Investments in Real Estate

9 Months Ended

Sep. 30, 2019

3. Investments in Real Estate

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

	September 30, 2019			December 31, 2018
Building and building improvements	$	17,107,025		$	8,389,864
Land and land improvements		3,793,031			1,961,977
Furniture, fixtures and equipment		286,501			182,418
Right of use asset - operating leases⁽¹⁾		110,764			—
Right of use asset - financing leases⁽¹⁾		56,008			—
Total		21,353,329			10,534,259
Accumulated depreciation and amortization		(608,862	)		(274,572	)
Investments in real estate, net	$	20,744,467		$	10,259,687

⁽¹⁾	Refer to Note 12 for additional details on the Company’s leases.

During the nine months ended September 30, 2019, the Company acquired interests in 38 real estate investments for $11.1 billion, which were comprised of 440 industrial, 61 multifamily, 25 hotel, two retail and 21 self-storage properties categorized as other.

The following table provides further details of the properties acquired during the nine months ended September 30, 2019 ($ in thousands):

	Ownership	Number of				Acquisition	Purchase
Investment	Interest⁽¹⁾	Properties		Location	Segment	Date	Price⁽²⁾
4500 Westport Drive	100%		1	Harrisburg, PA	Industrial	Jan. 2019	$	11,975
Roman Multifamily Portfolio	100%		14	Various⁽³⁾	Multifamily	Feb. 2019		857,540
Gilbert Heritage Apartments	90%		1	Phoenix, AZ	Multifamily	Feb. 2019		60,984
Courtyard Kona	100%		1	Kailua-Kona, HI	Hotel	March 2019		105,587
Elevation Plaza Del Rio	90%		1	Phoenix, AZ	Multifamily	April 2019		70,550
Raider Multifamily Portfolio	100%		3	Las Vegas, NV	Multifamily	April & June 2019		259,371
Courtney at Universal Multifamily	100%		1	Orlando, FL	Multifamily	April 2019		77,952
Citymark Multifamily 2-Pack	95%		2	Various⁽⁴⁾	Multifamily	April 2019		97,922
Tri-Cities Multifamily 2-Pack	95%		2	Richland & Kennewick, WA	Multifamily	April 2019		61,616
Angler MH Portfolio	99%		5	Phoenix, AZ	Multifamily	April 2019		61,975
Florida MH 4-Pack	99%		4	Various⁽⁵⁾	Multifamily	April & July 2019		33,785
Bridge II Multifamily Portfolio	100%		6	Various⁽⁶⁾	Multifamily	Various⁽⁶⁾		420,020
Morgan Savannah	100%		1	Savannah, GA	Industrial	April 2019		26,254
Minneapolis Industrial Portfolio	100%		34	Minneapolis, MN	Industrial	April 2019		250,678
Miami Doral 2-Pack	100%		2	Miami, FL	Multifamily	May 2019		209,404
Davis Multifamily 2-Pack	100%		2	Various⁽⁷⁾	Multifamily	May 2019		89,687
Slate Savannah	90%		1	Savannah, GA	Multifamily	May 2019		44,267
Amara at MetroWest	95%		1	Orlando, FL	Multifamily	May 2019		73,933
Colorado 3-Pack	100%		3	Denver & Fort Collins, CO	Multifamily	May 2019		207,137
Atlanta Industrial Portfolio	100%		61	Atlanta, GA	Industrial	May 2019		203,745
Edge Las Vegas	95%		1	Las Vegas, NV	Multifamily	June 2019		61,337
ACG IV Multifamily	95%		2	Various⁽⁸⁾	Multifamily	June 2019		124,971
Perimeter Multifamily 3-Pack	100%		3	Atlanta, GA	Multifamily	June 2019		160,941
Anson at the Lakes	100%		1	Charlotte, NC	Multifamily	June 2019		107,287
D.C. Powered Shell Warehouse Portfolio	90%		7	Ashburn & Manassas, VA	Industrial	June 2019		266,322
El Paseo Simi Valley	100%		1	Simi Valley, CA	Retail	June 2019		39,115
Raven Select Service Portfolio	100%		21	Various⁽⁹⁾	Hotel	June 2019		305,470
Urban 2-Pack	100%		2	Chicago, IL & Arlington, VA	Hotel	July 2019		143,556
San Valiente Multifamily	95%		1	Phoenix, AZ	Multifamily	July 2019		101,089
Impala MH	99%		3	Phoenix & Chandler, AZ	Multifamily	July 2019		30,513
East Coast Storage Portfolio	97%		21	Various⁽¹⁰⁾	Other	August 2019		150,703
Edgewater at the Cove	100%		1	Oregon City, OR	Multifamily	August 2019		69,234
Hyatt Regency Atlanta	100%		1	Atlanta, GA	Hotel	September 2019		355,954
Patriot Park	100%		2	Durham, NC	Industrial	September 2019		31,307
Denali Industrial Portfolio	100%		18	Various⁽¹¹⁾	Industrial	September 2019		218,151
Jupiter 12 Industrial Portfolio	100%		316	Various⁽¹²⁾	Industrial	September 2019		5,466,697
Haven 124	100%		1	Denver, CO	Multifamily	September 2019		146,208
Towne Center East	100%		1	Signal Hill, CA	Retail	September 2019		60,224
			549				$	11,063,461

⁽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 Roman Multifamily Portfolio is primarily concentrated in Riverside, CA (18% of units), Denver, CO (13%), Tampa, FL (10%), Orlando, FL (9%), Charlotte, NC (9%), Portland, OR (8%), and Dallas, TX (8%).

