Property and Equipment

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

Note 6. Property and Equipment

Property and equipment, net consists of the following at December 31, 2014 and 2013 (in thousands):

	December 31, 2014		December 31, 2013
Land	$	2,582	$	2,582
Building		9,599		7,090
Computer hardware and software		2,155		364
Office furniture and equipment		445		176
Tenant and leasehold improvements		2,812		873
Vehicles		421		—
Total, at cost		18,014		11,085
Less: accumulated depreciation and amortization		927		150
Property and equipment, net	$	17,087	$	10,935

Depreciation expense for the years ended December 31, 2014 and 2013 and the period from August 7, 2012 (inception) to December 31, 2012 was $0.8 million, $0.2 million and $0, respectively. The Company’s real estate consists of 13 acres of land, two buildings with a gross area of 148,000 square feet and a parking garage. The Company relocated to these facilities during March 2014. These facilities and the related existing tenant lease agreements were acquired in April 2013 for a total purchase price of $9.8 million paid in cash.

The Company currently leases space to non-affiliates and occupies space in one of the buildings.

Expected annual rental income due under non-cancellable operating leases for our real estate properties is as follows (in thousands):

Year	Amount
January 1 to December 31, 2015	$	2,100
January 1 to December 31, 2016	$	2,066
January 1 to December 31, 2017	$	2,115
January 1 to December 31, 2018	$	2,167
January 1 to December 31, 2019	$	1,982
Thereafter	$	7,189