Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-56273 | |
Entity Registrant Name | Nuveen Global Cities REIT, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 82-1419222 | |
Entity Address, Address Line One | 730 Third Avenue, 3rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 490-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001711799 | |
Current Fiscal Year End Date | --12-31 | |
Class T Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,444,625 | |
Class S Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,949,614 | |
Class D shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,125,713 | |
Class I Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,019,261 | |
Class N Shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,730,608 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Investments in real estate, net | $ 573,811 | $ 439,927 |
Investments in real estate-related securities, at fair value | 58,432 | 40,052 |
Investments in international affiliated funds | 49,864 | 51,008 |
Cash and cash equivalents | 83,931 | 9,726 |
Restricted cash | 70,623 | 5,945 |
Intangible assets, net | 39,867 | 32,728 |
Other assets | 7,677 | 7,137 |
Total assets | 884,205 | 586,523 |
Liabilities and Equity | ||
Credit facility | 141,277 | 129,277 |
Mortgages payable, net | 76,078 | 47,574 |
Subscriptions received in advance | 70,623 | 5,945 |
Intangible liabilities, net | 17,513 | 8,501 |
Due to affiliates | 15,832 | 9,374 |
Accounts payable, accrued expenses, and other liabilities | 7,416 | 7,010 |
Distributions payable | 3,000 | 2,065 |
Total liabilities | 331,739 | 209,746 |
Equity | ||
Preferred Stock | 129 | 250 |
Additional paid-in capital | 601,050 | 416,348 |
Accumulated deficit and cumulative distributions | (50,540) | (42,406) |
Accumulated other comprehensive income | 1,233 | 2,168 |
Total equity | 552,466 | 376,777 |
Total liabilities and equity | 884,205 | 586,523 |
Class T Shares | ||
Equity | ||
Common stock | 55 | 33 |
Class S Shares | ||
Equity | ||
Common stock | 96 | 28 |
Class D Shares | ||
Equity | ||
Common stock | 24 | 13 |
Class I Shares | ||
Equity | ||
Common stock | 122 | 46 |
Class N Shares | ||
Equity | ||
Common stock | $ 297 | $ 297 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class T Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 5,539,901 | 3,248,104 |
Common stock outstanding (in shares) | 5,539,901 | 3,248,104 |
Class S Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 9,607,787 | 2,832,107 |
Common stock outstanding (in shares) | 9,607,787 | 2,832,107 |
Class D Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 2,519,593 | 1,405,968 |
Common stock outstanding (in shares) | 2,519,593 | 1,405,968 |
Class I Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock issued (in shares) | 12,043,885 | 4,461,507 |
Common stock outstanding (in shares) | 12,043,885 | 4,461,507 |
Class N Shares | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 29,730,608 | 29,730,608 |
Common stock outstanding (in shares) | 29,730,608 | 29,730,608 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Rental revenue | $ 12,131 | $ 9,562 | $ 23,393 | $ 19,020 |
Income from commercial mortgage loan | 0 | 246 | 0 | 491 |
Total revenues | 12,131 | 9,808 | 23,393 | 19,511 |
Expenses | ||||
Rental property operating | 3,544 | 2,703 | 7,058 | 5,665 |
General and administrative | 874 | 918 | 1,931 | 1,952 |
Advisory fee due to affiliate | 1,631 | 800 | 2,695 | 1,527 |
Depreciation and amortization | 6,754 | 4,086 | 12,238 | 8,230 |
Total expenses | 12,803 | 8,507 | 23,922 | 17,374 |
Other income (expense) | ||||
Realized and unrealized income (loss) from real estate-related securities | 5,904 | 3,429 | 8,785 | (4,238) |
(Loss) income from equity investments in unconsolidated international affiliated funds | (374) | (1,617) | 315 | 73 |
Unrealized gain on commercial mortgage loan | 0 | 331 | 0 | 0 |
Interest income | 50 | 35 | 110 | 70 |
Interest expense | (1,002) | (905) | (1,945) | (2,094) |
Total other income (expense) | 4,578 | 1,273 | 7,265 | (6,189) |
Net income (loss) | 3,906 | 2,574 | 6,736 | (4,052) |
Net income attributable to preferred stock | 3 | 3 | 11 | 7 |
Net income (loss) attributable to common stockholders | $ 3,903 | $ 2,571 | $ 6,725 | $ (4,059) |
Net income (loss) per share of common stock, basic (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ (0.11) |
Net income (loss) per share of common stock - diluted (in dollars per share) | $ 0.07 | $ 0.07 | $ 0.14 | $ (0.11) |
Weighted-average shares of common stock outstanding, basic (in shares) | 55,021,598 | 38,373,316 | 49,432,630 | 37,217,680 |
Weighted-average shares of common stock outstanding, diluted (in shares) | 55,021,598 | 38,373,316 | 49,432,630 | 37,217,680 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 3,906 | $ 2,574 | $ 6,736 | $ (4,052) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 326 | 534 | (935) | 62 |
Comprehensive income (loss) | 4,232 | 3,108 | 5,801 | (3,990) |
Comprehensive income attributable to preferred stock | 3 | 3 | 11 | 7 |
Comprehensive income (loss) attributable to common stockholders | $ 4,229 | $ 3,105 | $ 5,790 | $ (3,997) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Total | Preferred Stock | Common StockClass T Shares | Common StockClass S Shares | Common StockClass D Shares | Common StockClass I Shares | Common StockClass N Shares | Additional Paid-in Capital | Accumulated Deficit and Cumulative Distributions | Accumulated Other Comprehensive Income | ||||
Beginning balance at Dec. 31, 2019 | $ 316,265,000 | $ 125,000 | $ 14,000 | $ 1,000 | $ 5,000 | $ 20,000 | $ 297,000 | $ 336,147,000 | $ (19,974,000) | $ (370,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of shares, net of offering costs | 50,869,000 | 14,000 | 15,000 | 5,000 | 16,000 | 50,819,000 | ||||||||
Distribution reinvestment | 787,000 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 787,000 | ||||
Common stock repurchased | (651,000) | (1,000) | (650,000) | |||||||||||
Amortization of restricted stock grants | 34,000 | 34,000 | ||||||||||||
Net income (loss) | (4,052,000) | 7,000 | (4,059,000) | |||||||||||
Distributions on common stock | (11,233,000) | (11,233,000) | ||||||||||||
Distribution on preferred stock | (7,000) | (7,000) | ||||||||||||
Foreign currency translation adjustment | 62,000 | 62,000 | ||||||||||||
Ending balance at Jun. 30, 2020 | 352,074,000 | 125,000 | 28,000 | 16,000 | 10,000 | 35,000 | 297,000 | 387,137,000 | (35,266,000) | (308,000) | ||||
Beginning balance at Mar. 31, 2020 | 343,905,000 | 129,000 | 24,000 | 13,000 | 10,000 | 32,000 | 297,000 | 376,382,000 | (32,140,000) | (842,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of shares, net of offering costs | 10,901,000 | 4,000 | 3,000 | 0 | 4,000 | 10,890,000 | ||||||||
Distribution reinvestment | 492,000 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 492,000 | ||||
Common stock repurchased | (651,000) | (1,000) | (650,000) | |||||||||||
Amortization of restricted stock grants | 23,000 | 23,000 | ||||||||||||
Net income (loss) | 2,574,000 | 3,000 | 2,571,000 | |||||||||||
Distributions on common stock | (5,697,000) | (5,697,000) | ||||||||||||
Distribution on preferred stock | (7,000) | (7,000) | ||||||||||||
Foreign currency translation adjustment | 534,000 | 534,000 | ||||||||||||
Ending balance at Jun. 30, 2020 | 352,074,000 | 125,000 | 28,000 | 16,000 | 10,000 | 35,000 | 297,000 | 387,137,000 | (35,266,000) | (308,000) | ||||
Beginning balance at Dec. 31, 2020 | 376,777,000 | 250,000 | 33,000 | 28,000 | 13,000 | 46,000 | 297,000 | 416,348,000 | (42,406,000) | 2,168,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of shares, net of offering costs | 184,016,000 | 22,000 | 67,000 | 11,000 | 76,000 | 183,840,000 | ||||||||
Distribution reinvestment | 1,988,000 | 0 | [1] | 1,000 | 0 | [1] | 1,000 | 1,986,000 | ||||||
Preferred stock redemption | (125,000) | (125,000) | 0 | |||||||||||
Common stock repurchased | (1,159,000) | 0 | [1] | 0 | [1] | (1,000) | (1,158,000) | 0 | ||||||
Amortization of restricted stock grants | 34,000 | 34,000 | ||||||||||||
Net income (loss) | 6,736,000 | 11,000 | 6,725,000 | 0 | ||||||||||
Distributions on common stock | (14,859,000) | (14,859,000) | ||||||||||||
Distribution on preferred stock | (7,000) | (7,000) | ||||||||||||
Foreign currency translation adjustment | (935,000) | (935,000) | ||||||||||||
Ending balance at Jun. 30, 2021 | 552,466,000 | 129,000 | 55,000 | 96,000 | 24,000 | 122,000 | 297,000 | 601,050,000 | (50,540,000) | 1,233,000 | ||||
Beginning balance at Mar. 31, 2021 | 415,259,000 | 129,000 | 39,000 | 47,000 | 16,000 | 61,000 | 297,000 | 459,893,000 | (46,130,000) | 907,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of shares, net of offering costs | 140,951,000 | 16,000 | 48,000 | 8,000 | 61,000 | 140,818,000 | ||||||||
Distribution reinvestment | 1,192,000 | 0 | [1] | 1,000 | 0 | [1] | 1,000 | 1,190,000 | ||||||
Common stock repurchased | (869,000) | (1,000) | (868,000) | |||||||||||
Amortization of restricted stock grants | 17,000 | 0 | 17,000 | |||||||||||
Net income (loss) | 3,906,000 | 3,000 | 3,903,000 | |||||||||||
Distributions on common stock | (8,313,000) | (8,313,000) | ||||||||||||
Distribution on preferred stock | (3,000) | (3,000) | ||||||||||||
Foreign currency translation adjustment | 326,000 | 326,000 | ||||||||||||
Ending balance at Jun. 30, 2021 | $ 552,466,000 | $ 129,000 | $ 55,000 | $ 96,000 | $ 24,000 | $ 122,000 | $ 297,000 | $ 601,050,000 | $ (50,540,000) | $ 1,233,000 | ||||
[1] | Amount is not presented due to rounding; see Note 14. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Offering costs | $ 200 | $ 200 | $ 400 | $ 300 |
Common Stock | ||||
Issuance of common stock (in shares) | 13,448,464 | 1,073,202 | 17,678,466 | 5,017,997 |
Offering costs | $ 234 | $ 180 | $ 400 | $ 341 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 6,736 | $ (4,052) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 12,238 | 8,230 |
Unrealized (gain) loss on changes in fair value of real estate-related securities | (6,479) | 1,725 |
Realized (gain) loss on sale of real estate-related securities | (1,565) | 3,089 |
Income from equity investment in unconsolidated international affiliated funds | (315) | (73) |
Income distribution from equity investment in unconsolidated international affiliated funds | 524 | 485 |
Straight line rent adjustment | (795) | (1,170) |
Amortization of below-market lease intangibles | (520) | (369) |
Amortization of above-market lease intangibles | 15 | 9 |
Amortization of deferred financing costs | 274 | 253 |
Amortization of restricted stock grants | 34 | 34 |
Change in assets and liabilities: | ||
Increase (decrease) in other assets | 1 | (703) |
Increase in accounts payable, accrued expenses, and other liabilities | 189 | 463 |
Net cash provided by operating activities | 10,337 | 7,921 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (142,397) | 0 |
Origination and fundings of commercial mortgage loan | 0 | (604) |
Funding for investment in international affiliated funds | 0 | (6,957) |
Capital improvements to real estate | (1,017) | (1,124) |
Purchase of real estate-related securities | (24,361) | (15,359) |
Proceeds from sale of real estate-related securities | 14,025 | 11,271 |
Net cash used in investing activities | (153,750) | (12,773) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 184,860 | 54,208 |
Repurchase of common stock | (1,159) | (651) |
Offering costs paid | (421) | (332) |
Borrowings from credit facility | 126,000 | 20,000 |
Repayments on credit facility | (114,000) | (47,500) |
Borrowings from mortgages payable | 28,750 | 0 |
Payment of deferred financing costs | (289) | 0 |
Repurchase of preferred stock | (125) | 0 |
Distributions to preferred stockholders | (7) | (7) |
Subscriptions received in advance | 70,623 | (3,143) |
Distributions | (11,936) | (14,438) |
Net cash provided by financing activities | 282,296 | 8,137 |
Net increase in cash and cash equivalents and restricted cash during the period | 138,883 | 3,285 |
Cash and cash equivalents and restricted cash, beginning of period | 15,671 | 15,671 |
Cash and cash equivalents and restricted cash, end of period | 154,554 | 18,956 |
Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets, end of period: | ||
Cash and cash equivalents | 83,931 | 12,012 |
Restricted cash | 70,623 | 6,944 |
Total cash and cash equivalents and restricted cash | 154,554 | 18,956 |
Supplemental disclosures: | ||
Interest paid | 1,861 | 2,216 |
Non-cash investing activities: | ||
Assumption of other liabilities in conjunction with acquisitions of real estate | 233 | 0 |
Accrued capital expenditures | 96 | (105) |
Write-off of fully amortized asset | 0 | 161 |
Non-cash financing activities: | ||
Accrued distributions | 935 | 3,205 |
Accrued stockholder servicing fees | 6,458 | 2,231 |
Distribution reinvestments | 1,988 | 787 |
Accrued offering costs | $ (21) | $ 8 |
Organization and Business Purpo
Organization and Business Purpose | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Organization and Business Purpose Nuveen Global Cities REIT, Inc. (the “Company”) was formed on May 1, 2017 as a Maryland corporation and elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. The Company’s sponsor is Nuveen, LLC (the “Sponsor”), a wholly owned subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). The Company is the sole general partner of Nuveen Global Cities REIT OP, LP, a Delaware limited partnership (“Nuveen OP”). Nuveen OP has issued a limited partner interest to Nuveen Global Cities REIT LP, LLC (the “Limited Partner”), a wholly owned subsidiary of the Company. The Company was organized to invest primarily in stabilized income-oriented commercial real estate in the United States and a substantial but lesser portion of the Company's portfolio will include real properties located in Canada, Europe and the Asia-Pacific region. Substantially all of the Company’s business will be conducted through Nuveen OP. The Company and Nuveen OP are externally managed by Nuveen Real Estate Global Cities Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of the Sponsor and an investment advisory affiliate of Nuveen Real Estate ("Nuveen Real Estate"). Pursuant to a Registration Statement on Form S-11 (File No. 333-222231, the “IPO Registration Statement”), the Company registered with the Securities and Exchange Commission (the “SEC”) an offering of up to $5.0 billion in shares of common stock, consisting of up to $4.0 billion in shares in its primary offering and up to $1.0 billion in shares pursuant to its distribution reinvestment plan (the “Initial Public Offering”). The IPO Registration Statement was initially declared effective on January 31, 2018. In the Initial Public Offering, the Company offered to the public any combination of four classes of shares of its common stock, Class T shares, Class S shares, Class D shares and Class I shares, with a dollar value up to the maximum offering amount. The publicly offered share classes have different upfront selling commissions and ongoing stockholder servicing fees. The purchase price per share for each class of common stock in the Initial Public Offering varied and generally equaled the Company’s prior month’s net asset value (“NAV”) per share, as calculated monthly, plus applicable upfront selling commissions and dealer manager fees. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the SEC. The year-end balance sheet was derived from those audited financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. All property acquisitions to date have been accounted for as asset acquisitions. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that will be considered business combinations, the Company will evaluate the existence of goodwill or a gain from a bargain purchase. The Company expenses acquisition-related costs associated with business combinations as they are incurred. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends and market and economic conditions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisitions to date, the Company’s allocation to customer relationship intangible assets has not been material. The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses. Intangible assets and intangible liabilities are recorded as separate components on the Company's Consolidated Balance Sheets. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental Revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and Amortization on the Company's Consolidated Statements of Operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related adjustments, along with any subsequent improvements to such properties. The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in Rental Property Operating on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value of such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value, or fair value, less cost to sell if classified as held for sale. