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ACQUISITIONS AND DISPOSITIONS
 6 Months Ended
Oct. 31, 2013
ACQUISITIONS AND DISPOSITIONS [Abstract]  
ACQUISITIONS AND DISPOSITIONS
NOTE 8 • ACQUISITIONS AND DISPOSITIONS
PROPERTY ACQUISITIONS
During the second quarter of fiscal year 2014, the Company closed on its acquisitions of:
·
a 24-unit multi-family residential property and a 98,174-square foot senior housing property (with an associated parcel of unimproved land) in Sartell, Minnesota, on approximately 21.6 acres of land, for a purchase price of $15.2 million, paid in cash;
·
a 96-unit multi-family residential property in Grand Forks, North Dakota, on approximately 6.0 acres of land, for a purchase price of $10.6 million, of which $10.4 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $200,000;
·
an approximately 58.6% interest in a joint venture entity currently constructing the RED 20 project in Minneapolis, Minnesota, a 130-unit multi-family residential property with approximately 10,000 square feet of commercial space; and
·
an approximately 9.2 acre parcel of vacant land in Jamestown, North Dakota, acquired for possible future development for a purchase price of approximately $700,000, paid in cash.
In regard to the multi-family residential and commercial healthcare properties in Sartell, Minnesota, the estimated fair values of land, building and intangible assets acquired are provisional and are based on the information that was available as of the filing of the Company's Form 10-Q. The Company will continue to evaluate the purchase price allocation as better information becomes available. The Company expects to finalize the valuation and complete the purchase price allocation as soon as practicable, but no later than one year from the acquisition date.

During the first quarter of fiscal year 2014, the Company closed on its acquisitions of:
·
a 71-unit multi-family residential property in Rapid City, South Dakota, on approximately 3.2 acres of land, for a purchase price of $6.2 million, of which $2.9 million was paid in cash and the remainder in limited partnership units of the Operating Partnership valued at $3.3 million; and
·
an approximately 0.7-acre parcel of vacant land in Minot, North Dakota acquired for possible future development for a purchase price, including acquisition costs,  of $179,000, paid in cash.
During the second quarter of fiscal year 2014, the Company placed in service the 108-unit Landing at Southgate multi-family residential property in Minot, North Dakota, owned by a joint venture entity in which the Company has an approximately 51% interest. The Company had no development projects placed in service during the first quarter of fiscal year 2014.
During the second quarter of fiscal year 2013, the Company closed on its acquisitions of a multi-family residential property in Sartell, Minnesota and two parcels of vacant land in Williston, North Dakota and St. Cloud, Minnesota. The Company had no development projects placed in service during the second quarter of fiscal year 2013. During the first quarter of fiscal year 2013, the Company closed on its acquisitions of a multi-family residential property in Topeka, Kansas and two multi-family residential properties in Lincoln, Nebraska. During the first quarter of fiscal year 2013, the Company placed in service its 159-unit multi-family residential development in Rochester, Minnesota and placed in service buildings 3 and 4 of its multi-family residential development in Williston, North Dakota.
The Company expensed approximately $161,000 and $97,000 of transaction costs related to acquisitions in the six months ended October 31, 2013 and 2012, respectively. The Company's acquisitions and development projects placed in service during the six months ended October 31, 2013 and 2012 are detailed below:
Six Months Ended October 31, 2013
Acquisitions
 
(in thousands)
Date Acquired
Land
Building
Intangible
Assets
Acquisition
Cost
 
 
 
 
 
 
 
 
 
 
Multi-Family Residential
 
 
 
 
 
 
 
 
 
71 unit - Alps Park - Rapid City, SD
2013-05-01
$
287
$
5,551
$
362
$
6,200
96 unit - Southpoint - Grand Forks, ND
2013-09-05
 
576
 
9,893
 
131
 
10,600
24 unit - Pinecone Villas - Sartell, MN
2013-10-31
 
629
 
2,139
 
32
 
2,800
 
 
 
1,492
 
17,583
 
525
 
19,600
 
 
 
 
 
 
 
 
 
 
Commercial Healthcare
 
 
 
 
 
 
 
 
 
98,174 sq ft Legends at Heritage Place - Sartell, MN
2013-10-31
 
1,112
 
9,890
 
368
 
11,370
 
 
 
 
 
 
 
 
 
 
Unimproved Land
 
 
 
 
 
 
 
 
 
Chateau II - Minot, ND
2013-05-21
 
179
 
0
 
0
 
179
Jamestown Unimproved - Jamestown, ND
2013-08-09
 
700
 
0
 
0
 
700
RED 20 - Minneapolis, MN(1)
2013-08-20
 
1,900
 
0
 
0
 
1,900
Legends at Heritage Place - Sartell, MN
2013-10-31
 
1,030
 
0
 
0
 
1,030
 
 
 
3,809
 
0
 
0
 
3,809
 
 
 
 
 
 
 
 
 
 
Total Property Acquisitions
 
$
6,413
$
27,473
$
893
$
34,779
(1)
Land is owned by a joint venture in which the Company has an approximately 59% interest. The joint venture is consolidated in IRET's financial statements.


