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, 2022
The following table presents information regarding our 84 apartment communities held for investment, as of December 31, 2022. 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
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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, 2022
SAME-STORE
71 France - Edina, MN (1)
241 $ 67,264 95.0 %
Alps Park Apartments - Rapid City, SD 71 6,569 98.6 %
Arcata Apartments - Golden Valley, MN
165 33,700 93.3 %
Ashland Apartment Homes - Grand Forks, ND 84 8,712 96.4 %
Avalon Cove Townhomes - Rochester, MN 187 37,570 92.5 %
Boulder Court Apartment Homes - Eagan, MN 115 9,744 94.8 %
Canyon Lake Apartments - Rapid City, SD 109 6,734 94.5 %
Cardinal Point Apartments - Grand Forks, ND 251 35,540 94.4 %
Cascade Shores Townhomes + Flats - Rochester, MN (1)
366 83,283 94.0 %
Castlerock Apartment Homes - Billings, MT 165 8,041 94.6 %
Chateau Apartment Homes - Minot, ND 104 21,615 92.3 %
Cimarron Hills Apartments - Omaha, NE (1)
234 15,550 97.4 %
Commons and Landing at Southgate - Minot, ND 341 56,250 97.7 %
Connelly on Eleven - Burnsville, MN 240 30,928 91.7 %
Cottonwood Apartment Homes - Bismarck, ND 268 24,736 95.9 %
Country Meadows Apartment Homes - Billings, MT 133 10,042 99.3 %
Cypress Court Apartments - St. Cloud, MN (1) (3)
196 21,128 96.4 %
Deer Ridge Apartment Homes - Jamestown, ND 163 25,299 95.7 %
Donovan Apartment Homes - Lincoln, NE (1)
232 24,067 92.2 %
Dylan at RiNo - Denver, CO 274 90,578 96.4 %
Evergreen Apartment Homes - Isanti, MN 72 7,366 94.4 %
FreightYard Townhomes & Flats - Minneapolis, MN 96 26,877 95.8 %
Gardens Apartments - Grand Forks, ND 74 9,380 96.0 %
Grand Gateway Apartment Homes - St. Cloud, MN 116 10,288 99.1 %
Greenfield - Omaha, NE 96 7,941 97.9 %
Homestead Garden Apartments - Rapid City, SD 152 16,341 90.1 %
Ironwood - New Hope, MN 182 39,579 90.7 %
Lakeside Village Apartment Homes - Lincoln, NE 208 22,121 93.8 %
Legacy Apartments - Grand Forks, ND 360 34,125 95.0 %
Legacy Heights Apartment Homes - Bismarck, ND
119 15,348 98.3 %
Lugano at Cherry Creek - Denver, CO 328 99,022 94.8 %
Meadows Apartments - Jamestown, ND 81 7,212 98.8 %
Monticello Crossings - Monticello, MN
202 32,501 97.5 %
Monticello Village - Monticello, MN 60 5,509 95.0 %
Northridge Apartments - Bismarck, ND 68 8,665 95.6 %
Olympic Village Apartments - Billings, MT 274 16,069 95.6 %
Oxbo Urban Rentals - St Paul, MN 191 57,960 91.6 %
Park Meadows Apartment Homes - Waite Park, MN 360 20,391 95.3 %
Park Place Apartments - Plymouth, MN 500 110,422 95.4 %
Parkhouse Apartment Homes - Thornton, CO 465 144,162 95.1 %
Plaza Apartments - Minot, ND 71 16,811 87.3 %
Pointe West Apartments - Rapid City, SD 90 6,077 97.8 %
Ponds at Heritage Place - Sartell, MN 58 5,525 98.3 %
Prosper West - Waite Park, MN (1)(5)
313 28,349 82.4 %
Quarry Ridge Apartments - Rochester, MN (1)(5)
320 41,055 90.0 %
Red 20 Apartments - Minneapolis, MN (1)
130 26,774 93.1 %
Regency Park Estates - St. Cloud, MN (1)(5)
149 18,940 84.6 %
Rimrock West Apartments - Billings, MT 78 5,921 93.6 %
River Ridge Apartment Homes - Bismarck, ND 146 26,460 99.3 %
Rocky Meadows Apartments - Billings, MT 98 8,114 96.9 %
Rum River Apartments - Isanti, MN
72 6,208 95.8 %
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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, 2022