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value or fair value, less cost to sell if classified as held for sale. During the periods presented, no such impairment occurred. Investments in Real Estate-Related Securities The Company reports its investment in real estate-related securities at fair value and any changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared and the resulting dividend income, along with gains and losses are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. Investments in International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund (“APCF”), investment funds managed by an affiliate of TIAA (collectively, the “International Affiliated Funds”), under the equity method of accounting as it has significant influence over these investments. The equity method income (loss) from the investments in the International Affiliated Funds represents the Company’s allocable share of each fund’s net income or loss, which includes income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) and is reported as (Loss) Income from Equity Investment in Unconsolidated International Affiliated Funds on the Company’s Consolidated Statement of Operations. All contributions to or distributions from the investment in the International Affiliated Funds are accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Company's Consolidated Balance Sheets. Investment in Commercial Mortgage Loan The Company originated its first commercial mortgage loan in March 2019 and elected the fair value option. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, the commercial mortgage loan was stated at fair value and was initially valued at the face amount of the loan funding. Subsequently, the commercial mortgage loan was valued at least quarterly by an independent third-party valuation firm with additional oversight being performed by the Advisor’s internal valuation department. The value was based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), and the credit quality of the borrower. Changes in fair value are recorded in the current period earnings and are a component of Unrealized Gain on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. Income earned from the commercial mortgage loan represents interest income and origination fee income, which is reported as Income from Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. Unrealized gains and losses are recorded as a component of Unrealized Gain (Loss) on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. In the event of a partial or whole sale of the commercial mortgage loan, the Company derecognizes the corresponding asset and fees paid as part of the partial or whole sale are recognized as expense in General and Administrative expenses on the Company’s Consolidated Statements of Operations. Deferred Charges The Company's deferred charges include financing and leasing costs. Financing costs include legal, structuring, and other loan costs incurred by the Company for its financing arrangements. Deferred financing costs related to the Credit Facility (as defined herein) are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and are being amortized on a straight-line basis over the term of the Credit Facility, which approximates the effective interest method. Unamortized costs are charged to interest expense upon early repayment or significant modification of the Credit Facility and fully amortized deferred financing costs are removed from the books upon the maturity of the Credit Facility. Deferred financing costs related to the Company’s mortgage payable are recorded as an offset to the related liability and amortized on a straight-line basis over the term of the financing instrument, which approximates the effective interest method. Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Investments in Real Estate, Net on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. Investments in real estate-related securities are recorded at fair value based on the closing price of the common stock as reported by the applicable national securities exchange. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3. The carrying amounts of financial instruments such as other assets, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): June 30, 2021 December 31, 2020 Level I Level 2 Level 3 Total Level I Level 2 Level 3 Total Assets: Investments in real estate-related securities $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 Total $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 As of June 30, 2021, the carrying value of the Company's Credit Facility approximated fair value. The fair value of the Company's mortgages payable was $76.5 million and $47.6 million as of June 30, 2021 and December 31, 2020. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3. As of June 30, 2021, the Company did not have any investments in commercial mortgage loans. Revenue Recognition The Company’s sources of revenue arising from leasing arrangements and the related revenue recognition policies are as follows: Rental revenue — consists primarily of base rent arising from tenant operating leases at the Company’s office, industrial, multifamily, retail and healthcare properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consists of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs as defined in lease agreements. Income from Commercial Mortgage Loan — consists of income from interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate along with origination fees. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payments are received until the loans are returned to accrual status. As of June 30, 2021, the Company did not have any mortgage loans on nonaccrual status. Leases The Company derives revenue pursuant to lease agreements. At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease inception, the Company determines whether each lease is a sales-type, direct financing or operating lease. Such classification is based on whether: • The lessee gains control of the underlying asset and the lessor therefore relinquishes control to the lessee under certain criteria (sales-type or direct-financing); or • All other leases that do not meet the criteria as sales-type or direct financing leases (operating). The Company's leases are classified as operating leases in accordance with relevant accounting guidelines, and the related revenue is recognized on a straight-line basis. Upon the termination or vacation of a tenant lease, the associated straight-line rent receivable is written off. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. Restricted Cash As of June 30, 2021, restricted cash consisted of $70.6 million of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent, but in the name of the Company. Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“Code”) commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. In qualifying for taxation as a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes annually at least 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even in qualifying for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real estate-related business other than management or operation of a lodging facility or a health care facility. A domestic TRS is subject to U.S. federal corporate income tax. The Cayman Islands TRSs are not subject to federal corporate income tax or Cayman Islands taxes. As of June 30, 2021, the Company had three active TRSs: the Company uses two Cayman Islands TRSs to hold its investments in the International Affiliated Funds and used one domestic TRS to hold the senior portion of the commercial mortgage loan, which has since been sold. Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings. Federal legislation intended to ameliorate the economic impact of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), was enacted on March 27, 2020, which, among other things, makes technical corrections to, or modifies on a temporary basis, certain of the provisions of the TCJA. Management has evaluated the effects of TCJA, as modified by the CARES Act, and concluded that the TCJA will not materially impact its consolidated financial statements. The Company also estimates that the taxes on foreign-sourced earnings imposed under the TCJA are not likely to apply to its foreign investments. Organization and Offering Expenses The Advisor advanced organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the first anniversary of the commencement of the Initial Public Offering. The Company will reimburse the Advisor for all such advanced expenses it incurred in 60 equal monthly installments commencing on the earlier of the date the Company's NAV reaches $1.0 billion or January 31, 2023. As of June 30, 2021, the Advisor and its affiliates had incurred organization and offering expenses on the Company’s behalf for the Initial Public Offering of $4.6 million, consisting of offering costs of $3.5 million and organization costs of $1.1 million. These organization and offering costs are recorded as Due to Affiliates on the Company’s Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020. Offering costs are currently charged to equity as such amounts are incurred. For the three and six months ended June 30, 2021, the Company charged $0.2 million and $0.4 million, respectively, in offering costs to equity. For the three and six months ended June 30, 2020, the Company charged $0.2 million and $0.3 million, respectively, in offering costs to equity. Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Net income (loss), which includes the Company’s allocable share of ECF's income and expense, realized gains and losses and unrealized appreciation or depreciation, has been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of accumulated other comprehensive income (loss), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in other comprehensive income (loss) of approximately $0.3 million and $(0.9) million, for the three and six months ended June 30, 2021, respectively. Foreign currency translation adjustments resulted in other comprehensive income of approximately $0.5 million and $0.1 million, for the three and six months ended June 30, 2020, respectively. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. Earnings per Share Basic net income/(loss) per share of common stock is determined by dividing net income/(loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income/(loss) at the same rate per share. The Company does not have any dilutive securities outstanding that would cause basic earnings per share and diluted earnings per share to differ. Recent Accounting Pronouncements Pending Adoption: In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The expedients and exceptions are effective for the period from March 12, 2020 to December 31, 2022. Management is assessing the impact and currently does not expect the guidance to materially impact the Company. The amendments in this ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Recently Adopted: In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The guidance removes certain exceptions to the general principles of ASC 740 in order to reduce the cost and complexity of its application. The guidance is effective for annual and interim periods beginning after December 15, 2020. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. In April 2020, the FASB staff released guidance focused on treatment of concessions related to the effects of COVID-19 on the application of lease modification guidance in Accounting Standards Codification (ASC) 842, “Leases.” The guidance provides a practical expedient to forgo the associated reassessments required by ASC 842 when changes to a lease result in similar or lower future consideration. There were no material exposures to rent concessions or lease defaults for tenants impacted by the COVID-19 pandemic for each of the three and six months ended June 30, 2021 and 2020. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements.” ASU 2018-13 modifies the disclosures required for fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”) to clarify certain aspects of ASU 2016-13, including that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. The Company must apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Investments in Real Estate | Investments in Real Estate Investments in Real Estate, Net consisted of the following ($ in thousands): June 30, 2021 December 31, 2020 Building and building improvements $ 499,025 $ 383,093 Land and land improvements 103,723 79,813 Furniture, fixtures and equipment 5,337 3,692 Total 608,085 466,598 Accumulated depreciation (34,274) (26,671) Investments in real estate, net $ 573,811 $ 439,927 For the three and six months ended June 30, 2021, depreciation expense was $4.2 million and $8.0 million, respectively. For the three and six months ended June 30, 2020 depreciation expense was $3.0 million and $5.9 million, respectively. During the six months ended June 30, 2021, the Company acquired an interest in four real property investments. The following table provides details of the property acquired during the six months ended June 30, 2021 ($ in thousands): Property Name Ownership Number of Location Sector Acquisition Acquisition Price (1) 2945 Wilderness Place 100% 1 Boulder, CO Healthcare January 2021 $ 12,533 Pacific Center 100% 1 San Diego, CA Healthcare May 2021 45,858 Hillcroft Medical Clinic 100% 1 Sugarland, TX Healthcare June 2021 12,078 Brookson Flats 100% 1 Huntersville, NC Multifamily June 2021 72,158 (1) Acquisition price is inclusive of acquisition costs and other acquisition related adjustments. Acquisition price does not include any net liabilities assumed. The following table summarizes the purchase price allocation for the properties acquired during the six months ended June 30, 2021 ($ in thousands): 2945 Wilderness Place Pacific Center Hillcroft Medical Clinic Brookson Flats Building and building improvements $ 7,906 $ 36,815 $ 9,201 $ 61,510 Land and land improvements 3,645 10,586 3,128 6,552 In-place lease intangibles 805 2,104 1,411 2,508 Furniture, fixtures and equipment — — — 1,588 Leasing Commissions 289 1,715 890 — Other intangibles (112) (5,362) (2,552) — Total purchase price $ 12,533 $ 45,858 $ 12,078 $ 72,158 During the year ended December 31, 2020, the Company acquired interests in four real property investments, which were comprised of two industrial and two healthcare investments. |
Investments in Real Estate-Rela
Investments in Real Estate-Related Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Real Estate-Related Securities | Investments in Real Estate-Related Securities As of June 30, 2021 and December 31, 2020, the Company’s investments in real estate-related securities consisted of shares of common stock of publicly-traded REITs. As described in Note 2, the Company records its investments in real estate-related securities at fair value on its Consolidated Balance Sheets. The following table summarizes the Investments in Real-Estate-Related Securities as of June 30, 2021 ($ in thousands): Investments in Real Estate-Related Securities Balance as of December 31, 2020 $ 40,052 Additions 24,361 Disposals (14,025) Unrealized gains 6,479 Realized gains 1,565 Balance as of June 30, 2021 $ 58,432 The following table summarizes the components of Realized and Unrealized Income (Loss) from Real Estate-Related Securities during the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Unrealized gains (losses) (1) $ 4,706 $ 4,773 $ 6,479 $ (1,725) Realized gains (losses) (1) 789 (1,630) 1,565 (3,089) Dividend income 409 286 741 576 Total $ 5,904 $ 3,429 $ 8,785 $ (4,238) (1) Unrealized and realized gains are net of any unrealized and realized losses. |
Investment in International Aff
Investment in International Affiliated Funds | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Investments [Abstract] | |
Investment in International Affiliated Fund | Investment in International Affiliated Funds Investment in ECF: ECF was formed in March 2016 as an open-end, Euro-denominated fund that seeks to build a diversified portfolio of high quality and stabilized commercial real estate with good fundamentals (i.e., core real estate) located in or around certain investment cities in Europe selected for their resilience, potential for long-term structural performance and ability to deliver an attractive and stable distribution yield. On December 22, 2017, the Company entered into a subscription agreement to invest €25.0 million into ECF. As of June 30, 2021, the Company had fully satisfied its commitment through cumulative contributions of $28.4 million. As described in Note 2, the Company records its investment in ECF using the equity method on its Consolidated Balance Sheets. While the Company has strategies to manage the foreign exchange risk associated with its investment made in Euros, there can be no assurance that these strategies will be successful or that foreign exchange fluctuations will not negatively impact the Company’s financial performance and results of operations in a material manner. The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from ECF as of June 30, 2021 ($ in thousands): Investment in ECF Balance as of December 31, 2020 $ 29,803 Income distribution (405) Income from equity investment in unconsolidated international affiliated fund 273 Foreign currency translation adjustment (935) Balance as of June 30, 2021 $ 28,736 Income from equity investments in Unconsolidated International Affiliated Funds from ECF was $0.4 million and $0.3 million, respectively, for the three and six months ended June 30, 2021. Loss from equity investments in Unconsolidated International Affiliated Funds from ECF was $1.4 million and $0.2 million, respectively, for the three and six months ended June 30, 2020. Investment in APCF: APCF was launched in November 2018 as an open-end, U.S. dollar denominated fund that seeks durable income and capital appreciation from a balanced and diversified portfolio of real estate investments in a defined list of investment cities in the Asia-Pacific region. On November 9, 2018, the Company entered into a subscription agreement to invest $10.0 million into APCF. Subsequently, on September 11, 2019 and January 6, 2021 the Company increased its commitment by $20.0 million each, bringing its total commitment to $50.0 million. As of June 30, 2021, the Company had funded $19.9 million of its total $50.0 million commitment. As described in Note 2, the Company records its investment in APCF using the equity method on its Consolidated Balance Sheets. The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from APCF as of June 30, 2021 ($ in thousands): Investment in APCF Balance as of December 31, 2020 $ 21,205 Income distribution (119) Income from equity investment in unconsolidated international affiliated fund 42 Balance as of June 30, 2021 $ 21,128 (Loss) income from equity investments in Unconsolidated International Affiliated Funds from APCF for the three and six months ended June 30, 2021 was $(0.8) million and $42,000, respectively. (Loss) income from equity investments in Unconsolidated International Affiliated Funds from APCF for the three and six months ended June 30, 2020 was $(0.2) million and $0.3 million, respectively. |
