ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES

ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES

Acquisitions of Interests in Joint Ventures    

In 2021, the Company purchased all of its partners' interests in three joint ventures. The Company determined that in each 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 acquisitions dates using an income approach utilizing market capitalization rate of 4.75% which is a Level 3 unobservable input in the fair value hierarchy. The following table summarizes these purchases (dollars in thousands):

NOTE 3—ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES

Location	Purchase Date	No. of Units	Interest Purchased		Purchase Price		Mortgage Debt Assumed/Acquired
Bells Bluff, Nashville, TN	8/18/2021	402	42.0	%	$	27,860	$	52,000
Crestmont at Thornblade, Greenville, SC	10/1/2021	266	10.0	%	1,600		26,425
Crossings of Bellevue, Nashville, TN	12/1/2021	300	20.0	%	16,128		37,680
		968			$	45,588	$	116,105

The following table summarizes the purchase price allocation of the book values of those properties that are now wholly owned and is based on the proportionate share of the estimated fair value of the property on the acquisition date (dollars in thousands):

	Bells Bluff		Crestmont at Thornblade		Crossings of Bellevue		Total
Land	$	6,172	$	4,033	$	9,679	$	19,884
Building and Improvements	77,532		34,052		29,115		140,699
Total Land and building	$	83,704	$	38,085	$	38,794	$	160,583
Acquisition related lease intangibles	1,597		818		730		3,145
Total Assets	$	85,301	$	38,903	$	39,524	$	163,728
Acquisition related mortgage intangible	—		$	2,641	—		$	2,641

The unamortized balance of acquisition related lease intangibles, which is included in Other assets in the consolidated balance sheet, was $2,347,000 at December 31, 2021, and will be amortized within a one year period.

The unamortized balance of acquisition related mortgage intangible, which is included in mortgages payable in the consolidated balance sheet, was $2,582,000 at December 31, 2021 and will be amortized as follows (dollars in thousands):

Year Ending December 31,	Amount
2022	$	365
2023	376
2024	386
2025	390
2026	395
Thereafter	670
Total	$	2,582

NOTE 3—ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES (Continued)

Property Dispositions

The tables below provide information regarding the Company's disposition of real estate properties during the year ended December 31, 2021 (dollars in thousands):

Location	Sale Date	No. of Units	Sales Price		Gain on Sale
Kendall Manor - Houston, TX	5/26/2021	272	$	24,500	$	7,279
New York, NY (1)	8/20/2021	1	545		414
		273	$	25,045	$	7,693

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(1) Reflects the sale of a cooperative apartment unit.

The Company did not dispose of any real estate properties during the year ended December 31, 2020.

Impairment Charges

The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable.

The Company measures and records impairment charges, and reduces the carrying value of owned properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. For its unconsolidated joint venture investments, the Company measures and records impairment losses, and reduces the carrying value of the equity investment when indicators of impairment are present and the expected discounted cash flows related to the investment is less than the carrying value.

In cases where the Company does not expect to recover its carrying value on properties held for use, the Company reduces its carrying value to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell.

In the year ended December 31, 2021, the Company took an impairment charge of $520,000 related to its investment in OPOP Tower and OPOP Loft properties, St Louis, MO, as the carrying value exceeded the fair vale by that amount. The fair value is based upon the sale price at which the Company contracted to sell this joint venture interest. This investment was sold in 2021 and no further impairments were recorded.

In the year ended ended December 31, 2020, indicators of impairment were present on a 8.7 acre vacant land parcel located in South Daytona Beach, Florida. The Company had entered into a contract to sell this property at a sales price less than its carrying value and accordingly, the Company took an impairment charge related to this asset of $3,642,000, representing the excess of the carrying value over the fair value. This property was sold on February 2, 2022 and no further impairments were recorded.