⁽⁴⁾	The Citymark Multifamily 2-Pack is located in Las Vegas, NV (61% of units) and Lithia Springs, GA (39%).

⁽⁵⁾	The Florida MH 4-Pack is located in Waldorf, MD (39% of sites), Winter Haven, FL (26%), Naples, FL (18%), and Tarpon Springs, FL (17%).

⁽⁶⁾	The Bridge II Multifamily Portfolio had closings in April, June and July of 2019 and is located in Charlotte, NC (34% of units), Phoenix, AZ (20%), Lakeland, FL (18%), Corona Hills, CA (14%), and Moreno Valley, CA (14%).

⁽⁷⁾	The Davis Multifamily 2-Pack is located in Jacksonville, FL (56% of units) and Raleigh, NC (44%).

⁽⁸⁾	ACG IV Multifamily is located in Puyallup, WA (74% of units) and Woodland, CA (26%).

⁽⁹⁾	The Raven Select Service Portfolio is primarily concentrated in Fort Lauderdale/West Palm, FL (24% of keys), Austin/San Antonio, TX (14%), Salt Lake City, UT (10%), Boulder, CO (10%), Durham, NC (7%), Minneapolis, MN (7%), and Chicago, IL (6%).

⁽¹⁰⁾	East Coast Storage Portfolio is primarily concentrated in Fayetteville, NC (17% of square feet), Tallahassee, FL (13%), Raleigh, NC (8%), New York/New Jersey (8%), Chattanooga, TN (6%), and Miami/Fort Lauderdale, FL (6%).

⁽¹¹⁾	The Denali Industrial Portfolio is located in Indianapolis, IN (41% of square feet), Grove City, OH (22%), Hebron, KY (19%), Cincinnati, OH (14%), and West Chester, OH (4%).

⁽¹²⁾	The Jupiter 12 Portfolio is primarily concentrated in Dallas, TX (14% of square feet), Chicago, IL (12%), Harrisburg, PA (9%), Atlanta, GA (8%), Cincinnati, OH (6%), Columbus, OH (5%), Orlando, FL (5%) and Indianapolis, IN (5%).

The following table summarizes the purchase price allocation for the properties acquired during the nine months ended September 30, 2019 ($ in thousands):

	Jupiter 12 Industrial Portfolio			Roman Multifamily Portfolio		All Other			Total
Building and building improvements	$	4,380,115		$	714,941	$	3,526,564		$	8,621,620
Land and land improvements		781,578			110,206		938,728			1,830,512
Furniture, fixtures and equipment		—			8,538		77,462			86,000
In-place lease intangibles		346,492			23,855		188,639			558,986
Above-market lease intangibles		14,105			—		5,860			19,965
Below-market ground lease⁽¹⁾		15,985			—		—			15,985
Below-market lease intangibles		(71,578	)		—		(19,015	)		(90,593	)
Other		—			—		20,986			20,986
Total purchase price		5,466,697			857,540		4,739,224			11,063,461
Assumed mortgage notes⁽²⁾		703,853			237,981		204,989			1,146,823
Net purchase price	$	4,762,844		$	619,559	$	4,534,235		$	9,916,638

⁽¹⁾	The below-market ground lease value was recorded as a component of the right of use asset – operating leases on the Condensed Consolidated Balance Sheet. Refer to Note 12 for additional details on the Company’s leases.

⁽²⁾	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, and below-market lease intangibles of the properties acquired during the nine months ended September 30, 2019 were three, five, and six years, respectively.

Dispositions

On June 6, 2019, the Company sold the parking garage attached to the Hyatt Place San Jose Downtown property to a third party. The sale included a four story, 261 space, parking structure and land parcel. The sale did not include the attached Hyatt Place San Jose Downtown hotel or the additional land parcels under the hotel. Net proceeds from the sale were $44.3 million, which resulted in a realized gain of $29.7 million recorded as Gain on Disposition of Real Estate on the Company’s Condensed Consolidated Statements of Operations.

On August 6, 2019, the Company sold a 545,000 square foot property within the Canyon Industrial Portfolio to a third party. Net proceeds from the sale were $30.3 million, which resulted in a realized gain of $6.5 million recorded as Gain on Disposition of Real Estate on the Company’s Condensed Consolidated Statements of Operations.