Investment in Commercial Mortga
Investment in Commercial Mortgage Loan | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Commercial Mortgage Loan | Investment in Commercial Mortgage Loan On March 28, 2019, the Company originated a loan to finance the acquisition and renovation of an industrial property in Maspeth, New York for $46.0 million. On June 6, 2019, the Company sold the senior portion of the loan for $34.3 million to an unaffiliated party and retained the subordinate mortgage, receiving proceeds of $34.0 million, which is net of disposition fees. Subsequently, in November 2020, the outstanding balance of the subordinate mortgage loan was paid off in full, and the Company received $14.4 million. As of June 30, 2021, the Company did not have a commercial mortgage loan investment. For the three and six months ended June 30, 2020, the Company recognized interest income from its investment in its commercial mortgage loan of $0.2 million and $0.5 million, respectively. For the three months ended June 30, 2020, the Company recognized unrealized gains on its commercial mortgage loan of $0.3 million. The Company did not record any unrealized gains or losses on its commercial mortgage loan for the six months ended June 30, 2020. |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): June 30, December 31, Intangible assets: In-place lease intangibles $ 37,308 $ 31,393 Above-market lease intangibles 167 167 Leasing commissions 15,554 12,877 Other intangibles 3,603 2,085 Total intangible assets 56,632 46,522 Accumulated amortization: In-place lease intangibles (12,323) (10,402) Above-market lease intangibles (53) (38) Leasing commissions (3,847) (3,070) Other intangibles (542) (284) Total accumulated amortization (16,765) (13,794) Intangible assets, net $ 39,867 $ 32,728 Intangible liabilities: Below-market lease intangibles $ (19,281) $ (9,750) Accumulated amortization 1,768 1,249 Intangible liabilities, net $ (17,513) $ (8,501) Amortization expense relating to intangible assets was $2.6 million and $4.2 million, respectively, for the three and six months ended June 30, 2021. Income from the amortization of intangible liabilities was $0.3 million and $0.5 million, respectively, for the three and six months ended June 30, 2021. Amortization expense relating to intangible assets was $0.4 million and $2.3 million, respectively, for the three and six months ended June 30, 2020. Income from the amortization of intangible liabilities was $0.2 million and $0.4 million, respectively, for the three and six months ended June 30, 2020. The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows ($ in thousands): In-Place Lease Above-Market Lease Intangibles Leasing Commissions Other Below-Market 2021 (remaining) $ 3,396 $ 12 $ 1,006 $ 266 $ (957) 2022 4,988 20 1,857 587 (1,869) 2023 3,368 17 1,724 565 (1,851) 2024 3,233 17 1,668 552 (1,843) 2025 2,853 17 1,472 478 (1,788) 2026 1,478 17 923 196 (1,653) Thereafter 5,669 14 3,057 417 (7,552) $ 24,985 $ 114 $ 11,707 $ 3,061 $ (17,513) As of June 30, 2021, the weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, leasing commissions, other intangibles and below-market lease intangibles of the properties acquired were 6, 6, 7, 6, and 10 years, respectively. |
Credit Facility and Mortgages P
Credit Facility and Mortgages Payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facility and Mortgages Payable | Credit Facility and Mortgages Payable Credit Facility On October 24, 2018, the Company entered into a credit agreement (the "Credit Agreement") with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and lead arranger. The Credit Agreement initially provided for aggregate commitments of up to $60.0 million for unsecured revolving loans, with an accordion feature that may increase the aggregate commitments to up to $500.0 million (the "Credit Facility"). On December 17, 2018 and June 11, 2019, the Company amended the Credit Agreement to increase the Credit Facility to $150.0 million and $210.0 million in aggregate commitments, respectively, with all other terms remaining the same. Loans outstanding under the Credit Facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30-day LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP and its subsidiaries. Interest under the Credit Facility is determined based on a one-month U.S. dollar-denominated LIBOR, which was 0.1% as of June 30, 2021. Loans under the Credit Agreement will mature three years from October 24, 2018, with an option to extend twice for an additional year pursuant to the terms of the Credit Agreement. In July 2017, the Financial Conduct Authority of the UK (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Financing Rate ("SOFR") is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The consequence of these developments cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size June 30, 2021 December 31, 2020 Credit Facility L+applicable margin (1) October 24, 2021 $ 210,000 $ 141,277 $ 129,277 (1) The weighted-average interest rate for the three and six months ended June 30, 2021 was 1.45% and 1.46%, respectively. As of June 30, 2021, the Company had $141.3 million in borrowings and had outstanding accrued interest of $0.1 million under the Credit Facility. For the three and six months ended June 30, 2021, the Company incurred $0.4 million and $0.8 million in interest expense, respectively. For the three and six months ended June 30, 2020, the Company incurred $0.4 million and $1.1 million in interest expense, respectively. As of June 30, 2021, the Company was in compliance with all loan covenants with respect to the Credit Agreement. Mortgages Payable The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount June 30, 2021 December 31, 2020 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 — Total fixed rate mortgages payable 76,750 48,000 Deferred financing costs, net (672) (426) Mortgages payable, net $ 76,078 $ 47,574 As of June 30, 2021, the Company had $76.8 million in borrowings and $0.2 million in accrued interest outstanding under its Mortgages Payable. For each of the three and six months ended June 30, 2021, the Company incurred $0.5 million and $0.9 million in interest expense, respectively. For the three and six months ended June 30, 2020, the Company incurred $0.4 million and $0.8 million in interest expense, respectively. The following table presents the future principal payments due under the Credit Facility and Mortgages Payable as of June 30, 2021 ($ in thousands): Amount Year Credit Facility Mortgages Payable 2021 (1) $ 141,277 $ — 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — 76,750 Total $ 141,277 $ 76,750 (1) Loans under the Credit Facility will mature on October 24, 2021, with an option to extend twice for an additional year pursuant to the terms of the Credit Agreement. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets and Other Liabilities | Other Assets and Other Liabilities The following table summarizes the components of Other Assets ($ in thousands): June 30, 2021 December 31, 2020 Straight-line rent receivable $ 4,991 $ 4,196 Prepaid expenses 1,487 407 Receivables 966 2,072 Deferred financing costs on credit facility, net 137 368 Other 96 94 Total $ 7,677 $ 7,137 The following table summarizes the components of Accounts Payable, Accrued Expenses, and Other Liabilities ($ in thousands): June 30, 2021 December 31, 2020 Real estate taxes payable $ 2,614 $ 1,996 Accounts payable and accrued expenses 2,333 1,598 Tenant security deposits 1,054 1,117 Prepaid rental income 1,047 1,440 Accrued interest expense 331 247 Other 37 612 Total $ 7,416 $ 7,010 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Fees Due to Related Party Pursuant to the advisory agreement between the Company, Nuveen OP, and the Advisor, the Advisor is responsible for sourcing, evaluating and monitoring the Company’s investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company’s assets, in accordance with the Company’s investment objectives, guidelines, policies and limitations, subject to oversight by the Company’s board of directors. The Advisor will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee (% of NAV) 1.25% 1.25% 1.25% 1.25% 0.65% As of June 30, 2021, the Company had accrued advisory fees of approximately $0.5 million, which has been included in Accounts Payable, Accrued Expenses, and Other Liabilities on the Company’s Consolidated Balance Sheets. For the three and six months ended June 30, 2021, the Company incurred advisory fee expenses of $1.3 million and $2.2 million, respectively. For the three and six months ended June 30, 2020, the Company incurred advisory fee expenses of $0.6 million and $1.4 million, respectively. The Company may retain certain of the Advisor’s affiliates for necessary services relating to the Company’s investments or its operations, including construction, special servicing, leasing, development, property oversight and other property management services, as well as services related to mortgage servicing, group purchasing, healthcare, consulting/brokerage, capital markets/credit origination, loan servicing, property, title and other types of insurance, management consulting and other similar operational matters. Any such arrangements will be at market terms and rates. During the year ended December 31, 2020, the Company engaged NexCore Companies LLC ("NexCore"), an affiliate of TIAA, to provide property management, accounting and leasing services for certain of its investments in healthcare properties. NexCore is a real estate development company focused exclusively on development, acquisition, and management of healthcare real estate. The Company paid approximately $0.1 million in management fees to NexCore during each of the three and six months ended June 30, 2021. The Company did not pay any management fees to NexCore during the three and six months ended June 30, 2020. Additionally, as part of this engagement, the Company may pay acquisition fees to NexCore for sourcing deals and such fees are at market rate and no more than what the Company would have to pay to a third party to source deals. The Company paid approximately $48.0 thousand and $0.1 million, respectively, in acquisition fees to Nexcore during the three and six months ended June 30, 2021. The Company did not pay any acquisition fees to NexCore during the three and six months ended June 30, 2020. The Company may also enter into joint ventures with NexCore, and pursuant to the terms of the joint venture agreements, NexCore may receive a promote from the joint venture. The Company entered in two joint venture arrangements with NexCore during the three and six months ended June 30, 2021 and have not incurred any promote payments. The Company did not enter into any joint venture arrangements with NexCore during the three and six months ended June 30, 2020. In addition, Nuveen Securities, LLC (the “Dealer Manager”) serves as the dealer manager for the Initial Public Offering and Follow-on Public Offering (together, the "Offerings"). The Dealer Manager is a registered broker-dealer affiliated with the Advisor. The Company’s obligations under the Dealer Manager Agreement to pay stockholder servicing fees with respect to the Class T, Class S and Class D shares distributed in the Offerings shall survive until such shares are no longer outstanding or converted into Class I shares. As of June 30, 2021, the Company accrued approximately $11.2 million of stockholder servicing fees with respect to the outstanding Class T, Class S and Class D common shares. The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offerings, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Class T Shares Class S Shares Class D Shares Class I Shares Maximum Upfront Selling Commissions (% of Transaction Price) up to 3.0% up to 3.5% — — Maximum Upfront Dealer Manager Fees (% of Transaction Price) 0.50% — — — Stockholder Servicing Fee (% of NAV) 0.85% (1) 0.85% 0.25% — (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held within such account would exceed, in the aggregate, 8.75% of the sum of the gross proceeds from the sale of such shares and the aggregate gross proceeds of any shares issued under the distribution reinvestment plan with respect thereto (or, solely with respect to the Class T shares, a lower limit set forth in an agreement between the Dealer Manager and the applicable participating broker-dealer in effect on the date that such shares were sold). At the end of such month, each Class T share, Class S share and Class D share held in a stockholder’s account will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share. The Company accrues the cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. There is not a stockholder servicing fee with respect to Class I shares. If not already converted into Class I shares upon a determination that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed the applicable limit as described above, each Class T share, Class S share, Class D share and Class N share held in a stockholder’s account will automatically and without any action on the part of the holder thereof convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share on the earliest of (i) a listing of Class I shares, (ii) the Company’s merger or consolidation with or into another entity or the sale or other disposition of all or substantially all of the Company’s assets, in each case in a transaction in which stockholders receive cash and/or listed securities or (iii) after termination of the primary portion of the offering in which such Class T shares, Class S shares and Class D shares were sold, the end of the month in which the Company, with the assistance of the dealer manager, determines that all underwriting compensation from all sources in connection with the public offering in which the shares were sold, including upfront selling commissions, the stockholder servicing fee and other underwriting compensation, is equal to 10% of the gross proceeds of the primary portion of such Offering. In addition, immediately before any liquidation, dissolution or winding up, each Class T share, Class S share, Class D share and Class N shares will automatically convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share. Due to Affiliates The following table summarizes the components of Due to Affiliates ($ in thousands): June 30, December 31, Accrued stockholder servicing fees (1) $ 11,184 $ 4,726 Advanced organization and offering expenses 4,648 4,648 Total $ 15,832 $ 9,374 (1) The Company accrues the full amount of future stockholder servicing fees payable to the Dealer Manager for Class T, Class S and Class D shares up to the 8.75% of gross proceeds limit at the time such shares are sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offerings, which provide, among other things, for the re-allowance of the full amount of the selling commissions and the dealer manager fee and all or a portion of stockholder servicing fees received by the Dealer Manager to such selected dealers. The Company will no longer incur the stockholder servicing fee after June 2056 in connection with those Class T, Class S and Class D shares currently outstanding; the fees may end sooner if the total underwriting compensation paid in respect of the Offering reaches 10.0% of the gross offering proceeds or if the Company completes a liquidity event. The Company will incur stockholder servicing fees in connection with future issuances of Class D shares for a 35-year period from the date of issuance and seven years for Class T shares and Class S shares from date of issuance. |
Economic Dependency
Economic Dependency | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Economic Dependency | Economic DependencyThe Company depends on the Advisor and its affiliates for certain services that are essential to it, including the sale of the Company’s shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Advisor and its affiliates are unable to provide such services, the Company would be required to find alternative service providers. |
