XML 42 R17.htm IDEA: XBRL DOCUMENT
v3.7.0.1

ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS | 12 Months Ended
--- | ---
Apr. 30, 2017
ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS [Abstract] |
ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS | NOTE 10 • ACQUISITIONS, DEVELOPMENT PROJECTS PLACED IN SERVICE AND DISPOSITIONS PROPERTY ACQUISITIONS We added no new real estate properties to our portfolio through property acquisitions during the fiscal year ended April 30, 2017, compared to $143.5 million in fiscal year ended April 30, 2016. We expensed approximately $253,000 of transaction costs related to the acquisitions in fiscal year 2016. The fiscal year 2016 acquisitions are detailed below. Fiscal 2016 (May 1, 2015 to April 30, 2016)
|  |  |  | (in thousands) |
|  |  |  | Total |  |  | Form of Consideration |  |  | Investment Allocation |
|  | Date |  | Acquisition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Intangible |
Acquisitions |  | Acquired |  | Cost |  |  | Cash |  | Units(1) |  |  | Land |  | Building |  | 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 |  |  | — |  |  |  | 5,003 |  |  | 50,363 |  |  | 634 |
187 unit - Avalon Cove - Rochester, MN(2) |  | 2016-03-22 |  |  | 36,250 |  |  |  | 15,000 |  |  | 17,826 |  |  |  | 1,616 |  |  | 34,145 |  |  | 489 |
90 unit - Cascade Shores - Rochester, MN |  | 2016-03-22 |  |  | 18,500 |  |  |  | 18,500 |  |  | — |  |  |  | 1,585 |  |  | 16,710 |  |  | 205 |
76 unit - Crystal Bay - Rochester, MN |  | 2016-03-22 |  |  | 12,000 |  |  |  | 12,000 |  |  | — |  |  |  | 433 |  |  | 11,425 |  |  | 142 |
40-unit - French Creek - Rochester, MN |  | 2016-03-22 |  |  | 5,000 |  |  |  | 5,000 |  |  | — |  |  |  | 201 |  |  | 4,735 |  |  | 64 |
|  |  |  |  | 137,000 |  |  |  | 115,350 |  |  | 18,226 |  |  |  | 9,356 |  |  | 126,050 |  |  | 1,594 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
27,819 sq ft Lakeside Medical Plaza - Omaha, NE |  | 2015-08-20 |  |  | 6,500 |  |  |  | 6,500 |  |  | — |  |  |  | 903 |  |  | 5,109 |  |  | 488 |
Total Property Acquisitions |  |  |  | $ | 143,500 |  |  | $ | 121,850 |  | $ | 18,226 |  |  | $ | 10,259 |  | $ | 131,159 |  | $ | 2,082 |
| (1) |  | Value of Units of the Operating Partnership based on the closing market price of our common shares on the acquisition date. The number of Units issued were approximately 44,000 and 2.5 million, respectively, for the Gardens and Avalon Cove acquisitions.
| (2) |  | Acquisition resulted in a gain on bargain purchase of approximately $3.4 million. See Note 2 for additional information.
There were no acquisitions during fiscal year 2017. Acquisitions in fiscal year 2016 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 Consolidated Statements of Operations as of their acquisition date. The revenue and net income of our fiscal year 2017 and 2016 acquisitions are detailed below.
|  | (in thousands) |
Year Ended April 30, |  | 2017 |  | 2016 |
Total revenue |  | $ | — |  | $ | 4,094 |
Net income (loss) |  | $ | — |  | $ | (366) |
DEVELOPMENT PROJECTS PLACED IN SERVICE We placed approximately $102.9 million of development projects in service during fiscal year 2017, compared to $211.8 million in fiscal year 2016. The fiscal year 2017 and 2016 development projects placed in service are detailed below. Fiscal 2017 (May 1, 2016 to April 30, 2017)
|  |  |  | (in thousands) |
|  | Date Placed |  |  |  |  |  |  |  | Development |
Development Projects Placed in Service |  | in Service |  | Land |  | Building |  | Cost |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
241 unit - 71 France - Edina, MN(1) |  | 2016-05-01 |  | $ | 4,721 |  | $ | 67,641 |  | $ | 72,362 |
202 unit - Monticello Crossings - Monticello, MN(2) |  | 2017-03-01 |  |  | 1,734 |  |  | 28,782 |  |  | 30,516 |
Total Development Projects Placed in Service |  |  |  | $ | 6,455 |  | $ | 96,423 |  | $ | 102,878 |
| (1) |  | Costs paid in prior fiscal years totaled $70.9 million. Additional costs incurred in fiscal year 2017 totaled $1.5 million, for a total project cost at April 30, 2017 of $72.4 million. The project is owned by a joint venture entity in which we currently have an approximately 52.6% interest. The joint venture is consolidated in our financial statements.
| (2) |  | Costs paid in prior fiscal years totaled $15.5 million. Additional costs incurred in fiscal year 2017 totaled $15.0 million, for a total project cost at April 30, 2017 of $30.5 million.
