10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-34995

Preferred Apartment Communities, Inc.

(Exact name of registrant as specified in its charter)

Maryland	27-1712193
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3284 Northside Parkway NW, Suite 150, Atlanta, GA 30327

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (770) 818-4100

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Sec. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨   Accelerated filer x   Non-accelerated filer ¨   Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No  x

The number of shares outstanding of the registrant’s Common Stock, as of October 31, 2017 was 36,692,002.

PART I - FINANCIAL INFORMATION
INDEX
Item 1.	Financial Statements	Page No.
	Consolidated Balance Sheets (unaudited) – as of September 30, 2017 and December 31, 2016	1
	Consolidated Statements of Operations (unaudited) – Three Months and Nine Months Ended September 30, 2017 and 2016	2
	Consolidated Statements of Stockholders' Equity (unaudited) – Nine Months Ended September 30, 2017 and 2016	3
	Consolidated Statements of Cash Flows (unaudited) – Nine Months Ended September 30, 2017 and 2016	5
	Notes to Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	73
Item 4.	Controls and Procedures	74
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	74
Item 1A.	Risk Factors	74
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	74
Item 3.	Defaults Upon Senior Securities	74
Item 4.	Mine Safety Disclosures	74
Item 5.	Other Information	75
Item 6.	Exhibits	75
SIGNATURES		76

Preferred Apartment Communities, Inc.
Consolidated Balance Sheets
(Unaudited)
	September 30, 2017			December 31, 2016
Assets
Real estate
Land	$	345,110,008		$	299,547,501
Building and improvements	1,802,229,802			1,513,293,760
Tenant improvements	45,208,781			23,642,361
Furniture, fixtures, and equipment	183,879,719			126,357,742
Construction in progress	11,946,666			2,645,634
Gross real estate	2,388,374,976			1,965,486,998
Less: accumulated depreciation	(147,799,077		)	(103,814,894		)
Net real estate	2,240,575,899			1,861,672,104
Real estate loans, net of deferred fee income	243,974,963			201,855,604
Real estate loans to related parties, net	165,229,952			130,905,464
Total real estate and real estate loan investments, net	2,649,780,814			2,194,433,172
Cash and cash equivalents	17,054,190			12,321,787
Restricted cash	50,645,432			55,392,984
Notes receivable	18,287,857			15,499,699
Note receivable and revolving line of credit due from related party	24,063,639			22,115,976
Accrued interest receivable on real estate loans	27,726,412			21,894,549
Acquired intangible assets, net of amortization of $64,043,523 and $46,396,254	86,295,192			79,156,400
Deferred loan costs on Revolving Line of Credit, net of amortization of $960,072 and $422,873	1,548,798			1,768,779
Deferred offering costs	6,025,155			2,677,023
Tenant lease inducements, net of amortization of $251,941 and $14,904	11,914,367			261,492
Tenant receivables (net of allowance of $488,953 and $663,912) and other assets	34,377,412			15,310,741
Total assets	$	2,927,719,268		$	2,420,832,602
Liabilities and equity
Liabilities
Mortgage notes payable, net of deferred loan costs of $26,994,828 and $22,007,641	$	1,569,569,425		$	1,305,870,471
Revolving line of credit	43,000,000			127,500,000
Term note payable, net of deferred loan costs of $5,806 and $40,095	10,994,194			10,959,905
Real estate loan participation obligation	17,877,914			20,761,819
Deferred revenue	23,361,489			—
Accounts payable and accrued expenses	34,298,797			20,814,910
Accrued interest payable	4,099,239			3,541,640
Dividends and partnership distributions payable	13,729,774			10,159,629
Acquired below market lease intangibles, net of amortization of $6,858,914 and $3,771,393	31,691,040			29,774,033
Security deposits and other liabilities	8,946,216			6,189,033
Total liabilities	1,757,568,088			1,535,571,440
Commitments and contingencies (Note 11)
Equity
Stockholders' equity
Series A Redeemable Preferred Stock, $0.01 par value per share; 3,050,000
shares authorized; 1,141,331 and 924,855 shares issued; 1,115,616 and 914,422
shares outstanding at September 30, 2017 and December 31, 2016, respectively	11,156			9,144
Series M Redeemable Preferred Stock, $0.01 par value per share; 500,000
shares authorized; 12,396 and 0 shares issued and outstanding
at September 30, 2017 and December 31, 2016, respectively	124			—
Common Stock, $0.01 par value per share; 400,066,666 shares authorized;
35,597,744 and 26,498,192 shares issued and outstanding at
September 30, 2017 and December 31, 2016, respectively	355,977			264,982
Additional paid-in capital	1,157,030,161			906,737,470
Accumulated earnings (deficit)	9,079,810			(23,231,643		)
Total stockholders' equity	1,166,477,228			883,779,953
Non-controlling interest	3,673,952			1,481,209
Total equity	1,170,151,180			885,261,162
Total liabilities and equity	$	2,927,719,268		$	2,420,832,602

The accompanying notes are an integral part of these consolidated financial statements.

1

Preferred Apartment Communities, Inc.
Consolidated Statements of Operations
(Unaudited)
	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
Revenues:
Rental revenues	$	50,072,135		$	37,319,207		$	143,676,962		$	96,541,544
Other property revenues	9,334,939			5,221,887			26,592,295			13,290,330
Interest income on loans and notes receivable	9,673,536			7,194,742			26,111,674			20,984,625
Interest income from related parties	5,819,589			3,801,501			15,971,516			10,310,563
Total revenues	74,900,199			53,537,337			212,352,447			141,127,062
Operating expenses:
Property operating and maintenance	7,900,753			5,504,848			21,637,551			13,883,133
Property salary and benefits (including reimbursements of $3,199,836,
$2,790,335, $8,995,087 and $7,670,403 to related party)	3,402,623			2,808,402			9,649,843			7,688,470
Property management fees (including $1,576,118, $1,444,518,
$4,582,037, and $3,656,209 to related parties)	2,053,446			1,724,411			6,016,003			4,308,841
Real estate taxes	7,705,706			4,789,085			23,289,784			15,457,134
General and administrative	1,701,574			1,144,256			4,861,083			3,255,728
Equity compensation to directors and executives	863,412			638,414			2,607,667			1,867,706
Depreciation and amortization	28,903,770			21,664,363			82,186,960			54,981,064
Acquisition and pursuit costs (including $0, $89,631,
$0 and $141,548 to related party)	—			1,357,537			14,002			6,885,864
Asset management fees to related party	5,147,606			3,759,084			14,524,517			9,484,161
Insurance, professional fees and other expenses	1,156,056			1,338,343			3,820,010			4,216,838
Total operating expenses	58,834,946			44,728,743			168,607,420			122,028,939
Contingent asset management and general and administrative expense fees	(655,944		)	(736,960		)	(1,001,864		)	(1,458,245		)
Net operating expenses	58,179,002			43,991,783			167,605,556			120,570,694
Operating income	16,721,197			9,545,554			44,746,891			20,556,368
Interest expense	16,678,418			12,234,174			48,085,016			30,688,505
Loss on extinguishment of debt	—			—			888,428			—
Net income (loss) before gain on sale of real estate	42,779			(2,688,620		)	(4,226,553		)	(10,132,137		)
Gain on sale of real estate, net of disposition expenses	—			—			37,635,014			4,271,506
Net income (loss)	42,779			(2,688,620		)	33,408,461			(5,860,631		)
Consolidated net (income) loss attributable to non-controlling interests	(1,119		)	86,484			(1,097,008		)	175,045
Net income (loss) attributable to the Company	41,660			(2,602,136		)	32,311,453			(5,685,586		)
Dividends declared to preferred stockholders	(16,420,996		)	(11,015,706		)	(46,042,181		)	(28,341,723		)
Earnings attributable to unvested restricted stock	(4,302		)	(6,159		)	(11,743		)	(12,434		)
Net loss attributable to common stockholders	$	(16,383,638	)	$	(13,624,001	)	$	(13,742,471	)	$	(34,039,743	)
Net loss per share of Common Stock available
to common stockholders, basic and diluted	$	(0.49	)	$	(0.56	)	$	(0.46	)	$	(1.45	)
Dividends per share declared on Common Stock	$	0.235		$	0.2025		$	0.69		$	0.5975
Weighted average number of shares of Common Stock outstanding,
Basic and diluted	33,539,920			24,340,791			30,147,497			23,552,951

The accompanying notes are an integral part of these consolidated financial statements.

2

Preferred Apartment Communities, Inc.
Consolidated Statements of Stockholders' Equity, continued
For the nine-month periods ended September 30, 2017 and 2016
(Unaudited)
	Series A and Series M Redeemable Preferred Stock			Common Stock		Additional Paid in Capital			Accumulated Earnings(Deficit)			Total Stockholders' Equity			Non-Controlling Interest			Total Equity
Balance at January 1, 2017	$	9,144		$	264,982	$	906,737,470		$	(23,231,643	)	$	883,779,953		$	1,481,209		$	885,261,162
Issuance of Units	2,289			—		228,248,476			—			228,250,765			—			228,250,765
Redemptions of Series A Preferred Stock	(153		)	5,922		(4,506,174		)	—			(4,500,405		)	—			(4,500,405		)
Issuance of Common Stock	—			49,067		76,755,412			—			76,804,479			—			76,804,479
Exercises of warrants	—			33,875		43,343,382			—			43,377,257			—			43,377,257
Syndication and offering costs	—			—		(26,725,432		)	—			(26,725,432		)	—			(26,725,432		)
Equity compensation to executives and directors	—			—		357,300			—			357,300			—			357,300
Vesting of restricted stock	—			216		(216		)	—			—			—			—
Conversion of Class A Units to Common Stock	—			1,915		1,676,579			—			1,678,494			(1,678,494		)	—
Current period amortization of Class B Units	—			—		—			—			—			2,250,367			2,250,367
Net income	—			—		—			32,311,453			32,311,453			1,097,008			33,408,461
Reallocation adjustment to non-controlling interests	—			—		(1,146,165		)	—			(1,146,165		)	1,146,165			—
Distributions to non-controlling interests	—			—		—			—			—			(622,303		)	(622,303		)
Dividends to series A preferred stockholders
($5.00 per share per month)	—			—		(45,791,950		)	—			(45,791,950		)	—			(45,791,950		)
Dividends to mShares preferred stockholders	—			—		(250,231		)	—			(250,231		)	—			(250,231		)
Dividends to common stockholders ($0.69 per share)	—			—		(21,668,290		)	—			(21,668,290		)	—			(21,668,290		)
Balance at September 30, 2017	$	11,280		$	355,977	$	1,157,030,161		$	9,079,810		$	1,166,477,228		$	3,673,952		$	1,170,151,180

The accompanying notes are an integral part of these consolidated financial statements.

3

Preferred Apartment Communities, Inc.
Consolidated Statements of Stockholders' Equity
For the nine-month periods ended September 30, 2017 and 2016
(Unaudited)
	Series A Redeemable Preferred Stock			Common Stock		Additional Paid in Capital			Accumulated (Deficit)			Total Stockholders' Equity			Non-Controlling Interest			Total Equity
Balance at January 1, 2016	$	4,830		$	227,616	$	536,450,877		$	(13,698,520	)	$	522,984,803		$	2,468,987		$	525,453,790
Issuance of Units	3,233			—		322,937,157			—			322,940,390			—			322,940,390
Redemptions of Series A Preferred Stock	(43		)	588		(3,020,673		)	—			(3,020,128		)	—			(3,020,128		)
Issuance of common stock	—			1,973		2,858,311			—			2,860,284			—			2,860,284
Exercises of Warrants	—			15,163		16,181,146			—			16,196,309			—			16,196,309
Syndication and offering costs	—			—		(38,220,013		)	—			(38,220,013		)	—			(38,220,013		)
Equity compensation to executives and directors	—			56		352,472			—			352,528			—			352,528
Vesting of restricted stock	—			228		(228		)	—			—			—			—
Conversion of Class A Units to Common Stock	—			956		647,642			—			648,598			(648,598		)	—
Current period amortization of Class B Units	—			—		—			—			—			1,542,182			1,542,182
Net loss	—			—		—			(5,685,586		)	(5,685,586		)	(175,045		)	(5,860,631		)
Class A Units issued for property acquisition	—			—		—			—			—			5,072,659			5,072,659
Minority interest in joint venture	—			—		—			—			—			450,000			450,000
Reallocation adjustment to non-controlling interests	—			—		6,914,403			—			6,914,403			(6,914,403		)	—
Distributions to non-controlling interests	—			—		—			—			—			(476,293		)	(476,293		)
Dividends to Series A preferred stockholders
($5.00 per share per month)	—			—		(28,341,723		)	—			(28,341,723		)	—			(28,341,723		)
Dividends to common stockholders ($0.5975 per share)	—			—		(14,200,114		)	—			(14,200,114		)	—			(14,200,114		)
Balance at September 30, 2016	$	8,020		$	246,580	$	802,559,257		$	(19,384,106	)	$	783,429,751		$	1,319,489		$	784,749,240

The accompanying notes are an integral part of these consolidated financial statements.

4

Preferred Apartment Communities, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
	Nine months ended September 30,
	2017			2016
Operating activities:
Net income (loss)	$	33,408,461		$	(5,860,631	)
Reconciliation of net income (loss) to net cash provided by operating activities:
Depreciation expense	60,845,325			39,387,351
Amortization expense	21,341,635			15,593,713
Amortization of above and below market leases	(2,394,233		)	(1,118,329		)
Deferred revenues and fee income amortization	(1,526,037		)	(725,913		)
Amortization of market discount on assumed debt and lease incentives	364,439			—
Deferred loan cost amortization	3,906,753			2,431,809
(Increase) decrease in accrued interest income on real estate loans	(5,831,863		)	(3,374,473		)
Equity compensation to executives and directors	2,607,667			1,867,706
Gain on sale of real estate	(37,635,014		)	(4,271,506		)
Loss on extinguishment of debt	888,428			—
Other	189,400			56,582
Changes in operating assets and liabilities:
(Increase) in tenant receivables and other assets	(7,818,433		)	(1,230,183		)
(Increase) in tenant lease incentives	(11,889,912		)	—
Increase in accounts payable and accrued expenses	11,640,777			8,843,052
Increase in accrued interest and other liabilities	2,349,282			2,258,193
Net cash provided by operating activities	70,446,675			53,857,371
Investing activities:
Investments in real estate loans	(119,225,599		)	(123,427,150		)
Repayments of real estate loans	42,495,393			36,672,482
Notes receivable issued	(6,249,749		)	(8,730,166		)
Notes receivable repaid	3,506,767			12,895,101
Note receivable issued to and draws on line of credit by related party	(25,740,403		)	(25,821,121		)
Repayments of line of credit by related party	23,468,017			23,791,676
Origination fees received on real estate loans	2,592,766			2,695,961
Origination fees paid to Manager on real estate loans	(1,296,383		)	(1,374,828		)
Acquisition of properties	(455,619,414		)	(740,597,973		)
Disposition of properties, net	118,237,697			10,606,386
Additions to real estate assets - improvements	(12,200,993		)	(7,613,065		)
Deposits refunded (paid) on acquisitions	2,428,908			(3,118,370		)
Decrease (increase) in restricted cash	5,389,992			(9,070,073		)
Net cash used in investing activities	(422,213,001		)	(833,091,140		)
Financing activities:
Proceeds from mortgage notes payable	332,427,500			479,494,000
Repayments of mortgage notes payable	(121,065,587		)	(7,748,011		)
Payments for deposits and other mortgage loan costs	(11,579,899		)	(15,400,974		)
Payments for mortgage prepayment costs	(817,313		)	—
Proceeds from real estate loan participants	224,188			5,575,484
Payments to real estate loan participants	(3,466,500		)	—
Proceeds from lines of credit	190,000,000			357,136,020
Payments on lines of credit	(274,500,000		)	(309,636,020		)
Proceeds from Term Loan	—			46,000,000
Repayment of the Term Loan	—			(35,000,000		)
Proceeds from sales of Units, net of offering costs and redemptions	201,799,430			287,830,612
Proceeds from sales of Common Stock	74,213,118			2,810,156
Proceeds from exercises of Warrants	39,430,314			19,831,294
Common Stock dividends paid	(19,250,649		)	(13,523,075		)
Preferred stock dividends paid	(44,889,676		)	(26,735,870		)
Distributions to non-controlling interests	(605,479		)	(350,079		)
Payments for deferred offering costs	(5,420,718		)	(3,476,989		)
Contribution from non-controlling interests	—			450,000
Net cash provided by financing activities	356,498,729			787,256,548
Net increase in cash and cash equivalents	4,732,403			8,022,779
Cash and cash equivalents, beginning of period	12,321,787			2,439,605
Cash and cash equivalents, end of period	$	17,054,190		$	10,462,384

The accompanying notes are an integral part of these consolidated financial statements.

5

Preferred Apartment Communities, Inc.
Consolidated Statements of Cash Flows - continued
(Unaudited)
	Nine months ended September 30,
	2017		2016
Supplemental cash flow information:
Cash paid for interest	$	43,493,263	$	26,569,933
Supplemental disclosure of non-cash activities:
Accrued capital expenditures	$	2,531,863	$	1,125,774
Writeoff of fully depreciated or amortized assets and liabilities	$	620,201	$	149,288
Writeoff of fully amortized deferred loan costs	$	—	$	826,359
Writeoff of assets due to hurricane damages	$	7,939,095	$	—
Lessee-funded tenant improvements, capitalized as landlord assets	$	23,818,305	$	—
Dividends payable - Common Stock	$	8,158,256	$	4,992,038
Dividends payable - Series A Preferred Stock	$	5,481,080	$	3,885,123
Dividends payable - mShares Preferred Stock	$	90,438	$	—
Dividends declared but not yet due and payable	$	33,094	$	—
Partnership distributions payable to non-controlling interests	$	211,781	$	179,449
Accrued and payable deferred offering costs	$	479,441	$	690,643
Offering cost reimbursement to related party	$	324,638	$	482,871
Reclass of offering costs from deferred asset to equity	$	2,193,139	$	6,080,235
Fair value of OP units issued for property	$	—	$	5,072,659
Extinguishment of land loan for property	$	—	$	12,500,000
Proceeds of like-kind exchange funds for dispositions	$	31,288,252	$	—
Use of like-kind exchange funds for acquisitions	$	31,288,252	$	—
Fair value issuances of equity compensation	$	4,088,499	$	3,152,312
Mortgage loans assumed on acquisitions	$	57,324,227	$	43,103,275
Noncash repayment of mortgages through refinance	$	65,000,000	$	—

The accompanying notes are an integral part of these consolidated financial statements.

6

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements

September 30, 2017

1. Organization and Basis of Presentation

Preferred Apartment Communities, Inc. was formed as a Maryland corporation on September 18, 2009, and elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, effective with its tax year ended December 31, 2011. Unless the context otherwise requires, references to the "Company", "we", "us", or "our" refer to Preferred Apartment Communities, Inc., together with its consolidated subsidiaries, including Preferred Apartment Communities Operating Partnership, L.P., or the Operating Partnership. The Company was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of its business strategy, the Company may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, the Company also may acquire or originate senior mortgage loans, subordinate loans or real estate loan investments secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest a lesser portion of its assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loan investments secured by interests in other income-producing property types, or membership or partnership interests in other income-producing property types as determined by its Manager (as defined below) as appropriate for the Company. The Company is externally managed and advised by Preferred Apartment Advisors, LLC, or its Manager, a Delaware limited liability company and related party (see Note 6).

As of September 30, 2017, the Company had 35,597,744 shares of common stock, par value $0.01 per share, or Common Stock, issued and outstanding and was the approximate 97.5% owner of the Operating Partnership at that date. The number of partnership units not owned by the Company totaled 901,195 at September 30, 2017 and represented Class A OP Units of the Operating Partnership, or Class A OP Units. The Class A OP Units are convertible at any time at the option of the holder into the Operating Partnership's choice of either cash or Common Stock. In the case of cash, the value is determined based upon the trailing 20-day volume weighted average price of the Company's Common Stock.

The Company controls the Operating Partnership through its sole general partner interest and conducts substantially all of its business through the Operating Partnership. The Company has determined the Operating Partnership is a variable interest entity, or VIE, of which the Company is the primary beneficiary. New Market Properties, LLC owns and conducts the business of our portfolio of grocery-anchored shopping centers. Preferred Office Properties, LLC owns and conducts the business of our portfolio of office buildings. Preferred Campus Communities, LLC owns and conducts the business of our portfolio of off-campus student housing communities. Each of these entities are wholly-owned subsidiaries of the Operating Partnership.

Basis of Presentation

These consolidated financial statements include all of the accounts of the Company and the Operating Partnership presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. All significant intercompany transactions have been eliminated in consolidation. Certain adjustments have been made consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair presentation of the Company's financial condition and results of operations. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The year end condensed balance sheet data was derived from audited financial statements, but does not include all the disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 1, 2017.

2. Summary of Significant Accounting Policies

Acquisitions and Impairments of Real Estate Assets

When the Company acquires property, it allocates the aggregate purchase price to tangible assets, consisting of land, building, site improvements and furniture, fixtures and equipment, and identifiable intangible assets, consisting of the value of in- place leases

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

and above-market and below-market leases as described further below, using estimated fair values of each component at the time of purchase. The Company follows the guidance as outlined in ASC 805-10, Business Combinations, as amended by ASU-2017-01.

Tangible assets

The fair values of land acquired is calculated under the highest and best use model, using formal appraisals and comparable land sales, among other inputs. Building value is determined by valuing the property on a “go-dark” basis as if it were vacant, and also using a replacement cost approach, which two results are then reconciled. Site improvements are valued using replacement cost. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. The values of furniture, fixtures, and equipment are estimated by calculating their replacement cost and reducing that value by factors based upon estimates of their remaining useful lives.

Identifiable intangible assets

In-place leases

Multifamily communities and student housing properties

The fair value of in-place leases are estimated by calculating the estimated time to fill a hypothetically empty apartment complex to its stabilization level (estimated to be 93% occupancy) based on historical observed move-in rates for each property, and which approximate market rates. Carrying costs during these hypothetical expected lease-up periods are estimated, considering current market conditions and include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates. The intangible assets are calculated by estimating the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. The acquired in-place lease values are amortized to operating expense over the average remaining non-cancelable term of the respective in-place leases.

Grocery-anchored shopping centers and office buildings

The fair value of in-place leases represent the value of direct costs associated with leasing, including opportunity costs associated with lost rentals that are avoided by acquiring in-place leases. Direct costs associated with obtaining a new tenant include commissions, legal and marketing costs, incentives such as tenant improvement allowances and other direct costs. Such direct costs are estimated based on our consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the estimated market lease rates and the estimated absorption period of the space. These direct costs and opportunity costs are included in the accompanying consolidated balance sheets as acquired intangible assets and are amortized to expense over the remaining term of the respective leases.

Above-market and below-market lease values

Multifamily communities and student housing properties

These values are usually not significant or are not applicable for these properties.

Grocery-anchored shopping centers and office buildings

The values of above-market and below-market leases are developed by comparing the Company's estimate of the average market rents and expense reimbursements to the average contract rent at the property acquisition date. The amount by which contract rent and expense reimbursements exceed estimated market rent are summed for each individual lease and discounted for a singular aggregate above-market lease intangible asset for the property. The amount by which estimated market rent exceeds contract rent and expense reimbursements are summed for each individual lease and discounted for a singular aggregate below-market lease intangible liability. The above-market or below-market lease values are recorded as a reduction or increase, respectively, to rental revenue over the remaining noncancelable term of the respective leases, plus any below-market probable renewal options.

Impairment assessment

The Company evaluates its tangible and identifiable intangible real estate assets for impairment when events such as declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total

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Notes to Consolidated Financial Statements – (continued)

September 30, 2017

undiscounted cash flows of the asset group, including proceeds from disposition, are compared to the net book value of the asset group. If this test indicates that impairment exists, an impairment loss is recorded in earnings equal to the shortage of the book value to fair value, calculated as the discounted net cash flows of the asset group.

Revenue Recognition

Multifamily communities and student housing properties

Rental revenue is recognized when earned from residents of the Company's multifamily communities, which is over the terms of rental agreements, typically of 12 months’ duration. The Company evaluates the collectability of amounts due from residents and maintains an allowance for doubtful accounts for estimated losses resulting from the inability of residents to make required payments then due under lease agreements. The balance of amounts due from residents are generally deemed uncollectible 30 days beyond the due date, at which point they are fully reserved.

Grocery-anchored shopping centers and office buildings

Rental revenue from tenants' operating leases in the Company's grocery-anchored shopping centers and office buildings is recognized on a straight-line basis over the term of the lease. Revenue based on "percentage rent" provisions that provide for additional rents that become due upon achievement of specified sales revenue targets (as specified in each lease agreement) is recognized only after the tenant exceeds its specified sales revenue target. Revenue from reimbursements of the tenants' share of real estate taxes, insurance and common area maintenance, or CAM, costs are recognized in the period in which the related expenses are incurred. Lease termination revenues are recognized ratably over the revised remaining lease term after giving effect to the termination notice or when tenant vacates and the Company has no further obligations under the lease. Rents and tenant reimbursements collected in advance are recorded as prepaid rent within other liabilities in the accompanying consolidated balance sheets. The Company estimates the collectability of the tenant receivable related to rental and reimbursement billings due from tenants and straight-line rent receivables, which represent the cumulative amount of future adjustments necessary to present rental revenue on a straight-line basis, by taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. The Company may provide retail and office building tenants an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of rental revenue. Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease. When the Company is the owner of the leasehold improvements, recognition of rental revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements. For our Preferred Office Properties, if the improvement is deemed to be a “landlord asset,” and the tenant funded the tenant improvements, the cost is amortized over the term of the underlying lease as rental revenues. In order to qualify as a landlord asset, the specifics of the tenant’s assets are reviewed, including the Company's approval of the tenant’s detailed expenditures, whether such assets may be usable by other future tenants, whether the Company has consent to alter or remove the assets from the premises and generally remain the Company's property at the end of the lease.

Acquisition Costs

Through December 31, 2016, the Company expensed property acquisition costs as incurred, which include costs such as due diligence, legal, certain accounting, environmental and consulting, when the acquisition constituted a business combination. As described below in the section entitled New Accounting Pronouncements, Accounting Standards Update 2017-01 was adopted by the Company effective January 1, 2017, which changed the definition of a business. Under this new guidance, most property acquisitions made by the Company will fall within the category of acquired assets rather than acquired businesses. This distinction will cause the Company to capitalize its costs for acquisitions (including, effective July 1, 2017, a 1% acquisition fee), allocate them to the fair value of acquired assets and liabilities and amortize these costs over the remaining useful lives of those assets and liabilities.

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a single comprehensive revenue recognition model for contracts with customers (excluding certain contracts, such as lease contracts) to improve comparability within industries. ASU 2014-09 requires an entity to recognize revenue to reflect the transfer of goods or services to customers at an amount the entity expects to be paid in exchange for those goods and services and provide enhanced disclosures, all to provide more comprehensive guidance for transactions such as service revenue and contract modifications. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018, when effective. In addition, the evaluation of non-lease components under ASU 2014-09 will not be effective until Accounting Standards Update No. 2016-02, Leases (Topic 842), ("ASU 2016-02") becomes effective (see further discussion below), which will be first quarter of 2019 for the Company. The Company has determined that approximately 90% of its revenues from its New Market Properties and office building segments are derived from either long-term leases with its tenants or reimbursement of property tax and insurance expenses, which are excluded from the scope of the ASU 2014-09. Of the remaining 10% of New Market Properties and office building segment revenues, the majority is comprised of common area maintenance (“CAM”) reimbursements, which is a non-lease component under ASU 2014-09 and therefore within its scope of adoption. Based on management's assessment to date, the Company does not expect the timing of the recognition of reimbursement revenue and other miscellaneous income to change as a result of the new guidance, though certain classifications will change between rental revenue and tenant reimbursements. Similarly, the Company's multifamily communities segment derives the majority of its revenues from rental operations, to which this standard is not applicable. However, the Company does provide non-rental services to its residents related to ancillary services and is currently evaluating the various revenue streams to identify any potential sources which may require bifurcation and reclassification. The Company is continuing to evaluate the impact the adoption of ASU 2014-09 will have on its results of operations and financial condition.

In January 2016, the FASB issued Accounting Standards Update 2016-01 ("ASU 2016-01"), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The new standard's applicable provisions to the Company include an elimination of the disclosure requirement of the significant inputs and assumptions underlying the fair value calculations of its financial instruments which are carried at amortized cost. The standard is effective on January 1, 2018, and early adoption is not permitted. The adoption of ASU 2016-01 will not impact the Company's results of operations or financial condition.

In February 2016, the FASB issued Accounting Standards Update 2016-02 ("ASU 2016-02"), Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and supersedes the previous standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company anticipates adopting ASC 842 utilizing the modified retrospective method and is continuing to evaluate the impacts this standard will have on its results of operations and financial condition.

In June 2016, the FASB issued Accounting Standards Update 2016-13 ("ASU 2016-13"), Financial Instruments—Credit Losses

(Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial instruments carried at amortized cost to be presented at the net amount expected to be collected, utilizing a valuation account which reflects the cumulative net adjustments from the gross amortized cost value. Under existing GAAP, entities would not record a valuation allowance until a loss was probable of occurring. The standard is effective for the Company on January 1, 2020. The Company is currently evaluating methods of deriving initial valuation accounts to be applied to its real estate loan portfolio. The Company is continuing to evaluate the pending guidance but does not believe the adoption of ASU 2016-13 will have a material impact on its results of operations or financial condition, since the Company has not yet experienced a credit loss related to any of its financial instruments.

In August 2016, the FASB issued Accounting Standards Update 2016-15 ("ASU 2016-15"), Statement of Cash Flows—(Topic 326): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies or establishes guidance for the presentation of various cash transactions on the statement of cash flows. The portion of the guidance applicable to the Company's business activities include the requirement that cash payments for debt prepayment or debt extinguishment costs be presented as cash out flows for financing activities. The standard is effective for the Company on January 1, 2018. The adoption of ASU 2016-15 will not impact the Company’s consolidated financial statements, since its current policy is to classify such costs as cash out flows for financing activities. 

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

In November 2016, the FASB issued Accounting Standards Update 2016-18 ("ASU 2016-18"), Statement of Cash Flows—(Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company plans to adopt ASU 2016-18 on January 1, 2018. The Company currently reports changes in restricted cash within the investing activities section of its consolidated statements of cash flows and does not expect the adoption of ASU 2016-18 to impact its results of operations and financial condition.

In January 2017, the FASB issued Accounting Standards Update 2017-01 ("ASU 2017-01"), Business Combinations - (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted ASU 2017-01 as of January 1, 2017. The Company believes its future acquisitions of multifamily communities, office buildings, grocery-anchored shopping centers, and student housing properties will generally qualify as asset acquisitions. To the extent acquisitions are deemed to be asset acquisitions, acquisition costs have been and will be capitalized and amortized rather than expensed as incurred. The impact of the adoption of ASU 2017-01 was an decrease of approximately $3.4 million of the Company's reported net income available to common stockholders for the three-month period ended September 30, 2017 and a decrease of approximately $6.1 million of the Company's reported net loss available to common stockholders for the nine-month period ended September 30, 2017 than it would have under previous guidance.

In February 2017, the FASB issued Accounting Standards Update 2017-05 (“ASU 2017-05”), Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets, and is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017.  The new standard may be applied retrospectively to each prior period presented or under the modified retrospective method, with the cumulative effect recognized as of the date of adoption. The Company currently expects to adopt ASU 2017-05 utilizing the modified retrospective method and is continuing to evaluate the effect the adoption of ASU 2017-05 will have on its results of operations and financial condition.

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Notes to Consolidated Financial Statements – (continued)

September 30, 2017

3. Real Estate Assets

The Company's real estate assets consisted of:

	As of:
	9/30/17	12/31/16
Multifamily communities:
Properties (1)	29	24
Units	9,086	8,049
New Market Properties (2)
Properties	37	31
Gross leasable area (square feet) (3)	3,854,196	3,295,491
Student housing properties:
Properties	2	1
Units	444	219
Beds	1,319	679
Preferred Office Properties:
Properties	3	3
Rentable square feet	1,094,000	1,096,834
(1) The acquired second phase of the Summit Crossing community is managed in combination with the initial phase and so together are considered a single property, as are the three assets that comprise the Lenox Portfolio.
(2) See note 12, Segment information.
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and not included in the totals above.

Storm-related costs

The Company sustained damages at its Stone Creek multifamily community from Hurricane Harvey during the third quarter. The resulting impact required the write-off of approximately $6.9 million in depreciated real estate assets. Additional storm-related costs included approximately $217,000 during the three-month period ended September 30, 2017 for the related insurance deductible, lost rent, and other related costs.

Multifamily communities sold

On January 20, 2017, the Company closed on the sale of its 364-unit multifamily community in Kansas City, Kansas, or Sandstone Creek, to an unrelated third party for a purchase price of $48.1 million, exclusive of closing costs and resulting in a gain of $0.3 million, which is net of disposition expenses including $1.4 million of debt defeasance related costs. Sandstone Creek contributed approximately $1.2 million and $(0.9) million of net income (loss) to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

On March 7, 2017, the Company closed on the sale of its 408-unit multifamily community in Atlanta, Georgia, or Ashford Park, to an unrelated third party for a purchase price of $65.5 million, exclusive of closing costs and resulting in a gain of $30.4 million, which is net of disposition expenses including $1.1 million of debt defeasance related costs plus a prepayment premium of approximately $0.4 million. Ashford Park contributed approximately $2.3 million and $0.6 million of net income to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

On May 25, 2017, the Company closed on the sale of its 300-unit multifamily community in Dallas, Texas, or Enclave at Vista Ridge, to an unrelated third party for a purchase price of $44.0 million, exclusive of closing costs and resulting in a gain of $6.9 million, net of disposition expenses including $2.1 million of debt defeasance related costs. Enclave at Vista Ridge contributed approximately $9.8 million and $(0.2) million of net income (loss) to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The carrying amounts of the significant assets and liabilities of the disposed properties at the dates of sale were:

	Sandstone Creek			Ashford Park			Enclave at Vista Ridge
	1/20/2017			3/7/2017			5/25/2017
Real estate assets:
Land	$	2,846,197		$	10,600,000		$	4,704,917
Building and improvements	41,859,684			24,075,263			29,915,903
Furniture, fixtures and equipment	5,278,268			4,222,858			2,874,403
Accumulated depreciation	(4,808,539		)	(6,816,193		)	(3,556,362		)
Total assets	$	45,175,610		$	32,081,928		$	33,938,861
Liabilities:
Mortgage note payable	$	30,840,135		$	25,626,000		$	24,862,000
Supplemental mortgage note	$	—		$	6,373,717		$	—

Multifamily communities acquired

During the nine-month period ended September 30, 2017, the Company completed the acquisition of the following multifamily communities and student housing property:

Acquisition date	Property	Location	Approximate purchase price (millions) (1)		Units
2/28/2017	SoL (2)	Tempe, Arizona	$	53.3	225
3/3/2017	Broadstone at Citrus Village	Tampa, Florida	$	47.4	296
3/24/2017	Retreat at Greystone	Birmingham, Alabama	$	50.0	312
3/31/2017	Founders Village	Williamsburg, Virginia	$	44.4	247
4/26/2017	Claiborne Crossing	Louisville, Kentucky	$	45.2	242
7/26/2017	Luxe at Lakewood Ranch	Sarasota, Florida	$	56.1	280
9/27/2017	Adara Overland Park	Kansas City, Kansas	$	45.5	260
9/29/2017	Aldridge at Town Village	Atlanta, Georgia	$	54.2	300
9/29/2017	The Reserve at Summit Crossing	Atlanta, Georgia	$	30.9	172
					2,334

⁽¹⁾ Purchase prices shown are exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

⁽²⁾ A 640-bed student housing community located adjacent to the campus of Arizona State University in Tempe, Arizona.

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Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The Company allocated the purchase prices and, for acquisitions that closed subsequent to January 1, 2017, capitalized acquisition costs, to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.

2017 Multifamily Communities acquired	Broadstone at Citrus Village			SoL			Retreat at Greystone			Founders Village			Claiborne Crossing			Luxe at Lakewood Ranch			Adara Overland Park			Aldridge at Town Village			The Reserve at Summit Crossing
Land	$	4,809,113		$	7,440,934		$	4,077,262		$	5,314,862		$	2,147,217		$	4,851,844		$	2,854,466		$	7,122,413		$	4,374,721
Buildings and improvements	34,180,983			40,058,727			35,336,277			32,853,763			30,551,646			43,694,577			31,005,403			34,683,056			20,968,236
Furniture, fixtures and equipment	6,299,645			3,771,432			9,125,302			5,907,345			7,027,257			7,338,151			11,024,144			10,735,231			4,970,893
Lease intangibles	1,624,752			2,344,404			1,844,476			1,421,197			1,268,810			1,014,150			1,279,589			2,270,915			925,176
Mark to market debt assumption asset	893,385			—			—			—			4,447,751			—			—			—			—
Prepaids & other assets	744,970			808,045			871,684			938,419			1,120,728			1,387,129			604,973			779,945			384,220
Escrows	67,876			—			101,503			—			—			—			—			—			—
Accrued taxes	(108,286		)	(71,856		)	(139,046		)	—			(115,728		)	(404,690		)	(308,299		)	—			—
Security deposits, prepaid rents, and other liabilities	(24,887		)	(377,735		)	(108,573		)	(103,204		)	(130,850		)	(57,933		)	(31,941		)	(143,024		)	(43,246		)
Net assets acquired	$	48,487,551		$	53,973,951		$	51,108,885		$	46,332,382		$	46,316,831		$	57,823,228		$	46,428,335		$	55,448,536		$	31,580,000
Cash paid	$	18,237,551		$	16,488,951		$	1,660,888		$	1,438,320		$	19,242,604		$	18,535,728		$	14,578,335		$	5,185,142		$	3,333,770
Use of 1031 proceeds	—			—			14,237,997			13,289,062			—			—			—			—			—
Mezzanine loan conversion	—			—			—			—			—			—			—			12,253,394			8,171,230
Mortgage debt	30,250,000			37,485,000			35,210,000			31,605,000			27,074,227			39,287,500			31,850,000			38,010,000			20,075,000
Total consideration	$	48,487,551		$	53,973,951		$	51,108,885		$	46,332,382		$	46,316,831		$	57,823,228		$	46,428,335		$	55,448,536		$	31,580,000
Three months ended September 30, 2017:
Revenue	$	1,168,000		$	1,412,000		$	1,215,000		$	1,029,000		$	1,035,000		$	877,000		$	32,000		$	1,000		$	—
Net income (loss)	$	(621,000	)	$	(1,213,000	)	$	(789,000	)	$	(508,000	)	$	(836,000	)	$	(679,000	)	$	(179,000	)	$	(219,000	)	$	(105,000	)
Nine months ended September 30, 2017:
Revenue	$	2,628,000		$	3,305,000		$	2,513,000		$	2,032,000		$	1,767,000		$	877,000		$	32,000		$	1,000		$	—
Net income (loss)	$	(1,414,000	)	$	(3,108,000	)	$	(1,719,000	)	$	(1,213,000	)	$	(1,663,000	)	$	(679,000	)	$	(179,000	)	$	(219,000	)	$	(105,000	)
Capitalized acquisition costs incurred by the Company	$	458,000		$	290,000		$	383,000		$	1,103,000		$	293,000		$	759,000		$	646,000		$	602,000		$	354,000
Acquisition costs paid to related party (included above)	$	24,000		$	60,000		$	56,000		$	8,000		$	22,000		$	561,000		$	455,000		$	542,000		$	309,000
Remaining amortization period of intangible
assets and liabilities (months)	38.4			0			5.5			5.5			126.1			6.5			9.5			13.5			11.5
(1) The Company's real estate loan investment in support of Founders Village was repaid in full at the closing of the acquisition of the property.

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

2016 Multifamily Communities acquired	North by Northwest			Avalon Park			Overton Rise			Baldwin Park			Crosstown Walk			City Vista			Sorrel
Land	$	8,281,054		$	7,410,048		$	8,511,370		$	17,402,882		$	5,178,375		$	4,081,683		$	4,412,164
Buildings and improvements	34,355,922			80,558,636			44,710,034			87,105,757			33,605,831			36,084,007			35,512,257
Furniture, fixtures and equipment	2,623,916			1,790,256			6,286,105			3,358,589			5,726,583			5,402,228			6,705,040
Lease intangibles	799,109			2,741,060			1,611,314			2,882,772			1,323,511			2,100,866			1,495,539
Prepaids & other assets	79,626			99,297			73,754			229,972			125,706			167,797			—
Escrows	1,026,419			3,477,157			354,640			2,555,753			291,868			599,983			623,791
Accrued taxes	(321,437		)	(394,731		)	(66,422		)	(17,421		)	(25,983		)	(245,326		)	(437,510		)
Security deposits, prepaid rents, and other liabilities	(159,462		)	(207,623		)	(90,213		)	(226,160		)	(53,861		)	(141,238		)	(68,828		)
Net assets acquired	$	46,685,147		$	95,474,100		$	61,390,582		$	113,292,144		$	46,172,030		$	48,050,000		$	48,242,453
Cash paid	$	12,831,872		$	30,474,100		$	20,090,582		$	35,492,144		$	13,632,030		—			$	14,642,453
Real estate loan settled	—			—			—			—			—			12,500,000			—
Joint venture partner	—			—			—			—			—			(450,000		)	—
Mortgage debt	33,853,275			65,000,000			41,300,000			77,800,000			32,540,000			36,000,000			33,600,000
Total consideration	$	46,685,147		$	95,474,100		$	61,390,582		$	113,292,144		$	46,172,030		$	48,050,000		$	48,242,453
Three months ended September 30, 2017:
Revenue	$	1,551,000		$	2,044,000		$	1,309,000		$	2,421,000		$	1,339,000		$	1,143,000		$	1,102,000
Net income (loss)	$	(37,000	)	$	(573,000	)	$	(144,000	)	$	(645,000	)	$	(121,000	)	$	(341,000	)	$	(441,000	)
Nine months ended September 30, 2017:
Revenue	$	4,486,000		$	6,059,000		$	3,888,000		$	7,135,000		$	3,929,000		$	3,311,000		$	3,315,000
Net income (loss)	$	(166,000	)	$	(2,853,000	)	$	(411,000	)	$	(1,915,000	)	$	(250,000	)	$	(1,889,000	)	$	(1,668,000	)
Capitalized acquisition costs incurred by the Company	$	40,000		$	1,314,000		$	116,000		$	1,847,000		$	320,000		$	18,000		$	529,000

15

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Grocery-anchored shopping centers acquired

During the nine months ended September 30, 2017, the Company completed the acquisition of the following grocery-anchored shopping centers:

Acquisition date	Property	Location	Approximate purchase price (millions) (1)		Gross leasable area (square feet)
4/21/2017	Castleberry-Southard	Atlanta, Georgia	$	17.6	80,018
6/6/2017	Rockbridge Village	Atlanta, Georgia	$	20.3	102,432
7/26/2017	Irmo Station	Columbia, SC	$	16.0	99,384
8/25/2017	Maynard Crossing	Raleigh, NC	$	29.9	122,781
9/8/2017	Woodmont Village	Atlanta, GA	$	13.5	85,639
9/22/2017	West Town Market	Charlotte, NC	$	14.3	67,883
					558,137

⁽¹⁾ Purchase prices shown are exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

The Company allocated the purchase prices to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocation was based upon the Company's best estimates of the fair values of the acquired assets and liabilities.

16

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

New Market Properties 2017 acquisitions	Castleberry-Southard			Rockbridge Village			Irmo Station			Maynard Crossing			Woodmont Village			West Town Market
Land	$	3,023,731		$	3,141,325		$	3,602,466		$	6,303,787		$	2,712,907		$	1,936,572
Buildings and improvements	13,471,240			15,666,091			11,555,942			21,773,900			9,836,799			12,092,823
Tenant improvements	670,376			278,340			303,449			791,792			193,347			205,557
In-place leases	990,663			1,249,694			773,530			1,479,507			1,721,425			1,042,631
Above market leases	123,084			59,267			12,811			338,002			—			—
Leasing costs	464,544			301,761			214,340			465,414			413,237			315,624
Below market leases	(1,081,145		)	(332,725		)	(225,228		)	(866,380		)	(1,521,305		)	(1,142,446		)
Other assets	67,899			7,136			132,622			258,658			—			146,864
Other liabilities	(162,499		)	(89,212		)	(59,395		)	(95,119		)	(82,041		)	(76,323		)
Net assets acquired	$	17,567,893		$	20,281,677		$	16,310,537		$	30,449,561		$	13,274,369		$	14,521,302
Cash paid	$	2,306,703		$	6,031,677		$	5,660,537		$	11,949,561		$	4,499,369		$	5,521,302
Use of 1031 proceeds	3,761,190			—			—			—			—			—
Mortgage debt	11,500,000			14,250,000			10,650,000			18,500,000			8,775,000			9,000,000
Total consideration	$	17,567,893		$	20,281,677		$	16,310,537		$	30,449,561		$	13,274,369		$	14,521,302
Three months ended September 30, 2017:
Revenue	$	394,000		$	408,000		$	248,000		$	229,000		$	88,000		$	32,000
Net income (loss)	$	3,000		$	(43,000	)	$	(75,000	)	$	(98,000	)	$	7,000		$	(17,000	)
Nine months ended September 30, 2017:
Revenue	$	640,000		$	518,000		$	248,000		$	229,000		$	88,000		$	32,000
Net income (loss)	$	(85,000	)	$	(35,000	)	$	(75,000	)	$	(98,000	)	$	7,000		$	(17,000	)
Capitalized acquisition costs incurred by the Company	$	78,000		$	131,000		$	226,000		$	379,000		$	200,000		$	201,000
Capitalized acquisition costs paid to related party (included above)	$	19,000		$	23,000		$	161,000		$	307,000		$	135,000		$	144,000
Remaining amortization period of intangible
assets and liabilities (years)	9.8			7.7			2.9			5.1			7.9			8.6

17

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

New Market Properties 2016 acquisitions	Market at Victory Village				Southeastern Six Portfolio			Wade Green Village				Lakeland Plaza			Sunbelt 7 Portfolio
Land	$	2,271,224			$	14,081,647		$	1,840,284			$	7,079,408		$	36,198,658
Buildings and improvements	11,872,222				48,598,731			8,159,147				32,258,335			109,504,038
Tenant improvements	402,973				993,530			251,250				828,966			2,143,404
In-place leases	847,939				4,906,398			841,785				2,947,175			11,005,662
Above-market leases	100,216				86,234			107,074				1,349,624			458,353
Leasing costs	253,640				992,143			167,541				1,287,825			4,116,560
Below-market leases	(198,214		)		(1,069,877		)	—				(797,729		)	(7,617,485		)
Other assets	157,775				600,069			10,525				—			3,409,838
Other liabilities	(179,546		)		(437,008		)	(59,264		)		(180,331		)	(1,196,579		)
Net assets acquired	$	15,528,229			$	68,751,867		$	11,318,342			$	44,773,273		$	158,022,449
Cash paid	$	6,278,229			$	43,751,867		$	6,245,683		(1)	$	14,773,273		$	60,368,449
Class A OP Units granted	—				—			5,072,659			(2)	—			—
Mortgage debt	9,250,000			(3)	25,000,000			—			(4)	30,000,000			97,654,000
Total consideration	$	15,528,229			$	68,751,867		$	11,318,342			$	44,773,273		$	158,022,449
Three months ended September 30, 2017:
Revenue	$	331,000			$	1,604,000		$	260,000			$	933,000		$	3,278,000
Net loss	$	(36,000	)		$	(52,000	)	$	(79,000	)		$	(100,000	)	$	(248,000	)
Nine months ended September 30, 2017:
Revenue	$	1,026,000			$	4,759,000		$	781,000			$	2,822,000		$	9,837,000
Net loss	$	(87,000	)		$	(229,000	)	$	(259,000	)		$	(346,000	)	$	(1,227,000	)
Cumulative acquisition costs incurred by the Company	$	111,000			$	633,000		$	297,000			$	255,000		$	691,000
Remaining amortization period of intangible
assets and liabilities (years)	7.9				3.9			1.7				6.9			9.0

⁽¹⁾ The contributor had an outstanding $6.25 million bridge loan secured by the property issued by Madison Wade Green Lending, LLC, an indirect wholly owned entity of the Company. Upon contribution of the property, the Company assumed the loan and concurrently extinguished the obligation.

⁽²⁾ As partial consideration for the property contribution, the Company granted 419,228 Class A OP Units to the contributor, net of contribution adjustments at closing. The value and number of Class A OP Units to be granted at closing was determined during the contract process and remeasured at fair value as of the contribution date of February 29, 2016. Class A OP Units are exchangeable for shares of Common Stock on a one-for-one basis, or cash, at the election of the Operating Partnership. Therefore, the Company determined the fair value of the Units to be equivalent to the price of its common stock on the closing date of the acquisition.

⁽³⁾ The Company assumed the existing mortgage in conjunction with its acquisition of The Market at Victory Village.

⁽⁴⁾ Subsequent to the closing of the acquisition, the Company closed on a mortgage loan on Wade Green Village in the amount of $8.2 million.

18

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Preferred Office Properties

In the Company's Annual Report on Form 10-K for the year ended December 31, 2016, the Company reported a misclassified amount of tenant improvements on its acquisition of the Three Ravinia office building. The impact on the Company's Consolidated Balance Sheet for the year ended December 31, 2016 was an understatement of buildings and improvements of approximately $14.2 million and an overstatement of tenant improvements of the same amount, as shown in the table below. The Company assessed the impact of the error, both quantitatively and qualitatively, in accordance with the SEC’s Staff Accounting Bulletin (SAB) No. 99 and SAB No. 108 and concluded that it was not material to the Company’s previously issued Financial Statements. In order to conform previous financial statements with the current period, the Company elected to revise previously issued financial statements the next time such financial statements are filed. The revision had no impact on the Consolidated Statement of Operations, Consolidated Statement of Stockholder’s Equity, or the Consolidated Statement of Cash Flows.

Consolidated balance sheet as of December 31, 2016	As previously reported		Adjustment			As revised
Real estate
Building and improvements	$	1,499,129,649	$	14,164,111		$	1,513,293,760
Tenant improvements	$	37,806,472	$	(14,164,111	)	$	23,642,361

Three Ravinia acquisition	As previously reported		Adjustment			As revised
Real estate
Buildings and improvements	$	133,323,658	$	14,164,111		$	147,487,769
Tenant improvements	$	20,698,893	$	(14,164,111	)	$	6,534,782

The error in the prior year purchase price allocation for the Three Ravinia acquisition was related to the expenditure timing of landlord funded tenant allowances and the related recognition of value at the acquisition date.

The Company recorded aggregate amortization and depreciation expense of:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Depreciation:
Buildings and improvements	$	14,084,126	$	9,637,960	$	39,928,817	$	24,251,696
Furniture, fixtures, and equipment	7,697,513		5,775,856		20,916,508		15,135,655
	21,781,639		15,413,816		60,845,325		39,387,351
Amortization:
Acquired intangible assets	6,724,543		6,205,194		20,744,743		15,523,359
Deferred leasing costs	381,103		38,621		562,865		53,510
Website development costs	16,485		6,732		34,027		16,844
Total depreciation and amortization	$	28,903,770	$	21,664,363	$	82,186,960	$	54,981,064

At September 30, 2017, the Company had recorded gross intangible assets of $164.4 million, and accumulated amortization of $64.0 million; gross intangible liabilities of $38.5 million and accumulated amortization of $6.9 million. Net intangible assets and liabilities as of September 30, 2017 will be amortized over the weighted average remaining amortization periods of approximately 7.0 years and 8.9 years, respectively.

4.     Real Estate Loans, Notes Receivable, and Line of Credit

Our portfolio of fixed rate, interest-only real estate loans consisted of:

19

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

	September 30, 2017			December 31, 2016
Number of loans	27			26
Drawn amount	$	411,300,449		$	334,570,242
Deferred loan origination fees	(2,095,534		)	(1,809,174		)
Carrying value	$	409,204,915		$	332,761,068
Unfunded loan commitments	$	92,666,156		$	76,546,234
Weighted average current interest, per annum (paid monthly)	8.48		%	8.26		%
Weighted average accrued interest, per annum	5.10		%	5.26		%

	Principal balance			Deferred loan origination fees			Carrying value
Balances as of December 31, 2016	$	334,570,242		$	(1,809,174	)	$	332,761,068
Loan fundings	119,225,599			—			119,225,599
Loan repayments	(42,495,392		)	—			(42,495,392		)
Commitment fees collected	—			(1,281,383		)	(1,281,383		)
Amortization of commitment fees	—			995,023			995,023
Balances as of September 30, 2017	$	411,300,449		$	(2,095,534	)	$	409,204,915

Property type	Number of loans	Carrying value		Commitment amount		Percentage of portfolio
Multifamily communities	16	$	234,186,944	$	299,657,110	57	%
Student housing properties	9	154,177,450		182,952,490		38	%
Grocery-anchored shopping centers	1	12,852,591		12,857,005		3	%
Other	1	7,987,930		8,500,000		2	%
Balances as of September 30, 2017	27	$	409,204,915	$	503,966,605

The Palisades, Green Park and Stadium Village (see note 16) loans are subject to a loan participation agreement with a syndicate of unaffiliated third parties, under which the syndicate is to fund approximately 25% of the loan commitment amount and collectively receive approximately 25% of interest payments, returns of principal and purchase option discount (if applicable). The Company's Encore loan is subject to a loan participation agreement of 49% of the loan commitment amount, interest payments, and return of principal. The aggregate amount of the Company's liability under the loan participation agreements at September 30, 2017 was approximately $17.9 million.

The Company's real estate loans are collateralized by 100% of the membership interests of the underlying project entity, and, where considered necessary, by unconditional joint and several repayment guaranties and performance guaranties by the principal(s) of the borrowers. These guaranties generally remain in effect until the receipt of a final certificate of occupancy. All of the guaranties are subject to the rights held by the senior lender pursuant to a standard intercreditor agreement. The Crescent Avenue, Haven Northgate, Brentwood, and Berryessa loans are also collateralized by the acquired land or property. The18 Nineteen and Haven South loans are additionally collateralized by an assignment by the developer of security interests in unrelated projects. Prepayment of the real estate loans are permitted in whole, but not in part, without the Company's consent.

Management monitors the credit quality of the obligors under each of the Company's real estate loans by tracking the timeliness of scheduled interest and principal payments relative to the due dates as specified in the loan documents, as well as draw requests on the loans relative to the project budgets. In addition, management monitors the actual progress of development and construction relative to the construction plan, as well as local, regional and national economic conditions that may bear on our current and target markets. The credit quality of the Company’s borrowers is primarily based on their payment history on an individual loan basis, and as such, the Company does not assign quantitative credit value measures or categories to its real estate loans and notes receivable in credit quality categories. At September 30, 2017, none of the Company's real estate loans were delinquent.

20

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Our portfolio of notes and lines of credit receivable consisted of:

Borrower	Date of loan	Maturity date	Total loan commitments		Outstanding balance as of:						Interest rate
					9/30/2017			12/31/2016
360 Residential, LLC (1)	3/20/2013	12/31/2017	$	2,000,000	$	1,958,998		$	1,472,571		12	%
Preferred Capital Marketing Services, LLC (2)	1/24/2013	12/31/2017	1,500,000		926,422			1,082,311			10	%
Oxford Contracting, LLC (1)	8/27/2013	(3)	-3		—			1,475,000			8	%
Preferred Apartment Advisors, LLC (1,2,4)	8/21/2012	12/31/2018	18,000,000		15,812,313			13,708,761			8	%
Haven Campus Communities, LLC (1,2)	6/11/2014	12/31/2017	11,110,000		7,324,904			7,324,904			12	%
Oxford Capital Partners, LLC (1,5)	10/5/2015	12/31/2017	10,150,000		8,972,378			7,870,865			12	%
Newport Development Partners, LLC (1)	6/17/2014	6/30/2018	3,000,000		—			—			12	%
360 Residential, LLC II (1)	12/30/2015	12/31/2017	3,255,000		3,230,232			2,884,845			15	%
Mulberry Development Group, LLC (1)	3/31/2016	6/30/2018	500,000		420,000			177,000			12	%
Mulberry Alexandria Group, LLC	7/31/2017	12/31/2017	1,400,000		990,154			—			12	%
360 Capital Company, LLC (1)	5/24/2016	12/31/2017	3,900,000		2,730,499			1,678,999			12	%
Unamortized loan fees					(14,404		)	(59,581		)
			$	54,815,000	$	42,351,496		$	37,615,675
(1) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower.
(2) See related party disclosure in Note 6.
(3) Note was repaid on April 6, 2017 and terminated at its maturity date of April 30, 2017.
(4) The amounts payable under this revolving credit line were collateralized by an assignment of the Manager's rights to fees due under the Sixth Amended and Restated Management Agreement between the Company and the Manager.
(5) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2,000,000 are collateralized by a personal guaranty of repayment by the principals of the borrower.

