The Company’s consolidated real estate is comprised of the following for the periods presented (in thousands):


	September 30,			December 31,
	2024			2023
Buildings and improvements	$	3,121,177		$	3,128,650
Tenant improvements		291,401			257,955
Land		854,487			872,228
Construction in progress		21,212			23,250
Right-of-use assets - finance leases (Note 11)		61,366			58,637
Total		4,349,643			4,340,720
Less: Accumulated depreciation and amortization		(899,068	)		(823,439	)
Operating real estate, net		3,450,575			3,517,281
Real estate under development		109,778			94,799
Net investments in real estate	$	3,560,353		$	3,612,080

During the nine months ended September 30, 2024, the Company acquired the following retail properties (dollars in thousands):


Property and Location	Percent Acquired	Date of Acquisition	Purchase Price (a)
2024 Acquisitions
Core
Bleecker Street Portfolio (4 assets) - New York, NY	100%	September 19, 2024	$	20,347
1718 N. Henderson Avenue (Land Parcel) - Dallas, TX	100%	September 19, 2024		1,063
Subtotal Core				21,410

Investment Management
Walk at Highwoods Preserve - Tampa, FL	100%	July 3, 2024	$	30,793

Total 2024 Acquisitions			$	52,203

(a)

Purchase price includes capitalized transaction costs.

For the nine months ended September 30, 2024, the Company capitalized $0.5 million of acquisition costs in connection with the 2024 Acquisitions, which are included in Net investments in real estate on the Condensed Consolidated Statements of Operations.

The purchase prices for the 2024 Acquisitions (excluding any properties that were acquired in development) were allocated to the acquired assets and assumed liabilities based on their estimated relative fair values at the dates of acquisition. The following table summarizes the allocation of the purchase price of properties acquired during the nine months ended September 30, 2024 (in thousands):


	Land		Buildings and improvements		Intangible assets		Right-of-use asset		Lease liability			Intangible liabilities			Other assets, net		Net assets acquired
Bleecker Street Portfolio (4 assets)	$	4,962	$	10,460	$	3,695	$	2,729	$	(1,071	)	$	(428	)	$	—	$	20,347
The Walk at Highwoods		9,730		17,053		8,631		—		—			(4,621	)		—	$	30,793
Total	$	14,692	$	27,513	$	12,326	$	2,729	$	(1,071	)	$	(5,049	)	$	—	$	51,140

The Company determines the fair value of the individual components of real estate asset acquisitions primarily through calculating the “as-if vacant” value of a building, using an income approach, which relies significantly upon internally determined assumptions. The Company has determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions. The most significant assumptions used in calculating the “as-if vacant” value for acquisition activity during the nine months ended September 30, 2024 as follows:


	2024
	Low			High
Exit Capitalization Rate		6.50	%		8.00	%
Discount Rate		8.50	%		10.00	%
Annual net rental rate per square foot on acquired buildings	$	17.00		$	330.00
Annual net rental rate per square foot on acquired master lease	$	29.11		$	—

The estimate of the portion of the “as-if vacant” value that is allocated to the land underlying the acquired real estate relies on Level 3 inputs and is primarily determined by reference to recent comparable transactions.

During the nine months ended September 30, 2024, the Company disposed of the following properties and other real estate investments:


Property and Location	Owner	Date Sold	Sale Price		Gain (Loss) on Sale
2024 Dispositions
2208-2216 Fillmore Street - San Francisco, CA	Fund IV	April 3, 2024	$	9,777	$	1,239
2207 Fillmore Street - San Francisco, CA	Fund IV	April 3, 2024		4,283		1,130
Shops at Grand - Queens, NY	Core	May 16, 2024		48,250		(2,213	)
Canton Marketplace (Outparcel) - Canton, GA	Fund V	June 28, 2024		2,200		601
Total 2024 Dispositions (a)			$	64,510	$	757

(a)

During the nine months ended September 30, 2024, the Company recorded a $1.2 million loss related to a Fund IV property that was sold in 2019 in connection with a post-closing dispute.

On May 16, 2024, the Company sold a 95% interest in the Shops at Grand property located in Queens, NY for $48.3 million and retained a 5% ownership interest through an investment in a newly formed joint venture which was fair valued at $2.4 million. As a result of the transaction, the Company deconsolidated the property and accounted for its interest under the equity method of accounting effective May 16, 2024 as it no longer controls the investment (Note 4). The Company recognized a loss on deconsolidation of $2.2 million related to transaction costs, which is included in the Loss on disposition of properties in the Condensed and Consolidated Statements of Operations.

At September 30, 2024, the Company had one Investment Management property held for sale with assets totaling $35.9 million and liabilities totaling $5.4 million, related to the property Walk at Highwoods Preserve, which the Company acquired on July 3, 2024. The Company has classified this asset as held for sale as the Company has committed to a plan to sell this asset and expects that the sale will be completed within one year. Assets and liabilities of the properties held for sale consisted of the following:


	September 30,		December 31,
	2024		2023
Assets
Building and improvements	$	17,063	$	12,562
Tenant improvements	$	34	$	1,010
Land		9,730		3,380
Real estate, intangible assets		8,631		—
Less: Accumulated depreciation and amortization		—		(5,895	)
Other		420		—
	$	35,878	$	11,057
Liabilities
Real estate, intangible assets	$	4,621		—
Accounts payable and other liabilities		814		—
	$	5,435	$	—

The Company had one property classified as held for sale as of December 31, 2023, which was transferred to Investments in real estate, at cost during the first quarter of 2024, as the Company no longer believes it is probable the asset will be disposed within the next twelve months.

Real estate under development represents the Company’s consolidated properties that have not yet been placed into service while undergoing substantial development or construction.

Development activity for the Company’s consolidated properties comprised the following during the periods presented (dollars in thousands):


	January 1, 2024				Nine Months Ended September 30, 2024						September 30, 2024
	Number of Properties		Carrying Value		Transfers In		Capitalized Costs		Transfers Out		Number of Properties		Carrying Value
Core		2	$	66,083	$	1,063	$	12,067	$	—		3		79,213
Fund III		1		28,716		—		1,849		—		1		30,565
Total		3	$	94,799	$	1,063	$	13,916	$	—		4	$	109,778

The number of properties in the table above refers to projects comprising the entire property under development; however, certain projects represent a portion of a property. As of September 30, 2024, consolidated development projects included: portions of the Henderson Avenue Portfolio in the Core Portfolio, and Broad Hollow Commons in Fund III.

During the nine months ended September 30, 2024, the Company acquired one development land parcel at Henderson Avenue (Note 2); the Company did not place any assets into service.

Construction in progress pertains to construction activity at the Company’s operating properties that are in service and continue to operate during the construction period.