Risks and Contingencies
Risks and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Risks and Contingencies | Risks and Contingencies The outbreak of COVID-19 and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the first half of 2020. The worldwide spread of the COVID-19 pandemic has created significant uncertainty in the global economy. At this time, tenants have requested certain rent relief and lease modifications from this unprecedented event; however, such requests have not been significant as of June 30, 2021 for the Company's direct real estate investments. Requests have generally been comprised of deferrals, with payments postponed for a brief period (i.e., less than twelve months) and then repaid over the remaining duration of the contract. During the six months ended June 30, 2021, the Company pursued litigation with a tenant in lease default at one of its office properties in an effort to recover the outstanding balance due to the Company. A settlement agreement was reached between the Company and the tenant in default, and accordingly, the Company is entitled to receive $0.4 million in upfront settlement proceeds paid by the tenant, with an additional $0.5 million to be received in 36 equal installments beginning September 1, 2021. Other than that, the Company does not have any other material exposure to rent concessions, tenant defaults or loan defaults. The duration and extent of the COVID-19 pandemic over the long-term cannot be reasonably estimated at this time. The ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic impacts the Company’s business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Concentrations of risk may arise when a number of properties are located in a similar geographic region such that the economic conditions of that region could impact tenants’ obligations to meet their contractual obligations or cause the values of individual properties to decline. Additionally, concentrations of risk may arise if any one tenant comprises a significant amount of the Company's rent, or if tenants are concentrated in a particular industry. As of June 30, 2021, the Company had no significant concentrations of tenants, as no single tenant had annual contract rent that made up more than 4% of the rental income of the Company. There are no significant lease expirations scheduled to occur over the next twelve months. Based on its assessment, the Company has concluded that there is no impairment of its investments as of June 30, 2021. The Company's investment in the International Affiliated Funds have been similarly and negatively impacted by COVID-19 in the foreign countries where their investments are located. The duration and extent of the COVID-19 pandemic over the long-term cannot be reasonably estimated at this time. The ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic impacts the Company will depend on future developments. The Company's investments in real estate-related securities may also be negatively impacted by uncertainty surrounding the COVID-19 pandemic. Market volatility and economic uncertainty surrounding the COVID-19 pandemic may lead to fluctuations in market pricing, which has the ability to adversely impact the fair value of the Company’s investments in real estate-related securities. The duration and extent to which the COVID-19 pandemic impacts the Company's investments in real estate-related securities cannot be reasonably estimated at this time. From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of June 30, 2021, the Company was involved in a material legal proceedings with a tenant due to default of lease terms in one of our office properties and the Company is pursuing to recover the outstanding balance due from the tenant. In the normal course of business the Advisor, on behalf of the Company, enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Advisor expects the risk of loss to be remote. |
Tenant Leases
Tenant Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Tenant Leases | Tenant Leases The Company’s real estate properties are leased to tenants under operating lease agreements which expire on various dates. Certain leases have the option to extend or terminate at the tenant’s discretion, with termination options resulting in additional fees due to the Company. Rental income is recognized on a straight line basis. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Rental income for the three and six months ended June 30, 2021 was $12.1 million and $23.4 million, respectively. Rental income for the three and six months ended June 30, 2020 was $9.6 million and $19.0 million, respectively. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily investments are as follows ($ in thousands): Year June 30, 2021 2021 (remaining) $ 14,253 2022 28,424 2023 27,173 2024 26,635 2025 24,253 2026 17,400 Thereafter 64,305 Total $ 202,443 Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity Authorized Capital As of June 30, 2021, the Company had authority to issue a total of 2,200,000,000 shares of capital stock consisting of the following: Classification Number of Shares Par Value Class T Shares 500,000 $ 0.01 Class S Shares 500,000 $ 0.01 Class D Shares 500,000 $ 0.01 Class I Shares 500,000 $ 0.01 Class N Shares 100,000 $ 0.01 Preferred Stock 100,000 $ 0.01 Total 2,200,000 In addition, the Company’s board of directors may amend the Charter from time to time, without stockholder approval, to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company has authority to issue, or to issue additional classes of stock which may be subject to various class-specific fees. Preferred Stock On January 2, 2019, the Company filed Articles Supplementary to the Charter, which set forth the rights, preferences and privileges of the Company’s 12.0% Series A cumulative non-voting preferred stock (“Series A Preferred Stock”). On January 4, 2019, the Company sold 125 shares of its Series A Preferred Stock at a purchase price of $1,000 per share in a private placement exempt from registration under the Securities Act of 1933, as amended. The offering of the Series A Preferred Stock was effected for the purpose of the Company having at least 100 stockholders to satisfy one of the qualifications required in order to qualify as a REIT under the Code. On March 31, 2021, the Company redeemed all of the 125 outstanding shares of the Series A Preferred Stock in accordance with its Charter. On October 8, 2020, a subsidiary of Nuveen OP sold 125 shares of preferred stock in a private placement to effectuate the formation of a REIT established to hold the Company's industrial property located in Massachusetts for tax management purposes. Common Stock As of June 30, 2021, the Company had issued and outstanding 5,539,901 shares of Class T common stock, 9,607,787 shares of Class S common stock, 2,519,593 shares of Class D common stock, 12,043,885 shares of Class I common stock, and 29,730,608 shares of Class N common stock. The following tables detail the movement in the Company’s outstanding shares of common stock (in thousands): Three Months Ended June 30, 2021 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total March 31, 2021 3,824 4,767 1,699 5,942 29,731 45,963 Common stock issued 1,697 4,815 813 6,125 — 13,450 Distribution reinvestment 24 36 12 38 — 110 Common stock repurchased (5) (10) (4) (61) — (80) June 30, 2021 5,540 9,608 2,520 12,044 29,731 59,443 Six Months Ended June 30, 2021 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total December 31, 2020 3,248 2,832 1,406 4,462 29,731 41,679 Common stock issued 2,250 6,738 1,107 7,585 — 17,680 Distribution reinvestment 47 53 23 62 — 185 Vested stock grant — — — 6 — 6 Common stock repurchased (5) (15) (16) (71) — (107) June 30, 2021 5,540 9,608 2,520 12,044 29,731 59,443 TIAA has purchased $300.0 million of the Company’s Class N shares of common stock through its wholly owned subsidiary. Per the terms of the agreement between the Company and TIAA, all shares held by TIAA are not eligible to be repurchased until January 31, 2023; provided that TIAA must continue to maintain ownership of the $200,000 initial investment in the Company’s shares for so long as the Advisor or its affiliate serves as the Company’s advisor. Restricted Stock Grants The Company’s independent directors are compensated with an annual retainer, of which 25% is paid in the form of an annual grant of restricted stock based on the most recent transaction price. The restricted stock generally vests one year from the date of grant, which, in connection with the directors’ first annual grant, occurred in February 2019. The Company accrued approximately $16,875 and $33,750, respectively, of expenses for each of the three and six months ended June 30, 2021 and 2020, in connection with the restricted stock portion of director compensation, which is included in Accounts Payable, Accrued Expenses and Other Liabilities on the Consolidated Balance Sheets. On May 6, 2021, the Company’s board of directors approved changes in the Company’s independent director compensation plan, effective July 1, 2021. As revised, the independent directors will receive a $75,000 annual retainer and the chairperson of the audit committee will receive an additional $15,000 annual retainer. The Company pays 75% of this compensation in cash in quarterly installments and the remaining 25% in the form of an annual grant of restricted stock based on the most recent transaction price that generally vests one year from the date of grant. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan whereby holders of Class T, Class S, Class D and Class I shares (other than investors in certain states or who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan) have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. Holders of Class N shares are not eligible to participate in the distribution reinvestment plan and receive their distributions in cash. Investors who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan or are residents of those states that do not allow automatic enrollment receive their distributions in cash unless they elect to have their cash distributions reinvested in additional shares of the Company’s common stock. The per share purchase price for shares purchased pursuant to the distribution reinvestment plan will be equal to the transaction price at the time the distribution is payable, which will generally be equal to the Company’s prior month’s NAV per share for that share class. Stockholders do not pay upfront selling commissions or dealer manager fees when purchasing shares pursuant to the distribution reinvestment plan. The stockholder servicing fees with respect to shares of the Company’s Class T shares, Class S shares and Class D shares are calculated based on the NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of each such class, including shares issued in respect of distributions on such shares under the distribution reinvestment plan. Distributions The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Code. Beginning September 30, 2018, the Company established a monthly record date for a quarterly distribution to stockholders on record as of the last day of each applicable month typically payable within 30 days following quarter end. On January 17, 2020, the Company’s board of directors amended the Company’s distribution policy to reflect that the Company intends to pay distributions monthly rather than quarterly going forward, subject to the discretion of the board of directors. Based on the monthly record dates established by the board of directors, the Company accrues for distributions on a monthly basis. As of June 30, 2021 and December 31, 2020, the Company had accrued $3.0 million and $2.1 million in Distributions Payable on the Consolidated Balance Sheets for the June 2021 and December 2020 distributions, respectively. For the three and six months ended June 30, 2021, the Company declared and paid distributions in the amount of $7.6 million and $13.9 million, respectively. For the three and six months ended June 30, 2020, the Company declared and paid distributions in the amount of $5.7 million and $14.4 million, respectively. Each class of common stock receives the same gross distribution per share, which was $0.1787 and $0.3498, respectively, per share for the three and six months ended June 30, 2021. The net distribution varies for each class based on the applicable advisory fee and stockholder servicing fee, which is deducted from the monthly distribution per share. The following tables detail the aggregate distribution declared for each of the Company's share classes for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.1787 $ 0.1787 $ 0.1787 $ 0.1787 $ 0.1787 Advisory fee per share of common stock (0.0315) (0.0313) (0.0317) (0.0318) (0.0168) Stockholder servicing fee per share of common stock (0.0235) (0.0234) (0.0070) — — Net distribution per share of common stock $ 0.1237 $ 0.1240 $ 0.1400 $ 0.1469 $ 0.1619 Six Months Ended June 30, 2021 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.3498 $ 0.3498 $ 0.3498 $ 0.3498 $ 0.3498 Advisory fee per share of common stock (0.0603) (0.0600) (0.0608) (0.0609) (0.0322) Stockholder servicing fee per share of common stock (0.0456) (0.0455) (0.0135) — — Net distribution per share of common stock $ 0.2439 $ 0.2443 $ 0.2755 $ 0.2889 $ 0.3176 Share Repurchases The Company has adopted a share repurchase plan, whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. The Company may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month, in its discretion, subject to any limitations in the share repurchase plan. The total amount of aggregate repurchases of Class T, Class S, Class D, and Class I shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. In addition, if during any consecutive 24-month period, the Company does not have at least one month in which the Company fully satisfies 100% of properly submitted repurchase requests or accepts all properly submitted tenders in a self-tender offer for the Company’s shares, the Company will not make any new investments (excluding short-term cash management investments under 30 days in duration) and will use all available investable assets to satisfy repurchase requests (subject to the limitations under this program) until all outstanding repurchase requests have been satisfied. Shares would be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year would be repurchased at 95% of the transaction price. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests and has established limitations on the amount of funds the Company may use for repurchases during any calendar month and quarter. Further, the Company’s board of directors may modify, suspend or terminate the share repurchase plan. For the three and six months ended June 30, 2021, the Company repurchased shares of its common stock for $0.9 million and $1.2 million, respectively. The Company had no unfulfilled repurchase requests during the six months ended June 30, 2021. