Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 | 2021 | |
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 200 | |
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 | 569-9700 | |
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 | 110,293,205 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate: | ||
Land | $ 343,297,680 | $ 337,322,234 |
Building and improvements | 2,984,948,698 | 2,882,411,683 |
Tenant origination and absorption costs | 1,682,900 | 1,752,793 |
Total real estate held for investment, cost | 3,329,929,278 | 3,221,486,710 |
Less accumulated depreciation and amortization | (461,735,477) | (397,744,677) |
Total real estate held for investment, net | 2,868,193,801 | 2,823,742,033 |
Real estate held for development | 30,288,753 | 39,891,218 |
Total real estate, net | 2,898,482,554 | 2,863,633,251 |
Cash and cash equivalents | 160,949,592 | 258,198,326 |
Restricted cash | 28,399,975 | 38,998,980 |
Goodwill | 125,220,448 | 125,220,448 |
Due from affiliates | 208,411 | 377,218 |
Rents and other receivables | 28,450,658 | 5,385,108 |
Other assets | 4,654,627 | 9,925,714 |
Total assets | 3,246,366,265 | 3,301,739,045 |
Liabilities: | ||
Accounts payable and accrued liabilities | 85,044,074 | 81,598,526 |
Notes Payable, net: | ||
Mortgage notes payable, net | 1,388,596,919 | 1,384,382,785 |
Credit facilities, net | 745,285,227 | 744,862,886 |
Total notes payable, net | 2,133,882,146 | 2,129,245,671 |
Distributions payable | 4,797,443 | 8,462,735 |
Distributions payable to affiliates | 265,620 | 469,236 |
Due to affiliates | 74,090 | 337,422 |
Total liabilities | 2,224,063,373 | 2,220,113,590 |
Commitments and contingencies (Note 12) | ||
Redeemable common stock | 294,858 | 0 |
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 | 1,607,145,466 | 1,603,989,130 |
Cumulative distributions and net losses | (687,044,939) | (627,787,040) |
Total Steadfast Apartment REIT, Inc. (“STAR”) stockholders’ equity | 921,202,808 | 977,302,796 |
Noncontrolling interest | 100,805,226 | 104,322,659 |
Total equity | 1,022,008,034 | 1,081,625,455 |
Total liabilities and stockholders’ equity | 3,246,366,265 | 3,301,739,045 |
Common Stock | ||
Notes Payable, net: | ||
Distributions payable | 5,063,063 | 8,931,971 |
Stockholders’ Equity: | ||
Value of STAR’s common stock issued as consideration | 1,102,281 | 1,100,706 |
Convertible Stock | ||
Stockholders’ Equity: | ||
Value of STAR’s common stock issued as consideration | 0 | 0 |
Class A Convertible Stock | ||
Stockholders’ Equity: | ||
Value of STAR’s common stock issued as consideration | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 110,228,140 | 110,070,572 |
Stock, shares outstanding (in shares) | 110,228,140 | 110,070,572 |
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 | |
Stock, shares outstanding (in shares) | 0 | |
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) | 0 | 0 |
Stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Rental income | $ 84,920,839 | $ 79,612,668 | $ 167,300,117 | $ 132,879,341 |
Other income | 703,793 | 682,926 | 1,482,333 | 1,130,193 |
Total revenues | 85,624,632 | 80,295,594 | 168,782,450 | 134,009,534 |
Expenses: | ||||
Operating, maintenance and management | 21,333,781 | 19,719,766 | 42,098,814 | 32,216,328 |
Real estate taxes and insurance | 14,587,524 | 13,667,771 | 28,444,417 | 22,411,216 |
Fees to affiliates | 4,263 | 13,709,333 | 8,550 | 22,136,629 |
Depreciation and amortization | 33,277,511 | 53,455,666 | 67,152,017 | 82,031,561 |
Interest expense | 20,087,353 | 19,715,318 | 39,895,031 | 34,106,272 |
General and administrative expenses | 11,736,380 | 5,272,855 | 23,061,791 | 7,703,154 |
Impairment of real estate | 0 | 5,039,937 | 0 | 5,039,937 |
Total expenses | 101,026,812 | 130,580,646 | 200,660,620 | 205,645,097 |
Loss before other income (expenses) | (15,402,180) | (50,285,052) | (31,878,170) | (71,635,563) |
Other income (expense): | ||||
Gain on sale of real estate, net | 0 | 0 | 0 | 11,384,599 |
Interest income | 98,049 | 134,262 | 203,068 | 387,516 |
Insurance proceeds in excess of losses incurred | 31,873 | 57,689 | 135,360 | 124,412 |
Equity in loss from unconsolidated joint venture | 0 | (2,968,207) | 0 | (3,003,400) |
Fees and other income from affiliates | 1,571,346 | 0 | 3,029,267 | 0 |
Total other income (expense) | 1,701,268 | (2,776,256) | 3,367,695 | 8,893,127 |
Net loss | (13,700,912) | (53,061,308) | (28,510,475) | (62,742,436) |
(Loss) income allocated to noncontrolling interest | (663,253) | 163,314 | (1,441,527) | 163,314 |
Net loss attributable to common stockholders | $ (13,037,659) | $ (53,224,622) | $ (27,068,948) | $ (62,905,750) |
Loss per common share - basic (in dollars per share) | $ (0.12) | $ (0.49) | $ (0.25) | $ (0.71) |
Loss per common share - diluted (in dollars per share) | $ (0.12) | $ (0.49) | $ (0.25) | $ (0.71) |
Weighted average number of common shares outstanding — basic | 109,905,923 | 109,139,963 | 109,896,333 | 88,660,741 |
Weighted average number of common shares outstanding — diluted | 109,905,923 | 109,139,963 | 109,896,333 | 88,660,741 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | SIR Merger Agreement | STAR III Merger Agreement | Common Stock | Total STAR Stockholders’ Equity | Total STAR Stockholders’ EquitySIR Merger Agreement | Total STAR Stockholders’ EquitySTAR III Merger Agreement | Total STAR Stockholders’ EquityCommon 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 | Additional Paid-In CapitalCommon Stock | Cumulative Distributions & Net Losses | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2019 | 52,607,695 | 1,000 | 0 | ||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 274,813,858 | $ 274,813,858 | $ 526,077 | $ 10 | $ 0 | $ 698,453,981 | $ (424,166,210) | $ 0 | |||||||||||
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 | 15,639,455 | $ 693,400,974 | $ 193,893,305 | $ 10,162 | $ 437,753 | $ 122,407 | 15,629,293 | $ 692,963,221 | $ 193,770,898 | |||||||
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 | 0 | $ (10) | $ 10 | ||||||||||||||||
Transfers to 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) | $ (2,907,827) | $ (2,022) | $ (2,905,805) | |||||||||||||||
Distributions declared | (39,979,941) | (39,816,627) | (39,816,627) | (163,314) | |||||||||||||||
Amortization of stock-based compensation | 63,383 | 63,383 | 63,383 | ||||||||||||||||
Net (loss) income | (62,742,436) | (62,905,750) | (62,905,750) | 163,314 | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 109,437,702 | 0 | 1,000 | ||||||||||||||||
Ending balance at Jun. 30, 2020 | 1,085,247,453 | 1,070,797,453 | $ 1,094,377 | $ 0 | $ 10 | 1,596,591,653 | (526,888,587) | 14,450,000 | |||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 108,898,231 | 1,000 | |||||||||||||||||
Beginning balance at Mar. 31, 2020 | 1,139,981,479 | 1,139,981,479 | $ 1,088,982 | $ 10 | 1,588,131,358 | (449,238,871) | 0 | ||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock (in shares) | 688,520 | ||||||||||||||||||
Issuance of common stock | 10,555,300 | 10,555,300 | $ 6,885 | 10,548,415 | |||||||||||||||
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) | (2,110,537) | $ (1,490) | (2,109,047) | |||||||||||||||
Distributions declared | (24,588,408) | (24,425,094) | (24,425,094) | (163,314) | |||||||||||||||
Amortization of stock-based compensation | 20,927 | 20,927 | 20,927 | ||||||||||||||||
Net (loss) income | (53,061,308) | (53,224,622) | (53,224,622) | 163,314 | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 109,437,702 | 0 | 1,000 | ||||||||||||||||
Ending balance at Jun. 30, 2020 | 1,085,247,453 | 1,070,797,453 | $ 1,094,377 | $ 0 | $ 10 | 1,596,591,653 | (526,888,587) | 14,450,000 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 110,070,572 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 1,081,625,455 | 977,302,796 | $ 1,100,706 | 1,603,989,130 | (627,787,040) | 104,322,659 | |||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock (in shares) | 599,213 | ||||||||||||||||||
Issuance of common stock | 7,709,092 | 7,709,092 | $ 5,991 | 7,703,101 | |||||||||||||||
Transfers to redeemable common stock | (5,301,563) | (5,301,563) | (5,301,563) | ||||||||||||||||
Repurchase of common stock (in shares) | (441,645) | ||||||||||||||||||
Repurchase of common stock | 0 | 0 | $ (4,416) | 4,416 | |||||||||||||||
Distributions declared | (34,264,857) | (32,188,951) | (32,188,951) | (2,075,906) | |||||||||||||||
Amortization of stock-based compensation | 750,382 | 750,382 | 750,382 | ||||||||||||||||
Net (loss) income | (28,510,475) | (27,068,948) | (27,068,948) | (1,441,527) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 110,228,140 | ||||||||||||||||||
Ending balance at Jun. 30, 2021 | 1,022,008,034 | 921,202,808 | $ 1,102,281 | 1,607,145,466 | (687,044,939) | 100,805,226 | |||||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 110,187,405 | ||||||||||||||||||
Beginning balance at Mar. 31, 2021 | 1,049,830,990 | 947,432,611 | $ 1,101,874 | 1,605,912,272 | (659,581,535) | 102,398,379 | |||||||||||||
Increase (decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock (in shares) | 199,903 | ||||||||||||||||||
Issuance of common stock | 3,108,489 | 3,108,489 | $ 1,999 | 3,106,490 | |||||||||||||||
Transfers to redeemable common stock | (2,301,562) | (2,301,562) | (2,301,562) | ||||||||||||||||
Repurchase of common stock (in shares) | (159,168) | ||||||||||||||||||
Repurchase of common stock | $ 0 | $ 0 | $ (1,592) | $ 1,592 | |||||||||||||||
Distributions declared | (15,355,645) | (14,425,745) | (14,425,745) | (929,900) | |||||||||||||||
Amortization of stock-based compensation | 426,674 | 426,674 | 426,674 | ||||||||||||||||
Net (loss) income | (13,700,912) | (13,037,659) | (13,037,659) | (663,253) | |||||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 110,228,140 | ||||||||||||||||||
Ending balance at Jun. 30, 2021 | $ 1,022,008,034 | $ 921,202,808 | $ 1,102,281 | $ 1,607,145,466 | $ (687,044,939) | $ 100,805,226 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity - Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Distributions declared per common share (in dollars per share) | $ 0.131 | $ 0.224 | $ 0.292 | $ 0.448 |
Common Stock | ||||
Distributions declared per common share (in dollars per share) | $ 0.131 | $ 0.224 | $ 0.292 | $ 0.448 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (28,510,475) | $ (62,742,436) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 67,152,017 | 82,031,561 |
Fees to affiliates paid in common stock | 0 | 6,620,823 |
Loss on disposal of buildings and improvements | 326,881 | 475,176 |
Amortization of deferred financing costs | 1,097,565 | 809,876 |
Amortization of stock-based compensation | 750,382 | 63,383 |
Amortization of below market leases | (3,343) | (2,594) |
Change in fair value of interest rate cap agreements | (1,203) | 27,194 |
Gain on sale of real estate | 0 | (11,384,599) |
Impairment of real estate | 0 | 5,039,937 |
Amortization of loan premiums | (1,112,825) | (718,264) |
Accretion of loan discounts | 271,776 | 189,824 |
Straight-line of office lease | 7,699 | 0 |
Interest on finance lease furnishings | 193 | 0 |
Insurance claim recoveries | (15,259,001) | (581,954) |
Equity in loss from unconsolidated joint venture | 0 | 3,003,400 |
Changes in operating assets and liabilities: | ||
Rents and other receivables | (8,472,506) | (1,328,708) |
Other assets | 4,766,732 | 2,131,230 |
Accounts payable and accrued liabilities | (6,830,008) | 6,033,823 |
Due to affiliates | (212,975) | (3,600,122) |
Due from affiliates | 168,807 | 0 |
Net cash provided by operating activities | 29,042,267 | 26,067,550 |
Cash Flows from Investing Activities: | ||
Acquisition of real estate investments | (75,966,685) | (69,914,948) |
Cash acquired in connection with the Mergers, net of acquisition costs | 0 | 98,283,732 |
Acquisition of real estate held for development | 0 | (14,270,133) |
Additions to real estate investments | (17,869,569) | (10,434,613) |
Additions to real estate held for development | (9,861,232) | (5,324,771) |
Escrow deposits for pending real estate acquisitions | (1,500,000) | (1,000,000) |
Purchase of interest rate cap agreements | (12,200) | (47,000) |
Net proceeds from sale of real estate investments | 0 | 32,962,285 |
Proceeds from insurance claims | 665,957 | 807,033 |
Cash contribution to unconsolidated joint venture | 0 | (219,900) |
Cash distribution from unconsolidated joint venture | 0 | 360,700 |
Net cash (used in) provided by investing activities | (104,543,729) | 31,202,385 |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of mortgage notes payable | 8,567,133 | 0 |
Principal payments on mortgage notes payable | (4,187,174) | (1,533,980) |
Borrowings from credit facilities | 0 | 198,808,000 |
Payments of commissions on sale of common stock | 0 | (49,951) |
Payment of deferred financing costs | 0 | (6,753,413) |
Distributions to common stockholders | (30,424,673) | (26,030,027) |
Repurchase of common stock | (6,301,563) | (2,907,827) |
Net cash (used in) provided by financing activities | (32,346,277) | 161,532,802 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (107,847,739) | 218,802,737 |
Cash, cash equivalents and restricted cash, beginning of the period | 297,197,306 | 148,539,671 |
Cash, cash equivalents and restricted cash, end of the period | 189,349,567 | 367,342,408 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid, net of amounts capitalized of $560,066 and $262,619 for the six months ended June 30, 2021 and 2020, respectively | 39,859,759 | 31,366,049 |
Supplemental Disclosures of Noncash Flow Transactions: | ||
Distributions payable to non-affiliated shareholders | 4,797,443 | 8,232,272 |
Distributions payable to affiliates | 265,620 | 0 |
Real estate under development placed in service | 17,703,957 | 0 |
Class A-2 OP Units issued for real estate | 0 | 14,450,000 |
Investment management fees payable in shares | 0 | 1,464,982 |
Assumption of mortgage notes payable to acquire real estate | 0 | 81,315,122 |
Premiums on assumed mortgage notes payable | 0 | 945,235 |
Distributions paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan | 7,709,092 | 10,483,613 |
Redeemable common stock | 294,858 | 0 |
Redemptions payable | 2,705,142 | 4,000,000 |
Accounts payable and accrued liabilities from additions to real estate investments | 15,321,147 | 119,152 |
Due to affiliates from additions to real estate investments | 0 | 65,583 |
Accounts payable and accrued liabilities from additions to real estate held for development | 3,129,393 | 2,888,689 |
Affiliate accounts payable and accrued liabilities from additions to real estate held for development | 0 | 137,857 |
Due to affiliates for commissions on sales of common stock | 0 | 21,337 |
Operating and finance lease right-of-use assets, net | 1,566,962 | 136,896 |
Operating and finance lease liabilities, net | 1,595,991 | 148,406 |
Fair value of unconsolidated joint venture assumed in the SIR merger | 0 | 22,128,691 |
February 2021 Winter Storm | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Loss on disposal of buildings and improvements | 14,902,551 | 0 |
Supplemental Disclosures of Noncash Flow Transactions: | ||
Accounts payable related to winter storm | 1,412,017 | 0 |
Insurance claims receivable related to winter storm | 23,164,541 | 0 |
SIR and STAR III Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Premiums on assumed mortgage notes payable | 0 | 14,899,631 |
Discount on assumed mortgage note payable in the SIR and STAR III mergers | 0 | 10,489,075 |
SIR Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Fair value of real estate acquired in merger | 0 | 1,100,742,973 |
Fair value of equity issued to shareholders in merger | 0 | 693,400,974 |
Fair value of debt assumed in merger | 0 | 506,023,982 |
Assets assumed in merger | 0 | 3,553,868 |
Liabilities assumed in merger | 0 | 21,782,302 |
STAR III Merger Agreement | ||
Supplemental Disclosures of Noncash Flow Transactions: | ||
Fair value of real estate acquired in merger | 0 | 479,559,505 |
Fair value of equity issued to shareholders in merger | 0 | 193,893,305 |
Fair value of debt assumed in merger | 0 | 289,407,045 |
Assets assumed in merger | 0 | 2,060,898 |
Liabilities assumed in merger | $ 0 | $ 7,334,616 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Parenthetical - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Capitalized interest | $ 244,822 | $ 193,049 | $ 560,066 | $ 262,619 |
Organization and Business
Organization and Business | 6 Months Ended |
Jun. 30, 2021 | |
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 Company’s former sponsor (“SRI”), at a purchase price of $15.00 per share for an aggregate purchase price of $202,500. SRI is controlled indirectly by Rodney F. Emery, the Company’s Chairman of the board of directors and Chief Executive Officer, through Steadfast REIT Holdings, LLC (“Steadfast Holdings”). Steadfast Apartment Advisor, LLC (the “Former 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 Former Advisor exchanged the Convertible Stock for new non-participating, non-voting Class A convertible stock (the “Class A Convertible Stock”). In connection with the Internalization Transaction (described below), the Company repurchased the Class A Convertible Stock for $1,000. See Note 8 (Stockholders’ Equity) for further details. The Company owns and operates a diverse portfolio of multifamily properties located in targeted markets throughout the United States. As of June 30, 2021, the Company owned 70 multifamily properties and three parcels of land held for the development of apartment homes. The Company’s portfolio is comprised of 21,936 apartment homes, including 95 newly constructed apartment homes placed into service at the Garrison Station development project during the six months ended June 30, 2021. The parcel of land held for the development of the Garrison Station apartments had five of nine residential buildings placed into service comprising 95 of 176 apartment homes during the six months ended June 30, 2021. 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 4 (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 Primary 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. As of June 30, 2021, the Company had issued 112,167,095 shares of common stock for gross offering proceeds of $1,725,738,819, including 8,537,015 shares of common stock issued pursuant to the DRP for gross offering proceeds of $128,009,661. Additionally, on March 6, 2020, the Company issued 56,016,053 shares of common stock in connection with the Mergers described below. On March 9, 2021, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $15.55 as of December 31, 2020. Additional information on the Company’s estimated value per share can be found in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 12, 2021. In connection with the determination of an estimated value per share, the Company’s board of directors determined a price per share for the DRP of $15.55, effective April 1, 2021. 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, continued 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, continued 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, was 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 was intended to qualify 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 4 (Real Estate). Pre-Internalization Operating Partnerships Mergers On August 28, 2020, pursuant to an Agreement and Plan of Merger (the “SIR OP/STAR OP Merger Agreement”), the STAR Operating Partnership merged with and into the SIR OP (the “SIR OP/STAR OP Merger”). The SIR OP/STAR OP Merger was treated for U.S. federal income tax purposes as a tax-deferred contribution by the Company of all of the assets and liabilities of STAR Operating Partnership to SIR OP under Section 721(a) of the Internal Revenue Code. Immediately following the consummation of the SIR OP/STAR OP Merger, on August 28, 2020, pursuant to an Agreement and Plan of Merger (the “Operating Partnership Merger Agreement”), STAR III OP merged with and into SIR OP (the “Operating Partnership Merger” and together with the SIR OP/STAR OP Merger, the “Operating Partnership Mergers”). The Operating Partnership Merger was treated as an “asset over partnership merger” governed by Treasury Regulations Section 1.708-1(c)(3)(i), with SIR OP being the “resulting partnership” and STAR III OP terminating. On August 28, 2020, SIR OP changed its name to “Steadfast Apartment REIT Operating Partnership, L.P.” (the “Operating Partnership”). In addition, on August 28, 2020, prior to completion of the Operating Partnership Mergers, the Company acquired STAR III Merger Sub. On August 28, 2020, SIR Merger Sub, as the initial general partner of the Operating Partnership, transferred all of its general partnership interests to the Company, and the Company was admitted as a substitute general partner of the Operating Partnership. On August 28, 2020, the Company, Steadfast Income Advisor, LLC, the initial limited partner of the Operating Partnership (“SIR Advisor”), Steadfast Apartment Advisor III, LLC, a Delaware limited liability company and the special limited partner of the Operating Partnership (“STAR III Advisor”), Wellington VVM LLC, a Delaware limited liability company and limited partner of the Operating Partnership (“Wellington”), and Copans VVM, LLC, a Delaware limited liability company and limited partner of the Operating Partnership (“Copans” and together with “Wellington”, “VV&M”), entered into a Second Amended and Restated Agreement of Limited Partnership of Steadfast Apartment REIT Operating Partnership, L.P. (the “Second A&R Partnership Agreement”) in order to, among other things, reflect the consummation of the Operating Partnership Mergers. The purpose of the Operating Partnership Mergers was to simplify the Company’s corporate structure so that the Company has a single operating partnership that is a direct subsidiary of the Company. Internalization Transaction On August 31, 2020, the Operating Partnership and the Company entered into a series of transactions and agreements (such transactions and agreements hereinafter collectively referred to as the “Internalization Transaction”), with SRI, which provided for the internalization of the Company’s external management functions previously provided by the Former Advisor and its affiliates. Prior to the Internalization Closing (as defined herein), which took place contemporaneously with the execution of the Contribution & Purchase Agreement (as defined herein) on August 31, 2020 (the “Internalization Closing”), Steadfast Investment Properties, Inc., a California corporation (“SIP”), Steadfast REIT Services, Inc., a California corporation (“REIT Services”), and their respective affiliates owned and operated all of the assets necessary to operate the Company and its subsidiaries as a self-managed company and employed all the employees necessary to operate as a self-managed company. Pursuant to a Contribution and Purchase Agreement (the “Contribution & Purchase Agreement”) between the Company, the Operating Partnership and SRI, SRI contributed to the Operating Partnership all of the membership interests in STAR RS Holdings, LLC, a Delaware limited liability company (“SRSH”), and the assets and rights necessary to operate as a self-managed company in all material respects, and the liabilities associated with such assets and rights in exchange for $124,999,000, which was paid as follows: (1) $31,249,000 in cash and (2) 6,155,613.92 Class B OP units of limited partnership interests in the Operating Partnership (the “Class B OP Units”) having the agreed value set forth in the Contribution & Purchase Agreement of $15.23 per Class B OP Unit. In addition, the Company purchased all of the Class A Convertible Stock of the Company held by the Former Advisor for $1,000. As a result of the Internalization Transaction, the Company became self-managed and acquired components of the advisory, investment management and property management operations of the Former Advisor by hiring the Transferring Employees (as defined in the Contribution & Purchase Agreement), who comprise the workforce necessary for the management and day-to-day real estate and accounting operations of the Company and the Operating Partnership.The Former Advisor is owned by SRI, the Company’s former sponsor. Mr. Emery, the Company’s Chairman of the board of directors and Chief Executive Officer, owns a 48.6% interest in Steadfast Holdings, the largest owner of SRI. Concurrently with, and as a condition to the execution and delivery of the Contribution & Purchase Agreement, the Company, through STAR REIT Services, LLC, a Delaware limited liability company and indirect subsidiary of the Company (“SRS”), entered into employment agreements with certain key employees. For more information on the Internalization Transaction, see Note 3 (Internalization Transaction). On July 16, 2021, the Company received a derivative demand letter addressed to the Board, purportedly sent on behalf of two stockholders, relating to the Internalization Transaction. The letter demanded that the Board appoint a committee to investigate the Internalization Transaction and, among other things, determine whether there exists any basis for the Company to pursue claims relating to that transaction, including for recovery of payments made in the transaction. The Company is considering the request. The Former Advisor Prior to the Internalization Transaction, the business of the Company was externally managed by the Former Advisor, pursuant to the Amended and Restated Advisory Agreement effective as of March 6, 2020, by and between the Company and the Former Advisor (as may be amended, the “Advisory Agreement”). On August 31, 2020, prior to the Internalization Closing, the Company, the Former Advisor and the Operating Partnership entered into a Joinder Agreement (the “Joinder Agreement”) pursuant to which the Operating Partnership became a party to the Advisory Agreement. On August 31, 2020, prior to the Internalization Closing, the Former Advisor and the Company entered into the First Amendment to the Amended and Restated Advisory Agreement in order to remove certain restrictions in the Advisory Agreement related to business combinations and to provide that any amounts accrued to the Former Advisor commencing on September 1, 2020 are paid in cash to the Former Advisor by the Operating Partnership (the “First Amendment”). In connection with the Internalization Transaction, SRS assumed the rights and obligations of the Advisory Agreement from the Former Advisor. The Operating Partnership Substantially all of the Company’s business is conducted through the Operating Partnership. The Company is the sole general partner of the Operating Partnership. The Operating Partnership owns, directly or indirectly, all of the properties that the Company has acquired. As of June 30, 2021, the Company owned approximately 94% of the operating partnership units of the Operating Partnership (the “OP Units”). As a result of the Internalization Transaction, SRI owns approximately 5% of the OP Units of the Operating Partnership, including approximately 6,155,613.92 Class B OP Units owned by SRI as of June 30, 2021. The remaining approximate 1% of the OP Units are owned by VV&M, unaffiliated third parties in the form of Class A-2 OP Units (as defined below). The Operating Partnership may conduct certain activities through the Company’s taxable REIT subsidiary, which is an indirect wholly-owned subsidiary of the Operating Partnership. As a condition to the Internalization Closing, on August 31, 2020, the Company, as the general partner and parent of the Operating Partnership, SRI and VV&M entered into a Third Amended and Restated Agreement of Limited Partnership of the Operating Partnership (the “Operating Partnership Agreement”) to restate the Second A&R Partnership Agreement in order to, among other things, remove references to the limited partner interests previously held by SIR Advisor and STAR III Advisor, reflect the consummation of the contribution, and designate Class B OP Units that were issued as consideration pursuant to the Internalization Transaction. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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, 2020. 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, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2021. 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 the 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 Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“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, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020. Noncontrolling interests Noncontrolling interests represent the portion of equity that the Company does not own in an entity that is consolidated. The Company’s noncontrolling interests are comprised of Class A-2 operating partnership units (“Class A-2 OP Units”) and Class B OP Units of the Operating Partnership. 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, 2021, the Company’s noncontrolling interests qualified as permanent equity. For more information on the Company’s noncontrolling interests, see Note 9 (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. Casualty loss The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage and business interruption. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in other income when the proceeds are received. During the six months ended June 30, 2021, the Company incurred property damage and other losses of $23,164,541, which was recorded as general and administrative expenses, with corresponding insurance recovery income up to the amount of losses incurred (as described above) included in general and administrative expenses in the accompanying consolidated statements of operations. The Company also recorded insurance recoveries of $23,164,541 for the estimated insurance claims proceeds in the amount of total losses incurred (as described above) as an increase in rents and other receivables. 