Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-55428 | |
Entity Registrant Name | STEADFAST APARTMENT REIT, INC. | |
Entity Central Index Key | 0001585219 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 36-4769184 | |
Entity Address, Address Line One | 18100 Von Karman Avenue | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92612 | |
City Area Code | 949 | |
Local Phone Number | 852-0700 | |
Title of 12(b) Security | None | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 109,364,689 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Real Estate: | ||
Land | $ 344,242,749 | $ 151,294,208 |
Building and improvements | 2,885,651,638 | 1,369,256,465 |
Tenant origination and absorption costs | 41,078,737 | 0 |
Total real estate held for investment, cost | 3,270,973,124 | 1,520,550,673 |
Less accumulated depreciation and amortization | (358,922,535) | (277,033,046) |
Total real estate held for investment, net | 2,912,050,589 | 1,243,517,627 |
Real estate held for development | 29,745,781 | 5,687,977 |
Real estate held for sale, net | 0 | 21,665,762 |
Total real estate, net | 2,941,796,370 | 1,270,871,366 |
Cash and cash equivalents | 330,674,998 | 74,806,649 |
Restricted cash | 36,667,410 | 73,614,452 |
Investment in unconsolidated joint venture | 18,984,491 | 0 |
Rents and other receivables | 5,943,396 | 2,032,774 |
Assets related to real estate held for sale | 0 | 118,570 |
Other assets | 4,209,681 | 5,513,315 |
Total assets | 3,338,276,346 | 1,426,957,126 |
Liabilities: | ||
Accounts payable and accrued liabilities | 61,749,415 | 30,265,713 |
Notes Payable, net: | ||
Mortgage notes payable, net | 1,432,621,678 | 560,098,815 |
Credit facilities, net | 744,430,795 | 548,460,230 |
Total notes payable, net | 2,177,052,473 | 1,108,559,045 |
Distributions payable | 8,232,272 | 4,021,509 |
Due to affiliates | 5,994,733 | 7,305,570 |
Liabilities related to real estate held for sale | 0 | 788,720 |
Total liabilities | 2,253,028,893 | 1,150,940,557 |
Commitments and contingencies (Note 11) | ||
Redeemable common stock | 0 | 1,202,711 |
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,596,591,653 | 698,453,981 |
Cumulative distributions and net losses | (526,888,587) | (424,166,210) |
Total Steadfast Apartment REIT, Inc. (“STAR”) stockholders’ equity | 1,070,797,453 | 274,813,858 |
Noncontrolling interest | 14,450,000 | 0 |
Total equity | 1,085,247,453 | 274,813,858 |
Liabilities and equity: | 3,338,276,346 | 1,426,957,126 |
Common Stock | ||
Notes Payable, net: | ||
Distributions payable | 8,232,272 | 4,021,509 |
Stockholders’ Equity: | ||
Value of implied STAR common stock issued as consideration | 1,094,377 | 526,077 |
Convertible Stock | ||
Stockholders’ Equity: | ||
Value of implied STAR common stock issued as consideration | 0 | 10 |
Class A Convertible Stock | ||
Stockholders’ Equity: | ||
Value of implied STAR common stock issued as consideration | $ 10 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 999,998,000 | 999,998,000 |
Stock, shares issued (in shares) | 109,437,702 | 52,607,695 |
Stock, shares outstanding (in shares) | 109,437,702 | 52,607,695 |
Convertible Stock | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, shares issued (in shares) | 0 | 1,000 |
Stock, shares outstanding (in shares) | 0 | 1,000 |
Class A Convertible Stock | ||
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, shares issued (in shares) | 1,000 | 0 |
Stock, shares outstanding (in shares) | 1,000 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Rental income | $ 79,612,668 | $ 42,887,126 | $ 132,879,341 | $ 85,204,046 |
Other income | 682,926 | 327,702 | 1,130,193 | 596,009 |
Total revenues | 80,295,594 | 43,214,828 | 134,009,534 | 85,800,055 |
Expenses: | ||||
Operating, maintenance and management | 19,719,766 | 10,509,511 | 32,216,328 | 20,567,785 |
Real estate taxes and insurance | 13,667,771 | 6,443,394 | 22,411,216 | 13,024,583 |
Fees to affiliates | 13,709,333 | 6,265,958 | 22,136,629 | 12,331,606 |
Depreciation and amortization | 53,455,666 | 18,515,635 | 82,031,561 | 36,797,927 |
Interest expense | 19,715,318 | 12,165,781 | 34,106,272 | 24,399,076 |
General and administrative expenses | 5,272,855 | 1,800,880 | 7,703,154 | 3,665,149 |
Impairment of real estate | 5,039,937 | 0 | 5,039,937 | 0 |
Total expenses | 130,580,646 | 55,701,159 | 205,645,097 | 110,786,126 |
Loss before other (loss) income | (50,285,052) | (12,486,331) | (71,635,563) | (24,986,071) |
Other (loss) income: | ||||
Gain on sale of real estate, net | 0 | 0 | 11,384,599 | 0 |
Interest income | 134,262 | 161,887 | 387,516 | 340,564 |
Insurance proceeds in excess of losses incurred | 57,689 | 331,434 | 124,412 | 334,834 |
Equity in loss from unconsolidated joint venture | (2,968,207) | 0 | (3,003,400) | 0 |
Loss on debt extinguishment | 0 | 0 | 0 | (41,609) |
Total other (loss) income | (2,776,256) | 493,321 | 8,893,127 | 633,789 |
Net loss | (53,061,308) | (11,993,010) | (62,742,436) | (24,352,282) |
Income allocated to noncontrolling interest | 163,314 | 0 | 163,314 | 0 |
Net loss attributable to common stockholders | $ (53,224,622) | $ (11,993,010) | $ (62,905,750) | $ (24,352,282) |
Loss per common share - basic and diluted (in dollars per share) | $ (0.49) | $ (0.23) | $ (0.71) | $ (0.47) |
Weighted Average Number of Shares Outstanding, Basic | 109,139,963 | 52,123,442 | 88,660,741 | 51,999,327 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | SIR Merger Agreement | STAR III Merger Agreement | Common Stock | Common StockCommon Stock | Common StockCommon StockSIR Merger Agreement | Common StockCommon StockSTAR III Merger Agreement | Common StockConvertible Stock | Common StockClass A Convertible Stock | Additional Paid-In Capital | Additional Paid-In CapitalSIR Merger Agreement | Additional Paid-In CapitalSTAR III Merger Agreement | Cumulative Distributions & Net Losses | Total STAR Stockholders’ Equity | Total STAR Stockholders’ EquitySIR Merger Agreement | Total STAR Stockholders’ EquitySTAR III Merger Agreement | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 51,723,801 | 1,000 | |||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 345,987,960 | $ 517,238 | $ 10 | $ 684,140,823 | $ (338,670,111) | ||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||
Issuance of common stock (in shares) | 693,889 | ||||||||||||||||
Issuance of common stock | 10,757,262 | $ 6,938 | 10,750,324 | ||||||||||||||
Repurchase of common stock (in shares) | (274,845) | ||||||||||||||||
Repurchase of common stock | (4,000,000) | $ (2,748) | (3,997,252) | ||||||||||||||
Distributions declared | (23,196,260) | $ (23,196,260) | (23,196,260) | ||||||||||||||
Amortization of stock-based compensation | 27,792 | 27,792 | |||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (24,352,282) | ||||||||||||||||
Net loss | (24,352,282) | (24,352,282) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 52,142,845 | 1,000 | |||||||||||||||
Ending balance at Jun. 30, 2019 | 305,224,472 | $ 521,428 | $ 10 | 690,921,687 | (386,218,653) | ||||||||||||
Beginning balance (in shares) at Mar. 31, 2019 | 51,939,159 | 1,000 | |||||||||||||||
Beginning balance at Mar. 31, 2019 | 325,509,613 | $ 519,392 | $ 10 | 687,531,131 | (362,540,920) | ||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||
Issuance of common stock (in shares) | 339,571 | ||||||||||||||||
Issuance of common stock | 5,378,696 | $ 3,395 | 5,375,301 | ||||||||||||||
Repurchase of common stock (in shares) | (135,885) | ||||||||||||||||
Repurchase of common stock | (2,000,000) | $ (1,359) | (1,998,641) | ||||||||||||||
Distributions declared | (11,684,723) | (11,684,723) | (11,684,723) | ||||||||||||||
Amortization of stock-based compensation | 13,896 | 13,896 | |||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (11,993,010) | ||||||||||||||||
Net loss | (11,993,010) | (11,993,010) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2019 | 52,142,845 | 1,000 | |||||||||||||||
Ending balance at Jun. 30, 2019 | 305,224,472 | $ 521,428 | $ 10 | 690,921,687 | (386,218,653) | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 52,607,695 | 1,000 | |||||||||||||||
Beginning balance at Dec. 31, 2019 | 274,813,858 | $ 526,077 | $ 10 | 698,453,981 | (424,166,210) | $ 274,813,858 | |||||||||||
Beginning balance at Dec. 31, 2019 | 274,813,858 | ||||||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||
Issuance of common stock (in shares) | 1,016,155 | 43,775,314 | 12,240,739 | ||||||||||||||
Issuance of common stock | 15,639,455 | $ 693,400,974 | $ 193,893,305 | $ 10,162 | $ 437,753 | $ 122,407 | 15,629,293 | $ 692,963,221 | $ 193,770,898 | 15,639,455 | $ 693,400,974 | $ 193,893,305 | |||||
Issuance of OP Units | 14,450,000 | $ 14,450,000 | |||||||||||||||
Exchange of convertible common stock into Class A convertible common stock (in shares) | (1,000) | 1,000 | |||||||||||||||
Exchange of convertible common stock into Class A convertible common stock | $ (10) | $ 10 | |||||||||||||||
Transfers from redeemable common stock | (1,383,318) | (1,383,318) | (1,383,318) | ||||||||||||||
Repurchase of common stock (in shares) | (202,201) | ||||||||||||||||
Repurchase of common stock | (2,907,827) | $ (2,022) | (2,905,805) | (2,907,827) | |||||||||||||
Distributions declared | (39,979,941) | (39,816,627) | (39,816,627) | (163,314) | |||||||||||||
Distributions declared | (39,979,942) | ||||||||||||||||
Amortization of stock-based compensation | 63,383 | 63,383 | 63,383 | ||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (62,742,436) | (62,905,750) | (62,905,750) | 163,314 | |||||||||||||
Net loss | (62,905,750) | ||||||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 109,437,702 | 0 | 1,000 | ||||||||||||||
Ending balance at Jun. 30, 2020 | 1,085,247,453 | $ 1,094,377 | $ 0 | $ 10 | 1,596,591,653 | (526,888,587) | 1,070,797,453 | 14,450,000 | |||||||||
Ending balance at Jun. 30, 2020 | 1,070,797,453 | ||||||||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 108,898,231 | 0 | 1,000 | ||||||||||||||
Beginning balance at Mar. 31, 2020 | 1,139,981,479 | $ 1,088,982 | $ 0 | $ 10 | 1,588,131,358 | (449,238,871) | 1,139,981,479 | ||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||
Issuance of common stock (in shares) | 688,520 | ||||||||||||||||
Issuance of common stock | 10,555,300 | $ 6,885 | 10,548,415 | 10,555,300 | |||||||||||||
Issuance of OP Units | 14,450,000 | 14,450,000 | |||||||||||||||
Repurchase of common stock (in shares) | (149,049) | ||||||||||||||||
Repurchase of common stock | (2,110,537) | $ (1,490) | (2,109,047) | (2,110,537) | |||||||||||||
Distributions declared | (24,588,408) | (24,425,094) | (24,425,094) | (163,314) | |||||||||||||
Distributions declared | $ (24,588,408) | ||||||||||||||||
Amortization of stock-based compensation | 20,927 | 20,927 | 20,927 | ||||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (53,061,308) | (53,224,622) | (53,224,622) | 163,314 | |||||||||||||
Net loss | (53,224,622) | ||||||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 109,437,702 | 0 | 1,000 | ||||||||||||||
Ending balance at Jun. 30, 2020 | 1,085,247,453 | $ 1,094,377 | $ 0 | $ 10 | $ 1,596,591,653 | $ (526,888,587) | $ 1,070,797,453 | $ 14,450,000 | |||||||||
Ending balance at Jun. 30, 2020 | $ 1,070,797,453 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) - Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Distributions declared per common share (in dollars per share) | $ 0.224 | $ 0.224 | $ 0.448 | $ 0.446 |
Common Stock | ||||
Distributions declared per common share (in dollars per share) | $ 0.224 | $ 0.224 | $ 0.448 | $ 0.446 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (62,742,436) | $ (24,352,282) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 82,031,561 | 36,797,927 |
Fees to affiliates incurred in common stock | 6,620,823 | 0 |
Loss on disposal of buildings and improvements | 475,176 | 140,919 |
Amortization of deferred financing costs | 809,876 | 494,204 |
Amortization of stock-based compensation | 63,383 | 27,792 |
Amortization of below market leases | (2,594) | |
Change in fair value of interest rate cap agreements | 27,194 | 199,723 |
Gain on sale of real estate | (11,384,599) | 0 |
Impairment of real estate | 5,039,937 | 0 |
Amortization of loan premiums | (718,264) | |
Accretion of loan discounts | 189,824 | 0 |
Loss on debt extinguishment | 0 | 41,609 |
Insurance claim recoveries | (581,954) | (639,483) |
Equity in loss from unconsolidated joint venture | 3,003,400 | 0 |
Changes in operating assets and liabilities: | ||
Rents and other receivables | (1,328,708) | (89,038) |
Other assets | 2,131,230 | 259,566 |
Accounts payable and accrued liabilities | 6,033,823 | (2,702,679) |
Due to affiliates | (3,600,122) | 1,003,318 |
Net cash provided by operating activities | 26,067,550 | 11,181,576 |
Cash Flows from Investing Activities: | ||
Acquisition of real estate investments | (69,914,948) | 0 |
Cash acquired in connection with the Mergers, net of acquisition costs | 98,283,732 | 0 |
Acquisition of real estate held for development | (14,270,133) | (2,158,815) |
Additions to real estate investments | (10,434,613) | (9,883,640) |
Additions to real estate held for development | (5,324,771) | (102,284) |
Escrow deposits for pending real estate acquisitions | (1,000,000) | (700,100) |
Purchase of interest rate cap agreements | (47,000) | 0 |
Net proceeds from sale of real estate investments | 32,962,285 | 0 |
Proceeds from insurance claims | 807,033 | 714,483 |
Cash contribution to unconsolidated joint venture | (219,900) | 0 |
Cash distribution from unconsolidated joint venture | 360,700 | 0 |
Net cash provided by (used in) investing activities | 31,202,385 | (12,130,356) |
Cash Flows from Financing Activities: | ||
Principal payments on mortgage notes payable | (1,533,980) | (480,716) |
Borrowings from credit facilities | 198,808,000 | 0 |
Payments of commissions on sale of common stock | (49,951) | (113,998) |
Payment of deferred financing costs | (6,753,413) | 0 |
Distributions to common stockholders | (26,030,027) | (12,535,724) |
Repurchase of common stock | (2,907,827) | (4,000,000) |
Net cash provided by (used in) financing activities | 161,532,802 | (17,130,438) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 218,802,737 | (18,079,218) |
Cash, cash equivalents and restricted cash, beginning of the period | 148,539,671 | 72,738,775 |
Cash, cash equivalents and restricted cash, end of the period | 367,342,408 | 54,659,557 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid, net of amounts capitalized of $262,619 and $0 for the six months ended June 30, 2020 and 2019, respectively | 31,366,049 | 23,807,702 |
Supplemental Disclosures of Noncash Flow Transactions: | ||
Distributions payable | 8,232,272 | 3,856,773 |
Class A-2 OP Units issued for real estate | 14,450,000 | 0 |
Assumption of mortgage notes payable to acquire real estate | 81,315,122 | 0 |
Premiums on assumed mortgage notes payable | 945,235 | 0 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | 10,483,613 | 10,757,262 |
Redemptions payable | 4,000,000 | 2,000,000 |
Accounts payable and accrued liabilities from additions to real estate investments | 119,152 | 954,446 |
Due to affiliates from additions to real estate investments | 65,583 | 75,443 |
Accounts payable and accrued liabilities from additions to real estate held for development | 2,888,689 | 0 |
Affiliate accounts payable and accrued liabilities from additions to real estate held for development | 137,857 | 0 |
Due to affiliates for commissions on sales of common stock | 21,337 | 185,953 |
Operating lease right-of-use assets, net | 136,896 | 5,871 |
Operating lease liabilities, net | 148,406 | 5,936 |
Fair value of unconsolidated joint venture assumed in the SIR merger | 22,128,691 | 0 |
Investment management fees | Advisor | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Investment management fees payable in shares | 1,464,982 | 0 |
SIR Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Fair value of real estate acquired in merger | 1,100,742,973 | 0 |
Fair value of equity issued to shareholders in merger | 693,400,974 | 0 |
Fair value of debt assumed in merger | 506,023,982 | 0 |
Net assets assumed in merger | 3,553,868 | 0 |
Net liabilities assumed in merger | 21,782,302 | 0 |
STAR III Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Fair value of real estate acquired in merger | 479,559,505 | 0 |
Fair value of equity issued to shareholders in merger | 193,893,305 | 0 |
Fair value of debt assumed in merger | 289,407,045 | 0 |
Net assets assumed in merger | 2,060,898 | 0 |
Net liabilities assumed in merger | 7,334,616 | 0 |
SIR and STAR III Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Premiums on assumed mortgage notes payable | 14,899,631 | 0 |
Discount on assumed mortgage note payable in the SIR and STAR III mergers | $ 10,489,075 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Parenthetical - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | |||
Capitalized interest | $ 193,049 | $ 262,619 | $ 0 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Steadfast Apartment REIT, Inc. (the “Company”) was formed on August 22, 2013, as a Maryland corporation that elected to qualify as a real estate investment trust (“REIT”) commencing with the taxable year ended December 31, 2014. On September 3, 2013, the Company was initially capitalized with the sale of 13,500 shares of common stock to Steadfast REIT Investments, LLC (the “Sponsor”) at a purchase price of $15.00 per share for an aggregate purchase price of $202,500. Steadfast Apartment Advisor, LLC (the “Advisor”), a Delaware limited liability company formed on August 22, 2013, invested $1,000 in the Company in exchange for 1,000 shares of non-participating, non-voting convertible stock (the “Convertible Stock”). In connection with the SIR Merger and STAR III Merger (described below), the Advisor exchanged the Convertible Stock for new non-participating, non-voting Class A convertible stock (the “Class A Convertible Stock”), see Note 7 (Stockholders’ Equity) for more information. The Company owns and operates a diverse portfolio of multifamily properties located in targeted markets throughout the United States. As of June 30, 2020, the Company owned 70 multifamily properties comprising a total of 21,835 apartment homes, three parcels of land held for the development of apartment homes and a 10% interest in one unconsolidated joint venture that owned 20 multifamily properties with a total of 4,584 apartment homes. The Company may acquire additional multifamily properties or pursue multifamily developments in the future. For more information on the Company’s real estate portfolio, see Note 3 (Real Estate). Public Offering On December 30, 2013, the Company commenced its initial public offering to offer a maximum of 66,666,667 shares of common stock for sale to the public at an initial price of $15.00 per share (with discounts available for certain categories of purchasers) (the “Primary Offering”). The Company also registered up to 7,017,544 shares of common stock for sale pursuant to the Company’s distribution reinvestment plan (the “DRP,” and together with the Primary Offering, the “Public Offering”) at an initial price of $14.25 per share. The Company terminated its Public Offering on March 24, 2016, but continues to offer shares of common stock pursuant to the DRP. As of the termination of the Primary Offering on March 24, 2016, the Company had sold 48,625,651 shares of common stock in the Public Offering for gross proceeds of $724,849,631, including 1,011,561 shares of common stock issued pursuant to the DRP for gross offering proceeds of $14,414,752. On May 4, 2020, the Company registered up to 10,000,000 shares of common stock for sale pursuant to the DRP at an initial price of $15.23 per share. As of June 30, 2020, the Company had issued 110,963,247 shares of common stock for gross offering proceeds of $1,707,340,246, including 7,333,167 shares of common stock issued pursuant to the DRP for gross offering proceeds of $109,611,088. On April 17, 2020, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $15.23 as of March 6, 2020 (unaudited). In connection with the determination of an updated estimated value per share, the Company’s board of directors revised the price per share for the DRP to $15.23, effective May 1, 2020. The Company’s board of directors may again, from time to time, in its sole discretion, change the price at which the Company offers shares pursuant to the DRP to reflect changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. Merger with Steadfast Income REIT, Inc. On August 5, 2019, the Company, Steadfast Income REIT, Inc. (“SIR”), Steadfast Apartment REIT Operating Partnership, L.P., a wholly-owned subsidiary of the Company (the “STAR Operating Partnership”), Steadfast Income REIT Operating Partnership, L.P., the operating partnership of SIR (“SIR OP”), and SI Subsidiary, LLC, a wholly-owned subsidiary of the Company (“SIR Merger Sub”), entered into an Agreement and Plan of Merger (the “SIR Merger Agreement”). Pursuant to the terms and conditions of the SIR Merger Agreement, on March 6, 2020, SIR merged with and into SIR Merger Sub with SIR Merger Sub surviving the merger (the “SIR Merger”). Following the SIR Merger, SIR Merger Sub, as the surviving entity, continues as the Company’s wholly-owned subsidiary. In accordance with the applicable provisions of the Maryland General Corporation Law (“MGCL”), the separate existence of SIR ceased. At the effective time of the SIR Merger, each issued and outstanding share of SIR common stock (or a fraction thereof), $0.01 par value per share, converted into 0.5934 shares of the Company’s common stock. Merger with Steadfast Apartment REIT III, Inc. On August 5, 2019, the Company, Steadfast Apartment REIT III, Inc. (“STAR III”), the STAR Operating Partnership, Steadfast Apartment REIT III Operating Partnership, L.P., the operating partnership of STAR III (the “STAR III OP” ), and SIII Subsidiary, LLC, a wholly-owned subsidiary of the Company (“STAR III Merger Sub”), entered into an Agreement and Plan of Merger (the “STAR III Merger Agreement”). Pursuant to the terms and conditions of the STAR III Merger Agreement, on March 6, 2020, STAR III merged with and into STAR III Merger Sub with STAR III Merger Sub surviving the merger (the “STAR III Merger”, and together with the SIR Merger, the “Mergers”). Following the STAR III Merger, STAR III Merger Sub, as the surviving entity, continues as a wholly-owned subsidiary of the Company. In accordance with the applicable provisions of the MGCL, the separate existence of STAR III ceased. At the effective time of the STAR III Merger, each issued and outstanding share of STAR III common stock (or a fraction thereof), $0.01 par value per share, converted into 1.430 shares of the Company’s common stock. Combined Company Through the Mergers, the Company acquired 36 multifamily properties with 10,166 apartment homes and a 10% interest in one unconsolidated joint venture that owned 20 multifamily properties with a total of 4,584 apartment homes, all of which had a gross real estate value of approximately $1.5 billion. The Combined Company after the Mergers retained the name “Steadfast Apartment REIT, Inc.” Each merger qualified as a “reorganization” under, and within the meaning of, Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). For more information on the Mergers, see Note 3 (Real Estate). The Advisor and Operating Partnership The business of the Company is externally managed by the Advisor, pursuant to the Amended and Restated Advisory Agreement effective as of March 6, 2020, by and between the Company and the Advisor (as may be amended, the “Advisory Agreement”). The current term of the Advisory Agreement expires on March 6, 2021, and is subject to annual renewal by the Company’s board of directors. Subject to certain restrictions and limitations, the Advisor manages the Company’s day-to-day operations, manages the Company’s portfolio of properties, sources and presents investment opportunities to the Company’s board of directors and provides investment management services on the Company’s behalf. The Advisor has also entered into an Advisory Services Agreement with Crossroads Capital Advisors, LLC (“Crossroads Capital Advisors”), whereby Crossroads Capital Advisors provides certain advisory services to the Company on behalf of the Advisor. Stira Capital Markets Group, LLC (formerly known as Steadfast Capital Markets Group, LLC) (the “Dealer Manager”), an affiliate of the Advisor, served as the dealer manager for the Public Offering. The Dealer Manager was responsible for marketing the Company’s shares of common stock offered pursuant to the Public Offering. The Advisor, along with the Dealer Manager, provides marketing, investor relations and other administrative services on the Company’s behalf. Substantially all of the Company’s business is conducted through the STAR Operating Partnership, SIR OP and STAR III OP. The Company is the sole general partner of STAR Operating Partnership, SIR Merger Sub is the sole general partner of SIR OP and STAR III Merger Sub is the sole general partner of STAR III OP. The Company and Steadfast Apartment REIT Limited Partner, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company, entered into the Limited Partnership Agreement of Steadfast Apartment REIT Operating Partnership, L.P. on September 3, 2013 (as amended, the “STAR OP Partnership Agreement”). Each of SIR OP and STAR III OP are party to partnership agreements with SIR Merger Sub and STAR III Merger Sub, respectively, that have substantially the same terms as the STAR OP Partnership Agreement. As the context requires, in this quarterly report, references to the “Operating Partnership” refer to SIR OP, STAR OP and STAR III OP collectively and references to the “Operating Partnership Agreement” refer to the STAR OP Partnership Agreement and the SIR OP and STAR III OP partnership agreements collectively. As the Company accepted subscriptions for shares of its common stock, the Company transferred substantially all of the net offering proceeds from its Public Offering to the STAR Operating Partnership as a contribution in exchange for partnership interests and the Company’s percentage ownership in the STAR Operating Partnership increased proportionately. The Operating Partnership Agreement provides that the Operating Partnership is operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability and (3) ensure that the Operating Partnership will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code, which classification could result in the Operating Partnership being taxed as a corporation. In addition to the administrative and operating costs and expenses incurred by the Operating Partnership in acquiring and operating real properties, the Operating Partnership pays all of the Company’s administrative costs and expenses, and such expenses are treated as expenses of the Operating Partnership. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies There have been no significant changes to the Company’s accounting policies since it filed its audited financial statements in its Annual Report on Form 10-K for the year ended December 31, 2019, other than the Financial Accounting Standards Board (“FASB”) Staff Q&A related to Accounting Standards Codification (“ASC”) 842: Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic (the “ASC 842 Q&A”), and noncontrolling interest accounted for in accordance with ASC 810, Consolidation (“ASC 810”), each as further described below. For further information about the Company’s accounting policies, refer to the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2020. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries. The portion of an entity not wholly-owned by the Company is presented as noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB, ASC and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Noncontrolling interest Noncontrolling interest represents the portion of equity that the Company does not own in an entity that is consolidated. The Company’s noncontrolling interest is comprised of Class A-2 operating partnership units (“Class A-2 OP Units”) in STAR III OP, the Company’s indirect subsidiary. The Company accounts for noncontrolling interests in accordance with ASC 810, Consolidation (“ASC 810”). In accordance with ASC 810, the Company reports noncontrolling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. In accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), noncontrolling interests that are determined to be redeemable are carried at their fair value or redemption value as of the balance sheet date and reported as liabilities or temporary equity depending on their terms. A noncontrolling interest that fails to qualify as permanent equity will be reclassified as a liability or temporary equity. As of June 30, 2020, the Company’s noncontrolling interests qualified as permanent equity. There were no noncontrolling interests in 2019. For more information on the Company’s noncontrolling interest, see Note 8 (Noncontrolling Interest). Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. Real Estate Assets Real Estate Purchase Price Allocation Upon the acquisition of real estate properties or other entities owning real estate properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition under ASC 805, Business Combinations (“ASC 805”). For both business combinations and asset acquisitions the Company allocates the purchase price of real estate properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. Acquisition fees and costs associated with transactions determined to be asset acquisitions are capitalized in total real estate, net in the accompanying consolidated balance sheets. For the three and six months ended June 30, 2020, all of the Company’s acquisitions were determined to be asset acquisitions. The fair values of the tangible assets of an acquired property (which includes land, buildings and improvements) are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market conditions. The fair values of above-market and below-market in-place leases are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. The above-market and below-market lease values are capitalized as intangible lease assets or liabilities. Above-market lease values are amortized as an adjustment of rental revenue over the remaining terms of the respective leases. Below-market leases are amortized as an adjustment of rental revenue over the remaining terms of the respective leases, including any fixed rate bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market in-place lease values related to that lease would be recorded as an adjustment to rental revenue. The fair values of in-place leases include an estimate of direct costs associated with obtaining a new resident and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new resident include commissions, resident improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are amortized to depreciation and amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. Impairment of Real Estate Assets The Company accounts for its real estate assets in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). ASC 360 requires the Company to continually monitor events and changes in circumstances that could indicate that the carrying amounts of the Company’s real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability of the assets by estimating whether the Company will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company records an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. If any assumptions, projections or estimates regarding an asset changes in the future, the Company may have to record an impairment to reduce the net book value of such individual asset. The Company continues to monitor events in connection with the recent outbreak of the novel Coronavirus (“COVID-19”) and evaluates any potential indicators that could suggest that the carrying value of its real estate investments and related intangible assets and liabilities may not be recoverable. The Company recorded an impairment charge related to two of its real estate assets during the three and six months ended June 30, 2020. No impairment loss was recorded in the three and six months ended June 30, 2019. See Note 3 (Real Estate) for details. Revenue recognition - operating leases The majority of the Company’s revenue is derived from rental revenue, which is accounted for in accordance with Accounting Standards Codification 842, Leases (“ASC 842”). The Company leases apartment homes under operating leases with terms generally of one year or less. Generally, credit investigations are performed for prospective residents and security deposits are obtained. In accordance with ASC 842, the Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectability is probable and records amounts expected to be received in later years as deferred rent receivable. For lease arrangements when it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis (as applicable) or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. Tenant reimbursements for common area maintenance and other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements for common area maintenance are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations. Rents and Other receivables In accordance with ASC 842, the Company makes a determination of whether the collectability of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income only if cash is received. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of residents in developing these estimates. Due to the short-term nature of the operating leases, the Company does not maintain a deferred rent receivable related to the straight-lining of rents. Any changes to the Company’s collectability assessment are reflected as an adjustment to rental income. Residents’ payment plans due to COVID-19 In April, 2020, the FASB issued the ASC 842 Q&A to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under ASC 842, modified terms and conditions of a company’s existing lease contracts, such as, changes to lease payments, may affect the economics of the lease for the remainder of the term and are generally accounted for as lease modifications. Some contracts may contain explicit or implicit enforceable rights and obligations that require lease concessions if certain circumstances arise that are beyond the control of the parties to the contract. If a lease contract provides enforceable rights and obligations for concessions in the contract and no changes are made to that contract, the concessions are not accounted for under the lease modification guidance in ASC 842. If concessions granted by lessors are beyond the enforceable rights and obligations in the contract, entities would generally account for those concessions in accordance with the lease modification guidance in ASC 842. The FASB staff has been made aware that, given the unprecedented and global nature of the COVID-19 pandemic, it may be exceedingly challenging for entities to determine whether existing contracts provide enforceable rights and obligations for lease concessions and, if so, whether those concessions are consistent with the terms of the contract or are modifications to a contract. Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance under ASC 842 to those contracts. Entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. In addition to that, for concessions that provide a deferral of payments with no substantive changes to the consideration in the original contract, the FASB allows entities to account for the concessions as if no changes to the lease contract were made. Under this method, a lessor would increase its lease receivable and continue to recognize income. During the quarter ended June 30, 2020, the Company instituted payment plans for its residents that were experiencing hardship due to COVID-19, which the Company refers to as the “COVID-19 Payment Plan.” Pursuant to the COVID-19 Payment Plan, the Company allowed qualifying residents to defer their rent, which is collected by the Company in monthly installment payments over the duration of the current lease or renewal term (which may not exceed 12 months). Additionally, for the months of May and June 2020, the Company began providing certain qualifying residents with a one-time concession to incentivize their performance under the payment plan. If the qualifying resident fails to make payments pursuant to the COVID-19 Payment Plan, the concession is immediately terminated, and the qualifying resident is required to immediately repay the amount of the concession. The Company did not offer residents a payment plan during July 2020 due to the reduced demand for such payment plans in May and June 2020. The Company may in the future continue to offer various types of payment plans or rent relief depending on the ongoing impact of the COVID-19 pandemic. The Company elected not to evaluate whether its COVID-19 Payment Plans are lease modifications and therefore the Company’s policy is to account for the lease contracts with COVID-19 Payment Plans as if no lease modifications occurred. Under this accounting method, a lessor with an operating lease may account for the concession by continuing to recognize a lease receivable until the rental payment is received from the lessee at the revised payment date. If it is determined that the lease receivable is not collectable, the Company would treat that lease contract on a cash basis as defined in ASC 842. As of June 30, 2020, the Company reserved approximately $1,264,000 of accounts receivables which are considered not probable for collection. Investments in Unconsolidated Joint Ventures The Company accounts for investments in unconsolidated joint venture entities in which it may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost including an outside basis difference, which represents the difference between the purchase price the Company paid for its investment in the joint venture and the book value of the Company’s equity in the joint venture, and subsequently adjusts it to reflect additional contributions or distributions, the Company’s proportionate share of equity in the joint venture’s earnings (loss) and amortization of the outside basis difference. The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in earnings (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. The Company recorded an other-than-temporary impairment (“OTTI”) on its investment in unconsolidated joint venture during the three and six months ended June 30, 2020. No OTTI was recorded in the three and six months ended June 30, 2019. See Note 4 (Investment in Unconsolidated Joint Venture) for details. The Company has elected the cumulative earnings approach to classify cash receipts from the unconsolidated joint venture on the accompanying consolidated statements of cash flows. Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. Interest rate cap agreements - The Company has entered into certain interest rate cap agreements. These derivatives are recorded at fair value. Fair value was based on a model-driven valuation using the associated variable rate curve and an implied market volatility, both of which were observable at commonly quoted intervals for the full term of the interest rate cap agreements. Therefore, the Company’s interest rate cap agreements were classified within Level 2 of the fair value hierarchy and are included in other assets in the accompanying consolidated balance sheets. Changes in the fair value of the interest rate cap agreements are recorded as interest expense in the accompanying consolidated statements of operations. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due to affiliates is not determinable due to the related party nature of such amounts. The Company has determined that its notes payable, net are classified as Level 3 within the fair value hierarchy. The fair value of the notes payable, net is estimated using a discounted cash flow analysis using borrowing rates available to the Company for debt instruments with similar terms and maturities. As of June 30, 2020 and December 31, 2019, the fair value of the notes payable was $2,321,197,186 and $1,153,445,768, respectively, compared to the carrying value of $2,177,052,473 and $1,108,559,045, respectively. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants as well as cash that is deposited with a qualified intermediary for reinvestment under Section 1031 of the Internal Revenue Code. As of June 30, 2020, the Company had a restricted cash balance of $36,667,410, which represented amounts set aside as impounds for future property tax payments, property insurance payments and tenant improvement payments as required by agreements with the Company’s lenders. As of December 31, 2019, the Company had a restricted cash balance of $73,614,452, which included $36,740,983 in allocated loan amounts held by the lender of the Company’s master credit facility as collateral for two properties sold during the year ended December 31, 2019, $24,720,969 of cash proceeds from the sale of two properties that were being held by qualified intermediaries as of December 31, 2019, and $12,152,500 related to amounts set aside as impounds for future property tax payments, property insurance payments and tenant improvement payments as required by agreements with the Company lenders. The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the six months ended June 30, 2020 and 2019: June 30, 2020 2019 Cash and cash equivalents $ 330,674,998 $ 43,745,735 Restricted cash 36,667,410 10,913,822 Total cash, cash and cash equivalents and restricted cash $ 367,342,408 $ 54,659,557 Distribution Policy The Company elected to be taxed, and currently qualifies, as a REIT commencing with the taxable year ended December 31, 2014. To maintain its qualification as a REIT, the Company intends to make distributions each taxable year equal to at least 90% of its REIT taxable income (which is determined without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). Distributions declared during the six months ended June 30, 2020, were based on daily record dates and calculated at a rate of $0.002459 per share per day during the period from January 1, 2020 through June 30, 2020. Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. During the three and six months ended June 30, 2020, the Company declared distributions totaling $0.224 and $0.448 per share of common stock, respectively. During the three and six months ended June 30, 2019, the Company declared distributions totaling $0.224 and $0.446 per share of common stock, respectively. Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding for each class of shares outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period or based upon the two-class method, whichever is more dilutive. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, residents and products and services, its assets have been aggregated into one reportable segment. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , and subsequent amendments to the guidance including, ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, ASU 2019-05 in May 2019, ASUs 2019-10 and 2019-11 in November 2019, and ASU 2020-02 in February 2020 (as amended “ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. This guidance does not apply to operating lease receivables arising from operating leases, which are within the scope of ASC 842. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The issuance of ASU 2018-13 is part of a disclosure framework project. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. Achieving the objective of improving the effectiveness of the notes to financial statements includes: (1) the development of a framework that promotes consistent decisions by the FASB board about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820 , Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. ASU 2018-13 removed certain disclosure requirements under Topic 820 such as the disclosure requirements of the valuation process for level 3 fair value measurements and modified and added certain of the disclosure requirements in Topic 820 . ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321) , Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815, (“ASU 2020-01”), which clarifies the interaction between the accounting for equity securities under Topic 321 , the accounting for equity method investments in Topic 323 , and the accounting for certain forward contracts and purchased options in Topic 815 . ASU 2020-01 is effective for fiscal |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Current Period Acquisitions During the three and six months ended June 30, 2020, the Company acquired 41 real estate properties, all of which were determined to be asset acquisitions, including 36 real estate properties acquired in the Mergers, two parcels of land for the development of apartment homes and two real estate properties, both acquired through Section 1031 exchanges under the Internal Revenue Code. The following is a summary of real estate properties acquired during the six months ended June 30, 2020: Purchase Price Allocation Property Name Location Purchase Date Properties Homes Land Buildings and Improvements Tenant Origination and Absorption Costs Below Market Leases Discount (Premium) on Assumed Liabilities Total Purchase Price Eleven10 Farmers Market Dallas, TX 1/28/2020 1 313 $ 10,574,569 $ 50,026,284 $ 1,463,076 $ — $ — $ 62,063,929 Patina Flats at the Foundry Loveland, CO 2/11/2020 1 155 2,463,617 41,537,960 1,184,050 (61,845) — 45,123,782 SIR Merger (1) Various 3/6/2020 27 7,527 114,377,468 959,337,747 27,027,759 — 1,391,489 1,102,134,463 STAR III Merger (1) Various 3/6/2020 9 2,639 58,056,275 411,461,858 10,041,373 — (5,802,045) 473,757,461 Arista at Broomfield Broomfield, CO 3/13/2020 1 — 7,283,803 750,168 — — — 8,033,971 VV&M Dallas, TX 4/21/2020 1 310 8,207,057 51,299,734 1,407,518 — (945,235) 59,969,074 Flatirons Broomfield, CO 6/19/2020 1 — 8,574,704 33,930 — — — 8,608,634 41 10,944 $ 209,537,493 $ 1,514,447,681 $ 41,123,776 $ (61,845) $ (5,355,791) $ 1,759,691,314 ____________________ (1) In connection with the Mergers, the Company capitalized transaction costs on the accompanying consolidated balance sheets of $28,145,708 under ASC 805 using a relative fair value method (the “Capitalized Transaction Costs”). $26,515,662 and $628,691 of the Capitalized Transaction Costs were incurred upon the completion of the Mergers on March 6, 2020, and were allocated to the real estate acquired and investment in unconsolidated joint venture, respectively, and $1,630,046 of the Capitalized Transaction Costs, which were incurred and initially capitalized to buildings and improvements on the Company’s consolidated balance sheets as of December 31, 2019, were reallocated to the real estate acquired in the Mergers upon the completion of the Mergers. As of June 30, 2020, the Company owned 70 multifamily properties comprising a total of 21,835 apartment homes and three parcels of land held for the development of apartment homes. The total acquisition price of the Company’s real estate portfolio was $3,195,061,239, including land held for the development of apartment homes of $29,745,781. As of June 30, 2020 and December 31, 2019, the Company’s portfolio was approximately 94.6% and 94.6% occupied and the average monthly rent was $1,180 and $1,200, respectively. As of June 30, 2020 and December 31, 2019, investments in real estate and accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2020 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 344,242,749 $ 2,885,651,638 $ 41,078,737 $ 3,270,973,124 $ 29,745,781 $ — Less: Accumulated depreciation and amortization — (332,961,428) (25,961,107) (358,922,535) — — Net investments in real estate and related lease intangibles $ 344,242,749 $ 2,552,690,210 $ 15,117,630 $ 2,912,050,589 $ 29,745,781 $ — December 31, 2019 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 151,294,208 $ 1,369,256,465 $ — $ 1,520,550,673 $ 5,687,977 $ 27,285,576 Less: Accumulated depreciation and amortization — (277,033,046) — (277,033,046) — (5,619,814) Net investments in real estate and related lease intangibles $ 151,294,208 $ 1,092,223,419 $ — $ 1,243,517,627 $ 5,687,977 $ 21,665,762 ____________________ (1) During the year ended December 31, 2019, the Company capitalized $1,630,046 of costs related to the Mergers, included in building and improvements in the accompanying consolidated balance sheets. Total depreciation and amortization expenses were $53,455,666 and $82,031,561 for the three and six months ended June 30, 2020, and $18,515,635and $36,797,927 for the three and six months ended June 30, 2019, respectively. Depreciation of the Company’s buildings and improvements was $33,315,155 and $56,066,977 for the three and six months ended June 30, 2020, and $18,515,635 and $36,797,927 for the three and six months ended June 30, 2019, respectively. Amortization of the Company’s intangible assets was $20,140,511 and $25,964,584 for the three and six months ended June 30, 2020 and $0 for the three and six months ended June 30, 2019, respectively. Amortization of the Company’s tenant origination and absorption costs was $20,138,302 and $25,961,107 for the three and six months ended June 30, 2020 and $0 for the three and six months ended June 30, 2019, respectively. Tenant origination and absorption costs had a weighted-average amortization period as of the date of acquisition of less than one year. Amortization of the Company’s right-of-use-assets was $2,209 and $3,477 for the three and six months ended June 30, 2020 and $0 for the three and six months ended June 30, 2019, respectively. Amortization of the Company’s other intangible assets was $1,671 and $2,594 for the three and six months ended June 30, 2020, and is included as an increase to rental income in the accompanying consolidated condensed statements of operations. Other intangible assets had a weighted-average amortization period as of the date of acquisition of 10 years. Operating Leases As of June 30, 2020, the Company’s real estate portfolio comprised 21,835 residential apartment homes and was 96.8% leased by a diverse group of residents. For the three and six months ended June 30, 2020 and 2019, the Company’s real estate portfolio earned in excess of 99% and less than 1% of its rental income from residential tenants and commercial tenants, respectively. The residential tenant lease terms consist of lease durations equal to 12 months or less. The commercial tenant leases consist of remaining lease durations varying from 0.5 to 9.46 years. Some residential leases contain provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to residents. Generally, upon the execution of a lease, the Company requires security deposits from residents in the form of a cash deposit. Amounts required as security deposits vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of its security deposit. Security deposits received in cash related to tenant leases are included in accounts payables and accrued liabilities in the accompanying consolidated balance sheets and totaled $8,488,290 and $4,351,837 as of June 30, 2020 and December 31, 2019, respectively. The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial tenants as of June 30, 2020, and thereafter is as follows: July 1 through December 31, 2020 $ 97,638 2021 155,986 2022 150,960 2023 155,518 2024 160,161 Thereafter 684,598 $ 1,404,861 As of June 30, 2020 and December 31, 2019, no tenant represented over 10% of the Company’s annualized base rent and there were no significant industry concentrations with respect to its commercial leases. Real Estate Under Development During the three and six months ended June 30, 2020, the Company owned the following parcels of land held for the development of apartment homes: Development Name Location Purchase Date Land Held for Development Construction in Progress Total Carrying Value Garrison Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 10,633,994 $ 13,103,177 Arista at Broomfield Broomfield, CO 3/13/2020 7,283,803 750,168 8,033,971 Flatirons Broomfield, CO 6/19/2020 8,574,703 33,930 8,608,633 $ 18,327,689 $ 11,418,092 $ 29,745,781 Property Disposition Terrace Cove Apartment Homes On August 28, 2014, the Company, through an indirect wholly-owned subsidiary, acquired Terrace Cove Apartment Homes, a multifamily property located in Austin, Texas, containing 304 apartment homes. The purchase price of Terrace Cove Apartment Homes was $23,500,000, exclusive of closing costs. On February 5, 2020, the Company sold Terrace Cove Apartment Homes for $33,875,000, resulting in a gain of $11,384,599, which includes reductions to the net book value of the property due to historical depreciation and amortization expense. The purchaser of Terrace Cove Apartment Homes is not affiliated with the Company or the Advisor. The results of operations for the three and six months ended June 30, 2020 and 2019, through the dates of sale for all properties disposed of through June 30, 2020 were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Rental income $ 1,818 $ 2,490,822 $ 319,800 $ 4,835,309 Other income 3,438 16,832 6,966 31,625 Total revenues 5,256 2,507,654 326,766 4,866,934 Expenses: Operating, maintenance and management 29,084 698,551 197,580 1,334,474 Real estate taxes and insurance — 548,814 82,557 1,097,422 Fees to affiliates (237) 128,384 25,706 242,659 Depreciation and amortization — 920,069 — 1,832,865 General and administrative expenses 4,153 23,484 7,989 42,546 Total expenses 33,000 2,319,302 313,832 4,549,966 (Loss) income before other income (27,744) 188,352 12,934 316,968 Other income: Interest income — 1,460 — 3,490 Gain on sale of real estate, net — — 11,384,599 — Total other income — 1,460 11,384,599 3,490 Net (loss) income $ (27,744) $ 189,812 $ 11,397,533 $ 320,458 Completion of Mergers On March 6, 2020, pursuant to the terms and conditions of the SIR Merger Agreement and STAR III Merger Agreement (together the “Merger Agreements”), SIR Merger Sub and STAR III Merger Sub, the surviving entities, continued as wholly-owned subsidiaries of the Company. In accordance with the applicable provisions of the MGCL, the separate existence of SIR and STAR III ceased. The Combined Company retained the name “Steadfast Apartment REIT, Inc.” At the effective time of the Mergers, each issued and outstanding share of SIR and STAR III’s common stock (or a fraction thereof), $0.01 par value per share, was converted into 0.5934 and 1.430 shares of the Company’s common stock, respectively. The following table summarizes the purchase price of SIR and STAR III as of the date of the Mergers: SIR STAR III Class A common stock issued and outstanding $ — $ 3,458,807 Class R common stock issued and outstanding — 475,207 Class T common stock issued and outstanding — 4,625,943 Common stock issued and outstanding 73,770,330 — Total common stock issued and outstanding 73,770,330 8,559,957 Exchange ratio 0.5934 1.430 STAR common stock issued as consideration (1) 43,775,314 12,240,739 STAR’s most recently disclosed estimated value per share 15.84 15.84 Value of implied STAR common stock issued as consideration $ 693,400,974 $ 193,893,305 ____________________ (1) Represents the number of shares of common stock of SIR and STAR III converted into STAR shares upon consummation of the Mergers. The following table shows the purchase price allocation of SIR’s and STAR III’s identifiable assets and liabilities assumed as of the date of the Mergers: SIR STAR III Assets Land $ 114,377,468 $ 58,056,275 Building and improvements 959,337,747 411,461,858 Acquired intangible assets 27,027,759 10,041,373 Other assets, net 122,688,608 21,438,855 Investment in unconsolidated joint venture 22,128,691 — Total assets $ 1,245,560,273 $ 500,998,361 Liabilities Mortgage notes payable $ (506,023,981) $ (289,407,045) Other liabilities (46,135,318) (17,698,011) $ (552,159,299) $ (307,105,056) $ 693,400,974 $ 193,893,305 Capitalized Acquisition Costs Related to the Mergers The SIR Merger and STAR III Merger were each accounted for as an asset acquisition. In accordance with the asset acquisition method of accounting, costs incurred to acquire the asset were capitalized as part of the acquisition price. Upon the execution of the SIR Merger Agreement and the STAR III Merger Agreement on August 5, 2019, the SIR Merger and STAR III Merger were considered probable of occurring, at which point the Company began to capitalize the merger related acquisition costs to building and improvements in the accompanying consolidated balance sheets. Prior to such date, the merger related acquisition costs were expensed to general and administrative expenses in the accompanying consolidated statements of operations. Impairment of Real Estate Assets Ansley at Princeton Lakes and Montecito Apartments During the three and six months ended June 30, 2020, the Company recorded an impairment charge of $5,039,937 as it was determined that the carrying value of Ansley at Princeton Lakes and Montecito Apartments would not be recoverable. The impairment charge was a result of actively marketing Ansley at Princeton Lakes and Montecito Apartments for sale at disposition prices that were less than their carrying values. In determining the fair value of property, the Company considered Level 3 inputs. See Note 14 (Fair Value Measurements), for further details. