Summary of Significant Accounting Policies (Policies) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 | ||
| Accounting Policies [Abstract] | ||
| Basis of Presentation and Significant Accounting Policies [Text Block] |
Basis of presentation The accompanying financial statements are unaudited and include the accounts of the Company, including the Operating Partnership and its wholly-owned subsidiaries, and the interests in the Operating Partnership held by the LTIP unit holders, which the Operating Partnership has control over and therefore consolidates. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited financial statements and notes thereto for the fiscal year ended December 31, 2016. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the financial statements for the interim periods have been made. |
|
| Consolidation, Policy [Policy Text Block] |
Consolidation Policy The accompanying consolidated financial statements include the accounts of the Company, including the Operating Partnership and its wholly-owned subsidiaries, and the interests in the Operating Partnership held by the LTIP unit holders, which the Operating Partnership has control over and therefore consolidates. These LTIP units represent “noncontrolling interests” and have no value as of June 30, 2017 as they have not been converted into OP Units and therefore did not participate in the Company’s consolidated net loss. At the time when there is value associated with the noncontrolling interests, the Company will classify such interests as a component of consolidated equity, separate from the Company’s total stockholder’s equity on its Consolidated Balance Sheets. Additionally, net income or loss will be allocated to noncontrolling interests based on their respective ownership percentage of the Operating Partnership. All material intercompany balances and transactions between the Company and its subsidiaries have been eliminated. |
|
| Use of Estimates, Policy [Policy Text Block] |
Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and footnotes. Actual results could differ from those estimates. |
|
| Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] |
Restricted Cash The restricted cash balance as of June 30, 2017 and December 31, 2016 was $2,291,080 and $941,344, respectively, an increase of $1,349,736. The restricted cash balance as of June 30, 2017 consisted of $211,464 of cash required by a third party lender to be held by the Company as a reserve for debt service, $1,619,659 in security deposits received from facility tenants at the inception of their leases, and $459,957 in funds held by the Company from certain of its tenants that the Company collected to pay specific tenant expenses, such as real estate taxes and in some cases insurance, on the tenant’s behalf. The restricted cash balance as of December 31, 2016 consisted of $383,265 of cash required by a third party lender to be held by the Company as a reserve for debt service, $319,500 in a security deposit received from the Plano Facility tenant at the inception of its lease, and $238,579 in funds held by the Company from certain of its tenants that the Company collected to pay specific tenant expenses. The $1,349,736 increase during the six months ended June 30, 2017 resulted from an aggregate increase of $1,521,537 in tenant security deposits derived from acquisitions during the six-month period ended June 30, 2017 and funds held by the Company to pay specific tenant expenses, partially offset by a decrease of $171,801 in funds required to be held by the Company by a third party lender. |
|
| Receivables, Policy [Policy Text Block] |
Tenant Receivables The tenant receivable balance as of June 30, 2017 and December 31, 2016 was $534,484 and $212,435, respectively, an increase of $322,049. The balance as of June 30, 2017 consisted of $167,498 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,781 in other tenant-related receivables, and $365,205 in funds owed by certain of the Company’s tenants for amounts the Company collects to pay specific tenant expenses, such as real estate taxes and in some cases insurance, on the tenants’ behalf. The balance as of December 31, 2016 consisted of $28,599 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $22,323 in other tenant related receivables, and $161,513 in funds owed by certain of the Company’s tenants for amounts the Company collects to pay specific tenant expenses, such as real estate taxes and in some cases insurance, on the tenants’ behalf. |
|
| Escrow Deposits [Policy Text Block] |
Escrow Deposits Escrow deposits include funds held in escrow to be used for the acquisition of properties in the future and for the payment of taxes, insurance, and other amounts as stipulated by the Company’s Cantor Loan, as hereinafter defined. The escrow balance as of June 30, 2017 and December 31, 2016 was $979,709 and $1,212,177, respectively, a decrease of $232,468. This decrease resulted from a decrease of $249,448 of funds held in the escrow account to be used to acquire facilities in the future, partially offset by an increase of $16,980 in deposits that were required to be held in escrow related to the Cantor Loan. |