The Company recorded interest income and other revenue from these instruments as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate loans:
Current interest payments	$	8,956,012	$	5,902,915	$	23,996,934	$	16,913,037
Additional accrued interest	5,005,796		3,917,641		13,894,268		10,633,937
Deferred origination fee amortization	408,077		201,147		995,023		636,875
Total real estate loan revenue	14,369,885		10,021,703		38,886,225		28,183,849
Interest income on notes and lines of credit	1,123,240		974,540		3,196,965		3,111,339
Interest income on loans and notes receivable	$	15,493,125	$	10,996,243	$	42,083,190	$	31,295,188

The Company extends loans for purposes such as to partially finance the development of multifamily residential communities, to acquire land in anticipation of developing and constructing multifamily residential communities, and for other real estate or real estate related projects. Certain of these loans include characteristics such as exclusive options to purchase the project within a specific time window following project completion and stabilization, the sufficiency of the borrowers' investment at risk and the existence of payment and performance guaranties provided by the borrowers, can cause the loans to create variable interests to the Company and require further evaluation as to whether the variable interest creates a variable interest entity, or VIE, which would necessitate consolidation of the project.

The Company considers the facts and circumstances pertinent to each entity borrowing under the loan, including the relative amount of financing the Company is contributing to the overall project cost, decision making rights or control held by the Company, guarantees provided by third parties, and rights to expected residual gains or obligations to absorb expected residual losses that could be significant from the project. If the Company is deemed to be the primary beneficiary of a VIE, consolidation treatment would be required.

21

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The Company has no decision making authority or power to direct activity, except normal lender rights, which are subordinate to the senior loans on the projects. The Company has concluded that it is not the primary beneficiary of the borrowing entities and therefore it has not consolidated these entities in its consolidated financial statements. The Company's maximum exposure to loss from these loans is their drawn amount as of September 30, 2017 of approximately $371.3 million. The maximum aggregate amount of loans to be funded as of September 30, 2017 was approximately $461.6 million.

The Company has evaluated its real estate loans, where appropriate, for accounting treatment as loans versus real estate development projects, as required by ASC 310. For each loan, the characteristics and the facts and circumstances indicate that loan accounting treatment is appropriate.

The Company is also subject to a geographic concentration of risk that could be considered significant with regard to the Encore, Encore Capital, Green Park, Stadium Village, Bishop Street, Dawsonville Marketplace, Crescent Avenue, 360 Forsyth, Morosgo and TP Kennesaw loans, all of which are partially supporting proposed various real estate projects in or near Atlanta, Georgia. The drawn amount of these loans as of September 30, 2017 totaled approximately $98.4 million (with a total commitment amount of approximately $142.7 million) and in the event of a total failure to perform by the borrowers and guarantors, would subject the Company to a total possible loss of that amount.

5. Redeemable Preferred Stock and Equity Offerings

On February 14, 2017, the Company terminated its offering of up to 900,000 Units, or Follow-on Offering, and on the same day, the Company’s registration statement on Form S-3 (Registration No. 333-211924) (the “$1.5 Billion Follow-on Registration Statement”)  was declared effective by the SEC. This $1.5 Billion Follow-on Registration Statement allows us to offer up to a maximum of 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock and one Warrant to purchase up to 20 shares of Common Stock (the "$1.5 Billion Unit Offering"). The price per Unit is $1,000, subject to adjustment if a participating broker-dealer reduces its commission. Each share of Preferred Stock ranks senior to Common Stock with respect to dividend rights and carries a cumulative annual 6% dividend of the stated per share value of $1,000, payable monthly as declared by the Company’s board of directors. Dividends begin accruing on the date of issuance. The redemption schedule of the Preferred Stock allows redemptions at the option of the holder from the date of issuance of the Preferred Stock through the first year subject to a 13% redemption fee. After year one, the redemption fee decreases to 10%, after year three it decreases to 5%, after year four it decreases to 3%, and after year five there is no redemption fee. Any redeemed shares of Preferred Stock are entitled to any accrued but unpaid dividends at the time of redemption and any redemptions may be in cash or Common Stock, at the Company’s discretion. The Warrant is exercisable by the holder at an exercise price of 120% of the current market price per share of the Common Stock on the date of issuance of such warrant with a minimum exercise price of $19.50 per share. The current market price per share of the Common Stock is determined using the closing price of the common stock immediately preceding the issuance of such Warrant. The Warrants are not exercisable until one year following the date of issuance and expire four years following the date of issuance. The Units are being offered by Preferred Capital Securities, LLC, or PCS, an affiliate of the Company, on a "reasonable best efforts" basis. The Company intends to invest substantially all the net proceeds of the $1.5 Billion Unit Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes. Except as described in the $1.5 Billion Follow-on Registration Statement, the terms of the $1.5 Billion Unit Offering are substantially similar to those under the Follow-on Offering. As of February 14, 2017, which was the final closing of the Follow-on Offering, offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $97.2 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $15.0 million. As of February 14, 2017, the Company had issued all available Units under the Primary Series A Offering and the Follow-on Offering and collected net proceeds of approximately $891.2 million after commissions. Since the maximum number of Units available to be issued under the Primary Series A Offering and the Follow-on Offering were issued, the Company consequently recognized 100.0% of the approximate $15.0 million deferred offering costs as a reduction of stockholders' equity.  

For the $1.5 Billion Unit Offering, as of September 30, 2017, offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $14.9 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $3.0 million. As of September 30, 2017, the Company had issued 151,923 Units and collected net proceeds of approximately $136.5 million after commissions under the $1.5 Billion Unit Offering. The number of Units issued was approximately 10.1% of the maximum number of Units anticipated to be issued under the $1.5 Billion Unit Offering. Consequently, the Company cumulatively recognized approximately 10.1% of the approximate $3.0 million deferred to date, or approximately $300,000 as a reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $2.7 million, are reflected in the asset section of the consolidated

22

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

balance sheet as deferred offering costs at September 30, 2017. The remainder of current and future deferred offering costs related to the $1.5 Billion Unit Offering will likewise be recognized as a reduction of stockholders' equity in the proportion of the number of Units issued to the maximum number of Units anticipated to be issued. Offering costs not related to a specific closing transaction are subject to an overall cap of approximately 1.5% (discussed further below) of the total gross proceeds raised during the Unit offerings.

Cumulatively, a total of 25,715 shares of Preferred Stock have been subsequently redeemed from the Primary Series A Offering, the Follow-on Offering, and the $1.5 Billion Unit Offering. 

Aggregate offering expenses, including selling commissions and dealer manager fees, will be capped at 11.5% of the aggregate gross proceeds of the $1.5 Billion Unit Offering, of which the Company will reimburse its Manager up to 1.5% of the gross proceeds of such offering for all organization and offering expenses incurred, excluding selling commissions and dealer manager fees; however, upon approval by the conflicts committee of the board of directors, the Company may reimburse its Manager for any such expenses incurred above the 1.5% amount as permitted by the Financial Industry Regulatory Authority.

On May 5, 2016, the Company filed a registration statement on Form S-3 (File No. 333-211178), or the New Shelf Registration Statement, for an offering of up to $300 million of equity or debt securities, or the Shelf Offering, which was declared effective by the SEC on May 17, 2016. Deferred offering costs related to this Shelf Registration Statement totaled approximately $1.9 million as of September 30, 2017, of which $628,000 has been reflected as a reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $1.3 million, are reflected in the asset section of the consolidated balance sheet as deferred offering costs at September 30, 2017.

On May 12, 2017, the Company sold 2,750,000 shares of its Common Stock at a price of $15.25 per share pursuant to an underwritten public offering. On May 30, 2017, the Company sold an additional 412,500 shares of Common Stock at $15.25 per share pursuant to the exercise in full of an option received in connection with the public offering. The combined gross proceeds of the two sales was approximately $48.2 million before deducting underwriting discounts and commissions and other estimated offering expenses.

The Company filed a prospectus to issue and sell up to $150 million of Common Stock from time to time in an "at the market" offering (the "2016 ATM Offering") through the sales agents named in the prospectus. The Company intends to use any proceeds from the 2016 ATM Offering to repay outstanding amounts under our existing senior secured revolving credit facility and for other general corporate purposes, which includes making investments in accordance with the Company's investment objectives. Through September 30, 2017, the Company cumulatively sold 3.4 million shares of common stock through the ATM Offering and collected net proceeds of approximately $51.0 million.

On December 2, 2016, the Company’s registration statement on Form S-3 (Registration No. 333-214531) (the “mShares Registration Statement”) was declared effective by the SEC. The mShares Registration Statement allows us to offer up to a maximum of 500,000 shares of Series M Redeemable Preferred Stock (“mShares”), par value $0.01 per share (the “mShares Offering”).  The mShares are being offered by PCS on a "reasonable best efforts" basis. The price per mShare is $1,000. Each mShare ranks senior to Common Stock and on parity with the Series A Preferred Stock with respect to dividend rights and carries a cumulative annual dividend of 5.75% per annum. Beginning one year from the date of original issuance of each mShare, and on each one year anniversary thereafter, the dividend rate increases by 0.25% per annum, up to a maximum of 7.5% per annum. Dividends are payable monthly as declared by the Company’s board of directors and begin accruing on the date of issuance. The redemption schedule of the mShares allows redemptions at the option of the holder from the date of issuance of the Preferred Stock through the first year subject to a 2% redemption fee. After year one, the redemption fee decreases to 1% and after year two there is no redemption fee. Any redeemed mShares are entitled to any accrued but unpaid dividends at the time of redemption and any redemptions may be in cash or Common Stock, at the Company’s discretion. The Company intends to invest substantially all the net proceeds of the mShares Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes. 

As of September 30, 2017, offering costs specifically identifiable to mShares Offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $0.6 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $2.2 million. As of September 30, 2017, the Company had issued 12,396 mShares and collected net proceeds of approximately $11.8 million after commissions under the mShares Offering. The number of mShares issued was approximately 2.5% of the maximum number of mShares anticipated to be issued under the mShares Offering. Consequently, the Company cumulatively recognized approximately 2.5% of the approximate $2.2 million deferred to date, or approximately $54,000 as a

23

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $2.1 million are reflected in the asset section of the consolidated balance sheet as deferred offering costs at September 30, 2017. The remainder of current and future deferred offering costs related to the mShares Offering will likewise be recognized as a reduction of stockholders' equity in the proportion of the number of mShares issued to the maximum number of mShares anticipated to be issued. Offering costs not related to a specific closing transaction are subject to an overall cap of approximately 1.5% (discussed further below) of the total gross proceeds raised during the mShares Offering.

Aggregate offering expenses, including dealer manager fees, are capped at 11.5% of the aggregate gross proceeds of the mShares Offering, of which the Company will reimburse its Manager up to 1.5% of the gross proceeds of such offering for all organization and offering expenses incurred, excluding dealer manager fees; however, upon approval by the conflicts committee of the board of directors, the Company may reimburse its Manager for any such expenses incurred above the 1.5% amount as permitted by the Financial Industry Regulatory Authority.

The Company's Series A Preferred Stock and mShares are redeemable at the option of the holder in either cash or the Company's Common Stock, at the Company's option. Since the Company controls the form of redemption, it presents its Series A Preferred Stock and mShares as components of permanent rather than temporary or mezzanine equity on its Consolidated Balance Sheets.

6. Related Party Transactions

John A. Williams, the Company's Chief Executive Officer and Chairman of the Board, and Leonard A. Silverstein, the Company's President and Chief Operating Officer and a member of the Board, are also executive officers and directors of NELL Partners, Inc., which controls the Manager. Mr. Williams, Mr. Silverstein, and Daniel M. DuPree comprise the board of directors of Nell Partners, Inc. Mr. Williams is the Chief Executive Officer and Mr. Silverstein is the President and Chief Operating Officer of the Manager. Mr. DuPree is the Chief Investment Officer of the Manager.

Mr. Williams, Mr. Silverstein and Michael J. Cronin, the Company's Executive Vice President, Chief Accounting Officer and Treasurer are executive officers of Williams Realty Advisors, LLC, or WRA, which is the manager of the day-to-day operations of Williams Opportunity Fund, LLC, or WOF, as well as Williams Realty Fund I, LLC, or WRF.

24

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The Management Agreement entitles the Manager to receive compensation for various services it performs related to acquiring assets and managing properties on the Company's behalf:

		Three months ended September 30,				Nine months ended September 30,
Type of Compensation	Basis of Compensation	2017		2016		2017		2016
Acquisition fees	As of July 1, 2017, 1.0% of the gross purchase price of real estate assets	$	2,604,551	$	—	$	2,604,551	$	—
Loan origination fees	1.0% of the maximum commitment of any real estate loan, note or line of credit receivable	878,939		250,602		1,296,383		1,374,828
Loan coordination fees	As of January 1, 2016, 1.6% of any assumed, new or supplemental debt incurred in connection with an acquired property. Effective July 1, 2017, the fee was reduced to 0.6% of any such debt.	1,056,885		3,493,227		4,066,393		8,178,836
Asset management fees	Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted	3,191,817		2,196,363		9,313,759		5,708,868
Property management fees	Monthly fee equal to 4% of the monthly gross revenues of the properties managed	1,569,603		1,438,569		4,554,880		3,629,322
General and administrative expense fees	Monthly fee equal to 2% of the monthly gross revenues of the Company	1,306,360		831,711		3,849,481		2,343,936
Construction management fees	Quarterly fee for property renovation and takeover projects	62,130		53,935		222,539		126,446
		$	10,670,285	$	8,264,407	$	25,907,986	$	21,362,236

The Manager may, in its discretion, forfeit some or all of the asset management, property management, or general and administrative fees for properties owned by the Company. The forfeited fees are converted at the time of forfeiture into contingent fees, which are earned by the Manger only in the event of a sales transaction, and whereby the Company’s capital contributions for the property being sold exceed a 7% annual rate of return. The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  

As of July 1, 2017, the Manager reduced the loan coordination fee from 1.6% to 0.6% of the amount of assumed, new or incremental debt which leverages acquired real estate assets. In addition, the Manager reinstated a 1% acquisition fee charged on the cost of acquired real estate assets, which had historically been charged prior to its replacement effective January 1, 2016 by the 1.6% loan coordination fee. These changes were put in place to reflect a shift in the efforts of the Manager in property acquisitions.

On May 25, 2017,we closed on the sale of our Enclave at Vista Ridge multifamily community to an unrelated third party. At such date, the Manager collected a cumulative total of approximately $390,000 of contingent fees. The sales transaction, and the fact that the Company’s capital contributions for the Enclave at Vista Ridge property achieved a greater than 7% annual rate of return.  The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  

A cumulative total of approximately $5.1 million of combined asset management and general and administrative fees related to acquired properties as of September 30, 2017 have been forfeited by the Manager. A total of $4.3 million remains contingent and could possibly be earned by the Manager in the future.

25

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

In addition to property management fees, the Company incurred the following reimbursable on-site personnel salary and related benefits expenses at the properties, which are listed on the Consolidated Statements of Operations:

Three months ended September 30,				Nine months ended September 30,
2017		2016		2017		2016
$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403

The Manager utilizes its own and its affiliates' personnel to accomplish certain tasks related to raising capital that would typically be performed by third parties, including, but not limited to, legal and marketing functions. As permitted under the Management Agreement, the Manager was reimbursed $324,638 and $356,752 for the nine-month periods ended September 30, 2017 and 2016, respectively and PCS was reimbursed $790,804 and $768,869 for the nine-month periods ended September 30, 2017 and 2016, respectively. These costs are recorded as deferred offering costs until such time as additional closings occur on the $1.5 Billion Unit Offering, mShares Offering or the Shelf Offering, at which time they are reclassified on a pro-rata basis as a reduction of offering proceeds within stockholders’ equity.

The Company's Haven 12, Stadium Village, 18 Nineteen, Haven South, Haven 46, Lubbock II, Haven Northgate and Haven Charlotte real estate loans and the Haven Campus Communities' line of credit are supported in part by guaranties of repayment and performance by John A. Williams, Jr., our Chief Executive Officer's son, a principal of the borrowers and a related party of the Company under GAAP.

In addition to the fees described above, the Management Agreement also entitles the Manager to other potential fees, including a disposition fee of 1% of the sale price of a real estate asset. The Manager earned disposition fees totaling $1,576,000 for the nine-month period ended September 30, 2017 on the sale of the Ashford Park, Sandstone Creek and Enclave at Vista Ridge properties, and $390,000 for the nine-month period ended September 30, 2016 on the sale of the Trail Creek property. These fees are included in the Gain on sale of real estate, net of disposition expenses line on the Consolidated Statements of Operations. The Manager also receives leasing commission fees. Retail leasing commission fees (a) for new retail leases are equal to the greater of (i) $4.00 per square foot, and (ii) 4.0% of the aggregate base rental payments to be made by the tenant for the first 10 years of the original lease term; and (b) for lease renewals are equal to the greater of (i) $2.00 per square foot, and (ii) 2.0% of the aggregate base rental payments to be made by the tenant for the first 10 years of the newly renewed lease term. There are no commissions payable on retail lease renewals thereafter. Office leasing commission fees (a) for new office leases are equal to 50.0% of the first month’s gross rent plus 2.0% of the remaining fixed gross rent on the guaranteed lease term, (b) in the event of co-broker participation in a new lease, the leasing commission determined for a new lease are equal to 150.0% of the first month’s gross rent plus 6% of the remaining fixed gross rent of the guaranteed lease term, and (c) for lease renewals, are equal to 2% of the fixed gross rent of the guaranteed lease term or, in the event of a co-broker, 6% of the fixed gross rent of the guaranteed lease term. Office leasing commission fees may not exceed market rates for office leasing services.

The Company holds a promissory note in the amount of $926,422 due from Preferred Capital Marketing Services, LLC, or PCMS, which is a wholly-owned subsidiary of NELL Partners.

The Company has extended a revolving line of credit with a maximum borrowing amount of $18.0 million to its Manager.

7. Dividends and Distributions

The Company declares and pays monthly cash dividend distributions on its Series A Preferred Stock in the amount of $5.00 per share per month and beginning in March 2017, on its Series M Preferred Stock, on an escalating scale of $4.79 per month in year one, increasing to $6.25 per month in year eight and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary.

26

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

The Company's dividend activity on its Common Stock for the nine-month periods ended September 30, 2017 and 2016 was:

2017						2016
Record date	Number of shares	Dividend per share		Aggregate dividends paid		Record date	Number of shares	Dividend per share		Aggregate dividends paid
March 15, 2017	27,139,354	$	0.220	$	5,970,658	March 15, 2016	23,041,502	$	0.1925	$	4,435,489
June 15, 2017	32,082,451	0.235		7,539,376		June 15, 2016	23,568,328	0.2025		4,772,587
September 15, 2017	34,715,982	0.235		8,158,256		September 15, 2016	24,652,041	0.2025		4,992,038
		$	0.69	$	21,668,290			$	0.5975	$	14,200,114

The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as those declared on the Common Stock. At September 30, 2017, the Company had 901,195 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash. Distribution activity by the Operating Partnership was:

2017				2016
Record date	Payment date	Aggregate distributions		Record date	Payment date	Aggregate distributions
March 15, 2017	April 14, 2017	$	198,742	March 15, 2016	April 15, 2016	$	117,395
June 15, 2017	July 14, 2017	211,781		June 15, 2016	July 15, 2016	179,449
September 15, 2017	October 16, 2017	211,781		September 15, 2016	October 14, 2016	179,449
		$	622,304			$	476,293

8. Equity Compensation

Stock Incentive Plan

On February 25, 2011, the Company’s board of directors adopted, and the Company’s stockholders approved, the Preferred Apartment Communities, Inc. 2011 Stock Incentive Plan to incentivize, compensate and retain eligible officers, consultants, and non-employee directors. On May 7, 2015, the Company's stockholders approved the third amendment to the Preferred Apartment Communities, Inc. 2011 Stock Incentive Plan, or, as amended, the 2011 Plan, which amendment increased the aggregate number of shares of Common Stock authorized for issuance under the 2011 Plan from 1,317,500 to 2,617,500 and extended the expiration date of the 2011 Plan to December 31, 2019.

27

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Equity compensation expense by award type for the Company was:

	Three months ended September 30,				Nine months ended September 30,				Unamortized expense as of September 30,
	2017		2016		2017		2016		2017
Quarterly board member committee fee grants	$	—	$	18,030	$	—	$	48,021	$	—
Class B Unit awards:
Executive officers - 2015	—		—		—		5,236		—
Executive officers - 2016	74,470		517,884		237,714		1,536,946		374,753
Executive officers - 2017	678,176		—		2,012,653		—		1,401,140
Restricted stock grants:
2015	—		—		—		106,670		—
2016	—		102,500		136,667		170,833		—
2017	90,005		—		150,008		—		210,011
Restricted stock units	20,761		—		70,625		—		211,878
Total	$	863,412	$	638,414	$	2,607,667	$	1,867,706	$	2,197,782

Restricted Stock Grants

The following annual grants of restricted stock were made to members of the Company's independent directors, as payment of the annual retainer fees. The restricted stock grants for the 2015 and 2016 service years vested (or are scheduled to vest) on a pro-rata basis over the four consecutive 90-day periods following the date of grant.

Service year	Shares	Fair value per share		Total compensation cost
2015	30,133	$	10.62	$	320,012
2016	30,990	$	13.23	$	409,998
2017	24,408	$	14.75	$	360,018

Class B OP Units

On January 2, 2015, the Company caused the Operating Partnership to grant 176,835 Class B Units of the Operating Partnership, or Class B OP Units, for service to be rendered during 2015. On January 4, 2016, the Company caused the Operating Partnership to grant 265,931 Class B OP Units for service to be rendered during 2016, 2017 and 2018. On January 3, 2017, the Company caused the Operating Partnership to grant 286,392 Class B OP Units for service to be rendered during 2017, 2018 and 2019.

Prior to January 4, 2016, the Class B Units became Vested Class B Units at the Initial Valuation Date, which was generally one year from the date of grant. Beginning with the 2016 grant, certain Class B Units vest in three equal consecutive one-year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested Class B Units become earned Class B Units and automatically convert into Class A Units of the Operating Partnership (as long as the capital accounts have achieved economic equivalence), which are henceforth entitled to distributions from the Operating Partnership and become exchangeable for Common Stock on a one-to-one basis at the option of the holder. Vested Class B Units may become Earned Class B Units on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested Class B Units that do not become Earned Class B Units on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested Class B Units become Earned Class B Units or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested Class B Units to qualify to become fully Earned Class B Units.

28

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Because of the market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, a Monte Carlo simulation was utilized to calculate the total fair values, which will be amortized as compensation expense over the one-year periods beginning on the grant dates through the Initial Valuation Dates. On January 2, 2016, the 176,835 outstanding Class B Units for 2015 became fully vested and earned and automatically converted to Class A Units of the Operating Partnership. On January 4, 2017, all of the 265,931 Class B Units granted on January 4, 2016 became earned and 206,534 automatically vested and converted to Class A Units. Of the remaining earned Class B Units, 29,699 will vest and automatically convert to Class A Units on January 4, 2018 and the final 29,698 earned Class B Units will vest and automatically convert to Class A Units on January 4, 2019, assuming each grantee fulfills the requisite service requirement.

The underlying valuation assumptions and results for the Class B OP Unit awards were:

Grant dates	1/3/2017			1/4/2016
Stock price	$	14.79		$	12.88
Dividend yield	5.95		%	5.98		%
Expected volatility	26.4		%	26.10		%
Risk-free interest rate	2.91		%	2.81		%
Number of Units granted:
One year vesting period	198,184			176,835
Three year vesting period	88,208			89,096
	286,392			265,931
Calculated fair value per Unit	$	11.92		$	10.03
Total fair value of Units	$	3,413,793		$	2,667,288
Target market threshold increase	$	4,598,624		$	3,549,000

The expected dividend yield assumptions were derived from the Company’s closing prices of the Common Stock on the grant dates and the projected future quarterly dividend payments per share of $0.22 for the 2017 awards and $0.1925 for the 2016 awards.

For the 2017 and 2016 awards, the Company's own stock price history was utilized as the basis for deriving the expected volatility assumption.

The risk-free rate assumptions were obtained from the Federal Reserve yield table and were calculated as the interpolated rate between the 20 and 30 year yield percentages on U. S. Treasury securities on the grant dates.

Since the Class B OP Units have no expiration date, a derived service period of one year was utilized, which equals the period of time from the grant date to the initial valuation date.

Restricted Stock Units

On January 3, 2017, the Company caused the Operating Partnership to grant 26,900 restricted stock units, or RSUs, for service to be rendered during 2017, 2018 and 2019. The RSUs vest in three equal consecutive one-year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested RSUs become earned RSUs and automatically convert into Common Stock on a one-to-one basis. Vested RSUs may become Earned RSUs on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested RSUs that do not become Earned RSUs on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested RSUs become Earned RSUs or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested RSUs to qualify to become fully Earned RSUs.

Because RSUs are valued using the identical market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, the same valuation assumptions and Monte Carlo result of $11.92 per RSU were utilized to calculate the total fair value of the RSUs of $320,648. Grants of RSUs, net of forfeitures, are amortized as compensation expense

29

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

over the three one-year periods ending on each of January 2, 2018, 2019 and 2020. As of September 30, 2017, a total of 3,200 RSUs had been forfeited.

9. Indebtedness

Mortgage Notes Payable

Mortgage Financing of Property Acquisitions

The Company partially financed the real estate properties acquired during the nine-month period ended September 30, 2017 with mortgage debt as shown in the following table:

Property	Date	Initial principal amount		Fixed/Variable rate	Rate / spread over 1 month LIBOR		Maturity date	Interest only through date
SoL	2/28/2017	$	37,485,000	Variable	200 BPS		3/1/2022	3/1/2022
Citrus Village	3/3/2017	30,250,000		Fixed	3.65	%	6/10/2023	6/9/2017
Retreat at Greystone	3/24/2017	35,210,000		Variable	185 BPS		3/1/2022	3/1/2022
Founders Village	3/31/2017	31,605,000		Fixed	4.31	%	4/1/2027	N/A
Claiborne Crossing	4/26/2017	28,179,500		Fixed	2.89	%	6/1/2054	N/A
Castleberry-Southard	4/21/2017	11,500,000		Fixed	3.99	%	5/1/2027	N/A
Rockbridge Village	6/6/2017	14,250,000		Fixed	3.73	%	7/5/2027	N/A
Luxe at Lakewood Ranch	7/26/2017	39,287,500		Fixed	3.93	%	8/1/2027	N/A
Irmo Station	7/26/2017	10,650,000		Fixed	3.94	%	8/1/2030	N/A
Maynard Crossing	8/25/2017	18,500,000		Fixed	3.74	%	9/1/2032	N/A
Woodmont Village	9/8/2017	8,775,000		Fixed	4.13	%	10/1/2027	N/A
West Town Market	9/22/2017	9,000,000		Fixed	3.65	%	10/1/2025	N/A
Adara Overland Park	9/27/2017	31,850,000		Fixed	3.90	%	4/1/2028	N/A
Aldridge at Town Village	9/29/2017	38,010,000		Variable	185 BPS		3/1/2022	(1	)
The Reserve at Summit Crossing	9/29/2017	20,075,000		Fixed	3.87	%	10/1/2024	N/A
		$	364,627,000
(1) The property is temporarily financed through a credit facility sponsored by the Federal Home Loan Mortgage Corporation; the Company intends to obtain permanent mortgage financing in the near future.

Repayments and Refinancings

In conjunction with the sale of the Enclave at Vista Ridge multifamily community, the Company recorded a defeasance fee of approximately $2.06 million, the effect of which is recorded as an offset against the gain on sale of real estate line of the Consolidated Statements of operations for the nine-month period ended September 30, 2017. In doing so, the Company extinguished the existing mortgage debt with a principal amount due of $24.86 million.

On June 22, 2017, the Company refinanced the existing $16.3 million mortgage on its Stone Creek multifamily community which bore interest at a fixed 3.75% rate per annum into a mortgage of $20.6 million, which bears interest at a fixed rate of 3.22% per annum. In doing so, the Company recorded a prepayment penalty of approximately $817,000, which is included on the Loss on extinguishment of debt on the Consolidated Statements of operations.

On June 15, 2017, the Company refinanced the existing $61.75 million mortgage on its 525 Avalon multifamily community which bore interest at a variable rate of 1 Month LIBOR plus 200 basis points per annum and the secondary financing note of $3.25 million which bore interest at a variable rate of 1 Month LIBOR plus 1100 basis points per annum into a single mortgage of $67.38 million, which bears interest at a fixed rate of 3.98% per annum. Fees paid of approximately $170,000 in conjunction with this

30

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

debt modification were recorded as debt origination costs and will be amortized into interest expense over the life of the new mortgage.

See note 16 for additional refinancing activity which occurred subsequent to September 30, 2017.

The following table summarizes our mortgage notes payable at September 30, 2017:

Fixed rate mortgage debt:	Principal balances due			Weighted-average interest rate		Weighted average remaining life
Multifamily communities	$	744,771,383		3.69	%	7.6 years
New Market Properties	330,701,302			3.81	%	7.5 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	32,953,789			4.02	%	4.9 years
Total fixed rate mortgage debt	$	1,262,089,130		3.80	%	9.2 years
Variable rate mortgage debt:
Multifamily communities	$	234,369,810		3.24	%	4.0 years
New Market Properties	62,620,313			3.86	%	3.9 years
Preferred Office Properties	—			—		—
Student housing projects	37,485,000			3.23	%	4.4 years
Total variable rate mortgage debt	$	334,475,123		3.35	%	4.0 years
Total mortgage debt:
Multifamily communities	$	979,141,193		3.58	%	6.8 years
New Market Properties	393,321,615			3.82	%	6.9 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	70,438,789			3.60	%	4.7 years
Total principal amount	1,596,564,253			3.71	%	8.1 years
Deferred loan costs	(26,994,828		)
Mortgage notes payable, net	$	1,569,569,425

The Company has placed interest rate caps on the variable rate mortgages on its Avenues at Creekside and Citi Lakes multifamily communities. Under guidance provided by ASC 815-10, these interest rate caps fall under the definition of derivatives, which are embedded in their debt hosts. Because these interest rate caps are deemed to be clearly and closely related to their debt hosts, bifurcation and fair value accounting treatment is not required.

The mortgage note secured by our Independence Square property is a seven year term with an anticipated repayment date of September 1, 2022. If the Company elects not to pay its principal balance at the anticipated repayment date, the term will be extended for an additional five years, maturing on September 1, 2027. The interest rate from September 1, 2022 to September 1, 2027 will be the greater of (i) the Initial Interest Rate of 3.93% plus 200 basis points or (ii) the yield on the seven year U.S. treasury security rate plus approximately 400 basis points.

The mortgage note secured by our Royal Lakes Marketplace property has a maximum commitment of $11,050,000. As of September 30, 2017, the Company has an outstanding principal balance of $9.7 million on this loan. Additional advances of the mortgage commitment will be drawn as the Company achieves incremental leasing benchmarks specified under the loan agreement. This mortgage has a variable interest of 1 Month LIBOR plus 250 basis points, which was 3.74% as of September 30, 2017.

The mortgage note secured by our Champions Village property has a maximum commitment of $34.16 million. As of September 30, 2017, the Company has an outstanding principal balance of $27.4 million. Additional advances of the mortgage commitment will

31

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

be drawn as the Company achieves leasing activity. Additional advances are available through October 2019. This mortgage note has a variable interest of the greater of (i) 3.25% or (ii) the sum of the 3.00% plus the LIBOR Rate, which was 4.24% as of September 30, 2017.

As of September 30, 2017, the weighted-average remaining life of deferred loan costs related to the Company's mortgage indebtedness was approximately 9.0 years.

Credit Facility

The Company has a credit facility, or Credit Facility, with KeyBank National Association, or KeyBank, which defines a revolving line of credit, or Revolving Line of Credit, which is used to fund investments, capital expenditures, dividends (with consent of KeyBank), working capital and other general corporate purposes on an as needed basis. The maximum borrowing capacity on the Revolving Line of Credit was increased to $150,000,000 pursuant to the Fourth Amended and Restated Credit Agreement, as amended effective December 27, 2016, or the Amended and Restated Credit Agreement. The Revolving Line of Credit accrues interest at a variable rate of one month LIBOR plus 3.25% per annum and matures on August 5, 2019, with an option to extend the maturity date to August 5, 2020, subject to certain conditions described therein. The weighted average interest rate for the Revolving Line of Credit was 4.51% for the nine-month period ended September 30, 2017. The Revolving Line of Credit also bears a commitment fee on the average daily unused portion of the Revolving Line of Credit of 0.35% per annum.

On January 5, 2016, we entered into a $35.0 million term loan with KeyBank under the Credit Facility, or the 2016 Term Loan,

to partially finance the acquisition of the Baldwin Park multifamily community. The Term Loan accrued interest at a rate of LIBOR plus 3.75% per annum. On August 5, 2016, the Company repaid the 2016 Term Loan in full.

On May 26, 2016, the Company entered into a $11.0 million interim term loan with KeyBank, or the Interim Term Loan, to partially finance the acquisition of Anderson Central, a grocery-anchored shopping center located in Anderson, South Carolina. The Interim Term Loan accrues interest at a rate of LIBOR plus 2.5% per annum and the maturity date was extended to November 21, 2017 during the third quarter 2017. The weighted average interest rate for the Interim Term Loan was 3.66% for the nine-month period ended September 30, 2017.

The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including negative covenants that limit or restrict secured and unsecured indebtedness, mergers and fundamental changes, investments and acquisitions, liens and encumbrances, dividends, transactions with affiliates, burdensome agreements, changes in fiscal year and other matters customarily restricted in such agreements. The amount of dividends that may be paid out by the Company is restricted to a maximum of 95% of AFFO for the trailing rolling four quarters without the lender's consent; solely for purposes of this covenant, AFFO is calculated as earnings before interest, taxes, depreciation and amortization expense, plus reserves for capital expenditures, less normally recurring capital expenditures, less consolidated interest expense.

As of September 30, 2017, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:

Covenant (1)	Requirement		Result
Net worth	Minimum $1,083,509,483	(2)	$1,170,151,180
Debt yield	Minimum 8.0%		9.18%
Payout ratio	Maximum 95.0%	(3)	92.8%
Total leverage ratio	Maximum 65.0%		60%
Debt service coverage ratio	Minimum 1.50x		2.04x

⁽¹⁾ All covenants are as defined in the credit agreement for the Revolving Line of Credit.

⁽²⁾ Minimum $687 million plus 75% of the net proceeds of any equity offering, which totaled approximately $1.1 billion as of September 30, 2017.

⁽³⁾Calculated on a trailing four-quarter basis. For the twelve-month period ended September 30, 2017, the maximum dividends and distributions allowed under this covenant was approximately $89.0 million.

Loan fees and closing costs for the establishment and subsequent amendments of the Credit Facility are amortized utilizing the straight line method over the life of the Credit Facility. At September 30, 2017, unamortized loan fees and closing costs for the Credit Facility were approximately $1.2 million, which will be amortized over a remaining loan life of approximately 1.9 years.

32

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

Loan fees and closing costs for the mortgage debt on the Company's properties are amortized utilizing the effective interest rate method over the lives of the loans.

Acquisition Facility

On February 28, 2017, the Company entered into a credit agreement, or Acquisition Credit Agreement, with Freddie Mac through KeyBank to obtain an acquisition revolving credit facility, or Acquisition Facility, with a maximum borrowing capacity of $200 million. The purpose of the Acquisition Facility is to finance acquisitions of multifamily communities and student housing communities. The maximum borrowing capacity on the Acquisition Facility may be increased at the Company's request up to $300 million at any time prior to March 1, 2021. The Acquisition Facility accrues interest at a variable rate of one month LIBOR plus a margin of between 1.75% per annum and 2.20% per annum, depending on the type of assets acquired and the resulting property debt service coverage ratio. The Acquisition Facility has a maturity date of March 1, 2022 and has two one-year extension options, subject to certain conditions described therein. At September 30, 2017, unamortized loan fees and closing costs for the establishment of the Acquisition Facility were approximately $0.3 million, which will be amortized over a remaining loan life of approximately 4.5 years. As of September 30, 2017, the Acquisition Facility financed the SoL student housing property and the Retreat at Greystone and Aldridge at Town Village multifamily communities, totaling approximately $110.7 million.

Interest Expense

Interest expense, including amortization of deferred loan costs was:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Multifamily communities	$	9,515,838	$	7,852,145	$	26,620,941	$	21,006,486
New Market Properties	3,858,588		2,615,924		10,699,043		5,588,947
Preferred Office Properties	1,676,933		133,681		5,030,560		133,681
Interest paid to real estate loan participants	569,141		482,246		1,825,470		1,341,104
Total	15,620,500		11,083,996		44,176,014		28,070,218
Credit Facility and Acquisition Facility	1,057,918		1,150,178		3,909,002		2,618,287
Interest Expense	$	16,678,418	$	12,234,174	$	48,085,016	$	30,688,505

Future Principal Payments

The Company’s estimated future principal payments due on its debt instruments as of September 30, 2017 were:

Period	Future principal payments
2017	$	59,940,046	(1)
2018	45,147,144
2019	242,834,004
2020	64,621,789
2021	121,250,100
thereafter	1,116,771,170
Total	$	1,650,564,253
(1) Includes the principal amount due on the Company's Revolving Line of Credit of $43.0 million and Term Note of $11.0 million.

33

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

10. Income Taxes

The Company elected to be taxed as a REIT effective with its tax year ended December 31, 2011, and therefore, the Company will not be subject to federal and state income taxes after this effective date, so long as it distributes 100% of the Company's annual REIT taxable income (which does not equal net income as calculated in accordance with GAAP and determined without regard for the deduction for dividends paid and excluding net capital gains) to its shareholders. For the period preceding this election date, the Company's operations resulted in a tax loss. As of December 31, 2010, the Company had deferred federal and state tax assets totaling approximately $298,100, none of which were based upon tax positions deemed to be uncertain. These deferred tax assets will most likely not be used since the Company elected REIT status; therefore, management has determined that a 100% valuation allowance is appropriate as of September 30, 2017 and December 31, 2016.

11. Commitments and Contingencies

On March 28, 2014, the Company entered into a payment guaranty in support of its Manager's new eleven-year office lease, which began on October 9, 2014. As of September 30, 2017, the amount guarantied by the Company was $6.7 million and is reduced by $619,304 per lease year over the term of the lease.

Certain officers and employees of the Manager have been assigned company credit cards. As of September 30, 2017, the Company guarantied up to $640,000 on these credit cards.

The Company is otherwise currently subject to neither any known material commitments or contingencies from its business operations, nor any material known or threatened litigation.

A total of approximately $5.1 million of asset management and general and administrative fees related to acquired properties as of September 30, 2017 have been forfeited by the Manager.  The forfeited fees are converted at the time of forfeiture into contingent fees, which are earned by the Manger only in the event of a sales transaction, and whereby the Company’s capital contributions for the property being sold exceed a 7% annual rate of return.  The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  As of September 30, 2017, a total of $4.3 million remains contingent and could possibly be earned by the Manager in the future.  

At September 30, 2017, the Company had unfunded balances on its real estate loan portfolio of approximately $92.7 million.

12. Segment Information

The Company's Chief Operating Decision Maker, or CODM, evaluates the performance of the Company's business operations and allocates financial and other resources by assessing the financial results and outlook for future performance across four distinct segments: multifamily communities, real estate related financing, New Market Properties and Preferred Office Properties.

Multifamily Communities - consists of the Company's portfolio of owned residential multifamily communities and student housing properties.

Financing - consists of the Company's portfolio of real estate loans, bridge loans, and other instruments deployed by the Company to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. Excluded from the financing segment are financial results of the Company's Dawson Marketplace grocery-anchored shopping center real estate loan.

New Market Properties - consists of the Company's portfolio of grocery-anchored shopping centers, which are owned by New Market Properties, LLC, a wholly-owned subsidiary of the Company, as well as the financial results from the Company's grocery-anchored shopping center real estate loans.

Preferred Office Properties - consists of the Company's portfolio of office buildings.

34

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

The CODM monitors net operating income (“NOI”) on a segment and a consolidated basis as a key performance measure for its operating segments. NOI is defined as rental and other property revenue from real estate assets plus interest income from its loan portfolio less total property operating and maintenance expenses, property management fees, real estate taxes, property insurance, and general and administrative expenses. The CODM uses NOI as a measure of operating performance because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs, acquisition expenses, and other expenses generally incurred at the corporate level.  

The following tables present the Company's assets, revenues, and NOI results by reportable segment, as well as a reconciliation from NOI to net income (loss). The assets attributable to 'Other' primarily consist of  deferred offering costs recorded but not yet reclassified as reductions of stockholders' equity and cash balances at the Company and Operating Partnership levels.

	September 30, 2017		December 31, 2016
Assets:
Multifamily communities	$	1,452,181,360	$	1,166,766,664
Financing	465,505,478		379,070,918
New Market Properties	683,712,963		579,738,707
Preferred Office Properties	309,351,565		285,229,700
Other	16,967,902		10,026,613
Consolidated assets	$	2,927,719,268	$	2,420,832,602

Total capitalized expenditures (inclusive of additions to construction in progress, but exclusive of the purchase price of acquisitions) for the three months and nine months ended September 30, 2017 and 2016 were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Capitalized expenditures:
Multifamily communities	$	2,897,758	$	2,674,743	$	9,006,194	$	6,762,650
New Market Properties	1,225,189		565,010		2,763,764		1,679,766
Total	$	4,122,947	$	3,239,753	$	11,769,958	$	8,442,416

The Company also recognized second-generation capital expenditures within its office building portfolio of $25,883 for Brookwood Center and $78,593 for Galleria 75 during the third quarter 2017. Second-generation capital expenditures exclude those expenditures made in our office building portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our Class A ownership standards (and which amounts were underwritten into the total investment at the time of acquisition), (iii) for property re-developments and repositionings and (iv) for building improvements that are recoverable from future operating cost savings.

35

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Revenues
Rental revenues:
Multifamily communities	$	32,366,025	$	29,059,716	$	92,947,516	$	79,330,404
New Market Properties	11,051,695		7,767,052		30,967,411		16,718,701
Preferred Office Properties (1)	6,654,415		492,439		19,762,035		492,439
Total rental revenues	$	50,072,135	$	37,319,207	$	143,676,962	$	96,541,544
Other revenues:
Multifamily communities	$	3,624,000	$	3,195,237	$	10,173,457	$	8,611,136
New Market Properties	3,918,486		2,426,791		11,203,483		5,996,759
Preferred Office Properties	2,236,918		20,507		6,529,078		20,506
Total other revenues	9,779,404		5,642,535		27,906,018		14,628,401
Financing	15,048,660		10,575,595		40,769,467		29,957,117
Consolidated revenues	$	74,900,199	$	53,537,337	$	212,352,447	$	141,127,062
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia office building. As of September 30, 2017, the Company has deferred a total of $23.8 million of such improvements. The remaining balance to be recognized is approximately $23.4 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2017. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded noncash revenue of approximately $287,000 and $457,000 for the three-month and nine-month periods ended September 30, 2017.

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property operating and maintenance expense
Multifamily communities	$	5,566,320	$	4,552,744	$	14,602,003	$	11,757,778
New Market Properties	1,260,108		904,877		4,037,922		2,078,128
Preferred Office Properties	1,074,325		47,227		2,997,626		47,227
Total	$	7,900,753	$	5,504,848	$	21,637,551	$	13,883,133

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Salary and benefits reimbursement
Multifamily communities	$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403
New Market Properties	—		—		—		—
Preferred Office Properties	202,787		18,067		654,756		18,067
Total	$	3,402,623	$	2,808,402	$	9,649,843	$	7,688,470

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property management fees
Multifamily communities	$	1,412,908	$	1,366,159	$	4,154,123	$	3,542,237
New Market Properties	459,884		332,869		1,381,404		741,221
Preferred Office Properties	180,654		25,383		480,476		25,383
Total	$	2,053,446	$	1,724,411	$	6,016,003	$	4,308,841

36

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate taxes
Multifamily communities	$	4,808,502	$	3,792,370	$	14,872,841	$	13,034,764
New Market Properties	2,034,030		950,444		5,889,820		2,376,099
Preferred Office Properties	863,174		46,271		2,527,123		46,271
Total	$	7,705,706	$	4,789,085	$	23,289,784	$	15,457,134

	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
Segment net operating income (Segment NOI)
Multifamily communities	$	19,410,732	$	18,413,797		$	55,995,891		$	48,169,241
Financing	15,048,659		10,575,595			40,769,467			29,957,116
New Market Properties	10,928,364		7,795,476			29,990,860			17,048,716
Preferred Office Properties	6,211,853		373,454			18,715,713			373,454
Consolidated segment net operating income	51,599,608		37,158,322			145,471,931			95,548,527
Interest and loss on early debt extinguishment:
Multifamily communities	9,515,838		7,852,145			26,620,941			21,006,486
New Market Properties	3,858,588		2,615,924			10,699,043			5,588,947
Preferred Office Properties	1,676,934		133,681			5,030,560			133,681
Financing	1,627,058		1,632,424			5,734,472			3,959,391
Depreciation and amortization:
Multifamily communities	18,018,869		16,028,880			50,850,768			42,800,401
New Market Properties	7,611,979		5,452,490			21,714,453			11,997,670
Preferred Office Properties	3,272,922		182,993			9,621,739			182,993
Professional fees	525,539		593,623			1,551,192			2,176,510
Management fees, net of forfeitures	4,491,662		3,022,124			13,522,653			8,025,916
Acquisition costs:
Multifamily communities	—		601,033			(20,559		)	4,645,530
New Market Properties	—		396,679			25,402			1,856,933
Preferred Office Properties	—		359,825			9,159			383,401
Equity compensation to directors and executives	863,412		638,414			2,607,667			1,867,706
Gain on sale of real estate	—		—			37,635,014			4,271,506
Loss on extinguishment of debt	—		—			(888,428		)	—
Other	94,028		336,707			842,566			1,055,099
Net income (loss)	$	42,779	$	(2,688,620	)	$	33,408,461		$	(5,860,631	)

37

Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

13. Income (Loss) Per Share

The following is a reconciliation of weighted average basic and diluted shares outstanding used in the calculation of income (loss) per share of Common Stock:

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Numerator:
	Net income (loss) before gain on sale of real estate	$	42,779		$	(2,688,620	)	$	(4,226,553	)	$	(10,132,137	)
	Gain on sale of real estate, net of disposition expenses	—			—			37,635,014			4,271,506
	Net income (loss)	42,779			(2,688,620		)	33,408,461			(5,860,631		)
	Consolidated net (income) loss attributable to non-controlling	(1,119		)	86,484			(1,097,008		)	175,045
	interests (A)
	Net income (loss) attributable to the Company	41,660			(2,602,136		)	32,311,453			(5,685,586		)
	Dividends declared to preferred stockholders (B)	(16,420,996		)	(11,015,706		)	(46,042,181		)	(28,341,723		)
	Earnings attributable to unvested restricted stock (C)	(4,302		)	(6,159		)	(11,743		)	(12,434		)
	Net income (loss) attributable to common stockholders	$	(16,383,638	)	$	(13,624,001	)	$	(13,742,471	)	$	(34,039,743	)
Denominator:
	Weighted average number of shares of Common Stock - basic	33,539,920			24,340,791			30,147,497			23,552,951
	Effect of dilutive securities: (D)	—			—			—			—
	Weighted average number of shares of Common Stock,
	basic and diluted	33,539,920			24,340,791			30,147,497			23,552,951
	Net loss per share of Common Stock attributable to
	common stockholders, basic and diluted	$	(0.49	)	$	(0.56	)	$	(0.46	)	$	(1.45	)

^(A) The Company's outstanding Class A Units of the Operating Partnership (901,195 and 886,168 Units at September 30, 2017 and 2016, respectively) contain rights to distributions in the same amount per unit as for dividends declared on the Company's Common Stock. The impact of the Class A Unit distributions on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Class A Units based on dividends declared and the Class A Units' participation rights in undistributed earnings.

^(B) The Company’s shares of Series A Preferred Stock outstanding accrue dividends at an annual rate of 6% of the stated value of $1,000 per share, payable monthly. The Company had 1,115,616 and 802,032 outstanding shares of Series A Preferred Stock at September 30, 2017 and 2016, respectively. The Company's shares of Series M preferred stock, or mshares, accrue dividends at an escalating rate of 5.75% in year one to 7.5% in year eight and thereafter. The Company had 12,396 mshares outstanding at September 30, 2017.

^(C) The Company's outstanding unvested restricted share awards (18,306 and 23,247 shares of Common Stock at September 30, 2017 and 2016, respectively) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings. Given the Company incurred a net loss from continuing operations for the three-month and nine-month periods ended September 30, 2017 and 2016, the dividends declared for that period are adjusted in determining the calculation of loss per share of Common Stock since the unvested restricted share awards are defined as participating securities.

^(D) Potential dilution from (i) warrants outstanding from issuances of Units from our Series A Preferred Stock offerings that are potentially exercisable into 16,931,180 shares of Common Stock; (ii) 345,789 Class B Units; (iii) 18,306 shares of unvested restricted common stock; and (iv) 23,700 outstanding Restricted Stock Units are excluded from the diluted shares calculations because the effect was antidilutive. Class A Units were excluded from the denominator because earnings were allocated to non-controlling interests in the calculation of the numerator.

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

14. Pro Forma Financial Information (unaudited)

The Company’s condensed pro forma financial results assume the following acquisitions were hypothetically completed on January 1, 2015:

Baldwin Park	City Vista
Crosstown Walk	Sorrel
Overton Rise	Lakeland Plaza
525 Avalon Park	Sunbelt Seven Portfolio
North by Northwest	Champions Village
Wade Green Village	Brookwood Office
Southeastern Six Portfolio	Galleria 75
The Market at Victory Village	Three Ravinia

The Company’s condensed pro forma financial results were:

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Pro forma:
	Revenues	$	74,970,784		$	63,754,083		$	212,542,233		$	189,494,650
	Net income (loss)	$	996,408		$	(255,917	)	$	38,270,000		$	(5,957,523	)
	Net income (loss) attributable to the Company	$	958,120		$	(240,446	)	$	37,029,878		$	(5,799,045	)
	Net income (loss) attributable to common stockholders	$	(15,467,178	)	$	(11,262,311	)	$	(9,024,046	)	$	(34,205,524	)
	Net income (loss) per share of Common Stock
	attributable to common stockholders,
	Basic and diluted	$	(0.46	)	$	(0.46	)	$	(0.30	)	$	(1.45	)
	Weighted average number of shares of Common Stock
	outstanding, basic and diluted	33,539,920			24,340,791			30,147,497			23,522,951

Material nonrecurring pro forma adjustments which were directly attributable to these business combinations included the pro forma removal of all acquisition costs incurred from the actual historical periods of recognition of approximately $1.3 million and $6.8 million for the three-month and nine-month periods ended September 30, 2016. Effective January 1, 2017, we adopted Accounting Standard Update 2017-01, which requires acquisition costs for asset acquisitions to be capitalized and and amortized rather than expensed as incurred. These pro forma results are not necessarily indicative of what historical performance would have been had these business combinations been effective as of the hypothetical acquisition dates listed above, nor should they be interpreted as expectations of future results.

15. Fair Values of Financial Instruments

Fair value is defined as the price at which an asset or liability is exchanged between market participants in an orderly transaction at the reporting date. The Company’s cash equivalents, notes receivable, accounts receivable and payables and accrued expenses all approximate fair value due to their short term nature.

The following tables provide estimated fair values of the Company’s financial instruments. The carrying values of the Company's real estate loans include accrued interest receivable from additional interest or exit fee provisions and are presented net of deferred loan fee revenue, where applicable.

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Preferred Apartment Communities, Inc.

Notes to Consolidated Financial Statements – (continued)

September 30, 2017

	As of September 30, 2017
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	409,204,915	$	455,909,983	$	—	$	—	$	455,909,983
Notes receivable and line of credit receivable	42,351,496		42,351,496		—		—		42,351,496
	$	451,556,411	$	498,261,479	$	—	$	—	$	498,261,479
Financial Liabilities:
Mortgage notes payable	$	1,596,564,253	$	1,595,108,853	$	—	$	—	$	1,595,108,853
Revolving credit facility	43,000,000		43,000,000		—		—		43,000,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	17,877,914		18,218,715		—		—		18,218,715
	$	1,668,442,167	$	1,667,327,568	$	—	$	—	$	1,667,327,568

	As of December 31, 2016
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	332,761,068	$	374,856,749	$	—	$	—	$	374,856,749
Notes receivable and line of credit receivable	37,615,675		37,615,675		—		—		37,615,675
	$	370,376,743	$	412,472,424	$	—	$	—	$	412,472,424
Financial Liabilities:
Mortgage notes payable (2)	$	1,327,878,112	1,314,966,652		$	—	$	—	$	1,314,966,652
Revolving credit facility	127,500,000		127,500,000		—		—		127,500,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	20,761,819		21,500,448		—		—		21,500,448
	$	1,487,139,931	$	1,474,967,100	$	—	$	—	$	1,474,967,100

⁽¹⁾ The carrying value of real estate assets includes the Company's balance of the Palisades, Green Park, Encore and Stadium Village real estate loans, which includes the amounts funded by unrelated participants. The loan participation obligations are the amounts due to the participants under these arrangements. Accrued interest included in the carrying values of the Company's real estate loans was approximately $27.7 million and $21.9 million at September 30, 2017 and December 31, 2016, respectively.

The fair value of the real estate loans within the level 3 hierarchy are comprised of estimates of the fair value of the notes, which were developed utilizing a discounted cash flow model over the remaining terms of the notes until their maturity dates and utilizing discount rates believed to approximate the market risk factor for notes of similar type and duration. The fair values also contain a separately-calculated estimate of any applicable additional interest payment due the Company at the maturity date of the loan, based on the outstanding loan balances at September 30, 2017, discounted to the reporting date utilizing a discount rate believed to be appropriate for multifamily development projects.

The fair values of the fixed rate mortgages on the Company’s properties were developed using market quotes of the fixed rate yield index and spread for four, five, seven, ten and 35 year notes as of the reporting date. The present values of the cash flows were calculated using the original interest rate in place on the fixed rate mortgages and again at the current market rate. The difference between the two results was applied as a fair market adjustment to the carrying value of the mortgages.

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16. Subsequent Events

Between October 1, 2017 and October 31, 2017, the Company issued 31,122 Units and collected net proceeds of approximately $28.0 million after commissions and fees under its $1.5 Billion Unit Offering. Between October 1, 2017 and October 31, 2017, the Company issued 841 shares of Series M Preferred Stock and collected net proceeds of approximately $816,000 after commissions and fees under the mShares offering.

On October 23, 2017 the Company declared a quarterly dividend on its Common Stock of $0.25 per share, payable on January 16, 2018 to stockholders of record on December 15, 2017.

On October 27, 2017, the Company acquired a 98% interest in a joint venture which owns the Stadium Village student housing property in Atlanta, Georgia. The Company's real estate loan with an outstanding principal amount of approximately $13.3 million was repaid in conjunction with this transaction.

On October 27, 2017, the Company's real estate loan supporting the 18 Nineteen property in Lubbock, Texas with an outstanding principal amount of approximately $15.6 million was repaid in full. The 18 Nineteen property was sold to a third party on October 19, 2017.

On October 31, 2017, the Company refinanced the mortgage on the Aldridge at Town Village multifamily community from its Acquisition Facility into a permanent mortgage with a principal amount of $37.9 million and which bears interest at a fixed rate of 4.19% per annum.

On October 31, 2017, the Company refinanced the mortgage on the Summit Crossing multifamily community with a remaining principal amount of $24.7 million into a new mortgage of $39.1 million which bears interest at a fixed rate of 3.99% per annum.

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Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

Significant Developments

During the nine-month period ended September 30, 2017, we acquired eight multifamily communities, six grocery-anchored shopping centers and one student housing property. The aggregate purchase price of these properties was approximately $538.5 million.

During the nine-month period ended September 30, 2017, we sold our Sandstone Creek, Ashford Park and Enclave at Vista Ridge multifamily communities located in Kansas City, Kansas, Atlanta, Georgia and Dallas, Texas respectively, and collected aggregate gross proceeds of $157.6 million. We realized an aggregate gain on the sale of these properties of approximately $37.6 million and an average total return on these properties of approximately 26.5%.

The proceeds from the sale of Ashford Park were deposited into a 1031 exchange account and were used to partially finance the acquisitions of Founders Village, Retreat at Greystone and Castleberry-Southard. The 1031 mechanism allowed us to defer the tax liability on the sale of this asset and more efficiently redeploy our capital.

