Real Estate Properties

3 Months Ended

Mar. 31, 2022

Real estate properties, excluding real estate held for sale, consists of the following (dollars in thousands):


	March 31, 2022		December 31, 2021
Land	$	42,158	$	38,822
Building	315,279		281,841
Building improvements	10,156		9,354
Real estate properties	367,593		330,017
Accumulated depreciation	(39,259)		(36,467)
Total real estate properties, net	$	328,334	$	293,550

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


	December 31, 2021 Balance		Additions		Capitalized Costs and Improvements		Depreciation		Sale of Property		March 31, 2022 Balance
Multi-family	$	291,538	$	36,802	$	802	$	(2,792)	$	—	$	326,350
Land - Daytona, FL	4,379		—		—		—		(4,379)		—
Retail shopping center and other	2,012		—		—		(28)		—		1,984
Total real estate properties	$	297,929	$	36,802	$	802	$	(2,820)	$	(4,379)	$	328,334

Property Acquisition

On March 23, 2022, the Company completed the purchase of its partners' remaining 28.1% interest in Verandas at Alamo, San Antonio, TX, for a purchase price of $8,721,000. As a result of this purchase, this property is wholly-owned and effective March 23, 2022, is included in the Company's consolidated results of operations and accounts, including mortgage debt (see note 9 - "Debt Obligations").

The Company determined that the gross assets purchased in this acquisition 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 the cost accumulation and income approach which utilized a market capitalization rate of 4.5% 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 (dollars in thousands):


	Purchase Price Allocation
Land	$	3,336
Building and improvements	33,404
Total land and buildings	36,740

Acquisition related intangible assets	797
Total Asset	$	37,537

Acquisition related mortgage intangible	$	62

Property Disposition

On February 2, 2022 the Company sold a vacant land parcel located in Daytona, Florida for a sales price of $4,700,000, and, after closing costs, recognized a nominal gain. In 2020, we recognized an impairment charge of $3,600,000 in connection with this property. At December 31, 2021, this property was classified as held-for-sale.