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Investments in Real Estate | 12 Months Ended
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Dec. 31, 2023
Real Estate [Abstract] |
Investments in Real Estate | Investments in Real Estate As of December 31, 2023, our investments in real estate consisted of 116 (unaudited) operating apartment properties that contain 34,431 (unaudited) units and one (unaudited) development property that contains 325 (unaudited) units. The following table summarizes our investments in real estate:
| 2023 |  | 2022 |  | Depreciable Lives (In years)
Land | $ | 540,950 |  |  | $ | 579,094 |  |  | —
Building | 5,288,956 |  |  | 5,695,711 |  |  | 40
Furniture, fixtures and equipment | 429,306 |  |  | 340,438 |  |  | 5-10
Total investments in real estate | $ | 6,259,212 |  |  | $ | 6,615,243 |  |  |
Accumulated depreciation | (582,760) |  |  | (425,034) |  |  |
Investments in real estate, net | $ | 5,676,452 |  |  | $ | 6,190,209 |  |  |
Portfolio Optimization and Deleveraging Strategy On October 26, 2023, our Board of Directors approved a plan, which we refer to as our Portfolio Optimization and Deleveraging Strategy, which targeted the sale of 10 properties located in seven markets in order to exit or reduce our presence in these markets while also deleveraging our balance sheet. As of December 31, 2023, four of these targeted properties in four markets were sold. As of December 31, 2023, the six remaining properties targeted for sale under our Portfolio Optimization and Deleveraging Strategy were classified as held for sale. We sold two of these six assets subsequent to December 31, 2023, and as of the date of this Annual Report, the remaining four assets are under executed contracts of sale and are expected to close in the first quarter of 2024. We expect to use the net proceeds from the sale of these properties to reduce our indebtedness and recognized a loss on impairment on five of the six properties that had carrying values that exceeded the expected sales proceeds less transactions costs. While the four remaining properties that are part of the Portfolio Optimization and Deleveraging Strategy are under contracts of sale, there can be no assurance that the sales will be consummated at expected pricing levels, within expected time frames, or at all. For the year ended December 31, 2023, we recorded impairment charges that are included in (loss on impairment) gain on sale of real estate assets, net on the consolidated statements of operations as detailed in the following table.
Property Name |  | Market |  | Units (Unaudited) |  | Sale Date |  | Sale Price | (Loss on Impairment) Gain on Sale(1)
Eagle Lake Landing |  | Indianapolis, IN |  | 277 |  |  | 2/28/2023 |  | $ | 37,300 |  | $ | 1,179 |
The Meadows at River Run (2) |  | Chicago, IL |  | 374 |  |  | 12/20/2023 |  | 72,700 |  | (14,612) |
Fielders Creek (2) |  | Denver, CO |  | 217 |  |  | 12/21/2023 |  | 44,100 |  | (11,019) |
Cottage Trails at Culpepper Landing (2) |  | Norfolk, VA |  | 183 |  |  | 12/28/2023 |  | 40,750 |  | (10,168) |
Oak Crossing (2) |  | Fort Wayne, IN |  | 222 |  |  | 12/28/2023 |  | 43,100 |  | 1,029 |
Belmar Villas (2)(3) |  | Denver, CO |  | 318 |  | 2/13/2024 |  | 74,300 |  | (7,195) |
Villas at Kingwood (2)(3) |  | Houston, TX |  | 330 |  | 2/13/2024 |  | 53,700 |  | (4,634) |
Villas at Huffmeister (2)(3) |  | Houston, TX |  | 294 |  | (5) |  | 44,250 |  | (4,097) |
Hearthstone at City Center (2)(3) |  | Denver, CO |  | 360 |  | (5) |  | 74,000 |  | (9,895) |
Reserve at Creekside (2)(3) |  | Chattanooga, TN |  | 192 |  | (5) |  | 28,500 |  | (7,135) |
Westmont Commons (2)(3)(4) |  | Asheville, NC |  | 252 |  |  | (5) |  | 49,875 |  | — |
Totals |  |  |  | 3,019 |  |  |  |  | $ | 562,575 |  | $ | (66,547) |
(1)(Loss on impairment) gain on sale of real estate sold in 2023 is net of $1,900 of defeasance and debt prepayment gains. (2)Included in the Portfolio Optimization and Deleveraging Strategy. (3)Held for sale as of December 31, 2023. (4)A gain on sale of real estate is expected as a result of the sales proceeds less transactions costs exceeding the carrying value. (5)We expect the sale of these properties to close in the first quarter of 2024. Acquisitions There were no property acquisitions during the year ended December 31, 2023. 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 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. Dispositions The table above under Portfolio Optimization and Deleveraging Strategy, summarizes the dispositions and properties held for sale for the year ended December 31, 2023 and the properties sold subsequent to the year ended December 31, 2023. The below table summarizes the dispositions for the year ended December 31, 2022:
Property Name |  | Date of Sale |  | Sale Price |  | Gain on sale (loss on impairment) (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 on sale (loss on impairment) 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 on sale for these properties is net of $2,312 of defeasance costs and debt prepayment costs.

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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/2009/role/commonPracticeRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 45 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481990/310-10-45-3 + Details
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