Non-controlling Interests

6 Months Ended

Jun. 30, 2015

Noncontrolling Interest [Abstract]

Non-Controlling Interests

Non-Controlling Interests

The Company is the sole general partner of the OP and holds the majority of OP units. As of June 30, 2015 and December 31, 2014, the Advisor held 4,178,090 and 4,270,841 OP units, respectively. As of June 30, 2015 and December 31, 2014, the SLP held 8,880,579 unvested LTIP units. There were $0.8 million and $1.4 million, respectively, of distributions paid to OP unit and LTIP unit holders during the three and six months ended June 30, 2015. There were $0.1 million of distributions paid to OP unit and LTIP unit holders during the three and six months ended June 30, 2014.

A holder of OP units has the right to distributions and has the right convert OP units for the cash value of a corresponding number of shares of the Company's common stock or a corresponding number of shares of the Company's common stock, at the Company's election, in accordance with the limited partnership agreement of the OP. The remaining rights of the holders of OP units are limited, however, and do not include the ability to replace the general partner or to approve the sale, purchase or refinancing of the OP's assets.

On May 13, 2015, 92,751 OP units were redeemed for newly issued shares of the Company's common stock and reclassified from non-controlling interest to stockholders' equity.

The Company is the controlling member of the limited liability company that owns the 163 Washington Avenue Apartments, acquired in September 2012. The Company has the sole voting rights under the operating agreement of this limited liability company. The non-controlling members' aggregate initial investment balance of $0.5 million will be reduced by the dividends paid to each non-controlling member. No dividends were paid during the three and six months ended June 30, 2015 or 2014.