Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 18, 2019 | Jun. 27, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | Resource Apartment REIT III, Inc. | ||
Entity Central Index Key | 0001652926 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Public Float | $ 54,652,172 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 636,367 | ||
Class T Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,116,749 | ||
Class R Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 8,410,341 | ||
Class I Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 417,556 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Rental properties, net | $ 136,061,586 | $ 29,443,089 |
Identified intangible assets, net | 707,825 | 321,468 |
Total investments | 136,769,411 | 29,764,557 |
Cash | 32,827,390 | 23,752,810 |
Restricted cash | 883,902 | 192,064 |
Tenant receivables, net | 51,524 | 2,138 |
Due from related parties | 13,772 | 4,571 |
Subscriptions receivable | 1,431,000 | 413,084 |
Prepaid expenses and other assets | 1,097,179 | 188,332 |
Deferred offering costs | 5,046,364 | 5,409,942 |
Total assets | 178,120,542 | 59,727,498 |
Liabilities: | ||
Mortgage notes payable, net | 100,044,640 | 22,778,370 |
Accounts payable and accrued expenses | 1,167,901 | 257,060 |
Due to related parties | 12,993,287 | 9,021,884 |
Tenant prepayments | 116,102 | 21,078 |
Security deposits | 271,246 | 62,724 |
Distributions payable | 1,037,799 | 453,877 |
Total liabilities | 115,630,975 | 32,594,993 |
Stockholders’ equity: | ||
Preferred stock | 0 | |
Additional paid-in capital | 77,896,470 | 32,323,424 |
Accumulated other comprehensive loss | (40,633) | (11,192) |
Accumulated deficit | (15,459,340) | (5,218,198) |
Total stockholders’ equity | 62,489,567 | 27,132,505 |
Total liabilities and stockholders’ equity | 178,120,542 | 59,727,498 |
Convertible Stock | ||
Stockholders’ equity: | ||
Preferred stock | 500 | 500 |
Class A Common Stock | ||
Stockholders’ equity: | ||
Common stock | 6,345 | 6,218 |
Class T Common Stock | ||
Stockholders’ equity: | ||
Common stock | 11,114 | 10,812 |
Class R Common Stock | ||
Stockholders’ equity: | ||
Common stock | 71,815 | 20,580 |
Class I Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 3,296 | $ 361 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 28, 2017 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 125,000,000 | |
Convertible Stock | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | |
Preferred stock, shares issued (in shares) | 50,000 | 50,000 | |
Preferred stock, shares outstanding (in shares) | 50,000 | 50,000 | |
Class A Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |
Common stock, shares issued (in shares) | 634,493 | 621,754 | |
Common stock, shares outstanding (in shares) | 634,493 | 621,754 | |
Class T Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | |
Common stock, shares issued (in shares) | 1,111,394 | 1,081,226 | |
Common stock, shares outstanding (in shares) | 1,111,394 | 1,081,226 | |
Class R Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 | |
Common stock, shares issued (in shares) | 7,181,534 | 2,058,008 | |
Common stock, shares outstanding (in shares) | 7,181,534 | 2,058,008 | |
Class I Common Stock | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 | |
Common stock, shares issued (in shares) | 329,604 | 36,118 | |
Common stock, shares outstanding (in shares) | 329,604 | 36,118 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||
Rental income | $ 7,698,144 | $ 1,372,503 |
Total revenues | 8,175,856 | 1,443,863 |
Expenses: | ||
Rental operating - expenses | 1,668,426 | 400,432 |
Rental operating - payroll | 852,546 | 165,558 |
Rental operating - real estate taxes | 1,011,719 | 182,166 |
Subtotal - rental operating | 3,532,691 | 748,156 |
Acquisition costs | 906,644 | |
Property management fees | 9,488 | 9,505 |
Management fees - related parties | 1,290,367 | 215,433 |
General and administrative | 2,322,183 | 1,258,682 |
Loss on disposal of assets | 108,844 | 186,078 |
Depreciation and amortization expense | 5,239,781 | 908,624 |
Total expenses | 12,503,354 | 4,233,122 |
Loss before other income (expense) | (4,327,498) | (2,789,259) |
Other income (expense): | ||
Other income | 1,500 | |
Interest income | 159,631 | 16,639 |
Interest expense | (2,683,916) | (360,725) |
Net loss | (6,851,783) | (3,131,845) |
Other comprehensive loss: | ||
Designated derivatives, fair value adjustments | (29,441) | (11,192) |
Total other comprehensive loss | (29,441) | (11,192) |
Comprehensive loss | (6,881,224) | (3,143,037) |
Class A Common Stock | ||
Other comprehensive loss: | ||
Net loss attributable to common stockholders | $ (678,901) | $ (1,003,994) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.08) | $ (1.79) |
Weighted-average shares outstanding, basic and diluted (in shares) | 627,773 | 560,110 |
Class T Common Stock | ||
Other comprehensive loss: | ||
Net loss attributable to common stockholders | $ (1,288,009) | $ (1,423,508) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.18) | $ (1.82) |
Weighted-average shares outstanding, basic and diluted (in shares) | 1,094,666 | 782,047 |
Class R Common Stock | ||
Other comprehensive loss: | ||
Net loss attributable to common stockholders | $ (4,764,965) | $ (677,323) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.06) | $ (1.42) |
Weighted-average shares outstanding, basic and diluted (in shares) | 4,479,230 | 478,037 |
Class I Common Stock | ||
Other comprehensive loss: | ||
Net loss attributable to common stockholders | $ (119,908) | $ (27,020) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.80) | $ (1.58) |
Weighted-average shares outstanding, basic and diluted (in shares) | 148,975 | 17,079 |
Utility | ||
Revenues: | ||
Income | $ 367,736 | $ 62,386 |
Ancillary tenant fees | ||
Revenues: | ||
Income | $ 109,976 | $ 8,974 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Total | Class A Common Stock | Class T Common Stock | Class R Common Stock | Class I Common Stock | Common StockClass A Common Stock | Common StockClass T Common Stock | Common StockClass R Common Stock | Common StockClass I Common Stock | Preferred StockConvertible Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2016 | $ 3,544,493 | $ 3,842 | $ 1,140 | $ 500 | $ 4,380,126 | $ (841,115) | |||||||
Beginning balance (in shares) at Dec. 31, 2016 | 384,195 | 114,037 | 50,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock | 30,871,700 | $ 2,192 | $ 9,366 | $ 20,497 | $ 360 | 30,839,285 | |||||||
Issuance of common stock (in shares) | 219,259 | 936,581 | 2,049,713 | 35,985 | |||||||||
Offering costs | (3,436,423) | (3,436,423) | |||||||||||
Cash distributions declared | (993,671) | $ (253,708) | $ (332,545) | $ (396,088) | $ (11,330) | (993,671) | |||||||
Stock dividends | $ 110 | $ 150 | 251,307 | (251,567) | |||||||||
Stock dividends (in shares) | 10,956 | 14,993 | |||||||||||
Common stock issued through distribution reinvestment plan | 289,443 | $ 74 | $ 156 | $ 83 | $ 1 | 289,129 | |||||||
Common stock issued through distribution reinvestment plan (in shares) | 7,344 | 15,615 | 8,295 | 133 | |||||||||
Other comprehensive loss | (11,192) | $ (11,192) | |||||||||||
Net loss | (3,131,845) | (3,131,845) | |||||||||||
Ending balance at Dec. 31, 2017 | 27,132,505 | $ 6,218 | $ 10,812 | $ 20,580 | $ 361 | $ 500 | 32,323,424 | (11,192) | (5,218,198) | ||||
Ending balance (in shares) at Dec. 31, 2017 | 621,754 | 1,081,226 | 2,058,008 | 36,118 | 621,754 | 1,081,226 | 2,058,008 | 36,118 | 50,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock | 50,738,036 | $ 50,024 | $ 2,930 | 50,685,082 | |||||||||
Issuance of common stock (in shares) | 5,002,503 | 292,973 | |||||||||||
Offering costs | (6,608,586) | (6,608,586) | |||||||||||
Cash distributions declared | (3,389,359) | $ (333,455) | $ (477,264) | $ (2,458,309) | $ (120,331) | (3,389,359) | |||||||
Common stock issued through distribution reinvestment plan | 1,528,416 | $ 118,858 | $ 297,269 | $ 1,107,690 | $ 4,599 | $ 127 | $ 328 | $ 1,220 | $ 5 | 1,526,736 | |||
Common stock issued through distribution reinvestment plan (in shares) | 12,739 | 32,775 | 121,968 | 513 | |||||||||
Other comprehensive loss | (29,441) | (29,441) | |||||||||||
Net loss | (6,851,783) | (6,851,783) | |||||||||||
Share redemptions | (30,221) | $ (26) | $ (9) | (30,186) | |||||||||
Share redemptions (in shares) | 0 | (2,607) | (945) | 0 | (2,607) | (945) | |||||||
Ending balance at Dec. 31, 2018 | $ 62,489,567 | $ 6,345 | $ 11,114 | $ 71,815 | $ 3,296 | $ 500 | $ 77,896,470 | $ (40,633) | $ (15,459,340) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 634,493 | 1,111,394 | 7,181,534 | 329,604 | 634,493 | 1,111,394 | 7,181,534 | 329,604 | 50,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (6,851,783) | $ (3,131,845) |
Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | ||
Loss on disposal of assets | 108,844 | 186,078 |
Depreciation and amortization expense | 5,239,781 | 908,624 |
Amortization of deferred financing costs | 126,856 | 22,314 |
Realized loss on change in fair value of interest rate cap | 174 | 0 |
Changes in operating assets and liabilities: | ||
Tenant receivable, net | (49,386) | (1,350) |
Due from related parties | (9,201) | 4,953 |
Prepaid expenses and other assets | (59,923) | (13,016) |
Due to related parties | 764,400 | 1,127,499 |
Accounts payable and accrued expenses | 479,127 | (93,819) |
Tenant prepayments | 80,781 | 18,346 |
Security deposits | 93,079 | 5,880 |
Net cash used in operating activities | (77,251) | (966,336) |
Cash flows from investing activities: | ||
Property acquisitions | (31,484,946) | (6,636,959) |
Deposit for property acquisition | (724,208) | |
Capital expenditures | (2,177,567) | (66,234) |
Net cash used in investing activities | (34,386,721) | (6,703,193) |
Cash flows from financing activities: | ||
Net proceeds from issuance of common stock | 46,633,218 | 28,885,437 |
Redemptions on common stock | (30,221) | |
Payments on borrowings | (34,271) | (30,493) |
Payment of deferred financing costs | (1,061,315) | (324,285) |
Distributions paid on common stock | (1,277,021) | (275,525) |
Net cash provided by financing activities | 44,230,390 | 28,255,134 |
Net increase in cash and restricted cash | 9,766,418 | 20,585,605 |
Cash and restricted cash at beginning of year | 23,944,874 | 3,359,269 |
Cash and restricted cash at end of year | $ 33,711,292 | $ 23,944,874 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parentheticals) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reconciliation to consolidated balance sheets: | |||
Cash | $ 32,827,390 | $ 23,752,810 | |
Restricted Cash | 883,902 | 192,064 | |
Subtotal- cash and restricted cash | $ 33,711,292 | $ 23,944,874 | $ 3,359,269 |
Nature of Business and Operatio
Nature of Business and Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Operations | NOTE 1 - NATURE OF BUSINESS AND OPERATIONS Resource Apartment REIT III, Inc. (the "Company") was organized in Maryland on July 15, 2015. The Company is offering up to $1.1 billion of shares of its common stock, consisting of up to $1.0 billion of shares in its primary offering and up to $100.0 million of shares pursuant to its distribution reinvestment plan (the "DRIP"). The Company’s primary offering is currently scheduled to close on April 27, 2019. However, the Company expects to file a registration statement for a follow-on offering and to offer shares of common stock in the primary initial public offering until such registration statement relating to its proposed follow-on offering is declared effective by the Securities and Exchange Commission. If the Company decides to terminate the primary offering at an earlier date, it will provide that information in a prospectus supplement. Through July 2, 2017, the Company offered shares of Class A and Class T common stock. As of July 3, 2017, the Company ceased offering shares of Class A and Class T common stock in its primary offering and commenced offering shares of Class R and Class I common stock. The initial prices per share for each class of shares of the Company's common stock through June 30, 2018 were as follows: Class A Class T Class R Class I Primary Offering Price $ 10.00 $ 9.47 $ 9.52 $ 9.13 Offering Price under the DRIP $ 9.60 $ 9.09 $ 9.14 $ 8.90 On June 27, 2018, the board of directors of the Company determined a net asset value (“NAV”) per share of its common stock of $9.05 based on the estimated market value of the portfolio of investments of the Company as of March 31, 2018. A full description of the methodologies used to calculate the estimated NAV per share as of March 31, 2018, is included in the Current Report on Form 8-K filed with the SEC on June 29, 2018. Based on this estimated NAV per share, the board of directors of the Company established updated offering prices for shares of Class R and Class I common stock to be sold in the primary portion of the initial public offering Class A Class T Class R Class I Primary Offering Price n/a n/a $ 9.68 $ 9.28 Offering Price under the DRIP (1) $ 9.05 $ 9.05 $ 9.05 $ 9.05 (1) Shares of common stock pursuant to our DRIP are sold at the Company’s most estimated NAV per share. As of December 31, 2018, the Company has raised aggregate gross primary offering proceeds of approximately $86.3 million from the sale of 601,207 Class A shares, 1,049,996 Class T shares, 7,052,216 Class R shares, and 328,958 Class I shares of common stock. Resource REIT Advisor, LLC (the "Advisor"), an indirect wholly-owned subsidiary of Resource America, Inc. ("RAI"), contributed $200,000 to the Company in exchange for 20,000 shares of Class A common stock on August 10, 2015. On June 29, 2016, RAI purchased 222,222 shares of Class A common stock for $2.0 million in the offering. On August 5, 2016, the Advisor exchanged 5,000 shares of common stock for 50,000 shares of convertible stock. Under limited circumstances, these shares may be converted into shares of the Company's Class A common stock satisfying its obligation to pay the Advisor an incentive fee and diluting its other stockholders’ interest in the Company. RAI is a wholly-owned subsidiary of C-III Capital Partners, LLC ("C-III"), a leading commercial real estate investment management and services company engaged in a broad range of activities. C-III controls the Advisor, Resource Securities LLC ("Resource Securities"), the Company's dealer manager, and Resource Apartment Manager III, LLC (the "Manager"), the Company's property manager. C-III also controls all of the shares of the Company's common stock held by RAI and the Advisor. The Company’s objective is to take advantage of the multifamily investing and lending platforms of Resource Real Estate, LLC (its "Sponsor") to invest in apartment communities in order to provide the investor with growing cash flow and increasing asset values. The Company intends to acquire underperforming apartments which it will renovate and stabilize in order to increase rents. To a lesser extent, the Company may also seek to originate and acquire commercial real estate debt secured by apartments having the same characteristics. The Company elected to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes under the provisions of the Internal Revenue Code of 1986, as amended, commencing with its taxable year ending December 31, 2017. As such, to maintain its REIT qualification for U.S. federal income tax purposes, the Company is generally required to distribute at least 90% of its net income (excluding net capital gains) to its stockholders as well as comply with certain other requirements. Accordingly, the Company generally will not be subject to U.S. federal income taxes to the extent that it annually distributes all of its REIT taxable income to its stockholders. The Company also operates its business in a manner that will permit it to maintain its exemption from registration under the Investment Company Act of 1940, as amended. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States of America ("GAAP"). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: Subsidiaries Number of Units Property Location Resource Apartment REIT III Holdings, LLC N/A N/A Resource Apartment REIT III OP, LP N/A N/A RRE Payne Place Holdings, LLC 11 Alexandria, VA RRE Bay Club Holdings, LLC 220 Jacksonville, FL RRE Tramore Village Holdings, LLC 324 Austell, GA RRE Matthews Reserve Holdings, LLC 212 Matthews, NC RRE Kensington Holdings, LLC 204 Riverview, FL 971 N/A – Not applicable All intercompany accounts and transactions have been eliminated in consolidation. Segment Reporting The Company does not evaluate performance on a relationship-specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. Concentration of Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist of periodic temporary deposits of cash. At December 31, 2018, the Company had approximately $33.0 million $31.6 million At December 31, 2018, the Company’s real estate investments in Florida, Georgia, and North Carolina represented approximately 41% , 33%, and 25%, respectively, Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers”, which will replace most existing revenue recognition guidance in GAAP. Under the new standard, revenue is recognized by an entity in a manner that depicts 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. ASU No. 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. On January 1, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The majority of the Company’s revenue is derived from residential rental income and other lease income, which are scoped out from this standard and included in the current lease accounting framework, and will be accounted for under ASU No. 2016-02, "Leases", as discussed below. Revenue streams that are in the scope of the new standards include (but are not limited to) administrative and late fees and revenue sharing arrangements of cable income from contracts with cable providers at the Company's properties. The accounting for these revenue streams were not affected by the adoption of ASU No. 2014-09, nor was there a cumulative effect of initially applying the standard. In August 2016, FASB issued ASU No. 2016-15 "Classification of Certain Cash Receipts and Cash Payments", which addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. On January 1, 2018, the Company adopted ASU No. 2016-15 and the adoption did not have a material effect on its consolidated financial statements and disclosures. In November 2016, FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which provides guidance on the classification of restricted cash in the statement of cash flows. On January 1, 2018, the Company adopted ASU No. 2016-18. As a result of adopting the new guidance, $214,775 $399,106 In January 2017, FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of Business," which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. On January 1, 2018, the Company adopted ASU No. 2017-01. During the year ended December 31, 2018, the Company acquired three investment properties which did not meet the revised definition of a business and, accordingly, accounted for the acquisitions as asset acquisitions. For investment property additions accounted for as business combinations, acquisition fees and acquisition costs were included in acquisition costs on the consolidated statements of operations and comprehensive loss. For investment property additions accounted for as asset acquisitions, all such costs are included in the purchase price that is allocated between land, building and improvements, furniture, fixtures, and equipment and intangible assets on the consolidated balance sheets, based on their respective fair values. Accounting Standards Issued But Not Yet Effective In February 2016, FASB issued ASU No. 2016-02, "Leases" and amended by ASU No. 2018-09, “Codification Improvements" in July 2018, which is intended to improve financial reporting about leasing transactions and requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. In September 2017, FASB issued ASU No. 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)", which provides additional implementation guidance on the previously issued ASU No. 2016-02. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is continuing to evaluate this guidance; however, the Company expects that its operating leases where it is the lessor will be accounted for on its balance sheet similar to its current accounting with the underlying leased asset (multifamily properties) recognized as real estate. For leases in which the Company is the lessee, primarily consisting of office equipment leases, the Company expects to recognize a right-of-use asset and a lease liability equal to the present value of the minimum lease payments with rental payments being applied to the lease liability and to interest expense and the right-of-use asset being amortized to expense on a straight-line basis over the term of the lease. The Company intends to adopt this standard when it becomes effective and it estimates the impact on its consolidated financial statements will be immaterial. In July 2018, FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” an additional amendment to ASU No. 2016-02. Although the Company is still evaluating this guidance, the Company believes it will apply the practical expedient allowed in this new guidance to combine lease and associated nonlease components by class of underlying asset. In addition, the Company is expected to utilize the optional method for adopting the new leasing guidance and not restate comparative periods. The Company intends to adopt this standard when it becomes effective and it estimates the impact on its consolidated financial statements will be immaterial. In June 2016, FASB issued ASU No. 2016-03 "Financial Instruments - Credit Losses", which requires measurement and recognition of expected credit losses for financial assets held. The standard update is effective for the Company beginning January 1, 2019. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-03 to have a significant impact on its consolidated financial statements due to the fact that the Company did not have instruments subject to this guidance at December 31, 2018. In January 2017, FASB issued ASU No. 2017-04, "Intangibles- Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment", which alters the current goodwill impairment testing procedures. ASU No. 2017-04 will be effective for the Company beginning December 15, 2019. Early application is permitted. