ACQUISITIONS AND DISPOSITIONS

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS

Centerspace did not acquire new real estate during the three months ended September 30, 2023 compared to acquisitions of $95.0 million during the three months ended September 30, 2022. Centerspace did not acquire new real estate during the nine months ended September 30, 2023 compared to acquisitions of $211.9 million during the nine months ended September 30, 2022. The acquisitions during the nine months ended September 30, 2022 are detailed below.

Nine Months Ended September 30, 2022

	Date Acquired	(in thousands)
		Total Acquisition Cost(1)		Form of Consideration						Investment Allocation
Acquisitions				Cash		Units(2)		Other(3)		Land		Building		Intangible Assets(4)		Other(5)
191 homes - Martin Blu - Minneapolis, MN	January 4, 2022	$	49,825	$	3,031	$	18,885	$	27,909	$	3,547	$	45,212	$	1,813	$	(747)
31 homes - Elements - Minneapolis, MN	January 4, 2022	9,066		1,290		1,748		6,028		941		7,853		335		(63)
45 homes - Zest - Minneapolis, MN	January 4, 2022	11,364		1,429		2,249		7,686		936		10,261		574		(407)
130 homes - Noko Apartments - Minneapolis, MN	January 26, 2022	46,619		3,343		—		43,276		1,915		42,754		1,950		—
215 homes - Lyra Apartments - Centennial, CO	September 30, 2022	95,000		95,000		—		—		6,473		86,149		2,378		—
Total Acquisitions		$	211,874	$	104,093	$	22,882	$	84,899	$	13,812	$	192,229	$	7,050	$	(1,217)

(1)Excludes transaction costs.

(2)Fair value of operating partnership units issued on acquisition.

(3)Assumption of seller’s debt upon closing for Martin Blu, Zest, and Elements. Mezzanine and construction loans, financed by Centerspace, exchanged as partial consideration for the acquisition of Noko Apartments.

(4)Intangible assets consist of in-place leases valued at the time of acquisition. During the nine months ended September 30, 2023 and 2022, Centerspace recognized $941,000 and $11.1 million, respectively, of amortization expense related to intangibles, included within depreciation and amortization in the Condensed Consolidated Statement of Operations.

(5)Debt discount on assumed mortgage.

DISPOSITIONS

During the three months ended September 30, 2023, Centerspace disposed of four apartment communities and associated commercial space, in one transaction for an aggregate sales price of $82.5 million. Centerspace did not dispose of any real estate during the three months ended September 30, 2022. During the nine months ended September 30, 2023, Centerspace disposed of 13 apartment communities and associated commercial space, in five transactions for an aggregate sales price of $226.8 million. Centerspace did not dispose of any real estate during the nine months ended September 30, 2022. The dispositions for the nine months ended September 30, 2023 are detailed below.

Nine Months Ended September 30, 2023

		(in thousands)
Dispositions	Date Disposed	Sale Price		Net Book Value and Transaction Cost		Gain/(Loss)
115 homes - Boulder Court - Eagan, MN	March 8, 2023	$	14,605	$	4,970	$	9,635
498 homes - 2 Nebraska apartment communities	March 14, 2023	$	48,500	$	14,975	$	33,525
892 homes - 5 Minnesota apartment communities	March 15, 2023	$	74,500	$	55,053	$	19,447
62 homes - Portage - Minneapolis, MN	March 15, 2023	$	6,650	$	9,098	$	(2,448)
712 homes - 4 North Dakota apartment communities	September 14, 2023	$	82,500	$	71,218	$	11,282
Total Dispositions		$	226,755	$	155,314	$	71,441