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 OP 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.
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Summary of Communities Owned as of December 31, 2020
The following table presents information regarding our 67 apartment communities and two other properties held for investment, as of December 31, 2020. 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, 2020
SAME-STORE
71 France - Edina, MN (1)
241 $ 66,929 93.8 %
Alps Park - Rapid City, SD 71 6,263 100.0 %
Arcata - Golden Valley, MN (2)
165 33,480 95.2 %
Ashland - Grand Forks, ND (1)
84 8,656 92.9 %
Avalon Cove - Rochester, MN 187 36,336 95.7 %
Boulder Court - Eagan, MN (2)
115 9,870 96.5 %
Canyon Lake - Rapid City, SD (1)
109 6,529 99.1 %
Cardinal Point - Grand Forks, ND (2)
251 35,288 96.0 %
Cascade Shores - Rochester, MN (1)
90 18,444 100.0 %
Castlerock - Billings, MT (2)
166 8,138 100.0 %
Chateau - Minot, ND (2)
104 21,453 95.2 %
Cimarron Hills - Omaha, NE (1)
234 15,508 95.7 %
Colonial Villa - Burnsville, MN (2)
239 29,511 93.3 %
Colony - Lincoln, NE (1)
232 20,376 97.8 %
Commons and Landing at Southgate - Minot, ND (2)
341 55,516 93.0 %
Cottonwood - Bismarck, ND (2)
268 24,481 95.5 %
Country Meadows - Billings, MT (2)
133 10,145 94.7 %
Crystal Bay - Rochester, MN 76 12,218 97.4 %
Cypress Court - St. Cloud, MN (1) (3)
196 20,936 95.9 %
Deer Ridge - Jamestown, ND (2)
163 25,162 95.7 %
Dylan - Denver, CO (2) (4) (5)
274 90,400 96.4 %
Evergreen - Isanti, MN (2)
72 7,222 98.6 %
French Creek - Rochester, MN 40 5,192 100.0 %
Gardens - Grand Forks, ND (2)
74 9,352 94.6 %
Grand Gateway - St. Cloud, MN (2)
116 9,964 95.7 %
GrandeVille at Cascade Lake - Rochester, MN (1)
276 57,455 96.0 %
Greenfield - Omaha, NE (2)
96 7,352 86.5 %
Heritage Manor - Rochester, MN 182 11,112 95.1 %
Homestead Garden - Rapid City, SD 152 15,334 98.0 %
Lakeside Village - Lincoln, NE (1)
208 18,902 96.6 %
Legacy - Grand Forks, ND (1)
360 34,133 96.9 %
Legacy Heights - Bismarck, ND (2)
119 15,206 96.6 %
Meadows - Jamestown, ND (2)
81 7,196 98.8 %
Monticello Crossings - Monticello, MN (2)
202 32,246 96.0 %
Monticello Village - Monticello, MN (2)
60 5,480 95.0 %
Northridge - Bismarck, ND (2)
68 8,677 97.1 %
Olympic Village - Billings, MT (2)
274 15,780 97.8 %
Olympik Village - Rochester, MN 140 10,602 85.7 %
Oxbo - St Paul, MN (2) (4) (5)
191 57,609 97.4 %
Park Meadows - Waite Park, MN 360 20,519 92.8 %
Park Place - Plymouth, MN (2) (5)
500 101,823 92.2 %
Plaza - Minot, ND (2)
71 16,779 91.5 %
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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, 2020
Pointe West - Rapid City, SD (2)
90 5,963 98.9 %
Ponds at Heritage Place - Sartell, MN (2)
58 5,469 93.1 %
Quarry Ridge - Rochester, MN (1)
313 34,634 94.9 %
Red 20 - Minneapolis, MN (1)
130 26,413 96.9 %
Regency Park Estates - St. Cloud, MN (1)
147 14,237 94.6 %
