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Real Estate Assets Contributions to revenue and net income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Combination, Separately Recognized Transactions [Line Items]      
Revenues $ 451,142 $ 501,185 $ 470,427
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 20,532 $ (181,603) $ (7,458)
Business Combination Disclosure Real Estate Assets
The Company's real estate assets consisted of:
As of:
(unaudited)December 31, 2021December 31, 2020
Residential properties:
Properties (1)
41 
(1, 2)
37 
Units12,052 11,143 
New Market Properties:
Properties
54 
( 2, 3)
54 
Gross leasable area (square feet) (3)
6,210,778 6,208,278 
Preferred Office Properties: (4)
Properties2 9 
Rentable square feet1,072,000 3,169,000 
Land12
Rentable square feet— 35,000 
(1) The acquired second phases of certain communities are managed in combination with the initial phases, and so together are considered a single property.
(2) One multifamily community and two grocery-anchored shopping centers are owned through consolidated joint ventures. One grocery-anchored shopping center is an investment in an unconsolidated joint venture.
(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) Eight of our office properties and the real estate loan investment supporting the 8West office building were sold during the third and fourth quarters 2021.



Impacts of COVID-19 Pandemic

The COVID-19 pandemic that spread throughout the country during 2020 and 2021 impacted earnings for commercial real estate to some degree but has not had a profound widespread negative effect on the valuations of real estate assets. The Company is continuing to monitor the spread and impact of the variants of COVID-19 as well as vaccination rates in its markets. The Company does not consider this event to be a triggering event for purposes of impairment, since overall occupancy rates for the Company’s real estate assets have not materially declined and the Company has continued to collect substantially all rent due. Thus, there is no evidence of declining valuations or a triggering event.
Residential properties acquired

During the years ended December 31, 2021 and 2020, the Company completed the acquisition of the following multifamily communities:
Acquisition datePropertyLocationUnits
2021:
6/30/2021The EllisonAtlanta, Georgia250 
7/8/2021Alleia at PresidioFt. Worth, Texas231 
9/14/2021The AnsonNashville, Tennessee301 
9/16/2021The KingsonFredericksburg, Virginia240 
9/17/2021Chestnut FarmCharlotte, North Carolina256 
1,278 
2020:
3/31/2020Horizon at WiregrassTampa, Florida392 
4/30/2020Parkside at the BeachPanama City Beach, Florida288 
11/2/2020The BlakeOrlando, Florida281 
12/15/2020The MenloJacksonville, Florida332 
1,293 

The aggregate purchase prices of the multifamily acquisitions were approximately $336.1 million and $276.9 million for the acquisitions completed during the years ended December 31, 2021 and 2020 respectively, exclusive of acquired escrows, security deposits, prepaids, capitalized acquisition costs and other miscellaneous assets and assumed liabilities.
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.
Multifamily Communities acquired during the years ended December 31,
(In thousands, except amortization period data)20212020
Land$27,639 $28,074 
Buildings and improvements250,833 194,434 
Furniture, fixtures and equipment51,628 50,170 
Lease intangibles6,989 8,635 
Prepaids & other assets372 354 
Accrued taxes(1,464)(437)
Security deposits, prepaid rents, and other liabilities(831)(742)
Net assets acquired$335,166 $280,488 
Cash paid$89,335 $144,016 
Mortgage debt, net245,831 136,472 
Total consideration$335,166 $280,488 
Year ended December 31, 2021:
Revenue$8,847 $25,162 
Net income (loss)$(5,387)$(7,656)
Year ended December 31, 2020:
Revenue$— $9,328 
Net income (loss)$— $(6,244)
Capitalized acquisition costs incurred by The Company$1,018 $4,370 
Remaining amortization period of intangible assets and liabilities (months)7.10

Multifamily communities sold

On July 19, 2021, the Company closed on the sale of its 369-unit multifamily community in Houston, Texas, or Vineyards, to an unrelated third party for a sales price of approximately $62.0 million, exclusive of closing costs and resulting in a gain of approximately $20.0 million, net of disposition costs that is included in the line entitled Gain on sale of real estate, net on the Company's Consolidated Statements of Operations for the year ended December 31, 2021. Vineyards contributed approximately $0.3 million of net loss to the consolidated operating results of the Company for the year ended December 31, 2021.

The carrying amounts of the significant assets and liabilities of the disposed property at the date of sale were:
(In thousands)Vineyards
Real estate assets:
Land$5,456 
Building and improvements43,437 
Furniture, fixtures and equipment5,218 
Accumulated depreciation(12,879)
Total assets, net$41,232 
Liabilities:
Mortgage note payable$32,291 
On November 12, 2020, the Company closed on the sale of its 395-unit multifamily community in San Antonio, Texas, or Avenues at Creekside, to an unrelated third party for a sales price of approximately $62.7 million, exclusive of closing costs and resulting in a gain of approximately $17.3 million, net of disposition costs. Avenues at Creekside contributed approximately $0.3 million of net income to the consolidated operating results of the Company for the year ended December 31, 2020.
Student housing properties sold

On November 3, 2020 the Company sold all eight of its student housing communities and one real estate loan investment to an unrelated third party for an aggregate purchase price of $478.7 million exclusive of closing costs and resulting in a gain of $2.9 million. The disposed assets collectively contributed approximately $5.3 million of net loss to the consolidated operating results of the Company for the year ended December 31, 2020.