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 805-50, Business Combinations-Related Issues (“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, 2021 and 2020, all of the Company’s acquisitions of real estate properties, including pursuant to the Mergers, 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 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. No impairment charge was recorded during the three and six months ended June 30, 2021. The Company recorded an impairment charge of $5,039,937 related to two of its real estate assets for each of the three and six months ended June 30, 2020. Goodwill Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of a business acquired. The Company’s goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. The Company performed its annual assessment on October 1, 2020. The Company recorded goodwill during the year ended December 31, 2020, in connection with the Internalization Transaction. No impairment charge was recorded during the three and six months ended June 30, 2021. See Note 3 (Internalization Transaction) 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 ASC 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 consolidated 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 considered a lease modification pursuant to ASC 842. This means both the lessor and lessee need not remeasure and reallocate the consideration in the lease contract, reassess the lease term or reassess lease classification and lease liability, provided that the concessions are considered to be a separate contract. 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 as described above. 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 fiscal 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 COVID-19 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 any other payment plans during the remaining months in fiscal year 2020 due to the reduced demand of such payment plans. In January 2021, the Company began offering an extension to the COVID-19 Payment Plan (the “Extension Plan”), that allows eligible residents to defer their rent, which is collected by the Company in monthly installment payments over the lesser of the duration of the current lease term or a maximum of three months (with the exception of certain states that allow a maximum of six months deferral). Under the Extension Plan, no concessions are offered for residents with a payment plan duration of two months or less and residents who opted for the COVID-19 Payment Plan are not eligible to participate in the Extension Plan unless they paid off the amounts due under the COVID-19 Payment Plan. During the three months ended September 30, 2020, the Company initiated a debt forgiveness program for certain qualifying residents that were experiencing hardship due to COVID-19 and who were in default of their lease payments (the “Debt Forgiveness Program”). Pursuant to the Debt Forgiveness Program, the Company offered qualifying residents an opportunity to terminate their lease without being liable for any unpaid rent and penalties. The Company determined that accounts receivable of $2,110,657 related to the Debt Forgiveness Program are not probable of collection and therefore included these accounts in its reserve. The Company elected not to evaluate whether the COVID-19 Payment Plans, the Debt Forgiveness Program and the Extension Plan are lease modifications and therefore the Company’s policy is to account for the lease contracts with COVID-19 Payment Plans, Debt Forgiveness Program and the Extension Plan as if no lease modifications occurred. Under this accounting method, a lessor with an operating lease may account for the concession (which in this case only applies to the COVID-19 Payment Plans) 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, 2021 and December 31, 2020, the Company reserved $3,080,227 and $2,245,067 of accounts receivables, respectively, which are considered not probable of collection. 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 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, 2021 and 2020. 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. 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, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements (1) $ — $ 21,255 $ — December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements (1) $ — $ 7,852 $ — _______________ (1) See Note 14 (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. 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, due from affiliates, accounts payable and accrued liabilities, distributions payable, distributions payable to affiliates, 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, distributions payable, amounts due from affiliates, amounts due to affiliates and distributions payable to affiliates to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. 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, 2021 and December 31, 2020, the fair value of the notes payable was $2,265,796,735 and $2,246,242,677, respectively, compared to the carrying value of $2,133,882,146 and $2,129,245,671, respectively. Restricted Cash Restricted cash represents those cash accounts for which the use of funds is restricted by loan covenants and a cash account established in connection with a letter of credit to fund future workers compensation claims. As of June 30, 2021 and December 31, 2020, the Company had a restricted cash balance of $28,399,975 and $38,998,980, respectively, 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 well as an amount set aside in connection with a letter of credit. 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, 2021 and 2020: June 30, 2021 2020 Cash and cash equivalents $ 160,949,592 $ 330,674,998 Restricted cash 28,399,975 36,667,410 Total cash, cash equivalents and restricted cash $ 189,349,567 $ 367,342,408 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 month ended January 31, 2021, were based on daily record dates and calculated at a rate of $0.002466 per share of the Company’s common stock per day during the period from January 1, 2021 through January 31, 2021. On January 12, 2021, the Company’s board of directors determined to reduce the daily distribution amount to $0.001438 per share commencing on February 1, 2021 and ending February 28, 2021, which was extended for the months of March, April, May, June and July 2021. As a result, distributions declared during the period from February 1, 2021 through June 30, 2021, were based on daily record dates and calculated at a rate of $0.001438 per share of the Company’s common stock per day. 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, 2021, the Company declared distributions totaling $0.131 and $0.292 per share of common stock, respectively. 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. Lessee Accounting In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires leases with original lease terms of more than 12 months to be recorded on the balance sheet. For leases with terms greater than 12 months, a right-of-use (“ROU”) lease asset and a lease liability are recognized on the balance sheet at commencement date based on the present value of lease payments over the lease term. Lease renewal or termination options are included in the lease asset and lease liability only if it is reasonably certain that the option to extend or to terminate would be exercised. As the implicit rate in most leases are not readily determinable, the Company’s incremental borrowing rate for each lease at commencement date is used to determine the present value of lease payments. Consideration is given to the Company’s recent debt financing transactions, as well as publicly available data for instruments with similar characteristics, adjusted for the respective lease term, when estimating incremental borrowing rates. Lease expense is recognized over the lease term based on an effective interest method for finance leases and on a straight-line basis for operating leases. On January 1, 2019, the Company adopted ASU 2016-02 and its related amendments (collectively, “ASC 842”) using the modified retrospective method. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward its original assessment of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The Company also elected the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. See Note 15 (Leases). Equity-Based Compensation The Company’s stock-based compensation consists of restricted stock issued to key employees and independent directors of the Company. The Company accounts for equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant and recognized on a straight-line basis over the requisite service period of the awards. The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within general and administrative expenses in the consolidated statements of operations. 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 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. 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. Segment Disclosure The Company has determined |
Internalization Transaction
Internalization Transaction | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Internalization Transaction | Internalization Transaction On August 31, 2020, the Operating Partnership and the Company completed the Internalization Transaction with SRI, which provided for the internalization of the Company’s external management functions provided by the Former Advisor and its affiliates. Pursuant to the Contribution & Purchase Agreement between the Company, the Operating Partnership and SRI, SRI contributed to the Operating Partnership all of the membership interests in SRSH, and the assets and rights necessary to operate as a self-managed company in all material respects, and the liabilities associated with such assets and rights in exchange for $124,999,000, which was paid as follows: (1) $31,249,000 in cash consideration and (2) 6,155,613.92 Class B OP Units having the agreed value of $15.23 per Class B OP Unit. The Company also purchased all of the Class A Convertible Stock of the Company held by the Former Advisor for $1,000. As a result of the Internalization Transaction, the Company became self-managed and acquired the advisory, investment management and property management operations of the Former Advisor by hiring the Transferring Employees (as defined in the Contribution & Purchase Agreement), who comprise the workforce necessary for the management and day-to-day real estate and accounting operations of the Company and the Operating Partnership. Fair Value of Consideration Transferred The Company accounted for the Internalization Transaction as a business combination under the acquisition method of accounting. Pursuant to the terms of the Internalization Transaction, the following consideration was given in exchange for all of the membership interests in SRSH: Amount Cash consideration (1) $ 31,249,000 Class B OP Units issued 6,155,613.92 Fair value per Class B OP Unit $ 15.23 Fair value of OP Unit Consideration 93,750,000 Promote price (2) 1,000 Accounting value of total consideration $ 125,000,000 _______________ (1) Represents the contractual cash consideration before adjustments to reflect affiliates assets acquired in the Internalization Transaction of $2,717,634 and affiliates liabilities assumed in the Internalization Transaction of $4,701,436. (2) Represents the repurchase of Class A Convertible Stock by the Company. Assets Acquired and Liabilities Assumed The Internalization Transaction was accounted for as a business combination under the acquisition method of accounting under ASC 805, which requires, among other things, the assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date. During the year ended December 31, 2020, the Company finalized the purchase price allocation of the fair value of consideration transferred (described above) for the Internalization Transaction. The following table summarizes the finalized purchase price allocation as of the date of the Internalization Transaction: Amount Assets: Accounts receivable from affiliates $ 3,908,946 Finance lease right-of-use asset 20,925 Other assets 49,919 Property management agreements intangibles (1) 815,000 Operating lease right-of-use asset 1,651,415 Repurchase of Class A Convertible Stock 1,000 Goodwill 125,220,448 Total assets acquired 131,667,653 Liabilities: Accrued personnel costs (4,995,313) Finance lease liability (20,925) Operating lease liability (1,651,415) Total liabilities assumed (6,667,653) Net assets acquired $ 125,000,000 _______________ (1) The intangible assets acquired consist of property management agreements that the Company, acting as advisor and property manager through certain subsidiaries, has with affiliates of SRI (as amended from time to time, the “SRI Property Management Agreements”). The value of the SRI Property Management Agreements was determined based on a discounted cash flow valuation of the projected revenues of the acquired agreements. The SRI Property Management Agreements are subject to an estimated useful life of one year. As of June 30, 2021, the SRI Property Management Agreements were approximately 83% amortized. Goodwill In connection with the Internalization Transaction, the Company recorded goodwill of $125.2 million as a result of the consideration exceeding the fair value of the net assets acquired. Goodwill represents the estimated future benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded represents the Company’s acquired workforce and its ability to generate additional opportunities for revenue and raise additional funds. Pro Forma Financial Information (unaudited) The following condensed pro forma operating information is presented as if the Internalization Transaction and Mergers occurred in 2019 and had been included in operations as of January 1, 2019. The operations acquired in the Internalization Transaction earned $96.5 million in revenue in 2019, approximately $93.9 million of which was earned from the Company and will be eliminated in the Company’s consolidated financial statements on a post-acquisition basis, and approximately $2.5 million of which was earned pursuant to the SRI Property Management Agreements and will be recurring revenue to the Company resulting in an immaterial impact on the Company’s net loss of approximately $0.4 million. The pro forma operating information excludes certain nonrecurring adjustments, such as acquisition fees and expenses incurred, to reflect the pro forma impact the acquisition would have on earnings on a continuous basis: Year Ended December 31, 2020 2019 Revenue $ 303,851,813 $ 323,258,776 Net income (loss) (1)(2) $ (109,151,163) $ 29,545,827 Net income (loss) attributable to noncontrolling interests $ (5,759,798) $ 1,585,124 Net income (loss) attributable to common stockholders (3) $ (103,391,365) $ 27,960,703 Net income (loss) attributable to common stockholders per share - basic and diluted $ (1.04) $ 0.26 _______________ (1) The incremental cost of hiring the existing workforce responsible for the Company’s real estate management and operations of $17,906,923 and $17,742,481, was included in pro forma expenses in arriving at the pro forma net income (loss) for the years ended December 31, 2020 and 2019, respectively. The pro forma impact of the Internalization Transaction on the Company’s historical results of operations based on the historical net income of SRI and its affiliates was $19,083,158 for the year ended December 31, 2019. (2) Contemporaneously with the Internalization Closing, the Company hired 634 employees, previously employed by SRI and its affiliates, to operate all of the assets necessary to operate the business of the Company. (3) Amount is net of net income (loss) attributable to noncontrolling interests and distributions to preferred shareholders. |
Real Estate
Real Estate | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Real Estate | Real Estate Current Period Acquisitions During the three and six months ended June 30, 2021, the Company acquired one multifamily real estate property, which was determined to be an asset acquisition. The following is a summary of the real estate property acquired during the six months ended June 30, 2021: Purchase Price Allocation Property Name Location Purchase Date Homes Land Buildings and Improvements Tenant Origination and Absorption Costs Total Purchase Price Ballpark Apartments at Huntsville, AL 6/29/2021 274 $ 3,773,236 $ 72,579,544 $ 1,113,905 $ 77,466,685 As of June 30, 2021, the Company owned 70 multifamily properties and three parcels of land held for the development of apartment homes. The Company’s portfolio is comprised of 21,936 apartment homes, including 95 newly constructed apartment homes placed into service at the Garrison Station development project during the six months ended June 30, 2021. The total acquisition price of the Company’s multifamily real estate portfolio was $3,224,081,403, excluding land held for the development of apartment homes of $30,288,753. As of June 30, 2021 and December 31, 2020, the Company’s portfolio was approximately 96.2% and 95.4% occupied and the average monthly rent was $1,198 and $1,173, respectively. As of June 30, 2021 and December 31, 2020, investments in real estate and accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2021 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Investments in real estate $ 343,297,680 $ 2,984,948,698 $ 1,682,900 $ 3,329,929,278 $ 30,288,753 Less: Accumulated depreciation and amortization — (461,637,726) (97,751) (461,735,477) — Net investments in real estate and related lease intangibles $ 343,297,680 $ 2,523,310,972 $ 1,585,149 $ 2,868,193,801 $ 30,288,753 December 31, 2020 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Investments in real estate $ 337,322,234 $ 2,882,411,683 $ 1,752,793 $ 3,221,486,710 $ 39,891,218 Less: Accumulated depreciation and amortization — (397,413,838) (330,839) (397,744,677) — Net investments in real estate and related lease intangibles $ 337,322,234 $ 2,484,997,845 $ 1,421,954 $ 2,823,742,033 $ 39,891,218 During the six months ended June 30, 2021 and 2020, the Company wrote off $14,902,551 and $0, respectively, of fixed assets related to the damage caused to the Company’s multifamily properties impacted by the winter storm that took place in February 2021. Total depreciation and amortization expenses were $33,277,511 and $67,152,017 for the three and six months ended June 30, 2021, respectively, and $53,455,666 and $82,031,561 for the three and six months ended June 30, 2020, respectively. Depreciation of the Company’s buildings and improvements was $32,708,712 and $65,752,765 for the three and six months ended June 30, 2021, and $33,315,155 and $56,066,977 for the three and six months ended June 30, 2020, respectively. Depreciation of the Company’s acquired furniture and fixtures in the Internalization Transaction was $15,187 and $28,186 for the three and six months ended June 30, 2021, respectively, and $0 for each of the three and six months ended June 30, 2020, respectively. Amortization of the Company’s intangible assets was $553,612 and $1,371,066 for the three and six months ended June 30, 2021, respectively, and $20,140,511 and $25,964,584 for the three and six months ended June 30, 2020, respectively. Amortization of the Company’s tenant origination and absorption costs was $343,434 and $950,710 for the three and six months ended June 30, 2021, respectively, and $20,138,302 and $25,961,107 for the three and six months ended June 30, 2020, 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 operating ROU assets was $3,367 and $6,734 for the three and six months ended June 30, 2021, respectively, and $2,209 and $3,477 for the three and six months ended June 30, 2020, respectively. This represents the amortization of initial indirect costs included in the measurement of the operating ROU assets. Amortization of the Company’s SRI Property Management Agreements was $206,811 and $413,622 for the three and six months ended June 30, 2021, respectively, and $0 for each of the three and six months ended June 30, 2020 Amortization of the Company’s other intangible assets, which consist of below-market leases, was $1,671 and $3,342 for the three and six months ended June 30, 2021 and $1,671 and $2,594 for the three and six months ended June 30, 2020, respectively, 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 ten years. Operating Leases As of June 30, 2021, the Company’s real estate portfolio comprised 21,936 residential apartment homes and was 98.1% leased by a diverse group of residents. For the three and six months ended June 30, 2021 and 2020, 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 typically consist of lease durations equal to 12 months or less. The commercial tenant leases consist of remaining lease durations varying from six 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 $9,011,485 and $8,545,977 as of June 30, 2021 and December 31, 2020, respectively. The future minimum rental receipts from the Company’s properties under non-cancelable operating leases attributable to commercial tenants as of June 30, 2021, and thereafter is as follows: July 1 to December 31, 2021 $ 149,501 2022 274,149 2023 280,777 2024 288,703 2025 296,860 Thereafter 1,059,469 $ 2,349,459 As of June 30, 2021 and December 31, 2020, 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, 2021, 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 (1) Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 9,879,800 $ 12,348,983 Arista at Broomfield Broomfield, CO 3/13/2020 7,283,803 1,666,615 8,950,418 Flatirons Broomfield, CO 6/19/2020 8,574,704 414,649 8,989,353 $ 18,327,690 $ 11,961,064 $ 30,288,754 _______________ (1) The Company is developing Garrison Station, which consists of nine residential buildings comprised of 176 apartment homes. During the six months ended June 30, 2021, five buildings comprised of 95 apartment homes were placed in service totaling $17,703,957, and are included in total real estate held for investment, net in the accompanying consolidated balance sheets. 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), each $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 estimated value per share at the time of Mergers $ 15.84 $ 15.84 Value of STAR’s 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 shares of the Company’s common stock upon consummation of the Mergers. The following table presents 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 Buildings and improvements 959,337,747 411,461,858 Acquired intangibles 27,027,759 10,041,373 Other assets 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, net $ (506,023,981) $ (289,407,045) Other liabilities (46,135,318) (17,698,011) Total liabilities: $ (552,159,299) $ (307,105,056) Fair value of net assets acquired $ 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 Merger Agreements 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. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 6 Months Ended |
Jun. 30, 2021 | |
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”). On July 16, 2020 (the “JV Disposition Date”), the Company sold its joint venture interest for $19,278,280 to an affiliate of the general partner of the Joint Venture. The Company did not exercise significant influence, nor did it control the Joint Venture and had accounted for its former investment in the Joint Venture under the equity method of accounting. Income, losses, contributions and distributions were generally allocated based on the members’ respective equity interests. The Company recognized an other-than-temporary impairment (“OTTI”) on its investment in the Joint Venture of $2,442,411 during the three months ended June 30, 2020. The OTTI was 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 was 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. As of the JV Disposition Date, the book value of the Company’s investment in the Joint Venture was $18,955,478, which included an accounting outside basis difference of $8,067,010, net and capitalized transaction costs of $594,993, net. The accounting outside basis difference represented 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 the JV Disposition Date. The capitalized transaction costs relate to acquiring the interest in the Joint Venture through the consummation of the SIR Merger. During the three and six months ended June 30, 2020, $425,966 and $432,442, respectively, of amortization of the basis difference was included in equity in loss from unconsolidated joint venture on the accompanying consolidated statements of operations. The Company recorded the gain on sale of the investment in unconsolidated joint venture of $66,802 in equity in loss from unconsolidated joint venture on the accompanying consolidated statements of operations. The Company received distributions of $0 during each of the three and six months ended June 30, 2021 and $242,700 and $360,700 during the three and six months ended June 30, 2020, related to its investment in the Joint Venture, respectively. Unaudited financial information for the Joint Venture for the three and six months ended June 30, 2020, is summarized below: Three Months Ended June 30, 2020 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 loss from unconsolidated joint venture $ (2,968,207) $ (3,003,400) |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of June 30, 2021 and December 31, 2020, other assets consisted of: June 30, 2021 December 31, 2020 Prepaid expenses $ 1,867,500 $ 6,446,847 SRI Property Management Agreements, net 135,830 543,332 Interest rate cap agreements (Note 14) 21,255 7,852 Other deposits 853,917 649,470 Corporate computers, net 166,622 132,708 Lease right-of-use assets, net (Note 15) (1) 1,609,503 2,145,505 Other assets $ 4,654,627 $ 9,925,714 ____________________ (1) As of June 30, 2021, lease ROU assets, net included finance lease ROU asset, net of $10,725 and operating ROU assets, net of $1,598,778. As of December 31, 2020, lease ROU assets, net included finance lease ROU asset, net of $16,845 and operating ROU assets, net of $2,128,660. Amortization of the Company’s SRI Property Management Agreements was $206,811 and $413,622 for the three and six months ended June 30, 2021, respectively, and $0 for each of the three and six months ended June 30, 2020. Amortization of the Company’s initial indirect costs included in the measurement of the operating ROU assets for the three and six months ended June 30, 2021, was $3,367 and $6,734, respectively. Amortization of the Company’s initial indirect costs included in the measurement of the operating ROU assets for the three and six months ended June 30, 2020, was $2,209 and $3,477, respectively. See Note 15 (Leases) for details. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020. June 30, 2021 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 10/16/2022 - 1/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.31% 2.22% $ 121,210,315 Fixed rate 42 10/1/2022 - 10/1/2056 3.19% 4.66% 3.85% 1,270,499,536 Mortgage notes payable, gross 46 3.71% 1,391,709,851 Premiums and discounts, net (2) 2,968,685 Deferred financing costs, net (3) (6,081,617) Mortgage notes payable, net $ 1,388,596,919 December 31, 2020 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 10/16/2022 - 1/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR +2.31% 2.27% $ 113,452,357 Fixed rate 42 10/1/2022 - 10/1/2056 3.19% 4.66% 3.85% 1,273,877,535 Mortgage notes payable, gross 46 3.72% 1,387,329,892 Premiums and discount, net (2) 3,809,734 Deferred financing costs, net (3) (6,756,841) Mortgage notes payable, net $ 1,384,382,785 ________________ (1) See Note 14 (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, 2021 and December 31, 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: Net Debt Premium (Discount) before Amortization as of June 30, 2021 Amortization of Debt (Premium) Discount During the Six Months Ended June 30, 2021 Unamortized Net Debt Premium (Discount) as of June 30, 2021 $ 15,375,305 $ (2,949,400) $ 12,425,905 (10,179,526) 722,306 (9,457,220) $ 5,195,779 $ (2,227,094) $ 2,968,685 Net Debt Premium (Discount) before Amortization as of December 31, 2020 Amortization of Debt (Premium) Discount During the Year Ended December 31, 2020 Unamortized Net Debt Premium (Discount) as of December 31, 2020 $ 15,375,305 $ (1,836,575) $ 13,538,730 (10,179,526) 450,530 (9,728,996) $ 5,195,779 $ (1,386,045) $ 3,809,734 (3) Accumulated amortization related to deferred financing costs as of June 30, 2021 and December 31, 2020 was $4,170,407 and $3,495,183, 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 Garrison Station development project in an aggregate principal amount not to exceed $19,800,000 for a 36 month initial term and two 12 month mini-perm extensions. The rate of interest on the construction loan is daily LIBOR plus 2.00%, which then reduces to daily LIBOR plus 1.80% upon achieving completion as defined in the construction loan agreement and at a 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 0.1% which will be waived if permanent financing is secured through PNC Bank or one of its affiliates. As of June 30, 2021 and December 31, 2020, the principal outstanding balance on the construction loan was $14,831,682 and $6,264,549, respectively, and was included within mortgage notes payable, net on the accompanying consolidated balance sheets. 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 Newmark Group, Inc., formerly 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, 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 substitute collateral for the three multifamily properties disposed of and released from the MCFA. 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: (1) a fixed rate loan in the aggregate principal amount of $331,001,400 that accrues interest at 4.43% per annum; (2) a fixed rate loan in the aggregate principal amount of $137,917,250 that accrues interest at 4.57% per annum; (3) a variable rate loan in the aggregate principal amount of $82,750,350 that accrues interest at the one-month LIBOR plus 1.70% per annum; and (4) a fixed rate loan in the aggregate principal amount of $40,468,000 that accrues interest at 3.34% per annum. 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. 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: (1) a fixed rate loan in the aggregate principal amount of $79,170,000 that accrues interest at 2.82% per annum; and (2) a variable rate loan in the aggregate principal amount of $79,170,000 that accrues interest at the one-month LIBOR plus 2.135% per annum. 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 Former 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 PNC Bank in an amount not to exceed $65,000,000. The Revolver provides for advances (each, a “Revolver Loan”) 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. Advances made under the Revolver are secured by the Landings of Brentwood property, 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 each Revolver Loan from the following options: (1) a fluctuating rate per annum equal to the sum of the daily LIBOR rate plus the daily LIBOR rate spread or (2) a fluctuating rate per annum equal to the base rate plus the alternate rate spread. No amounts were outstanding on the Revolver at June 30, 2021 and December 31, 2020. As of June 30, 2021 and December 31, 2020, 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, 2021 December 31, 2020 Principal balance on MCFA, gross $ 592,137,000 $ 592,137,000 Principal balance on PNC MCFA, gross 158,340,000 158,340,000 Deferred financing costs, net on MCFA (1) (3,202,518) (3,436,850) Deferred financing costs, net on PNC MCFA (2) (1,599,176) (1,689,935) Deferred financing costs, net on Revolver (3) (390,079) (487,329) Credit facilities, net $ 745,285,227 $ 744,862,886 _______________ (1) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2021 and December 31, 2020, was $1,532,597 and $1,298,265, respectively. (2) Accumulated amortization related to deferred financing costs in respect of the PNC MCFA as of June 30, 2021 and December 31, 2020, was $190,042 and $99,283, respectively. (3) Accumulated amortization related to deferred financing costs in respect of the Revolver as of June 30, 2021 and December 31, 2020, was $198,799 and $101,549, 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 29 $ 791,020,471 Maturity and Interest The following is a summary of the Company’s aggregate maturities as of June 30, 2021: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2021 2022 2023 2024 2025 Thereafter Principal payments on outstanding debt (1) $ 2,142,186,851 $ 4,475,904 $ 49,688,647 $ 60,661,183 $ 58,178,998 $ 197,591,629 $ 1,771,590,490 ________________ (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, 2021, the Company was in compliance with all debt covenants. For the three and six months ended June 30, 2021, the Company incurred interest expense of $20,087,353 and $39,895,031, respectively. Interest expense for the three and six months ended June 30, 2021, includes amortization of deferred financing costs totaling $548,784 and $1,097,565, net unrealized loss (gain) from the change in fair value of interest rate cap agreements of $9,617 and $(1,203), amortization of net loan premiums and discounts of $(423,160) and $(841,049), capitalized interest of $244,822 and $560,066, credit facility commitment fees of $31,417 and $65,991, and imputed interest on the finance lease portion of the sublease of $86 and $193. 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, 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 of $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 refinance 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. Interest expense of $6,586,461 and $6,806,695 was payable as of June 30, 2021 and December 31, 2020, 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, 2021 | |
