Item 2. Properties
Item 2. Properties
Communities
We are organized as a REIT under Sections 856-858 of the Code and are structured as an UPREIT, which allows us to accept the contribution of real estate to our Operating Partnership in exchange for Units. Our business is focused on the ownership, management, acquisition, redevelopment, and development of apartment communities, which we own and operate through our Operating Partnership. We are a fully integrated owner-operator of apartment communities.
Certain Lending Requirements
In certain instances, in connection with the financing of investment properties, the lender may require, as a condition of the loan, that the properties be owned by a “single asset entity.” Accordingly, we have organized a number of wholly owned subsidiary entities for the purpose of holding title in an entity that complies with such lending conditions. All financial statements of these subsidiaries are consolidated into our financial statements.
Management and Leasing of Our Real Estate Assets
We conduct our corporate operations from offices in Minot, North Dakota and Minneapolis, Minnesota. The day-to-day management of our properties is generally carried out by our own employees. When properties acquired have effective pre-existing property management in place or when particular properties are, in our judgment, not attractive candidates for self-management, we may utilize third-party professional management companies for day-to-day management. However, all decisions relating to purchase, sale, insurance coverage, major capital improvements, annual operating budgets, and major renovations are made exclusively by our employees and implemented by the third-party management companies. Generally, our third-party management contracts are for terms of one year or less and provide for compensation ranging from 2.5% to 5.0% of gross rent collections and, typically, we may terminate these contracts upon 60 days or less notice for cause or upon the property manager’s failure to meet certain specified financial performance goals.
Summary of Communities Owned as of December 31, 2021
The following table presents information regarding our 79 apartment communities held for investment, as of December 31, 2021. We provide certain information on a same-store and non-same-store basis. Same-store communities are owned or in service for substantially all of the periods being compared, and, in the case of development properties, have achieved a target level of physical occupancy of 90%. On the first day of each calendar year, we determine the composition of our same-store pool for that year as well as adjust the previous year, which allows us to evaluate the performance of existing apartment communities. “Other” includes non-multifamily properties and non-multifamily components of mixed use properties. We own the following interests in real estate either through our wholly-owned subsidiaries or by ownership of a controlling interest in an entity owning the real estate. We account for these interests on a consolidated basis. Additional information is included in Schedule III to our financial statements included in this Report.
(in thousands)
Investment Physical
Number of (initial cost plus Occupancy
Apartment improvements less as of
Community Name and Location Homes impairment) December 31, 2021
SAME-STORE
71 France - Edina, MN (1)
241 $ 67,108 92.1 %
Alps Park - Rapid City, SD 71 6,529 100.0 %
Arcata - Golden Valley, MN
165 33,537 95.2 %
Ashland - Grand Forks, ND 83 8,674 92.8 %
Avalon Cove - Rochester, MN 187 36,515 96.8 %
Boulder Court - Eagan, MN 115 9,689 92.2 %
Canyon Lake - Rapid City, SD 109 6,548 96.3 %
Cardinal Point - Grand Forks, ND 251 35,400 95.6 %
Castlerock - Billings, MT 165 7,857 90.3 %
Chateau - Minot, ND 104 21,544 91.3 %
Cimarron Hills - Omaha, NE (1)
234 14,978 93.2 %
Commons and Landing at Southgate - Minot, ND 341 55,905 94.4 %
Connelly on Eleven - Burnsville, MN 240 29,926 93.3 %
Cottonwood - Bismarck, ND 268 24,227 94.4 %
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(in thousands)
Investment Physical
Number of (initial cost plus Occupancy
Apartment improvements less as of
Community Name and Location Homes impairment) December 31, 2021
Country Meadows - Billings, MT 133 9,923 97.0 %
Cypress Court - St. Cloud, MN (1) (3)
196 21,007 96.4 %
Deer Ridge - Jamestown, ND 163 25,188 92.6 %
Donovan - Lincoln, NE (1)
232 22,197 96.6 %
Dylan - Denver, CO 274 90,508 96.0 %
Evergreen - Isanti, MN 72 7,281 93.1 %
FreightYard Townhomes & Flats - Minneapolis, MN 96 26,801 90.6 %
Gardens - Grand Forks, ND 74 9,361 91.9 %
Grand Gateway - St. Cloud, MN 116 10,052 92.2 %
GrandeVille Shores - Rochester, MN (1)
365 79,401 93.4 %
Greenfield - Omaha, NE 96 7,707 96.9 %
Homestead Garden - Rapid City, SD 152 16,013 94.7 %