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture On March 6, 2020, upon consummation of the SIR Merger, the Company acquired a 10% interest in BREIT Steadfast MF JV LP (the “Joint Venture”). As of June 30, 2020, the Joint Venture owned 20 multifamily properties with a total of 4,584 apartment homes. The Company does not exercise significant influence, nor does it control the Joint Venture and has accounted for its investment in the Joint Venture under the equity method of accounting. Income, losses, contributions and distributions are generally allocated based on the members’ respective equity interests. As of June 30, 2020, the book value of the Company’s investment in the Joint Venture was $18,984,491, which includes $8,121,160, primarily consisting of an accounting outside basis difference and capitalized transaction costs. The accounting outside basis difference relates to the difference between the purchase price the Company paid for its investment in the Joint Venture in connection with the SIR Merger and the book value of the Company’s equity in the Joint Venture as of June 30, 2020, as presented on the accompanying consolidated balance sheets. The capitalized transaction costs relate to acquiring the Joint Venture through the consummation of the SIR Merger. The Company recognized an OTTI on its investment in the Joint Venture of $2,442,411 during the three months ended June 30, 2020. The OTTI is a result of the Company receiving an indication of value in connection with negotiating a sale of the Company’s joint venture interest at a disposition price that was less than the carrying value of the Joint Venture. The OTTI is included in equity in loss from unconsolidated joint venture on the Company’s consolidated statements of operations. In determining the fair value of the Joint Venture, the Company considered Level 3 inputs. See Note 14 (Fair Value Measurements), for details. During the three and six months ended June 30, 2020, $425,966 and $432,442 of amortization of the basis difference was included in equity in losses from unconsolidated joint venture on the accompanying consolidated statements of operations, respectively. During the three and six months ended June 30, 2020, the Company received distributions of $242,700 and $360,700 related to its investment in the Joint Venture, respectively. Unaudited financial information for the Joint Venture as of June 30, 2020 and for the three and six months ended June 30, 2020, is summarized below: June 30, 2020 Assets: Real estate assets, net $ 484,761,857 Other assets 12,368,894 Total assets $ 497,130,751 Liabilities and equity: Notes payable, net $ 347,265,380 Other liabilities 16,574,642 Company’s capital 13,329,057 Other partner’s capital 119,961,672 Total liabilities and equity $ 497,130,751 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Revenues $ 15,900,071 $ 20,534,675 Expenses (17,077,940) (21,999,716) Other income 179,573 179,573 Net loss $ (998,296) $ (1,285,468) Company’s proportional net loss $ (99,830) $ (128,547) Amortization of outside basis (425,966) (432,442) Impairment of unconsolidated joint venture (2,442,411) (2,442,411) Equity in losses of unconsolidated joint venture $ (2,968,207) $ (3,003,400) |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of June 30, 2020 and December 31, 2019, other assets consisted of: June 30, 2020 December 31, 2019 Prepaid expenses $ 1,857,014 $ 1,521,084 Interest rate cap agreements (Note 13) 26,048 132 Escrow deposits for pending real estate acquisitions 500,000 2,600,300 Other deposits 1,656,883 1,342,615 Operating lease right-of-use assets, net 169,736 49,184 Other assets $ 4,209,681 $ 5,513,315 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Mortgage Notes Payable The following is a summary of mortgage notes payable, net, secured by individual properties as of June 30, 2020 and December 31, 2019. June 30, 2020 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 1/1/2025 - 9/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.31% 2.31% $ 139,740,000 Fixed rate 43 10/1/2022 - 10/1/2056 3.19 % 4.66 % 3.85% 1,295,537,000 Mortgage notes payable, gross 47 3.70% 1,435,277,000 Premiums and discounts, net (2) 4,827,351 Deferred financing costs, net (3) (7,482,673) Mortgage notes payable, net $ 1,432,621,678 December 31, 2019 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 2 1/1/2025 - 9/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 3.82% $ 75,670,000 Fixed rate 14 7/1/2025 - 5/1/2054 3.36 % 4.60 % 3.96% 488,805,387 Mortgage notes payable, gross 16 3.94% 564,475,387 Deferred financing costs, net (3) (4,376,572) Mortgage notes payable, net $ 560,098,815 ___________ (1) See Note 13 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The following table summarizes debt premiums and discounts as of June 30, 2020, including the unamortized portion included in the principal balance as well as amounts amortized included in interest expense in the accompanying consolidated statements of operations: Unamortized Portion of Net Debt Premium (Discount) as of June 30, 2020 Amortization of Debt (Premium) Discount During the Six Months Ended June 30, 2020 Amortized Net Debt Premium (Discount) as of June 30, 2020 $ 15,844,866 $ (718,264) $ 15,126,602 (10,489,075) 189,824 (10,299,251) $ 5,355,791 $ (528,440) $ 4,827,351 (3) Accumulated amortization related to deferred financing costs as of June 30, 2020 and December 31, 2019 was $2,790,517 and $2,215,461, respectively. Construction loan On October 16, 2019, the Company entered into an agreement with PNC Bank, National Association (“PNC Bank”) for a construction loan related to the development of a multifamily property known as Garrison Station in an aggregate principal amount not to exceed $19,800,000 for a thirty-six month initial term and two twelve month mini-perm extensions. The rate of interest will be at the one-month LIBOR plus 2.00%, which then reduces to one-month LIBOR plus 1.80% upon achieving completion as defined in the construction loan agreement and at debt service coverage ratio of 1.15x. The loan includes a 0.4% fee at closing, a 0.1% fee upon exercising the mini-perm and a 0.1% fee upon extending the mini-perm, each payable to PNC Bank. There is an exit fee of 1% which will be waived if permanent financing is secured through PNC Bank or one of their affiliates. No amounts were outstanding on this construction loan at June 30, 2020 or December 31, 2019. Credit Facilities Master Credit Facility On July 31, 2018, 16 indirect wholly-owned subsidiaries of the Company entered into a Master Credit Facility Agreement (“MCFA”) with Berkeley Point Capital, LLC (“Facility Lender”) for an aggregate principal amount of $551,669,000. On February 11, 2020, in connection with the financing of Patina Flats at the Foundry (see Note 3 Real Estate), the Company and the Facility Lender amended the MCFA to substitute Patina Flats at the Foundry and Fielders Creek, the then-unencumbered multifamily property owned by the Company, as collateral for the three multifamily properties disposed of and released from the agreement. The Company also increased its outstanding borrowings pursuant to the MCFA by $40,468,000, a portion of which was attributable to the acquisition of Patina Flats at the Foundry. The MCFA provides for four tranches: (i) a fixed rate loan in the aggregate principal amount of $331,001,400 that accrues interest at 4.43% per annum; (ii) a fixed rate loan in the aggregate principal amount of $137,917,250 that accrues interest at 4.57%; (iii) a variable rate loan in the aggregate principal amount of $82,750,350 that accrues interest at the one-month LIBOR plus 1.70%; and (iv) a fixed rate loan in the aggregate principal amount of $40,468,000 that accrues interest at 3.34%. The first three tranches have a maturity date of August 1, 2028, and the fourth tranche has a maturity date of March 1, 2030, unless in each case the maturity date is accelerated in accordance with the terms of the loan documents. Interest only payments are payable monthly through August 1, 2025 and April 1, 2027 on the first three tranches and fourth tranche, respectively, with interest and principal payments due monthly thereafter. The Company paid $2,072,480 in the aggregate in loan origination fees to the Facility Lender in connection with the refinancings, and paid the Advisor a loan coordination fee of $3,061,855. PNC Master Credit Facility On June 17, 2020, the Company, through seven indirect wholly-owned subsidiaries (each, a “Borrower” and collectively, the “Borrowers”), entered into a Master Credit Facility Agreement (the “PNC MCFA,”), a fixed rate Multifamily Note and a variable rate Multifamily Note (collectively, the “Notes”) and the other loan documents for the benefit of PNC Bank. The PNC MCFA provides for two tranches: (i) a fixed rate loan in the aggregate principal amount of $79,170,000 that accrues interest at 2.82% per annum; and (ii) a variable rate loan in the aggregate principal amount of $79,170,000 that accrues interest at the one-month LIBOR plus 2.135%. If LIBOR is no longer posted through electronic transmission, is no longer available or, in PNC Bank’s determination, is no longer widely accepted or has been replaced as the index for similar financial instruments, PNC Bank will choose a new index taking into account general comparability to LIBOR and other factors, including any adjustment factor to preserve the relative economic positions of the Borrowers and PNC Bank with respect to any advances made pursuant to the PNC MCFA. The Company paid $633,360 in the aggregate in loan origination fees to PNC Bank in connection with the financings, and paid the Advisor a loan coordination fee of $791,700. Revolving Credit Loan Facility On June 26, 2020, the Company entered into a revolving credit loan facility (the “Revolver”) with the PNC Bank in an amount not to exceed $65,000,000. The Revolver provides for advances (each, a “Revolver Loan” and collectively, the “Revolver Loans”) solely for the purpose of financing costs in connection with acquisitions and development of real estate projects and for general corporate purposes (subject to certain debt service and loan to value requirements). The Revolver has a maturity date of June 26, 2023, subject to extension (the “Revolver Maturity Date”). Advances made under the Revolver are secured by the Landings of Brentwood, as evidenced by the Loan Agreement, the Credit Facility Notes (the “Notes”), the Deed of Trust and a Guaranty from the Company (the “Guaranty,” together with the Loan Agreement and the Notes, the “Loan Documents”). The Company has the option to select the interest rate in respect of the outstanding unpaid principal amount of the Revolver Loans from the following options (the “Interest Rate Options”): (1) a fluctuating rate per annum equal to the sum of the daily LIBOR rate plus the daily LIBOR rate spread (the “LIBOR Option”) or (2) a fluctuating rate per annum equal to the base rate plus the alternate rate spread (the “Base Rate Option,”). As of June 30, 2020 and December 31, 2019, the advances obtained and certain financing costs incurred under the MCFA, PNC MCFA and the Revolver, which are included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of June 30, 2020 December 31, 2019 Principal balance on MCFA, gross $ 592,137,000 $ 551,669,000 Principal balance on PNC MCFA, gross 158,340,000 — Principal balance on Revolver, gross — — Deferred financing costs, net on MCFA (1) (3,675,065) (3,208,770) Deferred financing costs, net on PNC MCFA (2) (1,782,261) — Deferred financing costs, net on Revolver (3) (588,879) — Credit facilities, net $ 744,430,795 $ 548,460,230 ___________ (1) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2020 and December 31, 2019, was $1,060,049 and $832,187, respectively. (2) Accumulated amortization related to deferred financing costs in respect of the PNC MCFA as of June 30, 2020 and December 31, 2019, was $6,958 and $0, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Revolver as of June 30, 2020 and December 31, 2019, was $0 and $0, respectively. Assumed Debt as a result of the Completion of Mergers On March 6, 2020, upon consummation of the Mergers, the Company assumed all of SIR’s and STAR III’s obligations under the outstanding mortgage loans secured by 29 properties. The Company recognized the fair value of the assumed notes payable in the Mergers of $795,431,027, which consists of the assumed principal balance of $791,020,471 and a net premium of $4,410,556. The following is a summary of the terms of the assumed loans on the date of the Mergers: Interest Rate Range Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding At Merger Date Variable rate 2 1/1/2027 - 9/1/2027 1-Mo LIBOR + 2.195% 1-Mo LIBOR + 2.31% $ 64,070,000 Fixed rate 27 10/1/2022 - 10/1/2056 3.19% 4.66% 726,950,471 Assumed Principal Mortgage Notes Payable 29 $ 791,020,471 Maturity and Interest The following is a summary of the Company’s aggregate maturities as of June 30, 2020: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2020 2021 2022 2023 2024 Thereafter Principal payments on outstanding debt (1) $ 2,185,754,000 $ 2,950,437 $ 8,719,743 $ 34,976,371 $ 61,197,898 $ 58,716,430 $ 2,019,193,121 ______________ (1) Scheduled principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude deferred financing costs, net and debt premiums (discounts), net associated with the notes payable. The Company’s notes payable contain customary financial and non-financial debt covenants. At June 30, 2020, the Company was in compliance with all debt covenants. For the three and six months ended June 30, 2020, the Company incurred interest expense of $19,715,318 and $34,106,272, respectively. Interest expense for the three and six months ended June 30, 2020, includes amortization of deferred financing costs totaling $482,406 and $809,876, net unrealized loss from the change in fair value of interest rate cap agreements of $24,943 and $27,194, amortization of net loan premiums and discounts of $(413,858) and $(528,440) and costs associated with the refinancing of debt of $11,484 and $42,881, net of capitalized interest of $193,049 and $262,619, respectively. The capitalized interest is included in real estate held for development on the consolidated balance sheets. For the three and six months ended June 30, 2019, the Company incurred interest expense of $12,165,781 and $24,399,076, respectively. Interest expense for the three and six months ended June 30, 2019, includes amortization of deferred financing costs of $246,432 and $494,204, net unrealized losses from the change in fair value of interest rate cap agreements of $20,107 and $199,723 and credit facility commitment fees of $0 and $2,137, respectively. Interest expense of $6,386,279 and $3,954,686 was payable as of June 30, 2020 and December 31, 2019, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity General Pursuant to the Company’s Articles of Amendment and Restatement (as supplemented, the “Charter”), the total number of shares of capital stock authorized for issuance is 1,100,000,000 shares, consisting of 999,998,000 shares of common stock with a par value of $0.01 per share, 1,000 shares of Class A non-participating, non-voting convertible stock with a par value of $0.01 per share, 1,000 shares of non-participating, non-voting convertible stock with a par value of $0.01 per share and 100,000,000 shares of preferred stock with a par value of $0.01 per share. Common Stock The shares of the Company’s common stock entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote, to receive dividends and other distributions as authorized by the Company’s board of directors in accordance with the MGCL and to all rights of a stockholder pursuant to the MGCL. The common stock has no preferences or preemptive, conversion or exchange rights. On September 3, 2013, the Company issued 13,500 shares of common stock to the Sponsor for $202,500. From inception through March 24, 2016, the date of the termination of the Primary Offering, the Company had issued 48,625,651 shares of common stock in its Public Offering for offering proceeds of $640,012,497, including 1,011,561 shares of common stock issued pursuant to the DRP for total proceeds of $14,414,752, net of offering costs of $84,837,134. The offering costs primarily consisted of selling commissions and dealer manager fees paid in the Primary Offering. Following the termination of the Public Offering, the Company continues to offer shares pursuant to the DRP. On March 6, 2020, the Company issued 43,775,314 shares of its common stock to SIR’s stockholders and 12,240,739 shares of its common stock to STAR III’s stockholders in connection with the Mergers. On May 4, 2020, the Company amended its registration statement for the DRP to register up to 10,000,000 shares of common stock for sale at an initial price of $15.23. As of June 30, 2020, the Company had issued 110,963,247 shares of common stock for offering proceeds of $1,622,503,112, including 7,333,167 shares of common stock issued pursuant to the DRP for total proceeds of $109,611,088, net of offering costs of $84,837,134. As further discussed in Note 10 (Incentive Award Plan and Independent Director Compensation), the shares of restricted common stock vest and become non-forfeitable in four The issuance and vesting activity for the six months ended June 30, 2020 and year ended December 31, 2019, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended June 30, 2020 Year Ended December 31, 2019 Nonvested shares at the beginning of the period 7,497 7,497 Granted shares 6,666 4,998 Vested shares (1,666) (4,998) Nonvested shares at the end of the period 12,497 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2020 and year ended December 31, 2019 was as follows: Grant Year Weighted Average Fair Value 2019 $15.84 2020 15.84 Included in general and administrative expenses is $20,928 and $63,383 for the three and six months ended June 30, 2020, and $13,896 and $27,792 for the three and six months ended June 30, 2019, respectively, for compensation expense related to the issuance of restricted common stock. As of June 30, 2020, the compensation expense related to the issuance of the restricted common stock not yet recognized was $140,383. The weighted average remaining term of the restricted common stock was approximately 1.2 years as of June 30, 2020. As of June 30, 2020, no shares of restricted common stock issued to the independent directors have been forfeited. Beginning at the closing of the Mergers on March 6, 2020, and pursuant to the Advisory Agreement, the Company pays the Advisor a monthly investment management fee, payable 50% in cash and 50% in shares of the Company’s common stock at the estimated value per share at the time of issuance. The shares of common stock fully vest and become non-forfeitable upon payment of the monthly investment management fee. As of June 30, 2020, an investment management fee of $1,464,982 was payable to the Advisor in shares of the Company’s common stock and was included in due to affiliates in the accompanying consolidated balance sheets. The fair value of the vested common stock at the date of issuance, using the most recent publicly disclosed estimated value per share, is recorded in stockholders’ equity in the accompanying consolidated balance sheets. Investment management fees incurred in shares, included in fees to affiliates in the accompanying consolidated statements of operations, were $4,316,774 and $5,504,125, respectively, for the three and six months ended June 30, 2020. No investment management fees were incurred in shares for the three and six months ended June 30, 2019. Beginning at the closing of the Mergers on March 6, 2020, and pursuant to the Advisory Agreement, the Company pays the Advisor a loan coordination fee in shares of the Company’s common stock at the estimated value per share at the time of issuance. The loan coordination fee payable in shares equals 0.5% of the amount of debt financed or refinanced (in each case, other than at the time of the acquisition of a property) or the Company’s proportionate share of the amount refinanced in the case of investments made through a joint venture. Loan coordination fees incurred in shares and included in fees to affiliates in the accompanying consolidated statements of operations, were $1,116,694 for the three and six months ended June 30, 2020. No loan coordination fees were incurred in shares for the three and six months ended June 30, 2019. Convertible Stock and Class A Convertible Stock Prior to completion of the Mergers on March 6, 2020, the Company’s then-outstanding Convertible Stock would convert into shares of the Company’s common stock if and when: (A) the Company had made total distributions on the then-outstanding shares of the Company’s common stock equal to the original issue price of those shares plus an aggregate 6.0% cumulative, non-compounded, annual return on the original issue price of those shares, (B) the Company listed its common stock for trading on a national securities exchange, or (C) the Company’s then advisory agreement was terminated or not renewed (other than for “cause” as defined in the Advisory Agreement). In the event of a termination or non-renewal of the advisory agreement for cause, all of the shares of the Convertible Stock would have been repurchased by the Company for $1.00. In general, each share of Convertible Stock would convert into a number of shares of common stock equal to 1/1000 of the quotient of (A) 15% of the excess of (1) the Company’s “enterprise value” plus the aggregate value of distributions paid to date on the then outstanding shares of the Company’s common stock over (2) the aggregate purchase price paid by stockholders for those outstanding shares of common stock plus an aggregated 6.0% cumulative, non-compounded, annual return on the original issue price of those outstanding shares, divided by (B) the Company’s enterprise value divided by the number of outstanding shares of common stock on an as-converted basis, in each case calculated as of the date of the conversion. In connection with the Mergers, the Company and the Advisor exchanged the then-outstanding Convertible Stock for new Class A Convertible Stock. The Class A Convertible Stock will be converted into shares of the Company’s common stock if (1) the Company has made total distributions of money or other property to its stockholders (with respect to SIR and STAR III, including in each case distributions paid to SIR and STAR III stockholders prior to the closing of the Mergers), which the Company refers to collectively as the “Class A Distributions,” equal to the original issue price of the Company’s shares of common stock, shares of common stock of SIR and shares of common stock of STAR III (the “Common Equity”), plus an aggregate 6.0% cumulative, non-compounded, annual return on the original issue price of those shares, (2) the Company lists its common stock for trading on a national securities exchange or enters into a merger whereby holders of the Company’s common stock receive listed securities of another issuer or (3) the Company’s Advisory Agreement is terminated or not renewed (other than for “cause” as defined in the Advisory Agreement), each of the above is referred to as a “Triggering Event.” Upon any of these Triggering Events, each share of Class A Convertible Stock will be converted into a number of shares of the Company’s common stock equal to 1/1000 of the quotient of (A) 15% of the amount, if any, by which (i) the “Class A Enterprise Value” plus the aggregate value of the Class A Distributions paid to date on the Common Equity exceeds (ii) the aggregate purchase price paid by stockholders for the Common Equity plus an aggregated 6.0% cumulative, non-compounded, annual return on the original issue price of the Common Equity as of the date of the Triggering Event, divided by (B) the Class A Enterprise Value divided by the number of the Company’s outstanding common shares on an as-converted basis as of the date of Triggering Event. In the event of a termination or non-renewal of the Advisory Agreement for cause, all of the shares of the Class A Convertible Stock will be repurchased by the Company for $1.00. Preferred Stock The Charter provides the Company’s board of directors with the authority to issue one or more classes or series of preferred stock, and prior to the issuance of such shares of preferred stock, the board of directors shall have the power from time to time to classify or reclassify, in one or more series, any unissued shares and designate the preferences, rights and privileges of such shares of preferred stock. The Company’s board of directors is authorized to amend the Charter without the approval of the stockholders to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. As of June 30, 2020 and December 31, 2019, no shares of the Company’s preferred stock were issued and outstanding. Distribution Reinvestment Plan The Company’s board of directors has approved the DRP through which common stockholders may elect to reinvest an amount equal to the distributions declared on their shares of common stock in additional shares of the Company’s common stock in lieu of receiving cash distributions. The purchase price per share under the DRP initially was $14.25. On April 17, 2020, the Company’s board of directors approved a price per share for the DRP of $15.23, effective May 1, 2020, in connection with the determination of an estimated value per share of the Company’s common stock. The Company’s board of directors may again, in its sole discretion, from time to time, change this price based upon changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. No sales commissions or dealer manager fees are payable on shares sold through the DRP. The Company’s board of directors may amend, suspend or terminate the DRP at its discretion at any time upon ten days’ notice to the Company’s stockholders. Following any termination of the DRP, all subsequent distributions to stockholders will be made in cash. Share Repurchase Plan and Redeemable Common Stock The Company’s share repurchase plan may provide an opportunity for stockholders to have their shares of common stock repurchased by the Company, subject to certain restrictions and limitations. No shares can be repurchased under the Company’s share repurchase plan until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. On March 14, 2018, the board of directors of the Company determined to amend the terms of the Company’s share repurchase plan effective as of April 15, 2018 to (1) limit the amount of shares repurchased pursuant to the Company’s share repurchase plan each quarter to $2,000,000 and (2) revise the repurchase price to an amount equal to 93% of the estimated value per share. Prior to the March 3, 2020 amendments, the share repurchase price was further reduced based on how long the stockholder had held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the estimated value per share determined by the Company’s board of directors. (3) The required one-year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. The purchase price per share for shares repurchased pursuant to the Company’s share repurchase plan will be further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the Repurchase Date as a result of the sale of one or more of the Company’s assets that constitutes a return of capital as a result of such sales. Repurchases of shares of the Company’s common stock are made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Repurchase requests are honored approximately 30 days following the end of the applicable quarter (“Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to three In connection with the announcement of the then-proposed SIR Merger and STAR III Merger, on August 5, 2019, the Company’s board of directors approved the Amended and Restated Share Repurchase Plan (the “Amended & Restated SRP”), which became effective September 5, 2019, and applied to repurchases made on the Repurchase Dates (defined below) subsequent to the effective date of the Amended & Restated SRP. Under the Amended & Restated SRP, the Company only repurchased shares of common stock in connection with the death or qualifying disability (as defined in the Amended and Restated SRP) of a stockholder. Repurchases pursuant to the Amended & Restated SRP continued to be limited to $2,000,000 per quarter. On March 3, 2020, in connection with the closing of the SIR Merger and the STAR III Merger, the Company’s board of directors amended its share repurchase plan to: (1) allow all stockholders to request repurchases (as opposed to death and disability only), (2) limit the amount of shares repurchased pursuant to the share repurchase plan each quarter to $4,000,000 and (3) set the repurchase price in all instances (including death and disability) to an amount equal to 93% of the most recent publicly disclosed estimated value per share. The $4,000,000 quarterly limit was first in effect on the repurchase date at April 30, 2020, with respect to repurchases for the three months ended March 31, 2020, but was limited to death and disability only. The Amended & Restated SRP was open to all repurchase requests beginning April 1, 2020. The current share repurchase price is $14.16 per share, which represents 93% of the most recently published estimated value per share of $15.23. The Company is not obligated to repurchase shares of its common stock under the share repurchase plan. In no event shall repurchases under the share repurchase plan exceed 5% of the weighted average number of shares of common stock outstanding during the prior calendar year or the $2,000,000 limit for any quarter put in place by the Company’s board of directors, which increased to $4,000,000 beginning in the second quarter of 2020. There is no fee in connection with a repurchase of shares of the Company’s common stock pursuant to the Company’s share repurchase plan. As of June 30, 2020 and December 31, 2019, the Company had recorded $4,000,000 and $797,289, respectively, which represents 278,105 (pursuant to the Amended & Restated SRP) and 53,152 shares of common stock, respectively, in accounts payable and accrued liabilities on the accompanying consolidated balance sheets related to these unfulfilled repurchase requests, all of which were repurchased on the July 31, 2020 and January 31, 2020 repurchase dates. During the three and six months ended June 30, 2020, the Company repurchased a total of 149,049 and 202,201 shares with a total repurchase value of $2,110,538 and $2,907,827, and received requests for repurchases of 2,664,719 and 2,813,768 shares with a total repurchase value of $37,732,417 and $39,842,954, respectively. During the three and six months ended June 30, 2019, the Company repurchased a total of 135,885 and 274,845 shares with a total repurchase value of $2,000,000 and $4,000,000, and received requests for the repurchase of 355,607 and 796,515 shares with a total repurchase value of $5,210,102 and $11,623,936, respectively. The Company cannot guarantee that the funds set aside for the share repurchase plan will be sufficient to accommodate all repurchase requests made in any quarter. In the event that the Company does not have sufficient funds available to repurchase all of the shares of the Company’s common stock for which repurchase requests have been submitted in any quarter, priority will be given to repurchase requests in the case of the death or disability of a stockholder. If the Company repurchases less than all of the shares subject to a repurchase request in any quarter, with respect to any shares which have not been repurchased, the Company will treat the shares that have not been repurchased as a request for repurchase in the following quarter pursuant to the limitations of the share repurchase plan and when sufficient funds are available, unless the stockholder withdraws the request for repurchase. Such pending requests will be honored among all requests for repurchases in any given repurchase period as follows: first, pro rata as to repurchases sought upon a stockholder’s death or disability; next in exigent circumstances as determined by the Company’s board of directors in its sole discretion and finally, pro rata as to other repurchase requests. The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the share repurchase plan at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the share repurchase plan are needed for other business or operational purposes or that amendment, suspension or termination of the share repurchase plan is in the best interest of the Company’s stockholders. Therefore, a stockholder may not have the opportunity to make a repurchase request prior to any potential termination or suspension of the Company’s share repurchase plan. The share repurchase plan will terminate in the event that a secondary market develops for the Company’s shares of common stock. For the six months ended June 30, 2020, and 2019, the Company reclassified $1,383,318 and $0, net of $2,907,827 and $4,000,000 of fulfilled repurchase requests, from permanent equity to temporary equity, which was included as redeemable common stock on the accompanying balance sheets. Distributions The Company’s long-term goal is to pay distributions solely from cash flow from operations. However, because the Company may receive income from interest or rents at various times during the Company’s fiscal year and because the Company may need cash flow from operations during a particular period to fund capital expenditures and other expenses, the Company expects that at times during the Company’s operational stage, the Company will declare distributions in anticipation of cash flow that the Company expects to receive during a later period, and the Company expects to pay these distributions in advance of its actual receipt of these funds. The Company’s board of directors has the authority under its organizational documents, to the extent permitted by Maryland law, to fund distributions from sources such as borrowings, offering proceeds or advances and the deferral of fees and expense reimbursements by the Advisor, in its sole discretion. The Company has not established a limit on the amount of proceeds it may use to fund distributions from sources other than cash flow from operations. If the Company pays distributions from sources other than cash flow from operations, the Company will have fewer funds available and stockholders’ overall return on their investment in the Company may be reduced. To maintain the Company’s qualification as a REIT, the Company must make aggregate annual distributions to its stockholders of at least 90% of its REIT taxable income (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). If the Company meets the REIT qualification requirements, the Company generally will not be subject to federal income tax on the income that the Company distributes to its stockholders each year. Distributions Declared The Company’s board of directors approved a cash distribution that accrues at a rate of $0.002459 per day for each share of the Company’s common stock during each of the three and six months ended June 30, 2020, which, if paid over a 366-day period is equivalent to $0.90 per share. During the three and six months ended June 30, 2019, cash distributions accrued at a rate of $0.002466 per day for each share, which, if paid over a 365-day period, is equivalent to $0.90 per share. The distributions declared accrue daily to stockholders of record as of the close of business on each day and are payable in cumulative amounts on or before the third day of each calendar month with respect to the prior month. There is no guarantee that the Company will continue to pay distributions at this rate or at all. Distributions declared for the three and six months ended June 30, 2020, were $24,588,408 and $39,979,942, including $5,363,890 and $10,499,787, or 352,192 and 676,428 shares of common stock, respectively, attributable to the DRP. Distributions declared for the three and six months ended June 30, 2019, were $11,684,723 and $23,196,260, including $5,286,618 and $10,630,544, or 333,752 and 685,789 shares of common stock, respectively, attributable to the DRP. As of June 30, 2020 and December 31, 2019, $8,232,272 and $4,021,509 of distributions declared were payable, which included $1,760,414 and $1,744,240, or 115,589 shares and 110,116 shares of common stock, attributable to the DRP, respectively. Distributions Paid For the three and six months ended June 30, 2020, the Company paid cash distributions of $19,313,315 and $26,030,027, which related to distributions declared for each day in the period from March 1, 2020 through May 31, 2020 and December 1, 2019 through May 31, 2020, respectively. Additionally, for the three and six months ended June 30, 2020, 349,989 shares and 670,958 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,399,458 and $10,483,613, respectively. For the three and six months ended June 30, 2020, the Company paid total distributions of $24,712,773 and $36,513,640, respectively. For the three and six months ended June 30, 2019, the Company paid cash distributions of $6,419,268 and $12,535,724, which related to distributions declared for each day in the period from March 1, 2019 through May 31, 2019 and December 1, 2018 through May 31, 2019, respectively. Additionally, for the three and six months ended June 30, 2019, 339,564 shares and 693,883 shares of common stock were issued pursuant to the DRP for gross offering proceeds of $5,378,696 and $10,757,262, respectively. For the three and six months ended June 30, 2019, the Company paid total distributions of $11,797,964 and $23,292,986, respectively. |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interests represent Class A-2 operating partnership units (“Class A-2 OP Units”) in STAR III OP, the Company’s indirect subsidiary. STAR III Merger Sub, which is the sole general partner of STAR III OP. STAR III OP agreed to acquire a 310-unit multifamily property located in Dallas, Texas known as VV&M Apartments (“VV&M”) for an aggregate purchase price of $59,250,000, pursuant to the terms of a Contribution Agreement, dated as of March 20, 2020 (the “Contribution Agreement”), by and among STAR III OP, as Purchaser, and Wellington VVM, LLC and Copans VVM, LLC (collectively, the “Contributors”). On April 21, 2020 (the “Closing Date”), all of the closing conditions had been satisfied or waived and the Contributors contributed VV&M to STAR III OP, and STAR III OP issued 948,785 Class A-2 OP Units valued at $14,450,000 in the aggregate to the Contributors, all in accordance with the Contribution Agreement. On the Closing Date, STAR III OP and the Contributors entered into the Second Amended and Restated Agreement of Limited Partnership of STAR III OP (“STAR III OP Agreement”). The STAR III OP Agreement provides for the Contributors to request STAR III OP to: (i) repurchase the outstanding Class A-2 OP Units after five years from the Closing Date (the “Put”), or (ii) convert the Class A-2 OP Units into shares of common stock of the Company. STAR III OP has the right to repurchase the Class A-2 OP Units after five years from the Closing Date and can exercise its option to settle the Put in shares of common stock of the Company. The Class A-2 OP Units receive distributions at the same rate paid to holders of the Company’s common stock and are allocated a share of the Company’s income equivalent to the distributions paid, but are not entitled to a residual share of the Company’s net income or loss. The Company has evaluated the terms of the STAR III OP Agreement and in accordance with ASC 480, determined that the Class A-2 OP Units are properly recognized as permanent equity on the consolidated balance sheets. As of June 30, 2020, noncontrolling interests were approximately 0.87% of total shares and 1.07% of weighted average shares outstanding (both measures assuming Class A-2 OP Units were converted to common stock). The following summarizes the activity for noncontrolling interests recorded as equity for the three and six months ended June 30, 2020: June 30, 2020 Issuance of Class A-2 OP Units $ 14,450,000 Income attributable to noncontrolling interest 163,314 Distributions to noncontrolling interest (163,314) Noncontrolling interest $ 14,450,000 |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party ArrangementsThe Company entered into the Advisory Agreement with the Advisor. Pursuant to the Advisory Agreement, the Company is obligated to pay the Advisor specified fees upon the provision of certain services, the investment of funds in real estate and real estate-related investments and the management of the Company’s investments and for other services (including, but not limited to, the disposition of investments). Subject to the limitations described below, the Company is also obligated to reimburse the Advisor and its affiliates for organization and offering costs incurred by the Advisor and its affiliates on behalf of the Company, as well as acquisition and origination expenses and certain operating expenses incurred on behalf of the Company or incurred in connection with providing services to the Company. Amounts attributable to the Advisor and its affiliates incurred (received) for the three and six months ended June 30, 2020 and 2019, and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of June 30, 2020 and December 31, 2019 are as follows: Incurred (Received) For the Incurred (Received) For the Payable (Prepaid) as of Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 June 30, 2020 December 31, 2019 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 8,535,093 $ 4,174,176 $ 13,889,530 $ 8,334,328 $ 2,893,842 $ 4,120,353 Acquisition expenses (2) — 92,661 1,111 92,661 — — Loan coordination fees (1) 1,116,700 — 1,605,652 — — 600,000 Disposition fees (3) — — 338,750 — — 591,000 Disposition transaction costs (3) — — 5,144 — — — Property management: Fees (1) 2,369,487 1,245,150 3,865,857 2,479,427 805,482 418,173 Reimbursement of onsite personnel (4) 7,780,381 3,776,431 12,475,428 7,504,136 1,778,005 843,763 Reimbursement of other (1) 1,688,053 846,632 2,775,590 1,517,851 114,079 50,778 Reimbursement of property operations (4) 109,188 26,600 188,199 49,742 — 11,465 Reimbursement of property G&A (2) 51,811 26,845 84,216 61,832 — 7,000 Other operating expenses (2) 954,292 413,043 1,664,464 828,151 230,267 463,301 Insurance proceeds (5) (150,000) — (150,000) — — — Property insurance (6) 1,515,016 359,663 2,439,952 641,978 — (542,324) Rental revenue (7) (23,282) (14,745) (41,029) (29,490) — — Consolidated Balance Sheets: Capitalized Acquisition fees (8) 341,371 48,343 17,717,639 48,343 42,660 — Acquisition expenses (8) 133,695 154,477 389,919 218,712 14,593 — Loan coordination fees (8) 224,000 — 8,812,071 — — — Capitalized development services fee (9) 151,071 — 302,142 — 50,357 50,357 Capitalized investment management fees (9) 98,454 — 179,668 — 34,692 25,811 Capitalized development costs (9) 2,435 — 3,030 — 1,090 — Construction management: Fees (10) 259,509 303,518 382,272 461,417 701 43,757 Reimbursement of labor costs (10) 95,692 110,945 166,239 261,305 7,629 8,525 Deferred financing costs (11) 49,050 — 49,050 — — — Additional paid-in capital Selling commissions — — — — 21,336 71,287 $ 25,302,016 $ 11,563,739 $ 67,144,894 $ 22,470,393 $ 5,994,733 $ 6,763,246 _____________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in gain on sale of real estate, net in the accompanying consolidated statements of operations. (4) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (5) Included in other income in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in total real estate, net in the accompanying consolidated balance sheets. (9) Included in real estate held for development in the accompanying consolidated balance sheets. (10) Included in building and improvements in the accompanying consolidated balance sheets. (11) Included in notes payable, net in the accompanying consolidated balance sheets. Investment Management Fee Prior to the completion of the Mergers on March 6, 2020, the Company paid the Advisor a monthly investment management fee equal to one-twelfth of 1.0% of (1) the cost of real properties and real estate-related assets acquired directly by the Company or (2) the Company’s allocable cost of each investment in real property or real estate related asset acquired through a joint venture. The investment management fee is calculated including the amount actually paid or budgeted to fund acquisition fees, acquisition expenses, cost of development, construction or improvement and any debt attributable to such investments, or the Company’s proportionate share thereof in the case of investments made through joint ventures. Following the completion of the Mergers on March 6, 2020, the Company pays the Advisor a monthly investment management fee, which is calculated on the same basis as described above, and payable 50% in cash and 50% in shares of the Company’s common stock. Investment management fees of $4,039,148 and $0 pertaining to the 50% payable in shares of the Company common stock were paid for the three and six months ended June 30, 2020. Acquisition Fees and Expenses Prior to the completion of the Mergers on March 6, 2020, the Company paid the Advisor an acquisition fee equal to 1.0% of the cost of investment, which includes the amount actually paid or budgeted to fund the acquisition, origination, development, construction or improvement (i.e. value enhancement) of any real property or real estate-related asset acquired. In addition to acquisition fees, the Company reimburses the Advisor for amounts directly incurred by the Advisor and amounts the Advisor pays to third parties in connection with the selection, evaluation, acquisition and development of a property or acquisition of real estate-related assets, whether or not the Company ultimately acquires the property or the real estate-related assets. Following the completion of the Mergers on March 6, 2020, the Company pays the Advisor an acquisition fee of 0.5%, which is calculated on the same basis as above. In connection with the Mergers, the Company paid the Advisor an acquisition fee of $16,281,487, which was capitalized to the acquired real estate and investment in unconsolidated joint venture in the accompanying consolidated balance sheets. The Charter limits the Company’s ability to pay acquisition fees if the total of all acquisition fees and expenses relating to the purchase would exceed 4.5% of the contract purchase price. Under the Charter, a majority of the Company’s board of directors, including a majority of the independent directors, is required to approve any acquisition fees (or portion thereof) that would cause the total of all acquisition fees and expenses relating to an acquisition to exceed 4.5% of the contract purchase price. In connection with the purchase of securities, the acquisition fee may be paid to an affiliate of the Advisor that is registered as a Financial Industry Regulatory Authority, Inc. (“FINRA”) member broker-dealer if applicable FINRA rules would prohibit the payment of the acquisition fee to a firm that is not a registered broker-dealer. Loan Coordination Fee Prior to the completion of the Mergers on March 6, 2020, the Company paid the Advisor or its affiliate a loan coordination fee equal to 1.0% of the initial amount of the new debt financed or outstanding debt assumed in connection with the acquisition, development, construction, improvement or origination of a property or a real estate-related asset. In addition, in connection with any financing or the refinancing of any debt (in each case, other than identified at the time of the acquisition of a property or a real estate-related asset), the Company paid the Advisor or its affiliate a loan coordination fee equal to 0.75% of the amount of debt financed or refinanced. In some instances, the Company and the Advisor agreed to a loan coordination fee of $100,000 per loan refinanced. Following the completion of the Mergers on March 6, 2020, the Company pays the Advisor or one of its affiliates, in cash, the loan coordination fee equal to 0.5% of (1) the initial amount of new debt financed or outstanding debt assumed in connection with the acquisition, development, construction, improvement or origination of any type of real estate asset or real estate-related asset acquired directly or (2) the Company’s allocable portion of the purchase price and therefore the related debt in connection with the acquisition or origination of any type of real estate asset or real estate-related asset acquired through a joint venture. In connection with the Mergers, the Company paid the Advisor a loan coordination fee of $7,910,205, which was capitalized to the acquired real estate and investment in unconsolidated joint venture in the accompanying consolidated balance sheets. As compensation for services rendered in connection with any financing or the refinancing of any debt (in each case, other than at the time of the acquisition of a property), the Company also pays the Advisor or one of its affiliates, in the form of shares equal to such amount, a loan coordination fee equal to 0.5% of the amount refinanced or the Company’s proportionate share of the amount refinanced in the case of investments made through a joint venture. Loan coordination fees of $1,116,694 and $0 were paid in shares of the Company common stock for the three and six months ended June 30, 2020. Property Management Fees and Expenses The Company entered into property management agreements (each, as amended from time to time, a “Property Management Agreement”) with Steadfast Management Company, Inc., an affiliate of the Sponsor (the “Property Manager”), in connection with the management of each of the Company’s properties. The property management fee payable with respect to each property under the Property Management Agreements at June 30, 2020, ranged from 2.50% to 3.5% of the annual gross revenue collected at the property, as determined by the Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. Each Property Management Agreement has an initial one-year term and continues thereafter on a month-to-month basis unless either party gives 60-days’ prior notice of its desire to terminate the Property Management Agreement, provided that the Company may terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days’ prior written notice to the Property Manager. In addition to the property management fee, the Property Management Agreements also specify certain other reimbursements payable to the Property Manager for benefit administration, information technology infrastructure, licenses, support and training services and capital expenditures supervision. The Company also reimburses the Property Manager for the salaries and related benefits of on-site property management employees. Construction Management Fees and Expenses The Company entered into construction management agreements (each, a “Construction Management Agreement”) with Pacific Coast Land & Construction, Inc., an affiliate of the Sponsor (the “Construction Manager”), in connection with capital improvements and renovation or value-enhancement projects for certain properties the Company acquires. The construction management fee payable with respect to each property under the Construction Management Agreements ranges from 6.0% to 12.0% of the costs of the improvements for which the Construction Manager has planning and oversight authority. Generally, each Construction Management Agreement can be terminated by either party with 30 days’ prior written notice to the other party. Construction management fees are capitalized to the respective real estate properties in the period in which they are incurred as such costs relate to capital improvements and renovations for apartment homes taken out of service while they undergo the planned renovation. The Company may also reimburse the Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations. Development Services In some instances, the Company may enter into a Development Services Agreement with Steadfast Multifamily Development, Inc., an affiliate of the Advisor, (the “Developer”), in connection with a development project, pursuant to which the Developer will receive a development fee and reimbursement for certain expenses for overseeing the development project. The Company entered into a Development Services Agreement with the Developer in connection with the Garrison Station, the Arista and the Flatirons development projects that provided for a development fee equal to 4% of the hard and soft costs of the development project (as defined in the applicable Development Services Agreement) as specified in the Development Services Agreement. 75% of the development fee will be paid in 14 monthly installments and the remaining 25% will be paid upon delivery of a certificate of occupancy by the Developer to the Company. Property Insurance The Company deposits amounts with an affiliate of the Sponsor to fund a prepaid insurance deductible account to cover the cost of required insurance deductibles across all properties of the Company and other affiliated entities. Upon filing a major claim, proceeds from the insurance deductible account may be used by the Company or another affiliate of the Sponsor. In addition, the Company deposits amounts with an affiliate of the Sponsor to cover the cost of property and property related insurance across certain properties of the Company. Other Operating Expense Reimbursement In addition to the various fees paid to the Advisor, the Company is obligated to pay directly or reimburse all expenses incurred by the Advisor in providing services to the Company, including the Company’s allocable share of the Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company will not reimburse the Advisor for employee costs in connection with services for which the Advisor or its affiliates receive acquisition fees or disposition fees or for the salaries the Advisor pays to the Company’s executive officers. The Charter limits the Company’s total operating expenses during any four fiscal quarters to the greater of 2% of the Company’s average invested assets or 25% of the Company’s net income for the same period (the “2%/25% Limitation”). The Company may reimburse the Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Advisor; provided, however, that the Company shall not reimburse the Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors have determined that such excess expenses were justified based on unusual and non-recurring factors. The Advisor must reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceed the 2%/25% Limitation, unless approved by the independent directors. For purposes of determining the 2%/25% Limitation amount, “average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, bad debts reserves or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company that are in any way related to the Company’s operation, including the Company’s allocable share of Advisor overhead, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based on the gain in the sale of the Company’s assets; (f) acquisition fees and acquisition expenses (including expenses relating to potential acquisitions that the Company does not close) and investment management fees; (g) real estate commissions on the resale of investments; and (h) other expenses connected with the acquisition, disposition, management and ownership of investments (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of real property). As of June 30, 2020, the Company’s total operating expenses, as defined above, did not exceed the 2%/25% Limitation. Disposition Fee Prior to the completion of the Mergers on March 6, 2020, if the Advisor or its affiliates provided a substantial amount of services in connection with the sale of a property or real estate-related asset as determined by a majority of the Company’s independent directors, the Company paid the Advisor or its affiliates a fee equivalent to one-half of the brokerage commissions paid, but in no event to exceed 1.0% of the sales price of each property or real estate-related asset sold. Following the completion of the Mergers on March 6, 2020, the disposition fee payable to the Advisor remains one-half of the brokerage commissions paid, but in no event to exceed 0.5% of the sales price of each property or real estate-related asset sold. To the extent the disposition fee is paid upon the sale of any assets other than real property, it will be included as an operating expense for purposes of the 2%/25% Limitation. In connection with the sale of securities, the disposition fee may be paid to an affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable FINRA rules would prohibit the payment of the disposition fee to a firm that is not a registered broker-dealer. Selling Commissions and Dealer Manager Fees The Company entered into the Dealer Manager Agreement with the Dealer Manager in connection with the Public Offering. The Company paid the Dealer Manager up to 7% and 3% of the gross offering proceeds from the Primary Offering as selling commissions and dealer manager fees, respectively. The Dealer Manager reallowed 100% of sales commissions earned to participating broker-dealers. The Dealer Manager could also reallow to any participating broker-dealer a portion of the dealer manager fee that was attributable to that participating broker-dealer for certain marketing costs of that participating broker-dealer. The Dealer Manager negotiated the reallowance of the dealer manager fee on a case-by-case basis with each participating broker-dealer subject to various factors associated with the cost of the marketing program. The Company allowed a participating broker-dealer to elect to receive the 7% selling commissions at the time of sale or elect to have the selling commission paid on a trailing basis. A participating broker-dealer that elected to receive a trailing selling commission is paid as follows: 3% at the time of sale and the remaining 4% paid ratably (1% per year) on each of the first four Class A Convertible Stock In connection with the Mergers, the Company and the Advisor exchanged the then outstanding Convertible Stock for the new Class A Convertible Stock. The Class A Convertible Stock will be converted into shares of the Company’s common stock if (1) the Company has made total Class A Distributions equal to the original issue price of the Common Equity, plus an aggregate 6.0% cumulative, non-compounded, annual return on the original issue price of those shares, (2) the Company lists its common stock for trading on a national securities exchange or enters into a merger whereby holders of the Company’s common stock receive listed securities of another issuer or (3) the Company’s Advisory Agreement is terminated or not renewed (other than for “cause” as defined in the Advisory Agreement). Upon any of these Triggering Events, each share of Class A Convertible Stock will be converted into a number of shares of the Company’s common stock equal to 1/1000 of the quotient of (A) 15% of the amount, if any, by which (i) the Class A Enterprise Value plus the aggregate value of the Class A Distributions paid to date on the Common Equity exceeds (ii) the aggregate purchase price paid by stockholders for the Common Equity plus an aggregated 6.0% cumulative, non-compounded, annual return on the original issue price of the Common Equity as of the date of the Triggering Event, divided by (B) the Class A Enterprise Value divided by the number of the Company’s outstanding common shares on an as-converted basis as of the date of Triggering Event. In the event of a termination or non-renewal of the Advisory Agreement for cause, all of the shares of the Class A Convertible Stock will be repurchased by the Company for $1.00. |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Award Plan and Independent Director Compensation | Incentive Award Plan and Independent Director Compensation The Company adopted an incentive award plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. Under the Company’s independent directors’ compensation plan, which is a sub-plan of the Incentive Award Plan, each of the Company’s independent directors received 3,333 shares of restricted common stock once the Company raised $2,000,000 in gross offering proceeds in the Public Offering. Each subsequent independent director that joins the Company’s board of directors receives 3,333 shares of restricted common stock upon election to the Company’s board of directors. In addition, on the date following an independent director’s re-election to the Company’s board of directors, he or she receives 1,666 shares of restricted common stock. One-fourth of the shares of restricted common stock generally vest and become non-forfeitable upon issuance and the remaining portion will vest in three On March 6, 2020, the Company granted 3,333 shares of restricted shares of common stock pursuant to the independent directors’ compensation plan to each of its two newly elected independent directors. The Company recorded stock-based compensation expense of $20,928 and $63,383 for the three and six months ended June 30, 2020 and $13,896 and $27,792 for the three and six months ended June 30, 2019, respectively, related to the independent directors’ restricted common stock. In addition to the stock awards, the Company pays each of its independent directors an annual retainer of $55,000, prorated for any partial term (the audit committee chairperson receives an additional $10,000 annual retainer, prorated for any partial term). The independent directors are also paid for attending meetings as follows: (i) $2,500 for each board meeting attended in person, (ii) $1,500 for each committee meeting attended in person in such director’s capacity as a committee member, (iii) $1,000 for each board meeting attended via teleconference (not to exceed $4,000 for any one set of meetings attended on any given day). In connection with meetings of the special committee, the independent directors received $1,000 for each teleconference meeting and $1,500 for each in-person meeting. The chairman of the special committee also received a $60,000 retainer and the other special committee members received a $50,000 retainer. All directors also receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors. Director compensation is an operating expense of the Company that is subject to the operating expense reimbursement obligation of the Advisor discussed in Note 9 (Related Party Arrangements). The Company recorded an operating expense of $465,250 and $537,000 for the three and six months ended June 30, 2020, and $99,750 and $252,000 for the three and six months ended June 30, 2019, related to the independent directors’ annual retainer and attending board and committee meetings, which is included in general and administrative expenses in the accompanying consolidated statements of operations. As of June 30, 2020 and December 31, 2019, $186,250 and $61,750, respectively, related to the independent directors’ annual retainer and board meetings attendance is included in accounts payable and accrued liabilities in the consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Economic Dependency The Company is dependent on the Advisor for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of real estate and real estate-related investments; management of the daily operations of the Company’s real estate and real estate-related investment portfolio; and other general and administrative responsibilities. In the event that the Advisor is unable to provide such services, the Company will be required to obtain such services from other sources. The Company may not be able to retain services from such other sources on favorable terms or at all. Concentration of Credit Risk The geographic concentration of the Company’s portfolio makes it particularly susceptible to adverse economic developments in the Atlanta, Georgia and Dallas, Texas, apartment markets. Any adverse economic or real estate developments in these markets, such as business layoffs or downsizing, relocations of businesses, increased competition from other apartment communities, decrease in demand for apartments or any other changes, could adversely affect the Company’s operating results and its ability to make distributions to stockholders. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. The Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its residents and other environmental conditions of which the Company is unaware with respect to the properties could result in future environmental liabilities. Legal Matters From time to time, the Company is subject, or party, to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is reasonably likely to have a material adverse effect on the Company’s results of operations or financial condition nor is the Company aware of any such legal proceedings contemplated by government agencies. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted loss per share, or EPS, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss attributable to the common stockholders $ (53,224,622) $ (11,993,010) $ (62,905,750) $ (24,352,282) Less: Distributions declared on Class A-2 OP Units (163,314) — (163,314) — Distributions related to unvested restricted stockholders (1) (2,796) (1,682) (5,667) (3,346) Numerator for loss per common share — basic $ (53,390,732) $ (11,994,692) $ (63,074,731) $ (24,355,628) Weighted average common shares outstanding — basic and diluted (2) 109,139,963 52,123,442 88,660,741 51,999,327 Loss per common share — basic and diluted $ (0.49) $ (0.23) $ (0.71) $ (0.47) _____________________ (1) Unvested restricted stockholders that have a right to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted EPS under the two-class method. