Investments in Real Estate

12 Months Ended

Dec. 31, 2018

3. Investments in Real Estate

Investments in real estate, net consisted of the following ($ in thousands):

	December 31, 2018			December 31, 2017
Building and building improvements	$	8,389,864		$	2,815,348
Land and land improvements		1,961,977			574,253
Furniture, fixtures and equipment		182,418			64,080
Total		10,534,259			3,453,681
Accumulated depreciation		(274,572	)		(47,126	)
Investments in real estate, net	$	10,259,687		$	3,406,555

During the year ended December 31, 2018, the Company acquired interests in 32 real estate investments, which were comprised of 270 industrial, 73 multifamily, 15 hotel, and one retail property.

The following table provides further details of the properties acquired during the year ended December 31, 2018 ($ in thousands):

Investment	Ownership Interest⁽¹⁾	Number of Properties		Location	Segment	Acquisition Date	Purchase Price⁽²⁾
Aston Multifamily Portfolio⁽³⁾	90%		8	Various	Multifamily	Jan. 2018	$	141,743
Kraft Chicago Industrial Portfolio	100%		3	Aurora, IL	Industrial	Jan. 2018		151,365
Canyon Industrial Portfolio	100%		146	Various⁽⁴⁾	Industrial	Mar. 2018		1,837,213
The Boulevard	100%		1	Phoenix, AZ	Multifamily	April 2018		48,392
Highroads MH	99%		3	Phoenix, AZ	Multifamily	April 2018		18,637
Blue Hills Multifamily	100%		1	Boston, MA	Multifamily	May 2018		131,747
Wave Multifamily Portfolio	100%		6	Various⁽⁵⁾	Multifamily	May 2018		423,135
ACG III Multifamily	95%		2	Gresham, OR & Turlock, CA	Multifamily	May 2018		96,182
Carroll Florida Multifamily	100%		2	Jacksonville & Orlando, FL	Multifamily	May 2018		116,832
HP Cold Storage Industrial Portfolio	100%		6	Various⁽⁶⁾	Industrial	May 2018		253,082
Henderson Select-Service 2-Pack	100%		2	Henderson, NV	Hotel	May 2018		36,260
Orlando Select-Service 2-Pack	100%		2	Orlando, FL	Hotel	May 2018		48,862
Solis at Flamingo	95%		1	Las Vegas, NV	Multifamily	June 2018		72,560
Evergreen Minari MH	99%		2	Phoenix, AZ	Multifamily	June 2018		8,614
Southwest MH	99%		14	Various⁽⁷⁾	Multifamily	June 2018		176,194
Velaire at Aspera	100%		1	Phoenix, AZ	Multifamily	July 2018		64,573
Hidden Springs MH	99%		1	Desert Hot Springs, CA	Multifamily	July 2018		17,122
SVPAC MH	99%		2	Phoenix, AZ	Multifamily	July 2018		14,278
Coyote Multifamily Portfolio	100%		6	Phoenix, AZ	Multifamily	Aug. 2018		311,813
Corporex Select Service Portfolio	100%		5	Various⁽⁸⁾	Hotel	Aug. 2018		117,869
JW Marriott San Antonio Hill Country Resort	100%		1	San Antonio, TX	Hotel	Aug. 2018		604,323
Vista Center	100%		1	Miami, FL	Retail	Aug. 2018		34,738
EdR Student Housing Portfolio	95%		20	Various⁽⁹⁾	Multifamily	Sept. 2018		1,230,857
Royal Vegas MH	99%		1	Las Vegas, NV	Multifamily	Oct. 2018		8,372
Hampton Inn & Suites Federal Way	100%		1	Seattle, WA	Hotel	Oct. 2018		33,672
Staybridge Suites Reno	100%		1	Reno, NV	Hotel	Nov. 2018		17,964
Salt Lake City Select Service 3 Pack	60%		3	Salt Lake City, UT	Hotel	Nov. 2018		104,508
Meridian Industrial Portfolio	100%		106	Various⁽¹⁰⁾	Industrial	Nov. 2018		962,979
Stockton Distribution Center	100%		1	Stockton, CA	Industrial	Dec. 2018		94,285
Summit Industrial Portfolio	100%		8	Atlanta, GA	Industrial	Dec. 2018		40,463
Riverest MH	99%		1	Tavares, FL	Multifamily	Dec. 2018		6,165
Avanti Apartments	100%		1	Las Vegas, NV	Multifamily	Dec. 2018		69,008
			359				$	7,293,807

⁽¹⁾

Certain of the investments made by the Company provide the seller or the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by the Company and any profits interest due to the other partner is reported within non-controlling interests.

⁽²⁾	Purchase price is inclusive of acquisition-related costs.

⁽³⁾

The Aston Multifamily Portfolio closed in two stages and the final eight properties closed in January 2018. The first closing in November 2017 included 12 properties. The total Aston Multifamily Portfolio is located in four markets: Austin/San Antonio, TX (47% of units), Dallas/Fort Worth, TX (21%), Nashville, TN (18%), and Louisville, KY (14%).

