Real Estate Assets

6 Months Ended

Jun. 30, 2021

Real Estate Assets

Real Estate Assets

4.    Real Estate Assets

Real estate assets consist of:

	Estimated
	Useful Lives	June 30, 2021		Dec. 31, 2020
Land		$	45,464	$	33,084
Land improvements	10 to 30 years		47,074		45,827
Buildings and improvements	10 to 40 years		279,235		233,250
Tenant improvements	Shorter of useful life or terms of related lease		35,249		34,899
Machinery and equipment	3 to 20 years		10,958		10,958
Construction in progress			22,306		4,036
Development costs			3,856		5,106
			444,142		367,160
Accumulated depreciation			(128,850)		(124,839)
		$	315,292	$	242,321

Total depreciation expense related to real estate assets were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Depreciation expense	$	2,987	$	3,049	$	5,903	$	5,950

On June 28, 2021, INDUS, through a consolidated VIE, purchased 7800 Tuckaseegee Road (“7800 Tuckaseegee”), an approximately 395,000 square foot industrial/logistics building in Charlotte, North Carolina for $42,514, including acquisition costs. On May 12, 2021, INDUS, through a consolidated VIE, purchased 6355 Farm Bureau Road (“6355 Farm Bureau”), an approximately 128,000 square foot industrial/logistics building in the Lehigh Valley of Pennsylvania for $11,928, including acquisition costs. For both acquisitions, INDUS provided all of the funding to the VIEs for the purchases and determined the fair value of the assets acquired approximated the purchase price, which was allocated to the real estate assets and intangible assets (see Note 9) on a relative fair value basis. The acquisitions of 7800 Tuckaseegee and 6355 Farm Bureau were made utilizing Reverse 1031 Like-Kind Exchanges that were entered into at the time the properties were acquired. As such, as of June 30, 2021, these properties are in the possession of a qualified intermediary engaged to execute the Reverse 1031 Like-Kind Exchanges until the potential real estate sales transactions and the Reverse 1031 Like-Kind Exchanges are completed.

On April 13, 2021, INDUS closed on the purchase of an approximately 14 acre parcel of undeveloped land in Orlando, Florida (the “Jetport Land”) for a purchase price of $5,658, after transaction and entitlement costs. The Jetport Land is a replacement property as part of a Section 1031 Like-Kind Exchange (“1031 Like-Kind Exchange”) under the Internal Revenue Code. INDUS acquired the Jetport Land utilizing $1,993 of proceeds from the sales of one of its office/flex buildings and two smaller land parcels in November 2020. The balance of the purchase price for the Jetport Land was paid from the Company’s cash on hand. INDUS plans to construct two industrial/logistics buildings totaling approximately 195,000 square feet on the Jetport Land.

The purchase prices for acquisitions in the 2021 six month period were allocated as follows:

	7800 Tuckaseegee		6355 Farm Bureau		Jetport Land		Total
Land	$	4,606	$	2,163	$	5,658	$	12,427
Land improvements		927		388		—		1,315
Buildings and improvements		35,959		10,036		—		45,995
Tenant improvements		200		132		—		332
Value of in-place lease		1,462		918		—		2,380
Value of below market lease		(640)		(1,709)		—		(2,349)
	$	42,514	$	11,928	$	5,658	$	60,100

See Note 11 for subsequent events related to INDUS’s real estate assets.

Real estate assets held for sale consist of:

	June 30, 2021		Dec. 31, 2020
Land	$	522	$	505
Land improvements		269		269
Development costs		5,589		6,028
	$	6,380	$	6,802

The decrease in real estate assets held for sale in the 2021 six month period reflected $771 for sales of real estate assets that closed partially offset by $349 that was reclassified from real estate assets into real estate assets held for sale as a result of entering into agreements to sell such real estate. The amounts remaining in real estate assets held for sale are related to sales currently under contract which INDUS expects to close within the next six to nine months.