Fiscal 2016 (May 1, 2015 to April 30, 2016)
|  |  |  | (in thousands) |
|  | Date Placed |  |  |  |  |  |  |  | Development |
Development Projects Placed in Service (1) |  | in Service |  | Land |  | Building |  | Cost |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
72 unit - Chateau II - Minot, ND (2) |  | 2015-06-01 |  | $ | 240 |  | $ | 14,408 |  | $ | 14,648 |
288 unit - Renaissance Heights - Williston, ND(3) |  | 2015-07-27 |  |  | 3,080 |  |  | 59,434 |  |  | 62,514 |
163 unit - Deer Ridge - Jamestown, ND(4) |  | 2016-02-22 |  |  | 700 |  |  | 24,137 |  |  | 24,837 |
251 unit - Cardinal Point - Grand Forks, ND(5) |  | 2016-03-18 |  |  | 1,600 |  |  | 48,132 |  |  | 49,732 |
|  |  |  |  | 5,620 |  |  | 146,111 |  |  | 151,731 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |
57,624 sq ft Edina 6565 France SMC III - Edina, MN(6) |  | 2015-06-01 |  |  | — |  |  | 33,041 |  |  | 33,041 |
70,756 sq ft PrairieCare Medical - Brooklyn Park, MN(7) |  | 2015-09-08 |  |  | 2,610 |  |  | 21,830 |  |  | 24,440 |
|  |  |  |  | 2,610 |  |  | 54,871 |  |  | 57,481 |
Other |  |  |  |  |  |  |  |  |  |  |  |
7,963 sq ft Minot Southgate Retail - Minot, ND(8) |  | 2015-10-01 |  |  | 889 |  |  | 1,734 |  |  | 2,623 |
Total Development Projects Placed in Service |  |  |  | $ | 9,119 |  | $ | 202,716 |  | $ | 211,835 |
| (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 15 for additional information on the 71 France project, which was partially placed in service during the fiscal year ended April 30, 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 April 30, 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 April 30, 2016 of $62.5 million. The project is owned by a joint venture entity in which we currently have an approximately 86.6% interest. The joint venture is consolidated in our financial statements.
| (4) |  | Costs paid in prior fiscal years totaled $14.3 million. Additional costs incurred in fiscal year 2016 totaled $10.5 million, for a total project cost at April 30, 2016 of $24.8 million.
| (5) |  | Costs paid in prior fiscal years totaled $23.0 million. Additional costs incurred in fiscal year 2016 totaled $26.7 million, for a total project cost at April 30, 2016 of $49.7 million.
| (6) |  | Costs paid in prior fiscal years totaled $20.8 million. Additional costs incurred in fiscal year 2016 totaled $12.2 million, for a total project cost at April 30, 2016 of $33.0 million.
| (7) |  | 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 April 30, 2016 of $24.4 million.
| (8) |  | 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 April 30, 2016 of $2.6 million.
PROPERTY DISPOSITIONS During the fiscal year ended April 30, 2017, we sold 1 multifamily property, 32 senior housing properties, 2 medical office properties, 1 retail property, 1 industrial property and 2 parcels of unimproved land for a total sales price of $286.9 million. Dispositions totaled $536.7 million in fiscal year 2016. The fiscal year 2017 and 2016 dispositions are detailed below. Fiscal 2017 (May 1, 2016 to April 30, 2017)
|  |  |  | (in thousands) |
|  | Date |  |  |  |  | Book Value |  |  |  |
Dispositions |  | Disposed |  | Sales Price |  | and Sales Cost |  | Gain/(Loss) |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
24 unit Pinecone Villas - Sartell, MN |  | 2017-04-20 |  | $ | 3,540 |  | $ | 2,732 |  | $ | 808 |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |
189,244 sq ft 9 Idaho Spring Creek Senior Housing Properties(1) |  | 2016-10-31 |  |  | 43,900 |  |  | 37,397 |  |  | 6,503 |
426,652 sq ft 5 Edgewood Vista Senior Housing Properties(2) |  | 2017-01-18 |  |  | 69,928 |  |  | 50,393 |  |  | 19,535 |
286,854 sq ft 5 Wyoming Senior Housing Properties(3) |  | 2017-02-01 |  |  | 49,600 |  |  | 45,469 |  |  | 4,131 |
