Subsequent Events

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On October 20, 2019, a tornado impacted the North Dallas area.  One of the Company’s properties, Preston Oaks, was severely damaged, is currently not operational, and is not expected to be available for occupancy in the near term. At September 30, 2019 the property had a net book value of approximately $28.3 million and generated approximately $1.7 million and $2.0 million in NOI during the nine months ended September 30, 2019 and the twelve months ended December 31, 2018, respectively.  The Company currently anticipates that it could take up to 18 months to reconstruct the property.  The Company expects that its property and business interruption claims will substantially cover both the cost to return the property to its original condition and the recovery of lost income.  However, the Company can give no assurances as to the timing of payments and final resolution of the claim. An impairment will be recognized in the fourth quarter to the extent the net book value of the damaged property exceeds the anticipated proceeds from insurance.  The Company expects to record income for covered business interruption insurance recoveries in the period in which the settlement is reached and all contingencies are satisfied, which could result in business interruption recoveries being recorded in a period after which the Company experiences lost revenue from the damaged property.