Investment in Real Estate

3 Months Ended

Mar. 31, 2020

3. Investment in Real Estate

Real estate by property type and segment includes the following:


	March 31,		December 31,
	2020		2019
Development property:
Residential	$	123,767	$	115,384
Hospitality		21,297		12,229
Commercial		109,054		103,326
Corporate		2,635		2,631
Total development property		256,753		233,570

Operating property:
Residential		11,988		11,985
Hospitality		95,070		94,838
Commercial		175,205		164,589
Other		50		50
Total operating property		282,313		271,462
Less: Accumulated depreciation		70,170		74,256
Total operating property, net		212,143		197,206
Investment in real estate, net	$	468,896	$	430,776

Development property consists of land the Company is developing or intends to develop for sale or future operations and includes direct costs associated with the land, development and construction costs and indirect costs. Residential includes residential communities such as Watersound Origins, SouthWood, WindMark Beach, as well as other communities. Hospitality development property consists of land, construction costs, development costs and improvements primarily related to the Camp Creek Lifestyle Village amenity center, a new hotel in the Pier Park area and a new hotel near the Northwest Florida Beaches International Airport, as well as other properties. Commercial development property primarily consists of land, construction costs and development costs for commercial, multi-family, assisted living and industrial uses, including the Watercrest JV, Watersound Origins Crossings JV, Pier Park Crossings Phase II JV, Beckrich Office Park, land holdings near the Northwest Florida Beaches International Airport and Port of Port St. Joe as well as other properties. Development property in the hospitality and commercial segments will be reclassified as operating property as it is placed into service.

Operating property includes property that the Company uses for operations and activities. Residential operating property consists primarily of residential utility assets and certain rental properties. The hospitality operating property includes the WaterColor Inn, WaterSound Inn, golf courses, a beach club, marinas and certain vacation rental properties. Commercial operating property includes property developed or purchased by the Company and used for retail, multi-family and commercial rental purposes, including property in the Pier Park North JV, VentureCrossings, Pier Park Crossings JV and Beckrich Office Park as well as other properties. Commercial operating property also includes the Company’s timberlands. Operating property may be sold in the future as part of the Company’s principal real estate business.