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REAL ESTATE | 12 Months Ended
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Dec. 31, 2017
Real Estate [Abstract] |
REAL ESTATE |
| NOTE 2. | REAL ESTATE
A summary of our real estate owned as of the end of the year is listed below (dollars in thousands):
|  | 2017 |  |  | 2016 |
Apartments |  | $ | 733,620 |  |  | $ | 694,351 |
Apartments under construction |  |  | 105,451 |  |  |  | 25,288 |
Commercial properties |  |  | 200,797 |  |  |  | 218,857 |
Land held for development |  |  | 77,560 |  |  |  | 79,188 |
Real estate held for sale |  |  | — |  |  |  | — |
Real estate subject to sales contract |  |  | 48,234 |  |  |  | 48,919 |
Total real estate, at cost, less impairment |  |  | 1,165,663 |  |  |  | 1,066,603 |
Less accumulated deprecation |  |  | (177,546 | ) |  |  | (165,597 | )
Total real estate, net of depreciation |  | $ | 988,117 |  |  | $ | 901,006 |
Expenditures for repairs and maintenance are charged to operations as incurred. Significant betterments are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Depreciation is computed on a straight line basis over the estimated useful lives of the assets as follows:
Land improvements | 25 to 40 years
Buildings and improvements | 10 to 40 years
Tenant improvements | Shorter of useful life or terms of related lease
Furniture, fixtures and equipment | 3 to 7 years
Fair Value Measurement The Company applies the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures,” to the valuation of real estate assets. The Company is required to assess the fair value of its consolidated real estate assets with indicators of impairment. The value of impaired real estate assets is determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flow of each asset, as well as the income capitalization approach, which considers prevailing market capitalization rates, analyses of recent comparable sales transactions, information from actual sales negotiations and bona fide purchase offers received from third parties. The methods used to measure fair value may produce an amount that may not be indicative of net realizable value or reflective of future values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The fair value measurements used in these evaluations are considered to be Level 2 and 3 valuations within the fair value hierarchy in the accounting rules, as there are significant observable (Level 2) and unobservable inputs (Level 3). Examples of Level 2 inputs the Company utilizes in its fair value calculations are appraisals and bona fide purchase offers from third parties. Examples of Level 3 inputs the Company utilizes in its fair value calculations are discount rates, market capitalization rates, expected lease rental rates, timing of new leases, an estimate of future sales prices and comparable sales prices of similar assets, if available.
|  |  |  | Fair Value Measurements Using (dollars in thousands): |
December 31, 2015 |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
| Commercial |  |  | $ | 3,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,000 |
The highlights of our significant real estate transactions for the year ended December 31, 2017, are discussed below. Purchases During the year ended December 31, 2017, the Company acquired one income-producing apartment properties from a third party in the state of North Carolina increasing the total number of units by 201, for a combined purchase price of $79.7 million. In addition, we acquired one land parcel for future development for a total purchase price of $5.4 million, adding 36.3 acres to the development portfolio. Sales As of December 31, 2017, subsidiaries hold approximately 91 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, we deferred the recording of the sales in accordance with ASC 360-20. We continue to invest in the development of apartment projects. During the year ended December 31, 2017, we have expended $69.8 million related to the construction or predevelopment of various apartment complexes and capitalized $2.4 million of interest costs.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 + Details
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