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REAL ESTATE ACTIVITY
 9 Months Ended
Sep. 30, 2019
Real Estate [Abstract]  
REAL ESTATE ACTIVITY

NOTE 3. REAL ESTATE ACTIVITY

 

The following table summarizes ARL’s real estate investments as of September 30, 2019 and December 31, 2018 (dollars in thousands):

 

    September 30, 2019     December 31, 2018  
             
Apartments   $ 135,172     $ 126,274  
Apartments under construction     32,285       21,916  
Commercial properties     228,805       224,162  
Land held for development     68,190       83,641  
Real estate subject to sales contract     1,626       3,149  
Total real estate, at cost, less impairment     466,078       459,142  
Less accumulated deprecation     (86,088 )     (78,099 )
Total real estate, net of depreciation   $ 379,990     $ 381,043  

 

The following is a description of the Company’s significant real estate and financing transactions for the three months ended September 30, 2019:

 

  ● Sold 7.37 acres of land located in Farmers Branch, Texas for an aggregate sales price of $5.4 million and recognized a gain on the sale of approximately $3.9 million.

 

  ● Sold 8.78 acres of land located in Forney, Texas for a total sales price of $1.6 million and recognized a gain on the sale of approximately $1.2 million.

 

  ● Purchased 32.58 acres of land in Athens, Alabama for a total purchase price of $1.8 million, out of which $0.6 million was paid in cash and the remaining balance of $1.2 million was issued as a note payable. The note payable matures in eighteen months and bears an annual interest rate of 5.91%.

 

  ● Sold water district receivables related to infrastructure development work, located in Kaufman County, Texas for $5.0 million. No gain or loss was recognized from the sale of these receivables.

 

  ● Issued Series C bonds on the TASE in the amount of NIS 275 million (or approximately $78.1 million), bearing an annual interest of 4.65%. The interest will be paid on January 31 and July 31 of each of the years 2020 through 2023, with the bond principal payment due in 2023. From the proceeds from the sale of the Series C bonds the Company paid off the mortgage debt of $41.5 million related to one of its commercial buildings used as collateral for this issuance.

  

The Company continues to invest in the development of apartment projects. During the nine months ended September 30, 2019, ARL has invested $26.4 million related to the construction or predevelopment of various apartment complexes and capitalized $0.3 million of interest costs.