REAL ESTATE INVESTMENTS

3 Months Ended

Mar. 31, 2023

3. REAL ESTATE INVESTMENTS

As of March 31, 2023 and December 31, 2022, the gross carrying value of the operating properties was as follows (in thousands):


	March 31, 2023		December 31, 2022
Land	$	407,336	$	403,998
Building and improvements	2,765,681		2,760,357
Tenant improvements	459,478		452,885


Total	$	3,632,495	$	3,617,240

During the first quarter of 2023, the Company deconsolidated $7.8 million recorded in “Prepaid leasehold interests in land held for development, net” on the consolidated balance sheets. This deconsolidation reflects the Company’s contribution, in January 2023, of 200,000 square feet of buildable floor to area ratio (“FAR”) to the Company’s unconsolidated real estate venture, referred to in Note 4 below as the 3151 Market Street Venture, for use by this unconsolidated real estate venture in the development of 3151 Market Street. Upon contribution at fair market value, we recognized a gain, net of transaction costs, of $0.8 million in “Net gain on sale of undepreciated real estate” on the consolidated statements of operations.