SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION

SCHEDULE III

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION

December 31, 2019

(dollar amounts in thousands)


					Initial Cost to Company												Gross Amount at which Carried at Close of Period
Description	Location	Ownership Percent		Encumbrances	Land		Building and Improvements ⁽¹⁾		Total		Cost Capitalized Subsequent to Acquisition ⁽²⁾		Land		Building and Improvements ⁽¹⁾		Total ⁽³⁾		Accumulated Depreciation and Amortization		Original Date of Construction		Date Acquired or Foreclosed on
Properties Held for Investment
Richardson Portfolio:
Palisades Central I	Richardson, TX	90.0%	$	⁽⁴⁾	$	1,037	$	8,628	$	9,665	$	3,630	$	1,037	$	12,258	$	13,295	$	(3,565)	1980		11/23/2011
Palisades Central II	Richardson, TX	90.0%		⁽⁴⁾	810		17,117		17,927		3,889		810		21,006		21,816		(5,486)		1985		11/23/2011
Greenway I	Richardson, TX	90.0%		⁽⁴⁾	561		1,170		1,731		977		561		2,147		2,708		(901)		1983		11/23/2011
Greenway III	Richardson, TX	90.0%		⁽⁴⁾	702		4,083		4,785		(318)		702		3,765		4,467		(1,321)		1983		11/23/2011
Undeveloped Land	Richardson, TX	90.0%		—	1,997		—		1,997		1,137		3,134		—		3,134		—		N/A		11/23/2011
Total Richardson Portfolio				36,000	5,107		30,998		36,105		9,315		6,244		39,176		45,420		(11,273)
Park Highlands ⁽⁵⁾	North Las Vegas, NV	⁽⁵⁾		—	17,066		—		17,066		17,101		34,167		—		34,167		—		N/A		12/30/2011
Park Centre	Austin, TX	100.0%		21,970	3,251		27,941		31,192		6,511		3,251		34,452		37,703		(6,334)		2000		03/28/2013
1180 Raymond	Newark, NJ	100.0%		30,250	8,292		37,651		45,943		1,477		8,292		39,128		47,420		(7,897)		1929		08/20/2013
Park Highlands II ⁽⁵⁾	North Las Vegas, NV	⁽⁵⁾		—	20,118		—		20,118		6,960		27,078		—		27,078		—		N/A		12/10/2013
Richardson Land II	Richardson, TX	90.0%		—	3,096		—		3,096		322		3,418		—		3,418		—		N/A		09/04/2014
Crown Pointe	Dunwoody, GA	100.0%		51,171	22,590		62,610		85,200		10,326		22,590		72,936		95,526		(11,753)		1985/1989		02/14/2017
The Marq	Irving, TX	100.0%		53,408	10,387		75,878		86,265		9,366		10,387		85,244		95,631		(7,119)		1972		03/01/2018
City Tower	Minneapolis, MN	100.0%		89,000	13,930		136,068		149,998		7,259		13,930		143,327		157,257		(12,823)		1988		03/06/2018
Eight & Nine Corporate Centre	Orange, CA	100.0%		43,880	17,401		58,794		76,195		3,373		17,401		62,167		79,568		(4,356)		2007		06/08/2018
Georgia 400 Center	Alpharetta, GA	100.0%		59,690	11,400		72,000		83,400		8,134		11,431		80,103		91,534		(3,053)		2001		05/23/2019
Single-Family Homes Portfolio:
Birmingham Homes	Birmingham, AL	100.0%		⁽⁶⁾	2,442		11,133		13,575		75		2,444		11,206		13,650		(90)		Various		11/04/2019
Houston Homes	Houston, TX	100.0%		⁽⁶⁾	6,157		22,855		29,012		183		6,154		23,041		29,195		(191)		Various		11/04/2019
Jacksonville Homes	Jacksonville, FL	100.0%		⁽⁶⁾	2,986		24,236		27,222		175		2,986		24,411		27,397		(210)		Various		11/04/2019
Memphis Homes	Memphis, TN	100.0%		⁽⁶⁾	2,679		15,767		18,446		163		2,679		15,930		18,609		(131)		Various		11/04/2019
Atlanta Homes	Atlanta, GA	100.0%		⁽⁶⁾	783		3,870		4,653		34		783		3,904		4,687		(38)		Various		11/04/2019
Oklahoma Homes	Oklahoma City, OK	100.0%		⁽⁶⁾	2,082		14,423		16,505		95		2,082		14,518		16,600		(113)		Various		11/04/2019
Total Single-Family Homes Portfolio				61,900	17,129		92,284		109,413		725		17,128		93,010		110,138		(773)
		Total Properties					$	149,767	$	594,224	$	743,991	$	80,869	$	175,317	$	649,543	$	824,860	$	(65,381)

____________________

⁽¹⁾ Building and improvements includes tenant origination and absorption costs.

⁽²⁾ Costs capitalized subsequent to acquisition is net of write-offs of fully depreciated/amortized assets.

⁽³⁾ The aggregate cost of real estate for federal income tax purposes was $940.1 million (unaudited) as of December 31, 2019.

⁽⁴⁾ As of December 31, 2019, $36.0 million of debt was outstanding secured by the Richardson Portfolio.

⁽⁵⁾ The Company owns 100% of the common members’ equity of Park Highlands and Park Highlands II. On September 7, 2016 and January 8, 2019, a subsidiary of the Company that owns a portion of Park Highlands and Park Highlands II, sold 820 units of 10% Class A non-voting preferred membership units for $0.8 million and 1,927 units of 10% Class A2 non-voting preferred membership units for $1.9 million, respectively, to accredited investors. The amount of the Class A and A2 non-voting preferred membership units raised, net of offering costs, is included in other liabilities on the accompanying consolidated balance sheets.

⁽⁶⁾ The single-family homes portfolio, in aggregate are under encumbrance of $61.9 million.

SCHEDULE III

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION AND AMORTIZATION (CONTINUED)

December 31, 2019

(dollar amounts in thousands)


	2019		2018		2017
Real Estate ⁽¹⁾:
Balance at the beginning of the year	$	730,962	$	574,684	$	1,227,207
Acquisitions	200,918		312,457		170,505
Improvements	34,435		31,818		37,219
Write-off of fully depreciated and fully amortized assets	(1,060)		(7,329)		(18,735)
Loss due to property damages	—		(964)		(668)
Sales	(140,395)		(178,068)		(664,114)
Reimbursement of construction costs	—		(1,636)		—
Deconsolidation	—		—		(176,730)
Balance at the end of the year	$	824,860	$	730,962	$	574,684

Accumulated depreciation and amortization ⁽¹⁾:
Balance at the beginning of the year	$	49,842	$	41,817	$	120,176
Depreciation and amortization expense	31,961		32,661		48,994
Write-off of fully depreciated and fully amortized assets	(1,060)		(7,329)		(18,735)
Sales	(15,362)		(17,307)		(102,474)
Deconsolidation	—		—		(6,144)
Balance at the end of the year	$	65,381	$	49,842	$	41,817

____________________

⁽¹⁾ Amounts include real estate held for sale.