COMMITMENTS AND CONTINGENCIES (UNITED DOMINION REALTY, L.P.) Commitments and Contingencies (UNITED DOMINION REALTY, L.P.)

6 Months Ended

Jun. 30, 2019

Entity information

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

Commitments

Real Estate Commitments

The following summarizes the Company’s real estate commitments at June 30, 2019 (dollars in thousands):

	Number	UDR's			UDR's Remaining
	Properties	Investment (a)			Commitment
Wholly-owned — redevelopment	2	$	4,621		$	30,879
Joint ventures:
Unconsolidated joint ventures - development	1		11,648			23,536	(b)
Preferred equity investments	2		37,922	(c)		41,937	(d)
Other investments	-		6,879			10,800	(e)
Total		$	61,070		$	107,152

(a) Represents UDR’s investment as of June 30, 2019.

(b) Represents UDR’s proportionate share of expected remaining costs to complete the development.

(c) Represents UDR’s investment in 1300 Fairmount and Modera Lake Merritt for the properties under development as of June 30, 2019.

(d) Represents UDR’s remaining commitment for 1300 Fairmount and Modera Lake Merritt.

(e) Represents UDR’s remaining commitment for other investment ventures.

Purchase Commitments

As described in Note 5, Joint Ventures and Partnerships, during the three months ended June 30, 2019, the Company entered into a contract to acquire a community held by the UDR/KFH joint venture for a purchase price at 100% of approximately $184.0 million. As the Company currently holds a 30% ownership interest in the community, it expects to pay approximately $128.8 million for the remaining 70% ownership. The community will be consolidated upon closing of the acquisition. The Company made a $5.0 million deposit on the purchase which, as of June 30, 2019, is generally non-refundable other than due to the failure to satisfy one of the closing conditions pursuant to the terms of the purchase agreement. The acquisition is expected to close in 2019, subject to customary closing conditions. Upon closing of the acquisition, the UDR/KFH joint venture will terminate.

In July 2019, the Company entered into a contract to acquire a 185 home operating community in Englewood, New Jersey for a purchase price of approximately $83.6 million. The Company made a $5.0 million deposit on the purchase, which is generally non-refundable other than due to the failure to satisfy one of the closing conditions pursuant to the terms of the purchase agreement. The acquisition is expected to close in 2019, subject to customary closing conditions.

Contingencies

Litigation and Legal Matters

The Company is subject to various legal proceedings and claims arising in the ordinary course of business. The Company cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The Company believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on our financial condition, results of operations or cash flows.

United Dominion Reality L.P.

Entity information

COMMITMENTS AND CONTINGENCIES

11. COMMITMENTS AND CONTINGENCIES

Commitments

Real Estate Commitments

The following summarizes the Operating Partnership’s real estate commitments at June 30, 2019 (dollars in thousands):

	Number			Operating Partnership's
	Properties	Investment		Remaining Commitment
Real estate communities - redevelopment	1	$	2,897	$	22,103

Contingencies

Litigation and Legal Matters

The Operating Partnership is subject to various legal proceedings and claims arising in the ordinary course of business. The Operating Partnership cannot determine the ultimate liability with respect to such legal proceedings and claims at this time. The General Partner believes that such liability, to the extent not provided for through insurance or otherwise, will not have a material adverse effect on the Operating Partnership’s financial condition, results of operations or cash flows.