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate derivatives with the objective of managing exposure to interest rate movements thereby minimizing the effect of interest rate changes and the effect they could have on future cash flows. Interest rate cap agreements are used to accomplish this objective. The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at June 30, 2020 and December 31, 2019: June 30, 2020 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 7/1/2020 - 7/1/2023 One-Month LIBOR 17 $ 681,930,345 0.16% 3.25% $ 26,048 December 31, 2019 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2020 - 8/1/2021 One-Month LIBOR 9 $ 343,017,350 1.76% 3.45% $ 132 The interest rate cap agreements are not designated as effective cash flow hedges. Accordingly, the Company records any changes in the fair value of the interest rate cap agreements as interest expense. The change in the fair value of the interest rate cap agreements for the three and six months ended June 30, 2020, resulted in an unrealized loss of $24,943 and $27,194, respectively, and for the three and six months ended June 30, 2019, resulted in an unrealized loss of $20,107 and $199,723, respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the six months ended June 30, 2020 and 2019, the Company acquired interest rate cap agreements of $47,000 and $0, respectively, and did not receive settlement proceeds. The fair value of the interest rate cap agreements of $26,048 and $132 as of June 30, 2020 and December 31, 2019, respectively, is included in other assets on the accompanying consolidated balance sheets. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value DisclosuresThe Company is required to disclose fair value information about all financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. The Company measures and discloses the estimated fair value of financial assets and liabilities utilizing a fair value hierarchy that distinguishes between data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities, (ii) “significant other observable inputs,” and (iii) “significant unobservable inputs.” “Significant other observable inputs” can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. “Significant unobservable inputs” are typically based on an entity’s own assumptions, since there is little, if any, related market activity. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers between the levels in the fair value hierarchy during the six months ended June 30, 2020 and 2019. The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: June 30, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Recurring Basis: Assets: Interest rate cap agreements (1) $ — $ 26,048 $ — December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Recurring Basis: Assets: Interest rate cap agreements (1) $ — $ 132 $ — The following table reflects the Company’s assets required to be measured at fair value on a nonrecurring basis on the consolidated balance sheets: June 30, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Nonrecurring Basis: Assets: Impaired real estate (2) $ — $ — $ 80,967,000 Impaired investment in unconsolidated joint venture (3) — — 18,984,491 ___________ (1) See Note 13 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The Company impaired real estate assets that have been actively marketed for sale at a disposition price that is less than their carrying value. The valuation technique used for the fair value of all impaired real estate assets was the expected net sales proceeds. The Company determined that the valuation falls under Level 3 of the fair value hierarchy. During the three and six months ended June 30, 2020, the Company recorded impairment charges of $5,039,937. No impairment charges were recorded during the three and six months ended June 30, 2019. See Note 3 (Real Estate) for a further discussion on the impaired real estate properties. The carrying value of impaired real estate assets may be subsequently increased or decreased after the measurement date due to capital improvements, depreciation, or sale. (3) For the six months ended June 30, 2020, the Company determined that its investment in the Joint Venture was other-than-temporarily impaired. The fair value of the Joint Venture is based on the cash consideration pursuant to the sale agreement that was entered into by the Company on July 16, 2020. The Company determined that the valuation falls under Level 3 of the fair value hierarchy. During the three and six months ended June 30, 2020, the Company recorded |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid On July 1, 2020, the Company paid distributions of $8,068,958, which related to distributions declared for each day in the period from June 1, 2020 through June 30, 2020 and consisted of cash distributions paid in the amount of $6,308,544 and $1,760,414 in shares issued pursuant to the DRP. On August 3, 2020, the Company paid distributions of $8,357,085, which related to distributions declared for each day in the period from July 1, 2020 through July 31, 2020 and consisted of cash distributions paid in the amount of $6,550,050 and $1,807,035 in shares issued pursuant to the DRP. IMF Paid in Shares On July 1, 2020, the Company issued 93,796 shares of common stock to the Advisor as payment for monthly investment management fees for the month of June 2020, pursuant to the Advisory Agreement. Such shares were issued in transactions exempt from registration pursuant to Section 4(a)(2) of the Securities Act. On August 3, 2020, the Company issued 97,534 shares of common stock to the Advisor as payment for monthly investment management fees for the month of July 2020, pursuant to the Advisory Agreement. Such shares were issued in transactions exempt from registration pursuant to Section 4(a)(2) of the Securities Act. Shares Repurchased On July 31, 2020, the Company repurchased 278,105 shares of its common stock for a total repurchase value of $4,000,000, or $14.38 per share, pursuant to the Company’s share repurchase plan. COVID-19 Pandemic The outbreak of COVID-19, declared by the World Health Organization as a global pandemic on March 11, 2020, is causing heightened uncertainty in both local and global market conditions. The effect COVID-19 will have on the real estate markets generally, and in which the Company owns and operates assets, is currently unknown and will depend in part on both the scale and longevity of the pandemic. During the months of May 2020 and June 2020, the United States witnessed a sharp increase in the number of cases reported and some states are reversing plans to reopen society. While market activity is being impacted in most sectors, at this stage hospitality and retail sectors have been most significantly impacted due to the increased responses by local, national and global authorities, including shelter in place orders, restriction of travel and growing international concern. A prolonged pandemic could have a significant (and is yet unknown or quantifiable) impact on other sectors of the property market including multifamily real estate. The changing responses to COVID-19 create an unprecedented set of circumstances on which to base a judgment. Distributions Declared On July 9, 2020, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on August 1, 2020 and ending on August 31, 2020. The distributions will be equal to $0.002459 per share of the Company’s common stock per day. The distributions for each record date in August 2020 will be paid in September 2020. The distributions will be payable to stockholders from legally available funds therefor. On August 4, 2020, the Company’s board of directors approved and authorized a daily distribution to stockholders of record as of the close of business on each day of the period commencing on September 1, 2020 and ending on September 30, 2020. The distributions will be equal to $0.002459 per share of the Company’s common stock per day. The distributions for each record date in September 2020 will be paid in October 2020. The distributions will be payable to stockholders from legally available funds therefor. Sale of Investment in Unconsolidated Joint Venture On March 6, 2020, the Company, acquired a 10% interest in the Joint Venture in connection with the SIR Merger. The Joint Venture owns 20 multifamily properties with a total of 4,584 apartment homes. The purchase price of the Joint Venture was $21,500,000, exclusive of closing costs. On July 16, 2020, the Company sold the Joint Venture for $19,278,280, resulting in a OTTI of $2,442,411, recognized in the consolidated statement of operations for the three and six months ended June 30, 2020. The purchaser of the Joint Venture is not affiliated with the Company or the Advisor. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, the Operating Partnership and its wholly-owned subsidiaries. The portion of an entity not wholly-owned by the Company is presented as noncontrolling interest. All significant intercompany balances and transactions are eliminated in consolidation. The financial statements of the Company’s subsidiaries are prepared using accounting policies consistent with those of the Company. |
Basis of Presentation | The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the FASB, ASC and the rules and regulations of the SEC, including the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the financial statements for the unaudited interim periods presented include all adjustments that are of a normal and recurring nature and necessary for a fair and consistent presentation of the results of such periods. Operating results for the three and six months ended June 30, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The unaudited consolidated financial statements herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Noncontrolling interest | Noncontrolling interest Noncontrolling interest represents the portion of equity that the Company does not own in an entity that is consolidated. The Company’s noncontrolling interest is comprised of Class A-2 operating partnership units (“Class A-2 OP Units”) in STAR III OP, the Company’s indirect subsidiary. The Company accounts for noncontrolling interests in accordance with ASC 810, Consolidation (“ASC 810”). In accordance with ASC 810, the Company reports noncontrolling interests in subsidiaries within equity in the consolidated financial statements, but separate from stockholders’ equity. In accordance with ASC 480, Distinguishing Liabilities from Equity (“ASC 480”), noncontrolling interests that are determined to be redeemable are carried at their fair value or redemption value as of the balance sheet date and reported as liabilities or temporary equity depending on their terms. A noncontrolling interest that fails to qualify as permanent equity will be reclassified as a liability or temporary equity. As of June 30, 2020, the Company’s noncontrolling interests qualified as permanent equity. There were no |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. |
Real Estate Assets | Real Estate Assets Real Estate Purchase Price Allocation Upon the acquisition of real estate properties or other entities owning real estate properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition under ASC 805, Business Combinations (“ASC 805”). For both business combinations and asset acquisitions the Company allocates the purchase price of real estate properties to acquired tangible assets, consisting of land, buildings and improvements, and acquired intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. Acquisition fees and costs associated with transactions determined to be asset acquisitions are capitalized in total real estate, net in the accompanying consolidated balance sheets. For the three and six months ended June 30, 2020, all of the Company’s acquisitions were determined to be asset acquisitions. The fair values of the tangible assets of an acquired property (which includes land, buildings and improvements) are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings and improvements based on management’s determination of the relative fair value of these assets. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses during the expected lease-up periods based on current market conditions. The fair values of above-market and below-market in-place leases are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease including any fixed rate bargain renewal periods, with respect to a below-market lease. The above-market and below-market lease values are capitalized as intangible lease assets or liabilities. Above-market lease values are amortized as an adjustment of rental revenue over the remaining terms of the respective leases. Below-market leases are amortized as an adjustment of rental revenue over the remaining terms of the respective leases, including any fixed rate bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above-market and below-market in-place lease values related to that lease would be recorded as an adjustment to rental revenue. The fair values of in-place leases include an estimate of direct costs associated with obtaining a new resident and opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new resident include commissions, resident improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are amortized to depreciation and amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. Impairment of Real Estate Assets The Company accounts for its real estate assets in accordance with ASC 360, Property, Plant and Equipment (“ASC 360”). ASC 360 requires the Company to continually monitor events and changes in circumstances that could indicate that the carrying amounts of the Company’s real estate and related intangible assets may not be recoverable. When indicators of potential impairment suggest that the carrying value of real estate and related intangible assets and liabilities may not be recoverable, the Company assesses the recoverability of the assets by estimating whether the Company will recover the carrying value of the asset through its undiscounted future cash flows and its eventual disposition. Based on this analysis, if the Company does not believe that it will be able to recover the carrying value of the real estate and related intangible assets and liabilities, the Company records an impairment loss to the extent that the carrying value exceeds the estimated fair value of the real estate and related intangible assets and liabilities. If any assumptions, projections or estimates regarding an asset changes in the future, the Company may have to record an impairment to reduce the net book value of such individual asset. The Company continues to monitor events in connection with the recent outbreak of the novel Coronavirus (“COVID-19”) and evaluates any potential indicators that could suggest that the carrying value of its real estate investments and related intangible assets and liabilities may not be recoverable. The Company recorded an impairment charge related to two of its real estate assets during the three and six months ended June 30, 2020. No impairment loss was recorded in the three and six months ended June 30, 2019. See Note 3 (Real Estate) for details. |
Revenue recognition - operating leases | Revenue recognition - operating leases The majority of the Company’s revenue is derived from rental revenue, which is accounted for in accordance with Accounting Standards Codification 842, Leases (“ASC 842”). The Company leases apartment homes under operating leases with terms generally of one year or less. Generally, credit investigations are performed for prospective residents and security deposits are obtained. In accordance with ASC 842, the Company recognizes minimum rent, including rental abatements, lease incentives and contractual fixed increases attributable to operating leases, on a straight-line basis over the term of the related leases when collectability is probable and records amounts expected to be received in later years as deferred rent receivable. For lease arrangements when it is not probable that the Company will collect all or substantially all of the remaining lease payments under the term of the lease, rental revenue is limited to the lesser of the rental revenue that would be recognized on a straight-line basis (as applicable) or the lease payments that have been collected from the lessee. Differences between rental revenue recognized and amounts contractually due under the lease agreements are credited or charged to straight-line rent receivable or straight-line rent liability, as applicable. Tenant reimbursements for common area maintenance and other recoverable expenses, are recognized when the services are provided and the performance obligations are satisfied. Tenant reimbursements for common area maintenance are accounted for as variable lease payments and are recorded as rental income on the Company’s statement of operations. |
Rents and Other receivables | Rents and Other receivables In accordance with ASC 842, the Company makes a determination of whether the collectability of the lease payments in an operating lease is probable. If the Company determines the lease payments are not probable of collection, the Company would fully reserve for any contractual lease payments, deferred rent receivable, and variable lease payments and would recognize rental income only if cash is received. The Company exercises judgment in establishing these allowances and considers payment history and current credit status of residents in developing these estimates. Due to the short-term nature of the operating leases, the Company does not maintain a deferred rent receivable related to the straight-lining of rents. Any changes to the Company’s collectability assessment are reflected as an adjustment to rental income. Residents’ payment plans due to COVID-19 In April, 2020, the FASB issued the ASC 842 Q&A to respond to some frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 pandemic. Under ASC 842, modified terms and conditions of a company’s existing lease contracts, such as, changes to lease payments, may affect the economics of the lease for the remainder of the term and are generally accounted for as lease modifications. Some contracts may contain explicit or implicit enforceable rights and obligations that require lease concessions if certain circumstances arise that are beyond the control of the parties to the contract. If a lease contract provides enforceable rights and obligations for concessions in the contract and no changes are made to that contract, the concessions are not accounted for under the lease modification guidance in ASC 842. If concessions granted by lessors are beyond the enforceable rights and obligations in the contract, entities would generally account for those concessions in accordance with the lease modification guidance in ASC 842. The FASB staff has been made aware that, given the unprecedented and global nature of the COVID-19 pandemic, it may be exceedingly challenging for entities to determine whether existing contracts provide enforceable rights and obligations for lease concessions and, if so, whether those concessions are consistent with the terms of the contract or are modifications to a contract. Consequently, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance under ASC 842 to those contracts. Entities may make the elections for any lessor-provided concessions related to the effects of the COVID-19 pandemic (e.g., deferrals of lease payments, reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. In addition to that, for concessions that provide a deferral of payments with no substantive changes to the consideration in the original contract, the FASB allows entities to account for the concessions as if no changes to the lease contract were made. Under this method, a lessor would increase its lease receivable and continue to recognize income. During the quarter ended June 30, 2020, the Company instituted payment plans for its residents that were experiencing hardship due to COVID-19, which the Company refers to as the “COVID-19 Payment Plan.” Pursuant to the COVID-19 Payment Plan, the Company allowed qualifying residents to defer their rent, which is collected by the Company in monthly installment payments over the duration of the current lease or renewal term (which may not exceed 12 months). Additionally, for the months of May and June 2020, the Company began providing certain qualifying residents with a one-time concession to incentivize their performance under the payment plan. If the qualifying resident fails to make payments pursuant to the COVID-19 Payment Plan, the concession is immediately terminated, and the qualifying resident is required to immediately repay the amount of the concession. The Company did not offer residents a payment plan during July 2020 due to the reduced demand for such payment plans in May and June 2020. The Company may in the future continue to offer various types of payment plans or rent relief depending on the ongoing impact of the COVID-19 pandemic. The Company elected not to evaluate whether its COVID-19 Payment Plans are lease modifications and therefore the Company’s policy is to account for the lease contracts with COVID-19 Payment Plans as if no lease modifications occurred. Under this accounting method, a lessor with an operating lease may account for the concession by continuing to recognize a lease receivable until the rental payment is received from the lessee at the revised payment date. If it is determined that the lease receivable is not collectable, the Company would treat that lease contract on a cash basis as defined in ASC 842. As of June 30, 2020, the Company reserved approximately $1,264,000 of accounts receivables which are considered not probable for collection. |
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures The Company accounts for investments in unconsolidated joint venture entities in which it may exercise significant influence over, but does not control, using the equity method of accounting. Under the equity method, the investment is initially recorded at cost including an outside basis difference, which represents the difference between the purchase price the Company paid for its investment in the joint venture and the book value of the Company’s equity in the joint venture, and subsequently adjusts it to reflect additional contributions or distributions, the Company’s proportionate share of equity in the joint venture’s earnings (loss) and amortization of the outside basis difference. The Company recognizes its proportionate share of the ongoing income or loss of the unconsolidated joint venture as equity in earnings (loss) of unconsolidated joint venture on the consolidated statements of operations. On a quarterly basis, the Company evaluates its investment in an unconsolidated joint venture for other-than-temporary impairments. The Company recorded an other-than-temporary impairment (“OTTI”) on its investment in unconsolidated joint venture during the three and six months ended June 30, 2020. No OTTI was recorded in the three and six months ended June 30, 2019. See Note 4 (Investment in Unconsolidated Joint Venture) for details. The Company has elected the cumulative earnings approach to classify cash receipts from the unconsolidated joint venture on the accompanying consolidated statements of cash flows. |
Fair Value Measurements | Fair Value Measurements Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other assets and liabilities at fair value on a non-recurring basis (e.g., carrying value of impaired real estate loans receivable and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and will classify such items in Level 1 or Level 2. In instances where the market is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and will establish a fair value by assigning weights to the various valuation sources. The following describes the valuation methodologies used by the Company to measure fair value, including an indication of the level in the fair value hierarchy in which each asset or liability is generally classified. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accompanying consolidated balance sheets include the following financial instruments: cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities, distributions payable, due to affiliates and notes payable. The Company considers the carrying value of cash and cash equivalents, restricted cash, rents and other receivables, accounts payable and accrued liabilities and distributions payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. The fair value of amounts due |
Restricted Cash | Restricted CashRestricted cash represents those cash accounts for which the use of funds is restricted by loan covenants as well as cash that is deposited with a qualified intermediary for reinvestment under Section 1031 of the Internal Revenue Code. |
Distribution Policy | Distributions to stockholders are determined by the board of directors of the Company and are dependent upon a number of factors relating to the Company, including funds available for the payment of distributions, financial condition, the timing of property acquisitions, capital expenditure requirements and annual distribution requirements in order for the Company to qualify as a REIT under the Internal Revenue Code. |
Per Share Data | Per Share Data Basic loss per share attributable to common stockholders for all periods presented are computed by dividing net loss by the weighted average number of shares of the Company’s common stock outstanding for each class of shares outstanding during the period. Diluted loss per share is computed based on the weighted average number of shares of the Company’s common stock and all potentially dilutive securities, if any. Distributions declared per common share assume each share was issued and outstanding each day during the period or based upon the two-class method, whichever is more dilutive. Nonvested shares of the Company’s restricted common stock give rise to potentially dilutive shares of the Company’s common stock but such shares were excluded from the computation of diluted earnings per share because such shares were anti-dilutive during the period. In accordance with FASB ASC Topic 260-10-45, Earnings Per Share , the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. The undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. |
Segment Disclosure | Segment Disclosure The Company has determined that it has one reportable segment with activities related to investing in multifamily properties. The Company’s investments in real estate are in different geographic regions, and management evaluates operating performance on an individual asset level. However, as each of the Company’s assets has similar economic characteristics, residents and products and services, its assets have been aggregated into one reportable segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , and subsequent amendments to the guidance including, ASU 2018-19 in November 2018, ASU 2019-04 in April 2019, ASU 2019-05 in May 2019, ASUs 2019-10 and 2019-11 in November 2019, and ASU 2020-02 in February 2020 (as amended “ASU 2016-13”). ASU 2016-13 requires more timely recording of credit losses on loans and other financial instruments that are not accounted for at fair value through net income (loss), including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other such commitments. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 require the Company to measure all expected credit losses based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets and eliminates the “incurred loss” methodology in current GAAP. This guidance does not apply to operating lease receivables arising from operating leases, which are within the scope of ASC 842. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). The FASB issued ASU 2018-13 to improve the effectiveness of fair value measurement disclosures by adding, eliminating, and modifying certain disclosure requirements. The issuance of ASU 2018-13 is part of a disclosure framework project. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. Achieving the objective of improving the effectiveness of the notes to financial statements includes: (1) the development of a framework that promotes consistent decisions by the FASB board about disclosure requirements and (2) the appropriate exercise of discretion by reporting entities. The amendments in ASU 2018-13 modify the disclosure requirements on fair value measurements in Topic 820 , Fair Value Measurement, based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting-Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. ASU 2018-13 removed certain disclosure requirements under Topic 820 such as the disclosure requirements of the valuation process for level 3 fair value measurements and modified and added certain of the disclosure requirements in Topic 820 . ASU 2018-13 requires prospective and retrospective application depending on the amendment and is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted. The Company adopted ASU 2016-13 on January 1, 2020. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321) , Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815, (“ASU 2020-01”), which clarifies the interaction between the accounting for equity securities under Topic 321 , the accounting for equity method investments in Topic 323 , and the accounting for certain forward contracts and purchased options in Topic 815 . ASU 2020-01 is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The amendments in ASU 2020-01 should be applied prospectively. The Company is currently assessing the impact of ASU 2020-01 on its consolidated financial statements and does not expect a material impact on its consolidated financial statements and related disclosures from the adoption of ASU 2020-01. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 provided practical expedients to address existing guidance on contract modifications and hedge accounting due to the expected market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates (together “IBORs”) to alternative reference rates, such as the Secured Overnight Financing Rate (“SOFR”). In July 2017, the Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Company refers to this transition as reference rate reform. The first practical expedient allows companies to elect to not apply certain modification accounting requirements to debt, derivative and lease contracts affected by reference rate reform if certain criteria are met. These criteria include the following: (i) the contract referenced an IBOR rate that is expected to be discontinued; (ii) the modified terms directly replace or have the potential to replace the IBOR rate that is expected to be discontinued; and (iii) any contemporaneous changes to other terms that change or have the potential to change the amount and timing of contractual cash flows must be related to the replacement of the IBOR rate. If the contract meets all three criteria, there is no requirement for remeasurement of the contract at the modification date or reassessment of the previous accounting determination. The second practical expedient allows companies to change the reference rate and other critical terms related to the reference rate reform in derivative hedge documentation without having to de-designate the hedging relationship. This allows for companies to continue applying hedge accounting to existing cash flow and net investment hedges. ASU 2020-04 was effective upon issuance on a prospective basis beginning January 1, 2020 and may be elected over time as reference rate reform activities occur. The Company is currently evaluating the impact ASU 2020-04 has on its debt, derivative and lease contracts that are eligible for modification relief and may apply those elections as needed. The Company does not expect a material impact on its consolidated financial statements and related disclosures from the adoption of ASU 2020-04. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the six months ended June 30, 2020 and 2019: June 30, 2020 2019 Cash and cash equivalents $ 330,674,998 $ 43,745,735 Restricted cash 36,667,410 10,913,822 Total cash, cash and cash equivalents and restricted cash $ 367,342,408 $ 54,659,557 |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table represents the components of the cash, cash equivalents and restricted cash presented on the accompanying consolidated statements of cash flows for the six months ended June 30, 2020 and 2019: June 30, 2020 2019 Cash and cash equivalents $ 330,674,998 $ 43,745,735 Restricted cash 36,667,410 10,913,822 Total cash, cash and cash equivalents and restricted cash $ 367,342,408 $ 54,659,557 |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following is a summary of real estate properties acquired during the six months ended June 30, 2020: Purchase Price Allocation Property Name Location Purchase Date Properties Homes Land Buildings and Improvements Tenant Origination and Absorption Costs Below Market Leases Discount (Premium) on Assumed Liabilities Total Purchase Price Eleven10 Farmers Market Dallas, TX 1/28/2020 1 313 $ 10,574,569 $ 50,026,284 $ 1,463,076 $ — $ — $ 62,063,929 Patina Flats at the Foundry Loveland, CO 2/11/2020 1 155 2,463,617 41,537,960 1,184,050 (61,845) — 45,123,782 SIR Merger (1) Various 3/6/2020 27 7,527 114,377,468 959,337,747 27,027,759 — 1,391,489 1,102,134,463 STAR III Merger (1) Various 3/6/2020 9 2,639 58,056,275 411,461,858 10,041,373 — (5,802,045) 473,757,461 Arista at Broomfield Broomfield, CO 3/13/2020 1 — 7,283,803 750,168 — — — 8,033,971 VV&M Dallas, TX 4/21/2020 1 310 8,207,057 51,299,734 1,407,518 — (945,235) 59,969,074 Flatirons Broomfield, CO 6/19/2020 1 — 8,574,704 33,930 — — — 8,608,634 41 10,944 $ 209,537,493 $ 1,514,447,681 $ 41,123,776 $ (61,845) $ (5,355,791) $ 1,759,691,314 ____________________ |
Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles | As of June 30, 2020 and December 31, 2019, investments in real estate and accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2020 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 344,242,749 $ 2,885,651,638 $ 41,078,737 $ 3,270,973,124 $ 29,745,781 $ — Less: Accumulated depreciation and amortization — (332,961,428) (25,961,107) (358,922,535) — — Net investments in real estate and related lease intangibles $ 344,242,749 $ 2,552,690,210 $ 15,117,630 $ 2,912,050,589 $ 29,745,781 $ — December 31, 2019 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Real Estate Held for Sale Investments in real estate $ 151,294,208 $ 1,369,256,465 $ — $ 1,520,550,673 $ 5,687,977 $ 27,285,576 Less: Accumulated depreciation and amortization — (277,033,046) — (277,033,046) — (5,619,814) Net investments in real estate and related lease intangibles $ 151,294,208 $ 1,092,223,419 $ — $ 1,243,517,627 $ 5,687,977 $ 21,665,762 ____________________ (1) During the year ended December 31, 2019, the Company capitalized $1,630,046 of costs related to the Mergers, included in building and improvements in the accompanying consolidated balance sheets. |
Schedule of Operating Lease Maturity | The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial tenants as of June 30, 2020, and thereafter is as follows: July 1 through December 31, 2020 $ 97,638 2021 155,986 2022 150,960 2023 155,518 2024 160,161 Thereafter 684,598 $ 1,404,861 |
Schedule of Real Estate Under Development | During the three and six months ended June 30, 2020, the Company owned the following parcels of land held for the development of apartment homes: Development Name Location Purchase Date Land Held for Development Construction in Progress Total Carrying Value Garrison Station Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 10,633,994 $ 13,103,177 Arista at Broomfield Broomfield, CO 3/13/2020 7,283,803 750,168 8,033,971 Flatirons Broomfield, CO 6/19/2020 8,574,703 33,930 8,608,633 $ 18,327,689 $ 11,418,092 $ 29,745,781 |
Disposal Groups, Including Discontinued Operations | The results of operations for the three and six months ended June 30, 2020 and 2019, through the dates of sale for all properties disposed of through June 30, 2020 were included in continuing operations on the Company’s consolidated statements of operations and are as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Rental income $ 1,818 $ 2,490,822 $ 319,800 $ 4,835,309 Other income 3,438 16,832 6,966 31,625 Total revenues 5,256 2,507,654 326,766 4,866,934 Expenses: Operating, maintenance and management 29,084 698,551 197,580 1,334,474 Real estate taxes and insurance — 548,814 82,557 1,097,422 Fees to affiliates (237) 128,384 25,706 242,659 Depreciation and amortization — 920,069 — 1,832,865 General and administrative expenses 4,153 23,484 7,989 42,546 Total expenses 33,000 2,319,302 313,832 4,549,966 (Loss) income before other income (27,744) 188,352 12,934 316,968 Other income: Interest income — 1,460 — 3,490 Gain on sale of real estate, net — — 11,384,599 — Total other income — 1,460 11,384,599 3,490 Net (loss) income $ (27,744) $ 189,812 $ 11,397,533 $ 320,458 |
Preliminary Estimated Purchase Price | The following table summarizes the purchase price of SIR and STAR III as of the date of the Mergers: SIR STAR III Class A common stock issued and outstanding $ — $ 3,458,807 Class R common stock issued and outstanding — 475,207 Class T common stock issued and outstanding — 4,625,943 Common stock issued and outstanding 73,770,330 — Total common stock issued and outstanding 73,770,330 8,559,957 Exchange ratio 0.5934 1.430 STAR common stock issued as consideration (1) 43,775,314 12,240,739 STAR’s most recently disclosed estimated value per share 15.84 15.84 Value of implied STAR common stock issued as consideration $ 693,400,974 $ 193,893,305 ____________________ (1) Represents the number of shares of common stock of SIR and STAR III converted into STAR shares upon consummation of the Mergers. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table shows the purchase price allocation of SIR’s and STAR III’s identifiable assets and liabilities assumed as of the date of the Mergers: SIR STAR III Assets Land $ 114,377,468 $ 58,056,275 Building and improvements 959,337,747 411,461,858 Acquired intangible assets 27,027,759 10,041,373 Other assets, net 122,688,608 21,438,855 Investment in unconsolidated joint venture 22,128,691 — Total assets $ 1,245,560,273 $ 500,998,361 Liabilities Mortgage notes payable $ (506,023,981) $ (289,407,045) Other liabilities (46,135,318) (17,698,011) $ (552,159,299) $ (307,105,056) $ 693,400,974 $ 193,893,305 |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Unaudited financial information for the Joint Venture as of June 30, 2020 and for the three and six months ended June 30, 2020, is summarized below: June 30, 2020 Assets: Real estate assets, net $ 484,761,857 Other assets 12,368,894 Total assets $ 497,130,751 Liabilities and equity: Notes payable, net $ 347,265,380 Other liabilities 16,574,642 Company’s capital 13,329,057 Other partner’s capital 119,961,672 Total liabilities and equity $ 497,130,751 For the Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Revenues $ 15,900,071 $ 20,534,675 Expenses (17,077,940) (21,999,716) Other income 179,573 179,573 Net loss $ (998,296) $ (1,285,468) Company’s proportional net loss $ (99,830) $ (128,547) Amortization of outside basis (425,966) (432,442) Impairment of unconsolidated joint venture (2,442,411) (2,442,411) Equity in losses of unconsolidated joint venture $ (2,968,207) $ (3,003,400) |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of June 30, 2020 and December 31, 2019, other assets consisted of: June 30, 2020 December 31, 2019 Prepaid expenses $ 1,857,014 $ 1,521,084 Interest rate cap agreements (Note 13) 26,048 132 Escrow deposits for pending real estate acquisitions 500,000 2,600,300 Other deposits 1,656,883 1,342,615 Operating lease right-of-use assets, net 169,736 49,184 Other assets $ 4,209,681 $ 5,513,315 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Mortgage Notes Payable Secured by Real Property | The following is a summary of mortgage notes payable, net, secured by individual properties as of June 30, 2020 and December 31, 2019. June 30, 2020 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 1/1/2025 - 9/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.31% 2.31% $ 139,740,000 Fixed rate 43 10/1/2022 - 10/1/2056 3.19 % 4.66 % 3.85% 1,295,537,000 Mortgage notes payable, gross 47 3.70% 1,435,277,000 Premiums and discounts, net (2) 4,827,351 Deferred financing costs, net (3) (7,482,673) Mortgage notes payable, net $ 1,432,621,678 December 31, 2019 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 2 1/1/2025 - 9/1/2025 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.28% 3.82% $ 75,670,000 Fixed rate 14 7/1/2025 - 5/1/2054 3.36 % 4.60 % 3.96% 488,805,387 Mortgage notes payable, gross 16 3.94% 564,475,387 Deferred financing costs, net (3) (4,376,572) Mortgage notes payable, net $ 560,098,815 ___________ (1) See Note 13 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The following table summarizes debt premiums and discounts as of June 30, 2020, including the unamortized portion included in the principal balance as well as amounts amortized included in interest expense in the accompanying consolidated statements of operations: Unamortized Portion of Net Debt Premium (Discount) as of June 30, 2020 Amortization of Debt (Premium) Discount During the Six Months Ended June 30, 2020 Amortized Net Debt Premium (Discount) as of June 30, 2020 $ 15,844,866 $ (718,264) $ 15,126,602 (10,489,075) 189,824 (10,299,251) $ 5,355,791 $ (528,440) $ 4,827,351 (3) Accumulated amortization related to deferred financing costs as of June 30, 2020 and December 31, 2019 was $2,790,517 and $2,215,461, respectively. The following is a summary of the terms of the assumed loans on the date of the Mergers: Interest Rate Range Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding At Merger Date Variable rate 2 1/1/2027 - 9/1/2027 1-Mo LIBOR + 2.195% 1-Mo LIBOR + 2.31% $ 64,070,000 Fixed rate 27 10/1/2022 - 10/1/2056 3.19% 4.66% 726,950,471 Assumed Principal Mortgage Notes Payable 29 $ 791,020,471 |
Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility | As of June 30, 2020 and December 31, 2019, the advances obtained and certain financing costs incurred under the MCFA, PNC MCFA and the Revolver, which are included in credit facilities, net, in the accompanying consolidated balance sheets, are summarized in the following table. Amount of Advance as of June 30, 2020 December 31, 2019 Principal balance on MCFA, gross $ 592,137,000 $ 551,669,000 Principal balance on PNC MCFA, gross 158,340,000 — Principal balance on Revolver, gross — — Deferred financing costs, net on MCFA (1) (3,675,065) (3,208,770) Deferred financing costs, net on PNC MCFA (2) (1,782,261) — Deferred financing costs, net on Revolver (3) (588,879) — Credit facilities, net $ 744,430,795 $ 548,460,230 ___________ (1) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2020 and December 31, 2019, was $1,060,049 and $832,187, respectively. (2) Accumulated amortization related to deferred financing costs in respect of the PNC MCFA as of June 30, 2020 and December 31, 2019, was $6,958 and $0, respectively. |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of June 30, 2020: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2020 2021 2022 2023 2024 Thereafter Principal payments on outstanding debt (1) $ 2,185,754,000 $ 2,950,437 $ 8,719,743 $ 34,976,371 $ 61,197,898 $ 58,716,430 $ 2,019,193,121 ______________ (1) Scheduled principal payments on outstanding debt obligations are based on the terms of the notes payable agreements. Amounts exclude deferred financing costs, net and debt premiums (discounts), net associated with the notes payable. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services | The issuance and vesting activity for the six months ended June 30, 2020 and year ended December 31, 2019, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended June 30, 2020 Year Ended December 31, 2019 Nonvested shares at the beginning of the period 7,497 7,497 Granted shares 6,666 4,998 Vested shares (1,666) (4,998) Nonvested shares at the end of the period 12,497 7,497 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2020 and year ended December 31, 2019 was as follows: Grant Year Weighted Average Fair Value 2019 $15.84 2020 15.84 |
Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published | Prior to the March 3, 2020 amendments, the share repurchase price was further reduced based on how long the stockholder had held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the estimated value per share determined by the Company’s board of directors. (3) The required one-year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Schedule of Share Repurchase Plan Prior to Estimated Value Per Share of Common Stock is Published | Prior to the March 3, 2020 amendments, the share repurchase price was further reduced based on how long the stockholder had held the shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date (1) Less than 1 year No Repurchase Allowed 1 year 92.5% of the Share Repurchase Price (2) 2 years 95.0% of the Share Repurchase Price (2) 3 years 97.5% of the Share Repurchase Price (2) 4 years 100.0% of the Share Repurchase Price (2) In the event of a stockholder’s death or disability (3) Average Issue Price for Shares (4) ________________ (1) As adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock. Repurchase price includes the full amount paid for each share, including all sales commissions and dealer manager fees. (2) The “Share Repurchase Price” equals 93% of the estimated value per share determined by the Company’s board of directors. (3) The required one-year holding period does not apply to repurchases requested within two years after the death or disability of a stockholder. (4) The purchase price per share for shares repurchased upon the death or disability of a stockholder will be equal to the average issue price per share for all of the stockholder’s shares. |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Schedule of activity for noncontrolling interests recorded as equity | The following summarizes the activity for noncontrolling interests recorded as equity for the three and six months ended June 30, 2020: June 30, 2020 Issuance of Class A-2 OP Units $ 14,450,000 Income attributable to noncontrolling interest 163,314 Distributions to noncontrolling interest (163,314) Noncontrolling interest $ 14,450,000 |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Attributable to the Advisor and its Affiliates | Amounts attributable to the Advisor and its affiliates incurred (received) for the three and six months ended June 30, 2020 and 2019, and amounts attributable to the Advisor and its affiliates that are payable (prepaid) as of June 30, 2020 and December 31, 2019 are as follows: Incurred (Received) For the Incurred (Received) For the Payable (Prepaid) as of Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 June 30, 2020 December 31, 2019 Consolidated Statements of Operations: Expensed Investment management fees (1) $ 8,535,093 $ 4,174,176 $ 13,889,530 $ 8,334,328 $ 2,893,842 $ 4,120,353 Acquisition expenses (2) — 92,661 1,111 92,661 — — Loan coordination fees (1) 1,116,700 — 1,605,652 — — 600,000 Disposition fees (3) — — 338,750 — — 591,000 Disposition transaction costs (3) — — 5,144 — — — Property management: Fees (1) 2,369,487 1,245,150 3,865,857 2,479,427 805,482 418,173 Reimbursement of onsite personnel (4) 7,780,381 3,776,431 12,475,428 7,504,136 1,778,005 843,763 Reimbursement of other (1) 1,688,053 846,632 2,775,590 1,517,851 114,079 50,778 Reimbursement of property operations (4) 109,188 26,600 188,199 49,742 — 11,465 Reimbursement of property G&A (2) 51,811 26,845 84,216 61,832 — 7,000 Other operating expenses (2) 954,292 413,043 1,664,464 828,151 230,267 463,301 Insurance proceeds (5) (150,000) — (150,000) — — — Property insurance (6) 1,515,016 359,663 2,439,952 641,978 — (542,324) Rental revenue (7) (23,282) (14,745) (41,029) (29,490) — — Consolidated Balance Sheets: Capitalized Acquisition fees (8) 341,371 48,343 17,717,639 48,343 42,660 — Acquisition expenses (8) 133,695 154,477 389,919 218,712 14,593 — Loan coordination fees (8) 224,000 — 8,812,071 — — — Capitalized development services fee (9) 151,071 — 302,142 — 50,357 50,357 Capitalized investment management fees (9) 98,454 — 179,668 — 34,692 25,811 Capitalized development costs (9) 2,435 — 3,030 — 1,090 — Construction management: Fees (10) 259,509 303,518 382,272 461,417 701 43,757 Reimbursement of labor costs (10) 95,692 110,945 166,239 261,305 7,629 8,525 Deferred financing costs (11) 49,050 — 49,050 — — — Additional paid-in capital Selling commissions — — — — 21,336 71,287 $ 25,302,016 $ 11,563,739 $ 67,144,894 $ 22,470,393 $ 5,994,733 $ 6,763,246 _____________________ (1) Included in fees to affiliates in the accompanying consolidated statements of operations. (2) Included in general and administrative expenses in the accompanying consolidated statements of operations. (3) Included in gain on sale of real estate, net in the accompanying consolidated statements of operations. (4) Included in operating, maintenance and management in the accompanying consolidated statements of operations. (5) Included in other income in the accompanying consolidated statements of operations. (6) Property related insurance expense and the amortization of the prepaid insurance deductible account are included in general and administrative expenses in the accompanying consolidated statements of operations. The amortization of the prepaid property insurance is included in operating, maintenance and management expenses in the accompanying consolidated statements of operations. The prepaid insurance is included in other assets in the accompanying consolidated balance sheets upon payment. (7) Included in rental income in the accompanying consolidated statements of operations. (8) Included in total real estate, net in the accompanying consolidated balance sheets. (9) Included in real estate held for development in the accompanying consolidated balance sheets. (10) Included in building and improvements in the accompanying consolidated balance sheets. (11) Included in notes payable, net in the accompanying consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents a reconciliation of net loss attributable to common stockholders and shares used in calculating basic and diluted loss per share, or EPS, for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss attributable to the common stockholders $ (53,224,622) $ (11,993,010) $ (62,905,750) $ (24,352,282) Less: Distributions declared on Class A-2 OP Units (163,314) — (163,314) — Distributions related to unvested restricted stockholders (1) (2,796) (1,682) (5,667) (3,346) Numerator for loss per common share — basic $ (53,390,732) $ (11,994,692) $ (63,074,731) $ (24,355,628) Weighted average common shares outstanding — basic and diluted (2) 109,139,963 52,123,442 88,660,741 51,999,327 Loss per common share — basic and diluted $ (0.49) $ (0.23) $ (0.71) $ (0.47) _____________________ (1) Unvested restricted stockholders that have a right to participate in dividends declared on common stock are accounted for as participating securities and reflected in the calculation of basic and diluted EPS under the two-class method. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table provides the terms of the Company’s interest rate derivative instruments that were in effect at June 30, 2020 and December 31, 2019: June 30, 2020 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 7/1/2020 - 7/1/2023 One-Month LIBOR 17 $ 681,930,345 0.16% 3.25% $ 26,048 December 31, 2019 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2020 - 8/1/2021 One-Month LIBOR 9 $ 343,017,350 1.76% 3.45% $ 132 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables reflect the Company’s assets required to be measured at fair value on a recurring basis on the consolidated balance sheets: June 30, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Recurring Basis: Assets: Interest rate cap agreements (1) $ — $ 26,048 $ — December 31, 2019 Fair Value Measurements Using Level 1 Level 2 Level 3 Recurring Basis: Assets: Interest rate cap agreements (1) $ — $ 132 $ — The following table reflects the Company’s assets required to be measured at fair value on a nonrecurring basis on the consolidated balance sheets: June 30, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Nonrecurring Basis: Assets: Impaired real estate (2) $ — $ — $ 80,967,000 Impaired investment in unconsolidated joint venture (3) — — 18,984,491 ___________ (1) See Note 13 (Derivative Financial Instruments) for a discussion of the interest rate cap agreements used to manage the exposure to interest rate movement on the Company’s variable rate loans. (2) The Company impaired real estate assets that have been actively marketed for sale at a disposition price that is less than their carrying value. The valuation technique used for the fair value of all impaired real estate assets was the expected net sales proceeds. The Company determined that the valuation falls under Level 3 of the fair value hierarchy. During the three and six months ended June 30, 2020, the Company recorded impairment charges of $5,039,937. No impairment charges were recorded during the three and six months ended June 30, 2019. See Note 3 (Real Estate) for a further discussion on the impaired real estate properties. The carrying value of impaired real estate assets may be subsequently increased or decreased after the measurement date due to capital improvements, depreciation, or sale. (3) For the six months ended June 30, 2020, the Company determined that its investment in the Joint Venture was other-than-temporarily impaired. The fair value of the Joint Venture is based on the cash consideration pursuant to the sale agreement that was entered into by the Company on July 16, 2020. The Company determined that the valuation falls under Level 3 of the fair value hierarchy. During the three and six months ended June 30, 2020, the Company recorded |
Organization and Business - Nar
Organization and Business - Narrative (Details) | Mar. 06, 2020apartmentmultifamily_property$ / sharesshares | Sep. 03, 2013USD ($)$ / sharesshares | Aug. 22, 2013USD ($)shares | Jun. 30, 2020$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2020multifamily_property | Jun. 30, 2020property | Jun. 30, 2020 | Jun. 30, 2020joint_venture | Jun. 30, 2020apartment | Dec. 31, 2019$ / shares | Aug. 05, 2019$ / shares |
Multifamily | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | multifamily_property | 70 | |||||||||||
Multifamily | Joint Venture | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | multifamily_property | 20 | |||||||||||
Residential Real Estate | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | property | 2 | |||||||||||
Homes | apartment | 21,835 | |||||||||||
Number of parcels of land held for development | 2 | 3 | ||||||||||
Unconsolidated Properties | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | multifamily_property | 20 | |||||||||||
Number of unconsolidated joint ventures | joint_venture | 1 | |||||||||||
Number of apartment homes | apartment | 4,584 | |||||||||||
Unconsolidated Properties | Joint Venture | ||||||||||||
Initial capitalization | ||||||||||||
Number of apartment homes | apartment | 4,584 | |||||||||||
Unconsolidated Properties | Steadfast Apartment REIT, Inc. | ||||||||||||
Initial capitalization | ||||||||||||
Noncontrolling interest, ownership percentage | 10.00% | |||||||||||
Common Stock | ||||||||||||
Initial capitalization | ||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Convertible Stock | ||||||||||||
Initial capitalization | ||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Sponsor | Common Stock | ||||||||||||
Initial capitalization | ||||||||||||
Issuance of common stock (in shares) | 13,500 | |||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||||||||
Issuance of common stock | $ | $ 202,500 | |||||||||||
Advisor | Convertible Stock | ||||||||||||
Initial capitalization | ||||||||||||
Issuance of common stock (in shares) | 1,000 | |||||||||||
Issuance of common stock | $ | $ 1,000 | |||||||||||
SIR Merger Agreement | ||||||||||||
Initial capitalization | ||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Entity shares issued per acquiree share | 0.5934 | |||||||||||
SIR Merger Agreement | Sponsor | Common Stock | ||||||||||||
Initial capitalization | ||||||||||||
Issuance of common stock (in shares) | 43,775,314 | |||||||||||
STAR III Merger Agreement | ||||||||||||
Initial capitalization | ||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Entity shares issued per acquiree share | 1.430 | |||||||||||
STAR III Merger Agreement | Sponsor | Common Stock | ||||||||||||
Initial capitalization | ||||||||||||
Issuance of common stock (in shares) | 12,240,739 | |||||||||||
SIR and STAR III Merger Agreement | ||||||||||||
Initial capitalization | ||||||||||||
Gross real estate assets | $ | $ 1,500,000,000 | |||||||||||
SIR and STAR III Merger Agreement | Multifamily | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | multifamily_property | 36 | |||||||||||
SIR and STAR III Merger Agreement | Residential Real Estate | ||||||||||||
Initial capitalization | ||||||||||||
Homes | multifamily_property | 10,166 | |||||||||||
SIR and STAR III Merger Agreement | Unconsolidated Properties | ||||||||||||
Initial capitalization | ||||||||||||
Number of unconsolidated joint ventures | joint_venture | 1 | |||||||||||
Number of apartment homes | apartment | 4,584 | |||||||||||
SIR and STAR III Merger Agreement | Unconsolidated Properties | Joint Venture | ||||||||||||
Initial capitalization | ||||||||||||
Number of multifamily properties | multifamily_property | 20 | |||||||||||
SIR and STAR III Merger Agreement | Unconsolidated Properties | Steadfast Apartment REIT, Inc. | ||||||||||||
Initial capitalization | ||||||||||||
Noncontrolling interest, ownership percentage | 10.00% | |||||||||||
Steadfast Apartment REIT, Inc. | SIR Merger Agreement | ||||||||||||
Initial capitalization | ||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Entity shares issued per acquiree share | 1.430 | |||||||||||
Steadfast Apartment REIT, Inc. | STAR III Merger Agreement | ||||||||||||
Initial capitalization | ||||||||||||
Entity shares issued per acquiree share | 0.5934 |
Organization and Business - N_2
Organization and Business - Narrative - Public Offering (Details) - Common Stock - USD ($) | May 04, 2020 | Mar. 24, 2016 | Dec. 30, 2013 | Jun. 30, 2020 | Mar. 24, 2016 | Mar. 24, 2016 | Apr. 17, 2020 | Mar. 14, 2018 |
IPO | ||||||||
Public Offering Information | ||||||||
Issuance of common stock (in shares) | 48,625,651 | 110,963,247 | 48,625,651 | |||||
Proceeds from issuance of common stock | $ 724,849,631 | $ 1,707,340,246 | $ 640,012,497 | |||||
Primary Offering | ||||||||
Public Offering Information | ||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 66,666,667 | |||||||
Registration statement, price per share (in dollars per share) | $ 15 | |||||||
Distribution Reinvestment Plan | ||||||||
Public Offering Information | ||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 10,000,000 | 7,017,544 | ||||||
Registration statement, price per share (in dollars per share) | $ 15.23 | $ 14.25 | $ 15.23 | $ 14.25 | ||||
Issuance of common stock (in shares) | 7,333,167 | 1,011,561 | ||||||
Proceeds from issuance of common stock | $ 109,611,088 | $ 14,414,752 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative of Rents and Other receivables (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Accounting Policies [Abstract] | |
Reserve of lease receivables considered not probably for collection | $ 1,264 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 1,432,621,678 | $ 560,098,815 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 2,321,197,186 | 1,153,445,768 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 2,177,052,473 | $ 1,108,559,045 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative - Restricted Cash (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 36,667,410 | $ 73,614,452 | $ 10,913,822 | |
Cash and cash equivalents | 330,674,998 | 74,806,649 | 43,745,735 | |
Total cash, cash and cash equivalents and restricted cash | $ 367,342,408 | 148,539,671 | $ 54,659,557 | $ 72,738,775 |
Allocated Loan Amounts Held by Lender of Master Credit Facility | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 36,740,983 | |||
Cash Proceeds from Sale of Property, Held by Intermediaries | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 24,720,969 | |||
Amounts Set Aside as Impounds for Future Property Tax Payments, Property Insurance Payments and Tenant Improvement Payments as Required by Agreements with Lenders | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 12,152,500 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Narrative - Distribution Policy (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||
REIT taxable income planned distribution rate | 90.00% | |||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | $ 0.002459 | $ 0.002466 | |
Distributions declared per common share (in dollars per share) | $ 0.224 | $ 0.224 | $ 0.448 | $ 0.446 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) | Mar. 06, 2020$ / sharesshares | Dec. 27, 2019USD ($) | Aug. 28, 2014USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($)tenant | Dec. 31, 2019USD ($)tenant | Jun. 30, 2020USD ($) | Jun. 30, 2020multifamily_property | Jun. 30, 2020property | Jun. 30, 2020 | Jun. 30, 2020apartment | Aug. 05, 2019$ / shares |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Purchase price | $ 3,195,061,239 | |||||||||||||
Average percentage of real estate portfolio occupied | 94.60% | 94.60% | ||||||||||||
Average monthly collected rent | $ 1,180 | $ 1,200 | ||||||||||||
Depreciation and amortization | $ 53,455,666 | $ 18,515,635 | 82,031,561 | $ 36,797,927 | ||||||||||
Amortization of intangible assets | 20,140,511 | 0 | 25,964,584 | 0 | ||||||||||
Amortization of right of use leased asset | 2,209 | 0 | 3,477 | 0 | ||||||||||
Amortization of other intangible assets | 1,671 | $ 2,594 | ||||||||||||
Weighted-average amortization period of other intangible assets as of the date of acquisition | 10 years | |||||||||||||
Security deposit liability | 96.80% | |||||||||||||