|
| Deferred Assets [Policy Text Block] |
Deferred Assets The deferred assets balance as of June 30, 2017 and December 31, 2016 was $1,867,010 and $704,537, respectively, an increase of $1,162,473. The balance as of June 30, 2017 consisted of $1,833,858 in deferred rent receivables resulting from the straight lining of revenue recognized for applicable tenant leases and the remaining $33,152 represented other deferred costs. The entire $704,537 balance as of December 31, 2016 consisted of deferred rent receivables. The increase in deferred rent receivables as of June 30, 2017 resulted from the facilities that were acquired during the six months ended June 30, 2017 that had leases that required the straight lining of revenue. Additionally, during the six months ended June 30, 2017, the Company incurred $394,092 in specific incremental costs directly attributable to the follow-on offering of its equity securities, of which $219,767 were paid in cash (and netted against the proceeds received from the offering) and the remaining $174,325 were accrued as of June 30, 2017. Deferral of these incremental costs is in accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 340, Other Assets and Deferred Costs. Also in accordance with the provisions of ASC Topic 340, upon the completion of the Company’s follow-on offering on June 30, 2017, the $394,092 total deferred incremental cost balance was reclassified from the deferred asset balance as a reduction of the Company’s additional paid-in capital balance in its accompanying Consolidated Balance Sheets. |
|
| Other Assets [Policy Text Block] |
Other Assets Costs that are incurred prior to the completion of an acquisition are capitalized if all of the following conditions are met: (a) the costs are directly identifiable with the specific property, (b) the costs would be capitalized if the property were already acquired, and (c) acquisition of the property is probable. These costs are included with the value of the acquired property upon completion of the acquisition. The costs will be charged to expense when it is probable that the acquisition will not be completed. The balance in this account was $88,695 and $140,374 as of June 30, 2017 and December 31, 2016, respectively, a decrease of $51,679. This decrease resulted from $120,691 of costs that were reclassified to the asset value of facilities when the respective acquisitions were completed and $5,450 of costs charged to expense when it became probable that an acquisition would not be completed, partially offset by an increase resulting from additional capitalized costs incurred of $74,462, which were accrued and not yet paid as of June 30, 2017. |
|
| Security Deposit Liability [Policy Text Block] |
Security Deposits and Other The security deposits and other liability balance as of June 30, 2017 and December 31, 2016 was $2,444,842 and $719,592, respectively, an increase of $1,725,250. This increase resulted primarily from an increase in security deposits of $1,300,180 that were required at the inception of the lease from several of the facilities that were acquired during the six months ended June 30, 2017 (the Great Bend facility represented approximately $1,100,000 of the increase) as well as from an increase of $425,070 in tenant funds that the Company will use to pay for certain of its tenants’ expenses, such as real estate taxes and in some cases insurance, on the tenants’ behalf. |
|
| Prior Period Adjustment [Policy Text Block] |
Prior Period Adjustment
In the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 that was filed with the SEC on May 11, 2017, approximately $1.2 million of costs incurred in connection with the Company’s amended revolving credit facility were erroneously expensed and included in the General and Administrative line item within the Company’s Consolidated Statement of Operations for the three months ended March 31, 2017. The Company corrected this error by removing the approximately $1.2 million from expense and capitalizing it as deferred financing costs on the Company’s Consolidated Balance Sheet as of June 30, 2017. Based upon evaluation and consideration of provisions under ASC Topic 250 Accounting Changes and Error Corrections, that incorporates SEC Staff Accounting Bulletin (SAB) No. 99 - Materiality, the Company determined that the impact of the error and its subsequent correction as described above, did not have a material impact on previously issued financial statements for the quarter ended March 31, 2017. The Company’s Consolidated Statements of Operations for the three and six months ended June 30, 2017 and its Consolidated Balance Sheet as of June 30, 2017 are properly stated. |