ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS (Tables)

9 Months Ended

Jan. 31, 2016

ACQUISITIONS, DEVELOPMENTS PLACED IN SERVICE AND DISPOSITIONS [Abstract]

Our acquisitions during the nine months ended January 31, 2016 and 2015 are detailed below.

Nine Months Ended January 31, 2016

			(in thousands)
			Total Acquisition Cost		Form of Consideration				Investment Allocation
Acquisitions	Date Acquired		Total Acquisition Cost		Cash		Units⁽¹⁾		Land		Building		Intangible Assets

Multifamily
74 unit - Gardens - Grand Forks, ND		2015-09-10	$	9,250	$	8,850	$	400	$	518	$	8,672	$	60
276 unit - GrandeVille at Cascade Lake - Rochester, MN		2015-10-29		56,000		56,000		0		5,003		50,363		634
				65,250		64,850		400		5,521		59,035		694

Healthcare
27,819 sq ft Lakeside Medical Plaza - Omaha, NE		2015-08-20		6,500		6,500		0		903		5,109		488

Total Property Acquisitions			$	71,750	$	71,350	$	400	$	6,424	$	64,144	$	1,182

(1)	Value of Units of the Operating Partnership at the acquisition date.

Nine Months Ended January 31, 2015

			(in thousands)
			Total Acquisition Cost		Form of Consideration						Investment Allocation
Acquisitions	Date Acquired		Total Acquisition Cost		Cash		Units⁽¹⁾		Other⁽²⁾		Land		Building		Intangible Assets

Multi-Family
152 unit - Homestead Garden - Rapid City, SD⁽³⁾		2014-06-02	$	15,000	$	5,092	$	0	$	9,908	$	655	$	14,139	$	206
52 unit - Silver Springs - Rapid City, SD		2014-06-02		3,280		1,019		0		2,261		215		3,006		59
68 unit - Northridge - Bismarck, ND		2014-09-12		8,500		8,400		100		0		884		7,516		100
				26,780		14,511		100		12,169		1,754		24,661		365

Unimproved Land
Creekside Crossing - Bismarck, ND		2014-05-22		4,269		4,269		0		0		4,269		0		0
PrairieCare Medical - Brooklyn Park, MN		2014-06-05		2,616		2,616		0		0		2,616		0		0
71 France Phase I - Edina, MN⁽⁴⁾		2014-06-12		1,413		0		0		1,413		1,413		0		0
Monticello 7^th Addition - Monticello, MN		2014-10-09		1,660		1,660		0		0		1,660		0		0
71 France Phase II & III - Edina, MN⁽⁴⁾		2014-11-04		3,309		0		0		3,309		3,309		0		0
Minot 1525 24^th Ave SW - Minot, ND		2014-12-23		1,250		1,250		0		0		1,250		0		0
				14,517		9,795		0		4,722		14,517		0		0

Total Property Acquisitions			$	41,297	$	24,306	$	100	$	16,891	$	16,271	$	24,661	$	365

(1)	Value of Units of the Operating Partnership at the acquisition date.

(2)	Consists of assumed debt (Homestead Garden I: $9.9 million, Silver Springs: $2.3 million) and value of land contributed by the joint venture partner (71 France: $4.7 million).

(3)	At acquisition, we adjusted the assumed debt to fair value and recognized approximately $852,000 of goodwill.

(4)	Land was contributed to a joint venture in which we currently have an approximately 52.6% interest. The joint venture is consolidated in our financial statements.

Results of Operations from Acquired Properties

The revenue and net income of our acquisitions in the nine months ended January 31, 2016 and 2015, respectively, are detailed below.

	(in thousands)
Nine Months Ended January 31,	2016			2015
Total revenue	$	1,969		$	1,756
Net income (loss)	$	(62	)	$	(27	)

Development Projects Placed in Service

The Operating Partnership placed $136.8 million and $113.6 million of development projects in service during the nine months ended January 31, 2016 and 2015, respectively, as detailed below.

Nine Months Ended January 31, 2016

			(in thousands)
Development Projects Placed in Service⁽¹⁾	Date Placed in Service		Land		Building		Development Cost

Multifamily
72 unit – Chateau II - Minot, ND⁽²⁾		2015-06-01	$	240	$	14,401	$	14,641
288 unit – Renaissance Heights - Williston, ND⁽³⁾		2015-07-27		3,080		59,371		62,451
				3,320		73,772		77,092

Healthcare
57,624 sq ft Edina 6565 France SMC III - Edina, MN⁽⁴⁾		2015-06-01		0		32,725		32,725
70,756 sq ft PrairieCare Medical – Brooklyn Park, MN⁽⁵⁾		2015-09-08		2,610		21,748		24,358
				2,610		54,473		57,083

Other
7,963 sq ft Minot Southgate Retail - Minot, ND⁽⁶⁾		2015-10-01		889		1,734		2,623

Total Development Projects Placed in Service			$	6,819	$	129,979	$	136,798

(1)

Development projects that are placed in service in phases are excluded from this table until the entire project has been placed in service. See Note 6 for additional information on the Deer Ridge, 71 France, and Cardinal Point projects, which were partially placed in service during the nine months ended January 31, 2016.

