
	December 31,
	2020		2019
	(in thousands)
Land	$	139,397	$	134,421
Land improvements	2,611		2,713
Buildings and improvements	450,741		438,349
Furniture, fixtures, and equipment	4,969		4,628
Tenant improvements	31,414		35,667
Work in progress	8,073		13,484
Investments in real estate	637,205		629,262
Accumulated depreciation	(131,165)		(120,555)
Net investments in real estate	$	506,040	$	508,707

For the years ended December 31, 2020, 2019, and 2018, we recorded depreciation expense of $17.7 million, $22.2 million, and $43.5 million, respectively.

2020 Transactions—During the year ended December 31, 2020, we acquired a 100% fee-simple interest in the following property from an unrelated third-party.

Asset

Date of

Purchase

Property

Type

Acquisition

Square Feet

Price (1)

(in thousands)

1021 East 7th Street, Austin, TX

Office

November 30, 2020

11,180

6,079

(1)Transaction costs that were capitalized in connection with the acquisition of this property totaled $51,000, which are not included in the purchase price above.

We sold 100% fee-simple interests in the following properties to unrelated third-parties during the year ended December 31, 2019. Transaction costs related to these sales were expensed as incurred. The results of operations of the properties we sold have been included in the consolidated statements of operations through each properties' respective disposition date.


Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
1333 Broadway, Oakland, CA	Office	May 16, 2019	254,523	115,430		658		55,221
Union Square Properties, Washington, D.C. (2)	Office / Land	July 30, 2019	630,650	181,000		3,744		302
				$	990,996	$	18,350	$	433,104

(1)The “March Oakland Properties” consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

(2)The “Union Square Properties” consist of 899 North Capitol Street, 901 North Capitol Street and 999 North Capitol Street. Prior to the sale, we determined that the book values of such properties exceeded their estimated fair values and recognized an impairment charge of $69.0 million for the year ended December 31, 2019 (Note 2). Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price. The gain on sale includes $113,000 of extinguishment of noncontrolling interests as a result of the sale.

2018 Transactions—During the year ended December 31, 2018, we acquired a 100% fee-simple interest in an office property known as 9460 Wilshire Boulevard from an unrelated third-party. The property has approximately 68,866 square feet of office space and 22,884 square feet of retail space and is located in Beverly Hills, California. The acquisition was funded with proceeds from our Series L Preferred Stock offering, and the acquired property is reported as part of the office segment (Note 17).

Asset

Date of

Purchase

Property

Type

Acquisition

Square Feet

Price (1)

(in thousands)

9460 Wilshire Boulevard, Beverly Hills, CA

Office

January 18, 2018

91,750

132,000

(1)In December 2017, at the time we entered into the purchase and sale agreement, we made a $20.0 million non-refundable deposit to an escrow account that was included in other assets on our consolidated balance sheet as of December 31, 2017. Transaction costs that were capitalized in connection with the acquisition of this property totaled $48,000, which are not included in the purchase price above.

The results of operations of the properties we acquired have been included in the consolidated statements of operations from the date of acquisition. The purchase price of the acquisitions completed during the years ended December 31, 2020 and 2018 were less than 10% of our total assets as of the respective most recent annual consolidated financial statements filed at or prior to the date of acquisition. The following table summarizes the purchase price allocation of the aforementioned acquisitions during the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
	(in thousands)
Land	$	4,976	$	—	$	52,199
Land improvements	9		—		756
Buildings and improvements	534		—		74,522
Tenant improvements	190		—		1,451
Acquired in-place leases (1)	408		—		7,003
Acquired above-market leases (2)	18		—		109
Acquired below-market leases (3)	(5)		—		(3,992)
Net assets acquired	$	6,130	$	—	$	132,048

(1)Acquired in-place leases have a weighted average amortization period of 3 years for both the 2020 and 2018 acquisitions.

(2)Acquired above-market leases have a weighted average amortization period of 3 years and 2 years for the 2020 and 2018 acquisitions, respectively.

(3)Acquired below-market leases have a weighted average amortization period of 3 years for both the 2020 and 2018 acquisitions.

Property Concentrations—Kaiser Foundation Health Plan, Incorporated (“Kaiser”), which occupied space in one of our Oakland, California properties accounted for 30.0% of our annualized rental income for the year ended December 31, 2020.