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Investments in Real Estate
 12 Months Ended
Dec. 31, 2013
Investments in Real Estate

NOTE 3: Investments in Real Estate

As of December 31, 2013, our investments in real estate consisted of ten apartment properties with 2,790 units. The table below summarizes our investments in real estate:

 

     2013     2012     Depreciable Lives

Land

    $ 37,418      $ 30,168      —  

Building

      149,657        121,390      40

Furniture, fixtures and equipment

      3,021        2,007      5-10
  

 

 

    

 

 

    

Total investment in real estate

      190,096        153,565     

Accumulated depreciation

      (15,775 )      (12,283 )   
  

 

 

    

 

 

    

Investments in real estate, net

    $ 174,321      $ 141,282     
  

 

 

    

 

 

    

Acquisitions

On November 22, 2013, we acquired a fee simple interest in a 432-unit apartment residential community located in Jackson, Mississippi, known as The Crossings at Ridgewood Apartments. We acquired the property through a wholly owned subsidiary, from an unaffiliated third party. We acquired the property for an aggregate purchase price of $23,000 exclusive of closing costs.

On September 19, 2013, we acquired a fee simple interest in a 354-unit apartment residential community located in Indianapolis, Indiana, known as Berkshire Square Apartments. We acquired the property through a wholly owned subsidiary of our operating partnership, from an unaffiliated third party. We acquired the property for an aggregate purchase price of $13,250 exclusive of closing costs.

On October 11, 2012, we acquired a fee simple interest in a 192-unit apartment residential community located in Indianapolis, Indiana, known as Runaway Bay Apartments. We acquired the property through a wholly owned subsidiary of our operating partnership, from an unaffiliated third party. We acquired the property for an aggregate purchase price of $15,750 exclusive of closing costs. We paid the purchase price with a combination of a $10,238 first mortgage loan and $5,512 in cash.

The following table summarizes the aggregate fair value of the assets associated with the properties acquired during the years ended December 31, 2013 and 2012, on the respective date of each acquisition, for the real estate accounted for under FASB ASC Topic 805.

 

Description

    Fair Value
of Assets Acquired
During the
Year Ended
December 31,
2013		      Fair Value
of Assets Acquired
During the
Year Ended
December 31,
2012		  

Assets acquired:

      

Investments in real estate

    $ 35,517       $ 15,397   

Intangible asset

      733         353   
  

 

 

     

 

 

  

Total

    $ 36,250       $ 15,750   
  

 

 

     

 

 

  

Our consolidated unaudited pro forma information, after including the acquisition of real estate properties, is presented below as if the acquisitions occurred on January 1, 2012. These pro forma results are not necessarily indicative of the results which actually would have occurred if the acquisition occurred on the first day of the periods presented, nor does the pro forma financial information purport to represent the results of operations for future periods:

 

Description

    For the
Year Ended
December 31, 2013		      For the
Year Ended
December 31, 2012		  

Total revenue, as reported

    $ 19,943       $ 16,629   

Pro forma revenue

      25,238         24,025   

Net income (loss) allocable to common shares, as reported

      615         (123 ) 

Pro forma net income (loss) allocable to common shares

      1,348         398   

 

We have not yet completed the process of estimating the fair value of assets acquired and liabilities assumed during 2013. Accordingly, our preliminary estimates and the allocation of the purchase price to the assets acquired and liabilities assumed may change as we complete the process. In accordance with FASB ASC Topic 805, changes, if any, to the preliminary estimates and allocation will be reported in our financial statements retrospectively.