Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 13 – Subsequent Events

The Company has performed an evaluation of subsequent events through the date the Company’s consolidated financial statements were issued. No material subsequent events, other than the items disclosed below, have occurred that required recognition or disclosure in these financial statements.

Acquistion of Enders Place

On October 2, 2012, through a wholly-owned subsidiary, the Company entered into a joint venture investment along with Bluerock Special Opportunity + Income Fund III, LLC (“BEMT Co-Investor III”), an affiliate of our Company’s Sponsor, and Waypoint Residential, LLC, an unaffiliated entity, to acquire 198 units of a 220-unit multifamily housing community commonly known as “Enders Place,” located in Orlando, Florida. The Company invested $4,716,846 to acquire a 48.4% indirect interest in the Enders property. For further information refer to the Current Report on Form 8-K as filed with the SEC on October 9, 2012.

Affiliate Working Capital Line of Credit

On October 2, 2012, the Company entered into a working capital line of credit provided by BEMT Co-Investor II and BEMT Co-Investor III, pursuant to which it may borrow up to $12.5 million (the “BEMT Co-Investor LOC”), pursuant to which it made an initial draw of $4.8 million on October 2, 2012 and a subsequent draw of $3.2 million on October 18, 2012. The BEMT Co-Investor LOC has a 6-month term. The maturity date is April 2, 2013, and may be prepaid without penalty. It bears interest compounding monthly at a rate of 30-day LIBOR + 6.00%, subject to a minimum rate of 7.50%, annualized for three months, and thereafter bears interest compounding monthly at a rate of 30-day LIBOR + 6.00%, subject to a minimum rate of 8.50% for the remainder of the term. For further information refer to the Current Report on Form 8-K as filed with the SEC on October 8, 2012.

Acquisition of Berry Hill

On October 18, 2012, through a wholly-owned subsidiary, the Company entered into a joint venture investment along with BEMT Co-Investor III, an affiliate of our Company’s Sponsor, and an affiliate of Stonehenge Real Estate Group, LLC, an unaffiliated entity, to develop a 266-unit, class A, mid-rise apartment community in Nashville, Tennessee, to be known as 23Hundered@Berry Hill. The Company invested $3,788,725 to acquire a 58.575% indirect interest in the Berry Hill development. For further information refer to the Current Report on Form 8-K as filed with the SEC on October 24, 2012.

Status of the Offering

For the period October 1, 2012 through November 5, 2012 the Company sold approximately 77,733 shares of common stock for gross proceeds of $679,141 including issuances through its distribution reinvestment plan.

Distributions Paid

Distributions Declared Daily For Each Day in Month Listed	Date Paid	Total Distribution		Cash Distribution		Dollar amount of Shares Issued pursuant to the Distribution Reinvestment plan
September 2012	October 1, 2012	$	115,533	$	71,665	$	43,868
October 2012	November 1, 2012	$	122,384	$	75,906	$	46,478

Distributions Declared

On November 5, 2012, our Board of Directors declared distributions based on daily record dates for the period from January 1, 2012 through March 31, 2013. Distributions payable to each stockholder of record were or will be paid in cash on or before the 15th day of the following month. 

Distributions are calculated based on stockholders of record per day during the period at a rate of $0.00191781 per share per day and equal a daily amount that, if paid each day for a 365-day period, would equal a 7.0% annualized rate based on a purchase price of $10.00 per share.