New Market Properties assets acquired

The Company acquired no grocery-anchored shopping centers during 2021. During the year ended December 31, 2020, the Company completed the acquisition of the following grocery-anchored shopping centers:
Acquisition datePropertyLocationGross leasable area (square feet)
1/29/2020Wakefield CrossingRaleigh, North Carolina75,927 
3/19/2020Midway MarketDallas, Texas85,599 
161,526 

The aggregate purchase price of the New Market Properties acquisitions for the year ended December 31, 2020 was approximately $27.7 million, 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 and was based upon the Company's best estimates of the fair values of the acquired assets and liabilities. The Company did not acquire any grocery-anchored shopping centers during 2021.



Preferred Office Properties assets sold

During the year ended December 31, 2021, the Company completed the disposition of the following office buildings:
DatePropertyLocation
7/29/2021Galleria 75Atlanta, Georgia
7/29/2021150 FayettevilleRaleigh, North Carolina
7/29/2021Capitol TowersCharlotte, North Carolina
7/29/2021CAPTRUST TowerRaleigh, North Carolina
7/29/2021Morrocroft CentreCharlotte, North Carolina
9/8/2021Armour Yards PortfolioAtlanta, Georgia
11/12/2021Brookwood CenterBirmingham, Alabama

The aggregate sales price of the disposed office properties was approximately $767.0 million and resulted in a gain on sale of approximately $0.4 million, net of disposition costs and is included in the line entitled Gain on sale of real estate, net on the
Company's Consolidated Statements of Operations for the year ended December 31, 2021. The disposal group was a component of the Company's Preferred Office Properties segment and contributed approximately $3,000,000.0 million of net income to the consolidated operating results of the Company for the year ended December 31, 2021. The carrying amounts of the significant assets and liabilities of the disposed properties at the dates of sale were:

(In thousands)Preferred Office Properties' assets sold during the year ended December 31, 2021
Real estate assets:
Land$75,829 
Building and improvements665,169 
Furniture, fixtures and equipment87 
Lease intangibles69,098 
Accumulated depreciation(82,124)
Total assets, net$728,059 
Liabilities:
Mortgage notes payable$465,886 

The Company had no sales of Preferred Office Properties' assets during the year ended December 31, 2020.


The Company recorded aggregate amortization and depreciation expense of:
Years ended December 31,
(In thousands)202120202019
Depreciation:
Buildings and improvements$99,115 $113,402 $99,137 
Furniture, fixtures, and equipment40,836 50,474 50,747 
$139,951 $163,876 $149,884 
Amortization:
Acquired intangible assets$27,439 36,030 $34,057 
Deferred leasing costs1,635 1,576 933 
Website development costs168 195 191 
Total depreciation and amortization$169,193 $201,677 $185,065 

At December 31, 2021, the Company had recorded acquired gross intangible assets of $225.8 million, accumulated amortization of $166.2 million, gross intangible liabilities of $70.9 million and accumulated amortization of $36.3 million. Net intangible assets and liabilities as of December 31, 2021 will be amortized over the weighted average remaining amortization periods of approximately 6.4 and 8.1 years, respectively.

Included in the Company's aggregate restricted cash of approximately $32.7 million at December 31, 2021 was approximately $10.8 million that was contractually restricted to fund capital expenditures and other property-level commitments such as tenant improvements and leasing commissions.

Purchase Options
In the course of extending real estate loan investments for property development, the Company will often receive an exclusive option to purchase the property once development and stabilization are complete. If the Company determines that it does not wish to acquire the property, in certain cases it has the right to sell its purchase option back to the borrower for a termination fee in the amount of the purchase option discount.
These fees are treated as additional interest revenue and are amortized over the period ending with the earlier of (i) the sale of the underlying property and (ii) the maturity of the real estate loans. The Company recorded approximately $9.7 million, $6.5 million and $9.1 million of interest revenue from the amortization of these purchase option terminations for the years ended December 31, 2021, 2020 and 2019, respectively.
Equity Method Investments
On December 8, 2021, the Company entered into an equity commitment of $2.0 million to partially finance the development and construction of a grocery-anchored shopping center to be located in the Charleston, South Carolina MSA. The Company will earn a fixed return of 12% per annum over an anticipated investment life of between 24 and 36 months from the development project and the Company will have a five year right of first offer to purchase the interests of the other investors in the project.

On July 15, 2020, the Company contributed its Neapolitan Way grocery-anchored shopping center that was previously wholly-owned and consolidated into a joint venture in exchange for approximately $19.2 million and 50% interest in the joint venture. The Company realized a gain on the transaction of approximately $3.3 million and now holds its remaining interest in the property via an unconsolidated joint venture and retain a 50% voting and financial interest. The following tables summarize the balance sheet and statements of operations data for the Neapolitan Way shopping center subsequent to its contribution into the joint venture as of and for the periods presented:
December 31,
(In thousands)20212020
Total assets$36,687 $39,109 
Total liabilities$24,703 $25,795 
For the year ended December 31,
20212020
Rental and other property revenues $3,370 $1,423 
Total operating expenses$3,776 $1,721 
Interest expense$924 $330 
Net income (loss)$(1,330)$(628)
Net income (loss) attributable to the Company$(665)$(314)