Real Estate Properties

9 Months Ended

Jun. 30, 2015

A summary of real estate properties owned is as follows (dollars in thousands):



	September 30, 2014 Balance		Additions (a)		Capitalized Costs and Improvements		Sales and other reductions			Depreciation and Amortization			Transfer to Held for Sale			June 30, 2015 Balance
Multi-family	$	511,866	$	27,950	$	26,613	$	(6,753	)	$	(12,561	)	$	(68,259	)	$	478,856
Commercial/mixed use (b)	113,021		—		23,087		—			(1,655		)	—			134,453
Land	7,972		—		—		—			—			—			7,972
Shopping centers/Retail	2,678		—		4		—			(80		)	—			2,602
Co-op/condo apartments	75		—		—		(75		)	—			—			—
Total real estate properties	$	635,612	$	27,950	$	49,704	$	(6,828	)	$	(14,296	)	$	(68,259	)	$	623,883

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(a)	In December 2014, the Trust purchased a 276 unit multi-family property located in Pensacola, FL. The contract price was $27,950,000. The Trust assumed $17,173,000 in mortgage debt, provided equity of $11,380,000, incurred $295,000 in acquisition costs and $308,000 of closing adjustments.

(b)

Represents the real estate assets of RBH‑TRB Newark Holdings LLC, a consolidated VIE (the "Newark Joint Venture") which owns operating and development properties in Newark, New Jersey. These properties contain a mix of office, retail space, charter schools and surface parking totaling approximately 690,000 square feet of commercial space and 61 residential apartment units (excluding 26,000 square feet of commercial space and 143 residential apartments currently under construction). Certain of these assets are subject to a mortgage with a principal balance of $19,500,000 held by the Trust, which is eliminated in consolidation. Several of the assets are also encumbered by other mortgages.

Acquisitions and Dispositions

During the three months ended December 31, 2014, the Trust increased its ownership interest in a (i) joint venture that owns two multi-family properties in Houston, TX from 80% to 91% by purchasing a partner's interest in the venture for $2,036,000; and (ii) joint venture that owns a multi-family property in Decatur, GA from 80% to 100% by purchasing its partner's interest in the venture for $1,850,000. The Trust incurred $153,000 in professional fees related to these transactions.

On February 5, 2015, the Trust sold its Lawrenceville, GA multi-family property for a gross sales price of $9,700,000. The Trust recognized a gain on the sale of $2,654,000, of which approximately $1,140,000 was allocated to the non-controlling partner.

On April 1, 2015, the Trust increased its ownership interest in a joint venture that owns a multi-family property in North Charleston, SC from 90% to 100% by purchasing its partner's interest for $790,000.

On July 27, 2015, the Trust, through a consolidated joint venture, purchased a 618 unit multi-family property located in Valley, AL. The contract price was $44,000,000 (exclding $1,900,000 of closing costs, property escrows and working capital). The purchase was financed with $29,000,000 of mortgage debt which has at an annual interest rate of 4.49% and matures in 2025. The Trust contributed $10,400,000 of equity for its 61.25% share of the venture and its partner contributed $6,500,000 for the balance of the interests in the venture.

Note 4 ‑ Real Estate Properties - continued

Purchase Price Allocation

During the nine months ended June 30, 2015, the Trust finalized the allocation of purchase prices on seven properties purchased in fiscal 2014. The following table summarizes the preliminary allocation of the purchase price of properties as recorded on September 30, 2014, and the finalized allocation of the purchase price, as adjusted, as of June 30, 2015 (dollars in thousands):



	Preliminary Purchase Price Allocation		Adjustments			Finalized Purchase Price Allocation
Land	$	31,540	$	807		$	32,347
Building and Improvements	76,210		(1,517		)	74,693
Acquisition-related intangible assets (in acquired lease intangibles, net)	—		710			710
Total Consideration	$	107,750	$	—		$	107,750

Real Estate Properties Held For Sale

At June 30, 2015 the following properties were classified as held for sale (dollars in thousands):



Location	Net, Book Value At June 30, 2015
Ivy Ridge, Marietta, GA	$	9,182
The Palms, Houston, TX	35,199
Grove at Trinity Pointe, Cordova, TN	23,878
	$	68,259

On July 7, 2015, the Trust sold the property in Marietta, GA, for $17,600,000. The Trust estimates it will recognize a gain on the sale of approximately $8,000,000, of which $3,100,000 will be allocated to the non-controlling partner.

On July 21, 2015, the Trust sold the property in Houston, TX, for $39,900,000, including the purchaser's assumption of the $24,100,000 mortgage debt. The Trust estimates it will recognize a gain on the sale of approximately $4,000,000, of which $800,000 will be allocated to the non-controlling partner.