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, 2023
The following table presents information regarding our 72 apartment communities held for investment, as of December 31, 2023. 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, 2023
SAME-STORE
71 France - Edina, MN (1)
241 $ 68,136 93.0 %
Alps Park Apartments - Rapid City, SD 71 6,509 93.0 %
Arcata Apartments - Golden Valley, MN
165 33,905 93.3 %
Ashland Apartment Homes - Grand Forks, ND 84 8,595 96.4 %
Avalon Cove Townhomes - Rochester, MN 187 40,674 92.5 %
Bayberry Place - Eagan, MN (2)
120 17,557 95.0 %
Burgundy & Hillsboro - New Hope, MN (2)
250 36,115 95.6 %
Canyon Lake Apartments - Rapid City, SD 109 6,598 92.7 %
Cardinal Point Apartments - Grand Forks, ND 251 34,889 93.6 %
Cascade Shores Townhomes + Flats - Rochester, MN (1)
366 84,365 94.5 %
Castlerock Apartment Homes - Billings, MT 165 7,675 92.7 %
Civic Lofts - Denver, CO 176 61,945 97.7 %
Connelly on Eleven - Burnsville, MN 240 30,760 95.4 %
Cottonwood Apartment Homes - Bismarck, ND 268 25,251 95.2 %
Country Meadows Apartment Homes - Billings, MT 133 9,737 92.5 %
Cypress Court Apartments - St. Cloud, MN (1) (3)
196 21,536 96.4 %
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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, 2023
Deer Ridge Apartment Homes - Jamestown, ND 163 25,654 93.3 %
Donovan Apartment Homes - Lincoln, NE 232 25,508 93.5 %
Dylan at RiNo - Denver, CO 274 90,746 96.0 %
Evergreen Apartment Homes - Isanti, MN 72 7,406 100.0 %
FreightYard Townhomes & Flats - Minneapolis, MN 96 26,952 93.8 %
Gardens Apartments - Grand Forks, ND 74 9,372 94.6 %
Grand Gateway Apartment Homes - St. Cloud, MN 116 11,236 91.4 %
Greenfield - Omaha, NE 96 7,847 95.8 %
Grove Ridge - Cottage Grove, MN (2)
84 12,311 97.6 %
Homestead Garden Apartments - Rapid City, SD 152 16,577 95.4 %
Ironwood - New Hope, MN 182 39,803 91.8 %
Lakeside Village Apartment Homes - Lincoln, NE 208 22,997 93.8 %
Legacy Apartments - Grand Forks, ND 360 34,164 94.7 %
Legacy Heights Apartment Homes - Bismarck, ND
119 15,249 96.6 %
Lugano at Cherry Creek - Denver, CO 328 103,855 94.5 %
Meadows Apartments - Jamestown, ND 81 7,101 98.8 %
Monticello Crossings - Monticello, MN
202 32,426 92.1 %
Monticello Village - Monticello, MN 60 5,452 91.7 %
New Hope Garden & Village - New Hope, MN (2)
150 15,574 94.7 %
Northridge Apartments - Bismarck, ND 68 8,679 94.1 %
Olympic Village Apartments - Billings, MT 274 15,779 94.5 %
Oxbo Urban Rentals - St Paul, MN 191 58,106 95.3 %
Palisades - Roseville, MN (1)
330 58,302 97.3 %
Park Place Apartments - Plymouth, MN 500 111,488 95.8 %
Parkhouse Apartment Homes - Thornton, CO (1)
465 145,653 94.8 %
Plymouth Pointe - Plymouth, MN (2)
96 14,192 97.9 %
Pointe West Apartments - Rapid City, SD 90 5,853 91.1 %
Ponds at Heritage Place - Sartell, MN 58 5,469 91.4 %
Prosper West - Waite Park, MN (1)
313 29,035 93.3 %
Quarry Ridge Apartments - Rochester, MN
320 41,771 95.6 %
Red 20 Apartments - Minneapolis, MN (1)
130 26,825 96.2 %