As of September 30, 2017, we had cumulatively issued 989,408 units and collected net proceeds of approximately $891.2 million from our offering of our Series A Redeemable Preferred Stock from our Primary Series A Offering and Follow-on Series A Offering. As of September 30, 2017, we had cumulatively issued 151,923 units and collected net proceeds of approximately $136.5 million from our offerings of Series A Redeemable Preferred Stock from our $1.5 Billion Unit Offering. As of September 30, 2017, we had cumulatively issued 12,396 shares of Series M Preferred Stock and and collected net proceeds of approximately $11.8 million from our mShares Offering. Our Follow-On Series A Offering sold its entire allotment of $900 million Units and was closed on February 14, 2017. Our Series A Redeemable Preferred Stock and our new equity offerings are discussed in detail in the Liquidity and Capital Resources section of this Management's Discussion and Analysis of Financial Condition and Results of Operations.

On May 12, 2017, we issued 2,750,000 shares of our common stock, par value $0.01 per share, or Common Stock, at a public offering price of $15.25 per share pursuant to an underwritten public offering. On May 30, 2017, we sold an additional 412,500 shares of Common Stock at $15.25 per share pursuant to the underwriters' exercise in full of an option received in connection with the public offering. The combined gross proceeds of the two sales was approximately $48.2 million before deducting underwriting discounts and commissions and other estimated offering expenses.

During the nine-month period ended September 30, 2017, we sold 1.7 million shares of Common Stock pursuant to our "at the market" offering (the "2016 ATM Offering"), resulting in aggregate gross proceeds of approximately $28.6 million.

In addition, during the nine-month period ended September 30, 2017, we issued approximately 3.4 million shares of Common Stock upon the exercise of Warrants issued in our offerings of our Series A Redeemable Preferred Stock and collected net proceeds of approximately $43.4 million from those exercises.

Forward-looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q, including, without limitation, statements containing the words "believes," "anticipates," "intends," "expects," "assumes," "goals," "guidance," "trends" and similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon our current plans, expectations and projections about future events. However, such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following:

•     our business and investment strategy;

•     our projected operating results;

• actions and initiatives of the U.S. Government and changes to U.S. Government policies and the execution and impact of these actions, initiatives and policies;

•     the state of the U.S. economy generally or in specific geographic areas;

•     economic trends and economic recoveries;

• our ability to obtain and maintain financing arrangements, including through the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac;

•     financing and advance rates for our target assets;

•     our expected leverage;

•     changes in the values of our assets;

•     our expected portfolio of assets;

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•     our expected investments;

•     interest rate mismatches between our target assets and our borrowings used to fund such investments;

•     changes in interest rates and the market value of our target assets;

•     changes in prepayment rates on our target assets;

•     effects of hedging instruments on our target assets;

•     rates of default or decreased recovery rates on our target assets;

•changes in our operating costs, including real estate taxes, utilities and insurance costs;

•     the degree to which our hedging strategies may or may not protect us from interest rate volatility;

•     impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters;

•     our ability to maintain our qualification as a real estate investment trust, or REIT, for U.S. federal income tax purposes;

•     our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended;

•     availability of investment opportunities in mortgage-related and real estate-related investments and securities;

•     availability of qualified personnel;

•     estimates relating to our ability to make distributions to our stockholders in the future;

•     our understanding of our competition;

•     market trends in our industry, interest rates, real estate values, the debt securities markets or the general economy;

• weakness in the national, regional and local economies, which could adversely impact consumer spending and retail sales and in turn tenant demand for space and could lead to increased store closings;

• changes in market rental rates;

• changes in demographics (including the number of households and average household income) surrounding our shopping centers;

• adverse financial conditions for grocery anchors and other retail, service, medical or restaurant tenants;

• continued consolidation in the grocery-anchored shopping center sector;

• excess amount of retail space in our markets;

• reduction in the demand by tenants to occupy our shopping centers as a result of reduced consumer demand for certain retail formats;

• the growth of super-centers and warehouse club retailers, such as those operated by Wal-Mart and Costco, and their adverse effect on traditional grocery chains;

• the entry of new market participants into the food sales business, such as Amazon's acquisition of Whole Foods, the growth of online food delivery services and online supermarket retailers and their collective adverse effect on traditional grocery chains;

• our ability to aggregate a critical mass of grocery-anchored shopping centers or to spin-off, sell or distribute them;

• the impact of an increase in energy costs on consumers and its consequential effect on the number of shopping visits to our centers; and

• consequences of any armed conflict involving, or terrorist attack against, the United States.

Forward-looking statements are found throughout this "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Quarterly Report on Form 10-Q. The reader should not place undue reliance on forward-looking statements, which speak only as of the date of this report. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, or SEC, we do not have any intention or obligation to publicly release any revisions to forward-looking statements to reflect unforeseen or other events after the date of this report. The forward-looking statements should be read in light of the risk factors indicated in the section entitled "Risk Factors" in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016 and as may be supplemented by any amendments to our risk factors in our subsequent quarterly reports on Form 10-Q and other reports filed with the SEC, which are accessible on the SEC’s website at www.sec.gov.

General

The following discussion and analysis provides information that we believe is relevant to an assessment and understanding of our results of operations and financial position. This discussion and analysis should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q.

Overview

We are an externally managed Maryland corporation formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of our business strategy, we may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and we may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, we also may acquire or originate senior mortgage loans, subordinate loans or real estate loan investments secured by interests in multifamily properties, membership or partnership interests

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in multifamily properties and other multifamily related assets and invest a lesser portion of our assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loans secured by interests in other income-producing property types, or membership or partnership interests in other income-producing property types as determined by Preferred Apartment Advisors, LLC, or our Manager, as appropriate for us. Our investment guidelines limit our investment in these non-multifamily assets to 20% of our assets, subject to increases unanimously approved by our board of directors. On December 12, 2016, our board of directors temporarily suspended this 20% limit. Our board of directors will review and discuss the reinstatement of the 20% limit following a spin-off, sale or distribution of our grocery-anchored shopping centers, if any such transaction occurs.

We seek to generate returns for our stockholders by taking advantage of the current environment in the real estate market and the United States economy by acquiring multifamily assets and shopping centers in our targeted markets.  The current economic environment still provides many challenges for new development, which provides opportunity for current multifamily product to potentially enjoy stable occupancy rates and rising rental rates as the overall economy continues to grow.  As the real estate market and economy stabilize, we intend to employ efficient management techniques to grow income and create asset value.

As market conditions change over time, we intend to adjust our investment strategy to adapt to such changes as appropriate. We continue to believe there are abundant opportunities among our target assets that currently present attractive risk-return profiles. However, in order to capitalize on the investment opportunities that may be present in the various other points of an economic cycle, we may expand or change our investment strategy and target assets. We believe that the diversification of the portfolio of assets that we intend to acquire, our ability to acquire and manage our target assets, and the flexibility of our strategy will position us to generate attractive total returns for our stockholders in a variety of market conditions.

We elected to be taxed as a REIT under the Code effective with our tax year ended December 31, 2011. We also intend to operate our business in a manner that will permit us to maintain our status as a REIT and our exemption from registration under the Investment Company Act. We have and will continue to conduct substantially all of our operations through our Operating Partnership in which we owned an approximate 97.3% interest as of September 30, 2017. New Market Properties, LLC owns and conducts the business of our portfolio of grocery-anchored shopping centers. Preferred Office Properties, LLC owns and conducts the business of our portfolio of office buildings. Preferred Campus Communities, LLC owns and conducts the business of our portfolio of off-campus student housing communities. Each of these entities are wholly-owned subsidiaries of the Operating Partnership,

Industry Outlook

We believe continued, albeit potentially sporadic, improvement in the United States' economy will continue for 2017, with continued job growth and improvements in consumer confidence. The new presidential administration certainly creates more uncertainty in the direction and trajectory of economic growth. We believe a growing economy, improved job market and increased consumer confidence should help create favorable conditions for the multifamily sector. If the economy continues to improve, we expect current occupancy rates generally to remain stable, on an annual basis, as the current level of occupancy nationwide will be difficult to measurably improve upon.

                The pipeline of new multifamily construction, although increasing nationwide in recent years, may be showing signs of declining going forward.  The new supply coming on line to date has been generally in line with demand in most of our markets. Nationally, new multifamily construction is currently at or above average historical levels in most markets. Even with the increase in new supply of multifamily properties, recent job growth and demographic trends have led to reasonable levels of absorption in most of our markets, which in many of our markets has offset or exceeded the new supply coming online.  The absorption rate has led to generally stable occupancy rates with increases in rental rates in most of our markets. We believe the supply of new multifamily construction will not increase dramatically as the constraints in the market (including availability of quality sites and the difficult permitting and entitlement process) will constrain further increases in multifamily supply.  It may even be the case that new supply peaks in 2017 and these constraints cause a decline in new multifamily “starts” in 2018 and 2019.  As an offset, the new presidential administration may loosen banking regulation standards, which could cause an increase in available capital for new construction.  Any relaxing of these regulations could lead to more capital for new multifamily development and an increase in supply.

               We believe that a potential reversal in the recent trend of declining cap rates in the multifamily sector may be in the offing. The rising cost of private capital, less debt capital available from traditional commercial banks for real estate loans and a softening of the market in some “Gateway” cities have all put pressure on the pricing dynamic in multifamily transactions.  This could lead to an increase in capitalization rates and a softening price environment, and if this were to occur, then our pipeline of candidate multifamily property acquisitions with returns meeting our investment objectives may expand. 

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               We believe that the grocery-anchored shopping center sector benefits from many of the same improving metrics as the

multifamily sector, namely improved economy and job and wage growth. More specifically, the types of centers we own and plan to acquire are primarily occupied by grocery stores, service uses, medical providers and restaurants. We believe that these businesses are significantly less impacted by e-commerce than some other retail businesses, and that grocery anchors typically generate repeat trips to the center. We expect that improving macroeconomic conditions, coupled with continued population growth in the suburban markets where our retail properties are located, will create favorable conditions for grocery shopping and other uses provided by grocery-anchored shopping centers. With moderate supply growth following a period of historically low retail construction starts, we believe our centers, which are all generally located in Sun Belt markets, are well positioned to have solid operating fundamentals.

                The debt market for our grocery-anchored shopping center assets remains strong. Life insurance companies have continued to demonstrate a specific interest in our strategy and we continue to see new participants in the market. Spreads and rates are generally comparable or even more favorable to those for multifamily properties, however, the leverage levels on the retail assets may be lower than the levels on our multifamily assets. During the third quarter we have seen cap rate compression on acquisitions we have been pursuing inside our grocery anchored strategy. We believe, notwithstanding the increase in longer-term U.S. Treasury yields since the 2016 election, that the overall capital markets are pricing in stronger rent growth and higher long term occupancy levels, especially so in the grocery-anchored sector. In addition, due to some investor concern over retail in general, that allocation of capital into retail has been largely focused away from other retail product types and into the grocery-anchored sector. The result of this is that increased capital flows moving into the grocery-anchored sector has investors willing to accept lower yields to do so, thus putting upward pressure on prices for attractive acquisition opportunities inside our grocery-anchored strategy.

                On August 28, 2017, Amazon acquired Whole Foods for $13.7 billion. We believe this to be a net positive to our grocery- anchored strategy in that it demonstrates the importance of the “brick and mortar” delivery model for the grocery sector. Amazon is widely regarded as one of the most technically advanced and savvy retailers and its $13.7 billion cash investment in a brick and mortar distribution network we believe validates the unique challenges of trying to execute a pure on-line strategy for grocery delivery.  Most of the growth in e-commerce around grocers is focused on “the last mile” or getting the goods in the stores to the homes of the customer.  Some of our grocers have partnered with third parties (Publix/Instacart) or formulated internal solutions (Walmart/in-store pickup and Kroger/ClickList) to help advance this segment of their business.  We believe that the traditional grocers must be proactive in pursuing on-line solutions in combination with their bricks and mortar physical stores.  We do believe that this transaction, and the impacts from it, could result in increased margin pressure on grocers and will likely accelerate the difficulties of the weaker grocery chains.  Furthermore this could lead to increased mergers and acquisitions activity in the grocery sector which could also result in store closings or store downsizings due to store trade area overlap.

                Favorable U.S. Treasury yields and competitive lender spreads have created a generally favorable borrowing environment for multifamily owners and developers. Given the uncertainty around the world's financial markets, fueled in part by the new US President and how his policies may affect domestic and international markets, investors have been wary in their approach to debt markets.  Recent US bond market movements have moderated and spreads from the government-sponsored entity, or GSE, lenders have been relatively stable to slightly lower.  Other lenders in the market have had generally stable rates as well. As the year comes to a close, we may well see a decline in spreads as the investment community becomes more comfortable with the direction of the market and the US economy. Even with the recent volatility in U.S. Treasury rates, we expect the market to continue to remain favorable for financing multifamily communities, as the equity and debt markets have generally continued to view the U.S. multifamily sector as a desirable investment. Lending by GSEs could be limited by caps imposed by the Federal Housing and Finance Association, which could lead to higher lending costs, although we expect such higher costs to be offset by increased lending activity by other market participants; however, such other market participants may have increased costs and stricter underwriting criteria.

                We believe the combination of a difficult regulatory environment and high underwriting standards for commercial banks will continue to create a choppy market for new construction financing.  In addition, we believe the continued hesitance among many prospective homebuyers to believe the net benefits of home ownership are greater than the benefit of the flexibility offered through renting will continue to work in the existing multifamily sector's favor.  We also believe there will be a continued boost to demand for multifamily rental housing due to the ongoing entry of the “millennial” generation, the sons and daughters of the baby-boom generation, into the workforce. This generation has a higher statistical propensity to rent their home and stay a renter deeper into their life-cycle, resulting in an increase in demand for rental housing. This combination of factors should generally result in gradual increases in market rents, lower concessions and opportunities for increases in ancillary fee income.

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Critical Accounting Policies

In addition to those discussed in our Annual Report on Form 10-K for the year ended December 31, 2016, below is a discussion of the accounting policies that management believes are critical. We consider these policies critical because they involve significant management judgments, assumptions and estimates about matters that are inherently uncertain and because they are important for understanding and evaluating our reported financial results. These judgments affect the reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our financial statements. Additionally, other companies may utilize different estimates that may impact the comparability of our results of operations to those of companies in similar businesses.

Real Estate

Cost Capitalization. Investments in real estate properties are carried at cost and depreciated using the straight-line method over the estimated useful lives of 30 to 50 years for buildings, 5 to 20 years for building and land improvements and 5 to 10 years for computers, furniture, fixtures and equipment. Acquisition costs are generally expensed as incurred for transactions that are deemed to be business combinations. ASU 2017-01, which was released in January 2017, changes the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. We adopted ASU 2017-01 as of January 1, 2017 and believe our future acquisitions of multifamily communities, office buildings, grocery-anchored shopping centers, and student housing communities will generally qualify as asset acquisitions. Pursuant to ASU 2017-01, certain qualifying acquisition costs will be capitalized and amortized rather than expensed as incurred.

Repairs, maintenance and resident turnover costs are charged to expense as incurred and significant replacements and betterments are capitalized and depreciated over the items' estimated useful lives. Repairs, maintenance and resident turnover costs include all costs that do not extend the useful life of the real estate property. We consider the period of future benefit of an asset to determine its appropriate useful life.

Real Estate Acquisition Valuation. We generally recorded the acquisition of income-producing real estate as a business combination through December 31, 2016. In conjunction with our adoption of ASU 2017-01, future acquisitions will require judgment to properly classify these acquisitions as asset acquisitions or business acquisitions.

All assets acquired and liabilities assumed in a business combination are measured at their acquisition-date fair values.

We assess the acquisition-date fair values of all tangible assets, identifiable intangibles and assumed liabilities using methods similar to those used by independent appraisers (e.g., discounted cash flow analysis) and that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant.

We record above-market and below-market in-place lease values for acquired properties based on the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining average non-cancelable term of the leases. We amortize any recorded above-market or below-market lease values as a reduction or increase, respectively, to rental income over the remaining average non-cancelable term of the respective leases.

Intangible assets include the value of in-place leases, which represents the estimated value of the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. These estimates include estimated carrying costs, such as real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the hypothetical expected lease-up periods. Acquired in-place lease values for multifamily communities are amortized to operating expense over the average remaining non-cancelable term of the respective in-place leases.

The fair values of in-place leases for grocery-anchored shopping centers and office buildings represent the value of direct costs associated with leasing, including opportunity costs associated with lost rentals that are avoided by acquiring in-place leases. Direct costs associated with obtaining a new tenant include commissions, legal and marketing costs, incentives such as tenant improvement allowances and other direct costs. Such direct costs are estimated based on our consideration of current market costs to execute a similar lease. The value of opportunity costs is estimated using the estimated market lease rates and the estimated absorption period of the space. These direct costs and opportunity costs are included in the accompanying consolidated balance sheets as acquired intangible assets and are amortized to expense over the remaining term of the respective leases. The fair values of above-market and below-market in-place leases for grocery-anchored shopping centers and office buildings are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) our estimate of fair market lease rates for the

46

corresponding in-place leases, measured over a period equal to the remaining term of the leases, taking into consideration the probability of renewals for any below-market leases. The capitalized above-market leases and in place leases are included in the acquired intangible assets line of the consolidated balance sheets. Both above-market and below-market lease values are amortized as adjustments to rental revenue over the remaining term of the respective leases for office buildings. The amortization period for grocery-anchored shopping center leases is the remaining lease term plus any below market probable renewal options.

Estimating the fair values of the tangible assets, identifiable intangibles and assumed liabilities requires us to make significant assumptions to estimate market lease rates, property-operating expenses, carrying costs during lease-up periods, discount rates, market absorption periods, the number of years the property will be held for investment and market interest rates. The use of different assumptions would result in variations of the values of our acquired tangible assets, identifiable intangibles and assumed liabilities, which would impact their subsequent amortization and ultimately our net income.

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a single comprehensive revenue recognition model for contracts with customers (excluding certain contracts, such as lease contracts) to improve comparability within industries. ASU 2014-09 requires an entity to recognize revenue to reflect the transfer of goods or services to customers at an amount the entity expects to be paid in exchange for those goods and services and provide enhanced disclosures, all to provide more comprehensive guidance for transactions such as service revenue and contract modifications. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018, when effective. In addition, the evaluation of non-lease components under ASU 2014-09 will not be effective until Accounting Standards Update No. 2016-02, Leases (Topic 842), ("ASU 2016-02") becomes effective (see further discussion below), which will be first quarter of 2019 for the Company. The Company has determined that approximately 90% of its revenues from its New Market Properties and office building segments are derived from either long-term leases with its tenants or reimbursement of property tax and insurance expenses, which are excluded from the scope of the ASU 2014-09. Of the remaining 10% of New Market Properties and office building segment revenues, the majority is comprised of common area maintenance (“CAM”) reimbursements, which is a non-lease component under ASU 2014-09 and therefore within its scope of adoption. Based on management's assessment to date, the Company does not expect the timing of the recognition of reimbursement revenue and other miscellaneous income to change as a result of the new guidance, though certain classifications will change between rental revenue and tenant reimbursements. Similarly, the Company's multifamily communities segment derives the majority of its revenues from rental operations, to which this standard is not applicable. However, the Company does provide non-rental services to its residents related to ancillary services and is currently evaluating the various revenue streams to identify any potential sources which may require bifurcation and reclassification. The Company is continuing to evaluate the impact the adoption of ASU 2014-09 will have on its results of operations and financial condition.

In January 2016, the FASB issued Accounting Standards Update 2016-01 ("ASU 2016-01"), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The new standard's applicable provisions to the Company include an elimination of the disclosure requirement of the significant inputs and assumptions underlying the fair value calculations of its financial instruments which are carried at amortized cost. The standard is effective on January 1, 2018, and early adoption is not permitted. The adoption of ASU 2016-01 will not impact the Company's results of operations or financial condition.

In February 2016, the FASB issued Accounting Standards Update 2016-02 ("ASU 2016-02"), Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and supersedes the previous standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company anticipates adopting ASC 842 utilizing the modified retrospective method and is continuing to evaluate the impacts this standard will have on its results of operations and financial condition.

In June 2016, the FASB issued Accounting Standards Update 2016-13 ("ASU 2016-13"), Financial Instruments—Credit Losses

(Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial instruments carried at amortized cost to be presented at the net amount expected to be collected, utilizing a valuation account which reflects the cumulative net adjustments from the gross amortized cost value. Under existing GAAP, entities would not record a valuation allowance until a loss was probable of occurring. The standard is effective for the Company on January 1, 2020. The Company is currently evaluating methods of deriving initial valuation accounts to be applied to its real estate loan portfolio. The Company is continuing to evaluate

47

the pending guidance but does not believe the adoption of ASU 2016-13 will have a material impact on its results of operations or financial condition, since the Company has not yet experienced a credit loss related to any of its financial instruments.

In August 2016, the FASB issued Accounting Standards Update 2016-15 ("ASU 2016-15"), Statement of Cash Flows—(Topic 326): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies or establishes guidance for the presentation of various cash transactions on the statement of cash flows. The portion of the guidance applicable to the Company's business activities include the requirement that cash payments for debt prepayment or debt extinguishment costs be presented as cash out flows for financing activities. The standard is effective for the Company on January 1, 2018. The adoption of ASU 2016-15 will not impact the Company’s consolidated financial statements, since its current policy is to classify such costs as cash out flows for financing activities. 

In November 2016, the FASB issued Accounting Standards Update 2016-18 ("ASU 2016-18"), Statement of Cash Flows—(Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company plans to adopt ASU 2016-18 on January 1, 2018. The Company currently reports changes in restricted cash within the investing activities section of its consolidated statements of cash flows and does not expect the adoption of ASU 2016-18 to impact its results of operations and financial condition.

In January 2017, the FASB issued Accounting Standards Update 2017-01 ("ASU 2017-01"), Business Combinations - (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted ASU 2017-01 as of January 1, 2017. The Company believes its future acquisitions of multifamily communities, office buildings, grocery-anchored shopping centers, and student housing properties will generally qualify as asset acquisitions. To the extent acquisitions are deemed to be asset acquisitions, acquisition costs have been and will be capitalized and amortized rather than expensed as incurred. The impact of the adoption of ASU 2017-01 was an decrease of approximately $3.4 million of the Company's reported net income available to common stockholders for the three-month period ended September 30, 2017 and a decrease of approximately $6.1 million of the Company's reported net loss available to common stockholders for the nine-month period ended September 30, 2017 than it would have under previous guidance.

In February 2017, the FASB issued Accounting Standards Update 2017-05 (“ASU 2017-05”), Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets, and is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017.  The new standard may be applied retrospectively to each prior period presented or under the modified retrospective method, with the cumulative effect recognized as of the date of adoption. The Company currently expects to adopt ASU 2017-05 utilizing the modified retrospective method and is continuing to evaluate the effect the adoption of ASU 2017-05 will have on its results of operations and financial condition.

Results of Operations

Certain financial highlights of our results of operations for the three-month and nine-month periods ended September 30, 2017 were:

	Three months ended September 30,								Nine months ended September 30,
	2017			2016			% change		2017			2016			% change
Revenues	$	74,900,199		$	53,537,337		39.9	%	$	212,352,447		$	141,127,062		50.5	%
Per share data:
Net income (loss) (1)	$	(0.49	)	$	(0.56	)	(12.5	)%	$	(0.46	)	$	(1.45	)	(68.3	)%
FFO (2)	$	0.36		$	0.31		16.1	%	$	1.01		$	0.66		53.0	%
Core FFO (2)	$	0.38		$	0.38		—	%	$	1.11		$	0.99		12.1	%
Dividends (3)	$	0.235		$	0.2025		16.0	%	$	0.69		$	0.5975		15.5	%

⁽¹⁾Per weighted average share of Common Stock outstanding for the periods indicated.

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⁽²⁾FFO and Core FFO are presented per weighted average share of Common Stock and Class A Unit in our Operating Partnership outstanding for the periods indicated.

⁽³⁾ Per share of Common Stock and Class A Unit outstanding.

Funds from operations ("FFO") for the three months ended September 30, 2016 reflect acquisition-related costs of approximately $1.4 million, or $0.05 per share. In 2017, the majority of these type of costs are deferred and amortized over the life of the acquired assets (see "2017 Guidance" section). Core Funds From Operations Attributable to Common Stockholders and Unitholders ("Core FFO") excludes acquisition costs and certain other costs not representative of our ongoing operations. Adjusted Funds From Operations Attributable to Common Stockholders and Unitholders ("AFFO") removes significant non-cash revenues and expenses from our Core FFO results.

• For the third quarter 2017, our Core FFO payout ratio to our Common Stockholders and Unitholders was approximately 64.5% and our AFFO payout ratio to Common Stockholders and Unitholders was approximately 88.2%. ⁽¹⁾ 

• For the third quarter 2017, our Core FFO payout ratio (before the deduction of preferred dividends) to our Series A Preferred Stockholders was approximately 55.9% and our AFFO payout ratio (before the deduction of preferred dividends) to our Series A Preferred Stockholders was approximately 63.4%. ⁽¹⁾ 

• As of September 30, 2017, our total assets were approximately $2.9 billion compared to approximately $2.1 billion as of September 30, 2016, an increase of approximately $0.8 billion, or approximately 37.9%. This growth was driven primarily by the net addition of 15 real estate properties and an increase of approximately $104.3 million of the funded amount of our real estate loan investment portfolio since September 30, 2016.

• As of September 30, 2017, the average age of our multifamily communities was approximately 5.9 years, which we believe is among the youngest in the multifamily REIT industry.

• At September 30, 2017, our leverage, as measured by the ratio of our debt to the undepreciated book value of our total assets, was approximately 54.3%.

• Cash flow from operations for the quarter ended September 30, 2017 was approximately $28.1 million, an increase of approximately $7.0 million, or 33.8%, compared to approximately $21 million for the quarter ended September 30, 2016.

• We sustained damages at our Stone Creek multifamily community from Hurricane Harvey in the third quarter. The resulting impact required us to write off approximately $6.9 million in depreciated real estate assets. We expect our property insurance to cover all losses. Our income for the three-month period ended September 30, 2017 was impacted by approximately $217,000 for our insurance deductible, lost rent, and other related costs. Hurricane Irma also impacted our portfolio of multifamily and grocery-anchored shopping center properties in Florida. We anticipate costs associated with this storm to total approximately $300,000 to $500,000, which will be recognized during the fourth quarter 2017 and beyond.

⁽¹⁾ We calculate the Core FFO and AFFO payout ratios to Common Stockholders and Unitholders as the ratio of Common Stock dividends and distributions to Unitholders to Core FFO or AFFO, respectively. We calculate the Core FFO and AFFO payout ratios to Series A Preferred Stockholders as the ratio of Preferred Stock dividends to the sum of Preferred Stock dividends and Core FFO or AFFO, respectively. Since our operations resulted in a net loss from continuing operations for the periods presented, a payout ratio based on net loss is not calculable. See Definitions of Non-GAAP Measures later within this Results of Operations discussion.

The operational highlights of our third quarter and nine-month period ended September 30, 2017 included:

• During the first three quarters 2017, we acquired the following properties:

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Property	Location	Units	Beds	Leasable square feet
Multifamily communities:
Broadstone at Citrus Village	Tampa, FL	296	n/a	n/a
Retreat at Greystone	Birmingham, AL	312	n/a	n/a
Founders Village	Williamsburg, VA	247	n/a	n/a
Claiborne Crossing	Louisville, KY	242	n/a	n/a
Luxe at Lakewood Ranch	Sarasota, FL	280	n/a	n/a
Adara Overland Park	Kansas City, KS	260	n/a	n/a
Aldridge at Town Village	Atlanta, GA	300	n/a	n/a
The Reserve at Summit Crossing	Atlanta, GA	172	n/a	n/a
Grocery-anchored shopping centers:
Castleberry-Southard	Atlanta, GA	n/a	n/a	80,018
Rockbridge Village	Atlanta, GA	n/a	n/a	102,432
Irmo Station	Columbia, SC	n/a	n/a	99,384
Maynard Crossing	Raleigh, NC	n/a	n/a	122,781
Woodmont Village	Atlanta, GA	n/a	n/a	85,639
West Town Market	Charlotte, NC	n/a	n/a	67,883
Student housing property:
SoL	Tempe, AZ	225	640	n/a
		2,334		558,137

• During the nine-month period ended September 30, 2017, we sold our Sandstone Creek, Ashford Park and Enclave at Vista Ridge multifamily communities located in Kansas City, Kansas, Atlanta, Georgia and Dallas, Texas respectively, which included an aggregate number of 1,072 units.

• During the nine-month period ended September 30, 2017, we closed on the following real estate loan investments in support of the development and construction of multifamily communities and one student housing property. For each loan in the following table, we hold an option to purchase the property at a discount to market value, once stabilized. In addition, in the event the loan is refinanced or if the property is sold to a third party, we are entitled to receive the amount of the discount in cash.

Date	Location (MSA)	Underlying Units			Maximum principal amount (millions)
7/11/2017	Atlanta, GA	356			$	22.4
7/31/2017	Atlanta, GA	258			17.9
8/3/2017	Fort Myers, FL	224			15.6
8/18/2017	Charlotte, NC	338			17.7
9/27/2017	Atlanta, GA	248	(1	)	20.7
		1,424			$	94.3
(1) An 816-bed student housing property adjacent to the campus of Kennesaw State University in Atlanta, Georgia.

• On April 20, 2017, we closed on a loan investment of up to approximately $31.5 million to acquire a 6.5 acre site located in San Jose, California that is currently zoned to provide for up to 551 multifamily units and approximately 37,000 square feet of commercial space. On June 5, 2017, we closed on a loan investment of up to approximately $2.4 million to acquire a 26 acre site located in Nashville, Tennessee in support of a proposed 301 unit multifamily community.

• On June 15, 2017, we refinanced the existing $61.75 million mortgage on our 525 Avalon multifamily community which bore interest at a variable rate of 1 Month LIBOR plus 200 basis points per annum and the secondary financing note of $3.25 million which bore interest at a variable rate of 1 Month LIBOR plus 1100 basis points per annum (both of which were to

50

mature in less than two years) into a single mortgage of $67.38 million, which bears interest at a fixed rate of 3.98% per annum and matures in seven years.

• On June 22, 2017, we refinanced the existing $16.3 million mortgage on our Stone Creek multifamily community which bore interest at a fixed 3.75% rate per annum and was 29 years from maturity into a mortgage of $20.6 million, which bears interest at a fixed rate of 3.22% per annum and matures in 35 years.

The following table summarizes our owned real estate assets and potential additions from our real estate investment loan pipeline as of September 30, 2017:

	Owned as of September 30, 2017	Potential additions from real estate loan investment portfolio (1)		Potential total
Multifamily communities:
Properties	29	16		45
Units	9,086	4,836		13,922
Grocery-anchored shopping centers:
Properties	37	—	(2)	37
Gross leasable area (square feet)	3,854,196	—		3,854,196
Student housing properties:
Properties	2	9		11
Units	444	2,122		2,566
Beds	1,319	6,509		7,828
Preferred Office Properties:
Properties	3	—		3
Rentable square feet	1,094,000	—		1,094,000
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio.
(2) Effective as of September 29, 2017, we negotiated the cancellation of the purchase option on our real estate investment loan supporting the Dawsonville grocery-anchored shopping center in exchange for a fee of $250,000.

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Real Estate Loan Investments

Certain real estate loan investments include limited purchase options and additional amounts of accrued interest, which becomes due in cash to us on the earliest to occur of: (i) the maturity of the loan, (ii) any uncured event of default as defined in the associated loan agreement, (iii) the sale of the project or the refinancing of the loan (other than a refinancing loan by us or one of our affiliates) and (iv) any other repayment of the loan. There are no contingent events that are necessary to occur for us to realize the additional interest amounts. We hold options, but not obligations, to purchase certain of the properties which are partially financed by our real estate loans, as shown in the table below. The option purchase prices are negotiated at the time of the loan closing and are to be calculated based upon market cap rates at the time of exercise of the purchase option, with discounts ranging from between 15 and 60 basis points, depending on the loan.

		Total units upon	Purchase option window
Project/Property	Location	completion (1)	Begin		End
Multifamily communities:
Encore	Atlanta, GA	339	1/8/2018		5/8/2018
Palisades	Northern VA	304	3/1/2018		7/31/2018
Fusion	Irvine, CA	280	1/1/2018		4/1/2018
Green Park	Atlanta, GA	310	3/1/2018		6/30/2018	(2)
Overture	Tampa, FL	180	1/1/2018		5/1/2018
Bishop Street	Atlanta, GA	232	10/1/2018		12/31/2018
Hidden River	Tampa, FL	300	9/1/2018		12/31/2018
CityPark II	Charlotte, NC	200	5/1/2018		8/31/2018
Park 35 on Clairmont	Birmingham, AL	271	S + 90 days (3)		S + 150 days (3)
Fort Myers	Fort Myers, FL	224	S + 90 days (3)		S + 150 days (3)
Wiregrass	Tampa, FL	392	S + 90 days (3)		S + 150 days (3)
360 Forsyth	Atlanta, GA	356	S + 90 days (3)		S + 150 days (3)
Morosgo	Atlanta, GA	258	S + 90 days (3)		S + 150 days (3)
University City Gateway	Charlotte, NC	338	S + 90 days (3)		S + 150 days (3)
Berryessa	San Jose, CA	551	N/A		N/A
Brentwood	Nashville, TN	301	N/A		N/A
Student housing properties:
Haven 12	Starkville, MS	152	4/1/2018		6/30/2018
Stadium Village	Atlanta, GA	198	11/1/2017	(4)	1/31/2018
18 Nineteen	Lubbock, TX	217	4/1/2018		6/30/2018
Haven South	Waco, TX	250	4/1/2018		6/30/2018
Haven46	Tampa, FL	158	11/1/2018		1/31/2019
Haven Northgate	College Station, TX	427	10/1/2018		12/31/2018
Lubbock II	Lubbock, TX	140	11/1/2018		1/31/2019
Haven Charlotte	Charlotte, NC	332	12/1/2019		2/28/2020
Solis Kennesaw	Atlanta, GA	248	(5)		(5)
		6,958
(1) We evaluate each project individually and we make no assurance that we will acquire any of the underlying properties from our real estate loan investment portfolio.
(2) Effective as of October 26, 2017, the purchase option window on the property was amended as shown.
(3) The option period window begins and ends at the number of days indicated beyond the achievement of a 93% stabilization rate by the underlying property.
(4) On October 27, 2017, we acquired an approximate 98% interest in a joint venture that owns the Stadium Village student housing property in Atlanta, Georgia.
(5) The option period begins on October 1 of the second academic year following project completion and ends on the following December 31. The developer may elect to expedite the option period to begin December 1, 2019 and end on December 31, 2019.

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Three Months and Nine Months Ended September 30, 2017 compared to 2016

The following discussion and tabular presentations highlight the major drivers behind the line item changes in our results of operations for the three months and nine months ended September 30, 2017 versus 2016, as summarized in the tables below:

Preferred Apartment Communities, Inc.	Three months ended September 30,						Change inc (dec)
	2017			2016			Amount			Percentage
Revenues:
Rental revenues	$	50,072,135		$	37,319,207		$	12,752,928		34.2	%
Other property revenues	9,334,939			5,221,887			4,113,052			78.8	%
Interest income on loans and notes receivable	9,673,536			7,194,742			2,478,794			34.5	%
Interest income from related parties	5,819,589			3,801,501			2,018,088			53.1	%
Total revenues	74,900,199			53,537,337			21,362,862			39.9	%
Operating expenses:
Property operating and maintenance	7,900,753			5,504,848			2,395,905			43.5	%
Property salary and benefits reimbursement to related party	3,402,623			2,808,402			594,221			21.2	%
Property management fees	2,053,446			1,724,411			329,035			19.1	%
Real estate taxes	7,705,706			4,789,085			2,916,621			60.9	%
General and administrative	1,701,574			1,144,256			557,318			48.7	%
Equity compensation to directors and executives	863,412			638,414			224,998			35.2	%
Depreciation and amortization	28,903,770			21,664,363			7,239,407			33.4	%
Acquisition and pursuit costs	—			1,357,537			(1,357,537		)	—
Asset management fees to related parties	5,147,606			3,759,084			1,388,522			36.9	%
Insurance, professional fees and other expenses	1,156,056			1,338,343			(182,287		)	(13.6	)%
Total operating expenses	58,834,946			44,728,743			14,106,203			31.5	%
Contingent asset management and general and administrative
expense fees	(655,944		)	(736,960		)	81,016			(11.0	)%
Net operating expenses	58,179,002			43,991,783			14,187,219			32.2	%
Operating income	16,721,197			9,545,554			7,175,643			75.2	%
Interest expense	16,678,418			12,234,174			4,444,244			36.3	%
Net income (loss)	$	42,779		$	(2,688,620	)	$	2,731,399		(101.6	)%

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Preferred Apartment Communities, Inc.	Nine months ended September 30,						Change inc (dec)
	2017			2016			Amount			Percentage
Revenues:
Rental revenues	$	143,676,962		$	96,541,544		$	47,135,418		48.8	%
Other property revenues	26,592,295			13,290,330			13,301,965			100.1	%
Interest income on loans and notes receivable	26,111,674			20,984,625			5,127,049			24.4	%
Interest income from related parties	15,971,516			10,310,563			5,660,953			54.9	%
Total revenues	212,352,447			141,127,062			71,225,385			50.5	%
Operating expenses:
Property operating and maintenance	21,637,551			13,883,133			7,754,418			55.9	%
Property salary and benefits reimbursement to related party	9,649,843			7,688,470			1,961,373			25.5	%
Property management fees	6,016,003			4,308,841			1,707,162			39.6	%
Real estate taxes	23,289,784			15,457,134			7,832,650			50.7	%
General and administrative	4,861,083			3,255,728			1,605,355			49.3	%
Equity compensation to directors and executives	2,607,667			1,867,706			739,961			39.6	%
Depreciation and amortization	82,186,960			54,981,064			27,205,896			49.5	%
Acquisition and pursuit costs	14,002			6,885,864			(6,871,862		)	(99.8	)%
Asset management fees to related parties	14,524,517			9,484,161			5,040,356			53.1	%
Insurance, professional fees and other expenses	3,820,010			4,216,838			(396,828		)	(9.4	)%
Total operating expenses	168,607,420			122,028,939			46,578,481			38.2	%
Contingent asset management and general and administrative
expense fees	(1,001,864		)	(1,458,245		)	456,381			(31.3	)%
Net operating expenses	167,605,556			120,570,694			47,034,862			39.0	%
Operating income	44,746,891			20,556,368			24,190,523			117.7	%
Interest expense	48,085,016			30,688,505			17,396,511			56.7	%
Loss on extinguishment of debt	888,428			—			888,428			—
Net loss before gain on sale of real estate	(4,226,553		)	(10,132,137		)	5,905,584			(58.3	)%
Gain on sale of real estate	37,635,014			4,271,506			33,363,508			781.1	%
Net income (loss)	$	33,408,461		$	(5,860,631	)	$	39,269,092		—

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New Market Properties, LLC

Our New Market Properties, LLC business consists of our portfolio of grocery-anchored shopping centers and our Dawson Marketplace real estate loan supporting a shopping center in the Atlanta, Georgia market. Comparative statements of operations of New Market Properties, LLC for the three months and nine months ended September 30, 2017 and 2016 are presented below. These statements of operations include no allocations of corporate overhead or other expenses.

New Market Properties, LLC	Three months ended September 30,						Change inc (dec)
	2017			2016			Amount			Percentage
Revenues:
Rental revenues	$	11,051,695		$	7,767,052		$	3,284,643		42.3	%
Other property revenues	3,474,020			2,006,143			1,467,877			73.2	%
Interest income on loans and notes receivable	444,466			420,648			23,818			5.7	%
Total revenues	14,970,181			10,193,843			4,776,338			46.9	%
Operating expenses:
Property operating and maintenance	1,260,108			904,877			355,231			39.3	%
Property management fees	459,884			332,869			127,015			38.2	%
Real estate taxes	2,034,030			950,444			1,083,586			114.0	%
General and administrative	159,419			150,039			9,380			6.3	%
Equity compensation to directors and executives	106,949			20,356			86,593			425.4	%
Depreciation and amortization	7,611,979			5,452,491			2,159,488			39.6	%
Acquisition and pursuit costs	—			396,679			(396,679		)	(100.0	)%
Asset management fees to related parties	1,138,609			775,794			362,815			46.8	%
Insurance, professional fees and other expenses	51,338			148,656			(97,318		)	(65.5	)%
Total operating expenses	12,822,316			9,132,205			3,690,111			40.4	%
Contingent asset management and general and administrative
expense fees	(21,313		)	(88,097		)	66,784			(75.8	)%
Net operating expenses	12,801,003			9,044,108			3,756,895			41.5	%
Operating income	2,169,178			1,149,735			1,019,443			88.7	%
Interest expense	3,858,588			2,615,925			1,242,663			47.5	%
Net loss	$	(1,689,410	)	$	(1,466,190	)	$	(223,220	)	15.2	%

55

New Market Properties, LLC	Nine months ended September 30,						Change inc (dec)
	2017			2016			Amount			Percentage
Revenues:
Rental revenues	$	30,967,411		$	16,718,701		$	14,248,710		85.2	%
Other property revenues	9,889,760			4,658,688			5,231,072			112.3	%
Interest income on loans and notes receivable	1,313,723			1,338,071			(24,348		)	(1.8	)%
Total revenues	42,170,894			22,715,460			19,455,434			85.6	%
Operating expenses:
Property operating and maintenance	4,037,922			2,078,128			1,959,794			94.3	%
Property management fees	1,381,404			741,221			640,183			86.4	%
Real estate taxes	5,889,820			2,376,099			3,513,721			147.9	%
General and administrative	477,420			350,930			126,490			36.0	%
Equity compensation to directors and executives	318,054			60,289			257,765			427.5	%
Depreciation and amortization	21,714,453			11,997,671			9,716,782			81.0	%
Acquisition and pursuit costs	25,402			1,856,933			(1,831,531		)	(98.6	)%
Asset management fees to related parties	3,178,074			1,689,601			1,488,473			88.1	%
Insurance, professional fees and other expenses	454,394			353,835			100,559			28.4	%
Total operating expenses	37,476,943			21,504,707			15,972,236			74.3	%
Contingent asset management and general and administrative
expense fees	(69,557		)	(255,281		)	185,724			(72.8	)%
Net operating expenses	37,407,386			21,249,426			16,157,960			76.0	%
Operating income	4,763,508			1,466,034			3,297,474			224.9	%
Interest expense	10,699,043			5,588,947			5,110,096			91.4	%
Net loss	$	(5,935,535	)	$	(4,122,913	)	$	(1,812,622	)	44.0	%

Recent acquisitions

Our acquisitions of real estate assets during 2017 (described previously) were the primary drivers behind our increases in rental and property revenues and property operating expenses for the three-month and nine-month periods ended September 30, 2017 versus 2016.

Rental Revenues

Rental revenue increased due primarily to properties acquired since September 30, 2016, as shown in the following table:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Rental revenues	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	5,412,000		42.4	%	$	22,097,000		46.9	%
Acquired during 2011-2015	1,305,000			10.2	%	348,000			0.7	%
Properties sold	(3,411,000		)	(26.7	)%	(8,829,000		)	(18.7	)%
New Market Properties	3,285,000			25.8	%	14,249,000			30.2	%
Preferred Office Properties	6,162,000			48.3	%	19,270,000			40.9	%
Total	$	12,753,000		100.0	%	$	47,135,000		100.0	%

56

Increases in occupancy rates and in percentages of leased space and rent growth are the primary drivers of increases in rental revenue from our owned properties. Factors which we believe affect market rents include vacant unit inventory in local markets, local and national economic growth and resultant employment stability, income levels and growth, the ease of obtaining credit for home purchases, and changes in demand due to consumer confidence in the above factors.

We also collect revenue from residents and tenants for items such as utilities, application fees, lease termination fees, common area maintenance reimbursements and late charges. The increases in other property revenues for the three-month and nine-month periods ended September 30, 2017 versus 2016 were similarly due to the acquisitions listed above.

Interest income from our real estate loan investments increased substantially for the three-month and nine-month periods ended September 30, 2017 versus 2016, primarily due to the addition of fourteen real estate loan investments and bridge loans since September 30, 2016. Also contributing to the increases in interest income were higher loan balances on real estate loans, from accumulating draws and loan balances as the underlying projects progressed toward completion. The principal amount outstanding on our portfolio of real estate loans and bridge loans increased to approximately $411.3 million at September 30, 2017 from $307 million at September 30, 2016.

We recorded interest income and other revenue from these instruments as presented in Note 4 to the Company's Consolidated Financial Statements.

Property operating and maintenance expense

Expenses to operate and maintain our properties rose primarily due to the incremental costs brought on by property acquisitions since September 30, 2016, as shown in the following table. The primary components of operating and maintenance expense are utilities, property repairs, and landscaping costs. The expenses incurred for property repairs and, to a lesser extent, utilities could generally be expected to increase gradually over time as the buildings and properties age. Utility costs may generally be expected to increase in future periods as rate increases from providing carriers are passed on to our residents and tenants.

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Property operating and maintenance	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	1,543,000		64.4	%	$	4,305,000		55.5	%
Acquired during 2011-2015	85,000			3.5	%	133,000			1.7	%
Properties sold	(614,000		)	(25.6	)%	(1,595,000		)	(20.6	)%
New Market Properties	355,000			14.8	%	1,960,000			25.3	%
Preferred Office Properties	1,027,000			42.9	%	2,951,000			38.1	%
Total	$	2,396,000		100.0	%	$	7,754,000		100.0	%

Property salary and benefits reimbursement to related party

We recorded property salary and benefits expense for individuals who handle the on-site management, operations and maintenance of our properties. These costs increased primarily due to the incremental costs brought on by additional personnel necessary to manage and operate properties acquired since September 30, 2016, as shown in the following table.

57

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Property salary and benefits reimbursement	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	812,000		136.7	%	$	2,248,000		114.6	%
Acquired during 2011-2015	(3,000		)	(0.5	)%	32,000			1.6	%
Properties sold	(400,000		)	(67.3	)%	(956,000		)	(48.8	)%
Preferred Office Properties	185,000			31.1	%	637,000			32.6	%
Total	$	594,000		100.0	%	$	1,961,000		100.0	%

Property management fees

We pay a fee for property management services to our Manager in an amount of 4% of gross property revenues as compensation for services such as rental, leasing, operation and management of our multifamily communities and the supervision of any subcontractors; for grocery-anchored shopping center assets, property management fees are generally 4% of gross property revenues, of which generally 3.5% is paid to a third party management company. Property management fees for office building assets are within the range of 2.0% to 2.75% of gross property revenues, of which 1.5% to 2.25% is paid to a third party management company. The increases were primarily due to properties acquired since September 30, 2016, as shown in the following table:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Property management fees	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	206,000		62.6	%	$	947,000		55.5	%
Acquired during 2011-2015	(3,000		)	(0.9	)%	36,000			2.1	%
Properties sold	(157,000		)	(47.7	)%	(371,000		)	(21.7	)%
New Market Properties	127,000			38.6	%	640,000			37.5	%
Preferred Office Properties	156,000			47.4	%	455,000			26.6	%
Total	$	329,000		100.0	%	$	1,707,000		100.0	%

Real estate taxes

We are liable for property taxes due to the various counties and municipalities that levy such taxes on real property for each of our properties. Real estate taxes rose primarily due to the incremental costs brought on by properties acquired since September 30, 2016, as shown in the following table:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Real estate taxes	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	980,000		33.6	%	$	3,277,000		41.8	%
Acquired during 2011-2015	590,000			20.2	%	(42,000		)	(0.5	)%
Properties sold	(553,000		)	(19.0	)%	(1,397,000		)	(17.8	)%
New Market Properties	1,083,000			37.1	%	3,514,000			44.9	%
Preferred Office Properties	817,000			28.1	%	2,481,000			31.6	%
Total	$	2,917,000		100.0	%	$	7,833,000		100.0	%

58

We generally expect the assessed values of our properties to rise over time, owing to our expectation of improving market conditions, as well as pressure on municipalities to raise revenues.  

General and Administrative

The increase was primarily due to higher franchise and net worth taxes, and administrative expenses related to the properties acquired since September 30, 2016, as shown in the following table:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
General and administrative expense	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	260,000		46.7	%	$	722,000		45.0	%
Acquired during 2011-2015	71,000			12.7	%	188,000			11.7	%
Properties sold	(96,000		)	(17.2	)%	(230,000		)	(14.3	)%
Taxes, licenses & fees	(2,000		)	(0.4	)%	(44,000		)	(2.7	)%
New Market Properties	9,000			1.6	%	127,000			7.9	%
Preferred Office Properties	315,000			56.6	%	842,000			52.4	%
Total	$	557,000		100.0	%	$	1,605,000		100.0	%

Equity compensation to directors and executives

Expenses recorded for equity compensation awards increased primarily due to expansions of Class B Unit awards in 2017, the details of which are presented in Note 8 to the Consolidated Financial Statements.

Depreciation and amortization

The net increases in depreciation and amortization were driven by:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Depreciation and amortization	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	3,309,000		45.7	%	$	13,929,000		51.2	%
Acquired during 2011-2015	(103,000		)	(1.4	)%	(2,621,000		)	(9.6	)%
Properties sold	(1,217,000		)	(16.8	)%	(3,258,000		)	(12.0	)%
New Market Properties	2,160,000			29.8	%	9,717,000			35.7	%
Preferred Office Properties	3,090,000			42.7	%	9,439,000			34.7	%
Total	$	7,239,000		100.0	%	$	27,206,000		100.0	%

Acquisition and pursuit costs and acquisition fees to related parties

The decrease in acquisition fees during the three-month and nine-month periods ended September 30, 2017 versus 2016 was due to the adoption of ASU 2017-01 on January 1, 2017, pursuant to which we began capitalizing and amortizing asset acquisition costs.

Asset management fees and general and administrative fees to related party

Monthly asset management fees are equal to one-twelfth of 0.50% of the total book value of assets, as adjusted. General and administrative expense fees are equal to 2% of the monthly gross revenues of the Company. Both are calculated as prescribed by the Management Agreement and are paid monthly to our Manager. These fees rose primarily due to the incremental assets and revenues

59

brought on by office buildings, grocery-anchored shopping centers and multifamily communities acquired since September 30, 2016, as shown in the following tables:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	increase					increase
Revenues	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	7,556,000		35.4	%	$	24,625,000		34.6	%
Acquired during 2011-2015	15,000			0.1	%	328,000			0.5	%
Properties sold	(3,836,000		)	(18.0	)%	(9,774,000		)	(13.7	)%
New Market Properties	4,777,000			22.4	%	19,456,000			27.3	%
Preferred Office Properties	8,378,000			39.2	%	25,778,000			36.2	%
Real estate loan investments	4,473,000			20.9	%	10,812,000			15.1	%
Total	$	21,363,000		100.0	%	$	71,225,000		100.0	%

	September 30,
	2017 versus 2016
	increase
Gross real estate and real estate loans	Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	418,814,000		55.3	%
Acquired during 2011-2015	(4,652,000		)	(0.6	)%
Properties sold	(125,695,000		)	(16.6	)%
New Market Properties	158,297,000			20.9	%
Preferred Office Properties	206,410,000			27.3	%
Real estate loan investments	103,817,000			13.7	%
Total	$	756,991,000		100.0	%

Insurance, professional fees and other expenses

The increase consisted of:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	increase					increase
Insurance, professional fees, and other	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Audit and tax fees	$	(87,000	)	46.8	%	$	(161,000	)	40.6	%
Insurance premiums	21,000			(11.3	)%	315,000			(79.3	)%
Software implementation fees	(56,000		)	30.1	%	(216,000		)	54.4	%
Board of directors fees	43,000			(23.1	)%	128,000			(32.2	)%
Legal and other professional fees	(107,000		)	57.5	%	(463,000		)	116.5	%
Total	$	(186,000	)	100.0	%	$	(397,000	)	100.0	%

60

Contingent asset management and general and administrative expense fees

The Manager may, in its discretion, forfeit some or all of the asset management, property management, or general and administrative fees for properties owned by the Company. The forfeited fees are converted at the time of forfeiture into contingent fees, which are earned by the Manger only in the event of a sales transaction, and whereby the Company’s capital contributions for the property being sold exceed a 7% annual rate of return.  The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.

On May 25, 2017,we closed on the sale of our Enclave at Vista Ridge multifamily community to an unrelated third party. At such date, the Manager collected a cumulative total of approximately $390,000 of contingent fees. The sales transaction, and the fact that the Company’s capital contributions for the Enclave at Vista Ridge property achieved a greater than 7% annual rate of return, triggered the fees to become immediately due and payable to the Manager at the closing of the sale transaction.

Interest expense

The increases consisted of:

	Three months ended September 30,					Nine months ended September 30,
	2017 versus 2016					2017 versus 2016
	Increase					Increase
Interest expense	Amount (rounded to 000s):			Percent of increase		Amount (rounded to 000s):			Percent of increase
Multifamily and student housing communities:
Acquired during 2016-2017	$	2,366,000		53.2	%	$	7,648,000		44.0	%
Acquired during 2011-2015	102,000			2.3	%	150,000			0.9	%
Properties sold	(807,000		)	(18.2	)%	(2,183,000		)	(12.5	)%
New Market Properties	1,243,000			28.0	%	5,110,000			29.4	%
Preferred Office Properties	1,543,000			34.8	%	4,897,000			28.1	%
KeyBank operating LOC and Term notes	(3,000		)	(0.1	)%	1,775,000			10.1	%
Total	$	4,444,000		100.0	%	$	17,397,000		100.0	%

Definitions of Non-GAAP Measures

Funds From Operations Attributable to Common Stockholders and Unitholders (“FFO”)

Analysts, managers and investors make certain adjustments to reported net income amounts under U.S. GAAP in order to better assess these vehicles’ operating results. FFO is one of the most commonly utilized Non-GAAP measures currently in practice. In its 2002 “White Paper on Funds From Operations,” which was most recently revised in 2012,the National Association of Real Estate Investment Trusts, or NAREIT, standardized the definition of how Net income/loss should be adjusted to arrive at FFO, in the interests of uniformity and comparability.

The NAREIT definition of FFO (and the one reported by the Company) is:

Net income/loss:

• excluding impairment charges on and gains/losses from sales of depreciable property;

• plus depreciation and amortization of real estate assets and deferred leasing costs; and

• after adjustments for the Company's proportionate share of unconsolidated partnerships and joint ventures.

Not all companies necessarily utilize the standardized NAREIT definition of FFO, so caution should be taken in comparing the Company’s reported FFO results to those of other companies. The Company’s FFO results are comparable to the FFO results of other companies that follow the NAREIT definition of FFO and report these figures on that basis. The Company believes FFO is useful to investors as a supplemental gauge of our operating results. FFO is a non-GAAP measure that is reconciled to its most comparable GAAP measure, net income/loss available to common stockholders.

Core Funds From Operations Attributable to Common Stockholders and Unitholders (“Core FFO”)

Core FFO makes certain adjustments to FFO, which are either not likely to occur on a regular basis or are otherwise not representative of the Company’s ongoing operating performance. For example, the Company incurs substantial costs related to property

61

acquisitions, which, prior to 2017, were required to be recognized as expenses when they were incurred. The Company added back any such acquisition and pursuit costs, including costs incurred in connection with obtaining short term debt financing for acquisitions and beginning January 1, 2016, amortization of loan coordination fees to FFO in its calculation of Core FFO since such costs are not representative of our operating results. The Company also adds back any costs incurred related to the extension of our management agreement in June 2016 with our Manager, contingent fees paid to our Manager at the time of a property's sale, realized losses on debt extinguishment or refinancing, weather-related property operating losses and any non-cash dividends in this calculation. Core FFO figures reported by us may not be comparable to those Core FFO figures reported by other companies.

We utilize Core FFO as a measure of the operating performance of our portfolio of real estate assets. We believe Core FFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other real estate companies that are not as involved in ongoing acquisition activities. Core FFO is a non-GAAP measure that is reconciled to its most comparable GAAP measure, net income/loss available to common stockholders.

Adjusted Funds From Operations Attributable to Common Stockholders and Unitholders (“AFFO”)

AFFO makes further adjustments to Core FFO results in order to arrive at a more refined measure of operating and financial performance. There is no industry standard definition of AFFO and practice is divergent across the industry. The Company calculates AFFO as:

Core FFO, plus:

• non-cash equity compensation to directors and executives;

• amortization of loan closing costs, excluding costs incurred in connection with obtaining short term financing related to acquisitions;

• depreciation and amortization of non-real estate assets;

• net loan fees received;

• accrued interest income received;

• non-cash dividends on Series M Preferred Stock; and

• amortization of lease inducements;

Less:

• non-cash loan interest income;

• cash paid for loan closing costs;

• amortization of acquired real estate intangible liabilities;

• amortization of straight line rent adjustments and deferred revenues; and

• normally-recurring capital expenditures and capitalized retail direct leasing costs.