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2017-04 to have a significant impact on its consolidated financial statements due to the fact that the Company did not have any goodwill subject to this guidance at December 31, 2018. In August 2017, FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The update to the standard is effective for the Company on January 1, 2019, with early adoption permitted in any interim period. The Company is continuing to evaluate this guidance; however it does not expect the adoption of ASU 2017-12 to have a significant impact on its consolidated financial statements. In June 2018, FASB issued ASU 2018-07 “Improvements to Nonemployee Share-Based Payment Accounting” to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. ASU 2018-07 will be effective for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted. The Company is continuing to evaluate this guidance; however it does not expect the adoption of ASU 2018-07 to have a significant impact on its consolidated financial statements. In July 2018, FASB issued ASU No. 2018-09, "Codification Improvements". This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is continuing to evaluate this guidance and assessing the impact of this guidance on its consolidated financial statements. In August 2018, FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update removes, modifies and adds certain disclosure requirements in the FASB Accounting Standards Codification ("ASC") 820, “Fair Value Measurement”. ASU No. 2018-13 will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2018-13 to have a significant impact on its consolidated financial statements. In October 2018, FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU No. 2018-16 permits the use of the Overnight Index Swap (“OIS”) Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (“LIBOR”) and the OIS Rate based on the Federal Funds Effective Rate. For entities that have not already adopted ASU No. 2017-12, the amendments in ASU No. 2018-16 are required to be adopted concurrently with the amendments in ASU No. 2017-12. The Company intends to adopt ASU No. 2018-16 when ASU No. 2017-12 becomes effective on January 1, 2019. The Company is continuing to evaluate this guidance; however, the Company does not expect the adoption of ASU No. 2018-16 to have a significant impact on its consolidated financial statements. Real Estate Investments The Company records acquired real estate at fair value on their respective acquisition dates. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates the asset using the straight line method. The Company anticipates the estimated useful lives of its assets by class as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture, fixtures, and equipment 3.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related leases Improvements and replacements in excess of $1,000 are capitalized when they have a useful life greater than or equal to one year. The Manager earns a construction management fee of 5% of actual aggregate costs to construct improvements, or to repair, rehab or reconstruct a property. These costs are capitalized along with the related asset. Costs of repairs and maintenance are expensed as incurred. Impairment of Long Lived Assets When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. The review also considers factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. There were no impairment losses recorded on long lived assets during the years ended December 31, 2018 and 2017. Loans Held for Investment The Company records acquired real estate loans at cost and reviews them for potential impairment at each balance sheet date. A loan receivable is considered impaired when it becomes probable, based on current information, that the Company will be unable to collect all amounts due according to the loan’s contractual terms. The amount of impairment, if any, is measured by comparing the recorded amount of the loan to the present value of the expected cash flows or the fair value of the collateral. If a loan is deemed to be impaired, the Company will record a reserve for loan losses through a charge to income for any shortfall. Failure to recognize impairment would result in the overstatement of the carrying values of the Company’s real estate loans receivable and an overstatement of the Company’s net income. The Company may acquire real estate loans at a discount due to credit quality. Revenues from these loans are recorded under the effective interest method. Under this method an effective interest rate ("EIR") is applied to the cost basis of the real estate loan receivable. The EIR that is calculated when the real estate loan is acquired remains constant and is the basis for subsequent impairment testing and income recognition. If the amount and timing of future cash collections are not reasonably estimable, the Company accounts for the real estate loan receivable on the cost recovery method. Under the cost recovery method of accounting, no income is recognized until the basis of the real estate loan receivable has been fully recovered. Interest income from loans receivable will be recognized based on the contractual terms of the debt instrument. Fees related to any buydown of the interest rate will be deferred as prepaid interest income and amortized over the term of the loan as an adjustment to interest income. Closing costs related to the purchase of a loan receivable will be amortized over the term of the loan and accreted as an adjustment against interest income. There were no loans held for investment on the Company's consolidated balance sheets as of both December 31, 2018 and 2017. Allocation of Purchase Price of Acquired Assets On January 1, 2018, the Company adopted ASU 2017-01. Acquisitions that do not meet the definition of a business under this guidance are accounted for as asset acquisitions. In most cases, the Company believes acquisitions of real estate will no longer be considered a business combination as in most cases substantially all of the fair value is concentrated in a single identifiable asset or group of tangible assets that are physically attached to each other (land and building). However, if the Company determines that substantially all of the fair value of the gross assets acquired is not concentrated in either a single identifiable asset or in a group of similar identifiable assets, the Company will then perform an assessment to determine whether the set is a business by using the framework outlined in the ASU. If the Company determines that the acquired asset is not a business, the Company will allocate the cost of the acquisition including transaction costs to the assets acquired or liabilities assumed based on their related fair value. Upon the acquisition of real properties, the Company allocates the purchase price to tangible assets, consisting of land, building, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, other value of in-place leases and value of tenant relationships, based in each case on their fair values. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases, which the Company expects will range from one month to one year. The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if vacant. Management’s estimates of value are determined by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered in the analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. Management also estimates costs to execute similar leases including leasing commissions and legal and other related expenses to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. The total amount of other intangible assets acquired is further allocated to in-place lease values and customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. The Company amortizes the value of in-place leases to expense over the initial term of the respective leases. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event will the amortization periods for the intangible assets exceed the remaining depreciable life of the building. The determination of the fair value of the assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the fair value of these assets and liabilities, which could impact the amount of the Company’s reported net income. Revenue Recognition The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease. The future minimum rental payments to be received from noncancelable operating leases for residential rental properties are approximately $6.4 million $94,204 none Revenue is primarily derived from the rental of residential housing units for which the Company receives minimum rents and utility reimbursements pursuant to underlying tenant lease agreements. The Company also receives other ancillary fees for administration of leases, late payments, amenities and revenue sharing arrangements of cable income from contracts with cable providers at the Company's properties. As discussed earlier, the Company adopted ASU No. 2014-09 beginning January 1, 2018. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The Company records the utility reimbursement income and ancillary charges in the period when the performance obligation is completed, either at a point in time or on a monthly basis as the service is utilized. Tenant Receivables Tenant receivables are stated in the consolidated financial statements as amounts due from tenants net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, the condition of the general economy and the industry as a whole. The Company writes off receivables when they become uncollectible. At December 31, 2018 and 2017, the Company recorded $ 5,593 370 Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ending December 31, 2017. As a REIT, the Company will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to its stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. The dividends paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Taxable income, generally, differs from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company may elect to treat certain of its subsidiaries as a taxable REIT subsidiary ("TRS"). In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. At December 31, 2018 and 2017, the Company did not treat any of its subsidiaries as a TRS. While a TRS may generate net income, a TRS can declare dividends to the Company which will be included in the Company’s taxable income and necessitate a distribution to its stockholders. Conversely, if the Company retains earnings at a TRS level, no distribution is required and the Company can increase book equity of the consolidated entity. Legislation commonly known as the Tax Cuts and Jobs Act ("TCJA") was signed into law on December 22, 2017. The TCJA makes significant changes to the U.S. federal income tax rules for taxation of individuals and corporations (including REITs), generally effective for taxable years beginning after December 31, 2017. The Company does not expect this legislation to have a significant impact on its consolidated financial statements. Earnings Per Share Basic earnings per share are computed by dividing net income (loss) attributable to common stockholders for each period by the weighted-average common shares outstanding during the period for each share class. Diluted net income (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. None of the 50,000 shares of convertible stock (discussed in Note 10) are included in the diluted earnings per share calculations because the necessary conditions for conversion have not been satisfied as of December 31, 2018 (were such date to represent the end of the contingency period). For the purposes of calculating earnings per share, all common shares and per share information in the financial statements have been retroactively adjusted for the effect of any stock dividends and stock splits. For the years ended December 31, 2018 and 2017, common shares potentially issuable to settle distributions payable are excluded from the calculation of diluted earnings per share calculations, as their inclusion would be anti-dilutive. In accordance with ASC 260-10-45, "Earnings Per Share", the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on their relative percentage of each class of shares to the total number of outstanding shares. The Company did not have any participating securities outstanding other than Class A common stock, Class T common stock, Class R common stock, and Class I common stock during the periods presented (see Note 10). Organization and Offering Costs Organization and offering costs (other than selling commissions, dealer manager fees, and distribution and shareholder servicing fees) of the Company are initially being paid by the Advisor on behalf of the Company. Pursuant to the Advisory Agreement between the Company and the Advisor, the Company is obligated to reimburse the Advisor for organization and other offering costs paid by the Advisor on behalf of the Company, up to an amount equal to 4.0% of gross offering proceeds as of the termination of the initial public offering if the Company raises less than $500.0 million in the primary portion of the initial public offering and 2.5% of gross offering proceeds as of the termination of the initial public offering if the Company raises $500.0 million or more in the primary portion of the initial public offering. On April 13, 2018, the board of directors approved an amendment to the advisory agreement that provides that the Company is not responsible for the repayment of any unreimbursed organization and offering expenses or operational expenses incurred by the Advisor on the Company’s behalf through March 31, 2018 until after the termination of the primary portion of the Company’s ongoing initial public offering. Additionally, the amendment provides that such unreimbursed organization and offering expenses or operational expenses incurred or paid by the Advisor on the Company’s behalf through March 31, 2018 will be reimbursed ratably starting after the termination of the primary portion of the Company’s ongoing initial public offering through April 30, 2021 for organization and offering expenses and through April 30, 2020 for operating expenses. As of December 31, 2018, the Company has incurred approximately $8.5 million $8.2 million $249,000 As of December 31, 2018, the Company has charged approximately $3.5 million $5.0 million Organization costs, which include all expenses incurred by the Company in connection with its formation, including but not limited to legal fees and other costs to incorporate, are expensed as incurred. There can be no assurance that the Company's plans to raise capital will be successful. Prior to the Company breaking escrow, the Advisor incurred approximately $104,266 of formation and other operating expenses on the Company's behalf, which will not be reimbursed to the Advisor. Outstanding Class T shares issued in the Company's primary offering are subject to an annual distribution and shareholder servicing fee in the amount of 1% of the estimated NAV of the share (1% of purchase price prior to June 29, 2018) for five years from the date on which such share is issued. The Company will cease paying the distribution and shareholder servicing fee on each Class T share prior to the fifth anniversary of its issuance on the earliest of the following, should any of these events occur: (i) the date at which, in the aggregate, underwriting compensation from all sources equals 10% of the gross proceeds from the Company's primary offering (i.e., excluding proceeds from sales pursuant to the DRIP); (ii) the date on which the Company lists its common stock on a national securities exchange; and (iii) the date of a merger or other extraordinary transaction in which the Company is a party and in which the common stock is exchanged for cash or other securities. The Company cannot predict if or when any of these events will occur. Outstanding Class R shares issued in the Company's primary offering are also subject to an annual distribution and shareholder servicing fee in the amount of 1% of the estimated NAV of the share (1% of purchase price prior to June 29, 2018). The Company will cease paying the distribution and shareholder servicing fee with respect to Class R shares held in any particular account, and those Class R shares will convert into a number of Class I shares determined by multiplying each Class R share to be converted by the applicable "Conversion Rate," on the earlier of (i) the date after the termination of the primary offering at which, in the aggregate, underwriting compensation from all sources equals 10% of the gross proceeds from its primary offering; (ii) a listing of the Class I shares on a national securities exchange; (iii) a merger or consolidation of th |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | The following table presents the Company's supplemental cash flow information: Years Ended December 31, 2018 2017 Non-cash operating, financing and investing activities: Offering costs payable to related parties $ 2,081,923 $ 3,319,624 Offering costs payable to third parties (48,897 ) (62,684 ) Distribution and shareholder servicing fee payable to related parties 829,040 936,500 Cash distributions on common stock declared but not yet paid 1,037,799 453,877 Stock issued from distribution reinvestment plan 1,528,416 289,443 Stock dividend issued — 251,567 Subscriptions receivable 1,431,000 413,084 Escrow deposits funded directly by mortgage notes payable 486,106 347,318 Non-cash activity related to acquisitions: Mortgage notes payable used to acquire real property 77,748,894 21,172,682 Cash paid during the year for: Interest $ 2,248,903 $ 274,203 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Restricted Cash | NOTE 4 - RESTRICTED CASH Restricted cash represents escrow deposits with lenders to be used to pay real estate taxes, insurance, and capital improvement. The following table presents a summary of the components of the Company's restricted cash: December 31, 2018 2017 Real estate taxes $ 19,988 $ 32,115 Insurance 150,263 8,227 Capital improvements 713,651 151,722 Total $ 883,902 $ 192,064 In addition, the Company designated unrestricted cash for capital expenditures of approximately $9.2 million |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 5 - ACQUISITIONS On March 22, 2018, the Company, through its wholly-owned subsidiary, purchased a multifamily community located in Austell, Georgia ("Tramore Village"). Tramore Village, constructed in 1999, contains 324 units plus amenities, including private garages for each unit, a clubhouse, pool, fitness center and business center. Tramore Village encompasses 348,804 rentable square feet. At December 31, 2018, Tramore Village was 96% leased. On August 29, 2018, the Company, through its wholly-owned subsidiary, purchased a multifamily community located in Matthews, North Carolina ("Matthews Reserve"). Matthews Reserve, constructed in 1998, contains 212 units plus amenities, including a swimming pool, clubhouse, a fitness center, playgrounds, and a dog park. Matthews Reserve encompasses 199,744 rentable square feet. At December 31, 2018, Matthews Reserve was 92% leased. On September 14, 2018, the Company, through its wholly-owned subsidiary, purchased a multifamily community located Contract Purchase Price Acquisition Fee (1) Acquisition Costs (2) Total Real Estate, Cost Tramore Village Land $ 6,549,731 $ 144,847 $ 34,503 $ 6,729,081 Building and Improvements 36,220,010 801,006 190,800 37,211,816 Furniture, fixtures and equipment 654,973 14,485 3,450 672,908 Intangible Assets 925,286 20,463 4,874 950,623 $ 44,350,000 $ 980,801 $ 233,627 $ 45,564,428 Matthews Reserve Land $ 4,023,750 $ 88,239 $ 26,799 $ 4,138,788 Building and Improvements 28,738,626 630,223 191,407 29,560,256 Furniture, fixtures and equipment 372,197 8,162 2,479 382,838 Intangible Assets 665,427 14,592 4,432 684,451 $ 33,800,000 $ 741,216 $ 225,117 $ 34,766,333 The Park at Kensington Land $ 3,052,176 $ 66,511 $ 33,588 $ 3,152,275 Building and Improvements 24,634,579 536,818 271,095 25,442,492 Furniture, fixtures and equipment 360,000 7,845 3,962 371,807 Intangible Assets 653,245 14,235 7,189 674,669 $ 28,700,000 $ 625,409 $ 315,834 $ 29,641,243 (1) (2) Represents transaction costs paid at both closing and post-closing, excluding Acquisition Fees. |
Rental Properties, Net
Rental Properties, Net | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Rental Properties, Net | NOTE 6 - RENTAL PROPERTIES, NET The following table presents the Company's investment in rental properties: December 31, 2018 2017 Land $ 18,761,123 $ 4,740,979 Building and improvements 118,625,834 24,923,994 Furniture, fixtures and equipment 2,202,006 256,992 Construction in progress 265,233 13,395 139,854,196 29,935,360 Less: accumulated depreciation (3,792,610 ) (492,271 ) Total rental property, net $ 136,061,586 $ 29,443,089 Depreciation expense for the year ended December 31, 2018 and 2017 was $3.3 million and $478,920, respectively. Loss on disposal of assets: During the year ended December 31, 2018, the Company recorded losses of $108,844 on the disposal of assets, due to the replacement of appliances at its rental properties in conjunction with unit upgrades. |
Identified Intangible Assets, N
Identified Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Identified Intangible Assets, Net | NOTE 7 - IDENTIFIED INTANGIBLE ASSETS, NET Identified intangible assets, net, consist of acquired in-place rental leases. The net carrying value of the leases at December 31, 2018 and 2017 was $707,825 $2.4 million 4 Amortization for the years ended December 31, 2018 and 2017 was $1.9 million $707,825 |
Mortgage Notes Payable
