Item 2. Properties

14K characters. Original on sec.gov · Markdown

Item 2. Properties

As of December 31, 2015, the Company, directly or indirectly through investments in title holding entities, owned all or a portion of 394 properties located in 12 states and the District of Columbia consisting of 109,652 apartment units. See Notes 4, 11 and 18 in the Notes to Consolidated Financial Statements for discussion of the Starwood Transaction and the significant dispositions which occurred subsequent to December 31, 2015. The Company’s properties are summarized by building type in the following table:



Type	Properties	Apartment Units	Average Apartment Units
Garden	200	55,435	277
Mid/High-Rise	192	49,078	256
Military Housing	2	5,139	2,570
	394	109,652

The Company’s properties are summarized by ownership type in the following table:



	Properties	Apartment Units
Wholly Owned Properties	367	98,608
Master-Leased Properties – Consolidated	3	853
Partially Owned Properties – Consolidated	19	3,771
Partially Owned Properties – Unconsolidated	3	1,281
Military Housing	2	5,139
	394	109,652

The following table sets forth certain information by market relating to the Company's properties at December 31, 2015:



Portfolio Summary

Markets/Metro Areas	Properties	Apartment Units	% of Stabilized NOI (1)		Average Rental Rate (2)
Core:
New York	40	10,835	17.6	%	$	4,112
Washington D.C.	57	18,656	17.0	%	2,212
San Francisco	53	13,656	15.1	%	2,704
Los Angeles	61	13,313	12.3	%	2,339
Boston	35	8,018	9.5	%	2,885
Seattle	44	8,756	7.6	%	2,045
Orange County, CA	12	3,684	3.1	%	1,907
San Diego	13	3,505	3.1	%	2,089
Subtotal – Core	315	80,423	85.3	%	2,606
Non-Core:
South Florida	35	11,435	7.2	%	1,708
Denver	19	6,935	4.6	%	1,565
Inland Empire, CA	9	2,751	1.9	%	1,631
All Other Markets	14	2,969	1.0	%	1,226
Subtotal – Non-Core	77	24,090	14.7	%	1,599
Total	392	104,513	100.0	%	2,372
Military Housing	2	5,139	—		—
Grand Total	394	109,652	100.0	%	$	2,372

Note: Projects under development are not included in the Portfolio Summary until construction has been completed.


(1)	% of Stabilized NOI includes actual 2015 NOI for stabilized properties and projected annual NOI at stabilization (defined as having achieved 90% occupancy for three consecutive months) for properties that are in lease-up.


(2)	Average rental rate is defined as total rental revenues divided by the weighted average occupied apartment units for the last month of the period presented.

The Company’s properties had an average occupancy of approximately 94.3% (95.7% on a same store basis) at December 31, 2015. Certain of the Company’s properties are encumbered by mortgages and additional detail can be found on

Schedule III – Real Estate and Accumulated Depreciation. Resident leases are generally for twelve months in length and can require security deposits. The garden-style properties are generally defined as properties with two and/or three story buildings while the mid-rise/high-rise are defined as properties with greater than three story buildings. These two property types typically provide residents with amenities, such as a clubhouse and swimming pool. Certain of these properties offer additional amenities such as saunas, whirlpools, spas, sports courts and exercise rooms or other amenities. In addition, many of our urban properties have parking garage and/or retail components. The military housing properties are defined as those properties located on military bases.

The distribution of the properties throughout the United States reflects the Company’s belief that geographic diversification helps insulate the portfolio from regional influences. At the same time, the Company has sought to create clusters of properties within each of its core markets in order to achieve economies of scale in management and operation. The Company may nevertheless acquire additional multifamily properties located anywhere in the United States and internationally.