Impairment of real estate | 5,039,937 | 0 | $ 5,039,937 | 0 | ||||||||||
Residential Real Estate | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Properties | property | 2 | |||||||||||||
Number of parcels of land held for development | 2 | 3 | ||||||||||||
Homes | apartment | 21,835 | |||||||||||||
Multifamily | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Properties | multifamily_property | 70 | |||||||||||||
Building and Building Improvements | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Depreciation | 33,315,155 | 18,515,635 | 56,066,977 | 36,797,927 | ||||||||||
Tenant Origination and Absorption Costs | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Amortization of intangible assets | $ 20,138,302 | $ 0 | 25,961,107 | 0 | ||||||||||
Accounts Payable and Accrued Liabilities | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Average monthly collected rent | $ 8,488,290 | $ 4,351,837 | ||||||||||||
Real estate portfolio earned in excess of rental income from residential tenants | 99.00% | |||||||||||||
Real estate portfolio earned in excess of rental income from commercial tenants | 1.00% | |||||||||||||
SIR Merger Agreement | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
SIR and STAR III common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Business combination, shares issued per acquiree share (in shares) | shares | 0.5934 | |||||||||||||
STAR III Merger Agreement | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
SIR and STAR III common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Business combination, shares issued per acquiree share (in shares) | shares | 1.430 | |||||||||||||
1031 Exchange | Residential Real Estate | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Properties | multifamily_property | 36 | |||||||||||||
Austin, Texas | Club at Summer Valley | Residential Real Estate | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Homes | 304 | |||||||||||||
Purchase price | $ 23,500,000 | |||||||||||||
Randall Highlands Apartments | North Aurora, Illinois | Residential Real Estate | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Proceeds from sale | $ 33,875,000 | |||||||||||||
Gain on disposition of business | $ 11,384,599 | |||||||||||||
Steadfast Apartment REIT, Inc. | SIR Merger Agreement | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
SIR and STAR III common stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||
Business combination, shares issued per acquiree share (in shares) | shares | 1.430 | |||||||||||||
Steadfast Apartment REIT, Inc. | STAR III Merger Agreement | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Business combination, shares issued per acquiree share (in shares) | shares | 0.5934 | |||||||||||||
Land Held for Development | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Land held for the development of apartment homes | $ 29,745,781 | |||||||||||||
Tenant | Customer Concentration Risk | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Number of tenants | tenant | 0 | 0 | ||||||||||||
Residential Tenants | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Lease terms | 12 months | 12 months | ||||||||||||
Minimum | Commercial Tenants | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Remaining lease durations | 6 months | 6 months | ||||||||||||
Maximum | Commercial Tenants | ||||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||||
Remaining lease durations | 9 years 5 months 15 days | 9 years 5 months 15 days |
Real Estate - Schedule of Busin
Real Estate - Schedule of Business Acquisitions (Details) | Jun. 19, 2020USD ($)multifamily_property | Apr. 21, 2020USD ($)multifamily_property | Mar. 13, 2020USD ($)multifamily_property | Mar. 06, 2020USD ($)multifamily_property | Feb. 11, 2020USD ($)multifamily_property | Jan. 28, 2020USD ($)multifamily_property | Jun. 30, 2020USD ($)multifamily_property | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||
Capitalized acquisition costs | $ 28,145,708 | |||||||
Building and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Capitalized acquisition costs | $ 1,630,046 | |||||||
Unconsolidated Properties | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 20 | |||||||
Capitalized acquisition costs | 628,691 | |||||||
Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 41 | |||||||
Homes | multifamily_property | 10,944 | |||||||
Tenant Origination and Absorption Costs | $ 41,123,776 | |||||||
Below Market Leases | (61,845) | |||||||
Discount (Premium) on Assumed Liabilities | (5,355,791) | |||||||
Total Purchase Price | 1,759,691,314 | |||||||
Capitalized acquisition costs | $ 26,515,662 | |||||||
Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 209,537,493 | |||||||
Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 1,514,447,681 | |||||||
Eleven10 at Farmers Market | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 1 | |||||||
Homes | multifamily_property | 313 | |||||||
Tenant Origination and Absorption Costs | $ 1,463,076 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | 0 | |||||||
Total Purchase Price | 62,063,929 | |||||||
Eleven10 at Farmers Market | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 10,574,569 | |||||||
Eleven10 at Farmers Market | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 50,026,284 | |||||||
Patina Flats at the Foundry | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 1 | |||||||
Homes | multifamily_property | 155 | |||||||
Tenant Origination and Absorption Costs | $ 1,184,050 | |||||||
Below Market Leases | (61,845) | |||||||
Discount (Premium) on Assumed Liabilities | 0 | |||||||
Total Purchase Price | 45,123,782 | |||||||
Patina Flats at the Foundry | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 2,463,617 | |||||||
Patina Flats at the Foundry | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 41,537,960 | |||||||
SIR Merger Agreement | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 27 | |||||||
Homes | multifamily_property | 7,527 | |||||||
Tenant Origination and Absorption Costs | $ 27,027,759 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | 1,391,489 | |||||||
Total Purchase Price | 1,102,134,463 | |||||||
SIR Merger Agreement | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 114,377,468 | |||||||
SIR Merger Agreement | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 959,337,747 | |||||||
STAR III Merger Agreement | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 9 | |||||||
Homes | multifamily_property | 2,639 | |||||||
Tenant Origination and Absorption Costs | $ 10,041,373 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | (5,802,045) | |||||||
Total Purchase Price | 473,757,461 | |||||||
STAR III Merger Agreement | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 58,056,275 | |||||||
STAR III Merger Agreement | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 411,461,858 | |||||||
Arista at Broomfield | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 1 | |||||||
Homes | multifamily_property | 0 | |||||||
Tenant Origination and Absorption Costs | $ 0 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | 0 | |||||||
Total Purchase Price | 8,033,971 | |||||||
Arista at Broomfield | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 7,283,803 | |||||||
Arista at Broomfield | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 750,168 | |||||||
VV&M | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 1 | |||||||
Homes | multifamily_property | 310 | |||||||
Tenant Origination and Absorption Costs | $ 1,407,518 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | (945,235) | |||||||
Total Purchase Price | 59,969,074 | |||||||
VV&M | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 8,207,057 | |||||||
VV&M | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 51,299,734 | |||||||
Flatirons | Residential Real Estate | ||||||||
Business Acquisition [Line Items] | ||||||||
Properties | multifamily_property | 1 | |||||||
Homes | multifamily_property | 0 | |||||||
Tenant Origination and Absorption Costs | $ 0 | |||||||
Below Market Leases | 0 | |||||||
Discount (Premium) on Assumed Liabilities | 0 | |||||||
Total Purchase Price | 8,608,634 | |||||||
Flatirons | Residential Real Estate | Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | 8,574,704 | |||||||
Flatirons | Residential Real Estate | Buildings and Improvements | ||||||||
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 33,930 |
Real Estate - Schedule of Accum
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles (Details) - USD ($) | Mar. 06, 2020 | Dec. 31, 2019 | Jun. 30, 2020 |
Real Estate [Line Items] | |||
Investments in real estate | $ 1,520,550,673 | $ 3,270,973,124 | |
Less: Accumulated depreciation and amortization | (277,033,046) | (358,922,535) | |
Net investments in real estate and related lease intangibles | 1,243,517,627 | 2,912,050,589 | |
Acquisition costs capitalized | $ 28,145,708 | ||
Building and Improvements | |||
Real Estate [Line Items] | |||
Acquisition costs capitalized | 1,630,046 | ||
Land | |||
Real Estate [Line Items] | |||
Investments in real estate | 151,294,208 | 344,242,749 | |
Less: Accumulated depreciation and amortization | 0 | 0 | |
Net investments in real estate and related lease intangibles | 151,294,208 | 344,242,749 | |
Building and Improvements | |||
Real Estate [Line Items] | |||
Investments in real estate | 1,369,256,465 | 2,885,651,638 | |
Less: Accumulated depreciation and amortization | (277,033,046) | (332,961,428) | |
Net investments in real estate and related lease intangibles | 1,092,223,419 | 2,552,690,210 | |
Tenant Origination and Absorption Costs | |||
Real Estate [Line Items] | |||
Investments in real estate | 0 | 41,078,737 | |
Less: Accumulated depreciation and amortization | 0 | (25,961,107) | |
Net investments in real estate and related lease intangibles | 0 | 15,117,630 | |
Real Estate Under Development | |||
Real Estate [Line Items] | |||
Investments in real estate | 5,687,977 | 29,745,781 | |
Less: Accumulated depreciation and amortization | 0 | 0 | |
Net investments in real estate and related lease intangibles | 5,687,977 | 29,745,781 | |
Real Estate Held for Sale | |||
Real Estate [Line Items] | |||
Investments in real estate | 27,285,576 | 0 | |
Less: Accumulated depreciation and amortization | (5,619,814) | 0 | |
Net investments in real estate and related lease intangibles | $ 21,665,762 | $ 0 |
Real Estate - Schedule of Opera
Real Estate - Schedule of Operating Leases Maturity (Details) | Jun. 30, 2020USD ($) |
Real Estate [Abstract] | |
July 1 through December 31, 2020 | $ 97,638 |
2021 | 155,986 |
2022 | 150,960 |
2023 | 155,518 |
2024 | 160,161 |
Thereafter | 684,598 |
Operating lease, liability | $ 1,404,861 |
Real Estate - Schedule of Real
Real Estate - Schedule of Real Estate Under Development (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Real Estate [Line Items] | ||
Land Held for Development | $ 3,270,973,124 | $ 1,520,550,673 |
Real Estate Under Development | ||
Real Estate [Line Items] | ||
Land Held for Development | 18,327,689 | |
Construction in Progress | 11,418,092 | |
Real Estate Under Development | TENNESSEE | Garrison Station | ||
Real Estate [Line Items] | ||
Land Held for Development | 2,469,183 | |
Construction in Progress | 10,633,994 | |
Total Carrying Value | 13,103,177 | |
Real Estate Under Development | COLORADO | Arista at Broomfield | ||
Real Estate [Line Items] | ||
Land Held for Development | 7,283,803 | |
Construction in Progress | 750,168 | |
Total Carrying Value | 8,033,971 | |
Real Estate Under Development | COLORADO | Flatirons | ||
Real Estate [Line Items] | ||
Land Held for Development | 8,574,703 | |
Construction in Progress | 33,930 | |
Total Carrying Value | 8,608,633 | |
Land Held for Development | ||
Real Estate [Line Items] | ||
Total Carrying Value | $ 29,745,781 |
Real Estate - Schedule of Ope_2
Real Estate - Schedule of Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Rental income | $ 1,818 | $ 2,490,822 | $ 319,800 | $ 4,835,309 |
Other income | 3,438 | 16,832 | 6,966 | 31,625 |
Total revenues | 5,256 | 2,507,654 | 326,766 | 4,866,934 |
Expenses: | ||||
Operating, maintenance and management | 29,084 | 698,551 | 197,580 | 1,334,474 |
Real estate taxes and insurance | 0 | 548,814 | 82,557 | 1,097,422 |
Fees to affiliates | (237) | 128,384 | 25,706 | 242,659 |
Depreciation and amortization | 0 | 920,069 | 0 | 1,832,865 |
General and administrative expenses | 4,153 | 23,484 | 7,989 | 42,546 |
Total expenses | 33,000 | 2,319,302 | 313,832 | 4,549,966 |
(Loss) income before other income | (27,744) | 188,352 | 12,934 | 316,968 |
Other income: | ||||
Interest income | 0 | 1,460 | 0 | 3,490 |
Gain on sale of real estate, net | 0 | 0 | 11,384,599 | 0 |
Total other income | 0 | 1,460 | 11,384,599 | 3,490 |
Net (loss) income | $ (27,744) | $ 189,812 | $ 11,397,533 | $ 320,458 |
Real Estate - Preliminary Estim
Real Estate - Preliminary Estimated Purchase Price (Details) | Mar. 06, 2020USD ($)$ / sharesshares |
SIR Merger Agreement | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 73,770,330 |
Exchange ratio (in shares) | 0.5934 |
SIR Merger Agreement | Steadfast Apartment REIT, Inc. | |
Business Acquisition [Line Items] | |
Exchange ratio (in shares) | 1.430 |
STAR common stock issued as consideration (in shares) | 43,775,314 |
STAR's most recently disclosed estimated value per share (in dollars per share) | $ / shares | $ 15.84 |
Value of implied STAR common stock issued as consideration | $ | $ 693,400,974 |
STAR III Merger Agreement | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 8,559,957 |
Exchange ratio (in shares) | 1.430 |
STAR III Merger Agreement | Steadfast Apartment REIT, Inc. | |
Business Acquisition [Line Items] | |
Exchange ratio (in shares) | 0.5934 |
STAR common stock issued as consideration (in shares) | 12,240,739 |
STAR's most recently disclosed estimated value per share (in dollars per share) | $ / shares | $ 15.84 |
Value of implied STAR common stock issued as consideration | $ | $ 193,893,305 |
STAR III Merger Agreement | Class A | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 3,458,807 |
STAR III Merger Agreement | Class R | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 475,207 |
STAR III Merger Agreement | Class T | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 4,625,943 |
Real Estate - Identifiable Asse
Real Estate - Identifiable Assets and Liabilities Assumed (Details) | Mar. 06, 2020USD ($) |
SIR Merger Agreement | |
Assets | |
Land | $ 114,377,468 |
Building and improvements | 959,337,747 |
Acquired intangible assets | 27,027,759 |
Other assets, net | 122,688,608 |
Investment in unconsolidated joint venture | 22,128,691 |
Total assets | 1,245,560,273 |
Liabilities | |
Mortgage notes payable | (506,023,981) |
Other liabilities | (46,135,318) |
Total liabilities | (552,159,299) |
Fair value of net assets acquired | 693,400,974 |
STAR III Merger Agreement | |
Assets | |
Land | 58,056,275 |
Building and improvements | 411,461,858 |
Acquired intangible assets | 10,041,373 |
Other assets, net | 21,438,855 |
Investment in unconsolidated joint venture | 0 |
Total assets | 500,998,361 |
Liabilities | |
Mortgage notes payable | (289,407,045) |
Other liabilities | (17,698,011) |
Total liabilities | (307,105,056) |
Fair value of net assets acquired | $ 193,893,305 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)multifamily_propertyapartment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)multifamily_propertyapartment | Jun. 30, 2019USD ($) | Mar. 06, 2020apartmentmultifamily_property | Dec. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated joint venture | $ 18,984,491 | $ 18,984,491 | $ 0 | |||
Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated joint venture | 18,984,491 | 18,984,491 | ||||
Amortized outside basis difference | 8,121,160 | 8,121,160 | ||||
Other than temporary impairment loss | 2,442,411 | $ 0 | 2,442,411 | $ 0 | ||
Amortization of outside basis | 425,966 | 432,442 | ||||
Proceeds from equity method investment distributions | 242,700 | 360,700 | ||||
Joint Venture | BREIT Steadfast MF JV LP | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Amortization of outside basis | $ (425,966) | $ (432,442) | ||||
Unconsolidated Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Properties | multifamily_property | 20 | 20 | ||||
Number of apartment homes | apartment | 4,584 | 4,584 | ||||
Unconsolidated Properties | Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of apartment homes | apartment | 4,584 | |||||
Multifamily | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Properties | multifamily_property | 70 | 70 | ||||
Multifamily | Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Properties | multifamily_property | 20 |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture - Schedule of Financial Statement Amounts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Assets: | $ 3,338,276,346 | $ 3,338,276,346 | $ 1,426,957,126 | ||
Liabilities and equity: | 3,338,276,346 | 3,338,276,346 | $ 1,426,957,126 | ||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Revenues | 80,295,594 | $ 43,214,828 | 134,009,534 | $ 85,800,055 | |
Net loss | (53,224,622) | $ (11,993,010) | (62,905,750) | (24,352,282) | |
Equity in losses of unconsolidated joint venture | (3,003,400) | $ 0 | |||
Joint Venture | |||||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Amortization of outside basis | 425,966 | 432,442 | |||
Joint Venture | BREIT Steadfast MF JV LP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets: | 497,130,751 | 497,130,751 | |||
Liabilities and equity: | 497,130,751 | 497,130,751 | |||
Equity Method Investment, Summarized Financial Information [Abstract] | |||||
Revenues | 15,900,071 | 20,534,675 | |||
Expenses | (17,077,940) | (21,999,716) | |||
Other income | 179,573 | 179,573 | |||
Net loss | (998,296) | (1,285,468) | |||
Company’s proportional net loss | (99,830) | (128,547) | |||
Amortization of outside basis | (425,966) | (432,442) | |||
Impairment of unconsolidated joint venture | (2,442,411) | (2,442,411) | |||
Equity in losses of unconsolidated joint venture | (2,968,207) | (3,003,400) | |||
Real estate assets, net | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets: | 484,761,857 | 484,761,857 | |||
Other assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Assets: | 12,368,894 | 12,368,894 | |||
Notes payable, net | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities and equity: | 347,265,380 | 347,265,380 | |||
Other liabilities | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities and equity: | 16,574,642 | 16,574,642 | |||
Company’s capital | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities and equity: | 13,329,057 | 13,329,057 | |||
Other partner’s capital | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Liabilities and equity: | $ 119,961,672 | $ 119,961,672 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Prepaid expenses | $ 1,857,014 | $ 1,857,014 | $ 1,521,084 | ||
Interest rate cap agreements | 26,048 | 26,048 | 132 | ||
Escrow deposits for pending real estate acquisitions | 500,000 | 500,000 | 2,600,300 | ||
Other deposits | 1,656,883 | 1,656,883 | 1,342,615 | ||
Operating lease right-of-use assets, net | 169,736 | 169,736 | 49,184 | ||
Other assets | 4,209,681 | 4,209,681 | $ 5,513,315 | ||
Amortization of right of use leased asset | $ 2,209 | $ 0 | $ 3,477 | $ 0 |
Debt - Summary of Mortgage Note
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Details) | Mar. 06, 2020USD ($)instrument | Jun. 30, 2020USD ($)instrument | Jun. 30, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Debt Instrument [Line Items] | ||||
Total notes payable, net | $ 2,177,052,473 | $ 2,177,052,473 | $ 1,108,559,045 | |
Notes Payable to Banks | ||||
Debt Instrument [Line Items] | ||||
Number of Instruments | instrument | 29 | 47 | 47 | 16 |
Weighted Average Interest Rate | 3.70% | 3.70% | 3.94% | |
Principal Outstanding | $ 791,020,471 | $ 1,435,277,000 | $ 1,435,277,000 | $ 564,475,387 |
Premiums and discounts, net | 4,827,351 | 4,827,351 | ||
Deferred financing costs, net | (7,482,673) | (7,482,673) | (4,376,572) | |
Total notes payable, net | 1,432,621,678 | 1,432,621,678 | 560,098,815 | |
Unamortized premium, gross | 15,844,866 | 15,844,866 | ||
Amortization of premium | (718,264) | |||
Debt instrument, premium | 15,126,602 | 15,126,602 | ||
Unamortized discount, gross | 10,489,075 | 10,489,075 | ||
Amortization of debt discount | 189,824 | |||
Debt instrument, discount | (10,299,251) | (10,299,251) | ||
Unamortized discount (premium), gross total | 5,355,791 | 5,355,791 | ||
Amortization of debt discount (premium) | (413,858) | (528,440) | ||
Debt Instrument, Unamortized Discount (Premium), Net | 4,827,351 | 4,827,351 | ||
Accumulated amortization of deferred financing costs | $ 2,790,517 | $ 2,790,517 | $ 2,215,461 | |
Notes Payable to Banks | Variable Rate | ||||
Debt Instrument [Line Items] | ||||
Number of Instruments | instrument | 2 | 4 | 4 | 2 |
Weighted Average Interest Rate | 2.31% | 2.31% | 3.82% | |
Principal Outstanding | $ 64,070,000 | $ 139,740,000 | $ 139,740,000 | $ 75,670,000 |
Notes Payable to Banks | Variable Rate | Minimum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.195% | 1.88% | 1.88% | |
Notes Payable to Banks | Variable Rate | Maximum | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.31% | 2.31% | 2.28% | |
Notes Payable to Banks | Fixed Rate | ||||
Debt Instrument [Line Items] | ||||
Number of Instruments | instrument | 27 | 43 | 43 | 14 |
Weighted Average Interest Rate | 3.85% | 3.85% | 3.96% | |
Principal Outstanding | $ 726,950,471 | $ 1,295,537,000 | $ 1,295,537,000 | $ 488,805,387 |
Notes Payable to Banks | Fixed Rate | Minimum | ||||
Debt Instrument [Line Items] | ||||
Fixed rate | 3.19% | 3.19% | 3.19% | 3.36% |
Notes Payable to Banks | Fixed Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Fixed rate | 4.66% | 4.66% | 4.66% | 4.60% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 17, 2020USD ($)multifamily_property | Oct. 16, 2019USD ($) | Jul. 31, 2018USD ($)Subsidiary | Jun. 30, 2020USD ($)instrument | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)instrument | Jun. 30, 2019USD ($) | Jun. 26, 2020USD ($) | Mar. 06, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Debt Instrument [Line Items] | ||||||||||
Interest expense | $ 19,715,318 | $ 12,165,781 | $ 34,106,272 | $ 24,399,076 | ||||||
Amortization of deferred financing costs | 482,406 | 246,432 | 809,876 | 494,204 | ||||||
Unrealized loss | 27,194 | 199,723 | ||||||||
Credit facility commitment fees | 11,484 | 42,881 | ||||||||
Capitalized interest | $ 193,049 | $ 262,619 | 0 | |||||||
Seasoning fees | 0 | 2,137 | ||||||||
Notes Payable to Banks | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Instruments | instrument | 47 | 47 | 29 | 16 | ||||||
Amortization of Debt Discount (Premium) | $ (413,858) | $ (528,440) | ||||||||
Accounts Payable and Accrued Liabilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest payable | 6,386,279 | 6,386,279 | $ 3,954,686 | |||||||
Interest Rate Cap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unrealized loss | 24,943 | $ 20,107 | 27,194 | $ 199,723 | ||||||
SIR and STAR III Merger Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fair value of assumed notes payable | $ 795,431,027 | |||||||||
Assumed principal balance | 791,020,471 | |||||||||
Net premium | $ 4,410,556 | |||||||||
PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 19,800,000 | |||||||||
Debt instrument, term | 36 months | |||||||||
Mini perm extensions | 12 months | |||||||||
Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 137,917,250 | |||||||||
Line of Credit, PNC Bank | PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Closing fee | 0.40% | |||||||||
Mini-perm fee percentage | 0.10% | |||||||||
Loan exit fee | 1.00% | |||||||||
Amounts outstanding on construction loan | $ 0 | $ 0 | $ 0 | |||||||
Line of Credit, PNC Bank | Maximum | PNC Bank | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 2.00% | |||||||||
Line of Credit, PNC Bank | Minimum | PNC Bank | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 1.80% | |||||||||
Master Credit Facility Agreement | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 551,669,000 | |||||||||
Master Credit Facility Agreement | Subsidiaries | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of subsidiaries refinanced under revolving credit facility | Subsidiary | 16 | |||||||||
Master Credit Facility Agreement Tranche 4 | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 40,468,000 | |||||||||
Fixed rate | 3.34% | |||||||||
Master Credit Facility Agreement Tranche 1 | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 331,001,400 | |||||||||
Fixed rate | 4.43% | |||||||||
Master Credit Facility Agreement Tranche 2 | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate | 4.57% | |||||||||
Master Credit Facility Agreement Tranche 3 | Berkeley Point Capital LLC | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 82,750,350 | |||||||||
Master Credit Facility Agreement Tranche 3 | Berkeley Point Capital LLC | LIBOR | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 1.70% | |||||||||
CME Loan | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Advisory fee, amount | $ 3,061,855 | |||||||||
CME Loan | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan fee amount | $ 2,072,480 | |||||||||
PNC MCFA | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Advisory fee, amount | $ 791,700 | |||||||||
PNC MCFA | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan fee amount | $ 633,360 | |||||||||
PNC MCFA | Subsidiaries | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of subsidiaries refinanced under revolving credit facility | multifamily_property | 7 | |||||||||
PNC MCFA Tranche 1 | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate | 2.82% | |||||||||
PNC MCFA Tranche 1 | Subsidiaries | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 79,170,000 | |||||||||
PNC MCFA Tranche 2 | PNC Bank | LIBOR | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate | 2.135% | |||||||||
PNC MCFA Tranche 2 | Subsidiaries | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 79,170,000 | |||||||||
Revolver Loan | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 65,000,000 |
Debt - Summary of Advances Obta
Debt - Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 744,430,795 | $ 548,460,230 |
PNC MCFA | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | 158,340,000 | 0 |
Accumulated amortization of deferred financing costs | 6,958 | 0 |
Revolver Loan | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | 0 | 0 |
Deferred financing costs, net | (588,879) | 0 |
Accumulated amortization of deferred financing costs | 0 | 0 |
Line of Credit | PNC MCFA | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (1,782,261) | 0 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Accumulated amortization of deferred financing costs | 1,060,049 | 832,187 |
Residential Real Estate | Master Credit Facility Agreement | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (3,675,065) | (3,208,770) |
Residential Real Estate | Line of Credit | Master Credit Facility Agreement | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 592,137,000 | $ 551,669,000 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Details) | Jun. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 2,185,754,000 |
Remainder of 2020 | 2,950,437 |
2021 | 8,719,743 |
2022 | 34,976,371 |
2023 | 61,197,898 |
2024 | 58,716,430 |
Thereafter | $ 2,019,193,121 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative - General (Details) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Common and preferred shares authorized (in shares) | 1,100,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 999,998,000 | |
Stock, par value (in dollars per share) | $ 0.01 | |
Class A Convertible Stock | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible Stock | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Stockholders' Equity - Narrat_2
Stockholders' Equity - Narrative - Common Stock (Details) | May 04, 2020$ / sharesshares | Mar. 06, 2020shares | Mar. 05, 2020 | Mar. 24, 2016USD ($)shares | Dec. 30, 2013$ / sharesshares | Sep. 03, 2013USD ($)$ / sharesshares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2020USD ($)voteshares | Jun. 30, 2019USD ($)shares | Mar. 24, 2016USD ($)shares | Mar. 24, 2016USD ($)shares | Apr. 17, 2020$ / shares | Mar. 14, 2018$ / shares |
Class of Stock [Line Items] | ||||||||||||||
Number of votes (per share) | vote | 1 | |||||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 349,989 | 339,564 | ||||||||||||
Compensation expense related to the issuance of restricted common stock | $ 63,383 | $ 27,792 | ||||||||||||
Cash paid for investment management fee, percent | 50.00% | |||||||||||||
Shares paid for investment management fee, percent | 50.00% | |||||||||||||
Management fee payable | $ 1,464,982 | 1,464,982 | ||||||||||||
Fees to affiliates | 13,709,333 | $ 6,265,958 | 22,136,629 | $ 12,331,606 | ||||||||||
Investment Advisory, Management and Administrative Service | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Fees to affiliates | 4,316,774 | 5,504,125 | ||||||||||||
Loan Coordination Fees | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Fees to affiliates | 1,116,694 | 1,116,694 | ||||||||||||
Restricted Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Compensation expense related to the issuance of the restricted common stock not yet recognized | $ 140,383 | |||||||||||||
Weighted-average remaining term | 1 year 2 months 12 days | |||||||||||||
Forfeited shares (in shares) | shares | 0 | |||||||||||||
Advisor | Advisor | Loan Coordination Fee | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Loan coordination fee, acquisitions | 0.50% | 1.00% | ||||||||||||
Common Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 670,958 | 693,883 | ||||||||||||
Common Stock | Independent Directors Compensation Plan | Restricted Stock | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Number of equal annual vesting installments | 4 years | |||||||||||||
Compensation expense related to the issuance of restricted common stock | 20,928 | 13,896 | $ 63,383 | $ 27,792 | ||||||||||
Common Stock | Independent Directors Compensation Plan | Restricted Stock | General and Administrative Expense | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Compensation expense related to the issuance of restricted common stock | $ 20,928 | $ 13,896 | $ 63,383 | $ 27,792 | ||||||||||
Common Stock | IPO | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | shares | 48,625,651 | 110,963,247 | 48,625,651 | |||||||||||
Proceeds from issuance of common stock | $ 724,849,631 | $ 1,707,340,246 | $ 640,012,497 | |||||||||||
Net proceeds from the issuance of common stock | $ 1,622,503,112 | |||||||||||||
Common Stock | Distribution Reinvestment Plan | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | shares | 7,333,167 | 1,011,561 | ||||||||||||
