Real Estate Assets

MF Properties

To facilitate its investment strategy of acquiring additional mortgage revenue bonds secured by MF Properties, the Company has acquired through its various subsidiaries 99% limited partner positions in two limited partnerships and 100% member positions in six limited liability companies that own the MF Properties. The financial statements of these properties are consolidated with those of the Company. The general partners of these partnerships are unaffiliated parties and their 1% ownership interest in these limited partnerships is reflected in the Company’s condensed consolidated financial statements as noncontrolling interests.

Recent Transactions

On March 30, 2015, a commercial purchase agreement was executed for The Colonial, an MF Property, which is expected to be completed before the end of the second quarter of 2015. The projected proceeds from the sale of the property are expected to be approximately $10.7 million, which is greater than the total assets value of approximately $7.3 million. The Colonial property’s material financial statement components are reported in the condensed consolidated financial statements as follows:



Financial Statement Descriptions	Amount
Material Balance Sheet Components
Net real estate assets	$	7,126,604
Mortgage payable	$	7,476,799

Material Statement of Operations Components
Property revenues	$	449,100
Real estate operating expenses	$	256,988
Depreciation and amortization expenses	$	214,519
Net loss	$	(98,156	)

The Company had the following investments in MF Properties as of March 31, 2015 and December 31, 2014:



MF Properties
Property Name	Location	Number of Units	Land and Land Improvements		Buildings and Improvements		Carrying Value at March 31, 2015
Arboretum	Omaha, NE	145	$	1,748,502	$	19,228,701	$	20,977,203
Eagle Village	Evansville, IN	511	567,880		12,479,357		13,047,237
Glynn Place	Brunswick, GA	128	743,996		4,945,091		5,689,087
Meadowview	Highland Heights, KY	230	688,539		5,482,068		6,170,607
Residences of DeCordova	Granbury, TX	110	1,137,832		8,015,812		9,153,644
Residences of Weatherford	Weatherford, TX	76	1,942,229		5,728,977		7,671,206
The 50/50	Lincoln, NE	475	—		32,820,776		32,820,776
The Colonial	Omaha, NE	258	1,180,058		7,855,899		9,035,957
Woodland Park	Topeka, KS	236	1,265,160		14,186,285		15,451,445
							120,017,162
Less accumulated depreciation (depreciation expense of approximately $1.5 million in 2015)							(15,513,016		)
Balance at March 31, 2015							$	104,504,146



MF Properties
Property Name	Location	Number of Units	Land and Land Improvements		Buildings and Improvements		Carrying Value at December 31, 2014
Arboretum	Omaha, NE	145	$	1,748,502	$	19,216,623	$	20,965,125
Eagle Village	Evansville, IN	511	567,880		12,472,151		13,040,031
Glynn Place	Brunswick, GA	128	743,996		4,995,658		5,739,654
Meadowview	Highland Heights, KY	224	688,539		5,479,342		6,167,881
Residences of DeCordova	Granbury, TX	110	1,137,832		8,007,390		9,145,222
Residences of Weatherford	Weatherford, TX	76	1,942,229		5,724,456		7,666,685
The 50/50	Lincoln, NE	475	—		32,820,776		32,820,776
The Colonial	Omaha, NE	258	1,180,058		7,822,681		9,002,739
Woodland Park	Topeka, KS	236	1,265,160		14,167,096		15,432,256
							119,980,369
Less accumulated depreciation (depreciation expense of approximately $4.8 million in 2014)							(14,108,154		)
Balance at December 31, 2014							$	105,872,215

Consolidated VIE Properties

In addition to the MF Properties, the Company consolidates the assets, liabilities and results of operations of the Consolidated VIEs in accordance with the accounting guidance on consolidations. Although the assets of these VIEs are consolidated, the Company has no ownership interest in the VIEs other than to the extent they serve as collateral for the mortgage revenue bonds owned by the Partnership. The results of operations of those properties are recorded by the Company in consolidation and are included in “Unallocated loss of Consolidated Property VIEs”. No net income or loss from these properties accrue to the unitholders or the general partner.

The Company consolidated the following properties owned by Consolidated VIEs in continuing operations as of March 31, 2015 and December 31, 2014:



Consolidated VIEs
Property Name	Location	Number of Units	Land and Improvements		Buildings and Improvements		Carrying Value at March 31, 2015
Bent Tree Apartments	Columbia, SC	232	$	986,000	$	12,348,139	$	13,334,139
Fairmont Oaks Apartments	Gainesville, FL	178	850,400		8,909,337		9,759,737
							23,093,876
Less accumulated depreciation (depreciation expense of approximately $239,000 in 2015)							(10,814,129		)
Balance at March 31, 2015							$	12,279,747
Consolidated VIEs
Property Name	Location	Number of Units	Land and Improvements		Buildings and Improvements		Carrying Value at December 31, 2014
Bent Tree Apartments	Columbia, SC	232	$	986,000	$	12,303,982	$	13,289,982
Fairmont Oaks Apartments	Gainesville, FL	178	850,400		8,900,066		9,750,466
							23,040,448
Less accumulated depreciation (depreciation expense of approximately $940,000 in 2014)							(10,583,646		)
Balance at December 31, 2014							$	12,456,802

Land Held for Investment and Development

At March 31, 2015, the Company reported approximately $4.5 million as land held for investment. The Company plans to develop this land into rental properties.