Real Estate Disposition Activities

12 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Real Estate Disposition Activities

Real Estate Disposition Activities

During 2016, the Company sold seven wholly-owned operating communities, containing an aggregate of 2,051 apartment homes for an aggregate sales price of $522,850,000 and an aggregate gain in accordance with GAAP of $370,301,000. In addition during 2016, the Company sold other real estate, including one land parcel which was sold to a joint venture in which we own a 55.0% interest, and ancillary real estate, for an aggregate sales price of $41,178,000, resulting in an aggregate gain in accordance with GAAP of $10,224,000.

Details regarding the real estate sales are summarized in the following table (dollars in thousands):

Community Name	Location	Period of sale	Apartment homes	Debt		Gross sales price		Net cash proceeds (1)
Eaves Trumbull	Trumbull, CT	Q116	340	$	—	$	70,250	$	68,665
Avalon Essex	Peabody, MA	Q216	154	—		45,100		44,085
Eaves Nanuet	Nanuet, NY	Q316	504	—		147,000		145,722
Avalon Shrewsbury	Shrewsbury, MA	Q316	251	—		60,500		59,263
Avalon at Freehold	Freehold, NJ	Q316	296	—		68,000		66,320
Avalon Brandemoor I & II	Lynnwood, WA	Q416	506	—		132,000		128,021
Other real estate dispositions (2)	multiple	Q1-Q416	N/A	—		41,178		20,641
Total of 2016 asset sales			2,051	$	—	$	564,028	$	532,717
Total of 2015 asset sales			851	$	—	$	289,320	$	282,163
Total of 2014 asset sales			1,337	$	16,341	$	304,250	$	281,125

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(1) Net cash proceeds does not include the sale of an affordable restricted apartment building adjacent to one of the Company's Development Communities, for which consideration was received in the form of a mortgage note, discussed below.

(2) Primarily composed of the sales of land to AVA North Point discussed in Note 5, “Investments in Real Estate Entities” and ancillary real estate discussed in note (1).

During 2016, the Company completed the construction of and sold an affordable restricted apartment building, containing 77 apartment homes, which is adjacent to one of the Company's Development Communities. The Company received consideration for the sale in the form of a mortgage note, recording $18,643,000 to reflect the net present value of the note, determined based on the estimated contractual cash flows and a discount rate commensurate with the nature of the note. The note is secured by the underlying real estate, and is reported as a component of prepaid expenses and other assets on the Consolidated Balance Sheets. The Company expects to receive $16,891,000 during 2017, with the balance of the note to be received over a period of up to 35 years.

As of December 31, 2016, the Company had two ancillary land parcels that qualified as held for sale.

The operations for any real estate assets sold from January 1, 2014 through December 31, 2016 and which were classified as held for sale and discontinued operations as of and for periods prior to December 31, 2013, have been presented as income from discontinued operations in the accompanying Consolidated Statements of Comprehensive Income. The operations for any real estate assets sold from January 1, 2014 through December 31, 2016 that were not classified as held for sale or discontinued operations as of and for periods prior to December 31, 2013, are included in income from continuing operations on the accompanying Consolidated Statements of Comprehensive Income.

The following is a summary of income from discontinued operations for the periods presented (dollars in thousands):

	For the year ended
	12/31/16		12/31/15		12/31/14
Rental income	$	—	$	—	$	579
Operating and other expenses	—		—		(269		)
Income from discontinued operations	$	—	$	—	$	310