5 million in investment services fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. For the nine months ended September 30, 2017, the Company incurred approximately $0.5 million in investment service fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. No such fees were incurred for the quarter ended September 30, 2017.
[2]	For the quarter and nine months ended September 30, 2018, the Company incurred approximately $0.1 million and $0.2 million, respectively, in asset management fees, all of which are expected to be settled in accordance with the terms of the Expense Support Agreement. For the quarter and nine months ended September 30, 2017, the Company incurred approximately $43,000 and $86,000 in asset management fees, respectively, all of which were settled in accordance with the terms of the Expense Support Agreement.
[3]	Amounts are recorded as due to related parties in the accompanying condensed consolidated balance sheets.
[4]	Amounts are recorded as general and administrative expenses in the accompanying condensed consolidated statements of operations unless such amounts represent prepaid expenses, which are capitalized in the accompanying condensed consolidated balance sheets. For the quarter and nine months ended September 30, 2018, approximately $0.1 million and $0.4 million, respectively, of personnel expenses of affiliates of the Advisor are expected to be settled in accordance with the terms of the Expense Support Agreement and as such our general administrative expenses were reduced by approximately $0.1 million and $0.4 million, respectively. For the quarter and nine months ended September 30, 2017, approximately $0.1 million and $0.3 million, respectively, of personnel expenses of affiliates of the Advisor were settled in accordance with the terms of the Expense Support Agreement.
[5]	Amounts are recorded as stock issuance and offering costs in the accompanying condensed consolidated statements of stockholders’ equity.

Related Party Arrangements - _3

Related Party Arrangements - Fees and Expenses Incurred and Reimbursable to Affiliates and Related Parties (Parenthetical) (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Investment services fees	[1]	$ 545,625		$ 545,625	$ 481,500
Investment service fees capitalized		53,941,517		53,941,517		$ 31,085,939
Investment Services Fees
Related Party Transaction [Line Items]
Investment services fees		500,000	$ 0	500,000	500,000
Investment service fees capitalized		500,000	500,000	500,000	500,000
Expense Support Agreement
Related Party Transaction [Line Items]
Advisor personnel expenses		100,000	100,000	400,000	300,000
Reduction in general and administrative expenses		100,000		400,000
Asset management fees		$ 100,000	$ 43,000	$ 200,000	$ 86,000
[1]	For the quarter and nine months ended September 30, 2018 the Company incurred approximately $0.5 million in investment services fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. For the nine months ended September 30, 2017, the Company incurred approximately $0.5 million in investment service fees, all of which were capitalized and included in real estate investment properties, net in the accompanying condensed consolidated balance sheets. No such fees were incurred for the quarter ended September 30, 2017.

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Dec. 01, 2018	Nov. 01, 2018	Oct. 01, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2016	Jun. 30, 2018	Mar. 31, 2018
Class Of Stock [Line Items]
Aggregate proceeds from public offering							$ 51,200,000	$ 23,300,000
Common stock, shares sold							4,900,000	2,200,000
Subscription proceeds pursuant to the Reinvestment Plan							$ 1,200,000	$ 221,000
Subscription proceeds pursuant to the Reinvestment Plan, shares							100,000	22,100
Cash distributions declared net of class-specific expenses							$ 1,400,000	$ 500,000
Cash distributions paid net of class-specific expenses							$ 1,400,000	$ 500,000
Stock dividends declared							35,000	35,000
Stock dividends issued (in shares)							14,000	14,000
Percentage of cash distributions considered as return on capital for income tax purposes							100.00%	100.00%
Amount of distributions to stockholders considered as return of capital by the company							$ 0	$ 0
Monthly cash distributions less class-specific expenses per share				$ 0.0480	$ 0.0480		$ 0.0480
Distributions to be paid and distributed date				Dec. 31, 2018
Dividends payable, date declared				2018-09	2018-09		2018-09
Redemption of common stock, per share				$ 10.05	$ 10.05		$ 10.05			$ 10.05	$ 10.05
Redemptions of common stock							$ 185,460
Class A Common Stock
Class Of Stock [Line Items]
Common stock, shares sold							93,663	378,053
Stock dividends issued (in shares)							8,021	5,454
Redemptions of common stock							$ 127,000	$ 0
Class T Common Stock
Class Of Stock [Line Items]
Redemptions of common stock							$ 59,000	$ 0
Subsequent Event
Class Of Stock [Line Items]
Cash distribution and stock dividend declared date		Nov. 1, 2018	Oct. 1, 2018
Scenario Forecast
Class Of Stock [Line Items]
Cash distribution and stock dividend declared date	Dec. 1, 2018
Private Placement
Class Of Stock [Line Items]
Aggregate proceeds from public offering									$ 251,250
Common stock, shares sold									25,125
Advisor
Class Of Stock [Line Items]
Stock dividends issued (in shares)					1,000	800	2,000	3,000
Advisor | Prior to Commencement of Offering
Class Of Stock [Line Items]
Aggregate proceeds from public offering							$ 200,000	$ 200,000
Common stock, shares sold							20,000	20,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (10,000)	$ 12,000	$ 35,000	$ 42,000
Current income tax expense			32,000	73,000
Decrease to net deferred tax assets			$ (3,000)
Total deferred tax benefit				$ 31,000

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - USD ($)	Oct. 31, 2018	Oct. 31, 2018	Sep. 30, 2018
Subsequent Event [Line Items]
Redemption of notes, value			$ 185,460
Distribution and stockholder servicing fees liability			1,400,000
Class A Common Stock
Subsequent Event [Line Items]
Redemption of notes, value			$ 126
Redemption of notes, shares			12,614
Dealer Manager | Class A Common Stock
Subsequent Event [Line Items]
Distribution and stockholder servicing fees liability			$ 1,400,000
Subsequent Event | Class A Common Stock
Subsequent Event [Line Items]
Number of shares issued upon conversion of shares	1
Stock conversion basis	The Class T and Class I shares converted into Class A shares on a one-for-one basis
Estimated NAV per share	$ 10.06	$ 10.06
Subsequent Event | Private Placement
Subsequent Event [Line Items]
Redemption of notes, value		$ 300,000
Redemption of notes, shares		26,000
Promissory Notes | Subsequent Event | Private Placement
Subsequent Event [Line Items]
Repayment of debt		$ 300,000