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company operates in eight reportable segments: industrial properties, multifamily properties, retail properties, office properties, healthcare properties, real estate-related securities, International Affiliated Funds, and commercial mortgage loan. These are operating segments that are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-makers in deciding how to allocate resources and in assessing performance. The Company’s chief executive officer, chief financial officer and head of portfolio management have been identified as the chief operating decision-makers. The Company’s chief operating decision-makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company believes that segment net operating income is the performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, December 31, Multifamily $ 163,096 $ 91,355 Industrial 162,471 167,518 Healthcare 139,059 61,397 Retail 84,467 86,154 Office 71,470 72,810 Real Estate-Related Securities 58,432 40,052 International Affiliated Funds 49,864 51,008 Other (Corporate) 155,346 16,229 Total assets $ 884,205 $ 586,523 The following table sets forth the financial results by segment for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Rental revenues Industrial $ 3,586 $ 2,512 $ 7,146 $ 4,869 Multifamily 2,615 2,322 4,995 4,664 Healthcare 2,395 1,146 4,160 2,272 Office 1,791 1,965 3,665 3,944 Retail 1,744 1,617 3,427 3,271 Total rental revenues 12,131 9,562 23,393 19,020 Rental property operating expenses Industrial 1,096 672 2,205 1,367 Multifamily 1,192 1,104 2,373 2,249 Healthcare 445 296 766 583 Office 482 490 1,037 1,006 Retail 329 141 677 460 Total rental property operating expenses 3,544 2,703 7,058 5,665 Depreciation and amortization (6,754) (4,086) (12,238) (8,230) Income from commercial mortgage loan — 246 — 491 Unrealized gain from commercial mortgage loan — 331 — — Realized and unrealized income (loss) from real estate-related securities 5,904 3,429 8,785 (4,238) (Loss) income from equity investment in unconsolidated international affiliated funds (374) (1,617) 315 73 General and administrative expenses (874) (918) (1,931) (1,952) Advisory fee due to affiliate (1,631) (800) (2,695) (1,527) Interest income 50 35 110 70 Interest expense (1,002) (905) (1,945) (2,094) Net income (loss) 3,906 2,574 6,736 (4,052) Net income attributable to preferred stock 3 3 11 7 Net income (loss) attributable to common stockholders $ 3,903 $ 2,571 $ 6,725 $ (4,059) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions The Company's board of directors declared distributions amounting to approximately $3.0 million on all outstanding shares of common stock as of the close of business on the record date of June 29, 2021 and the Company paid these distributions on July 28, 2021. Status of the Offering On July 1, 2021 the Company sold approximately $70.5 million of common stock (555,417 Class T shares, 1,282,282 Class S shares, 168,792 Class D shares and 4,336,708 Class I shares) at a purchase price of $11.07 for Class T, $11.01 for Class S, $11.15 for Class D, and $11.15 for Class I. On August 1, 2021 the Company sold approximately $58.2 million of common stock (330,061 Class T shares, 2,042,331 Class S shares, 399,763 Class D shares and 2,409,656 Class I shares) at a purchase price of $11.22 for Class T, $11.15 for Class S, $11.30 for Class D, and $11.30 for Class I. On July 31, 2021, the Company repurchased 7,599 Class D shares at $11.30 per share, 31,348 Class I shares at $11.30 per share, and 3,991 Class S shares at $11.15 per share. Follow-on Public Offering On January 13, 2021, the Company filed the Follow-on Registration Statement to register the Follow-on Public Offering. The Follow-on Registration Statement was declared effective by the SEC on July 2, 2021. On the effective date of the Follow-on Registration Statement, the Initial Public Offering automatically terminated. Tenant Settlement On July 16, 2021, the Company received $0.4 million in settlement proceeds from a tenant in one of its office properties. The Company is also entitled to receive another $0.5 million in 36 equal installments beginning September 1, 2021. Single Family Housing Investment On July 27, 2021, the Company entered in an agreement with Imajn Homes Holdings ("Sparrow"), an affiliate of TIAA, to assist the Company in acquiring and managing single family housing in the United States. Sparrow is a vertically integrated company with acquisition, asset, property and construction management capabilities. Subsequent to entering in the agreement, on August 9, 2021, the Company committed $15.0 million to acquire single family housing identified by Sparrow, which will be managed by Sparrow post-acquisition. The Company will pay fees to Sparrow in connection with the services provided under this agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s consolidated financial statements as of June 30, 2021 and for the three and six months ended June 30, 2021 and 2020. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the SEC. The year-end balance sheet was derived from those audited financial statements. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. |
Investments in Real Estate | Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. All property acquisitions to date have been accounted for as asset acquisitions. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that will be considered business combinations, the Company will evaluate the existence of goodwill or a gain from a bargain purchase. The Company expenses acquisition-related costs associated with business combinations as they are incurred. The Company capitalizes acquisition-related costs associated with asset acquisitions. Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends and market and economic conditions. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including but not limited to the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisitions to date, the Company’s allocation to customer relationship intangible assets has not been material. The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses. Intangible assets and intangible liabilities are recorded as separate components on the Company's Consolidated Balance Sheets. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental Revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and Amortization on the Company's Consolidated Statements of Operations. The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related adjustments, along with any subsequent improvements to such properties. The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in Rental Property Operating on the Company’s Consolidated Statements of Operations. |
Investments in Real Estate-Related Securities | Investments in Real Estate-Related Securities The Company reports its investment in real estate-related securities at fair value and any changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared and the resulting dividend income, along with gains and losses are recorded as a component of Realized and Unrealized Income (Loss) from Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. |
Investments in International Affiliated Funds | Investments in International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund (“APCF”), investment funds managed by an affiliate of TIAA (collectively, the “International Affiliated Funds”), under the equity method of accounting as it has significant influence over these investments. The equity method income (loss) from the investments in the International Affiliated Funds represents the Company’s allocable share of each fund’s net income or loss, which includes income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) and is reported as (Loss) Income from Equity Investment in Unconsolidated International Affiliated Funds on the Company’s Consolidated Statement of Operations. All contributions to or distributions from the investment in the International Affiliated Funds are accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Company's Consolidated Balance Sheets. |
Investment in Commercial Mortgage Loan | Investment in Commercial Mortgage Loan The Company originated its first commercial mortgage loan in March 2019 and elected the fair value option. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, the commercial mortgage loan was stated at fair value and was initially valued at the face amount of the loan funding. Subsequently, the commercial mortgage loan was valued at least quarterly by an independent third-party valuation firm with additional oversight being performed by the Advisor’s internal valuation department. The value was based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), and the credit quality of the borrower. Changes in fair value are recorded in the current period earnings and are a component of Unrealized Gain on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. Income earned from the commercial mortgage loan represents interest income and origination fee income, which is reported as Income from Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. Unrealized gains and losses are recorded as a component of Unrealized Gain (Loss) on Commercial Mortgage Loan on the Company’s Consolidated Statements of Operations. In the event of a partial or whole sale of the commercial mortgage loan, the Company derecognizes the corresponding asset and fees paid as part of the partial or whole sale are recognized as expense in General and Administrative expenses on the Company’s Consolidated Statements of Operations. |
Deferred Charges | Deferred Charges The Company's deferred charges include financing and leasing costs. Financing costs include legal, structuring, and other loan costs incurred by the Company for its financing arrangements. Deferred financing costs related to the Credit Facility (as defined herein) are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and are being amortized on a straight-line basis over the term of the Credit Facility, which approximates the effective interest method. Unamortized costs are charged to interest expense upon early repayment or significant modification of the Credit Facility and fully amortized deferred financing costs are removed from the books upon the maturity of the Credit Facility. Deferred financing costs related to the Company’s mortgage payable are recorded as an offset to the related liability and amortized on a straight-line basis over |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. Investments in real estate-related securities are recorded at fair value based on the closing price of the common stock as reported by the applicable national securities exchange. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3. The carrying amounts of financial instruments such as other assets, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): June 30, 2021 December 31, 2020 Level I Level 2 Level 3 Total Level I Level 2 Level 3 Total Assets: Investments in real estate-related securities $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 Total $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 As of June 30, 2021, the carrying value of the Company's Credit Facility approximated fair value. The fair value of the Company's mortgages payable was $76.5 million and $47.6 million as of June 30, 2021 and December 31, 2020. Fair value of the Company's indebtedness is estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company's indebtedness are considered Level 3. As of June 30, 2021, the Company did not have any investments in commercial mortgage loans. |
Revenue Recognition | Revenue Recognition The Company’s sources of revenue arising from leasing arrangements and the related revenue recognition policies are as follows: Rental revenue — consists primarily of base rent arising from tenant operating leases at the Company’s office, industrial, multifamily, retail and healthcare properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consists of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs as defined in lease agreements. Income from Commercial Mortgage Loan — consists of income from interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate along with origination fees. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payments are received until the loans are returned to accrual status. As of June 30, 2021, the Company did not have any mortgage loans on nonaccrual status. |
Leases | Leases The Company derives revenue pursuant to lease agreements. At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease inception, the Company determines whether each lease is a sales-type, direct financing or operating lease. Such classification is based on whether: • The lessee gains control of the underlying asset and the lessor therefore relinquishes control to the lessee under certain criteria (sales-type or direct-financing); or • All other leases that do not meet the criteria as sales-type or direct financing leases (operating). The Company's leases are classified as operating leases in accordance with relevant accounting guidelines, and the related revenue is recognized on a straight-line basis. Upon the termination or vacation of a tenant lease, the associated straight-line rent receivable is written off. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. |
Restricted Cash | Restricted CashAs of June 30, 2021, restricted cash consisted of $70.6 million of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent, but in the name of the Company |
Income Taxes | Income Taxes The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code (“Code”) commencing with its taxable year ending December 31, 2018 and intends to operate in a manner that will allow it to continue to qualify as a REIT. In qualifying for taxation as a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes annually at least 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even in qualifying for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real estate-related business other than management or operation of a lodging facility or a health care facility. A domestic TRS is subject to U.S. federal corporate income tax. The Cayman Islands TRSs are not subject to federal corporate income tax or Cayman Islands taxes. As of June 30, 2021, the Company had three active TRSs: the Company uses two Cayman Islands TRSs to hold its investments in the International Affiliated Funds and used one domestic TRS to hold the senior portion of the commercial mortgage loan, which has since been sold. Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduced the U.S. federal corporate income tax rate from 35% to 21% and created new taxes on certain foreign-sourced earnings. Federal legislation intended to ameliorate the economic impact of the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), was enacted on March 27, 2020, which, among other things, makes technical corrections to, or modifies on a temporary basis, certain of the provisions of the TCJA. Management has evaluated the effects of TCJA, as modified by the CARES Act, and concluded that the TCJA will not materially impact its consolidated financial statements. The Company also estimates that the taxes on foreign-sourced earnings imposed under the TCJA are not likely to apply to its foreign investments. |
Organization and Offering Expenses | Organization and Offering Expenses The Advisor advanced organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the first anniversary of the commencement of the Initial Public Offering. The Company will reimburse the Advisor for all such advanced expenses it incurred in 60 equal monthly installments commencing on the earlier of the date the Company's NAV reaches $1.0 billion or January 31, 2023. As of June 30, 2021, the Advisor and its affiliates had incurred organization and offering expenses on the Company’s behalf for the Initial Public Offering of $4.6 million, consisting of offering costs of $3.5 million and organization costs of $1.1 million. These organization and offering costs are recorded as Due to Affiliates on the Company’s Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020. |
Foreign Currency | Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Net income (loss), which includes the Company’s allocable share of ECF's income and expense, realized gains and losses and unrealized appreciation or depreciation, has been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of accumulated other comprehensive income (loss), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in other comprehensive income (loss) of approximately $0.3 million and $(0.9) million, for the three and six months ended June 30, 2021, respectively. Foreign currency translation adjustments resulted in other comprehensive income of approximately $0.5 million and $0.1 million, for the three and six months ended June 30, 2020, respectively. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. |
Earnings per Share | Earnings per Share Basic net income/(loss) per share of common stock is determined by dividing net income/(loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income/(loss) at the same rate per share. The Company does not have any dilutive securities outstanding that would cause basic earnings per share and diluted earnings per share to differ. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pending Adoption: In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. The expedients and exceptions are effective for the period from March 12, 2020 to December 31, 2022. Management is assessing the impact and currently does not expect the guidance to materially impact the Company. The amendments in this ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. Recently Adopted: In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). The guidance removes certain exceptions to the general principles of ASC 740 in order to reduce the cost and complexity of its application. The guidance is effective for annual and interim periods beginning after December 15, 2020. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. In April 2020, the FASB staff released guidance focused on treatment of concessions related to the effects of COVID-19 on the application of lease modification guidance in Accounting Standards Codification (ASC) 842, “Leases.” The guidance provides a practical expedient to forgo the associated reassessments required by ASC 842 when changes to a lease result in similar or lower future consideration. There were no material exposures to rent concessions or lease defaults for tenants impacted by the COVID-19 pandemic for each of the three and six months ended June 30, 2021 and 2020. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements.” ASU 2018-13 modifies the disclosures required for fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses (“ASU 2018-19”) to clarify certain aspects of ASU 2016-13, including that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. The Company must apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company concluded that the adoption did not have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Assets | The Company’s Investments in Real Estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building 40 years Building, land and site improvements 15-40 years Furniture, fixtures and equipment 3-7 years Lease intangibles Over lease term |