(2)	Costs paid in prior fiscal years totaled $12.3 million. Additional costs incurred in fiscal year 2016 totaled $2.3 million, for a total project cost at January 31, 2016 of $14.6 million.

(3)

Costs paid in prior fiscal years totaled $57.7 million. Additional costs incurred in fiscal year 2016 totaled $4.8 million, for a total project cost at January 31, 2016 of $62.5 million. The project is owned by a joint venture entity in which we currently have an approximately 70.0% interest. The joint venture is consolidated in our financial statements.

(4)	Costs paid in prior fiscal years totaled $20.8 million. Additional costs incurred in fiscal year 2016 totaled $11.9 million, for a total project cost at January 31, 2016 of $32.7 million.

(5)	Costs paid in prior fiscal years totaled $17.3 million. Additional costs incurred in fiscal year 2016 totaled $7.1 million, for a total project cost at January 31, 2016 of $24.4 million.

(6)	Costs paid in prior fiscal years totaled $2.1 million. Additional costs incurred in fiscal year 2016 totaled approximately $500,000, for a total project cost at January 31, 2016 of $2.6 million.

Nine Months Ended January 31, 2015

			(in thousands)
Development Projects Placed in Service	Date Placed in Service		Land		Building		Development Cost

Multifamily
44 unit - Dakota Commons - Williston, ND⁽¹⁾		2014-07-15	$	823	$	9,596	$	10,419
130 unit - Red 20 - Minneapolis, MN⁽²⁾		2014-11-21		1,900		26,430		28,330
233 unit - Commons at Southgate - Minot, ND⁽³⁾		2014-12-09		3,691		30,921		34,612
64 unit - Cypress Court II - St. Cloud, MN⁽⁴⁾		2015-01-01		447		6,191		6,638
165 unit - Arcata - Golden Valley, MN⁽⁵⁾		2015-01-01		2,088		28,296		30,384
				8,949		101,434		110,383

Other
4,998 sq ft Minot Wells Fargo Bank - Minot, ND⁽⁶⁾		2014-11-10		992		2,193		3,185

Total Development Projects Placed in Service			$	9,941	$	103,627	$	113,568

(1)	Costs paid in prior fiscal years totaled $8.1 million. Additional costs paid in fiscal year 2015 totaled $2.3 million, for a total project cost at January 31, 2015 of $10.4 million.

(2)

Costs paid in prior fiscal years totaled $12.2 million. Additional costs paid in fiscal year 2015 totaled $16.1 million, for a total project cost at January 31, 2015 of $28.3 million. The project is owned by a joint venture entity in which we currently have an approximately 58.6% interest. The joint venture is consolidated in our financial statements.

(3)

Costs paid in prior fiscal years totaled $26.5 million. Additional costs paid in fiscal year 2015 totaled $8.1 million, for a total project cost at January 31, 2015 of $34.6 million. The project is owned by a joint venture entity in which we have an approximately 52.9% interest. The joint venture is consolidated in our financial statements.

(4)

Costs paid in prior fiscal years totaled $1.2 million. Additional costs paid in fiscal year 2015 totaled $5.5 million, for a total project cost at January 31, 2015 of $6.6 million. The project is owned by a joint venture entity in which we currently have an approximately 86.1% interest. The joint venture is consolidated in our financial statements.

(5)	Costs paid in prior fiscal years totaled $11.3 million. Additional costs paid in fiscal year 2015 totaled $19.1 million, for a total project cost at January 31, 2015 of $30.4 million.

(6)	Costs paid in prior fiscal years totaled $1.0 million. Additional costs paid in fiscal year 2015 totaled $2.2 million, for a total project cost at January 31, 2015 of $3.2 million.

