Item 2. PROPERTIES.

We seek to acquire newer apartment communities and those with opportunities for repositioning through capital additions and management improvement located in the Southeast and Southwest regions of the United States with the potential for above average growth and return on investment. Approximately 68% of our apartment units are located in the Florida, Georgia, North Carolina, and Texas markets. Our strategic focus is to provide our residents high quality apartment units in attractive community settings, characterized by upscale amenities, extensive landscaping and attention to aesthetic detail.

The following table summarizes our apartment community portfolio and occupancy levels by location, as of December 31, 2017:

Twenty -nine of our multifamily properties reflected in the above table also include commercial components totaling approximately 620,000 square feet of gross leasable space. We also owned four commercial properties totaling approximately 230,000 square feet of combined gross leasable space as of December 31, 2017.

Mortgage Financing

As of December 31, 2017, we had approximately $962.8 million of indebtedness collateralized, secured, and outstanding as set forth in Schedule III, Real Estate and Accumulated Depreciation.