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Real Estate
 12 Months Ended
Dec. 31, 2011
Real Estate [Abstract]  
Real Estate

Note 5 — Real Estate

Real estate consists of:

 

                 
    At Year-End  
    2011     2010  
    (In thousands)  

Entitled, developed and under development projects

   $ 383,026     $ 402,519  

Undeveloped land

     80,076       86,608  

Income producing properties

                

Carrying value

     129,220       95,963  

Accumulated depreciation

     (26,955 )      (23,438 ) 
   

 

 

    

 

 

  

Net carrying value

     102,265       72,525  
   

 

 

    

 

 

  
    $ 565,367     $ 561,652  
   

 

 

    

 

 

  

Included in entitled, developed and under development projects are the estimated costs of assets we expect to convey to utility and improvement districts of $61,526,000 in 2011 and $58,941,000 in 2010, including about $34,802,000 at year-end 2011 and about $36,552,000 at year-end 2010 related to our Cibolo Canyons project near San Antonio. These costs relate to water, sewer and other infrastructure assets we have submitted to utility or improvement districts for approval and reimbursement. We submitted for reimbursement to these districts $3,328,000 in 2011 and $3,316,000 in 2010. We collected $3,294,000 from these districts in 2011, of which $1,750,000 related to our Cibolo Canyons project and was accounted for as a reduction of our investment in the mixed-use development. We collected $4,752,000 from these districts in 2010, of which $500,000 related to our Cibolo Canyons project and was accounted for as a reduction of our investment in the mixed-use development. We expect to collect the remaining amounts billed when these districts achieve adequate tax bases to support payment.

Also included in entitled, developed and under development projects is our investment in the resort development owned by third parties at our Cibolo Canyons project. In 2011 and 2010, we received $6,906,000 and $1,000,000 from the Special Improvement District (SID) from hotel occupancy and sales revenues collected as taxes by the SID. We currently account for these receipts as a reduction of our investment in the resort development. At year-end 2011, we have $35,368,000 invested in the resort development.

At year-end 2011, income producing properties primarily represents our investment in a 401 unit multifamily property in Houston with net carrying value of $46,659,000 and a 413 guest room hotel in Austin with net carrying value of $21,196,000. In addition, in 2011, we reclassified $4,550,000 in land from entitled, developed and under development projects to income producing properties as result of commencing construction on a 289 unit multifamily project in Austin, Texas. At year-end 2011, our investment in this project including land and construction in progress is $13,428,000 with an estimated cost to complete construction of $17,108,000. In addition, we acquired three multifamily development sites located in Austin, Denver and Dallas for $15,981,000.

We recognized non-cash asset impairment charges $11,525,000 in 2011 principally associated with owned and consolidated residential real estate projects located near Denver and the Texas gulf coast. We recognized non-cash asset impairment charges of $9,042,000 in 2010 principally associated with a residential development project located near Atlanta and a residential development with golf course and country club property located near Fort Worth. We recognized non-cash asset impairment charges of $5,718,000 in 2009 principally related to a condominium project in Austin.

 

Depreciation expense related to income producing properties, was $3,547,000 in 2011, $2,680,000 in 2010 and $1,873,000 in 2009 and is included in other operating expense. Depreciation expense increased in 2011 primarily as a result of our 2010 acquisition of a 401 unit multifamily property in Houston. Please read Schedule III for additional information.