Quarterly report pursuant to Section 13 or 15(d)

Investments in Real Estate

v3.22.2.2
Investments in Real Estate
 9 Months Ended
Sep. 30, 2022
Real Estate [Abstract]  
Investments in Real Estate Investments in Real Estate
The following comprise the Company’s real estate investments:
Successor
Predecessor
September 30, 2022 December 31, 2021
Buildings and improvements $ 3,589,032  $ 2,266,793 
Land 1,921,093  763,961 
Development in progress 165,652  — 
Land held for development —  78,991 
Investments in real estate 5,675,777  3,109,745 
Accumulated depreciation (61,830) (1,173,407)
Investments in real estate, net $ 5,613,947  $ 1,936,338 
Depreciation expense of investments in real estate was $61,830, $4,626 and $23,857 for the period from July 20, 2022 through September 30, 2022, the period from July 1, 2022 through July 19, 2022, and the three months ended September 30, 2021, respectively. Depreciation expense of investments in real estate was $61,830, $50,557 and $69,356 for the period from July 20, 2022 through September 30, 2022, the period from January 1, 2022 through July 19, 2022, and the nine months ended September 30, 2021, respectively.
We have a 95.0% interest in a joint venture that owns Highgate at The Mile, a 395-unit multifamily apartment complex located in Tysons, Virginia (“The Mile”). The remaining 5.0% interest in the joint venture is held by the JV Partner. We consolidate the joint venture that owns The Mile and as such, the consolidated real estate assets and activities related to this joint venture are included in the table above.
Acquisitions
The following table summarizes the Company’s acquisition activity:
Successor Predecessor
Period from July 20, 2022 through September 30, 2022 Period from July 1, 2022 through July 19, 2022 Three Months Ended September 30, 2021 Period from January 1, 2022 through July 19, 2022 Nine Months Ended September 30, 2021
Operating properties acquired —  —  7  —  7 
Square feet —  —  718,000  —  718,000 
Total purchase price $ —  $ —  $ 123,268  $ —  $ 123,268 
The purchase price of the above acquisition, including the associated transaction costs, was allocated to the assets acquired and liabilities assumed based on their relative fair values as of the acquisition date, and are summarized below:
Successor
Predecessor
2022 Acquisitions 2022 Acquisitions 2021 Acquisitions
Building $ —  $ —  $ 90,897 
Site improvements —  —  6,998 
Land —  —  20,308 
Tenant improvements —  —  2,998 
In-place lease intangibles —  —  3,223 
Below market lease liabilities —  —  (1,156)
Other —  —  (1,097)
Allocated purchase price $ —  $ —  $ 122,171 
Transaction costs of $—, $— and $271 were capitalized and included within the allocated purchase price for the period from July 20, 2022 through September 30, 2022, the period from July 1, 2022 through July 19, 2022, and the three months ended September 30, 2021, respectively. Transaction costs of $—, $— and $271 were capitalized and included within the allocated purchase price for the period from July 20, 2022 through September 30, 2022, the period from January 1, 2022 through July 19, 2022, and the nine months ended September 30, 2021, respectively.
Dispositions
The following table summarizes the Company’s dispositions:
Successor Predecessor
Period from July 20, 2022 through September 30, 2022 Period from July 1, 2022 through July 19, 2022 Three Months Ended September 30, 2021 Period from January 1, 2022 through July 19, 2022 Nine Months Ended September 30, 2021
Number of buildings 168  13  8  40  11 
Number of land parcels —  —  —  1  — 
Net proceeds $ 1,295,217  $ 46,721  $ 43,900  $ 236,362  $ 76,540 
Gain on sale of real estate, net $ —  $ 38,221  $ 29,924  $ 157,022  $ 49,117 
For additional information on the Non-Core Portfolio disposition refer to Note 1 — Description of Business.
Development
The Company completed the construction and placed into service the following buildings:
Successor Predecessor
Period from July 20, 2022 through September 30, 2022 Period from July 1, 2022 through July 19, 2022 Three Months Ended September 30, 2021 Period from January 1, 2022 through July 19, 2022 Nine Months Ended September 30, 2021
Buildings placed into service —  —  —  —  1 
Square feet —  —  —  —  83,000 
Total costs incurred1
$ —  $ —  $ —  $ —  $ 8,062 
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¹ Total costs incurred represent the Company’s cumulative spend on development activity relating to the properties placed into service in the above periods, including any allocation of purchase price resulting from acquisition of properties under development.

Assets and Liabilities Held for Sale
In the normal course of business, the Company identifies non-strategic assets for sale. The Company separately classifies properties held for sale in its Consolidated Financial Statements. Real estate investments to be disposed of are reported at the lower of carrying amount or estimated fair value, less costs to sell. Once an asset is classified as held for sale, depreciation and amortization expense is no longer recorded. Once a liability is classified as held for sale, amortization of below market leases is no longer recorded.
The following table is a summary of the assets and liabilities of the Company’s zero and 12 properties classified as held for sale as of September 30, 2022 and December 31, 2021, respectively:
Successor Predecessor
September 30, 2022 December 31, 2021
Assets:
Investments in real estate, net $ —  $ 26,788 
Lease-related intangible assets, net —  6,819 
Prepaid expenses and other assets —  2 
Total assets held for sale $ —  $ 33,609