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 SRI, the Company’s former 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. As of June 30, 2021, the Company had issued 112,167,095 shares of common stock for offering proceeds of $1,640,901,685, including 8,537,015 shares of common stock issued pursuant to the DRP and 56,016,053 shares of common stock issued in connection with the Mergers (described below), for total DRP proceeds of $128,009,661, 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. 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. As further discussed in Note 11 (Incentive Award Plan and Independent Director Compensation), the shares of restricted common stock granted to the Company’s independent directors prior to the Internalization Transaction, vest and become non-forfeitable in four two The issuance and vesting activity for the six months ended June 30, 2021 and year ended December 31, 2020, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended June 30, 2021 Year Ended December 31, 2020 Nonvested shares at the beginning of the period 33,369 7,497 Granted shares — 31,288 Vested shares (1,667) (5,416) Nonvested shares at the end of the period 31,702 33,369 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2021 and year ended December 31, 2020 was as follows: Grant Year Weighted Average Fair Value 2020 $ 15.36 2021 N/A Included in general and administrative expenses is $63,168 and $126,336 for the three and six months ended June 30, 2021, respectively, and $20,928 and $63,383 for the three and six months ended June 30, 2020, respectively, for compensation expense related to the issuance of restricted common stock. As of June 30, 2021, the compensation expense related to the issuance of the restricted common stock not yet recognized was $339,830. The weighted average remaining term of the restricted common stock was approximately 0.9 years as of June 30, 2021. As of June 30, 2021, no shares of restricted common stock issued to the independent directors have been forfeited. Issuance of Restricted Stock Awards to Key Employees 2020 Restricted Stock Awards In connection with the Internalization Transaction, on September 1, 2020, certain key employees of the Company were issued restricted stock grants under the terms of the Company’s Amended and Restated 2013 Incentive Plan (the “Incentive Award Plan”), which grants had been approved by the board of directors and the special committee formed for the purpose of reviewing, considering, investigating, evaluating, proposing and negotiating the Mergers (the “Special Committee”). The grants to the key employees of the Company were made pursuant to a restricted stock grant agreement. The grants vest 50% on the second anniversary of the grant date and 50% on the third anniversary of the grant date (collectively, the “2020 Restricted Stock Awards”). The 2020 Restricted Stock Award provides that vesting is subject to the key employee’s continued employment with the Company through each applicable vesting date, except in the event of death or disability, in which case, any unvested portion of the awards will become fully vested. In addition, the Restricted Stock Award provides the key employee with rights as a stockholder in respect of the awards’ vested and unvested shares, including the right to vote and the right to dividends. In the event of a termination of a key employee’s employment by the Company without cause or by the key employee for good reason within 12 months following a change in control, any unvested portion of the 2020 Restricted Stock Award will become fully vested at the time of such termination, provided that if the 2020 Restricted Stock Award is unvested at the time of a change in control of the Company and is not assumed or substituted for equivalent awards as part of the change in control transaction, the 2020 Restricted Stock Awards will become fully vested at the time of the change in control transaction. The fair value of grants issued was approximately $2,850,000. 2021 Restricted Stock Awards Pursuant to employment agreements with key employees, on March 15, 2021, the Company granted key employees an award of time-based restricted stock (the “Time-Based 2021 Award”) with a total grant date fair value of $1,512,000 subject to the terms of the Incentive Award Plan. The Time-Based 2021 Awards vest ratably over three years following the grant date, subject to the key employee’s continuous employment through the applicable vesting dates, with certain exceptions. Total compensation expense related to the 2020 Restricted Stock Awards and the Time-Based 2021 Award for the three and six months ended June 30, 2021 was $363,507 and $624,046, respectively, and was included in general and administrative costs on the accompanying consolidated statements of operations. As of June 30, 2021, the compensation expense related to the issuance of the restricted common stock to the key employees not yet recognized was $3,421,278. The weighted average remaining term of the restricted common stock issued to the Company’s key employees was approximately 1.7 years as of June 30, 2021. As of June 30, 2021, no shares of restricted common stock issued to the Company’s key employees have been forfeited. Investment Management Fee Paid to Former Advisor in Shares Following the completion of the Mergers on March 6, 2020 and until the Internalization Closing, and pursuant to the Advisory Agreement, the Company paid the Former 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 vested and became non-forfeitable upon payment of the monthly investment management fee. The fair value of the vested common stock at the date of issuance, using the then-most recent publicly disclosed estimated value per share, was recorded in stockholders’ equity in the accompanying consolidated balance sheets. No investment management fees were incurred in shares for the three and six months ended June 30, 2021. Investment management fees of $4,316,774 and $5,504,125 were incurred in shares for the three and six months ended June 30, 2020, respectively. Convertible Stock and Class A Convertible Stock Prior to the completion of the Mergers on March 6, 2020, the Company’s then-outstanding Convertible Stock would have been converted 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 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 Former Advisor exchanged the then-outstanding Convertible Stock for new Class A Convertible Stock. The Class A Convertible Stock would have been converted into shares of the Company’s common stock if (1) the Company had made total distributions of money or other property to its stockholders or by SIR and STAR III to their respective holders of common shares (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 sum of 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 listed its common stock for trading on a national securities exchange or entered into a merger whereby holders of the Company’s common stock receive listed securities of another issuer or (3) the Company’s Advisory Agreement was 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 would have been 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 exceeded (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. As discussed in Note 1 (Organization and Business), in connection with the Internalization Transaction, the Company purchased all of the Class A Convertible Stock from the Former Advisor for $1,000. 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, 2021 and December 31, 2020, 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 March 9, 2021 and April 17, 2020, the Company’s board of directors approved a price per share for the DRP of $15.55 and $15.23, effective April 1, 2021 and May 1, 2020, respectively, 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 10 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. In connection with the announcement of the then-proposed Mergers, 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 with repurchases made on the repurchase dates 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 were limited to $2,000,000 per quarter. On March 3, 2020, in connection with the closing of the Mergers, the Company’s board of directors amended the Amended & Restated SRP 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 Amended & Restated SRP 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. On January 12, 2021, the board of directors further amended the Amended & Restated SRP. The amendment (1) limits repurchase requests to death and qualifying disability only and (2) sets a $3,000,000 per calendar quarter limit on the amount of repurchases by the Company. The amendment took effect 30 days from January 14, 2021, and was in effect on April 30, 2021, the Repurchase Date (as defined below), with respect to repurchases for the fiscal quarter ending March 31, 2021. Share requests that do not meet the requirements for death and disability were cancelled (including any requests received during the first fiscal quarter of 2021). As of June 30, 2021, the share repurchase price was $14.46 per share, which represented 93% of the most recently published estimated value per share of $15.55. Prior to the March 3, 2020 amendments (described above), 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% 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” equaled 93% of the most recently publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one year holding period did 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 was 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 Amended & Restated SRP is further reduced by the aggregate amount of net proceeds per share, if any, distributed to the Company’s stockholders prior to the Repurchase Date (defined below) 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 The Company is not obligated to repurchase shares of its common stock under the Amended & Restated SRP. In no event shall repurchases under the Amended & Restated SRP exceed 5% of the weighted average number of shares of common stock outstanding during the prior calendar year or the $3,000,000 limit for any quarter put in place by the Company’s board of directors. There is no fee in connection with a repurchase of shares of the Company’s common stock pursuant to the Amended & Restated SRP. As of June 30, 2021 and December 31, 2020, the Company had recorded $2,705,142 and $4,000,000, respectively, which represents 187,078 and 282,477 (pursuant to the Amended & Restated SRP) shares of common stock, respectively, in accounts payable and accrued liabilities on the accompanying consolidated balance sheets related to these unfulfilled repurchase requests. During the three and six months ended June 30, 2021, the Company repurchased a total of 159,168 and 441,645 shares with a total repurchase value of $2,301,563 and $6,301,563, and received requests for repurchases of 187,078 and 345,303 shares with a total repurchase value of $2,705,142 and $4,993,073, respectively. 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 the repurchase of 2,664,719 and 2,813,768 shares with a total repurchase value of $37,732,417 and $39,842,954, respectively. The Company cannot guarantee that the funds set aside for the Amended & Restated SRP 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 for death and disability, repurchase requests will be paid on a pro rata basis up to the $3,000,000 quarterly cap. The Company’s board of directors may, in its sole discretion, amend, suspend or terminate the Amended & Restated SRP at any time upon 30 days’ notice to its stockholders if it determines that the funds available to fund the Amended & Restated SRP are needed for other business or operational purposes or that amendment, suspension or termination of the Amended & Restated SRP 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 Amended & Restated SRP. The Amended & Restated SRP will terminate in the event that a secondary market develops for the Company’s shares of common stock. 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. 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 and Paid The Company’s board of directors approved a cash distribution that accrued at a rate of $0.002466 per day for each share of the Company’s common stock during the month ended January 31, 2021, which, if paid over a 365-day period is equivalent to $0.90 per share. On January 12, 2021, the Company’s board of directors approved a cash distribution that accrues at a rate of $0.001438 per day for each share of the Company’s common stock for the period commencing on February 1, 2021 and ending on February 28, 2021, which was extended for the months of March, April, May, June and July, 2021, and which, if paid over a 365-day period is equivalent to $0.525 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. The following tables reflect distributions declared and paid to common stockholders and Class A-2 and Class B OP Unit holders (the “Noncontrolling Interest OP Unit Holders”) for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Common Stockholders Noncontrolling Interest OP Unit Holders Total Common Stockholders Noncontrolling Interest OP Unit Holders Total DRP distributions declared (in shares) 198,278 — 198,278 448,840 — 448,840 DRP distributions declared (value) $ 3,083,215 $ — $ 3,083,215 $ 6,899,269 $ — $ 6,899,269 Cash distributions declared 11,342,530 929,900 12,272,430 25,289,682 2,075,906 27,365,588 Total distributions declared $ 14,425,745 $ 929,900 $ 15,355,645 $ 32,188,951 $ 2,075,906 $ 34,264,857 DRP distributions paid (in shares) 199,903 — 199,903 501,978 — 501,978 DRP distributions paid (value) $ 3,108,489 $ — $ 3,108,489 $ 7,709,092 $ — $ 7,709,092 Cash distributions paid 11,472,032 940,119 12,412,151 28,113,767 2,310,906 30,424,673 Total distributions paid $ 14,580,521 $ 940,119 $ 15,520,640 $ 35,822,859 $ 2,310,906 $ 38,133,765 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Common Stockholders Noncontrolling Interest OP Unit Holders Total Common Stockholders Noncontrolling Interest OP Unit Holders Total DRP distributions declared (in shares) 352,192 — 352,192 676,428 — 676,428 DRP distributions declared (value) $ 5,363,890 $ — $ 5,363,890 $ 10,499,787 $ — $ 10,499,787 Cash distributions declared 19,061,204 163,314 19,224,518 29,316,841 163,314 29,480,155 Total distributions declared $ 24,425,094 $ 163,314 $ 24,588,408 $ 39,816,628 $ 163,314 $ 39,979,942 DRP distributions paid (in shares) 349,989 — 349,989 670,958 — 670,958 DRP distributions paid (value) $ 5,399,458 $ — $ 5,399,458 $ 10,483,613 $ — $ 10,483,613 Cash distributions paid 19,150,001 163,314 19,313,315 25,866,713 163,314 26,030,027 Total distributions paid $ 24,549,459 $ 163,314 $ 24,712,773 $ 36,350,326 $ 163,314 $ 36,513,640 As of June 30, 2021 and December 31, 2020, $5,063,063 and $8,931,971 of distributions declared were payable, which included $1,011,758 and $1,821,581, or 65,065 shares and 119,605 shares of common stock, attributable to the DRP, respectively. As reflected in the table above, for the three and six months ended June 30, 2021 and 2020, the Company paid total distributions of $15,520,640, $38,133,765, $24,712,773 and $36,513,640, respectively. |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interests represent operating partnership interests in the Operating Partnership of which the Company is the general partner. Class A-2 Operating Partnership Units Class A-2 OP Units were issued as part of the consideration to purchase VV&M Apartments. STAR III OP, the Company’s then-indirect subsidiary, agreed to acquire the 310 unit multifamily property located in Dallas, Texas known as VV&M Apartments 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 VV&M. On April 21, 2020 (the “VV&M Closing Date”), VV&M contributed the VV&M Apartments to STAR III OP, and STAR III OP issued 948,785 Class A-2 OP Units at an estimated value per unit of $15.23, the fair value determined at the date of transaction, or $14,450,000 in the aggregate, to VV&M, all in accordance with the Contribution Agreement. On the VV&M Closing Date, STAR III OP and VV&M entered into the Second A&R Partnership Agreement. The Second A&R Partnership Agreement allows for VV&M to request STAR III OP to: (1) repurchase the outstanding Class A-2 OP Units after five years from the VV&M Closing Date (the “Put”), or (2) 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 VV&M 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 income or loss on a pro rata basis of the then-three operating partnerships combined. The Company has evaluated the terms of the Second A&R Partnership 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. On August 28, 2020, STAR III OP merged with and into the Operating Partnership and VV&M owns the Class A-2 operating partnership units in the Operating Partnership pursuant to the Operating Partnership Agreement on substantially the same terms described above. Class B Operating Partnership Units Class B OP Units were issued as consideration in the Internalization Transaction as discussed in Note 1 (Organization and Business). The Class B OP Units were valued at $15.23 per unit at the time of the transaction. On August 31, 2020, the date of the Internalization Closing, the Company, VV&M, STAR OP and SRI entered into the Operating Partnership Agreement. The Operating Partnership Agreement includes a provision that allows for SRI to request the repurchase of all outstanding Class B OP Units, one year from the date of the Internalization Closing; however, under the terms of the Contribution & Purchase Agreement, SRI is precluded from redeeming or transferring the Class B OP Units for two years from the date of the Internalization Closing. The Operating Partnership Agreement also includes a provision for the Company to settle the repurchase request in shares of the Company’s common stock rather than in cash, in its sole discretion as the general partner of the Operating Partnership. The Class B OP Units receive distributions at the same rate paid to holders of the Company’s common stock and are allocated a share of the Operating Partnership and its subsidiaries’ net income or losses on a pro rata basis. The Company has evaluated the terms of the Operating Partnership Agreement and in accordance with ASC 480, determined that the Class B OP Units are properly recognized as permanent equity on the consolidated balance sheets. As of June 30, 2021, noncontrolling interests were approximately 6.05% of total shares and 6.06% of weighted average shares outstanding (both measures assuming Class A-2 OP Units and Class B OP Units were converted to common stock). The changes in the carrying amount of noncontrolling interests consisted of the following for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance Class A-2 OP Units $ 12,962,395 $ — $ 13,219,354 $ — Issuance of Class A-2 OP Units — 14,450,000 — 14,450,000 (Loss) income allocated to Class A-2 OP Units (88,555) 163,314 (192,466) 163,314 Distributions to Class A-2 OP Units (124,187) (163,314) (277,235) (163,314) Beginning balance Class B OP Units 89,435,984 — 91,103,305 — Loss allocated to Class B OP Units (574,698) — (1,249,061) — Distributions to Class B OP Units (805,713) — (1,798,671) — Noncontrolling interests ending balance $ 100,805,226 $ 14,450,000 $ 100,805,226 $ 14,450,000 |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Prior to the Internalization Closing, on August 31, 2020, the Former Advisor was the Company’s advisor and, as such, supervised and managed the Company’s day-to-day operations and selected the Company’s real property investments and real estate-related assets, subject to oversight by the Company’s board of directors. The Former Advisor also provided marketing, sales and client services on the Company’s behalf. The Former Advisor is owned by SRI, the Company’s former sponsor. Mr. Emery, the Company’s Chairman of the board of directors and Chief Executive Officer, owns a 48.6% interest in Steadfast Holdings, the largest owner of SRI. Ms. del Rio, the Company’s former Secretary and an affiliated director, owns a 6.3% interest in Steadfast Holdings. From 2014 to 2020, Ms. Neyland, the Company’s President, Chief Financial Officer and Treasurer, earned an annual 5% profits interest from Steadfast Holdings. Ms. Neyland’s profits interest was terminated in November 2020. During the eight months ended August 31, 2020, all of our other officers and directors, other than our independent directors, were officers of our Former Advisor and officers, limited partners and/or members of our former sponsor and other affiliates of our Former Advisor. Prior to the Internalization Closing, the Company and STAR Operating Partnership operated pursuant to the Advisory Agreement with the Former Advisor. Pursuant to the Advisory Agreement, the Company was obligated to pay the Former 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 was also obligated to reimburse the Former Advisor and its affiliates for organization and offering costs incurred by the Former 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. Summarized below are the related party transactions incurred by the Company for the three and six months ended June 30, 2021 and 2020, respectively, and any related amounts payable and (receivable) as of June 30, 2021 and December 31, 2020: Incurred (Received) For the Incurred (Received) For the Payable (Receivable) as of Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Jun 30, 2021 Dec 31, 2020 Consolidated Statements of Operations: Expensed Investment management fees (1) $ — $ 8,535,093 $ — $ 13,889,530 $ — $ — Due diligence costs (2) 4,166 — 37,166 1,111 — 102,301 Loan coordination fees (1) — 1,116,700 — 1,605,652 — — Disposition fees (3) — — — 338,750 — — Disposition transaction costs (3) — — — 5,144 — — Property management: Fees (1) 4,263 2,369,487 8,550 3,865,857 1,514 5,585 Reimbursement of onsite personnel (4) — 7,780,381 — 12,475,428 — — Reimbursement of other (1) — 1,688,053 — 2,775,590 — — Reimbursement of property operations (4) 9,096 109,188 9,168 188,199 — — Reimbursement of property G&A (2) — 51,811 — 84,216 — — Other operating expenses (2) 417,373 954,292 862,686 1,664,464 68,536 158,723 Reimbursement of personnel benefits and other costs (5) 80,270 — 112,362 — 4,040 20,457 Insurance proceeds (6) — (150,000) — (150,000) — — Property insurance (2) — 1,515,016 — 2,439,952 — — Earned Rental revenue (7) — (23,282) — (41,029) — — Transition services agreement income (6) (6,353) — (14,531) — (13,072) (103,552) SRI Property management agreement income (6) (324,550) — (562,759) — (118,093) (77,760) Other reimbursement income under the SRI property management agreements (6) (120,979) — (211,532) — — (21,980) Reimbursement of onsite personnel income under the SRI property management agreements (6) (1,099,931) — (2,175,540) — (74,888) (173,927) SRI construction management fee income (6) (19,533) — (64,905) — (2,358) — Consolidated Balance Sheets: Sublease security deposit (8) — — — — (85,000) (85,000) Deferred financing costs (9) — 49,050 — 49,050 — — Capitalized to Real Estate Capitalized development services fee (10) — 151,071 — 302,142 — 50,357 Capitalized investment management fees (10) — 98,454 — 179,668 — — Capitalized development costs (10) — 2,435 1,600 3,030 — — Acquisition expenses (11) — 133,695 — 389,919 — — Acquisition fees (11) — 341,371 — 17,717,639 — — Loan coordination fees (11) — 224,000 — 8,812,071 — — Construction management: Fees (12) — 259,509 — 382,272 — — Reimbursement of labor costs (12) — 95,692 — 166,239 — — Additional paid-in capital Distributions to Class B OP Unit holders (13) 805,713 — 1,798,671 — 265,620 469,236 $ (250,465) $ 25,302,016 $ (199,064) $ 67,144,894 $ 46,299 $ 344,440 __________________ 1) Included in fees to affiliates in the accompanying consolidated statements of operations. Property management fees of $4,263 relate to compliance fees incurred under a compliance agreement with the Former Property Manager, as defined below, to follow certain tax compliance procedures with respect to the leasing of apartment homes to qualified residents. 2) Included in general and administrative expenses in the accompanying consolidated statements of operations. Due diligence costs of $4,166 represent acquisition expenses related to the Company’s real estate projects that did not come to fruition and which were incurred by an affiliate of SIP on behalf of the Company. Other operating expenses of $417,373 relate to sublease rental expenses of $273,846 and $143,527 of expenses related to information systems costs incurred by SIP on behalf of the Company. 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) Represents reimbursements of miscellaneous employee related costs to SIP for the period when benefits were administered by SIP. The employer benefit cost portion is included in general and administrative expenses in the accompanying consolidated statements of operations. 6) Included in other income in the accompanying consolidated statements of operations. 7) Included in rental income in the accompanying consolidated statements of operations. 8) Included in other assets in the accompanying consolidated balance sheets. 9) Included in notes payable, net in the accompanying consolidated balance sheets. 10) Included in real estate held for development in the accompanying consolidated balance sheets. 11) Included in total real estate, net in the accompanying consolidated balance sheets. 12) Included in building and improvements in the accompanying consolidated balance sheets. 