Mortgage Notes Payable | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Notes Payable | NOTE 8 - MORTGAGE NOTES PAYABLE The following table presents a summary of the Company's mortgage notes payable, net: December 31, 2018 December 31, 2017 Collateral Outstanding Borrowings Deferred Financing Costs, net Carrying Value Outstanding borrowings Deferred Financing Costs, net Carrying Value Payne Place $ 1,560,236 $ (30,220 ) $ 1,530,016 $ 1,594,507 $ (32,126 ) $ 1,562,381 Bay Club 21,520,000 (255,957 ) 21,264,043 21,520,000 (304,011 ) 21,215,989 Tramore Village 32,625,000 (363,784 ) 32,261,216 - - - Matthews Reserve 23,850,000 (315,236 ) 23,534,764 - - - The Park at Kensington 21,760,000 (305,399 ) 21,454,601 - - - Total $ 101,315,236 $ (1,270,596 ) $ 100,044,640 $ 23,114,507 $ (336,137 ) $ 22,778,370 The following table presents additional information about the Company's mortgage notes payable, net: Collateral Maturity Date Annual Interest Rate Average Monthly Debt Service Average Monthly Escrow Payne Place 1/1/2047 3.11% (1)(5) 6,948 2,036 Bay Club 8/1/2024 4.37% (2)(6) 88,769 39,125 Tramore Village 4/1/2025 4.30% (3)(6) 118,239 36,104 Matthews Reserve 9/1/2025 4.47% (4)(6) 90,075 20,127 The Park at Kensington 10/1/2025 4.36% (4)(6) 80,159 43,998 (1) Fixed rate until January 1, 2020, when the fixed rate of the note changes to variable rate based on six-month LIBOR plus 2.25%, with an all-in interest rate floor of 2.50% and ceiling of 9.50%. (2) Variable rate based on one-month LIBOR of 2.50% (at December 31, 2018) plus 1.87%, with a maximum interest rate of 5.75%. (3) Variable rate based on one-month LIBOR of 2.50% (at December 31, 2018) plus 1.80%, with a maximum interest rate of 6.25%. (4) Fixed rate. (5) Through December 18, 2018, RAI co-guaranteed this loan with the Company. See Note 9 for more details. (6) Monthly interest-only payment currently required. All of the mortgage notes are collateralized by a first mortgage lien on the assets of the respective property named in the table above. The amount outstanding on the mortgages may be prepaid in full during the entire term with a prepayment penalty for a period of the term. On March 22, 2018, the Company, through a wholly owned subsidiary, entered into a seven-year, $32.6 million secured mortgage loan with Berkadia Commercial Mortgage LLC, an unaffiliated lender, secured by Tramore Village (the "Tramore Mortgage Loan"). The Tramore Mortgage Loan matures on April 1, 2025. The Tramore Mortgage Loan bears interest at a rate of LIBOR plus 1.80%, with a maximum interest rate of 6.25%. Monthly payments are interest only for the first 36 months. Beginning on May 1, 2021, the Company will pay both principal and interest based on a 30 year amortization period. Any remaining principal balance and all accrued and unpaid interest and fees will be due at maturity. The Company may prepay the Tramore Mortgage Loan in full at any time (1) after April 1, 2019 and until December 31, 2024 upon payment of a prepayment premium equal to 1% of the principal amount prepaid; and (2) after December 31, 2024 with no prepayment premium. The non-recourse carveouts under the loan documents for the Tramore Mortgage Loan are guaranteed by the Company. On August 29, 2018, the Company, through a wholly owned subsidiary, entered into a seven-year secured mortgage loan with CBRE Capital Markets, Inc., an unaffiliated lender, for borrowings of approximately $23.9 million secured by Matthews Reserve (the “Matthews Mortgage Loan”). The Matthews Mortgage Loan matures on September 1, 2025. The Matthews Mortgage Loan bears interest at a fixed rate of 4.47%. Monthly payments are interest only for the first 36 months. Beginning on October 1, 2021, the Company will pay both principal and interest based on 30-year amortization. Any remaining principal balance and all accrued and unpaid interest and fees will be due at maturity. After any lockout period (if any), prepayment in full is permitted on any scheduled payment date, provided a prepayment premium is paid. The prepayment premium will be based on the yield maintenance prepayment formula for any prepayment made prior to September 1, 2023. The prepayment premium will be 1% of the amount of principal being repaid for any prepayment made from (and including) September 1, 2023 through May 31, 2025. No prepayment premium is required after June 1, 2025. The non-recourse carveouts under the loan documents for the Matthews Mortgage Loan are guaranteed by the Company. On September 14, 2018, the Company, through a wholly owned subsidiary, entered into a seven-year secured mortgage loan with CBRE Capital Markets, Inc., an unaffiliated lender, for borrowings of approximately $21.8 million secured by The Park at Kensington (the “Kensington Mortgage Loan”). The Kensington Mortgage Loan matures on October 1, 2025. The Kensington Mortgage Loan bears interest at a fixed rate of 4.36%. Monthly payments are interest only for the first 36 months. Beginning on November 1, 2021, the Company will pay both principal and interest based on 30-year amortization. Any remaining principal balance and all accrued and unpaid interest and fees will be due at maturity. After any lockout period (if any), prepayment in full is permitted on any scheduled payment date, provided a prepayment premium is paid. The prepayment premium will be based on the greater of (i) the yield maintenance prepayment formula and (ii) 1% of the amount of the principal being repaid, for any prepayment made prior to October 1, 2023. The prepayment premium will be 1% of the amount of principal being repaid for any prepayment made from (and including) October 1, 2023 through June 30, 2025. No prepayment premium is required after July 1, 2025. The non-recourse carveouts under the loan documents for the Kensington Mortgage Loan are guaranteed by the Company. The following table presents the Company's annual principal payments on outstanding borrowings for each of the next five years ending December 31, and thereafter: 2019 $ 150,016 2020 390,839 2021 915,574 2022 1,720,252 2023 1,797,483 Thereafter 96,341,072 $ 101,315,236 Deferred financing costs incurred to obtain financing are amortized over the term of the related debt. During the year ended December 31, 2018 and 2017, amortization of deferred financing costs of $126,856 $149,170 The following table presents the Company's estimated amortization of the existing deferred financing costs for the next five years ending December 31, and thereafter: 2019 $ 203,776 2020 203,496 2021 201,570 2022 198,321 2023 194,477 Thereafter 268,956 $ 1,270,596 |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | NOTE 9 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS Relationship with the Advisor The Company is externally managed and advised by the Advisor. Pursuant to the terms of the Advisory Agreement, the Advisor provides the Company with its management team, including its officers, along with appropriate support personnel. The Advisor will be reimbursed for the Company’s allocable share of costs for Advisor personnel, including allocable personnel salaries and benefits. Each of the Company’s officers is an employee of the Sponsor or one of its affiliates. The Company does not expect to have any employees. The Advisor is not obligated to dedicate any specific portion of its time or its employees' time to the Company’s business. The Advisor and any employees of the Sponsor or its affiliates acting on behalf of the Advisor, are at all times subject to the supervision and oversight of the Company’s board of directors and have only such functions and authority as the Company delegates to it. Effective April 28, 2018, the Company renewed the Advisory Agreement with the Advisor through April 27, 2019. The terms of the agreement are identical to those of the Advisory Agreement in effect through April 27, 2018 except that it includes the amendment described below. During the course of the offering, the Advisor will provide offering-related services to the Company and will advance funds to the Company for both operating costs and organization and offering costs. These amounts will be reimbursed to the Advisor from the proceeds from the offering, subject to the aforementioned limits on organization and offering expense reimbursements, although there can be no assurance that the Company’s plans to raise capital will be successful. As of December 31, 2018, the Advisor has advanced organization and offering costs on a cumulative basis on behalf of the Company of approximately $8.2 million The Advisory Agreement has a one-year term and may be renewed for an unlimited number of successive one-year terms upon the approval of the Conflicts Committee of the Company's board of directors. Under the Advisory Agreement, the Advisor will receive fees and will be reimbursed for its expenses as set forth below: Acquisition fees. The Advisor earns an acquisition fee of 2.0% of the cost of investments acquired on behalf of the Company, plus any capital reserves allocated, or the amount funded by the Company to acquire or originate loans, including acquisition expenses and any debt attributable to such investments. Asset management fees. The Advisor earns a monthly asset management fee equal to 0.083% (one-twelfth of 1.0%) of the cost of each asset at the end of each month, without deduction for depreciation, bad debts or other non-cash reserves. The asset management fee is based only on the portion of the costs or value attributable to the Company’s investment in an asset if the Company does not own all of an asset and does not manage or control the asset. Disposition fees. The Advisor will earn a disposition fee in connection with the sale of a property equal to the lesser of one-half of the aggregate brokerage commission paid, or if none is paid, 2.0% of the contract sales price. Debt financing fees. The Advisor will earn a debt financing fee equal to 0.5% of the amount available under any debt financing obtained. Expense reimbursements. The Company also will pay directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor or its affiliates on behalf of the Company or in connection with the services provided to the Company in relation to its public offering, including its distribution reinvestment plan offering. This includes all organization and offering costs of up to 4.0% of gross offering proceeds if the Company raises less than $500.0 million in the primary offering and 2.5% of gross offering proceeds if the Company raises $500.0 million or more in the primary offering. Reimbursements also include expenses the Advisor incurs in connection with providing services to the Company, including the Company’s allocable share of costs for Advisor personnel and overhead, out-of-pocket expenses incurred in connection with the selection and acquisition of properties or other real estate related debt investments, whether or not the Company ultimately acquires the investment. However, the Company will not reimburse the Advisor or its affiliates for employee costs in connection with services for which the Advisor earns acquisition or disposition fees. Prior to the Company breaking escrow, the Advisor incurred approximately $104,266 of formation and other operating expenses the Company's behalf, which will not be reimbursed to the Advisor. On April 13, 2018, the board of directors approved an amendment to the advisory agreement that provides that the Company is not responsible for the reimbursement of any unreimbursed organization and offering expenses or operational expenses incurred by the Advisor on the Company’s behalf through March 31, 2018 until after the termination of the primary portion of the Company’s ongoing initial public offering. Additionally, the amendment provides that such unreimbursed organization and offering expenses or operational expenses incurred or paid by the Advisor on the Company’s behalf through March 31, 2018 will be reimbursed ratably starting after the termination of the primary portion of the Company’s ongoing initial public offering through April 30, 2021 for organization and offering expenses and through April 30, 2020 for operating expenses. Relationship with the Manager The Manager manages real estate properties and real estate-related debt investments and coordinates the leasing of, and manages construction activities related to, some of the Company’s real estate properties pursuant to the terms of the management agreement with the Manager. Property management fees. The Manager earns a property management fee equal to 4.5% of actual gross cash receipts from the operations of real property investments that it manages and an oversight fee on any real property investments that are managed by third parties. Property management fees are deducted directly from the property's operating account by the property manager. Any property management fees paid to unaffiliated third party property managers in excess of 4.5% of actual gross receipts will be reimbursed to the Company by the Advisor. At December 31, 2018 and 2017, the Advisor owes the Company $291 and $4,192, respectively, for property management fees in excess of the 4.5% cap paid to the unaffiliated third party property manager. Construction management fees . The Manager earns a construction management fee equal to 5.0% of actual aggregate costs to construct improvements to a property. Debt servicing fees . The Manager will earn a debt servicing fee equal to 2.75% of gross receipts from real estate-related debt investments. Expense reimbursement . During the ordinary course of business, the Manager or other affiliates of RAI may pay certain shared operating expenses on behalf of the Company. The Company is obligated to reimburse the Manager or other affiliates for such shared operating expenses. Relationship with Resource Securities Resource Securities, an affiliate of the Advisor, serves as the Company’s dealer manager and is responsible for marketing the Company’s shares during the public offering. Dealer manager fee and selling commissions. Pursuant to the terms of the amended and restated dealer manager agreement with Resource Securities, the Company generally pays Resource Securities a selling commission of up to 3.0% of gross offering proceeds from the sale of Class R shares and a dealer manager fee of up to 3.5% of gross offering proceeds from the sale of Class R shares (but the aggregate of such fees shall not exceed 5.5% of gross offering proceeds). The Company generally pays Resource Securities a dealer manager fee of up to 1.5% of gross offering proceeds from the sale of the Class I shares. Prior to July 3, 2017, the Company generally paid the Dealer Manager a selling commission of up to 7.0% of gross primary offering proceeds from the sale of Class A shares and up to 2.0% of gross primary offering proceeds from the sale of Class T shares and a dealer manager fee of up to 3.0% of gross primary offering proceeds from the sale of either Class A or Class T shares. Resource Securities allows all selling commissions earned and a portion of the dealer manager fee as a marketing fee to participating broker-dealers. No selling commissions or dealer manager fees are earned by Resource Securities in connection with sales under the distribution reinvestment plan. Additionally, the Company may reimburse the Resource Securities for bona fide due diligence expenses. No selling commissions or dealer manager fees were paid in connection with the sales of Class A shares to the Advisor or RAI Distribution and shareholder servicing fee . Resource Securities is paid an annual fee of 1.0% of the NAV (purchase price prior to June 29, 2018) per share of Class T common stock sold in the primary offering for five years from the date on which each share is issued up to a total of 5.0%. Resource Securities is also paid an annual fee of 1.0% of the NAV (purchase price prior to June 29, 2018) per share of Class R common stock sold in the primary offering. The Company will cease paying the distribution and shareholder servicing fee with respect to Class R shares held in any particular account, and those Class R shares will convert into a number of Class I shares determined by multiplying each Class R share to be converted by the applicable "Conversion Rate," on the earlier of (i) the date after the termination of the primary offering at which, in the aggregate, underwriting compensation from all sources equals 10% of the gross proceeds from the primary offering; (ii) a listing of the Class I shares on a national securities exchange; (iii) a merger or consolidation of the Company with or into another entity, or the sale or other disposition of all or substantially all of our assets; and (iv) the end of the month in which the total underwriting compensation (which consists of selling commissions, dealer manager fees and distribution and shareholder servicing fees) paid with respect to such Class R shares purchased in a primary offering is not less than 8.5% (or a lower limit, provided that, in the case of a lower limit, the agreement between Resource Securities and the broker-dealer in effect at the time Class R shares were first issued to such account sets forth the lower limit and Resource Securities advises the Company’s transfer agent of the lower limit in writing) of the gross offering price of those Class R shares purchased in such primary offering (excluding shares purchased through the distribution reinvestment plan) Relationship with RAI and C-III Property loss pool. The Company's properties participate in a property loss self-insurance pool with other properties directly and indirectly managed by RAI and C-III, which is backed by a catastrophic insurance policy. Substantially all of the receivables from related parties represent insurance deposits held in escrow by RAI and C-III related to the self-insurance pool which, if unused, will be returned to the Company. The pool covers losses up to $2.5 million in aggregate, after a $25,000 deductible per incident. Claims beyond the insurance pool limits will be covered by the catastrophic insurance policy, which covers claims up to $250.0 million, after either a $25,000 or a $100,000 deductible per incident, depending on location and/or type of loss. Therefore, unforeseen or catastrophic losses in excess of the Company's insured limits could have a material adverse effect on the Company's financial condition and operating results. During the year ended December 31, 2018, the Company paid $53,119 into the insurance pools General liability loss pool. The Company's properties also participated in a general liability pool with other properties directly and indirectly managed by RAI and C-III until April 22, 2017. The pool covered claims up to $50,000 per incident through April 22, 2017. Effective April 23, 2017, the loss pool was eliminated and the Company now participates (with other properties directly and indirectly managed by RAI and C-III) in a general liability policy. The insured limit for the general liability policy is $76.0 million in total claims, after a $25,000 deductible per incident Internal audit fees. RAI performs internal audit services for the Company. Other transactions. Through December 18, 2018, RAI co-guaranteed the mortgage on Payne Place with the Company until such time as the Company achieved the following: (a) owned a minimum of five apartment complexes; (b) had a minimum net worth of $50.0 million; (c) had liquidity of no less than $5.0 million; and (d) had an aggregate portfolio leverage of no more than 65% (see Note 8 for further details). As of December 18, 2018, RAI has been released from the guaranty. The Company paid The Planning & Zoning Resource Company, a subsidiary of C-III, $4,187 for a zoning report in connection with its acquisition of Tramore Village, Matthews Reserve, and The Park at Kensington during the year ended December 31, 2018. The Company participates in a liability insurance program for directors and officers coverage with other C-III managed entities and subsidiaries for coverage up to $100.0 million. The following table presents the Company's amounts receivable from and amounts payable to such related parties: December 31, 2018 2017 Due from related parties: Advisor $ 291 $ 4,192 RAI and affiliate - insurance funds held in escrow 12,799 379 Resource Securities 682 — $ 13,772 $ 4,571 Due to related parties: Advisor Acquisition-related reimbursements $ — $ 6,533 Asset management fees 5,238 — Organization and offering costs 8,249,864 6,167,941 Operating expense reimbursements (including prepaid expenses) 2,700,703 1,810,658 $ 10,955,805 7,985,132 Manager Property management fees 50,912 10,800 Operating expense reimbursements 62,717 3,592 113,629 14,392 RAI Internal audit fee 11,750 3,500 Operating expense reimbursements 14,843 6,625 26,593 10,125 Resource Securities Selling commissions and dealer-manager fees 78,705 22,720 Distribution and shareholder servicing fee 1,818,555 989,515 1,897,260 1,012,235 $ 12,993,287 $ 9,021,884 The following table presents the Company's fees earned by and expenses incurred from such related parties: Years Ended December 31, 2018 2017 Fees earned / expenses incurred: Advisor: Acquisition fees and acquisition related reimbursements (1) $ 2,449,431 $ 641,193 Asset management fees (2) 935,601 159,803 Debt financing fees (3) 391,175 107,600 Organization and offering costs (4) 2,107,337 3,319,624 Operating expense reimbursement (5) 1,205,125 660,219 Manager: Property management fees (2) $ 354,766 $ 55,630 Construction management fees (1) 95,791 1,517 Operating expense reimbursements (6) 59,121 24,858 RAI: Internal audit fee (5) $ 38,750 $ 13,250 Resource Securities: Selling commissions and dealer-manager fees (7) $ 2,668,910 $ 1,709,990 Distribution and shareholder servicing fee (7) 1,303,017 1,022,047 Other: The Planning & Zoning Resource Company (1) $ 4,187 $ 1,079 (1) Capitalized and included in Rental properties, net on the consolidated balance sheets. (2) Included in Management fees - related parties on the consolidated statements of operations and comprehensive loss. (3) Included in Mortgage notes payable on the consolidated balance sheets. (4) Organizational expenses were expensed when incurred and offering costs are included in Deferred offering costs until they are charged to Stockholders' equity on the consolidated balance sheets as proceeds are raised in the offering. (5) Included in General and administrative on the consolidated statements of operations and comprehensive loss and excludes third party costs that are advanced by the Advisor. (6) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. (7) Included in Stockholders' equity on the consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 10 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings/(loss) per share for the periods presented as follows: Years Ended December 31, 2018 2017 Net loss $ (6,851,783 ) $ (3,131,845 ) Less: Class A common stock cash distributions declared 333,455 253,708 Less: Class T common stock cash distributions declared 477,264 332,545 Less: Class R common stock cash distributions declared 2,458,309 396,088 Less: Class I common stock cash distributions declared 120,331 11,330 Undistributed net loss attributable to common stockholders $ (10,241,142 ) $ (4,125,516 ) Class A common stock: Undistributed net loss attributable to Class A common stockholders $ (1,012,356 ) $ (1,257,702 ) Class A common stock cash distributions declared 333,455 253,708 Net loss attributable to Class A common stockholders $ (678,901 ) $ (1,003,994 ) Net loss per Class A common share, basic and diluted $ (1.08 ) $ (1.79 ) Weighted-average number of Class A common shares outstanding, basic and diluted (1) 627,773 560,110 Class T common stock: Undistributed net loss attributable to Class T common stockholders $ (1,765,273 ) $ (1,756,053 ) Class T common stock cash distributions declared 477,264 332,545 Net loss attributable to Class T common stockholders $ (1,288,009 ) $ (1,423,508 ) Net loss per Class T common share, basic and diluted $ (1.18 ) $ (1.82 ) Weighted-average number of Class T common shares outstanding, basic and diluted 1,094,666 782,047 Class R common stock: Undistributed net loss attributable to Class R common stockholders $ (7,223,274 ) $ (1,073,411 ) Class R common stock cash distributions declared 2,458,309 396,088 Net loss attributable to Class R common stockholders $ (4,764,965 ) $ (677,323 ) Net loss per Class R common share, basic and diluted $ (1.06 ) $ (1.42 ) Weighted-average number of Class R common shares outstanding, basic and diluted 4,479,230 478,037 Class I common stock: Undistributed net loss attributable to Class I common stockholders $ (240,239 ) $ (38,350 ) Class I common stock cash distributions declared 120,331 11,330 Net loss attributable to Class I common stockholders $ (119,908 ) $ (27,020 ) Net loss per Class I common share, basic and diluted $ (0.80 ) $ (1.58 ) Weighted-average number of Class I common shares outstanding, basic and diluted 148,975 17,079 (1) Weighted-average number of shares excludes the convertible stock as they are not participating securities. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Equity | NOTE 11 - EQUITY Preferred Stock The Company’s charter authorizes the Company to issue 10 million shares of its $0.01 par value preferred stock. As of December 31, 2018, no shares of preferred stock were issued or outstanding. Convertible Stock The Company’s charter authorizes the Company to issue 50,000 shares of its $0.01 par value convertible stock. On August 5, 2016, the Company's board of directors approved the issuance of 50,000 convertible shares in exchange for 5,000 shares of Class A common stock. As of December 31, 2018, the Company had 50,000 shares of $0.01 par value convertible stock outstanding, which are owned by the Advisor. The convertible stock will convert into shares of the Company’s Class A common stock upon the occurrence of (a) the Company having paid distributions to common stockholders that in the aggregate equal 100% of the price at which the Company originally sold the shares plus an amount sufficient to produce a 6% cumulative, non-compounded annual return on the shares at that price; or (b) if the Company lists its common stock on a national securities exchange or the Company consummates a merger pursuant to which consideration received by the stockholders is securities of another issuer that are listed on a national securities exchange. Each of these two events is a "Triggering Event." Upon a Triggering Event, the Company's convertible stock will, unless its Advisory Agreement has been terminated or not renewed on account of a material breach by its Advisor, generally be converted into a number of shares of common stock equal to 1/50,000 of the quotient of: (A) 15% of the amount, if any, by which (1) the value of the Company as of the date of the event triggering the conversion plus the total distributions paid to its stockholders through such date on the then-outstanding shares of its common stock exceeds (2) the sum of the aggregate issue price of those outstanding shares plus a 6% cumulative, non-compounded, annual return on the issue price of those outstanding shares as of the date of the event triggering the conversion, divided by (B) the value of the Company divided by the number of outstanding shares of common stock, in each case, as of the as of the date of the event triggering the conversion. No triggering events have occurred as of December 31, 2018. Common Stock The Company’s charter authorizes the issuance of 1 billion shares of common stock with a par value of $0.01 per share, of which, the Company has allocated 750 million shares as Class R common stock, 75 million shares as Class I common stock, 25 million shares as Class A common stock and 25 million shares as Class T common stock. 125 million shares of the Company's $0.01 par value common stock remain undesignated. As of July 3, 2017, the Company ceased offering shares of Class A and Class T common stock and commenced the offering of Class R and Class I common stock in its primary offering. At December 31, 2018, shares of the company's $0.01 par value Class A, Class T, Class R, and Class I common stock have been issued as follows: Class A Class T Class R Class I Shares Gross Proceeds Shares Gross Proceeds Shares Gross Proceeds Shares Gross Proceeds Shared issued through primary offering (1) 586,207 $ 5,601,476 1,049,996 $ 9,943,465 7,052,216 $ 67,558,115 328,958 $ 3,016,305 Shares issued through stock dividends 12,860 — 15,495 — — — — — Shares issued through distribution reinvestment plan 20,426 192,652 48,510 440,289 130,263 1,183,513 646 5,786 Shares issued in conjunction with the Advisor's initial investment, net of 5,000 share conversion 15,000 200,000 — — — — — — Total 634,493 $ 5,994,128 1,114,001 $ 10,383,754 7,182,479 $ 68,741,628 329,604 $ 3,022,091 Shares redeemed and retired — (2,607 ) (945 ) — Total shares issued and outstanding at December 31, 2018 634,493 1,111,394 7,181,534 329,604 (1) Includes 222,222 Redemptions During the year ended December 31, 2018, the Company redeemed shares of its outstanding Class T and Class R common stock. During the year ended December 31, 2018, there were no redemptions of Class A or Class I common stock. Redemptions for the year ended December 31, 2018 were as follows: Class T Class R Period Total Number of Shares Redeemed Average Price Paid per Share Total Number of Shares Redeemed Average Price Paid per Share January 2018 — — — — February 2018 — — — — March 2018 2,154 $ 8.59 — — April 2018 — — — — May 2018 — — — — June 2018 — — — — July 2018 — — — — August 2018 — — — — September 2018 — — 945 $ 8.38 October 2018 — — — — November 2018 — — — — December 2018 453 $ 8.37 — — 2,607 945 All redemptions requests tendered were honored during the year ended December 31, 2018. The Company will not redeem in excess of 5% of the weighted-average number of shares of common stock outstanding during the 12-month period immediately prior to the effective date of redemption. The Company's board of directors will determine at least quarterly whether it has sufficient excess cash to repurchase shares. Generally, the cash available for redemptions will be limited to proceeds from the Company's distribution reinvestment plan plus, if the Company has positive operating cash flow from the previous fiscal year, 1% of all operating cash flow from the previous year. The Company's board of directors, in its sole discretion, may suspend, terminate or amend the Company's share redemption program without stockholder approval upon 30 days' notice if it determines that such suspension, termination or amendment is in the Company's best interest. The Company's board may also reduce the number of shares purchased under the share redemption program if it determines the funds otherwise available to fund the Company's share redemption program are needed for other purposes. These limitations apply to all redemptions, including redemptions sought upon a stockholder's death, qualifying disability or confinement to a long-term care facility. Distributions Cash Distributions During the year ended December 31, 2018, the Company's board of directors declared a cash distribution on the outstanding shares of all classes of its common stock based on daily record dates for the period from March 30, 2018 through March 28, 2019, which were or will be paid on April 30, 2018, May 31, 2018, June 29, 2018, July 31, 2018, August 31, 2018, September 28, 2018, October 31, 2018, November 30, 2018, December 31, 2018, January 31, 2019, February 28, 2019, and March 29, 2019. The distributions declared for the periods from March 30, 2018 through June 28, 2018 were calculated based on stockholders of record each day during these periods at a rate of (i) $0.001434521 per share per day less (ii) the applicable daily distribution and shareholder servicing fees accrued for and allocable to any class of common stock. The distributions declared for the periods from June 29, 2018 through March 28, 2019 were calculated based on stockholders of record each day during these periods at a rate of (i) $0.001458630 per share per day less (ii) the applicable daily distribution and shareholder servicing fees accrued for and allocable to any class of common stock. Distributions are generally paid to stockholders on the last business day of the month for which the distribution has accrued. Distributions reinvested pursuant to the distribution reinvestment plan are reinvested in shares of the same class as the shares on which distributions are made. The following table presents information regarding the Company's distributions declared and paid to stockholders during the year ended December 31, 2018: Class A Class T Class R Class I Total Distributions declared $ 333,455 $ 477,264 $ 2,458,309 $ 120,331 $ 3,389,359 Distributions reinvested in shares of common stock paid $ 118,858 $ 297,269 $ 1,107,690 $ 4,599 $ 1,528,416 Cash distributions paid 214,334 178,765 810,351 73,571 1,277,021 Total distributions paid $ 333,192 $ 476,034 $ 1,918,041 $ 78,170 $ 2,805,437 At December 31, 2018, the Company had accrued approximately $1.0 million Stock Dividends On October 7, 2016, the Company's board of directors authorized a stock dividend in the amount of 0.005 shares of common stock to all common stockholders of record as of the close of business on December 31, 2016. On February 22, 2017, the Company's board of directors authorized a stock dividend, in the amount of 0.01 shares of common stock to all common stockholders of record as of the close of business on March 31, 2017. On April 25, 2017, the Company's board of directors authorized a stock dividend in the amount of 0.01 shares of common stock to all common stockholders of record as of the close of business on July 1, 2017. The stock dividends were issued in the same class of shares as the shares for which such stockholder received the stock dividend. The Company issued the stock dividends on January 13, 2017, April 13, 2017, and July 14, 2017, respectively. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures and Disclosures | NOTE 12 - FAIR VALUE MEASURES AND DISCLOSURES In analyzing the fair value of its financial investments accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The fair value of cash, tenant receivables and accounts payable, approximate their carrying value due to their short nature. The hierarchy followed defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3 - Unobservable inputs that reflect the entity’s own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare. The fair value of rental properties is usually estimated based on information obtained from a number of sources, including information obtained about each property as a result of pre-acquisition due diligence, marketing and leasing activities. The Company allocates the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases and the value of tenant relationships, based in each case on their fair values. During the year ended December 31, 2018, derivatives (interest rate caps) of $28,500 were acquired in conjunction with the acquisition financing of Tramore Village. Derivatives are reported at fair value in the consolidated balance sheets and are valued by a third party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit and volatility factors. (Level 2). The following table presents information about the Company's assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Level 1 Level 2 Level 3 Total December 31, 2018 Assets: Interest rate caps $ — $ 2,293 $ — $ 2,293 December 31, 2017 Assets: Interest rate caps $ — $ 3,408 $ — $ 3,408 The carrying and fair values of the Company’s mortgage notes payable- outstanding borrowings, which were not carried at fair value on the consolidated balance sheets at December 31, 2018 and 2017, were as follows: December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Mortgage notes payable- outstanding borrowings $ 101,315,236 $ 100,698,311 $ 23,114,507 $ 22,236,396 The carrying amount of the mortgage notes payable presented above is the outstanding borrowings excluding premium or discount and deferred finance costs, net. At December 31, 2018, the fair value of mortgage notes payable was estimated using a discounted cash flow model and rates available to the Company for debt with similar terms and remaining maturity. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | NOTE 13 - DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. As a condition to certain of the Company’s financing facilities, from time to time the Company may be required to enter into certain derivative transactions as may be required by the lender. These transactions would generally be in line with the Company’s own risk management objectives and also serve to protect the lender. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company entered into two interest rate caps that were designated as cash flow hedges. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the year ended December 31, 2018, such derivatives were used to hedge the variable cash flows, indexed to USD-LIBOR, associated with existing variable-rate loan agreements. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the year ended December 31, 2018, the Company recorded $174 of hedge ineffectiveness in earnings. During the year ended December 31, 2017, the Company recorded no hedge ineffectiveness in earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company's variable-rate debt. At December 31, 2018, the Company estimates that an additional $10,511 The following table presents the Company's outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk at December 31, 2018 and 2017: Interest Rate Derivative Number of Instruments Notional Amount Maturity Dates December 31, 2018 Interest rate caps 2 $ 54,145,000 August 1, 2020 and April 1, 2021 December 31, 2017 Interest rate cap 1 $ 21,520,000 August 1, 2020 Tabular Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The following table presents the fair value of the Company’s derivative financial instruments, as well as their classification on the consolidated balance sheets at December 31, 2018 and 2017: Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Prepaid expenses and other assets $ 2,293 Prepaid expenses and other assets $ 3,408 — $ — — $ — |
Operating Expense Limitation
Operating Expense Limitation | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Operating Expense Limitation | Under its charter, the Company must limit its total operating expenses to the greater of 2% of its average invested assets or 25% of its net income for the four most recently completed fiscal quarters, unless the Conflicts Committee of the Company’s board of directors has determined that such excess expenses were justified based on unusual and non-recurring factors. Operating expenses for the four fiscal quarters ended December 31, 2018 exceeded the charter imposed limitation; however, the Conflicts Committee of the Company's board of directors determined that the relationship of the Company's operating expenses to its average invested assets was justified for these periods given the costs of operating a public company and the early stage of the Company's operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that there have been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements, except for the following: On February 12, 2019, the Company purchased Wimbledon Oaks, a 248 unit multifamily apartment complex in Arlington, Texas for $25.9 million. The seller was an unaffiliated third party. In conjunction with the purchase, the Company entered into an $18.4 million mortgage on the property. On March 21, 2019, the Company’s Board of Directors authorized a cash distribution on the outstanding shares of all classes of common stock based on daily record dates for the period from March 29, 2019 through June 27, 2019, which the Company expects to pay on April 30, 2019, May 31, 2019, and June 28, 2019. The distribution will be calculated based on the stockholders of record each day during the period at a rate of (i) $0.001469178 per share per day, less (ii) the applicable daily distribution and shareholder servicing fees accrued for and allocable to any class of common stock divided by the number of shares of common stock of such class outstanding as of the close of business on the record date. |
Schedule III, Real Estate and A
Schedule III, Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate And Accumulated Depreciation Disclosure [Abstract] | |
SEC Schedule III, Real Estate and Accumulated Depreciation | Initial Cost to Company Gross Amount at which Carried at Close of Period Description Location Encumbrances Land Building and Improvements Total Cost Capitalized Subsequent to Acquisition Land Building and Improvements Total Accumulated Depreciation Date of Construction Date Acquired Life on Which Depreciated- Latest Income Statement Payne Place Alexandria, Virginia $ 1,560,236 $ 1,419,898 $ 1,030,161 $ 2,450,059 $ 37,076 $ 1,419,898 $ 1,067,237 $ 2,487,135 $ (101,793 ) 1950 8/19/2016 3 - 27.5 years Bay Club Jacksonville, Florida 21,520,000 3,321,081 24,255,617 27,576,698 870,568 3,321,081 25,126,185 28,447,266 (1,588,567 ) 1990 7/31/2017 3 - 27.5 years Tramore Village Austell, Georgia 32,625,000 6,729,081 37,884,724 44,613,805 1,041,871 6,729,081 38,926,595 45,655,676 (1,290,598 ) 1999 3/22/2018 3 - 27.5 years Matthews Reserve Matthews, North Carolina 23,850,000 4,138,788 29,943,094 34,081,882 78,746 4,138,788 30,021,840 34,160,628 (441,450 ) 1998 8/29/2018 3 - 27.5 years The Park at Kensington Riverview, Florida 21,760,000 3,152,275 25,814,299 28,966,574 136,917 3,152,275 25,951,216 29,103,491 (370,202 ) 1990 9/14/2018 3 - 27.5 years $ 101,315,236 $ 18,761,123 $ 118,927,895 $ 137,689,018 $ 2,165,178 $ 18,761,123 $ 121,093,073 $ 139,854,196 $ (3,792,610 ) December 31, 2018 2017 Investments in real estate: Balance, beginning of period $ 29,935,360 $ 2,459,266 Acquisitions 107,662,261 27,576,698 Improvements, etc. 2,381,475 85,554 Disposals during the period (124,900 ) (186,158 ) Balance, end of period $ 139,854,196 $ 29,935,360 Accumulated Depreciation: Balance, beginning of period $ (492,271 ) $ (13,431 ) Depreciation (3,316,395 ) (478,920 ) Disposals during the period 16,056 80 Balance, end of period $ (3,792,610 ) $ (492,271 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with the accounting principles generally accepted in the United States of America ("GAAP"). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: Subsidiaries Number of Units Property Location Resource Apartment REIT III Holdings, LLC N/A N/A Resource Apartment REIT III OP, LP N/A N/A RRE Payne Place Holdings, LLC 11 Alexandria, VA RRE Bay Club Holdings, LLC 220 Jacksonville, FL RRE Tramore Village Holdings, LLC 324 Austell, GA RRE Matthews Reserve Holdings, LLC 212 Matthews, NC RRE Kensington Holdings, LLC 204 Riverview, FL 971 N/A – Not applicable All intercompany accounts and transactions have been eliminated in consolidation. |
Segment Reporting | Segment Reporting The Company does not evaluate performance on a relationship-specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single operating segment for reporting purposes in accordance with GAAP. |
Concentration of Risk | Concentration of Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist of periodic temporary deposits of cash. At December 31, 2018, the Company had approximately $33.0 million $31.6 million At December 31, 2018, the Company’s real estate investments in Florida, Georgia, and North Carolina represented approximately 41% , 33%, and 25%, respectively, |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers”, which will replace most existing revenue recognition guidance in GAAP. Under the new standard, revenue is recognized by an entity in a manner that depicts 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. ASU No. 2014-09 requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. On January 1, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective approach. The majority of the Company’s revenue is derived from residential rental income and other lease income, which are scoped out from this standard and included in the current lease accounting framework, and will be accounted for under ASU No. 2016-02, "Leases", as discussed below. Revenue streams that are in the scope of the new standards include (but are not limited to) administrative and late fees and revenue sharing arrangements of cable income from contracts with cable providers at the Company's properties. The accounting for these revenue streams were not affected by the adoption of ASU No. 2014-09, nor was there a cumulative effect of initially applying the standard. In August 2016, FASB issued ASU No. 2016-15 "Classification of Certain Cash Receipts and Cash Payments", which addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. On January 1, 2018, the Company adopted ASU No. 2016-15 and the adoption did not have a material effect on its consolidated financial statements and disclosures. In November 2016, FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which provides guidance on the classification of restricted cash in the statement of cash flows. On January 1, 2018, the Company adopted ASU No. 2016-18. As a result of adopting the new guidance, $214,775 $399,106 In January 2017, FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of Business," which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. On January 1, 2018, the Company adopted ASU No. 2017-01. During the year ended December 31, 2018, the Company acquired three investment properties which did not meet the revised definition of a business and, accordingly, accounted for the acquisitions as asset acquisitions. For investment property additions accounted for as business combinations, acquisition fees and acquisition costs were included in acquisition costs on the consolidated statements of operations and comprehensive loss. For investment property additions accounted for as asset acquisitions, all such costs are included in the purchase price that is allocated between land, building and improvements, furniture, fixtures, and equipment and intangible assets on the consolidated balance sheets, based on their respective fair values. Accounting Standards Issued But Not Yet Effective In February 2016, FASB issued ASU No. 2016-02, "Leases" and amended by ASU No. 2018-09, “Codification Improvements" in July 2018, which is intended to improve financial reporting about leasing transactions and requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. In September 2017, FASB issued ASU No. 2017-13, "Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842)", which provides additional implementation guidance on the previously issued ASU No. 2016-02. ASU No. 