Real Estate Activity

9 Months Ended

Sep. 30, 2012

Real Estate Activity

2. REAL ESTATE ACTIVITY

Acquisitions / Dispositions

In July 2012, the Company acquired a 360-unit apartment community, including approximately 7,612 square feet of retail space, located in Charlotte, North Carolina for a purchase price of approximately $74,000. The purchase price of this community was allocated to land ($7,732), building, improvements and equipment ($65,521), other assets ($296) and identified lease related intangible assets ($451) based on their estimated fair values. The Company did not acquire any apartment communities during the nine months ended September 30, 2011.

Other than the sale of an apartment community held by an unconsolidated entity in the first quarter of 2012 (see note 3), there were no other sales of apartment communities or land parcels during the nine months ended September 30, 2012 and 2011. At September 30, 2012, the Company did not have any apartment communities or land parcels classified as held for sale.

Condominium activities

At September 30, 2012, the Company was selling condominium homes in two wholly owned condominium communities. The Company’s condominium community in Austin, Texas (the “Austin Condominium Project”), originally consisting of 148 condominium units, had an aggregate carrying value of $20,325 at September 30, 2012. The Austin Condominium Project commenced closings of condominium units in the second quarter of 2010. The Company’s condominium community in Atlanta, Georgia (the “Atlanta Condominium Project”), originally consisting of 129 condominium units, had an aggregate carrying value of $11,741 at September 30, 2012. The Atlanta Condominium Project commenced closings of condominium units in the fourth quarter of 2010. These amounts were included in the accompanying balance sheet under the caption, “For-sale condominiums.”

The revenues, costs and expenses associated with consolidated condominium activities for the three and nine months ended September 30, 2012 and 2011 were as follows:

	Three months ended September 30,								Nine months ended September 30,
	2012				2011				2012				2011
Condominium revenues		$	23,517			$	13,678			$	64,043			$	46,443
Condominium costs and expenses			(13,256	)			(11,097	)			(38,960	)			(37,686	)
Gains on sales of condominiums, before income taxes			10,261				2,581				25,083				8,757
Income tax benefit			-				-				612				-
Net gains on sales of condominiums		$	10,261			$	2,581			$	25,695			$	8,757

The Company closed 24 and 14 condominium homes for the three months and 69 and 44 condominium home for the nine months ended September 30, 2012 and 2011, respectively, at these condominium communities. For the nine months ended September 30, 2012, the Company recognized an income tax benefit of $612 related to the recovery of income taxes paid in prior years by the Company’s taxable REIT subsidiaries (see note 12).