13) Included in cumulative distributions and net losses in the accompanying consolidated balance sheets. Investment Management Fee Prior to the completion of the Mergers on March 6, 2020, the Company paid the Former 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 and until the Internalization Closing, the Company paid the Former Advisor a monthly investment management fee, which was 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 paid in shares, included in fees to affiliates in the accompanying consolidated statements of operations were $0 for each of the three and six months ended June 30, 2021, and $4,039,148 for each of the three and six months ended June 30, 2020, respectively. Following the Internalization Closing, investment management fees paid by the Company are intercompany transactions and are eliminated in consolidation. Acquisition Fees and Expenses Prior to the completion of the Mergers, the Company paid the Former 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 reimbursed the Former Advisor for amounts directly incurred by the Former Advisor and amounts the Former Advisor paid 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 acquired the property or the real estate-related assets. Following the completion of the Mergers and until the Internalization Closing, the Company paid the Former Advisor an acquisition fee of 0.5%, which was calculated on the same basis as above. In connection with the Mergers, the Company paid the Former 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. Following the Internalization Closing, acquisition fees and expenses paid by the Company are intercompany transactions and are eliminated in consolidation. Loan Coordination Fee Prior to the completion of the Mergers, the Company paid the Former Advisor or its affiliate a loan coordination fee equal to 1.0% of the initial amount of 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 debt financing or refinancing (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 Former 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 Former Advisor agreed to a loan coordination fee of $100,000 per loan refinanced. Following the completion of the Mergers and until the Internalization Closing, the Company paid the Former 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 Former 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 paid the Former 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. No loan coordination fee was paid in shares to the Company’s Former Advisor during the three and six months ended June 30, 2021. Loan coordination fees of $1,116,694 were paid in shares to the Company’s Former Advisor for each of the three and six months ended June 30, 2020. Following the Internalization Closing, loan coordination fees paid by the Company are intercompany transactions and are eliminated in consolidation. Property Management Fees and Expenses Prior to the Internalization Closing, the Company was party to property management agreements (each, as amended from time to time, a “Property Management Agreement”) with Steadfast Management Company, Inc., an affiliate of SRI (the “Former Property Manager”), in connection with the management of each of the Company’s properties. Pursuant to each Property Management Agreement, the Company paid the Former Property Manager a monthly management fee equal to a range from 2.5% to 3.5% of each property’s gross revenues (as defined in the respective Property Management Agreements) for each month, as determined by the Former Advisor and approved by a majority of the Company’s board of directors, including a majority of the independent directors. Each Property Management Agreement had an initial one-year term and continued thereafter on a month-to-month basis unless either party gave 60 days’ prior notice of its desire to terminate the Property Management Agreement, provided that the Company could terminate the Property Management Agreement at any time upon a determination of gross negligence, willful misconduct or bad acts of the Former Property Manager or its employees or upon an uncured breach of the Property Management Agreement upon 30 days’ prior written notice to the Former Property Manager. In addition to the property management fee, the Property Management Agreements also specified certain other reimbursements payable to the Former Property Manager for benefit administration, information technology infrastructure, licenses, support and training services and capital expenditures supervision. The Company also reimbursed the Former Property Manager for the salaries and related benefits of on-site property management employees. In connection with the Internalization Transaction, the Company terminated its existing property-level property management agreements with the Former Property Manager. Following the Internalization Closing, property management fees paid by the Company are intercompany transactions and are eliminated in consolidation. Construction Management Fees and Expenses Prior to the Internalization Closing, the Company was party to construction management agreements (each, a “Construction Management Agreement”) with Pacific Coast Land & Construction, Inc., an affiliate of SRI (the “Former Construction Manager”), in connection with capital improvements and renovation or value-enhancement projects for certain properties the Company acquired. The construction management fee payable with respect to each property under the Construction Management Agreements ranged from 6.0% to 12.0% of the costs of the improvements for which the Construction Manager had planning and oversight authority. Generally, each Construction Management Agreement could have been terminated by either party with 30 days’ prior written notice to the other party. Construction management fees were capitalized to the respective real estate properties in the period in which they were 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 also reimbursed the Former Construction Manager for the salaries and related benefits of certain of its employees for time spent working on capital improvements and renovations. In connection with the Internalization Transaction, the Company terminated its existing Construction Management Agreements with the Former Construction Manager. Development Services The Company is a party to a development services agreement (the “Development Services Agreement”) with Steadfast Multifamily Development, Inc., an affiliate of SRI (the “Developer”), in connection with certain development projects, pursuant to which the Developer receives 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 at Broomfield and the Flatirons development projects that provide 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 is paid in 14 monthly installments and the remaining 25% is paid upon delivery of a certificate of occupancy by the Developer to the Company. Property Insurance Prior to the Internalization Closing, the Company deposited amounts with an affiliate of SRI, the Company’s former 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 of the Company’s former sponsor. Upon filing a major claim, proceeds from the insurance deductible account could be used by the Company or another affiliate of SRI. In addition, the Company deposited amounts with an affiliate of the Company’s former sponsor to cover the cost of property and property related insurance across certain properties of the Company. As a result of the Internalization Transaction, the Company is no longer party to the insurance deductible arrangement with any affiliates of the Former Sponsor. Other Operating Expense Reimbursement In addition to the various fees paid to the Former Advisor, the Company was obligated to pay directly or reimburse all expenses incurred by the Former Advisor in providing services to the Company, including the Company’s allocable share of the Former Advisor’s overhead, such as rent, employee costs, utilities and information technology costs. The Company was not to reimburse the Former Advisor for employee costs in connection with services for which the Former Advisor or its affiliates received acquisition fees or disposition fees or for the salaries the Former Advisor paid 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 was to reimburse the Former Advisor, at the end of each fiscal quarter, for operating expenses incurred by the Former Advisor; provided, however, that the Company did not reimburse the Former Advisor at the end of any fiscal quarter for operating expenses that exceed the 2%/25% Limitation unless the independent directors determined that such excess expenses were justified based on unusual and non-recurring factors. The Former Advisor was obligated to reimburse the Company for the amount by which the Company’s operating expenses for the preceding four fiscal quarters then ended exceeded 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 the Former Advisor’s 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, 2021, 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, if the Former 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 Former 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 and until the Internalization Closing, the disposition fee payable to the Former Advisor was 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 was paid upon the sale of any assets other than real property, it was included as an operating expense for purposes of the 2%/25% Limitation. Following the Internalization Closing, disposition fees paid by the Company are intercompany transactions and are eliminated in consolidation. Class A Convertible Stock In connection with the Mergers, the Company and the Former Advisor exchanged the then outstanding Convertible Stock for the new Class A Convertible Stock. The Class A Convertible Stock would convert into shares of the Company’s common stock if (1) the Company had 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 listed its common stock for trading on a national securities exchange or entered into a merger whereby holders of the Company’s common stock received listed securities of another issuer or (3) the Company’s Advisory Agreement was 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 would have been 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 connection with the Internalization Transaction, the Company repurchased the Class A Convertible Stock for $1,000. See Note 8 (Stockholders’ Equity) for details. Ancillary Internalization Transaction Agreements Transition Services Agreement As a condition to Internalization Closing, on August 31, 2020, the Company and SIP entered into a Transition Services Agreement (the “Transition Services Agreement”), pursuant to which, commencing on August 31, 2020 until March 31, 2021, which was extended through September 30, 2021, unless earlier terminated pursuant to the Transition Services Agreement or extended by mutual consent, SIP will continue to provide certain operational and administrative support at cost plus 15% to the Company, which may include support relating to, without limitation, shared legal, and tax support as set forth in the Transition Services Agreement. Similarly, the Company agreed to provide certain services to SIP and its affiliates at cost plus 15%, which may include acquisition, disposition and financing support, legal support, shared information technology and human resources. SRI Property Management Agreements In connection with the Internalization Transaction, the Company terminated its existing property-level property management agreements with the Former Property Manager, an affiliate of SRI. On August 31, 2020, SRS, entered into the SRI Property Management Agreements with an affiliate of SRI to provide property management services in connection with certain properties owned by SIP or its affiliates (each a “Property Owner” and collectively, the “Property Owners”). Pursuant to each SRI Property Management Agreement, SRS received a monthly management fee equal to 2.0% of each property’s gross collections for such month (“Gross Collections”). On April 23, 2021, SRS entered into amendments to the SRI Property Management Agreements with affiliates of SRI to (1) provide that SRS is responsible for providing accounting services for the properties owned by the Property Owners and (2) increase the property management fee from 2.0% to 3.0% of Gross Collections. Each SRI Property Management Agreement has an initial one-year term and will continue thereafter on a month-to-month basis unless the Property Owner terminates the SRI Property Management Agreement with 60 days’ prior written notice or upon the determination of gross negligence, willful misconduct or bad acts of SRS or its employees with 30 days’ prior written notice to SRS. After the first one-year term, either party may terminate the SRI Property Management Agreement in the event of a material breach that remains uncured for a period of 30 days after written notification of such breach. As of June 30, 2021, the Company recognized the SRI Property Management Agreements asset, net of $135,830 within other assets on the accompanying consolidate balance sheets. In addition to the property management fee earned by SRS, the SRI Property Management Agreements also specify certain other reimbursements payable to SRS for benefit administration, information technology infrastructure, licenses, support and training services. SRS is also reimbursed for the salaries and related benefits of on-site property management employees at certain properties owned by SIP or its affiliates. SRI Construction Management Agreements On September 1, 2020, SRS, entered into the SRI construction management agreements with an affiliate of SRI (the “SRI Construction Management Agreements”) to provide construction management services in connection with certain properties owned by SIP or its affiliates. Pursuant to each SRI Construction Management Agreement, SRS will receive a construction management fee equal to 7.5% of the total project costs. In addition, SRS will be reimbursed for all agreed upon costs associated with staffing. Each SRI Construction Management Agreement may be terminated by either party with the delivery of a 30-day written notice to the other party. Registration Rights Agreement As a condition to the Internalization Closing, on August 31, 2020, the Company, the Operating Partnership and SRI entered into a registration rights agreement (the “Registration Rights Agreement”). Upon the terms and conditions in the Operating Partnership Agreement, the Class B OP Units are redeemable for shares of the Company’s common stock. Pursuant to the Contribution & Purchase Agreement, SRI (or any successor holder) may not transfer the Class B OP Units until August 31, 2022 (the “Lock-Up Expiration”). Beginning on the fifth anniversary of the Internalization Closing, SRI (or any successor holder) may request the Company to register for resale under the Securities Act of 1933, as amended, shares of the Company’s common stock issued or issuable to such holder. The Company agreed to use commercially reasonable efforts to file a registration statement on Form S-3 within 30 days of such request and within 60 days of such request in the case of a registration statement on Form S-11 or such other appropriate form. The Company has agreed to cause such registration statement to become effective as soon as reasonably practicable thereafter. The Registration Rights Agreement also grants SRI (or any successor holder) certain “piggyback” registration rights after the Lock-Up Expiration. Non-Competition Agreement As a condition to the Internalization Closing, on August 31, 2020, the Company entered into a Non-Competition Agreement (the “Non-Competition Agreement”) with Rodney F. Emery, the largest indirect owner of SRI and the Company’s Chairman of the board of directors and Chief Executive Officer, providing that from the date of the Internalization Closing until the date that is 30 months from August 31, 2020 (the “Restricted Period”), in general, Mr. Emery shall not, directly or indirectly, (i) solicit certain employees or service providers of the Company, subject to certain exceptions, or (ii) solicit certain customers, vendors, suppliers, agents, partners or other similar parties with the purpose of causing such parties or their affiliates to cease doing business with the Company or otherwise interfere with the Company’s business relationships with third parties. During the Restricted Period, Mr. Emery, subject to limited exceptions provided in the Non-Competition Agreement, in general (i) shall not, and shall cause his respective affiliates not to, engage in the business of managing, operating, directing and supervising the operations and administration of multifamily assets of the class and type owned by the Company as of August 31, 2020 (the “Assets”) (such business activities described in this subsection (i) being the “Restricted Business”), (ii) shall, consistent with past practice, present each opportunity and investment fully and accurately to the Company’s board of directors prior to his or his affiliates acquisition of any Assets and only make such investment on behalf of himself or his affiliates if the Company’s board of directors declines the opportunity; and (iii) shall not engage with or otherwise acquire an interest in, directly or indirectly, any business or enterprise that primarily engage in the Restricted Business in an area within a two-mile radius of each Asset owned or managed by the Company as of the Internalization Closing. Further, each of SRS, the Company and the Operating Partnership agreed that, in general, during the Restricted Period, each will not solicit any employee of SRI or its affiliates or attempt to assist any such employee to enter into any other consulting or business relationship with SRS, the Company and the Operating Partnership, subject to certain limitations. Sub-Lease In connection with the Internalization Transaction, SRS, an indirect subsidiary of the Company, entered into a sub-lease agreement (the “Sub-Lease”) with the Former Property Manager on September 1, 2020, for its headquarters in Irvine, California. The Sub-Lease also includes certain furniture and fixtures, that will become the property of SRS at the end of the lease term. As of June 30, 2021, the Sub-Lease has a remaining lease term of 11 months with no option to renew. The monthly sub-lease expense is recognized on a straight line basis over the remaining term of the the Sub-Lease. As of June 30, 2021 and December 31, 2020, as it pertains to the Sub-Lease of the office space, the Company recorded an operating lease ROU asset, net of $872,985 and $1,339,591 and an operating lease liability, net of $887,925 and $1,34 |
Incentive Award Plan and Indepe
Incentive Award Plan and Independent Director Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Award Plan and Independent Director Compensation | Incentive Award Plan and Independent Director Compensation The Company’s Incentive Award Plan 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 independent directors’ compensation plan and subject to such plan’s conditions and restrictions, 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. On March 6, 2020, the Company granted 3,333 shares of restricted common stock pursuant to the independent directors’ compensation plan to each of its two newly elected independent directors. 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 September 15, 2020, the Company’s board of directors approved an amendment to the independent directors’ compensation plan, which is described in more detail below. On December 3, 2020, the Company granted 4,924 shares of restricted common stock to each of its five independent directors pursuant to the Incentive Award Plan at a fair value of $15.23 per share in connection with their re-election to the board of directors at the Company’s annual meeting of stockholders. These shares generally vest in two The Company recorded a stock-based compensation expense of $63,168 and $126,336 for the three and six months ended June 30, 2021, respectively, and $20,928 and $63,383 for the three and six months ended June 30, 2020, respectively, related to the independent directors’ restricted common stock. In addition to the stock awards, prior to September 15, 2020, the Company paid each of its independent directors an annual retainer of $55,000, prorated for any partial term (the audit committee chairperson received an additional $10,000 annual retainer, prorated for any partial term). The independent directors were 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. All directors also receive reimbursement of reasonable out of pocket expenses incurred in connection with attendance at meetings of the board of directors. Beginning September 15, 2020, the effective date of the amendment to the independent directors’ compensation plan, the Company pays each of its independent directors an annual retainer of $75,000 in cash and $75,000 in shares of restricted common stock, prorated for any partial term (the audit committee chairperson receives an additional $15,000 annual retainer, the compensation committee chairperson receives an additional $10,000 annual retainer, the investment committee chairperson receives an additional $10,000 annual retainer, the nominating and corporate governance committee chairperson receives an additional $10,000 annual retainer, and the lead independent director receives an additional $25,000 annual retainer, prorated for any partial term). The independent directors are also paid $2,000 for each in-person or telephonic board or committee meeting attended (not to exceed $4,000 for any one set of meetings attended on any given day). Further, directors may elect to receive any cash fees in fully-vested shares of common stock of the Company. Director compensation is an operating expense of the Company that, prior to the Internalization Closing, was subject to the operating expense reimbursement obligation of the Former Advisor discussed in Note 10 (Related Party Arrangements). The Company recorded an operating expense of $217,250 and $486,500 for the three and six months ended June 30, 2021, respectively, and $465,250 and $537,000 for the three and six months ended June 30, 2020, respectively, related to the independent directors’ annual cash retainer and attending board and committee meetings, which is included in general and administrative expenses in the accompanying consolidated statements of operations. Upon signing the merger agreements, merger related acquisition expenses including $0 for each of the three and six months ended June 30, 2021, respectively, and $3,000 for each of the three and six months ended June 30, 2020, respectively, related to attending committee meetings met the definition of capitalized expenses and were therefore capitalized in the accompanying consolidated balance sheets. As of June 30, 2021 and December 31, 2020, $217,250 and $209,250, respectively, related to the independent directors’ annual retainer paid in cash and board and committee 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, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Economic Dependency Prior to the Internalization Closing, the Company was dependent on the Former 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. As a result of the Internalization Transaction, the Company became self-managed and acquired components of the advisory, asset management and property management operations of the Former Advisor by hiring the Transferring Employees (as defined in the Contribution & Purchase Agreement), who comprise the workforce necessary for the management and day-to-day real estate and accounting operations of the Company and the Operating Partnership. The Company’s own employees now provide the services that the Former Advisor provided, as described above. As of June 30, 2021, the Company is developing a multifamily property known as Garrison Station consisting of nine residential buildings with 176 apartment homes that are currently in various stages of development with remaining commitments to fund of approximately $4,000,000 (inclusive of applicable construction loan obligations) and estimated completion dates ranging through August 2021. As of June 30, 2021, 95 of the 176 apartment homes were placed in service. 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/Fort Worth, 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 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss attributable to common stockholders $ (13,037,659) $ (53,224,622) $ (27,068,948) $ (62,905,750) Less: Distributions declared on Class A-2 OP Units — (163,314) — (163,314) Distributions related to unvested restricted stockholders (1) (41,370) (2,796) (92,353) (5,667) Numerator for loss per common share — basic $ (13,079,029) $ (53,390,732) $ (27,161,301) $ (63,074,731) Weighted average common shares outstanding — basic and diluted (2) 109,905,923 109,139,963 109,896,333 88,660,741 Loss per common share — basic and diluted $ (0.12) $ (0.49) $ (0.25) $ (0.71) _____________________ (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. (2) The Company excluded all unvested restricted common shares outstanding issued to the Company’s independent directors and certain key employees, the Class A-2 OP Units and the Class B OP Units from the calculation of diluted loss per common share as the effect would have been antidilutive. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020: June 30, 2021 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 7/1/2021 - 7/1/2023 One-Month LIBOR 6 $ 334,300,350 0.10% 3.57% $ 21,255 December 31, 2020 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2021 - 7/1/2023 One-Month LIBOR 9 $ 407,935,350 0.14% 3.41% $ 7,852 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, 2021, resulted in an unrealized loss (gain) of $9,617 and $(1,203), respectively, and for the three and six months ended June 30, 2020, resulted in an unrealized loss of $24,943 and $27,194, respectively, which is included in interest expense in the accompanying consolidated statements of operations. During the six months ended June 30, 2021 and 2020, the Company acquired interest rate cap agreements of $12,200 and $47,000, respectively, and did not receive settlement proceeds. The fair value of the interest rate cap agreements of $21,255 and $7,852 as of June 30, 2021 and December 31, 2020, respectively, is included in other assets on the accompanying consolidated balance sheets. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases Lessee The Company leases office space, a parking garage, furniture, fixtures and office equipment. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately from each other. A limited number of leases include options to renew or options to extend the lease term. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of lease ROU assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows: Three Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 6,469 $ 9,021 Operating Lease cost (1) General and administrative 241,549 — Finance lease cost Amortization of leased assets Depreciation and amortization 3,060 — Accretion of lease liabilities Interest expense 86 — Total lease cost $ 251,164 $ 9,021 Six Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 16,513 $ 16,526 Operating Lease cost (1) General and administrative 483,098 — Finance lease cost Amortization of leased assets Depreciation and amortization 6,120 — Accretion of lease liabilities Interest expense 193 — Total lease cost $ 505,924 $ 16,526 _____________________ (1) Includes short-term leases and variable lease costs, which are immaterial. Other information related to leases was as follows: Lease Term and Discount Rate June 30, 2021 December 31, 2020 Weighted average remaining lease term (in years) Operating leases 3.2 3.4 Finance leases 0.9 1.4 Weighted average discount rate Operating Leases 3.3 % 3.2 % Finance Leases 2.9 % 2.9 % Six Months Ended June 30, Supplemental Disclosure of Cash Flows Information 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows related to operating leases $ 567,794 $ 79,884 Operating cash outflows related to finance leases $ 6,120 $ — Financing cash outflows related to finance leases $ — $ — Operating Leases The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled lease obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31, and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on the Company’s accompanying consolidated balance sheets: Year Amount Remainder of 2021 $ 594,614 2022 611,239 2023 188,990 2024 122,026 2025 94,506 Thereafter 266,910 Total undiscounted operating lease payments $ 1,878,285 Less: interest (293,387) Present value of operating lease liabilities $ 1,584,898 Finance Leases The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities: Year Amount Remainder of 2021 $ 6,120 2022 5,100 2023 — 2024 — 2025 — Thereafter — Total undiscounted finance lease payments $ 11,220 Less: interest (127) Present value of finance lease liabilities $ 11,093 |