Silver Springs Apartment Homes - Rapid City, SD
52 4,338 88.5 %
South Pointe Apartment Homes - Minot, ND 196 16,472 92.4 %
SouthFork Townhomes + Flats - Lakeville, MN (1)
272 54,801 94.1 %
Southpoint Apartments - Grand Forks, ND 96 10,913 95.8 %
Sunset Trail Apartment Homes - Rochester, MN 146 16,771 97.3 %
Thomasbrook Apartment - Lincoln, NE (1)
264 17,297 90.5 %
Westend - Denver, CO 390 128,975 97.4 %
Whispering Ridge - Omaha, NE (1)
336 33,343 92.0 %
Woodridge on Second - Rochester, MN 110 12,771 95.5 %
TOTAL SAME-STORE 11,330 $ 1,794,544
NON-SAME-STORE
Bayberry Place - Eagan, MN (2)
120 $ 16,721 93.3 %
Burgundy & Hillsboro - New Hope, MN (2)
250 35,799 96.8 %
Civic Lofts - Denver, CO 176 61,520 96.6 %
Elements of Linden Hills - Minneapolis, MN (1)
31 8,972 100.0 %
Gatewood - Waite Park, MN (2)
120 7,993 95.8 %
Grove Ridge - Cottage Grove, MN (2)
84 12,072 98.8 %
Legacy Waite Park - Waite Park, MN (2)
119 10,976 95.8 %
Lyra Apartments - Centennial, CO 215 92,785 94.0 %
Martin Blu - Eden Prairie, MN (1)
191 49,082 96.3 %
New Hope Garden & Village - New Hope, MN (2)
150 15,213 97.3 %
Noko Apartments - Minneapolis, MN 131 44,649 93.9 %
Palisades - Roseville, MN (1)
330 54,506 94.9 %
Plymouth Pointe - Plymouth, MN (2)
96 14,653 96.9 %
Pointe West - St. Cloud, MN (2)
93 7,861 95.7 %
Portage - Minneapolis, MN (2)
62 9,353 95.2 %
River Pointe - Fridley, MN (2)
300 38,608 93.0 %
Southdale Parc - Richfield, MN (2)
69 9,775 92.8 %
Union Pointe - Longmont, CO 256 76,317 91.0 %
Venue on Knox - Minneapolis, MN (2)
97 20,695 92.8 %
Windsor Gates - Brooklyn Park, MN (2)
200 22,933 92.0 %
Wingate - New Hope, MN (2)
136 16,028 97.8 %
Woodhaven - Minneapolis, MN (2)
176 25,243 94.3 %
Woodland Pointe - Woodbury, MN (2)
288 49,721 93.8 %
Zest - Minneapolis, MN (1)
45 11,429 95.6 %
TOTAL NON-SAME-STORE 3,735 $ 712,904
TOTAL MULTIFAMILY 15,065 $ 2,507,448
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(in thousands)
Investment Physical
Net Rentable (initial cost plus Occupancy
Square improvements less as of
Property Name and Location Footage impairment) December 31, 2022
OTHER - MIXED USE COMMERCIAL
71 France - Edina, MN (1)
20,955 $ 6,397 77.5 %
Civic Lofts - Denver, CO 1,600 — 100.0 %
Lugano at Cherry Creek - Denver, CO 13,295 2,338 76.0 %
Noko Apartments - Minneapolis, MN 24,002 118 100.0 %
Oxbo Urban Rentals- St Paul, MN 11,477 3,526 100.0 %
Plaza Apartments - Minot, ND 50,610 9,300 100.0 %
Red 20 Apartments - Minneapolis, MN (1)
9,155 2,959 81.4 %
Zest - Minneapolis, MN (1)
3,200 53 100.0 %
TOTAL OTHER - MIXED USE COMMERCIAL 134,294 $ 24,691
OTHER - COMMERCIAL
3100 10th St SW - Minot, ND (4)
9,690 $ 1,985 N/A
TOTAL OTHER - COMMERCIAL 9,690 $ 1,985
TOTAL SQUARE FOOTAGE - OTHER 143,984
TOTAL GROSS REAL ESTATE INVESTMENTS $ 2,534,124
(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.
(5) Decreased physical occupancy resulting from value add projects.
Properties by State
The following table presents, as of December 31, 2022, the total property owned, net of accumulated depreciation, by state:
(in thousands)
State Total % of Total
Minnesota $ 1,046,037 52.3 %
Colorado 632,310 31.6 %
North Dakota 203,955 10.2 %
Nebraska 73,023 3.7 %
South Dakota 24,179 1.2 %
Montana 19,219 1.0 %
Total $ 1,998,723 100.0 %
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.