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ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS (Tables) | 9 Months Ended
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Jan. 31, 2016
ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS [Abstract] |
Acquisitions | Our acquisitions during the nine months ended January 31, 2016 and 2015 are detailed below. Nine Months Ended January 31, 2016
|  |  |  |  | (in thousands) |
|  |  |  |  | Total Acquisition Cost |  |  | Form of Consideration |  |  | Investment Allocation |
Acquisitions |  | Date Acquired |  |  | Cash |  |  | Units(1) |  |  | Land |  |  | Building |  |  | Intangible Assets |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
74 unit - Gardens - Grand Forks, ND |  |  | 2015-09-10 |  |  | $ | 9,250 |  |  | $ | 8,850 |  |  | $ | 400 |  |  | $ | 518 |  |  | $ | 8,672 |  |  | $ | 60 |
276 unit - GrandeVille at Cascade Lake - Rochester, MN |  |  | 2015-10-29 |  |  |  | 56,000 |  |  |  | 56,000 |  |  |  | 0 |  |  |  | 5,003 |  |  |  | 50,363 |  |  |  | 634 |
|  |  |  |  |  |  | 65,250 |  |  |  | 64,850 |  |  |  | 400 |  |  |  | 5,521 |  |  |  | 59,035 |  |  |  | 694 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27,819 sq ft Lakeside Medical Plaza - Omaha, NE |  |  | 2015-08-20 |  |  |  | 6,500 |  |  |  | 6,500 |  |  |  | 0 |  |  |  | 903 |  |  |  | 5,109 |  |  |  | 488 |
Total Property Acquisitions |  |  |  |  |  | $ | 71,750 |  |  | $ | 71,350 |  |  | $ | 400 |  |  | $ | 6,424 |  |  | $ | 64,144 |  |  | $ | 1,182 |
(1) | Value of Units of the Operating Partnership at the acquisition date.
Nine Months Ended January 31, 2015
|  |  |  |  | (in thousands) |
|  |  |  |  | Total Acquisition Cost |  |  | Form of Consideration |  |  | Investment Allocation |
Acquisitions |  | Date Acquired |  |  | Cash |  |  | Units(1) |  |  | Other(2) |  |  | Land |  |  | Building |  |  | Intangible Assets |
Multi-Family |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
152 unit - Homestead Garden - Rapid City, SD(3) |  |  | 2014-06-02 |  |  | $ | 15,000 |  |  | $ | 5,092 |  |  | $ | 0 |  |  | $ | 9,908 |  |  | $ | 655 |  |  | $ | 14,139 |  |  | $ | 206 |
52 unit - Silver Springs - Rapid City, SD |  |  | 2014-06-02 |  |  |  | 3,280 |  |  |  | 1,019 |  |  |  | 0 |  |  |  | 2,261 |  |  |  | 215 |  |  |  | 3,006 |  |  |  | 59 |
68 unit - Northridge - Bismarck, ND |  |  | 2014-09-12 |  |  |  | 8,500 |  |  |  | 8,400 |  |  |  | 100 |  |  |  | 0 |  |  |  | 884 |  |  |  | 7,516 |  |  |  | 100 |
|  |  |  |  |  |  | 26,780 |  |  |  | 14,511 |  |  |  | 100 |  |  |  | 12,169 |  |  |  | 1,754 |  |  |  | 24,661 |  |  |  | 365 |
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Creekside Crossing - Bismarck, ND |  |  | 2014-05-22 |  |  |  | 4,269 |  |  |  | 4,269 |  |  |  | 0 |  |  |  | 0 |  |  |  | 4,269 |  |  |  | 0 |  |  |  | 0 |
PrairieCare Medical - Brooklyn Park, MN |  |  | 2014-06-05 |  |  |  | 2,616 |  |  |  | 2,616 |  |  |  | 0 |  |  |  | 0 |  |  |  | 2,616 |  |  |  | 0 |  |  |  | 0 |
71 France Phase I - Edina, MN(4) |  |  | 2014-06-12 |  |  |  | 1,413 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,413 |  |  |  | 1,413 |  |  |  | 0 |  |  |  | 0 |
Monticello 7th Addition - Monticello, MN |  |  | 2014-10-09 |  |  |  | 1,660 |  |  |  | 1,660 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,660 |  |  |  | 0 |  |  |  | 0 |
71 France Phase II & III - Edina, MN(4) |  |  | 2014-11-04 |  |  |  | 3,309 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,309 |  |  |  | 3,309 |  |  |  | 0 |  |  |  | 0 |
Minot 1525 24th Ave SW - Minot, ND |  |  | 2014-12-23 |  |  |  | 1,250 |  |  |  | 1,250 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,250 |  |  |  | 0 |  |  |  | 0 |
|  |  |  |  |  |  | 14,517 |  |  |  | 9,795 |  |  |  | 0 |  |  |  | 4,722 |  |  |  | 14,517 |  |  |  | 0 |  |  |  | 0 |
Total Property Acquisitions |  |  |  |  |  | $ | 41,297 |  |  | $ | 24,306 |  |  | $ | 100 |  |  | $ | 16,891 |  |  | $ | 16,271 |  |  | $ | 24,661 |  |  | $ | 365 |
(1) | Value of Units of the Operating Partnership at the acquisition date.
