Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 14, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NUVEEN | |
Entity Registrant Name | Nuveen Global Cities REIT, Inc. | |
Entity Central Index Key | 0001711799 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Class D shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 98,483 | |
Class I shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 395,001 | |
Class N shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,730,608 | |
Class T shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 153,402 | |
Class S shares | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Investments in real estate, net | $ 292,295,000 | $ 294,374,000 |
Investment in commercial mortgage loan, at fair value | 45,133,000 | |
Investments in real estate-related securities, at fair value | 33,952,000 | 29,228,000 |
Investments in international affiliated funds | 28,004,000 | 28,594,000 |
Cash and cash equivalents | 5,485,000 | 5,643,000 |
Restricted cash | 3,562,000 | 56,000 |
Intangible assets, net | 15,130,000 | 16,367,000 |
Other assets | 3,316,000 | 2,584,000 |
Total assets | 426,877,000 | 376,846,000 |
Liabilities and Equity | ||
Credit Facility | 115,000,000 | 70,000,000 |
Accounts payable, accrued expenses, and other liabilities | 5,862,000 | 5,070,000 |
Intangible liabilities, net | 5,673,000 | 5,759,000 |
Due to affiliates | 4,722,000 | 4,602,000 |
Distribution Payable | 2,666,000 | 2,484,000 |
Subscriptions received in advance | 2,467,000 | 55,000 |
Total liabilities | 136,390,000 | 87,970,000 |
Equity | ||
Additional paid-in capital | 299,215,000 | 298,419,000 |
Accumulated deficit and cumulative distributions | (8,805,000) | (9,884,000) |
Accumulated other comprehensive (loss) income | (350,000) | 42,000 |
Total stockholders' equity | 290,487,000 | 288,876,000 |
Total Equity | 290,487,000 | 288,876,000 |
Total liabilties and equity | 426,877,000 | 376,846,000 |
Class I shares | ||
Equity | ||
Common stock | 2,000 | 2,000 |
Class N shares | ||
Equity | ||
Common stock | 297,000 | $ 297,000 |
Series A Preferred Stock | ||
Equity | ||
Preferred stock | $ 129,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Common stock, par value | $ 0.01 | |
Common stock, shares authorized | 2,100,000,000 | |
Class D shares | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 48,606 | 25,839 |
Common stock, shares outstanding | 48,606 | 25,839 |
Class T shares | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 49,624 | 0 |
Common stock, shares outstanding | 49,624 | 0 |
Class I shares | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 207,822 | 186,474 |
Common stock, shares outstanding | 207,822 | 186,474 |
Class N shares | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 29,730,608 | 29,730,608 |
Common stock, shares outstanding | 29,730,608 | 29,730,608 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 6,766 | $ 2,822 |
Expenses | ||
Property operating | 2,286 | 966 |
General and administrative | 958 | 1,691 |
Advisory fee due to affiliate | 467 | 295 |
Depreciation and amortization | 3,387 | 1,773 |
Total expenses | 7,098 | 4,725 |
Other income (expense) | ||
Realized and unrealized income from real estate-related securities | 4,986 | 388 |
Income (loss) from equity investment in unconsolidated international affiliated funds | (165) | |
Interest income | 11 | |
Interest expense | (752) | |
Total other income (expense) | 4,080 | 388 |
Net income (loss) | 3,748 | (1,515) |
Net income attributable to series A preferred stock | 4 | |
Net income (loss) attributable to NREIT stockholders | $ 3,744 | $ (1,515) |
Net income (loss) per share of common stock-basic and diluted | $ 0.12 | $ (0.08) |
Weighted-average shares of common stock outstanding, basic and diluted | 29,994,015 | 18,148,333 |
Rental Revenue | ||
Revenues | ||
Total revenues | $ 6,745 | $ 2,822 |
Commercial Mortage Loan | ||
Revenues | ||
Total revenues | $ 21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 3,748 | $ (1,515) |
Other comprehensive income (loss): | ||
Unrealized loss from currency translation | (392) | |
Comprehensive income (loss) | 3,356 | (1,515) |
Comprehensive income attributable to series A preferred stock | 4 | |
Comprehensive income attributable to NREIT stockholders | $ 3,352 | $ (1,515) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Par Value Common StockClass D shares | Par Value Common StockClass T shares | Par Value Common StockClass I shares | Par Value Common StockClass N shares | Additional Paid-in Capital | Accumulated Deficit And Cumulative Distributions | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2017 | $ 123,922 | $ 124 | $ 124,126 | $ (328) | |||||
Issuance of shares of Common Stock | 73,240 | 76 | 73,164 | ||||||
Amortization of restricted stock grants | 11 | 11 | |||||||
Net income (loss) | (1,515) | (1,515) | |||||||
Balance at March 31, 2018 | 195,658 | $ 2 | 200 | 197,301 | (1,843) | ||||
Beginning balance at Dec. 31, 2018 | 288,876 | 2 | 297 | 298,419 | (9,884) | $ 42 | |||
Issuance of shares of Common Stock | 775 | 775 | |||||||
Distribution reinvestment | 10 | 10 | |||||||
Amortization of restricted stock grants | 11 | 11 | |||||||
Net income (loss) | 3,748 | $ 4 | 3,744 | ||||||
Distributions declared on common stock | (2,666) | $ (3) | $ (2) | (15) | (2,646) | ||||
Issuance of 125 shares of series A preferred stock | 125 | 125 | |||||||
Foreign currency translation adjustment | (392) | (392) | |||||||
Balance at March 31, 2018 | $ 290,487 | $ 129 | $ (3) | $ (2) | $ (13) | $ (2,349) | $ 299,215 | $ (6,140) | $ (350) |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock, shares | 93,740 | 7,575,000 |
Net of offering costs | $ 69 | $ 2,510 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 3,748 | $ (1,515) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,387 | 1,773 |
Unrealized gain on changes in fair value of real estate-related securities | (4,769) | (274) |
Realized loss on sale of real estate-related securities | 76 | |
Loss from equity investment in unconsolidated international affiliated funds | (165) | |
Straight line rent adjustment | (410) | (45) |
Amortization of below-market lease intangibles | (87) | (16) |
Amortization of loan closing costs | 99 | |
Amortization of restricted stock grants | 11 | 11 |
Change in assets and liabilities: | ||
(Increase) in other assets | (421) | (441) |
Increase in due to affiliates | 120 | 873 |
(Decrease)/Increase in accounts payable, accrued expenses, and other liabilities | (434) | 1,034 |
Net cash provided by operating activites | 1,485 | 1,400 |
Cash flows from investing activities: | ||
Origination and fundings of commercial mortgage loan | (45,202) | |
Escrow for commercial mortgage loan | 1,096 | |
Capital improvements to real estate | (62) | (26) |
Purchase of real estate-related securities | (2,907) | (19,944) |
Proceeds from sale of real estate-related securities | 2,876 | |
Net cash (used in) investing activities | (44,199) | (19,970) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 969 | 75,750 |
Borrowings from credit facility | 45,000 | |
Proceeds from issuance of series A preferred stock, net of costs | 110 | |
Subscriptions received in advance | 2,467 | |
Distributions | (2,484) | |
Net cash provided by financing activities | 46,062 | 75,750 |
Net increase in cash and cash equivalents and restricted cash during the period | 3,348 | 57,180 |
Cash and cash equivalents and restricted cash, beginning of period | 5,699 | 3,681 |
Cash and cash equivalents and restricted cash, end of period | 9,047 | 60,861 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets, end of period: | ||
Cash and cash equivalents | 5,485 | 60,861 |
Restricted cash | 3,562 | |
Cash and cash equivalents and restricted cash, end of period | 9,047 | 60,861 |
Supplemental disclosures: | ||
Interest paid | 534 | |
Series A preferred stock costs | 15 | |
Non-cash investing activities: | ||
Accrued capital expenditures | 10 | |
Non-cash financing activities: | ||
Accrued distributions | 2,666 | |
Accrued stockholder servicing fees | 4,722 | |
Distribution reinvestments | 10 | |
Accrued offering costs due to affiliate | 3,557 | $ 2,510 |
Accrued stockholder servicing fees | ||
Non-cash financing activities: | ||
Accrued stockholder servicing fees | $ 74 |
Organization and Business Purpo
Organization and Business Purpose | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Purpose | Note 1. Organization and Business Purpose Nuveen Global Cities REIT, Inc. (the “Company”) was formed on May 1, 2017 as a Maryland corporation and intends to elect to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2018. The Company’s sponsor is Nuveen, LLC (the “Sponsor”), a wholly owned subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). The Company is the sole general partner of Nuveen Global Cities REIT OP, LP, a Delaware limited partnership (“Nuveen OP”). Nuveen OP has issued a limited partner interest to Nuveen Global Cities REIT LP, LLC (the “Limited Partner”), a wholly owned subsidiary of the Company. The Company was organized to invest primarily in stabilized income-oriented commercial real estate in the United States and that a substantial but lesser portion of the Company’s portfolio will include real properties located in Canada, Europe and the Asia-Pacific region. Substantially all of the Company’s business will be conducted through Nuveen OP. The Company and Nuveen OP are externally managed by Nuveen Real Estate Global Cities Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of the Sponsor. Pursuant to a Registration Statement on Form S-11, |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s Consolidated Financial Statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited and include all adjustments necessary to present a fair statement of results for the interim periods presented. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K year-end All intercompany balances and transactions have been eliminated in consolidation. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place in-place in-place lease-up lease-up The amortization of acquired below-market leases is recorded as an adjustment to rental revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building and building improvements 40 years Land improvements 15 years Furniture, fixtures and equipment 3-7 Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in rental property operating expense on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value, or fair value, less cost to sell if classified as held for sale. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value or fair value, less cost to sell if classified as held for sale. During the periods presented, no such impairment occurred. Investments in Real Estate-Related Securities The Company has elected the fair market value option for accounting for real estate-related securities and changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared. The resulting dividend income and gains and losses are recorded as a component of realized and unrealized income from real estate-related securities on the Consolidated Statements of Operations. Investment in the International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund FCP (“APCF”), investment funds managed by an affiliate of TIAA (the “International Affiliated Funds”), under the equity method of accounting. The equity method income from the investment in International Affiliated Funds represent the Company’s allocable share of each fund’s net income for the three months ended March 31, 2019 and is reported as income (loss) from equity investment in unconsolidated international affiliated funds on the Company’s Consolidated Statement of Operations. The Company had no investment in International Affiliated Funds as of March 31, 2018. This includes the Company’s allocable share of the International Affiliated Fund’s income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) when received by the Company. All contributions to or distributions from the investment in the International Affiliated Fund is accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Consolidated Balance Sheets. Investment in Commercial Mortgage Loan at Fair Value The Financial Accounting Standards Board (“FASB”) issued authoritative guidance for fair value measurements and disclosures which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and requires certain disclosures about fair value measurements. The FASB has defined fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, any financial liabilities are reported at fair value. A third-party independent valuation firm appointed by the Company oversees and administers the appraisal process quarterly in accordance with the Company’s valuation policy. The values are based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral, and the credit quality of the borrower. Deferred Financing Costs Deferred financing costs include certain costs to obtain the credit facility and are included in Other Assets on the Company’s Consolidated Balance Sheets. These costs consist of external fees and costs incurred to obtain the Company’s credit facility. Such costs have been deferred and are being amortized over the term of the credit facility and included within interest expense. Unamortized costs are charged to expenses upon early repayment or significant modification of the credit facility. Fully amortized deferred financing costs are removed from the books upon the maturity of the credit facility. