Real Estate Disposition Activities

12 Months Ended

Dec. 31, 2012

Real Estate Disposition Activities

Real Estate Disposition Activities

6. Real Estate Disposition Activities

        During 2012, the Company sold four communities: Waterford, located in Oakland, CA; Avalon Arlington Heights, located in Chicago, IL; and Avalon Wildreed and Avalon Highgrove, both located in Everett, WA. These communities, containing a total of 1,578 apartment homes, were sold for an aggregate price of $268,250,000. The dispositions resulted in an aggregate gain in accordance with GAAP of $145,271,000.

        The Company sold one unimproved land parcel in Chicago, IL, for $12,300,000, resulting in an aggregate gain in accordance with GAAP of $280,000. The Company recorded impairment charges of approximately $16,363,000 related to this land parcels in prior years when it was determined that the site would not be developed.

        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 proceeds
South Clark (Land)	Chicago, IL		Q212		N/A	(1)	$	—	$	12,300	$	10,849
Waterford	Oakland, CA		Q212		544			—		86,500		84,488
Avalon Arlington Heights	Chicago, IL		Q212		409			—		87,250		86,888
Avalon Wildreed	Everett, WA		Q412		234			—		35,000		33,994
Avalon HighGrove	Everett, WA		Q412		391			—		59,500		57,799
Total of all 2012 asset sales					1,578		$	—	$	280,550	$	274,018
Total of all 2011 asset sales					1,038		$	—	$	292,965	$	287,358
Total of all 2010 asset sales					1,007		$	—	$	198,600	$	194,009

(1)

Disposition of an unimproved land parcel.

        As of December 31, 2012, the Company had one community that qualified as held for sale.

        The operations for any real estate assets sold from January 1, 2010 through December 31, 2012 and the real estate assets that qualified as discontinued operations and held for sale as of December 31, 2012 have been presented as income from discontinued operations in the accompanying Consolidated Statements of Comprehensive Income. Accordingly, certain reclassifications have been made to prior years to reflect discontinued operations consistent with current year presentation.

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

	For the year ended
	12-31-12			12-31-11			12-31-10
Rental income	$	25,373		$	53,290		$	56,705
Operating and other expenses		(8,075	)		(25,513	)		(31,164	)
Interest expense, net		(133	)		(4,808	)		(5,212	)
Loss on extinguishment of debt		(602	)		(3,880	)		—
Depreciation expense		(4,068	)		(11,209	)		(12,379	)
Income (loss) from discontinued operations	$	12,495		$	7,880		$	7,950