(2) | Consists of assumed debt (Homestead Garden I: $9.9 million, Silver Springs: $2.3 million) and value of land contributed by the joint venture partner (71 France: $4.7 million).
(3) | At acquisition, we adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.
(4) | Land was contributed to a joint venture in which we currently have an approximately 52.6% interest. The joint venture is consolidated in our financial statements.
Results of Operations from Acquired Properties | The revenue and net income of our acquisitions in the nine months ended January 31, 2016 and 2015, respectively, are detailed below.
|  | (in thousands) |
Nine Months Ended January 31, |  | 2016 |  |  | 2015 |
Total revenue |  | $ | 1,969 |  |  | $ | 1,756 |
Net income (loss) |  | $ | (62 | ) |  | $ | (27 | )
Development Projects Placed in Service | The Operating Partnership placed $136.8 million and $113.6 million of development projects in service during the nine months ended January 31, 2016 and 2015, respectively, as detailed below. Nine Months Ended January 31, 2016
|  |  |  |  | (in thousands) |
Development Projects Placed in Service (1) |  | Date Placed in Service |  |  | Land |  |  | Building |  |  | Development Cost |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
72 unit – Chateau II - Minot, ND(2) |  |  | 2015-06-01 |  |  | $ | 240 |  |  | $ | 14,401 |  |  | $ | 14,641 |
288 unit – Renaissance Heights - Williston, ND(3) |  |  | 2015-07-27 |  |  |  | 3,080 |  |  |  | 59,371 |  |  |  | 62,451 |
|  |  |  |  |  |  | 3,320 |  |  |  | 73,772 |  |  |  | 77,092 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
57,624 sq ft Edina 6565 France SMC III - Edina, MN(4) |  |  | 2015-06-01 |  |  |  | 0 |  |  |  | 32,725 |  |  |  | 32,725 |
70,756 sq ft PrairieCare Medical – Brooklyn Park, MN(5) |  |  | 2015-09-08 |  |  |  | 2,610 |  |  |  | 21,748 |  |  |  | 24,358 |
|  |  |  |  |  |  | 2,610 |  |  |  | 54,473 |  |  |  | 57,083 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
7,963 sq ft Minot Southgate Retail - Minot, ND(6) |  |  | 2015-10-01 |  |  |  | 889 |  |  |  | 1,734 |  |  |  | 2,623 |
Total Development Projects Placed in Service |  |  |  |  |  | $ | 6,819 |  |  | $ | 129,979 |  |  | $ | 136,798 |
(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 Deer Ridge, 71 France, and Cardinal Point projects, which were partially placed in service during the nine months ended January 31, 2016.
(2) | Costs paid in prior fiscal years totaled $12.3 million. Additional costs incurred in fiscal year 2016 totaled $2.3 million, for a total project cost at January 31, 2016 of $14.6 million.
(3) | Costs paid in prior fiscal years totaled $57.7 million. Additional costs incurred in fiscal year 2016 totaled $4.8 million, for a total project cost at January 31, 2016 of $62.5 million. The project is owned by a joint venture entity in which we currently have an approximately 70.0% interest. The joint venture is consolidated in our financial statements.
(4) | Costs paid in prior fiscal years totaled $20.8 million. Additional costs incurred in fiscal year 2016 totaled $11.9 million, for a total project cost at January 31, 2016 of $32.7 million.
(5) | Costs paid in prior fiscal years totaled $17.3 million. Additional costs incurred in fiscal year 2016 totaled $7.1 million, for a total project cost at January 31, 2016 of $24.4 million.
(6) | Costs paid in prior fiscal years totaled $2.1 million. Additional costs incurred in fiscal year 2016 totaled approximately $500,000, for a total project cost at January 31, 2016 of $2.6 million.