169,001 sq ft 9 Edgewood Vista Senior Housing Properties(4) |  | 2017-02-15 |  |  | 30,700 |  |  | 24,081 |  |  | 6,619 |
169,562 sq ft 4 Edgewood Vista Senior Housing Properties(5) |  | 2017-03-01 |  |  | 35,348 |  |  | 14,511 |  |  | 20,837 |
114,316 sq ft Healtheast St. John & Woodwinds - Maplewood & Woodbury MN |  | 2017-03-06 |  |  | 20,700 |  |  | 13,777 |  |  | 6,923 |
59,760 sq ft Sartell 2000 23rd Street South - Sartell, MN |  | 2017-03-31 |  |  | 5,600 |  |  | 5,923 |  |  | (323) |
98,174 sq ft Legends at Heritage Place - Sartell, MN |  | 2017-04-20 |  |  | 9,960 |  |  | 11,439 |  |  | (1,479) |
|  |  |  |  | 265,736 |  |  | 202,990 |  |  | 62,746 |
Other |  |  |  |  |  |  |  |  |  |  |  |
195,075 sq ft Stone Container - Fargo, ND |  | 2016-07-25 |  |  | 13,400 |  |  | 4,418 |  |  | 8,982 |
28,528 sq ft Grand Forks Carmike - Grand Forks, ND |  | 2016-12-29 |  |  | 4,000 |  |  | 1,563 |  |  | 2,437 |
|  |  |  |  | 17,400 |  |  | 5,981 |  |  | 11,419 |
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |
Georgetown Square Unimproved Land - Grand Chute, WI |  | 2016-05-06 |  |  | 250 |  |  | 274 |  |  | (24) |
Total Property Dispositions |  |  |  | $ | 286,926 |  | $ | 211,977 |  | $ | 74,949 |
| (1) |  | The properties included in this portfolio are: Spring Creek American Falls, Spring Creek Boise, Spring Creek Eagle, Spring Creek Fruitland, Spring Creek Fruitland Unimproved, Spring Creek Meridian, Spring Creek Overland, Spring Creek Soda Springs and Spring Creek Ustick.
| (2) |  | The properties included in this portfolio are: Edgewood Vista Bismarck, Edgewood Vista Brainerd, Edgewood Vista East Grand Forks, Edgewood Vista Fargo, and Edgewood Vista Spearfish.
| (3) |  | The properties included in this portfolio are: Casper 1930 E 12th Street (Park Place), Casper 3955 E 12th Street (Meadow Wind), Cheyenne 4010 N College Drive (Aspen Wind), Cheyenne 4606 N College Drive (Sierra Hills) and Laramie 1072 N 22nd Street (Spring Wind).
| (4) |  | The properties included in this portfolio are: Edgewood Vista Belgrade, Edgewood Vista Billings, Edgewood Vista Columbus, Edgewood Vista Fremont, Edgewood Vista Grand Island, Edgewood Vista Minot, Edgewood Vista Missoula, Edgewood Vista Norfolk and Edgewood Vista Sioux Falls.
| (5) |  | The properties included in this portfolio are: Edgewood Vista Hastings, Edgewood Vista Kalispell, Edgewood Vista Omaha and Edgewood Vista Virginia.
Fiscal 2016 (May 1, 2015 to April 30, 2016)
|  |  |  |  | (in thousands) |
|  | Date |  |  |  | Book Value |  |  |  |
Dispositions |  | Disposed |  | Sales Price |  | and Sales Cost |  | Gain/(Loss) |
Multifamily |  |  |  |  |  |  |  |  |  |  |  |
391 unit - St. Cloud Student Housing Portfolio - St. Cloud, MN |  | 2016-03-24 |  | $ | 5,615 |  | $ | 5,647 |  | $ | (32) |
Healthcare |  |  |  |  |  |  |  |  |  |  |  |
61,758 sq ft Nebraska Orthopaedic Hospital - Omaha, NE |  | 2016-04-01 |  |  | 24,494 |  |  | 16,512 |  |  | 7,982 |
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 |  |  | 231,908 |  |  | 18,092 |
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 |  |  | 72,000 |  |  | 6,960 |
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 |  |  | 122,610 | (5) |  | 86,154 | (5) |  | 36,456 | (5)
3,702 sq ft Arrowhead First International Bank - Minot, ND |  | 2016-04-06 |  |  | 1,675 |  |  | 1,255 |  |  | 420 |
|  |  |  |  | 506,599 |  |  | 444,655 |  |  | 61,944 |
Unimproved Land |  |  |  |  |  |  |  |  |  |  |  |
River Falls Unimproved Land - River Falls, WI |  | 2016-04-06 |  |  | 20 |  |  | 21 |  |  | (1) |
Total Property Dispositions |  |  |  | $ | 536,728 |  | $ | 466,835 |  | $ | 69,893 |
| (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 & vacant land, 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.

X
- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration