Note 5 – Consolidated Investments

As of December 31, 2015, the major components of our consolidated real estate properties were as follows (amounts in thousands):

Property	Land		Building and Improvements		Furniture, Fixtures and Equipment		Total
ARIUM Grandewood	$	5,200	$	36,915	$	760	$	42,875
ARIUM Palms		4,030		31,545		1,058		36,633
Ashton Reserve		5,900		58,636		1,838		66,374
Enders Place at Baldwin Park		5,453		22,281		1,481		29,215
Fox Hill		4,180		32,389		910		37,479
Lansbrook Village		7,224		52,331		1,798		61,353
MDA Apartments		9,500		51,558		753		61,811
Park & Kingston		3,360		26,438		465		30,263
Sorrel		6,710		44,607		2,847		54,164
Sovereign		2,800		38,480		2,130		43,410
Springhouse at Newport News		6,500		27,860		1,371		35,731
Village Green of Ann Arbor		4,200		51,568		1,744		57,512
	$	65,057	$	474,608	$	17,155	$	556,820
Less: accumulated depreciation		—		20,046		3,391		23,437
Total	$	65,057	$	454,562	$	13,764	$	533,383

Operating Leases

The Company’s real estate assets are leased to tenants under operating leases for which the terms and expirations vary. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. The Company retains substantially all of the risks and benefits of ownership of the consolidated real estate assets leased to tenants. Generally, upon the execution of a lease, the Company requires security deposits from tenants in the form of a cash deposit. Amounts required as a security deposit vary depending upon the terms of the respective leases and the creditworthiness of the tenant, but generally are not individually significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of their security deposit. Security deposits received in cash related to tenant leases are included in other liabilities in the accompanying consolidated balance sheets and totaled $1.3 million and $0.7 million as of December 31, 2015 and 2014, respectively, for the Company’s consolidated real estate properties. Tenant security deposits related to North Park Towers totaled $0.1 million for the year ended December 31, 2014, and are included in liabilities associated with operating real estate held for sale in the accompanying 2014 consolidated balance sheet. No individual tenant represents over 10% of the Company’s annualized base rent for the consolidated real estate properties.

Depreciation expense was $12.4 million and $8.4 million for the years ended December 31, 2015 and 2014, respectively, including amounts in discontinued operations.

Intangibles related to the Company’s consolidated investments in real estate consist of the value of in-place leases. In-place leases are amortized over the remaining term of the in-place leases, which is approximately six months. Amortization expense related to the in-place leases was $3.8 million and $4.5 million for the years ended December 31, 2015 and 2014, respectively.