REAL ESTATE PROPERTIES

Real estate properties (including real estate properties held for sale), consist of the following:



	September 30,
	2017			2016
Land	$	138,094		$	128,409
Building	808,366			684,133
Building improvements	31,411			25,717
Real estate properties	977,871			838,259
Accumulated depreciation	(66,621		)	(44,687		)
Total real estate properties, net	$	911,250		$	793,572

NOTE 2—REAL ESTATE PROPERTIES (continued)

A summary of activity in real estate properties (including properties held for sale), for the year ended September 30, 2017, follows (dollars in thousands):



	September 30, 2016 Balance		Additions		Capitalized Costs and Improvements		Depreciation and Amortization			Sales			Other Dispositions			September 30, 2017 Balance
Multi-family	$	783,085	$	255,992	$	9,173	$	(30,379	)	$	(113,552	)	$	(3,571	)	$	900,748
Land - Daytona, FL	8,021		—		—		—			—			—			8,021
Retail shopping center - Yonkers, NY	2,466		—		125		(110		)	—			—			2,481
Total real estate properties	$	793,572	$	255,992	$	9,298	$	(30,489	)	$	(113,552	)	$	(3,571	)	$	911,250

Other dispositions set forth in the table above reflect the $3,571,000 reduction of the net book value of assets related to Retreat at Cinco Ranch, Katy, TX, which was damaged by Hurricane Harvey. The net book value was reduced due to damage to 96 ground floor units, the clubhouse, pool, landscaping and all HVAC units. The cost of repairing the damage is expected to be covered completely by insurance proceeds excluding a $100,000 deductible. Though the insurance claim has not been resolved, the Company believes it is probable that it will recover $3,471,000 and therefore has recognized such sum in insurance recoveries. Through December 12, 2017, the Company has received $1,100,000 in insurance proceeds.

The acquisitions completed in the year ended September 30, 2017 and described in note 3-Acquisitions, Dispositions and Impairment Charges, have been accounted for as asset acquisitions. The purchase prices were allocated to the acquired assets and assumed liabilities based on management's estimate of the relative fair value of these acquired assets and assumed liabilities at the dates of acquisition.

The following table summarizes the preliminary allocations of the purchase price of nine properties purchased between August 1, 2016 and September 30, 2017 , and the finalized allocation of the purchase price, as adjusted, as of September 30, 2017 (dollars in thousands):



	Preliminary Purchase Price Allocation		Adjustments			Finalized Purchase Price Allocation

Land	$	39,296	$	(1,550	)	$	37,746
Buildings and improvements	299,327		341			299,668
Acquisition-related intangible assets (in acquired lease intangibles, net)	4,180		1,209			5,389
Total consideration	$	342,803	$	—		$	342,803

NOTE 2—REAL ESTATE PROPERTIES (continued)

A summary of the Company's multi-family properties by state as and for the year ended September 30, 2017, is as follows (dollars in thousands):



Location	Number of Properties at September 30, 2017	Number of Units at September 30, 2017	2017 Revenues		% of 2017 Revenues
Texas	9	2,695	$	32,011	31.1	%
Florida (a)	4	1,268	15,339		14.9	%
Georgia	4	959	11,842		11.5	%
Tennessee	2	702	4,339		4.2	%
Alabama	2	826	7,849		7.6	%
South Carolina	3	683	6,305		6.1	%
Missouri	4	775	7,694		7.5	%
Indiana	1	400	3,418		3.3	%
Mississippi	2	776	8,310		8.1	%
Ohio	1	264	2,671		2.6	%
Virginia	1	220	3,160		3.1	%
	33	9,568	$	102,938	100	%

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(a)	Includes Waverly Place Apartments - Melbourne, FL, which was sold on October 25, 2017. This property has 208 units and accounted for $2,567 of 2017 revenues.

Future minimum rentals to be received by the Company pursuant to non-cancellable operating leases with terms in excess of one year, from a commercial property owned by the Company at September 30, 2017, are as follows (dollars in thousands):



Year Ending September 30,	Amount
2018	$	1,119
2019	1,119
2020	1,119
2021	1,132
2022	1,185
Thereafter	4,500
Total	$	10,174

Leases at the Company's multi-family properties are generally for a term of one year or less and are not reflected in the above table.