Leases | Leases Lessee The Company leases office space, a parking garage, furniture, fixtures and office equipment. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately from each other. A limited number of leases include options to renew or options to extend the lease term. The exercise of lease renewal options is at the Company’s sole discretion. The depreciable life of lease ROU assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs were as follows: Three Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 6,469 $ 9,021 Operating Lease cost (1) General and administrative 241,549 — Finance lease cost Amortization of leased assets Depreciation and amortization 3,060 — Accretion of lease liabilities Interest expense 86 — Total lease cost $ 251,164 $ 9,021 Six Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 16,513 $ 16,526 Operating Lease cost (1) General and administrative 483,098 — Finance lease cost Amortization of leased assets Depreciation and amortization 6,120 — Accretion of lease liabilities Interest expense 193 — Total lease cost $ 505,924 $ 16,526 _____________________ (1) Includes short-term leases and variable lease costs, which are immaterial. Other information related to leases was as follows: Lease Term and Discount Rate June 30, 2021 December 31, 2020 Weighted average remaining lease term (in years) Operating leases 3.2 3.4 Finance leases 0.9 1.4 Weighted average discount rate Operating Leases 3.3 % 3.2 % Finance Leases 2.9 % 2.9 % Six Months Ended June 30, Supplemental Disclosure of Cash Flows Information 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows related to operating leases $ 567,794 $ 79,884 Operating cash outflows related to finance leases $ 6,120 $ — Financing cash outflows related to finance leases $ — $ — Operating Leases The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled lease obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31, and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on the Company’s accompanying consolidated balance sheets: Year Amount Remainder of 2021 $ 594,614 2022 611,239 2023 188,990 2024 122,026 2025 94,506 Thereafter 266,910 Total undiscounted operating lease payments $ 1,878,285 Less: interest (293,387) Present value of operating lease liabilities $ 1,584,898 Finance Leases The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities: Year Amount Remainder of 2021 $ 6,120 2022 5,100 2023 — 2024 — 2025 — Thereafter — Total undiscounted finance lease payments $ 11,220 Less: interest (127) Present value of finance lease liabilities $ 11,093 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Distributions Paid On July 1, 2021, the Company paid distributions of $5,063,063, which related to distributions declared for each day in the period from June 1, 2021 through June 30, 2021 and consisted of cash distributions paid in the amount of $4,051,305 and $1,011,758 in shares issued pursuant to the DRP. Distributions Declared On July 24, 2021, 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, 2021 and ending on August 31, 2021. The distributions will be equal to $0.001438 per share of the Company’s common stock per day. The distributions for each record date in August 2021 will be paid in September 2021. The distributions will be payable to stockholders from legally available funds therefor. Garrison Station Real Estate Placed in Service Subsequent to June 30, 2021, one additional building comprised of 24 apartment homes was placed in service at the Garrison Station development project. Agreement and Plan of Merger On July 26, 2021, the Company and the Operating Partnership, entered into an Agreement and Plan of Merger, (the “Merger Agreement”) with Independence Realty Trust, Inc. (“IRT”), IRT’s operating partnership, Independence Realty Operating Partnership, LP (“IRT OP”), and IRSTAR Sub, LLC, a wholly-owned subsidiary of IRT (“ IRT Merger Sub”). On the terms, and subject to the conditions of, the Merger Agreement, the Company will merge with and into IRT Merger Sub, which is referred to herein as the “Company Merger”, with IRT Merger Sub surviving the Company Merger as a wholly-owned subsidiary of IRT; and immediately thereafter, the Operating Partnership will merge with and into IRT OP (the “Partnership Merger” and together with the Company Merger, the “IRT Mergers”), with IRT OP surviving the Partnership Merger. In the Company Merger, each outstanding share of the Company’s common stock, par value $0.01 per share, will be converted automatically into the right to receive 0.905, (the “Exchange Ratio”), of a newly issued share of IRT common stock, par value $0.01 per share, (the “IRT Common Stock”). In the Partnership Merger, each outstanding unit of limited partnership of the Operating Partnership will be converted into the right to receive the Exchange Ratio of a newly issued common unit of limited partnership of IRT OP, (the “IRT Common Unit”). Under the agreement of limited partnership of IRT OP, IRT common unitholders may generally tender their IRT Common Units, in whole or in part, to IRT OP for redemption for a cash amount based on the then-market price of an equivalent number of shares of IRT Common Stock, and IRT may thereupon elect, at its option, to satisfy the redemption by issuing one share of IRT Common Stock for each IRT Common Unit tendered for redemption. Pursuant to the IRT Mergers, the Company’s stockholders will receive, in aggregate, in exchange for their shares of common stock, approximately, 99.8 million shares of IRT Common Stock and limited partners in the Operating Partnership will receive, in aggregate, in exchange for their operating partnership units, approximately 6.4 million IRT OP Common Units. Consummation of the IRT Mergers is subject to customary closing conditions, including, among others, receipt of IRT stockholder approval and approval of the Company’s stockholders, and is expected to occur in the fourth quarter of 2021. For more information on the Mergers, see the Company’s Current Report on Form 8-K filed on July 26, 2021. Suspension and Contingent Termination of the DRP and the Amended & Restated SRP In connection with the approval of the IRT Mergers, on July 26, 2021, the Company announced that the Company’s board of directors, including all of the Company's independent directors, voted to terminate the DRP and the Amended & Restated SRP, each termination effective as of the effective time of the Company Merger. The Company’s board of directors, including all of the Company's independent directors, also voted to suspend (1) the DRP, effective as of the 10th day after notice is provided to stockholders and (2) indefinitely suspend the Amended & Restated SRP effective as of the 30th day after notice is provided to stockholders. As a result of the suspension of the DRP, any distributions paid after the distribution payment date in August 2021 will be paid to the Company’s stockholders in cash. The Company can provide stockholders with assistance on directing cash distribution payments and answering questions. The suspension of the DRP will not affect the payment of distributions to stockholders who previously received their distributions in cash. In addition, as a result of the suspension of the Amended & Restated SRP, the Company will not process or accept any requests for redemption received after July 26, 2021. Letter Agr eement On July 26, 2021, the Company entered into a letter agreement (the “Letter Agreement”) with Rodney Emery, the Company’s Chief Executive Officer and Chairman of the Company Board, and Steadfast REIT Investments, LLC (“SRI”). Pursuant to the Letter Agreement, SRI agreed to indemnify the Company, STAR OP, their subsidiaries and their successors and assigns (including IRT, IRT OP and IRT Merger Sub and their subsidiaries) (collectively, the “Indemnified Parties”), for 75% of any costs, expenses, judgments, liabilities and payments, including settlement payments and attorneys’ fees, incurred or arising in connection with any direct or derivative claims brought by any stockholder of the Company or its successors and assigns alleging breaches of duties under law or contract, including but not limited to breaches by any current or former directors of the Company, in connection with the Internalization Transaction (the “Internalization Claims”), if and to the extent such costs, expenses, judgments, liabilities and payments, including settlement payments and attorneys’ fees are not paid for by the Company’s insurance provider (subject only to the $1.0 million self-insurance retention amount in the Company’s D&O insurance policies, which retention amount would not be included in the covered costs described above). SRI’s obligations under the Letter Agreement are capped at the lower of $20.3 million or the value of the Collateral (as defined below) at the time payment is owed under the Letter Agreement and any payments made pursuant to the Letter Agreement must be made solely with the delivery of the Collateral. As used in the Letter Agreement, “Collateral” means the following, now or later held by or on behalf of SRI: (i) 1,277,778 Class B OP Units, or any interests into which they are exchanged or convert, (ii) distributions (cash or in kind) on any such Class B OP Units (or converted interests), (iii) cash payable or securities issuable, from time to time, upon the redemption, conversion or exchange of any of the foregoing, and (iv) all proceeds of any of the foregoing. In the event litigation is filed challenging the Company Merger that includes Internalization Claims and claims that are not Internalization Claims, then an allocation of costs, expenses, liabilities and payments, including settlement payments and attorneys’ fees (collectively, “Expenses”), shall be made to reflect Expenses that are reasonably attributable to the Company’s internalization transaction and are covered costs under the Letter Agreement, and any Expenses that are not covered costs under the Letter Agreement. The Letter Agreement would terminate in the event the Merger Agreement terminates without the Merger Agreement having been consummated. SRI and Mr. Emery are relieved of their obligations under the Letter Agreement at such time that all of the Collateral, or Collateral valued at $20.3 million, whichever is first, has been applied in satisfaction of the portion of claims for which SRI is responsible, or when all applicable statute of limitations on Internalization Claims have expired and no Internalization Claims remain pending or unsatisfied. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 the 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 Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“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, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020. |
Noncontrolling interests | Noncontrolling interests Noncontrolling interests represent the portion of equity that the Company does not own in an entity that is consolidated. The Company’s noncontrolling interests are comprised of Class A-2 operating partnership units (“Class A-2 OP Units”) and Class B OP Units of the Operating Partnership. 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, 2021, the Company’s noncontrolling interests qualified as permanent equity. For more information on the Company’s noncontrolling interests, see Note 9 (Noncontrolling Interest). |
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. |
Casualty loss | Casualty loss The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage and business interruption. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses incurred is considered a gain contingency and is recorded in other income when the proceeds are received. During the six months ended June 30, 2021, the Company incurred property damage and other losses of $23,164,541, which was recorded as general and administrative expenses, with corresponding insurance recovery income up to the amount of losses incurred (as described above) included in general and administrative expenses in the accompanying consolidated statements of operations. The Company also recorded insurance recoveries of $23,164,541 for the estimated insurance claims proceeds in the amount of total losses incurred (as described above) as an increase in rents and other receivables. |
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 805-50, Business Combinations-Related Issues (“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, 2021 and 2020, all of the Company’s acquisitions of real estate properties, including pursuant to the Mergers, 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 |
Goodwill | GoodwillGoodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of a business acquired. The Company’s goodwill has an indeterminate life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company takes a qualitative approach to consider whether an impairment of goodwill exists prior to quantitatively determining the fair value of the reporting unit in step one of the impairment test. |
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 ASC 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 consolidated 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 considered a lease modification pursuant to ASC 842. This means both the lessor and lessee need not remeasure and reallocate the consideration in the lease contract, reassess the lease term or reassess lease classification and lease liability, provided that the concessions are considered to be a separate contract. 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 as described above. 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 fiscal 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 COVID-19 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 any other payment plans during the remaining months in fiscal year 2020 due to the reduced demand of such payment plans. In January 2021, the Company began offering an extension to the COVID-19 Payment Plan (the “Extension Plan”), that allows eligible residents to defer their rent, which is collected by the Company in monthly installment payments over the lesser of the duration of the current lease term or a maximum of three months (with the exception of certain states that allow a maximum of six months deferral). Under the Extension Plan, no concessions are offered for residents with a payment plan duration of two months or less and residents who opted for the COVID-19 Payment Plan are not eligible to participate in the Extension Plan unless they paid off the amounts due under the COVID-19 Payment Plan. During the three months ended September 30, 2020, the Company initiated a debt forgiveness program for certain qualifying residents that were experiencing hardship due to COVID-19 and who were in default of their lease payments (the “Debt Forgiveness Program”). Pursuant to the Debt Forgiveness Program, the Company offered qualifying residents an opportunity to terminate their lease without being liable for any unpaid rent and penalties. The Company determined that accounts receivable of $2,110,657 related to the Debt Forgiveness Program are not probable of collection and therefore included these accounts in its reserve. The Company elected not to evaluate whether the COVID-19 Payment Plans, the Debt Forgiveness Program and the Extension Plan are lease modifications and therefore the Company’s policy is to account for the lease contracts with COVID-19 Payment Plans, Debt Forgiveness Program and the Extension Plan as if no lease modifications occurred. Under this accounting method, a lessor with an operating lease may account for the concession (which in this case only applies to the COVID-19 Payment Plans) 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, 2021 and December 31, 2020, the Company reserved $3,080,227 and $2,245,067 of accounts receivables, respectively, which are considered not probable of collection. |
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 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, 2021 and 2020. 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, due from affiliates, accounts payable and accrued liabilities, distributions payable, distributions payable to affiliates, due to affiliates and notes payable. |
Restricted Cash | Restricted CashRestricted cash represents those cash accounts for which the use of funds is restricted by loan covenants and a cash account established in connection with a letter of credit to fund future workers compensation claims. |
Distribution Policy | Distribution PolicyDistributions 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. |
Lessee Accounting | Lessee Accounting In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires leases with original lease terms of more than 12 months to be recorded on the balance sheet. For leases with terms greater than 12 months, a right-of-use (“ROU”) lease asset and a lease liability are recognized on the balance sheet at commencement date based on the present value of lease payments over the lease term. Lease renewal or termination options are included in the lease asset and lease liability only if it is reasonably certain that the option to extend or to terminate would be exercised. As the implicit rate in most leases are not readily determinable, the Company’s incremental borrowing rate for each lease at commencement date is used to determine the present value of lease payments. Consideration is given to the Company’s recent debt financing transactions, as well as publicly available data for instruments with similar characteristics, adjusted for the respective lease term, when estimating incremental borrowing rates. Lease expense is recognized over the lease term based on an effective interest method for finance leases and on a straight-line basis for operating leases. On January 1, 2019, the Company adopted ASU 2016-02 and its related amendments (collectively, “ASC 842”) using the modified retrospective method. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carry forward its original assessment of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The Company also elected the practical expedient that allows lessees the option to account for lease and non-lease components together as a single component for all classes of underlying assets. See Note 15 (Leases). |
Equity-Based Compensation | Equity-Based Compensation The Company’s stock-based compensation consists of restricted stock issued to key employees and independent directors of the Company. The Company accounts for equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant and recognized on a straight-line basis over the requisite service period of the awards. The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within general and administrative expenses in the consolidated statements of operations. |
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 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. 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. |
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 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 adopted ASU 2020-01 on January 1, 2021. The adoption of this guidance did not have a material impact on its consolidated financial statements. 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: (1) the contract referenced an IBOR rate that is expected to be discontinued; (2) the modified terms directly replace or have the potential to replace the IBOR rate that is expected to be discontinued; and (3) 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. Subsequently, in January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope ("ASU 2021-01"). The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of LIBOR as a benchmark interest rate due to reference rate reform. ASU 2021-01 is effective immediately for all entities with the option to apply retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, and can be applied prospectively to any new contract modifications made on or after January 7, 2021. The ASUs can be adopted no later than December 1, 2022 with early adoption permitted. The relief provided in this guidance is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. However, the guidance does allow an entity to continue to apply certain optional expedients related to hedge accounting. The Company identified the instruments influenced by LIBOR to be its variable rate mortgage notes payable and interest rate cap agreements and is currently in the process of liaising with its lenders to assess the nature of potential changes to its variable rate mortgage notes payable and interest rate cap agreements and therefore determining whether it could meet the conditions of the practical expedients provided by the FASB and elect to not apply the modification accounting requirements to its contracts affected by the reference rate reform within the permitted period of December 31, 2022. In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in Entity’s Own Equity (“ASU 2020-06”) . ASU 2020-06 addresses issues identified as a result of the complexity associated with applying GAAP for certain financial instruments with characteristics of liabilities and equity. For convertible instruments, ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. ASU 2020-06 also enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity and amends the related earnings per share guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted but no earlier than fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The guidance in ASU 2020-06 can be applied through a modified retrospective method of transition or a fully retrospective method of transition. The Company is currently assessing the impact of ASU 2020-06 on its consolidated financial statements and related disclosures from the adoption of ASU 2020-06. In October 2020, the FASB issued ASU 2020-10, Codification Improvements (“ASU 2020-10”). ASU 2020-10 contains improvements to GAAP by ensuring that all guidance that requires or provides an option for an entity to provide information in the notes to financial statements is codified in the disclosure section of GAAP. ASU 2020-10 also contains codifications that are varied in nature and may affect the application of the guidance in cases in which the original guidance may have been unclear. ASU 2020-10 is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company adopted ASU 2020-10 on January 1, 2021. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In November 2020, the SEC issued Release No. 33-10890, Amendments to Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information , to simplify, modernize and enhance certain financial disclosure requirements in Regulation S-K. This amendment became effective on February 10, 2021. Early Adoption was permitted. The Company early adopted these modifications in its Annual Report on Form 10-K filed with the SEC on March 12, 2021. The adoption of this guidance did not have a material impact on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis | 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, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements (1) $ — $ 21,255 $ — December 31, 2020 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets: Interest rate cap agreements (1) $ — $ 7,852 $ — _______________ (1) See Note 14 (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. |
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, 2021 and 2020: June 30, 2021 2020 Cash and cash equivalents $ 160,949,592 $ 330,674,998 Restricted cash 28,399,975 36,667,410 Total cash, cash equivalents and restricted cash $ 189,349,567 $ 367,342,408 |
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, 2021 and 2020: June 30, 2021 2020 Cash and cash equivalents $ 160,949,592 $ 330,674,998 Restricted cash 28,399,975 36,667,410 Total cash, cash equivalents and restricted cash $ 189,349,567 $ 367,342,408 |
Internalization Transaction (Ta
Internalization Transaction (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Net Consideration | The Company accounted for the Internalization Transaction as a business combination under the acquisition method of accounting. Pursuant to the terms of the Internalization Transaction, the following consideration was given in exchange for all of the membership interests in SRSH: Amount Cash consideration (1) $ 31,249,000 Class B OP Units issued 6,155,613.92 Fair value per Class B OP Unit $ 15.23 Fair value of OP Unit Consideration 93,750,000 Promote price (2) 1,000 Accounting value of total consideration $ 125,000,000 _______________ (1) Represents the contractual cash consideration before adjustments to reflect affiliates assets acquired in the Internalization Transaction of $2,717,634 and affiliates liabilities assumed in the Internalization Transaction of $4,701,436. (2) Represents the repurchase of Class A Convertible Stock by the Company. |
Summary of Purchase Price Allocation | The following table summarizes the finalized purchase price allocation as of the date of the Internalization Transaction: Amount Assets: Accounts receivable from affiliates $ 3,908,946 Finance lease right-of-use asset 20,925 Other assets 49,919 Property management agreements intangibles (1) 815,000 Operating lease right-of-use asset 1,651,415 Repurchase of Class A Convertible Stock 1,000 Goodwill 125,220,448 Total assets acquired 131,667,653 Liabilities: Accrued personnel costs (4,995,313) Finance lease liability (20,925) Operating lease liability (1,651,415) Total liabilities assumed (6,667,653) Net assets acquired $ 125,000,000 _______________ (1) The intangible assets acquired consist of property management agreements that the Company, acting as advisor and property manager through certain subsidiaries, has with affiliates of SRI (as amended from time to time, the “SRI Property Management Agreements”). The value of the SRI Property Management Agreements was determined based on a discounted cash flow valuation of the projected revenues of the acquired agreements. The SRI Property Management Agreements are subject to an estimated useful life of one year. As of June 30, 2021, the SRI Property Management Agreements were approximately 83% amortized. |
Schedule of Pro Forma Operating Information | The pro forma operating information excludes certain nonrecurring adjustments, such as acquisition fees and expenses incurred, to reflect the pro forma impact the acquisition would have on earnings on a continuous basis: Year Ended December 31, 2020 2019 Revenue $ 303,851,813 $ 323,258,776 Net income (loss) (1)(2) $ (109,151,163) $ 29,545,827 Net income (loss) attributable to noncontrolling interests $ (5,759,798) $ 1,585,124 Net income (loss) attributable to common stockholders (3) $ (103,391,365) $ 27,960,703 Net income (loss) attributable to common stockholders per share - basic and diluted $ (1.04) $ 0.26 _______________ (1) The incremental cost of hiring the existing workforce responsible for the Company’s real estate management and operations of $17,906,923 and $17,742,481, was included in pro forma expenses in arriving at the pro forma net income (loss) for the years ended December 31, 2020 and 2019, respectively. The pro forma impact of the Internalization Transaction on the Company’s historical results of operations based on the historical net income of SRI and its affiliates was $19,083,158 for the year ended December 31, 2019. (2) Contemporaneously with the Internalization Closing, the Company hired 634 employees, previously employed by SRI and its affiliates, to operate all of the assets necessary to operate the business of the Company. (3) Amount is net of net income (loss) attributable to noncontrolling interests and distributions to preferred shareholders. |
Real Estate (Tables)
Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Assets Acquired | The following is a summary of the real estate property acquired during the six months ended June 30, 2021: Purchase Price Allocation Property Name Location Purchase Date Homes Land Buildings and Improvements Tenant Origination and Absorption Costs Total Purchase Price Ballpark Apartments at Huntsville, AL 6/29/2021 274 $ 3,773,236 $ 72,579,544 $ 1,113,905 $ 77,466,685 The following table presents 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 Buildings and improvements 959,337,747 411,461,858 Acquired intangibles 27,027,759 10,041,373 Other assets 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, net $ (506,023,981) $ (289,407,045) Other liabilities (46,135,318) (17,698,011) Total liabilities: $ (552,159,299) $ (307,105,056) Fair value of net assets acquired $ 693,400,974 $ 193,893,305 |
Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles | As of June 30, 2021 and December 31, 2020, investments in real estate and accumulated depreciation and amortization related to the Company’s consolidated real estate properties was as follows: June 30, 2021 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Investments in real estate $ 343,297,680 $ 2,984,948,698 $ 1,682,900 $ 3,329,929,278 $ 30,288,753 Less: Accumulated depreciation and amortization — (461,637,726) (97,751) (461,735,477) — Net investments in real estate and related lease intangibles $ 343,297,680 $ 2,523,310,972 $ 1,585,149 $ 2,868,193,801 $ 30,288,753 December 31, 2020 Assets Land Building and Improvements (1) Tenant Origination and Absorption Costs Total Real Estate Held for Investment Real Estate Under Development Investments in real estate $ 337,322,234 $ 2,882,411,683 $ 1,752,793 $ 3,221,486,710 $ 39,891,218 Less: Accumulated depreciation and amortization — (397,413,838) (330,839) (397,744,677) — Net investments in real estate and related lease intangibles $ 337,322,234 $ 2,484,997,845 $ 1,421,954 $ 2,823,742,033 $ 39,891,218 |
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, 2021, and thereafter is as follows: July 1 to December 31, 2021 $ 149,501 2022 274,149 2023 280,777 2024 288,703 2025 296,860 Thereafter 1,059,469 $ 2,349,459 |
Schedule of Real Estate Under Development | During the three and six months ended June 30, 2021, 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 (1) Murfreesboro, TN 5/30/2019 $ 2,469,183 $ 9,879,800 $ 12,348,983 Arista at Broomfield Broomfield, CO 3/13/2020 7,283,803 1,666,615 8,950,418 Flatirons Broomfield, CO 6/19/2020 8,574,704 414,649 8,989,353 $ 18,327,690 $ 11,961,064 $ 30,288,754 _______________ (1) The Company is developing Garrison Station, which consists of nine residential buildings comprised of 176 apartment homes. During the six months ended June 30, 2021, five buildings comprised of 95 apartment homes were placed in service totaling $17,703,957, and are included in total real estate held for investment, net in the accompanying consolidated balance sheets. |