Nine Months Ended January 31, 2015
|  |  |  |  | (in thousands) |
Development Projects Placed in Service |  | Date Placed in Service |  |  | Land |  |  | Building |  |  | Development Cost |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
44 unit - Dakota Commons - Williston, ND(1) |  |  | 2014-07-15 |  |  | $ | 823 |  |  | $ | 9,596 |  |  | $ | 10,419 |
130 unit - Red 20 - Minneapolis, MN(2) |  |  | 2014-11-21 |  |  |  | 1,900 |  |  |  | 26,430 |  |  |  | 28,330 |
233 unit - Commons at Southgate - Minot, ND(3) |  |  | 2014-12-09 |  |  |  | 3,691 |  |  |  | 30,921 |  |  |  | 34,612 |
64 unit - Cypress Court II - St. Cloud, MN(4) |  |  | 2015-01-01 |  |  |  | 447 |  |  |  | 6,191 |  |  |  | 6,638 |
165 unit - Arcata - Golden Valley, MN(5) |  |  | 2015-01-01 |  |  |  | 2,088 |  |  |  | 28,296 |  |  |  | 30,384 |
|  |  |  |  |  |  | 8,949 |  |  |  | 101,434 |  |  |  | 110,383 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
4,998 sq ft Minot Wells Fargo Bank - Minot, ND(6) |  |  | 2014-11-10 |  |  |  | 992 |  |  |  | 2,193 |  |  |  | 3,185 |
Total Development Projects Placed in Service |  |  |  |  |  | $ | 9,941 |  |  | $ | 103,627 |  |  | $ | 113,568 |
(1) | Costs paid in prior fiscal years totaled $8.1 million. Additional costs paid in fiscal year 2015 totaled $2.3 million, for a total project cost at January 31, 2015 of $10.4 million.
(2) | Costs paid in prior fiscal years totaled $12.2 million. Additional costs paid in fiscal year 2015 totaled $16.1 million, for a total project cost at January 31, 2015 of $28.3 million. The project is owned by a joint venture entity in which we currently have an approximately 58.6% interest. The joint venture is consolidated in our financial statements.
(3) | Costs paid in prior fiscal years totaled $26.5 million. Additional costs paid in fiscal year 2015 totaled $8.1 million, for a total project cost at January 31, 2015 of $34.6 million. The project is owned by a joint venture entity in which we have an approximately 52.9% interest. The joint venture is consolidated in our financial statements.
(4) | Costs paid in prior fiscal years totaled $1.2 million. Additional costs paid in fiscal year 2015 totaled $5.5 million, for a total project cost at January 31, 2015 of $6.6 million. The project is owned by a joint venture entity in which we currently have an approximately 86.1% interest. The joint venture is consolidated in our financial statements.
(5) | Costs paid in prior fiscal years totaled $11.3 million. Additional costs paid in fiscal year 2015 totaled $19.1 million, for a total project cost at January 31, 2015 of $30.4 million.
(6) | Costs paid in prior fiscal years totaled $1.0 million. Additional costs paid in fiscal year 2015 totaled $2.2 million, for a total project cost at January 31, 2015 of $3.2 million.
Schedule of Dispositions | During the third quarter of fiscal year 2016, we sold 3 retail properties for a total sales price of $3.5 million and transferred ownership of nine office properties pursuant to a deed in lieu transaction. During the third quarter of fiscal year 2015, we sold one office property and one retail property for a total sales price of $10.0 million. The following table details our dispositions during the nine months ended January 31, 2016 and 2015: Nine Months Ended January 31, 2016
|  |  |  |  | (in thousands) |
Dispositions |  | Date Disposed |  |  | Sales Price |  |  | Book Value and Sales Cost |  |  | Gain/(Loss) |
Other |  |  |  |  |  |  |  |  |  |  |  |
117,144 sq ft Thresher Square – Minneapolis, MN |  |  | 2015-05-18 |  |  | $ | 7,000 |  |  | $ | 7,175 |  |  | $ | (175 | )
2,549,222 sq ft Office Sale Portfolio(1) |  |  | 2015-08-03 |  |  |  | 250,000 |  |  |  | 231,537 |  |  |  | 18,463 |
420,216 sq ft Mendota Office Center Portfolio – Mendota Heights, MN(2) |  |  | 2015-08-12 |  |  |  | 40,000 |  |  |  | 41,574 |  |  |  | (1,574 | )
1,027,208 sq ft Retail Sale Portfolio(3) |  |  | 2015-09-30 |  |  |  | 78,960 |  |  |  | 71,913 |  |  |  | 7,047 |
48,700 sq ft Eden Prairie 6101 Blue Circle Drive – Eden Prairie, MN |  |  | 2015-10-19 |  |  |  | 2,900 |  |  |  | 2,928 |  |  |  | (28 | )
8,526 sq ft Burnsville I Strip Center – Burnsville, MN |  |  | 2015-12-23 |  |  |  | 1,300 |  |  |  | 913 |  |  |  | 387 |
4,800 sq ft Pine City C-Store – Pine City, MN |  |  | 2016-01-08 |  |  |  | 300 |  |  |  | 355 |  |  |  | (55 | )
11,003 sq ft Minot Plaza – Minot, ND |  |  | 2016-01-19 |  |  |  | 1,854 |  |  |  | 393 |  |  |  | 1,461 |
937,518 sq ft 9-Building Office Portfolio(4)(5) |  |  | 2016-01-29 |  |  |  | 122,600 | (5) |  |  | 86,144 | (5) |  |  | 36,456 | (5)
Total Property Dispositions |  |  |  |  |  | $ | 504,914 |  |  | $ | 442,932 |  |  | $ | 61,982 |
| (1) | The properties included in this portfolio disposition are: 610 Business Center, 7800 West Brown Deer Road, Ameritrade, Barry Pointe Office Park, Benton Business Park, Brenwood, Brook Valley I, Crosstown Centre, Golden Hills Office Center, Granite Corporate Center, Great Plains, Highlands Ranch I, Highlands Ranch II, Interlachen Corporate Center, Intertech Building, Minnesota National Bank, Northpark Corporate Center, Omaha 10802 Farnam Dr, Plaza VII, Plymouth 5095 Nathan Lane, Prairie Oak Business Center, Rapid City 900 Concourse Drive, Spring Valley IV, Spring Valley V, Spring Valley X, Spring Valley XI, Superior Office Building, TCA Building, Three Paramount Plaza, UHC Office, US Bank Financial Center, Wells Fargo Center, West River Business Park and Westgate.