Regency Park Estates - St. Cloud, MN (1)
149 19,583 92.0 %
Rimrock West Apartments - Billings, MT 78 5,702 96.2 %
River Pointe - Fridley, MN (2)
300 41,979 95.0 %
River Ridge Apartment Homes - Bismarck, ND 146 26,678 95.9 %
Rocky Meadows Apartments - Billings, MT 98 7,893 92.9 %
Rum River Apartments - Isanti, MN
72 6,199 94.4 %
Silver Springs Apartment Homes - Rapid City, SD
52 4,268 96.2 %
Southdale Parc - Richfield, MN (2)
69 7,104 88.4 %
SouthFork Townhomes + Flats - Lakeville, MN (1)
272 54,943 91.5 %
Southpoint Apartments - Grand Forks, ND 96 10,878 96.9 %
Sunset Trail Apartment Homes - Rochester, MN 146 19,111 92.5 %
Union Pointe - Longmont, CO 256 76,371 96.9 %
Venue on Knox - Minneapolis, MN (2)
97 24,178 89.7 %
Westend - Denver, CO 390 129,283 96.2 %
Whispering Ridge - Omaha, NE (1)
336 33,158 91.4 %
Wingate - New Hope, MN (2)
136 13,978 99.3 %
Woodhaven - Minneapolis, MN (2)
176 25,911 92.6 %
Woodland Pointe - Woodbury, MN (2)
288 61,211 91.7 %
Woodridge on Second - Rochester, MN 110 12,460 93.6 %
TOTAL SAME-STORE 12,173 $ 2,106,517
NON-SAME-STORE
Elements of Linden Hills - Minneapolis, MN (1)
31 9,084 96.8 %
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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, 2023
Lake Vista Apartment Homes - Loveland, CO (1)
303 87,789 94.4 %
Lyra Apartments - Centennial, CO (2)
215 93,045 93.5 %
Martin Blu - Eden Prairie, MN (1)
191 49,625 93.7 %
Noko Apartments - Minneapolis, MN 130 44,846 95.4 %
Zest - Minneapolis, MN (1)
45 11,638 97.8 %
TOTAL NON-SAME-STORE 915 $ 296,027
TOTAL MULTIFAMILY 13,088 $ 2,402,544
(in thousands)
Investment Physical
Net Rentable (initial cost plus Occupancy
Square improvements less as of
Property Name and Location Footage impairment) December 31, 2023
OTHER - MIXED USE COMMERCIAL
71 France - Edina, MN (1)
20,922 $ 6,495 86.1 %
Civic Lofts - Denver, CO 1,600 — 100.0 %
Lugano at Cherry Creek - Denver, CO 11,998 2,461 92.2 %
Noko Apartments - Minneapolis, MN 23,988 118 100.0 %
Oxbo Urban Rentals- St Paul, MN 11,477 3,526 100.0 %
Red 20 Apartments - Minneapolis, MN (1)
10,508 2,959 70.9 %
Zest - Minneapolis, MN (1)
3,200 53 100.0 %
TOTAL OTHER - MIXED USE COMMERCIAL 83,693 $ 15,612
OTHER - COMMERCIAL
3100 10th St SW - Minot, ND (4)
9,690 $ 1,990 N/A
TOTAL OTHER - COMMERCIAL 9,690 $ 1,990
TOTAL SQUARE FOOTAGE - OTHER 93,383
TOTAL GROSS REAL ESTATE INVESTMENTS $ 2,420,146
(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.
Properties by State
The following table presents, as of December 31, 2023, the total property owned by state:
(in thousands)
State Total % of Total
Minnesota $ 1,244,397 51.5 %
Colorado 791,148 32.7 %
North Dakota 208,500 8.6 %
Nebraska 89,510 3.7 %
South Dakota 39,805 1.6 %
Montana 46,786 1.9 %
Total $ 2,420,146 100.0 %
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 to which we are a party or of which any of our properties are the subject.
Item 4. Mine Safety Disclosures
Not Applicable.
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PART II