⁽⁴⁾	The Canyon Industrial Portfolio consists of 146 industrial properties primarily concentrated in Chicago, IL (19% of sq. ft.), Dallas, TX (15%), Indianapolis, IN (11%), Baltimore/Washington, D.C. (9%), and Columbus, OH (7%).

⁽⁵⁾	The Wave Multifamily Portfolio is located in five markets: Greater Seattle, WA (29% of units), Sacramento, CA (28%), Las Vegas, NV (22%), Spokane, WA (14%), and Portland, OR (7%).

⁽⁶⁾	The HP Cold Storage Industrial Portfolio is located in four markets: Stockton, CA (52% of sq. ft.), Atlanta, GA (24%), Baltimore, MD (18%), and Austin, TX (6%).

⁽⁷⁾	Southwest MH is located in three markets: Phoenix, AZ (86% of sites), San Diego, CA (11%), and Palm Desert, CA (3%).

⁽⁸⁾	The Corporex Select Service Portfolio is located in five markets: Phoenix, AZ (24% of keys), Reno, NV (23%), Salt Lake City, UT (20%), Sonoma, CA (17%), and Tampa, FL (16%).

⁽⁹⁾	The EdR Student Housing Portfolio consists of 10,610 beds primarily concentrated at Penn State University (15% of beds), University of Arizona (10%), University of Virginia (8%), Arizona State University (8%) and Virginia Tech (8%).

⁽¹⁰⁾	The Meridian Industrial Portfolio consists of 106 industrial properties primarily concentrated in Memphis, TN (23% of sq. ft.), Orlando, FL (19%), Jacksonville, FL (10%), Atlanta, GA (9%), Richmond, VA (7%), and Winston-Salem, NC (7%).

During the year ended December 31, 2017, the Company acquired interests in 27 real estate investments, which were comprised of 55 industrial, 48 multifamily, 10 hotel, and 2 retail properties.

The following table provides details of the properties acquired during the year ended December 31, 2017 ($ in thousands):

Investment	Ownership Interest⁽¹⁾	Number of Properties		Location	Sector	Acquisition Date	Purchase Price⁽²⁾
Hyatt Place UC Davis	100%		1	Davis, CA	Hotel	Jan. 2017	$	32,687
Sonora Canyon Apartments	100%		1	Mesa, AZ	Multifamily	Feb. 2017		40,983
Stockton Industrial Park	100%		1	Stockton, CA	Industrial	Feb. 2017		32,751
Bakers Centre	100%		1	Philadelphia, PA	Retail	Mar. 2017		54,223
TA Multifamily Portfolio	100%		6	Various⁽³⁾	Multifamily	Apr. 2017		432,593
HS Industrial Portfolio	100%		38	Various⁽⁴⁾	Industrial	Apr. 2017		405,930
Emory Point	100%		1	Atlanta, GA	Multifamily⁽⁵⁾	May 2017		201,578
Nevada West Multifamily	100%		3	Las Vegas, NV	Multifamily	May 2017		170,965
Hyatt Place San Jose Downtown	100%		1	San Jose, CA	Hotel	June 2017		65,321
Mountain Gate & Trails Multifamily	100%		2	Las Vegas, NV	Multifamily	June 2017		83,572
Elysian West Multifamily	100%		1	Las Vegas, NV	Multifamily	July 2017		107,027
Florida Select-Service 4-Pack	100%		4	Tampa & Orlando, FL	Hotel	July 2017		58,973
Hyatt House Downtown Atlanta	100%		1	Atlanta, GA	Hotel	Aug. 2017		35,332
Harbor 5 Multifamily	100%		5	Dallas, TX	Multifamily	Aug. 2017		146,161
Gilbert Multifamily	90%		2	Gilbert, AZ	Multifamily	Sept. 2017		147,039
Domain & GreenVue Multifamily	100%		2	Dallas, TX	Multifamily	Sept. 2017		134,452
Fairfield Industrial Portfolio	100%		11	Fairfield, NJ	Industrial	Sept. 2017		74,283
ACG II Multifamily Portfolio	94%		4	Various ⁽⁶⁾	Multifamily	Sept. 2017		148,038
Plaza Del Sol Retail	100%		1	Burbank, CA	Retail	Oct. 2017		45,898
Boston/Worcester Select-Service 3-Pack	100%		3	Boston & Worcester, MA	Hotel	Oct. 2017		81,762
Southeast Industrial Portfolio	100%		5	Various ⁽⁷⁾	Industrial	Nov. 2017		116,487
Olympus Multifamily	95%		3	Jacksonville, FL	Multifamily	Nov. 2017		142,129
Aston Multifamily Portfolio	90%		12	Various ⁽⁸⁾	Multifamily	Nov. 2017		381,445
Amberglen West Multifamily	100%		1	Hillsboro, OR	Multifamily	Nov. 2017		95,035
Talavera and Flamingo Multifamily	100%		2	Las Vegas, NV	Multifamily	Dec. 2017		115,427
Walden Pond & Montair Multifamily Portfolio	95%		2	Everett, WA and Thornton, CO	Multifamily	Dec. 2017		127,819
Signature at Kendall Multifamily	100%		1	Miami, FL	Multifamily	Dec. 2017		139,468
			115				$	3,617,378

⁽¹⁾

⁽²⁾	Purchase price is inclusive of acquisition-related costs.