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The carrying amounts of financial instruments such as other assets, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. As of March 31, 2019, the Company’s $34.0 million of investments in real-estate related securities consisted of shares of common stock of publicly-traded REITs and were classified as Level 1. These investments are recorded at fair value based on the closing price of the common stock as reported by national securities exchanges. As of March 31, 2019, the Company’s $45.1 million of investment in commercial mortgage loan consisted of a loan the Company originated and was classified as Level 3. The commercial mortgage loan is carried at fair value based on significant unobservable inputs. Revenue Recognition The Company’s sources of revenue arising from leasing arrangements and the related revenue recognition policies are as follows: Rental revenue— consists of base rent arising from tenant operating leases at the Company’s office, industrial and multifamily properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consist of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs includes in lease agreements. Interest income from commercial mortgage loan—consists of interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate. Loan origination fees, commitment fees and direct loan origination costs are offset and the net amount is deferred and amortized over the term of the related loan as an adjustment to yield using the effective interest method. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payment are received until the loans are returned to accrual status. As of March 31, 2019, the Company did not have any mortgage loans on nonaccrual status. Cash and Cash Equivalents Cash and cash equivalents represents cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. Restricted Cash As of March 31, 2019, restricted cash primarily consists of $2,466,500 of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent but in the name of the Company. Other restricted cash primarily consists of $1,095,530 cash received in escrow related to the loan receivable acquired in March 2019. Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ending December 31, 2018. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings. Management has evaluated the effects of TCJA and concluded that the TCJA will not materially impact its consolidated financial statements. This is due to the fact that the Company is operating in a manner which will allow it to qualify as a REIT which will result in a full valuation allowance being recorded against its deferred tax balances. The Company also estimates that the new taxes on foreign-sourced earnings are not likely to apply to its foreign investments. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under ASC 740, Income Taxes. Though the Company believes that the impacts of the TCJA will be immaterial to its financial results, the Company continues to analyze certain aspects of the TCJA, therefore its estimates may change as additional information becomes available. Many of the provisions of the TCJA will require guidance through the issuance of Treasury regulations in order to assess their effect. There may be a substantial delay before such regulations are promulgated, increasing the uncertainty as to the ultimate effect of the statutory amendments on the Company. It is also likely that there will be technical corrections legislation proposed with respect to the TCJA this year, the effect of which cannot be predicted and may be adverse to the Company or its stockholders. Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and Administrative Expenses on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred. The Advisor has agreed to advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the fourth full fiscal quarter after the Company’s acquisition of its first property. The Company reimburses the Advisor for all such advanced expenses ratably over a 60 month period following December 31, 2018. For the three months ended March 31, 2019, the Company reimbursed the Advisor $0.2 million for costs related to the advanced expenses. As of March 31, 2019, the Advisor and its affiliates had incurred organization and offering expenses on the Company’s behalf of $4.7 million, consisting of offering costs of $3.6 million and organization costs of $1.1 million. Such costs became the Company’s liability on January 31, 2018, the date as of which the Offering was declared effective. These organization and offering costs are recorded as Due to affiliates on the Company’s Consolidated Balance Sheet as of March 31, 2019 and December 31, 2018. Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Revenues and expenses have been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of Accumulated Other Comprehensive Income (AOCI), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in a loss of $392 thousand for the three months ended March 31, 2019. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. Earnings per Share Basic net income/(loss) per share of common stock is determined by dividing net income/(loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income/(loss) at the same rate per share. Recent Accounting Pronouncements Pending Adoption: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, 2019-13”). 2018-13 In June 2016, the FASB issued ASU 2016-13, 2016-13”). 2016-13 2016-13 2016-13. Recently Adopted: In February 2016, the FASB issued Accounting Standards Update 2016-02 Leases (Topic 842) (“ASU 2016-02”) which supersedes Topic 840, Leases. This ASU applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance in ASU 2014-09, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. ASU 2016-02 contains certain practical expedients, which the Company has elected. The Company has elected the transition package of practical expedients permitted within the new standard. This practical expedient permits the Company to carryforward the historical lease classification and not to reassess initial direct costs for any existing leases. In addition, the Company has elected the practical expedient that allows lessors to avoid separating lease and non-lease components within a contract if certain criteria are met. The lessor’s practical expedient election is limited to circumstances in which (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component and (ii) the combined single lease component would be classified as an operating lease. This practical expedient allows the Company the ability to combine the lease and non-lease components if the underlying asset meets the two criteria above. In February 2019, the FASB issued ASU 2019-01, (“ASU 2019-01”). 2019-01 2019-01 2019-01 In May 2014, the FASB issued ASU 2014-09 (“ASU 2014-09”). 2014-09 |
Investments in Real Estate
Investments in Real Estate | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Investments in Real Estate | Note 3. Investments in Real Estate Investments in real estate, net consisted of the following (in thousands): March 31, 2019 December 31, 2018 Building and building improvements $ 249,522 $ 249,552 Land and land improvements 46,609 46,609 Furniture, fixtures and equipment 3,345 3,249 Total 299,476 299,410 Accumulated depreciation (7,181 ) (5,036 ) Investments in real estate, net $ 292,295 $ 294,374 Depreciation expense was $2.1 million for the three months ended March 31, 2019. The Company had no property acquisitions in the three months ended March 31, 2019 and during the year ended December 31, 2018, the Company acquired interests in four real property investments, which were comprised of one office, multifamily, industrial and a retail property. These property acquisitions have been accounted for as asset acquisitions. |
Investments in Real Estate-Rela
Investments in Real Estate-Related Securities | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Investments in Real Estate-Related Securities | Note 4. Investments in Real Estate-Related Securities As of March 31, 2019 and March 31, 2018, the Company’s investments in real estate-related securities included shares of common stock of publicly-traded REITs. As described in Note 2, the Company records its investments in real estate-related securities at fair value on its Consolidated Balance Sheets. The following table summarizes the components of realized and unrealized income from real estate-related securities during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended Three Months Ended Unrealized gains $ 4,769 $ 274 Realized (losses) (76 ) — Dividend income 293 114 Total $ 4,986 $ 388 |
Investment in International Aff
Investment in International Affiliated Funds | 3 Months Ended |
Mar. 31, 2019 | |
Schedule of Investments [Abstract] | |
Investment in International Affiliated Funds | Note 5. Investment in International Affiliated Funds Investment in ECF: On December 22, 2017, the Company entered into a subscription agreement to invest approximately $30 million (€25 million) into ECF. As of March 31, 2019, the Company had funded $18.6 million (€16.2 million) and has a remaining unfunded commitment of approximately $11.4 million (€8.8 million). As described in Note 2, the Company records its investment in ECF using the equity method on its Consolidated Balance Sheets. While the Company has strategies to manage the foreign exchange risk associated with its investment made in Euros, there can be no assurance that these strategies will be successful or that foreign exchange fluctuations will not negatively impact the Company’s financial performance and results of operations in a material manner. ECF was formed in March 2016 as an open-end, For the three months ended March 31, 2019, the Company recorded approximately $163,000 in income and unrealized loss based on its allocable share from ECF that is reflected on the Consolidated Statements of Operations. Investment in APCF: On November 9, 2018 the Company entered into a subscription agreement to invest $10 million into APCF. As of March 31, 2019, the Company has fully funded its commitment of $10 million. As described in Note 2, the Company records its investment in APCF using the equity method on its Consolidated Balance Sheets. APCF was launched in November 2018 as an open-end, For the three months ended March 31, 2019, the Company recorded approximately $328,000 in losses based on its allocable share from APCF that is reflected on the Consolidated Statements of Operations. |
Investment in Commercial Mortga
Investment in Commercial Mortgage Loan | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Investment in Commercial Mortgage Loan | Note 6. Investment in Commercial Mortgage Loan As of March 31, 2019 the Company had originated a senior and a mezzanine loan for an industrial property in Masbeth, NY. Loan terms as of March 31, 2019 are summarized below: Investment Name Asset Type Location Interest Rate Maturity Date Periodic Payment Terms Commitment Unfunded Principal Fair Value 55 Grand Avenue Senior Loan Masbeth, NY Libor + 285 bps March 29, 2024 Interest only 34,173 — 34,173 34,173 55 Grand Avenue Mezzanine Loan Masbeth, NY Libor + 285 bps March 29, 2024 Interest only 14,375 2,984 11,391 11,391 The estimated fair value of the mortgage loans are based on internally developed models that primarily use market based or independently sourced market data, including interest rate yield curves and market spreads. Valuation adjustments may be made to reflect credit quality, liquidity, and other observable and unobservable data that are applied consistently over time. |
Intangibles
