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Real Estate Activity | 9 Months Ended
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Sep. 30, 2024
Real Estate [Abstract] |
Real Estate Activity | Real Estate Activity Below is a summary of our real estate as of September 30, 2024 and December 31, 2023:
| September 30, 2024 |  | December 31, 2023
Land | $ | 104,156 |  |  | $ | 104,156 |
Building and improvements | 374,892 |  |  | 372,399 |
Tenant improvements | 16,503 |  |  | 16,286 |
Construction in progress | 108,112 |  |  | 76,110 |
Total cost | 603,663 |  |  | 568,951 |
Less accumulated depreciation | (76,101) |  |  | (67,365) |
Total real estate | $ | 527,562 |  |  | $ | 501,586 |
We incurred depreciation expense of $2,966 and $3,313 for the three months ended September 30, 2024 and 2023, respectively, and $8,970 and $9,615 for the nine months ended September 30, 2024 and 2023, respectively. Construction Activities Construction in progress includes the cost of development of Windmill Farms and the costs associated with our multifamily development projects. On March 15, 2023, we entered into a development agreement with Pillar to build a 240 unit multifamily property in Lake Wales, Florida ("Alera") that is expected to be completed in 2025 for a total cost of approximately $55,330. The cost of construction will be funded in part by a $33,000 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,637 fee that will be paid to Pillar over the construction period. As of September 30, 2024, we have incurred a total of $31,878 in development costs, including $1,005 in development fees. On November 6, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in McKinney, Texas ("Merano") that is expected to be completed in 2025 for a total cost of approximately $51,910. The cost of construction will be funded in part by a $25,407 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,551 fee that will be paid to Pillar over the construction period. As of September 30, 2024, we have incurred a total of $15,588 in development costs, including $809 in development fees. On December 15, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in Temple, Texas ("Bandera Ridge") that is expected to be completed in 2025 for a total cost of approximately $49,603. The cost of construction will be funded in part by a $23,500 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,607 fee that will be paid to Pillar over the construction period. As of September 30, 2024, we have incurred a total of $11,087 in development costs, including $336 in development fees. Loss on Real Estate Transactions We had been engaged in litigation with David Clapper and entities related to Mr. Clapper (collectively, the “Clapper") since 1999. The matter originally involved a transaction in 1998 in which we were to acquire eight multifamily properties from the Clapper. Through the years, several rulings, both for and against us, were issued. In a 2011 ruling, Clapper was awarded a judgment for approximately $148,000. This award was later reduced and later appealed by Clapper. In 2021, the verdict was reversed by the U. S. Court of Appeals for the Fifth Circuit and remanded to the trial court for further proceedings, which resulted in a contrary decision of no liability. On March 8, 2024, decision was appealed by Clapper, and the U. S. Court of Appeals for the Fifth Circuit remanded the case back to the lower court for a new trial. On October 31, 2024, we paid $23,400 to Clapper to resolve all claims. We accrued the settlement as a loss on real estate transactions during the three and nine months ended September 30, 2024.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 974 -SubTopic 720 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477728/974-720-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/976/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/978/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/970/tableOfContent Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/972/tableOfContent Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 974 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/974/tableOfContent + Details
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