Real Estate Assets (Notes)

12 Months Ended

Dec. 31, 2019

Real Estate Assets [Abstract]

Business Combination Disclosure

Real Estate Assets

The Company's real estate assets consisted of:

	As of:
	December 31, 2019		December 31, 2018
Multifamily communities:
Properties (1)	34	(1, 2)	32
Units	10,245		9,768
New Market Properties:
Properties	52	(2)	45
Gross leasable area (square feet) (3)	6,041,629		4,730,695
Student housing properties:
Properties	8	(2, 4)	7
Units	2,011		1,679
Beds	6,095		5,208
Preferred Office Properties:
Properties	10	(2)	7
Rentable square feet	3,204,000		2,578,000
(1) The acquired second phases of CityPark View and Crosstown Walk communities are managed in combination with the initial phases and so together are considered a single property, as is the Regent at Lenox Village within the Lenox Portfolio.
(2) One multifamily community, two student housing properties, two grocery-anchored shopping centers and two office buildings are owned through consolidated joint ventures.
(3) The Company also owns approximately 47,600 square feet of gross leasable area of ground floor retail space which is embedded within the Lenox Portfolio and is not included in the totals above for New Market Properties.
(4) Six of our student housing properties were under contract for sale at December 31, 2019.

Multifamily communities sold

The Company had no sales of multifamily community assets during the year ended December 31, 2019.

On December 11, 2018, the Company closed on the sale of its 192-unit multifamily community in Austin, Texas, or McNeil Ranch, to an unrelated third party for a purchase price of $30.0 million, exclusive of closing costs and resulting in a gain of $13.9 million. McNeil Ranch contributed approximately $0.2 million of net income to the consolidated operating results of the Company for the year ended December 31, 2018.

On October 23, 2018, the Company closed on the sale of its 364-unit multifamily community in Nashville, Tennessee, or Stoneridge Farms at the Hunt Club, to an unrelated third party for a purchase price of $55.0 million, exclusive of closing costs and resulting in a gain of $16.8 million. Stoneridge Farms at the Hunt Club contributed approximately $0.6 million of net income to the consolidated operating results of the Company for the year ended December 31, 2018.

On September 28, 2018, the Company closed on the sale of its 216-unit multifamily community in Philadelphia, Pennsylvania, or Stone Rise, to an unrelated third party for a purchase price of approximately $42.5 million, exclusive of closing costs and resulting in a gain of $18.6 million. Stone Rise contributed approximately $0.5 million of net income to the consolidated operating results of the Company for the year ended December 31, 2018.

On March 20, 2018, the Company closed on the sale of its 328-unit multifamily community in Raleigh, North Carolina, or Lake Cameron, to an unrelated third party for a purchase price of approximately $43.5 million, exclusive of closing costs, and debt defeasance-related costs and resulted in a gain of $20.4 million. Lake Cameron contributed approximately $0.2 million of net income to the consolidated operating results of the Company for the year ended December 31, 2018.

Each of the gains recorded for these sales transactions were net of disposition expenses and debt defeasance-related costs and prepayment premiums, as described in Note 10.

The carrying amounts of the significant assets and liabilities of the disposed properties at the dates of sale were:

	McNeil Ranch			Stoneridge Farms			Stone Rise			Lake Cameron
(In thousands)	December 11, 2018			October 23, 2018			September 28, 2018			March 20, 2018
Real estate assets:
Land	$	2,100		$	3,026		$	6,950		$	4,000
Building and improvements	16,300			35,740			18,860			21,519
Furniture, fixtures and equipment	2,096			4,305			3,292			3,687
Accumulated depreciation	(5,252		)	(6,601		)	(6,722		)	(7,220		)
Total assets, net	$	15,244		$	36,470		$	22,380		$	21,986
Liabilities:
Mortgage note payable	$	13,418		$	25,626		$	23,520		$	19,736

Multifamily communities acquired

During the years ended December 31, 2019 and 2018, the Company completed the acquisition of the following multifamily communities:

Acquisition date	Property	Location	Units
8/8/2019	Artisan at Viera	Melbourne, Florida	259
9/18/2019	Five Oaks at Westchase	Tampa, Florida	218
			477
1/9/2018	The Lux at Sorrel	Jacksonville, Florida	265
2/28/2018	Green Park	Atlanta, Georgia	310
9/27/2018	The Lodge at Hidden River	Tampa, Florida	300
11/9/2018	Vestavia Reserve	Birmingham, Alabama	272
11/15/2018	CityPark View South	Charlotte, North Carolina	200
			1,347

The aggregate purchase prices of the multifamily acquisitions were approximately $117.0 million and $258.6 million for the years ended December 31, 2019 and 2018 respectively, exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

