INVESTMENTS IN REAL ESTATE

9 Months Ended

Sep. 30, 2021

3. INVESTMENTS IN REAL ESTATE

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


	September 30, 2021		December 31, 2020
Land	$	141,237	$	139,397
Land improvements	2,645		2,611
Buildings and improvements	453,555		450,741
Furniture, fixtures, and equipment	4,627		4,969
Tenant improvements	29,293		31,414
Work in progress	8,623		8,073
Investments in real estate	639,980		637,205
Accumulated depreciation	(141,102)		(131,165)
Net investments in real estate	$	498,878	$	506,040

The Company recorded depreciation expense of $4.3 million and $4.4 million for the three months ended September 30, 2021 and 2020, respectively, and $12.7 million and $13.0 million for the nine months ended September 30, 2021 and 2020, respectively.

2021 and 2020 Transactions—During the nine months ended September 30, 2021, the Company acquired from an unrelated third-party a 100% fee-simple interest in an office property located in Los Angeles, California for a purchase price of $2.9 million, which was accounted for as an asset acquisition. The purchase price excludes transaction costs of $33,000 that were incurred and capitalized in connection with this acquisition. The property has 4,455 square feet of office space. There were no acquisitions or dispositions during the nine months ended September 30, 2020.