AFFO figures reported by us may not be comparable to those AFFO figures reported by other companies. We utilize AFFO as another measure of the operating performance of our portfolio of real estate assets. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other real estate companies. AFFO is a non-GAAP measure that is reconciled to its most comparable GAAP measure, net income/loss available to common stockholders. FFO, Core FFO, and AFFO are not considered measures of liquidity and are not alternatives to measures calculated under GAAP.

62

Reconciliation of FFO, Core FFO, and AFFO
to Net Income (Loss) Attributable to Common Stockholders (A)
		Three months ended September 30,
		2017			2016
Net loss attributable to common stockholders (See note 1)		$	(16,383,638	)	$	(13,624,001	)
Add:	Loss attributable to non-controlling interests (See note 2)	1,119			(86,484		)
	Depreciation of real estate assets	21,596,586			15,283,505
	Amortization of acquired real estate intangible assets and deferred leasing costs	7,105,646			6,243,815
FFO		12,319,713			7,816,835
Add:	Acquisition and pursuit costs	—			1,357,537
	Loan cost amortization on acquisition term note (See note 3)	28,977			26,937
	Amortization of loan coordination fees paid to the Manager (See note 4)	407,050			288,127
	Weather-related property operating losses (See note 5)	216,734			—
Core FFO		12,972,474			9,489,436
Add:	Non-cash equity compensation to directors and executives	863,412			638,414
	Amortization of loan closing costs (See note 6)	905,371			723,426
	Depreciation/amortization of non-real estate assets	201,538			137,043
	Net loan fees received (See note 7)	878,940			250,602
	Accrued interest income received (See note 8)	1,796,789			—
	Non-cash dividends on Series M Preferred Stock	33,094			—
	Amortization of lease inducements (See note 9)	144,566			—
Less:	Non-cash loan interest income (See note 7)	(4,859,509		)	(3,950,676		)
	Amortization of acquired above and below market lease intangibles
	and straight-line rental revenues (See note 10)	(1,940,912		)	(643,123		)
	Amortization of deferred revenues (See note 11)	(286,926		)	—
	Normally recurring capital expenditures and leasing costs (See note 12)	(1,214,309		)	(993,684		)
AFFO		$	9,494,528		$	5,651,438
Common Stock dividends and distributions to Unitholders declared:
	Common Stock dividends	$	8,158,256		$	4,992,038
	Distributions to Unitholders (See note 2)	211,781			179,449
	Total	$	8,370,037		$	5,171,487
Common Stock dividends and Unitholder distributions per share		$	0.235		$	0.2025
FFO per weighted average basic share of Common Stock and Unit outstanding		$	0.36		$	0.31
Core FFO per weighted average basic share of Common Stock and Unit outstanding		$	0.38		$	0.38
AFFO per weighted average basic share of Common Stock and Unit outstanding		$	0.28		$	0.22
Weighted average shares of Common Stock and Units outstanding: (A)
	Basic:
	Common Stock	33,539,920			24,340,791
	Class A Units	901,195			886,168
	Common Stock and Class A Units	34,441,115			25,226,959
	Diluted Common Stock and Class A Units (B)	37,819,923			27,032,093
Actual shares of Common Stock outstanding, including 18,306 and 23,247 unvested shares
of restricted Common Stock at September 30, 2017 and 2016, respectively		35,616,050			24,681,281
Actual Class A Units outstanding		901,195			886,168
	Total	36,517,245			25,567,449
(A) Units and Unitholders refer to Class A Units in our Operating Partnership, or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 2.62% weighted average non-controlling interest in the Operating Partnership for the three-month period ended September 30, 2017.
(B) Since our Core FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders.

See Notes to Reconciliation of FFO, Core FFO and AFFO to Net Loss Attributable to Common Stockholders.

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Reconciliation of FFO, Core FFO, and AFFO
to Net Income (Loss) Attributable to Common Stockholders (A)
		Nine months ended September 30,
		2017			2016
Net loss attributable to common stockholders (See note 1)		$	(13,742,471	)	$	(34,039,743	)
Less:	Gain on sale of real estate	(37,635,014		)	(4,271,506		)
Add:	Income (loss) attributable to non-controlling interests (See note 2)	1,097,008			(175,045		)
	Depreciation of real estate assets	60,344,386			39,006,354
	Amortization of acquired real estate intangible assets and deferred leasing costs	21,307,608			15,576,868
FFO		31,371,517			16,096,928
Add:	Acquisition and pursuit costs	14,002			6,885,864
	Loan cost amortization on acquisition term note (See note 3)	99,145			139,744
	Amortization of loan coordination fees paid to the Manager (See note 4)	1,178,491			551,654
	Mortgage loan refinancing and extinguishment costs (See note 13)	1,058,055			—
	Costs incurred from extension of management agreement with advisor (See note 14)	—			421,387
	Weather-related property operating losses (See note 5)	216,734			—
	Contingent fees paid on sale of real estate (See note 15)	386,570			—
Core FFO		34,324,514			24,095,577
Add:	Non-cash equity compensation to directors and executives	2,607,667			1,867,706
	Amortization of loan closing costs (See note 6)	2,756,519			1,740,411
	Depreciation/amortization of non-real estate assets	534,966			397,843
	Net loan fees received (See note 7)	1,296,384			1,374,828
	Accrued interest income received (See note 8)	7,115,597			6,875,957
	Non-cash dividends on Series M Preferred Stock	33,094			—
	Amortization of lease inducements (See note 9)	237,037			—
Less:	Non-cash loan interest income (See note 7)	(13,507,054		)	(10,457,754		)
	Cash paid for loan closing costs	—			(13,276		)
	Amortization of acquired above and below market lease intangibles
	and straight-line rental revenues (See note 10)	(5,497,183		)	(1,714,792		)
	Amortization of deferred revenues (See note 11)	(456,815		)	—
	Normally recurring capital expenditures and leasing costs (See note 12)	(3,031,820		)	(2,180,123		)
AFFO		$	26,412,906		$	21,986,377
Common Stock dividends and distributions to Unitholders declared:
	Common Stock dividends	$	21,668,290		$	14,200,114
	Distributions to Unitholders (See note 2)	622,304			476,293
	Total	$	22,290,594		$	14,676,407
Common Stock dividends and Unitholder distributions per share		$	0.69		$	0.5975
FFO per weighted average basic share of Common Stock and Unit outstanding		$	1.01		$	0.66
Core FFO per weighted average basic share of Common Stock and Unit outstanding		$	1.11		$	0.99
AFFO per weighted average basic share of Common Stock and Unit outstanding		$	0.85		$	0.90
Weighted average shares of Common Stock and Units outstanding: (A)
	Basic:
	Common Stock	30,147,497			23,552,951
	Class A Units	909,771			796,710
	Common Stock and Class A Units	31,057,268			24,349,661
	Diluted Common Stock and Class A Units (B)	33,644,520			25,854,478
Actual shares of Common Stock outstanding, including 18,306 and 23,247 unvested shares
of restricted Common Stock at September 30, 2017 and 2016, respectively		35,616,050			24,681,281
Actual Class A Units outstanding		901,195			886,168
	Total	36,517,245			25,567,449
(A) Units and Unitholders refer to Class A Units in our Operating Partnership, or Class A Units, and holders of Class A Units, respectively. Unitholders include recipients of awards of Class B Units in our Operating Partnership, or Class B Units, for annual service which became vested and earned and automatically converted to Class A Units. Unitholders also include the entity that contributed the Wade Green grocery-anchored shopping center. The Class A Units collectively represent an approximate 2.93% weighted average non-controlling interest in the Operating Partnership for the nine-month period ended September 30, 2017.
(B) Since our Core FFO and AFFO results are positive for the periods reflected above, we are presenting recalculated diluted weighted average shares of Common Stock and Class A Units for these periods for purposes of this table, which includes the dilutive effect of common stock equivalents from grants of the Class B Units, warrants included in units of Series A Preferred Stock issued, as well as annual grants of restricted Common Stock. The weighted average shares of Common Stock outstanding presented on the Consolidated Statements of Operations are the same for basic and diluted for any period for which we recorded a net loss available to common stockholders.

See Notes to Reconciliation of FFO, Core FFO and AFFO to Net Loss Attributable to Common Stockholders.

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Notes to Reconciliations of FFO, Core FFO and AFFO to Net Income (Loss) Attributable to Common Stockholders

1) Rental and other property revenues and expenses for the three-month and nine-month periods ended September 30, 2017 include activity for the four multifamily communities and four grocery-anchored shopping centers acquired during the third quarter 2017 only from their respective dates of acquisition. In addition, the third quarter 2017 period includes a full quarter of activity for the four multifamily communities, three grocery-anchored shopping centers, one student housing property and two office buildings acquired during the fourth quarter of 2016 and first two quarters of 2017. Rental and other property revenues and expenses for the three-month period ended September 30, 2016 include activity for the two multifamily communities, one student housing property, one office building and eight grocery-anchored shopping centers only from their respective dates of acquisition during the third quarter 2016.

2) Non-controlling interests in our Operating Partnership consisted of a total of 901,195 Class A Units as of September 30, 2017. Included in this total are 419,228 Class A Units which were granted as partial consideration to the seller in conjunction with theseller's contribution to us on February 29, 2016 of the Wade Green grocery-anchored shopping center. The remaining Class A units were awarded primarily to our key executive officers. The Class A Units are apportioned a percentage of our financial results as non-controlling interests. The weighted average ownership percentage of these holders of Class A Units was calculated to be 2.62% and 3.51% for the three-month periods ended September 30, 2017 and 2016, respectively.

3) We incurred loan closing costs for the acquisition of the Village at Baldwin Park multifamily community during the first quarter 2016, which were funded by our $35 million acquisition term loan facility, or 2016 Term Loan, and on our $11 million term note, which we used to finance the acquisition of our Anderson Central grocery-anchored shopping center. These costs were deferred and are being amortized over the lives of the two instruments. The amortization expense of these deferred costs is an additive adjustment in the calculation of Core FFO.

4) As of January 1, 2016, we pay loan coordination fees to Preferred Apartment Advisors, LLC, our Manager, related to obtaining mortgage financing for acquired properties. Loan coordination fees were introduced to more accurately reflect the administrative effort involved in arranging debt financing for acquired properties. The portion of the loan coordination fees paid up until July 1, 2017 attributable to the financing were amortized over the lives of the respective mortgage loans, and this non-cash amortization expense is an addition to FFO in the calculation of Core FFO. Beginning effective July 1, 2017, the loan coordination fee was lowered from 1.6% to 0.6% of the amount of any mortgage indebtedness on newly-acquired properties. All of the loan coordination fees paid to our Manager subsequent to July 1, 2017 are amortized over the life of the debt. At September 30, 2017, aggregate unamortized loan coordination fees were approximately $11.3 million, which will be amortized over a weighted average remaining loan life of approximately 10.8 years.

5) We sustained operating losses, consisting primarily of lost rental income, at certain of our properties due to Hurricane Harvey and Hurricane Irma during the third quarter 2017; these costs are added back to FFO in our calculation of Core FFO.

6) We incur loan closing costs on our existing mortgage loans, which are secured on a property-by-property basis by each of our acquired real estate assets, and also for occasional amendments to our $150 million syndicated revolving line of credit with Key Bank National Association, or our Revolving Line of Credit. These loan closing costs are also amortized over the lives of the respective loans and the Revolving Line of Credit, and this non-cash amortization expense is an addition to Core FFO in the calculation of AFFO. Neither we nor the Operating Partnership have any recourse liability in connection with any of the mortgage loans, nor do we have any cross-collateralization arrangements with respect to the assets securing the mortgage loans, other than security interests in 49% of the equity interests of the subsidiaries owning such assets, granted in connection with our Revolving Line of Credit, which provides for full recourse liability. At September 30, 2017, aggregate unamortized loan costs were approximately $17.2 million, which will be amortized over a weighted average remaining loan life of approximately 7.9 years.

7) We receive loan origination fees in conjunction with the origination of certain real estate loan investments. These fees are then recognized as revenue over the lives of the applicable loans as adjustments of yield using the effective interest method. The total fees received after the payment of loan origination fees to our Manager are additive adjustments in the calculation of AFFO. Correspondingly, the amortized non-cash income is a deduction in the calculation of AFFO. We also accrue over the lives of certain loans additional interest amounts that become due to us at the time of repayment of the loan or refinancing of the property, or when the property is sold to a third party.

8) The Company records deferred interest revenue over the lives of certain of its real estate loans. This adjustment reflects the receipt during the periods presented of interest income which was earned and accrued prior to those periods presented on various real estate loans.

9) This adjustment removes the non-cash amortization of costs incurred to induce tenants to lease space in our office buildings and grocery-anchored shopping centers.

10) This adjustment reflects straight-line rent adjustments and the reversal of the non-cash amortization of below-market and above-market lease intangibles, which were recognized in conjunction with the Company’s acquisitions and which are amortized over the estimated average remaining lease terms from the acquisition date for multifamily communities and over the remaining lease terms for grocery-anchored shopping center assets and office buildings. At September 30, 2017, the balance of unamortized below-market lease intangibles was approximately $31.7 million, which will be recognized over a weighted average remaining lease period of approximately 8.9 years.

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11) This adjustment removes the non-cash amortization of deferred revenue recorded by us in conjunction with Company-owned lessee-funded tenant improvements in our office buildings.

12) We deduct from Core FFO normally recurring capital expenditures that are necessary to maintain our assets’ revenue streams in the calculation of AFFO. This adjustment also deducts from Core FFO capitalized amounts for third party costs during the period to originate or renew leases in our grocery-anchored shopping centers and office buildings. No adjustment is made in the calculation of AFFO for nonrecurring capital expenditures.

13) The adjustment consists of a loan prepayment penalty and other charges related to the refinancing of our Stone Creek multifamily community which totaled $888,428 and for the refinancing of our 525 Avalon multifamily community of $169,627.

14) We incurred legal costs pertaining to the extension of our management agreement with our Manager. The three-year extension was effective as of June 3, 2016.

15) On May 25, 2017,we closed on the sale of our Enclave at Vista Ridge multifamily community to an unrelated third party.  At such date, our Manager collected a cumulative total of approximately $390,000 of contingent fees.  The sales transaction, and the fact that the Company’s capital contributions for the Enclave at Vista Ridge property achieved an annual rate of return which exceeded 7%, which triggered the fees to become immediately due and payable to the Manager at the closing of the sale transaction. The recognition of these fees are added to FFO in the calculation of Core FFO as they are not likely to occur on a regular basis.

Liquidity and Capital Resources

Short-Term Liquidity

We believe our principal short-term liquidity needs are to fund:

• operating expenses directly related to our portfolio of multifamily communities, grocery-anchored shopping centers and office buildings (including regular maintenance items);

• capital expenditures incurred to lease our multifamily communities, grocery-anchored shopping centers and office buildings;

• interest expense on our outstanding property level debt;

• amounts due on our Credit Facility;

• distributions that we pay to our preferred stockholders, common stockholders, and unitholders;

• cash redemptions that we may pay to our preferred stockholders, and

• committed investments.

We have a credit facility, or Credit Facility, with KeyBank National Association, or KeyBank, which defines a syndicated revolving line of credit, or Revolving Line of Credit, which is used to fund investments, capital expenditures, dividends (with consent of KeyBank), working capital and other general corporate purposes on an as needed basis. The maximum borrowing capacity on the Revolving Line of Credit is $150.0 million pursuant to the Fourth Amended and Restated Credit Agreement, as amended effective December 27, 2016, or the Amended and Restated Credit Agreement. The Revolving Line of Credit accrues interest at a variable rate of one month LIBOR plus 3.25% per annum and matures on August 5, 2019, with an option to extend the maturity date to August 5, 2020, subject to certain conditions described therein. At September 30, 2017, we had a balance owed of $43.0 million under the Revolving Line of Credit. Interest expense on the Revolving Line of Credit was approximately $2.8 million (excluding deferred loan cost amortization of approximately $492,000) and the weighted average interest rate was 4.51% for the nine-month period ended September 30, 2017.

On May 26, 2016, the Company entered into a $11.0 million interim term loan with KeyBank, or the Interim Term Loan, to partially finance the acquisition of Anderson Central, a grocery-anchored shopping center located in Anderson, South Carolina. The Interim Term Loan accrues interest at a rate of LIBOR plus 2.5% per annum and the maturity date was extended to November 21, 2017 during the third quarter.

The Amended and Restated Credit Agreement contains certain affirmative and negative covenants including negative covenants that limit or restrict secured and unsecured indebtedness, mergers and fundamental changes, investments and acquisitions, liens and encumbrances, dividends, transactions with affiliates, burdensome agreements, changes in fiscal year and other matters customarily restricted in such agreements. The material financial covenants include minimum net worth and debt service coverage ratios and maximum leverage and dividend payout ratios. As of September 30, 2017, we were in compliance with all covenants related to the Fourth Amended and Restated Credit Agreement. Our results with respect to such compliance are presented in Note 9 to the Company's Consolidated Financial Statements.

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On February 28, 2017, we entered into a revolving acquisition credit agreement, or Acquisition Credit Agreement, with KeyBank to obtain an acquisition revolving credit facility, or Acquisition Facility, with a maximum borrowing capacity of $200 million. The sole purpose of the Acquisition Credit Agreement is to finance our acquisitions of multifamily communities and student housing communities prior to obtaining permanent conventional mortgage financing on the acquired assets. The maximum borrowing capacity on the Acquisition Facility may be increased at our request up to $300 million at any time prior to March 1, 2021. The Acquisition Facility accrues interest at a variable rate of one month LIBOR plus a margin of between 1.75% per annum and 2.20% per annum, depending on the type of assets acquired and the resulting property debt service coverage ratio. The Acquisition Facility has a maturity date of March 1, 2022 and has two one-year extension options, subject to certain conditions described therein.

Our net cash provided by operating activities for the nine-month periods ended September 30, 2017 and 2016 was approximately $70.4 million and $53.9 million, respectively. The increase in net cash provided by operating activities was primarily due to the incremental cash generated by property income provided by the real estate assets acquired subsequent to September 30, 2016 and an increase in cash collections of interest income from our larger portfolio of real estate loans and notes.

The majority of our revenue is derived from residents and tenants under existing leases at our multifamily communities, grocery-anchored shopping centers and office buildings. Therefore, our operating cash flow is principally dependent on: (1) the number of multifamily communities, student housing properties, grocery-anchored shopping centers and office buildings in our portfolio; (2) rental rates; (3) occupancy rates; (4) operating expenses associated with these properties; and (5) the ability of our residents and tenants to make their rental payments. We believe we are well positioned to take advantage of the recent improvements in real estate fundamentals, such as higher occupancy rates, positive new and renewal rates over expiring leases, a declining home ownership rate and a decline in turnover, which we believe are all positive developments in the real estate industry.

We also earn interest revenue from the issuance of real estate-related loans and may receive fees at the inception of these loans for committing and originating them. Interest revenue we receive on these loans is influenced by (1) market interest rates on similar loans; (2) the availability of credit from alternative financing sources; (3) the desire of borrowers to finance new real estate projects; and (4) unique characteristics attached to these loans, such as exclusive purchase options.

Our net cash used in investing activities was approximately $422.2 million and $833.1 million for the nine-month periods ended September 30, 2017 and 2016, respectively. Disbursements for property acquisitions were approximately $740.6 million during the 2016 period and approximately $455.7 million during the 2017 period. Proceeds from our sale of Ashford Park, Sandstone Creek and Enclave at Vista Ridge during 2017 totaled approximately $118.2 million. Disbursements for real estate loans, net of repayments, were approximately $86.8 million during the 2016 period and approximately $76.7 million during the 2017 period.

Cash used in investing activities is primarily driven by acquisitions and dispositions of multifamily properties and retail shopping centers and acquisitions and maturities or other dispositions of real estate loans and other real estate and real estate-related assets, and secondarily by capital expenditures related to our owned properties. We will seek to acquire more multifamily communities and retail shopping centers at costs that we expect will be accretive to our financial results. Capital expenditures may be nonrecurring and discretionary, as part of a strategic plan intended to increase a property’s value and corresponding revenue-generating power, or may be normally recurring and necessary to maintain the income streams and present value of a property. Certain capital expenditures may be budgeted and reserved for upon acquiring a property as initial expenditures necessary to bring a property up to our standards or to add features or amenities that we believe make the property a compelling value to prospective residents or tenants in its individual market. These budgeted nonrecurring capital expenditures in connection with an acquisition are funded from the capital source(s) for the acquisition and are not dependent upon subsequent property operational cash flows for funding.

For the nine-month period ended September 30, 2017, our capital expenditures our capital expenditures for our multifamily communities and student housing properties, not including changes in related payables were as follows:

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	Nonrecurring/first generation capital expenditures							Recurring / second generation capital expenditures
	Budgeted at acquisition		Other			Total				Total
Multifamily communities:
Summit Crossing	$	—	$	65,953		$	65,953	$	114,510	$	180,463
Stone Rise	—		8,273			8,273		28,870		37,143
Ashford Park	—		19,800			19,800		11,208		31,008
McNeil Ranch	—		24,402			24,402		60,705		85,107
Lake Cameron	—		42,412			42,412		126,105		168,517
Stoneridge Farms at the Hunt Club	—		265,634			265,634		116,823		382,457
Vineyards	—		31,639			31,639		162,811		194,450
Enclave			29,770			29,770		73,011		102,781
Sandstone Creek			—			—		5,938		5,938
Cypress	—		25,813			25,813		46,978		72,791
Northpointe	—		39,488			39,488		82,540		122,028
Venue at Lakewood Ranch	—		2,470			2,470		60,969		63,439
Aster at Lely	147,205		13,806			161,011		46,053		207,064
CityPark View	—		59,847			59,847		5,483		65,330
Avenues at Creekside	—		86,635			86,635		74,807		161,442
Citilakes	—		18,314			18,314		98,559		116,873
Stone Creek	—		2,974			2,974		63,915		66,889
Lenox Portfolio	235,137		86,213			321,350		90,669		412,019
Village at Baldwin Park	2,375,284		13,604			2,388,888		111,523		2,500,411
Crosstown Walk	—		27,293			27,293		59,864		87,157
Overton Rise	10,568		16,253			26,821		30,041		56,862
525 Avalon Park	126,129		8,613			134,742		149,101		283,843
City Vista	41,367		10,916			52,283		12,889		65,172
Sorrel	133,572		238,903			372,475		19,292		391,767
Citrus Village	—		45,112			45,112		39,466		84,578
Retreat at Greystone	7,489		14,671			22,160		13,398		35,558
Founders Village	13,548		(3,766		)	9,782		13,862		23,644
Claiborne Crossing	30,499		5,244			35,743		20,345		56,088
Luxe at Lakewood Ranch	—		14,215			14,215		—		14,215
	3,120,798		1,214,501			4,335,299		1,739,735		6,075,034
Student Housing:
North by Northwest	308,956		123,931			432,887		70,988		503,875
SoL	—		48,481			48,481		36,729		85,210
	308,956		172,412			481,368		107,717		589,085
Total	$	3,429,754	$	1,386,913		$	4,816,667	$	1,847,452	$	6,664,119

In addition, second-generation capital expenditures within our grocery-anchored shopping center portfolio for the nine-month period ended September 30, 2017 totaled $1,017,592. Second-generation capital expenditures exclude those expenditures made in our grocery-anchored shopping center portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our ownership standards, and (iii) for property re-developments and repositioning.

Second-generation capital expenditures within our office building portfolio for the nine-month period ended September 30, 2017 totaled $166,775. Second-generation capital expenditures exclude those expenditures made in our office building portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our Class A ownership standards (and which amounts were underwritten into the total investment at the time of acquisition), (iii) for property re-developments and repositionings and (iv) for building improvements that are recoverable from future operating cost savings.

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For the nine-month period ended September 30, 2016, our capital expenditures not including changes in related payables were:

	Nonrecurring capital expenditures						Recurring capital expenditures
	Budgeted at acquisition		Other		Total				Total
Multifamily communities:
Summit Crossing	$	—	$	96,109	$	96,109	$	98,571	$	194,680
Trail Creek			23,908		23,908		44,386		68,294
Stone Rise			60,737		60,737		56,003		116,740
Ashford Park	—		165,476		165,476		137,478		302,954
McNeil Ranch	—		10,554		10,554		63,220		73,774
Lake Cameron	—		71,845		71,845		83,241		155,086
Stoneridge Farms at the Hunt Club	197,895		58,716		256,611		128,774		385,385
Vineyards	45,222		68,649		113,871		132,466		246,337
Enclave	159,576		18,320		177,896		111,351		289,247
Sandstone	89,857		70,300		160,157		137,320		297,477
Cypress	77,666		7,500		85,166		25,883		111,049
Northpointe	25,121		36,001		61,122		56,635		117,757
Venue at Lakewood Ranch	94,869		2,881		97,750		18,814		116,564
Aster at Lely	—		8,902		8,902		40,292		49,194
CityPark View	—		2,641		2,641		8,540		11,181
Avenues at Creekside	104,366		7,986		112,352		94,992		207,344
Citilakes	247,941		15,095		263,036		38,759		301,795
Stone Creek	118,923		3,675		122,598		41,975		164,573
Lenox Portfolio	28,246		3,049		31,295		82,954		114,249
Village at Baldwin	812,219		3,649		815,868		197,764		1,013,632
Crosstown Walk	—		24,053		24,053		42,134		66,187
Overton Rise	54,742		7,565		62,307		23,574		85,881
Avalon Park	29,572		7,221		36,793		83,366		120,159
City Vista	—		—		—		—		—
Sorrel	26,036		—		26,036		255		26,291
	2,112,251		774,832		2,887,083		1,748,747		4,635,830
Student Housing:
North by Northwest	—		—		—		22,609		22,609
Total	$	2,112,251	$	774,832	$	2,887,083	$	1,771,356	$	4,658,439

Net cash provided by financing activities was approximately $356.5 million and $787.3 million for the nine-month periods ended September 30, 2017, and 2016, respectively. During the 2017 period, our significant financing cash sources were approximately $211.4 million of net proceeds from the mortgage financing transactions and approximately $201.8 million of net proceeds from our offerings of our Preferred Stock units. Our significant uses of cash for financing activities during the 2017 period were $121.1 million for repayments of mortgage loan indebtedness and $274.5 million of net repayments on our revolving line of credit. During the 2016 period, our significant financing cash sources were approximately $479.5 million of net proceeds from the mortgage financing transactions and approximately $287.8 million of net proceeds from our Follow-On Series A Offering.

Distributions

In order to maintain our status as a REIT for U.S. federal income tax purposes, we must comply with a number of organizational and operating requirements, including a requirement to distribute 90% of our annual REIT taxable income (which does not equal net income as calculated in accordance with GAAP and determined without regard for the deduction for dividends paid and excluding net capital gains) to our stockholders. As a REIT, we generally will not be subject to federal income taxes on the taxable income we distribute to our stockholders. Generally, our objective is to meet our short-term liquidity requirement of funding the payment of our quarterly Common Stock dividends, as well as monthly dividends to holders of our Series A Redeemable Preferred Stock and our mShares, through net cash generated from operating results.

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Our board of directors reviews the Series A Redeemable Preferred Stock and our mShares dividends monthly to determine whether we have funds legally available for payment of such dividends in cash, and there can be no assurance that the Series A Redeemable Preferred Stock and our mShares dividends will consistently be paid in cash. Dividends may be paid as a combination of cash and stock in order to satisfy the annual distribution requirements applicable to REITs. We expect the aggregate dollar amount of monthly Series A Redeemable Preferred Stock and our mShares dividend payments to increase at a rate that approximates the rate at which we issue new Units from our $1.5 Billion Unit Offering and our mShares Offering.

Our third quarter 2017 Common Stock dividend declaration of $0.235 per share represented an overall increase of 88.0% from our initial Common Stock dividend per share of $0.125 following our IPO, or an annualized dividend growth rate of approximately 14.2% over the same period. Our board of directors reviews the proposed Common Stock dividend declarations quarterly, and there can be no assurance that the current dividend level will be maintained.

We believe that our short-term liquidity needs are and will continue to be adequately funded.

For the nine-month period ended September 30, 2017, our aggregate dividends and distributions totaled approximately $64.7 million. Our cash flows from operating activities of approximately $70.4 million were sufficient to fund our cash dividend distributions for the nine-month period ended September 30, 2017. We expect our cash flow from operations over time to be sufficient to fund our quarterly Common Stock dividends, Class A Unit distributions and our monthly Series A Redeemable Preferred Stock and mShares dividends.

Long-Term Liquidity Needs

We believe our principal long-term liquidity needs are to fund:

• the principal amount of our long-term debt as it becomes due or matures;

• capital expenditures needed for our multifamily communities and retail shopping centers;

• costs associated with current and future capital raising activities;

• costs to acquire additional multifamily communities, retail assets or other real estate and enter into new and fund existing lending opportunities; and

• our minimum distributions necessary to maintain our REIT status.

We intend to finance our future investments with the net proceeds from additional issuances of our securities, including our $1.5 Billion Unit Offering, our mShares Offering (both as defined below), Common Stock, and units of limited partnership interest in our Operating Partnership, and/or borrowings. The success of our acquisition strategy may depend, in part, on our ability to access further capital through issuances of additional securities, especially our $1.5 Billion Unit Offering, details of which are described below. If we are unsuccessful in raising additional funds, we may not be able to obtain any assets in addition to those we have acquired.

On October 11, 2013, the SEC declared effective our registration statement on Form S-3 (File No. 333-183355) for our offering of up to 900,000 Units, with each Unit consisting of one share of our Series A Redeemable Preferred Stock, stated value $1,000 per share and one Warrant to purchase 20 shares of our Common Stock, to be offered from time to time on a “reasonable best efforts” basis. This offering is referred to as the Follow-On Series A Offering. We commenced sales for the Follow-On Series A Offering on January 1, 2014. As of February 14, 2017, we had issued all 900,000 Units from and terminated our Follow-On Series A Offering.

On February 14, 2017, the SEC declared effective out registration statement on Form S-3 (Registration No. 333-211924) for our offering for up to 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock and one Warrant to purchase up to 20 shares of Common Stock, referred to as our $1.5 Billion Unit Offering. The price per Unit is $1,000, subject to adjustment if a participating broker-dealer reduces its commission. We intend to invest substantially all the net proceeds of the $1.5 Billion Unit Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes.

Aggregate offering expenses, including selling commissions and dealer manager fees, will be capped at 11.5% of the aggregate gross proceeds of the $1.5 Billion Unit Offering, of which we will reimburse our Manager up to 1.5% of the gross proceeds of these offerings for all organization and offering expenses incurred, excluding selling commissions and dealer manager fees; however, upon approval by the conflicts committee of our board of directors, we may reimburse our Manager for any such expenses incurred above the 1.5% amount as permitted by the Financial Industry Regulatory Authority.

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On December 2, 2016, the SEC declared effective our registration statement on Form S-3 (Registration No. 333-214531), for our offering of up to 500,000 shares of Series M Redeemable Preferred Stock, or mShares, par value $0.01 per share, or the mShares Offering. The price per mShare is $1,000.  We intend to invest substantially all the net proceeds of the mShares Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes. 

On May 12, 2017, we sold 2,750,000 shares of our Common Stock at a public offering price of $15.25 per share pursuant to an underwritten public offering. On May 30, 2017, we sold an additional 412,500 shares of Common Stock at $15.25 per share pursuant to the exercise in full of an option received in connection with the public offering. The combined gross proceeds of the two sales was approximately $48.2 million before deducting underwriting discounts and commissions and other estimated offering expenses.

The Company has filed a prospectus to issue and sell up to $150 million of Common Stock from time to time in an "at the market" offering, or the 2016 ATM Offering, through the sales agents identified in the prospectus. The Company intends to use any proceeds from the 2016 ATM Offering (a) to repay outstanding amounts under our Credit Facility and (b) for other general corporate purposes, which includes making investments in accordance with the Company's investment objectives. For the nine-month period ended September 30, 2017, we issued and sold approximately 1.7 million shares of our Common Stock for gross proceeds of approximately $28.6 million via our 2016 ATM Offering.

Our ability to raise funds through the issuance of our securities is dependent on, among other things, general market conditions for REITs, market perceptions about us, and the current trading price of our Common Stock. We will continue to analyze which source of capital is most advantageous to us at any particular point in time, but the equity and credit markets may not consistently be available on terms that are attractive to us or at all.

The sources to fulfill our long-term liquidity in the future may include borrowings from a number of sources, including repurchase agreements, securitizations, resecuritizations, warehouse facilities and credit facilities (including term loans and revolving facilities), in addition to our Revolving Credit Facility. We have utilized, and we intend to continue to utilize, leverage in making our investments in multifamily communities and retail shopping centers. The number of different multifamily communities, retail shopping centers and other investments we will acquire will be affected by numerous factors, including the amount of funds available to us. By operating on a leveraged basis, we will have more funds available for our investments. This will allow us to make more investments than would otherwise be possible, resulting in a larger and more diversified portfolio.

We intend to target leverage levels (secured and unsecured) between 50% and 65% of the fair market value of our tangible assets (including our real estate assets, real estate loans, notes receivable, accounts receivable and cash and cash equivalents) on a portfolio basis. As of September 30, 2017, our outstanding debt (both secured and unsecured) was approximately 52.5% of the value of our tangible assets on a portfolio basis based on our estimates of fair market value at September 30, 2017. Neither our charter nor our by-laws contain any limitation on the amount of leverage we may use. Our investment guidelines, which can be amended by our board without stockholder approval, limit our borrowings (secured and unsecured) to 75% of the cost of our tangible assets at the time of any new borrowing. These targets, however, will not apply to individual real estate assets or investments. The amount of leverage we will place on particular investments will depend on our Manager's assessment of a variety of factors which may include the anticipated liquidity and price volatility of the assets in our investment portfolio, the potential for losses and extension risk in the portfolio, the availability and cost of financing the asset, our opinion of the creditworthiness of our financing counterparties, the health of the U.S. economy and the health of the commercial real estate market in general. In addition, factors such as our outlook on interest rates, changes in the yield curve slope, the level and volatility of interest rates and their associated credit spreads, the underlying collateral of our assets and our outlook on credit spreads relative to our outlook on interest rate and economic performance could all impact our decision and strategy for financing the target assets. At the date of acquisition of each asset, we anticipate that the investment cost for such asset will be substantially similar to its fair market value. However, subsequent events, including changes in the fair market value of our assets, could result in our exceeding these limits. Finally, we intend to acquire all our real estate assets through separate single purpose entities and we intend to finance each of these assets using debt financing techniques for that asset alone without any cross-collateralization to our other real estate assets or any guarantees by us or our Operating Partnership. We intend to have no long-term unsecured debt at the Company or Operating Partnership levels, except for our Revolving Line of Credit.

Our secured and unsecured aggregate borrowings are intended by us to be reasonable in relation to our tangible assets and will be reviewed by our board of directors at least quarterly. In determining whether our borrowings are reasonable in relation to our tangible assets, we expect that our board of directors will consider many factors, including without limitation the lending

71

standards of government-sponsored enterprises, such as Fannie Mae and Freddie Mac, for loans in connection with the financing of multifamily properties, the leverage ratios of publicly traded and non-traded REITs with similar investment strategies, and general market conditions. There is no limitation on the amount that we may borrow for any single investment.

Our ability to incur additional debt is dependent on a number of factors, including our credit ratings (if any), the value of our assets, our degree of leverage and borrowing restrictions imposed by lenders. We will continue to monitor the debt markets, including Fannie Mae and/or Freddie Mac (from both of whom we have obtained single asset secured financing on all of our multifamily communities), and as market conditions permit, access borrowings that are advantageous to us.

If we are unable to obtain financing on favorable terms or at all, we may have to curtail our investment activities, including acquisitions and improvements to real properties, which could limit our growth prospects. This, in turn, could reduce cash available for distribution to our stockholders and may hinder our ability to raise capital by issuing more securities or borrowing more money. We may be forced to dispose of assets at inopportune times in order to maintain our REIT qualification and Investment Company Act exemption. Our ability to generate cash from asset sales is limited by market conditions and certain rules applicable to REITs. We may not be able to sell a property or properties as quickly as we would like or on terms as favorable as we would like.

Furthermore, if interest rates or other factors at the time of financing result in higher costs of financing, then the interest expense relating to that financed indebtedness would be higher. Higher interest rates on newly incurred debt may negatively impact us as well. If interest rates increase, our interest costs and overall costs of capital will increase, which could adversely affect our transaction and development activity, financial condition, results of operations, cash flow, our ability to pay principal and interest on our debt and our ability to pay distributions to our stockholders. Finally, sellers may be less inclined to offer to sell to us if they believe we may be unable to obtain financing.

As of September 30, 2017, we had long term mortgage indebtedness of approximately $1.6 billion, all of which was incurred by us in connection with the acquisition or refinancing of our real estate properties.

As of September 30, 2017, we had approximately $17.1 million in unrestricted cash and cash equivalents available to meet our short-term and long-term liquidity needs. We believe that our long-term liquidity needs are and will continue to be adequately funded through the sources discussed above.

Off-Balance Sheet Arrangements

As of September 30, 2017, we had 846,559 outstanding Warrants from our sales of Units. The Warrants are exercisable by the holder at an exercise price of 120% of the current market price per share of the Common Stock on the date of issuance of such Warrant. The current market price per share is determined using the closing market price of the Common Stock immediately preceding the issuance of the Warrant. The Warrants are not exercisable until one year following the date of issuance and expire four years following the date of issuance. As of September 30, 2017, a total of 283,383 Warrants had been exercised into 5,667,660 shares of Common stock and a remaining 514,688 Warrants had passed the initial exercise date and so became potentially exercisable into a total of 10,293,760 shares of Common Stock. The remainder of the Warrants outstanding at September 30, 2017 become potentially exercisable between October 14, 2017 and October 13, 2018 and have exercise prices that range between $15.31 and $22.62 per share. If all the Warrants outstanding at September 30, 2017 became exercisable and were exercised, gross proceeds to us would be approximately $269.7 million and we would as a result issue an additional 16,931,180 shares of Common Stock.

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Contractual Obligations

As of September 30, 2017, our contractual obligations consisted of the mortgage notes secured by our acquired properties and the Revolving Credit Facility. Based on a LIBOR rate of 1.23% at September 30, 2017, our estimated future required payments on these instruments were:

	Total		Less than one year		1-3 years		3-5 years		More than five years
Mortgage debt obligations:
Interest	$	427,358,809	$	58,401,787	$	103,679,620	$	86,059,735	$	179,217,667
Principal	1,596,564,254		44,595,725		308,077,749		392,027,375		851,863,405
Line of Credit:
Interest	17,438		17,438		—		—		—
Principal	43,000,000		43,000,000		—		—		—
Term note:
Interest	50,646		50,646		—		—		—
Principal	11,000,000		11,000,000		—		—		—
Total	$	2,077,991,147	$	157,065,596	$	411,757,369	$	478,087,110	$	1,031,081,072

In addition, we had unfunded real estate loan balances totaling approximately $92.7 million at September 30, 2017.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our primary market risk exposure is interest rate risk. All our floating-rate debt is tied to the 30-day LIBOR. As of September 30, 2017, we have variable rate mortgages on our Avenues at Creekside, Citi Lakes, Royal Lakes Marketplace, Baldwin Park, Cherokee Plaza, Champions Village, SoL, Retreat at Greystone, and Aldridge at Town Village properties with a principal amount of approximately $334.5 million. Two of these mortgages have LIBOR effectively capped at 5.0% and 4.33% (all-in rates of 6.6% and 6.5%) under Freddie Mac's capped adjustable-rate mortgage program. The Royal Lakes Marketplace, Cherokee Plaza and Champions Village mortgages of $9.7 million, $25.4 million and $27.4 million, respectively, are uncapped. Our Revolving Line of Credit accrued interest at a spread of 3.25% over LIBOR as of September 30, 2017; this combined rate is uncapped. In addition, we partially financed the acquisitions of the Retreat at Greystone multifamily community in the amount of $35.2 million at LIBOR plus 175 basis points, the SoL student housing property in the amount of $37.5 million at LIBOR plus 220 basis points and the Aldridge at Town Village multifamily community in the amount of $38.0 million at LIBOR plus 185 basis points under our Acquisition Credit Facility. We intend to refinance these three properties with permanent fixed-rate mortgage financing during 2017. Because of the short term nature of the Revolving Line of Credit and Acquisition Credit Facility instruments, we believe our interest rate risk is minimal. We have no business operations which subject us to trading risk.

We have and will continue to manage interest rate risk as follows:

• maintain a reasonable ratio of fixed-rate, long-term debt to total debt so that floating-rate exposure is kept at an acceptable level;

• place interest rate caps on floating-rate debt where appropriate; and

• take advantage of favorable market conditions for long-term debt and/or equity financings.

We use various financial models and advisors to achieve our objectives.

If interest rates under our floating-rate LIBOR-based indebtedness fluctuated by 100 basis points, our interest costs, based on outstanding borrowings at September 30, 2017, would increase by approximately $3.3 million on an annualized basis, or decrease by approximately $3.2 million on an annualized basis. The difference between the interest expense amounts related to an increase or decrease in our floating-rate interest cost is because LIBOR was 1.23% at September 30, 2017, therefore we have limited the estimate of how much our interest costs may decrease because we use a floor of 0% for LIBOR.

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Item  4. Controls and Procedures

Evaluation of disclosure controls and procedures.

Management of the Company evaluated, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Accounting Officer, the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in the Exchange Act Rule 13a-15(e)) as of September 30, 2017, the end of the period covered by this report. Based on that evaluation, the Company's Chief Executive Officer and Chief Accounting Officer have concluded that the Company's disclosure controls and procedures were effective as of the end of such period to provide reasonable assurance that that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Accounting Officer, as appropriate to allow timely decisions regarding required disclosures.

Changes in internal control over financial reporting.

As required by the Exchange Act Rule 13a-15(d), the Company's Chief Executive Officer and Chief Accounting Officer evaluated the Company's internal control over financial reporting to determine whether any change occurred during the quarter ended September 30, 2017 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. Based on that evaluation, there has been no such change during such period.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Neither we nor our subsidiaries nor, to our knowledge, our Manager is currently subject to any legal proceedings that we or our Manager consider to be material. To our knowledge, none of our communities are currently subject to any legal proceeding that we consider material.

Item 1A. Risk Factors

Other than the following, there have been no material changes to our potential risks and uncertainties presented in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the twelve months ended December 31, 2016 that was filed with the SEC on March 1, 2017.

Increased competition to traditional grocery chains from new market participants, online supermarket retailers and food delivery services could adversely affect our grocery-anchored revenues and cash flow.

As a result of consumers' growing desire to shop online, traditional grocery chains are subject to increasing competition from new market participants and food retailers who have incorporated the internet as a direct-to-consumer channel and internet-only retailers that sell grocery products. For example, Amazon, a leading online retailer, recently reached an agreement to acquire Whole Foods. Additionally, online food delivery services such as Blue Apron are increasingly competing with traditional grocery chains in the food sales market. Competition from these new market participants and selling channels could negatively impact traditional grocery chains, which could adversely affect our grocery-anchored revenues and cash flow. In addition, changing dynamics in the food sales space could result in increased competition, declining same-store sales and store closings in the retail and grocery sector.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

None.

Item  6. Exhibits

EXHIBIT INDEX
Exhibit Number		Description
10.1	(1)	Capital On Demand Sales AgreementTM dated July 10, 2017 between Preferred Apartment Communities, Inc. and National Securities Corporation
10.2	(1)	Capital On Demand Sales AgreementTM dated July 10, 2017 between Preferred Apartment Communities, Inc. and D.A. Davidson & Co.
10.3	(1)	Capital On Demand Sales AgreementTM dated July 10, 2017 between Preferred Apartment Communities, Inc. and JMP Securities LLC
10.4	(1)	Form of Amendment No. 1, dated July 10, 2017, to Capital On Demand Sales AgreementTM, dated May 4, 2016 between Preferred Apartment Communities, Inc., and each of JonesTrading Institutional Services, LLC, FBR Capital Markets & Co., and Canaccord Genuity, Inc.
10.5	(2)	Amendment No. 2 to the Sixth Amended and Restated Management Agreement, effective as of July 1, 2017 and entered into as of August 31, 2017, among Preferred Apartment Communities, Inc., Preferred Apartment Communities Operating Partnership, L.P. and Preferred Apartment Advisors, LLC
12.1	*	Statements Re Computations of Ratios
31.1	*	Certification of John A. Williams, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	*	Certification of Michael J. Cronin, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	*	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	*	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	*	XBRL (eXtensible Business Reporting Language). The following materials from Preferred Apartment Communities, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2017, formatted in XBRL: (i) Consolidated balance sheets at September 30, 2017 and December 31, 2016, (ii) consolidated statements of operations for the three months and six months ended September 30, 2017 and 2016, (iii) consolidated statement of stockholders' equity, (iv) consolidated statement of cash flows and (v) notes to consolidated financial statements.
	*	Filed herewith
	(1)	Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on July 10, 2017
	(2)	Previously filed with the Current Report on Form 8-K filed by the Registrant with the Securities and Exchange Commission on September 1, 2017

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
		PREFERRED APARTMENT COMMUNITIES, INC.
Date: November 6, 2017	By:	/s/ John A. Williams
		John A. Williams
		Chief Executive Officer
Date: November 6, 2017	By:	/s/ Michael J. Cronin
		Michael J. Cronin
		Executive Vice President, Chief Accounting Officer and Treasurer

76

EX-12

Exhibit 12
Statement of Ratios
Preferred Apartment Communities, Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
	Nine months ended September 30,			Year ended December 31,
	2017			2016			2015			2014			2013			2012
Earnings:
Net income (loss)	$	33,408,461		$	(9,843,414	)	$	(2,425,989	)	$	2,127,203		$	(4,205,492	)	$	(146,630	)
Add:
Fixed charges	48,085,016			44,284,144			21,315,731			10,188,187			5,780,526			2,504,679
Less: Net (income) loss attributable to
non-controlling interests	(1,097,008		)	310,291			25,321			(33,714		)	222,404			—
Total earnings	$	80,396,469		$	34,751,021		$	18,915,063		$	12,281,676		$	1,797,438		$	2,358,049
Fixed charges:
Interest expense	$	44,178,263		$	40,688,714		$	19,841,455		$	9,183,128		$	4,921,797		$	2,310,667
Amortization of deferred loan costs
related to mortgage indebtedness	3,906,753			3,595,429			1,474,276			1,005,059			858,729			194,012
Total fixed charges	48,085,016			44,284,143			21,315,731			10,188,187			5,780,526			2,504,679
Preferred dividends	46,042,181			41,080,645			18,751,934			7,382,320			3,963,146			450,806
Total Combined fixed charges and
preferred dividends	$	94,127,197		$	85,364,788		$	40,067,665		$	17,570,507		$	9,743,672		$	2,955,485
Ratio of Earnings to Combined fixed
charges and preferred dividends (A)	0.85			0.41			0.47			0.7			0.18			0.80

(A) The computation of our ratios of earnings to combined fixed charges and preferred stock dividends indicates that earnings were inadequate to cover combined fixed charges and preferred stock dividends by approximately $13.7 million, $50.6 million, $21.2 million, $5.3 million, $7.9 million and $597,000 for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016, 2015, 2014, 2013 and 2012, respectively. Our net loss to common stockholders for the year ended December 31, 2013 includes the effect of a one-time deemed non-cash dividend of approximately $7.0 million related to a beneficial conversion feature within our Series B Preferred Stock, all of which was converted to Common Stock on May 16, 2013. Combined fixed charges and preferred dividends for the twelve months ended December 31, 2013 do not reflect the deemed non-cash dividend.

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, John A. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Preferred Apartment Communities, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2017	/s/ John A. Williams
	John A. Williams
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Michael J. Cronin, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Preferred Apartment Communities, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 6, 2017	/s/ Michael J. Cronin
	Michael J. Cronin
	Executive Vice President, Chief Accounting Officer and Treasurer

EX-32.1

Exhibit 32.1

Furnished (but not filed) as an exhibit to the periodic report identified in the Certification.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Preferred Apartment Communities, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission (the "Report"), I, John A. Williams, President and Chief Executive Officer, of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2017	/s/ John A. Williams
	John A. Williams
	Chief Executive Officer

EX-32.2

Exhibit 32.2

Furnished (but not filed) as an exhibit to the periodic report identified in the Certification.

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Preferred Apartment Communities, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2017 as filed with the Securities and Exchange Commission (the "Report"), I, Michael J. Cronin, Chief Accounting Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2017	/s/ Michael J. Cronin
	Michael J. Cronin
	Executive Vice President, Chief Accounting Officer and Treasurer

XML

Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information
entity registrant name	PREFERRED APARTMENT COMMUNITIES INC
entity CIK	0001481832
Current fiscal year end date	--12-31
document type	10-Q
document period end date	Sep. 30, 2017
document fiscal year focus	2017
entity filer category	Accelerated Filer
document fiscal period focus	Q3
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
amendment flag	false
entity common stock, shares outstanding		36,692,002

XML

Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Real estate
Land	$ 345,110,008	$ 299,547,501
Building and improvements	1,802,229,802	1,513,293,760
Tenant Improvements	45,208,781	23,642,361
Furniture, fixtures, and equipment	183,879,719	126,357,742
Construction in progress	11,946,666	2,645,634
Gross real estate	2,388,374,976	1,965,486,998
Less: accumulated depreciation	(147,799,077)	(103,814,894)
Net real estate	2,240,575,899	1,861,672,104
Real estate loans	243,974,963	201,855,604
Loans and Leases Receivable, Related Parties	165,229,952	130,905,464
Total real estate and real estate loan, net	2,649,780,814	2,194,433,172
Cash and cash equivalents	17,054,190	12,321,787
Restricted cash	50,645,432	55,392,984
Financing Receivable, Net	18,287,857	15,499,699
Note receivable	54,815,000
Due from Related Parties, Current	24,063,639	22,115,976
Interest Receivable	27,726,412	21,894,549
Intangible Assets, Net (Excluding Goodwill)	86,295,192	79,156,400
Deferred loan costs, net of amortization of $155,953 and $64,480	(1,548,798)	(1,768,779)
Deferred offering costs	6,025,155	2,677,023
tenants capitalized lease inducements	11,914,367	261,492
Other assets	34,377,412	15,310,741
Total assets	2,927,719,268	2,420,832,602
Liabilities
Mortgage notes payable	1,569,569,425	1,305,870,471
Accounts payable and accrued expenses	34,298,797	20,814,910
Line of Credit Facility, Amount Outstanding	43,000,000	127,500,000
Bank Loans	11,000,000	11,000,000
Short-term Bank Loans and Notes Payable	10,994,194	10,959,905
Participating Mortgage Loans, Participation Liabilities, Amount	17,877,914	20,761,819
Interest Payable, Current	4,099,239	3,541,640
Dividends payable	13,729,774	10,159,629
Below Market Lease, Net	31,691,040	29,774,033
Security deposits and prepaid rents	8,946,216	6,189,033
Deferred income	23,361,489	0
Total liabilities	1,757,568,088	1,535,571,440
Stockholder's equity
Common Stock, $0.01 par value per share; 400,066,666 shares authorized; 5,179,093 and 5,149,325 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	355,977	264,982
Additional paid in capital	1,157,030,161	906,737,470
Accumulated deficit	9,079,810	(23,231,643)
Total stockholders' equity	1,166,477,228	883,779,953
Non-controlling interest	3,673,952	1,481,209
Total equity	1,170,151,180	885,261,162
Total liabilities and equity	2,927,719,268	2,420,832,602
Series A Preferred Stock [Member]
Stockholder's equity
Series A Redeemable Preferred Stock, $0.01 par value per share; 150,000 shares authorized; 12,178 and 0 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	11,156	9,144
Series M Preferred Stock [Member]
Stockholder's equity
Series A Redeemable Preferred Stock, $0.01 par value per share; 150,000 shares authorized; 12,178 and 0 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively	124	$ 0
Mortgages [Member]
Liabilities
Mortgage notes payable	$ 1,596,564,253

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Balance Sheets (Parentheticals) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets, Accumulated Amortization	$ 64,043,523	$ 46,396,254
sales inducements accumulated amortization	251,941	14,904
Allowance for Doubtful Accounts Receivable	488,953	663,912
Below Market Lease, Accumulated Amortization	$ 6,858,914	$ 3,771,393
Shares outstanding, preferred stock	1,115,616
Common Stock, par value per share	$ 0.01
Common stock, shares outstanding	35,597,744
Series A Preferred Stock [Member]
Series A Redeemable Preferred Stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	3,050,000	3,050,000
Preferred stock, shares issued	1,141,331	924,855
Shares outstanding, preferred stock	1,115,616	914,422
Series M Preferred Stock [Member]
Series A Redeemable Preferred Stock, par value per share	$ 0.01
Preferred stock, shares authorized	500,000
Preferred stock, shares issued	12,396	0
Shares outstanding, preferred stock	12,396	0
Common Stock [Member]
Common Stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	400,066,666	400,066,666
Common stock, shares issued	35,597,744	26,498,192
Common stock, shares outstanding	35,597,744	26,498,192
Line of Credit [Member]
Deferred loan costs, accumulated amortization	$ 960,072	$ 422,873
Mortgages [Member]
Deferred loan costs, accumulated amortization		22,007,641
Medium-term Notes [Member]
Deferred loan costs, accumulated amortization	$ 5,806	$ 40,095

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Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Rental revenues	$ 50,072,135	$ 37,319,207	$ 143,676,962	$ 96,541,544
Other property revenues	9,334,939	5,221,887	26,592,295	13,290,330
Interest income on loan and note receivable	9,673,536	7,194,742	26,111,674	20,984,625
Revenue from Related Parties	5,819,589	3,801,501	15,971,516	10,310,563
Total revenues	74,900,199	53,537,337	212,352,447	141,127,062
Operating expenses:
Property operating and maintenance	7,900,753	5,504,848	21,637,551	13,883,133
property salaries related party	3,402,623	2,808,402	9,649,843	7,688,470
Property management fees	2,053,446	1,724,411	6,016,003	4,308,841
Real estate taxes	7,705,706	4,789,085	23,289,784	15,457,134
General and administrative	1,701,574	1,144,256	4,861,083	3,255,728
Share-based Compensation	863,412	638,414	2,607,667	1,867,706
Depreciation and amortization	28,903,770	21,664,363	82,186,960	54,981,064
Acquisition costs	0	1,357,537	14,002	6,885,864
Management fees	5,147,606	3,759,084	14,524,517	9,484,161
Other Expenses	1,156,056	1,338,343	3,820,010	4,216,838
Total operating expenses	58,834,946	44,728,743	168,607,420	122,028,939
manager's fees deferred	(655,944)	(736,960)	(1,001,864)	(1,458,245)
Operating Expenses	58,179,002	43,991,783	167,605,556	120,570,694
Operating Income (Loss)	16,721,197	9,545,554	44,746,891	20,556,368
Interest Expense	16,678,418	12,234,174	48,085,016	30,688,505
Gain (Loss) on Extinguishment of Debt	0	0	888,428	0
Gains (Losses) on Sales of Investment Real Estate	0	0	37,635,014	4,271,506
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	42,779	(2,688,620)	33,408,461	(5,860,631)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	42,779	(2,688,620)	33,408,461	(5,860,631)
net loss attributable to non-controlling interests	(1,119)	86,484	(1,097,008)	175,045
Net loss attributable to the Company	41,660	(2,602,136)	32,311,453	(5,685,586)
Dividends to preferred stockholders	(16,420,996)	(11,015,706)	(46,042,181)	(28,341,723)
Deemed noncash dividend			33,094	0
NetIncomeAllocatedToUnvestedRestrictedShares	(4,302)	(6,159)	(11,743)	(12,434)
Net Income (Loss) Available to Common Stockholders, Basic	$ (16,383,638)	$ (13,624,001)	$ (13,742,471)	$ (34,039,743)
Earnings Per Share, Basic	$ (0.49)	$ (0.56)	$ (0.46)	$ (1.45)
Dividends, Common Stock, Cash			$ 21,668,290
Common Stock, Dividends, Per Share, Declared	$ 0.235	$ 0.2025	$ 0.69	$ 0.5975
Weighted Average Number of Shares Outstanding, Basic and Diluted	33,539,920	24,340,791	30,147,497	23,552,951
Weighted Average Number of Shares Outstanding, Diluted	33,539,920	24,340,791	30,147,497	23,552,951

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Statements of Operations (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement Parentheticals [Abstract]
property management fees paid to related party	$ 1,571,448	$ 1,140,603	$ 3,005,919	$ 2,211,691
acquisition fees paid to related party	$ 0	$ 313,398	$ 0	$ 491,409

