REAL ESTATE ACTIVITY

9 Months Ended

Sep. 30, 2017

Real Estate [Abstract]

REAL ESTATE ACTIVITY

NOTE 2. REAL ESTATE ACTIVITY

Below is a summary of the real estate owned as of September 30, 2017 (dollars in thousands):

Apartments	$	695,746
Apartments under construction		77,537
Commercial properties		221,493
Land held for development		79,331
Real estate subject to sales contract		48,898
Total real estate	$	1,123,005
Less accumulated depreciation		(183,762	)
Total real estate, net of depreciation	$	939,243

The highlights of our significant real estate transactions for the nine months ended September 30, 2017 are discussed below.

Purchases

During the nine months ended September 30, 2017, TCI acquired three land parcels for development for a total purchase price of $11.4 million, adding 29.7 acres to the development portfolio.

Sales

During the nine months ended September 30, 2017, TCI sold a combined 14.16 acres of land located in Texas to independent third parties for a total sales price of $2.4 million. We recorded an aggregate gain of $0.5 million from the land sales.

In addition, during the nine months ended September 30, 2017, we recognized deferred gains of $12.7 million and $0.5 million related to prior years’ sales of two income-producing properties and some land parcels, respectively.

As of September 30, 2017, the Company has approximately 91 acres of land, at various locations that were sold to related parties in multiple transactions. These transactions are treated as “subject to sales contract” on the Consolidated Balance Sheets. Due to the related party nature of the transactions, TCI has deferred the recording of the sales in accordance with ASC 360-20.

We continue to invest in the development of multifamily properties. During the nine months ended September 30, 2017, we have disbursed $41.4 million related to the construction or predevelopment of various apartment complexes and capitalized $1.6 million of interest costs.