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Investments in Real Estate
 3 Months Ended
Mar. 31, 2014
Investments in Real Estate

NOTE 3: Investments in Real Estate

As of March 31, 2014, our investments in real estate consisted of seventeen apartment properties with 4,790 units. The table below summarizes our investments in real estate:

 

     As of March 31,
2014		     As December 31,
2013		     Depreciable Lives

Land

    $ 63,845      $ 37,418      —  

Building

      253,321        149,657      40

Furniture, fixtures and equipment

      3,271        3,021      5-10
  

 

 

    

 

 

    

Total investment in real estate

      320,437        190,096     

Accumulated depreciation

      (17,039 )      (15,775 )   
  

 

 

    

 

 

    

Investments in real estate, net

    $ 303,398      $ 174,321     
  

 

 

    

 

 

    

Acquisitions

On March 31, 2014, we acquired a 152-unit apartment residential community, known as King’s Landing, in Creve Coeur, Missouri. We acquired the property for an aggregate purchase price of $32,700 exclusive of closing costs. In connection with the acquisition we assumed an existing loan with an outstanding principal balance of $21,200 secured by the property, bearing interest at 4.0% per annum, and maturing on June 1, 2021.

On February 28, 2014, we acquired a portfolio of five apartment properties with 1,658 units located in Oklahoma and referred to as the Oklahoma portfolio or, the “OKC Portfolio”. We acquired the property for an aggregate purchase price of $65,000 exclusive of closing costs. In connection with the acquisition we assumed an existing loan with an outstanding principal balance of $45,763 secured by the property, bearing interest at 5.6% per annum and maturing on April 1, 2016. The fair value of the properties acquired and debt assumed was $70,431 and $48,312, respectively, generating a net gain of $2,882.

On January 31, 2014, we acquired a 370-unit apartment residential community located in Waukegan, Illinois, known as The Reserve at Eagle Ridge. We acquired the property for an aggregate purchase price of $29,000 exclusive of closing costs.

On May 7, 2014, we acquired a 202-unit apartment residential community located in Little Rock, Arkansas, known as Carrington. We acquired the property for an aggregate purchase price of $21,500 exclusive of closing costs.

 

The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the three months ended March 31, 2014, on the date of each acquisition, for the real estate accounted for under FASB ASC Topic 805.

 

Description

    Fair Value
of Assets Acquired
During the
Three-Month Period Ended
March 31,
2014		  

Assets acquired:

   

Investments in real estate

    $ 130,091   

Restricted cash

    $ 320   

Other assets

    $ 943   

Deferred financing costs

    $ 548   

Intangible asset

    $ 2,040   
  

 

 

  

Total assets acquired

    $ 133,942   

Liabilities assumed:

   

Loans payable on real estate

    $ 69,512   

Accounts payable and accrued expenses

    $ 1,721   

Other liabilities

    $ (374 ) 
  

 

 

  

Total liabilities assumed

    $ 70,859   
  

 

 

  

Estimated fair value of net assets acquired

    $ 63,083   
  

 

 

  

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, 2013. 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
Three-Month
Period Ended
March 31, 2014		      For the
Three-Month
Period Ended
March 31, 2013		  

Total revenue from acquisitions, as reported

    $ 1,694       $ 0   

Pro forma revenue

      4,721         4,569   

Net income (loss) allocable to common shares from acquisitions, as reported(1)

      2,633         0   

Pro forma net income (loss) allocable to common shares

      3,346         881   

Earnings (loss) per share

      

Basic-as reported

    $ 0.17       $ 0.00   

Diluted-as reported

    $ 0.17       $ 0.00   

Basic-pro forma

    $ 0.22       $ 2.55   

Diluted-pro forma

    $ 0.22       $ 0.16   

 

(1) The fair value of a property acquired exceeded the purchase price and a gain of $2,882 was recorded.

We have not yet completed the process of estimating the fair value of assets acquired and liabilities assumed. 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.