Fair Value, Assets Measured on Recurring Basis | The following table details the Company’s assets measured at fair value on a recurring basis ($ in thousands): June 30, 2021 December 31, 2020 Level I Level 2 Level 3 Total Level I Level 2 Level 3 Total Assets: Investments in real estate-related securities $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 Total $ 58,432 $ — $ — $ 58,432 $ 40,052 $ — $ — $ 40,052 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate, Net | Investments in Real Estate, Net consisted of the following ($ in thousands): June 30, 2021 December 31, 2020 Building and building improvements $ 499,025 $ 383,093 Land and land improvements 103,723 79,813 Furniture, fixtures and equipment 5,337 3,692 Total 608,085 466,598 Accumulated depreciation (34,274) (26,671) Investments in real estate, net $ 573,811 $ 439,927 |
Summary of Properties Acquired | The following table provides details of the property acquired during the six months ended June 30, 2021 ($ in thousands): Property Name Ownership Number of Location Sector Acquisition Acquisition Price (1) 2945 Wilderness Place 100% 1 Boulder, CO Healthcare January 2021 $ 12,533 Pacific Center 100% 1 San Diego, CA Healthcare May 2021 45,858 Hillcroft Medical Clinic 100% 1 Sugarland, TX Healthcare June 2021 12,078 Brookson Flats 100% 1 Huntersville, NC Multifamily June 2021 72,158 (1) Acquisition price is inclusive of acquisition costs and other acquisition related adjustments. Acquisition price does not include any net liabilities assumed. |
Summary of Purchase Price Allocation for Properties Acquired | The following table summarizes the purchase price allocation for the properties acquired during the six months ended June 30, 2021 ($ in thousands): 2945 Wilderness Place Pacific Center Hillcroft Medical Clinic Brookson Flats Building and building improvements $ 7,906 $ 36,815 $ 9,201 $ 61,510 Land and land improvements 3,645 10,586 3,128 6,552 In-place lease intangibles 805 2,104 1,411 2,508 Furniture, fixtures and equipment — — — 1,588 Leasing Commissions 289 1,715 890 — Other intangibles (112) (5,362) (2,552) — Total purchase price $ 12,533 $ 45,858 $ 12,078 $ 72,158 |
Investments in Real Estate-Re_2
Investments in Real Estate-Related Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments in Real-Estate Securities | The following table summarizes the Investments in Real-Estate-Related Securities as of June 30, 2021 ($ in thousands): Investments in Real Estate-Related Securities Balance as of December 31, 2020 $ 40,052 Additions 24,361 Disposals (14,025) Unrealized gains 6,479 Realized gains 1,565 Balance as of June 30, 2021 $ 58,432 |
Summary of Components of Realized and Unrealized Income From Real Estate Related Securities | The following table summarizes the components of Realized and Unrealized Income (Loss) from Real Estate-Related Securities during the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Unrealized gains (losses) (1) $ 4,706 $ 4,773 $ 6,479 $ (1,725) Realized gains (losses) (1) 789 (1,630) 1,565 (3,089) Dividend income 409 286 741 576 Total $ 5,904 $ 3,429 $ 8,785 $ (4,238) (1) Unrealized and realized gains are net of any unrealized and realized losses. |
Investment in International A_2
Investment in International Affiliated Funds (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Schedule of Investments [Abstract] | |
Equity Method Investments | The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from ECF as of June 30, 2021 ($ in thousands): Investment in ECF Balance as of December 31, 2020 $ 29,803 Income distribution (405) Income from equity investment in unconsolidated international affiliated fund 273 Foreign currency translation adjustment (935) Balance as of June 30, 2021 $ 28,736 The following table summarizes the equity investment in Unconsolidated International Affiliated Funds from APCF as of June 30, 2021 ($ in thousands): Investment in APCF Balance as of December 31, 2020 $ 21,205 Income distribution (119) Income from equity investment in unconsolidated international affiliated fund 42 Balance as of June 30, 2021 $ 21,128 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities | The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands): June 30, December 31, Intangible assets: In-place lease intangibles $ 37,308 $ 31,393 Above-market lease intangibles 167 167 Leasing commissions 15,554 12,877 Other intangibles 3,603 2,085 Total intangible assets 56,632 46,522 Accumulated amortization: In-place lease intangibles (12,323) (10,402) Above-market lease intangibles (53) (38) Leasing commissions (3,847) (3,070) Other intangibles (542) (284) Total accumulated amortization (16,765) (13,794) Intangible assets, net $ 39,867 $ 32,728 Intangible liabilities: Below-market lease intangibles $ (19,281) $ (9,750) Accumulated amortization 1,768 1,249 Intangible liabilities, net $ (17,513) $ (8,501) |
Estimated Future Amortization | The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows ($ in thousands): In-Place Lease Above-Market Lease Intangibles Leasing Commissions Other Below-Market 2021 (remaining) $ 3,396 $ 12 $ 1,006 $ 266 $ (957) 2022 4,988 20 1,857 587 (1,869) 2023 3,368 17 1,724 565 (1,851) 2024 3,233 17 1,668 552 (1,843) 2025 2,853 17 1,472 478 (1,788) 2026 1,478 17 923 196 (1,653) Thereafter 5,669 14 3,057 417 (7,552) $ 24,985 $ 114 $ 11,707 $ 3,061 $ (17,513) |
Credit Facility and Mortgages_2
Credit Facility and Mortgages Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of the Credit Facility ($ in thousands): Principal Balance Outstanding Indebtedness Interest Rate Maturity Date Maximum Facility Size June 30, 2021 December 31, 2020 Credit Facility L+applicable margin (1) October 24, 2021 $ 210,000 $ 141,277 $ 129,277 (1) The weighted-average interest rate for the three and six months ended June 30, 2021 was 1.45% and 1.46%, respectively. The following table is a summary of the Company's Mortgages Payable secured by the Company’s properties ($ in thousands): Principal Balance Outstanding Indebtedness Lender Interest Rate Maturity Date Maximum Principal Amount June 30, 2021 December 31, 2020 Fixed rate mortgages payable: Main Street at Kingwood Nationwide Life Insurance Company 3.15% 12/01/26 $ 48,000 $ 48,000 $ 48,000 Tacara Steiner Ranch Brighthouse Life Insurance 2.62% 06/01/28 28,750 28,750 — Total fixed rate mortgages payable 76,750 48,000 Deferred financing costs, net (672) (426) Mortgages payable, net $ 76,078 $ 47,574 |
Schedule of Maturities of Long-term Debt | The following table presents the future principal payments due under the Credit Facility and Mortgages Payable as of June 30, 2021 ($ in thousands): Amount Year Credit Facility Mortgages Payable 2021 (1) $ 141,277 $ — 2022 — — 2023 — — 2024 — — 2025 — — Thereafter — 76,750 Total $ 141,277 $ 76,750 (1) Loans under the Credit Facility will mature on October 24, 2021, with an option to extend twice for an additional year pursuant to the terms of the Credit Agreement. |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Components of Other Assets | The following table summarizes the components of Other Assets ($ in thousands): June 30, 2021 December 31, 2020 Straight-line rent receivable $ 4,991 $ 4,196 Prepaid expenses 1,487 407 Receivables 966 2,072 Deferred financing costs on credit facility, net 137 368 Other 96 94 Total $ 7,677 $ 7,137 |
Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities | The following table summarizes the components of Accounts Payable, Accrued Expenses, and Other Liabilities ($ in thousands): June 30, 2021 December 31, 2020 Real estate taxes payable $ 2,614 $ 1,996 Accounts payable and accrued expenses 2,333 1,598 Tenant security deposits 1,054 1,117 Prepaid rental income 1,047 1,440 Accrued interest expense 331 247 Other 37 612 Total $ 7,416 $ 7,010 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets | The Advisor will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee (% of NAV) 1.25% 1.25% 1.25% 1.25% 0.65% |
Summary of Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV | The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offerings, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Class T Shares Class S Shares Class D Shares Class I Shares Maximum Upfront Selling Commissions (% of Transaction Price) up to 3.0% up to 3.5% — — Maximum Upfront Dealer Manager Fees (% of Transaction Price) 0.50% — — — Stockholder Servicing Fee (% of NAV) 0.85% (1) 0.85% 0.25% — (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. |
Schedule of Components of Due to Affiliates | The following table summarizes the components of Due to Affiliates ($ in thousands): June 30, December 31, Accrued stockholder servicing fees (1) $ 11,184 $ 4,726 Advanced organization and offering expenses 4,648 4,648 Total $ 15,832 $ 9,374 (1) The Company accrues the full amount of future stockholder servicing fees payable to the Dealer Manager for Class T, Class S and Class D shares up to the 8.75% of gross proceeds limit at the time such shares are sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offerings, which provide, among other things, for the re-allowance of the full amount of the selling commissions and the dealer manager fee and all or a portion of stockholder servicing fees received by the Dealer Manager to such selected dealers. The Company will no longer incur the stockholder servicing fee after June 2056 in connection with those Class T, Class S and Class D shares currently outstanding; the fees may end sooner if the total underwriting compensation paid in respect of the Offering reaches 10.0% of the gross offering proceeds or if the Company completes a liquidity event. The Company will incur stockholder servicing fees in connection with future issuances of Class D shares for a 35-year period from the date of issuance and seven years for Class T shares and Class S shares from date of issuance. |
Tenant Leases (Tables)
Tenant Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Rent Expected | Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily investments are as follows ($ in thousands): Year June 30, 2021 2021 (remaining) $ 14,253 2022 28,424 2023 27,173 2024 26,635 2025 24,253 2026 17,400 Thereafter 64,305 Total $ 202,443 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Capital Stock | As of June 30, 2021, the Company had authority to issue a total of 2,200,000,000 shares of capital stock consisting of the following: Classification Number of Shares Par Value Class T Shares 500,000 $ 0.01 Class S Shares 500,000 $ 0.01 Class D Shares 500,000 $ 0.01 Class I Shares 500,000 $ 0.01 Class N Shares 100,000 $ 0.01 Preferred Stock 100,000 $ 0.01 Total 2,200,000 |
Schedule of Common Stock Outstanding Roll Forward | The following tables detail the movement in the Company’s outstanding shares of common stock (in thousands): Three Months Ended June 30, 2021 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total March 31, 2021 3,824 4,767 1,699 5,942 29,731 45,963 Common stock issued 1,697 4,815 813 6,125 — 13,450 Distribution reinvestment 24 36 12 38 — 110 Common stock repurchased (5) (10) (4) (61) — (80) June 30, 2021 5,540 9,608 2,520 12,044 29,731 59,443 Six Months Ended June 30, 2021 Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Total December 31, 2020 3,248 2,832 1,406 4,462 29,731 41,679 Common stock issued 2,250 6,738 1,107 7,585 — 17,680 Distribution reinvestment 47 53 23 62 — 185 Vested stock grant — — — 6 — 6 Common stock repurchased (5) (15) (16) (71) — (107) June 30, 2021 5,540 9,608 2,520 12,044 29,731 59,443 |
Summary of Declared Distributions | The following tables detail the aggregate distribution declared for each of the Company's share classes for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.1787 $ 0.1787 $ 0.1787 $ 0.1787 $ 0.1787 Advisory fee per share of common stock (0.0315) (0.0313) (0.0317) (0.0318) (0.0168) Stockholder servicing fee per share of common stock (0.0235) (0.0234) (0.0070) — — Net distribution per share of common stock $ 0.1237 $ 0.1240 $ 0.1400 $ 0.1469 $ 0.1619 Six Months Ended June 30, 2021 Class T Common Stock Class S Common Stock Class D Common Stock Class I Common Stock Class N Common Stock Gross distribution per share of common stock $ 0.3498 $ 0.3498 $ 0.3498 $ 0.3498 $ 0.3498 Advisory fee per share of common stock (0.0603) (0.0600) (0.0608) (0.0609) (0.0322) Stockholder servicing fee per share of common stock (0.0456) (0.0455) (0.0135) — — Net distribution per share of common stock $ 0.2439 $ 0.2443 $ 0.2755 $ 0.2889 $ 0.3176 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Segment | The following table sets forth the total assets by segment as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, December 31, Multifamily $ 163,096 $ 91,355 Industrial 162,471 167,518 Healthcare 139,059 61,397 Retail 84,467 86,154 Office 71,470 72,810 Real Estate-Related Securities 58,432 40,052 International Affiliated Funds 49,864 51,008 Other (Corporate) 155,346 16,229 Total assets $ 884,205 $ 586,523 |
Summary of Financial Results by Segment | The following table sets forth the financial results by segment for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended Six Months Ended 2021 2020 2021 2020 Rental revenues Industrial $ 3,586 $ 2,512 $ 7,146 $ 4,869 Multifamily 2,615 2,322 4,995 4,664 Healthcare 2,395 1,146 4,160 2,272 Office 1,791 1,965 3,665 3,944 Retail 1,744 1,617 3,427 3,271 Total rental revenues 12,131 9,562 23,393 19,020 Rental property operating expenses Industrial 1,096 672 2,205 1,367 Multifamily 1,192 1,104 2,373 2,249 Healthcare 445 296 766 583 Office 482 490 1,037 1,006 Retail 329 141 677 460 Total rental property operating expenses 3,544 2,703 7,058 5,665 Depreciation and amortization (6,754) (4,086) (12,238) (8,230) Income from commercial mortgage loan — 246 — 491 Unrealized gain from commercial mortgage loan — 331 — — Realized and unrealized income (loss) from real estate-related securities 5,904 3,429 8,785 (4,238) (Loss) income from equity investment in unconsolidated international affiliated funds (374) (1,617) 315 73 General and administrative expenses (874) (918) (1,931) (1,952) Advisory fee due to affiliate (1,631) (800) (2,695) (1,527) Interest income 50 35 110 70 Interest expense (1,002) (905) (1,945) (2,094) Net income (loss) 3,906 2,574 6,736 (4,052) Net income attributable to preferred stock 3 3 11 7 Net income (loss) attributable to common stockholders $ 3,903 $ 2,571 $ 6,725 $ (4,059) |
Organization and Business Pur_2
Organization and Business Purpose - Narrative (Details) | Jan. 13, 2021USD ($) | Jan. 31, 2018USD ($)class |
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | $ 5,000,000,000 | $ 5,000,000,000 |
Number of classes of common stock | class | 4 | |
Primary Offering | ||
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | 4,000,000,000 | $ 4,000,000,000 |
Dividend Reinvestment Plan | ||
Organization And Business Activities [Line Items] | ||
Common stock, value, authorized | $ 1,000,000,000 | $ 1,000,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Building | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 40 years |
Building, land and site improvements | Minimum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 15 years |
Building, land and site improvements | Maximum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 40 years |
Furniture, fixtures and equipment | Minimum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 3 years |
Furniture, fixtures and equipment | Maximum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investments in real estate-related securities, at fair value | $ 58,432 | $ 40,052 |
Fair Value, Recurring | ||
Assets: | ||
Investments in real estate-related securities, at fair value | 58,432 | 40,052 |
Total | 58,432 | 40,052 |
Fair Value, Recurring | Level I | ||
Assets: | ||
Investments in real estate-related securities, at fair value | 58,432 | 40,052 |
Total | 58,432 | 40,052 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Investments in real estate-related securities, at fair value | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Investments in real estate-related securities, at fair value | 0 | 0 |
Total | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)subsidiary | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Significant Of Accounting Policies [Line Items] | |||||
Restricted cash | $ 70,623,000 | $ 70,623,000 | $ 5,945,000 | ||
Number of active TRSs | subsidiary | 3 | ||||
Investments in and advances to affiliates, advanced expenses reimbursement NAV threshold | 1,000,000,000 | $ 1,000,000,000 | |||
Offering costs | 200,000 | $ 200,000 | 400,000 | $ 300,000 | |
Foreign currency translation adjustment | 326,000 | $ 534,000 | (935,000) | $ 62,000 | |
Level 3 | Mortgages Payable | Secured Debt | |||||
Significant Of Accounting Policies [Line Items] | |||||
Mortgages payable, net | $ 76,500,000 | $ 76,500,000 | $ 47,600,000 | ||
Advisor | |||||
Significant Of Accounting Policies [Line Items] | |||||
Period for reimbursement of advance expenses (in months) | 60 months | ||||
Organizational and offering costs | $ 4,600,000 | ||||
Offering costs | 3,500,000 | ||||
Organization costs | $ 1,100,000 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Investments in Real Estate, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Building and building improvements | $ 499,025 | $ 383,093 |
Land and land improvements | 103,723 | 79,813 |
Furniture, fixtures and equipment | 5,337 | 3,692 |
Total | 608,085 | 466,598 |
Accumulated depreciation | (34,274) | (26,671) |
Investments in real estate, net | $ 573,811 | $ 439,927 |
Investments in Real Estate - Na
Investments in Real Estate - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) | Dec. 31, 2020property | |
