INVESTMENTS IN REAL ESTATE (Tables)

3 Months Ended

Mar. 31, 2024

Real Estate [Abstract]

Schedule of Investments in Real Estate

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

	March 31, 2024		December 31, 2023
Land	$	175,682	$	175,715
Land improvements	5,863		5,862
Buildings and improvements	633,963		633,299
Furniture, fixtures, and equipment	11,573		11,627
Tenant improvements	26,596		26,460
Work in progress	16,635		15,915
Investments in real estate	870,312		868,878
Accumulated depreciation	(169,694)		(164,116)
Net investments in real estate	$	700,618	$	704,762

The Company sold an interest in the following property during the three months ended March 31, 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 the Company 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, all of which has been collected as of March 31, 2024. Additionally, as of March 31, 2024, the Company has a receivable of $1.4 million due from the 4750 Wilshire JV included in other assets on the Company’s consolidated balance sheet related to development costs incurred by the Company at 4750 Wilshire Boulevard prior to the sale of 80% of its interest in the property to the 4750 Wilshire JV. The Company owns a 20% interest in the 4750 Wilshire JV and accounts for its investment as an equity method investment as of March 31, 2023.

Schedule of Asset Acquisitions

During the three months ended March 31, 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.

	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 properties 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 and being evaluated for future development options including hotel development but there are no formal plans in place to begin development as of March 31, 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 $149,000, which are not included in the purchase price above. The building also includes approximately 3,968 square feet of retail space.

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 three months ended March 31, 2024 and 2023.

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Land	$	—	$	36,613
Land improvements	—		4,523
Buildings and improvements	—		206,717
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

(1)The amortization period for the in-place leases acquired during the three months ended March 31, 2023 was approximately 6 months at the date of acquisition.

(2)The amortization period for the above-market leases acquired during the three months ended March 31, 2023 was approximately 7 months at the date of acquisition.

(3)The amortization period for the below-market leases acquired during the three months ended March 31, 2023 was approximately 5 months at the date of acquisition.