Multifamily NOI for 2012 increased 7.6 percent compared with 2011, with multifamily same-property revenues increasing 5.4 percent and expenses increasing 2.3 percent. The increase in revenues was primarily due to an improvement in both new and renewal lease rates and a consistently high occupancy level. For the year, the increase in expenses is primarily due to an increase in real estate taxes and payroll costs.Sequentially, multifamily same-property NOI for the fourth quarter 2012 increased 3.9 percent compared with the third quarter 2012, with revenues increasing 0.7 percent and expenses decreasing 4.1 percent compared with the prior quarter. The decrease in expenses is primarily due to seasonal decreases in utilities and repair and maintenance expenses in the fourth quarter 2012 compared with the third quarter 2012. Development Activity During the quarter, the company completed construction of Colonial Grand at Lake Mary (Phase I), a $26.7 million multifamily development with 232 units in Orlando, Florida. As of December 31, 2012, the property was 94.0 percent occupied. Construction continued during the quarter on five wholly-owned apartment communities: Colonial Grand at Double Creek, a $31.7 million development with 296 units in Austin, Texas; Colonial Grand at Lake Mary (Phase II), a $13.9 million development with 108 units in Orlando, Florida; Colonial Reserve at South End, a $59.3 million development with 353 units in Charlotte, North Carolina; Colonial Grand at Randal Lakes, a $57.0 million development with 462 units in Orlando, Florida; and Colonial Grand at Ayrsley (Phase II), a $9.1 million development with 81 units in Charlotte, North Carolina. Acquisitions In October 2012, the company purchased the 370-unit Colonial Grand at Research Park, a Class A garden style multifamily apartment community in Raleigh/Durham, North Carolina, for a total purchase price of $38.0 million of which $21.3 million was used to repay existing property-specific debt. The company previously had a 20 percent ownership interest in the property.