PREPAID EXPENSES and OTHER ASSETS

9 Months Ended

Sep. 30, 2019

PREPAID EXPENSES and OTHER ASSETS

OTHER ASSETS

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $2,860,000, and $2,571,000 of security deposits are included in prepaid expenses and other assets at September 30, 2019 and December 31, 2018, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at September 30, 2019 and December 31, 2018 is approximately $474,000 and $477,000, respectively, held in escrow to fund future capital improvements.

Intangible assets on the acquisitions of Webster Green Apartments and Woodland Park Apartments are included in prepaid expenses and other assets. Intangible assets are approximately $7,000 net of accumulated amortization of approximately $1,104,000 and approximately $152,000 net of accumulated amortization of approximately $959,000 at September 30, 2019 and December 31, 2018, respectively.

Financing fees in association with the line of credit of approximately $46,000 and $78,000 are net of accumulated amortization of approximately $82,000 and $50,000 at September 30, 2019 and December 31, 2018 respectively.