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Real Estate Assets, net (Tables)
12 Months Ended
Dec. 31, 2016
Real Estate Properties [Line Items]  
Schedule of Real Estate Investment Properties

The gross carrying amount and accumulated depreciation of the Company’s real estate assets as of December 31, 2016 and 2015 are as follows (in thousands):

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Land and land improvements

 

$

238,121

 

 

$

227,019

 

Building and building improvements

 

 

2,356,789

 

 

 

2,281,342

 

Furniture, fixtures and equipment

 

 

67,299

 

 

 

58,825

 

Less: accumulated depreciation

 

 

(195,216

)

 

 

(115,648

)

Real estate investment properties, net

 

 

2,466,993

 

 

 

2,451,538

 

Real estate under development, including land

 

 

97,164

 

 

 

62,521

 

Total real estate assets, net

 

$

2,564,157

 

 

$

2,514,059

 

 

Schedule of Real Estate Held for Sale

As of December 31, 2016 and 2015, real estate held for sale consisted of the following (in thousands):

 

 

 

December 31,

 

 

 

2016

 

 

2015

 

Land and land improvements

 

$

 

 

$

2,027

 

Building and building improvements

 

 

 

 

 

15,994

 

Furniture, fixtures and equipment

 

 

 

 

 

1,776

 

Less: accumulated depreciation

 

 

 

 

 

(1,159

)

Real estate held for sale, net

 

$

 

 

$

18,638

 

 

Under Development with Third-Party Developers  
Real Estate Properties [Line Items]  
Schedule of Real Estate Investment Properties

As of December 31, 2016, five of the Company’s seniors housing communities and one post-acute care facility have real estate under development or expansion projects with third-party developers as follows (in thousands):

 

Property Name (and Location)

 

Developer

 

Real Estate Development

Costs

Incurred (1)

 

 

(Unaudited)

Remaining

Development

Budget (2)

 

Development Properties

 

 

 

 

 

 

 

 

 

 

Welbrook Senior Living

Grand Junction

(Grand Junction, CO)

 

Embree Asset Group, Inc.

 

$

12,894

 

 

$

1,888

 

Waterstone on Augusta

(Greenville, SC)

 

T&D Greenville, LLC

 

 

24,155

 

 

 

5,046

 

Wellmore of Lexington

(Lexington, SC)

 

Maxwell Group, Inc.

 

 

38,972

 

 

 

19,984

 

Dogwood Forest of Grayson

(Grayson, GA)

 

Solomon Development Services, LLC

 

 

17,345

 

 

 

12,933

 

Expansion Projects

 

 

 

 

 

 

 

 

 

 

Tranquillity at Fredericktowne

(Frederick, MD)

 

Capital Health Partners

 

 

1,407

 

 

 

4,542

 

Brookridge Heights Assisted Living & Memory Care

(Marquette, MI)

 

Capital Health Partners

 

 

2,391

 

 

 

2,638

 

 

 

 

 

$

97,164

 

 

$

47,031

 

 

FOOTNOTES:

 

(1)

This amount represents land and total capitalized costs for GAAP purposes for the acquisition, development and construction of the seniors housing community or post-acute care facility as of December 31, 2016.  Amounts include investment services fees, asset management fees, interest expense and other costs capitalized during the development period.

 

(2)

This amount includes preleasing and marketing costs which will be expensed as incurred.

The development budgets include the cost of the land, construction costs, development fees, financing costs, start-up costs and initial operating deficits of the respective properties.  Generally, the Company has delegated to an affiliate of the developer of the respective community the management and administration of the development and construction.  In most cases, the developer is generally responsible for cost overruns beyond the approved development budget for the applicable project pursuant to a cost overrun guarantee.  Some of these developments were deemed to be VIEs; refer to Note 7. “Variable Interest Entities” for additional information.