Investments in Real Estate

9 Months Ended

Sep. 30, 2020

NOTE 3: Investments in Real Estate

As of September 30, 2020, our investments in real estate consisted of 58 apartment properties that contain 15,805 units. The following table summarizes our investments in real estate:

	As of September 30, 2020			As of December 31, 2019			Depreciable Lives (In years)
Land	$	236,428		$	234,050			—
Building		1,450,823			1,453,052			40
Furniture, fixtures and equipment		128,505			109,263		5-10
Total investment in real estate	$	1,815,756		$	1,796,365
Accumulated depreciation		(194,646	)		(158,435	)
Investments in real estate, net	$	1,621,110		$	1,637,930

During the three months ended September 30, 2020, we committed to a plan to sell three properties that have been classified as held for sale as of September 30, 2020. Our plan to sell our 264-unit property in Baton Rouge, LA resulted in management concluding that the carrying value of that property was not recoverable. Based on the expected sale price, we recorded a $1,840 impairment charge during the three months ended September 30, 2020. We expect the sale of this property and the other two held for sale properties to close during the fourth quarter 2020. The table below summaries our held for sale properties.

Property Name	Location	Units		Net Carrying Value
Lakeshore on the Hill	Chattanooga, TN		123	$	10,613
Trails at Signal Mountain	Chattanooga, TN		172		13,487
Live Oak Trace	Baton Rouge, LA		264		25,164
Total			559	$	49,264

Acquisitions

In February 2020, we acquired a 251-unit property located in McKinney, TX for $51,204.

The following table summarizes the aggregate relative fair value of the assets and liabilities associated with the properties acquired during the nine-month period ended September 30, 2020, on the date of acquisition, accounted for under FASB ASC Topic 805-50-15-3.

Description	Fair Value of Assets Acquired During The Nine Months Ended September 30, 2020
Assets acquired:
Investments in real estate (a)	$	51,052
Other assets		35
Intangible assets		221
Total assets acquired	$	51,308
Liabilities assumed:
Accounts payable and accrued expenses	$	126
Other liabilities		83
Total liabilities assumed		209
Estimated fair value of net assets acquired	$	51,099

(a)

Includes $69 of property related acquisition costs capitalized during the nine months ended September 30, 2020.

Dispositions

In October 2020, we sold a 172-unit property located in Chattanooga, TN for $20,000.