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 estimated value per share at the time of Mergers $ 15.84 $ 15.84 Value of STAR’s 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 shares of the Company’s common stock upon consummation of the Mergers. |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Unaudited financial information for the Joint Venture for the three and six months ended June 30, 2020, is summarized below: Three Months Ended June 30, 2020 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 loss from unconsolidated joint venture $ (2,968,207) $ (3,003,400) |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | As of June 30, 2021 and December 31, 2020, other assets consisted of: June 30, 2021 December 31, 2020 Prepaid expenses $ 1,867,500 $ 6,446,847 SRI Property Management Agreements, net 135,830 543,332 Interest rate cap agreements (Note 14) 21,255 7,852 Other deposits 853,917 649,470 Corporate computers, net 166,622 132,708 Lease right-of-use assets, net (Note 15) (1) 1,609,503 2,145,505 Other assets $ 4,654,627 $ 9,925,714 ____________________ (1) As of June 30, 2021, lease ROU assets, net included finance lease ROU asset, net of $10,725 and operating ROU assets, net of $1,598,778. As of December 31, 2020, lease ROU assets, net included finance lease ROU asset, net of $16,845 and operating ROU assets, net of $2,128,660. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020. June 30, 2021 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 10/16/2022 - 1/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR + 2.31% 2.22% $ 121,210,315 Fixed rate 42 10/1/2022 - 10/1/2056 3.19% 4.66% 3.85% 1,270,499,536 Mortgage notes payable, gross 46 3.71% 1,391,709,851 Premiums and discounts, net (2) 2,968,685 Deferred financing costs, net (3) (6,081,617) Mortgage notes payable, net $ 1,388,596,919 December 31, 2020 Interest Rate Range Weighted Average Interest Rate Type Number of Instruments Maturity Date Range Minimum Maximum Principal Outstanding Variable rate (1) 4 10/16/2022 - 1/1/2027 1-Mo LIBOR + 1.88% 1-Mo LIBOR +2.31% 2.27% $ 113,452,357 Fixed rate 42 10/1/2022 - 10/1/2056 3.19% 4.66% 3.85% 1,273,877,535 Mortgage notes payable, gross 46 3.72% 1,387,329,892 Premiums and discount, net (2) 3,809,734 Deferred financing costs, net (3) (6,756,841) Mortgage notes payable, net $ 1,384,382,785 ________________ (1) See Note 14 (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, 2021 and December 31, 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: Net Debt Premium (Discount) before Amortization as of June 30, 2021 Amortization of Debt (Premium) Discount During the Six Months Ended June 30, 2021 Unamortized Net Debt Premium (Discount) as of June 30, 2021 $ 15,375,305 $ (2,949,400) $ 12,425,905 (10,179,526) 722,306 (9,457,220) $ 5,195,779 $ (2,227,094) $ 2,968,685 Net Debt Premium (Discount) before Amortization as of December 31, 2020 Amortization of Debt (Premium) Discount During the Year Ended December 31, 2020 Unamortized Net Debt Premium (Discount) as of December 31, 2020 $ 15,375,305 $ (1,836,575) $ 13,538,730 (10,179,526) 450,530 (9,728,996) $ 5,195,779 $ (1,386,045) $ 3,809,734 (3) Accumulated amortization related to deferred financing costs as of June 30, 2021 and December 31, 2020 was $4,170,407 and $3,495,183, 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 29 $ 791,020,471 |
Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility | As of June 30, 2021 and December 31, 2020, 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, 2021 December 31, 2020 Principal balance on MCFA, gross $ 592,137,000 $ 592,137,000 Principal balance on PNC MCFA, gross 158,340,000 158,340,000 Deferred financing costs, net on MCFA (1) (3,202,518) (3,436,850) Deferred financing costs, net on PNC MCFA (2) (1,599,176) (1,689,935) Deferred financing costs, net on Revolver (3) (390,079) (487,329) Credit facilities, net $ 745,285,227 $ 744,862,886 _______________ (1) Accumulated amortization related to deferred financing costs in respect of the MCFA as of June 30, 2021 and December 31, 2020, was $1,532,597 and $1,298,265, respectively. (2) Accumulated amortization related to deferred financing costs in respect of the PNC MCFA as of June 30, 2021 and December 31, 2020, was $190,042 and $99,283, respectively. |
Summary of Aggregate Maturities | The following is a summary of the Company’s aggregate maturities as of June 30, 2021: Maturities During the Years Ending December 31, Contractual Obligations Total Remainder of 2021 2022 2023 2024 2025 Thereafter Principal payments on outstanding debt (1) $ 2,142,186,851 $ 4,475,904 $ 49,688,647 $ 60,661,183 $ 58,178,998 $ 197,591,629 $ 1,771,590,490 ________________ (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, 2021 | |
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, 2021 and year ended December 31, 2020, for the restricted stock issued to the Company’s independent directors were as follows: Six Months Ended June 30, 2021 Year Ended December 31, 2020 Nonvested shares at the beginning of the period 33,369 7,497 Granted shares — 31,288 Vested shares (1,667) (5,416) Nonvested shares at the end of the period 31,702 33,369 Additionally, the weighted average fair value of restricted common stock issued to the Company’s independent directors for the six months ended June 30, 2021 and year ended December 31, 2020 was as follows: Grant Year Weighted Average Fair Value 2020 $ 15.36 2021 N/A |
Schedule of Share Repurchase Plan Following Estimated Value Per Share of Common Stock is Published | Prior to the March 3, 2020 amendments (described above), 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% 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” equaled 93% of the most recently publicly disclosed estimated value per share determined by the Company’s board of directors. (3) The required one year holding period did 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 was equal to the average issue price per share for all of the stockholder’s shares. |
Dividends Declared | The following tables reflect distributions declared and paid to common stockholders and Class A-2 and Class B OP Unit holders (the “Noncontrolling Interest OP Unit Holders”) for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Common Stockholders Noncontrolling Interest OP Unit Holders Total Common Stockholders Noncontrolling Interest OP Unit Holders Total DRP distributions declared (in shares) 198,278 — 198,278 448,840 — 448,840 DRP distributions declared (value) $ 3,083,215 $ — $ 3,083,215 $ 6,899,269 $ — $ 6,899,269 Cash distributions declared 11,342,530 929,900 12,272,430 25,289,682 2,075,906 27,365,588 Total distributions declared $ 14,425,745 $ 929,900 $ 15,355,645 $ 32,188,951 $ 2,075,906 $ 34,264,857 DRP distributions paid (in shares) 199,903 — 199,903 501,978 — 501,978 DRP distributions paid (value) $ 3,108,489 $ — $ 3,108,489 $ 7,709,092 $ — $ 7,709,092 Cash distributions paid 11,472,032 940,119 12,412,151 28,113,767 2,310,906 30,424,673 Total distributions paid $ 14,580,521 $ 940,119 $ 15,520,640 $ 35,822,859 $ 2,310,906 $ 38,133,765 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Common Stockholders Noncontrolling Interest OP Unit Holders Total Common Stockholders Noncontrolling Interest OP Unit Holders Total DRP distributions declared (in shares) 352,192 — 352,192 676,428 — 676,428 DRP distributions declared (value) $ 5,363,890 $ — $ 5,363,890 $ 10,499,787 $ — $ 10,499,787 Cash distributions declared 19,061,204 163,314 19,224,518 29,316,841 163,314 29,480,155 Total distributions declared $ 24,425,094 $ 163,314 $ 24,588,408 $ 39,816,628 $ 163,314 $ 39,979,942 DRP distributions paid (in shares) 349,989 — 349,989 670,958 — 670,958 DRP distributions paid (value) $ 5,399,458 $ — $ 5,399,458 $ 10,483,613 $ — $ 10,483,613 Cash distributions paid 19,150,001 163,314 19,313,315 25,866,713 163,314 26,030,027 Total distributions paid $ 24,549,459 $ 163,314 $ 24,712,773 $ 36,350,326 $ 163,314 $ 36,513,640 |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Schedule of activity for noncontrolling interests recorded as equity | The changes in the carrying amount of noncontrolling interests consisted of the following for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Beginning balance Class A-2 OP Units $ 12,962,395 $ — $ 13,219,354 $ — Issuance of Class A-2 OP Units — 14,450,000 — 14,450,000 (Loss) income allocated to Class A-2 OP Units (88,555) 163,314 (192,466) 163,314 Distributions to Class A-2 OP Units (124,187) (163,314) (277,235) (163,314) Beginning balance Class B OP Units 89,435,984 — 91,103,305 — Loss allocated to Class B OP Units (574,698) — (1,249,061) — Distributions to Class B OP Units (805,713) — (1,798,671) — Noncontrolling interests ending balance $ 100,805,226 $ 14,450,000 $ 100,805,226 $ 14,450,000 |
Related Party Arrangements (Tab
Related Party Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Attributable to the Advisor and its Affiliates | Summarized below are the related party transactions incurred by the Company for the three and six months ended June 30, 2021 and 2020, respectively, and any related amounts payable and (receivable) as of June 30, 2021 and December 31, 2020: Incurred (Received) For the Incurred (Received) For the Payable (Receivable) as of Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Jun 30, 2021 Dec 31, 2020 Consolidated Statements of Operations: Expensed Investment management fees (1) $ — $ 8,535,093 $ — $ 13,889,530 $ — $ — Due diligence costs (2) 4,166 — 37,166 1,111 — 102,301 Loan coordination fees (1) — 1,116,700 — 1,605,652 — — Disposition fees (3) — — — 338,750 — — Disposition transaction costs (3) — — — 5,144 — — Property management: Fees (1) 4,263 2,369,487 8,550 3,865,857 1,514 5,585 Reimbursement of onsite personnel (4) — 7,780,381 — 12,475,428 — — Reimbursement of other (1) — 1,688,053 — 2,775,590 — — Reimbursement of property operations (4) 9,096 109,188 9,168 188,199 — — Reimbursement of property G&A (2) — 51,811 — 84,216 — — Other operating expenses (2) 417,373 954,292 862,686 1,664,464 68,536 158,723 Reimbursement of personnel benefits and other costs (5) 80,270 — 112,362 — 4,040 20,457 Insurance proceeds (6) — (150,000) — (150,000) — — Property insurance (2) — 1,515,016 — 2,439,952 — — Earned Rental revenue (7) — (23,282) — (41,029) — — Transition services agreement income (6) (6,353) — (14,531) — (13,072) (103,552) SRI Property management agreement income (6) (324,550) — (562,759) — (118,093) (77,760) Other reimbursement income under the SRI property management agreements (6) (120,979) — (211,532) — — (21,980) Reimbursement of onsite personnel income under the SRI property management agreements (6) (1,099,931) — (2,175,540) — (74,888) (173,927) SRI construction management fee income (6) (19,533) — (64,905) — (2,358) — Consolidated Balance Sheets: Sublease security deposit (8) — — — — (85,000) (85,000) Deferred financing costs (9) — 49,050 — 49,050 — — Capitalized to Real Estate Capitalized development services fee (10) — 151,071 — 302,142 — 50,357 Capitalized investment management fees (10) — 98,454 — 179,668 — — Capitalized development costs (10) — 2,435 1,600 3,030 — — Acquisition expenses (11) — 133,695 — 389,919 — — Acquisition fees (11) — 341,371 — 17,717,639 — — Loan coordination fees (11) — 224,000 — 8,812,071 — — Construction management: Fees (12) — 259,509 — 382,272 — — Reimbursement of labor costs (12) — 95,692 — 166,239 — — Additional paid-in capital Distributions to Class B OP Unit holders (13) 805,713 — 1,798,671 — 265,620 469,236 $ (250,465) $ 25,302,016 $ (199,064) $ 67,144,894 $ 46,299 $ 344,440 __________________ 1) Included in fees to affiliates in the accompanying consolidated statements of operations. Property management fees of $4,263 relate to compliance fees incurred under a compliance agreement with the Former Property Manager, as defined below, to follow certain tax compliance procedures with respect to the leasing of apartment homes to qualified residents. 2) Included in general and administrative expenses in the accompanying consolidated statements of operations. Due diligence costs of $4,166 represent acquisition expenses related to the Company’s real estate projects that did not come to fruition and which were incurred by an affiliate of SIP on behalf of the Company. Other operating expenses of $417,373 relate to sublease rental expenses of $273,846 and $143,527 of expenses related to information systems costs incurred by SIP on behalf of the Company. 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) Represents reimbursements of miscellaneous employee related costs to SIP for the period when benefits were administered by SIP. The employer benefit cost portion is included in general and administrative expenses in the accompanying consolidated statements of operations. 6) Included in other income in the accompanying consolidated statements of operations. 7) Included in rental income in the accompanying consolidated statements of operations. 8) Included in other assets in the accompanying consolidated balance sheets. 9) Included in notes payable, net in the accompanying consolidated balance sheets. 10) Included in real estate held for development in the accompanying consolidated balance sheets. 11) Included in total real estate, net in the accompanying consolidated balance sheets. 12) Included in building and improvements in the accompanying consolidated balance sheets. 13) Included in cumulative distributions and net losses in the accompanying consolidated balance sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net loss attributable to common stockholders $ (13,037,659) $ (53,224,622) $ (27,068,948) $ (62,905,750) Less: Distributions declared on Class A-2 OP Units — (163,314) — (163,314) Distributions related to unvested restricted stockholders (1) (41,370) (2,796) (92,353) (5,667) Numerator for loss per common share — basic $ (13,079,029) $ (53,390,732) $ (27,161,301) $ (63,074,731) Weighted average common shares outstanding — basic and diluted (2) 109,905,923 109,139,963 109,896,333 88,660,741 Loss per common share — basic and diluted $ (0.12) $ (0.49) $ (0.25) $ (0.71) _____________________ (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. (2) The Company excluded all unvested restricted common shares outstanding issued to the Company’s independent directors and certain key employees, the Class A-2 OP Units and the Class B OP Units from the calculation of diluted loss per common share as the effect would have been antidilutive. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 and December 31, 2020: June 30, 2021 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 7/1/2021 - 7/1/2023 One-Month LIBOR 6 $ 334,300,350 0.10% 3.57% $ 21,255 December 31, 2020 Type Maturity Date Range Based on Number of Instruments Notional Amount Variable Rate Weighted Average Rate Cap Fair Value Interest Rate Cap 1/1/2021 - 7/1/2023 One-Month LIBOR 9 $ 407,935,350 0.14% 3.41% $ 7,852 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease costs were as follows: Three Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 6,469 $ 9,021 Operating Lease cost (1) General and administrative 241,549 — Finance lease cost Amortization of leased assets Depreciation and amortization 3,060 — Accretion of lease liabilities Interest expense 86 — Total lease cost $ 251,164 $ 9,021 Six Months Ended June 30, Lease Cost Classification 2021 2020 Operating Lease cost (1) Operating, maintenance and management $ 16,513 $ 16,526 Operating Lease cost (1) General and administrative 483,098 — Finance lease cost Amortization of leased assets Depreciation and amortization 6,120 — Accretion of lease liabilities Interest expense 193 — Total lease cost $ 505,924 $ 16,526 _____________________ (1) Includes short-term leases and variable lease costs, which are immaterial. Other information related to leases was as follows: Lease Term and Discount Rate June 30, 2021 December 31, 2020 Weighted average remaining lease term (in years) Operating leases 3.2 3.4 Finance leases 0.9 1.4 Weighted average discount rate Operating Leases 3.3 % 3.2 % Finance Leases 2.9 % 2.9 % Six Months Ended June 30, Supplemental Disclosure of Cash Flows Information 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows related to operating leases $ 567,794 $ 79,884 Operating cash outflows related to finance leases $ 6,120 $ — Financing cash outflows related to finance leases $ — $ — |
Schedule of Operating Lease Maturity | The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled lease obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31, and thereafter, as well as the reconciliation of those cash flows to operating lease liabilities on the Company’s accompanying consolidated balance sheets: Year Amount Remainder of 2021 $ 594,614 2022 611,239 2023 188,990 2024 122,026 2025 94,506 Thereafter 266,910 Total undiscounted operating lease payments $ 1,878,285 Less: interest (293,387) Present value of operating lease liabilities $ 1,584,898 |
Schedule of Finance Lease Maturity | Finance Leases The following table sets forth as of June 30, 2021, the undiscounted cash flows of the Company’s scheduled obligations for future minimum payments for the six months ending December 31, 2021 and for each of the next four years ending December 31 and thereafter, as well as a reconciliation of those cash flows to finance lease liabilities: Year Amount Remainder of 2021 $ 6,120 2022 5,100 2023 — 2024 — 2025 — Thereafter — Total undiscounted finance lease payments $ 11,220 Less: interest (127) Present value of finance lease liabilities $ 11,093 |
Organization and Business - Nar
Organization and Business - Narrative (Details) | Aug. 31, 2020USD ($)$ / sharesshares | Mar. 06, 2020USD ($)joint_ventureapartment_homemultifamily_property$ / sharesshares | Mar. 24, 2016USD ($)shares | Dec. 30, 2013$ / sharesshares | Sep. 03, 2013USD ($)$ / sharesshares | Aug. 22, 2013USD ($)shares | Jun. 30, 2021USD ($)$ / sharesshares | Mar. 24, 2016USD ($)shares | Mar. 24, 2016USD ($)shares | Jun. 30, 2021multifamily_property | Jun. 30, 2021parcel_of_land | Jun. 30, 2021apartment | Jun. 30, 2021residential_building | Jun. 30, 2021apartment_home | Jun. 30, 2021 | Apr. 01, 2021$ / shares | Dec. 31, 2020$ / shares | May 01, 2020$ / shares |
SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Gross real estate assets | $ | $ 1,500,000,000 | |||||||||||||||||
SIR Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||
Entity shares issued per acquiree share | 0.5934 | |||||||||||||||||
STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||||
Entity shares issued per acquiree share | 1.430 | |||||||||||||||||
Multifamily | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of multifamily properties | multifamily_property | 70 | |||||||||||||||||
Multifamily | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of multifamily properties | multifamily_property | 36 | |||||||||||||||||
Residential Real Estate | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of parcels of land held for development | parcel_of_land | 3 | |||||||||||||||||
Homes | 21,936 | 21,936 | ||||||||||||||||
Residential Real Estate | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Homes | apartment_home | 10,166 | |||||||||||||||||
Garrison Station | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of apartment homes, in service | 95 | 95 | ||||||||||||||||
Number of residential buildings, in service | residential_building | 5 | |||||||||||||||||
Number of residential buildings | residential_building | 9 | |||||||||||||||||
Number of apartment homes | apartment_home | 176 | |||||||||||||||||
Unconsolidated Properties | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of apartment homes | apartment_home | 4,584 | |||||||||||||||||
Number of unconsolidated joint ventures | joint_venture | 1 | |||||||||||||||||
Unconsolidated Properties | Joint Venture | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of multifamily properties | multifamily_property | 20 | |||||||||||||||||
Unconsolidated Properties | Steadfast Apartment REIT, Inc. | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Noncontrolling interest, ownership percentage | 10.00% | |||||||||||||||||
Common Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 0.525 | |||||||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||
Common Stock | SIR and STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 56,016,053 | |||||||||||||||||
Common Stock | Primary Offering | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||||||||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 66,666,667 | |||||||||||||||||
Common Stock | Distribution Reinvestment Plan | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 8,537,015 | 1,011,561 | ||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 14.25 | $ 15.55 | $ 15.23 | |||||||||||||||
Maximum number of shares authorized for sale under registration statement (in shares) | 7,017,544 | |||||||||||||||||
Proceeds from issuance of common stock | $ | $ 128,009,661 | $ 14,414,752 | ||||||||||||||||
Common Stock | IPO | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 48,625,651 | 112,167,095 | 48,625,651 | |||||||||||||||
Proceeds from issuance of common stock | $ | $ 724,849,631 | $ 1,725,738,819 | $ 640,012,497 | |||||||||||||||
Convertible Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | 0.01 | ||||||||||||||||
Class A Convertible Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Promote price | $ | $ 1,000 | |||||||||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||
Operating Partnership Units | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Ownership percentage | 94.00% | |||||||||||||||||
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 | |||||||||||||||||
Sponsor | Common Stock | SIR Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 43,775,314 | |||||||||||||||||
Sponsor | Common Stock | STAR III Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 12,240,739 | |||||||||||||||||
Advisor | Convertible Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 1,000 | |||||||||||||||||
Issuance of common stock | $ | $ 1,000 | |||||||||||||||||
STAR RS Holdings, LLC (SRSH) | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Share price (in dollars per share) | $ / shares | $ 15.23 | |||||||||||||||||
Value of consideration transferred excluding convertible shares | $ | $ 124,999,000 | |||||||||||||||||
Cash consideration | $ | $ 31,249,000 | |||||||||||||||||
Fair value per Class B OP Unit (in dollars per share) | $ / shares | $ 15.23 | |||||||||||||||||
STAR RS Holdings, LLC (SRSH) | Board of Directors Chairman and Chief Executive Officer | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Percentage of voting interests acquired | 48.60% | |||||||||||||||||
STAR RS Holdings, LLC (SRSH) | Common Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Issuance of common stock (in shares) | 56,016,053 | |||||||||||||||||
STAR RS Holdings, LLC (SRSH) | Class A Convertible Stock | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Promote price | $ | $ 1,000 | |||||||||||||||||
STAR RS Holdings, LLC (SRSH) | Class B OP Units | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Number of Class B units issued (in shares) | 6,155,613.92 | 6,155,613.92 | ||||||||||||||||
Steadfast Apartment REIT, Inc. | SIR Merger Agreement | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
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 | |||||||||||||||||
SRI and Affiliates | Operating Partnership Units | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Ownership percentage | 5.00% | |||||||||||||||||
Unaffiliated Third Parties | Operating Partnership Units | ||||||||||||||||||
Initial capitalization | ||||||||||||||||||
Ownership percentage | 1.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative - Casualty Loss (Details) - February 2021 Winter Storm | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Unusual or Infrequent Item, or Both [Line Items] | |
Property damage and other losses | $ 23,164,541 |
Insurance recoveries | $ 23,164,541 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative - Real Estate Assets (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)multifamily_property | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)multifamily_property | |
Accounting Policies [Abstract] | ||||
Impairment of real estate | $ | $ 0 | $ 5,039,937 | $ 0 | $ 5,039,937 |
Number of real estate properties impaired | multifamily_property | 2 | 2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative - Goodwill (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | ||
Goodwill, Impairment Loss | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Narrative - Rents and Other receivables (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Accounting Policies [Abstract] | |||
Reserve of lease receivables considered not probably for collection | $ 3,080,227 | $ 2,245,067 | $ 2,110,657 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Assets Required to be Measured at Fair Value on a Recurring Basis (Details) - Interest Rate Cap - Fair Value, Recurring - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | 21,255 | 7,852 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate cap agreements | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Narrative - Fair Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 1,388,596,919 | $ 1,384,382,785 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable, fair value | 2,265,796,735 | 2,246,242,677 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value | $ 2,133,882,146 | $ 2,129,245,671 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Narrative - Restricted Cash (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 28,399,975 | $ 38,998,980 | $ 36,667,410 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Schedule of Cash, Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 160,949,592 | $ 258,198,326 | $ 330,674,998 | |
Restricted cash | 28,399,975 | 38,998,980 | 36,667,410 | |
Total cash, cash equivalents and restricted cash | $ 189,349,567 | $ 297,197,306 | $ 367,342,408 | $ 148,539,671 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Narrative - Distribution Policy (Details) - $ / shares | Jul. 24, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Class of Stock [Line Items] | |||||||
REIT taxable income planned distribution rate | 90.00% | ||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | ||||||
Distributions declared per common share (in dollars per share) | $ 0.131 | $ 0.224 | $ 0.292 | $ 0.448 | |||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001438 | $ 0.001438 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Narrative - Segment Disclosure (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 1 |
Internalization Transaction (De
Internalization Transaction (Details) - USD ($) | Aug. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 125,220,448 | $ 125,220,448 | $ 125,220,448 | ||||
Pro forma revenue | $ 303,851,813 | $ 323,258,776 | |||||
Company revenues | 85,624,632 | $ 80,295,594 | 168,782,450 | $ 134,009,534 | |||
Net loss | $ 13,700,912 | $ 53,061,308 | $ 28,510,475 | $ 62,742,436 | |||
Class A Convertible Stock | |||||||
Business Acquisition [Line Items] | |||||||
Promote price | $ 1,000 | ||||||
STAR RS Holdings, LLC (SRSH) | |||||||
Business Acquisition [Line Items] | |||||||
Value of consideration transferred excluding convertible shares | 124,999,000 | ||||||
Cash consideration | $ 31,249,000 | ||||||
Fair value per Class B OP Unit (in dollars per share) | $ 15.23 | ||||||
Goodwill | $ 125,220,448 | ||||||
Pro forma revenue | 96,500,000 | ||||||
Property management services | 2,500,000 | ||||||
Net loss | 400,000 | ||||||
STAR RS Holdings, LLC (SRSH) | Consolidation, Eliminations | |||||||
Business Acquisition [Line Items] | |||||||
Company revenues | $ 93,900,000 | ||||||
STAR RS Holdings, LLC (SRSH) | Class B OP Units | |||||||
Business Acquisition [Line Items] | |||||||
Number of Class B units issued (in shares) | 6,155,613.92 | 6,155,613.92 | |||||
STAR RS Holdings, LLC (SRSH) | Class A Convertible Stock | |||||||
Business Acquisition [Line Items] | |||||||
Promote price | $ 1,000 |
Internalization Transaction - S
Internalization Transaction - Schedule of Net Consideration (Details) - USD ($) | Aug. 31, 2020 | Jun. 30, 2021 |
Business Acquisition [Line Items] | ||
Accounting value of total consideration | $ 3,224,081,403 | |
Class A Convertible Stock | ||
Business Acquisition [Line Items] | ||
Promote price | $ 1,000 | |
STAR RS Holdings, LLC (SRSH) | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 31,249,000 | |
Fair value per Class B OP Unit (in dollars per share) | $ 15.23 | |
Fair value of OP Unit Consideration | $ 93,750,000 | |
Accounting value of total consideration | 125,000,000 | |
Assets acquired from affiliates | 2,717,634 | |
Liabilities assumed from affiliates | $ 4,701,436 | |
STAR RS Holdings, LLC (SRSH) | Class B OP Units | ||
Business Acquisition [Line Items] | ||
Number of Class B units issued (in shares) | 6,155,613.92 | 6,155,613.92 |
STAR RS Holdings, LLC (SRSH) | Class A Convertible Stock | ||
Business Acquisition [Line Items] | ||
Promote price | $ 1,000 |
Internalization Transaction -_2
Internalization Transaction - Schedule of Purchase Price Allocation (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2020 | |
Assets: | |||
Goodwill | $ 125,220,448 | $ 125,220,448 | |
Contract-Based Intangible Assets | |||
Liabilities: | |||
Useful life | 1 year | ||
Amortization percentage | 83.00% | ||
STAR RS Holdings, LLC (SRSH) | |||
Assets: | |||
Accounts receivable from affiliates | $ 3,908,946 | ||
Finance lease right-of-use asset | 20,925 | ||
Other assets | 49,919 | ||
Property management agreements intangibles | 815,000 | ||
Operating lease right-of-use asset | 1,651,415 | ||
Repurchase of Class A Convertible Stock | 1,000 | ||
Goodwill | 125,220,448 | ||
Total assets acquired | 131,667,653 | ||
Liabilities: | |||
Accrued personnel costs | (4,995,313) | ||
Finance lease liability | (20,925) | ||
Operating lease liability | (1,651,415) | ||
Total liabilities assumed | (6,667,653) | ||
Net assets acquired | $ 125,000,000 |
Internalization Transaction -_3
Internalization Transaction - Schedule of Pro Forma Operating Information (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Aug. 31, 2020employee | |
Business Acquisition [Line Items] | |||
Revenue | $ 303,851,813 | $ 323,258,776 | |
Net income (loss) | $ (109,151,163) | $ 29,545,827 | |
Net income (loss) attributable to common stockholders per share - basic and diluted (in dollars per share) | $ / shares | $ (1.04) | $ 0.26 | |
Hiring of existing workforce responsible for real estate management | $ 17,906,923 | ||
Hiring of existing workforce responsible for operations | $ 17,742,481 | ||
STAR RS Holdings, LLC (SRSH) | |||
Business Acquisition [Line Items] | |||
Revenue | 96,500,000 | ||
Number of employees hired | employee | 634 | ||
SRI and Affiliates | |||
Business Acquisition [Line Items] | |||
Net income (loss) | 19,083,158 | ||
Noncontrolling Interest | |||
Business Acquisition [Line Items] | |||
Net income (loss) | (5,759,798) | 1,585,124 | |
Total STAR Stockholders’ Equity | |||
Business Acquisition [Line Items] | |||
