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INVESTMENTS IN REAL ESTATE (Tables) | 6 Months Ended
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Jun. 30, 2024
Real Estate [Abstract] |
Schedule of Investments in Real Estate | Investments in real estate consist of the following (in thousands):
|  | June 30, 2024 |  | December 31, 2023
Land |  | $ | 175,682 |  |  | $ | 175,715 |
Land improvements |  | 5,863 |  |  | 5,862 |
Buildings and improvements |  | 635,273 |  |  | 633,299 |
Furniture, fixtures, and equipment |  | 11,562 |  |  | 11,627 |
Tenant improvements |  | 26,547 |  |  | 26,460 |
Work in progress |  | 18,848 |  |  | 15,915 |
Investments in real estate |  | 873,775 |  |  | 868,878 |
Accumulated depreciation |  | (174,446) |  |  | (164,116) |
Net investments in real estate |  | $ | 699,329 |  |  | $ | 704,762 |
The Company sold an interest in the following property during the six months ended June 30, 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 June 30, 2024. Additionally, as of June 30, 2024, the Company has a receivable of $396,000 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.
Schedule of Asset Acquisitions | During the six months ended June 30, 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 June 30, 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.
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 six months ended June 30, 2023. There were no acquisitions during the six months ended June 30, 2024.
|  |  | Six Months Ended June 30, 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 six months ended June 30, 2023 was approximately 6 months at the date of acquisition. (2)The amortization period for the above-market leases acquired during the six months ended June 30, 2023 was approximately 7 months at the date of acquisition. (3)The amortization period for the below-market leases acquired during the six months ended June 30, 2023 was approximately 5 months at the date of acquisition.

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Paragraph 1 -Section 50 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
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