Investments in Real Estate

9 Months Ended

Sep. 30, 2022

NOTE 3: Investments in Real Estate

As of September 30, 2022, our investments in real estate consisted of 122 apartment properties that contain 36,176 units (unaudited). The following table summarizes our investments in real estate:


	As of September 30, 2022		As of December 31, 2021		Depreciable Lives (In years)
Land	$	581,698	$	567,507	—
Building	5,728,487		5,622,492		40
Furniture, fixtures and equipment	323,902		272,356		5-10
Total investments in real estate	$	6,634,087	$	6,462,355
Accumulated depreciation	(379,171)		(243,475)
Investments in real estate, net	$	6,254,916	$	6,218,880

As of September 30, 2022, we owned two properties that were classified as held for sale. The sale of Meadows Apartments closed on October 26, 2022 and we expect Sycamore Terrace to close in the fourth quarter of 2022. In

connection with the sale of these properties we expect to extinguish $46,087 of mortgage debt. The table below summarizes our held for sale properties.


Property Name	Net carrying value		Units (unaudited)
Meadows Apartments - Louisville, KY	$	36,545	400
Sycamore Terrace - Terre Haute, IN	45,633		250
Totals	$	82,178	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.

On August 16, 2022, we acquired Cyan Mallard Creek, a 234-unit property (unaudited) located in Charlotte, NC for $80,000.

On September 13, 2022, we acquired The Enclave at Tranquility Lake, a 348-unit property (unaudited) located in Tampa, FL for $98,000.

The following table summarizes the relative fair value of the assets and liabilities associated with acquisitions during the nine months ended September 30, 2022, on the date of acquisition accounted for under FASB ASC Topic 805-50-15-3.


	Fair Value of Assets Acquired During the Nine Months Ended September 30, 2022
Assets acquired:
Investments in real estate	$	201,611
Other assets	229
Intangible assets	1,136
Total assets acquired	202,976
Liabilities assumed:
Accounts payable and accrued expenses	872
Other liabilities	327
Total liabilities assumed	1,199
Estimated fair value of net assets acquired	$	201,777

Dispositions

The following table summarizes our dispositions for the nine months ended September 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