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is continuing to evaluate this guidance; however, the Company expects that its operating leases where it is the lessor will be accounted for on its balance sheet similar to its current accounting with the underlying leased asset (multifamily properties) recognized as real estate. For leases in which the Company is the lessee, primarily consisting of office equipment leases, the Company expects to recognize a right-of-use asset and a lease liability equal to the present value of the minimum lease payments with rental payments being applied to the lease liability and to interest expense and the right-of-use asset being amortized to expense on a straight-line basis over the term of the lease. The Company intends to adopt this standard when it becomes effective and it estimates the impact on its consolidated financial statements will be immaterial. In July 2018, FASB issued ASU No. 2018-11, “Leases: Targeted Improvements” an additional amendment to ASU No. 2016-02. Although the Company is still evaluating this guidance, the Company believes it will apply the practical expedient allowed in this new guidance to combine lease and associated nonlease components by class of underlying asset. In addition, the Company is expected to utilize the optional method for adopting the new leasing guidance and not restate comparative periods. The Company intends to adopt this standard when it becomes effective and it estimates the impact on its consolidated financial statements will be immaterial. In June 2016, FASB issued ASU No. 2016-03 "Financial Instruments - Credit Losses", which requires measurement and recognition of expected credit losses for financial assets held. The standard update is effective for the Company beginning January 1, 2019. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2016-03 to have a significant impact on its consolidated financial statements due to the fact that the Company did not have instruments subject to this guidance at December 31, 2018. In January 2017, FASB issued ASU No. 2017-04, "Intangibles- Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment", which alters the current goodwill impairment testing procedures. ASU No. 2017-04 will be effective for the Company beginning December 15, 2019. Early application is permitted. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2017-04 to have a significant impact on its consolidated financial statements due to the fact that the Company did not have any goodwill subject to this guidance at December 31, 2018. In August 2017, FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. The update to the standard is effective for the Company on January 1, 2019, with early adoption permitted in any interim period. The Company is continuing to evaluate this guidance; however it does not expect the adoption of ASU 2017-12 to have a significant impact on its consolidated financial statements. In June 2018, FASB issued ASU 2018-07 “Improvements to Nonemployee Share-Based Payment Accounting” to simplify the accounting for share-based payment transactions for acquiring goods and services from nonemployees by including these payments in the scope of the guidance for share-based payments to employees. ASU 2018-07 will be effective for annual reporting periods beginning after December 15, 2018, and interim periods within that reporting period. Early adoption is permitted. The Company is continuing to evaluate this guidance; however it does not expect the adoption of ASU 2018-07 to have a significant impact on its consolidated financial statements. In July 2018, FASB issued ASU No. 2018-09, "Codification Improvements". This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The Company is continuing to evaluate this guidance and assessing the impact of this guidance on its consolidated financial statements. In August 2018, FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update removes, modifies and adds certain disclosure requirements in the FASB Accounting Standards Codification ("ASC") 820, “Fair Value Measurement”. ASU No. 2018-13 will be effective for the Company beginning January 1, 2020 and early adoption is permitted. The Company is continuing to evaluate this guidance; however, it does not expect the adoption of ASU No. 2018-13 to have a significant impact on its consolidated financial statements. In October 2018, FASB issued ASU No. 2018-16, “Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes”. ASU No. 2018-16 permits the use of the Overnight Index Swap (“OIS”) Rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct Treasury obligations of the U.S. government, the London Interbank Offered Rate (“LIBOR”) and the OIS Rate based on the Federal Funds Effective Rate. For entities that have not already adopted ASU No. 2017-12, the amendments in ASU No. 2018-16 are required to be adopted concurrently with the amendments in ASU No. 2017-12. The Company intends to adopt ASU No. 2018-16 when ASU No. 2017-12 becomes effective on January 1, 2019. The Company is continuing to evaluate this guidance; however, the Company does not expect the adoption of ASU No. 2018-16 to have a significant impact on its consolidated financial statements. |
Real Estate Investments | Real Estate Investments The Company records acquired real estate at fair value on their respective acquisition dates. The Company considers the period of future benefit of an asset to determine its appropriate useful life and depreciates the asset using the straight line method. The Company anticipates the estimated useful lives of its assets by class as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture, fixtures, and equipment 3.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related leases Improvements and replacements in excess of $1,000 are capitalized when they have a useful life greater than or equal to one year. The Manager earns a construction management fee of 5% of actual aggregate costs to construct improvements, or to repair, rehab or reconstruct a property. These costs are capitalized along with the related asset. Costs of repairs and maintenance are expensed as incurred. |
Impairment of Long Lived Assets | Impairment of Long Lived Assets When circumstances indicate the carrying value of a property may not be recoverable, the Company reviews the asset for impairment. This review is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property’s use and eventual disposition. The review also considers factors such as expected future operating income, market and other applicable trends and residual value, as well as the effects of leasing demand, competition and other factors. If impairment exists, due to the inability to recover the carrying value of a property, an impairment loss will be recorded to the extent that the carrying value exceeds the estimated fair value of the property for properties to be held and used. For properties held for sale, the impairment loss is the adjustment to fair value less estimated cost to dispose of the asset. These assessments have a direct impact on net income because recording an impairment loss results in an immediate negative adjustment to net income. There were no impairment losses recorded on long lived assets during the years ended December 31, 2018 and 2017. |
Loans Held for Investment | Loans Held for Investment The Company records acquired real estate loans at cost and reviews them for potential impairment at each balance sheet date. A loan receivable is considered impaired when it becomes probable, based on current information, that the Company will be unable to collect all amounts due according to the loan’s contractual terms. The amount of impairment, if any, is measured by comparing the recorded amount of the loan to the present value of the expected cash flows or the fair value of the collateral. If a loan is deemed to be impaired, the Company will record a reserve for loan losses through a charge to income for any shortfall. Failure to recognize impairment would result in the overstatement of the carrying values of the Company’s real estate loans receivable and an overstatement of the Company’s net income. The Company may acquire real estate loans at a discount due to credit quality. Revenues from these loans are recorded under the effective interest method. Under this method an effective interest rate ("EIR") is applied to the cost basis of the real estate loan receivable. The EIR that is calculated when the real estate loan is acquired remains constant and is the basis for subsequent impairment testing and income recognition. If the amount and timing of future cash collections are not reasonably estimable, the Company accounts for the real estate loan receivable on the cost recovery method. Under the cost recovery method of accounting, no income is recognized until the basis of the real estate loan receivable has been fully recovered. Interest income from loans receivable will be recognized based on the contractual terms of the debt instrument. Fees related to any buydown of the interest rate will be deferred as prepaid interest income and amortized over the term of the loan as an adjustment to interest income. Closing costs related to the purchase of a loan receivable will be amortized over the term of the loan and accreted as an adjustment against interest income. There were no loans held for investment on the Company's consolidated balance sheets as of both December 31, 2018 and 2017. |
Allocation of Purchase Price of Acquired Assets | Allocation of Purchase Price of Acquired Assets On January 1, 2018, the Company adopted ASU 2017-01. Acquisitions that do not meet the definition of a business under this guidance are accounted for as asset acquisitions. In most cases, the Company believes acquisitions of real estate will no longer be considered a business combination as in most cases substantially all of the fair value is concentrated in a single identifiable asset or group of tangible assets that are physically attached to each other (land and building). However, if the Company determines that substantially all of the fair value of the gross assets acquired is not concentrated in either a single identifiable asset or in a group of similar identifiable assets, the Company will then perform an assessment to determine whether the set is a business by using the framework outlined in the ASU. If the Company determines that the acquired asset is not a business, the Company will allocate the cost of the acquisition including transaction costs to the assets acquired or liabilities assumed based on their related fair value. Upon the acquisition of real properties, the Company allocates the purchase price to tangible assets, consisting of land, building, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, other value of in-place leases and value of tenant relationships, based in each case on their fair values. The Company records above-market and below-market in-place lease values for acquired properties based on the present value (using an interest rate that reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The Company amortizes any capitalized above-market or below-market lease values as an increase or reduction to rental income over the remaining non-cancelable terms of the respective leases, which the Company expects will range from one month to one year. The Company measures the aggregate value of other intangible assets acquired based on the difference between (i) the property valued with existing in-place leases adjusted to market rental rates and (ii) the property valued as if vacant. Management’s estimates of value are determined by independent appraisers (e.g., discounted cash flow analysis). Factors to be considered in the analysis include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. Management also estimates costs to execute similar leases including leasing commissions and legal and other related expenses to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. The total amount of other intangible assets acquired is further allocated to in-place lease values and customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with that respective tenant. Characteristics to be considered by management in allocating these values include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. The Company amortizes the value of in-place leases to expense over the initial term of the respective leases. The value of customer relationship intangibles is amortized to expense over the initial term and any renewal periods in the respective leases, but in no event will the amortization periods for the intangible assets exceed the remaining depreciable life of the building. The determination of the fair value of the assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. The use of inappropriate estimates would result in an incorrect assessment of the fair value of these assets and liabilities, which could impact the amount of the Company’s reported net income. |
Revenue Recognition | Revenue Recognition The Company recognizes minimum rent, including rental abatements and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related lease. The future minimum rental payments to be received from noncancelable operating leases for residential rental properties are approximately $6.4 million $94,204 none Revenue is primarily derived from the rental of residential housing units for which the Company receives minimum rents and utility reimbursements pursuant to underlying tenant lease agreements. The Company also receives other ancillary fees for administration of leases, late payments, amenities and revenue sharing arrangements of cable income from contracts with cable providers at the Company's properties. As discussed earlier, the Company adopted ASU No. 2014-09 beginning January 1, 2018. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The Company records the utility reimbursement income and ancillary charges in the period when the performance obligation is completed, either at a point in time or on a monthly basis as the service is utilized. |
Tenant Receivables | Tenant Receivables Tenant receivables are stated in the consolidated financial statements as amounts due from tenants net of an allowance for uncollectible receivables. Payment terms vary and receivables outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time receivables are past due, security deposits held, the Company’s previous loss history, the tenants’ current ability to pay their obligations to the Company, the condition of the general economy and the industry as a whole. The Company writes off receivables when they become uncollectible. At December 31, 2018 and 2017, the Company recorded $ 5,593 370 |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT, commencing with its taxable year ending December 31, 2017. As a REIT, the Company will generally not be subject to corporate U.S. federal or state income tax to the extent that it makes qualifying distributions to its stockholders, and provided it satisfies, on a continuing basis, through actual investment and operating results, the REIT requirements including certain asset, income, distribution and stock ownership tests. If the Company fails to qualify as a REIT, and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal, state and local income taxes and may be precluded from qualifying as a REIT for the subsequent four taxable years following the year in which it lost its REIT qualification. Accordingly, the Company’s failure to qualify as a REIT could have a material adverse impact on its results of operations and amounts available for distribution to its stockholders. The dividends paid deduction of a REIT for qualifying dividends to its stockholders is computed using the Company’s taxable income as opposed to net income reported on the financial statements. Taxable income, generally, differs from net income reported on the financial statements because the determination of taxable income is based on tax provisions and not financial accounting principles. The Company may elect to treat certain of its subsidiaries as a taxable REIT subsidiary ("TRS"). In general, a TRS may hold assets and engage in activities that the Company cannot hold or engage in directly and generally may engage in any real estate or non-real estate-related business. A TRS is subject to U.S. federal, state and local corporate income taxes. At December 31, 2018 and 2017, the Company did not treat any of its subsidiaries as a TRS. While a TRS may generate net income, a TRS can declare dividends to the Company which will be included in the Company’s taxable income and necessitate a distribution to its stockholders. Conversely, if the Company retains earnings at a TRS level, no distribution is required and the Company can increase book equity of the consolidated entity. Legislation commonly known as the Tax Cuts and Jobs Act ("TCJA") was signed into law on December 22, 2017. The TCJA makes significant changes to the U.S. federal income tax rules for taxation of individuals and corporations (including REITs), generally effective for taxable years beginning after December 31, 2017. The Company does not expect this legislation to have a significant impact on its consolidated financial statements. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net income (loss) attributable to common stockholders for each period by the weighted-average common shares outstanding during the period for each share class. Diluted net income (loss) per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted to common stock. None of the 50,000 shares of convertible stock (discussed in Note 10) are included in the diluted earnings per share calculations because the necessary conditions for conversion have not been satisfied as of December 31, 2018 (were such date to represent the end of the contingency period). For the purposes of calculating earnings per share, all common shares and per share information in the financial statements have been retroactively adjusted for the effect of any stock dividends and stock splits. For the years ended December 31, 2018 and 2017, common shares potentially issuable to settle distributions payable are excluded from the calculation of diluted earnings per share calculations, as their inclusion would be anti-dilutive. In accordance with ASC 260-10-45, "Earnings Per Share", the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on their relative percentage of each class of shares to the total number of outstanding shares. The Company did not have any participating securities outstanding other than Class A common stock, Class T common stock, Class R common stock, and Class I common stock during the periods presented (see Note 10). |
Organization and Offering Costs | Organization and Offering Costs Organization and offering costs (other than selling commissions, dealer manager fees, and distribution and shareholder servicing fees) of the Company are initially being paid by the Advisor on behalf of the Company. Pursuant to the Advisory Agreement between the Company and the Advisor, the Company is obligated to reimburse the Advisor for organization and other offering costs paid by the Advisor on behalf of the Company, up to an amount equal to 4.0% of gross offering proceeds as of the termination of the initial public offering if the Company raises less than $500.0 million in the primary portion of the initial public offering and 2.5% of gross offering proceeds as of the termination of the initial public offering if the Company raises $500.0 million or more in the primary portion of the initial public offering. On April 13, 2018, the board of directors approved an amendment to the advisory agreement that provides that the Company is not responsible for the repayment of any unreimbursed organization and offering expenses or operational expenses incurred by the Advisor on the Company’s behalf through March 31, 2018 until after the termination of the primary portion of the Company’s ongoing initial public offering. Additionally, the amendment provides that such unreimbursed organization and offering expenses or operational expenses incurred or paid by the Advisor on the Company’s behalf through March 31, 2018 will be reimbursed ratably starting after the termination of the primary portion of the Company’s ongoing initial public offering through April 30, 2021 for organization and offering expenses and through April 30, 2020 for operating expenses. As of December 31, 2018, the Company has incurred approximately $8.5 million $8.2 million $249,000 As of December 31, 2018, the Company has charged approximately $3.5 million $5.0 million Organization costs, which include all expenses incurred by the Company in connection with its formation, including but not limited to legal fees and other costs to incorporate, are expensed as incurred. There can be no assurance that the Company's plans to raise capital will be successful. Prior to the Company breaking escrow, the Advisor incurred approximately $104,266 of formation and other operating expenses on the Company's behalf, which will not be reimbursed to the Advisor. Outstanding Class T shares issued in the Company's primary offering are subject to an annual distribution and shareholder servicing fee in the amount of 1% of the estimated NAV of the share (1% of purchase price prior to June 29, 2018) for five years from the date on which such share is issued. The Company will cease paying the distribution and shareholder servicing fee on each Class T share prior to the fifth anniversary of its issuance on the earliest of the following, should any of these events occur: (i) the date at which, in the aggregate, underwriting compensation from all sources equals 10% of the gross proceeds from the Company's primary offering (i.e., excluding proceeds from sales pursuant to the DRIP); (ii) the date on which the Company lists its common stock on a national securities exchange; and (iii) the date of a merger or other extraordinary transaction in which the Company is a party and in which the common stock is exchanged for cash or other securities. The Company cannot predict if or when any of these events will occur. Outstanding Class R shares issued in the Company's primary offering are also subject to an annual distribution and shareholder servicing fee in the amount of 1% of the estimated NAV of the share (1% of purchase price prior to June 29, 2018). The Company will cease paying the distribution and shareholder servicing fee with respect to Class R shares held in any particular account, and those Class R shares will convert into a number of Class I shares determined by multiplying each Class R share to be converted by the applicable "Conversion Rate," on the earlier of (i) the date after the termination of the primary offering at which, in the aggregate, underwriting compensation from all sources equals 10% of the gross proceeds from its primary offering; (ii) a listing of the Class I shares on a national securities exchange; (iii) a merger or consolidation of the company with or into another entity, or the sale or other disposition of all or substantially all of its assets; and (iv) the end of the month in which the total underwriting compensation (which consists of selling commissions, dealer manager fees and distribution and shareholder servicing fees) paid with respect to such Class R shares purchased in a primary offering is not less than 8.5% (or a lower limit, provided that, in the case of a lower limit, the agreement between the Resource Securities and the broker-dealer in effect at the time Class R shares were first issued to such account sets forth the lower limit and Resource Securities advises the Company's transfer agent of the lower limit in writing) of the gross offering price of those Class R shares purchased in such primary offering (excluding shares purchased through its distribution reinvestment plan). The Company records distribution and shareholder servicing fees as a reduction to additional paid-in capital and the related liability in an amount equal to the maximum fees payable in relation to the Class T and Class R shares on the date the shares are issued. The liability will be relieved over time, as the fees are paid to the Dealer Manager, or as the fees are adjusted (if the fees are no longer payable pursuant to the conditions described above.) For issued Class T shares, the Company has accrued an estimate of total distribution and shareholder servicing fees for the full five year period of $472,106 $160,771 $1,906,660 $399,440 $1.8 million |