Schedule of Dispositions

During the third quarter of fiscal year 2016, we sold 3 retail properties for a total sales price of $3.5 million and transferred ownership of nine office properties pursuant to a deed in lieu transaction. During the third quarter of fiscal year 2015, we sold one office property and one retail property for a total sales price of $10.0 million. The following table details our dispositions during the nine months ended January 31, 2016 and 2015:

Nine Months Ended January 31, 2016

			(in thousands)
Dispositions	Date Disposed		Sales Price			Book Value and Sales Cost			Gain/(Loss)

Other
117,144 sq ft Thresher Square – Minneapolis, MN		2015-05-18	$	7,000		$	7,175		$	(175	)
2,549,222 sq ft Office Sale Portfolio⁽¹⁾		2015-08-03		250,000			231,537			18,463
420,216 sq ft Mendota Office Center Portfolio – Mendota Heights, MN⁽²⁾		2015-08-12		40,000			41,574			(1,574	)
1,027,208 sq ft Retail Sale Portfolio⁽³⁾		2015-09-30		78,960			71,913			7,047
48,700 sq ft Eden Prairie 6101 Blue Circle Drive – Eden Prairie, MN		2015-10-19		2,900			2,928			(28	)
8,526 sq ft Burnsville I Strip Center – Burnsville, MN		2015-12-23		1,300			913			387
4,800 sq ft Pine City C-Store – Pine City, MN		2016-01-08		300			355			(55	)
11,003 sq ft Minot Plaza – Minot, ND		2016-01-19		1,854			393			1,461
937,518 sq ft 9-Building Office Portfolio⁽⁴⁾⁽⁵⁾		2016-01-29		122,600	⁽⁵⁾		86,144	⁽⁵⁾		36,456	⁽⁵⁾

Total Property Dispositions			$	504,914		$	442,932		$	61,982

(1)

The properties included in this portfolio disposition are: 610 Business Center, 7800 West Brown Deer Road, Ameritrade, Barry Pointe Office Park, Benton Business Park, Brenwood, Brook Valley I, Crosstown Centre, Golden Hills Office Center, Granite Corporate Center, Great Plains, Highlands Ranch I, Highlands Ranch II, Interlachen Corporate Center, Intertech Building, Minnesota National Bank, Northpark Corporate Center, Omaha 10802 Farnam Dr, Plaza VII, Plymouth 5095 Nathan Lane, Prairie Oak Business Center, Rapid City 900 Concourse Drive, Spring Valley IV, Spring Valley V, Spring Valley X, Spring Valley XI, Superior Office Building, TCA Building, Three Paramount Plaza, UHC Office, US Bank Financial Center, Wells Fargo Center, West River Business Park and Westgate.

(2)

The properties included in this portfolio disposition are: Mendota Office Center I, Mendota Office Center II, Mendota Office Center III, Mendota Office Center IV and American Corporate Center.

(3)

The properties included in this portfolio disposition are: Champlin South Pond, Chan West Village, Duluth 4615 Grand, Duluth Denfeld Retail, Forest Lake Auto, Forest Lake Westlake Center, Grand Forks Medpark Mall, Jamestown Buffalo Mall, Jamestown Business Center, Lakeville Strip Center, Monticello C Store & vacant land, Omaha Barnes & Noble, Pine City Evergreen Square, Rochester Maplewood Square and St. Cloud Westgate.

(4)

The properties included in this portfolio disposition are: Corporate Center West, Farnam Executive Center, Flagship Corporate Center, Gateway Corporate Center, Miracle Hills One, Pacific Hills, Riverport, Timberlands, and Woodlands Plaza IV.

(5)

On January 29, 2016, we transferred ownership of nine properties to the mortgage lender on a $122.6 million non-recourse loan and removed the debt obligation and accrued interest from our balance sheet. The properties had an estimated fair value of $89.3 million on the transfer date. Upon completion of this transfer, we recognized a gain on extinguishment of debt of $36.5 million, representing the difference between the loan and accrued interest payable extinguished over the carrying value of the properties, cash, accounts payable and accounts receivable transferred as of the transfer date and related closing costs.

Nine Months Ended January 31, 2015

			(in thousands)
Dispositions	Date Disposed		Sales Price			Book Value and Sales Cost		Gain/(Loss)

Multi-Family
83 unit - Lancaster - St. Cloud, MN		2014-09-22	$	4,451		$	3,033	$	1,418

Industrial
198,600 sq ft Eagan 2785 & 2795 - Eagan, MN		2014-07-15		3,600			5,393		(1,793	)

Other
73,338 sq ft Dewey Hill - Edina, MN		2014-05-19		3,100			3,124		(24	)
25,644 sq ft Weston Retail - Weston, WI		2014-07-28		n/	a		1,176		(1,176	)
74,568 sq ft Wirth Corporate Center - Golden Valley, MN		2014-08-29		4,525			4,695		(170	)
52,000 sq ft Kalispell Retail - Kalispell, MT		2014-10-15		1,230			1,229		1
34,226 sq ft Fargo Express Center & SC Pad - Fargo, ND		2014-11-18		2,843			2,211		632
79,297 sq ft Northgate I – Maple Grove, MN		2014-12-01		7,200			6,881		319
				18,898			19,316		(418	)

Unimproved Land
Kalispell Unimproved - Kalispell, MT		2014-10-15		670			670		0

Total Property Dispositions			$	27,619		$	28,412	$	(793	)