Investments in Real Estate

6 Months Ended

Jun. 30, 2022

NOTE 3: Investments in Real Estate

As of June 30, 2022, our investments in real estate consisted of 120 apartment properties that contain 35,594 units. The following table summarizes our investments consolidated in real estate:


	As of June 30, 2022		As of December 31, 2021		Depreciable Lives (In years)
Land	$	561,107	$	567,507	—
Building	5,571,949		5,622,492		40
Furniture, fixtures and equipment	295,426		272,356		5-10
Total investments in real estate	$	6,428,482	$	6,462,355
Accumulated depreciation	(329,903)		(243,475)
Investments in real estate, net	$	6,098,579	$	6,218,880

As of June 30, 2022, we owned two properties that were classified as held for sale. We expect the Meadows Apartments sale to close in the third quarter of 2022 and we continue to market Sycamore Terrace for sale. In connection with the sale of these properties we expect to extinguish $46,200 of mortgage debt and incur approximately $861 of loss on extinguishment of debt. The table below summarizes our held for sale properties.


Property Name	Net carrying value		Units (unaudited)
Meadows Apartments - Louisville, KY	$	36,285	400
Sycamore Terrace - Terra Haute, IN	45,533		250
Totals	$	81,818	650

Acquisitions

On April 6, 2022, we acquired Views of Music City (phase I), a 96-unit property (unaudited) located in Nashville, TN for $25,440. We purchased this property from one of our unconsolidated joint ventures. On account of our equity

interest in this joint venture, we received $4,428 of the sales proceeds, comprised of $3,406 as a return of capital and $1,022 as a preferred return on capital. In accordance with ASC 970-323-30-7, we recorded the preferred return on capital as a reduction to the carrying value of the purchased real estate, deferring the gain which will be recognized as income on a pro rata basis as the real estate is depreciated or when it is sold to a third party.

The following table summarizes the relative fair value of the assets and liabilities associated with the acquisition of the Views of Music City (phase I), acquired during the six month period ended June 30, 2022, on the date of acquisition accounted for under FASB ASC Topic 805-50-15-3.


	Fair Value of Assets Acquired During the Six Months Ended June 30, 2022
Assets acquired:
Investments in real estate	$	24,481

Intangible assets	37
Total assets acquired	24,518
Liabilities assumed:
Accounts payable and accrued expenses	7
Other liabilities	53
Total liabilities assumed	60
Estimated fair value of net assets acquired	$	24,458

Dispositions

The following table summarizes our dispositions for the six months ended June 30, 2022:


Property Name	Date of Sale	Sale Price		Gain on sale
Riverchase	01/18/2022	$	31,000	$	12,901
Heritage Park	02/02/2022	48,500		31,366
Raindance	02/02/2022	47,500		33,748
Haverford	02/02/2022	31,050		16,697
Total		$	158,050	$	94,712