Reclassifications | Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the current year presentation. The impact of the reclassifications made to prior year amounts are not material and did not affect net loss. |
Nature of Business and Operat_2
Nature of Business and Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Initial Price Per Share for Each Stock Class | The initial prices per share for each class of shares of the Company's common stock through June 30, 2018 were as follows: Class A Class T Class R Class I Primary Offering Price $ 10.00 $ 9.47 $ 9.52 $ 9.13 Offering Price under the DRIP $ 9.60 $ 9.09 $ 9.14 $ 8.90 On June 27, 2018, the board of directors of the Company determined a net asset value (“NAV”) per share of its common stock of $9.05 based on the estimated market value of the portfolio of investments of the Company as of March 31, 2018. A full description of the methodologies used to calculate the estimated NAV per share as of March 31, 2018, is included in the Current Report on Form 8-K filed with the SEC on June 29, 2018. Based on this estimated NAV per share, the board of directors of the Company established updated offering prices for shares of Class R and Class I common stock to be sold in the primary portion of the initial public offering Class A Class T Class R Class I Primary Offering Price n/a n/a $ 9.68 $ 9.28 Offering Price under the DRIP (1) $ 9.05 $ 9.05 $ 9.05 $ 9.05 (1) Shares of common stock pursuant to our DRIP are sold at the Company’s most estimated NAV per share. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Subsidiaries | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as follows: Subsidiaries Number of Units Property Location Resource Apartment REIT III Holdings, LLC N/A N/A Resource Apartment REIT III OP, LP N/A N/A RRE Payne Place Holdings, LLC 11 Alexandria, VA RRE Bay Club Holdings, LLC 220 Jacksonville, FL RRE Tramore Village Holdings, LLC 324 Austell, GA RRE Matthews Reserve Holdings, LLC 212 Matthews, NC RRE Kensington Holdings, LLC 204 Riverview, FL 971 |
Estimated Useful Life of Assets | The Company anticipates the estimated useful lives of its assets by class as follows: Buildings 27.5 years Building improvements 5.0 to 27.5 years Furniture, fixtures, and equipment 3.0 to 5.0 years Tenant improvements Shorter of lease term or expected useful life Lease intangibles Weighted average remaining term of related leases |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | The following table presents the Company's supplemental cash flow information: Years Ended December 31, 2018 2017 Non-cash operating, financing and investing activities: Offering costs payable to related parties $ 2,081,923 $ 3,319,624 Offering costs payable to third parties (48,897 ) (62,684 ) Distribution and shareholder servicing fee payable to related parties 829,040 936,500 Cash distributions on common stock declared but not yet paid 1,037,799 453,877 Stock issued from distribution reinvestment plan 1,528,416 289,443 Stock dividend issued — 251,567 Subscriptions receivable 1,431,000 413,084 Escrow deposits funded directly by mortgage notes payable 486,106 347,318 Non-cash activity related to acquisitions: Mortgage notes payable used to acquire real property 77,748,894 21,172,682 Cash paid during the year for: Interest $ 2,248,903 $ 274,203 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | The following table presents a summary of the components of the Company's restricted cash: December 31, 2018 2017 Real estate taxes $ 19,988 $ 32,115 Insurance 150,263 8,227 Capital improvements 713,651 151,722 Total $ 883,902 $ 192,064 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | Contract Purchase Price Acquisition Fee (1) Acquisition Costs (2) Total Real Estate, Cost Tramore Village Land $ 6,549,731 $ 144,847 $ 34,503 $ 6,729,081 Building and Improvements 36,220,010 801,006 190,800 37,211,816 Furniture, fixtures and equipment 654,973 14,485 3,450 672,908 Intangible Assets 925,286 20,463 4,874 950,623 $ 44,350,000 $ 980,801 $ 233,627 $ 45,564,428 Matthews Reserve Land $ 4,023,750 $ 88,239 $ 26,799 $ 4,138,788 Building and Improvements 28,738,626 630,223 191,407 29,560,256 Furniture, fixtures and equipment 372,197 8,162 2,479 382,838 Intangible Assets 665,427 14,592 4,432 684,451 $ 33,800,000 $ 741,216 $ 225,117 $ 34,766,333 The Park at Kensington Land $ 3,052,176 $ 66,511 $ 33,588 $ 3,152,275 Building and Improvements 24,634,579 536,818 271,095 25,442,492 Furniture, fixtures and equipment 360,000 7,845 3,962 371,807 Intangible Assets 653,245 14,235 7,189 674,669 $ 28,700,000 $ 625,409 $ 315,834 $ 29,641,243 (1) (2) Represents transaction costs paid at both closing and post-closing, excluding Acquisition Fees. |
Rental Properties, Net (Tables)
Rental Properties, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Summary of Investment in Rental Property | The following table presents the Company's investment in rental properties: December 31, 2018 2017 Land $ 18,761,123 $ 4,740,979 Building and improvements 118,625,834 24,923,994 Furniture, fixtures and equipment 2,202,006 256,992 Construction in progress 265,233 13,395 139,854,196 29,935,360 Less: accumulated depreciation (3,792,610 ) (492,271 ) Total rental property, net $ 136,061,586 $ 29,443,089 |
Mortgage Notes Payable (Tables)
Mortgage Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgage Notes Payable, Net | The following table presents a summary of the Company's mortgage notes payable, net: December 31, 2018 December 31, 2017 Collateral Outstanding Borrowings Deferred Financing Costs, net Carrying Value Outstanding borrowings Deferred Financing Costs, net Carrying Value Payne Place $ 1,560,236 $ (30,220 ) $ 1,530,016 $ 1,594,507 $ (32,126 ) $ 1,562,381 Bay Club 21,520,000 (255,957 ) 21,264,043 21,520,000 (304,011 ) 21,215,989 Tramore Village 32,625,000 (363,784 ) 32,261,216 - - - Matthews Reserve 23,850,000 (315,236 ) 23,534,764 - - - The Park at Kensington 21,760,000 (305,399 ) 21,454,601 - - - Total $ 101,315,236 $ (1,270,596 ) $ 100,044,640 $ 23,114,507 $ (336,137 ) $ 22,778,370 The following table presents additional information about the Company's mortgage notes payable, net: Collateral Maturity Date Annual Interest Rate Average Monthly Debt Service Average Monthly Escrow Payne Place 1/1/2047 3.11% (1)(5) 6,948 2,036 Bay Club 8/1/2024 4.37% (2)(6) 88,769 39,125 Tramore Village 4/1/2025 4.30% (3)(6) 118,239 36,104 Matthews Reserve 9/1/2025 4.47% (4)(6) 90,075 20,127 The Park at Kensington 10/1/2025 4.36% (4)(6) 80,159 43,998 (1) Fixed rate until January 1, 2020, when the fixed rate of the note changes to variable rate based on six-month LIBOR plus 2.25%, with an all-in interest rate floor of 2.50% and ceiling of 9.50%. (2) Variable rate based on one-month LIBOR of 2.50% (at December 31, 2018) plus 1.87%, with a maximum interest rate of 5.75%. (3) Variable rate based on one-month LIBOR of 2.50% (at December 31, 2018) plus 1.80%, with a maximum interest rate of 6.25%. (4) Fixed rate. (5) Through December 18, 2018, RAI co-guaranteed this loan with the Company. See Note 9 for more details. (6) Monthly interest-only payment currently required. |
Schedule of Annual Principal Payments | The following table presents the Company's annual principal payments on outstanding borrowings for each of the next five years ending December 31, and thereafter: 2019 $ 150,016 2020 390,839 2021 915,574 2022 1,720,252 2023 1,797,483 Thereafter 96,341,072 $ 101,315,236 |
Schedule of Estimated Amortization | The following table presents the Company's estimated amortization of the existing deferred financing costs for the next five years ending December 31, and thereafter: 2019 $ 203,776 2020 203,496 2021 201,570 2022 198,321 2023 194,477 Thereafter 268,956 $ 1,270,596 |
Certain Relationships and Rel_2
Certain Relationships and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the Company's amounts receivable from and amounts payable to such related parties: December 31, 2018 2017 Due from related parties: Advisor $ 291 $ 4,192 RAI and affiliate - insurance funds held in escrow 12,799 379 Resource Securities 682 — $ 13,772 $ 4,571 Due to related parties: Advisor Acquisition-related reimbursements $ — $ 6,533 Asset management fees 5,238 — Organization and offering costs 8,249,864 6,167,941 Operating expense reimbursements (including prepaid expenses) 2,700,703 1,810,658 $ 10,955,805 7,985,132 Manager Property management fees 50,912 10,800 Operating expense reimbursements 62,717 3,592 113,629 14,392 RAI Internal audit fee 11,750 3,500 Operating expense reimbursements 14,843 6,625 26,593 10,125 Resource Securities Selling commissions and dealer-manager fees 78,705 22,720 Distribution and shareholder servicing fee 1,818,555 989,515 1,897,260 1,012,235 $ 12,993,287 $ 9,021,884 The following table presents the Company's fees earned by and expenses incurred from such related parties: Years Ended December 31, 2018 2017 Fees earned / expenses incurred: Advisor: Acquisition fees and acquisition related reimbursements (1) $ 2,449,431 $ 641,193 Asset management fees (2) 935,601 159,803 Debt financing fees (3) 391,175 107,600 Organization and offering costs (4) 2,107,337 3,319,624 Operating expense reimbursement (5) 1,205,125 660,219 Manager: Property management fees (2) $ 354,766 $ 55,630 Construction management fees (1) 95,791 1,517 Operating expense reimbursements (6) 59,121 24,858 RAI: Internal audit fee (5) $ 38,750 $ 13,250 Resource Securities: Selling commissions and dealer-manager fees (7) $ 2,668,910 $ 1,709,990 Distribution and shareholder servicing fee (7) 1,303,017 1,022,047 Other: The Planning & Zoning Resource Company (1) $ 4,187 $ 1,079 (1) Capitalized and included in Rental properties, net on the consolidated balance sheets. (2) Included in Management fees - related parties on the consolidated statements of operations and comprehensive loss. (3) Included in Mortgage notes payable on the consolidated balance sheets. (4) Organizational expenses were expensed when incurred and offering costs are included in Deferred offering costs until they are charged to Stockholders' equity on the consolidated balance sheets as proceeds are raised in the offering. (5) Included in General and administrative on the consolidated statements of operations and comprehensive loss and excludes third party costs that are advanced by the Advisor. (6) Included in Rental operating expenses on the consolidated statements of operations and comprehensive loss. (7) Included in Stockholders' equity on the consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of basic and diluted earnings/(loss) per share for the periods presented as follows: Years Ended December 31, 2018 2017 Net loss $ (6,851,783 ) $ (3,131,845 ) Less: Class A common stock cash distributions declared 333,455 253,708 Less: Class T common stock cash distributions declared 477,264 332,545 Less: Class R common stock cash distributions declared 2,458,309 396,088 Less: Class I common stock cash distributions declared 120,331 11,330 Undistributed net loss attributable to common stockholders $ (10,241,142 ) $ (4,125,516 ) Class A common stock: Undistributed net loss attributable to Class A common stockholders $ (1,012,356 ) $ (1,257,702 ) Class A common stock cash distributions declared 333,455 253,708 Net loss attributable to Class A common stockholders $ (678,901 ) $ (1,003,994 ) Net loss per Class A common share, basic and diluted $ (1.08 ) $ (1.79 ) Weighted-average number of Class A common shares outstanding, basic and diluted (1) 627,773 560,110 Class T common stock: Undistributed net loss attributable to Class T common stockholders $ (1,765,273 ) $ (1,756,053 ) Class T common stock cash distributions declared 477,264 332,545 Net loss attributable to Class T common stockholders $ (1,288,009 ) $ (1,423,508 ) Net loss per Class T common share, basic and diluted $ (1.18 ) $ (1.82 ) Weighted-average number of Class T common shares outstanding, basic and diluted 1,094,666 782,047 Class R common stock: Undistributed net loss attributable to Class R common stockholders $ (7,223,274 ) $ (1,073,411 ) Class R common stock cash distributions declared 2,458,309 396,088 Net loss attributable to Class R common stockholders $ (4,764,965 ) $ (677,323 ) Net loss per Class R common share, basic and diluted $ (1.06 ) $ (1.42 ) Weighted-average number of Class R common shares outstanding, basic and diluted 4,479,230 478,037 Class I common stock: Undistributed net loss attributable to Class I common stockholders $ (240,239 ) $ (38,350 ) Class I common stock cash distributions declared 120,331 11,330 Net loss attributable to Class I common stockholders $ (119,908 ) $ (27,020 ) Net loss per Class I common share, basic and diluted $ (0.80 ) $ (1.58 ) Weighted-average number of Class I common shares outstanding, basic and diluted 148,975 17,079 (1) Weighted-average number of shares excludes the convertible stock as they are not participating securities. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stock Issuances | At December 31, 2018, shares of the company's $0.01 par value Class A, Class T, Class R, and Class I common stock have been issued as follows: Class A Class T Class R Class I Shares Gross Proceeds Shares Gross Proceeds Shares Gross Proceeds Shares Gross Proceeds Shared issued through primary offering (1) 586,207 $ 5,601,476 1,049,996 $ 9,943,465 7,052,216 $ 67,558,115 328,958 $ 3,016,305 Shares issued through stock dividends 12,860 — 15,495 — — — — — Shares issued through distribution reinvestment plan 20,426 192,652 48,510 440,289 130,263 1,183,513 646 5,786 Shares issued in conjunction with the Advisor's initial investment, net of 5,000 share conversion 15,000 200,000 — — — — — — Total 634,493 $ 5,994,128 1,114,001 $ 10,383,754 7,182,479 $ 68,741,628 329,604 $ 3,022,091 Shares redeemed and retired — (2,607 ) (945 ) — Total shares issued and outstanding at December 31, 2018 634,493 1,111,394 7,181,534 329,604 (1) Includes 222,222 |
Schedule of Stock Redemptions | During the year ended December 31, 2018, the Company redeemed shares of its outstanding Class T and Class R common stock. During the year ended December 31, 2018, there were no redemptions of Class A or Class I common stock. Redemptions for the year ended December 31, 2018 were as follows: Class T Class R Period Total Number of Shares Redeemed Average Price Paid per Share Total Number of Shares Redeemed Average Price Paid per Share January 2018 — — — — February 2018 — — — — March 2018 2,154 $ 8.59 — — April 2018 — — — — May 2018 — — — — June 2018 — — — — July 2018 — — — — August 2018 — — — — September 2018 — — 945 $ 8.38 October 2018 — — — — November 2018 — — — — December 2018 453 $ 8.37 — — 2,607 945 |
Dividends Declared | The following table presents information regarding the Company's distributions declared and paid to stockholders during the year ended December 31, 2018: Class A Class T Class R Class I Total Distributions declared $ 333,455 $ 477,264 $ 2,458,309 $ 120,331 $ 3,389,359 Distributions reinvested in shares of common stock paid $ 118,858 $ 297,269 $ 1,107,690 $ 4,599 $ 1,528,416 Cash distributions paid 214,334 178,765 810,351 73,571 1,277,021 Total distributions paid $ 333,192 $ 476,034 $ 1,918,041 $ 78,170 $ 2,805,437 |
Fair Value Measures and Discl_2
Fair Value Measures and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents information about the Company's assets measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: Level 1 Level 2 Level 3 Total December 31, 2018 Assets: Interest rate caps $ — $ 2,293 $ — $ 2,293 December 31, 2017 Assets: Interest rate caps $ — $ 3,408 $ — $ 3,408 |
Fair Value, by Balance Sheet Grouping | The carrying and fair values of the Company’s mortgage notes payable- outstanding borrowings, which were not carried at fair value on the consolidated balance sheets at December 31, 2018 and 2017, were as follows: December 31, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Mortgage notes payable- outstanding borrowings $ 101,315,236 $ 100,698,311 $ 23,114,507 $ 22,236,396 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table presents the Company's outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk at December 31, 2018 and 2017: Interest Rate Derivative Number of Instruments Notional Amount Maturity Dates December 31, 2018 Interest rate caps 2 $ 54,145,000 August 1, 2020 and April 1, 2021 December 31, 2017 Interest rate cap 1 $ 21,520,000 August 1, 2020 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of the Company’s derivative financial instruments, as well as their classification on the consolidated balance sheets at December 31, 2018 and 2017: Asset Derivatives Liability Derivatives December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Prepaid expenses and other assets $ 2,293 Prepaid expenses and other assets $ 3,408 — $ — — $ — |
Nature of Business and Operat_3
Nature of Business and Operations (Details) - USD ($) | Aug. 05, 2016 | Jun. 29, 2016 | Aug. 10, 2015 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||
Value of shares of common stock offered | $ 1,100,000,000 | ||||
Consideration received on to date | 86,300,000 | ||||
Issuance of common stock | $ 50,738,036 | $ 30,871,700 | |||
Advisor | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock | $ 200,000 | ||||
Issuance of stock (in shares) | 20,000 | ||||
Common stock exchanged (in shares) | 5,000 | ||||
Class T Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction to date (in shares) | 1,049,996 | ||||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction to date (in shares) | 601,207 | ||||
Class A Common Stock | Resource America, Inc. | |||||
Class of Stock [Line Items] | |||||
Issuance of common stock | $ 2,000,000 | ||||
Issuance of stock (in shares) | 222,222 | ||||
Class R Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction to date (in shares) | 7,052,216 | ||||
Class I Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares issued in transaction to date (in shares) | 328,958 | ||||
Convertible Common Stock | Advisor | |||||
Class of Stock [Line Items] | |||||
Issuance of stock (in shares) | 50,000 | ||||
Primary Offering Price | |||||
Class of Stock [Line Items] | |||||
Value of shares of common stock offered | $ 1,000,000,000 | ||||
Shares issued through distribution reinvestment plan | |||||
Class of Stock [Line Items] | |||||
Value of shares of common stock offered | $ 100,000,000 |
Nature of Business and Operat_4
Nature of Business and Operations - Initial Offering Price (Details) - $ / shares | Jun. 30, 2018 | Jun. 27, 2018 | Jul. 02, 2017 |
Class of Stock [Line Items] | |||
Net asset value | $ 9.05 | ||
Class A | Primary Offering Price | |||
Class of Stock [Line Items] | |||
Primary Offering Price | $ 10 | $ 0 | |
Class A | Offering Price under the DRIP | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.60 | 9.05 | |
Class T | Primary Offering Price | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.47 | 0 | |
Class T | Offering Price under the DRIP | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.09 | 9.05 | |
Class R | Primary Offering Price | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.52 | 9.68 | |
Class R | Offering Price under the DRIP | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.14 | 9.05 | |
Class I | Primary Offering Price | |||
Class of Stock [Line Items] | |||
Primary Offering Price | 9.13 | 9.28 | |
Class I | Offering Price under the DRIP | |||
Class of Stock [Line Items] | |||
Primary Offering Price | $ 8.90 | $ 9.05 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Properties (Details) | Dec. 31, 2018unit |
Property, Plant and Equipment [Line Items] | |
Number of Units | 971 |
RRE Payne Place Holdings, LLC | |
Property, Plant and Equipment [Line Items] | |
Number of Units | 11 |
RRE Bay Club Holdings, LLC | |
Property, Plant and Equipment [Line Items] | |
Number of Units | 220 |
RRE Tramore Village Holdings, LLC | |
Property, Plant and Equipment [Line Items] | |
Number of Units | 324 |
RRE Matthews Reserve Holdings, LLC [Member] | |
Property, Plant and Equipment [Line Items] | |
Number of Units | 212 |
RRE Kensington Holdings, LLC | |
Property, Plant and Equipment [Line Items] | |
Number of Units | 204 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) | Dec. 31, 2018USD ($) | Aug. 05, 2016shares | Dec. 31, 2018USD ($)segmentproperty | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Deposits at various banks | $ 33,000,000 | $ 33,000,000 | ||
Cash, uninsured amount | 31,600,000 | 31,600,000 | ||
Net cash provided by operating activities | 77,251 | $ 966,336 | ||
Net cash provided by investing activities | $ 34,386,721 | 6,703,193 | ||
Number of properties acquired | property | 3 | |||
Improvements and replacements in excess of threshold, capitalized amount (as percent) | 1,000 | $ 1,000 | ||
Improvements and replacements, useful life greater than or equal to one year, capitalization threshold (in years) | 1 year | |||
Construction management fee (as percent) | 5.00% | |||
Impairment of long-lived assets | $ 0 | 0 | ||
Future minimum payments receivable, current | 6,400,000 | 6,400,000 | ||
Future minimum payments receivable, in two years | 94,204 | 94,204 | ||
Future minimum payments receivable, thereafter | 0 | 0 | ||
Allowance for uncollectible receivables | 5,593 | 5,593 | 370 | |
Offering costs charged to APIC, accumulated | 8,500,000 | 8,500,000 | ||
Payments of offering costs | 249,000 | |||
Offering costs charged against equity | 3,500,000 | 6,608,586 | 3,436,423 | |
Due to related parties | 12,993,287 | 12,993,287 | 9,021,884 | |
Advisor | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative advances from related party | 8,200,000 | 8,200,000 | ||
Advisor | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative advances from related party | 8,200,000 | 8,200,000 | ||
