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Investments in Real Estate | 9 Months Ended
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Sep. 30, 2014
Investments in Real Estate | NOTE 3: Investments in Real Estate As of September 30, 2014, our investments in real estate consisted of 22 apartment properties with 6,470 units. As of December 31, 2013, our investments in real estate consisted of 10 apartment properties with 2,790 units. The table below summarizes our investments in real estate:
|  | As of September 30, 2014 |  |  | As of December 31, 2013 |  |  | Depreciable Lives (In years)
Land |  | $ | 88,585 |  |  | $ | 37,418 |  |  | —
Building |  |  | 350,585 |  |  |  | 149,657 |  |  | 40
Furniture, fixtures and equipment |  |  | 4,880 |  |  |  | 3,021 |  |  | 5-10
Total investment in real estate |  |  | 444,050 |  |  |  | 190,096 |  |  |
Accumulated depreciation |  |  | (20,848 | ) |  |  | (15,775 | ) |  |
Investments in real estate, net |  | $ | 423,202 |  |  | $ | 174,321 |  |  |
Acquisitions On October 20, 2014, we entered into five purchase and sale agreements to acquire an apartment residential portfolio with a total of 1,549 units located in Louisville, KY. Pursuant to the terms and conditions of the purchase and sale agreements, the aggregate purchase price is $162,500. The closing is subject to customary terms and conditions and we may terminate any of the purchase agreements with or without cause prior to the expiration of the due diligence period. On September 15, 2014, we acquired a 500-unit apartment residential community located in Shelby County, TN, known as Stonebridge Crossing. We acquired the property for an aggregate purchase price of $29,800 exclusive of closing costs. On September 5, 2014, we acquired a 268-unit apartment residential community located in Garner, North Carolina, known as Lenoxplace at Garner Station. We acquired the property for an aggregate purchase price of $24,250 exclusive of closing costs. On August 28, 2014, we acquired a 360-unit apartment residential community located in Cordova, Tennessee, known as Walnut Hill. We acquired the property for an aggregate purchase price of $27,900 exclusive of closing costs. In connection with the acquisition, our operating partnership issued 137,361 limited partnership units valued at $1,377. On June 4, 2014, we acquired a 170-unit apartment residential community located in Ridgeland, Mississippi, known as Arbors at the Reservoir. We acquired the property for an aggregate purchase price of $20,250 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. In connection with the acquisition our operating partnership issued 222,062 limited partnership units valued at $1,986. 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. The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired during the nine-month period ended September 30, 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 Nine-Month Period Ended September 30, 2014 |
Assets acquired: |  |  |  |
Investments in real estate |  | $ | 252,095 |
Restricted cash |  |  | 320 |
Other assets |  |  | 1,747 |
Deferred financing costs |  |  | 548 |
Intangible asset |  |  | 3,736 |
Total assets acquired |  | $ | 258,446 |
Liabilities assumed: |  |  |  |
Loans payable on real estate |  | $ | 69,512 |
Accounts payable and accrued expenses |  |  | 2,630 |
Other liabilities |  |  | 518 |
Total liabilities assumed |  |  | 72,660 |
Estimated fair value of net assets acquired |  | $ | 185,786 |
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 September 30, 2014 |  |  | For the Three-Month Period Ended September 30, 2013 |
Total revenue from acquisitions, as reported |  | $ | 6,607 |  |  | $ | 0 |
Pro forma revenue |  |  | 15,295 |  |  |  | 13,309 |
Net income (loss) allocable to common shares from acquisitions, as reported |  |  | (155 | ) |  |  | 0 |
Pro forma net income (loss) allocable to common shares |  |  | 252 |  |  |  | 1,099 |
Earnings (loss) per share |  |  |  |  |  |  |  |
Basic-as reported |  | $ | (0.01 | ) |  | $ | 0.00 |
Diluted-as reported |  | $ | (0.01 | ) |  | $ | 0.00 |
Basic-pro forma |  | $ | 0.01 |  |  | $ | 0.14 |
Diluted-pro forma |  | $ | 0.01 |  |  | $ | 0.14 |
Description |  | For the Nine-Month Period Ended September 30, 2014 |  |  | For the Nine-Month Period Ended September 30, 2013 |
Total revenue from acquisitions, as reported |  | $ | 13,525 |  |  | $ | 0 |
Pro forma revenue |  |  | 45,189 |  |  |  | 39,258 |
Net income (loss) allocable to common shares from acquisitions, as reported(1) |  |  | 2,457 |  |  |  | 0 |
Pro forma net income (loss) allocable to common shares |  |  | 4,872 |  |  |  | 2,845 |
Earnings (loss) per share |  |  |  |  |  |  |  |
Basic-as reported |  | $ | 0.13 |  |  | $ | 0.00 |
Diluted-as reported |  | $ | 0.13 |  |  | $ | 0.00 |
Basic-pro forma |  | $ | 0.26 |  |  | $ | 0.73 |
Diluted-pro forma |  | $ | 0.26 |  |  | $ | 0.73 |
(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. We did not make any adjustments to the purchase price allocation during the three and nine-month periods ended September 30, 2014.

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- Definition The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 11 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=28367877&loc=d3e4437-111522 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.10(4)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 28 -Article 12 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule III -Article 5 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 40 -Section 40 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905009&loc=d3e18511-111553 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 35 -Paragraph 43 -URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1739-110224 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 40 -Section 40 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6905009&loc=d3e18551-111553 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Subparagraph 4 -Article 9 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 35 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=29634951&loc=d3e1424-110224 + Details
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