Real Estate [Abstract] | |||||
Depreciation | $ | $ 4.2 | $ 3 | $ 8 | $ 5.9 | |
Number of Properties | property | 4 | 4 |
Investments in Real Estate - Su
Investments in Real Estate - Summary of Properties Acquired (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)property | Dec. 31, 2020property | |
Real Estate Properties [Line Items] | ||
Number of Properties | 4 | 4 |
2945 Wilderness Place | ||
Real Estate Properties [Line Items] | ||
Ownership Interest | 100.00% | |
Number of Properties | 1 | |
Acquisition Price | $ | $ 12,533 | |
Pacific Center | ||
Real Estate Properties [Line Items] | ||
Ownership Interest | 100.00% | |
Number of Properties | 1 | |
Acquisition Price | $ | $ 45,858 | |
Hillcroft Medical Clinic | ||
Real Estate Properties [Line Items] | ||
Ownership Interest | 100.00% | |
Number of Properties | 1 | |
Acquisition Price | $ | $ 12,078 | |
Brookson Flats | ||
Real Estate Properties [Line Items] | ||
Ownership Interest | 100.00% | |
Number of Properties | 1 | |
Acquisition Price | $ | $ 72,158 |
Investments in Real Estate - Pu
Investments in Real Estate - Purchase Price Allocation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
2945 Wilderness Place | |
Business Acquisition [Line Items] | |
Building and building improvements | $ 7,906 |
Land and land improvements | 3,645 |
In-place lease intangibles | 805 |
Furniture, fixtures and equipment | 0 |
Leasing Commissions | 289 |
Other intangibles | (112) |
Total purchase price | 12,533 |
Pacific Center | |
Business Acquisition [Line Items] | |
Building and building improvements | 36,815 |
Land and land improvements | 10,586 |
In-place lease intangibles | 2,104 |
Furniture, fixtures and equipment | 0 |
Leasing Commissions | 1,715 |
Other intangibles | (5,362) |
Total purchase price | 45,858 |
Hillcroft Medical Clinic | |
Business Acquisition [Line Items] | |
Building and building improvements | 9,201 |
Land and land improvements | 3,128 |
In-place lease intangibles | 1,411 |
Furniture, fixtures and equipment | 0 |
Leasing Commissions | 890 |
Other intangibles | (2,552) |
Total purchase price | 12,078 |
Brookson Flats | |
Business Acquisition [Line Items] | |
Building and building improvements | 61,510 |
Land and land improvements | 6,552 |
In-place lease intangibles | 2,508 |
Furniture, fixtures and equipment | 1,588 |
Leasing Commissions | 0 |
Other intangibles | 0 |
Total purchase price | $ 72,158 |
Investments in Real Estate-Re_3
Investments in Real Estate-Related Securities - Summary of Investments in Real-Estate Securities (Details) - Real Estate-Related Equity Securities $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Equity Securities At Fair Value [Roll Forward] | |
Balance as of December 31, 2020 | $ 40,052 |
Additions | 24,361 |
Disposals | (14,025) |
Unrealized gains | 6,479 |
Realized gains | 1,565 |
Balance as of June 30, 2021 | $ 58,432 |
Investments in Real Estate-Re_4
Investments in Real Estate-Related Securities - Summary of Components of Realized and Unrealized Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gains (losses) | $ 4,706 | $ 4,773 | $ 6,479 | $ (1,725) |
Realized gains (losses) | 789 | (1,630) | 1,565 | (3,089) |
Dividend income | 409 | 286 | 741 | 576 |
Realized and unrealized income (loss) from real estate-related securities | $ 5,904 | $ 3,429 | $ 8,785 | $ (4,238) |
Investment in International A_3
Investment in International Affiliated Funds - Narrative (Details) $ in Thousands, € in Millions | Jan. 06, 2021USD ($) | Sep. 11, 2019USD ($) | Nov. 09, 2018USD ($) | Dec. 22, 2017EUR (€) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) |
Schedule Of Investments [Line Items] | ||||||||||
(Loss) income from equity investments in unconsolidated international affiliated funds | $ (374) | $ (1,617) | $ 315 | $ 73 | ||||||
ECF | ||||||||||
Schedule Of Investments [Line Items] | ||||||||||
Equity method investment, investment commitment amount | € 25 | $ 28,400 | ||||||||
(Loss) income from equity investments in unconsolidated international affiliated funds | 400 | (1,400) | 273 | (200) | ||||||
APCF | ||||||||||
Schedule Of Investments [Line Items] | ||||||||||
Equity method investment, investment commitment amount | $ 50,000 | $ 10,000 | ||||||||
(Loss) income from equity investments in unconsolidated international affiliated funds | $ (800) | $ (200) | $ 42 | $ 300 | ||||||
Equity method investment, additional investment commitment amount | $ 20,000 | $ 20,000 | ||||||||
Equity method investment, amount funded | $ 19,900 |
Investment in International A_4
Investment in International Affiliated Funds - Summary of Components of Income from Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Roll Forward] | ||||
Income distribution | $ (524) | $ (485) | ||
Income from equity investment in unconsolidated international affiliated fund | $ (374) | $ (1,617) | 315 | 73 |
ECF | ||||
Schedule of Equity Method Investments [Roll Forward] | ||||
Beginning balance | 29,803 | |||
Income distribution | (405) | |||
Income from equity investment in unconsolidated international affiliated fund | 400 | (1,400) | 273 | (200) |
Foreign currency translation adjustment | (935) | |||
Ending balance | 28,736 | 28,736 | ||
APCF | ||||
Schedule of Equity Method Investments [Roll Forward] | ||||
Beginning balance | 21,205 | |||
Income distribution | (119) | |||
Income from equity investment in unconsolidated international affiliated fund | (800) | $ (200) | 42 | $ 300 |
Ending balance | $ 21,128 | $ 21,128 |
Investment in Commercial Mort_2
Investment in Commercial Mortgage Loan - Narrative (Details) - USD ($) | Jun. 06, 2019 | Mar. 28, 2019 | Nov. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Investment Holdings [Line Items] | |||||||
Payments to originate and fund commercial mortgage loan | $ 0 | $ 604,000 | |||||
Income from commercial mortgage loan | $ 0 | $ 246,000 | 0 | 491,000 | |||
Unrealized gain (loss) on commercial mortgage loan | 0 | 331,000 | 0 | 0 | |||
Commercial Mortgage Loan | |||||||
Investment Holdings [Line Items] | |||||||
Payments to originate and fund commercial mortgage loan | $ 46,000,000 | ||||||
Proceeds from sale of loans held-for-investment, gross | $ 34,300,000 | ||||||
Proceeds from sale of loans held-for-investment | $ 34,000,000 | ||||||
Proceeds from payoff of commercial mortgage loan | $ 14,400,000 | ||||||
Income from commercial mortgage loan | $ 200,000 | $ 500,000 | |||||
Unrealized gain (loss) on commercial mortgage loan | $ 300,000 | $ 0 |
Intangibles - Gross Carrying Am
Intangibles - Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Intangible assets: | ||
Total intangible assets | $ 56,632 | $ 46,522 |
Accumulated amortization: | ||
Total accumulated amortization | (16,765) | (13,794) |
Intangible assets, net | 39,867 | 32,728 |
Intangible liabilities: | ||
Intangible liabilities, net | (17,513) | (8,501) |
In-place lease intangibles | ||
Intangible assets: | ||
Total intangible assets | 37,308 | 31,393 |
Accumulated amortization: | ||
Total accumulated amortization | (12,323) | (10,402) |
Intangible assets, net | 24,985 | |
Above-market lease intangibles | ||
Intangible assets: | ||
Total intangible assets | 167 | 167 |
Accumulated amortization: | ||
Total accumulated amortization | (53) | (38) |
Intangible assets, net | 114 | |
Leasing commissions | ||
Intangible assets: | ||
Total intangible assets | 15,554 | 12,877 |
Accumulated amortization: | ||
Total accumulated amortization | (3,847) | (3,070) |
Intangible assets, net | 11,707 | |
Other intangibles | ||
Intangible assets: | ||
Total intangible assets | 3,603 | 2,085 |
Accumulated amortization: | ||
Total accumulated amortization | (542) | (284) |
Intangible assets, net | 3,061 | |
Below-market lease intangibles | ||
Intangible liabilities: | ||
Below-market lease intangibles | (19,281) | (9,750) |
Accumulated amortization | 1,768 | 1,249 |
Intangible liabilities, net | $ (17,513) | $ (8,501) |
Intangibles - Narrative (Detail
Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Amortization expense relating to intangible assets | $ 2.6 | $ 0.4 | $ 4.2 | $ 2.3 |
Income from amortization of intangible liabilities | $ 0.3 | $ 0.2 | $ 0.5 | $ 0.4 |
In-place lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 6 years | |||
Above-market lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 6 years | |||
Leasing commissions | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 7 years | |||
Other intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 6 years | |||
Below-market lease intangibles | ||||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||||
Weighted average amortization of useful life | 10 years |
Intangibles - Estimated Future
Intangibles - Estimated Future Amortization (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
In-place Lease Intangibles and Other Intangibles | ||
Intangible assets, net | $ 39,867 | $ 32,728 |
Below-Market Lease Intangibles | ||
Intangible liabilities, net | (17,513) | (8,501) |
In-place lease intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2021 (remaining) | 3,396 | |
2022 | 4,988 | |
2023 | 3,368 | |
2024 | 3,233 | |
2025 | 2,853 | |
2026 | 1,478 | |
Thereafter | 5,669 | |
Intangible assets, net | 24,985 | |
Above-market lease intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2021 (remaining) | 12 | |
2022 | 20 | |
2023 | 17 | |
2024 | 17 | |
2025 | 17 | |
2026 | 17 | |
Thereafter | 14 | |
Intangible assets, net | 114 | |
Leasing commissions | ||
In-place Lease Intangibles and Other Intangibles | ||
2021 (remaining) | 1,006 | |
2022 | 1,857 | |
2023 | 1,724 | |
2024 | 1,668 | |
2025 | 1,472 | |
2026 | 923 | |
Thereafter | 3,057 | |
Intangible assets, net | 11,707 | |
Other intangibles | ||
In-place Lease Intangibles and Other Intangibles | ||
2021 (remaining) | 266 | |
2022 | 587 | |
2023 | 565 | |
2024 | 552 | |
2025 | 478 | |
2026 | 196 | |
Thereafter | 417 | |
Intangible assets, net | 3,061 | |
Below-market lease intangibles | ||
Below-Market Lease Intangibles | ||
2021 (remaining) | (957) | |
2022 | (1,869) | |
2023 | (1,851) | |
2024 | (1,843) | |
2025 | (1,788) | |
2026 | (1,653) | |
Thereafter | (7,552) | |
Intangible liabilities, net | $ (17,513) | $ (8,501) |
Credit Facility and Mortgages_3
Credit Facility and Mortgages Payable - Narrative (Details) - USD ($) | Oct. 24, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jun. 11, 2019 | Dec. 17, 2018 |
LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Loan receivable, reference rate | 0.10% | |||||||
Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum Facility Size | $ 210,000,000 | $ 210,000,000 | $ 210,000,000 | $ 150,000,000 | ||||
Credit facility | 141,277,000 | 141,277,000 | $ 129,277,000 | |||||
Outstanding accrued interest | 100,000 | 100,000 | ||||||
Interest expense | 400,000 | $ 400,000 | 800,000 | $ 1,100,000 | ||||
Mortgages Payable | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility | 76,078,000 | 76,078,000 | 47,574,000 | |||||
Outstanding accrued interest | 200,000 | 200,000 | ||||||
Interest expense | 500,000 | $ 400,000 | 900,000 | $ 800,000 | ||||
Mortgages payable | $ 76,750,000 | $ 76,750,000 | $ 48,000,000 | |||||
Unsecured Revolving Loans | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum Facility Size | $ 60,000,000 | |||||||
Credit facility maturity period | 3 years | |||||||
Unsecured Revolving Loans | Adjusted LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
LIBOR rate | 1.30% | |||||||
Unsecured Revolving Loans | Adjusted LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
LIBOR rate | 1.90% | |||||||
Unsecured Revolving Loans | Credit Agreement With Accordion Feature | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum Facility Size | $ 500,000,000 |
Credit Facility and Mortgages_4
Credit Facility and Mortgages Payable - Summary of Credit Facility (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 11, 2019 | Dec. 17, 2018 | Oct. 24, 2018 | |
Unsecured Revolving Loans | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Facility Size | $ 60,000,000 | |||||
Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Facility Size | $ 210,000,000 | $ 210,000,000 | $ 210,000,000 | $ 150,000,000 | ||
Principal Balance Outstanding | $ 141,277,000 | $ 141,277,000 | $ 129,277,000 | |||
Amended Credit Agreement | Unsecured Revolving Loans | ||||||
Debt Instrument [Line Items] | ||||||
Weighted-average interest rate | 1.45% | 1.46% |
Credit Facility and Mortgages_5
Credit Facility and Mortgages Payable - Summary of Mortgage Payable (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Mortgages Payable | ||
Debt Instrument [Line Items] | ||
Total fixed rate mortgages payable | $ 76,750,000 | $ 48,000,000 |
Deferred financing costs, net | (672,000) | (426,000) |
Total | $ 76,078,000 | 47,574,000 |
Main Street at Kingwood | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.15% | |
Maximum Principal Amount | $ 48,000,000 | |
Total fixed rate mortgages payable | $ 48,000,000 | 48,000,000 |
Tacara Steiner Ranch | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.62% | |
Maximum Principal Amount | $ 28,750,000 | |
Total fixed rate mortgages payable | $ 28,750,000 | $ 0 |
Credit Facility and Mortgages_6
Credit Facility and Mortgages Payable - Long-term Debt Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
2021 | $ 141,277 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total | 141,277 | $ 129,277 |
Mortgages Payable | ||
Debt Instrument [Line Items] | ||
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 76,750 | |
Total | 76,078 | 47,574 |
Total | $ 76,750 | $ 48,000 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Summary of Components of Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Straight-line rent receivable | $ 4,991 | $ 4,196 |
Prepaid expenses | 1,487 | 407 |
Receivables | 966 | 2,072 |
Deferred financing costs on credit facility, net | 137 | 368 |
Other | 96 | 94 |
Total | $ 7,677 | $ 7,137 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Real estate taxes payable | $ 2,614 | $ 1,996 |
Accounts payable and accrued expenses | 2,333 | 1,598 |
Tenant security deposits | 1,054 | 1,117 |
Prepaid rental income | 1,047 | 1,440 |
Accrued interest expense | 331 | 247 |
Other | 37 | 612 |
Total | $ 7,416 | $ 7,010 |
Related Party Transactions - Su
Related Party Transactions - Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Class T Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class S Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class D Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class I Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 1.25% |
Class N Shares | |
Related Party Transaction [Line Items] | |
Advisory Fee (% of NAV) | 0.65% |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)jointVenture | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)jointVenture | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||
Due to affiliates | $ 15,832,000 | $ 15,832,000 | $ 9,374,000 | ||
Percent of gross proceeds from primary portion of public offering | 10.00% | ||||
NexCore | |||||
Related Party Transaction [Line Items] | |||||
Number of joint venture arrangements | jointVenture | 2 | 2 | |||
Class T Shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Class S shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Class D Shares | |||||
Related Party Transaction [Line Items] | |||||
Percentage of gross proceeds from sale of shares | 8.75% | ||||
Advisory fees | |||||
Related Party Transaction [Line Items] | |||||
related party expense | $ 1,300,000 | $ 600,000 | $ 2,200,000 | $ 1,400,000 | |
Management fees | |||||
Related Party Transaction [Line Items] | |||||
related party expense | 100,000 | ||||
Management fees | NexCore | |||||
Related Party Transaction [Line Items] | |||||
related party expense | 0 | 100,000 | 0 | ||
Acquisition fees | NexCore | |||||
Related Party Transaction [Line Items] | |||||
related party expense | 48,000 | $ 0 | 100,000 | $ 0 | |
Accrued stockholder servicing fees | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 11,184,000 | 11,184,000 | $ 4,726,000 | ||
Accrued stockholder servicing fees | Class T Shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 11,200,000 | 11,200,000 | |||
Accrued stockholder servicing fees | Class S shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 11,200,000 | 11,200,000 | |||
Accrued stockholder servicing fees | Class D Shares | |||||
Related Party Transaction [Line Items] | |||||
Due to affiliates | 11,200,000 | 11,200,000 | |||
Accounts Payable, Accrued Expenses and Other Liabilities | |||||
Related Party Transaction [Line Items] | |||||
Accrued advisory fees | $ 500,000 | $ 500,000 |
Related Party Transactions - Up
Related Party Transactions - Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV (Details) | Jun. 30, 2021 |
Class T Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3.00% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.50% |
Stockholder Servicing Fee (% of NAV) | 0.85% |
Class T Shares | Advisor | |
Related Party Transaction [Line Items] | |
Stockholder Servicing Fee (% of NAV) | 0.65% |
Class T Shares | Dealer | |
Related Party Transaction [Line Items] | |
Stockholder Servicing Fee (% of NAV) | 0.20% |
Class S Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 3.50% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.00% |
Stockholder Servicing Fee (% of NAV) | 0.85% |