Deferred cash or noncash | 5,000,000 | |||
Formation and other operating expenses | 104,266 | |||
Due to related parties | 10,955,805 | 10,955,805 | 7,985,132 | |
Resource Securities | ||||
Property, Plant and Equipment [Line Items] | ||||
Due to related parties | 1,897,260 | 1,897,260 | 1,012,235 | |
Resource Securities | Distribution and shareholder servicing fee | ||||
Property, Plant and Equipment [Line Items] | ||||
Accrued estimate of distribution and shareholder servicing fee | 1,303,017 | 1,022,047 | ||
Due to related parties | $ 1,818,555 | $ 1,818,555 | $ 989,515 | |
Primary Offering Price | Advisor | ||||
Property, Plant and Equipment [Line Items] | ||||
Approximate reimbursement of organization and offering expenses to be reimbursed, option one (as percent) | 4.00% | |||
Offering proceeds, threshold, option one (less than) | $ 500,000,000 | |||
Approximate reimbursement of organization and offering expenses to be reimbursed, option two (as percent) | 2.50% | |||
Offering proceeds, threshold, option two (more than) | $ 500,000,000 | |||
Convertible Stock | ||||
Property, Plant and Equipment [Line Items] | ||||
Issuance of convertible shares (in shares) | shares | 50,000 | |||
Class T Common Stock | ||||
Property, Plant and Equipment [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Annual distribution and shareholder servicing fee, term | 5 years | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | 10.00% | ||
Class T Common Stock | Resource Securities | ||||
Property, Plant and Equipment [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Class T Common Stock | Resource Securities | Distribution and shareholder servicing fee | ||||
Property, Plant and Equipment [Line Items] | ||||
Accrued estimate of distribution and shareholder servicing fee | $ 472,106 | |||
Percentage of shares sold (as percent) | 5.00% | |||
Payment of distribution and shareholder service fee | $ 160,771 | |||
Class R Common Stock | ||||
Property, Plant and Equipment [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | 10.00% | ||
Underwriting compensation as percentage of Class R gross offering price (as a percent) | 8.50% | |||
Class R Common Stock | Resource Securities | ||||
Property, Plant and Equipment [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | 10.00% | ||
Underwriting compensation as percentage of Class R gross offering price (as a percent) | 8.50% | |||
Class R Common Stock | Resource Securities | Distribution and shareholder servicing fee | ||||
Property, Plant and Equipment [Line Items] | ||||
Accrued estimate of distribution and shareholder servicing fee | $ 1,906,660 | |||
Percentage of shares sold (as percent) | 5.00% | |||
Payment of distribution and shareholder service fee | $ 399,440 | |||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining term of lease | 1 month | 1 month | ||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Remaining term of lease | 1 year | 1 year | ||
Accounting Standards Update 2016-18 | ||||
Property, Plant and Equipment [Line Items] | ||||
Net cash provided by operating activities | $ 214,775 | |||
Net cash provided by investing activities | $ 399,106 | |||
Net Assets, Geographic Area | Florida | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk (as percent) | 41.00% | |||
Net Assets, Geographic Area | Georgia | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk (as percent) | 33.00% | |||
Net Assets, Geographic Area | North Carolina | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk (as percent) | 25.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life (in years) | 27 years 6 months |
Building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life (in years) | 5 years |
Building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life (in years) | 27 years 6 months |
Furniture, fixtures, and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life (in years) | 3 years |
Furniture, fixtures, and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Real estate investments, useful life (in years) | 5 years |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Non-cash operating, financing and investing activities: | ||
Offering costs payable to related parties | $ 2,081,923 | $ 3,319,624 |
Offering costs payable to third parties | (48,897) | (62,684) |
Distribution and shareholder servicing fee payable to related parties | 829,040 | 936,500 |
Cash distributions on common stock declared but not yet paid | 1,037,799 | 453,877 |
Stock issued from distribution reinvestment plan | 1,528,416 | 289,443 |
Stock dividend issued | 251,567 | |
Subscriptions receivable | 1,431,000 | 413,084 |
Escrow deposits funded directly by mortgage notes payable | 486,106 | 347,318 |
Non-cash activity related to acquisitions: | ||
Mortgage notes payable used to acquire real property | 77,748,894 | 21,172,682 |
Cash paid during the year for: | ||
Interest | $ 2,248,903 | $ 274,203 |
Restricted Cash - Schedule of R
Restricted Cash - Schedule of Restricted Cash (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 883,902 | $ 192,064 |
Real Estate Taxes | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 19,988 | 32,115 |
Insurance | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 150,263 | 8,227 |
Capital Improvements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 713,651 | $ 151,722 |
Restricted Cash - Narrative (De
Restricted Cash - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Abstract] | ||
Unrestricted cash designated for capital expenditures | $ 9.2 | $ 1.9 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) | Dec. 31, 2018unit | Sep. 14, 2018ft²unit | Aug. 29, 2018ft²unit | Mar. 22, 2018ft²unit |
Business Acquisition [Line Items] | ||||
Number of units in property | 971 | |||
Tramore Village Apartments | Austell, Georgia | ||||
Business Acquisition [Line Items] | ||||
Number of units in property | 324 | |||
Area of property (in square feet) | ft² | 348,804 | |||
Percentage of area leased (as percent) | 96.00% | |||
Matthews Reserve | Matthews, North Carolina | ||||
Business Acquisition [Line Items] | ||||
Number of units in property | 212 | |||
Area of property (in square feet) | ft² | 199,744 | |||
Percentage of area leased (as percent) | 92.00% | |||
The Park at Kensington | Riverview, Florida | ||||
Business Acquisition [Line Items] | ||||
Number of units in property | 204 | |||
Area of property (in square feet) | ft² | 205,471 | |||
Percentage of area leased (as percent) | 95.00% |
Acquisitions - Schedule of Tota
Acquisitions - Schedule of Total Revenues, Losses, and Acquisition Costs (Details) - USD ($) | Sep. 14, 2018 | Aug. 29, 2018 | Mar. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Land | $ 18,761,123 | $ 4,740,979 | |||
Building and Improvements | 118,625,834 | 24,923,994 | |||
Furniture, fixtures and equipment | 2,202,006 | 256,992 | |||
Intangible Assets | 707,825 | 321,468 | |||
Total assets | $ 178,120,542 | $ 59,727,498 | |||
Tramore Village Apartments | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Intangible Assets | $ 925,286 | ||||
Acquisition Fee, Intangible Assets | 20,463 | ||||
Acquisition Costs, Intangible Assets | 4,874 | ||||
Contract Purchase Price | 44,350,000 | ||||
Acquisition Fee | 980,801 | ||||
Acquisition Costs | 233,627 | ||||
Land | 6,729,081 | ||||
Building and Improvements | 37,211,816 | ||||
Furniture, fixtures and equipment | 672,908 | ||||
Intangible Assets | 950,623 | ||||
Total assets | 45,564,428 | ||||
Matthews Reserve | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Intangible Assets | $ 665,427 | ||||
Acquisition Fee, Intangible Assets | 14,592 | ||||
Acquisition Costs, Intangible Assets | 4,432 | ||||
Contract Purchase Price | 33,800,000 | ||||
Acquisition Fee | 741,216 | ||||
Acquisition Costs | 225,117 | ||||
Land | 4,138,788 | ||||
Building and Improvements | 29,560,256 | ||||
Furniture, fixtures and equipment | 382,838 | ||||
Intangible Assets | 684,451 | ||||
Total assets | 34,766,333 | ||||
The Park at Kensington | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Intangible Assets | $ 653,245 | ||||
Acquisition Fee, Intangible Assets | 14,235 | ||||
Acquisition Costs, Intangible Assets | 7,189 | ||||
Contract Purchase Price | 28,700,000 | ||||
Acquisition Fee | 625,409 | ||||
Acquisition Costs | 315,834 | ||||
Land | 3,152,275 | ||||
Building and Improvements | 25,442,492 | ||||
Furniture, fixtures and equipment | 371,807 | ||||
Intangible Assets | 674,669 | ||||
Total assets | 29,641,243 | ||||
Land | Tramore Village Apartments | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 6,549,731 | ||||
Acquisition Fee, Property, Plant and Equipment | 144,847 | ||||
Acquisition Costs, Property, Plant and Equipment | 34,503 | ||||
Land | Matthews Reserve | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 4,023,750 | ||||
Acquisition Fee, Property, Plant and Equipment | 88,239 | ||||
Acquisition Costs, Property, Plant and Equipment | 26,799 | ||||
Land | The Park at Kensington | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 3,052,176 | ||||
Acquisition Fee, Property, Plant and Equipment | 66,511 | ||||
Acquisition Costs, Property, Plant and Equipment | 33,588 | ||||
Building and Improvements | Tramore Village Apartments | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 36,220,010 | ||||
Acquisition Fee, Property, Plant and Equipment | 801,006 | ||||
Acquisition Costs, Property, Plant and Equipment | 190,800 | ||||
Building and Improvements | Matthews Reserve | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 28,738,626 | ||||
Acquisition Fee, Property, Plant and Equipment | 630,223 | ||||
Acquisition Costs, Property, Plant and Equipment | 191,407 | ||||
Building and Improvements | The Park at Kensington | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 24,634,579 | ||||
Acquisition Fee, Property, Plant and Equipment | 536,818 | ||||
Acquisition Costs, Property, Plant and Equipment | 271,095 | ||||
Furniture, fixtures and equipment | Tramore Village Apartments | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 654,973 | ||||
Acquisition Fee, Property, Plant and Equipment | 14,485 | ||||
Acquisition Costs, Property, Plant and Equipment | $ 3,450 | ||||
Furniture, fixtures and equipment | Matthews Reserve | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 372,197 | ||||
Acquisition Fee, Property, Plant and Equipment | 8,162 | ||||
Acquisition Costs, Property, Plant and Equipment | $ 2,479 | ||||
Furniture, fixtures and equipment | The Park at Kensington | |||||
Business Acquisition [Line Items] | |||||
Contract Purchase Price, Property, Plant and Equipment | 360,000 | ||||
Acquisition Fee, Property, Plant and Equipment | 7,845 | ||||
Acquisition Costs, Property, Plant and Equipment | $ 3,962 |
Acquisitions - Schedule of To_2
Acquisitions - Schedule of Total Revenues, Losses, and Acquisition Costs (Parenthetical) (Details) | Dec. 31, 2018 |
Business Combinations [Abstract] | |
Acquisition fee paid to advisor (as percent) | 2.00% |
Rental Properties, Net (Details
Rental Properties, Net (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate [Abstract] | ||
Land | $ 18,761,123 | $ 4,740,979 |
Building and improvements | 118,625,834 | 24,923,994 |
Furniture, fixtures and equipment | 2,202,006 | 256,992 |
Construction in progress | 265,233 | 13,395 |
Rental property, at cost | 139,854,196 | 29,935,360 |
Less: accumulated depreciation | (3,792,610) | (492,271) |
Total rental property, net | $ 136,061,586 | $ 29,443,089 |
Rental Properties, Net - Narrat
Rental Properties, Net - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate [Abstract] | ||
Depreciation expense | $ 3,300,000 | $ 478,920 |
Loss on disposal of assets | $ 108,844 | $ 186,078 |
Identified Intangible Assets,_2
Identified Intangible Assets, Net (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | ||
Value of in-place leases, net of accumulated amortization | $ 707,825 | $ 321,468 |
Amortization of intangible assets | 1,900,000 | 429,704 |
In-place leases | ||
Finite Lived Intangible Assets [Line Items] | ||
Value of in-place leases, net of accumulated amortization | 707,825 | 321,468 |
Accumulated amortization | $ 2,400,000 | $ 451,775 |
Weighted average remaining life of rental leases | 4 months | |
Expected amortization for next twelve months | $ 707,825 | |
Expected amortization for in-place leases after 12 months | $ 0 |
Mortgage Notes Payable - Summar
Mortgage Notes Payable - Summary of Mortgage Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 101,315,236 | |
Deferred Financing Costs, net | (1,270,596) | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 101,315,236 | $ 23,114,507 |
Deferred Financing Costs, net | (1,270,596) | (336,137) |
Carrying Value | 100,044,640 | 22,778,370 |
Mortgages | Payne Place | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 1,560,236 | 1,594,507 |
Deferred Financing Costs, net | (30,220) | (32,126) |
Carrying Value | $ 1,530,016 | 1,562,381 |
Maturity Date | Jan. 1, 2047 | |
Annual Interest Rate (as percent) | 3.11% | |
Average Monthly Debt Service | $ 6,948 | |
Average Monthly Escrow | 2,036 | |
Mortgages | Bay Club | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 21,520,000 | 21,520,000 |
Deferred Financing Costs, net | (255,957) | (304,011) |
Carrying Value | $ 21,264,043 | 21,215,989 |
Maturity Date | Aug. 1, 2024 | |
Annual Interest Rate (as percent) | 4.37% | |
Average Monthly Debt Service | $ 88,769 | |
Average Monthly Escrow | 39,125 | |
Mortgages | Tramore Village | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 32,625,000 | 0 |
Deferred Financing Costs, net | (363,784) | 0 |
Carrying Value | $ 32,261,216 | 0 |
Maturity Date | Apr. 1, 2025 | |
Annual Interest Rate (as percent) | 4.30% | |
Average Monthly Debt Service | $ 118,239 | |
Average Monthly Escrow | 36,104 | |
Mortgages | Matthews Reserve | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 23,850,000 | 0 |
Deferred Financing Costs, net | (315,236) | 0 |
Carrying Value | $ 23,534,764 | 0 |
Maturity Date | Sep. 1, 2025 | |
Annual Interest Rate (as percent) | 4.47% | |
Average Monthly Debt Service | $ 90,075 | |
Average Monthly Escrow | 20,127 | |
Mortgages | The Park at Kensington | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | 21,760,000 | 0 |
Deferred Financing Costs, net | (305,399) | 0 |
Carrying Value | $ 21,454,601 | $ 0 |
Maturity Date | Oct. 1, 2025 | |
Annual Interest Rate (as percent) | 4.36% | |
Average Monthly Debt Service | $ 80,159 | |
Average Monthly Escrow | $ 43,998 |
Mortgage Notes Payable - Summ_2
Mortgage Notes Payable - Summary of Mortgage Notes Payable (Parenthetical) (Details) - Mortgages | 12 Months Ended |
Dec. 31, 2018 | |
Payne Place | Minimum | |
Debt Instrument [Line Items] | |
Effective rate (as percent) | 2.50% |
Payne Place | Maximum | |
Debt Instrument [Line Items] | |
Effective rate (as percent) | 9.50% |
Payne Place | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 2.25% |
Bay Club | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 1.87% |
Effective rate (as percent) | 5.75% |
Bay Club | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 2.50% |
Tramore Village | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 1.80% |
Effective rate (as percent) | 6.25% |
Tramore Village | LIBOR | |
Debt Instrument [Line Items] | |
Basis spread (as percent) | 2.50% |
Mortgage Notes Payable - Narrat
Mortgage Notes Payable - Narrative (Details) - USD ($) | Sep. 14, 2018 | Aug. 29, 2018 | Mar. 22, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Amortization of deferred financing costs | $ 126,856 | $ 22,314 | |||
Accumulated amortization of deferred financing costs | 149,170 | 22,314 | |||
Interest Expense | |||||
Debt Instrument [Line Items] | |||||
Amortization of deferred financing costs | $ 126,856 | $ 22,314 | |||
Mortgages | Tramore Village Apartments | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Face amount of debt | $ 32,600,000 | ||||
Basis spread (as percent) | 1.80% | ||||
Effective rate (as percent) | 6.25% | ||||
Interest only payment period | 36 months | ||||
Periodic principal and interest payments, period | 30 years | ||||
Prepayment premium (as a percentage) | 1.00% | ||||
Mortgages | Matthews Reserve | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Face amount of debt | $ 23,900,000 | ||||
Effective rate (as percent) | 4.47% | ||||
Interest only payment period | 36 months | ||||
Periodic principal and interest payments, period | 30 years | ||||
Prepayment premium (as a percentage) | 1.00% | ||||
Mortgages | The Park at Kensington | |||||
Debt Instrument [Line Items] | |||||
Debt term | 7 years | ||||
Face amount of debt | $ 21,800,000 | ||||
Effective rate (as percent) | 4.36% | ||||
Interest only payment period | 36 months | ||||
Periodic principal and interest payments, period | 30 years | ||||
Prepayment premium (as a percentage) | 1.00% |
Mortgage Notes Payable - Annual
Mortgage Notes Payable - Annual Principal Payments on Mortgage Notes Payable (Details) | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 150,016 |
2020 | 390,839 |
2021 | 915,574 |
2022 | 1,720,252 |
2023 | 1,797,483 |
Thereafter | 96,341,072 |
Total principal payments | $ 101,315,236 |
Mortgage Notes Payable - Amorti
Mortgage Notes Payable - Amortization of Deferred Financing Costs (Details) | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 203,776 |
2020 | 203,496 |
2021 | 201,570 |
2022 | 198,321 |
2023 | 194,477 |
Thereafter | 268,956 |
Deferred financing costs | $ 1,270,596 |
Certain Relationships and Rel_3
Certain Relationships and Related Party Transactions - Narrative (Details) | Apr. 23, 2017USD ($) | Dec. 31, 2018USD ($)apartment_complex | Dec. 31, 2017USD ($) | Apr. 22, 2017USD ($) |
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 13,772 | $ 4,571 | ||
Insurance pool (up to) | 2,500,000 | |||
Property loss pool, deductible amount per incident | 25,000 | |||
Catastrophic insurance (up to) | 250,000,000 | |||
General liability pool, deductible amount per incident | $ 25,000 | $ 50,000 | ||
General liability insurance, insured limit for general liability policy (up to) | $ 76,000,000 | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Catastrophic insurance, deductible amount per incident | 100,000 | |||
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Catastrophic insurance, deductible amount per incident | $ 25,000 | |||
Class R Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | |||
Underwriting compensation as percentage of Class R gross offering price (as a percent) | 8.50% | |||
Class T Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | |||
Advisor | ||||
Related Party Transaction [Line Items] | ||||
Cumulative advances from related party | $ 8,200,000 | |||
Term of advisory agreement | 1 year | |||
Acquisition fee (as a percent) | 2.00% | |||
Monthly asset management fee (as a percent) | 0.083% | |||
Disposition fee, as a percentage of the aggregate brokerage commission paid (as percent) | 50.00% | |||
Disposition fee (as percent) | 2.00% | |||
Debt financing fee (as percent) | 0.50% | |||
Formation and other operating expenses | $ 104,266 | |||
Due from related parties | $ 291 | 4,192 | ||
Advisor | Primary Offering Price | ||||
Related Party Transaction [Line Items] | ||||
Approximate reimbursement of organization and offering expenses to be reimbursed, option one (as percent) | 4.00% | |||
Offering proceeds, threshold, option one (less than) | $ 500,000,000 | |||
Approximate reimbursement of organization and offering expenses to be reimbursed, option two (as percent) | 2.50% | |||
Manager | ||||
Related Party Transaction [Line Items] | ||||
Property management fee (as percent) | 4.50% | |||
Due from related parties | $ 291 | 4,192 | ||
Construction management fee (as percent) | 5.00% | |||
Debt servicing fee (as percent) | 2.75% | |||
Resource Securities | ||||
Related Party Transaction [Line Items] | ||||
Due from related parties | $ 682 | |||
Resource Securities | Class R Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Triggering event to cease payment, percentage of gross proceeds (as percent) | 10.00% | |||
Underwriting compensation as percentage of Class R gross offering price (as a percent) | 8.50% | |||
Resource Securities | Class R Common Stock | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Selling commission (as percent) | 3.00% | |||
Dealer manager fee (as percent) | 3.50% | |||
Selling commission (as percent) | 5.50% | |||
Resource Securities | Class I Common Stock | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Dealer manager fee (as percent) | 1.50% | |||
Resource Securities | Class A Common Stock | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Selling commission (as percent) | 7.00% | |||
Dealer manager fee (as percent) | 3.00% | |||
Resource Securities | Class T Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Annual fee, percentage of purchase price of common stock sold (as percent) | 1.00% | |||
Period of time to receive annual fee from the date each share is issued | 5 years | |||
Percentage of purchase price of common stock sold, total (as percent) | 5.00% | |||
Resource Securities | Class T Common Stock | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Selling commission (as percent) | 2.00% | |||
Resource America, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Payment into the insurance pools | $ 53,119 | |||
Resource America, Inc. | Payne Place | Mortgages | ||||
Related Party Transaction [Line Items] | ||||
Number of apartment complexes owned | apartment_complex | 5 | |||
Minimum net worth | $ 50,000,000 | |||
Liquidity (no less than) | $ 5,000,000 | |||
Aggregate portfolio leverage (as percent) (no more than) | 65.00% | |||
The Planning and Zoning Resource Company | ||||
Related Party Transaction [Line Items] | ||||
Payment for zoning report | $ 4,187 | $ 1,079 | ||
Resource America, Inc. and Affiliates | ||||
Related Party Transaction [Line Items] | ||||
Maximum amount covered for liability insurance program | $ 100,000,000 |
Certain Relationships and Rel_4
Certain Relationships and Related Party Transactions - Schedule of Fees Earned and Expenses Incurred (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Due from related parties | $ 13,772 | $ 4,571 |
Due to related parties | 12,993,287 | 9,021,884 |
Advisor | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 291 | 4,192 |
Due to related parties | 10,955,805 | 7,985,132 |
Advisor | Acquisition-related reimbursements | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 0 | 6,533 |
Fees earned / expenses incurred | 2,449,431 | 641,193 |
Advisor | Asset management fees | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 5,238 | 0 |
Fees earned / expenses incurred | 935,601 | 159,803 |
Advisor | Debt financing fees | ||
Related Party Transaction [Line Items] | ||
Fees earned / expenses incurred | 391,175 | 107,600 |
Advisor | Organization and offering costs | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 8,249,864 | 6,167,941 |