Net income (loss) | $ (103,391,365) | $ 27,960,703 |
Real Estate - Narrative (Detail
Real Estate - Narrative (Details) | Mar. 06, 2020$ / sharesshares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)tenant | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)tenant | Jun. 30, 2021USD ($) | Jun. 30, 2021multifamily_property | Jun. 30, 2021parcel_of_land | Jun. 30, 2021apartment | Jun. 30, 2021apartment_home | Jun. 30, 2021 |
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Accounting value of total consideration | $ 3,224,081,403 | |||||||||||
Average percentage of real estate portfolio occupied | 96.20% | 95.40% | ||||||||||
Average monthly collected rent | $ 1,198 | $ 1,173 | ||||||||||
Depreciation and amortization | $ 33,277,511 | $ 53,455,666 | 67,152,017 | $ 82,031,561 | ||||||||
Amortization of intangible assets | 553,612 | 20,140,511 | 1,371,066 | 25,964,584 | ||||||||
Amortization of right of use leased asset | 3,367 | 2,209 | 6,734 | 3,477 | ||||||||
Amortization of other intangible assets | 1,671 | 1,671 | $ 3,342 | 2,594 | ||||||||
Weighted-average amortization period of other intangible assets as of the date of acquisition | 10 years | |||||||||||
Security deposit liability | 98.10% | |||||||||||
Garrison Station | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Number of apartment homes, in service | apartment_home | 95 | |||||||||||
Residential Real Estate | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Current period acquisitions | multifamily_property | 1 | |||||||||||
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 | |||||||||||
February 2021 Winter Storm | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Storm damage provision | $ 14,902,551 | 0 | ||||||||||
Property Management Fees and Expenses | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Amortization of intangible assets | 206,811 | 0 | 413,622 | 0 | ||||||||
Residential Real Estate | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Number of parcels of land held for development | parcel_of_land | 3 | |||||||||||
Homes | 21,936 | 21,936 | ||||||||||
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 | 32,708,712 | 33,315,155 | 65,752,765 | 56,066,977 | ||||||||
Furniture and Fixtures | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Depreciation | 15,187 | 0 | 28,186 | 0 | ||||||||
Tenant Origination and Absorption Costs | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Amortization of intangible assets | $ 343,434 | $ 20,138,302 | $ 950,710 | $ 25,961,107 | ||||||||
Weighted-average amortization period of other intangible assets as of the date of acquisition | 1 year | |||||||||||
Accounts Payable and Accrued Liabilities | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Average monthly collected rent | $ 9,011,485 | $ 8,545,977 | ||||||||||
Real estate portfolio earned in excess of rental income from residential tenants | 99.00% | 99.00% | 99.00% | |||||||||
Real estate portfolio earned in excess of rental income from commercial tenants | 1.00% | 1.00% | 1.00% | |||||||||
Steadfast Apartment REIT, Inc. | SIR Merger Agreement | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
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 | $ 30,288,753 | |||||||||||
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 | 5 years 7 months 9 days | 5 years 7 months 9 days | ||||||||||
Maximum | Commercial Tenants | ||||||||||||
Real Estate Investment Property and Accumulated Depreciation and Amortization [Line Items] | ||||||||||||
Remaining lease durations | 9 years | 9 years |
Real Estate - Schedule of Curre
Real Estate - Schedule of Current Period Acquisitions (Details) - Residential Real Estate - Ballpark Apartments at Town Madison | Jun. 29, 2021USD ($)apartment_home |
Asset Acquisition [Line Items] | |
Homes | apartment_home | 274 |
Tenant Origination and Absorption Costs | $ 1,113,905 |
Total Purchase Price | 77,466,685 |
Land | |
Asset Acquisition [Line Items] | |
Land, Buildings and Improvements | 3,773,236 |
Buildings and Improvements | |
Asset Acquisition [Line Items] | |
Land, Buildings and Improvements | $ 72,579,544 |
Real Estate - Schedule of Accum
Real Estate - Schedule of Accumulated Depreciation and Amortization Related to Consolidated Real Estate Properties and Related Intangibles (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate [Line Items] | ||
Investments in real estate | $ 3,329,929,278 | $ 3,221,486,710 |
Less: Accumulated depreciation and amortization | (461,735,477) | (397,744,677) |
Total real estate held for investment, net | 2,868,193,801 | 2,823,742,033 |
Land | ||
Real Estate [Line Items] | ||
Investments in real estate | 343,297,680 | 337,322,234 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Total real estate held for investment, net | 343,297,680 | 337,322,234 |
Building and Improvements | ||
Real Estate [Line Items] | ||
Investments in real estate | 2,984,948,698 | 2,882,411,683 |
Less: Accumulated depreciation and amortization | (461,637,726) | (397,413,838) |
Total real estate held for investment, net | 2,523,310,972 | 2,484,997,845 |
Tenant Origination and Absorption Costs | ||
Real Estate [Line Items] | ||
Investments in real estate | 1,682,900 | 1,752,793 |
Less: Accumulated depreciation and amortization | (97,751) | (330,839) |
Total real estate held for investment, net | 1,585,149 | 1,421,954 |
Real Estate Under Development | ||
Real Estate [Line Items] | ||
Investments in real estate | 30,288,753 | 39,891,218 |
Less: Accumulated depreciation and amortization | 0 | 0 |
Total real estate held for investment, net | $ 30,288,753 | $ 39,891,218 |
Real Estate - Schedule of Opera
Real Estate - Schedule of Operating Leases Maturity (Details) | Jun. 30, 2021USD ($) |
Real Estate [Abstract] | |
July 1 to December 31, 2021 | $ 149,501 |
2022 | 274,149 |
2023 | 280,777 |
2024 | 288,703 |
2025 | 296,860 |
Thereafter | 1,059,469 |
Total undiscounted operating lease payments | $ 2,349,459 |
Real Estate - Schedule of Real
Real Estate - Schedule of Real Estate Under Development (Details) | Jun. 30, 2021USD ($)apartment_homeresidential_building | Dec. 31, 2020USD ($) |
Real Estate [Line Items] | ||
Land Held for Development | $ 3,329,929,278 | $ 3,221,486,710 |
Net investments in real estate and related lease intangibles | $ 2,868,193,801 | $ 2,823,742,033 |
Garrison Station | ||
Real Estate [Line Items] | ||
Number of residential buildings | residential_building | 9 | |
Number of apartment homes | apartment_home | 176 | |
Number of residential buildings, in service | residential_building | 5 | |
Number of apartment homes, in service | apartment_home | 95 | |
Net investments in real estate and related lease intangibles | $ 17,703,957 | |
Land Held for Development | ||
Real Estate [Line Items] | ||
Land Held for Development | 18,327,690 | |
Total Carrying Value | 30,288,753 | |
Land Held for Development | TENNESSEE | Garrison Station | ||
Real Estate [Line Items] | ||
Land Held for Development | 2,469,183 | |
Land Held for Development | COLORADO | Arista at Broomfield | ||
Real Estate [Line Items] | ||
Land Held for Development | 7,283,803 | |
Land Held for Development | COLORADO | Flatirons | ||
Real Estate [Line Items] | ||
Land Held for Development | 8,574,704 | |
Real Estate Under Development | ||
Real Estate [Line Items] | ||
Construction in Progress | 11,961,064 | |
Total Carrying Value | 30,288,754 | |
Real Estate Under Development | TENNESSEE | Garrison Station | ||
Real Estate [Line Items] | ||
Construction in Progress | 9,879,800 | |
Total Carrying Value | 12,348,983 | |
Real Estate Under Development | COLORADO | Arista at Broomfield | ||
Real Estate [Line Items] | ||
Construction in Progress | 1,666,615 | |
Total Carrying Value | 8,950,418 | |
Real Estate Under Development | COLORADO | Flatirons | ||
Real Estate [Line Items] | ||
Construction in Progress | 414,649 | |
Total Carrying Value | $ 8,989,353 |
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 |
Entity shares issued per acquiree share | 0.5934 |
STAR III Merger Agreement | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 8,559,957 |
Entity shares issued per acquiree share | 1.430 |
Steadfast Apartment REIT, Inc. | SIR Merger Agreement | |
Business Acquisition [Line Items] | |
Entity shares issued per acquiree share | 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 STAR’s common stock issued as consideration | $ | $ 693,400,974 |
Steadfast Apartment REIT, Inc. | STAR III Merger Agreement | |
Business Acquisition [Line Items] | |
Entity shares issued per acquiree share | 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 STAR’s common stock issued as consideration | $ | $ 193,893,305 |
Class A | STAR III Merger Agreement | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 3,458,807 |
Class R | STAR III Merger Agreement | |
Business Acquisition [Line Items] | |
Common stock issued and outstanding (in shares) | 475,207 |
Class T | STAR III Merger Agreement | |
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 |
Buildings and improvements | 959,337,747 |
Acquired intangibles | 27,027,759 |
Other assets | 122,688,608 |
Investment in unconsolidated joint venture | 22,128,691 |
Total assets acquired | 1,245,560,273 |
Liabilities: | |
Mortgage notes payable, net | (506,023,981) |
Other liabilities | (46,135,318) |
Total liabilities assumed | (552,159,299) |
Fair value of net assets acquired | 693,400,974 |
STAR III Merger Agreement | |
Assets: | |
Land | 58,056,275 |
Buildings and improvements | 411,461,858 |
Acquired intangibles | 10,041,373 |
Other assets | 21,438,855 |
Investment in unconsolidated joint venture | 0 |
Total assets acquired | 500,998,361 |
Liabilities: | |
Mortgage notes payable, net | (289,407,045) |
Other liabilities | (17,698,011) |
Total liabilities assumed | (307,105,056) |
Fair value of net assets acquired | $ 193,893,305 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture - Narrative (Details) - Joint Venture - USD ($) | Jul. 16, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 06, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||||
Other than temporary impairment loss | $ 2,442,411 | |||||
Investment in unconsolidated joint venture | $ 18,955,478 | |||||
Outside basis difference | 8,067,010 | |||||
Capitalized transaction costs | 594,993 | |||||
Amortization of outside basis | 425,966 | $ 432,442 | ||||
Proceeds from equity method investment distributions | $ 0 | $ 242,700 | $ 0 | 360,700 | ||
Unconsolidated Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of joint venture | $ 19,278,280 | |||||
Gain on sale of investment in unconsolidated joint venture | $ 66,802 | |||||
Unconsolidated Properties | Joint Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Noncontrolling interest, ownership percentage | 10.00% |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture - Schedule of Financial Statement Amounts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Revenues | $ 85,624,632 | $ 80,295,594 | $ 168,782,450 | $ 134,009,534 |
Net (loss) income | $ (13,037,659) | (53,224,622) | (27,068,948) | (62,905,750) |
Equity in loss from unconsolidated joint venture | $ 0 | (3,003,400) | ||
Joint Venture | ||||
Equity Method Investment, Summarized Financial Information [Abstract] | ||||
Amortization of outside basis | 425,966 | 432,442 | ||
Joint Venture | BREIT Steadfast MF JV LP | ||||
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) income | (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 loss from unconsolidated joint venture | $ (2,968,207) | $ (3,003,400) |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Schedule of Other Assets [Line Items] | |||||
Prepaid expenses | $ 1,867,500 | $ 1,867,500 | $ 6,446,847 | ||
SRI Property Management Agreements, net | 135,830 | 135,830 | 543,332 | ||
Interest rate cap agreements | 21,255 | 21,255 | 7,852 | ||
Other deposits | 853,917 | 853,917 | 649,470 | ||
Lease right-of-use assets, net | $ 1,609,503 | $ 1,609,503 | $ 2,145,505 | ||
Operating lease, right-of-use asset, statement of financial position | sfar:DeferredFinancingCostsandOtherAssetsNetMember | sfar:DeferredFinancingCostsandOtherAssetsNetMember | sfar:DeferredFinancingCostsandOtherAssetsNetMember | ||
Finance lease, right-of-use asset, statement of financial position | Other assets | Other assets | Other assets | ||
Other assets | $ 4,654,627 | $ 4,654,627 | $ 9,925,714 | ||
Finance lease, right-of-use asset, net | 10,725 | 10,725 | 16,845 | ||
Operating lease right-of-use asset, net | 1,598,778 | 1,598,778 | 2,128,660 | ||
Amortization of intangible assets | 553,612 | $ 20,140,511 | 1,371,066 | $ 25,964,584 | |
Amortization of right of use leased asset | 3,367 | 2,209 | 6,734 | 3,477 | |
Property Management Fees and Expenses | |||||
Schedule of Other Assets [Line Items] | |||||
Amortization of intangible assets | 206,811 | $ 0 | 413,622 | $ 0 | |
Computer Equipment | |||||
Schedule of Other Assets [Line Items] | |||||
Corporate computers, net | $ 166,622 | $ 166,622 | $ 132,708 |
Debt - Summary of Mortgage Note
Debt - Summary of Mortgage Notes Payable Secured by Real Property (Details) | Mar. 06, 2020USD ($)instrument | Jun. 30, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument |
Debt Instrument [Line Items] | |||
Total notes payable, net | $ 2,133,882,146 | $ 2,129,245,671 | |
Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 29 | 46 | 46 |
Weighted Average Interest Rate | 3.71% | 3.72% | |
Principal Outstanding | $ 791,020,471 | $ 1,391,709,851 | $ 1,387,329,892 |
Premiums and discounts, net | 2,968,685 | 3,809,734 | |
Deferred financing costs, net | (6,081,617) | (6,756,841) | |
Total notes payable, net | 1,388,596,919 | 1,384,382,785 | |
Unamortized premium, gross | 15,375,305 | 15,375,305 | |
Amortization of premium | (2,949,400) | (1,836,575) | |
Debt instrument, premium | 12,425,905 | 13,538,730 | |
Unamortized discount, gross | (10,179,526) | (10,179,526) | |
Amortization of debt discount | 722,306 | 450,530 | |
Debt instrument, discount | (9,457,220) | (9,728,996) | |
Unamortized discount (premium), gross total | 5,195,779 | 5,195,779 | |
Amortization of debt discount (premium) | (2,227,094) | (1,386,045) | |
Amortized net debt premium (discount) | 2,968,685 | 3,809,734 | |
Accumulated amortization of deferred financing costs | $ 4,170,407 | $ 3,495,183 | |
Notes Payable to Banks | Variable Rate | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 2 | 4 | 4 |
Weighted Average Interest Rate | 2.22% | 2.27% | |
Principal Outstanding | $ 64,070,000 | $ 121,210,315 | $ 113,452,357 |
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% | 2.31% |
Notes Payable to Banks | Fixed Rate | |||
Debt Instrument [Line Items] | |||
Number of Instruments | instrument | 27 | 42 | 42 |
Weighted Average Interest Rate | 3.85% | 3.85% | |
Principal Outstanding | $ 726,950,471 | $ 1,270,499,536 | $ 1,273,877,535 |
Notes Payable to Banks | Fixed Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Fixed rate | 3.19% | 3.19% | 3.19% |
Notes Payable to Banks | Fixed Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Fixed rate | 4.66% | 4.66% | 4.66% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 17, 2020USD ($)tranchesubsidiary | Oct. 16, 2019USD ($)extensionRate | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)instrument | Jun. 26, 2020USD ($) | Mar. 06, 2020USD ($)instrument | Jul. 31, 2018USD ($)subsidiary |
Debt Instrument [Line Items] | ||||||||||
Credit facilities, net | $ 745,285,227 | $ 745,285,227 | $ 744,862,886 | |||||||
Interest expense | 20,087,353 | $ 19,715,318 | 39,895,031 | $ 34,106,272 | ||||||
Amortization of deferred financing costs | 548,784 | 482,406 | 1,097,565 | 809,876 | ||||||
Unrealized loss (gain) | (1,203) | 27,194 | ||||||||
Capitalized interest | 244,822 | 193,049 | 560,066 | 262,619 | ||||||
Seasoning fees | 31,417 | 65,991 | ||||||||
Accretion of lease liabilities | $ 86 | $ 193 | 0 | |||||||
Credit facility commitment fees | 11,484 | 42,881 | ||||||||
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 | |||||||||
Notes Payable to Banks | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of Instruments | instrument | 46 | 46 | 46 | 29 | ||||||
Amortization of debt discount (premium) | $ (423,160) | (413,858) | $ (841,049) | (528,440) | ||||||
Accounts Payable and Accrued Liabilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest payable | 6,586,461 | 6,586,461 | $ 6,806,695 | |||||||
Interest Rate Cap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unrealized loss (gain) | 9,617 | $ 24,943 | (1,203) | $ 27,194 | ||||||
PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 19,800,000 | |||||||||
Debt instrument, term | 36 months | |||||||||
Number of extensions | extension | 2 | |||||||||
Mini perm extensions | 12 months | |||||||||
Line of Credit, PNC Bank | PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amounts outstanding on construction loan | 14,831,682 | 14,831,682 | 6,264,549 | |||||||
Line of Credit, PNC Bank | PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Coverage ratio | Rate | 115.00% | |||||||||
Closing fee | 0.40% | |||||||||
Mini-perm fee percentage | 0.10% | |||||||||
Loan exit fee | 0.10% | |||||||||
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 | Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 551,669,000 | |||||||||
Master Credit Facility Agreement | Newark Group Inc. | 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 | |||||||||
Number of tranches | tranche | 4 | |||||||||
Fixed rate | 3.34% | |||||||||
Master Credit Facility Agreement Tranche 1 | Newark Group Inc. | 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 | Newark Group Inc. | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 137,917,250 | |||||||||
Fixed rate | 4.57% | |||||||||
Master Credit Facility Agreement Tranche 3 | Newark Group Inc. | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 82,750,350 | |||||||||
Fixed rate | 1.70% | |||||||||
PNC MCFA | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facilities, net | 158,340,000 | 158,340,000 | 158,340,000 | |||||||
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 | PNC Bank | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of tranches | tranche | 2 | |||||||||
PNC MCFA | Subsidiaries | PNC Bank | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of subsidiaries refinanced under revolving credit facility | subsidiary | 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 | |||||||||
Credit facilities, net | $ 0 | $ 0 | $ 0 |
Debt - Summary of Advances Obta
Debt - Summary of Advances Obtained and Certain Financing Costs Incurred Under the Credit Facility (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 745,285,227 | $ 744,862,886 |
Master Credit Facility Agreement | ||
Line of Credit Facility [Line Items] | ||
Accumulated amortization of deferred financing costs | 1,532,597 | 1,298,265 |
PNC MCFA | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | 158,340,000 | 158,340,000 |
Accumulated amortization of deferred financing costs | 190,042 | 99,283 |
Revolver Loan | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (390,079) | (487,329) |
Accumulated amortization of deferred financing costs | 198,799 | 101,549 |
Line of Credit | PNC MCFA | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (1,599,176) | (1,689,935) |
Residential Real Estate | Master Credit Facility Agreement | ||
Line of Credit Facility [Line Items] | ||
Deferred financing costs, net | (3,202,518) | (3,436,850) |
Residential Real Estate | Line of Credit | Master Credit Facility Agreement | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facilities | $ 592,137,000 | $ 592,137,000 |
Debt - Summary of Aggregate Mat
Debt - Summary of Aggregate Maturities (Details) | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Total | $ 2,142,186,851 |
Remainder of 2021 | 4,475,904 |
2022 | 49,688,647 |
2023 | 60,661,183 |
2024 | 58,178,998 |
2025 | 197,591,629 |
Thereafter | $ 1,771,590,490 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative - General (Details) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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) | Dec. 03, 2020 | Sep. 15, 2020USD ($) | Aug. 30, 2020 | Mar. 06, 2020shares | Mar. 24, 2016USD ($)shares | Sep. 03, 2013USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)voteshares | Jun. 30, 2020USD ($)shares | Sep. 14, 2020USD ($) | Mar. 24, 2016USD ($)shares | Mar. 24, 2016USD ($)shares |
Class of Stock [Line Items] | |||||||||||||
Number of votes per share | vote | 1 | ||||||||||||
DRP distributions paid (in shares) | shares | 199,903 | 349,989 | 501,978 | 670,958 | |||||||||
Compensation expense related to the issuance of restricted common stock | $ 750,382 | $ 63,383 | |||||||||||
Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Compensation expense related to the issuance of the restricted common stock not yet recognized | $ 363,507 | $ 624,046 | |||||||||||
Weighted-average remaining term | 10 months 24 days | ||||||||||||
Forfeited shares (in shares) | shares | 0 | ||||||||||||
Independent Directors Compensation Plan | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Compensation expense related to the issuance of the restricted common stock not yet recognized | $ 339,830 | ||||||||||||
Common Stock | STAR RS Holdings, LLC (SRSH) | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 56,016,053 | ||||||||||||
Common Stock | Independent Directors Compensation Plan | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of equal annual vesting installments | 2 years | 2 years | 4 years | ||||||||||
Compensation expense related to the issuance of restricted common stock | 63,168 | $ 20,928 | $ 126,336 | 63,383 | |||||||||
Common Stock | Independent Directors Compensation Plan | Restricted Stock | General and administrative | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Compensation expense related to the issuance of restricted common stock | $ 63,168 | $ 20,928 | $ 126,336 | $ 63,383 | |||||||||
Common Stock | IPO | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 48,625,651 | 112,167,095 | 48,625,651 | ||||||||||
Proceeds from issuance of common stock | $ 724,849,631 | $ 1,725,738,819 | $ 640,012,497 | ||||||||||
Net proceeds from the issuance of common stock | $ 1,640,901,685 | ||||||||||||
Common Stock | Distribution Reinvestment Plan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 8,537,015 | 1,011,561 | |||||||||||
Proceeds from issuance of common stock | $ 128,009,661 | $ 14,414,752 | |||||||||||
DRP distributions paid (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 | |||||||||||
Net proceeds from the issuance of common stock | $ 128,009,661 | ||||||||||||
Common Stock | Sponsor | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 13,500 | ||||||||||||
Issuance of common stock | $ 202,500 | ||||||||||||
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 | ||||||||||||
Directors | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Annual amount | $ 75,000 | $ 55,000 | |||||||||||
Director's retainer, value of restricted stock upon election | $ 75,000 | ||||||||||||
Directors | IPO | Independent Directors Compensation Plan | Restricted Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of equal annual vesting installments | 3 years |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Issued to Independent Directors as Compensation for Services (Details) - Restricted Stock - $ / shares | Dec. 03, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
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) | 33,369 | 7,497 | |
Granted shares (in shares) | 0 | 31,288 | |
Vested shares (in shares) | (1,667) | (5,416) | |
Nonvested shares at the end of the period (in shares) | 31,702 | 33,369 | |
Common Stock | Independent Directors Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted shares (in shares) | 4,924 | ||
Shares granted, grant date fair value (in dollars per share) | $ 15.23 | $ 15.36 |
Stockholders' Equity - Narrat_3
Stockholders' Equity - Narrative - Issuance of Restricted Stock Awards to Key Employees (Details) - USD ($) | Mar. 15, 2021 | Sep. 01, 2020 | Jun. 30, 2021 | Jun. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense remaining | $ 3,421,278 | $ 3,421,278 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of grants issued | $ 2,850,000 | |||
Compensation expense related to the issuance of the restricted common stock not yet recognized | $ 363,507 | $ 624,046 | ||
Weighted average remaining term of the restricted common stock | 1 year 8 months 12 days | |||
Forfeited shares (in shares) | 0 | |||
Restricted Stock | Time-Based 2021 Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value | $ 1,512,000 | |||
Vesting period | 3 years | |||
Restricted Stock | Second Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of restricted stock vesting percentage | 50.00% | |||
Restricted Stock | Third Anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of restricted stock vesting percentage | 50.00% |
Stockholders' Equity - Narrat_4
Stockholders' Equity - Narrative - Investment Management Fee and Loan Coordination Fee Paid to Former Advisor in Shares (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Aug. 31, 2020 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cash paid for investment management fee, percent | 50.00% | ||||
Shares paid for investment management fee, percent | 50.00% | ||||
Fees to affiliates | $ 4,263 | $ 13,709,333 | $ 8,550 | $ 22,136,629 | |
Investment Advisory, Management and Administrative Service | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fees to affiliates | $ 0 | $ 4,316,774 | $ 0 | $ 5,504,125 |
Stockholders' Equity - Narrat_5
Stockholders' Equity - Narrative - Convertible Stock (Details) $ / shares in Units, $ in Thousands | Aug. 31, 2020USD ($) | Mar. 06, 2020 | Mar. 05, 2020$ / shares | Sep. 30, 2013 |
Class A Convertible Stock | ||||
Class of Stock [Line Items] | ||||
Promote price | $ 1 | |||
Class A Convertible Stock | STAR RS Holdings, LLC (SRSH) | ||||
Class of Stock [Line Items] | ||||
Promote price | $ 1 | |||
Advisor | Convertible Stock | ||||
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, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | |||
Advisor | Class A Convertible Stock | ||||
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) | $ / shares | $ 1 | |||
Common stock, conversion basis multiplier | 0.0010 | 0.0010 | ||
Convertible stock, percentage applied to the excess of enterprise value, including distributions to date | 15.00% | 15.00% |
Stockholders' Equity - Narrat_6
Stockholders' Equity - Narrative - Preferred Stock (Details) | 6 Months Ended | |
Jun. 30, 2021class_of_stockshares | Dec. 31, 2020shares | |
Equity [Abstract] | ||
Preferred stock, number of classes or series the Board of Directors is authorized to classify or reclassify | class_of_stock | 1 | |
Preferred stock, number of classes or series the Board of Directors is authorized to issue | class_of_stock | 1 | |
Preferred stock, shares issued (in shares) | shares | 0 | 0 |
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 |
Stockholders' Equity - Narrat_7
Stockholders' Equity - Narrative - Distribution Reinvestment Plan (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Apr. 01, 2021 | May 01, 2020 | Dec. 30, 2013 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Share price (in dollars per share) | $ 0.525 | |||
Distribution Reinvestment Plan | ||||
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 | |||
Distribution Reinvestment Plan | Common Stock | ||||
Class of Stock [Line Items] | ||||
Share price (in dollars per share) | $ 15.55 | $ 15.23 | $ 14.25 |
Stockholders' Equity - Narrat_8
Stockholders' Equity - Narrative - Share Repurchase Plan and Redeemable Common Stock (Details) - USD ($) | Jan. 12, 2021 | Mar. 03, 2020 | Sep. 05, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Apr. 01, 2021 | May 01, 2020 | Dec. 30, 2013 |
Class of Stock [Line Items] | |||||||||||
Limit on repurchase, percent | 93.00% | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 0.525 | $ 0.525 | |||||||||
Share Repurchase Plan As Amended | |||||||||||
Class of Stock [Line Items] | |||||||||||
Authorized amount, per quarter | $ 2,000,000 | ||||||||||
Estimated share price (in dollars per share) | $ 14.46 | $ 14.46 | |||||||||
Limit on repurchase, percent | 5.00% | ||||||||||
Notice period for amendment, suspension, or termination of share repurchase plan | 30 days | ||||||||||
Share Repurchase Plan As Amended | SIR and STAR III Merger Agreement | |||||||||||
Class of Stock [Line Items] | |||||||||||
Authorized amount, per quarter | $ 4,000,000 | ||||||||||
Repurchase price as percentage of estimated fair value | 93.00% | 93.00% | |||||||||
Share Repurchase Plan As Amended | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
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 | ||||||||||
Authorized amount, per quarter | $ 3,000,000 | ||||||||||
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) | 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 | ||||||||||
Period of time to request redemption notice | 15 days | ||||||||||
Period of time request for redemption is settled | 30 days | ||||||||||
Minimum number of days prior to repurchase date a repurchase request may be withdrawn | 3 days | ||||||||||
Value of stock redeemed | $ 2,301,563 | $ 2,110,538 | $ 6,301,563 | $ 2,907,827 | |||||||
Unfulfilled repurchase requests (in shares) | 187,078 | 187,078 | 282,477 | ||||||||
Shares redeemed (in shares) | 159,168 | 149,049 | 441,645 | 202,201 | |||||||
Stock requested for redemption (in shares) | 187,078 | 2,664,719 | 345,303 | 2,813,768 | |||||||
Stock requested for redemption, amount | $ 2,705,142 | $ 37,732,417 | $ 4,993,073 | $ 39,842,954 | |||||||
Accounts Payable and Accrued Liabilities | Share Repurchase Plan | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Value of stock redeemed | $ 2,705,142 | $ 4,000,000 | |||||||||
Distribution Reinvestment Plan | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Share price (in dollars per share) | $ 15.55 | $ 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) | $ 15.55 | $ 15.55 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Share Repurchase Plan and Redeemable Common Stock (Details) | Sep. 05, 2019 | Jun. 30, 2021 |
