Real Estate Held for Sale in Consolidated VIEs

On March 31, 2017, the Company determined that it became the primary beneficiary of Riverchase Landing and The Clusters, two VIEs that each own a multi-family apartment community and in each of which the Company held a preferred equity investment. Accordingly, on this date, the Company consolidated both Riverchase Landing and The Clusters into its consolidated financial statements (see Note 10).

During the second quarter of 2017, Riverchase Landing determined to actively market its multi-family apartment community for sale. Accordingly, the Company classified the real estate assets in Riverchase Landing as held for sale as of December 31, 2017 in the accompanying consolidated balance sheets. The Company also ceased depreciation of the operating real estate assets and amortization of the related lease intangible asset in Riverchase Landing as of June 5, 2017. In March 2018, Riverchase Landing completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment. Riverchase Landing recognized a net gain on sale of approximately $2.3 million which is included in other income and is allocated to net income attributable to non-controlling interest in consolidated variable interest entities on the accompanying consolidated statements of operations. The Company de-consolidated Riverchase Landing as of the date of the sale.

During the third quarter of 2017, The Clusters determined to actively market its multi-family apartment community for sale. Accordingly, the Company classified the real estate assets in The Clusters as held for sale as of December 31, 2018 and December 31, 2017 in the accompanying consolidated balance sheets. The Company also ceased depreciation of the operating real estate assets and amortization of the related lease intangible asset in The Clusters as of September 1, 2017. In February 2019, The Clusters completed the sale of its multi-family apartment community and redeemed the Company's preferred equity investment (see Note 26).

The following is a summary of the real estate held for sale in consolidated VIEs as of December 31, 2018 and December 31, 2017 (dollar amounts in thousands):



	December 31, 2018			December 31, 2017
Land	$	2,650		$	7,000
Building and improvements	26,032			53,468
Furniture, fixtures and equipment	974			2,150
Lease intangible	2,802			5,340
Real estate held for sale before accumulated depreciation and amortization	32,458			67,958
Accumulated depreciation⁽¹⁾	(418		)	(647		)
Accumulated amortization of lease intangible ⁽¹⁾	(2,336		)	(3,109		)
Real estate held for sale in consolidated variable interest entities	$	29,704		$	64,202


⁽¹⁾	There were no depreciation and amortization expenses for the twelve months ended December 31, 2018. Depreciation and amortization expenses for the twelve months ended December 31, 2017 totaled $0.6 million and $3.1 million, respectively.

No gain or loss was recognized by the Company or allocated to non-controlling interests related to the initial classification of the real estate assets as held for sale.