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Real Estate Owned
 6 Months Ended
Jun. 30, 2012
Real Estate [Abstract]  
REAL ESTATE OWNED
REAL ESTATE OWNED
Real estate assets owned by the Company consist of income producing operating properties, properties under development, land held for future development, and sold properties. As of June 30, 2012, the Company owned and consolidated 145 communities in 10 states plus the District of Columbia totaling 41,681 apartment homes. The following table summarizes the carrying amounts for our real estate owned (at cost) as of June 30, 2012 and December 31, 2011 (dollar amounts in thousands):
 
June 30, 2012
 
December 31, 2011
Land
$
1,856,026

 
$
1,821,762

Depreciable property — held and used:
 
 
 
Building and improvements
5,362,012

 
5,203,484

Furniture, fixtures and equipment
261,201

 
244,101

Under development:
 
 
 
Land
104,105

 
115,198

Construction in progress
177,901

 
131,601

Sold or held for sale:
 
 
 
Land
—

 
98,340

Building and improvements
—

 
410,123

Furniture, fixtures and equipment
—

 
49,862

Real estate owned
7,761,245

 
8,074,471

Accumulated depreciation
(1,769,530
)
 
(1,831,727
)
Real estate owned, net
$
5,991,715

 
$
6,242,744


On April 27, 2012, the Company acquired the remaining 80% ownership interests in two apartment communities (633 homes) for $11.7 million from an unaffiliated member of one our joint ventures. (See Note 5, Joint Ventures.)

Total acquisition value of these communities at the acquisition date was recorded $10.1 million to land; $35.9 million to buildings and improvements; $1.5 million to furniture, fixtures, and equipment; $1.5 million to intangible assets; and $38.1 million to assumed debt and liabilities.

The Company records the fair value of the tangible and identifiable intangible assets and liabilities acquired based on their estimated fair value. When recording the acquisition of a community, the Company first assigns fair value to the estimated intangible value of the existing lease agreements and then to the estimated value of the land, building and fixtures assuming the community is vacant. The primary, although not only, identifiable intangible asset associated with our portfolio is the value of existing lease agreements. The Company estimates the intangible value of the lease agreements by determining the lost revenue associated with a hypothetical lease-up.
All development projects and related carrying costs are capitalized and reported on the Consolidated Balance Sheets as “Real estate under development.” The costs of development projects which include interest, real estate taxes, insurance and allocated development overhead related to support costs for personnel working directly on the development are capitalized during the construction period. These costs, excluding the direct costs of development and capitalized interest for the three and six months ended June 30, 2012 and 2011 were $2.0 million and $4.7 million and $1.8 million and $5.9 million, respectively. During the three and six months ended June 30, 2012 and 2011, total capitalized interest was $5.1 million and $10.0 million, and $3.5 million and $6.1 million, respectively.