Proceeds from issuance of common stock | $ 109,611,088 | $ 14,414,752 | ||||||||||||
Stock issued during period, dividend reinvestment plan (in shares) | shares | 1,011,561 | |||||||||||||
Net proceeds from issuance of common stock, dividend reinvestment plan | $ 14,414,752 | |||||||||||||
Commissions on sales of common stock and related dealer manager fees to affiliates | 84,837,134 | $ 84,837,134 | ||||||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | shares | 10,000,000 | 7,017,544 | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.23 | $ 14.25 | $ 15.23 | $ 14.25 | ||||||||||
Net proceeds from the issuance of common stock | $ 109,611,088 | |||||||||||||
Common Stock | Sponsor | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | shares | 13,500 | |||||||||||||
Issuance of common stock | $ 202,500 | |||||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||||||||||
Common Stock | Sponsor | SIR Merger Agreement | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | shares | 43,775,314 | |||||||||||||
Common Stock | Sponsor | STAR III Merger Agreement | ||||||||||||||
Class of Stock [Line Items] | ||||||||||||||
Issuance of common stock (in shares) | shares | 12,240,739 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services (Details) - Restricted Stock - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares at the beginning of the period (in shares) | 7,497 | 7,497 |
Granted shares (in shares) | 6,666 | 4,998 |
Vested shares (in shares) | (1,666) | (4,998) |
Nonvested shares at the end of the period (in shares) | 12,497 | 7,497 |
Independent Directors Compensation Plan | Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares granted, grant date fair value (in dollars per share) | $ 15.84 | $ 15.84 |
Stockholders' Equity - Narrat_3
Stockholders' Equity - Narrative - Convertible Stock (Details) - Advisor - Class A Convertible Stock | Mar. 06, 2020$ / shares | Sep. 30, 2013$ / shares |
Class of Stock [Line Items] | ||
Aggregate percentage of cumulative, non-compounded, annual return on the original issue price added to total distributions qualifying for conversion of stock | 6.00% | 6.00% |
Convertible stock redemption price (in dollars per share) | $ 1 | $ 1 |
Common stock, conversion basis multiplier | 0.001 | 0.001 |
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | 15.00% |
Stockholders' Equity - Narrat_4
Stockholders' Equity - Narrative - Preferred Stock (Details) | 6 Months Ended | |
Jun. 30, 2020classshares | Dec. 31, 2019shares | |
Equity [Abstract] | ||
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | class | 1 | |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | class | 1 | |
Preferred stock, shares issued (in shares) | shares | 0 | 0 |
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 |
Stockholders' Equity - Narrat_5
Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Details) - Distribution Reinvestment Plan - USD ($) | 6 Months Ended | ||||
Jun. 30, 2020 | May 04, 2020 | Apr. 17, 2020 | Mar. 14, 2018 | Dec. 30, 2013 | |
Class of Stock [Line Items] | |||||
Sales commissions or dealer manager fees payable on shares sold under the plan | $ 0 | ||||
Notice period for termination of plan | 10 days | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Share price (in dollars per share) | $ 15.23 | $ 15.23 | $ 14.25 | $ 14.25 |
Stockholders' Equity - Narrat_6
Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Details) | Apr. 30, 2020USD ($) | Mar. 03, 2020USD ($)$ / shares | Sep. 05, 2019USD ($) | Mar. 14, 2018USD ($)$ / shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2020USD ($)assetshares | Jun. 30, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | May 04, 2020$ / shares | Apr. 17, 2020$ / shares | Dec. 30, 2013$ / shares |
Class of Stock [Line Items] | ||||||||||||
Authorized amount, per quarter | $ 2,000,000 | $ 2,000,000 | $ 4,000,000 | |||||||||
Limit on repurchase, percent | 93.00% | 5.00% | ||||||||||
Transfers from redeemable common stock | $ 1,383,318 | |||||||||||
Share Repurchase Plan As Amended | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized amount, per quarter | $ 2,000,000 | |||||||||||
Limit on repurchase, percent | 93.00% | |||||||||||
Estimated share price (in dollars per share) | $ / shares | $ 14.16 | |||||||||||
Share Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of company assets sold that constitute a return of capital as a result of such sale. | asset | 1 | |||||||||||
Written request period for repurchase of shares | 15 days | |||||||||||
Payment period following the repurchase date for honoring repurchase requests | 30 days | |||||||||||
Minimum number of days prior to repurchase date a repurchase request may be withdrawn | 3 days | |||||||||||
Notice period for amendment, suspension, or termination of share repurchase plan | 30 days | |||||||||||
Share Repurchase Plan | Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Number of shares that can be repurchased under Company's share repurchase plan after first anniversary of date of purchase of shares (in shares) | shares | 0 | 0 | ||||||||||
Share repurchase plan, maximum period of time allowed from date of death or disability of shareholder to request holding period exemption for shares to be repurchased | 2 years | |||||||||||
Value of stock redeemed | $ 2,110,538 | $ 2,000,000 | $ 2,907,827 | $ 4,000,000 | ||||||||
Unfulfilled repurchase requests (in shares) | shares | 278,105 | 278,105 | 53,152 | |||||||||
Shares redeemed (in shares) | shares | 149,049 | 135,885 | 202,201 | 274,845 | ||||||||
Stock requested for redemption (in shares) | shares | 2,664,719 | 355,607 | 2,813,768 | 796,515 | ||||||||
Stock requested for redemption, amount | $ 37,732,417 | $ 5,210,102 | $ 39,842,954 | $ 11,623,936 | ||||||||
Transfers from redeemable common stock | 1,383,318 | $ 0 | ||||||||||
Accounts Payable and Accrued Liabilities | Share Repurchase Plan | Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Value of stock redeemed | $ 4,000,000 | $ 797,289 | ||||||||||
Distribution Reinvestment Plan | Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 14.25 | $ 15.23 | $ 15.23 | $ 14.25 | ||||||||
Distribution Reinvestment Plan | Share Repurchase Plan As Amended | Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.23 | |||||||||||
SIR and STAR III Merger Agreement | Share Repurchase Plan As Amended | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Authorized amount, per quarter | $ 4,000,000 | $ 4,000,000 | ||||||||||
Repurchase price as percentage of estimated fair value | 93.00% |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Plan Prior to and Following Estimated Value Per Share of Common Stock is Published (Details) | Mar. 03, 2020 | Mar. 14, 2018 | Mar. 29, 2016 | Jun. 30, 2020 |
Class of Stock [Line Items] | ||||
Limit on repurchase, percent | 93.00% | 5.00% | ||
Share Repurchase Plan Pre Published Valuation | Common Stock | ||||
Class of Stock [Line Items] | ||||
Less than 1 year | 0.00% | |||
1 year | 92.50% | |||
2 years | 95.00% | |||
3 years | 97.50% | |||
4 years | 100.00% | |||
Share Repurchase Plan Post Published Valuation | Common Stock | ||||
Class of Stock [Line Items] | ||||
Less than 1 year | 0.00% | |||
1 year | 92.50% | |||
2 years | 95.00% | |||
3 years | 97.50% | |||
4 years | 100.00% |
Stockholders' Equity - Narrat_7
Stockholders' Equity - Narrative - Distributions Declared (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | $ 0.002459 | $ 0.002466 | ||
Common share distribution rate per share per day paid (in dollars per share) | $ 0.90 | $ 0.90 | |||
Dividends | $ 11,684,723 | $ 23,196,260 | |||
Dividends payable | $ 8,232,272 | $ 8,232,272 | $ 4,021,509 | ||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002459 | $ 0.002459 | |||
Common share distribution rate per share per day paid (in dollars per share) | $ 0.90 | $ 0.90 | |||
Dividends | $ 24,588,408 | 11,684,723 | $ 39,979,942 | 23,196,260 | |
Dividends, common stock, distribution reinvestment plan | $ 5,363,890 | $ 5,286,618 | $ 10,499,787 | $ 10,630,544 | |
Dividends, common stock, distribution reinvestment plan (in shares) | 352,192 | 333,752 | 676,428 | 685,789 | |
Dividends payable | $ 8,232,272 | $ 8,232,272 | $ 4,021,509 | ||
Dividends payable, DRP | $ 1,760,414 | $ 1,744,240 | |||
Dividends payable, DRP (in shares) | 115,589 | 110,116 |
Stockholders' Equity - Narrat_8
Stockholders' Equity - Narrative - Distributions Paid (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | ||||
Payments of ordinary dividends, common stock | $ 19,313,315 | $ 6,419,268 | $ 26,030,027 | $ 12,535,724 |
Stock issued during period, dividend reinvestment plan (in shares) | 349,989 | 339,564 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 5,399,458 | $ 5,378,696 | ||
Distributions paid, common stock, including distribution reinvestment plan | $ 24,712,773 | $ 11,797,964 | $ 36,513,640 | $ 23,292,986 |
Common Class A | ||||
Class of Stock [Line Items] | ||||
Stock issued during period, dividend reinvestment plan (in shares) | 670,958 | 693,883 | ||
Proceeds from issuance of common stock, dividend reinvestment plan | $ 10,483,613 | $ 10,757,262 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) | Apr. 21, 2020USD ($)shares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 20, 2020USD ($)multifamily_property |
Noncontrolling Interest [Line Items] | ||||
Class A-2 OP Units issued for real estate | $ 14,450,000 | $ 0 | ||
STAR III OP | ||||
Noncontrolling Interest [Line Items] | ||||
Noncontrolling interest, percentage of total shares | 0.87% | |||
Noncontrolling interest, weighted average percentage of total shares | 1.07% | |||
STAR III OP | ||||
Noncontrolling Interest [Line Items] | ||||
Vesting Period | 5 years | |||
STAR III OP and STAR III OP | ||||
Noncontrolling Interest [Line Items] | ||||
Number of Class A-2 OP units issued (in shares) | shares | 948,785 | |||
Class A-2 OP Units issued for real estate | $ 14,450,000 | |||
VV&M Apartments | ||||
Noncontrolling Interest [Line Items] | ||||
Business acquisition, aggregate purchase price | $ 59,250,000 | |||
VV&M Apartments | STAR III OP | ||||
Noncontrolling Interest [Line Items] | ||||
Multifamily properties | multifamily_property | 310 |
Noncontrolling Interest - Sched
Noncontrolling Interest - Schedule of Activity for Noncontrolling Interests Recorded as Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||||
Issuance of Class A-2 OP Units | $ 14,450,000 | $ 14,450,000 | |||
Income allocated to noncontrolling interest | 163,314 | $ 0 | 163,314 | $ 0 | |
Distributions to noncontrolling interest | (24,588,408) | (39,979,941) | |||
Noncontrolling interest | 14,450,000 | 14,450,000 | $ 0 | ||
Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Issuance of Class A-2 OP Units | 14,450,000 | 14,450,000 | |||
Distributions to noncontrolling interest | $ (163,314) | $ (163,314) |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) - Advisor - Advisor and its Affiliates - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | $ 25,302,016 | $ 11,563,739 | $ 67,144,894 | $ 22,470,393 | |
Payable (Prepaid) as of end of period | 5,994,733 | 5,994,733 | $ 6,763,246 | ||
Investment management fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 8,535,093 | 4,174,176 | 13,889,530 | 8,334,328 | |
Payable (Prepaid) as of end of period | 2,893,842 | 2,893,842 | 4,120,353 | ||
Acquisition Expenses | Acquisition Expenses | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 0 | 92,661 | 1,111 | 92,661 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Loan Coordination Fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 1,116,700 | 0 | 1,605,652 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 600,000 | ||
Disposition Fee | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 0 | 0 | 338,750 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 591,000 | ||
Disposition Transaction Costs | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 0 | 0 | 5,144 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Property Management, Fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 2,369,487 | 1,245,150 | 3,865,857 | 2,479,427 | |
Payable (Prepaid) as of end of period | 805,482 | 805,482 | 418,173 | ||
Property Management, Reimbursement of Onsite Personnel | Reimbursement of Onsite Personnel | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 7,780,381 | 3,776,431 | 12,475,428 | 7,504,136 | |
Payable (Prepaid) as of end of period | 1,778,005 | 1,778,005 | 843,763 | ||
Property Management, Other Fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 1,688,053 | 846,632 | 2,775,590 | 1,517,851 | |
Payable (Prepaid) as of end of period | 114,079 | 114,079 | 50,778 | ||
Property Management, Other Fees - Property Operations | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 109,188 | 26,600 | 188,199 | 49,742 | |
Payable (Prepaid) as of end of period | 0 | 0 | 11,465 | ||
Property Management, Other Fees - G&A | General and Administrative Expense | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 51,811 | 26,845 | 84,216 | 61,832 | |
Payable (Prepaid) as of end of period | 0 | 0 | 7,000 | ||
Other Operating Expenses | General and Administrative Expense | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 954,292 | 413,043 | 1,664,464 | 828,151 | |
Payable (Prepaid) as of end of period | 230,267 | 230,267 | 463,301 | ||
Insurance Proceeds | General and Administrative Expense | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 150,000 | 0 | 150,000 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Property Insurance | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 1,515,016 | 359,663 | 2,439,952 | 641,978 | |
Payable (Prepaid) as of end of period | 0 | 0 | 542,324 | ||
Rental Revenue | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 23,282 | 14,745 | 41,029 | 29,490 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Acquisition Fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 341,371 | 48,343 | 17,717,639 | 48,343 | |
Payable (Prepaid) as of end of period | 42,660 | 42,660 | 0 | ||
Acquisition Fees and Expenses | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 133,695 | 154,477 | 389,919 | 218,712 | |
Payable (Prepaid) as of end of period | 14,593 | 14,593 | 0 | ||
Loan coordination fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 224,000 | 0 | 8,812,071 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Capitalized development services fee | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 151,071 | 0 | 302,142 | 0 | |
Payable (Prepaid) as of end of period | 50,357 | 50,357 | 50,357 | ||
Capitalized investment management fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 98,454 | 0 | 179,668 | 0 | |
Payable (Prepaid) as of end of period | 34,692 | 34,692 | 25,811 | ||
Capitalized development costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 2,435 | 0 | 3,030 | 0 | |
Payable (Prepaid) as of end of period | 1,090 | 1,090 | 0 | ||
Construction Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 259,509 | 303,518 | 382,272 | 461,417 | |
Payable (Prepaid) as of end of period | 701 | 701 | 43,757 | ||
Construction Management Reimbursement of Labor Costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 95,692 | 110,945 | 166,239 | 261,305 | |
Payable (Prepaid) as of end of period | 7,629 | 7,629 | 8,525 | ||
Deferred Financing Costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 49,050 | 0 | 49,050 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Selling Commissions | Additional Paid-In Capital | |||||
Related Party Transaction [Line Items] | |||||
Incurred (Received) in the period | 0 | $ 0 | 0 | $ 0 | |
Payable (Prepaid) as of end of period | $ 21,336 | $ 21,336 | $ 71,287 |
Related Party Arrangements - Na
Related Party Arrangements - Narrative - Investment Management Fee (Details) - USD ($) | Mar. 06, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||
Cash paid for investment management fee, percent | 50.00% | ||
Shares paid for investment management fee, percent | 50.00% | ||
Advisor | Investment management fees | |||
Related Party Transaction [Line Items] | |||
Monthly investment management fee, percentage | 0.0833% | ||
Cash paid for investment management fee, percent | 50.00% | ||
Shares paid for investment management fee, percent | 50.00% | 50.00% | |
Investment management fees paid, in shares | $ 4,039,148 | $ 0 |
Related Party Arrangements - _2
Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Details) - Advisor - Advisor - Acquisition Fees and Expenses - USD ($) | Mar. 06, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Acquisition fee, percent | 0.50% | 1.00% |
Acquisition fee | $ 16,281,487 | |
Acquisition fee payable without board approval as a percent of total contract price | 4.50% |
Related Party Arrangements - _3
Related Party Arrangements - Narrative - Loan Coordination Fee (Details) - USD ($) | Mar. 06, 2020 | Mar. 05, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||||
Loan coordination fee paid, in shares | $ 1,116,694 | $ 0 | ||
Advisor | Advisor | Loan Coordination Fee | ||||
Related Party Transaction [Line Items] | ||||
Loan coordination fee, acquisitions | 0.50% | 1.00% | ||
Loan coordination fee, other than acquisitions | 0.50% | 0.75% | ||
Loan coordination advisory fee, other loan fees agreed upon | $ 100,000 | $ 100,000 | ||
Loan coordination fee included in connection with merger | $ 7,910,205 |
Related Party Arrangements - _4
Related Party Arrangements - Narrative - Property Management Fees and Expenses (Details) - Property Management Fees and Expenses - Steadfast Management Company - Property Manager | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transaction [Line Items] | |
Term of agreement | 1 year |
Number of uncured days needed to terminate agreement | 60 days |
Notice needed to terminate agreement | 30 days |
Minimum | |
Related Party Transaction [Line Items] | |
Property management fee, percent fee | 2.50% |
Maximum | |
Related Party Transaction [Line Items] | |
Property management fee, percent fee | 3.50% |
Related Party Arrangements - _5
Related Party Arrangements - Narrative - Construction Management Fee and Development Services Agreement (Details) - Affiliated Entity | 6 Months Ended |
Jun. 30, 2020 | |
Pacific Coast Land & Construction, Inc. | Construction Management Fee | |
Construction management fees and expenses | |
Construction management agreement, notice of termination of contract, period | 30 days |
Pacific Coast Land & Construction, Inc. | Construction Management Fee | Minimum | |
Construction management fees and expenses | |
Construction management fee, percent | 6.00% |
Pacific Coast Land & Construction, Inc. | Construction Management Fee | Maximum | |
Construction management fees and expenses | |
Construction management fee, percent | 12.00% |
Steadfast Multifamily Development, Inc. | Development Services Agreement | |
Development services agreement | |
Development services agreement fee, percent | 4.00% |
Development services agreement fee paid over installment period, percent | 75.00% |
Development services agreement fee, period | 14 months |
Development services agreement fee paid at certificate of occupancy, percent | 25.00% |
Related Party Arrangements - _6
Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Details) - Advisor - Advisor - Other Operating Expense Reimbursement | 6 Months Ended |
Jun. 30, 2020quarter | |
Related Party Transaction [Line Items] | |
Operating expense limitation, number of rolling quarters | 4 |
Operating expenses limitation as a percentage of average invested assets | 2.00% |
Operating expenses limitation as a percentage of net income | 25.00% |
Average invested assets, calculation period | 12 months |
Related Party Arrangements - _7
Related Party Arrangements - Narrative - Disposition Fee (Details) - Advisor - Advisor - Disposition Fee | Mar. 06, 2020 | Mar. 05, 2020 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | |||
Disposition fee, maximum percent of brokerage commission paid threshold | 50.00% | 50.00% | |
Disposition fee, percentage of sales price | 1.00% | ||
Property sale disposition fee, maximum percentage of total sale price | 0.50% | ||
Operating expenses limitation as a percentage of average invested assets | 2.00% | ||
Operating expenses limitation as a percentage of net income | 25.00% |
Related Party Arrangements - _8
Related Party Arrangements - Narrative - Selling Commissions and Dealer Manager Fees (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Sales commission earned reallowed to participating broker dealers, percentage | 100.00% | |
Steadfast Capital Markets Group, LLC | Dealer Manager | Sales Commissions | Primary Offering | ||
Related Party Transaction [Line Items] | ||
Sales commission, percentage of gross offering proceeds | 7.00% | |
Sales commission, percentage of gross offering proceeds, at time of sale | 3.00% | |
Sales commission, percentage of gross offering proceeds, remaining after sale | 4.00% | |
Sales commission, percentage of gross offering proceeds, ratable on each of the first five anniversaries | 1.00% | |
Selling commissions on gross offering proceeds from sales of common stock | 4 years | |
Steadfast Capital Markets Group, LLC | Dealer Manager | Dealer Manager Fees | Primary Offering | ||
Related Party Transaction [Line Items] | ||
Dealer manager fees, percentage of gross offering proceeds | 3.00% | |
Steadfast Capital Markets Group, LLC | Dealer Manager | Sales Commissions and Dealer Manager Fees | Distribution Reinvestment Plan | ||
Related Party Transaction [Line Items] | ||
Sales commissions or dealer manager fees paid | $ 0 | |
Advisor | Advisor and its Affiliates | ||
Related Party Transaction [Line Items] | ||
Amount payable | 5,994,733 | $ 6,763,246 |
Additional Paid-In Capital | Advisor | Advisor and its Affiliates | Sales Commissions Paid | ||
Related Party Transaction [Line Items] | ||
Amount payable | $ 21,336 | $ 71,287 |
Related Party Arrangements - _9
Related Party Arrangements - Narrative- Class A Convertible Stock (Details) - Advisor - $ / shares | Mar. 06, 2020 | Sep. 30, 2013 |
Convertible Stock | ||
Related Party Transaction [Line Items] | ||
Aggregate percentage of cumulative, non-compounded, annual return on the original issue price added to total distributions qualifying for conversion of stock | 6.00% | |
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | |
Class A Convertible Stock | ||
Related Party Transaction [Line Items] | ||
Aggregate percentage of cumulative, non-compounded, annual return on the original issue price added to total distributions qualifying for conversion of stock | 6.00% | 6.00% |
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | 15.00% |
Convertible stock redemption price | $ 1 | $ 1 |
Incentive Award Plan and Inde_2
Incentive Award Plan and Independent Director Compensation (Details) | Mar. 06, 2020directorshares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization of stock-based compensation | $ 63,383 | $ 27,792 | ||||
Operating expenses | $ 130,580,646 | $ 55,701,159 | 205,645,097 | 110,786,126 | ||
Director Annual Retainer Expense | Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amount payable | 186,250 | 186,250 | $ 61,750 | |||
Common Stock | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Proceeds from issuance of common stock | 2,000,000 | |||||
Independent Directors Compensation Plan | Restricted Stock | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equal annual vesting installments | 4 years | |||||
Amortization of stock-based compensation | 20,928 | 13,896 | 63,383 | 27,792 | ||
Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual amount | 55,000 | |||||
Annual amount, additional due audit committee chairperson | 10,000 | |||||
Board meeting attendance fee | 2,500 | |||||
Committee meeting attendance fee | 1,500 | |||||
Teleconference attendance fee | 1,000 | |||||
Teleconference attendance fee, daily maximum | 4,000 | |||||
Operating expenses | $ 465,250 | $ 99,750 | $ 537,000 | $ 252,000 | ||
Directors | Independent Directors Compensation Plan | Restricted Stock | IPO | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares received under plan (in shares) | shares | 3,333 | |||||
Shares entitled to be received upon re-election to Board of Directors (in shares) | shares | 1,666 | |||||
Shares of restricted stock vesting percentage | 25.00% | |||||
Number of equal annual vesting installments | 3 years | |||||
Shares appointed to board of directors | shares | 3,333 | |||||
Number of independent directors | director | 2 | |||||
Independent Directors Compensation Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Teleconference attendance fee | $ 1,000 | |||||
In-person meeting fee | 1,500 | |||||
Chairman of Special Committee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual amount | 60,000 | |||||
Other Special Committee Members | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Annual amount | $ 50,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to the common stockholders | $ (53,224,622) | $ (11,993,010) | $ (62,905,750) | $ (24,352,282) |
Less: Distributions declared on Class A-2 OP Units | (163,314) | 0 | (163,314) | 0 |
Less: Distributions related to unvested restricted stockholders | (2,796) | (1,682) | (5,667) | (3,346) |
Numerator for loss per common share — basic | $ (53,390,732) | $ (11,994,692) | $ (63,074,731) | $ (24,355,628) |
Weighted average common shares outstanding - basic and diluted | 109,139,963 | 52,123,442 | 88,660,741 | 51,999,327 |
Loss per common share - basic and diluted (in dollars per share) | $ (0.49) | $ (0.23) | $ (0.71) | $ (0.47) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Interest Rate Derivatives (Details) - Interest Rate Cap - Cash Flow Hedging - Not Designated as Hedging Instrument | Jun. 30, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 17 | 9 |
Notional Amount | $ 681,930,345 | $ 343,017,350 |
Weighted Average Rate Cap | 3.25% | 3.45% |
Fair Value | $ 26,048 | $ 132 |
One-Month LIBOR | ||
Derivative [Line Items] | ||
Variable Rate | 0.16% | 1.76% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Unrealized loss | $ 27,194 | $ 199,723 | |||
Purchase of interest rate cap agreements | 47,000 | 0 | |||
Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Unrealized loss | $ 24,943 | $ 20,107 | 27,194 | 199,723 | |
Purchase of interest rate cap agreements | 47,000 | 0 | |||
Interest Rate Cap | Deferred Financing Costs | |||||
Derivative [Line Items] | |||||
Fair value of interest rate cap agreements | 26,048 | 26,048 | $ 132 | ||
Interest Rate Cap | Interest Expense | |||||
Derivative [Line Items] | |||||
Unrealized loss | $ 24,943 | $ 20,107 | $ 27,194 | $ 199,723 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Nonrecurring Basis: | |||||
Impairment of real estate | $ 5,039,937 | $ 0 | $ 5,039,937 | $ 0 | |
Joint Venture | |||||
Nonrecurring Basis: | |||||
Other than temporary impairment loss | 2,442,411 | $ 0 | 2,442,411 | $ 0 | |
Interest Rate Cap | Level 1 | Fair Value, Recurring | |||||
Recurring Basis: | |||||
Interest rate cap agreements | 0 | 0 | $ 0 | ||
Interest Rate Cap | Level 1 | Fair Value, Nonrecurring | |||||
Nonrecurring Basis: | |||||
Impairment of real estate | 0 | ||||
Other than temporary impairment loss | 0 | ||||
Interest Rate Cap | Level 2 | Fair Value, Recurring | |||||
Recurring Basis: | |||||
Interest rate cap agreements | 26,048 | 26,048 | 132 | ||
Interest Rate Cap | Level 2 | Fair Value, Nonrecurring | |||||
Nonrecurring Basis: | |||||
Impairment of real estate | 0 | ||||
Other than temporary impairment loss | 0 | ||||
Interest Rate Cap | Level 3 | Fair Value, Recurring | |||||
Recurring Basis: | |||||
Interest rate cap agreements | $ 0 | 0 | $ 0 | ||
Interest Rate Cap | Level 3 | Fair Value, Nonrecurring | |||||
Nonrecurring Basis: | |||||
Impairment of real estate | 80,967,000 | ||||
Other than temporary impairment loss | $ 18,984,491 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 04, 2020$ / shares | Aug. 03, 2020USD ($)shares | Jul. 31, 2020USD ($)$ / sharesshares | Jul. 16, 2020USD ($) | Jul. 09, 2020$ / shares | Jul. 01, 2020USD ($)shares | Mar. 06, 2020USD ($)apartmentmultifamily_property | Jun. 30, 2020USD ($)multifamily_propertyapartment$ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2020USD ($)multifamily_propertyapartment$ / shares | Jun. 30, 2019USD ($)$ / shares |
Subsequent Event [Line Items] | |||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 24,712,773 | $ 11,797,964 | $ 36,513,640 | $ 23,292,986 | |||||||
Payments of ordinary dividends, common stock | 19,313,315 | 6,419,268 | 26,030,027 | 12,535,724 | |||||||
Repurchase of common stock | $ 2,110,537 | $ 2,000,000 | $ 2,907,827 | $ 4,000,000 | |||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ / shares | $ 0.002466 | $ 0.002459 | $ 0.002466 | ||||||||
Multifamily | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Properties | multifamily_property | 70 | 70 | |||||||||
Unconsolidated Properties | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Properties | multifamily_property | 20 | 20 | |||||||||
Number of apartment homes | apartment | 4,584 | 4,584 | |||||||||
Joint Venture | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Other than temporary impairment loss | $ 2,442,411 | $ 0 | $ 2,442,411 | $ 0 | |||||||
Joint Venture | Multifamily | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Properties | multifamily_property | 20 | ||||||||||
Joint Venture | Unconsolidated Properties | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of apartment homes | apartment | 4,584 | ||||||||||
Purchase price of joint venture | $ 21,500,000 | ||||||||||
Joint Venture | Unconsolidated Properties | Joint Venture | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Noncontrolling interest, ownership percentage | 10.00% | ||||||||||
Common Stock | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ / shares | $ 0.002459 | $ 0.002459 | |||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 8,357,085 | $ 8,068,958 | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ / shares | $ 0.002459 | $ 0.002459 | |||||||||
Subsequent Event | Joint Venture | Unconsolidated Properties | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Proceeds from sale of joint venture | $ 19,278,280 | ||||||||||
Subsequent Event | Common Stock | Investment management fees | Advisor | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Shares of common stock issued to the Advisor as payment for monthly investment management fees (in shares) | shares | 97,534 | 93,796 | |||||||||
Subsequent Event | Share Repurchase Plan | Common Stock | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Share repurchased (in shares) | shares | 278,105 | ||||||||||
Repurchase of common stock | $ 4,000,000 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 14.38 | ||||||||||
Subsequent Event | Dividend Paid | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments of ordinary dividends, common stock | $ 6,550,050 | $ 6,308,544 | |||||||||
Shares issued pursuant to DRP (in shares) | $ 1,807,035 | $ 1,760,414 |