| (2) | The properties included in this portfolio disposition are: Mendota Office Center I, Mendota Office Center II, Mendota Office Center III, Mendota Office Center IV and American Corporate Center.
| (3) | The properties included in this portfolio disposition are: Champlin South Pond, Chan West Village, Duluth 4615 Grand, Duluth Denfeld Retail, Forest Lake Auto, Forest Lake Westlake Center, Grand Forks Medpark Mall, Jamestown Buffalo Mall, Jamestown Business Center, Lakeville Strip Center, Monticello C Store & vacant land, Omaha Barnes & Noble, Pine City Evergreen Square, Rochester Maplewood Square and St. Cloud Westgate.
| (4) | The properties included in this portfolio disposition are: Corporate Center West, Farnam Executive Center, Flagship Corporate Center, Gateway Corporate Center, Miracle Hills One, Pacific Hills, Riverport, Timberlands, and Woodlands Plaza IV.
| (5) | On January 29, 2016, we transferred ownership of nine properties to the mortgage lender on a $122.6 million non-recourse loan and removed the debt obligation and accrued interest from our balance sheet. The properties had an estimated fair value of $89.3 million on the transfer date. Upon completion of this transfer, we recognized a gain on extinguishment of debt of $36.5 million, representing the difference between the loan and accrued interest payable extinguished over the carrying value of the properties, cash, accounts payable and accounts receivable transferred as of the transfer date and related closing costs.
Nine Months Ended January 31, 2015
|  |  |  |  | (in thousands) |
Dispositions |  | Date Disposed |  |  | Sales Price |  |  | Book Value and Sales Cost |  |  | Gain/(Loss) |
Multi-Family |  |  |  |  |  |  |  |  |  |  |  |
83 unit - Lancaster - St. Cloud, MN |  |  | 2014-09-22 |  |  | $ | 4,451 |  |  | $ | 3,033 |  |  | $ | 1,418 |
Industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
198,600 sq ft Eagan 2785 & 2795 - Eagan, MN |  |  | 2014-07-15 |  |  |  | 3,600 |  |  |  | 5,393 |  |  |  | (1,793 | )
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
73,338 sq ft Dewey Hill - Edina, MN |  |  | 2014-05-19 |  |  |  | 3,100 |  |  |  | 3,124 |  |  |  | (24 | )
25,644 sq ft Weston Retail - Weston, WI |  |  | 2014-07-28 |  |  |  | n/ | a |  |  | 1,176 |  |  |  | (1,176 | )
74,568 sq ft Wirth Corporate Center - Golden Valley, MN |  |  | 2014-08-29 |  |  |  | 4,525 |  |  |  | 4,695 |  |  |  | (170 | )
52,000 sq ft Kalispell Retail - Kalispell, MT |  |  | 2014-10-15 |  |  |  | 1,230 |  |  |  | 1,229 |  |  |  | 1 |
34,226 sq ft Fargo Express Center & SC Pad - Fargo, ND |  |  | 2014-11-18 |  |  |  | 2,843 |  |  |  | 2,211 |  |  |  | 632 |
79,297 sq ft Northgate I – Maple Grove, MN |  |  | 2014-12-01 |  |  |  | 7,200 |  |  |  | 6,881 |  |  |  | 319 |
|  |  |  |  |  |  | 18,898 |  |  |  | 19,316 |  |  |  | (418 | )
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Kalispell Unimproved - Kalispell, MT |  |  | 2014-10-15 |  |  |  | 670 |  |  |  | 670 |  |  |  | 0 |
Total Property Dispositions |  |  |  |  |  | $ | 27,619 |  |  | $ | 28,412 |  |  | $ | (793 | )

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