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INVESTMENTS IN REAL ESTATE | 12 Months Ended
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Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract] |
INVESTMENTS IN REAL ESTATE | 3. INVESTMENTS IN REAL ESTATE Investments in real estate consist of the following:
| December 31,
| 2022 |  | 2021
| (in thousands)
Land | $ | 151,727 |  |  | $ | 141,236 |
Land improvements | 1,837 |  |  | 2,644 |
Buildings and improvements | 455,275 |  |  | 454,431 |
Furniture, fixtures, and equipment | 4,339 |  |  | 4,398 |
Tenant improvements | 34,372 |  |  | 29,733 |
Work in progress | 12,863 |  |  | 10,260 |
Investments in real estate | 660,413 |  |  | 642,702 |
Accumulated depreciation | (158,407) |  |  | (144,718) |
Net investments in real estate | $ | 502,006 |  |  | $ | 497,984 |
For the years ended December 31, 2022 and 2021, the Company recorded depreciation expense of $17.3 million and $16.9 million, respectively. 2022 Transactions—During the year ended December 31, 2022, the Company acquired a 100% fee-simple interest in the following properties from unrelated third-parties which were accounted for as asset acquisitions.
|  | Asset |  | Date of |  |  |  | Purchase |  |
Property |  | Type |  | Acquisition |  | Square Feet |  | Price (1) |  |
|  |  |  |  |  |  |  | (in thousands) |  |
3109 S Western Avenue, Los Angeles, CA (1)(5) |  | Multifamily (5) |  | August 4, 2022 |  | 5,900 |  | $ | 700 |  |  |
1007 E 7th Street, Austin, TX (2) (6) |  | Office (6) |  | July 1, 2022 |  | 1,352 |  | $ | 1,900 |  |  |
3022 S Western Avenue, Los Angeles, CA (3) (7) |  | Multifamily (7) |  | May 20, 2022 |  | 6,000 |  | $ | 5,650 |  |  |
3101 S Western Avenue, Los Angeles, CA (4) (8) |  | Multifamily (8) |  | 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 $11,000, 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 $52,000, which are not included in the purchase price above. (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. (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. (5)The Company intends to redevelop approximately seven commercial units totaling 5,635 rentable square feet and six parking stalls starting in 2024. (6)The property is located on a land site of approximately 7,450 square feet. The Company intends to complete pre-development and entitlement work to provide optionality for future development. (7)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 starting in 2024. (8)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 starting in 2023. Please refer to “Investments in Unconsolidated Entities” (Note 4) for information on the Company’s acquisition of an approximate 44% interest in an office property in February 2022. There were no dispositions during the year ended December 31, 2022. 2021 Transactions—During the year ended December 31, 2021, the Company acquired a 100% fee-simple interest in the following property from an unrelated third-party. The purchase was accounted for as an asset acquisition.
|  | Asset |  | Date of |  |  |  | Purchase
Property |  | Type |  | Acquisition |  | Square Feet |  | Price
|  |  |  |  |  |  |  | (in thousands)
1037 North Sycamore, Los Angeles, CA (1) |  | Office |  | July 13, 2021 |  | 4,900 |  | $ | 2,900 |
(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 $33,000, which are not included in the purchase price above. There were no dispositions during the year ended December 31, 2021. The results of operations of the properties the Company acquired have been included in the consolidated statements of operations from the date of acquisition. The following table summarizes the purchase price allocation of the aforementioned acquisitions during the years ended December 31, 2022 and 2021.
| Year Ended December 31,
| 2022 |  | 2021 |  |
| (in thousands)
Land | $ | 10,491 |  |  | $ | 1,839 |  |  |
Land improvements | 54 |  |  | 33 |  |  |
Buildings and improvements | 164 |  |  | 1,061 |  |  |
Tenant improvements | 47 |  |  | — |  |  |
Acquired in-place leases | 68 |  |  | — |  |  |
Acquired above-market leases | — |  |  | — |  |  |
Acquired below-market leases | (37) |  |  | — |  |  |
Net assets acquired | $ | 10,787 |  |  | $ | 2,933 |  |  |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI https://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI https://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI https://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI https://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI https://asc.fasb.org/topic&trid=2134617 + Details
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