
	September 30, 2022		December 31, 2021
Land	$	151,718	$	141,236
Land improvements	2,701		2,644
Buildings and improvements	454,868		454,431
Furniture, fixtures, and equipment	4,374		4,398
Tenant improvements	35,033		29,733
Work in progress	11,363		10,260
Investments in real estate	660,057		642,702
Accumulated depreciation	(156,267)		(144,718)
Net investments in real estate	$	503,790	$	497,984

For the three months ended September 30, 2022 and 2021, the Company recorded depreciation expense of $4.3 million and $4.3 million, respectively. For the nine months ended September 30, 2022 and 2021, the Company recorded depreciation expense of $12.8 million and $12.7 million, respectively.

2022 Transactions—During the nine months ended September 30, 2022, the Company acquired a 100% fee-simple interest in the following properties from unrelated third-parties which were accounted for as asset acquisitions.

Asset

Date of

Purchase

Property

Type

Acquisition

Square Feet

Price

(in thousands)

3109 S Western Avenue, Los Angeles, CA (1) (5)

Multifamily(5)

August 4, 2022

5,900

700

1007 E 7th Street, Austin, TX (2) (6)

Office (6)

July 1, 2022

1,352

1,900

3022 S Western Avenue, Los Angeles, CA (3) (7)

Multifamily (7)

May 20, 2022

6,000

5,650

3101 S Western Avenue, Los Angeles, CA (4) (8)

Multifamily (8)

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 $11,000, 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 $50,000, which are not included in the purchase price above.

(3)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.

(4)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.

(5)The Company intends to redevelop approximately seven commercial units totaling 5,635 rentable square feet and six parking stalls starting in 2024.

(6)The property is located on a land site of approximately 7,450 square feet. The Company intends to complete pre-development and entitlement work to provide optionality for future development.

(7)The property is located on a land site of approximately 28,300 square feet. The Company intends to entitle the property and develop approximately 119 residential units starting in 2024.

(8)The property is located on a land site of approximately 11,300 square feet. The Company intends to entitle the property and develop approximately 40 residential units starting in 2023.

In addition, 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.

2021 Transactions— During the nine months ended September 30, 2021, the Company acquired a 100% fee-simple interest in the following properties from unrelated third-parties. The purchases were accounted for as asset acquisitions.

Asset

Date of

Purchase

Property

Type

Acquisition

Square Feet

Price

(in thousands)

1037 N Sycamore, Los Angeles, CA (1)

Office

July 13, 2021

4,900

2,900

(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 $33,000, which are not included in the purchase price above.

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 nine months ended September 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 nine months ended September 30, 2022 and 2021.




	Nine Months Ended September 30,
	2022		2021
	(in thousands)
Land	$	10,480	$	1,839
Land improvements	54		33
Buildings and improvements	164		1,061
Tenant improvements	47		—
Acquired in-place leases (1)	68		—

Acquired below-market leases (3)	(37)		—
Net assets acquired	$	10,776	$	2,933