The consolidated properties currently in various stages of development and lease-up at December 31, 2015 are included in the following table:



Development and Lease-Up Projects as of December 31, 2015
(Amounts in thousands except for project and apartment unit amounts)
Projects		Location	No. of Apartment Units	Total Capital Cost (1)		Total Book Value to Date		Total Book Value Not Placed in Service		Total Debt		Percentage Completed		Percentage Leased		Percentage Occupied		Estimated Completion Date	Estimated Stabilization Date

Projects Under Development:
Potrero 1010		San Francisco, CA	453	$	224,474	$	174,741	$	174,741	$	—	75	%	—		—		Q2 2016	Q3 2017
Vista 99 (formerly Tasman)		San Jose, CA	554	214,923		191,153		116,624		—		94	%	20	%	16	%	Q2 2016	Q2 2018
Altitude (formerly Village at Howard Hughes)		Los Angeles, CA	545	193,231		153,993		153,993		—		74	%	—		—		Q3 2016	Q2 2017
The Alton (formerly Millikan)		Irvine, CA	344	102,331		75,416		75,416		—		58	%	—		—		Q3 2016	Q3 2017
340 Fremont (formerly Rincon Hill)		San Francisco, CA	348	287,454		218,851		218,851		—		82	%	—		—		Q3 2016	Q1 2018
One Henry Adams		San Francisco, CA	241	172,337		89,907		89,907		—		44	%	—		—		Q1 2017	Q4 2017
455 I St		Washington, DC	174	73,157		28,977		28,977		—		13	%	—		—		Q3 2017	Q2 2018
855 Brannan (formerly 801 Brannan)		San Francisco, CA	449	304,035		100,482		100,482		—		19	%	—		—		Q3 2017	Q1 2019
2nd & Pine (2)		Seattle, WA	398	214,742		95,681		95,681		—		34	%	—		—		Q3 2017	Q2 2019
Cascade		Seattle, WA	483	172,486		67,704		67,704		—		28	%	—		—		Q3 2017	Q2 2019

Projects Under Development			3,989	1,959,170		1,196,905		1,122,376		—

Completed Not Stabilized (3):
Prism at Park Avenue South		New York, NY	269	245,161		239,992		—		—				91	%	90	%	Completed	Q1 2016
170 Amsterdam (4)		New York, NY	236	111,892		111,609		—		—				76	%	71	%	Completed	Q2 2016
Azure (at Mission Bay)		San Francisco, CA	273	187,390		183,455		—		—				71	%	70	%	Completed	Q2 2016
Junction 47 (formerly West Seattle)		Seattle, WA	206	67,112		66,115		—		—				79	%	75	%	Completed	Q3 2016
Odin (formerly Tallman)		Seattle, WA	301	81,777		79,909		—		—				57	%	52	%	Completed	Q4 2016

Projects Completed Not Stabilized			1,285	693,332		681,080		—		—

Completed and Stabilized During the Quarter:
Residences at Westgate II (formerly Westgate III)		Pasadena, CA	88	54,287		52,083		—		—				99	%	99	%	Completed	Stabilized
Parc on Powell (formerly 1333 Powell)		Emeryville, CA	173	87,500		82,975		—		—				98	%	97	%	Completed	Stabilized

Projects Completed and Stabilized During the Quarter			261	141,787		135,058		—		—

Total Development Projects			5,535	$	2,794,289	$	2,013,043	$	1,122,376	$	—

Land Held for Development			N/A	N/A		$	168,843	$	168,843	$	—

Note: All development projects listed are wholly owned by the Company.
(1)	Total capital cost represents estimated cost for projects under development and/or developed and all capitalized costs incurred to date plus any estimates of costs remaining to be funded for all projects, all in accordance with GAAP.
(2)	2nd & Pine – Includes an adjacent land parcel on which certain improvements including a portion of a parking structure will be constructed as part of the development of this project. The Company may eventually construct an additional apartment tower on this site or sell a portion of the garage and the related air rights.
(3)	Properties included here are substantially complete. However, they may still require additional exterior and interior work for all apartment units to be available for leasing.
(4)	170 Amsterdam – The land under this project is subject to a long term ground lease.

Previous: Item 1B. Unresolved Staff Comments · Next: Item 3. Legal Proceedings