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Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss attributable to the Company	$ 32,311,453	$ (5,685,586)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	33,408,461	(5,860,631)
Reconciliation of net loss to net cash provided by (used in) operating activities:
Depreciation expense	60,845,325	39,387,351
Amortization expense	21,341,635	15,593,713
Amortization of above and below Market Leases	(2,394,233)	(1,118,329)
Deferred fee income amortization	(1,526,037)	(725,913)
Deferred Sales Inducement Cost, Amortization Expense	364,439	0
Deferred loan cost amortization	3,906,753	2,431,809
deferred interest income	(5,831,863)	(3,374,473)
Share-based Compensation	2,607,667	1,867,706
deferred miscellaneous income amortization	189,400	56,582
Gain (Loss) on Disposition of Assets	(37,635,014)	(4,271,506)
Gain (Loss) on Extinguishment of Debt	888,428	0
Changes in operating assets and liabilities:
(Increase) in tenant accounts receivable	(7,818,433)	(1,230,183)
Payments for (Proceeds from) Tenant Allowance	(11,889,912)	0
(Increase) decrease in other assets	11,640,777	8,843,052
Increase in accounts payable and accrued expenses	2,349,282	2,258,193
Net cash provided by (used in) operating activities	70,446,675	53,857,371
Investing activities:
Investments in real estate loans	(119,225,599)	(123,427,150)
Proceeds from Principal Repayments on Loans and Leases Held-for-investment	42,495,393	36,672,482
Notes receivable issued	3,506,767	12,895,101
Deferred acquisition fee on real estate loans	(25,740,403)	(25,821,121)
Deferred real estate loan income	(6,249,749)	(8,730,166)
Acquisition of properties, net	(455,619,414)	(740,597,973)
Proceeds from Sale of Real Estate Held-for-investment	118,237,697	10,606,386
Additions to real estate assets - improvements	(12,200,993)	(7,613,065)
Increase (Decrease) in Earnest Money Deposits Outstanding	2,428,908	(3,118,370)
Increase in cash held in escrow and restricted cash	5,389,992	(9,070,073)
AcquisitionFeesRelatedPartyCosts	(1,296,383)	1,374,828
Increase (Decrease) in Accounts and Notes Receivable	23,468,017	23,791,676
Net cash (used in) investing activities	(422,213,001)	(833,091,140)
Financing activities:
Proceeds from mortgage notes payable	332,427,500	479,494,000
Extinguishment of Debt, Amount	(121,065,587)	(7,748,011)
Payments for mortgage loan costs	(11,579,899)	(15,400,974)
Payment for Debt Extinguishment or Debt Prepayment Cost	(817,313)	0
loan balance proceeds from real estate loan participants	224,188	5,575,484
payments received from real estate loan participants	(3,466,500)	0
Proceeds from non-revolving lines of credit	190,000,000	357,136,020
Payments on revolving lines of credit	(274,500,000)	(309,636,020)
Proceeds from Short-term Debt	0	46,000,000
Repayments of Short-term Debt	0	(35,000,000)
Proceeds from sales of Units, net of offering costs	201,799,430	287,830,612
Proceeds from Issuance of Common Stock	74,213,118	2,810,156
Proceeds from Warrant Exercises	39,430,314	19,831,294
Dividends declared and paid	(19,250,649)	(13,523,075)
Payments of Ordinary Dividends, Preferred Stock and Preference Stock	(44,889,676)	(26,735,870)
Payments for deferred offering costs, net of non cash items	(5,420,718)	(3,476,989)
Net Cash Provided by (Used in) Financing Activities	356,498,729	787,256,548
Cash beginning of period	12,321,787	2,439,605
Cash end of period	17,054,190	10,462,384
Supplemental cash flow information:
Cash paid for interest	43,493,263	26,569,933
Noncash Investing and Financing Items [Abstract]
Accrued capital expenditures	2,531,863	1,125,774
Deemed noncash dividend	33,094	0
Dividends payable to non controlling interests	211,781	179,449
Payments of Ordinary Dividends, Noncontrolling Interest	(605,479)	(350,079)
Accrued and payable deferred offering costs	479,441	690,643
receivable for deferred offering costs	620,201	149,288
Payments for Tenant Improvements	23,818,305	0
Reclass of offering costs from deferred asset to equity	$ 2,193,139	$ 6,080,235
Common Unit, Issued	0	12,500,000
Proceeds from Delayed Tax Exempt Exchange	$ 31,288,252	$ 0
Payments for Delayed Tax Exempt Exchange	31,288,252	0
Loans Assumed	57,324,227	43,103,275
Cash and Cash Equivalents, Period Increase (Decrease)	4,732,403	8,022,779
Share-based Compensation	4,088,499	3,152,312
Noncash settlement of loans	324,638	482,871
loan fees received	2,592,766	(2,695,961)
mortgage debt refinanced	65,000,000	0
Common Stock [Member]
Noncash Investing and Financing Items [Abstract]
Dividends payable	8,158,256	4,992,038
Series A Preferred Stock [Member]
Noncash Investing and Financing Items [Abstract]
Dividends payable	5,481,080	3,885,123
Series M Preferred Stock [Member]
Noncash Investing and Financing Items [Abstract]
Dividends payable	90,438
Parent [Member]
Operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	32,311,453
wade green [Member]
Operating activities:
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(259,000)
Noncash Investing and Financing Items [Abstract]
business combination cash consideration transferred	$ 0	$ 5,072,659

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Statements of Equity and Accumulated Deficit - 9 months ended Sep. 30, 2017 - USD ($)	Total	Series A Preferred Stock [Member]	Series M Preferred Stock [Member]	Common Stock [Member]	Common Stock [Member] Series A Preferred Stock [Member]	Common Stock [Member] Series M Preferred Stock [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Series A Preferred Stock [Member]	Additional Paid-in Capital [Member] Series M Preferred Stock [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Series A Preferred Stock [Member]	Accumulated Deficit [Member] Series M Preferred Stock [Member]	Total Stockholders' Equity [Member]	Total Stockholders' Equity [Member] Series A Preferred Stock [Member]	Total Stockholders' Equity [Member] Series M Preferred Stock [Member]	Noncontrolling Interest [Member]	Noncontrolling Interest [Member] Series A Preferred Stock [Member]	Noncontrolling Interest [Member] Series M Preferred Stock [Member]	Preferred Stock [Member] Series A Preferred Stock [Member]	Preferred Stock [Member] Series M Preferred Stock [Member]	ClassBUnits [Member]	ClassBUnits [Member] Common Stock [Member]	ClassBUnits [Member] Additional Paid-in Capital [Member]	ClassBUnits [Member] Accumulated Deficit [Member]	ClassBUnits [Member] Total Stockholders' Equity [Member]	ClassBUnits [Member] Noncontrolling Interest [Member]	ClassBUnits [Member] Preferred Stock [Member] Series A Preferred Stock [Member]
Proceeds from Issuance of Preferred Stock and Preference Stock	$ 228,250,765						$ 228,248,476						$ 228,250,765						$ 2,289
Balance at Dec. 31, 2016	885,261,162			$ 264,982			906,737,470			$ (23,231,643)			883,779,953			$ 1,481,209			9,144
Stock Redeemed or Called During Period, Value	(4,500,405)			5,922			(4,506,174)						(4,500,405)						(153)
Stock Issued During Period, Value, New Issues	76,804,479			49,067			76,755,412						76,804,479
exercise of warrants	43,377,257			33,875			43,343,382			0			43,377,257			0			0
restricted stock vesting	0			216			(216)			0			0			0			0
Stock Issued During Period, Value, Conversion of Units	0			1,915			1,676,579			0			1,678,494			(1,678,494)			0
amortization of Class A Unit awards																					$ 2,250,367	$ 0	$ 0	$ 0	$ 0	$ 2,250,367	$ 0
Syndication and offering costs	(26,725,432)			0			(26,725,432)			0			(26,725,432)			0			0
Stock Issued During Period, Value, Share-based Compensation, Gross	357,300			0			357,300			0			357,300			0			0
Dividends, Common Stock, Cash	(21,668,290)						(21,668,290)						(21,668,290)
Balance at Sep. 30, 2017	1,170,151,180			355,977			1,157,030,161			9,079,810			1,166,477,228			3,673,952			11,280
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	33,408,461			0			0			32,311,453			32,311,453			1,097,008			0
non-controlling interest equity adjustment	0			0			(1,146,165)			0			(1,146,165)			1,146,165			0
Payments to Noncontrolling Interests	$ (622,303)			$ 0			$ 0			$ 0			$ 0			$ (622,303)			0
Dividends, Preferred Stock		$ (45,791,950)	$ (250,231)		$ 0	$ 0		$ (45,791,950)	$ (250,231)		$ 0	$ 0		$ (45,791,950)	$ (250,231)		$ 0	$ 0	$ 0	$ 0

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Statements of Equity and Accumulated Deficit Parenthetical	9 Months Ended
	Sep. 30, 2017 $ / shares
Common Stock, Dividends, Per Share, Declared	$ 0.69
Series A Preferred Stock [Member]
Preferred Stock, Dividends Per Share, Declared	$ 5.00

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Organization

9 Months Ended

Sep. 30, 2017

Organization [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Organization and Basis of Presentation

Preferred Apartment Communities, Inc. was formed as a Maryland corporation on September 18, 2009, and elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code, effective with its tax year ended December 31, 2011. Unless the context otherwise requires, references to the "Company", "we", "us", or "our" refer to Preferred Apartment Communities, Inc., together with its consolidated subsidiaries, including Preferred Apartment Communities Operating Partnership, L.P., or the Operating Partnership. The Company was formed primarily to acquire and operate multifamily properties in select targeted markets throughout the United States. As part of its business strategy, the Company may enter into forward purchase contracts or purchase options for to-be-built multifamily communities and may make real estate related loans, provide deposit arrangements, or provide performance assurances, as may be necessary or appropriate, in connection with the development of multifamily communities and other properties. As a secondary strategy, the Company also may acquire or originate senior mortgage loans, subordinate loans or real estate loan investments secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily related assets and invest a lesser portion of its assets in other real estate related investments, including other income-producing property types, senior mortgage loans, subordinate loans or real estate loan investments secured by interests in other income-producing property types, or membership or partnership interests in other income-producing property types as determined by its Manager (as defined below) as appropriate for the Company. The Company is externally managed and advised by Preferred Apartment Advisors, LLC, or its Manager, a Delaware limited liability company and related party (see Note 6).

As of September 30, 2017, the Company had 35,597,744 shares of common stock, par value $0.01 per share, or Common Stock, issued and outstanding and was the approximate 97.5% owner of the Operating Partnership at that date. The number of partnership units not owned by the Company totaled 901,195 at September 30, 2017 and represented Class A OP Units of the Operating Partnership, or Class A OP Units. The Class A OP Units are convertible at any time at the option of the holder into the Operating Partnership's choice of either cash or Common Stock. In the case of cash, the value is determined based upon the trailing 20-day volume weighted average price of the Company's Common Stock.

The Company controls the Operating Partnership through its sole general partner interest and conducts substantially all of its business through the Operating Partnership. The Company has determined the Operating Partnership is a variable interest entity, or VIE, of which the Company is the primary beneficiary. New Market Properties, LLC owns and conducts the business of our portfolio of grocery-anchored shopping centers. Preferred Office Properties, LLC owns and conducts the business of our portfolio of office buildings. Preferred Campus Communities, LLC owns and conducts the business of our portfolio of off-campus student housing communities. Each of these entities are wholly-owned subsidiaries of the Operating Partnership.

Basis of Presentation

These consolidated financial statements include all of the accounts of the Company and the Operating Partnership presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. All significant intercompany transactions have been eliminated in consolidation. Certain adjustments have been made consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair presentation of the Company's financial condition and results of operations. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The year end condensed balance sheet data was derived from audited financial statements, but does not include all the disclosures required by GAAP. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 1, 2017.

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Significant Accounting Policies

9 Months Ended

Sep. 30, 2017

Summary of Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Summary of Significant Accounting Policies

Acquisitions and Impairments of Real Estate Assets

When the Company acquires property, it allocates the aggregate purchase price to tangible assets, consisting of land, building, site improvements and furniture, fixtures and equipment, and identifiable intangible assets, consisting of the value of in- place leases and above-market and below-market leases as described further below, using estimated fair values of each component at the time of purchase. The Company follows the guidance as outlined in ASC 805-10, Business Combinations, as amended by ASU-2017-01.

Tangible assets

The fair values of land acquired is calculated under the highest and best use model, using formal appraisals and comparable land sales, among other inputs. Building value is determined by valuing the property on a “go-dark” basis as if it were vacant, and also using a replacement cost approach, which two results are then reconciled. Site improvements are valued using replacement cost. Management determines the as-if-vacant fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases, including leasing commissions and other related costs. The values of furniture, fixtures, and equipment are estimated by calculating their replacement cost and reducing that value by factors based upon estimates of their remaining useful lives.

Identifiable intangible assets

In-place leases

Multifamily communities and student housing properties

The fair value of in-place leases are estimated by calculating the estimated time to fill a hypothetically empty apartment complex to its stabilization level (estimated to be 93% occupancy) based on historical observed move-in rates for each property, and which approximate market rates. Carrying costs during these hypothetical expected lease-up periods are estimated, considering current market conditions and include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates. The intangible assets are calculated by estimating the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. The acquired in-place lease values are amortized to operating expense over the average remaining non-cancelable term of the respective in-place leases.

Grocery-anchored shopping centers and office buildings

The fair value of in-place leases represent the value of direct costs associated with leasing, including opportunity costs associated with lost rentals that are avoided by acquiring in-place leases. Direct costs associated with obtaining a new tenant include commissions, legal and marketing costs, incentives such as tenant improvement allowances and other direct costs. Such direct costs are estimated based on our consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the estimated market lease rates and the estimated absorption period of the space. These direct costs and opportunity costs are included in the accompanying consolidated balance sheets as acquired intangible assets and are amortized to expense over the remaining term of the respective leases.

Above-market and below-market lease values

Multifamily communities and student housing properties

These values are usually not significant or are not applicable for these properties.

Grocery-anchored shopping centers and office buildings

The values of above-market and below-market leases are developed by comparing the Company's estimate of the average market rents and expense reimbursements to the average contract rent at the property acquisition date. The amount by which contract rent and expense reimbursements exceed estimated market rent are summed for each individual lease and discounted for a singular aggregate above-market lease intangible asset for the property. The amount by which estimated market rent exceeds contract rent and expense reimbursements are summed for each individual lease and discounted for a singular aggregate below-market lease intangible liability. The above-market or below-market lease values are recorded as a reduction or increase, respectively, to rental revenue over the remaining noncancelable term of the respective leases, plus any below-market probable renewal options.

Impairment assessment

The Company evaluates its tangible and identifiable intangible real estate assets for impairment when events such as declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total undiscounted cash flows of the asset group, including proceeds from disposition, are compared to the net book value of the asset group. If this test indicates that impairment exists, an impairment loss is recorded in earnings equal to the shortage of the book value to fair value, calculated as the discounted net cash flows of the asset group.

Revenue Recognition

Multifamily communities and student housing properties

Rental revenue is recognized when earned from residents of the Company's multifamily communities, which is over the terms of rental agreements, typically of 12 months’ duration. The Company evaluates the collectability of amounts due from residents and maintains an allowance for doubtful accounts for estimated losses resulting from the inability of residents to make required payments then due under lease agreements. The balance of amounts due from residents are generally deemed uncollectible 30 days beyond the due date, at which point they are fully reserved.

Grocery-anchored shopping centers and office buildings

Rental revenue from tenants' operating leases in the Company's grocery-anchored shopping centers and office buildings is recognized on a straight-line basis over the term of the lease. Revenue based on "percentage rent" provisions that provide for additional rents that become due upon achievement of specified sales revenue targets (as specified in each lease agreement) is recognized only after the tenant exceeds its specified sales revenue target. Revenue from reimbursements of the tenants' share of real estate taxes, insurance and common area maintenance, or CAM, costs are recognized in the period in which the related expenses are incurred. Lease termination revenues are recognized ratably over the revised remaining lease term after giving effect to the termination notice or when tenant vacates and the Company has no further obligations under the lease. Rents and tenant reimbursements collected in advance are recorded as prepaid rent within other liabilities in the accompanying consolidated balance sheets. The Company estimates the collectability of the tenant receivable related to rental and reimbursement billings due from tenants and straight-line rent receivables, which represent the cumulative amount of future adjustments necessary to present rental revenue on a straight-line basis, by taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. The Company may provide retail and office building tenants an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of rental revenue. Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease. When the Company is the owner of the leasehold improvements, recognition of rental revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements. For our Preferred Office Properties, if the improvement is deemed to be a “landlord asset,” and the tenant funded the tenant improvements, the cost is amortized over the term of the underlying lease as rental revenues. In order to qualify as a landlord asset, the specifics of the tenant’s assets are reviewed, including the Company's approval of the tenant’s detailed expenditures, whether such assets may be usable by other future tenants, whether the Company has consent to alter or remove the assets from the premises and generally remain the Company's property at the end of the lease.

Acquisition Costs

Through December 31, 2016, the Company expensed property acquisition costs as incurred, which include costs such as due diligence, legal, certain accounting, environmental and consulting, when the acquisition constituted a business combination. As described below in the section entitled New Accounting Pronouncements, Accounting Standards Update 2017-01 was adopted by the Company effective January 1, 2017, which changed the definition of a business. Under this new guidance, most property acquisitions made by the Company will fall within the category of acquired assets rather than acquired businesses. This distinction will cause the Company to capitalize its costs for acquisitions (including, effective July 1, 2017, a 1% acquisition fee), allocate them to the fair value of acquired assets and liabilities and amortize these costs over the remaining useful lives of those assets and liabilities.

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a single comprehensive revenue recognition model for contracts with customers (excluding certain contracts, such as lease contracts) to improve comparability within industries. ASU 2014-09 requires an entity to recognize revenue to reflect the transfer of goods or services to customers at an amount the entity expects to be paid in exchange for those goods and services and provide enhanced disclosures, all to provide more comprehensive guidance for transactions such as service revenue and contract modifications. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018, when effective. In addition, the evaluation of non-lease components under ASU 2014-09 will not be effective until Accounting Standards Update No. 2016-02, Leases (Topic 842), ("ASU 2016-02") becomes effective (see further discussion below), which will be first quarter of 2019 for the Company. The Company has determined that approximately 90% of its revenues from its New Market Properties and office building segments are derived from either long-term leases with its tenants or reimbursement of property tax and insurance expenses, which are excluded from the scope of the ASU 2014-09. Of the remaining 10% of New Market Properties and office building segment revenues, the majority is comprised of common area maintenance (“CAM”) reimbursements, which is a non-lease component under ASU 2014-09 and therefore within its scope of adoption. Based on management's assessment to date, the Company does not expect the timing of the recognition of reimbursement revenue and other miscellaneous income to change as a result of the new guidance, though certain classifications will change between rental revenue and tenant reimbursements. Similarly, the Company's multifamily communities segment derives the majority of its revenues from rental operations, to which this standard is not applicable. However, the Company does provide non-rental services to its residents related to ancillary services and is currently evaluating the various revenue streams to identify any potential sources which may require bifurcation and reclassification. The Company is continuing to evaluate the impact the adoption of ASU 2014-09 will have on its results of operations and financial condition.

In January 2016, the FASB issued Accounting Standards Update 2016-01 ("ASU 2016-01"), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The new standard's applicable provisions to the Company include an elimination of the disclosure requirement of the significant inputs and assumptions underlying the fair value calculations of its financial instruments which are carried at amortized cost. The standard is effective on January 1, 2018, and early adoption is not permitted. The adoption of ASU 2016-01 will not impact the Company's results of operations or financial condition.

In February 2016, the FASB issued Accounting Standards Update 2016-02 ("ASU 2016-02"), Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and supersedes the previous standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company anticipates adopting ASC 842 utilizing the modified retrospective method and is continuing to evaluate the impacts this standard will have on its results of operations and financial condition.

In June 2016, the FASB issued Accounting Standards Update 2016-13 ("ASU 2016-13"), Financial Instruments—Credit Losses

(Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial instruments carried at amortized cost to be presented at the net amount expected to be collected, utilizing a valuation account which reflects the cumulative net adjustments from the gross amortized cost value. Under existing GAAP, entities would not record a valuation allowance until a loss was probable of occurring. The standard is effective for the Company on January 1, 2020. The Company is currently evaluating methods of deriving initial valuation accounts to be applied to its real estate loan portfolio. The Company is continuing to evaluate the pending guidance but does not believe the adoption of ASU 2016-13 will have a material impact on its results of operations or financial condition, since the Company has not yet experienced a credit loss related to any of its financial instruments.

In August 2016, the FASB issued Accounting Standards Update 2016-15 ("ASU 2016-15"), Statement of Cash Flows—(Topic 326): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies or establishes guidance for the presentation of various cash transactions on the statement of cash flows. The portion of the guidance applicable to the Company's business activities include the requirement that cash payments for debt prepayment or debt extinguishment costs be presented as cash out flows for financing activities. The standard is effective for the Company on January 1, 2018. The adoption of ASU 2016-15 will not impact the Company’s consolidated financial statements, since its current policy is to classify such costs as cash out flows for financing activities. 

In November 2016, the FASB issued Accounting Standards Update 2016-18 ("ASU 2016-18"), Statement of Cash Flows—(Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company plans to adopt ASU 2016-18 on January 1, 2018. The Company currently reports changes in restricted cash within the investing activities section of its consolidated statements of cash flows and does not expect the adoption of ASU 2016-18 to impact its results of operations and financial condition.

In January 2017, the FASB issued Accounting Standards Update 2017-01 ("ASU 2017-01"), Business Combinations - (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted ASU 2017-01 as of January 1, 2017. The Company believes its future acquisitions of multifamily communities, office buildings, grocery-anchored shopping centers, and student housing properties will generally qualify as asset acquisitions. To the extent acquisitions are deemed to be asset acquisitions, acquisition costs have been and will be capitalized and amortized rather than expensed as incurred. The impact of the adoption of ASU 2017-01 was an decrease of approximately $3.4 million of the Company's reported net income available to common stockholders for the three-month period ended September 30, 2017 and a decrease of approximately $6.1 million of the Company's reported net loss available to common stockholders for the nine-month period ended September 30, 2017 than it would have under previous guidance.

In February 2017, the FASB issued Accounting Standards Update 2017-05 (“ASU 2017-05”), Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets, and is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017.  The new standard may be applied retrospectively to each prior period presented or under the modified retrospective method, with the cumulative effect recognized as of the date of adoption. The Company currently expects to adopt ASU 2017-05 utilizing the modified retrospective method and is continuing to evaluate the effect the adoption of ASU 2017-05 will have on its results of operations and financial condition.

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Real Estate Assets (Notes)

9 Months Ended

Sep. 30, 2017

Real Estate Assets [Abstract]

Business Combination Disclosure

Real Estate Assets

The Company's real estate assets consisted of:

	As of:
	9/30/17	12/31/16
Multifamily communities:
Properties (1)	29	24
Units	9,086	8,049
New Market Properties (2)
Properties	37	31
Gross leasable area (square feet) (3)	3,854,196	3,295,491
Student housing properties:
Properties	2	1
Units	444	219
Beds	1,319	679
Preferred Office Properties:
Properties	3	3
Rentable square feet	1,094,000	1,096,834
(1) The acquired second phase of the Summit Crossing community is managed in combination with the initial phase and so together are considered a single property, as are the three assets that comprise the Lenox Portfolio.
(2) See note 12, Segment information.
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and not included in the totals above.

Storm-related costs

The Company sustained damages at its Stone Creek multifamily community from Hurricane Harvey during the third quarter. The resulting impact required the write-off of approximately $6.9 million in depreciated real estate assets. Additional storm-related costs included approximately $217,000 during the three-month period ended September 30, 2017 for the related insurance deductible, lost rent, and other related costs.

Multifamily communities sold

On January 20, 2017, the Company closed on the sale of its 364-unit multifamily community in Kansas City, Kansas, or Sandstone Creek, to an unrelated third party for a purchase price of $48.1 million, exclusive of closing costs and resulting in a gain of $0.3 million, which is net of disposition expenses including $1.4 million of debt defeasance related costs. Sandstone Creek contributed approximately $1.2 million and $(0.9) million of net income (loss) to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

On March 7, 2017, the Company closed on the sale of its 408-unit multifamily community in Atlanta, Georgia, or Ashford Park, to an unrelated third party for a purchase price of $65.5 million, exclusive of closing costs and resulting in a gain of $30.4 million, which is net of disposition expenses including $1.1 million of debt defeasance related costs plus a prepayment premium of approximately $0.4 million. Ashford Park contributed approximately $2.3 million and $0.6 million of net income to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

On May 25, 2017, the Company closed on the sale of its 300-unit multifamily community in Dallas, Texas, or Enclave at Vista Ridge, to an unrelated third party for a purchase price of $44.0 million, exclusive of closing costs and resulting in a gain of $6.9 million, net of disposition expenses including $2.1 million of debt defeasance related costs. Enclave at Vista Ridge contributed approximately $9.8 million and $(0.2) million of net income (loss) to the consolidated operating results of the Company for the nine-month periods ended September 30, 2017 and 2016, respectively.

The carrying amounts of the significant assets and liabilities of the disposed properties at the dates of sale were:

	Sandstone Creek			Ashford Park			Enclave at Vista Ridge
	1/20/2017			3/7/2017			5/25/2017
Real estate assets:
Land	$	2,846,197		$	10,600,000		$	4,704,917
Building and improvements	41,859,684			24,075,263			29,915,903
Furniture, fixtures and equipment	5,278,268			4,222,858			2,874,403
Accumulated depreciation	(4,808,539		)	(6,816,193		)	(3,556,362		)
Total assets	$	45,175,610		$	32,081,928		$	33,938,861
Liabilities:
Mortgage note payable	$	30,840,135		$	25,626,000		$	24,862,000
Supplemental mortgage note	$	—		$	6,373,717		$	—

Multifamily communities acquired

During the nine-month period ended September 30, 2017, the Company completed the acquisition of the following multifamily communities and student housing property:

Acquisition date	Property	Location	Approximate purchase price (millions) (1)		Units
2/28/2017	SoL (2)	Tempe, Arizona	$	53.3	225
3/3/2017	Broadstone at Citrus Village	Tampa, Florida	$	47.4	296
3/24/2017	Retreat at Greystone	Birmingham, Alabama	$	50.0	312
3/31/2017	Founders Village	Williamsburg, Virginia	$	44.4	247
4/26/2017	Claiborne Crossing	Louisville, Kentucky	$	45.2	242
7/26/2017	Luxe at Lakewood Ranch	Sarasota, Florida	$	56.1	280
9/27/2017	Adara Overland Park	Kansas City, Kansas	$	45.5	260
9/29/2017	Aldridge at Town Village	Atlanta, Georgia	$	54.2	300
9/29/2017	The Reserve at Summit Crossing	Atlanta, Georgia	$	30.9	172
					2,334

⁽¹⁾ Purchase prices shown are exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

⁽²⁾ A 640-bed student housing community located adjacent to the campus of Arizona State University in Tempe, Arizona.

Grocery-anchored shopping centers acquired

During the nine months ended September 30, 2017, the Company completed the acquisition of the following grocery-anchored shopping centers:

Acquisition date	Property	Location	Approximate purchase price (millions) (1)		Gross leasable area (square feet)
4/21/2017	Castleberry-Southard	Atlanta, Georgia	$	17.6	80,018
6/6/2017	Rockbridge Village	Atlanta, Georgia	$	20.3	102,432
7/26/2017	Irmo Station	Columbia, SC	$	16.0	99,384
8/25/2017	Maynard Crossing	Raleigh, NC	$	29.9	122,781
9/8/2017	Woodmont Village	Atlanta, GA	$	13.5	85,639
9/22/2017	West Town Market	Charlotte, NC	$	14.3	67,883
					558,137

⁽¹⁾ Purchase prices shown are exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

The Company allocated the purchase prices to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocation was based upon the Company's best estimates of the fair values of the acquired assets and liabilities.

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Real Estate Loans, Notes Receivable, and Lines of Credit

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

he Palisades, Green Park and Stadium Village (see note 16) loans are subject to a loan participation agreement with a syndicate of unaffiliated third parties, under which the syndicate is to fund approximately 25% of the loan commitment amount and collectively receive approximately 25% of interest payments, returns of principal and purchase option discount (if applicable). The Company's Encore loan is subject to a loan participation agreement of 49% of the loan commitment amount, interest payments, and return of principal. The aggregate amount of the Company's liability under the loan participation agreements at September 30, 2017 was approximately $17.9 million.

The Company's real estate loans are collateralized by 100% of the membership interests of the underlying project entity, and, where considered necessary, by unconditional joint and several repayment guaranties and performance guaranties by the principal(s) of the borrowers. These guaranties generally remain in effect until the receipt of a final certificate of occupancy. All of the guaranties are subject to the rights held by the senior lender pursuant to a standard intercreditor agreement. The Crescent Avenue, Haven Northgate, Brentwood, and Berryessa loans are also collateralized by the acquired land or property. The18 Nineteen and Haven South loans are additionally collateralized by an assignment by the developer of security interests in unrelated projects. Prepayment of the real estate loans are permitted in whole, but not in part, without the Company's consent.

Management monitors the credit quality of the obligors under each of the Company's real estate loans by tracking the timeliness of scheduled interest and principal payments relative to the due dates as specified in the loan documents, as well as draw requests on the loans relative to the project budgets. In addition, management monitors the actual progress of development and construction relative to the construction plan, as well as local, regional and national economic conditions that may bear on our current and target markets. The credit quality of the Company’s borrowers is primarily based on their payment history on an individual loan basis, and as such, the Company does not assign quantitative credit value measures or categories to its real estate loans and notes receivable in credit quality categories. At September 30, 2017, none of the Company's real estate loans were delinquent.

Our portfolio of notes and lines of credit receivable consisted of:

Borrower	Date of loan	Maturity date	Total loan commitments		Outstanding balance as of:						Interest rate
					9/30/2017			12/31/2016
360 Residential, LLC (1)	3/20/2013	12/31/2017	$	2,000,000	$	1,958,998		$	1,472,571		12	%
Preferred Capital Marketing Services, LLC (2)	1/24/2013	12/31/2017	1,500,000		926,422			1,082,311			10	%
Oxford Contracting, LLC (1)	8/27/2013	(3)	-3		—			1,475,000			8	%
Preferred Apartment Advisors, LLC (1,2,4)	8/21/2012	12/31/2018	18,000,000		15,812,313			13,708,761			8	%
Haven Campus Communities, LLC (1,2)	6/11/2014	12/31/2017	11,110,000		7,324,904			7,324,904			12	%
Oxford Capital Partners, LLC (1,5)	10/5/2015	12/31/2017	10,150,000		8,972,378			7,870,865			12	%
Newport Development Partners, LLC (1)	6/17/2014	6/30/2018	3,000,000		—			—			12	%
360 Residential, LLC II (1)	12/30/2015	12/31/2017	3,255,000		3,230,232			2,884,845			15	%
Mulberry Development Group, LLC (1)	3/31/2016	6/30/2018	500,000		420,000			177,000			12	%
Mulberry Alexandria Group, LLC	7/31/2017	12/31/2017	1,400,000		990,154			—			12	%
360 Capital Company, LLC (1)	5/24/2016	12/31/2017	3,900,000		2,730,499			1,678,999			12	%
Unamortized loan fees					(14,404		)	(59,581		)
			$	54,815,000	$	42,351,496		$	37,615,675
(1) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower.
(2) See related party disclosure in Note 6.
(3) Note was repaid on April 6, 2017 and terminated at its maturity date of April 30, 2017.
(4) The amounts payable under this revolving credit line were collateralized by an assignment of the Manager's rights to fees due under the Sixth Amended and Restated Management Agreement between the Company and the Manager.
(5) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2,000,000 are collateralized by a personal guaranty of repayment by the principals of the borrower.

The Company recorded interest income and other revenue from these instruments as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate loans:
Current interest payments	$	8,956,012	$	5,902,915	$	23,996,934	$	16,913,037
Additional accrued interest	5,005,796		3,917,641		13,894,268		10,633,937
Deferred origination fee amortization	408,077		201,147		995,023		636,875
Total real estate loan revenue	14,369,885		10,021,703		38,886,225		28,183,849
Interest income on notes and lines of credit	1,123,240		974,540		3,196,965		3,111,339
Interest income on loans and notes receivable	$	15,493,125	$	10,996,243	$	42,083,190	$	31,295,188

The Company extends loans for purposes such as to partially finance the development of multifamily residential communities, to acquire land in anticipation of developing and constructing multifamily residential communities, and for other real estate or real estate related projects. Certain of these loans include characteristics such as exclusive options to purchase the project within a specific time window following project completion and stabilization, the sufficiency of the borrowers' investment at risk and the existence of payment and performance guaranties provided by the borrowers, can cause the loans to create variable interests to the Company and require further evaluation as to whether the variable interest creates a variable interest entity, or VIE, which would necessitate consolidation of the project.

The Company considers the facts and circumstances pertinent to each entity borrowing under the loan, including the relative amount of financing the Company is contributing to the overall project cost, decision making rights or control held by the Company, guarantees provided by third parties, and rights to expected residual gains or obligations to absorb expected residual losses that could be significant from the project. If the Company is deemed to be the primary beneficiary of a VIE, consolidation treatment would be required.

The Company has no decision making authority or power to direct activity, except normal lender rights, which are subordinate to the senior loans on the projects. The Company has concluded that it is not the primary beneficiary of the borrowing entities and therefore it has not consolidated these entities in its consolidated financial statements. The Company's maximum exposure to loss from these loans is their drawn amount as of September 30, 2017 of approximately $371.3 million. The maximum aggregate amount of loans to be funded as of September 30, 2017 was approximately $461.6 million.

The Company has evaluated its real estate loans, where appropriate, for accounting treatment as loans versus real estate development projects, as required by ASC 310. For each loan, the characteristics and the facts and circumstances indicate that loan accounting treatment is appropriate.

The Company is also subject to a geographic concentration of risk that could be considered significant with regard to the Encore, Encore Capital, Green Park, Stadium Village, Bishop Street, Dawsonville Marketplace, Crescent Avenue, 360 Forsyth, Morosgo and TP Kennesaw loans, all of which are partially supporting proposed various real estate projects in or near Atlanta, Georgia. The drawn amount of these loans as of September 30, 2017 totaled approximately $98.4 million (with a total commitment amount of approximately $142.7 million) and in the event of a total failure to perform by the borrowers and guarantors, would subject the Company to a total possible loss of that amount.

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Redeemable Preferred Stock

9 Months Ended

Sep. 30, 2017

Redeemable Stock, Preferred [Abstract]

Preferred Stock [Text Block]

Redeemable Preferred Stock and Equity Offerings

On February 14, 2017, the Company terminated its offering of up to 900,000 Units, or Follow-on Offering, and on the same day, the Company’s registration statement on Form S-3 (Registration No. 333-211924) (the “$1.5 Billion Follow-on Registration Statement”)  was declared effective by the SEC. This $1.5 Billion Follow-on Registration Statement allows us to offer up to a maximum of 1,500,000 Units, with each Unit consisting of one share of Series A Redeemable Preferred Stock and one Warrant to purchase up to 20 shares of Common Stock (the "$1.5 Billion Unit Offering"). The price per Unit is $1,000, subject to adjustment if a participating broker-dealer reduces its commission. Each share of Preferred Stock ranks senior to Common Stock with respect to dividend rights and carries a cumulative annual 6% dividend of the stated per share value of $1,000, payable monthly as declared by the Company’s board of directors. Dividends begin accruing on the date of issuance. The redemption schedule of the Preferred Stock allows redemptions at the option of the holder from the date of issuance of the Preferred Stock through the first year subject to a 13% redemption fee. After year one, the redemption fee decreases to 10%, after year three it decreases to 5%, after year four it decreases to 3%, and after year five there is no redemption fee. Any redeemed shares of Preferred Stock are entitled to any accrued but unpaid dividends at the time of redemption and any redemptions may be in cash or Common Stock, at the Company’s discretion. The Warrant is exercisable by the holder at an exercise price of 120% of the current market price per share of the Common Stock on the date of issuance of such warrant with a minimum exercise price of $19.50 per share. The current market price per share of the Common Stock is determined using the closing price of the common stock immediately preceding the issuance of such Warrant. The Warrants are not exercisable until one year following the date of issuance and expire four years following the date of issuance. The Units are being offered by Preferred Capital Securities, LLC, or PCS, an affiliate of the Company, on a "reasonable best efforts" basis. The Company intends to invest substantially all the net proceeds of the $1.5 Billion Unit Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes. Except as described in the $1.5 Billion Follow-on Registration Statement, the terms of the $1.5 Billion Unit Offering are substantially similar to those under the Follow-on Offering. As of February 14, 2017, which was the final closing of the Follow-on Offering, offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $97.2 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $15.0 million. As of February 14, 2017, the Company had issued all available Units under the Primary Series A Offering and the Follow-on Offering and collected net proceeds of approximately $891.2 million after commissions. Since the maximum number of Units available to be issued under the Primary Series A Offering and the Follow-on Offering were issued, the Company consequently recognized 100.0% of the approximate $15.0 million deferred offering costs as a reduction of stockholders' equity.  

For the $1.5 Billion Unit Offering, as of September 30, 2017, offering costs specifically identifiable to Unit offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $14.9 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $3.0 million. As of September 30, 2017, the Company had issued 151,923 Units and collected net proceeds of approximately $136.5 million after commissions under the $1.5 Billion Unit Offering. The number of Units issued was approximately 10.1% of the maximum number of Units anticipated to be issued under the $1.5 Billion Unit Offering. Consequently, the Company cumulatively recognized approximately 10.1% of the approximate $3.0 million deferred to date, or approximately $300,000 as a reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $2.7 million, are reflected in the asset section of the consolidated balance sheet as deferred offering costs at September 30, 2017. The remainder of current and future deferred offering costs related to the $1.5 Billion Unit Offering will likewise be recognized as a reduction of stockholders' equity in the proportion of the number of Units issued to the maximum number of Units anticipated to be issued. Offering costs not related to a specific closing transaction are subject to an overall cap of approximately 1.5% (discussed further below) of the total gross proceeds raised during the Unit offerings.

Cumulatively, a total of 25,715 shares of Preferred Stock have been subsequently redeemed from the Primary Series A Offering, the Follow-on Offering, and the $1.5 Billion Unit Offering. 

Aggregate offering expenses, including selling commissions and dealer manager fees, will be capped at 11.5% of the aggregate gross proceeds of the $1.5 Billion Unit Offering, of which the Company will reimburse its Manager up to 1.5% of the gross proceeds of such offering for all organization and offering expenses incurred, excluding selling commissions and dealer manager fees; however, upon approval by the conflicts committee of the board of directors, the Company may reimburse its Manager for any such expenses incurred above the 1.5% amount as permitted by the Financial Industry Regulatory Authority.

On May 5, 2016, the Company filed a registration statement on Form S-3 (File No. 333-211178), or the New Shelf Registration Statement, for an offering of up to $300 million of equity or debt securities, or the Shelf Offering, which was declared effective by the SEC on May 17, 2016. Deferred offering costs related to this Shelf Registration Statement totaled approximately $1.9 million as of September 30, 2017, of which $628,000 has been reflected as a reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $1.3 million, are reflected in the asset section of the consolidated balance sheet as deferred offering costs at September 30, 2017.

On May 12, 2017, the Company sold 2,750,000 shares of its Common Stock at a price of $15.25 per share pursuant to an underwritten public offering. On May 30, 2017, the Company sold an additional 412,500 shares of Common Stock at $15.25 per share pursuant to the exercise in full of an option received in connection with the public offering. The combined gross proceeds of the two sales was approximately $48.2 million before deducting underwriting discounts and commissions and other estimated offering expenses.

The Company filed a prospectus to issue and sell up to $150 million of Common Stock from time to time in an "at the market" offering (the "2016 ATM Offering") through the sales agents named in the prospectus. The Company intends to use any proceeds from the 2016 ATM Offering to repay outstanding amounts under our existing senior secured revolving credit facility and for other general corporate purposes, which includes making investments in accordance with the Company's investment objectives. Through September 30, 2017, the Company cumulatively sold 3.4 million shares of common stock through the ATM Offering and collected net proceeds of approximately $51.0 million.

On December 2, 2016, the Company’s registration statement on Form S-3 (Registration No. 333-214531) (the “mShares Registration Statement”) was declared effective by the SEC. The mShares Registration Statement allows us to offer up to a maximum of 500,000 shares of Series M Redeemable Preferred Stock (“mShares”), par value $0.01 per share (the “mShares Offering”).  The mShares are being offered by PCS on a "reasonable best efforts" basis. The price per mShare is $1,000. Each mShare ranks senior to Common Stock and on parity with the Series A Preferred Stock with respect to dividend rights and carries a cumulative annual dividend of 5.75% per annum. Beginning one year from the date of original issuance of each mShare, and on each one year anniversary thereafter, the dividend rate increases by 0.25% per annum, up to a maximum of 7.5% per annum. Dividends are payable monthly as declared by the Company’s board of directors and begin accruing on the date of issuance. The redemption schedule of the mShares allows redemptions at the option of the holder from the date of issuance of the Preferred Stock through the first year subject to a 2% redemption fee. After year one, the redemption fee decreases to 1% and after year two there is no redemption fee. Any redeemed mShares are entitled to any accrued but unpaid dividends at the time of redemption and any redemptions may be in cash or Common Stock, at the Company’s discretion. The Company intends to invest substantially all the net proceeds of the mShares Offering in connection with the acquisition of multifamily communities, other real estate-related investments and general working capital purposes. 

As of September 30, 2017, offering costs specifically identifiable to mShares Offering closing transactions, such as commissions, dealer manager fees, and other registration fees, totaled approximately $0.6 million. These costs are reflected as a reduction of stockholders' equity at the time of closing. In addition, the costs related to the offering not related to a specific closing transaction totaled approximately $2.2 million. As of September 30, 2017, the Company had issued 12,396 mShares and collected net proceeds of approximately $11.8 million after commissions under the mShares Offering. The number of mShares issued was approximately 2.5% of the maximum number of mShares anticipated to be issued under the mShares Offering. Consequently, the Company cumulatively recognized approximately 2.5% of the approximate $2.2 million deferred to date, or approximately $54,000 as a reduction of stockholders' equity. The remaining balance of offering costs not yet reflected as a reduction of stockholder's equity, approximately $2.1 million are reflected in the asset section of the consolidated balance sheet as deferred offering costs at September 30, 2017. The remainder of current and future deferred offering costs related to the mShares Offering will likewise be recognized as a reduction of stockholders' equity in the proportion of the number of mShares issued to the maximum number of mShares anticipated to be issued. Offering costs not related to a specific closing transaction are subject to an overall cap of approximately 1.5% (discussed further below) of the total gross proceeds raised during the mShares Offering.

Aggregate offering expenses, including dealer manager fees, are capped at 11.5% of the aggregate gross proceeds of the mShares Offering, of which the Company will reimburse its Manager up to 1.5% of the gross proceeds of such offering for all organization and offering expenses incurred, excluding dealer manager fees; however, upon approval by the conflicts committee of the board of directors, the Company may reimburse its Manager for any such expenses incurred above the 1.5% amount as permitted by the Financial Industry Regulatory Authority.

The Company's Series A Preferred Stock and mShares are redeemable at the option of the holder in either cash or the Company's Common Stock, at the Company's option. Since the Company controls the form of redemption, it presents its Series A Preferred Stock and mShares as components of permanent rather than temporary or mezzanine equity on its Consolidated Balance Sheets.

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Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Related Party Transactions

John A. Williams, the Company's Chief Executive Officer and Chairman of the Board, and Leonard A. Silverstein, the Company's President and Chief Operating Officer and a member of the Board, are also executive officers and directors of NELL Partners, Inc., which controls the Manager. Mr. Williams, Mr. Silverstein, and Daniel M. DuPree comprise the board of directors of Nell Partners, Inc. Mr. Williams is the Chief Executive Officer and Mr. Silverstein is the President and Chief Operating Officer of the Manager. Mr. DuPree is the Chief Investment Officer of the Manager.

Mr. Williams, Mr. Silverstein and Michael J. Cronin, the Company's Executive Vice President, Chief Accounting Officer and Treasurer are executive officers of Williams Realty Advisors, LLC, or WRA, which is the manager of the day-to-day operations of Williams Opportunity Fund, LLC, or WOF, as well as Williams Realty Fund I, LLC, or WRF.

The Management Agreement entitles the Manager to receive compensation for various services it performs related to acquiring assets and managing properties on the Company's behalf:

		Three months ended September 30,				Nine months ended September 30,
Type of Compensation	Basis of Compensation	2017		2016		2017		2016
Acquisition fees	As of July 1, 2017, 1.0% of the gross purchase price of real estate assets	$	2,604,551	$	—	$	2,604,551	$	—
Loan origination fees	1.0% of the maximum commitment of any real estate loan, note or line of credit receivable	878,939		250,602		1,296,383		1,374,828
Loan coordination fees	As of January 1, 2016, 1.6% of any assumed, new or supplemental debt incurred in connection with an acquired property. Effective July 1, 2017, the fee was reduced to 0.6% of any such debt.	1,056,885		3,493,227		4,066,393		8,178,836
Asset management fees	Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted	3,191,817		2,196,363		9,313,759		5,708,868
Property management fees	Monthly fee equal to 4% of the monthly gross revenues of the properties managed	1,569,603		1,438,569		4,554,880		3,629,322
General and administrative expense fees	Monthly fee equal to 2% of the monthly gross revenues of the Company	1,306,360		831,711		3,849,481		2,343,936
Construction management fees	Quarterly fee for property renovation and takeover projects	62,130		53,935		222,539		126,446
		$	10,670,285	$	8,264,407	$	25,907,986	$	21,362,236

The Manager may, in its discretion, forfeit some or all of the asset management, property management, or general and administrative fees for properties owned by the Company. The forfeited fees are converted at the time of forfeiture into contingent fees, which are earned by the Manger only in the event of a sales transaction, and whereby the Company’s capital contributions for the property being sold exceed a 7% annual rate of return. The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  

As of July 1, 2017, the Manager reduced the loan coordination fee from 1.6% to 0.6% of the amount of assumed, new or incremental debt which leverages acquired real estate assets. In addition, the Manager reinstated a 1% acquisition fee charged on the cost of acquired real estate assets, which had historically been charged prior to its replacement effective January 1, 2016 by the 1.6% loan coordination fee. These changes were put in place to reflect a shift in the efforts of the Manager in property acquisitions.

On May 25, 2017,we closed on the sale of our Enclave at Vista Ridge multifamily community to an unrelated third party. At such date, the Manager collected a cumulative total of approximately $390,000 of contingent fees. The sales transaction, and the fact that the Company’s capital contributions for the Enclave at Vista Ridge property achieved a greater than 7% annual rate of return.  The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  

A cumulative total of approximately $5.1 million of combined asset management and general and administrative fees related to acquired properties as of September 30, 2017 have been forfeited by the Manager. A total of $4.3 million remains contingent and could possibly be earned by the Manager in the future.

In addition to property management fees, the Company incurred the following reimbursable on-site personnel salary and related benefits expenses at the properties, which are listed on the Consolidated Statements of Operations:

Three months ended September 30,				Nine months ended September 30,
2017		2016		2017		2016
$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403

The Manager utilizes its own and its affiliates' personnel to accomplish certain tasks related to raising capital that would typically be performed by third parties, including, but not limited to, legal and marketing functions. As permitted under the Management Agreement, the Manager was reimbursed $324,638 and $356,752 for the nine-month periods ended September 30, 2017 and 2016, respectively and PCS was reimbursed $790,804 and $768,869 for the nine-month periods ended September 30, 2017 and 2016, respectively. These costs are recorded as deferred offering costs until such time as additional closings occur on the $1.5 Billion Unit Offering, mShares Offering or the Shelf Offering, at which time they are reclassified on a pro-rata basis as a reduction of offering proceeds within stockholders’ equity.

The Company's Haven 12, Stadium Village, 18 Nineteen, Haven South, Haven 46, Lubbock II, Haven Northgate and Haven Charlotte real estate loans and the Haven Campus Communities' line of credit are supported in part by guaranties of repayment and performance by John A. Williams, Jr., our Chief Executive Officer's son, a principal of the borrowers and a related party of the Company under GAAP.

In addition to the fees described above, the Management Agreement also entitles the Manager to other potential fees, including a disposition fee of 1% of the sale price of a real estate asset. The Manager earned disposition fees totaling $1,576,000 for the nine-month period ended September 30, 2017 on the sale of the Ashford Park, Sandstone Creek and Enclave at Vista Ridge properties, and $390,000 for the nine-month period ended September 30, 2016 on the sale of the Trail Creek property. These fees are included in the Gain on sale of real estate, net of disposition expenses line on the Consolidated Statements of Operations. The Manager also receives leasing commission fees. Retail leasing commission fees (a) for new retail leases are equal to the greater of (i) $4.00 per square foot, and (ii) 4.0% of the aggregate base rental payments to be made by the tenant for the first 10 years of the original lease term; and (b) for lease renewals are equal to the greater of (i) $2.00 per square foot, and (ii) 2.0% of the aggregate base rental payments to be made by the tenant for the first 10 years of the newly renewed lease term. There are no commissions payable on retail lease renewals thereafter. Office leasing commission fees (a) for new office leases are equal to 50.0% of the first month’s gross rent plus 2.0% of the remaining fixed gross rent on the guaranteed lease term, (b) in the event of co-broker participation in a new lease, the leasing commission determined for a new lease are equal to 150.0% of the first month’s gross rent plus 6% of the remaining fixed gross rent of the guaranteed lease term, and (c) for lease renewals, are equal to 2% of the fixed gross rent of the guaranteed lease term or, in the event of a co-broker, 6% of the fixed gross rent of the guaranteed lease term. Office leasing commission fees may not exceed market rates for office leasing services.

The Company holds a promissory note in the amount of $926,422 due from Preferred Capital Marketing Services, LLC, or PCMS, which is a wholly-owned subsidiary of NELL Partners.

The Company has extended a revolving line of credit with a maximum borrowing amount of $18.0 million to its Manager.

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Dividends

9 Months Ended

Sep. 30, 2017

Dividends [Abstract]

Dividends [Text Block]

Dividends and Distributions

The Company declares and pays monthly cash dividend distributions on its Series A Preferred Stock in the amount of $5.00 per share per month and beginning in March 2017, on its Series M Preferred Stock, on an escalating scale of $4.79 per month in year one, increasing to $6.25 per month in year eight and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary.

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

The Company's dividend activity on its Common Stock for the nine-month periods ended September 30, 2017 and 2016 was:

2017						2016
Record date	Number of shares	Dividend per share		Aggregate dividends paid		Record date	Number of shares	Dividend per share		Aggregate dividends paid
March 15, 2017	27,139,354	$	0.220	$	5,970,658	March 15, 2016	23,041,502	$	0.1925	$	4,435,489
June 15, 2017	32,082,451	0.235		7,539,376		June 15, 2016	23,568,328	0.2025		4,772,587
September 15, 2017	34,715,982	0.235		8,158,256		September 15, 2016	24,652,041	0.2025		4,992,038
		$	0.69	$	21,668,290			$	0.5975	$	14,200,114

dividends and distributions [Text Block]

Dividends and Distributions

The Company declares and pays monthly cash dividend distributions on its Series A Preferred Stock in the amount of $5.00 per share per month and beginning in March 2017, on its Series M Preferred Stock, on an escalating scale of $4.79 per month in year one, increasing to $6.25 per month in year eight and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary.

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

The Company's dividend activity on its Common Stock for the nine-month periods ended September 30, 2017 and 2016 was:

2017						2016
Record date	Number of shares	Dividend per share		Aggregate dividends paid		Record date	Number of shares	Dividend per share		Aggregate dividends paid
March 15, 2017	27,139,354	$	0.220	$	5,970,658	March 15, 2016	23,041,502	$	0.1925	$	4,435,489
June 15, 2017	32,082,451	0.235		7,539,376		June 15, 2016	23,568,328	0.2025		4,772,587
September 15, 2017	34,715,982	0.235		8,158,256		September 15, 2016	24,652,041	0.2025		4,992,038
		$	0.69	$	21,668,290			$	0.5975	$	14,200,114

The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as those declared on the Common Stock. At September 30, 2017, the Company had 901,195 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash. Distribution activity by the Operating Partnership was:

2017				2016
Record date	Payment date	Aggregate distributions		Record date	Payment date	Aggregate distributions
March 15, 2017	April 14, 2017	$	198,742	March 15, 2016	April 15, 2016	$	117,395
June 15, 2017	July 14, 2017	211,781		June 15, 2016	July 15, 2016	179,449
September 15, 2017	October 16, 2017	211,781		September 15, 2016	October 14, 2016	179,449
		$	622,304			$	476,293

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Equity Compensation

9 Months Ended

Sep. 30, 2017

Equity Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Equity Compensation

Stock Incentive Plan

On February 25, 2011, the Company’s board of directors adopted, and the Company’s stockholders approved, the Preferred Apartment Communities, Inc. 2011 Stock Incentive Plan to incentivize, compensate and retain eligible officers, consultants, and non-employee directors. On May 7, 2015, the Company's stockholders approved the third amendment to the Preferred Apartment Communities, Inc. 2011 Stock Incentive Plan, or, as amended, the 2011 Plan, which amendment increased the aggregate number of shares of Common Stock authorized for issuance under the 2011 Plan from 1,317,500 to 2,617,500 and extended the expiration date of the 2011 Plan to December 31, 2019.

Equity compensation expense by award type for the Company was:

	Three months ended September 30,				Nine months ended September 30,				Unamortized expense as of September 30,
	2017		2016		2017		2016		2017
Quarterly board member committee fee grants	$	—	$	18,030	$	—	$	48,021	$	—
Class B Unit awards:
Executive officers - 2015	—		—		—		5,236		—
Executive officers - 2016	74,470		517,884		237,714		1,536,946		374,753
Executive officers - 2017	678,176		—		2,012,653		—		1,401,140
Restricted stock grants:
2015	—		—		—		106,670		—
2016	—		102,500		136,667		170,833		—
2017	90,005		—		150,008		—		210,011
Restricted stock units	20,761		—		70,625		—		211,878
Total	$	863,412	$	638,414	$	2,607,667	$	1,867,706	$	2,197,782

Restricted Stock Grants

The following annual grants of restricted stock were made to members of the Company's independent directors, as payment of the annual retainer fees. The restricted stock grants for the 2015 and 2016 service years vested (or are scheduled to vest) on a pro-rata basis over the four consecutive 90-day periods following the date of grant.

Service year	Shares	Fair value per share		Total compensation cost
2015	30,133	$	10.62	$	320,012
2016	30,990	$	13.23	$	409,998
2017	24,408	$	14.75	$	360,018

Class B OP Units

On January 2, 2015, the Company caused the Operating Partnership to grant 176,835 Class B Units of the Operating Partnership, or Class B OP Units, for service to be rendered during 2015. On January 4, 2016, the Company caused the Operating Partnership to grant 265,931 Class B OP Units for service to be rendered during 2016, 2017 and 2018. On January 3, 2017, the Company caused the Operating Partnership to grant 286,392 Class B OP Units for service to be rendered during 2017, 2018 and 2019.

Prior to January 4, 2016, the Class B Units became Vested Class B Units at the Initial Valuation Date, which was generally one year from the date of grant. Beginning with the 2016 grant, certain Class B Units vest in three equal consecutive one-year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested Class B Units become earned Class B Units and automatically convert into Class A Units of the Operating Partnership (as long as the capital accounts have achieved economic equivalence), which are henceforth entitled to distributions from the Operating Partnership and become exchangeable for Common Stock on a one-to-one basis at the option of the holder. Vested Class B Units may become Earned Class B Units on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested Class B Units that do not become Earned Class B Units on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested Class B Units become Earned Class B Units or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested Class B Units to qualify to become fully Earned Class B Units.

Because of the market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, a Monte Carlo simulation was utilized to calculate the total fair values, which will be amortized as compensation expense over the one-year periods beginning on the grant dates through the Initial Valuation Dates. On January 2, 2016, the 176,835 outstanding Class B Units for 2015 became fully vested and earned and automatically converted to Class A Units of the Operating Partnership. On January 4, 2017, all of the 265,931 Class B Units granted on January 4, 2016 became earned and 206,534 automatically vested and converted to Class A Units. Of the remaining earned Class B Units, 29,699 will vest and automatically convert to Class A Units on January 4, 2018 and the final 29,698 earned Class B Units will vest and automatically convert to Class A Units on January 4, 2019, assuming each grantee fulfills the requisite service requirement.

The underlying valuation assumptions and results for the Class B OP Unit awards were:

Grant dates	1/3/2017			1/4/2016
Stock price	$	14.79		$	12.88
Dividend yield	5.95		%	5.98		%
Expected volatility	26.4		%	26.10		%
Risk-free interest rate	2.91		%	2.81		%
Number of Units granted:
One year vesting period	198,184			176,835
Three year vesting period	88,208			89,096
	286,392			265,931
Calculated fair value per Unit	$	11.92		$	10.03
Total fair value of Units	$	3,413,793		$	2,667,288
Target market threshold increase	$	4,598,624		$	3,549,000

The expected dividend yield assumptions were derived from the Company’s closing prices of the Common Stock on the grant dates and the projected future quarterly dividend payments per share of $0.22 for the 2017 awards and $0.1925 for the 2016 awards.