Intangibles | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles | Note 7. Intangibles The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following (in thousands): March 31, 2019 December 31, 2018 Intangible assets: In-place $ 14,679 $ 14,679 Above-market lease intangibles 154 154 Other intangibles 6,563 6,557 Total intangible assets $ 21,396 $ 21,390 Accumulated amortization: In-place (5,385 ) (4,396 ) Above-market lease intangibles (8 ) (3 ) Other intangibles (873 ) (624 ) Total accumulated amortization $ (6,266 ) $ (5,023 ) Intangible assets, net $ 15,130 $ 16,367 Intangible liabilities: Below-market lease intangibles $ (5,876 ) $ (5,876 ) Accumulated amortization 203 117 Intangible liabilities, net $ (5,673 ) $ (5,759 ) Amortization expense relating to intangible assets was $1.2 million for the three months ended March 31, 2019. Income from the amortization of intangible liabilities was approximately $0.1 million for the three months ended March 31, 2019. The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows (in thousands): In-place Lease Intangibles Other Intangibles Below-market Lease Intangibles Remaining 2019 $ 1,676 $ 728 $ (257 ) 2020 1,467 891 (338 ) 2021 1,227 717 (328 ) 2022 981 641 (313 ) 2023 652 497 (312 ) Thereafter 3,291 2,362 (4,125 ) $ 9,294 $ 5,836 $ (5,673 ) The weighted-average amortization periods for the acquired in-place |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facility | Note 8. Credit Facility On October 24, 2018, the Company entered into a credit agreement (“Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as administrative agent and lead arranger. The Credit Agreement provides for aggregate commitments of up to $60 million for unsecured revolving loans, with an accordion feature that may increase the aggregate commitments to up to $500 million. Loans outstanding under the credit facility bear interest, at Nuveen OP’s option, at either an adjusted base rate or an adjusted 30 day LIBOR rate, in each case, plus an applicable margin. The applicable margin ranges from 1.30% to 1.90% for borrowings at the adjusted LIBOR rate, in each case, based on the total leverage ratio of Nuveen OP’s and its subsidiaries. Loans under the credit facility will mature three years from October 24, 2018, with an option to extend twice for an additional year pursuant to the terms of the Credit Agreement. On December 17, 2018, the Company amended the Credit Agreement to increase the Credit Facility from $60 million to $150 million in aggregate commitments, with all other terms remaining the same. As of March 31, 2019, the Company had $115 million in borrowings and $0.2 million in accrued interest outstanding under the Credit Facility. For the three months ended March 31, 2019, the Company incurred $0.7 million in interest expense. As of March 31, 2019, the Company is in compliance with all loan covenants. |
Other Assets and Other Liabilit
Other Assets and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Other Assets and Other Liabilities | Note 9. Other Assets and Other Liabilities The following table summarizes the components of other assets (in thousands): March 31, 2019 December 31, 2018 Straight-line rent receivable $ 1,529 $ 1,119 Deferred financing costs, net 703 771 Receivables 645 353 Prepaid expenses 397 288 Other 42 53 Total $ 3,316 $ 2,584 The following table summarizes the components of accounts payable, accrued expenses, and other liabilities (in thousands): March 31, 2019 December 31, 2018 Real estate taxes payable $ 1,611 $ 2,099 Accounts payable and accrued expenses 1,391 1,420 Escrow funds for commercial mortgage loan 1,095 — Prepaid rental income 652 386 Tenant security deposits 569 587 Other 544 578 Total $ 5,862 $ 5,070 As of December 31, 2018, “Other” included a deposit received on a commercial mortgage loan that the Company has received and was applied against the funds when the commercial mortgage loan was originated in March 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10. Related Party Transactions Fees Due to Related Party Pursuant to the advisory agreement between the Company and the Advisor, the Advisor is responsible for sourcing, evaluating and monitoring the Company’s investment opportunities and making decisions related to the acquisition, management, financing and disposition of the Company’s assets, in accordance with the Company’s investment objectives, guidelines, policies and limitations, subject to oversight by the Company’s board of directors. The Advisor, will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee as a % of NAV 1.25 % 1.25 % 1.25 % 1.25 % 0.65 % As of March 31, 2019, the Company has accrued management fees of approximately $162,000 which has been included in accounts payable, accrued expenses, and other liabilities on the Company’s Consolidated Balance Sheets. The Company may retain certain of the Advisor’s affiliates for necessary services relating to the Company’s investments or its operations, including construction, special servicing, leasing, development, property oversight and other property management services, as well as services related to mortgage servicing, group purchasing, healthcare, consulting/brokerage, capital markets/credit origination, loan servicing, property, title and other types of insurance, management consulting and other similar operational matters. Any such arrangements will be at market terms and rates. As of March 31, 2019, the Company had not retained an affiliate of the Advisor for any such services. In addition, Nuveen Securities, LLC (the “Dealer Manager”) serves as the dealer manager for the Offering. The Dealer Manager is a registered broker-dealer affiliated with the Advisor. The Company’s obligations under the Dealer Manager Agreement to pay stockholder servicing fees with respect to the Class D, Class S and Class T shares distributed in the Offering shall survive until such shares are no longer outstanding (including because such shares converted into Class I shares). As of March 31, 2019, the Company has accrued approximately $74,000 of stockholder servicing fees with respect to the outstanding Class D and Class T common shares. The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offering, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Maximum Upfront Maximum Upfront Selling Commissions as a % of Dealer Manager Fees as a % of Stockholder Servicing Transaction Price Transaction Price Fee as a % of NAV Class T shares up to 3.0% 0.50% 0.85% (1) Class S shares up to 3.5% None 0.85% Class D shares None None 0.25% Class I shares None None None (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. The Company will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held within such account would exceed, in the aggregate, 8.75% of the sum of the gross proceeds from the sale of such shares and the aggregate gross proceeds of any shares issued under the distribution reinvestment plan with respect thereto (or, solely with respect to the Class T shares, a lower limit set forth in an agreement between the Dealer Manager and the applicable participating broker-dealer in effect on the date that such shares were sold). At the end of such month, each Class T share, Class S share and Class D share held in a stockholder’s account will convert into a number of Class I shares (including any fractional shares) with an equivalent aggregate NAV as such share. The Company accrues the cost of the stockholder servicing fee as an offering cost at the time each Class T, Class S and Class D share is sold during the primary offering. There is not a stockholder servicing fee with respect to Class I shares. If not already converted into Class I shares upon a determination that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to such shares would exceed the applicable limit as described above, each Class T share, Class S share, Class D share and Class N share held in a stockholder’s account will automatically and without any action on the part of the holder thereof convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share on the earliest of (i) a listing of Class I shares, (ii) the Company’s merger or consolidation with or into another entity or the sale or other disposition of all or substantially all of the Company’s assets, in each case in a transaction in which stockholders receive cash and/or listed securities or (iii) after termination of the primary portion of the offering in which such Class T shares, Class S shares and Class D shares were sold, the end of the month in which the Company, with the assistance of the dealer manager, determines that all underwriting compensation from all sources in connection with the Offering, including upfront selling commissions, the stockholder servicing fee and other underwriting compensation, is equal to 10% of the gross proceeds of the primary portion of the Offering. In addition, immediately before any liquidation, dissolution or winding up, each Class T share, Class S share, Class D share and Class N shares will automatically convert into a number of Class I shares (including any fractional shares) with an equivalent NAV as such share. As part of TIAA’s agreement to purchase these Class N shares, the Advisor has agreed that, in the event that certain capital raising thresholds are not achieved in the Offering, the Advisor will reimburse TIAA a portion of the advisory fees and organization and offering expenses charged with respect to the Class N shares. Due to Affiliates March 31, 2019 December 31, 2018 Accrued stockholder servicing fees(a) $ 74 $ 23 Advanced organization and offering costs 4,648 4,579 Total $ 4,722 $ 4,602 (a) The Company accrues the full amount of future stockholder servicing fees payable to the dealer manager for Class S, Class T and Class D shares up to the 8.75% of gross proceeds limit at the time such shares are sold. As of March 31, 2019, the Company accrued approximately $74,000 of stockholder servicing fees payable to the Dealer Manager related to Class D and Class T shares sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, amount other things, for the re-allowance |
Economic Dependency
Economic Dependency | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Economic Dependency | Note 11. Economic Dependency The Company will be dependent on the Advisor and its affiliates for certain services that are essential to it, including the sale of the Company’s shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Advisor and its affiliates are unable to provide such services, the Company would be required to find alternative service providers. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2019, the Company was not involved in any material legal proceedings. In the normal course of business the Advisor, on behalf of the Company, enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Advisor expects the risk of loss to be remote. |
Tenant Leases
