NOTE 3 – INVESTMENT IN REAL ESTATE, NET

The Company owns and operates a 27-unit multi-family apartment complex located in Santa Monica, California and a 2-unit multi-family apartment complex located in Los Angeles, California. The Company also owns land held for development located in Maui, Hawaii. Investment in real estate consisted of the following:

As of	September 30, 2017		June 30, 2017
Land	$	2,430,000	$	2,430,000
Buildings, improvements and equipment		2,861,000		2,854,000
Accumulated depreciation		(1,275,000)		(1,250,000)
		4,016,000		4,034,000
Land held for development		973,000		973,000
Investment in real estate, net	$	4,989,000	$	5,007,000

In August 2007, Portsmouth agreed to acquire 50% interest in Intergroup Uluniu, Inc., a Hawaiian corporation and a 100% owned subsidiary of InterGroup, for $973,000, which represents an amount equal to the costs paid by InterGroup for the acquisition and carrying costs of approximately two acres of unimproved land held for development located in Maui, Hawaii. As a related party transaction, the fairness of the financial terms of the transaction were reviewed and approved by the independent director of Portsmouth.