For the 2017 and 2016 awards, the Company's own stock price history was utilized as the basis for deriving the expected volatility assumption.

The risk-free rate assumptions were obtained from the Federal Reserve yield table and were calculated as the interpolated rate between the 20 and 30 year yield percentages on U. S. Treasury securities on the grant dates.

Since the Class B OP Units have no expiration date, a derived service period of one year was utilized, which equals the period of time from the grant date to the initial valuation date.

Restricted Stock Units

On January 3, 2017, the Company caused the Operating Partnership to grant 26,900 restricted stock units, or RSUs, for service to be rendered during 2017, 2018 and 2019. The RSUs vest in three equal consecutive one-year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested RSUs become earned RSUs and automatically convert into Common Stock on a one-to-one basis. Vested RSUs may become Earned RSUs on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested RSUs that do not become Earned RSUs on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested RSUs become Earned RSUs or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested RSUs to qualify to become fully Earned RSUs.

Because RSUs are valued using the identical market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, the same valuation assumptions and Monte Carlo result of $11.92 per RSU were utilized to calculate the total fair value of the RSUs of $320,648. Grants of RSUs, net of forfeitures, are amortized as compensation expense over the three one-year periods ending on each of January 2, 2018, 2019 and 2020. As of September 30, 2017, a total of 3,200 RSUs had been forfeited.

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Indebtedness

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Indebtedness

Mortgage Notes Payable

Mortgage Financing of Property Acquisitions

The Company partially financed the real estate properties acquired during the nine-month period ended September 30, 2017 with mortgage debt as shown in the following table:

Property	Date	Initial principal amount		Fixed/Variable rate	Rate / spread over 1 month LIBOR		Maturity date	Interest only through date
SoL	2/28/2017	$	37,485,000	Variable	200 BPS		3/1/2022	3/1/2022
Citrus Village	3/3/2017	30,250,000		Fixed	3.65	%	6/10/2023	6/9/2017
Retreat at Greystone	3/24/2017	35,210,000		Variable	185 BPS		3/1/2022	3/1/2022
Founders Village	3/31/2017	31,605,000		Fixed	4.31	%	4/1/2027	N/A
Claiborne Crossing	4/26/2017	28,179,500		Fixed	2.89	%	6/1/2054	N/A
Castleberry-Southard	4/21/2017	11,500,000		Fixed	3.99	%	5/1/2027	N/A
Rockbridge Village	6/6/2017	14,250,000		Fixed	3.73	%	7/5/2027	N/A
Luxe at Lakewood Ranch	7/26/2017	39,287,500		Fixed	3.93	%	8/1/2027	N/A
Irmo Station	7/26/2017	10,650,000		Fixed	3.94	%	8/1/2030	N/A
Maynard Crossing	8/25/2017	18,500,000		Fixed	3.74	%	9/1/2032	N/A
Woodmont Village	9/8/2017	8,775,000		Fixed	4.13	%	10/1/2027	N/A
West Town Market	9/22/2017	9,000,000		Fixed	3.65	%	10/1/2025	N/A
Adara Overland Park	9/27/2017	31,850,000		Fixed	3.90	%	4/1/2028	N/A
Aldridge at Town Village	9/29/2017	38,010,000		Variable	185 BPS		3/1/2022	(1	)
The Reserve at Summit Crossing	9/29/2017	20,075,000		Fixed	3.87	%	10/1/2024	N/A
		$	364,627,000
(1) The property is temporarily financed through a credit facility sponsored by the Federal Home Loan Mortgage Corporation; the Company intends to obtain permanent mortgage financing in the near future.

Repayments and Refinancings

In conjunction with the sale of the Enclave at Vista Ridge multifamily community, the Company recorded a defeasance fee of approximately $2.06 million, the effect of which is recorded as an offset against the gain on sale of real estate line of the Consolidated Statements of operations for the nine-month period ended September 30, 2017. In doing so, the Company extinguished the existing mortgage debt with a principal amount due of $24.86 million.

On June 22, 2017, the Company refinanced the existing $16.3 million mortgage on its Stone Creek multifamily community which bore interest at a fixed 3.75% rate per annum into a mortgage of $20.6 million, which bears interest at a fixed rate of 3.22% per annum. In doing so, the Company recorded a prepayment penalty of approximately $817,000, which is included on the Loss on extinguishment of debt on the Consolidated Statements of operations.

On June 15, 2017, the Company refinanced the existing $61.75 million mortgage on its 525 Avalon multifamily community which bore interest at a variable rate of 1 Month LIBOR plus 200 basis points per annum and the secondary financing note of $3.25 million which bore interest at a variable rate of 1 Month LIBOR plus 1100 basis points per annum into a single mortgage of $67.38 million, which bears interest at a fixed rate of 3.98% per annum. Fees paid of approximately $170,000 in conjunction with this debt modification were recorded as debt origination costs and will be amortized into interest expense over the life of the new mortgage.

See note 16 for additional refinancing activity which occurred subsequent to September 30, 2017.

The following table summarizes our mortgage notes payable at September 30, 2017:

Fixed rate mortgage debt:	Principal balances due			Weighted-average interest rate		Weighted average remaining life
Multifamily communities	$	744,771,383		3.69	%	7.6 years
New Market Properties	330,701,302			3.81	%	7.5 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	32,953,789			4.02	%	4.9 years
Total fixed rate mortgage debt	$	1,262,089,130		3.80	%	9.2 years
Variable rate mortgage debt:
Multifamily communities	$	234,369,810		3.24	%	4.0 years
New Market Properties	62,620,313			3.86	%	3.9 years
Preferred Office Properties	—			—		—
Student housing projects	37,485,000			3.23	%	4.4 years
Total variable rate mortgage debt	$	334,475,123		3.35	%	4.0 years
Total mortgage debt:
Multifamily communities	$	979,141,193		3.58	%	6.8 years
New Market Properties	393,321,615			3.82	%	6.9 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	70,438,789			3.60	%	4.7 years
Total principal amount	1,596,564,253			3.71	%	8.1 years
Deferred loan costs	(26,994,828		)
Mortgage notes payable, net	$	1,569,569,425

The Company has placed interest rate caps on the variable rate mortgages on its Avenues at Creekside and Citi Lakes multifamily communities. Under guidance provided by ASC 815-10, these interest rate caps fall under the definition of derivatives, which are embedded in their debt hosts. Because these interest rate caps are deemed to be clearly and closely related to their debt hosts, bifurcation and fair value accounting treatment is not required.

The mortgage note secured by our Independence Square property is a seven year term with an anticipated repayment date of September 1, 2022. If the Company elects not to pay its principal balance at the anticipated repayment date, the term will be extended for an additional five years, maturing on September 1, 2027. The interest rate from September 1, 2022 to September 1, 2027 will be the greater of (i) the Initial Interest Rate of 3.93% plus 200 basis points or (ii) the yield on the seven year U.S. treasury security rate plus approximately 400 basis points.

The mortgage note secured by our Royal Lakes Marketplace property has a maximum commitment of $11,050,000. As of September 30, 2017, the Company has an outstanding principal balance of $9.7 million on this loan. Additional advances of the mortgage commitment will be drawn as the Company achieves incremental leasing benchmarks specified under the loan agreement. This mortgage has a variable interest of 1 Month LIBOR plus 250 basis points, which was 3.74% as of September 30, 2017.

The mortgage note secured by our Champions Village property has a maximum commitment of $34.16 million. As of September 30, 2017, the Company has an outstanding principal balance of $27.4 million. Additional advances of the mortgage commitment will be drawn as the Company achieves leasing activity. Additional advances are available through October 2019. This mortgage note has a variable interest of the greater of (i) 3.25% or (ii) the sum of the 3.00% plus the LIBOR Rate, which was 4.24% as of September 30, 2017.

As of September 30, 2017, the weighted-average remaining life of deferred loan costs related to the Company's mortgage indebtedness was approximately 9.0 years.

Credit Facility

The Company has a credit facility, or Credit Facility, with KeyBank National Association, or KeyBank, which defines a revolving line of credit, or Revolving Line of Credit, which is used to fund investments, capital expenditures, dividends (with consent of KeyBank), working capital and other general corporate purposes on an as needed basis. The maximum borrowing capacity on the Revolving Line of Credit was increased to $150,000,000 pursuant to the Fourth Amended and Restated Credit Agreement, as amended effective December 27, 2016, or the Amended and Restated Credit Agreement. The Revolving Line of Credit accrues interest at a variable rate of one month LIBOR plus 3.25% per annum and matures on August 5, 2019, with an option to extend the maturity date to August 5, 2020, subject to certain conditions described therein. The weighted average interest rate for the Revolving Line of Credit was 4.51% for the nine-month period ended September 30, 2017. The Revolving Line of Credit also bears a commitment fee on the average daily unused portion of the Revolving Line of Credit of 0.35% per annum.

On January 5, 2016, we entered into a $35.0 million term loan with KeyBank under the Credit Facility, or the 2016 Term Loan,

to partially finance the acquisition of the Baldwin Park multifamily community. The Term Loan accrued interest at a rate of LIBOR plus 3.75% per annum. On August 5, 2016, the Company repaid the 2016 Term Loan in full.

On May 26, 2016, the Company entered into a $11.0 million interim term loan with KeyBank, or the Interim Term Loan, to partially finance the acquisition of Anderson Central, a grocery-anchored shopping center located in Anderson, South Carolina. The Interim Term Loan accrues interest at a rate of LIBOR plus 2.5% per annum and the maturity date was extended to November 21, 2017 during the third quarter 2017. The weighted average interest rate for the Interim Term Loan was 3.66% for the nine-month period ended September 30, 2017.

The Fourth Amended and Restated Credit Agreement contains certain affirmative and negative covenants, including negative covenants that limit or restrict secured and unsecured indebtedness, mergers and fundamental changes, investments and acquisitions, liens and encumbrances, dividends, transactions with affiliates, burdensome agreements, changes in fiscal year and other matters customarily restricted in such agreements. The amount of dividends that may be paid out by the Company is restricted to a maximum of 95% of AFFO for the trailing rolling four quarters without the lender's consent; solely for purposes of this covenant, AFFO is calculated as earnings before interest, taxes, depreciation and amortization expense, plus reserves for capital expenditures, less normally recurring capital expenditures, less consolidated interest expense.

As of September 30, 2017, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:

Covenant (1)	Requirement		Result
Net worth	Minimum $1,083,509,483	(2)	$1,170,151,180
Debt yield	Minimum 8.0%		9.18%
Payout ratio	Maximum 95.0%	(3)	92.8%
Total leverage ratio	Maximum 65.0%		60%
Debt service coverage ratio	Minimum 1.50x		2.04x

⁽¹⁾ All covenants are as defined in the credit agreement for the Revolving Line of Credit.

⁽²⁾ Minimum $687 million plus 75% of the net proceeds of any equity offering, which totaled approximately $1.1 billion as of September 30, 2017.

⁽³⁾Calculated on a trailing four-quarter basis. For the twelve-month period ended September 30, 2017, the maximum dividends and distributions allowed under this covenant was approximately $89.0 million.

Loan fees and closing costs for the establishment and subsequent amendments of the Credit Facility are amortized utilizing the straight line method over the life of the Credit Facility. At September 30, 2017, unamortized loan fees and closing costs for the Credit Facility were approximately $1.2 million, which will be amortized over a remaining loan life of approximately 1.9 years. Loan fees and closing costs for the mortgage debt on the Company's properties are amortized utilizing the effective interest rate method over the lives of the loans.

Acquisition Facility

On February 28, 2017, the Company entered into a credit agreement, or Acquisition Credit Agreement, with Freddie Mac through KeyBank to obtain an acquisition revolving credit facility, or Acquisition Facility, with a maximum borrowing capacity of $200 million. The purpose of the Acquisition Facility is to finance acquisitions of multifamily communities and student housing communities. The maximum borrowing capacity on the Acquisition Facility may be increased at the Company's request up to $300 million at any time prior to March 1, 2021. The Acquisition Facility accrues interest at a variable rate of one month LIBOR plus a margin of between 1.75% per annum and 2.20% per annum, depending on the type of assets acquired and the resulting property debt service coverage ratio. The Acquisition Facility has a maturity date of March 1, 2022 and has two one-year extension options, subject to certain conditions described therein. At September 30, 2017, unamortized loan fees and closing costs for the establishment of the Acquisition Facility were approximately $0.3 million, which will be amortized over a remaining loan life of approximately 4.5 years. As of September 30, 2017, the Acquisition Facility financed the SoL student housing property and the Retreat at Greystone and Aldridge at Town Village multifamily communities, totaling approximately $110.7 million.

Interest Expense

Interest expense, including amortization of deferred loan costs was:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Multifamily communities	$	9,515,838	$	7,852,145	$	26,620,941	$	21,006,486
New Market Properties	3,858,588		2,615,924		10,699,043		5,588,947
Preferred Office Properties	1,676,933		133,681		5,030,560		133,681
Interest paid to real estate loan participants	569,141		482,246		1,825,470		1,341,104
Total	15,620,500		11,083,996		44,176,014		28,070,218
Credit Facility and Acquisition Facility	1,057,918		1,150,178		3,909,002		2,618,287
Interest Expense	$	16,678,418	$	12,234,174	$	48,085,016	$	30,688,505

Future Principal Payments

The Company’s estimated future principal payments due on its debt instruments as of September 30, 2017 were:

Period	Future principal payments
2017	$	59,940,046	(1)
2018	45,147,144
2019	242,834,004
2020	64,621,789
2021	121,250,100
thereafter	1,116,771,170
Total	$	1,650,564,253
(1) Includes the principal amount due on the Company's Revolving Line of Credit of $43.0 million and Term Note of $11.0 million.

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Income Taxes

9 Months Ended

Sep. 30, 2017

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The Company elected to be taxed as a REIT effective with its tax year ended December 31, 2011, and therefore, the Company will not be subject to federal and state income taxes after this effective date, so long as it distributes 100% of the Company's annual REIT taxable income (which does not equal net income as calculated in accordance with GAAP and determined without regard for the deduction for dividends paid and excluding net capital gains) to its shareholders. For the period preceding this election date, the Company's operations resulted in a tax loss. As of December 31, 2010, the Company had deferred federal and state tax assets totaling approximately $298,100, none of which were based upon tax positions deemed to be uncertain. These deferred tax assets will most likely not be used since the Company elected REIT status; therefore, management has determined that a 100% valuation allowance is appropriate as of September 30, 2017 and December 31, 2016.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

On March 28, 2014, the Company entered into a payment guaranty in support of its Manager's new eleven-year office lease, which began on October 9, 2014. As of September 30, 2017, the amount guarantied by the Company was $6.7 million and is reduced by $619,304 per lease year over the term of the lease.

Certain officers and employees of the Manager have been assigned company credit cards. As of September 30, 2017, the Company guarantied up to $640,000 on these credit cards.

The Company is otherwise currently subject to neither any known material commitments or contingencies from its business operations, nor any material known or threatened litigation.

A total of approximately $5.1 million of asset management and general and administrative fees related to acquired properties as of September 30, 2017 have been forfeited by the Manager.  The forfeited fees are converted at the time of forfeiture into contingent fees, which are earned by the Manger only in the event of a sales transaction, and whereby the Company’s capital contributions for the property being sold exceed a 7% annual rate of return.  The Company will recognize in future periods to the extent, if any, it determines that the sales transaction is probable, and that the estimated net sale proceeds would exceed the annual rate of return hurdle.  As of September 30, 2017, a total of $4.3 million remains contingent and could possibly be earned by the Manager in the future.  

At September 30, 2017, the Company had unfunded balances on its real estate loan portfolio of approximately $92.7 million.

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Segment information

9 Months Ended

Sep. 30, 2017

Segment Information [Abstract]

Segment Reporting Disclosure [Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property operating and maintenance expense
Multifamily communities	$	5,566,320	$	4,552,744	$	14,602,003	$	11,757,778
New Market Properties	1,260,108		904,877		4,037,922		2,078,128
Preferred Office Properties	1,074,325		47,227		2,997,626		47,227
Total	$	7,900,753	$	5,504,848	$	21,637,551	$	13,883,133

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Salary and benefits reimbursement
Multifamily communities	$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403
New Market Properties	—		—		—		—
Preferred Office Properties	202,787		18,067		654,756		18,067
Total	$	3,402,623	$	2,808,402	$	9,649,843	$	7,688,470

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property management fees
Multifamily communities	$	1,412,908	$	1,366,159	$	4,154,123	$	3,542,237
New Market Properties	459,884		332,869		1,381,404		741,221
Preferred Office Properties	180,654		25,383		480,476		25,383
Total	$	2,053,446	$	1,724,411	$	6,016,003	$	4,308,841

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate taxes
Multifamily communities	$	4,808,502	$	3,792,370	$	14,872,841	$	13,034,764
New Market Properties	2,034,030		950,444		5,889,820		2,376,099
Preferred Office Properties	863,174		46,271		2,527,123		46,271
Total	$	7,705,706	$	4,789,085	$	23,289,784	$	15,457,134

Segment Information

The Company's Chief Operating Decision Maker, or CODM, evaluates the performance of the Company's business operations and allocates financial and other resources by assessing the financial results and outlook for future performance across four distinct segments: multifamily communities, real estate related financing, New Market Properties and Preferred Office Properties.

Multifamily Communities - consists of the Company's portfolio of owned residential multifamily communities and student housing properties.

Financing - consists of the Company's portfolio of real estate loans, bridge loans, and other instruments deployed by the Company to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. Excluded from the financing segment are financial results of the Company's Dawson Marketplace grocery-anchored shopping center real estate loan.

New Market Properties - consists of the Company's portfolio of grocery-anchored shopping centers, which are owned by New Market Properties, LLC, a wholly-owned subsidiary of the Company, as well as the financial results from the Company's grocery-anchored shopping center real estate loans.

Preferred Office Properties - consists of the Company's portfolio of office buildings.

The CODM monitors net operating income (“NOI”) on a segment and a consolidated basis as a key performance measure for its operating segments. NOI is defined as rental and other property revenue from real estate assets plus interest income from its loan portfolio less total property operating and maintenance expenses, property management fees, real estate taxes, property insurance, and general and administrative expenses. The CODM uses NOI as a measure of operating performance because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs, acquisition expenses, and other expenses generally incurred at the corporate level.  

The following tables present the Company's assets, revenues, and NOI results by reportable segment, as well as a reconciliation from NOI to net income (loss). The assets attributable to 'Other' primarily consist of  deferred offering costs recorded but not yet reclassified as reductions of stockholders' equity and cash balances at the Company and Operating Partnership levels.

	September 30, 2017		December 31, 2016
Assets:
Multifamily communities	$	1,452,181,360	$	1,166,766,664
Financing	465,505,478		379,070,918
New Market Properties	683,712,963		579,738,707
Preferred Office Properties	309,351,565		285,229,700
Other	16,967,902		10,026,613
Consolidated assets	$	2,927,719,268	$	2,420,832,602

Total capitalized expenditures (inclusive of additions to construction in progress, but exclusive of the purchase price of acquisitions) for the three months and nine months ended September 30, 2017 and 2016 were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Capitalized expenditures:
Multifamily communities	$	2,897,758	$	2,674,743	$	9,006,194	$	6,762,650
New Market Properties	1,225,189		565,010		2,763,764		1,679,766
Total	$	4,122,947	$	3,239,753	$	11,769,958	$	8,442,416

The Company also recognized second-generation capital expenditures within its office building portfolio of $25,883 for Brookwood Center and $78,593 for Galleria 75 during the third quarter 2017. Second-generation capital expenditures exclude those expenditures made in our office building portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our Class A ownership standards (and which amounts were underwritten into the total investment at the time of acquisition), (iii) for property re-developments and repositionings and (iv) for building improvements that are recoverable from future operating cost savings.

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Revenues
Rental revenues:
Multifamily communities	$	32,366,025	$	29,059,716	$	92,947,516	$	79,330,404
New Market Properties	11,051,695		7,767,052		30,967,411		16,718,701
Preferred Office Properties (1)	6,654,415		492,439		19,762,035		492,439
Total rental revenues	$	50,072,135	$	37,319,207	$	143,676,962	$	96,541,544
Other revenues:
Multifamily communities	$	3,624,000	$	3,195,237	$	10,173,457	$	8,611,136
New Market Properties	3,918,486		2,426,791		11,203,483		5,996,759
Preferred Office Properties	2,236,918		20,507		6,529,078		20,506
Total other revenues	9,779,404		5,642,535		27,906,018		14,628,401
Financing	15,048,660		10,575,595		40,769,467		29,957,117
Consolidated revenues	$	74,900,199	$	53,537,337	$	212,352,447	$	141,127,062
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia office building. As of September 30, 2017, the Company has deferred a total of $23.8 million of such improvements. The remaining balance to be recognized is approximately $23.4 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2017. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded noncash revenue of approximately $287,000 and $457,000 for the three-month and nine-month periods ended September 30, 2017.

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property operating and maintenance expense
Multifamily communities	$	5,566,320	$	4,552,744	$	14,602,003	$	11,757,778
New Market Properties	1,260,108		904,877		4,037,922		2,078,128
Preferred Office Properties	1,074,325		47,227		2,997,626		47,227
Total	$	7,900,753	$	5,504,848	$	21,637,551	$	13,883,133

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Salary and benefits reimbursement
Multifamily communities	$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403
New Market Properties	—		—		—		—
Preferred Office Properties	202,787		18,067		654,756		18,067
Total	$	3,402,623	$	2,808,402	$	9,649,843	$	7,688,470

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property management fees
Multifamily communities	$	1,412,908	$	1,366,159	$	4,154,123	$	3,542,237
New Market Properties	459,884		332,869		1,381,404		741,221
Preferred Office Properties	180,654		25,383		480,476		25,383
Total	$	2,053,446	$	1,724,411	$	6,016,003	$	4,308,841

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate taxes
Multifamily communities	$	4,808,502	$	3,792,370	$	14,872,841	$	13,034,764
New Market Properties	2,034,030		950,444		5,889,820		2,376,099
Preferred Office Properties	863,174		46,271		2,527,123		46,271
Total	$	7,705,706	$	4,789,085	$	23,289,784	$	15,457,134

	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
Segment net operating income (Segment NOI)
Multifamily communities	$	19,410,732	$	18,413,797		$	55,995,891		$	48,169,241
Financing	15,048,659		10,575,595			40,769,467			29,957,116
New Market Properties	10,928,364		7,795,476			29,990,860			17,048,716
Preferred Office Properties	6,211,853		373,454			18,715,713			373,454
Consolidated segment net operating income	51,599,608		37,158,322			145,471,931			95,548,527
Interest and loss on early debt extinguishment:
Multifamily communities	9,515,838		7,852,145			26,620,941			21,006,486
New Market Properties	3,858,588		2,615,924			10,699,043			5,588,947
Preferred Office Properties	1,676,934		133,681			5,030,560			133,681
Financing	1,627,058		1,632,424			5,734,472			3,959,391
Depreciation and amortization:
Multifamily communities	18,018,869		16,028,880			50,850,768			42,800,401
New Market Properties	7,611,979		5,452,490			21,714,453			11,997,670
Preferred Office Properties	3,272,922		182,993			9,621,739			182,993
Professional fees	525,539		593,623			1,551,192			2,176,510
Management fees, net of forfeitures	4,491,662		3,022,124			13,522,653			8,025,916
Acquisition costs:
Multifamily communities	—		601,033			(20,559		)	4,645,530
New Market Properties	—		396,679			25,402			1,856,933
Preferred Office Properties	—		359,825			9,159			383,401
Equity compensation to directors and executives	863,412		638,414			2,607,667			1,867,706
Gain on sale of real estate	—		—			37,635,014			4,271,506
Loss on extinguishment of debt	—		—			(888,428		)	—
Other	94,028		336,707			842,566			1,055,099
Net income (loss)	$	42,779	$	(2,688,620	)	$	33,408,461		$	(5,860,631	)

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Loss per Share

9 Months Ended

Sep. 30, 2017

Loss per share [Abstract]

Earnings Per Share [Text Block]

The following is a reconciliation of weighted average basic and diluted shares outstanding used in the calculation of income (loss) per share of Common Stock:

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Numerator:
	Net income (loss) before gain on sale of real estate	$	42,779		$	(2,688,620	)	$	(4,226,553	)	$	(10,132,137	)
	Gain on sale of real estate, net of disposition expenses	—			—			37,635,014			4,271,506
	Net income (loss)	42,779			(2,688,620		)	33,408,461			(5,860,631		)
	Consolidated net (income) loss attributable to non-controlling	(1,119		)	86,484			(1,097,008		)	175,045
	interests (A)
	Net income (loss) attributable to the Company	41,660			(2,602,136		)	32,311,453			(5,685,586		)
	Dividends declared to preferred stockholders (B)	(16,420,996		)	(11,015,706		)	(46,042,181		)	(28,341,723		)
	Earnings attributable to unvested restricted stock (C)	(4,302		)	(6,159		)	(11,743		)	(12,434		)
	Net income (loss) attributable to common stockholders	$	(16,383,638	)	$	(13,624,001	)	$	(13,742,471	)	$	(34,039,743	)
Denominator:
	Weighted average number of shares of Common Stock - basic	33,539,920			24,340,791			30,147,497			23,552,951
	Effect of dilutive securities: (D)	—			—			—			—
	Weighted average number of shares of Common Stock,
	basic and diluted	33,539,920			24,340,791			30,147,497			23,552,951
	Net loss per share of Common Stock attributable to
	common stockholders, basic and diluted	$	(0.49	)	$	(0.56	)	$	(0.46	)	$	(1.45	)

^(A) The Company's outstanding Class A Units of the Operating Partnership (901,195 and 886,168 Units at September 30, 2017 and 2016, respectively) contain rights to distributions in the same amount per unit as for dividends declared on the Company's Common Stock. The impact of the Class A Unit distributions on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Class A Units based on dividends declared and the Class A Units' participation rights in undistributed earnings.

^(B) The Company’s shares of Series A Preferred Stock outstanding accrue dividends at an annual rate of 6% of the stated value of $1,000 per share, payable monthly. The Company had 1,115,616 and 802,032 outstanding shares of Series A Preferred Stock at September 30, 2017 and 2016, respectively. The Company's shares of Series M preferred stock, or mshares, accrue dividends at an escalating rate of 5.75% in year one to 7.5% in year eight and thereafter. The Company had 12,396 mshares outstanding at September 30, 2017.

^(C) The Company's outstanding unvested restricted share awards (18,306 and 23,247 shares of Common Stock at September 30, 2017 and 2016, respectively) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings. Given the Company incurred a net loss from continuing operations for the three-month and nine-month periods ended September 30, 2017 and 2016, the dividends declared for that period are adjusted in determining the calculation of loss per share of Common Stock since the unvested restricted share awards are defined as participating securities.

^(D) Potential dilution from (i) warrants outstanding from issuances of Units from our Series A Preferred Stock offerings that are potentially exercisable into 16,931,180 shares of Common Stock; (ii) 345,789 Class B Units; (iii) 18,306 shares of unvested restricted common stock; and (iv) 23,700 outstanding Restricted Stock Units are excluded from the diluted shares calculations because the effect was antidilutive. Class A Units were excluded from the denominator because earnings were allocated to non-controlling interests in the calculation of the numerator.

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Pro Forma Financial Information

9 Months Ended

Sep. 30, 2017

Pro Forma Financial Information [Abstract]

Subsequent Event, Pro Forma Business Combinations [Text Block]

Pro Forma Financial Information (unaudited)

The Company’s condensed pro forma financial results assume the following acquisitions were hypothetically completed on January 1, 2015:

Baldwin Park	City Vista
Crosstown Walk	Sorrel
Overton Rise	Lakeland Plaza
525 Avalon Park	Sunbelt Seven Portfolio
North by Northwest	Champions Village
Wade Green Village	Brookwood Office
Southeastern Six Portfolio	Galleria 75
The Market at Victory Village	Three Ravinia

The Company’s condensed pro forma financial results were:

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Pro forma:
	Revenues	$	74,970,784		$	63,754,083		$	212,542,233		$	189,494,650
	Net income (loss)	$	996,408		$	(255,917	)	$	38,270,000		$	(5,957,523	)
	Net income (loss) attributable to the Company	$	958,120		$	(240,446	)	$	37,029,878		$	(5,799,045	)
	Net income (loss) attributable to common stockholders	$	(15,467,178	)	$	(11,262,311	)	$	(9,024,046	)	$	(34,205,524	)
	Net income (loss) per share of Common Stock
	attributable to common stockholders,
	Basic and diluted	$	(0.46	)	$	(0.46	)	$	(0.30	)	$	(1.45	)
	Weighted average number of shares of Common Stock
	outstanding, basic and diluted	33,539,920			24,340,791			30,147,497			23,522,951

Material nonrecurring pro forma adjustments which were directly attributable to these business combinations included the pro forma removal of all acquisition costs incurred from the actual historical periods of recognition of approximately $1.3 million and $6.8 million for the three-month and nine-month periods ended September 30, 2016. Effective January 1, 2017, we adopted Accounting Standard Update 2017-01, which requires acquisition costs for asset acquisitions to be capitalized and and amortized rather than expensed as incurred. These pro forma results are not necessarily indicative of what historical performance would have been had these business combinations been effective as of the hypothetical acquisition dates listed above, nor should they be interpreted as expectations of future results.

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Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Values of Financial Instruments [Abstract]

Fair Value Disclosures [Text Block]

Fair Values of Financial Instruments

Fair value is defined as the price at which an asset or liability is exchanged between market participants in an orderly transaction at the reporting date. The Company’s cash equivalents, notes receivable, accounts receivable and payables and accrued expenses all approximate fair value due to their short term nature.

The following tables provide estimated fair values of the Company’s financial instruments. The carrying values of the Company's real estate loans include accrued interest receivable from additional interest or exit fee provisions and are presented net of deferred loan fee revenue, where applicable.

	As of September 30, 2017
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	409,204,915	$	455,909,983	$	—	$	—	$	455,909,983
Notes receivable and line of credit receivable	42,351,496		42,351,496		—		—		42,351,496
	$	451,556,411	$	498,261,479	$	—	$	—	$	498,261,479
Financial Liabilities:
Mortgage notes payable	$	1,596,564,253	$	1,595,108,853	$	—	$	—	$	1,595,108,853
Revolving credit facility	43,000,000		43,000,000		—		—		43,000,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	17,877,914		18,218,715		—		—		18,218,715
	$	1,668,442,167	$	1,667,327,568	$	—	$	—	$	1,667,327,568

	As of December 31, 2016
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	332,761,068	$	374,856,749	$	—	$	—	$	374,856,749
Notes receivable and line of credit receivable	37,615,675		37,615,675		—		—		37,615,675
	$	370,376,743	$	412,472,424	$	—	$	—	$	412,472,424
Financial Liabilities:
Mortgage notes payable (2)	$	1,327,878,112	1,314,966,652		$	—	$	—	$	1,314,966,652
Revolving credit facility	127,500,000		127,500,000		—		—		127,500,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	20,761,819		21,500,448		—		—		21,500,448
	$	1,487,139,931	$	1,474,967,100	$	—	$	—	$	1,474,967,100

⁽¹⁾ The carrying value of real estate assets includes the Company's balance of the Palisades, Green Park, Encore and Stadium Village real estate loans, which includes the amounts funded by unrelated participants. The loan participation obligations are the amounts due to the participants under these arrangements. Accrued interest included in the carrying values of the Company's real estate loans was approximately $27.7 million and $21.9 million at September 30, 2017 and December 31, 2016, respectively.

The fair value of the real estate loans within the level 3 hierarchy are comprised of estimates of the fair value of the notes, which were developed utilizing a discounted cash flow model over the remaining terms of the notes until their maturity dates and utilizing discount rates believed to approximate the market risk factor for notes of similar type and duration. The fair values also contain a separately-calculated estimate of any applicable additional interest payment due the Company at the maturity date of the loan, based on the outstanding loan balances at September 30, 2017, discounted to the reporting date utilizing a discount rate believed to be appropriate for multifamily development projects.

The fair values of the fixed rate mortgages on the Company’s properties were developed using market quotes of the fixed rate yield index and spread for four, five, seven, ten and 35 year notes as of the reporting date. The present values of the cash flows were calculated using the original interest rate in place on the fixed rate mortgages and again at the current market rate. The difference between the two results was applied as a fair market adjustment to the carrying value of the mortgages.

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Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

Between October 1, 2017 and October 31, 2017, the Company issued 31,122 Units and collected net proceeds of approximately $28.0 million after commissions and fees under its $1.5 Billion Unit Offering. Between October 1, 2017 and October 31, 2017, the Company issued 841 shares of Series M Preferred Stock and collected net proceeds of approximately $816,000 after commissions and fees under the mShares offering.

On October 23, 2017 the Company declared a quarterly dividend on its Common Stock of $0.25 per share, payable on January 16, 2018 to stockholders of record on December 15, 2017.

On October 27, 2017, the Company acquired a 98% interest in a joint venture which owns the Stadium Village student housing property in Atlanta, Georgia. The Company's real estate loan with an outstanding principal amount of approximately $13.3 million was repaid in conjunction with this transaction.

On October 27, 2017, the Company's real estate loan supporting the 18 Nineteen property in Lubbock, Texas with an outstanding principal amount of approximately $15.6 million was repaid in full. The 18 Nineteen property was sold to a third party on October 19, 2017.

On October 31, 2017, the Company refinanced the mortgage on the Aldridge at Town Village multifamily community from its Acquisition Facility into a permanent mortgage with a principal amount of $37.9 million and which bears interest at a fixed rate of 4.19% per annum.

On October 31, 2017, the Company refinanced the mortgage on the Summit Crossing multifamily community with a remaining principal amount of $24.7 million into a new mortgage of $39.1 million which bears interest at a fixed rate of 3.99% per annum.

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Significant Accounting Policies Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2017

Summary of Significant Accounting Policies [Abstract]

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment assessment

The Company evaluates its tangible and identifiable intangible real estate assets for impairment when events such as declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total undiscounted cash flows of the asset group, including proceeds from disposition, are compared to the net book value of the asset group. If this test indicates that impairment exists, an impairment loss is recorded in earnings equal to the shortage of the book value to fair value, calculated as the discounted net cash flows of the asset group.

Discontinued Operations, Policy [Policy Text Block]

Acquisition Costs

Through December 31, 2016, the Company expensed property acquisition costs as incurred, which include costs such as due diligence, legal, certain accounting, environmental and consulting, when the acquisition constituted a business combination. As described below in the section entitled New Accounting Pronouncements, Accounting Standards Update 2017-01 was adopted by the Company effective January 1, 2017, which changed the definition of a business. Under this new guidance, most property acquisitions made by the Company will fall within the category of acquired assets rather than acquired businesses. This distinction will cause the Company to capitalize its costs for acquisitions (including, effective July 1, 2017, a 1% acquisition fee), allocate them to the fair value of acquired assets and liabilities and amortize these costs over the remaining useful lives of those assets and liabilities.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Identifiable intangible assets

In-place leases

Multifamily communities and student housing properties

The fair value of in-place leases are estimated by calculating the estimated time to fill a hypothetically empty apartment complex to its stabilization level (estimated to be 93% occupancy) based on historical observed move-in rates for each property, and which approximate market rates. Carrying costs during these hypothetical expected lease-up periods are estimated, considering current market conditions and include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates. The intangible assets are calculated by estimating the net cash flows of the in-place leases to be realized, as compared to the net cash flows that would have occurred had the property been vacant at the time of acquisition and subject to lease-up. The acquired in-place lease values are amortized to operating expense over the average remaining non-cancelable term of the respective in-place leases.

Grocery-anchored shopping centers and office buildings

The fair value of in-place leases represent the value of direct costs associated with leasing, including opportunity costs associated with lost rentals that are avoided by acquiring in-place leases. Direct costs associated with obtaining a new tenant include commissions, legal and marketing costs, incentives such as tenant improvement allowances and other direct costs. Such direct costs are estimated based on our consideration of current market costs to execute a similar lease. The value of opportunity costs is calculated using the estimated market lease rates and the estimated absorption period of the space. These direct costs and opportunity costs are included in the accompanying consolidated balance sheets as acquired intangible assets and are amortized to expense over the remaining term of the respective leases.

Above-market and below-market lease values

Multifamily communities and student housing properties

These values are usually not significant or are not applicable for these properties.

Grocery-anchored shopping centers and office buildings

The values of above-market and below-market leases are developed by comparing the Company's estimate of the average market rents and expense reimbursements to the average contract rent at the property acquisition date. The amount by which contract rent and expense reimbursements exceed estimated market rent are summed for each individual lease and discounted for a singular aggregate above-market lease intangible asset for the property. The amount by which estimated market rent exceeds contract rent and expense reimbursements are summed for each individual lease and discounted for a singular aggregate below-market lease intangible liability. The above-market or below-market lease values are recorded as a reduction or increase, respectively, to rental revenue over the remaining noncancelable term of the respective leases, plus any below-market probable renewal options.

Revenue Recognition Leases, Operating [Policy Text Block]

Revenue Recognition

Multifamily communities and student housing properties

Rental revenue is recognized when earned from residents of the Company's multifamily communities, which is over the terms of rental agreements, typically of 12 months’ duration. The Company evaluates the collectability of amounts due from residents and maintains an allowance for doubtful accounts for estimated losses resulting from the inability of residents to make required payments then due under lease agreements. The balance of amounts due from residents are generally deemed uncollectible 30 days beyond the due date, at which point they are fully reserved.

Grocery-anchored shopping centers and office buildings

Rental revenue from tenants' operating leases in the Company's grocery-anchored shopping centers and office buildings is recognized on a straight-line basis over the term of the lease. Revenue based on "percentage rent" provisions that provide for additional rents that become due upon achievement of specified sales revenue targets (as specified in each lease agreement) is recognized only after the tenant exceeds its specified sales revenue target. Revenue from reimbursements of the tenants' share of real estate taxes, insurance and common area maintenance, or CAM, costs are recognized in the period in which the related expenses are incurred. Lease termination revenues are recognized ratably over the revised remaining lease term after giving effect to the termination notice or when tenant vacates and the Company has no further obligations under the lease. Rents and tenant reimbursements collected in advance are recorded as prepaid rent within other liabilities in the accompanying consolidated balance sheets. The Company estimates the collectability of the tenant receivable related to rental and reimbursement billings due from tenants and straight-line rent receivables, which represent the cumulative amount of future adjustments necessary to present rental revenue on a straight-line basis, by taking into consideration the Company's historical write-off experience, tenant credit-worthiness, current economic trends, and remaining lease terms. The Company may provide retail and office building tenants an allowance for the construction of leasehold improvements. These leasehold improvements are capitalized and depreciated over the shorter of the useful life of the improvements or the remaining lease term. If the allowance represents a payment for a purpose other than funding leasehold improvements, or in the event the Company is not considered the owner of the improvements, the allowance is considered to be a lease incentive and is recognized over the lease term as a reduction of rental revenue. Determination of the appropriate accounting for the payment of a tenant allowance is made on a lease-by-lease basis, considering the facts and circumstances of the individual tenant lease. When the Company is the owner of the leasehold improvements, recognition of rental revenue commences when the lessee is given possession of the leased space upon completion of tenant improvements. However, when the leasehold improvements are owned by the tenant, the lease inception date is the date the tenant obtains possession of the leased space for purposes of constructing its leasehold improvements. For our Preferred Office Properties, if the improvement is deemed to be a “landlord asset,” and the tenant funded the tenant improvements, the cost is amortized over the term of the underlying lease as rental revenues. In order to qualify as a landlord asset, the specifics of the tenant’s assets are reviewed, including the Company's approval of the tenant’s detailed expenditures, whether such assets may be usable by other future tenants, whether the Company has consent to alter or remove the assets from the premises and generally remain the Company's property at the end of the lease.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides a single comprehensive revenue recognition model for contracts with customers (excluding certain contracts, such as lease contracts) to improve comparability within industries. ASU 2014-09 requires an entity to recognize revenue to reflect the transfer of goods or services to customers at an amount the entity expects to be paid in exchange for those goods and services and provide enhanced disclosures, all to provide more comprehensive guidance for transactions such as service revenue and contract modifications. The new standard may be applied retrospectively to each prior period presented or prospectively with the cumulative effect, if any, recognized as of the date of adoption. The Company anticipates selecting the modified retrospective transition method with a cumulative effect recognized as of the date of adoption and will adopt the new standard effective January 1, 2018, when effective. In addition, the evaluation of non-lease components under ASU 2014-09 will not be effective until Accounting Standards Update No. 2016-02, Leases (Topic 842), ("ASU 2016-02") becomes effective (see further discussion below), which will be first quarter of 2019 for the Company. The Company has determined that approximately 90% of its revenues from its New Market Properties and office building segments are derived from either long-term leases with its tenants or reimbursement of property tax and insurance expenses, which are excluded from the scope of the ASU 2014-09. Of the remaining 10% of New Market Properties and office building segment revenues, the majority is comprised of common area maintenance (“CAM”) reimbursements, which is a non-lease component under ASU 2014-09 and therefore within its scope of adoption. Based on management's assessment to date, the Company does not expect the timing of the recognition of reimbursement revenue and other miscellaneous income to change as a result of the new guidance, though certain classifications will change between rental revenue and tenant reimbursements. Similarly, the Company's multifamily communities segment derives the majority of its revenues from rental operations, to which this standard is not applicable. However, the Company does provide non-rental services to its residents related to ancillary services and is currently evaluating the various revenue streams to identify any potential sources which may require bifurcation and reclassification. The Company is continuing to evaluate the impact the adoption of ASU 2014-09 will have on its results of operations and financial condition.

In January 2016, the FASB issued Accounting Standards Update 2016-01 ("ASU 2016-01"), Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The new standard's applicable provisions to the Company include an elimination of the disclosure requirement of the significant inputs and assumptions underlying the fair value calculations of its financial instruments which are carried at amortized cost. The standard is effective on January 1, 2018, and early adoption is not permitted. The adoption of ASU 2016-01 will not impact the Company's results of operations or financial condition.

In February 2016, the FASB issued Accounting Standards Update 2016-02 ("ASU 2016-02"), Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and supersedes the previous standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. The Company anticipates adopting ASC 842 utilizing the modified retrospective method and is continuing to evaluate the impacts this standard will have on its results of operations and financial condition.

In June 2016, the FASB issued Accounting Standards Update 2016-13 ("ASU 2016-13"), Financial Instruments—Credit Losses

(Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial instruments carried at amortized cost to be presented at the net amount expected to be collected, utilizing a valuation account which reflects the cumulative net adjustments from the gross amortized cost value. Under existing GAAP, entities would not record a valuation allowance until a loss was probable of occurring. The standard is effective for the Company on January 1, 2020. The Company is currently evaluating methods of deriving initial valuation accounts to be applied to its real estate loan portfolio. The Company is continuing to evaluate the pending guidance but does not believe the adoption of ASU 2016-13 will have a material impact on its results of operations or financial condition, since the Company has not yet experienced a credit loss related to any of its financial instruments.

In August 2016, the FASB issued Accounting Standards Update 2016-15 ("ASU 2016-15"), Statement of Cash Flows—(Topic 326): Classification of Certain Cash Receipts and Cash Payments. The new standard clarifies or establishes guidance for the presentation of various cash transactions on the statement of cash flows. The portion of the guidance applicable to the Company's business activities include the requirement that cash payments for debt prepayment or debt extinguishment costs be presented as cash out flows for financing activities. The standard is effective for the Company on January 1, 2018. The adoption of ASU 2016-15 will not impact the Company’s consolidated financial statements, since its current policy is to classify such costs as cash out flows for financing activities. 

In November 2016, the FASB issued Accounting Standards Update 2016-18 ("ASU 2016-18"), Statement of Cash Flows—(Topic 230): Restricted Cash, which requires restricted cash to be presented with cash and cash equivalents when reconciling the beginning and ending amounts in the statements of cash flows. ASU 2016-18 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company plans to adopt ASU 2016-18 on January 1, 2018. The Company currently reports changes in restricted cash within the investing activities section of its consolidated statements of cash flows and does not expect the adoption of ASU 2016-18 to impact its results of operations and financial condition.

In January 2017, the FASB issued Accounting Standards Update 2017-01 ("ASU 2017-01"), Business Combinations - (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business and provides further guidance for evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. ASU 2017-01 is effective for interim and annual periods beginning after December 15, 2017, and early adoption is permitted. The Company adopted ASU 2017-01 as of January 1, 2017. The Company believes its future acquisitions of multifamily communities, office buildings, grocery-anchored shopping centers, and student housing properties will generally qualify as asset acquisitions. To the extent acquisitions are deemed to be asset acquisitions, acquisition costs have been and will be capitalized and amortized rather than expensed as incurred. The impact of the adoption of ASU 2017-01 was an decrease of approximately $3.4 million of the Company's reported net income available to common stockholders for the three-month period ended September 30, 2017 and a decrease of approximately $6.1 million of the Company's reported net loss available to common stockholders for the nine-month period ended September 30, 2017 than it would have under previous guidance.

In February 2017, the FASB issued Accounting Standards Update 2017-05 (“ASU 2017-05”), Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which provides guidance for recognizing gains and losses from the transfer of nonfinancial assets and for partial sales of nonfinancial assets, and is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2017.  The new standard may be applied retrospectively to each prior period presented or under the modified retrospective method, with the cumulative effect recognized as of the date of adoption. The Company currently expects to adopt ASU 2017-05 utilizing the modified retrospective method and is continuing to evaluate the effect the adoption of ASU 2017-05 will have on its results of operations and financial condition.

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Real Estate Assets (Tables)

9 Months Ended

Sep. 30, 2017

Business Acquisition

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

real estate sold [Table Text Block]

The carrying amounts of the significant assets and liabilities of the disposed properties at the dates of sale were:

	Sandstone Creek			Ashford Park			Enclave at Vista Ridge
	1/20/2017			3/7/2017			5/25/2017
Real estate assets:
Land	$	2,846,197		$	10,600,000		$	4,704,917
Building and improvements	41,859,684			24,075,263			29,915,903
Furniture, fixtures and equipment	5,278,268			4,222,858			2,874,403
Accumulated depreciation	(4,808,539		)	(6,816,193		)	(3,556,362		)
Total assets	$	45,175,610		$	32,081,928		$	33,938,861
Liabilities:
Mortgage note payable	$	30,840,135		$	25,626,000		$	24,862,000
Supplemental mortgage note	$	—		$	6,373,717		$	—

real estate owned [Table Text Block]

The Company's real estate assets consisted of:

	As of:
	9/30/17	12/31/16
Multifamily communities:
Properties (1)	29	24
Units	9,086	8,049
New Market Properties (2)
Properties	37	31
Gross leasable area (square feet) (3)	3,854,196	3,295,491
Student housing properties:
Properties	2	1
Units	444	219
Beds	1,319	679
Preferred Office Properties:
Properties	3	3
Rentable square feet	1,094,000	1,096,834
(1) The acquired second phase of the Summit Crossing community is managed in combination with the initial phase and so together are considered a single property, as are the three assets that comprise the Lenox Portfolio.
(2) See note 12, Segment information.
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and not included in the totals above.

Table of Properties Acquired

During the nine-month period ended September 30, 2017, the Company completed the acquisition of the following multifamily communities and student housing property:

Acquisition date	Property	Location	Approximate purchase price (millions) (1)		Units
2/28/2017	SoL (2)	Tempe, Arizona	$	53.3	225
3/3/2017	Broadstone at Citrus Village	Tampa, Florida	$	47.4	296
3/24/2017	Retreat at Greystone	Birmingham, Alabama	$	50.0	312
3/31/2017	Founders Village	Williamsburg, Virginia	$	44.4	247
4/26/2017	Claiborne Crossing	Louisville, Kentucky	$	45.2	242
7/26/2017	Luxe at Lakewood Ranch	Sarasota, Florida	$	56.1	280
9/27/2017	Adara Overland Park	Kansas City, Kansas	$	45.5	260
9/29/2017	Aldridge at Town Village	Atlanta, Georgia	$	54.2	300
9/29/2017	The Reserve at Summit Crossing	Atlanta, Georgia	$	30.9	172
					2,334

⁽¹⁾ Purchase prices shown are exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

⁽²⁾ A 640-bed student housing community located adjacent to the campus of Arizona State University in Tempe, Arizona.

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Real Estate Loans, Notes Receivable, and Lines of Credit Real estate loans (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Real Estate Owned [Text Block]

	As of:
	9/30/17	12/31/16
Multifamily communities:
Properties (1)	29	24
Units	9,086	8,049
New Market Properties (2)
Properties	37	31
Gross leasable area (square feet) (3)	3,854,196	3,295,491
Student housing properties:
Properties	2	1
Units	444	219
Beds	1,319	679
Preferred Office Properties:
Properties	3	3
Rentable square feet	1,094,000	1,096,834
(1) The acquired second phase of the Summit Crossing community is managed in combination with the initial phase and so together are considered a single property, as are the three assets that comprise the Lenox Portfolio.
(2) See note 12, Segment information.
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and not included in the totals above.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	September 30, 2017			December 31, 2016
Number of loans	27			26
Drawn amount	$	411,300,449		$	334,570,242
Deferred loan origination fees	(2,095,534		)	(1,809,174		)
Carrying value	$	409,204,915		$	332,761,068
Unfunded loan commitments	$	92,666,156		$	76,546,234
Weighted average current interest, per annum (paid monthly)	8.48		%	8.26		%
Weighted average accrued interest, per annum	5.10		%	5.26		%

	Principal balance			Deferred loan origination fees			Carrying value
Balances as of December 31, 2016	$	334,570,242		$	(1,809,174	)	$	332,761,068
Loan fundings	119,225,599			—			119,225,599
Loan repayments	(42,495,392		)	—			(42,495,392		)
Commitment fees collected	—			(1,281,383		)	(1,281,383		)
Amortization of commitment fees	—			995,023			995,023
Balances as of September 30, 2017	$	411,300,449		$	(2,095,534	)	$	409,204,915

Property type	Number of loans	Carrying value		Commitment amount		Percentage of portfolio
Multifamily communities	16	$	234,186,944	$	299,657,110	57	%
Student housing properties	9	154,177,450		182,952,490		38	%
Grocery-anchored shopping centers	1	12,852,591		12,857,005		3	%
Other	1	7,987,930		8,500,000		2	%
Balances as of September 30, 2017	27	$	409,204,915	$	503,966,605

Notes receivable [Table Text Block]

ur portfolio of notes and lines of credit receivable consisted of:

Borrower	Date of loan	Maturity date	Total loan commitments		Outstanding balance as of:						Interest rate
					9/30/2017			12/31/2016
360 Residential, LLC (1)	3/20/2013	12/31/2017	$	2,000,000	$	1,958,998		$	1,472,571		12	%
Preferred Capital Marketing Services, LLC (2)	1/24/2013	12/31/2017	1,500,000		926,422			1,082,311			10	%
Oxford Contracting, LLC (1)	8/27/2013	(3)	-3		—			1,475,000			8	%
Preferred Apartment Advisors, LLC (1,2,4)	8/21/2012	12/31/2018	18,000,000		15,812,313			13,708,761			8	%
Haven Campus Communities, LLC (1,2)	6/11/2014	12/31/2017	11,110,000		7,324,904			7,324,904			12	%
Oxford Capital Partners, LLC (1,5)	10/5/2015	12/31/2017	10,150,000		8,972,378			7,870,865			12	%
Newport Development Partners, LLC (1)	6/17/2014	6/30/2018	3,000,000		—			—			12	%
360 Residential, LLC II (1)	12/30/2015	12/31/2017	3,255,000		3,230,232			2,884,845			15	%
Mulberry Development Group, LLC (1)	3/31/2016	6/30/2018	500,000		420,000			177,000			12	%
Mulberry Alexandria Group, LLC	7/31/2017	12/31/2017	1,400,000		990,154			—			12	%
360 Capital Company, LLC (1)	5/24/2016	12/31/2017	3,900,000		2,730,499			1,678,999			12	%
Unamortized loan fees					(14,404		)	(59,581		)
			$	54,815,000	$	42,351,496		$	37,615,675
(1) The amounts payable under the terms of these revolving credit lines are collateralized by a personal guaranty of repayment by the principals of the borrower.
(2) See related party disclosure in Note 6.
(3) Note was repaid on April 6, 2017 and terminated at its maturity date of April 30, 2017.
(4) The amounts payable under this revolving credit line were collateralized by an assignment of the Manager's rights to fees due under the Sixth Amended and Restated Management Agreement between the Company and the Manager.
(5) The amounts payable under the terms of this revolving credit line, up to the lesser of 25% of the loan balance or $2,000,000 are collateralized by a personal guaranty of repayment by the principals of the borrower.

interest income [Table Text Block]

The Company recorded interest income and other revenue from these instruments as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate loans:
Current interest payments	$	8,956,012	$	5,902,915	$	23,996,934	$	16,913,037
Additional accrued interest	5,005,796		3,917,641		13,894,268		10,633,937
Deferred origination fee amortization	408,077		201,147		995,023		636,875
Total real estate loan revenue	14,369,885		10,021,703		38,886,225		28,183,849
Interest income on notes and lines of credit	1,123,240		974,540		3,196,965		3,111,339
Interest income on loans and notes receivable	$	15,493,125	$	10,996,243	$	42,083,190	$	31,295,188

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

		Three months ended September 30,				Nine months ended September 30,
Type of Compensation	Basis of Compensation	2017		2016		2017		2016
Acquisition fees	As of July 1, 2017, 1.0% of the gross purchase price of real estate assets	$	2,604,551	$	—	$	2,604,551	$	—
Loan origination fees	1.0% of the maximum commitment of any real estate loan, note or line of credit receivable	878,939		250,602		1,296,383		1,374,828
Loan coordination fees	As of January 1, 2016, 1.6% of any assumed, new or supplemental debt incurred in connection with an acquired property. Effective July 1, 2017, the fee was reduced to 0.6% of any such debt.	1,056,885		3,493,227		4,066,393		8,178,836
Asset management fees	Monthly fee equal to one-twelfth of 0.50% of the total book value of assets, as adjusted	3,191,817		2,196,363		9,313,759		5,708,868
Property management fees	Monthly fee equal to 4% of the monthly gross revenues of the properties managed	1,569,603		1,438,569		4,554,880		3,629,322
General and administrative expense fees	Monthly fee equal to 2% of the monthly gross revenues of the Company	1,306,360		831,711		3,849,481		2,343,936
Construction management fees	Quarterly fee for property renovation and takeover projects	62,130		53,935		222,539		126,446
		$	10,670,285	$	8,264,407	$	25,907,986	$	21,362,236

Three months ended September 30,				Nine months ended September 30,
2017		2016		2017		2016
$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403

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Dividends (Tables)

9 Months Ended

Sep. 30, 2017

Dividends Payable [Line Items]

dividend activity [Table Text Block]

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

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Dividends Series A Preferred Stock (Tables)

9 Months Ended

Sep. 30, 2017

Series A Preferred Stock [Abstract]

dividend activity [Table Text Block]

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

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Dividends Class A Distributions (Tables)

9 Months Ended

Sep. 30, 2017

Noncontrolling Interest [Abstract]

partnership unit distributions [Table Text Block]

The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as those declared on the Common Stock. At September 30, 2017, the Company had 901,195 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash. Distribution activity by the Operating Partnership was:

2017				2016
Record date	Payment date	Aggregate distributions		Record date	Payment date	Aggregate distributions
March 15, 2017	April 14, 2017	$	198,742	March 15, 2016	April 15, 2016	$	117,395
June 15, 2017	July 14, 2017	211,781		June 15, 2016	July 15, 2016	179,449
September 15, 2017	October 16, 2017	211,781		September 15, 2016	October 14, 2016	179,449
		$	622,304			$	476,293

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Dividends Dividend characterization (Tables)

9 Months Ended

Sep. 30, 2017

Dividend characterization [Abstract]

dividends and distributions [Text Block]

Dividends and Distributions

The Company declares and pays monthly cash dividend distributions on its Series A Preferred Stock in the amount of $5.00 per share per month and beginning in March 2017, on its Series M Preferred Stock, on an escalating scale of $4.79 per month in year one, increasing to $6.25 per month in year eight and beyond. All preferred stock dividends are prorated for partial months at issuance as necessary.