Tenant Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Tenant Leases | Note 13. Tenant Leases Rental income is recognized in accordance with the billing terms of the lease agreements. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Certain leases have the option to extend or terminate at the tenant’s discretion, with termination options resulting in additional fees due to the Company. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily investments are as follows (millions): Year Future Minimum Rent Remaining 2019 $ 11,992 2020 15,871 2021 15,128 2022 14,272 2023 12,778 Thereafter 65,087 Total $ 135,128 Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Equity | Note 14. Equity Authorized Capital On January 24, 2018, the Company filed Articles of Amendment and Restatement with the State Department of Assessments and Taxation of Maryland and the Company’s undesignated common stock became Class N shares of common stock and the Class D, Class S, Class T and Class I shares sold in the Offering were authorized. As of March 31, 2019, the Company had authority to issue a total of 2,200,000,000 shares of capital stock. Of the total shares of stock authorized, 2,100,000,000 shares are classified as common stock with a par value of $0.01 per share, 500,000,000 of which are classified as Class T shares, 500,000,000 of which are classified as Class S shares, 500,000,000 of which are classified as Class D shares, 500,000,000 of which are classified as Class I shares, 100,000,000 of which are classified as Class N shares, and 100,000,000 are classified as preferred stock with a par value of $0.01 per share. In addition, the Company’s board of directors may amend the charter from time to time, without stockholder approval, to increase or decrease the aggregate number of shares of stock or the number of shares of stock of any class or series that the Company has authority to issue, or to issue additional classes of stock which may be subject to various class-specific fees. Preferred Stock On January 2, 2019, the Company filed Articles Supplementary to its charter, which set forth the rights, preferences and privileges of its 12.0% Series A cumulative non-voting Common Stock As of March 31, 2019, the Company has issued and outstanding 48,606 shares of Class D common stock, 207,822 shares of Class I common stock, 49,624 shares of Class T common stock and 29,730,608 shares of Class N common stock. As of March 31, 2019, the Company has not sold any Class S shares. During the three months ended March 31, 2019, the Company sold the following shares of common stock in the Offering: Three months ended March 31, 2019 Class I Class D Class T Amounts Shares Share Price Amounts Shares Share Price Amounts Shares Share Price January 2019 $ 30,000 2,913 $ 10.30 $ — — $ — $ 24,272 2,359 $ 10.29 February 2019(1) $ 115,574 11,232 $ 10.29 $ 1,755 171 $ 10.28 $ 390,007 37,939 $ 10.28 March 2019 $ 75,000 7,205 $ 10.41 $ 235,000 22,596 $ 10.40 $ 97,087 9,327 $ 10.41 (1) Include shares issued as part of the distribution reinvestment plan and restricted stock awarded to Board Members The Class N shares owned by TIAA (excluding the initial capitalization which must be held for so long as the Advisor or its affiliate remains the advisor) shall be subject to the following limitations on repurchase: • (i) TIAA may submit up to 4,980,000 Class N shares for repurchase upon the earlier of (1) the date that the Company’s NAV reaches $1 billion, and (2) two years from the commencement of the Offering; and (ii) TIAA may submit all of its remaining Class N shares for repurchase beginning on the fifth anniversary of the commencement of the Offering. • The total amount of repurchases of Class N shares eligible for repurchase will be limited to no more than 0.67% of aggregate NAV per month and no more than 1.67% of the Company’s aggregate NAV per calendar quarter; provided that , if in any month or quarter the total amount of aggregate repurchases of all classes of common stock do not reach the overall share repurchase plan limits of 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter, the above repurchase limits on the Class N shares shall not apply to that month or quarter and TIAA shall be entitled to submit shares for repurchase up to the overall share repurchase plan limits. Restricted Stock Grants The Company’s Independent directors are compensated with an annual fee, of which 25% is made in the form of an annual grant of restricted stock based on the most recent transaction price. The restricted stock generally vests one year from the date of grant, which, in connection with the directors’ first annual grant, occurred on February 1, 2019. The Company accrued approximately $11,000 of expense for the three months ended March 31, 2019, in connection with restricted stock portion of director compensation, which is included in Accounts payable, accrued expenses and other liabilities on the Consolidated Balance Sheets. Distribution Reinvestment Plan The Company has adopted a distribution reinvestment plan whereby holders of Class T, Class S, Class D and Class I shares (other than investors in certain states or who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan) have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. Holders of Class N shares are not eligible to participate in the distribution reinvestment plan and will receive their distributions in cash. Investors who are clients of a participating broker-dealer that does not permit automatic enrollment in the distribution reinvestment plan or are residents of those states that do not allow automatic enrollment will receive their distributions in cash unless they elect to have their cash distributions reinvested in additional shares of the Company’s common stock. The per share purchase price for shares purchased pursuant to the distribution reinvestment plan will be equal to the transaction price at the time the distribution is payable, which will generally be equal to the Company’s prior month’s NAV per share for that share class. Stockholders do not pay upfront selling commissions or dealer manager fees when purchasing shares pursuant to the distribution reinvestment plan. The stockholder servicing fees with respect to shares of the Company’s Class T shares, Class S shares and Class D shares are calculated based on the NAV for those shares and may reduce the NAV or, alternatively, the distributions payable with respect to shares of each such class, including shares issued in respect of distributions on such shares under the distribution reinvestment plan. Distributions The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Code. Beginning September 30, 2018, the Company established a monthly record date for a quarterly distribution to stockholders on record as of the last day of each applicable month typically payable within 25 days following quarter end. Each class of common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable advisory fee and stockholder servicing fee, which is deducted from the monthly distribution per share. The Company’s board of directors declared distributions on all outstanding shares of common stock as of the close of business on the record dates of October 31, 2018, November 30, 2018 and December 31, 2018. These distributions were paid on January 29, 2019. The following table details these distributions: Class I Class D Class N Net Distribution $ 0.07 $ 0.07 $ 0.08 Total Distributions Declared 13,640 1,760 2,468,230 Based on the monthly record dates established by the board of directors, the Company accrues for distribution on a monthly basis. The Company accrued $2.7 million for January, February and March 2019 in Distribution payable on the Consolidated Balance Sheets. Share Repurchases The Company has adopted a share repurchase plan, whereby on a monthly basis, stockholders may request that the Company repurchase all or any portion of their shares. The Company may choose to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any particular month, in its discretion, subject to any limitations in the share repurchase plan. The total amount of aggregate repurchases of Class D, Class S, Class T, and Class I shares will be limited to 2% of the aggregate NAV per month and 5% of the aggregate NAV per calendar quarter. Shares would be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any early repurchase deduction. Shares that have not been outstanding for at least one year would be repurchased at 95% of the transaction price. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests and has established limitations on the amount of funds the Company may use for repurchases during any calendar month and quarter. Further, the Company’s board of directors may modify, suspend or terminate the share repurchase plan. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 15. Segment Reporting The Company currently operates in seven reportable segments: multifamily properties, office properties, industrial properties, real estate-related securities, International Affiliated Funds, and mortgage loans. These are operating segments that are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-makers in deciding how to allocate resources and in assessing performance. The Company’s chief executive officer, chief financial officer and head of portfolio management have been identified as the chief operating decision-makers. The Company’s chief operating decision-makers direct the allocation of resources to operating segments based on the profitability and cash flows of each respective segment. The Company believes that Segment Net Operating Income is the performance metric that captures the unique operating characteristics of each segment. The following table sets forth the total assets by segment as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Multifamily $ 96,268 $ 97,448 Industrial 89,076 89,963 Office 34,170 34,134 Retail 90,319 90,881 Real Estate-Related Securities 33,952 29,228 International Affiliated Fund 28,051 28,594 Commercial Mortgage Loans 45,134 — Other (Corporate) 9,908 6,598 Total assets $ 426,878 $ 376,846 The following table sets forth the financial results by segment for the three months ended March 31, 2019 (in thousands): Multifamily Office Industrial Retail Real International Commercial Total Revenues: Rental Revenue $ 2,360 $ 810 $ 1,931 $ 1,644 $ — $ — $ — $ 6,745 Interest income from commercial mortgage loan — — — — — — 21 21 Total revenues 2,360 810 1,931 1,644 — — 21 6,766 Expenses: Rental property operating 1,085 255 575 371 — — — 2,286 Total expenses 1,085 255 575 371 — — — 2,286 Realized and unrealized income from real estate-related securities — — — — 4,986 — — 4,986 Income (loss) from equity investment in unconsolidated international affiliated funds — — — — — (165 ) — (165 ) Segment net operating income $ 1,275 $ 555 $ 1,356 $ 1,273 $ 4,986 $ (165 ) $ 42 $ 9,301 Depreciation and amortization (1,201 ) (280 ) (1,117 ) (789 ) — — — (3,387 ) General and administrative expenses (958 ) Advisory fee due to affiliate (467 ) Interest Income 11 Interest Expense (752 ) Net income 3,748 Net income attributable to series A preferred stock 4 Net income attributable to NREIT stockholders $ 3,744 The following table sets forth the financial results by segment for the three months ended March 31, 2018 (in thousands): Multifamily Industrial Real Estate-Related Total Revenues: Rental revenue $ 1,295 $ 1,527 $ — $ 2,822 Total revenues $ 1,295 $ 1,527 $ — $ 2,822 Expenses: Rental property operating expenses $ 580 $ 386 $ — $ 966 Total expenses $ 580 $ 368 $ — $ 966 Realized and unrealized income from real estate-related securities — — 388 388 Segment net operating income $ 715 $ 1,141 $ 388 $ 2,244 Depreciation and amortization $ 851 $ 922 $ — $ 1,773 General and administrative expenses 1,691 Advisory fee due to affiliate 295 Net loss $ (1,515 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events The Company’s board of directors declared distributions on all outstanding shares of common stock as of the close of business on the record dates of January 31, 2019, February 28, 2019 and March 31, 2019. The Company paid these distributions amounting to $2.7 million on April 29, 2019. On April 1, 2019 the Company sold approximately $2.5 million of common stock (19,157 Class D shares, 183,014 Class I Shares, and 33,457 Class T shares) at a purchase price of $10.44 for Class D, $10.45 for Class I, and $10.33 for Class T. On May 1, 2019 the Company sold approximately $1.1 million of common stock (30,720 Class D shares, 4,165 Class I Shares, and 70,321 Class T shares) at a purchase price of $10.50 for Class D, $10.52 for Class I, and $10.42 for Class T. On May 3, 2019 the Company completed the acquisition of the property known as East Sego Lily from an unaffiliated third party for a total cost of $44.6 million, including purchase price credits and transaction costs. East Sego Lily is a 5-story 148,467 square feet suburban office building located in the Sandy submarket of Salt Lake City, UT. The Property is 97% leased to eight tenants with a weighted average lease term remaining of 7 years. The Company funded the acquisition with cash on hand, proceeds from the sale of REIT securities, and borrowings of $33 million from its Credit Facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated Financial Statements include the accounts of the Company and its subsidiaries, and in the opinion of management, include all necessary adjustments, consisting of only normal and recurring items, necessary for a fair statement of the Company’s Consolidated Financial Statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited and include all adjustments necessary to present a fair statement of results for the interim periods presented. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the SEC. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed from this report pursuant to the rules of the SEC. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements prepared in accordance with GAAP, and the related notes thereto, that are included in the Company’s Annual Report on Form 10-K year-end All intercompany balances and transactions have been eliminated in consolidation. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. |