 
 
(in thousands)
Development Projects Placed in Service(1)
Date Placed in
Service
 
Land
 
Building
 
Intangible
Assets
 
Acquisition
Cost
 
 
 
 
 
 
 
 
 
 
Multi-Family Residential
 
 
 
 
 
 
 
 
 
108 unit - Landing at Southgate - Minot, ND(2)
2013-09-04
$
0
$ 
8,822
$ 
0
$ 
8,822
 
 
 
 
 
 
 
 
 
 
Total Development Projects Placed in Service
 
$
0
$ 
8,822
$ 
0
$ 
8,822
(1)Development projects that are placed in service in phases are excluded from this table until the entire project has been placed in service. See Note 6 for additional information on the River Ridge and Cypress Court projects, which were partially placed in service during the three months ended October 31, 2013.
(2)Development property placed in service September 4, 2013. Additional costs paid in fiscal year 2013 totaled $6.3 million, for a total project cost at October 31, 2013 of $15.1 million. The project is owned by a joint venture entity in which the Company has a 51% interest.

Six Months Ended October 31, 2012

Acquisitions
 
(in thousands)
Date Acquired
Land
Building
Intangible
Assets
Acquisition
Cost
 
 
 
 
 
 
 
 
 
 
Multi-Family Residential
 
 
 
 
 
 
 
 
 
308 unit - Villa West - Topeka, KS
2012-05-08
$
1,590
$
15,760
$
300
$
17,650
232 unit - Colony - Lincoln, NE
2012-06-04
 
1,515
 
15,731
 
254
 
17,500
208 unit - Lakeside Village - Lincoln, NE
2012-06-04
 
1,215
 
15,837
 
198
 
17,250
58 unit - Ponds at Heritage Place - Sartell, MN
2012-10-10
 
395
 
4,564
 
61
 
5,020
 
 
 
4,715
 
51,892
 
813
 
57,420
 
 
 
 
 
 
 
 
 
 
Unimproved Land
 
 
 
 
 
 
 
 
 
University Commons - Williston, ND
2012-08-01
 
823
 
0
 
0
 
823
Cypress Court - St. Cloud, MN
2012-08-10
 
447
 
0
 
0
 
447
 
 
 
1,270
 
0
 
0
 
1,270
 
 
 
 
 
 
 
 
 
 
Total Property Acquisitions
 
$
5,985
$
51,892
$
813
$
58,690

 
 
(in thousands)
Development Projects Placed in Service
Date Placed in
Service
Land
Building
Intangible
Assets
Acquisition
Cost
 
 
 
 
 
 
 
 
 
 
Multi-Family Residential
 
 
 
 
 
 
 
 
 
159 unit - Quarry Ridge II - Rochester, MN(1)
2012-06-29
$
0
$ 
4,591
$ 
0
$ 
4,591
73 unit - Williston Garden Buildings 3 and 4 - Williston, ND(2)
2012-07-31
 
0
 
6,886
 
0
 
6,886
 
 
 
 
 
 
 
 
 
 
Total Development Projects Placed in Service
 
$
0
$
11,477
$
0
$
11,477
(1)
Development property placed in service June 29, 2012. Additional costs paid in fiscal years 2012 and 2011, and land acquired in fiscal year 2007, totaled $13.0 million, for a total project cost at October 31, 2012 of $17.6 million.
(2)
Development property placed in service July 31, 2012. Buildings 1 and 2 were placed in service in fiscal year 2012. Additional costs paid in fiscal year 2012 totaled $12.0 million, for a total project cost at October 31, 2012 of $18.9 million. The project is owned by a joint venture entity in which the Company has a 60% interest.

Acquisitions in the six months ended October 31, 2013 and 2012 are immaterial to our real estate portfolio both individually and in the aggregate, and consequently no proforma information is presented. The results of operations from acquired properties are included in the Condensed Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our acquisitions in the six months ended October 31, 2013 and 2012, respectively, (excluding development projects placed in service) are detailed below.
 
