Residential Real Estate

9 Months Ended

Sep. 30, 2013

Residential Real Estate

Residential Real Estate

7.  Residential Real Estate

During the second quarter of 2012, we began to purchase single family residential homes and non-performing residential loans. At acquisition, a significant portion of the properties were either vacant or had occupants that were not subject to a lease and/or were not paying rent to the previous owner. Upon acquisition, we began actively preparing the properties to be either rented or sold, as applicable. For the three and nine months ended September 30, 2013, we incurred approximately $9.7 million and $31.3 million, respectively, in costs of preparing these properties for their intended use, and such costs were added to our investment basis.

Type	Depreciable Life	Acquisition Cost		Cost Capitalized Subsequent to Acquisition		Accumulated Depreciation		Net Book Value
Building	30 years	$	173,554	$	19,909	$	3,086	$	190,377
Land	—	49,706		—		—		49,706
Furniture & Fixtures	5 years	167		616		105		678
Development Assets (1)	—	291,058		16,203		—		307,261
		$	514,485	$	36,728	$	3,191	$	548,022

(1) Development Assets represent residential properties that are being renovated or otherwise prepared for their intended use, which is either sale or rental. Costs incurred during the development period are capitalized.