	Multifamily Communities acquired during the years ended December 31,
(In thousands, except amortization period data)	2019			2018
Land	$	9,264		$	28,365
Buildings and improvements	87,098			181,931
Furniture, fixtures and equipment	19,806			44,474
Lease intangibles	2,647			8,257
Prepaids & other assets	75			569
Accrued taxes	(477		)	(684		)
Security deposits, prepaid rents, and other liabilities	(118		)	(494		)
Net assets acquired	$	118,295		$	262,418
Cash paid	$	78,295		$	87,592
Mortgage debt, net	40,000			174,826
Total consideration	$	118,295		$	262,418
Year ended December 31, 2019:
Revenue	$	2,967		$	23,734
Net income (loss)	$	(2,074	)	$	(10,489	)
Year ended December 31, 2018:
Revenue	$	—		$	11,533
Net income (loss)	$	—		$	(8,704	)
Capitalized acquisition costs incurred by the Company	$	1,771		$	4,412
Acquisition costs paid to related party (included above)	$	1,216		$	2,615
Remaining amortization period of intangible
assets and liabilities (months)	7.1			0

The Company allocated the purchase prices and capitalized acquisition costs to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocations were based upon the Company's best estimates of the fair values of the acquired assets and liabilities.

	Student housing properties acquired during the years ended December 31,
(In thousands, except amortization period data)	2019			2018
Land	$	7,289		$	23,149
Buildings and improvements	68,163			146,856
Furniture, fixtures and equipment	16,966			27,211
Lease intangibles	983			2,494
Below market leases	—			(54		)
Prepaids & other assets	—			309
Accrued taxes	(158		)	(942		)
Security deposits, prepaid rents, and other liabilities	(2,579		)	(720		)
Net assets acquired	$	90,664		$	198,303
Cash paid	$	2,717		$	92,212
Satisfaction of loan receivables	46,397			—
Mortgage debt, net	41,550			106,091
Total consideration	$	90,664		$	198,303
Year ended December 31, 2019:
Revenue	$	5,532		$	17,599
Net income (loss)	$	(2,946	)	$	(7,010	)
Year ended December 31, 2018:
Revenue	$	—		$	9,882
Net income (loss)	$	—		$	(7,797	)
Capitalized acquisition costs incurred by the Company	$	1,016		$	2,555
Acquisition costs to related party	$	936		$	1,970
Remaining amortization period of intangible
assets and liabilities (months)	0			0

New Market Properties assets acquired

During the years ended December 31, 2019 and 2018, the Company completed the acquisition of the following grocery-anchored shopping centers:

Acquisition date	Property	Location	Gross leasable area (square feet)
1/17/2019	Gayton Crossing	Richmond, Virginia	158,316
5/28/2019	Free State Shopping Center	Washington, D.C.	264,152
6/12/2019	Disston Plaza	Tampa - St. Petersburg, Florida	129,150
6/12/2019	Polo Grounds Mall	West Palm Beach, Florida	130,285
8/16/2019	Fairfield Shopping Center (1)	Virginia Beach, Virginia	231,829
11/14/2019	Berry Town Center	Orlando, Florida	99,441
12/19/2019	Hanover Shopping Center (1)	Wilmington, North Carolina	305,346
			1,318,519
4/27/2018	Greensboro Village	Nashville, Tennessee	70,203
4/27/2018	Governors Towne Square	Atlanta, Georgia	68,658
6/26/2018	Neapolitan Way	Naples, Florida	137,580
6/29/2018	Conway Plaza	Orlando, Florida	117,705
7/6/2018	Brawley Commons	Charlotte, North Carolina	122,028
12/21/2018	Hollymead Town Center	Charlottesville, Virginia	158,807
			674,981
(1) Property is owned through a consolidated joint venture.

The aggregate purchase price of the New Market Properties acquisitions for the years ended December 31, 2019 and 2018 was approximately $248.4 million and $158.6 million respectively, exclusive of acquired escrows, security deposits, prepaid assets, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.

The Company allocated the purchase prices to the acquired assets and liabilities based upon their fair values, as shown in the following table. The purchase price allocation was based upon the Company's best estimates of the fair values of the acquired assets and liabilities.

	New Market Properties' acquisitions during the years ended December 31,
(In thousands, except amortization period data)	2019			2018
Land	$	77,612		$	40,793
Buildings and improvements	152,804			99,967
Tenant improvements	11,319			5,862
In-place leases	21,084			11,394
Above market leases	3,098			3,279
Leasing costs	7,216			3,855
Below market leases	(21,028		)	(4,934		)
Other assets	124			247
Security deposits, prepaid rents, and other	(869		)	(1,024		)
Net assets acquired	$	251,360		$	159,439
Cash paid	$	91,422		$	83,906
Mortgage debt	159,938			75,533
Total consideration	$	251,360		$	159,439
Year ended December 31, 2019:
Revenue	$	11,401		$	14,650
Net income (loss)	$	(1,686	)	$	(1,333	)
Year ended December 31, 2018:
Revenue	$	—		$	5,670
Net income (loss)	$	—		$	(1,057	)
Capitalized acquisition costs incurred by the Company	$	5,192		$	2,320
Capitalized acquisition costs paid to related party (included above)	$	2,367		$	1,631
Remaining amortization period of intangible
assets and liabilities (years)	7.9			6.3