⁽³⁾	The TA Multifamily Portfolio consists of a 32-floor property in downtown Orlando, FL (19% of units) and five garden style properties located in the suburbs of Palm Beach Gardens, FL (19%), Chicago, IL (19%), Orlando, FL (17%), Dallas, TX (14%), and Kansas City, KS (12%).

⁽⁴⁾	The HS Industrial Portfolio is located in six submarkets: Atlanta, GA (38% of sq. ft.), Chicago, IL (23%), Houston, TX (17%), Harrisburg, PA (10%), Dallas, TX (10%) and Orlando, FL (2%).

⁽⁵⁾	Emory Point also includes 124,000 square feet of walkable retail space.

⁽⁶⁾	The ACG II Multifamily Portfolio consists of four garden style properties in Gilbert, AZ (30% of units), Modesto, CA (25%), Olympia, WA (24%), and Flagstaff, AZ (21%).

⁽⁷⁾	The Southeast Industrial Portfolio is located in Jacksonville, FL (53% of sq. ft.), Atlanta, GA (26%), and Nashville, TN (21%).

⁽⁸⁾	The Aston Multifamily Portfolio is located in four markets: Austin/San Antonio, TX (49% of units), Dallas/Fort Worth, TX (25%), Nashville, TN (22%), and Louisville, KY (4%).

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2018 ($ in thousands):

	Canyon Industrial Portfolio			EdR Student Housing Portfolio			Meridian Industrial Portfolio			JW Marriott San Antonio Hill Country Resort		Wave Multifamily Portfolio		All Other			Total
Building and building improvements	$	1,362,916		$	1,034,732		$	736,302		$	474,529	$	323,954	$	1,563,496		$	5,495,929
Land and land improvements		376,762			138,249			165,881			84,218		82,686		535,141			1,382,937
Furniture, fixtures and equipment		—			11,072			—			39,979		5,252		42,667			98,970
In-place lease intangibles		109,031			51,583			64,623			597		11,243		103,387			340,464
Above-market lease intangibles		8,459			—			2,862			—		—		3,775			15,096
Below-market ground lease intangible		—			—			793			—		—		—			793
Below-market lease intangibles		(19,955	)		(122	)		(13,604	)		—		—		(13,853	)		(47,534	)
Above-market ground lease intangible		—			(4,657	)		—			—		—		—			(4,657	)
Other		—			—			6,122			5,000		—		687			11,809
Total purchase price	$	1,837,213		$	1,230,857		$	962,979		$	604,323	$	423,135	$	2,235,300		$	7,293,807
Assumed mortgage notes⁽¹⁾		—			46,070			11,190			—		—		151,220			208,480
Non-controlling interest		—			12,802			—			—		—		—			12,802
Net purchase price	$	1,837,213		$	1,171,985		$	951,789		$	604,323	$	423,135	$	2,084,080		$	7,072,525

⁽¹⁾	Refer to Note 6 for additional details on the Company’s mortgage notes.

The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market ground lease intangibles, below-market lease intangibles, and above-market ground lease intangibles of the properties acquired during the year ended December 31, 2018 were 4, 5, 65, 7 and 86 years, respectively.

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2017 ($ in thousands):

	TA Multifamily Portfolio			HS Industrial Portfolio			Aston Multifamily Portfolio		Emory Point			Nevada West		All Other			Total
Building and building improvements	$	337,889		$	345,391		$	306,602	$	171,709		$	145,305	$	1,501,061		$	2,807,957
Land and land improvements		68,456			45,081			47,645		—			17,409		394,410			573,001
Furniture, fixtures and equipment		4,651			—			4,926		3,040			2,833		46,766			62,216
In-place lease intangibles		21,880			20,793			22,272		11,207			5,418		79,740			161,310
Below-market ground lease intangibles		—			—			—		—			—		4,623			4,623
Above-market lease intangibles		24			2,726			—		84			—		3,836			6,670
Below-market lease intangibles		(307	)		(8,061	)		—		(576	)		—		(6,245	)		(15,189	)
Prepaid ground lease rent		—			—			—		16,114			—		—			16,114
Other intangibles		—			—			—		—			—		676			676
Total purchase price	$	432,593		$	405,930		$	381,445	$	201,578		$	170,965	$	2,024,867		$	3,617,378
Assumed mortgage notes⁽¹⁾		—			—			—		—			—		200,967			200,967
Net purchase price	$	432,593		$	405,930		$	381,445	$	201,578		$	170,965	$	1,823,900		$	3,416,411

⁽¹⁾	Refer to Note 6 for additional details on the Company’s mortgage notes.

The weighted-average amortization periods for the acquired in-place lease intangibles, below-market ground lease intangibles, above-market lease intangibles, below-market lease intangibles, prepaid ground lease rent and other intangibles of the properties acquired during the year ended December 31, 2017 were 3, 53, 6, 6, 71 and 4 years, respectively.