Significant Transactions

9 Months Ended

Sep. 30, 2019

Note 3 — Significant Transactions

Acquisition of 1001 Brickell Bay Drive

During the three months ended September 30, 2019, we acquired a 95% interest in 1001 Brickell Bay Drive, a 1.8-acre waterfront parcel in Miami, Florida, currently improved with an office building. Summarized information regarding this acquisition is set forth in the table below (dollars in thousands):

Purchase price	$	156,750
Capitalized transaction costs		2,339
Noncontrolling interests in consolidated real estate partnerships		8,250
Total consideration (1)	$	167,339

Acquisition costs allocated to land	$	145,648
Acquisition costs allocated to building and improvements		153,241
Acquisition costs allocated to intangible assets		16,500
Acquisition costs allocated to intangible liabilities		(6,519	)
Deferred tax liability assumed (2)		(141,531	)
Total consideration	$	167,339

(1)	Total consideration includes $66.8 million of debt assumed.

(2)

The deferred tax liability of $141.5 million resulted from the corporate structure utilized to complete the acquisition and is due to the difference between the purchase price determined in accordance with GAAP and the tax basis of the property. For the three and nine months ended September 30, 2019, we recorded an income tax benefit of $1.7 million related to this property.

Acquisitions of Apartment Communities

During the nine months ended September 30, 2019, we acquired an apartment community located in Ardmore, Pennsylvania, a suburb of Philadelphia. Summarized information regarding this acquisition is set forth in the table below (dollars in thousands):

Number of apartment homes		110

Purchase price (1)	$	65,833
Capitalized transaction costs		892
Total consideration	$	66,725

Acquisition costs allocated to land	$	4,929
Acquisition costs allocated to building (2)		61,271
Acquisition costs allocated to furniture and fixtures (2)		525
Total consideration	$	66,725

(1)

The gross purchase price of the acquisition consisted of $32.8 million in cash, $30.9 million of assumed property-level debt and the issuance of 59,761 OP Units. In accordance with GAAP, the OP Units were valued at $50.77 per unit, the Aimco Common Stock closing price on April 5, 2019, the purchase date.

(2)	Amounts are included within the buildings and improvements line item in our condensed consolidated balance sheets.

Dispositions of Apartment Communities

During the nine months ended September 30, 2019, we sold apartment communities as summarized below (dollars in thousands):

Apartment communities sold		8
Apartment homes sold		2,605
Gain on dispositions of real estate	$	356,929

The apartment communities sold were predominantly located outside of our primary markets or in lower-rated locations within our primary markets and had average revenues per apartment home significantly below those of our retained portfolio.

In addition to the apartment communities we sold during the current period, from time to time we may be marketing for sale certain apartment communities that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such communities meet the criteria to be classified as held for sale. As of September 30, 2019, no apartment communities were classified as held for sale.