Class of Stock [Line Items] | ||
Limit on repurchase, percent | 93.00% | |
Share Repurchase Plan As Amended | ||
Class of Stock [Line Items] | ||
Limit on repurchase, percent | 5.00% | |
Share Repurchase Plan As Amended | 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% | |
Holding period of shares repurchased | 1 year | |
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 |
Stockholders' Equity - Narrat_9
Stockholders' Equity - Narrative - Distributions Declared and Paid (Details) - USD ($) | Jul. 24, 2021 | Jul. 01, 2021 | Jan. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Apr. 01, 2021 | May 01, 2020 | Dec. 30, 2013 |
Class of Stock [Line Items] | ||||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.002466 | |||||||||||
Dividends payable | $ 4,797,443 | $ 4,797,443 | $ 8,462,735 | |||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 15,520,640 | $ 24,712,773 | $ 38,133,765 | $ 36,513,640 | ||||||||
Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001438 | $ 0.001438 | ||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 5,063,063 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common share distribution rate per share per day paid (in dollars per share) | $ 0.90 | |||||||||||
Share price (in dollars per share) | $ 0.525 | $ 0.525 | ||||||||||
Dividends payable | $ 5,063,063 | $ 5,063,063 | 8,931,971 | |||||||||
Dividends payable, DRP | $ 1,011,758 | $ 1,821,581 | ||||||||||
Dividends payable, DRP (in shares) | 65,065 | 119,605 | ||||||||||
Common Stock | Distribution Reinvestment Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Share price (in dollars per share) | $ 15.55 | $ 15.23 | $ 14.25 | |||||||||
Common Stock | Distribution Reinvestment Plan | Subsequent Event | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ 0.001438 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of dividends declared and paid (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Dividends Payable [Line Items] | ||||
DRP distributions declared (in shares) | 198,278 | 352,192 | 448,840 | 676,428 |
DRP distributions declared (value) | $ 3,083,215 | $ 5,363,890 | $ 6,899,269 | $ 10,499,787 |
Cash distributions declared | 12,272,430 | 19,224,518 | 27,365,588 | 29,480,155 |
Total distributions declared | 15,355,645 | 24,588,408 | 34,264,857 | 39,979,942 |
Noncontrolling Interest OP Unit Holders | $ 15,355,645 | $ 24,588,408 | $ 34,264,857 | $ 39,979,941 |
DRP distributions paid (in shares) | 199,903 | 349,989 | 501,978 | 670,958 |
DRP distributions paid (value) | $ 3,108,489 | $ 5,399,458 | $ 7,709,092 | $ 10,483,613 |
Cash distributions paid | 12,412,151 | 19,313,315 | 30,424,673 | 26,030,027 |
Total distributions paid | $ 15,520,640 | $ 24,712,773 | $ 38,133,765 | $ 36,513,640 |
Common Stockholders | ||||
Dividends Payable [Line Items] | ||||
DRP distributions declared (in shares) | 198,278 | 352,192 | 448,840 | 676,428 |
DRP distributions declared (value) | $ 3,083,215 | $ 5,363,890 | $ 6,899,269 | $ 10,499,787 |
Cash distributions declared | 11,342,530 | 19,061,204 | 25,289,682 | 29,316,841 |
Total distributions declared | 14,425,745 | 24,425,094 | 32,188,951 | 39,816,628 |
Noncontrolling Interest OP Unit Holders | $ 14,425,745 | $ 24,425,094 | $ 32,188,951 | $ 39,816,627 |
DRP distributions paid (in shares) | 199,903 | 349,989 | 501,978 | 670,958 |
DRP distributions paid (value) | $ 3,108,489 | $ 5,399,458 | $ 7,709,092 | $ 10,483,613 |
Cash distributions paid | 11,472,032 | 19,150,001 | 28,113,767 | 25,866,713 |
Total distributions paid | 14,580,521 | 24,549,459 | 35,822,859 | 36,350,326 |
Noncontrolling Interest OP Unit Holders | ||||
Dividends Payable [Line Items] | ||||
Cash distributions declared | 929,900 | 163,314 | 2,075,906 | 163,314 |
Noncontrolling Interest OP Unit Holders | 929,900 | 163,314 | 2,075,906 | 163,314 |
Cash distributions paid | 940,119 | 163,314 | 2,310,906 | 163,314 |
Total distributions paid | $ 940,119 | $ 163,314 | $ 2,310,906 | $ 163,314 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) | Aug. 31, 2020$ / shares | Apr. 21, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 20, 2020USD ($)multifamily_property |
Noncontrolling Interest [Line Items] | |||||
Class A-2 OP Units issued for real estate | $ 0 | $ 14,450,000 | |||
STAR III OP | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, percentage of total shares | 6.05% | ||||
Noncontrolling interest, weighted average percentage of total shares | 6.06% | ||||
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 | ||||
Share price (in dollars per share) | $ / shares | $ 15.23 | ||||
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 | ||||
VV&M Apartments | STAR III OP and STAR III OP | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting period | 1 year | ||||
STAR RS Holdings, LLC (SRSH) | |||||
Noncontrolling Interest [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 15.23 | ||||
STAR RS Holdings, LLC (SRSH) | STAR III OP and STAR III OP | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting period | 2 years |
Noncontrolling Interest - Sched
Noncontrolling Interest - Schedule of Activity for Noncontrolling Interests Recorded as Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | ||||||||
Beginning balance of OP Units | $ 100,805,226 | $ 100,805,226 | $ 104,322,659 | |||||
(Loss) income allocated to noncontrolling interest | (663,253) | $ 163,314 | (1,441,527) | $ 163,314 | ||||
Distributions declared | (15,355,645) | (24,588,408) | (34,264,857) | (39,979,941) | ||||
Noncontrolling Interest | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Distributions declared | (929,900) | (163,314) | (2,075,906) | (163,314) | ||||
Noncontrolling interests ending balance | 100,805,226 | 14,450,000 | 100,805,226 | 14,450,000 | ||||
Class A-2 OP Units | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Beginning balance of OP Units | $ 12,962,395 | 13,219,354 | $ 0 | $ 0 | ||||
(Loss) income allocated to noncontrolling interest | (88,555) | 163,314 | (192,466) | 163,314 | ||||
Class A-2 OP Units | Noncontrolling Interest | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Beginning balance of OP Units | 0 | 0 | 14,450,000 | |||||
Distributions declared | (124,187) | (163,314) | (277,235) | (163,314) | ||||
Class B OP Units | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Beginning balance of OP Units | $ 89,435,984 | $ 91,103,305 | $ 0 | $ 0 | ||||
(Loss) income allocated to noncontrolling interest | (574,698) | 0 | (1,249,061) | 0 | ||||
Class B OP Units | Noncontrolling Interest | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Distributions declared | $ (805,713) | $ 0 | $ (1,798,671) | $ 0 |
Related Party Arrangements - Na
Related Party Arrangements - Narrative (Details) - STAR RS Holdings, LLC (SRSH) | Aug. 31, 2020 |
Board of Directors Chairman and Chief Executive Officer | |
Related Party Transaction [Line Items] | |
Percentage of voting interests acquired | 48.60% |
Prior Secretary and Affiliated Director | |
Related Party Transaction [Line Items] | |
Percentage of voting interests acquired | 6.30% |
President, Chief Financial Officer, and Treasurer | |
Related Party Transaction [Line Items] | |
Percentage of profit interest earned | 5.00% |
Related Party Arrangements - Sc
Related Party Arrangements - Schedule of Amounts Attributable to the Advisor and its Affiliates - Amounts Incurred and Payable (Details) - Advisor - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Advisor and its Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | $ 250,465 | $ (25,302,016) | $ 199,064 | $ (67,144,894) | |
Payable (Prepaid) as of end of period | (46,299) | (46,299) | $ (344,440) | ||
Advisor and its Affiliates | Investment management fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 8,535,093 | 0 | 13,889,530 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Due diligence costs | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 4,166 | 0 | 37,166 | 1,111 | |
Payable (Prepaid) as of end of period | 0 | 0 | (102,301) | ||
Advisor and its Affiliates | Loan coordination fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 1,116,700 | 0 | 1,605,652 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Disposition fees | Gains (Losses) on Sales of Investment Real Estate | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 0 | 0 | 338,750 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Disposition Transaction Costs | Gains (Losses) on Sales of Investment Real Estate | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 0 | 0 | 5,144 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Property Management, Fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 4,263 | 2,369,487 | 8,550 | 3,865,857 | |
Payable (Prepaid) as of end of period | (1,514) | (1,514) | (5,585) | ||
Advisor and its Affiliates | Property Management, Reimbursement of Onsite Personnel | Operating, maintenance and management | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 7,780,381 | 0 | 12,475,428 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Property Management, Other Fees | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 1,688,053 | 0 | 2,775,590 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Property Management, Other Fees - Property Operations | Operating, maintenance and management | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 9,096 | 109,188 | 9,168 | 188,199 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Property Management, Other Fees - G&A | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 51,811 | 0 | 84,216 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Other Operating Expenses | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 417,373 | 954,292 | 862,686 | 1,664,464 | |
Payable (Prepaid) as of end of period | (68,536) | (68,536) | (158,723) | ||
Advisor and its Affiliates | Reimbursement of personnel benefits and other costs | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 80,270 | 0 | 112,362 | 0 | |
Payable (Prepaid) as of end of period | (4,040) | (4,040) | (20,457) | ||
Advisor and its Affiliates | Insurance Proceeds | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 150,000 | 0 | 150,000 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Property Insurance | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 1,515,016 | 0 | 2,439,952 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Rental Revenue | Operating Lease, Lease Income | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 23,282 | 0 | 41,029 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Transaction Services Agreement Income | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 6,353 | 0 | 14,531 | 0 | |
Payable (Prepaid) as of end of period | (13,072) | (13,072) | (103,552) | ||
Advisor and its Affiliates | SRI Property Management Agreements | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 324,550 | 0 | 562,759 | 0 | |
Payable (Prepaid) as of end of period | (118,093) | (118,093) | (77,760) | ||
Advisor and its Affiliates | Other Reimbursement Income | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 120,979 | 0 | 211,532 | 0 | |
Payable (Prepaid) as of end of period | 0 | 0 | (21,980) | ||
Advisor and its Affiliates | Reimbursement of Onsite Personnel Income | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 1,099,931 | 0 | 2,175,540 | 0 | |
Payable (Prepaid) as of end of period | (74,888) | (74,888) | (173,927) | ||
Advisor and its Affiliates | SRI Construction Management Fee | Nonoperating Income (Expense) | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 19,533 | 0 | 64,905 | 0 | |
Payable (Prepaid) as of end of period | (2,358) | (2,358) | 0 | ||
Advisor and its Affiliates | Sublease Security Deposit | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 0 | 0 | 0 | |
Payable (Prepaid) as of end of period | (85,000) | (85,000) | (85,000) | ||
Advisor and its Affiliates | Deferred Financing Costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 49,050 | 0 | 49,050 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Capitalized development services fee | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 151,071 | 0 | 302,142 | |
Payable (Prepaid) as of end of period | 0 | 0 | (50,357) | ||
Advisor and its Affiliates | Capitalized investment management fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 98,454 | 0 | 179,668 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Capitalized development costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 2,435 | 1,600 | 3,030 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Acquisition Fees and Expenses | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 133,695 | 0 | 389,919 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Acquisition Fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 341,371 | 0 | 17,717,639 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Loan coordination fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 224,000 | 0 | 8,812,071 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Construction Management Fees | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 259,509 | 0 | 382,272 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Construction Management Reimbursement of Labor Costs | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 0 | 95,692 | 0 | 166,239 | |
Payable (Prepaid) as of end of period | 0 | 0 | 0 | ||
Advisor and its Affiliates | Distributions to Class B OP Unit holders | Additional Paid-In Capital | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 805,713 | $ 0 | 1,798,671 | $ 0 | |
Payable (Prepaid) as of end of period | (265,620) | $ (265,620) | $ (469,236) | ||
Advisor and its Affiliates | Sublease Rental Expense | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 273,846 | ||||
Property Manager | SRI Property Management Agreements | Fees to Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 4,263 | ||||
Steadfast Investment Properties | Due diligence costs | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | 4,166 | ||||
Steadfast Investment Properties | Information Systems Expenses | General and administrative | |||||
Related Party Transaction [Line Items] | |||||
Incurred (received), total in the period | $ 143,527 |
Related Party Arrangements - _2
Related Party Arrangements - Narrative - Investment Management Fee (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Aug. 31, 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% | ||||
Investment management fees paid, in shares | $ 0 | $ 4,039,148 | $ 0 | $ 4,039,148 |
Related Party Arrangements - _3
Related Party Arrangements - Narrative - Acquisition Fees and Expenses (Details) - Advisor - Advisor - Acquisition Fees and Expenses - USD ($) | Mar. 06, 2020 | Mar. 05, 2020 | Jun. 30, 2021 | Aug. 31, 2020 |
Related Party Transaction [Line Items] | ||||
Acquisition fee, percent | 1.00% | 0.50% | ||
Acquisition fee | $ 16,281,487 | |||
Acquisition fee payable without board approval as a percent of total contract price | 1.00% | 4.50% |
Related Party Arrangements - _4
Related Party Arrangements - Narrative - Loan Coordination Fee (Details) - USD ($) | Mar. 06, 2020 | Mar. 05, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||||||
Loan coordination fee paid, in shares | $ 0 | $ 1,116,694 | $ 0 | $ 1,116,694 | ||
Advisor | Advisor | Acquisition Fees and Expenses | ||||||
Related Party Transaction [Line Items] | ||||||
Acquisition fee payable without board approval as a percent of total contract price | 1.00% | 4.50% | ||||
Advisor | Advisor | Loan Coordination Fee | ||||||
Related Party Transaction [Line Items] | ||||||
Loan coordination fee, other than acquisitions | 0.75% | |||||
Loan coordination advisory fee, other loan fees agreed upon | $ 100,000 | |||||
Loan coordination fee, acquisitions | 0.50% | |||||
Loan coordination fee included in connection with merger | $ 7,910,205 |
Related Party Arrangements - _5
Related Party Arrangements - Narrative - Property Management Fees and Expenses (Details) - Property Management Fees and Expenses - Steadfast Management Company - Property Manager | Aug. 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 - _6
Related Party Arrangements - Narrative - Construction Management Fee and Development Services Agreement (Details) - Affiliated Entity | Aug. 30, 2020 | Jun. 30, 2021 |
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 - _7
Related Party Arrangements - Narrative - Other Operating Expense Reimbursements (Details) - Advisor - Advisor - Other Operating Expense Reimbursement | 6 Months Ended |
Jun. 30, 2021quarter | |
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 - _8
Related Party Arrangements - Narrative - Disposition Fee (Details) - Advisor | Mar. 06, 2020 | Mar. 05, 2020 | Jun. 30, 2021 | Aug. 31, 2020 |
Related Party Transaction [Line Items] | ||||
Disposition fee, maximum percent of brokerage commission paid threshold | 50.00% | |||
Advisor | Disposition fees | ||||
Related Party Transaction [Line Items] | ||||
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 - _9
Related Party Arrangements - Narrative- Class A Convertible Stock (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Mar. 06, 2020 | Mar. 05, 2020 |
Convertible Stock | Advisor | |||
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% | ||
Class A Convertible Stock | |||
Related Party Transaction [Line Items] | |||
Promote price | $ 1 | ||
Class A Convertible Stock | Advisor | |||
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% |
Related Party Arrangements -_10
Related Party Arrangements - Narrative - Transition Services Agreement (Details) - Transition Services Agreement | Aug. 31, 2020 |
Related Party Transaction [Line Items] | |
Professional fees, cost plus, percentage | 15.00% |
Steadfast Investment Properties | |
Related Party Transaction [Line Items] | |
Professional fees, cost plus, percentage | 15.00% |
Related Party Arrangements -_11
Related Party Arrangements - Narrative - SRI Property Management Agreements (Details) - USD ($) | Apr. 23, 2021 | Sep. 01, 2020 | Aug. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||
Assets | $ 3,246,366,265 | $ 3,301,739,045 | |||
Affiliate of SRI | SRI Property Management Agreements | Property Manager | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percent fee | 7.50% | 2.00% | |||
Term of agreement | 1 year | ||||
Number of uncured days needed to terminate agreement | 60 days | ||||
Notice needed to terminate agreement | 30 days | ||||
Assets | $ 135,830 | ||||
Affiliate of SRI | SRI Property Management Agreements, Amendment | Property Manager | |||||
Related Party Transaction [Line Items] | |||||
Property management fee, percent fee | 3.00% |
Related Party Arrangements - No
Related Party Arrangements - Non-Competition Agreement (Details) | Aug. 31, 2020 |
Related Party Transactions [Abstract] | |
Restricted period after closing | 30 days |
Related Party Arrangements -_12
Related Party Arrangements - Narrative - Sub-Lease (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Sub-Lease remaining lease term | 11 months | 11 months | |||
Operating lease right-of-use asset, net | $ 1,598,778 | $ 1,598,778 | $ 2,128,660 | ||
Operating and finance lease liabilities, net | 1,584,898 | 1,584,898 | |||
Finance lease, right-of-use asset, net | 10,725 | 10,725 | 16,845 | ||
Present value of finance lease liabilities | 11,093 | 11,093 | |||
Building | |||||
Related Party Transaction [Line Items] | |||||
Operating lease right-of-use asset, net | 872,985 | 872,985 | 1,339,591 | ||
Operating and finance lease liabilities, net | 887,925 | 887,925 | 1,346,835 | ||
Sublease expense | 241,549 | $ 3,146 | 483,098 | $ 6,313 | |
Furniture and Fixtures | |||||
Related Party Transaction [Line Items] | |||||
Finance lease, right-of-use asset, net | 10,725 | 10,725 | 16,845 | ||
Present value of finance lease liabilities | $ 11,093 | $ 11,093 | $ 17,020 |
Incentive Award Plan and Inde_2
Incentive Award Plan and Independent Director Compensation (Details) | Dec. 03, 2020director$ / sharesshares | Sep. 15, 2020USD ($)shares | Aug. 30, 2020 | Mar. 06, 2020directorshares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Sep. 14, 2020USD ($) | Dec. 31, 2020USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amortization of stock-based compensation | $ 750,382 | $ 63,383 | ||||||||
Operating expenses | $ 101,026,812 | $ 130,580,646 | 200,660,620 | 205,645,097 | ||||||
Director Annual Retainer Expense | Directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount payable | 217,250 | $ 217,250 | $ 209,250 | |||||||
Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Proceeds from issuance of common stock | $ 2,000,000 | |||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of grants issued | shares | 0 | 31,288 | ||||||||
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 | 2 years | 2 years | 4 years | |||||||
Fair value of grants issued | shares | 4,924 | |||||||||
Shares granted, grant date fair value (in dollars per share) | $ / shares | $ 15.23 | $ 15.36 | ||||||||
Amortization of stock-based compensation | 63,168 | 20,928 | $ 126,336 | 63,383 | ||||||
Directors | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | $ 75,000 | $ 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 | |||||||||
Director's retainer, value of restricted stock upon election | 75,000 | |||||||||
Operating expenses | 217,250 | 465,250 | $ 486,500 | 537,000 | ||||||
Directors | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Director's compensation, per meeting attended | 2,000 | |||||||||
Directors | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Director's compensation, per meeting attended | $ 4,000 | |||||||||
Directors | Independent Directors Compensation Plan | Restricted Stock | Common Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of independent directors | director | 5 | |||||||||
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 appointed to board of directors (in shares) | shares | 3,333 | |||||||||
Number of independent directors | director | 2 | |||||||||
Shares of restricted stock vesting percentage | 25.00% | |||||||||
Number of equal annual vesting installments | 3 years | |||||||||
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 | |||||||||
Audit Committee Chairperson | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | $ 15,000 | |||||||||
Compensation Committee Chairperson | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | 10,000 | |||||||||
Investment Committee Chairperson | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | 10,000 | |||||||||
Nominating and Corporate Governance Committee Chairperson | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | 10,000 | |||||||||
Lead Independent Director | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Annual amount | $ 25,000 | |||||||||
Director Annual Retainer Expense | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Capitalized costs, asset retirement costs | $ 0 | $ 3,000 | $ 0 | $ 3,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Garrison Station $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)apartment_homeresidential_building | |
Other Commitments [Line Items] | |
Number of residential buildings | residential_building | 9 |
Number of apartment homes | 176 |
Remaining commitments to fund | $ | $ 4 |
Number of apartment homes, in service | 95 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (13,037,659) | $ (53,224,622) | $ (27,068,948) | $ (62,905,750) |
Distributions declared on Class A-2 OP Units | 0 | (163,314) | 0 | (163,314) |
Less: Distributions related to unvested restricted stockholders | (41,370) | (2,796) | (92,353) | (5,667) |
Numerator for loss per common share — basic | $ (13,079,029) | $ (53,390,732) | $ (27,161,301) | $ (63,074,731) |
Weighted average number of common shares outstanding — basic | 109,905,923 | 109,139,963 | 109,896,333 | 88,660,741 |
Weighted average number of common shares outstanding — diluted | 109,905,923 | 109,139,963 | 109,896,333 | 88,660,741 |
Loss per common share - basic (in dollars per share) | $ (0.12) | $ (0.49) | $ (0.25) | $ (0.71) |
Loss per common share - diluted (in dollars per share) | $ (0.12) | $ (0.49) | $ (0.25) | $ (0.71) |
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, 2021USD ($)instrument | Dec. 31, 2020USD ($)instrument |
Derivative [Line Items] | ||
Number of Instruments | instrument | 6 | 9 |
Notional Amount | $ 334,300,350 | $ 407,935,350 |
Weighted Average Rate Cap | 3.57% | 3.41% |
Fair Value | $ 21,255 | $ 7,852 |
One-Month LIBOR | ||
Derivative [Line Items] | ||
Variable Rate | 0.10% | 0.14% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Derivative [Line Items] | |||||
Unrealized loss (gain) | $ (1,203) | $ 27,194 | |||
Purchase of interest rate cap agreements | 12,200 | 47,000 | |||
Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Unrealized loss (gain) | $ 9,617 | $ 24,943 | (1,203) | 27,194 | |
Purchase of interest rate cap agreements | 12,200 | 47,000 | |||
Interest Rate Cap | Deferred Financing Costs | |||||
Derivative [Line Items] | |||||
Fair value of interest rate cap agreements | 21,255 | 21,255 | $ 7,852 | ||
Interest Rate Cap | Interest expense | |||||
Derivative [Line Items] | |||||
Unrealized loss (gain) | $ 9,617 | $ 24,943 | $ (1,203) | $ 27,194 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||||
Accretion of lease liabilities | $ 86 | $ 193 | $ 0 | ||
Total lease cost | $ 251,164 | $ 9,021 | $ 505,924 | 16,526 | |
Weighted average remaining lease term (in years) | |||||
Operating leases | 3 years 2 months 12 days | 3 years 2 months 12 days | 3 years 4 months 24 days | ||
Finance leases | 10 months 24 days | 10 months 24 days | 1 year 4 months 24 days | ||
Weighted average discount rate | |||||
Operating Leases | 3.30% | 3.30% | 3.20% | ||
Finance Leases | 2.90% | 2.90% | 2.90% | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash outflows related to operating leases | $ 567,794 | 79,884 | |||
Operating cash outflows related to finance leases | 6,120 | 0 | |||
Financing cash outflows related to finance leases | 0 | 0 | |||
Operating, maintenance and management | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease cost | $ 6,469 | 9,021 | 16,513 | 16,526 | |
General and administrative | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating Lease cost | 241,549 | 0 | 483,098 | 0 | |
Depreciation and amortization | |||||
Lessee, Lease, Description [Line Items] | |||||
Amortization of leased assets | 3,060 | 0 | 6,120 | 0 | |
Interest expense | |||||
Lessee, Lease, Description [Line Items] | |||||
Accretion of lease liabilities | $ 86 | $ 0 | $ 193 | $ 0 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities (Details) | Jun. 30, 2021USD ($) |
Operating Leases, After Adoption of 842: | |
Remainder of 2021 | $ 594,614 |
2022 | 611,239 |
2023 | 188,990 |
2024 | 122,026 |
2025 | 94,506 |
Thereafter | 266,910 |
Total undiscounted operating lease payments | 1,878,285 |
Less: interest | (293,387) |
Present value of operating lease liabilities | 1,584,898 |
Finance Leases, After Adoption of 842: | |
Remainder of 2021 | 6,120 |
2022 | 5,100 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
Thereafter | 0 |
Total undiscounted finance lease payments | 11,220 |
Less: interest | (127) |
Present value of finance lease liabilities | $ 11,093 |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 26, 2021USD ($)residential_building$ / sharesRateshares | Jul. 24, 2021$ / shares | Jul. 01, 2021USD ($) | Jan. 31, 2021$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jul. 31, 2021$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2020$ / shares |
Subsequent Event [Line Items] | ||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 15,520,640 | $ 24,712,773 | $ 38,133,765 | $ 36,513,640 | ||||||
Cash distributions paid | $ 12,412,151 | $ 19,313,315 | $ 30,424,673 | $ 26,030,027 | ||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ / shares | $ 0.002466 | |||||||||
Common Stock | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Subsequent Event | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Distributions paid, common stock, including distribution reinvestment plan | $ 5,063,063 | |||||||||
Common share, distribution rate per share per day, declared (in dollars per share) | $ / shares | $ 0.001438 | $ 0.001438 | ||||||||
Recapitalization exchange ratio | Rate | 90.50% | |||||||||
Subsequent Event | Uninsured Risk | Letter Agreement | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Self-insurance retention | $ 1,000,000 | |||||||||
Subsequent Event | Indemnification Agreement | Letter Agreement | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Percentage of maximum exposure | 75.00% | |||||||||
Subsequent Event | Sponsor | Indemnification Agreement | Letter Agreement | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Amount of maximum exposure | $ 20,300,000 | |||||||||
Subsequent Event | Common Stock | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Subsequent Event | Common Stock | Independent Realty Trust, Inc. | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Number of shares issued during period | shares | 1 | |||||||||
Number of shares issued in exchange for stock previously held | shares | 99,800,000 | |||||||||
Subsequent Event | IROP Common Units | Independence Realty Operating Partnership, LP | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of shares issued in exchange for stock previously held | shares | 6,400,000 | |||||||||
Subsequent Event | Class B OP Units | Indemnification Agreement | Letter Agreement | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of shares held | shares | 1,277,778 | |||||||||
Subsequent Event | Garrison Station | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Number of additional residential buildings, placed in service | residential_building | 1 | |||||||||
Number of additional apartment homes, placed in service | residential_building | 24 | |||||||||
Subsequent Event | Dividend Paid | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Cash distributions paid | 4,051,305 | |||||||||
Shares issued pursuant to DRP | $ 1,011,758 |