Real Estate Assets and Discontinued Operations

3 Months Ended

Mar. 31, 2022

Real Estate Assets And Discontinued Operations

Real Estate Assets And Discontinued Operations

4.    Real Estate Assets and Discontinued Operations

Real estate assets consist of:

	Estimated
	Useful Lives	March 31, 2022		December 31, 2021
Land		$	56,572	$	55,104
Land improvements	10 to 30 years		65,849		65,520
Buildings and improvements	10 to 40 years		318,619		295,964
Tenant improvements	Shorter of useful life or terms of related lease		32,109		31,576
Construction in progress			31,559		20,799
Development costs			3,799		3,673
			508,507		472,636
Accumulated depreciation			(88,619)		(84,989)
		$	419,888	$	387,647

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

	For the Three Months Ended
	March 31, 2022		March 31, 2021
Depreciation expense	$	3,637	$	2,679

On January 19, 2022, INDUS closed on the purchase of 782 Paragon Way (“782 Paragon”), an approximately 217,000 square foot fully leased building in the Charlotte, North Carolina market for $24,026, including transaction costs. INDUS determined the fair value of the assets acquired approximated the purchase price, which was allocated to real estate assets.

In March 2022, the Company announced its intention to sell its Office/Flex Portfolio (see Note 1). The Office/Flex Portfolio is comprised of seven buildings totaling approximately 175,000 square feet located in Windsor and Bloomfield, Connecticut. Additionally, INDUS intends to sell an approximate 18,000 square foot storage building that had been used in the operations of the Office/Flex Portfolio and is located within the same business park. The disposition of the Office/Flex Portfolio represents a strategic shift for the Company and, as such, is being treated as a discontinued operation as of March 31, 2022. Accordingly, for all prior periods presented, the related assets and liabilities are presented as assets and liabilities held for sale on the consolidated balance sheets.

Real estate assets in discontinued operations consist of:

	March 31, 2022		December 31, 2021
Land	$	31	$	31
Land improvements		1,840		1,840
Buildings and improvements		15,403		15,396
Tenant improvements		3,485		3,485
Construction in progress		555		338
		21,314		21,090
Accumulated depreciation		(14,781)		(14,571)
		6,533		6,519
Other assets		1,397		1,471
Total assets associated with real estate assets held for sale	$	7,930	$	7,990
Accounts payable and accrued liabilities	$	100	$	67
Deferred revenue		518		620
Other liabilities		212		145
Total liabilities associated with real estate assets held for sale	$	830	$	832