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Investments in Real Estate | 12 Months Ended
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Dec. 31, 2017
Banking And Thrift [Abstract] |
Investments in Real Estate | NOTE 3: Investments in Real Estate As of December 31, 2017, our investments in real estate consisted of 52 apartment properties (unaudited). The table below summarizes our investments in real estate:
|  | 2017 |  |  | 2016 |  |  | Depreciable Lives (In years)
Land |  | $ | 193,026 |  |  | $ | 165,120 |  |  | -
Building |  |  | 1,279,777 |  |  |  | 1,066,611 |  |  | 40
Furniture, fixtures and equipment |  |  | 31,353 |  |  |  | 17,625 |  |  | 5-10
Total investment in real estate |  | $ | 1,504,156 |  |  | $ | 1,249,356 |  |  |
Accumulated depreciation |  |  | (84,097 | ) |  |  | (51,511 | ) |  |
Investments in real estate, net |  | $ | 1,420,059 |  |  | $ | 1,197,845 |  |  |
As of December 31, 2017 and 2016, we had investments in real estate valued at $0 and $60,786, respectively, classified as held for sale. Acquisitions The below table summarizes the acquisitions for the year ended December 31, 2017:
Property Name |  | Date of Purchase |  | Location |  | Units (unaudited) |  |  | Purchase Price |
Lakes of Northdale |  | 2/27/2017 |  | Tampa, FL |  | 216 |  |  | $ | 29,750 |
Haverford Place |  | 5/24/2017 |  | Lexington, KY |  | 160 |  |  | $ | 14,240 |
South Terrace (1) |  | 6/30/2017 |  | Durham, NC |  | 328 |  |  | $ | 42,950 |
Cherry Grove (2) |  | 9/26/2017 |  | North Myrtle Beach, SC |  | 172 |  |  | $ | 16,157 |
Riverchase (2) |  | 9/26/2017 |  | Indianapolis, IN |  | 216 |  |  | $ | 18,899 |
Kensington (2) |  | 9/26/2017 |  | Canal Winchester, OH |  | 264 |  |  | $ | 24,409 |
Schirm Farms (2) |  | 9/26/2017 |  | Canal Winchester, OH |  | 264 |  |  | $ | 23,749 |
Live Oak Trace (2) |  | 10/25/2017 |  | Baton Rouge, LA |  | 264 |  |  | $ | 28,501 |
Tides at Calabash (2) |  | 11/14/2017 |  | Wilmington, NC |  | 168 |  |  | $ | 14,269 |
Brunswick Point (2) |  | 12/12/2017 |  | Wilmington, NC |  | 288 |  |  | $ | 30,661 |
Total |  |  |  |  |  |  | 2,340 |  |  | $ | 243,585 |
| (1) | This property was acquired from a joint venture of which our former advisor was a controlling member. See Note 8: Related Party Transactions and Arrangements. In conjunction with this acquisition, we issued IROP units to third parties that were members of the joint venture that owned the property. See Note 6: Stockholder Equity and Noncontrolling Interests.
| (2) | These properties were acquired as a part of our acquisition of a nine-community portfolio (the HPI Portfolio), totaling 2,353 units (unaudited), which we agreed to acquire on September 3, 2017 for a total purchase price of $228,144. In connection with the acquisition of these properties, we incurred defeasance costs totaling $3,624, which are included in Acquisition related debt extinguishment expenses within the Consolidated Statements of Operations.
The following table summarizes the aggregate fair value of the assets and liabilities associated with the properties acquired, outside of the HPI Portfolio, during the year ended December 31, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805.
Description |  | Fair Value of Asset Acquired During the Year Ended December 31, 2017 |
Assets acquired: |  |  |  |
Investments in real estate |  | $ | 86,012 |
Accounts receivable and other assets |  |  | 331 |
Intangible assets |  |  | 928 |
Total assets acquired |  | $ | 87,271 |
Liabilities assumed: |  |  |  |
Indebtedness |  | $ | - |
Accounts payable and accrued expenses |  |  | 398 |
Accrued interest payable |  |  | - |
Other liabilities |  |  | 150 |
Total liabilities assumed |  | $ | 548 |
Estimated fair value of net assets acquired |  | $ | 86,723 |
The following table summarizes the aggregate fair value of the assets and liabilities associated with the HPI Portfolio properties acquired during the year ended December 31, 2017, on the date of acquisition, accounted for under FASB ASC Topic 805.
Description |  | Fair Value of Asset Acquired During the Year Ended December 31, 2017 |
Assets acquired: |  |  |  |
Investments in real estate |  | $ | 155,059 |
Accounts receivable and other assets |  |  | 290 |
Intangible assets |  |  | 1,587 |
Total assets acquired |  | $ | 156,936 |
Liabilities assumed: |  |  |  |
Indebtedness |  | $ | 18,977 |
Accounts payable and accrued expenses |  |  | 1,479 |
Accrued interest payable |  |  | - |
Other liabilities |  |  | 607 |
Total liabilities assumed |  | $ | 21,063 |
Estimated fair value of net assets acquired |  | $ | 135,873 |
The table below presents the revenue and net income, excluding any acquisition and defeasance costs, for the properties acquired during the year ended December 31, 2017 as reported in our consolidated financial statements.
|  | For the Year Ended December 31, 2017 |
Property |  | Total revenue |  |  | Net Income allocable to common shares |
Lakes of Northdale |  | $ | 2,603 |  |  | $ | 709 |
Haverford Place |  |  | 1,078 |  |  |  | 302 |
South Terrace |  |  | 2,071 |  |  |  | 379 |
Cherry Grove |  |  | 526 |  |  |  | 140 |
Riverchase |  |  | 533 |  |  |  | 70 |
Kensington |  |  | 736 |  |  |  | 187 |
Schirm Farms |  |  | 711 |  |  |  | 170 |
Live Oak Trace |  |  | 424 |  |  |  | 108 |
Tides at Calabash |  |  | 315 |  |  |  | 177 |
Brunswick Point |  |  | 137 |  |  |  | 24 |
Total |  | $ | 9,134 |  |  | $ | 2,266 |
The table below represents the revenue, net income and earnings per share effect of the properties acquired during the year ended December 31, 2017, as reported in our consolidated financial statements and on a pro forma basis as if the acquisition occurred on January 1, 2016. These pro forma results are not necessarily indicative of the results that actually would have occurred if the acquisition had 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, 2017 |  |  | For the Year Ended December 31, 2016 |
Pro forma total revenue (unaudited) |  | $ | 177,642 |  |  | $ | 177,412 |
Pro forma net income (loss) allocable to common shares (unaudited) |  |  | 36,219 |  |  |  | (3,398 | )
Earnings (loss) per share attributable to common shareholders: |  |  |  |  |  |  |  |
Basic-pro forma (unaudited) |  | $ | 0.49 |  |  | $ | (0.07 | )
Diluted-pro forma (unaudited) |  | $ | 0.49 |  |  | $ | (0.07 | )
On May 1, 2015 we acquired a 236 unit (unaudited) residential community located in Indianapolis, Indiana known as Bayview Club. We acquired the property for an aggregate purchase price of $25,250 exclusive of closing costs. On September 17, 2015 the merger with Trade Street Residential, or TSRE, closed. As part of this merger we acquired 19 properties containing 4,989 units (unaudited). Net assets acquired was $328,240 and fair value of the consideration transferred totaled $263,636, consisting of $109,857 of common shares and $13,998 of IRT OP units, and cash consideration of $139,781. As the fair value of the net assets acquired exceeded the fair value of the consideration, we recognized a gain from a bargain purchase of $64,604. During 2016, we received additional information regarding estimates we had made for certain accrued expenses related to our acquisition of TSRE. This information led to an increase in the fair value of the net assets we acquired of $732, which was recognized during the year ended December 31, 2016. In January 2018, we acquired two properties, Creekside and Hartshire, that had a total of 716 units (unaudited) for a combined purchase price of $71,498. These properties were the final two remaining properties that were a part of the HPI Portfolio acquisition. These properties were in Indianapolis, IN and Atlanta, GA. In January 2018, we also acquired The Chelsea, a 312-unit (unaudited) property in Columbus, OH, for $36,750. Dispositions The below table summarizes the dispositions for the year ended December 31, 2017 and also presents each property’s contribution to net income allocable to common shares, excluding the impact of the gain on sale:
|  |  |  |  |  |  |  |  |  |  |  | Net income allocable to common shares |
Property Name |  | Date of Sale |  | Sale Price |  |  | Gain (loss) on sale (1) |  |  | For the Year Ended December 31, 2017 |  |  | For the Year Ended December 31, 2016 |
Copper Mill |  | 5/5/2017 |  | $ | 32,000 |  |  | $ | 15,595 |  |  | $ | 548 |  |  | $ | 1,105 |
Heritage Trace |  | 6/1/2017 |  |  | 11,600 |  |  |  | (1,256 | ) |  |  | 240 |  |  |  | (47 | )
Berkshire Square |  | 6/9/2017 |  |  | 16,000 |  |  |  | 1,510 |  |  |  | 201 |  |  |  | 306 |
Crossings |  | 11/28/2017 |  |  | 27,200 |  |  |  | 3,061 |  |  |  | 1,374 |  |  |  | 941 |
Total |  |  |  | $ | 86,800 |  |  | $ | 18,910 |  |  | $ | 2,363 |  |  | $ | 2,305 |
| (1) | The gain (loss) on sale for these properties is net of $4,251 of defeasance and debt prepayment premium costs. All properties were previously classified as held for sale.
The below table summarizes the dispositions for the year ended December 31, 2016 and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale:
Property Name |  | Date of Sale |  | Sale Price |  |  | Gain (loss) on sale |
Cumberland Glen (1) |  | 02/18/2016 |  | $ | 18,000 |  |  | $ | 2,452 |
Belle Creek |  | 04/07/2016 |  |  | 23,000 |  |  |  | 14,191 |
Tresa |  | 05/05/2016 |  |  | 47,000 |  |  |  | 15,142 |
Total |  |  |  | $ | 88,000 |  |  | $ | 31,785 |
| (1) | Gain (loss) on sale related to this property includes a defeasance premium of $1,343.
On December 22, 2015, we disposed of one multi-family real estate property for a total sale price of $33,600. We recorded a gain on the sale of this asset of $6,420. On October 15, 2015, we sold a parcel of land acquired in the TSRE merger for $3,350. After considering actual closing costs, we recognized a loss on the sale of this asset of $8.

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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 FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 40 -Section 40 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84176060&loc=d3e18551-111553 Reference 2: 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=84176060&loc=d3e18511-111553 Reference 3: 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=82891408&loc=d3e4437-111522 Reference 4: 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 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule III)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -SubTopic 360 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-28) -URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024 Reference 8: 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 9: 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(8)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 + Details
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