Investments in Real Estate

12 Months Ended

Dec. 31, 2016

Banking And Thrift [Abstract]

Investments in Real Estate

NOTE 4: Investments in Real Estate

As of December 31, 2016, our investments in real estate and real estate held for sale consisted of 46 apartment properties (unaudited). The table below summarizes our investments in real estate:

	2016			2015			DepreciableLives (In years)
Land	$	165,120		$	190,585		-
Building		1,066,611			1,168,453		40
Furniture, fixtures and equipment		17,625			12,977		5-10
Total investment in real estate	$	1,249,356		$	1,372,015
Accumulated depreciation		(51,511	)		(39,638	)
Investments in real estate, net	$	1,197,845		$	1,332,377

As of December 31, 2016, we had investments in real estate valued at $60,786 classified as held for sale.

Acquisitions

On May 1, 2015 we acquired a 236 unit (unaudited) residential community located in Indianapolis, Indiana known as Bayview Club. Weacquired the property for an aggregate purchase price of$25,250 exclusive of closing costs.

On September 17, 2015 the merger with TSRE closed, as part of this merger we acquired 19 properties containing 4,989 units (unaudited). Net assets acquired was $328,240 and fair value of the consideration transferred totaled $263,636, consisting of $109,857 of common shares and $13,998 of IRT OP units, and cash consideration of $139,781. As the fair value of the net assets acquired exceeded the fair value of the consideration, we recognized a gain from a bargain purchase of $64,604.

During the first quarter of 2016, we received additional information regarding estimates we had made for certain accrued expenses related to our acquisition of Trade Street Residential, or the TSRE acquisition, that was completed on September 17, 2015. This information led to an increase in the fair value of the net assets we acquired of $91, which was recognized during the year ended December 31, 2016. During the third quarter of 2016, we finalized our purchase accounting process related to the TSRE acquisition. As part of this process, we received additional information regarding estimates we had made for certain accrued expenses related to the TSRE acquisition which led to an increase in fair value of the net assets we acquired of $641, which we recognized during the year ended December 31, 2016.

On February 27, 2017, we acquired a 216 unit (unaudited) residential community located in Tampa, Florida for a purchase price of $29,750 exclusive of closing costs.

 Dispositions

During the year ended December 31, 2016 we recognized a $9 loss related to the sale of a multifamily property which occurred in the prior year as we settled remaining amounts with buyers.  The below table summarizes the dispositions for the year ended December 31, 2016 and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale:

						Net income (loss) allocable to common shares
Property Name	Date of Sale	Sale Price		Gain (loss) on sale		For the Year Ended December 31, 2016
Cumberland Glen (1)	02/18/2016	$	18,000	$	2,452	$	35
Belle Creek	04/07/2016		23,000		14,191		252
Tresa	05/05/2016		47,000		15,142		354
Total		$	88,000	$	31,785	$	641

(1) Gain (loss) on sale related to this property includes a defeasance premium of $1,343.

On December 22, 2015, we disposed of one multi-family real estate property for a total sale price of $33,600. We recorded a gain on the sale of this asset of $6,420.

On October 15, 2015, we sold a parcel of land acquired in the TSRE merger for $3,350.  After considering actual closing costs, we recognized a loss on the sale of this asset of $8.