Investments in Real Estate | Investments in Real Estate In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, above-market and below-market leases, acquired in-place The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place in-place in-place lease-up lease-up The amortization of acquired below-market leases is recorded as an adjustment to rental revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows: Description Depreciable Life Building and building improvements 40 years Land improvements 15 years Furniture, fixtures and equipment 3-7 Lease intangibles Over lease term Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Repairs and maintenance are expensed to operations as incurred and are included in rental property operating expense on the Company’s Consolidated Statements of Operations. The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value, or fair value, less cost to sell if classified as held for sale. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value or fair value, less cost to sell if classified as held for sale. During the periods presented, no such impairment occurred. |
Investments in Real Estate-Related Securities | Investments in Real Estate-Related Securities The Company has elected the fair market value option for accounting for real estate-related securities and changes in fair value are recorded in the current period earnings. Dividend income is recorded when declared. The resulting dividend income and gains and losses are recorded as a component of realized and unrealized income from real estate-related securities on the Consolidated Statements of Operations. |
Investment in the International Affiliated Funds | Investment in the International Affiliated Funds The Company reports its investment in European Cities Partnership SCSp (“ECF”) and Asia Pacific Cities Fund FCP (“APCF”), investment funds managed by an affiliate of TIAA (the “International Affiliated Funds”), under the equity method of accounting. The equity method income from the investment in International Affiliated Funds represent the Company’s allocable share of each fund’s net income for the three months ended March 31, 2019 and is reported as income (loss) from equity investment in unconsolidated international affiliated funds on the Company’s Consolidated Statement of Operations. The Company had no investment in International Affiliated Funds as of March 31, 2018. This includes the Company’s allocable share of the International Affiliated Fund’s income and expense, realized gains and losses, and unrealized appreciation or depreciation as determined from the financial statements of ECF and APCF (which carry investments at fair value in accordance with the applicable GAAP) when received by the Company. All contributions to or distributions from the investment in the International Affiliated Fund is accrued when notice is received and recorded as a receivable from or payable to the International Affiliated Funds on the Consolidated Balance Sheets. |
Investment in Commercial Mortgage Loan at Fair Value | Investment in Commercial Mortgage Loan at Fair Value The Financial Accounting Standards Board (“FASB”) issued authoritative guidance for fair value measurements and disclosures which defines fair value, establishes a framework for measuring fair value under U.S. GAAP, and requires certain disclosures about fair value measurements. The FASB has defined fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. In accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of the Company, any financial liabilities are reported at fair value. A third-party independent valuation firm appointed by the Company oversees and administers the appraisal process quarterly in accordance with the Company’s valuation policy. The values are based on market factors, such as market interest rates and spreads for comparable loans, the performance of the underlying collateral, and the credit quality of the borrower. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs include certain costs to obtain the credit facility and are included in Other Assets on the Company’s Consolidated Balance Sheets. These costs consist of external fees and costs incurred to obtain the Company’s credit facility. Such costs have been deferred and are being amortized over the term of the credit facility and included within interest expense. Unamortized costs are charged to expenses upon early repayment or significant modification of the credit facility. Fully amortized deferred financing costs are removed from the books upon the maturity of the credit facility. |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Accounting guidance also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1—quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments. Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date. Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. The carrying amounts of financial instruments such as other assets, accounts payable, accrued expenses and other liabilities approximate their fair values due to the short-term maturities and market rates of interest of these instruments. As of March 31, 2019, the Company’s $34.0 million of investments in real-estate related securities consisted of shares of common stock of publicly-traded REITs and were classified as Level 1. These investments are recorded at fair value based on the closing price of the common stock as reported by national securities exchanges. As of March 31, 2019, the Company’s $45.1 million of investment in commercial mortgage loan consisted of a loan the Company originated and was classified as Level 3. The commercial mortgage loan is carried at fair value based on significant unobservable inputs. |
Revenue Recognition | Revenue Recognition The Company’s sources of revenue arising from leasing arrangements and the related revenue recognition policies are as follows: Rental revenue— consists of base rent arising from tenant operating leases at the Company’s office, industrial and multifamily properties. Rental revenue is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue when a tenant takes possession of the leased space. The Company includes its tenant reimbursement income in rental revenue that consist of amounts due from tenants for costs related to common area maintenance, real estate taxes and other recoverable costs includes in lease agreements. Interest income from commercial mortgage loan—consists of interest earned and recognized as operating income based upon the principal amount outstanding and the contracted interest rate. Loan origination fees, commitment fees and direct loan origination costs are offset and the net amount is deferred and amortized over the term of the related loan as an adjustment to yield using the effective interest method. The accrual of interest income on mortgage loans is discontinued when in management’s opinion, the borrower may be unable to meet payments as they become due (“nonaccrual mortgage loans”), unless the loan is well-secured and is in the process of collection. Interest income on nonaccrual mortgage loans is subsequently recognized only to the extent cash payment are received until the loans are returned to accrual status. As of March 31, 2019, the Company did not have any mortgage loans on nonaccrual status. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represents cash held in banks, cash on hand and liquid investments with original maturities of three months or less at the time of purchase. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash with high credit-quality institutions to minimize credit risk. |
Restricted Cash | Restricted Cash As of March 31, 2019, restricted cash primarily consists of $2,466,500 of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent but in the name of the Company. Other restricted cash primarily consists of $1,095,530 cash received in escrow related to the loan receivable acquired in March 2019. |
Income Taxes | Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ending December 31, 2018. If the Company qualifies for taxation as a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes 90% of its taxable income to its stockholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company may elect to treat certain of its corporate subsidiaries as taxable REIT subsidiaries (“TRSs”). In general, a TRS may perform additional services for the Company’s tenants and generally may engage in any real estate or non-real Tax legislation commonly referred to as the Tax Cuts & Jobs Act (the “TCJA”) was enacted on December 22, 2017. Among other things, the TCJA reduces the U.S. federal corporate income tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings. Management has evaluated the effects of TCJA and concluded that the TCJA will not materially impact its consolidated financial statements. This is due to the fact that the Company is operating in a manner which will allow it to qualify as a REIT which will result in a full valuation allowance being recorded against its deferred tax balances. The Company also estimates that the new taxes on foreign-sourced earnings are not likely to apply to its foreign investments. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the TCJA. SAB 118 provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under ASC 740, Income Taxes. Though the Company believes that the impacts of the TCJA will be immaterial to its financial results, the Company continues to analyze certain aspects of the TCJA, therefore its estimates may change as additional information becomes available. Many of the provisions of the TCJA will require guidance through the issuance of Treasury regulations in order to assess their effect. There may be a substantial delay before such regulations are promulgated, increasing the uncertainty as to the ultimate effect of the statutory amendments on the Company. It is also likely that there will be technical corrections legislation proposed with respect to the TCJA this year, the effect of which cannot be predicted and may be adverse to the Company or its stockholders. |
Organization and Offering Expenses | Organization and Offering Expenses Organization costs are expensed as incurred and recorded as a component of General and Administrative Expenses on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred. The Advisor has agreed to advance organization and offering expenses on behalf of the Company (including legal, accounting, and other expenses attributable to the organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through the fourth full fiscal quarter after the Company’s acquisition of its first property. The Company reimburses the Advisor for all such advanced expenses ratably over a 60 month period following December 31, 2018. For the three months ended March 31, 2019, the Company reimbursed the Advisor $0.2 million for costs related to the advanced expenses. As of March 31, 2019, the Advisor and its affiliates had incurred organization and offering expenses on the Company’s behalf of $4.7 million, consisting of offering costs of $3.6 million and organization costs of $1.1 million. Such costs became the Company’s liability on January 31, 2018, the date as of which the Offering was declared effective. These organization and offering costs are recorded as Due to affiliates on the Company’s Consolidated Balance Sheet as of March 31, 2019 and December 31, 2018. |
Foreign Currency | Foreign Currency The financial position and results of operations of ECF is measured using the local currency (Euro) as the functional currency and are translated into U.S. dollars for purposes of recording the related activity under the equity method of accounting. Revenues and expenses have been translated at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of Accumulated Other Comprehensive Income (AOCI), unless there is a sale or complete liquidation of the underlying foreign investments. Foreign currency translation adjustments resulted in a loss of $392 thousand for the three months ended March 31, 2019. The financial position and results of operations of APCF is measured in U.S. dollars for purposes of recording the related activity under the equity method of accounting. There is no direct foreign currency exposure to the Company for its investment in APCF. |
