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INVESTMENTS IN REAL ESTATE (Tables) | 12 Months Ended
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Dec. 31, 2023
Real Estate [Abstract] |
Schedule of Investments in Real Estate | Investments in real estate consist of the following:
| December 31,
| 2023 |  | 2022
| (in thousands)
Land | $ | 175,715 |  |  | $ | 151,727 |
Land improvements | 5,862 |  |  | 1,837 |
Buildings and improvements | 633,299 |  |  | 455,275 |
Furniture, fixtures, and equipment | 11,627 |  |  | 4,339 |
Tenant improvements | 26,460 |  |  | 34,372 |
Work in progress | 15,915 |  |  | 12,863 |
Investments in real estate | 868,878 |  |  | 660,413 |
Accumulated depreciation | (164,116) |  |  | (158,407) |
Net investments in real estate | $ | 704,762 |  |  | $ | 502,006 |
The Company sold an interest in the following property during the year ended December 31, 2023.
|  | Asset |  | Date of |  |  |  | Interest |  | Sales |  | Gain on
Property |  | Type |  | Sale |  |  |  | Sold |  | Price |  | Sale
|  |  |  |  |  |  |  |  |  | (in thousands)
4750 Wilshire Boulevard (1) |  | Office / Multifamily (Development) |  | 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 the 4750 Wilshire JV Partners (defined in Note 4). At the acquisition date, the Company received net proceeds of $16.7 million and recorded a receivable of $17.6 million. As of December 31, 2023, the remaining proceeds receivable was $1.1 million and is included in other assets on the Company’s consolidated balance sheet. Additionally, the Company has a receivable of $1.4 million due from the 4750 Wilshire JV (defined in Note 4) 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 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 December 31, 2023.
Schedule of Asset Acquisitions | During the year ended December 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 acquisitions 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 (Development) (1) |  | January 31, 2023 |  | N/A |  | 89.4 | % |  | $ | 250 |  |  |
466 Water Street Land Site |  | Multifamily (Development) (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 c urrently being utilized as a surface parking lot and being evaluated for future development options including hotel development. (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 year ended December 31, 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.
|  | Asset |  | Date of |  |  |  | Purchase
Property |  | Type |  | Acquisition |  | Square Feet |  | Price
|  |  |  |  |  |  |  | (in thousands)
3109 S Western Avenue, Los Angeles, CA (1) |  | Multifamily (Development) |  | August 4, 2022 |  | 5,900 |  | $ | 700 |
1007 E 7th Street, Austin, TX (2) |  | Office |  | July 1, 2022 |  | 1,352 |  | $ | 1,900 |
3022 S Western Avenue, Los Angeles, CA (3) |  | Multifamily (Development) |  | May 20, 2022 |  | 6,000 |  | $ | 5,650 |
3101 S Western Avenue, Los Angeles, CA (4) |  | Multifamily (Development) |  | 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. 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 pre-development and entitlement work to provide optionality for future development, including multifamily 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 years ended December 31, 2023 and 2022.
| Year Ended December 31,
| 2023 |  | 2022 |  |
| (in thousands)
Land | $ | 36,613 |  |  | $ | 10,491 |  |  |
Land improvements | 4,523 |  |  | 54 |  |  |
Buildings and improvements | 206,717 |  |  | 164 |  |  |
Tenant improvements | — |  |  | 47 |  |  |
Furniture, fixtures, and equipment | 8,140 |  |  | — |  |  |
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 |  |  | $ | 10,787 |  |  |
(1)The amortization period for the in-place leases acquired during the year ended December 31, 2023 was approximately 6 months at the date of acquisition. (2)The amortization period for the above-market leases acquired during the year ended December 31, 2023 was approximately 7 months at the date of acquisition. (3)The amortization period for the below-market leases acquired during the year ended December 31, 2023 was approximately 5 months at the date of acquisition.

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