INVESTMENT IN REAL ESTATE

3 Months Ended

Mar. 31, 2021

3. INVESTMENTS IN REAL ESTATE

Investments in real estate consist of the following (in thousands):


	March 31, 2021		December 31, 2020
Land	$	139,397	$	139,397
Land improvements	2,611		2,611
Buildings and improvements	451,204		450,741
Furniture, fixtures, and equipment	5,020		4,969
Tenant improvements	31,025		31,414
Work in progress	7,786		8,073
Investments in real estate	637,043		637,205
Accumulated depreciation	(134,921)		(131,165)
Net investments in real estate	$	502,122	$	506,040

The Company recorded depreciation expense of $4.2 million and $4.3 million for the three months ended March 31, 2021 and 2020, respectively.

The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate.

2021 and 2020 Transactions—There were no acquisitions or dispositions during the three months ended March 31, 2021 and 2020.