Real Estate Investments

12 Months Ended

Dec. 31, 2013

Real Estate Investments

6. Real Estate Investments

Armada Hoffler’s real estate investments comprised the following as of December 31, 2013 and 2012 (in thousands):

	December 31,
	2013			2012
Land	$	41,313		$	24,511
Land improvements		12,562			11,543
Buildings and improvements		365,941			316,596
Development costs		—			2,090
Construction in progress		43,160			—
		462,976			354,740
Accumulated depreciation		(105,228	)		(92,454	)
Net real estate investments	$	357,748		$	262,286

In January 2013, Armada Hoffler began construction of 4525 Main Street and Encore Apartments in the Virginia Beach Town Center. As of December 31, 2012, real estate investments held for development included $1.8 million of land for 4525 Main Street and Encore Apartments.

As discussed in Notes 1 and 19, the Operating Partnership acquired a controlling interest in Bermuda Crossroads and Smith’s Landing on May 13, 2013.

On June 4, 2013, Armada Hoffler purchased $2.6 million of land in Durham, North Carolina for the development and construction of Whetstone Apartments.

On August 27, 2013, Armada Hoffler purchased $5.2 million of land in Virginia Beach, Virginia for the development and construction of Sandbridge Commons.

On November 26, 2013, Armada Hoffler purchased $1.5 million of land in Chesapeake, Virginia for the development and construction of Greentree Shopping Center.

On December 16, 2013, Armada Hoffler purchased $1.9 million of land in Chesapeake, Virginia for the development and construction of a new office and manufacturing building for Oceaneering International.

Subsequent to December 31, 2013

As discussed in Note 1, the Company completed the acquisition of Liberty Apartments on January 17, 2014. Total consideration transferred to acquire Liberty Apartments was $30.7 million, consisting of 695,652 common units of the Operating Partnership, the repayment of a $3.0 million mezzanine loan and the assumption of $20.9 million of debt. The Company is currently evaluating the accounting for the Liberty Apartments acquisition and anticipates that the consideration transferred will primarily be allocated to the building, land and acquired lease intangibles.