Significant Transactions

12 Months Ended

Dec. 31, 2023

Apartment Community Acquisitions

During the year ended December 31, 2023, we acquired one apartment community located in Raleigh, North Carolina, one apartment community located in Durham, North Carolina, and one apartment community located in Miami Beach, Florida. Summarized information regarding these acquisitions is set forth in the table below (dollars in thousands) as of December 31, 2023:


Number of apartment communities	3
Number of apartment homes	1,115

Purchase price	$	452,500
Capitalized transaction costs	6,739
Total consideration (1)	$	459,239

Land	$	118,564
Building and improvements	318,364
Intangible assets (2)	17,845
Mark-to-market on debt assumed	7,370
Below-market lease liabilities (2)	(2,904)
Total consideration (1)	$	459,239

(1)Total consideration for the apartment community acquisition in South Florida includes $101.2 million of debt assumed and the issuance of $22.4 million in common OP Units, which represent non-cash financing.

(2)Intangible assets and below-market lease liabilities for the South Florida apartment community acquisition have a weighted-average term of 1.4 years and 0.5 years, respectively. Intangible assets and below-market lease liabilities for the North Carolina apartment community acquisitions have a weighted-average term of 0.5 years.

Subsequent to the year ended December 31, 2023, we acquired one apartment community located in Raleigh, North Carolina with 384 apartment homes for $86.5 million.

Apartment Community Dispositions

Sold apartment communities during the years ended December 31, 2023, 2022, and 2021, are summarized below (dollars in thousands):


	2023		2022		2021
Number of apartment communities sold	3		18		16
Number of apartment homes sold	257		3,364		1,395
Gain on apartment community sales (1)	$	—	$	939,806	$	243,369

(1) The apartment communities sold during the year ended December 31, 2023 generated net proceeds of $52.1 million, which approximated their carrying value.

The apartment communities sold were predominantly located outside of primary markets or in lower-rated locations within primary markets and had average revenues per apartment home significantly below those of our retained portfolio.

At the end of each reporting period we evaluate whether any communities meet the criteria to be classified as held for sale. As of December 31, 2023, no communities were classified as held for sale.

Lease Cancellation

During 2021, we leased certain properties for the purpose of their development, which were accounted for as sales-type leases. During the years ended December 31, 2022 and 2021, we recognized income of $17.3 million and $26.0 million, respectively, related to these sales-type leases, which is reflected in interest income in our consolidated statements of operations. During the year ended December 31, 2023, we did not recognize any income as the sales-type leases were cancelled on September 1, 2022.

Impairment

Real estate and other long-lived assets to be held and used are individually evaluated for impairment when conditions exist that may indicate the carrying amount of a long-lived asset may not be recoverable. Impairment indicators include significant fluctuations in rental and other property revenues less property operating expenses, occupancy changes, significant near-term lease expirations, current and historical cash flow losses, rental rates, and if applicable, a comparison of an asset’s carrying value to its estimated fair value. Upon determination that an impairment has occurred, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the community.

As part of our exit from the New York market, during the year ended December 31, 2023, we evaluated the expected hold period of three apartment communities in our Other Real Estate reporting segment. Given management's assessment of the likelihood of the sale of these assets, which occurred during the year ended December 31, 2023, we reduced the carrying value of the three properties to their estimated fair value and recognized a non-cash impairment loss on real estate of $23.6 million. As of December 31, 2023, the three impaired properties have been sold.

During the years ended December 31, 2022 and 2021, we did not recognize any impairment losses.

Note Receivable from Aimco

In 2020, we acquired a $534 million note receivable (the “Note”) pledged by a subsidiary of Aimco and was secured by a pool of properties owned by Aimco. The Note had an original maturity date of January 31, 2024, and bore interest at a rate of 5.2% per annum. The Note was reported at the outstanding principal balance, and interest receivable related to the unpaid principal was recorded separately in other assets, net in our consolidated balance sheets. The note was prepaid in 2022 and we recognized interest income of $13.8 million, and $27.8 million, during the years ended December 31, 2022, and 2021, respectively.