INVESTMENTS IN REAL ESTATE

6 Months Ended

Jun. 30, 2022

3. INVESTMENTS IN REAL ESTATE

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


	June 30, 2022		December 31, 2021
Land	$	149,144	$	141,236
Land improvements	2,697		2,644
Buildings and improvements	454,845		454,431
Furniture, fixtures, and equipment	4,451		4,398
Tenant improvements	30,677		29,733
Work in progress	13,446		10,260
Investments in real estate	655,260		642,702
Accumulated depreciation	(152,653)		(144,718)
Net investments in real estate	$	502,607	$	497,984

For the three months ended June 30, 2022 and 2021, the Company recorded depreciation expense of $4.2 million and $4.2 million. For the six months ended June 30, 2022 and 2021, the Company recorded depreciation expense of $8.4 million and $8.5 million.

2022 Transactions—During the six months ended June 30, 2022, the Company acquired a 100% fee-simple interest in the following properties from unrelated third-parties. The purchases were accounted for as asset acquisitions. Please see “Investments in Unconsolidated Entities” (Note 4) for information on the Company’s acquisition of an approximate 44% interest in an office property in February 2022.

Asset

Date of

Purchase

Property

Type

Acquisition

Square Feet

Price

(in thousands)

3022 S Western Avenue, Los Angeles, CA (1) (3)

Multifamily (3)

May 20, 2022

6,000

5,650

3101 S Western Avenue, Los Angeles, CA (2) (4)

Multifamily (4)

February 11, 2022

3,752

2,260

(1)Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $191,000, which are not included in the purchase price above.

(2)Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of this property totaled $14,000, which are not included in the purchase price above.

(3)The property is located on a land site of approximately 28,300 square feet. The Company intends to entitle the property and develop approximately 114 residential units starting in 2024.

(4)The property is located on a land site of approximately 11,300 square feet. The Company intends to entitle the property and develop approximately 45 residential units starting in 2023.

There were no dispositions during the six months ended June 30, 2022.

2021 Transactions— There were no acquisitions or dispositions for the six months ended June 30, 2021.

The results of operations of the properties the Company acquired have been included in the consolidated statements of operations from the date of acquisition. The purchase price of the acquisitions completed during the six months ended June 30, 2022 were less than 10% of the Company’s total assets as of the respective most recent annual consolidated financial statements filed at or prior to the date of acquisitions. The following table summarizes the purchase price allocation of the aforementioned acquisitions during the six months ended June 30, 2022.




	(in thousands)
Land	$	7,907
Land improvements	52
Buildings and improvements	156




Net assets acquired	$	8,115