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INVESTMENTS IN REAL ESTATE (Tables)
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Schedule of Investments in Real Estate
Investments in real estate consist of the following (in thousands):
 September 30, 2023December 31, 2022
Land$175,709 $151,727 
Land improvements5,863 1,837 
Buildings and improvements633,129 455,275 
Furniture, fixtures, and equipment11,585 4,339 
Tenant improvements25,114 34,372 
Work in progress15,437 12,863 
Investments in real estate866,837 660,413 
Accumulated depreciation(158,659)(158,407)
Net investments in real estate$708,178 $502,006 
The Company sold an interest in the following property during the nine months ended September 30, 2023.
AssetDate ofInterestSalesGain on
PropertyTypeSaleSoldPrice Sale
(in thousands)
4750 Wilshire Boulevard (1)
Office / MultifamilyFebruary 17, 202380.0 %$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. As of September 30, 2023, the remaining receivable was $3.0 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 September 30, 2023.
Schedule of Asset Acquisitions During the nine months ended September 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. The purchases were accounted for as asset acquisitions.
AssetDate ofInterest Purchase
PropertyTypeAcquisitionUnitsAcquiredPrice
(in thousands)
Channel House
Multifamily(1)
January 31, 202333389.4 %$134,615 
F3 Land Site
Multifamily (1)
January 31, 2023N/A89.4 %$250 
466 Water Street Land Site
Multifamily (1)
January 31, 2023N/A89.4 %$2,500 
1150 Clay
Multifamily (2)
March 28, 202328898.1 %$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 nine months ended September 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.
AssetDate ofPurchase
PropertyTypeAcquisitionSquare FeetPrice
(in thousands)
3109 S Western Avenue, Los Angeles, CA (1)
MultifamilyAugust 4, 20225,900$700 
1007 E 7th Street, Austin, TX (2)
Office July 1, 20221,352$1,900 
3022 S Western Avenue, Los Angeles, CA (3)
Multifamily May 20, 20226,000$5,650 
3101 S Western Avenue, Los Angeles, CA (4)
Multifamily Development Site February 11, 20223,752$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. The Company intends to redevelop approximately seven commercial units totaling 5,635 rentable square feet and six parking stalls starting in 2024.
(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 $52,000, which are not included in the purchase price above. The property is located on a land site of approximately 7,450 square feet. The Company intends to complete predevelopment and entitlement work to provide optionality for future development.
(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 $192,000, which are not included in the purchase price above. 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)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. 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 nine months ended September 30, 2023 and 2022.
Nine months ended September 30,
20232022
(in thousands)
Land$36,613 $10,480 
Land improvements4,523 54 
Buildings and improvements206,717 164 
Tenant improvements— 47 
Furniture, fixtures, and equipment8,140 — 
Acquired in-place leases (1)27,210 68 
Acquired above-market leases (2)71 — 
Acquired below-market leases (3)(223)(37)
Net assets acquired$283,051 $10,776 
(1)The amortization period for the in-place leases acquired during the nine months ended September 30, 2023 was approximately 6 months at the date of acquisition.
(2)The amortization period for the above-market leases acquired during the nine months ended September 30, 2023 was approximately 7 months at the date of acquisition.
(3)The amortization period for the below-market leases acquired during the nine months ended September 30, 2023 was approximately 5 months at the date of acquisition.