The Company's cash distributions on its Preferred Stock were:

2017				2016
Record date	Number of shares	Aggregate dividends declared		Record date	Number of shares	Aggregate dividends declared
January 31, 2017	932,413	$	4,641,149	January 30, 2016	482,774	$	2,481,086
February 28, 2017	977,267	4,849,032		February 27, 2016	516,017	2,630,601
March 31, 2017	979,309	4,938,098		March 31, 2016	544,129	2,770,048
April 28, 2017	992,774	5,000,060		April 29, 2016	582,720	2,979,196
May 31, 2017	1,019,046	5,085,694		May 31, 2016	617,994	3,143,567
June 30, 2017	1,041,187	5,237,872		June 30, 2016	651,439	3,321,519
July 31, 2017	1,061,179	5,299,654		July 29, 2016	682,392	3,458,513
August 31, 2017	1,086,714	5,412,511		August 31, 2016	721,143	3,671,020
September 29, 2017	1,113,896	5,545,017		September 30, 2016	765,185	3,886,173
	Total	$	46,009,087		Total	$	28,341,723

The Company's dividend activity on its Common Stock for the nine-month periods ended September 30, 2017 and 2016 was:

2017						2016
Record date	Number of shares	Dividend per share		Aggregate dividends paid		Record date	Number of shares	Dividend per share		Aggregate dividends paid
March 15, 2017	27,139,354	$	0.220	$	5,970,658	March 15, 2016	23,041,502	$	0.1925	$	4,435,489
June 15, 2017	32,082,451	0.235		7,539,376		June 15, 2016	23,568,328	0.2025		4,772,587
September 15, 2017	34,715,982	0.235		8,158,256		September 15, 2016	24,652,041	0.2025		4,992,038
		$	0.69	$	21,668,290			$	0.5975	$	14,200,114

The holders of Class A OP Units of the Operating Partnership are entitled to equivalent distributions as those declared on the Common Stock. At September 30, 2017, the Company had 901,195 Class A OP Units outstanding, which are exchangeable on a one-for-one basis for shares of Common Stock or the equivalent amount of cash. Distribution activity by the Operating Partnership was:

2017				2016
Record date	Payment date	Aggregate distributions		Record date	Payment date	Aggregate distributions
March 15, 2017	April 14, 2017	$	198,742	March 15, 2016	April 15, 2016	$	117,395
June 15, 2017	July 14, 2017	211,781		June 15, 2016	July 15, 2016	179,449
September 15, 2017	October 16, 2017	211,781		September 15, 2016	October 14, 2016	179,449
		$	622,304			$	476,293

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Equity Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Equity Compensation [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The underlying valuation assumptions and results for the Class B OP Unit awards were:

Grant dates	1/3/2017			1/4/2016
Stock price	$	14.79		$	12.88
Dividend yield	5.95		%	5.98		%
Expected volatility	26.4		%	26.10		%
Risk-free interest rate	2.91		%	2.81		%
Number of Units granted:
One year vesting period	198,184			176,835
Three year vesting period	88,208			89,096
	286,392			265,931
Calculated fair value per Unit	$	11.92		$	10.03
Total fair value of Units	$	3,413,793		$	2,667,288
Target market threshold increase	$	4,598,624		$	3,549,000

The expected dividend yield assumptions were derived from the Company’s closing prices of the Common Stock on the grant dates and the projected future quarterly dividend payments per share of $0.22 for the 2017 awards and $0.1925 for the 2016 awards.

For the 2017 and 2016 awards, the Company's own stock price history was utilized as the basis for deriving the expected volatility assumption.

The risk-free rate assumptions were obtained from the Federal Reserve yield table and were calculated as the interpolated rate between the 20 and 30 year yield percentages on U. S. Treasury securities on the grant dates.

Since the Class B OP Units have no expiration date, a derived service period of one year was utilized, which equals the period of time from the grant date to the initial valuation date.

Restricted Stock Units

On January 3, 2017, the Company caused the Operating Partnership to grant 26,900 restricted stock units, or RSUs, for service to be rendered during 2017, 2018 and 2019. The RSUs vest in three equal consecutive one-year tranches from the date of grant. For each grant, on the Initial Valuation Date, the market capitalization of the number of shares of Common Stock at the date of grant is compared to the market capitalization of the same number of shares of Common Stock at the Initial Valuation Date. If the market capitalization measure results in an increase which exceeds the target market threshold, the Vested RSUs become earned RSUs and automatically convert into Common Stock on a one-to-one basis. Vested RSUs may become Earned RSUs on a pro-rata basis should the result of the market capitalization test be an increase of less than the target market threshold. Any Vested RSUs that do not become Earned RSUs on the Initial Valuation Date are subsequently remeasured on a quarterly basis until such time as all Vested RSUs become Earned RSUs or are forfeited due to termination of continuous service due to an event other than as a result of a qualified event, which is generally the death or disability of the holder. Continuous service through the final valuation date is required for the Vested RSUs to qualify to become fully Earned RSUs.

Because RSUs are valued using the identical market condition vesting requirement that determines the transition of the Vested Class B Units to Earned Class B Units, the same valuation assumptions and Monte Carlo result of $11.92 per RSU were utilized to calculate the total fair value of the RSUs of $320,648. Grants of RSUs, net of forfeitures, are amortized as compensation expense over the three one-year periods ending on each of January 2, 2018, 2019 and 2020. As of September 30, 2017, a total of 3,200 RSUs had been forfeited.

equity compensation expense [Table Text Block]

	Three months ended September 30,				Nine months ended September 30,				Unamortized expense as of September 30,
	2017		2016		2017		2016		2017
Quarterly board member committee fee grants	$	—	$	18,030	$	—	$	48,021	$	—
Class B Unit awards:
Executive officers - 2015	—		—		—		5,236		—
Executive officers - 2016	74,470		517,884		237,714		1,536,946		374,753
Executive officers - 2017	678,176		—		2,012,653		—		1,401,140
Restricted stock grants:
2015	—		—		—		106,670		—
2016	—		102,500		136,667		170,833		—
2017	90,005		—		150,008		—		210,011
Restricted stock units	20,761		—		70,625		—		211,878
Total	$	863,412	$	638,414	$	2,607,667	$	1,867,706	$	2,197,782

ClassBUnitGrantsvaluationassumptions [Table Text Block]

The underlying valuation assumptions and results for the Class B OP Unit awards were:

Grant dates	1/3/2017			1/4/2016
Stock price	$	14.79		$	12.88
Dividend yield	5.95		%	5.98		%
Expected volatility	26.4		%	26.10		%
Risk-free interest rate	2.91		%	2.81		%
Number of Units granted:
One year vesting period	198,184			176,835
Three year vesting period	88,208			89,096
	286,392			265,931
Calculated fair value per Unit	$	11.92		$	10.03
Total fair value of Units	$	3,413,793		$	2,667,288
Target market threshold increase	$	4,598,624		$	3,549,000

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

Restricted Stock Grants

The following annual grants of restricted stock were made to members of the Company's independent directors, as payment of the annual retainer fees. The restricted stock grants for the 2015 and 2016 service years vested (or are scheduled to vest) on a pro-rata basis over the four consecutive 90-day periods following the date of grant.

Service year	Shares	Fair value per share		Total compensation cost
2015	30,133	$	10.62	$	320,012
2016	30,990	$	13.23	$	409,998
2017	24,408	$	14.75	$	360,018

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Indebtedness (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The following table summarizes our mortgage notes payable at September 30, 2017:

Fixed rate mortgage debt:	Principal balances due			Weighted-average interest rate		Weighted average remaining life
Multifamily communities	$	744,771,383		3.69	%	7.6 years
New Market Properties	330,701,302			3.81	%	7.5 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	32,953,789			4.02	%	4.9 years
Total fixed rate mortgage debt	$	1,262,089,130		3.80	%	9.2 years
Variable rate mortgage debt:
Multifamily communities	$	234,369,810		3.24	%	4.0 years
New Market Properties	62,620,313			3.86	%	3.9 years
Preferred Office Properties	—			—		—
Student housing projects	37,485,000			3.23	%	4.4 years
Total variable rate mortgage debt	$	334,475,123		3.35	%	4.0 years
Total mortgage debt:
Multifamily communities	$	979,141,193		3.58	%	6.8 years
New Market Properties	393,321,615			3.82	%	6.9 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	70,438,789			3.60	%	4.7 years
Total principal amount	1,596,564,253			3.71	%	8.1 years
Deferred loan costs	(26,994,828		)
Mortgage notes payable, net	$	1,569,569,425

Mortgage Financing of Property Acquisitions

The Company partially financed the real estate properties acquired during the nine-month period ended September 30, 2017 with mortgage debt as shown in the following table:

Property	Date	Initial principal amount		Fixed/Variable rate	Rate / spread over 1 month LIBOR		Maturity date	Interest only through date
SoL	2/28/2017	$	37,485,000	Variable	200 BPS		3/1/2022	3/1/2022
Citrus Village	3/3/2017	30,250,000		Fixed	3.65	%	6/10/2023	6/9/2017
Retreat at Greystone	3/24/2017	35,210,000		Variable	185 BPS		3/1/2022	3/1/2022
Founders Village	3/31/2017	31,605,000		Fixed	4.31	%	4/1/2027	N/A
Claiborne Crossing	4/26/2017	28,179,500		Fixed	2.89	%	6/1/2054	N/A
Castleberry-Southard	4/21/2017	11,500,000		Fixed	3.99	%	5/1/2027	N/A
Rockbridge Village	6/6/2017	14,250,000		Fixed	3.73	%	7/5/2027	N/A
Luxe at Lakewood Ranch	7/26/2017	39,287,500		Fixed	3.93	%	8/1/2027	N/A
Irmo Station	7/26/2017	10,650,000		Fixed	3.94	%	8/1/2030	N/A
Maynard Crossing	8/25/2017	18,500,000		Fixed	3.74	%	9/1/2032	N/A
Woodmont Village	9/8/2017	8,775,000		Fixed	4.13	%	10/1/2027	N/A
West Town Market	9/22/2017	9,000,000		Fixed	3.65	%	10/1/2025	N/A
Adara Overland Park	9/27/2017	31,850,000		Fixed	3.90	%	4/1/2028	N/A
Aldridge at Town Village	9/29/2017	38,010,000		Variable	185 BPS		3/1/2022	(1	)
The Reserve at Summit Crossing	9/29/2017	20,075,000		Fixed	3.87	%	10/1/2024	N/A
		$	364,627,000
(1) The property is temporarily financed through a credit facility sponsored by the Federal Home Loan Mortgage Corporation; the Company intends to obtain permanent mortgage financing in the near future.

mortgage debt summary by segment [Table Text Block]

Fixed rate mortgage debt:	Principal balances due			Weighted-average interest rate		Weighted average remaining life
Multifamily communities	$	744,771,383		3.69	%	7.6 years
New Market Properties	330,701,302			3.81	%	7.5 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	32,953,789			4.02	%	4.9 years
Total fixed rate mortgage debt	$	1,262,089,130		3.80	%	9.2 years
Variable rate mortgage debt:
Multifamily communities	$	234,369,810		3.24	%	4.0 years
New Market Properties	62,620,313			3.86	%	3.9 years
Preferred Office Properties	—			—		—
Student housing projects	37,485,000			3.23	%	4.4 years
Total variable rate mortgage debt	$	334,475,123		3.35	%	4.0 years
Total mortgage debt:
Multifamily communities	$	979,141,193		3.58	%	6.8 years
New Market Properties	393,321,615			3.82	%	6.9 years
Preferred Office Properties	153,662,656			4.25	%	21.4 years
Student housing projects	70,438,789			3.60	%	4.7 years
Total principal amount	1,596,564,253			3.71	%	8.1 years
Deferred loan costs	(26,994,828		)
Mortgage notes payable, net	$	1,569,569,425

debt covenant [Table Text Block]

As of September 30, 2017, the Company was in compliance with all covenants related to the Revolving Line of Credit, as shown in the following table:

Covenant (1)	Requirement		Result
Net worth	Minimum $1,083,509,483	(2)	$1,170,151,180
Debt yield	Minimum 8.0%		9.18%
Payout ratio	Maximum 95.0%	(3)	92.8%
Total leverage ratio	Maximum 65.0%		60%
Debt service coverage ratio	Minimum 1.50x		2.04x

⁽¹⁾ All covenants are as defined in the credit agreement for the Revolving Line of Credit.

⁽²⁾ Minimum $687 million plus 75% of the net proceeds of any equity offering, which totaled approximately $1.1 billion as of September 30, 2017.

⁽³⁾Calculated on a trailing four-quarter basis. For the twelve-month period ended September 30, 2017, the maximum dividends and distributions allowed under this covenant was approximately $89.0 million.

mortgage interest [Table Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Multifamily communities	$	9,515,838	$	7,852,145	$	26,620,941	$	21,006,486
New Market Properties	3,858,588		2,615,924		10,699,043		5,588,947
Preferred Office Properties	1,676,933		133,681		5,030,560		133,681
Interest paid to real estate loan participants	569,141		482,246		1,825,470		1,341,104
Total	15,620,500		11,083,996		44,176,014		28,070,218
Credit Facility and Acquisition Facility	1,057,918		1,150,178		3,909,002		2,618,287
Interest Expense	$	16,678,418	$	12,234,174	$	48,085,016	$	30,688,505

Schedule of Maturities of Long-term Debt [Table Text Block]

Period	Future principal payments
2017	$	59,940,046	(1)
2018	45,147,144
2019	242,834,004
2020	64,621,789
2021	121,250,100
thereafter	1,116,771,170
Total	$	1,650,564,253
(1) Includes the principal amount due on the Company's Revolving Line of Credit of $43.0 million and Term Note of $11.0 million.

Schedule of Debt [Table Text Block]

Period	Future principal payments
2017	$	59,940,046	(1)
2018	45,147,144
2019	242,834,004
2020	64,621,789
2021	121,250,100
thereafter	1,116,771,170
Total	$	1,650,564,253
(1) Includes the principal amount due on the Company's Revolving Line of Credit of $43.0 million and Term Note of $11.0 million.

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Segment information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting Information [Line Items]

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Revenues
Rental revenues:
Multifamily communities	$	32,366,025	$	29,059,716	$	92,947,516	$	79,330,404
New Market Properties	11,051,695		7,767,052		30,967,411		16,718,701
Preferred Office Properties (1)	6,654,415		492,439		19,762,035		492,439
Total rental revenues	$	50,072,135	$	37,319,207	$	143,676,962	$	96,541,544
Other revenues:
Multifamily communities	$	3,624,000	$	3,195,237	$	10,173,457	$	8,611,136
New Market Properties	3,918,486		2,426,791		11,203,483		5,996,759
Preferred Office Properties	2,236,918		20,507		6,529,078		20,506
Total other revenues	9,779,404		5,642,535		27,906,018		14,628,401
Financing	15,048,660		10,575,595		40,769,467		29,957,117
Consolidated revenues	$	74,900,199	$	53,537,337	$	212,352,447	$	141,127,062
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia office building. As of September 30, 2017, the Company has deferred a total of $23.8 million of such improvements. The remaining balance to be recognized is approximately $23.4 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2017. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded noncash revenue of approximately $287,000 and $457,000 for the three-month and nine-month periods ended September 30, 2017.

Segment Reporting Disclosure [Text Block]

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property operating and maintenance expense
Multifamily communities	$	5,566,320	$	4,552,744	$	14,602,003	$	11,757,778
New Market Properties	1,260,108		904,877		4,037,922		2,078,128
Preferred Office Properties	1,074,325		47,227		2,997,626		47,227
Total	$	7,900,753	$	5,504,848	$	21,637,551	$	13,883,133

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Salary and benefits reimbursement
Multifamily communities	$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403
New Market Properties	—		—		—		—
Preferred Office Properties	202,787		18,067		654,756		18,067
Total	$	3,402,623	$	2,808,402	$	9,649,843	$	7,688,470

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property management fees
Multifamily communities	$	1,412,908	$	1,366,159	$	4,154,123	$	3,542,237
New Market Properties	459,884		332,869		1,381,404		741,221
Preferred Office Properties	180,654		25,383		480,476		25,383
Total	$	2,053,446	$	1,724,411	$	6,016,003	$	4,308,841

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate taxes
Multifamily communities	$	4,808,502	$	3,792,370	$	14,872,841	$	13,034,764
New Market Properties	2,034,030		950,444		5,889,820		2,376,099
Preferred Office Properties	863,174		46,271		2,527,123		46,271
Total	$	7,705,706	$	4,789,085	$	23,289,784	$	15,457,134

Segment Information

The Company's Chief Operating Decision Maker, or CODM, evaluates the performance of the Company's business operations and allocates financial and other resources by assessing the financial results and outlook for future performance across four distinct segments: multifamily communities, real estate related financing, New Market Properties and Preferred Office Properties.

Multifamily Communities - consists of the Company's portfolio of owned residential multifamily communities and student housing properties.

Financing - consists of the Company's portfolio of real estate loans, bridge loans, and other instruments deployed by the Company to partially finance the development, construction, and prestabilization carrying costs of new multifamily communities and other real estate and real estate related assets. Excluded from the financing segment are financial results of the Company's Dawson Marketplace grocery-anchored shopping center real estate loan.

New Market Properties - consists of the Company's portfolio of grocery-anchored shopping centers, which are owned by New Market Properties, LLC, a wholly-owned subsidiary of the Company, as well as the financial results from the Company's grocery-anchored shopping center real estate loans.

Preferred Office Properties - consists of the Company's portfolio of office buildings.

The CODM monitors net operating income (“NOI”) on a segment and a consolidated basis as a key performance measure for its operating segments. NOI is defined as rental and other property revenue from real estate assets plus interest income from its loan portfolio less total property operating and maintenance expenses, property management fees, real estate taxes, property insurance, and general and administrative expenses. The CODM uses NOI as a measure of operating performance because it provides a measure of the core operations, rather than factoring in depreciation and amortization, financing costs, acquisition expenses, and other expenses generally incurred at the corporate level.  

The following tables present the Company's assets, revenues, and NOI results by reportable segment, as well as a reconciliation from NOI to net income (loss). The assets attributable to 'Other' primarily consist of  deferred offering costs recorded but not yet reclassified as reductions of stockholders' equity and cash balances at the Company and Operating Partnership levels.

	September 30, 2017		December 31, 2016
Assets:
Multifamily communities	$	1,452,181,360	$	1,166,766,664
Financing	465,505,478		379,070,918
New Market Properties	683,712,963		579,738,707
Preferred Office Properties	309,351,565		285,229,700
Other	16,967,902		10,026,613
Consolidated assets	$	2,927,719,268	$	2,420,832,602

Total capitalized expenditures (inclusive of additions to construction in progress, but exclusive of the purchase price of acquisitions) for the three months and nine months ended September 30, 2017 and 2016 were as follows:

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Capitalized expenditures:
Multifamily communities	$	2,897,758	$	2,674,743	$	9,006,194	$	6,762,650
New Market Properties	1,225,189		565,010		2,763,764		1,679,766
Total	$	4,122,947	$	3,239,753	$	11,769,958	$	8,442,416

The Company also recognized second-generation capital expenditures within its office building portfolio of $25,883 for Brookwood Center and $78,593 for Galleria 75 during the third quarter 2017. Second-generation capital expenditures exclude those expenditures made in our office building portfolio (i) to lease space to "first generation" tenants (i.e. leasing capital for existing vacancies and known move-outs at the time of acquisition), (ii) to bring recently acquired properties up to our Class A ownership standards (and which amounts were underwritten into the total investment at the time of acquisition), (iii) for property re-developments and repositionings and (iv) for building improvements that are recoverable from future operating cost savings.

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Revenues
Rental revenues:
Multifamily communities	$	32,366,025	$	29,059,716	$	92,947,516	$	79,330,404
New Market Properties	11,051,695		7,767,052		30,967,411		16,718,701
Preferred Office Properties (1)	6,654,415		492,439		19,762,035		492,439
Total rental revenues	$	50,072,135	$	37,319,207	$	143,676,962	$	96,541,544
Other revenues:
Multifamily communities	$	3,624,000	$	3,195,237	$	10,173,457	$	8,611,136
New Market Properties	3,918,486		2,426,791		11,203,483		5,996,759
Preferred Office Properties	2,236,918		20,507		6,529,078		20,506
Total other revenues	9,779,404		5,642,535		27,906,018		14,628,401
Financing	15,048,660		10,575,595		40,769,467		29,957,117
Consolidated revenues	$	74,900,199	$	53,537,337	$	212,352,447	$	141,127,062
(1) Included in rental revenues for our Preferred Office Properties segment is the amortization of deferred revenue for tenant-funded leasehold improvements from a major tenant in our Three Ravinia office building. As of September 30, 2017, the Company has deferred a total of $23.8 million of such improvements. The remaining balance to be recognized is approximately $23.4 million which is included in the deferred revenues line on the consolidated balance sheets at September 30, 2017. These total costs will be amortized over the lesser of the useful lives of the improvements or the individual lease terms. The Company recorded noncash revenue of approximately $287,000 and $457,000 for the three-month and nine-month periods ended September 30, 2017.

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property operating and maintenance expense
Multifamily communities	$	5,566,320	$	4,552,744	$	14,602,003	$	11,757,778
New Market Properties	1,260,108		904,877		4,037,922		2,078,128
Preferred Office Properties	1,074,325		47,227		2,997,626		47,227
Total	$	7,900,753	$	5,504,848	$	21,637,551	$	13,883,133

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Salary and benefits reimbursement
Multifamily communities	$	3,199,836	$	2,790,335	$	8,995,087	$	7,670,403
New Market Properties	—		—		—		—
Preferred Office Properties	202,787		18,067		654,756		18,067
Total	$	3,402,623	$	2,808,402	$	9,649,843	$	7,688,470

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Property management fees
Multifamily communities	$	1,412,908	$	1,366,159	$	4,154,123	$	3,542,237
New Market Properties	459,884		332,869		1,381,404		741,221
Preferred Office Properties	180,654		25,383		480,476		25,383
Total	$	2,053,446	$	1,724,411	$	6,016,003	$	4,308,841

	Three months ended September 30,				Nine months ended September 30,
	2017		2016		2017		2016
Real estate taxes
Multifamily communities	$	4,808,502	$	3,792,370	$	14,872,841	$	13,034,764
New Market Properties	2,034,030		950,444		5,889,820		2,376,099
Preferred Office Properties	863,174		46,271		2,527,123		46,271
Total	$	7,705,706	$	4,789,085	$	23,289,784	$	15,457,134

	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
Segment net operating income (Segment NOI)
Multifamily communities	$	19,410,732	$	18,413,797		$	55,995,891		$	48,169,241
Financing	15,048,659		10,575,595			40,769,467			29,957,116
New Market Properties	10,928,364		7,795,476			29,990,860			17,048,716
Preferred Office Properties	6,211,853		373,454			18,715,713			373,454
Consolidated segment net operating income	51,599,608		37,158,322			145,471,931			95,548,527
Interest and loss on early debt extinguishment:
Multifamily communities	9,515,838		7,852,145			26,620,941			21,006,486
New Market Properties	3,858,588		2,615,924			10,699,043			5,588,947
Preferred Office Properties	1,676,934		133,681			5,030,560			133,681
Financing	1,627,058		1,632,424			5,734,472			3,959,391
Depreciation and amortization:
Multifamily communities	18,018,869		16,028,880			50,850,768			42,800,401
New Market Properties	7,611,979		5,452,490			21,714,453			11,997,670
Preferred Office Properties	3,272,922		182,993			9,621,739			182,993
Professional fees	525,539		593,623			1,551,192			2,176,510
Management fees, net of forfeitures	4,491,662		3,022,124			13,522,653			8,025,916
Acquisition costs:
Multifamily communities	—		601,033			(20,559		)	4,645,530
New Market Properties	—		396,679			25,402			1,856,933
Preferred Office Properties	—		359,825			9,159			383,401
Equity compensation to directors and executives	863,412		638,414			2,607,667			1,867,706
Gain on sale of real estate	—		—			37,635,014			4,271,506
Loss on extinguishment of debt	—		—			(888,428		)	—
Other	94,028		336,707			842,566			1,055,099
Net income (loss)	$	42,779	$	(2,688,620	)	$	33,408,461		$	(5,860,631	)

segment assets [Table Text Block]

	September 30, 2017		December 31, 2016
Assets:
Multifamily communities	$	1,452,181,360	$	1,166,766,664
Financing	465,505,478		379,070,918
New Market Properties	683,712,963		579,738,707
Preferred Office Properties	309,351,565		285,229,700
Other	16,967,902		10,026,613
Consolidated assets	$	2,927,719,268	$	2,420,832,602

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
Segment net operating income (Segment NOI)
Multifamily communities	$	19,410,732	$	18,413,797		$	55,995,891		$	48,169,241
Financing	15,048,659		10,575,595			40,769,467			29,957,116
New Market Properties	10,928,364		7,795,476			29,990,860			17,048,716
Preferred Office Properties	6,211,853		373,454			18,715,713			373,454
Consolidated segment net operating income	51,599,608		37,158,322			145,471,931			95,548,527
Interest and loss on early debt extinguishment:
Multifamily communities	9,515,838		7,852,145			26,620,941			21,006,486
New Market Properties	3,858,588		2,615,924			10,699,043			5,588,947
Preferred Office Properties	1,676,934		133,681			5,030,560			133,681
Financing	1,627,058		1,632,424			5,734,472			3,959,391
Depreciation and amortization:
Multifamily communities	18,018,869		16,028,880			50,850,768			42,800,401
New Market Properties	7,611,979		5,452,490			21,714,453			11,997,670
Preferred Office Properties	3,272,922		182,993			9,621,739			182,993
Professional fees	525,539		593,623			1,551,192			2,176,510
Management fees, net of forfeitures	4,491,662		3,022,124			13,522,653			8,025,916
Acquisition costs:
Multifamily communities	—		601,033			(20,559		)	4,645,530
New Market Properties	—		396,679			25,402			1,856,933
Preferred Office Properties	—		359,825			9,159			383,401
Equity compensation to directors and executives	863,412		638,414			2,607,667			1,867,706
Gain on sale of real estate	—		—			37,635,014			4,271,506
Loss on extinguishment of debt	—		—			(888,428		)	—
Other	94,028		336,707			842,566			1,055,099
Net income (loss)	$	42,779	$	(2,688,620	)	$	33,408,461		$	(5,860,631	)

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Loss per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

earnings loss per share [Table Text Block]

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Numerator:
	Net income (loss) before gain on sale of real estate	$	42,779		$	(2,688,620	)	$	(4,226,553	)	$	(10,132,137	)
	Gain on sale of real estate, net of disposition expenses	—			—			37,635,014			4,271,506
	Net income (loss)	42,779			(2,688,620		)	33,408,461			(5,860,631		)
	Consolidated net (income) loss attributable to non-controlling	(1,119		)	86,484			(1,097,008		)	175,045
	interests (A)
	Net income (loss) attributable to the Company	41,660			(2,602,136		)	32,311,453			(5,685,586		)
	Dividends declared to preferred stockholders (B)	(16,420,996		)	(11,015,706		)	(46,042,181		)	(28,341,723		)
	Earnings attributable to unvested restricted stock (C)	(4,302		)	(6,159		)	(11,743		)	(12,434		)
	Net income (loss) attributable to common stockholders	$	(16,383,638	)	$	(13,624,001	)	$	(13,742,471	)	$	(34,039,743	)
Denominator:
	Weighted average number of shares of Common Stock - basic	33,539,920			24,340,791			30,147,497			23,552,951
	Effect of dilutive securities: (D)	—			—			—			—
	Weighted average number of shares of Common Stock,
	basic and diluted	33,539,920			24,340,791			30,147,497			23,552,951
	Net loss per share of Common Stock attributable to
	common stockholders, basic and diluted	$	(0.49	)	$	(0.56	)	$	(0.46	)	$	(1.45	)

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Pro Forma Financial Information pro forma (Tables)

9 Months Ended

Sep. 30, 2017

Pro Forma Financial Information [Abstract]

segment operating results [Table Text Block]

		Three months ended September 30,						Nine months ended September 30,
		2017			2016			2017			2016
Pro forma:
	Revenues	$	74,970,784		$	63,754,083		$	212,542,233		$	189,494,650
	Net income (loss)	$	996,408		$	(255,917	)	$	38,270,000		$	(5,957,523	)
	Net income (loss) attributable to the Company	$	958,120		$	(240,446	)	$	37,029,878		$	(5,799,045	)
	Net income (loss) attributable to common stockholders	$	(15,467,178	)	$	(11,262,311	)	$	(9,024,046	)	$	(34,205,524	)
	Net income (loss) per share of Common Stock
	attributable to common stockholders,
	Basic and diluted	$	(0.46	)	$	(0.46	)	$	(0.30	)	$	(1.45	)
	Weighted average number of shares of Common Stock
	outstanding, basic and diluted	33,539,920			24,340,791			30,147,497			23,522,951

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Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Fair Values of Financial Instruments [Abstract]

Fair Value Measurements, Nonrecurring [Table Text Block]

	As of September 30, 2017
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	409,204,915	$	455,909,983	$	—	$	—	$	455,909,983
Notes receivable and line of credit receivable	42,351,496		42,351,496		—		—		42,351,496
	$	451,556,411	$	498,261,479	$	—	$	—	$	498,261,479
Financial Liabilities:
Mortgage notes payable	$	1,596,564,253	$	1,595,108,853	$	—	$	—	$	1,595,108,853
Revolving credit facility	43,000,000		43,000,000		—		—		43,000,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	17,877,914		18,218,715		—		—		18,218,715
	$	1,668,442,167	$	1,667,327,568	$	—	$	—	$	1,667,327,568

	As of December 31, 2016
	Carrying value				Fair value measurements using fair value hierarchy
			Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Real estate loans (1)	$	332,761,068	$	374,856,749	$	—	$	—	$	374,856,749
Notes receivable and line of credit receivable	37,615,675		37,615,675		—		—		37,615,675
	$	370,376,743	$	412,472,424	$	—	$	—	$	412,472,424
Financial Liabilities:
Mortgage notes payable (2)	$	1,327,878,112	1,314,966,652		$	—	$	—	$	1,314,966,652
Revolving credit facility	127,500,000		127,500,000		—		—		127,500,000
Term loan	11,000,000		11,000,000		—		—		11,000,000
Loan participation obligations	20,761,819		21,500,448		—		—		21,500,448
	$	1,487,139,931	$	1,474,967,100	$	—	$	—	$	1,474,967,100

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Organization (Details)	Sep. 30, 2017 $ / shares shares	Dec. 31, 2016 $ / shares shares	Sep. 30, 2016 shares	Jun. 30, 2016 shares	Mar. 15, 2016 shares
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares	$ 0.01
Common Stock, Shares, Outstanding	35,597,744		24,652,041	23,568,328	23,041,502
Noncontrolling Interest, Ownership Percentage by Parent	97.50%
minority interest partnership units outstanding	901,195		886,168
daycountvolweightedavgcalcformarketvalue	20
Common Stock [Member]
Class of Stock [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	35,597,744	26,498,192

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Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2017 USD ($)
Real Estate Properties [Line Items]
contingent fees	$ 390,000
stabilization level	93.00%

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Real Estate Assets - Narrative (Details)			3 Months Ended		9 Months Ended
	May 25, 2017 USD ($)	Mar. 07, 2017 USD ($)	Sep. 30, 2017 USD ($) ft²	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) ft²	Sep. 30, 2016 USD ($)	Sep. 30, 2017	Dec. 31, 2016 ft²
Business Acquisition
Number of units in real estate property			2,334		2,334		9,086	8,049
Area of Real Estate Property | ft²			3,854,196		3,854,196			3,295,491
Revenues			$ 74,900,199	$ 53,537,337	$ 212,352,447	$ 141,127,062
Net Income contributed to consolidated results			42,779	(2,688,620)	33,408,461	(5,860,631)
Gains (Losses) on Sales of Investment Real Estate			0	0	37,635,014	4,271,506
Income (Loss) before Gain (Loss) on Sale of Properties			42,779	$ (2,688,620)	(4,226,553)	(10,132,137)
Retail Site [Member]
Business Acquisition
Number of Real Estate Properties							37	31
Sunbelt Portfolio [Member]
Business Acquisition
Revenues			3,278,000		9,837,000
Net Income contributed to consolidated results			$ (248,000)		(1,227,000)
Business Combination, Consideration Transferred					158,022,449
Sandstone Creek Apartments
Business Acquisition
Number of units in real estate property							364
Net assets acquired					48,100,000
Gains (Losses) on Sales of Investment Real Estate					300,000
Income (Loss) before Gain (Loss) on Sale of Properties					1,200,000	(900,000)
Ashford Park
Business Acquisition
Number of units in real estate property							0
Net assets acquired		$ 65,500,000
Gains (Losses) on Sales of Investment Real Estate					30,400,000
Income (Loss) before Gain (Loss) on Sale of Properties					$ 2,300,000	$ 600,000
Enclave
Business Acquisition
Net assets acquired	$ 44,000,000

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Real Estate Assets - Table of Properties Acquired (Details)	9 Months Ended
	Sep. 30, 2017 USD ($) ft²	Sep. 30, 2016	Sep. 30, 2017 bed	Sep. 30, 2017	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($) ft²
Business Acquisition
Number of units in real estate property	2,334			9,086		8,049
Area of Real Estate Property | ft²	3,854,196					3,295,491
Net Rentable Area | ft²	558,137
Restricted Cash and Cash Equivalents					$ 50,645,432	$ 55,392,984
Noncash or Part Noncash Acquisition, Debt Assumed	$ 73,000,000
Castleberry [Domain]
Business Acquisition
Land					3,023,731
Buildings and improvements					13,471,240
Business Combination, Consideration Transferred	17,567,893
Cash paid	2,306,703
business combination purchase price	$ 17,600,000
Net Rentable Area | ft²	80,018
Finite-Lived Intangible Assets, Remaining Amortization Period	9 years 9 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 3,761,190
SoL [Member]
Business Acquisition
Number of beds, student housing | bed			640
Land					7,440,934
Buildings and improvements					40,058,727
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					3,771,432
Finite-lived Intangible Assets Acquired	2,344,404
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					71,856
Other liabilities					(377,735)
Business Combination, Consideration Transferred	53,973,951
Cash paid	$ 16,488,951
Number of units in real estate property | ft²	225
business combination purchase price	$ 53,300,000
Mortgage debt	$ 37,485,000
Finite-Lived Intangible Assets, Remaining Amortization Period	0 years
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
citrus village [Member]
Business Acquisition
Land					4,809,113
Buildings and improvements					34,180,983
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					6,299,645
Finite-lived Intangible Assets Acquired	1,624,752
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					893,385
business combinations, escrow fund asset recognized					67,876
business combinations, accrued property tax liability					108,286
Other liabilities					(24,887)
Business Combination, Consideration Transferred	48,487,551
Cash paid	$ 18,237,551
Number of units in real estate property | ft²	296
business combination purchase price	$ 47,400,000
Mortgage debt	$ 30,250,000
Finite-Lived Intangible Assets, Remaining Amortization Period	38 years 5 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
Rockbridge Village [Member]
Business Acquisition
Land					3,141,325
Buildings and improvements					15,666,091
Business Combination, Consideration Transferred	20,281,677
Cash paid	6,031,677
business combination purchase price	$ 20,300,000
Net Rentable Area | ft²	102,432
Finite-Lived Intangible Assets, Remaining Amortization Period	7 years 8 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
irmo station [Domain]
Business Acquisition
Land					3,602,466
Buildings and improvements					11,555,942
Business Combination, Consideration Transferred	16,310,537
Cash paid	5,660,537
business combination purchase price	$ 16,000,000
Net Rentable Area | ft²	99,384
Finite-Lived Intangible Assets, Remaining Amortization Period	2 years 11 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
maynard crossing [Domain]
Business Acquisition
Land					6,303,787
Buildings and improvements					21,773,900
Business Combination, Consideration Transferred	30,449,561
Cash paid	11,949,561
business combination purchase price	$ 29,900,000
Net Rentable Area | ft²	122,781
Finite-Lived Intangible Assets, Remaining Amortization Period	5 years 1 month
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
woodmont Village [Domain]
Business Acquisition
Land					2,712,907
Buildings and improvements					9,836,799
Business Combination, Consideration Transferred	13,274,369
Cash paid	4,499,369
business combination purchase price	$ 13,500,000
Net Rentable Area | ft²	85,639
Finite-Lived Intangible Assets, Remaining Amortization Period	7 years 11 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
Sunbelt Portfolio [Member]
Business Acquisition
Land					36,198,658
Buildings and improvements					109,504,038
Business Combination, Consideration Transferred	158,022,449
Cash paid	$ 60,368,449
Finite-Lived Intangible Assets, Remaining Amortization Period		9 years
Lenox Portfolio [Member]
Business Acquisition
Net Rentable Area | ft²	47,600
Finite-Lived Intangible Assets, Remaining Amortization Period	24 months 13 days
retreat at greystone [Member]
Business Acquisition
Land					4,077,262
Buildings and improvements					35,336,277
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					9,125,302
Finite-lived Intangible Assets Acquired	$ 1,844,476
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					101,503
business combinations, accrued property tax liability					139,046
Other liabilities					(108,573)
Business Combination, Consideration Transferred	51,108,885
Cash paid	$ 1,660,888
Number of units in real estate property | ft²	312
business combination purchase price	$ 50,000,000
Mortgage debt	$ 35,210,000
Finite-Lived Intangible Assets, Remaining Amortization Period	5 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 14,237,997
founders village [Member]
Business Acquisition
Land					5,314,862
Buildings and improvements					32,853,763
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					5,907,345
Finite-lived Intangible Assets Acquired	1,421,197
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					0
Other liabilities					(103,204)
Business Combination, Consideration Transferred	46,332,382
Cash paid	$ 1,438,320
Number of units in real estate property | ft²	247
business combination purchase price	$ 44,400,000
Mortgage debt	$ 31,605,000
Finite-Lived Intangible Assets, Remaining Amortization Period	5 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 13,289,062
claiborne crossing [Domain]
Business Acquisition
Land					2,147,217
Buildings and improvements					30,551,646
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					7,027,257
Finite-lived Intangible Assets Acquired	1,268,810
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					4,447,751
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					115,728
Other liabilities					(130,850)
Business Combination, Consideration Transferred	46,316,831
Cash paid	$ 19,242,604
Number of units in real estate property | ft²	242
business combination purchase price	$ 45,200,000
Mortgage debt	$ 27,074,227
Finite-Lived Intangible Assets, Remaining Amortization Period	126 years 1 month
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
lakewood ranch [Member]
Business Acquisition
Land					4,851,844
Buildings and improvements					43,694,577
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					7,338,151
Finite-lived Intangible Assets Acquired	1,014,150
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					404,690
Other liabilities					(57,933)
Business Combination, Consideration Transferred	57,823,228
Cash paid	$ 18,535,728
Number of units in real estate property | ft²	280
business combination purchase price	$ 56,100,000
Mortgage debt	$ 39,287,500
Finite-Lived Intangible Assets, Remaining Amortization Period	6 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
adara [Member]
Business Acquisition
Land					2,854,466
Buildings and improvements					31,005,403
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					11,024,144
Finite-lived Intangible Assets Acquired	1,279,589
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					308,299
Other liabilities					(31,941)
Business Combination, Consideration Transferred	46,428,335
Cash paid	$ 14,578,335
Number of units in real estate property | ft²	260
business combination purchase price	$ 45,500,000
Mortgage debt	$ 31,850,000
Finite-Lived Intangible Assets, Remaining Amortization Period	9 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
Aldridge at Town Village [Member]
Business Acquisition
Land					7,122,413
Buildings and improvements					34,683,056
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					10,735,231
Finite-lived Intangible Assets Acquired	2,270,915
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					0
Other liabilities					(143,024)
Business Combination, Consideration Transferred	55,448,536
Cash paid	$ 5,185,142
Number of units in real estate property | ft²	300
business combination purchase price	$ 54,200,000
Mortgage debt	$ 38,010,000
Finite-Lived Intangible Assets, Remaining Amortization Period	13 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
Summit III [Domain]
Business Acquisition
Land					4,374,721
Buildings and improvements					20,968,236
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					4,970,893
Finite-lived Intangible Assets Acquired	925,176
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other					0
business combinations, escrow fund asset recognized					0
business combinations, accrued property tax liability					0
Other liabilities					(43,246)
Business Combination, Consideration Transferred	31,580,000
Cash paid	$ 3,333,770
Number of units in real estate property | ft²	172
business combination purchase price	$ 30,900,000
Mortgage debt	$ 20,075,000
Finite-Lived Intangible Assets, Remaining Amortization Period	11 years 6 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0
west town [Domain]
Business Acquisition
Land					1,936,572
Buildings and improvements					$ 12,092,823
Business Combination, Consideration Transferred	14,521,302
Cash paid	5,521,302
business combination purchase price	$ 14,300,000
Net Rentable Area | ft²	67,883
Finite-Lived Intangible Assets, Remaining Amortization Period	8 years 7 months
Payments for (Proceeds from) Delayed Tax Exempt Exchange	$ 0

XML

Real Estate Assets - Purchase Price Allocation (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Business Acquisition
Land	$ 345,110,008		$ 345,110,008		$ 299,547,501
Less: accumulated depreciation	(147,799,077)		(147,799,077)		(103,814,894)
Building and improvements	1,802,229,802		1,802,229,802		1,513,293,760
Furniture, fixtures, and equipment	183,879,719		183,879,719		126,357,742
Construction in progress	11,946,666		11,946,666		2,645,634
Real Estate Investment Property, at Cost	2,388,374,976		2,388,374,976		1,965,486,998
Tenant Improvements	45,208,781		45,208,781		$ 23,642,361
Revenues	74,900,199	$ 53,537,337	212,352,447	$ 141,127,062
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	42,779	(2,688,620)	$ 33,408,461	(5,860,631)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			26,900
acquisition fees paid to related party for woodstock	0	313,398	$ 0	$ 491,409
Castleberry [Domain]
Business Acquisition
Land	2,271,224		2,271,224
Buildings and improvements	11,872,222		11,872,222
Mortgage debt			6,278,229
Payments for (Proceeds from) Delayed Tax Exempt Exchange	0		0
Business Combination, Consideration Transferred			15,528,229
Revenues	331,000		1,026,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(36,000)		(87,000)
Finite-Lived Intangible Assets, Remaining Amortization Period				7 years 11 months
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	402,973		402,973
Finite-Lived Intangible Asset, Acquired-in-Place Leases	847,939		847,939
above market lease intangibles	100,216		100,216
Other Finite-Lived Intangible Assets, Gross	253,640		253,640
Off-market Lease, Unfavorable	(198,214)		(198,214)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	157,775		157,775
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(179,546)		(179,546)
business combination debt financing			9,250,000
Business Acquisition, Transaction Costs	111,000		111,000
Southeastern Six Pack [Member]
Business Acquisition
Land	14,081,647		14,081,647
Buildings and improvements	48,598,731		48,598,731
Mortgage debt			43,751,867
Payments for (Proceeds from) Delayed Tax Exempt Exchange	0		0
Business Combination, Consideration Transferred			68,751,867
Revenues	1,604,000		4,759,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(52,000)		(229,000)
Finite-Lived Intangible Assets, Remaining Amortization Period				3 years 11 months
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	993,530		993,530
Finite-Lived Intangible Asset, Acquired-in-Place Leases	4,906,398		4,906,398
above market lease intangibles	86,234		86,234
Other Finite-Lived Intangible Assets, Gross	992,143		992,143
Off-market Lease, Unfavorable	(1,069,877)		(1,069,877)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	600,069		600,069
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(437,008)		(437,008)
business combination debt financing			25,000,000
Business Acquisition, Transaction Costs	633,000		633,000
wade green [Member]
Business Acquisition
Land	1,840,284		1,840,284
Buildings and improvements	8,159,147		8,159,147
Mortgage debt			6,245,683
Payments for (Proceeds from) Delayed Tax Exempt Exchange	0	5,072,659	0	$ 5,072,659
Business Combination, Consideration Transferred			11,318,342
Revenues	260,000		781,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(79,000)		(259,000)
Finite-Lived Intangible Assets, Remaining Amortization Period				1 year 8 months
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	251,250		251,250
Finite-Lived Intangible Asset, Acquired-in-Place Leases	841,785		841,785
above market lease intangibles	107,074		107,074
Other Finite-Lived Intangible Assets, Gross	167,541		167,541
Off-market Lease, Unfavorable	0		0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	10,525		10,525
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(59,264)		(59,264)
business combination debt financing			0
Business Acquisition, Transaction Costs	297,000		297,000
lakeland plaza [Member]
Business Acquisition
Land	7,079,408		7,079,408
Buildings and improvements	32,258,335		32,258,335
Mortgage debt			14,773,273
Payments for (Proceeds from) Delayed Tax Exempt Exchange	0		0
Business Combination, Consideration Transferred			44,773,273
Revenues	933,000		2,822,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(100,000)		(346,000)
Finite-Lived Intangible Assets, Remaining Amortization Period				6 years 11 months
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	828,966		828,966
Finite-Lived Intangible Asset, Acquired-in-Place Leases	2,947,175		2,947,175
above market lease intangibles	1,349,624		1,349,624
Other Finite-Lived Intangible Assets, Gross	1,287,825		1,287,825
Off-market Lease, Unfavorable	(797,729)		(797,729)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	0		0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(180,331)		(180,331)
business combination debt financing			30,000,000
Business Acquisition, Transaction Costs	255,000		255,000
Rockbridge Village [Member]
Business Acquisition
Land	3,141,325		3,141,325
Buildings and improvements	15,666,091		15,666,091
Mortgage debt			6,031,677
Business Combination, Consideration Transferred			20,281,677
Revenues	408,000		518,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(43,000)		$ (35,000)
Finite-Lived Intangible Assets, Remaining Amortization Period			7 years 8 months
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	278,340		$ 278,340
Finite-Lived Intangible Asset, Acquired-in-Place Leases	1,249,694		1,249,694
above market lease intangibles	59,267		59,267
Other Finite-Lived Intangible Assets, Gross	301,761		301,761
Off-market Lease, Unfavorable	(332,725)		(332,725)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	7,136		7,136
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(89,212)		(89,212)
business combination debt financing			14,250,000
Business Acquisition, Transaction Costs	131,000		131,000
SoL [Member]
Business Acquisition
Land	7,440,934		7,440,934
Buildings and improvements	40,058,727		40,058,727
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	808,045		808,045
Mortgage debt			16,488,951
non cash mezzanine loan settled			0
Mortgage debt			37,485,000
business combinations, accrued property tax liability	(71,856)		(71,856)
Business Combination, Consideration Transferred			53,973,951
Revenues	1,412,000		3,305,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(1,213,000)		(3,108,000)
Other liabilities	(377,735)		(377,735)
capitalized acquisition costs asset acquisition			290,000
acquisition fees paid to related party for woodstock			$ 60,000
Finite-Lived Intangible Assets, Remaining Amortization Period			0 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3,771,432		$ 3,771,432
Amortization			2,344,404
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
founders village [Member]
Business Acquisition
Land	5,314,862		5,314,862
Buildings and improvements	32,853,763		32,853,763
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	938,419		938,419
Mortgage debt			1,438,320
non cash mezzanine loan settled			0
Mortgage debt			31,605,000
business combinations, accrued property tax liability	0		0
Business Combination, Consideration Transferred			46,332,382
Revenues	1,029,000		2,032,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(508,000)		(1,213,000)
Other liabilities	(103,204)		(103,204)
capitalized acquisition costs asset acquisition			1,103,000
acquisition fees paid to related party for woodstock			$ 8,000
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	5,907,345		$ 5,907,345
Amortization			1,421,197
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
claiborne crossing [Domain]
Business Acquisition
Land	2,147,217		2,147,217
Buildings and improvements	30,551,646		30,551,646
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	1,120,728		1,120,728
Mortgage debt			19,242,604
non cash mezzanine loan settled			0
Mortgage debt			27,074,227
business combinations, accrued property tax liability	(115,728)		(115,728)
Business Combination, Consideration Transferred			46,316,831
Revenues	1,035,000		1,767,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(836,000)		(1,663,000)
Other liabilities	(130,850)		(130,850)
capitalized acquisition costs asset acquisition			293,000
acquisition fees paid to related party for woodstock			$ 22,000
Finite-Lived Intangible Assets, Remaining Amortization Period			126 years 1 month
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	7,027,257		$ 7,027,257
Amortization			1,268,810
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	4,447,751		4,447,751
business combinations, escrow fund asset recognized	0		0
Summit III [Domain]
Business Acquisition
Land	4,374,721		4,374,721
Buildings and improvements	20,968,236		20,968,236
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	384,220		384,220
Mortgage debt			3,333,770
non cash mezzanine loan settled			8,171,230
Mortgage debt			20,075,000
business combinations, accrued property tax liability	0		0
Business Combination, Consideration Transferred			31,580,000
Revenues	0		0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(105,000)		(105,000)
Other liabilities	(43,246)		(43,246)
capitalized acquisition costs asset acquisition			354,000
acquisition fees paid to related party for woodstock			$ 309,000
Finite-Lived Intangible Assets, Remaining Amortization Period			11 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	4,970,893		$ 4,970,893
Amortization			925,176
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
citrus village [Member]
Business Acquisition
Land	4,809,113		4,809,113
Buildings and improvements	34,180,983		34,180,983
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	744,970		744,970
Mortgage debt			18,237,551
non cash mezzanine loan settled			0
Mortgage debt			30,250,000
business combinations, accrued property tax liability	(108,286)		(108,286)
Business Combination, Consideration Transferred			48,487,551
Revenues	1,168,000		2,628,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(621,000)		(1,414,000)
Other liabilities	(24,887)		(24,887)
capitalized acquisition costs asset acquisition			458,000
acquisition fees paid to related party for woodstock			$ 24,000
Finite-Lived Intangible Assets, Remaining Amortization Period			38 years 5 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	6,299,645		$ 6,299,645
Amortization			1,624,752
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	893,385		893,385
business combinations, escrow fund asset recognized	67,876		67,876
citrus village [Member]
Business Acquisition
Land		8,281,054		$ 8,281,054
Buildings and improvements		34,355,922		34,355,922
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		1,026,419		1,026,419
Mortgage debt		12,831,872
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		33,853,275
business combinations, accrued property tax liability		(159,462)		(159,462)
Business Combination, Consideration Transferred		46,685,147
Revenues	1,551,000		4,486,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(37,000)		(166,000)
capitalized acquisition costs asset acquisition				40,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		2,623,916		2,623,916
Amortization		799,109
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		79,626		79,626
business combinations, escrow fund asset recognized		(321,437)		(321,437)
Avalon Park [Member]
Business Acquisition
Land		7,410,048		7,410,048
Buildings and improvements		80,558,636		80,558,636
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		3,477,157		3,477,157
Mortgage debt		30,474,100
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		65,000,000
business combinations, accrued property tax liability		(207,623)		(207,623)
Business Combination, Consideration Transferred		95,474,100
Revenues	2,044,000		6,059,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(573,000)		(2,853,000)
capitalized acquisition costs asset acquisition				1,314,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		1,790,256		1,790,256
Amortization		2,741,060
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		99,297		99,297
business combinations, escrow fund asset recognized		(394,731)		(394,731)
overton rise [Member]
Business Acquisition
Land		8,511,370		8,511,370
Buildings and improvements		44,710,034		44,710,034
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		354,640		354,640
Mortgage debt		20,090,582
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		41,300,000
business combinations, accrued property tax liability		(90,213)		(90,213)
Business Combination, Consideration Transferred		61,390,582
Revenues	1,309,000		3,888,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(144,000)		(411,000)
capitalized acquisition costs asset acquisition				116,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		6,286,105		6,286,105
Amortization		1,611,314
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		73,754		73,754
business combinations, escrow fund asset recognized		(66,422)		(66,422)
baldwin park [Member]
Business Acquisition
Land		17,402,882		17,402,882
Buildings and improvements		87,105,757		87,105,757
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		2,555,753		2,555,753
Mortgage debt		35,492,144
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		77,800,000
business combinations, accrued property tax liability		(226,160)		(226,160)
Business Combination, Consideration Transferred		113,292,144
Revenues	2,421,000		7,135,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(645,000)		(1,915,000)
capitalized acquisition costs asset acquisition				1,847,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		3,358,589		3,358,589
Amortization		2,882,772
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		229,972		229,972
business combinations, escrow fund asset recognized		(17,421)		(17,421)
crosstown walk [Member]
Business Acquisition
Land		5,178,375		5,178,375
Buildings and improvements		33,605,831		33,605,831
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		291,868		291,868
Mortgage debt		13,632,030
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		32,540,000
business combinations, accrued property tax liability		(53,861)		(53,861)
Business Combination, Consideration Transferred		46,172,030
Revenues	1,339,000		3,929,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(121,000)		(250,000)
capitalized acquisition costs asset acquisition				320,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		5,726,583		5,726,583
Amortization		1,323,511
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		125,706		125,706
business combinations, escrow fund asset recognized		(25,983)		(25,983)
City Vista [Member]
Business Acquisition
Land		4,081,683		4,081,683
Buildings and improvements		36,084,007		36,084,007
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		599,983		599,983
Mortgage debt		0
non cash mezzanine loan settled		12,500,000
contribution from joint venture partner		(450,000)
Mortgage debt		36,000,000
business combinations, accrued property tax liability		(141,238)		(141,238)
Business Combination, Consideration Transferred		48,050,000
Revenues	1,143,000		3,311,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(341,000)		(1,889,000)
capitalized acquisition costs asset acquisition				18,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		5,402,228		5,402,228
Amortization		2,100,866
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		167,797		167,797
business combinations, escrow fund asset recognized		(245,326)		(245,326)
Sorrel [Member]
Business Acquisition
Land		4,412,164		4,412,164
Buildings and improvements		35,512,257		35,512,257
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt		623,791		623,791
Mortgage debt		14,642,453
non cash mezzanine loan settled		0
contribution from joint venture partner		0
Mortgage debt		33,600,000
business combinations, accrued property tax liability		(68,828)		(68,828)
Business Combination, Consideration Transferred		48,242,453
Revenues	1,102,000		3,315,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(441,000)		(1,668,000)
capitalized acquisition costs asset acquisition				529,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		6,705,040		6,705,040
Amortization		1,495,539
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other		0		0
business combinations, escrow fund asset recognized		$ (437,510)		$ (437,510)
Aldridge at Town Village [Member]
Business Acquisition
Land	7,122,413		7,122,413
Buildings and improvements	34,683,056		34,683,056
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	779,945		779,945
Mortgage debt			5,185,142
non cash mezzanine loan settled			12,253,394
Mortgage debt			38,010,000
business combinations, accrued property tax liability	0		0
Business Combination, Consideration Transferred			55,448,536
Revenues	1,000		1,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(219,000)		(219,000)
Other liabilities	(143,024)		(143,024)
capitalized acquisition costs asset acquisition			602,000
acquisition fees paid to related party for woodstock			$ 542,000
Finite-Lived Intangible Assets, Remaining Amortization Period			13 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	10,735,231		$ 10,735,231
Amortization			2,270,915
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
adara [Member]
Business Acquisition
Land	2,854,466		2,854,466
Buildings and improvements	31,005,403		31,005,403
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	604,973		604,973
Mortgage debt			14,578,335
non cash mezzanine loan settled			0
Mortgage debt			31,850,000
business combinations, accrued property tax liability	(308,299)		(308,299)
Business Combination, Consideration Transferred			46,428,335
Revenues	32,000		32,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(179,000)		(179,000)
Other liabilities	(31,941)		(31,941)
capitalized acquisition costs asset acquisition			646,000
acquisition fees paid to related party for woodstock			$ 455,000
Finite-Lived Intangible Assets, Remaining Amortization Period			9 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	11,024,144		$ 11,024,144
Amortization			1,279,589
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
lakewood ranch [Member]
Business Acquisition
Land	4,851,844		4,851,844
Buildings and improvements	43,694,577		43,694,577
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	1,387,129		1,387,129
Mortgage debt			18,535,728
non cash mezzanine loan settled			0
Mortgage debt			39,287,500
business combinations, accrued property tax liability	(404,690)		(404,690)
Business Combination, Consideration Transferred			57,823,228
Revenues	877,000		877,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(679,000)		(679,000)
Other liabilities	(57,933)		(57,933)
capitalized acquisition costs asset acquisition			759,000
acquisition fees paid to related party for woodstock			$ 561,000
Finite-Lived Intangible Assets, Remaining Amortization Period			6 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	7,338,151		$ 7,338,151
Amortization			1,014,150
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	0		0
retreat at greystone [Member]
Business Acquisition
Land	4,077,262		4,077,262
Buildings and improvements	35,336,277		35,336,277
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt	871,684		871,684
Mortgage debt			1,660,888
non cash mezzanine loan settled			0
Mortgage debt			35,210,000
business combinations, accrued property tax liability	(139,046)		(139,046)
Business Combination, Consideration Transferred			51,108,885
Revenues	1,215,000		2,513,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(789,000)		(1,719,000)
Other liabilities	(108,573)		(108,573)
capitalized acquisition costs asset acquisition			383,000
acquisition fees paid to related party for woodstock			$ 56,000
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years 6 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	9,125,302		$ 9,125,302
Amortization			1,844,476
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other	0		0
business combinations, escrow fund asset recognized	101,503		101,503
Sunbelt Portfolio [Member]
Business Acquisition
Land	36,198,658		36,198,658
Buildings and improvements	109,504,038		109,504,038
Mortgage debt			60,368,449
Payments for (Proceeds from) Delayed Tax Exempt Exchange	0		0
Business Combination, Consideration Transferred			158,022,449
Revenues	3,278,000		9,837,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(248,000)		(1,227,000)
Finite-Lived Intangible Assets, Remaining Amortization Period				9 years
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	2,143,404		2,143,404
Finite-Lived Intangible Asset, Acquired-in-Place Leases	11,005,662		11,005,662
above market lease intangibles	458,353		458,353
Other Finite-Lived Intangible Assets, Gross	4,116,560		4,116,560
Off-market Lease, Unfavorable	(7,617,485)		(7,617,485)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	3,409,838		3,409,838
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(1,196,579)		(1,196,579)
business combination debt financing			97,654,000
Business Acquisition, Transaction Costs	$ 691,000		$ 691,000