Earnings per Share | Earnings per Share Basic net income/(loss) per share of common stock is determined by dividing net income/(loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income/(loss) at the same rate per share. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pending Adoption: In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-13, 2019-13”). 2018-13 In June 2016, the FASB issued ASU 2016-13, 2016-13”). 2016-13 2016-13 2016-13. Recently Adopted: In February 2016, the FASB issued Accounting Standards Update 2016-02 Leases (Topic 842) (“ASU 2016-02”) which supersedes Topic 840, Leases. This ASU applies to all entities that enter into leases. Lessees are required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance in ASU 2014-09, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. ASU 2016-02 contains certain practical expedients, which the Company has elected. The Company has elected the transition package of practical expedients permitted within the new standard. This practical expedient permits the Company to carryforward the historical lease classification and not to reassess initial direct costs for any existing leases. In addition, the Company has elected the practical expedient that allows lessors to avoid separating lease and non-lease components within a contract if certain criteria are met. The lessor’s practical expedient election is limited to circumstances in which (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component and (ii) the combined single lease component would be classified as an operating lease. This practical expedient allows the Company the ability to combine the lease and non-lease components if the underlying asset meets the two criteria above. In February 2019, the FASB issued ASU 2019-01, (“ASU 2019-01”). 2019-01 2019-01 2019-01 In May 2014, the FASB issued ASU 2014-09 (“ASU 2014-09”). 2014-09 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life of Assets | Description Depreciable Life Building and building improvements 40 years Land improvements 15 years Furniture, fixtures and equipment 3-7 Lease intangibles Over lease term |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of Investments in Real Estate, Net | Investments in real estate, net consisted of the following (in thousands): March 31, 2019 December 31, 2018 Building and building improvements $ 249,522 $ 249,552 Land and land improvements 46,609 46,609 Furniture, fixtures and equipment 3,345 3,249 Total 299,476 299,410 Accumulated depreciation (7,181 ) (5,036 ) Investments in real estate, net $ 292,295 $ 294,374 |
Investments in Real Estate-Re_2
Investments in Real Estate-Related Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Components of Realized and Unrealized Income From Real Estate Related Securities | The following table summarizes the components of realized and unrealized income from real estate-related securities during the three months ended March 31, 2019 and March 31, 2018: Three Months Ended Three Months Ended Unrealized gains $ 4,769 $ 274 Realized (losses) (76 ) — Dividend income 293 114 Total $ 4,986 $ 388 |
Investment in Commercial Mort_2
Investment in Commercial Mortgage Loan (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Loan Terms | As of March 31, 2019 the Company had originated a senior and a mezzanine loan for an industrial property in Masbeth, NY. Loan terms as of March 31, 2019 are summarized below: Investment Name Asset Type Location Interest Rate Maturity Date Periodic Payment Terms Commitment Unfunded Principal Fair Value 55 Grand Avenue Senior Loan Masbeth, NY Libor + 285 bps March 29, 2024 Interest only 34,173 — 34,173 34,173 55 Grand Avenue Mezzanine Loan Masbeth, NY Libor + 285 bps March 29, 2024 Interest only 14,375 2,984 11,391 11,391 |
Intangibles (Tables)
Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities | The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following (in thousands): March 31, 2019 December 31, 2018 Intangible assets: In-place $ 14,679 $ 14,679 Above-market lease intangibles 154 154 Other intangibles 6,563 6,557 Total intangible assets $ 21,396 $ 21,390 Accumulated amortization: In-place (5,385 ) (4,396 ) Above-market lease intangibles (8 ) (3 ) Other intangibles (873 ) (624 ) Total accumulated amortization $ (6,266 ) $ (5,023 ) Intangible assets, net $ 15,130 $ 16,367 Intangible liabilities: Below-market lease intangibles $ (5,876 ) $ (5,876 ) Accumulated amortization 203 117 Intangible liabilities, net $ (5,673 ) $ (5,759 ) |
Estimated Future Amortization | The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter is as follows (in thousands): In-place Lease Intangibles Other Intangibles Below-market Lease Intangibles Remaining 2019 $ 1,676 $ 728 $ (257 ) 2020 1,467 891 (338 ) 2021 1,227 717 (328 ) 2022 981 641 (313 ) 2023 652 497 (312 ) Thereafter 3,291 2,362 (4,125 ) $ 9,294 $ 5,836 $ (5,673 ) |
Other Assets and Other Liabil_2
Other Assets and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Summary of Components of Other Assets | The following table summarizes the components of other assets (in thousands): March 31, 2019 December 31, 2018 Straight-line rent receivable $ 1,529 $ 1,119 Deferred financing costs, net 703 771 Receivables 645 353 Prepaid expenses 397 288 Other 42 53 Total $ 3,316 $ 2,584 |
Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities | The following table summarizes the components of accounts payable, accrued expenses, and other liabilities (in thousands): March 31, 2019 December 31, 2018 Real estate taxes payable $ 1,611 $ 2,099 Accounts payable and accrued expenses 1,391 1,420 Escrow funds for commercial mortgage loan 1,095 — Prepaid rental income 652 386 Tenant security deposits 569 587 Other 544 578 Total $ 5,862 $ 5,070 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets | The Advisor, will receive fees and compensation, payable monthly in arrears, in connection with the offering and ongoing management of the assets of the Company, as follows: Class T Shares Class S Shares Class D Shares Class I Shares Class N Shares Advisory Fee as a % of NAV 1.25 % 1.25 % 1.25 % 1.25 % 0.65 % |
Summary of Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV | The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offering, and the stockholder servicing fee per annum based on the aggregate outstanding NAV: Maximum Upfront Maximum Upfront Selling Commissions as a % of Dealer Manager Fees as a % of Stockholder Servicing Transaction Price Transaction Price Fee as a % of NAV Class T shares up to 3.0% 0.50% 0.85% (1) Class S shares up to 3.5% None 0.85% Class D shares None None 0.25% Class I shares None None None (1) Consists of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum (or other amounts, provided that the sum equals 0.85%), of the aggregate NAV of outstanding Class T shares. |
Schedule of Components of Due to Affiliates | Due to Affiliates March 31, 2019 December 31, 2018 Accrued stockholder servicing fees(a) $ 74 $ 23 Advanced organization and offering costs 4,648 4,579 Total $ 4,722 $ 4,602 (a) The Company accrues the full amount of future stockholder servicing fees payable to the dealer manager for Class S, Class T and Class D shares up to the 8.75% of gross proceeds limit at the time such shares are sold. As of March 31, 2019, the Company accrued approximately $74,000 of stockholder servicing fees payable to the Dealer Manager related to Class D and Class T shares sold. The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, amount other things, for the re-allowance |
Tenant Leases (Tables)
Tenant Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Future Minimum Rents Expects to Receive for Industrial, Retail and Office Properties, Excluding Tenant Reimbursements of Operating Expenses | Certain leases have the option to extend or terminate at the tenant’s discretion, with termination options resulting in additional fees due to the Company. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Company through the non-cancelable lease term, excluding short-term multifamily investments are as follows (millions): Year Future Minimum Rent Remaining 2019 $ 11,992 2020 15,871 2021 15,128 2022 14,272 2023 12,778 Thereafter 65,087 Total $ 135,128 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Declared Distributions | The following table details these distributions: Class I Class D Class N Net Distribution $ 0.07 $ 0.07 $ 0.08 Total Distributions Declared 13,640 1,760 2,468,230 |
Initial Public Offering | |
Schedule of Common Stock | During the three months ended March 31, 2019, the Company sold the following shares of common stock in the Offering: Three months ended March 31, 2019 Class I Class D Class T Amounts Shares Share Price Amounts Shares Share Price Amounts Shares Share Price January 2019 $ 30,000 2,913 $ 10.30 $ — — $ — $ 24,272 2,359 $ 10.29 February 2019(1) $ 115,574 11,232 $ 10.29 $ 1,755 171 $ 10.28 $ 390,007 37,939 $ 10.28 March 2019 $ 75,000 7,205 $ 10.41 $ 235,000 22,596 $ 10.40 $ 97,087 9,327 $ 10.41 (1) Include shares issued as part of the distribution reinvestment plan and restricted stock awarded to Board Members |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Total Assets by Segment | The following table sets forth the total assets by segment as of March 31, 2019 and December 31, 2018 (in thousands): March 31, 2019 December 31, 2018 Multifamily $ 96,268 $ 97,448 Industrial 89,076 89,963 Office 34,170 34,134 Retail 90,319 90,881 Real Estate-Related Securities 33,952 29,228 International Affiliated Fund 28,051 28,594 Commercial Mortgage Loans 45,134 — Other (Corporate) 9,908 6,598 Total assets $ 426,878 $ 376,846 |
Summary of Financial Results by Segment | The following table sets forth the financial results by segment for the three months ended March 31, 2019 (in thousands): Multifamily Office Industrial Retail Real International Commercial Total Revenues: Rental Revenue $ 2,360 $ 810 $ 1,931 $ 1,644 $ — $ — $ — $ 6,745 Interest income from commercial mortgage loan — — — — — — 21 21 Total revenues 2,360 810 1,931 1,644 — — 21 6,766 Expenses: Rental property operating 1,085 255 575 371 — — — 2,286 Total expenses 1,085 255 575 371 — — — 2,286 Realized and unrealized income from real estate-related securities — — — — 4,986 — — 4,986 Income (loss) from equity investment in unconsolidated international affiliated funds — — — — — (165 ) — (165 ) Segment net operating income $ 1,275 $ 555 $ 1,356 $ 1,273 $ 4,986 $ (165 ) $ 42 $ 9,301 Depreciation and amortization (1,201 ) (280 ) (1,117 ) (789 ) — — — (3,387 ) General and administrative expenses (958 ) Advisory fee due to affiliate (467 ) Interest Income 11 Interest Expense (752 ) Net income 3,748 Net income attributable to series A preferred stock 4 Net income attributable to NREIT stockholders $ 3,744 The following table sets forth the financial results by segment for the three months ended March 31, 2018 (in thousands): Multifamily Industrial Real Estate-Related Total Revenues: Rental revenue $ 1,295 $ 1,527 $ — $ 2,822 Total revenues $ 1,295 $ 1,527 $ — $ 2,822 Expenses: Rental property operating expenses $ 580 $ 386 $ — $ 966 Total expenses $ 580 $ 368 $ — $ 966 Realized and unrealized income from real estate-related securities — — 388 388 Segment net operating income $ 715 $ 1,141 $ 388 $ 2,244 Depreciation and amortization $ 851 $ 922 $ — $ 1,773 General and administrative expenses 1,691 Advisory fee due to affiliate 295 Net loss $ (1,515 ) |
Organization and Business Pur_2
Organization and Business Purpose - Additional Information (Detail) | Mar. 31, 2019Classshares |
Organization And Business Activities [Line Items] | |
Common stock shares authorized | 2,100,000,000 |
Maximum | |
Organization And Business Activities [Line Items] | |
Common stock shares authorized | 5,000,000,000 |
Number of classes of common stock | Class | 4 |
Maximum | Primary Offering | |
Organization And Business Activities [Line Items] | |
Common stock shares authorized | 4,000,000,000 |
Maximum | Dividend Reinvestment Plan | |
Organization And Business Activities [Line Items] | |
Common stock shares authorized | 1,000,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Properties [Line Items] | |
Lease intangibles | Over lease term |
Building and Building Improvements | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 40 years |
Land Improvements | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 15 years |
Furniture, Fixtures and Equipment | Minimum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 3 years |
Furniture, Fixtures and Equipment | Maximum | |
Real Estate Properties [Line Items] | |
Estimated useful life of asset | 7 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)Subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Significant Of Accounting Policies [Line Items] | |||
Investments in real estate-related securities, at fair value | $ 33,952,000 | $ 29,228,000 | |
Investment in commercial mortgage loan, at fair value | 45,133,000 | ||
Restricted cash | $ 3,562,000 | $ 56,000 | |
