We acquired the following property during the 2021 Period (the “2021 acquisition”):

Acquisition Date

Property

Type

# of homes (unaudited)

Average Occupancy
(unaudited)

Contract
Purchase Price
(in thousands)

August 10, 2021

The Oxford

Residential

240

93.5%

48,000

The results of operations from the acquired operating property are included in the consolidated statements of operations as of its acquisition date and are as follows (in thousands):


	Three and Nine Months Ended September 30, 2021
Real estate rental revenue	$	488
Net loss	(349)

We accounted for the 2021 acquisition as an asset acquisition. We measured the value of the acquired physical assets (land and building) and in-place leases (absorption costs) by allocating the total cost of the acquisition on a relative fair value basis.

The total cost of the 2021 acquisition was as follows (in thousands):


Contract purchase price	$	48,000

Capitalized acquisition costs	52
Total	$	48,052

We have recorded the total cost of the 2021 acquisition as follows (in thousands):


Land	$	4,798
Building	42,079
Absorption costs	1,175
Total	$	48,052

We have properties under development/redevelopment and held for current or future development. As of September 30, 2021, we have invested $29.4 million, including the cost of acquired land, in a residential development adjacent to Riverside Apartments. In addition, in our residential segment, we continue to capitalize qualifying costs on several other projects with minor development activity necessary to ready each project for its intended use. We placed the remainder of the Trove development costs into service during the first quarter of 2021.

We intend to hold our properties for investment with a view to long-term appreciation, to engage in the business of acquiring, developing and owning our properties and to make occasional sales of properties that no longer meet our long-term strategy or return objectives and where market conditions for sale are favorable. The proceeds from the sales may be reinvested into other properties, used to fund development operations or to support other corporate needs or distributed to our shareholders. Depreciation on these properties is discontinued at the time they are classified as held for sale, but operating revenues, operating expenses and interest expense continue to be recognized until the date of sale.


Disposition Date	Property Name	Property Type	Rentable Square Feet	Contract Sales Price (in thousands)		(Loss) Gain on Sale (in thousands)
July 26, 2021	Office Portfolio (1)	Office	2,370,000	$	766,000	$	(11,220)
September 22, 2021	Retail Portfolio (2)	Retail	693,000	168,314		57,661
		Total 2021	3,063,000	$	934,314	$	46,441

April 21, 2020	John Marshall II	Office	223,000	$	57,000	$	(6,855)
December 2, 2020	Monument II	Office	207,000	53,000		(8,595)
December 17, 2020	1227 25th Street NW	Office	135,000	53,500		1,125
		Total 2020	565,000	$	163,500	$	(14,325)

(1) Consists of twelve office properties: 1901 Pennsylvania Avenue, 515 King Street, 1220 19th Street, 1600 Wilson Boulevard, Silverline Center, Courthouse Square, 2000 M Street, 1140 Connecticut Avenue, Army Navy Club, 1775 Eye Street, Fairgate at Ballston and Arlington Tower.

(2) Consists of eight retail properties: Takoma Park, Westminster, Concord Centre, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village.

In June 2021, we entered into a purchase and sale agreement with a single buyer to sell the Office Portfolio for a purchase price of $766.0 million. Upon execution of the purchase and sale agreement, the properties in the Office Portfolio met the criteria for classification as held for sale. We closed on the sale of the Office Portfolio on July 26, 2021, recognizing a loss on sale of real estate of $11.2 million.

In June 2021, we executed a letter of intent to sell the Retail Portfolio. During the 2021 Quarter, we executed a purchase and sale agreement for the sale of our remaining eight retail properties for a purchase price of $168.3 million and closed on the sale on September 22, 2021, recognizing a gain on real estate of $57.7 million.

The dispositions of the Office Portfolio and the Retail Portfolio represent a strategic shift that will have a major effect on our financial results and we have accordingly reported the Office Portfolio and Retail Portfolio as discontinued operations.

As of September 30, 2021, we assessed our properties for impairment and did not recognize any impairment charges during the 2021 Quarter. We applied reasonable estimates and judgments in evaluating each of the properties as of September 30, 2021. Should external or internal circumstances change requiring the need to shorten holding periods or adjust future estimated cash flows from our properties, we could be required to record impairment charges in the future.

The results of the Office Portfolio and Retail Portfolio are classified as discontinued operations and are summarized as follows (amounts in thousands, except for share data):


	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Real estate rental revenue	$	10,932	$	29,511	$	70,519	$	89,673
Expenses
Property operating and maintenance	(1,870)		(5,232)		(11,201)		(15,433)
Real estate taxes and insurance	(1,476)		(4,839)		(11,136)		(14,233)
Property management	(378)		(947)		(2,195)		(2,830)
Depreciation and amortization	—		(12,406)		(22,904)		(37,106)


Gain on sale of real estate, net	46,441		—		46,441		—
Income from discontinued operations	$	53,649	$	6,087	$	69,524	$	20,071

Basic net income per share	$	0.63	$	0.07	$	0.82	$	0.24
Diluted net income per share	$	0.63	$	0.07	$	0.82	$	0.24

Capital expenditures	$	833	$	4,239	$	3,316	$	11,825

All assets and liabilities related to the Office Portfolio and Retail Portfolio were sold as of September 30, 2021. As of December 31, 2020, assets and liabilities related to the Office Portfolio and Retail Portfolio were as follows (in thousands):


	December 31, 2020
Land	$	249,869
Income producing property	958,704
	1,208,573
Accumulated depreciation and amortization	(414,008)
Income producing property, net	794,565
Development in progress and land held for development	1,122
Investment in real estate, net	$	795,687
Cash and cash equivalents	3
Restricted cash	10
Rents and other receivables	48,532
Prepaid expenses and other assets	41,452
Total assets	$	885,684
Accounts payable and other liabilities	$	14,706
Advance rents	4,754
Tenant security deposits	5,769
Liabilities related to properties sold or held for sale	$	25,229