Investments in Real Estate

12 Months Ended

Dec. 31, 2022

As of December 31, 2022, our investments in real estate consisted of 120 apartment properties (unaudited) that contain 35,526 units (unaudited). The following table summarizes our investments in real estate:


	2022		2021		Depreciable Lives (In years)
Land	$	579,094	$	567,507	—
Building	5,695,711		5,622,492		40
Furniture, fixtures and equipment	340,438		272,356		5-10
Total investments in real estate	$	6,615,243	$	6,462,355
Accumulated depreciation	(425,034)		(243,475)
Investments in real estate, net	$	6,190,209	$	6,218,880

As of December 31, 2022, we owned one property that was classified as held for sale. We expect the sale of this property to occur in the first quarter of 2023 and the proceeds from the sale will be used to reduce indebtedness. The table below summarizes our held for sale properties.


Property Name - Market	Net Carrying Value		Units (unaudited)
Eagle Lake Landing - Indianapolis, IN	$	35,777	277

Acquisitions

The below table summarizes asset acquisitions for the year ended December 31, 2022:


Property Name	Date of Purchase	Market	Units (unaudited)	Purchase Price
Views of Music City (phase I)	04/06/2022	Nashville, TN	96	$	25,440
Cyan Mallard Creek	08/16/2022	Charlotte, NC	234	80,000
The Enclave at Tranquility Lake	09/13/2022	Tampa, FL	348	98,000
Total			678	$	203,440

On April 6, 2022, we acquired Views of Music City (phase I), a 96-unit property (unaudited) located in Nashville, TN for $25,440. Views of Music City (phase I) was acquired 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 aggregate fair value of the assets and liabilities associated with asset acquisition of properties during the year ended December 31, 2022, on the date of acquisition.


Description	Fair Value of Assets Acquired During the Year Ended December 31, 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 FV of net assets acquired	$	201,777

The below table summarizes asset acquisitions for the year ended December 31, 2021:


Property Name	Date of Purchase	Market	Units (unaudited)	Purchase Price
Vesta City Park	05/18/2021	Charlotte, NC	272	$	66,544
Cyan Craig Ranch	06/08/2021	Dallas, TX	322	73,372
Total			594	$	139,916

As discussed in Note 3: IRT And STAR Merger, we acquired 68 properties (unaudited) comprised of 21,394 units (unaudited) that were accounted for as a business combination.

The below table summarizes asset acquisitions for the year ended December 31, 2020:


Property Name	Date of Purchase	Market	Units (unaudited)	Purchase Price
Adley at Craig Ranch	2/11/2020	Dallas, TX	251	$	51,204
Legacy at Jones Farm	12/1/2020	Huntsville, AL	421	94,027
Total			672	$	145,231

Dispositions

The below table summarizes the dispositions for the year ended December 31, 2022:


Property Name	Date of Sale	Sale Price		Gain (loss) on Sale (1)
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
Meadows Apartments	10/26/2022	57,000		20,573
Sycamore Terrace (2)	12/06/2022	42,000		(3,529)
Total		$	257,050	$	111,756


			(1)			The gain (loss) for these properties is net of $409 of defeasance and debt prepayment gains.
			(2)			Impairment charge recognized following a fourth quarter amendment to the purchase and sale agreement which resulted in the carrying value of the property exceeding its fair value.

The below table summarizes the dispositions for the year ended December 31, 2021:


Property Name	Date of Sale	Sale Price		Gain on Sale (1)
King's Landing	07/28/2021	$	40,100	$	11,566
Crestmont	12/13/2021	48,500		33,067
Creekside	12/16/2021	91,000		43,104
Total		$	179,600	$	87,737


			(1)			The gain for these properties is net of $2,312 of defeasance costs and debt prepayment costs.

The below table summarizes the dispositions for the year ended December 31, 2020:


Property Name	Date of Sale	Sale Price		Gain (loss) on Sale (1)
Trails at Signal Mountain	10/27/2020	$	20,000	$	6,237
Live Oak Trace (1)	11/10/2020	25,400		(1,931)
Lakeshore on the Hill	11/23/2020	14,330		3,537
Total		$	59,730	$	7,843


			(1)			Includes a $1,840 impairment charge recorded in the three months ended September 30, 2020.