Lakeside Village - Lincoln, NE (1)
208 20,421 96.6 %
Legacy - Grand Forks, ND 360 34,047 95.3 %
Legacy Heights - Bismarck, ND
119 15,239 98.3 %
Lugano at Cherry Creek - Denver, CO 328 96,762 95.4 %
Meadows - Jamestown, ND 81 7,184 87.7 %
Monticello Crossings - Monticello, MN
202 32,519 96.5 %
Monticello Village - Monticello, MN 60 5,457 98.3 %
Northridge - Bismarck, ND 68 8,695 97.1 %
Olympic Village - Billings, MT 274 15,652 90.9 %
Oxbo - St Paul, MN 191 57,658 92.7 %
Park Meadows - Waite Park, MN 360 20,218 96.1 %
Park Place - Plymouth, MN 499 104,977 92.6 %
Plaza - Minot, ND 71 16,769 94.4 %
Pointe West - Rapid City, SD 90 5,987 95.6 %
Ponds at Heritage Place - Sartell, MN 58 5,499 100.0 %
Quarry Ridge - Rochester, MN (1)
313 37,501 92.3 %
Red 20 - Minneapolis, MN (1)
130 26,537 94.6 %
Regency Park Estates - St. Cloud, MN (1)
149 17,055 87.9 %
Rimrock West - Billings, MT 78 5,863 92.3 %
River Ridge - Bismarck, ND 146 26,400 97.3 %
Rocky Meadows - Billings, MT 97 8,014 97.9 %
Rum River - Isanti, MN
72 6,181 93.1 %
Silver Springs - Rapid City, SD
52 4,299 98.1 %
South Pointe - Minot, ND 196 15,912 90.8 %
SouthFork Townhomes - Lakeville, MN (1)
272 52,281 90.4 %
Southpoint - Grand Forks, ND 96 10,753 89.6 %
Sunset Trail - Rochester, MN 146 16,579 96.6 %
Thomasbrook - Lincoln, NE (1)
264 16,380 95.8 %
West Stonehill - Waite Park, MN (1)
313 22,039 92.3 %
Westend - Denver, CO 390 128,640 93.6 %
Whispering Ridge - Omaha, NE (1)
336 31,278 94.0 %
Woodridge - Rochester, MN 110 11,778 90.9 %
TOTAL SAME-STORE 10,672 $ 1,568,450 94.0 %
NON-SAME-STORE
Bayberry Place - Minneapolis, MN (2)
120 $ 16,458 93.3 %
Burgandy & Hillsboro Court - Minneapolis, MN (2)
250 35,160 96.8 %
Civic Lofts - Denver, CO 176 61,399 93.2 %
Gatewood - St. Cloud, MN (2)
120 7,533 93.3 %
Grove Ridge - Minneapolis, MN (2)
84 11,926 95.2 %
Ironwood - Minneapolis, MN 182 39,277 94.5 %
New Hope Garden & Village - Minneapolis, MN (2)
150 14,661 99.3 %
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(in thousands)
Investment Physical
Number of (initial cost plus Occupancy
Apartment improvements less as of
Community Name and Location Homes impairment) December 31, 2021
Palisades - Minneapolis, MN (1)
330 53,882 93.0 %
Parkhouse - Thornton, CO 465 143,566 94.1 %
Plymouth Pointe - Minneapolis, MN (2)
96 14,378 96.9 %
Pointe West - St. Cloud, MN (2)
93 7,533 98.9 %
Portage - Minneapolis, MN (2)
62 9,233 93.5 %
River Pointe - Minneapolis, MN (2)
300 37,415 96.3 %
Southdale Parc - Minneapolis, MN (2)
69 9,611 97.1 %
The Legacy - St. Cloud, MN (2)
119 10,396 97.5 %
Union Pointe - Longmont, CO 256 76,029 92.6 %
Venue on Knox - Minneapolis, MN (2)
97 18,729 91.8 %
Windsor Gates - Minneapolis, MN (2)
200 21,821 94.5 %
Wingate - Minneapolis, MN (2)
136 15,513 94.9 %
Woodhaven - Minneapolis, MN (2)
176 24,647 93.2 %
Woodland Pointe - Minneapolis, MN (2)
288 46,632 90.3 %
TOTAL NON-SAME-STORE 3,769 $ 675,799 95.1 %
TOTAL MULTIFAMILY 14,441 $ 2,244,249
(in thousands)
Investment Physical
Net Rentable (initial cost plus Occupancy
Square improvements less as of
Property Name and Location Footage impairment) December 31, 2021
OTHER - MIXED USE COMMERCIAL
71 France - Edina, MN (1)
20,955 $ 6,746 82.0 %
Civic Lofts - Denver, CO 1,600 — 100.0 %
Lugano at Cherry Creek - Denver, CO 13,295 2,257 47.8 %
Oxbo - St Paul, MN 11,477 3,526 100.0 %
Plaza - Minot, ND 50,610 9,280 100.0 %
Red 20 - Minneapolis, MN (1)
9,155 3,000 81.4 %
TOTAL OTHER - MIXED USE COMMERCIAL 107,092 $ 24,809
OTHER - COMMERCIAL
3100 10th St SW - Minot, ND (4)
9,690 $ 2,112 —
TOTAL OTHER - COMMERCIAL 9,690 $ 2,112
TOTAL SQUARE FOOTAGE - OTHER 116,782
TOTAL GROSS REAL ESTATE INVESTMENTS, EXCLUDING MORTGAGE NOTES RECEIVABLE $ 2,271,170
(1) Encumbered by mortgage debt.
(2) Encumbered by mortgage in our Fannie Mae Credit Facility.
(3) Owned by a joint venture entity and consolidated in our financial statements. We have an approximately 86.1% ownership in Cypress Court.
(4) This is our Minot corporate office building.
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Properties by State
The following table presents, as of December 31, 2021, the total amount of property owned, net of accumulated depreciation, by state:
(in thousands)
State Total % of Total
Minnesota $ 941,366 51.5 %
Colorado 557,133 30.5 %
North Dakota 212,518 11.6 %
Nebraska 71,323 3.9 %
South Dakota 25,142 1.4 %
Montana 20,096 1.1 %
Total $ 1,827,578 100.0 %
Item 3. Legal Proceedings
In the ordinary course of our operations, we become involved in litigation. At this time, we know of no material pending or threatened legal proceedings, or other proceedings contemplated by governmental authorities, that would have a material impact upon us.
Item 4. Mine Safety Disclosures
Not Applicable.
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PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.