Investment in Real Estate

6 Months Ended

Jun. 30, 2021

Investment in Real Estate

Investment in Real Estate

3. Investment in Real Estate

Real estate by property type and segment includes the following:

	June 30,		December 31,
	2021		2020
Development property:
Residential	$	115,173	$	116,911
Hospitality		93,364		51,113
Commercial		96,118		123,389
Other		3,342		2,691
Total development property		307,997		294,104
Operating property:
Residential		13,253		13,254
Hospitality		106,347		103,687
Commercial		254,852		216,439
Other		127		129
Total operating property		374,579		333,509
Less: Accumulated depreciation		80,987		75,960
Total operating property, net		293,592		257,549
Investment in real estate, net	$	601,589	$	551,653

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, as well as development, construction and indirect costs. Residential development property includes residential communities such as Watersound Origins, SouthWood and WindMark Beach, as well as other communities. Hospitality development property consists of land, improvements and construction and development costs primarily related to the Pier Park Resort Hotel JV, Watersound Camp Creek club amenity, HomeWood Suites by Hilton hotel in Panama City Beach, Florida, The Lodge 30A JV hotel, a Hilton Garden Inn near the Northwest Florida Beaches International Airport, Bay Point Marina and Port St. Joe Marina, as well as other properties. Commercial development property primarily consists of land and construction and development costs for commercial, multi-family and industrial uses, including the Watersound Origins Crossings JV, Watersound Town Center, Star Avenue apartments, 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, The Powder Room, golf courses, a beach club and certain vacation rental properties. Commercial operating property includes property developed or purchased by the Company and used for retail, multi-family, senior living and commercial rental purposes, including property in the Pier Park North JV, VentureCrossings, Pier Park Crossings JV, Pier Park Crossings II JV, Watersound Origins Crossings JV, Watercrest 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.