Real Estate Properties

9 Months Ended

Sep. 30, 2021

Real estate properties consist of the following (dollars in thousands):


	September 30, 2021		December 31, 2020
Land	$	29,489	$	25,585
Building	220,272		154,854
Building improvements	8,839		10,590
Real estate properties	258,600		191,029
Accumulated depreciation	(33,980)		(30,837)
Total real estate properties, net	$	224,620	$	160,192

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


	December 31, 2020 Balance		Additions		Capitalized Costs and Improvements		Depreciation		Sale of Property		September 30, 2021 Balance
Multi-family	$	153,604	$	85,301	$	794	$	(4,657)	$	(16,841)	$	218,201
Land - Daytona, FL	4,379		—		—		—		—		4,379
Retail shopping center and other	2,209		—		—		(83)		(86)		2,040
Total real estate properties	$	160,192	$	85,301	$	794	$	(4,740)	$	(16,927)	$	224,620

Property Acquisition

On August 18, 2021, the Company purchased its partners' interests in Bells Bluff, a previously unconsolidated joint venture. The purchase price to acquire the 41.95% interest in the venture was $27,860,000. As a result of this purchase, Bells Bluff is wholly-owned by the Company. In connection with the purchase, the $47,043,000 construction loan on the property was refinanced with 20-year fixed rate (i.e., 3.48% and interest only for 10 years) mortgage debt in principal amount of $52,000,000.

The Company determined that with respect to this acquisition, the gross assets acquired are concentrated in a single identifiable asset. Therefore, the transaction does not meet the definition of a business and is accounted for as an asset acquisition. The Company assessed the fair value of the tangible assets of the property as of the acquisition date using an income approach utilizing a market capitalization rate of 4.75% which is a Level 3 unobservable input in the fair value hierarchy.

The following table summarizes the allocation of the book value based on the proportionate share of the estimated fair value of the property on the acquisition date:


	Purchase Price Allocation
Land	$	6,172,000
Building and Improvements	77,532,000
Acquisition related intangible assets	1,597,000
	$	85,301,000

On October 1, 2021, the Company acquired the 10% interest owned by its joint venture partners in the entity that owns Crestmont at Thornblade, a 266-unit multi-family property located in Greenville, SC. The purchase price for the interest, after giving effect to the joint venture partner's carried interest, was $1,570,000. As a result, Crestmont at Thornblade, effective as of the purchase date, is wholly-owned by the Company.

Property Dispositions

On May 26, 2021 the Company sold its Kendall Manor-Houston, TX property, which had a book value of $16,842,000, for $24,500,000, and recognized a gain on the sale of the property of $7,279,000. In connection with the sale, the Company paid-off the related mortgage debt of $14,260,000.

On August 20, 2021, the Company sold a cooperative apartment unit in New York, NY, for a sales price of $545,000 and recognized a gain on the sale of $414,000.