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REAL ESTATE ACTIVITY
 9 Months Ended
Sep. 30, 2015
Real Estate [Abstract]  
REAL ESTATE ACTIVITY

NOTE 2. REAL ESTATE ACTIVITY

Below is a summary of the real estate owned as of September 30, 2015 (dollars in thousands):

Apartments   $ 578,838  
Apartments under construction     7,503  
Commercial properties     218,447  
Land held for development     156,310  
Real estate subject to sales contract     9,408  
Total real estate   $ 970,506  
Less accumulated depreciation     (145,295 )
Total real estate, net of depreciation   $ 825,211  

The highlights of our significant real estate transactions for the nine months ended September 30, 2015 are listed below:

Purchases

For the nine months ended September 30, 2015, The Company acquired five income-producing apartment complexes from third parties in the states of Texas (2), Tennessee (1) and Florida (2), increasing the total number of units by 761, for a combined purchase price of $67.5 million. In addition, the Company acquired three income-producing apartment complexes from related parties in the states of Texas (2) and Kansas (1), increasing the total number of units by 698, for a combined purchase price of $11.6 million. The Company also purchased a commercial office building in Texas, comprised of 92,723 square feet for $16.8 million.

Sales

For the nine months ended September 30, 2015, The Company sold approximately 198 acres of land located in Texas to independent third parties for a total sales price of $12 million. We recorded a total gain of $5.1 million from the sales.

In addition, one income-producing apartment complex consisting of 200 units located in Ohio was foreclosed upon. The Company recorded a gain of $0.7 million related to the extinguishment of debt.

As of September 30, 2015, The company has 110 acres of land, at various locations, that were sold to related parties in multiple transactions. These transactions are treated as “subject to sales contract” on the Consolidated Balance Sheets. Due to the related party nature of the transactions TCI has deferred the recording of the sales in accordance with ASC 360-20.

We continue to invest in the development of apartment projects. During the nine months ended September 30, 2015, we have expended $5.1 million related to the construction or predevelopment of various apartment complexes and capitalized $0.4 million of interest costs.