Fees earned / expenses incurred | 2,107,337 | 3,319,624 |
Advisor | Operating expense reimbursements | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 2,700,703 | 1,810,658 |
Fees earned / expenses incurred | 1,205,125 | 660,219 |
Resource Securities | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 682 | |
Due to related parties | 1,897,260 | 1,012,235 |
Resource Securities | Selling commissions and dealer-manager fees | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 78,705 | 22,720 |
Fees earned / expenses incurred | 2,668,910 | 1,709,990 |
Resource Securities | Distribution and shareholder servicing fee | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 1,818,555 | 989,515 |
Fees earned / expenses incurred | 1,303,017 | 1,022,047 |
Manager | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 291 | 4,192 |
Due to related parties | 113,629 | 14,392 |
Manager | Asset management fees | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 50,912 | 10,800 |
Fees earned / expenses incurred | 354,766 | 55,630 |
Manager | Operating expense reimbursements | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 62,717 | 3,592 |
Manager | Construction management fees | ||
Related Party Transaction [Line Items] | ||
Fees earned / expenses incurred | 95,791 | 1,517 |
Manager | Operating expense reimbursements | ||
Related Party Transaction [Line Items] | ||
Fees earned / expenses incurred | 59,121 | 24,858 |
RAI | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 26,593 | 10,125 |
RAI | RAI and affiliate - insurance funds held in escrow | ||
Related Party Transaction [Line Items] | ||
Due from related parties | 12,799 | 379 |
RAI | Internal audit fee | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 11,750 | 3,500 |
Fees earned / expenses incurred | 38,750 | 13,250 |
RAI | Operating expense reimbursements | ||
Related Party Transaction [Line Items] | ||
Due to related parties | 14,843 | 6,625 |
The Planning and Zoning Resource Company | ||
Related Party Transaction [Line Items] | ||
Fees earned / expenses incurred | $ 4,187 | $ 1,079 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net loss | $ (6,851,783) | $ (3,131,845) |
Undistributed net loss attributable to common stockholders | (10,241,142) | (4,125,516) |
Common stock cash distributions declared | 3,389,359 | 993,671 |
Class A Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Undistributed net loss attributable to common stockholders | (1,012,356) | (1,257,702) |
Common stock cash distributions declared | 333,455 | 253,708 |
Net loss attributable to common stockholders | $ (678,901) | $ (1,003,994) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.08) | $ (1.79) |
Weighted-average shares outstanding, basic and diluted (in shares) | 627,773 | 560,110 |
Class T Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Undistributed net loss attributable to common stockholders | $ (1,765,273) | $ (1,756,053) |
Common stock cash distributions declared | 477,264 | 332,545 |
Net loss attributable to common stockholders | $ (1,288,009) | $ (1,423,508) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.18) | $ (1.82) |
Weighted-average shares outstanding, basic and diluted (in shares) | 1,094,666 | 782,047 |
Class R Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Undistributed net loss attributable to common stockholders | $ (7,223,274) | $ (1,073,411) |
Common stock cash distributions declared | 2,458,309 | 396,088 |
Net loss attributable to common stockholders | $ (4,764,965) | $ (677,323) |
Net loss per common share, basic and diluted (in dollars per share) | $ (1.06) | $ (1.42) |
Weighted-average shares outstanding, basic and diluted (in shares) | 4,479,230 | 478,037 |
Class I Common Stock | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Undistributed net loss attributable to common stockholders | $ (240,239) | $ (38,350) |
Common stock cash distributions declared | 120,331 | 11,330 |
Net loss attributable to common stockholders | $ (119,908) | $ (27,020) |
Net loss per common share, basic and diluted (in dollars per share) | $ (0.80) | $ (1.58) |
Weighted-average shares outstanding, basic and diluted (in shares) | 148,975 | 17,079 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Aug. 05, 2016shares | Dec. 31, 2018USD ($)event$ / sharesshares | Nov. 30, 2018shares | Oct. 31, 2018shares | Sep. 30, 2018shares | Aug. 31, 2018shares | Jul. 31, 2018shares | Jun. 30, 2018shares | May 31, 2018shares | Apr. 30, 2018shares | Mar. 31, 2018shares | Feb. 28, 2018shares | Jan. 31, 2018shares | Apr. 25, 2017shares | Feb. 22, 2017shares | Oct. 07, 2016shares | Jun. 28, 2018$ / shares | Mar. 28, 2019$ / shares | Dec. 31, 2018USD ($)event$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Jun. 28, 2017$ / sharesshares |
Class of Stock [Line Items] | |||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | ||||||||||||||||||
Common stock, conversion terms, percent of paid distributions equal to price at which shares were originally sold (as percent) | 100.00% | ||||||||||||||||||||
Percent of annual return on shares at price equal to distributions paid (as percent) | 6.00% | ||||||||||||||||||||
Number of possible triggering events | event | 2 | 2 | |||||||||||||||||||
Conversion basis | 0.00002 | ||||||||||||||||||||
Triggering event, option one (as percent) | 15.00% | ||||||||||||||||||||
Percentage of non-compounded annual return, option one (as percent) | 6.00% | ||||||||||||||||||||
Number of triggering events | event | 0 | 0 | |||||||||||||||||||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 125,000,000 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Maximum shares redeemable as percent of the weighted-average common stock outstanding (as percent) | 5.00% | ||||||||||||||||||||
Percent of operating cash flow (as percent) | 1.00% | ||||||||||||||||||||
Notice period for amending share redemption program | 30 days | ||||||||||||||||||||
Dividends declared, daily accrual amount (in dollars per share) | $ / shares | $ 0.001434521 | ||||||||||||||||||||
Distributions payable | $ | $ 1,037,799 | $ 1,037,799 | $ 453,877 | ||||||||||||||||||
Common Stock | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Authorized stock dividend of common stock (in shares) | 0.01 | 0.01 | 0.005 | ||||||||||||||||||
Forecast | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Dividends declared, daily accrual amount (in dollars per share) | $ / shares | $ 0.001458630 | ||||||||||||||||||||
Convertible Stock | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 | 50,000 | ||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Preferred stock, shares issued (in shares) | 50,000 | 50,000 | 50,000 | ||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 50,000 | 50,000 | 50,000 | ||||||||||||||||||
Issuance of convertible shares (in shares) | 50,000 | ||||||||||||||||||||
Class A | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Number of shares exchanged (in shares) | 5,000 | ||||||||||||||||||||
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 0 | ||||||||||||||||||||
Class A | Common Stock | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Authorized stock dividend of common stock (in shares) | (10,956) | ||||||||||||||||||||
Class T | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 453 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,154 | 0 | 0 | 2,607 | ||||||||
Class T | Common Stock | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 2,607 | ||||||||||||||||||||
Authorized stock dividend of common stock (in shares) | (14,993) | ||||||||||||||||||||
Class R | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 0 | 0 | 0 | 945 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 945 | ||||||||
Class R | Common Stock | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 945 | ||||||||||||||||||||
Class I | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 | 75,000,000 | ||||||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||||
Total Number of Shares Redeemed (in shares) | 0 |
Equity - Schedule of Stock Issu
Equity - Schedule of Stock Issuances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 634,493 | 621,754 |
Gross Proceeds | $ 5,994,128 | |
Total | 634,493 | |
Shares redeemed and retired | 0 | |
Total shares outstanding (in shares) | 634,493 | 621,754 |
Class T | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 1,111,394 | 1,081,226 |
Gross Proceeds | $ 10,383,754 | |
Total | 1,114,001 | |
Shares redeemed and retired | (2,607) | |
Total shares outstanding (in shares) | 1,111,394 | 1,081,226 |
Class R | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 7,181,534 | 2,058,008 |
Gross Proceeds | $ 68,741,628 | |
Total | 7,182,479 | |
Shares redeemed and retired | (945) | |
Total shares outstanding (in shares) | 7,181,534 | 2,058,008 |
Class I | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 329,604 | 36,118 |
Gross Proceeds | $ 3,022,091 | |
Total | 329,604 | |
Shares redeemed and retired | 0 | |
Total shares outstanding (in shares) | 329,604 | 36,118 |
Shared issued through primary offering | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 586,207 | |
Gross Proceeds | $ 5,601,476 | |
Shared issued through primary offering | Class T | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 1,049,996 | |
Gross Proceeds | $ 9,943,465 | |
Shared issued through primary offering | Class R | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 7,052,216 | |
Gross Proceeds | $ 67,558,115 | |
Shared issued through primary offering | Class I | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 328,958 | |
Gross Proceeds | $ 3,016,305 | |
Shares issued through stock dividends | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 12,860 | |
Gross Proceeds | $ 0 | |
Shares issued through stock dividends | Class T | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 15,495 | |
Gross Proceeds | $ 0 | |
Shares issued through stock dividends | Class R | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 0 | |
Gross Proceeds | $ 0 | |
Shares issued through stock dividends | Class I | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 0 | |
Gross Proceeds | $ 0 | |
Shares issued through distribution reinvestment plan | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 20,426 | |
Gross Proceeds | $ 192,652 | |
Shares issued through distribution reinvestment plan | Class T | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 48,510 | |
Gross Proceeds | $ 440,289 | |
Shares issued through distribution reinvestment plan | Class R | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 130,263 | |
Gross Proceeds | $ 1,183,513 | |
Shares issued through distribution reinvestment plan | Class I | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 646 | |
Gross Proceeds | $ 5,786 | |
Advisor | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 15,000 | |
Gross Proceeds | $ 200,000 | |
Advisor | Class T | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 0 | |
Gross Proceeds | $ 0 | |
Advisor | Class R | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 0 | |
Gross Proceeds | $ 0 | |
Advisor | Class I | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 0 | |
Gross Proceeds | $ 0 |
Equity - Schedule of Stock Is_2
Equity - Schedule of Stock Issuances (Parenthetical) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 634,493 | 621,754 |
Advisor | ||
Class of Stock [Line Items] | ||
Issuance of convertible shares (in shares) | 5,000 | |
Advisor | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 15,000 | |
Shared issued through primary offering | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 586,207 | |
Advisor | Shared issued through primary offering | Class A | ||
Class of Stock [Line Items] | ||
Total shares issued (in shares) | 222,222 |
Equity - Schedule of Stock Rede
Equity - Schedule of Stock Redemptions (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Nov. 30, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2018 | |
Class T | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Total Number of Shares Redeemed (in shares) | 453 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,154 | 0 | 0 | 2,607 |
Average Price Paid per Share (in dollars per share) | $ 8.37 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 8.59 | $ 0 | $ 0 | |
Class R | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Total Number of Shares Redeemed (in shares) | 0 | 0 | 0 | 945 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 945 |
Average Price Paid per Share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 8.38 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Equity - Schedule of Distributi
Equity - Schedule of Distributions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Distributions declared | $ 3,389,359 | |
Distributions reinvested in shares of common stock paid | 1,528,416 | $ 289,443 |
Cash distributions paid | 1,277,021 | |
Total distributions paid | 2,805,437 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Distributions declared | 333,455 | |
Distributions reinvested in shares of common stock paid | 118,858 | |
Cash distributions paid | 214,334 | |
Total distributions paid | 333,192 | |
Class T Common Stock | ||
Class of Stock [Line Items] | ||
Distributions declared | 477,264 | |
Distributions reinvested in shares of common stock paid | 297,269 | |
Cash distributions paid | 178,765 | |
Total distributions paid | 476,034 | |
Class R Common Stock | ||
Class of Stock [Line Items] | ||
Distributions declared | 2,458,309 | |
Distributions reinvested in shares of common stock paid | 1,107,690 | |
Cash distributions paid | 810,351 | |
Total distributions paid | 1,918,041 | |
Class I Common Stock | ||
Class of Stock [Line Items] | ||
Distributions declared | 120,331 | |
Distributions reinvested in shares of common stock paid | 4,599 | |
Cash distributions paid | 73,571 | |
Total distributions paid | $ 78,170 |
Fair Value Measures and Discl_3
Fair Value Measures and Disclosures - Narrative (Details) - Fair Value, Measurements, Recurring - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | $ 2,293 | $ 3,408 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | 2,293 | $ 3,408 |
Tramore Village Apartments | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | $ 28,500 |
Fair Value Measures and Discl_4
Fair Value Measures and Disclosures - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | $ 2,293 | $ 3,408 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | 2,293 | 3,408 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate caps | $ 0 | $ 0 |
Fair Value Measures and Discl_5
Fair Value Measures and Disclosures - Schedule of Carrying and Fair Values (Details) - Payne Place - Mortgages - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage notes payable- outstanding borrowings | $ 101,315,236 | $ 23,114,507 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage notes payable- outstanding borrowings | $ 100,698,311 | $ 22,236,396 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Hedge ineffectiveness in earnings | $ 174 | $ 0 |
Amount estimated to be reclassified | $ 10,511 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Derivative Instruments (Details) - Cash Flow Hedging - Interest Rate Cap | 12 Months Ended | |
Dec. 31, 2018USD ($)instrument | Dec. 31, 2017USD ($)instrument | |
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | instrument | 2 | 1 |
Notional Amount | $ | $ 54,145,000 | $ 21,520,000 |
Maturity Dates | Aug. 1, 2020 | |
Maturity Dates, Earliest | Aug. 1, 2020 | |
Maturity Dates, Latest | Apr. 1, 2021 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Schedule of Fair Values of Derivative Instruments on the Balance Sheet (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 0 | $ 0 |
Prepaid Expenses And Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 2,293 | $ 3,408 |
Operating Expense Limitation (D
Operating Expense Limitation (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Limitation on total operating expenses, percentage of average invested assets for the four most recently completed fiscal quarters | 2.00% |
Limitation on total operating expenses, percentage of net income for the four most recently completed fiscal quarters | 25.00% |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 31, 2019$ / shares | Feb. 12, 2019USD ($)property | Jun. 28, 2018$ / shares |
Subsequent Event [Line Items] | |||
Dividends declared, daily accrual amount (in dollars per share) | $ / shares | $ 0.001434521 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Dividends declared, daily accrual amount (in dollars per share) | $ / shares | $ 0.001469178 | ||
Dividend payable description | , the Company’s Board of Directors authorized a cash distribution on the outstanding shares of all classes of common stock based on daily record dates for the period from March 29, 2019 through June 27, 2019, which the Company expects to pay on April 30, 2019, May 31, 2019, and June 28, 2019. | ||
Subsequent Event | Arlington, Texas | Wimbledon Oaks | |||
Subsequent Event [Line Items] | |||
Number of properties owned | property | 248 | ||
Acquisition price | $ | $ 25.9 | ||
Mortgage on property | $ | $ 18.4 |
Schedule III, Real Estate and_2
Schedule III, Real Estate and Accumulated Depreciation - Schedule of Real Estate Owned (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | $ 101,315,236 | ||
Initial cost to company ,Land | 18,761,123 | ||
Initial cost to company, Building and Improvements | 118,927,895 | ||
Initial cost to Company | 137,689,018 | ||
Cost capitalized subsequent to acquisition | 2,165,178 | ||
Gross Amount at which carried at close of period, Land | 18,761,123 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 121,093,073 | ||
Gross Amount at which carried at close of period | 139,854,196 | $ 29,935,360 | $ 2,459,266 |
Accumulated Depreciation | (3,792,610) | $ (492,271) | $ (13,431) |
Payne Place | Alexandria, Virginia | |||
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | 1,560,236 | ||
Initial cost to company ,Land | 1,419,898 | ||
Initial cost to company, Building and Improvements | 1,030,161 | ||
Initial cost to Company | 2,450,059 | ||
Cost capitalized subsequent to acquisition | 37,076 | ||
Gross Amount at which carried at close of period, Land | 1,419,898 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 1,067,237 | ||
Gross Amount at which carried at close of period | 2,487,135 | ||
Accumulated Depreciation | $ (101,793) | ||
Date Acquired | Aug. 19, 2016 | ||
Payne Place | Alexandria, Virginia | Minimum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 3 years | ||
Payne Place | Alexandria, Virginia | Maximum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 27 years 6 months | ||
Bay Club | Jacksonville, Florida | |||
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | $ 21,520,000 | ||
Initial cost to company ,Land | 3,321,081 | ||
Initial cost to company, Building and Improvements | 24,255,617 | ||
Initial cost to Company | 27,576,698 | ||
Cost capitalized subsequent to acquisition | 870,568 | ||
Gross Amount at which carried at close of period, Land | 3,321,081 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 25,126,185 | ||
Gross Amount at which carried at close of period | 28,447,266 | ||
Accumulated Depreciation | $ (1,588,567) | ||
Date Acquired | Jul. 31, 2017 | ||
Bay Club | Jacksonville, Florida | Minimum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 3 years | ||
Bay Club | Jacksonville, Florida | Maximum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 27 years 6 months | ||
Tramore Village | Austell, Georgia | |||
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | $ 32,625,000 | ||
Initial cost to company ,Land | 6,729,081 | ||
Initial cost to company, Building and Improvements | 37,884,724 | ||
Initial cost to Company | 44,613,805 | ||
Cost capitalized subsequent to acquisition | 1,041,871 | ||
Gross Amount at which carried at close of period, Land | 6,729,081 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 38,926,595 | ||
Gross Amount at which carried at close of period | 45,655,676 | ||
Accumulated Depreciation | $ (1,290,598) | ||
Date Acquired | Mar. 22, 2018 | ||
Tramore Village | Austell, Georgia | Minimum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 3 years | ||
Tramore Village | Austell, Georgia | Maximum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 27 years 6 months | ||
Matthews Reserve | Matthews, North Carolina | |||
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | $ 23,850,000 | ||
Initial cost to company ,Land | 4,138,788 | ||
Initial cost to company, Building and Improvements | 29,943,094 | ||
Initial cost to Company | 34,081,882 | ||
Cost capitalized subsequent to acquisition | 78,746 | ||
Gross Amount at which carried at close of period, Land | 4,138,788 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 30,021,840 | ||
Gross Amount at which carried at close of period | 34,160,628 | ||
Accumulated Depreciation | $ (441,450) | ||
Date Acquired | Aug. 29, 2018 | ||
Matthews Reserve | Matthews, North Carolina | Minimum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 3 years | ||
Matthews Reserve | Matthews, North Carolina | Maximum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 27 years 6 months | ||
The Park at Kensington | Riverview, Florida | |||
Real Estate And Accumulated Depreciation Line Items | |||
Encumbrances | $ 21,760,000 | ||
Initial cost to company ,Land | 3,152,275 | ||
Initial cost to company, Building and Improvements | 25,814,299 | ||
Initial cost to Company | 28,966,574 | ||
Cost capitalized subsequent to acquisition | 136,917 | ||
Gross Amount at which carried at close of period, Land | 3,152,275 | ||
Gross Amount at which carried at close of period, Buildings and Improvements | 25,951,216 | ||
Gross Amount at which carried at close of period | 29,103,491 | ||
Accumulated Depreciation | $ (370,202) | ||
Date Acquired | Sep. 14, 2018 | ||
The Park at Kensington | Riverview, Florida | Minimum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 3 years | ||
The Park at Kensington | Riverview, Florida | Maximum | |||
Real Estate And Accumulated Depreciation Line Items | |||
Life on Which Depreciated-Latest Income Statement | 27 years 6 months |
Schedule III, Real Estate and_3
Schedule III, Real Estate and Accumulated Depreciation - Reconciliations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in real estate: | ||
Balance, beginning of period | $ 29,935,360 | $ 2,459,266 |
Acquisitions | 107,662,261 | 27,576,698 |
Improvements, etc. | 2,381,475 | 85,554 |
Disposals during the period | (124,900) | (186,158) |
Balance, end of period | 139,854,196 | 29,935,360 |
Accumulated Depreciation: | ||
Balance, beginning of period | (492,271) | (13,431) |
Depreciation | (3,316,395) | (478,920) |
Disposals during the period | 16,056 | 80 |
Balance, end of period | $ (3,792,610) | $ (492,271) |