XML

Real Estate Assets - Depreciation and Amortization (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Depreciation:
Depreciation			$ 60,845,325	$ 39,387,351
Amortization:
Depreciation and amortization	$ 28,903,770	$ 21,664,363	82,186,960	$ 54,981,064
Below Market Lease, Accumulated Amortization	$ 6,858,914		$ 6,858,914		$ 3,771,393

XML

Real Estate Assets Contributions to revenue and net income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combination, Separately Recognized Transactions [Line Items]
Revenues	$ 74,900,199	$ 53,537,337	$ 212,352,447	$ 141,127,062
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	$ 42,779	$ (2,688,620)	$ 33,408,461	$ (5,860,631)

XML

Real Estate Assets Real estate assets owned (Details)	Sep. 30, 2017 ft²	Sep. 30, 2017	Dec. 31, 2016 ft²
Business Combination Segment Allocation [Line Items]
Number of units in real estate property	2,334	9,086	8,049
Area of Real Estate Property	3,854,196		3,295,491
Net Rentable Area	558,137
Area of Real Estate Property, Excluded from Floor Retail Space	1,094,000		1,096,834
Office Building [Member]
Business Combination Segment Allocation [Line Items]
Number of Real Estate Properties		3	3
Multifamily [Member]
Business Combination Segment Allocation [Line Items]
Number of Real Estate Properties		29	24
Retail Site [Member]
Business Combination Segment Allocation [Line Items]
Number of Real Estate Properties		37	31
student housing [Member]
Business Combination Segment Allocation [Line Items]
Number of Real Estate Properties		2	1
Number of units in real estate property		444	219
Number of beds, student housing		1,319	679
Lenox Portfolio [Member]
Business Combination Segment Allocation [Line Items]
Net Rentable Area	47,600

XML

Real Estate Assets Real estate sold (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost	$ 817,313	$ 0
Land	345,110,008		$ 299,547,501
Investment Building and Building Improvements	1,802,229,802		1,513,293,760
Furniture, fixtures, and equipment	183,879,719		126,357,742
Real Estate Investment Property, Accumulated Depreciation	(147,799,077)		(103,814,894)
Assets	2,927,719,268		$ 2,420,832,602
Sandstone Creek Apartments [Member]
Property, Plant and Equipment [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost	1,400,000
second mortgage	0
Land	2,846,197
Investment Building and Building Improvements	41,859,684
Furniture, fixtures, and equipment	5,278,268
Real Estate Investment Property, Accumulated Depreciation	(4,808,539)
Assets	45,175,610
Long-term Debt, Gross	30,840,135
Ashford Park [Member]
Property, Plant and Equipment [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost	1,100,000
second mortgage	6,373,717
debt prepayment premium	400,000
Land	10,600,000
Investment Building and Building Improvements	24,075,263
Furniture, fixtures, and equipment	4,222,858
Real Estate Investment Property, Accumulated Depreciation	(6,816,193)
Assets	32,081,928
Long-term Debt, Gross	25,626,000
Enclave
Property, Plant and Equipment [Line Items]
second mortgage	0
Land	4,704,917
Investment Building and Building Improvements	29,915,903
Furniture, fixtures, and equipment	2,874,403
Real Estate Investment Property, Accumulated Depreciation	(3,556,362)
Assets	33,938,861
Long-term Debt, Gross	$ 24,862,000

XML

Real Estate Assets Real estate assets correction (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Investment Building and Building Improvements	$ 1,802,229,802	$ 1,513,293,760
Tenant Improvements	$ 45,208,781	$ 23,642,361

XML

Acquired Intangible Assets amortization (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Revenues	$ 74,900,199	$ 53,537,337	$ 212,352,447	$ 141,127,062
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	42,779	$ (2,688,620)	33,408,461	$ (5,860,631)
Castleberry [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	3,023,731		$ 3,023,731
Finite-Lived Intangible Assets, Remaining Amortization Period			9 years 9 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	13,471,240		$ 13,471,240
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	670,376		670,376
Finite-Lived Intangible Asset, Acquired-in-Place Leases	990,663		990,663
above market lease intangibles	123,084		123,084
Other Finite-Lived Intangible Assets, Gross	464,544		464,544
Off-market Lease, Unfavorable	(1,081,145)		(1,081,145)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	67,899		67,899
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(162,499)		(162,499)
Business Combination, Consideration Transferred			17,567,893
Cash paid			2,306,703
Payments for (Proceeds from) Delayed Tax Exempt Exchange			3,761,190
business combination debt financing			11,500,000
Revenues	394,000		640,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	3,000		(85,000)
Business Acquisition, Transaction Costs	78,000		78,000
Rockbridge Village [Member]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	3,141,325		$ 3,141,325
Finite-Lived Intangible Assets, Remaining Amortization Period			7 years 8 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	15,666,091		$ 15,666,091
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	278,340		278,340
Finite-Lived Intangible Asset, Acquired-in-Place Leases	1,249,694		1,249,694
above market lease intangibles	59,267		59,267
Other Finite-Lived Intangible Assets, Gross	301,761		301,761
Off-market Lease, Unfavorable	(332,725)		(332,725)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	7,136		7,136
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(89,212)		(89,212)
Business Combination, Consideration Transferred			20,281,677
Cash paid			6,031,677
Payments for (Proceeds from) Delayed Tax Exempt Exchange			0
business combination debt financing			14,250,000
Revenues	408,000		518,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(43,000)		(35,000)
Business Acquisition, Transaction Costs	131,000		131,000
west town [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	1,936,572		$ 1,936,572
Finite-Lived Intangible Assets, Remaining Amortization Period			8 years 7 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	12,092,823		$ 12,092,823
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	205,557		205,557
Finite-Lived Intangible Asset, Acquired-in-Place Leases	1,042,631		1,042,631
above market lease intangibles	0		0
Other Finite-Lived Intangible Assets, Gross	315,624		315,624
Off-market Lease, Unfavorable	(1,142,446)		(1,142,446)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	146,864		146,864
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(76,323)		(76,323)
Business Combination, Consideration Transferred			14,521,302
Cash paid			5,521,302
Payments for (Proceeds from) Delayed Tax Exempt Exchange			0
business combination debt financing			9,000,000
Revenues	32,000		32,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(17,000)		(17,000)
Business Acquisition, Transaction Costs	201,000		201,000
woodmont Village [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	2,712,907		$ 2,712,907
Finite-Lived Intangible Assets, Remaining Amortization Period			7 years 11 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	9,836,799		$ 9,836,799
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	193,347		193,347
Finite-Lived Intangible Asset, Acquired-in-Place Leases	1,721,425		1,721,425
above market lease intangibles	0		0
Other Finite-Lived Intangible Assets, Gross	413,237		413,237
Off-market Lease, Unfavorable	(1,521,305)		(1,521,305)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	0		0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(82,041)		(82,041)
Business Combination, Consideration Transferred			13,274,369
Cash paid			4,499,369
Payments for (Proceeds from) Delayed Tax Exempt Exchange			0
business combination debt financing			8,775,000
Revenues	88,000		88,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	7,000		7,000
Business Acquisition, Transaction Costs	200,000		200,000
maynard crossing [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	6,303,787		$ 6,303,787
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years 1 month
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	21,773,900		$ 21,773,900
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	791,792		791,792
Finite-Lived Intangible Asset, Acquired-in-Place Leases	1,479,507		1,479,507
above market lease intangibles	338,002		338,002
Other Finite-Lived Intangible Assets, Gross	465,414		465,414
Off-market Lease, Unfavorable	(866,380)		(866,380)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	258,658		258,658
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(95,119)		(95,119)
Business Combination, Consideration Transferred			30,449,561
Cash paid			11,949,561
Payments for (Proceeds from) Delayed Tax Exempt Exchange			0
business combination debt financing			18,500,000
Revenues	229,000		229,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(98,000)		(98,000)
Business Acquisition, Transaction Costs	379,000		379,000
irmo station [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Land	3,602,466		$ 3,602,466
Finite-Lived Intangible Assets, Remaining Amortization Period			2 years 11 months
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	11,555,942		$ 11,555,942
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed tenant improvements	303,449		303,449
Finite-Lived Intangible Asset, Acquired-in-Place Leases	773,530		773,530
above market lease intangibles	12,811		12,811
Other Finite-Lived Intangible Assets, Gross	214,340		214,340
Off-market Lease, Unfavorable	(225,228)		(225,228)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets	132,622		132,622
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(59,395)		(59,395)
Business Combination, Consideration Transferred			16,310,537
Cash paid			5,660,537
Payments for (Proceeds from) Delayed Tax Exempt Exchange			0
business combination debt financing			10,650,000
Revenues	248,000		248,000
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(75,000)		(75,000)
Business Acquisition, Transaction Costs	226,000		226,000
PAA [Member] | Castleberry [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	19,000		19,000
PAA [Member] | Rockbridge Village [Member]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	23,000		23,000
PAA [Member] | west town [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	144,000		144,000
PAA [Member] | woodmont Village [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	135,000		135,000
PAA [Member] | maynard crossing [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	307,000		307,000
PAA [Member] | irmo station [Domain]
Finite-Lived Intangible Assets [Line Items]
Business Acquisition, Transaction Costs	$ 161,000		$ 161,000

XML

Real Estate Loans, Notes Receivable, and Lines of Credit Real Estate Loans (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Mortgage Loans on Real Estate [Line Items]
number of loans receivable	27		27		26
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 409,204,915		$ 409,204,915
real estate loans commitment amount			503,966,605
Participating Mortgage Loans, Participation Liabilities, Amount	17,877,914		17,877,914		$ 20,761,819
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	371,300,000		371,300,000
variable interest entity loans amount to be funded	461,600,000		461,600,000
interest revenue current pay	8,956,012	$ 5,902,915	23,996,934	$ 16,913,037
Loans and Leases Receivable, Deferred Income	14,404		14,404		59,581
Loans Receivable, Gross, Commercial, Real Estate	411,300,449		411,300,449		334,570,242
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	(2,095,534)		(2,095,534)		(1,809,174)
Mortgage Loans on Real Estate, Commercial and Consumer, Net	409,204,915		409,204,915		332,761,068
Loans and Leases Receivable, Impaired, Commitment to Lend	$ 92,666,156		92,666,156		$ 76,546,234
real estate loans amount funded			119,225,599
real estate loans repaid			(42,495,392)
real estate loan origination fees collected			(1,281,383)
real estate loan fees amortized			$ 995,023
current interest rate			8.48%		8.26%
Deferred interest rate			5.10%		5.26%
multifamily community [Domain]
Mortgage Loans on Real Estate [Line Items]
number of loans receivable	16		16
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 234,186,944		$ 234,186,944
real estate loans commitment amount			$ 299,657,110
real estate loans percent of portfolio	57.00%		57.00%
student housing community [Domain]
Mortgage Loans on Real Estate [Line Items]
number of loans receivable	9		9
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 154,177,450		$ 154,177,450
real estate loans commitment amount			$ 182,952,490
real estate loans percent of portfolio	38.00%		38.00%
Retail Segment [Member]
Mortgage Loans on Real Estate [Line Items]
number of loans receivable	1		1
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 12,852,591		$ 12,852,591
real estate loans commitment amount			$ 12,857,005
real estate loans percent of portfolio	3.00%		3.00%
other [Member]
Mortgage Loans on Real Estate [Line Items]
number of loans receivable	1		1
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	$ 7,987,930		$ 7,987,930
real estate loans commitment amount			$ 8,500,000
real estate loans percent of portfolio	2.00%		2.00%

XML

Real Estate Loans, Notes Receivable, and Lines of Credit Notes and lines of credit (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Jul. 15, 2016	Jun. 15, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 42,351,496
Financing Receivable, Gross	54,815,000
Loans and Leases Receivable, Net Amount	42,351,496	$ 37,615,675
Loans and Leases Receivable, Deferred Income	(14,404)	(59,581)
360 Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	2,000,000
Loans and Leases Receivable, Net Amount	$ 1,958,998	1,472,571
interest rate note receivable	12.00%
PCMS [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Gross	$ 1,500,000
Loans and Leases Receivable, Net Amount	$ 926,422	1,082,311
interest rate note receivable	10.00%
Oxford Contracting LLC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ (3)
Loans and Leases Receivable, Net Amount	$ 0	1,475,000
interest rate note receivable	8.00%
PAA [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 18,000,000
Loans and Leases Receivable, Net Amount	$ 15,812,313	13,708,761
interest rate note receivable	8.00%
HCC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 11,110,000
Loans and Leases Receivable, Net Amount	$ 7,324,904	7,324,904
interest rate note receivable	12.00%
Oxford Capital Partners LLC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 10,150,000		$ 10,150,000	$ 10,650,000
Loans and Leases Receivable, Net Amount	$ 8,972,378	7,870,865
interest rate note receivable	12.00%
newport development partners [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 3,000,000
Loans and Leases Receivable, Net Amount	$ 0	0
interest rate note receivable	12.00%
360 Residential, LLC II [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 3,255,000
Loans and Leases Receivable, Net Amount	$ 3,230,232	2,884,845
interest rate note receivable	15.00%
Mulberry Development Group LLC [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 500,000
Loans and Leases Receivable, Net Amount	$ 420,000	177,000
interest rate note receivable	12.00%
Mulberry Alexandria Group LLC [Member] [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 1,400,000
Loans and Leases Receivable, Net Amount	$ 990,154	0
interest rate note receivable	12.00%
360 Capital Company [Domain]
Accounts, Notes, Loans and Financing Receivable [Line Items]
line of credit receivable	$ 3,900,000
Loans and Leases Receivable, Net Amount	$ 2,730,499	$ 1,678,999
interest rate note receivable	12.00%

XML

Real Estate Loans, Notes Receivable, and Lines of Credit Interest income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income [Abstract]
interest revenue current pay	$ 8,956,012	$ 5,902,915	$ 23,996,934	$ 16,913,037
Accrued exit fee revenue	5,005,796	3,917,641	13,894,268	10,633,937
Deferred Revenue, Revenue Recognized	408,077	201,147	995,023	636,875
Net loan fee revenue	14,369,885	10,021,703	38,886,225	28,183,849
interest revenue notes receivable	1,123,240	974,540	3,196,965	3,111,339
Interest revenue on real estate loans	$ 15,493,125	$ 10,996,243	$ 42,083,190	$ 31,295,188

XML

Real Estate Loans, Notes Receivable, and Lines of Credit Real Estate Loans Narrative (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]
real estate loan participation percentage	25.00%
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 371,300,000
variable interest entity loans amount to be funded	461,600,000
Participating Mortgage Loans, Participation Liabilities, Amount	$ 17,877,914	$ 20,761,819
Encore [Member]
Mortgage Loans on Real Estate [Line Items]
real estate loan participation percentage	49.00%
Geographic Concentration Risk [Member] | Oxford [Member]
Mortgage Loans on Real Estate [Line Items]
amount drawn under loan agreement	$ 98,400,000
loan commitment amount	$ 142,700,000

XML

Real Estate Loans, Notes Receivable, and Lines of Credit phantom facts (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016	Jul. 15, 2016	Jun. 15, 2016
Mortgage Loans on Real Estate [Line Items]
loan commitment guaranty limit amount	$ 2,000,000
line of credit receivable	$ 42,351,496
Deferred interest rate	5.10%	5.26%
current interest rate	8.48%	8.26%
loan commitment guaranty percent	25.00%
Oxford Capital Partners LLC [Member]
Mortgage Loans on Real Estate [Line Items]
line of credit receivable	$ 10,150,000		$ 10,150,000	$ 10,650,000
interest rate note receivable	12.00%

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Redeemable Preferred Stock (Details)	1 Months Ended		3 Months Ended						9 Months Ended
	Oct. 31, 2017 shares	May 31, 2017 USD ($)	Sep. 30, 2017 USD ($) $ / shares shares	Jun. 30, 2017 $ / shares	Mar. 31, 2017 $ / shares	Sep. 30, 2016 $ / shares	Jun. 30, 2016 $ / shares	Mar. 31, 2016 $ / shares	Sep. 30, 2017 USD ($) $ / shares shares	Sep. 30, 2016 USD ($) $ / shares	May 30, 2017 $ / shares shares	May 12, 2017 $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 02, 2016 shares
Class of Stock [Line Items]
Common Stock, Dividends, Per Share, Declared | $ / shares			$ 0.235	$ 0.235	$ 0.22	$ 0.2025	$ 0.2025	$ 0.1925	$ 0.69	$ 0.5975
Unitsyearcounttoredemptionthree			3						3
Proceeds from Issuance of Common Stock		$ 48,200,000							$ 74,213,118	$ 2,810,156
warrant exercise price as percent of gross ipo price			120.00%						120.00%
warrant minimum exercise price | $ / shares			$ 19.50						$ 19.50
daycountvolweightedavgcalcformarketvalue			20						20
warrantexercisewindowminyrsfromissue									1
warrantexercisewindowmaxyrsfromissue									4
Preferred Stock, Dividend Rate, Percentage									6.00%
Units stated value per share | $ / shares			$ 1,000						$ 1,000
Unitsredemptionfeepercentoneyear			13.00%						13.00%
Unitsredemptionfeepercenttwoyear			10.00%						10.00%
Unitsissuedpercentageofmaximum									0.00%
prorataamountofferingcostsreclassed									$ 100,000
shares common stock from warrant exercises | shares									20
Deferred offering costs			$ 6,025,155						$ 6,025,155				$ 2,677,023
Common Stock, Shares, Issued | shares											412,500	2,750,000
Sale of Stock, Price Per Share | $ / shares											$ 15.25	$ 15.25
Deferred Offering Costs			$ 600,000						$ 600,000
preferred stock, shares redeemed | shares			25,715						25,715
Dividends, Common Stock, Cash									$ 21,668,290
mShares [Domain]
Class of Stock [Line Items]
Preferred Stock, Par or Stated Value Per Share | $ / shares			$ 0.01						$ 0.01
Series A Preferred Stock [Member]
Class of Stock [Line Items]
preferred stock | shares			1,141,331						1,141,331				924,855
Preferred Stock, Par or Stated Value Per Share | $ / shares			$ 0.01						$ 0.01				$ 0.01
Preferred Stock, Value, Issued			$ 11,156						$ 11,156				$ 9,144
Unitsredemptionfee [Domain]
Class of Stock [Line Items]
Unitsredemptionfeespercentfouryears			3.00%						3.00%
Unitsredemptionfeespercentthreeyears			5.00%						5.00%
Unitsyearcounttoredemptionfive			5						5
Unitsyearcounttoredemptionfour			4						4
Unitsissued [Member]
Class of Stock [Line Items]
Proceeds from Other Equity									$ 11,800,000
Unitsissuedcumulative | shares	841								12,396
$1.5 billion unit [Domain]
Class of Stock [Line Items]
aggregate offering costs			$ 2,200,000						$ 2,200,000
aggregate offering costs, net			$ 2,100,000						$ 2,100,000
maximum shares available to be issued | shares			1,500,000						1,500,000
follow on Offering [Member]
Class of Stock [Line Items]
aggregate offering costs			$ 15,000,000						$ 15,000,000
Deferred Offering Costs			97,200,000						97,200,000
Unit Offering and follow on combined [Member]
Class of Stock [Line Items]
Proceeds from Other Equity									$ 891,200,000
Unitsissuedpercentageofmaximum									0.00%
aggregate offering costs			15,000,000						$ 15,000,000
Unit Offering [Member]
Class of Stock [Line Items]
Unitsissuedcumulative | shares									151,923
Unitsissuedpercentageofmaximum									0.00%
aggregate offering costs			3,000,000						$ 3,000,000
prorataamountofferingcostsreclassed									300,000
deferred offering costs not yet reclassified			2,700,000						2,700,000
Deferred Offering Costs			14,900,000						$ 14,900,000
ceiling deferred offering costs									11.50%
offering costs reimbursable to the Manager									0.015
2016 Shelf Offering [Member]
Class of Stock [Line Items]
max proceeds equity sales									$ 300,000,000
aggregate offering costs			1,900,000						1,900,000
prorataamountofferingcostsreclassed									628,000
deferred offering costs not yet reclassified			$ 1,300,000						1,300,000
mShares [Domain]
Class of Stock [Line Items]
Proceeds from Other Equity									$ 136,500,000
maximum shares available to be issued | shares														500,000
2016 ATM Offering [Member]
Class of Stock [Line Items]
maximum shares common stock under offering | shares			150,000,000						150,000,000
Common Stock, Shares, Issued | shares			3,400,000						3,400,000
proceeds from equity offering			$ 51,000,000						$ 51,000,000

XML

Related Party Transactions (Details)	3 Months Ended		9 Months Ended		21 Months Ended
	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($) shares	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($) shares	Sep. 30, 2017 USD ($) shares	Dec. 31, 2016 USD ($)	Jun. 30, 2016 shares	Mar. 15, 2016 shares
Related Party Transaction [Line Items]
loan coordination fee percentage	1.60%		1.60%		1.60%
loan coordination fees	$ 1,056,885	$ 3,493,227	$ 4,066,393	$ 8,178,836
Cost of Reimbursable Expense	$ 3,199,836	$ 2,790,335	8,995,087	7,670,403
capital marketing and professional			$ 324,638	$ 356,752
Common Stock, Shares, Outstanding | shares	35,597,744	24,652,041	35,597,744	24,652,041	35,597,744		23,568,328	23,041,502
Construction Management Fee	$ 62,130	$ 53,935	$ 222,539	$ 126,446
Related Party Transaction, Expenses from Transactions with Related Party	10,670,285	8,264,407	25,907,986	21,362,236
Property management fees	2,053,446	1,724,411	6,016,003	4,308,841
AcquisitionFeesRelatedPartyCosts	2,604,551	0	2,604,551	0
loan origination fees	878,939	250,602	1,296,383	1,374,828
manager's fees deferred			5,100,000
Financing Receivable, Gross	54,815,000		54,815,000		$ 54,815,000
Loans and Leases Receivable, Net Amount	42,351,496		42,351,496		42,351,496	$ 37,615,675
disposition fee to manager			1,576,000
line of credit receivable	$ 42,351,496		$ 42,351,496		$ 42,351,496
percent of asset value for loan coordination fee	63.00%		63.00%		63.00%
manager's fees deferred	$ 655,944	736,960	$ 1,001,864	1,458,245	$ 4,300,000
Acquisition-related Costs [Member]
Related Party Transaction [Line Items]
Percentageusedtocalculateacquisitionfees	0.00%		0.00%		0.00%
AssetmanagementFees [Member]
Related Party Transaction [Line Items]
Asset Management Costs	$ 3,191,817	2,196,363	$ 9,313,759	5,708,868
Propertymanagementfees [Member]
Related Party Transaction [Line Items]
Property management fees	1,569,603	1,438,569	4,554,880	3,629,322
General and Administrative Expense [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party	$ 1,306,360	$ 831,711	$ 3,849,481	2,343,936
Cash Distribution [Member]
Related Party Transaction [Line Items]
priorityannualreturnoncapitalandexpensesassetsales			0.00%
preferred capital securities [Member]
Related Party Transaction [Line Items]
marketing and legal cost reimbursements			$ 790,804	$ 768,869
Retail Site [Member]
Related Party Transaction [Line Items]
Number of Real Estate Properties	37		37		37	31
PCMS [Member]
Related Party Transaction [Line Items]
Financing Receivable, Gross	$ 1,500,000		$ 1,500,000		$ 1,500,000
Loans and Leases Receivable, Net Amount	926,422		926,422		926,422	$ 1,082,311
PCMS [Member] | PCMS [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Net Amount	926,422		926,422		926,422
PAA [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Net Amount	15,812,313		15,812,313		15,812,313	$ 13,708,761
line of credit receivable	$ 18,000,000		$ 18,000,000		$ 18,000,000

XML

Dividends (Details) - USD ($)		1 Months Ended																	3 Months Ended							9 Months Ended
	Sep. 03, 2016	Sep. 30, 2017	Aug. 31, 2017	Jul. 31, 2017	Jun. 30, 2017	May 31, 2017	Apr. 30, 2017	Mar. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Aug. 31, 2016	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016	Apr. 30, 2016	Mar. 31, 2016	Feb. 28, 2016	Jan. 31, 2016	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 15, 2017	Mar. 15, 2016
Dividends Payable [Line Items]
minority interest partnership units outstanding		901,195																	901,195				886,168			901,195	886,168
Common Stock, Dividends, Per Share, Declared																			$ 0.235	$ 0.235	$ 0.22		$ 0.2025	$ 0.2025	$ 0.1925	$ 0.69	$ 0.5975
dividends common stock declared																			$ 8,158,256	$ 7,539,376	$ 5,970,658		$ 4,992,038	$ 4,772,587	$ 4,435,489	$ 21,668,290	$ 14,200,114
common stock shares entitled to dividends		34,715,982			32,082,451														34,715,982	32,082,451						34,715,982		27,139,354
Dividends, Preferred Stock, Cash	$ 3,886,173	$ 5,545,017	$ 5,412,511	$ 5,299,654	$ 5,237,872	$ 5,085,694	$ 5,000,060	$ 4,938,098	$ 4,849,032	$ 4,641,149	$ 3,671,020	$ 3,458,513	$ 3,321,519	$ 3,143,567	$ 2,979,196	$ 2,770,048	$ 2,630,601	$ 2,481,086								$ 46,009,087
Common Stock, Shares, Outstanding		35,597,744											23,568,328						35,597,744				24,652,041	23,568,328		35,597,744	24,652,041		23,041,502
Series A Preferred Stock [Member]
Dividends Payable [Line Items]
Preferred Stock, Dividend Rate, Per-Dollar-Amount																						$ 5.00
Minimum [Member] | mShares [Domain]
Dividends Payable [Line Items]
Preferred Stock, Dividend Rate, Per-Dollar-Amount																						4.79
Maximum [Member] | mShares [Domain]
Dividends Payable [Line Items]
Preferred Stock, Dividend Rate, Per-Dollar-Amount																						$ 6.25

XML

Dividends Series A Preferred Dividends (Details) - USD ($)		1 Months Ended																	9 Months Ended
	Sep. 03, 2016	Sep. 30, 2017	Aug. 31, 2017	Jul. 31, 2017	Jun. 30, 2017	May 31, 2017	Apr. 30, 2017	Mar. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Aug. 31, 2016	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016	Apr. 30, 2016	Mar. 31, 2016	Feb. 28, 2016	Jan. 31, 2016	Sep. 30, 2017	Apr. 28, 2017	Sep. 30, 2016	Jul. 29, 2016	Feb. 27, 2016	Jan. 30, 2016
Dividends Payable [Line Items]
Dividends, Preferred Stock, Cash	$ 3,886,173	$ 5,545,017	$ 5,412,511	$ 5,299,654	$ 5,237,872	$ 5,085,694	$ 5,000,060	$ 4,938,098	$ 4,849,032	$ 4,641,149	$ 3,671,020	$ 3,458,513	$ 3,321,519	$ 3,143,567	$ 2,979,196	$ 2,770,048	$ 2,630,601	$ 2,481,086	$ 46,009,087
Preferred Stock entitled to dividend payments		1,113,896	1,086,714	1,061,179	1,041,187	1,019,046		979,309	977,267	932,413	721,143		651,439	617,994	582,720	544,129			1,113,896	992,774	765,185	682,392	516,017	482,774

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Dividends NCI (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 211,781	$ 211,781	$ 198,742	$ 179,449	$ 179,449	$ 117,395	$ 622,304	$ 476,293

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Equity Compensation (Details) - USD ($)	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2014	Jun. 30, 2015	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2014	Jan. 02, 2014	Jan. 03, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,617,500			1,317,500	2,617,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					26,900
Share-based Compensation	$ 863,412	$ 638,414			$ 2,607,667	$ 1,867,706
market vesting condition capital increase threshhold		3,549,000	$ 4,598,624
warrant exercise price as percent of gross ipo price	120.00%				120.00%
Restricted Stock [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period				30,133	24,408	30,990
Share-based Compensation					$ 18,306
ClassBUnits [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
common stock fair value per share								$ 12.88	$ 14.79
Class B Units valuation assumption dividend yield								5.98%	5.95%
ClassBUnit valuation assumption expected volatility								26.10%	26.40%
Class B Unit valuation assumptions risk free rate								2.81%	2.91%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					286,392	265,931	286,392
Share-based Compensation					$ 345,789
2014 [Member] | ClassBUnits [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Share-based Compensation	$ 0	$ 0			$ 0	$ 5,236

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Equity Compensation Restricted Stock (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2015	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2014	Jan. 02, 2014	Jan. 03, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,617,500		1,317,500	2,617,500
Share-based Compensation	$ 863,412	$ 638,414		$ 2,607,667	$ 1,867,706
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				26,900
ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
common stock fair value per share							$ 12.88	$ 14.79
Share-based Compensation				$ 345,789
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				286,392	265,931	286,392
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			30,133	24,408	30,990
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share			$ 10.62	$ 14.75	$ 13.23
Stock Granted, Value, Share-based Compensation, Gross			$ 320,012	$ 360,018	$ 409,998
Share-based Compensation				$ 18,306

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Equity Compensation Committee Fee Grants (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2015	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				26,900
Share-based Compensation	$ 863,412	$ 638,414		$ 2,607,667	$ 1,867,706
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			30,133	24,408	30,990
Share-based Compensation				$ 18,306
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Intrinsic Value, Amount Per Share			$ 10.62	$ 14.75	$ 13.23
Stock Granted, Value, Share-based Compensation, Gross			$ 320,012	$ 360,018	$ 409,998

XML

Equity Compensation Class B Units (Details) - USD ($)		3 Months Ended								9 Months Ended		12 Months Ended
	Oct. 23, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2014	Jan. 02, 2014	Jan. 03, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.235	$ 0.235	$ 0.22	$ 0.2025	$ 0.2025	$ 0.1925			$ 0.69	$ 0.5975
Share-based Compensation		$ 863,412			$ 638,414					$ 2,607,667	$ 1,867,706
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										26,900
market vesting condition capital increase threshhold					$ 3,549,000				$ 4,598,624
ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
common stock fair value per share													$ 12.88	$ 14.79
Common Stock, Dividends, Per Share, Declared										$ 0.1925
Share-based Compensation										$ 345,789
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum										20 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										286,392	265,931	286,392
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum										30 years
Class B Units valuation assumption dividend yield													5.98%	5.95%
ClassBUnit valuation assumption expected volatility													26.10%	26.40%
Class B Unit valuation assumptions risk free rate													2.81%	2.91%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number													2,667,288	3,413,793
100percentvestinglevel [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value													$ 10.03	$ 11.92
one year [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period								176,835			265,931	198,184
three year [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										89,096		88,208
2016 [Domain] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										265,931
2016 [Domain] | Share-based Compensation Award, Tranche Three [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										29,698
2016 [Domain] | Share-based Compensation Award, Tranche One [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										206,534
2016 [Domain] | Share-based Compensation Award, Tranche Two [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period										29,699
Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.25

XML

Equity Compensation Warrant (Details) - $ / shares	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.235	$ 0.235	$ 0.22	$ 0.2025	$ 0.2025	$ 0.1925	$ 0.69	$ 0.5975
warrant exercise price as percent of gross ipo price	120.00%						120.00%

XML

Equity Compensation Equity compensation expense by grant (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.235	$ 0.235	$ 0.22	$ 0.2025	$ 0.2025	$ 0.1925	$ 0.69	$ 0.5975
Share-based Compensation	$ 863,412			$ 638,414			$ 2,607,667	$ 1,867,706
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	2,197,782						2,197,782
stock grants for quarterly board committee fees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	0			18,030			0	48,021
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	0						$ 0
ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Dividends, Per Share, Declared							$ 0.1925
Share-based Compensation							$ 345,789
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation							18,306
2015 Year [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	74,470			517,884			237,714	1,536,946
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	374,753						374,753
2015 Year [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	0			0			0	106,670
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	0						0
2016 [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	678,176			0			2,012,653	0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	1,401,140						1,401,140
2016 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	0			102,500			136,667	170,833
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	0						0
2016 [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	20,761			0			70,625	0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	211,878						211,878
2017 [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	90,005			0			150,008	0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	210,011						210,011
2014 [Member] | ClassBUnits [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	0			$ 0			0	$ 5,236
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 0						$ 0

XML

Equity Compensation Restricted Stock Units (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Jan. 03, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	26,900
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share	$ 11.92
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	3,200
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		320,648

XML

Indebtedness (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Initial Interest Rate	3.93%		3.93%
Unamortized Debt Issuance Expense	$ 1,200,000		$ 1,200,000
Interest Expense, Long-term Debt	15,620,500	$ 11,083,996	44,176,014	$ 28,070,218
interest expense to loan participant	569,141	482,246	1,825,470	1,341,104
Long-term Debt, Current Maturities	59,940,046		59,940,046
Long-term Debt	1,569,569,425		$ 1,569,569,425		$ 1,305,870,471
variable interest rate minimum			3.25%
Long-term Debt, Maturities, Repayments of Principal in Year Two	45,147,144		$ 45,147,144
Long-term Debt, Maturities, Repayments of Principal in Year Three	242,834,004		242,834,004
Long-term Debt, Maturities, Repayments of Principal in Year Four	64,621,789		64,621,789
Long-term Debt, Maturities, Repayments of Principal after Year Five	121,250,100		121,250,100
Long-term Debt, Maturities, Repayments of Principal after Year Five	1,116,771,170		1,116,771,170
Long-term Debt	1,650,564,253		1,650,564,253
Interest Expense	16,678,418	12,234,174	48,085,016	30,688,505
Line of Credit Facility, Amount Outstanding	43,000,000		43,000,000		$ 127,500,000
Amortization of Financing Costs			3,906,753	2,431,809
interest expense credit facility	$ 1,057,918	1,150,178	$ 3,909,002	2,618,287
Spread over Initial Interest Rate option 1	200		200
Spread over Initial Interest Rate option 2	400		400
Indebtedness Weighted Average Remaining Maturity			9 years
Payment for Debt Extinguishment or Debt Prepayment Cost			$ 817,313	0
Mortgages [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 1,596,564,253		1,596,564,253
Royal Lakes [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 9,700,000		$ 9,700,000
Debt Instrument, Interest Rate, Stated Percentage	3.74%		3.74%
Debt Instrument, Basis Spread on Variable Rate			25000.00%
Champions Village [Member] | Mortgages [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 27,400,000		$ 27,400,000
Debt Instrument, Interest Rate, Stated Percentage	4.24%		4.24%
Debt Instrument, Basis Spread on Variable Rate			3.00%
Multifamily [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt	$ 9,515,838	7,852,145	$ 26,620,941	21,006,486
Retail Segment [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt	3,858,588	2,615,924	10,699,043	5,588,947
Office Building [Member]
Debt Instrument [Line Items]
Interest Expense	1,676,934	133,681	5,030,560	133,681
Nashville Portfolio [Member] | student housing [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt	745,758	387,901	1,941,594	508,195
Sunbelt Portfolio [Member] | Office Building [Member]
Debt Instrument [Line Items]
Interest Expense, Long-term Debt	1,676,933	$ 133,681	5,030,560	$ 133,681
Ashford Park [Member]
Debt Instrument [Line Items]
Payment for Debt Extinguishment or Debt Prepayment Cost			1,100,000
debt prepayment premium			400,000
Royal Lakes [Member]
Debt Instrument [Line Items]
loan commitment amount	11,050,000		11,050,000
Champions Village [Member]
Debt Instrument [Line Items]
loan commitment amount	$ 34,160,000		$ 34,160,000

XML

Indebtedness debt covenants (Details) - USD ($)	3 Months Ended	9 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
debt covenants [Line Items]
dividend restriction AFFO		95.00%
Line of Credit Facility, Maximum Borrowing Capacity			$ 150,000,000
minimum equity debt covenants		$ 687,000,000
equity raise above min equity required		75.00%
total debt covenant min equity		$ 1,100,000,000
maximum dividends debt covenant	$ 89,000,000
Minimum Net Worth Required for Compliance		$ 1,170,151,180
debt yield		9.18%
payout ratio		92.80%
Total leverage ratio		60.00%

XML

Indebtedness Credit Facility (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	May 26, 2016
Line of Credit Facility [Line Items]
Indebtedness Weighted Average Remaining Maturity	9 years
Short-term Debt			$ 11,000,000
Short-term Debt, Weighted Average Interest Rate, at Point in Time	4.51%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.35%
Line of Credit Facility, Maximum Borrowing Capacity		$ 150,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Indebtedness Weighted Average Remaining Maturity	1 year 11 months
Loans Receivable, Basis Spread on Variable Rate	3.25%
term loan [Member] [Member]
Line of Credit Facility [Line Items]
Loans Receivable, Basis Spread on Variable Rate	2.50%
interim term loan [Member]
Line of Credit Facility [Line Items]
Short-term Debt, Weighted Average Interest Rate, at Point in Time	3.66%
Royal Lakes [Member] | Mortgages [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.74%

XML

Indebtedness Acquisition Credit Facility (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Mar. 01, 2021	Sep. 30, 2016
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Amount Outstanding During Period	$ 110,700,000
Line of Credit Facility, Maximum Borrowing Capacity			$ 150,000,000
Unamortized Debt Issuance Expense	$ 1,200,000
Indebtedness Weighted Average Remaining Maturity	9 years
February 2017 facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 200,000,000
Subsequent Event [Member] | February 2017 facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 300,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Loans Receivable, Basis Spread on Variable Rate	3.25%
Indebtedness Weighted Average Remaining Maturity	1 year 11 months
acquisition facility [Member]
Line of Credit Facility [Line Items]
Unamortized Debt Issuance Expense	$ 300,000
Indebtedness Weighted Average Remaining Maturity	4 years 6 months
Minimum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Loans Receivable, Basis Spread on Variable Rate	1.80%
Maximum [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Loans Receivable, Basis Spread on Variable Rate	2.20%

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Indebtedness Mortgage debt summary by segment (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Secured Debt	$ 1,596,564,253
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.71%
average maturity mortgage debt	8 years 1 month
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Accumulated Amortization Adjustment	$ (26,994,828)
Long-term Debt	1,569,569,425	$ 1,305,870,471
Fixed Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 1,262,089,130
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.80%
average maturity mortgage debt	9 years 2 months
Variable Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 334,475,123
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.35%
average maturity mortgage debt	4 years
multifamily community [Domain]
Debt Instrument [Line Items]
Secured Debt	$ 979,141,193
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.58%
average maturity mortgage debt	6 years 9 months
multifamily community [Domain] | Fixed Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 744,771,383
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.69%
average maturity mortgage debt	7 years 7 months
multifamily community [Domain] | Variable Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 234,369,810
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.24%
average maturity mortgage debt	4 years
Retail Segment [Member]
Debt Instrument [Line Items]
Secured Debt	$ 393,321,615
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.82%
average maturity mortgage debt	6 years 11 months
Retail Segment [Member] | Fixed Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 330,701,302
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.81%
average maturity mortgage debt	7 years 6 months
Retail Segment [Member] | Variable Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 62,620,313
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.86%
average maturity mortgage debt	3 years 11 months
Office Building [Member]
Debt Instrument [Line Items]
Secured Debt	$ 153,662,656
Long-term Debt, Weighted Average Interest Rate, at Point in Time	4.25%
average maturity mortgage debt	21 years 5 months
Office Building [Member] | Fixed Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 153,662,656
Long-term Debt, Weighted Average Interest Rate, at Point in Time	4.25%
average maturity mortgage debt	21 years 5 months
Office Building [Member] | Variable Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 0
Long-term Debt, Weighted Average Interest Rate, at Point in Time	0.00%
student housing community [Domain]
Debt Instrument [Line Items]
Secured Debt	$ 70,438,789
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.60%
average maturity mortgage debt	4 years 8 months
student housing community [Domain] | Fixed Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 32,953,789
Long-term Debt, Weighted Average Interest Rate, at Point in Time	4.02%
average maturity mortgage debt	4 years 11 months
student housing community [Domain] | Variable Income Interest Rate [Member]
Debt Instrument [Line Items]
Secured Debt	$ 37,485,000
Long-term Debt, Weighted Average Interest Rate, at Point in Time	3.23%
average maturity mortgage debt	4 years 5 months

XML

Indebtedness New mortgages (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long-term Debt	$ 1,569,569,425	$ 1,305,870,471
SoL [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	20000.00%
Long-term Debt	$ 37,485,000
citrus village [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 30,250,000
Mortgage Loans on Real Estate, Interest Rate	3.65%
retreat at greystone [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	18500.00%
Long-term Debt	$ 35,210,000
founders village [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 31,605,000
Mortgage Loans on Real Estate, Interest Rate	4.31%
claiborne crossing [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 28,179,500
Mortgage Loans on Real Estate, Interest Rate	2.89%
Castleberry [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 11,500,000
Mortgage Loans on Real Estate, Interest Rate	3.99%
Rockbridge Village [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 14,250,000
Mortgage Loans on Real Estate, Interest Rate	3.73%
lakewood ranch [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 39,287,500
Mortgage Loans on Real Estate, Interest Rate	3.93%
irmo station [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 10,650,000
Mortgage Loans on Real Estate, Interest Rate	3.94%
maynard crossing [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 18,500,000
Mortgage Loans on Real Estate, Interest Rate	3.74%
woodmont Village [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 8,775,000
Mortgage Loans on Real Estate, Interest Rate	4.13%
west town [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 9,000,000
Mortgage Loans on Real Estate, Interest Rate	3.65%
adara [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 31,850,000
Mortgage Loans on Real Estate, Interest Rate	3.90%
Aldridge at Town Village [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	18500.00%
Long-term Debt	$ 38,010,000
Summit III [Domain]
Debt Instrument [Line Items]
Long-term Debt	$ 20,075,000
Mortgage Loans on Real Estate, Interest Rate	3.87%
total current additions [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 364,627,000

XML

Income Taxes (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2010
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Net of Valuation Allowance		$ 298,100
DeferredTaxAssetsValuationAllowancePercentage	100.00%

XML

Commitments and Contingencies (Details) - USD ($)	3 Months Ended		9 Months Ended		21 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
lease term			11 years
guaranty cap amount	$ 6,700,000		$ 6,700,000		$ 6,700,000
Annual reduction in guaranty cap	619,304		619,304		619,304
guaranty cap amount credit cards			640,000
manager's fees deferred	655,944	$ 736,960	1,001,864	$ 1,458,245	4,300,000
cumulative manager's fees deferred			5,100,000
real estate loan balances unfunded	$ 92,700,000		$ 92,700,000		$ 92,700,000

XML

Segment information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
capitalized expenditures for long lived assets	$ 4,122,947	$ 3,239,753	$ 11,769,958	$ 8,442,416
Assets	2,927,719,268		2,927,719,268		$ 2,420,832,602
Operating Leases, Income Statement, Lease Revenue	50,072,135	37,319,207	143,676,962	96,541,544
adjusted funds from operations	51,599,608	37,158,322	145,471,931	95,548,527
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	42,779	(2,688,620)	33,408,461	(5,860,631)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	42,779	(2,688,620)	33,408,461	(5,860,631)
Interest Expense	16,678,418	12,234,174	48,085,016	30,688,505
Depreciation			60,845,325	39,387,351
Business Combination, Acquisition Related Costs	0	(1,357,537)	(14,002)	(6,885,864)
Share-based Compensation	(863,412)	(638,414)	(2,607,667)	(1,867,706)
Gains (Losses) on Sales of Investment Real Estate	0	0	37,635,014	4,271,506
loan fees received			2,592,766	(2,695,961)
noncash loan interest income	525,539	593,623	1,551,192	2,176,510
Management fees net of deferrals	4,491,662	3,022,124	13,522,653	8,025,916
rental and other property revenues	50,072,135	37,319,207	143,676,962	96,541,544
Other property revenues	9,334,939	5,221,887	26,592,295	13,290,330
interest revenues loans and notes	15,048,660	10,575,595	40,769,467	29,957,117
Revenues	74,900,199	53,537,337	212,352,447	141,127,062
brookwood office [Member]
Segment Reporting Information [Line Items]
capitalized expenditures for long lived assets	25,883
Multifamily [Member]
Segment Reporting Information [Line Items]
capitalized expenditures for long lived assets	2,897,758	2,674,743	9,006,194	6,762,650
Multifamily Communities
Segment Reporting Information [Line Items]
property tax expense	4,808,502	3,792,370	14,872,841	13,034,764
Management Fee Expense	1,412,908	1,366,159	4,154,123	3,542,237
Salaries, Wages and Officers' Compensation	3,199,836	2,790,335	8,995,087	7,670,403
property operating and maintenance expense	5,566,320	4,552,744	14,602,003	11,757,778
Assets	1,452,181,360		1,452,181,360		1,166,766,664
Operating Leases, Income Statement, Lease Revenue	32,366,025	29,059,716	92,947,516	79,330,404
adjusted funds from operations	19,410,732	18,413,797	55,995,891	48,169,241
Acquisition Costs, Period Cost	0	601,033	(20,559)	4,645,530
Other property revenues	3,624,000	3,195,237	10,173,457	8,611,136
Retail Site [Member]
Segment Reporting Information [Line Items]
capitalized expenditures for long lived assets	1,225,189	565,010	2,763,764	1,679,766
Acquisition Costs, Period Cost	0	396,679	25,402	1,856,933
financingsegment [Member]
Segment Reporting Information [Line Items]
Assets	465,505,478		465,505,478		379,070,918
adjusted funds from operations	15,048,659	10,575,595	40,769,467	29,957,116
Interest Expense	1,627,058	1,632,424	5,734,472	3,959,391
Retail Segment [Member]
Segment Reporting Information [Line Items]
property tax expense	2,034,030	950,444	5,889,820	2,376,099
Management Fee Expense	459,884	332,869	1,381,404	741,221
Salaries, Wages and Officers' Compensation	0	0	0	0
property operating and maintenance expense	1,260,108	904,877	4,037,922	2,078,128
Assets	683,712,963		683,712,963		579,738,707
Operating Leases, Income Statement, Lease Revenue	11,051,695
Other property revenues	3,918,486	2,426,791	11,203,483	5,996,759
woodstock retail [Member]
Segment Reporting Information [Line Items]
Operating Leases, Income Statement, Lease Revenue		7,767,052	30,967,411	16,718,701
adjusted funds from operations	10,928,364	7,795,476	29,990,860	17,048,716
Interest Expense	3,858,588	2,615,924	10,699,043	5,588,947
Depreciation	7,611,979	5,452,490	21,714,453	11,997,670
Office Building [Member]
Segment Reporting Information [Line Items]
property tax expense	863,174	46,271	2,527,123	46,271
Management Fee Expense	180,654	25,383	480,476	25,383
Salaries, Wages and Officers' Compensation	202,787	18,067	654,756	18,067
property operating and maintenance expense	1,074,325	47,227	2,997,626	47,227
Assets	309,351,565		309,351,565		285,229,700
Operating Leases, Income Statement, Lease Revenue	6,654,415	492,439	19,762,035	492,439
adjusted funds from operations	6,211,853	373,454	18,715,713	373,454
Interest Expense	1,676,934	133,681	5,030,560	133,681
Depreciation	3,272,922	182,993	9,621,739	182,993
Acquisition Costs, Period Cost	0	359,825	9,159	383,401
Other property revenues	2,236,918	20,507	6,529,078	20,506
Office Building [Member]
Segment Reporting Information [Line Items]
capitalized expenditures for long lived assets	78,593
Other Assets [Member]
Segment Reporting Information [Line Items]
Assets	16,967,902		16,967,902		$ 10,026,613
All Other Segments [Member]
Segment Reporting Information [Line Items]
adjusted funds from operations	94,028	336,707	842,566	1,055,099
as adjusted [Member]
Segment Reporting Information [Line Items]
property tax expense	7,705,706	4,789,085	23,289,784	15,457,134
Management Fee Expense	2,053,446	1,724,411	6,016,003	4,308,841
Salaries, Wages and Officers' Compensation	3,402,623	2,808,402	9,649,843	7,688,470
property operating and maintenance expense	7,900,753	5,504,848	21,637,551	13,883,133
Other property revenues	9,779,404	5,642,535	27,906,018	14,628,401
real estate assets [Member]
Segment Reporting Information [Line Items]
Interest Expense	9,515,838	7,852,145	26,620,941	21,006,486
Depreciation	$ 18,018,869	$ 16,028,880	$ 50,850,768	$ 42,800,401

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Loss per Share (Details) - USD ($)	1 Months Ended	3 Months Ended			6 Months Ended	9 Months Ended		12 Months Ended
	Oct. 31, 2017	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2015	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2014	Jan. 02, 2014	Jan. 03, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Income (Loss) before Gain (Loss) on Sale of Properties		$ 42,779		$ (2,688,620)		$ (4,226,553)	$ (10,132,137)
minority interest partnership units outstanding		901,195		886,168		901,195	886,168
Restricted Stock Units outstanding						23,700
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		$ 42,779		$ (2,688,620)		$ 33,408,461	$ (5,860,631)
Gains (Losses) on Sales of Investment Real Estate		$ 0		$ 0		$ 37,635,014	$ 4,271,506
Preferred Stock, Shares Outstanding		1,115,616		802,032		1,115,616	802,032
Net Income (Loss) Attributable to Parent		$ 41,660		$ (2,602,136)		$ 32,311,453	$ (5,685,586)
Dividends, Preferred Stock		(16,420,996)		(11,015,706)		(46,042,181)	(28,341,723)
Deemed noncash dividend						(33,094)	0
NetIncomeAllocatedToUnvestedRestrictedShares		4,302		6,159		11,743	12,434
Income (Loss) Attributable to Noncontrolling Interest, before Tax		(1,119)		86,484		(1,097,008)	175,045
Net Income (Loss) Available to Common Stockholders, Basic		$ (16,383,638)		$ (13,624,001)		$ (13,742,471)	$ (34,039,743)
Weighted Average Number of Shares Outstanding, Basic and Diluted		33,539,920		24,340,791		30,147,497	23,552,951
Restricted Stock Units outstanding		0		0		0	0
Weighted Average Number of Shares Outstanding, Diluted		33,539,920		24,340,791		30,147,497	23,552,951
Preferred Stock, Dividend Rate, Percentage						6.00%
Units stated value per share		$ 1,000				$ 1,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						26,900
Incremental Common Shares from conversion of outstanding units		16,931,180				16,931,180
Share-based Compensation		$ 863,412		$ 638,414		$ 2,607,667	$ 1,867,706
Earnings Per Share, Basic		$ (0.49)		$ (0.56)		$ (0.46)	$ (1.45)
Unitsissued [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Unitsissuedcumulative	841					12,396
ClassBUnits [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number									2,667,288	3,413,793
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						286,392	265,931	286,392
Share-based Compensation						$ 345,789
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		18,306		23,247		18,306	23,247
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period					30,133	24,408	30,990
Share-based Compensation						$ 18,306
mShares [Domain] | Minimum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, Dividend Rate, Percentage			5.75%
mShares [Domain] | Maximum [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, Dividend Rate, Percentage			7.50%
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, Shares Outstanding		1,115,616	914,422			1,115,616
Series M Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Preferred Stock, Shares Outstanding		12,396	0			12,396

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Pro Forma Financial Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
pro forma acquisition cost adjustment		$ 1,300,000		$ 6,800,000
Revenues	$ 74,900,199	53,537,337	$ 212,352,447	141,127,062
pro forma net income common stockholders	$ (15,467,178)	$ (11,262,311)	$ (9,024,046)	$ (34,205,524)
Weighted average number of shares of Common Stock outstanding, basic and diluted	33,539,920	24,340,791	30,147,497	23,552,951
Weighted Average Number of Shares Outstanding, Diluted	33,539,920	24,340,791	30,147,497	23,552,951
Pro Forma [Member]
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenues	$ 74,970,784	$ 63,754,083	$ 212,542,233	$ 189,494,650
Business Acquisition, Pro Forma Net Income (Loss)	996,408	(255,917)	38,270,000	(5,957,523)
pro forma net income company	$ 958,120	$ (240,446)	$ 37,029,878	$ (5,799,045)
Business Acquisition, Pro Forma Earnings Per Share, Basic	$ (0.46)	$ (0.46)	$ (0.30)	$ (1.45)
Weighted Average Number of Shares Outstanding, Basic	33,539,920	24,340,791	30,147,497	23,522,951

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Fair Values of Financial Instruments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
line of credit receivable	$ 42,351,496
financial assets carrying value	451,556,411
Accrued Investment Income Receivable	27,700,000	$ 21,900,000
Mortgage notes payable	1,569,569,425	1,305,870,471
Line of Credit Facility, Amount Outstanding	43,000,000	127,500,000
Bank Loans	11,000,000	11,000,000
Participating Mortgage Loans, Mortgage Obligations, Amount	18,218,715
Debt, Long-term and Short-term, Combined Amount	1,668,442,167	1,487,139,931
Real estate loans carrying value including accrued interest	409,204,915
Mortgages [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable	1,596,564,253
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure	0
real estate related loans fair value	0
Long-term Debt, Fair Value	0
Line of Credit Facility, Amount Outstanding	0
Bank Loans	0	0
Participating Mortgage Loans, Mortgage Obligations, Amount	0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure	498,261,479
real estate related loans fair value	455,909,983
Long-term Debt, Fair Value	1,595,108,853
Line of Credit Facility, Amount Outstanding	43,000,000
Bank Loans	11,000,000	11,000,000
Participating Mortgage Loans, Mortgage Obligations, Amount	18,218,715
Financial and Nonfinancial Liabilities, Fair Value Disclosure	1,667,327,568	1,474,967,100
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
real estate related loans fair value	0
Long-term Debt, Fair Value	0
Participating Mortgage Loans, Mortgage Obligations, Amount	0
Mortgages [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure	1,667,327,568
real estate related loans fair value	455,909,983
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
line of credit receivable		37,615,675
financial assets carrying value		370,376,743
Participating Mortgage Loans, Mortgage Obligations, Amount		20,761,819
Real estate loans carrying value including accrued interest		332,761,068
Reported Value Measurement [Member] | Mortgages [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage notes payable		1,327,878,112
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Line of Credit Facility, Amount Outstanding		127,500,000
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
line of credit receivable		37,615,675
Participating Mortgage Loans, Mortgage Obligations, Amount		21,500,448
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure		0
Long-term Debt, Fair Value		0
Line of Credit Facility, Amount Outstanding		0
Participating Mortgage Loans, Mortgage Obligations, Amount		0
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure		412,472,424
real estate related loans fair value		374,856,749
Long-term Debt, Fair Value		1,314,966,652
Line of Credit Facility, Amount Outstanding		127,500,000
Participating Mortgage Loans, Mortgage Obligations, Amount		21,500,448
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure		0
Long-term Debt, Fair Value		0
Line of Credit Facility, Amount Outstanding		0
Bank Loans		0
Participating Mortgage Loans, Mortgage Obligations, Amount		0
Financial and Nonfinancial Liabilities, Fair Value Disclosure		0
Estimate of Fair Value Measurement [Member] | Mortgages [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Assets, Fair Value Disclosure		$ 374,856,749
Portion at Other than Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Participating Mortgage Loans, Mortgage Obligations, Amount	$ 17,877,914

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Subsequent Events sub events (Details) - USD ($)		1 Months Ended	3 Months Ended							9 Months Ended
	Oct. 23, 2017	Oct. 31, 2017	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared				$ 0.235	$ 0.235	$ 0.22	$ 0.2025	$ 0.2025	$ 0.1925	$ 0.69	$ 0.5975
Proceeds from Issuance of Preferred Stock and Preference Stock										$ 228,250,765
real estate loans repaid										42,495,392
mortgage debt refinanced										$ 65,000,000	$ 0
Unitsissued [Member]
Subsequent Event [Line Items]
Unitsissuedcumulative		841								12,396
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.25
Subsequent Event [Member] | Unitsissued [Member]
Subsequent Event [Line Items]
Unitsissuedcumulative		31,122
Proceeds from Issuance of Preferred Stock and Preference Stock		$ 28,000,000	$ 800,000
stadium village [Member]
Subsequent Event [Line Items]
real estate loans repaid		13,300,000
haven lubbock [Member]
Subsequent Event [Line Items]
real estate loans repaid		15,600,000
Aldridge at Town Village [Member]
Subsequent Event [Line Items]
mortgage debt refinanced		$ 37,900,000
Mortgage Loans on Real Estate, Interest Rate		4.19%
Summit Crossing [Member]
Subsequent Event [Line Items]
mortgage debt refinanced		$ 39,100,000		$ 24,700,000
Mortgage Loans on Real Estate, Interest Rate		3.99%