REAL ESTATE

A summary of our real estate investments is as follows (in thousands):



	Retail			Office			Multifamily			Mixed-Use			Total
December 31, 2018
Land	$	262,860		$	143,467		$	72,668		$	76,635		$	555,630
Buildings	516,566			743,474			389,831			125,859			1,775,730
Land improvements	43,412			8,825			6,778			2,606			61,621
Tenant improvements	70,210			91,612			—			1,918			163,740
Furniture, fixtures, and equipment	570			2,671			13,844			6,826			23,911
Construction in progress	8,598			39,511			854			596			49,559			⁽¹⁾
	902,216			1,029,560			483,975			214,440			2,630,191
Accumulated depreciation	(273,482		)	(206,986		)	(71,933		)	(37,937		)	(590,338		)
Net real estate	$	628,734		$	822,574		$	412,042		$	176,503		$	2,039,853
December 31, 2017
Land	$	262,860		$	143,575		$	72,668		$	76,635		$	555,738
Buildings	548,062			705,999			383,210			125,859			1,763,130
Land improvements	42,401			9,313			6,758			2,606			61,078
Tenant improvements	67,879			80,968			—			1,955			150,802
Furniture, fixtures, and equipment	372			2,085			12,377			6,429			21,263
Construction in progress	3,086			52,512			6,505			24			62,127			⁽¹⁾
	924,660			994,452			481,518			213,508			2,614,138
Accumulated depreciation	(266,006		)	(181,331		)	(57,474		)	(32,620		)	(537,431		)
Net real estate	$	658,654		$	813,121		$	424,044		$	180,888		$	2,076,707

(1) Land related to held for development and construction in progress is included in the Held for Development and Construction in Progress classifications on the consolidated balance sheets.

Property Asset Acquisitions

On April 28, 2017, we acquired the Pacific Ridge Apartments, a 533-unit luxury apartment community located in San Diego, California. The purchase price was approximately $232 million, excluding closing costs of approximately $0.1 million.

On July 6, 2017, we acquired Gateway Marketplace, an approximately 128,000 square feet dual-grocery anchored shopping center located in Chula Vista, California. The purchase price was approximately $42 million, excluding closing costs of approximately $0.1 million.

The properties were acquired with cash on hand and borrowings under our Amended and Restated Credit Agreement (as defined herein).

The financial information set forth below summarizes the company’s purchase price allocations for the Pacific Ridge Apartments and Gateway Marketplace during the year ended December 31, 2017 (in thousands):



	Pacific Ridge Apartments		Gateway Marketplace
Land	$	47,971	$	17,363
Building	171,813		19,192
Land improvements	3,403		1,522
Furniture, fixtures, and equipment	3,281		930
Total real estate	226,468		39,007
Lease intangibles	5,592		2,920
Prepaid expenses and other assets	424		—
Assets acquired	$	232,484	$	41,927
Accounts payable and accrued expenses	$	74	$	203
Security deposits payable	673		22
Other liabilities and deferred credits	49		1,034
Liabilities assumed	$	796	$	1,259

The following table summarizes the operating results for the Pacific Ridge Apartments and Gateway Marketplace included in the company’s historical consolidated statement of operations for the period of acquisition through December 31, 2017 (in thousands):



	Pacific Ridge Apartments			Gateway Marketplace		Total
Revenues	$	10,983		$	1,667	$	12,650
Operating expenses	$	15,238		$	1,082	$	16,320
Operating (loss) income	$	(4,255	)	$	585	$	(3,670	)
Net (loss) income attributable to American Assets Trust, Inc.	$	(4,255	)	$	585	$	(3,670	)

Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations of the Pacific Ridge Apartments and Gateway Marketplace with the company’s historical consolidated statements of operations as though the entities were acquired on January 1, 2016. The pro forma financial information includes adjustments to depreciation expense for acquired property and equipment and adjustments to amortization charges for acquired intangible assets and liabilities. The pro forma financial information set forth below is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2016, nor does it purport to represent the results of future operations (in thousands).



	Year Ended December 31, 2017				Year Ended December 31, 2016
	As Reported		ProForma		As Reported		ProForma
Total revenue	$	314,983	$	322,050	$	295,088	$	312,414
Total operating expenses	$	221,337	$	230,796	$	197,147	$	215,631
Operating income	$	93,646	$	91,255	$	97,941	$	96,783
Net income	$	40,132	$	36,433	$	45,637	$	41,916

Dispositions

None.