Rimrock West - Billings, MT (2)
78 5,976 96.2 %
River Ridge - Bismarck, ND (2)
146 26,338 95.2 %
Rocky Meadows - Billings, MT (2)
98 8,127 99.0 %
Rum River - Isanti, MN (1)
72 6,210 97.2 %
Silver Springs - Rapid City, SD (1)
52 4,112 100.0 %
South Pointe - Minot, ND (2)
196 16,088 93.9 %
Southpoint - Grand Forks, ND (2)
96 10,705 96.9 %
Sunset Trail - Rochester, MN 146 16,710 95.2 %
Thomasbrook - Lincoln, NE (1)
264 16,592 96.2 %
Village Green - Rochester, MN 36 3,613 100.0 %
West Stonehill - Waite Park, MN (1)
313 19,277 96.8 %
Westend - Denver, CO (2) (4) (5)
390 128,310 95.9 %
Whispering Ridge - Omaha, NE (1)
336 30,555 93.2 %
Winchester - Rochester, MN 115 9,410 93.0 %
Woodridge - Rochester, MN (1)
110 11,896 94.5 %
TOTAL SAME-STORE 10,567 $ 1,424,209 95.0 %
NON-SAME-STORE
FreightYard Townhomes & Flats - Minneapolis, MN (4)
96 $ 26,382 86.5 %
Ironwood - Minneapolis, MN 182 39,123 97.3 %
Lugano at Cherry Creek - Denver, CO (4)
328 96,080 95.7 %
Parkhouse - Thornton, CO (2)
465 142,807 93.5 %
SouthFork Townhomes - Lakeville, MN (1) (4)
272 50,777 91.5 %
TOTAL NON-SAME-STORE 1,343 $ 355,169 92.3 %
TOTAL MULTIFAMILY 11,910 $ 1,779,378
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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, 2020
OTHER - MIXED USE COMMERCIAL
71 France - Edina, MN (1)
20,955 $ 6,746 88.1 %
Lugano at Cherry Creek - Denver, CO 13,295 1,806 47.8 %
Oxbo - St Paul, MN (2)
11,477 3,526 100.0 %
Plaza - Minot, ND (2)
50,610 9,678 100.0 %
Red 20 - Minneapolis, MN (1)
10,508 2,944 89.6 %
TOTAL OTHER - MIXED USE COMMERCIAL 106,845 $ 24,700
OTHER - COMMERCIAL
3100 10th St SW - Minot, ND (6)
9,690 $ 2,111 —
Minot IPS - Minot, ND 27,698 6,368 —
TOTAL OTHER - COMMERCIAL 37,388 $ 8,479
TOTAL SQUARE FOOTAGE - OTHER 144,233
TOTAL GROSS REAL ESTATE INVESTMENTS, EXCLUDING MORTGAGE NOTES RECEIVABLE $ 1,812,557
(1) Encumbered by mortgage debt.
(2) Pledged as credit support on unencumbered asset pool for our line of credit.
(3) Owned by a joint venture entity and consolidated in our financial statements. We have an approximately 86.1% ownership in Cypress Court.
(4) Non-same-store for the comparison of the year ended December 31, 2019 to the year ended December 31, 2018.
(5) Non-same-store for the comparison of the eight months ended December 31, 2018 to the eight months ended December 31, 2017.
(6) This is our Minot corporate office building.
Properties by State
The following table presents, as of December 31, 2020, the total amount of property owned, net of accumulated depreciation, by state:
(in thousands)
State Multifamily Other Total % of Total
Minnesota $ 623,324 $ 10,946 $ 634,270 44.9 %
Colorado 433,389 1,733 435,122 30.8 %
North Dakota 216,040 9,240 225,280 15.9 %
Nebraska 71,946 — 71,946 5.1 %
South Dakota 25,155 — 25,155 1.8 %
Montana 21,535 — 21,535 1.5 %
Total $ 1,391,389 $ 21,919 $ 1,413,308 100.0 %
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.