Percentage of taxable income distributed to stockholders | 90.00% | ||
Number of active TRSs | Subsidiary | 3 | ||
Income tax provision | $ 0 | ||
U.S. federal corporate income tax rate | 21.00% | 35.00% | |
Foreign currency translation adjustments gain (loss) | $ (392,000) | ||
Advisor | |||
Significant Of Accounting Policies [Line Items] | |||
Period for reimbursement of advance expenses | 60 months | ||
Reimbursement of advance expenses costs | $ 200,000 | ||
Organizational and offering costs | 4,700,000 | ||
Offering cost | 3,600,000 | ||
Organization costs | 1,100,000 | ||
Subscription Arrangement | |||
Significant Of Accounting Policies [Line Items] | |||
Restricted cash | 2,466,500 | ||
Loans Receivable [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Restricted cash | 1,095,530 | ||
Fair Value, Inputs, Level 1 | |||
Significant Of Accounting Policies [Line Items] | |||
Investments in real estate-related securities, at fair value | 34,000,000 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Significant Of Accounting Policies [Line Items] | |||
Investment in commercial mortgage loan, at fair value | $ 45,100,000 |
Investments in Real Estate - Sc
Investments in Real Estate - Schedule of Investments in Real Estate, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | ||
Building and building improvements | $ 249,522 | $ 249,552 |
Land and land improvements | 46,609 | 46,609 |
Furniture, fixtures and equipment | 3,345 | 3,249 |
Total | 299,476 | 299,410 |
Accumulated depreciation | (7,181) | (5,036) |
Investments in real estate, net | $ 292,295 | $ 294,374 |
Investments in Real Estate - Ad
Investments in Real Estate - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)Property | Dec. 31, 2018Property | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | ||
Depreciation expense | $ | $ 2.1 | |
Number of properties acquired | Property | 0 | 4 |
Investments in Real Estate-Re_3
Investments in Real Estate-Related Securities - Summary of Components of Realized and Unrealized Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Real Estate [Abstract] | ||
Unrealized gains on investments in real estate-related securities | $ 4,769 | $ 274 |
Realized (losses) on investments in real estate-related securities | (76) | |
Dividend income | 293 | 114 |
Total | $ 4,986 | $ 388 |
Investment in International A_2
Investment in International Affiliated Fund - Additional Information (Detail) $ in Thousands, € in Millions | Nov. 09, 2018USD ($) | Dec. 22, 2017USD ($) | Dec. 22, 2017EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) |
Schedule Of Investments [Line Items] | |||||
Income from investment in International affiliated Funds | $ 165 | ||||
ECF | |||||
Schedule Of Investments [Line Items] | |||||
Subscription agreement investment amount | $ 30,000 | € 25 | |||
Funded amount of investment in ECF using equity method | 18,600 | € 16.2 | |||
Unfunded amount of investment in ECF using equity method | 11,400 | € 8.8 | |||
Income from investment in International affiliated Funds | 163 | ||||
Unrealized gain (loss) from investment in International Affiliated Funds | (163) | ||||
Asia Pacific Cities Fund [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Subscription agreement investment amount | $ 10,000 | ||||
Funded amount of investment in ECF using equity method | 10,000 | ||||
Unrealized gain (loss) from investment in International Affiliated Funds | $ (328) |
Investment in Commercial Mort_3
Investment in Commercial Mortgage Loan - Summary of Loan Terms (Detail) - 55 Grand Avenue [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Senior Loans [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Location | Masbeth, NY |
Interest Rate | Libor + 285 bps |
Maturity Date | Mar. 29, 2024 |
Periodic Payment Terms | Interest only |
Commitment Amount | $ 34,173 |
Principal Receivable | 34,173 |
Fair Value | $ 34,173 |
Mezzanine Loan [Member] | |
Loans and Leases Receivable Disclosure [Line Items] | |
Location | Masbeth, NY |
Interest Rate | Libor + 285 bps |
Maturity Date | Mar. 29, 2024 |
Periodic Payment Terms | Interest only |
Commitment Amount | $ 14,375 |
Unfunded Amount | 2,984 |
Principal Receivable | 11,391 |
Fair Value | $ 11,391 |
Intangibles - Gross Carrying Am
Intangibles - Gross Carrying Amount and Accumulated Amortization of Intangible Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Intangible assets: | ||
Total intangible assets | $ 21,396 | $ 21,390 |
Accumulated amortization: | ||
Total accumulated amortization | (6,266) | (5,023) |
Intangible assets, net | 15,130 | 16,367 |
Intangible liabilities: | ||
Intangible liabilities, net | (5,673) | (5,759) |
In-place Lease Intangibles | ||
Intangible assets: | ||
Total intangible assets | 14,679 | 14,679 |
Accumulated amortization: | ||
Total accumulated amortization | (5,385) | (4,396) |
Intangible assets, net | 9,294 | |
Other Intangibles | ||
Intangible assets: | ||
Total intangible assets | 6,563 | 6,557 |
Accumulated amortization: | ||
Total accumulated amortization | (873) | (624) |
Intangible assets, net | 5,836 | |
Below-market Lease Intangibles | ||
Intangible liabilities: | ||
Below-market lease intangibles | (5,876) | (5,876) |
Accumulated amortization | 203 | 117 |
Intangible liabilities, net | (5,673) | (5,759) |
Above Market Leases [Member] | ||
Intangible assets: | ||
Total intangible assets | 154 | 154 |
Accumulated amortization: | ||
Total accumulated amortization | $ (8) | $ (3) |
Intangibles - Additional Inform
Intangibles - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | |
Amortization expense relating to intangible assets | $ 1.2 |
Income from amortization of intangible liabilities | $ 0.1 |
In-place Lease Intangibles | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | |
Weighted average amortization of useful life | 7 years |
Below-market Lease Intangibles | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | |
Weighted average amortization of useful life | 20 years |
Other Intangibles | |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | |
Weighted average amortization of useful life | 9 years |
Intangibles - Estimated Future
Intangibles - Estimated Future Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||
Intangible assets, net | $ 15,130 | $ 16,367 |
Intangible liabilities, net | (5,673) | (5,759) |
In-place Lease Intangibles | ||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||
Remaining 2019 | 1,676 | |
2020 | 1,467 | |
2021 | 1,227 | |
2022 | 981 | |
2023 | 652 | |
Thereafter | 3,291 | |
Intangible assets, net | 9,294 | |
Other Intangibles | ||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||
Remaining 2019 | 728 | |
2020 | 891 | |
2021 | 717 | |
2022 | 641 | |
2023 | 497 | |
Thereafter | 2,362 | |
Intangible assets, net | 5,836 | |
Below-market Lease Intangibles | ||
Schedule Of Finite Lived Intangible Assets And Liabilities [Line Items] | ||
Remaining 2019 | (257) | |
2020 | (338) | |
2021 | (328) | |
2022 | (313) | |
2023 | (312) | |
Thereafter | (4,125) | |
Intangible liabilities, net | $ (5,673) | $ (5,759) |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) | Oct. 24, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 17, 2018 |
Line of Credit Facility [Line Items] | ||||
Credit Facility | $ 115,000,000 | $ 70,000,000 | ||
Outstanding accrued interest | 200,000 | |||
Interest expense | $ 752,000 | |||
Amended Credit Agreement [Member] | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate commitments amount | $ 150,000,000 | |||
Amended Credit Agreement [Member] | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate commitments amount | $ 60,000,000 | |||
Unsecured Revolving Loans | ||||
Line of Credit Facility [Line Items] | ||||
Credit facility maturity period | 3 years | |||
Unsecured Revolving Loans | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate commitments amount | $ 60,000,000 | |||
Unsecured Revolving Loans | Adjusted LIBOR | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR rate | 1.90% | |||
Unsecured Revolving Loans | Adjusted LIBOR | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
LIBOR rate | 1.30% | |||
Unsecured Revolving Loans | Credit Agreement With Accordion Feature | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate commitments amount | $ 500,000,000 |
Other Assets and Other Liabil_3
Other Assets and Other Liabilities - Summary of Components of Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets [Abstract] | ||
Straight-line rent receivable | $ 1,529 | $ 1,119 |
Deferred financing costs, net | 703 | 771 |
Receivables | 645 | 353 |
Prepaid expenses | 397 | 288 |
Other | 42 | 53 |
Total | $ 3,316 | $ 2,584 |
Other Assets and Other Liabil_4
Other Assets and Other Liabilities - Summary of Components of Accounts Payable, Accrued Expenses, and Other Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Real estate taxes payable | $ 1,611 | $ 2,099 |
Accounts payable and accrued expenses | 1,391 | 1,420 |
Escrow funds for commercial mortgage loan | 1,095 | |
Prepaid rental income | 652 | 386 |
Tenant security deposits | 569 | 587 |
Other | 544 | 578 |
Total | $ 5,862 | $ 5,070 |
Related Party Transactions - Su
Related Party Transactions - Summary of Certain Affiliates Receive Fee and Compensation with Offering and Ongoing Management of Assets (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Class T shares | |
Related Party Transaction [Line Items] | |
Advisory fee as a percentage of NAV | 1.25% |
Class S shares | |
Related Party Transaction [Line Items] | |
Advisory fee as a percentage of NAV | 1.25% |
Class D shares | |
Related Party Transaction [Line Items] | |
Advisory fee as a percentage of NAV | 1.25% |
Class I shares | |
Related Party Transaction [Line Items] | |
Advisory fee as a percentage of NAV | 1.25% |
Class N shares | |
Related Party Transaction [Line Items] | |
Advisory fee as a percentage of NAV | 0.65% |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2019USD ($)Affiliate | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||
Number of retained affiliate of Advisor | Affiliate | 0 | |
Due to affiliates | $ 4,722,000 | $ 4,602,000 |
Percent of gross proceeds from primary portion of public offering | 10.00% | |
Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 74,000 | $ 23,000 |
Class D shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class D shares | Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 74,000 | |
Class T shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class T shares | Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 74,000 | |
Accounts Payable, Accrued Expenses and Other Liabilities | ||
Related Party Transaction [Line Items] | ||
Accrued management fees | $ 162,000 |
Related Party Transactions - Up
Related Party Transactions - Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV (Detail) | Mar. 31, 2019 |
Class T shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions as a % of Transaction Price | 3.00% |
Maximum Upfront Dealer Manager Fees as a % of Transaction Price | 0.50% |
Stockholder Servicing Fee as a % of NAV | 0.85% |
Class S shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions as a % of Transaction Price | 3.50% |
Maximum Upfront Dealer Manager Fees as a % of Transaction Price | 0.00% |
Stockholder Servicing Fee as a % of NAV | 0.85% |
Class D shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions as a % of Transaction Price | 0.00% |
Maximum Upfront Dealer Manager Fees as a % of Transaction Price | 0.00% |
Stockholder Servicing Fee as a % of NAV | 0.25% |
Class I shares | |
Related Party Transaction [Line Items] | |
Maximum Upfront Selling Commissions as a % of Transaction Price | 0.00% |
Maximum Upfront Dealer Manager Fees as a % of Transaction Price | 0.00% |
Stockholder Servicing Fee as a % of NAV | 0.00% |
Related Party Transactions - _2
Related Party Transactions - Upfront Selling Commissions and Manager Fees and Stockholder Servicing Fees Per Annum on Aggregate Outstanding NAV (Parenthetical) (Detail) - Class T shares | Mar. 31, 2019 |
Related Party Transaction [Line Items] | |
Stockholder servicing fee | 0.85% |
Advisor | |
Related Party Transaction [Line Items] | |
Stockholder servicing fee | 0.65% |
Dealer | |
Related Party Transaction [Line Items] | |
Stockholder servicing fee | 0.20% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Components of Due to Affiliates (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 4,722 | $ 4,602 |
Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | 74 | 23 |
Advanced Organization And Offering Costs | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 4,648 | $ 4,579 |
Related Party Transactions - _3