Class D Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0.00% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.00% |
Stockholder Servicing Fee (% of NAV) | 0.25% |
Class I Shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions (% of Transaction Price) | 0.00% |
Maximum Upfront Dealer Manager Fees (% of Transaction Price) | 0.00% |
Stockholder Servicing Fee (% of NAV) | 0.00% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Components of Due to Affiliates (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 15,832 | $ 9,374 |
Class T Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class S Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class D Shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 11,184 | 4,726 |
Threshold percent of gross proceeds | 10.00% | |
Accrued stockholder servicing fees | Class T Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 11,200 | |
Accrued stockholder servicing fees | Class S Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 11,200 | |
Accrued stockholder servicing fees | Class D Shares | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 11,200 | |
Period from date of issuance for future shares issued | 35 years | |
Accrued stockholder servicing fees | Class T and S | ||
Related Party Transaction [Line Items] | ||
Period from date of issuance for future shares issued | 7 years | |
Advanced organization and offering expenses | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 4,648 | $ 4,648 |
Risks and Contingencies (Detail
Risks and Contingencies (Details) - Settlement with Office Property Tenant $ in Millions | Sep. 01, 2021USD ($)installment | Jun. 30, 2021USD ($) |
Loss Contingencies [Line Items] | ||
Amount awarded from other party | $ 0.4 | |
Forecast | ||
Loss Contingencies [Line Items] | ||
Amount awarded from other party | $ 0.5 | |
Number of equal installments of amount awarded from other party | installment | 36 |
Tenant Leases - Narrative (Deta
Tenant Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Rental revenue | $ 12,131 | $ 9,562 | $ 23,393 | $ 19,020 |
Tenant Leases - Schedule of Min
Tenant Leases - Schedule of Minimum Rents Expects to Receive for Industrial, Retail and Office Properties, Excluding Tenant Reimbursements of Operating Expenses (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining) | $ 14,253 |
2022 | 28,424 |
2023 | 27,173 |
2024 | 26,635 |
2025 | 24,253 |
2026 | 17,400 |
Thereafter | 64,305 |
Total | $ 202,443 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Jul. 01, 2021 | Mar. 31, 2021 | Oct. 08, 2020 | Jan. 04, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 02, 2019 |
Equity [Line Items] | ||||||||||
Number of shares, authorized to issue (in shares) | 2,200,000,000 | 2,200,000,000 | ||||||||
Preferred stock preference percentage | 12.00% | |||||||||
Quarterly distribution payable period | 30 days | |||||||||
Dividends payable | $ 3,000,000 | $ 3,000,000 | $ 2,065,000 | |||||||
Dividends | 7,600,000 | $ 5,700,000 | $ 13,900,000 | $ 14,400,000 | ||||||
Repurchase fulfillment term | 24 months | |||||||||
Common stock repurchased | $ 869,000 | 651,000 | $ 1,159,000 | 651,000 | ||||||
Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
TIAA | ||||||||||
Equity [Line Items] | ||||||||||
Restricted stock, vesting period | 1 year | |||||||||
Percentage of shares to be repurchased at transaction price | 95.00% | |||||||||
Non-employee Directors | Subsequent Event | ||||||||||
Equity [Line Items] | ||||||||||
Restricted stock, vesting period | 1 year | |||||||||
Annual retainer | $ 75,000 | |||||||||
Percent of annual compensation paid in cash | 75.00% | |||||||||
Percent of annual compensation paid in share-based payment | 25.00% | |||||||||
Non-employee Directors | Restricted Stock Grants | ||||||||||
Equity [Line Items] | ||||||||||
Annual compensation fee, percentage | 25.00% | |||||||||
Restricted stock, vesting period | 1 year | |||||||||
Non-employee Directors | Restricted Stock Grants | Accounts Payable, Accrued Expenses and Other Liabilities | ||||||||||
Equity [Line Items] | ||||||||||
Accrued compensation expense | $ 16,875 | $ 16,875 | $ 33,750 | $ 33,750 | ||||||
Audit Committee Chairperson | Subsequent Event | ||||||||||
Equity [Line Items] | ||||||||||
Restricted stock, vesting period | 1 year | |||||||||
Annual retainer | $ 15,000 | |||||||||
Percent of annual compensation paid in cash | 75.00% | |||||||||
Percent of annual compensation paid in share-based payment | 25.00% | |||||||||
Class T Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 5,539,901 | 5,539,901 | 3,248,104 | |||||||
Common stock outstanding (in shares) | 5,539,901 | 5,539,901 | 3,248,104 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1237 | $ 0.2439 | ||||||||
Class T Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
Class S Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 9,607,787 | 9,607,787 | 2,832,107 | |||||||
Common stock outstanding (in shares) | 9,607,787 | 9,607,787 | 2,832,107 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1240 | $ 0.2443 | ||||||||
Class S Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
Class D Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 2,519,593 | 2,519,593 | 1,405,968 | |||||||
Common stock outstanding (in shares) | 2,519,593 | 2,519,593 | 1,405,968 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1400 | $ 0.2755 | ||||||||
Class D Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
Class I Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 12,043,885 | 12,043,885 | 4,461,507 | |||||||
Common stock outstanding (in shares) | 12,043,885 | 12,043,885 | 4,461,507 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1469 | $ 0.2889 | ||||||||
Class I Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
Class N Shares | ||||||||||
Equity [Line Items] | ||||||||||
Common stock issued (in shares) | 29,730,608 | 29,730,608 | 29,730,608 | |||||||
Common stock outstanding (in shares) | 29,730,608 | 29,730,608 | 29,730,608 | |||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1619 | $ 0.3176 | ||||||||
Class N Shares | Gross distribution per share of common stock | ||||||||||
Equity [Line Items] | ||||||||||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 | ||||||||
Class N Shares | TIAA | ||||||||||
Equity [Line Items] | ||||||||||
Common stock value under purchase agreement | $ 300,000,000 | $ 300,000,000 | ||||||||
Initial investment threshold | $ 200,000 | $ 200,000 | ||||||||
Class D and Class S and Class T and Class I | TIAA | Maximum | ||||||||||
Equity [Line Items] | ||||||||||
Percentage of repurchase plan limits per month | 2.00% | |||||||||
Percentage of repurchase plan limits per quarter | 5.00% | |||||||||
Private Placement | Series A Preferred Stock | ||||||||||
Equity [Line Items] | ||||||||||
Sale of stock (in shares) | 125 | 125 | ||||||||
Sale of stock (in dollars per share) | $ 1,000 | |||||||||
Shares redeemed (in shares) | 125 |
Equity - Summary of Capital Sto
Equity - Summary of Capital Stock Issuable (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Preferred stock authorized (in shares) | 100,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Number of shares, authorized to issue (in shares) | 2,200,000,000 | |
Class T Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class S shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class D Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class I Shares | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Class N | ||
Class of Stock [Line Items] | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Equity - Summary of Sales of Co
Equity - Summary of Sales of Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 45,963 | 41,679 |
Issuance of common stock (in shares) | 13,450 | 17,680 |
Distribution reinvestment (in shares) | 110 | 185 |
Vested stock (in shares) | 6 | |
Shares repurchased (in shares) | (80) | (107) |
Ending balance (in shares) | 59,443 | 59,443 |
Class T Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 3,824 | 3,248 |
Issuance of common stock (in shares) | 1,697 | 2,250 |
Distribution reinvestment (in shares) | 24 | 47 |
Vested stock (in shares) | 0 | |
Shares repurchased (in shares) | (5) | (5) |
Ending balance (in shares) | 5,540 | 5,540 |
Class S Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 4,767 | 2,832 |
Issuance of common stock (in shares) | 4,815 | 6,738 |
Distribution reinvestment (in shares) | 36 | 53 |
Vested stock (in shares) | 0 | |
Shares repurchased (in shares) | (10) | (15) |
Ending balance (in shares) | 9,608 | 9,608 |
Class D Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 1,699 | 1,406 |
Issuance of common stock (in shares) | 813 | 1,107 |
Distribution reinvestment (in shares) | 12 | 23 |
Vested stock (in shares) | 0 | |
Shares repurchased (in shares) | (4) | (16) |
Ending balance (in shares) | 2,520 | 2,520 |
Class I Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 5,942 | 4,462 |
Issuance of common stock (in shares) | 6,125 | 7,585 |
Distribution reinvestment (in shares) | 38 | 62 |
Vested stock (in shares) | 6 | |
Shares repurchased (in shares) | (61) | (71) |
Ending balance (in shares) | 12,044 | 12,044 |
Class N Shares | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance (in shares) | 29,731 | 29,731 |
Issuance of common stock (in shares) | 0 | 0 |
Distribution reinvestment (in shares) | 0 | 0 |
Vested stock (in shares) | 0 | |
Shares repurchased (in shares) | 0 | 0 |
Ending balance (in shares) | 29,731 | 29,731 |
Equity - Summary of Declared Di
Equity - Summary of Declared Distributions (Details) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | $ 0.1787 | $ 0.3498 |
Class T Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1237 | 0.2439 |
Class T Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1787 | 0.3498 |
Class T Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0315 | 0.0603 |
Class T Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0235 | 0.0456 |
Class S Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1240 | 0.2443 |
Class S Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1787 | 0.3498 |
Class S Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0313 | 0.0600 |
Class S Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0234 | 0.0455 |
Class D Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1400 | 0.2755 |
Class D Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1787 | 0.3498 |
Class D Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0317 | 0.0608 |
Class D Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0070 | 0.0135 |
Class I Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1469 | 0.2889 |
Class I Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1787 | 0.3498 |
Class I Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0318 | 0.0609 |
Class I Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0 | 0 |
Class N Shares | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1619 | 0.3176 |
Class N Shares | Gross distribution per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.1787 | 0.3498 |
Class N Shares | Advisory fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | 0.0168 | 0.0322 |
Class N Shares | Stockholder servicing fee per share of common stock | ||
Distribution [Line Items] | ||
Net distributions per share of common stock (in dollars per share) | $ 0 | $ 0 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 8 |
Segment Reporting - Summary of
Segment Reporting - Summary of Total Assets by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 884,205 | $ 586,523 |
Operating Segments | Multifamily | ||
Segment Reporting Information [Line Items] | ||
Total assets | 163,096 | 91,355 |
Operating Segments | Industrial | ||
Segment Reporting Information [Line Items] | ||
Total assets | 162,471 | 167,518 |
Operating Segments | Healthcare | ||
Segment Reporting Information [Line Items] | ||
Total assets | 139,059 | 61,397 |
Operating Segments | Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 84,467 | 86,154 |
Operating Segments | Office | ||
Segment Reporting Information [Line Items] | ||
Total assets | 71,470 | 72,810 |
Operating Segments | Real Estate-Related Securities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 58,432 | 40,052 |
Operating Segments | International Affiliated Funds | ||
Segment Reporting Information [Line Items] | ||
Total assets | 49,864 | 51,008 |
Other (Corporate) | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 155,346 | $ 16,229 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Financial Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Rental revenue | $ 12,131 | $ 9,562 | $ 23,393 | $ 19,020 |
Expenses: | ||||
Rental property operating expenses | 3,544 | 2,703 | 7,058 | 5,665 |
Depreciation and amortization | (6,754) | (4,086) | (12,238) | (8,230) |
Income from commercial mortgage loan | 0 | 246 | 0 | 491 |
Unrealized gain on commercial mortgage loan | 0 | 331 | 0 | 0 |
Realized and unrealized income (loss) from real estate-related securities | 5,904 | 3,429 | 8,785 | (4,238) |
Income from equity investment in unconsolidated international affiliated fund | (374) | (1,617) | 315 | 73 |
General and administrative expenses | (874) | (918) | (1,931) | (1,952) |
Advisory fee due to affiliate | (1,631) | (800) | (2,695) | (1,527) |
Interest income | 50 | 35 | 110 | 70 |
Interest expense | (1,002) | (905) | (1,945) | (2,094) |
Net income (loss) | 3,906 | 2,574 | 6,736 | (4,052) |
Net income attributable to preferred stock | 3 | 3 | 11 | 7 |
Net income (loss) attributable to common stockholders | 3,903 | 2,571 | 6,725 | (4,059) |
Industrial | ||||
Revenues | ||||
Rental revenue | 3,586 | 2,512 | 7,146 | 4,869 |
Expenses: | ||||
Rental property operating expenses | 1,096 | 672 | 2,205 | 1,367 |
Multifamily | ||||
Revenues | ||||
Rental revenue | 2,615 | 2,322 | 4,995 | 4,664 |
Expenses: | ||||
Rental property operating expenses | 1,192 | 1,104 | 2,373 | 2,249 |
Healthcare | ||||
Revenues | ||||
Rental revenue | 2,395 | 1,146 | 4,160 | 2,272 |
Expenses: | ||||
Rental property operating expenses | 445 | 296 | 766 | 583 |
Office | ||||
Revenues | ||||
Rental revenue | 1,791 | 1,965 | 3,665 | 3,944 |
Expenses: | ||||
Rental property operating expenses | 482 | 490 | 1,037 | 1,006 |
Retail | ||||
Revenues | ||||
Rental revenue | 1,744 | 1,617 | 3,427 | 3,271 |
Expenses: | ||||
Rental property operating expenses | $ 329 | $ 141 | $ 677 | $ 460 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | Sep. 01, 2021USD ($)installment | Aug. 01, 2021USD ($)$ / sharesshares | Jul. 31, 2021$ / sharesshares | Jul. 28, 2021USD ($) | Jul. 16, 2021USD ($) | Jul. 01, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Aug. 09, 2021USD ($) |
Subsequent Event [Line Items] | |||||||||||
Issuance of shares | $ | $ 140,951 | $ 10,901 | $ 184,016 | $ 50,869 | |||||||
Shares repurchased (in shares) | 80,000 | 107,000 | |||||||||
Settlement with Office Property Tenant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Amount awarded from other party | $ | $ 400 | ||||||||||
Forecast | Settlement with Office Property Tenant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Amount awarded from other party | $ | $ 500 | ||||||||||
Number of equal installments of amount awarded from other party | installment | 36 | ||||||||||
Class T Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares repurchased (in shares) | 5,000 | 5,000 | |||||||||
Class S Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares repurchased (in shares) | 10,000 | 15,000 | |||||||||
Class D Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares repurchased (in shares) | 4,000 | 16,000 | |||||||||
Class I Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares repurchased (in shares) | 61,000 | 71,000 | |||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments of dividends | $ | $ 3,000 | ||||||||||
Issuance of shares | $ | $ 58,200 | $ 70,500 | |||||||||
Subsequent Event | Settlement with Office Property Tenant | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from settlement | $ | $ 400 | ||||||||||
Subsequent Event | Sparrow | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Single family housing project investments, commitment | $ | $ 15,000 | ||||||||||
Subsequent Event | Class T Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 330,061 | 555,417 | |||||||||
Purchase price per share (in dollars per share) | $ / shares | $ 11.22 | $ 11.07 | |||||||||
Subsequent Event | Class S Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 2,042,331 | 1,282,282 | |||||||||
Purchase price per share (in dollars per share) | $ / shares | $ 11.15 | $ 11.01 | |||||||||
Shares repurchased (in shares) | 3,991 | ||||||||||
Shares repurchased (in dollars per share) | $ / shares | $ 11.15 | ||||||||||
Subsequent Event | Class D Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 399,763 | 168,792 | |||||||||
Purchase price per share (in dollars per share) | $ / shares | $ 11.30 | $ 11.15 | |||||||||
Shares repurchased (in shares) | 7,599 | ||||||||||
Shares repurchased (in dollars per share) | $ / shares | $ 11.30 | ||||||||||
Subsequent Event | Class I Shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Issuance of common stock (in shares) | 2,409,656 | 4,336,708 | |||||||||
Purchase price per share (in dollars per share) | $ / shares | $ 11.30 | $ 11.15 | |||||||||
Shares repurchased (in shares) | 31,348 | ||||||||||
Shares repurchased (in dollars per share) | $ / shares | $ 11.30 |