INVESTMENTS IN REAL ESTATE (Tables)

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

Schedule of Investments in Real Estate

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

	June 30, 2023		December 31, 2022
Land	$	175,709	$	151,727
Land improvements	5,887		1,837
Buildings and improvements	632,866		455,275
Furniture, fixtures, and equipment	12,531		4,339
Tenant improvements	30,322		34,372
Work in progress	14,464		12,863
Investments in real estate	871,779		660,413
Accumulated depreciation	(159,931)		(158,407)
Net investments in real estate	$	711,848	$	502,006

The Company sold an interest in the following property during the six months ended June 30, 2023.

	Asset	Date of	Interest		Sales		Gain on
Property	Type	Sale	Sold		Price		Sale
					(in thousands)
4750 Wilshire Boulevard (1)	Office / Multifamily	February 17, 2023	80.0	%	$	34,400	$	1,104

(1)The Company sold 80% of its interest in 4750 Wilshire Boulevard (excluding a vacant land parcel which was not included in the sale) to co-investors with whom it formed the 4750 Wilshire JV (defined in Note 4). At the acquisition date, the Company received net proceeds of $16.7 million and recorded a receivable of $17.7 million, which the Company expects to collect over a six month period. As of June 30, 2023, the receivable was $5.2 million and is included in other assets on the consolidated balance sheet. The Company owns a 20% interest in the 4750 Wilshire JV and accounts for its investment as an equity method investment as of June 30, 2023.

Schedule of Asset Acquisitions

During the six months ended June 30, 2023, the Company acquired an interest in the following properties from subsidiaries indirectly wholly-owned by a fund that is managed by affiliates of CIM Group Management, LLC. The purchases were accounted for as asset acquisitions.

	Asset	Date of		Interest		Purchase
Property	Type	Acquisition	Units	Acquired		Price
						(in thousands)
Channel House	Multifamily(1)	January 31, 2023	333	89.4	%	$	134,615
F3 Land Site	Multifamily (1)	January 31, 2023	N/A	89.4	%	$	250
466 Water Street Land Site	Multifamily (1)	January 31, 2023	N/A	89.4	%	$	2,500
1150 Clay	Multifamily (2)	March 28, 2023	288	98.1	%	$	145,500

(1)Transaction costs that were capitalized as a component of the assets acquired and liabilities assumed in connection with the acquisition of these property totaled $37,000, which are not included in the purchase prices above. The building at Channel House also includes approximately 1,864 square feet of retail space. The F3 Land Site is currently being utilized as a surface parking lot.

(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 $149,000, which are not included in the purchase price above. The building also includes approximately 3,968 square feet of retail space.

During the six months ended June 30, 2022, the Company acquired a 100% fee-simple interest in the following properties from unrelated third-parties which transaction was accounted for as an asset acquisition.

	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 Development Site (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 $192,000, 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 $22,000, 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 119 residential units.

(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 40 residential units.

Schedule of the Fair Value of the Assets Acquired and Liabilities Assumed

The following table summarizes the purchase price allocation of the aforementioned acquisitions during the six months ended June 30, 2023 and 2022.

	Six months ended June 30,
	2023		2022
	(in thousands)
Land	$	36,613	$	7,907
Land improvements	4,523		52
Buildings and improvements	206,717		156
Furniture, fixtures, and equipment	8,140		—
Acquired in-place leases (1)	27,210		—
Acquired above-market leases (2)	71		—
Acquired below-market leases (3)	(223)		—
Net assets acquired	$	283,051	$	8,115

(1)The amortization period for the acquired in-place leases was approximately 6 months at the date of acquisition.

(2)The amortization period for the acquired above-market leases was approximately 7 months at the date of acquisition.

(3)The amortization period for the acquired below-market leases was approximately 5 months at the date of acquisition.