(in thousands)
 
Six Months Ended
October 31
 
2013
2012
Total revenue
$
573
$
2,929
Net (loss) income
$
(233)
$
(135)
PROPERTY DISPOSITIONS
During the second quarter of fiscal year 2014, the Company sold three commercial office properties and five commercial industrial properties for a total sales price of $47.4 million. During the first quarter of fiscal year 2014, the Company sold four commercial industrial properties and one commercial retail property for a total sales price of $21.8 million.
During the second quarter of fiscal year 2013, the Company sold two condominium units and two multi-family residential properties for a total sales price of $7.3 million. During the first quarter of fiscal year 2013, IRET sold two condominium units and a commercial retail property. The following table details the Company's dispositions during the six months ended October 31, 2013 and 2012:
Six Months Ended October 31, 2013
 
 
(in thousands)
Dispositions
Date
Disposed
Sales Price
Book Value
and Sales Cost
Gain/(Loss)
 
 
 
 
 
 
 
 
Commercial Office
 
 
 
 
 
 
 
121,669 sq ft Bloomington Business Plaza - Bloomington, MN
2013-09-12
$
4,500
$
7,339
$
(2,839)
118,125 sq ft Nicollet VII - Burnsville, MN
2013-09-12
 
7,290
 
6,001
 
1,289
42,929 sq ft Pillsbury Business Center - Bloomington, MN
2013-09-12
 
1,160
 
1,164
 
(4)
 
 
 
12,950
 
14,504
 
(1,554)
 
 
 
 
 
 
 
 
Commercial Industrial
 
 
 
 
 
 
 
41,880 sq ft Bodycote Industrial Building- Eden Prairie, MN
2013-05-13
$
3,150
$
1,375
$
1,775
42,244 sq ft Fargo 1320 45th Street N - Fargo, ND
2013-05-13
 
4,700
 
4,100
 
600
49,620 sq ft Metal Improvement Company - New Brighton, MN
2013-05-13
 
2,350
 
1,949
 
401
172,057 sq ft Roseville 2929 Long Lake Road - Roseville, MN
2013-05-13
 
9,275
 
9,998
 
(723)
322,751 sq ft Brooklyn Park 7401 Boone Ave - Brooklyn Park, MN
2013-09-12
 
12,800
 
12,181
 
619
50,400 sq ft Cedar Lake Business Center - St. Louis Park, MN
2013-09-12
 
2,550
 
2,607
 
(57)
35,000 sq ft API Building - Duluth, MN
2013-09-24
 
2,553
 
1,488
 
1,065
59,292 sq ft Lighthouse - Duluth, MN
2013-10-08
 
1,825
 
1,547
 
278
606,006 sq ft Dixon Avenue Industrial Park - Des Moines, IA
2013-10-31
 
14,675
 
10,328
 
4,347
 
 
 
53,878
 
45,573
 
8,305
 
 
 
 
 
 
 
 
Commercial Retail
 
 
 
 
 
 
 
23,187 sq ft Eagan Community- Eagan, MN
2013-05-14
 
2,310
 
2,420
 
(110)
 
 
 
 
 
 
 
 
Total Property Dispositions
 
$
69,138
$
62,497
$
6,641


Six Months Ended October 31, 2012
 
 
(in thousands)
Dispositions
Date
Disposed
Sales Price
Book Value
and Sales Cost
Gain/(Loss)
 
 
 
 
 
 
 
 
Multi-Family Residential
 
 
 
 
 
 
 
116 unit - Terrace on the Green - Fargo, ND
2012-09-27
$
3,450
$
1,248
$
2,202
85 unit -  Prairiewood Meadows - Fargo, ND
2012-09-27
 
3,450
 
2,846
 
604
 
 
 
6,900
 
4,094
 
2,806
 
 
 
 
 
 
 
 
Commercial Retail
 
 
 
 
 
 
 
16,080 sq ft Kentwood Thomasville - Kentwood, MI
2012-06-20
 
625
 
692
 
(67)
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
Georgetown Square Condominiums 5 and 6
2012-06-21
 
330
 
336
 
(6)
Georgetown Square Condominiums 3 and 4
2012-08-02
 
368
 
421
 
(53)
 
 
 
698
 
757
 
(59)
 
 
 
 
 
 
 
 
Total Property Dispositions
 
$
8,223
$
5,543
$
2,680