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INVESTMENTS IN REAL ESTATE | 3 Months Ended
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Mar. 31, 2024
Real Estate [Abstract] |
INVESTMENTS IN REAL ESTATE | 3. 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 |
For the three months ended March 31, 2024 and 2023, the Company recorded depreciation expense of $5.8 million and $4.8 million, respectively. 2024 Transactions—There were no acquisitions or dispositions during the three months ended March 31, 2024. 2023 Transactions—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 c urrently 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. In addition, please see “Investments in Unconsolidated Entities” (Note 4) for information on the Company’s real estate acquisitions through its investments in Unconsolidated Joint Ventures. 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. The results of operations of the properties the Company acquired have been included in the consolidated statements of operations from the dates of acquisition. 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.

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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 -Topic 976 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//976/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 978 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//978/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 970 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//970/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 972 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//972/tableOfContent Reference 5: 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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