Related Party Transactions - Schedule of Components of Due to Affiliates (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Due to Dealer Manager | $ 4,722 | $ 4,602 |
Class D shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class T shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Class S shares | ||
Related Party Transaction [Line Items] | ||
Percentage of gross proceeds from sale of shares | 8.75% | |
Accrued stockholder servicing fees | ||
Related Party Transaction [Line Items] | ||
Due to Dealer Manager | $ 74 | $ 23 |
Accrued stockholder servicing fees | Class D shares | ||
Related Party Transaction [Line Items] | ||
Due to Dealer Manager | 74 | |
Accrued stockholder servicing fees | Class T shares | ||
Related Party Transaction [Line Items] | ||
Due to Dealer Manager | $ 74 |
Tenant Leases - Schedule of Fut
Tenant Leases - Schedule of Future Minimum Rents Expects to Receive for Industrial, Retail and Office Properties, Excluding Tenant Reimbursements of Operating Expenses (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Remaining 2019 | $ 11,992 |
Future Minimum Rent, 2020 | 15,871 |
Future Minimum Rent, 2021 | 15,128 |
Future Minimum Rent, 2022 | 14,272 |
Future Minimum Rent, 2023 | 12,778 |
Future Minimum Rent, Thereafter | 65,087 |
Future Minimum Rent, Total | $ 135,128 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Jan. 04, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Jan. 02, 2019 | Dec. 31, 2018 |
Equity [Line Items] | ||||||||
Number of shares, authorized to issue | 2,200,000,000 | 2,200,000,000 | ||||||
Common stock, shares authorized | 2,100,000,000 | 2,100,000,000 | ||||||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 | ||||||
Preferred stock, authorized | 100,000,000 | 100,000,000 | ||||||
Preferred stock, par value per share | $ 0.01 | $ 0.01 | ||||||
Preferred stock preference percentage | 12.00% | |||||||
Issuance of common stock, shares | 93,740 | 7,575,000 | ||||||
Number of period from commencement of offering for repurchase | 2 years | |||||||
Net asset value to be achieved | $ 1,000,000 | |||||||
Accrued Dividends | $ 2,700 | $ 2,700 | $ 2,700 | |||||
Maximum | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | ||||||
TIAA | ||||||||
Equity [Line Items] | ||||||||
Number of period shares not outstanding | 1 year | |||||||
Percentage of shares to be repurchased at transaction price | 95.00% | |||||||
Non-employee Directors | Restricted Stock Grants | ||||||||
Equity [Line Items] | ||||||||
Annual compensation fee, percentage | 25.00% | |||||||
Restricted stock, vesting period | 1 year | |||||||
Restricted stock, first annual grant date | Feb. 1, 2019 | |||||||
Non-employee Directors | Restricted Stock Grants | Accounts Payable, Accrued Expenses and Other Liabilities | ||||||||
Equity [Line Items] | ||||||||
Accrued compensation expense | $ 11,000 | |||||||
Class T shares | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |||||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock, shares issued | 49,624 | 49,624 | 0 | |||||
Common stock, shares outstanding | 49,624 | 49,624 | 0 | |||||
Class D shares | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |||||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock, shares issued | 48,606 | 48,606 | 25,839 | |||||
Common stock, shares outstanding | 48,606 | 48,606 | 25,839 | |||||
Class I shares | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |||||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock, shares issued | 207,822 | 207,822 | 186,474 | |||||
Common stock, shares outstanding | 207,822 | 207,822 | 186,474 | |||||
Class S shares | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||||||
Common stock, shares issued | 0 | 0 | ||||||
Class N shares | ||||||||
Equity [Line Items] | ||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common stock, par or stated value per share | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock, shares issued | 29,730,608 | 29,730,608 | 29,730,608 | |||||
Common stock, shares outstanding | 29,730,608 | 29,730,608 | 29,730,608 | |||||
Class N shares | TIAA | Maximum | ||||||||
Equity [Line Items] | ||||||||
Number of shares available for repurchase | 4,980,000 | |||||||
Percentage of repurchase of shares per month | 0.67% | |||||||
Percentage of repurchase of shares per quarter | 1.67% | |||||||
Class D and Class S and Class T and Class I | TIAA | Maximum | ||||||||
Equity [Line Items] | ||||||||
Percentage of repurchase plan limits per month | 2.00% | |||||||
Percentage of repurchase plan limits per quarter | 5.00% | |||||||
Series A Preferred Stock | ||||||||
Equity [Line Items] | ||||||||
Issuance of common stock, shares | 125 | |||||||
Purchase price per share | $ 1,000 |
Equity - Summary of Sales of Co
Equity - Summary of Sales of Common Stock in Connection with Initial Public Offering (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 775 | $ 73,240 |
Shares | 93,740 | 7,575,000 |
Class I shares | January 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 30,000 | |
Shares | 2,913 | |
Share Price | $ 10.30 | |
Class I shares | February 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 115,574 | |
Shares | 11,232 | |
Share Price | $ 10.29 | |
Class I shares | March 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 75,000 | |
Shares | 7,205 | |
Share Price | $ 10.41 | |
Class D shares | February 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 1,755 | |
Shares | 171 | |
Share Price | $ 10.28 | |
Class D shares | March 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 235,000 | |
Shares | 22,596 | |
Share Price | $ 10.40 | |
Class T shares | January 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 24,272 | |
Shares | 2,359 | |
Share Price | $ 10.29 | |
Class T shares | February 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 390,007 | |
Shares | 37,939 | |
Share Price | $ 10.28 | |
Class T shares | March 2019 | ||
Schedule Of Common Stock [Line Items] | ||
Amounts | $ 97,087 | |
Shares | 9,327 | |
Share Price | $ 10.41 |
Equity - Summary of Declared Di
Equity - Summary of Declared Distributions (Detail) - USD ($) | Mar. 31, 2019 | Jan. 29, 2019 | Dec. 31, 2018 |
Distribution [Line Items] | |||
Total Distributions Declared | $ 2,666,000 | $ 2,484,000 | |
Class I shares | |||
Distribution [Line Items] | |||
Net Distribution | $ 0.07 | ||
Total Distributions Declared | $ 13,640 | ||
Class D shares | |||
Distribution [Line Items] | |||
Net Distribution | $ 0.07 | ||
Total Distributions Declared | $ 1,760 | ||
Class N shares | |||
Distribution [Line Items] | |||
Net Distribution | $ 0.08 | ||
Total Distributions Declared | $ 2,468,230 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 7 |
Segment Reporting - Summary of
Segment Reporting - Summary of Total Assets by Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 426,877 | $ 376,846 |
International Affiliated Funds | ||
Segment Reporting Information [Line Items] | ||
Total assets | 28,051 | 28,594 |
Commercial Mortgage Loan Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 45,134 | |
Operating Segments | Multifamily | ||
Segment Reporting Information [Line Items] | ||
Total assets | 96,268 | 97,448 |
Operating Segments | Industrial | ||
Segment Reporting Information [Line Items] | ||
Total assets | 89,076 | 89,963 |
Operating Segments | Office | ||
Segment Reporting Information [Line Items] | ||
Total assets | 34,170 | 34,134 |
Operating Segments | Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | 90,319 | 90,881 |
Real Estate-Related Securities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 33,952 | 29,228 |
Other (Corporate) | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 9,908 | $ 6,598 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Financial Results by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 6,766 | $ 2,822 |
Expenses: | ||
Rental property operating expenses | 2,286 | 966 |
Total expenses | 2,286 | 966 |
Realized and unrealized income from real estate-related securities | 4,986 | 388 |
Income (loss) from equity investment in unconsolidated international affiliated funds | (165) | |
Segment net operating income | 9,301 | 2,244 |
Depreciation and amortization | 3,387 | 1,773 |
General and administrative expenses | 958 | 1,691 |
Advisory fee due to affiliate | 467 | 295 |
Interest Income | 11 | |
Net loss | (1,515) | |
Interest expense | (752) | |
Net income (loss) | 3,748 | (1,515) |
Net income attributable to series A preferred stock | 4 | |
Net income attributable to NREIT stockholders | 3,744 | (1,515) |
International Affiliated Funds | ||
Expenses: | ||
Income (loss) from equity investment in unconsolidated international affiliated funds | (165) | |
Segment net operating income | (165) | |
Commercial Mortgage Loan Segment | ||
Revenues: | ||
Total revenues | 21 | |
Expenses: | ||
Segment net operating income | 42 | |
Rental Revenue | ||
Revenues: | ||
Total revenues | 6,745 | 2,822 |
Commercial Mortgage Loan | ||
Revenues: | ||
Total revenues | 21 | |
Commercial Mortgage Loan | Commercial Mortgage Loan Segment | ||
Revenues: | ||
Total revenues | 21 | |
Operating Segments | Multifamily | ||
Revenues: | ||
Total revenues | 2,360 | 1,295 |
Expenses: | ||
Rental property operating expenses | 1,085 | 580 |
Total expenses | 1,085 | 580 |
Segment net operating income | 1,275 | 715 |
Depreciation and amortization | 1,201 | 851 |
Operating Segments | Industrial | ||
Revenues: | ||
Total revenues | 1,931 | 1,527 |
Expenses: | ||
Rental property operating expenses | 575 | 386 |
Total expenses | 575 | 368 |
Segment net operating income | 1,356 | 1,141 |
Depreciation and amortization | 1,117 | 922 |
Operating Segments | Office | ||
Revenues: | ||
Total revenues | 810 | |
Expenses: | ||
Rental property operating expenses | 255 | |
Total expenses | 255 | |
Segment net operating income | 555 | |
Depreciation and amortization | 280 | |
Operating Segments | Retail | ||
Revenues: | ||
Total revenues | 1,644 | |
Expenses: | ||
Rental property operating expenses | 371 | |
Total expenses | 371 | |
Segment net operating income | 1,273 | |
Depreciation and amortization | 789 | |
Operating Segments | Rental Revenue | Multifamily | ||
Revenues: | ||
Total revenues | 2,360 | 1,295 |
Operating Segments | Rental Revenue | Industrial | ||
Revenues: | ||
Total revenues | 1,931 | 1,527 |
Operating Segments | Rental Revenue | Office | ||
Revenues: | ||
Total revenues | 810 | |
Operating Segments | Rental Revenue | Retail | ||
Revenues: | ||
Total revenues | 1,644 | |
Real Estate-Related Securities | ||
Expenses: | ||
Realized and unrealized income from real estate-related securities | 4,986 | 388 |
Segment net operating income | $ 4,986 | $ 388 |
Subsequent Event - Additional i
Subsequent Event - Additional information (Detail) $ / shares in Units, $ in Thousands | May 03, 2019USD ($)ft² | May 01, 2019USD ($)$ / sharesshares | Apr. 29, 2019USD ($) | Apr. 01, 2019USD ($)$ / sharesshares | Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($)shares |
Subsequent Event [Line Items] | ||||||
Total value of shares | $ 775 | $ 73,240 | ||||
Issuance of common stock, shares | shares | 93,740 | 7,575,000 | ||||
Borrowings from credit facility | $ 45,000 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Distributions paid | $ 2,700 | |||||
Total value of shares | $ 1,100 | $ 2,500 | ||||
Subsequent Event | East Sego Lily [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Total purchase price | $ 44,600 | |||||
Area of real estate property | ft² | 148,467 | |||||
Weighted-average remaining lease term , property | 7 years | |||||
Borrowings from credit facility | $ 33,000 | |||||
Subsequent Event | Date One [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend record date | Jan. 31, 2019 | |||||
Subsequent Event | Date Two [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend record date | Feb. 28, 2019 | |||||
Subsequent Event | Date Three [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividend record date | Mar. 31, 2019 | |||||
Subsequent Event | Class T shares | ||||||
Subsequent Event [Line Items] | ||||||
Issuance of common stock, shares | shares | 70,321 | 33,457 | ||||
Purchase price per share | $ / shares | $ 10.42 | $ 10.33 | ||||
Subsequent Event | Class I shares | ||||||
Subsequent Event [Line Items] | ||||||
Issuance of common stock, shares | shares | 4,165 | 183,014 | ||||
Purchase price per share | $ / shares | $ 10.52 | $ 10.45 | ||||
Subsequent Event | Class D shares | ||||||
Subsequent Event [Line Items] | ||||||
Issuance of common stock, shares | shares | 30,720 | 19,157 | ||||
Purchase price per share | $ / shares | $ 10.50 | $ 10.44 |