3. Real Estate Assets

Real estate assets consist of:


	Estimated
	Useful Lives	May 31, 2019		Nov. 30, 2018
Land		$	21,961	$	21,961
Land improvements	10 to 30 years		38,330		38,280
Buildings and improvements	10 to 40 years		204,763		204,258
Tenant improvements	Shorter of useful life or terms of related lease		29,087		29,163
Machinery and equipment	3 to 20 years		10,958		10,958
Construction in progress			10,020		562
Development costs			13,511		13,443
			328,630		318,625
Accumulated depreciation			(109,898)		(105,004)
		$	218,732	$	213,621

Total depreciation expense and capitalized interest related to real estate assets were as follows:


	For the Three Months Ended				For the Six Months Ended
	May 31, 2019		May 31, 2018		May 31, 2019		May 31, 2018
Depreciation expense	$	2,599	$	2,457	$	5,190	$	4,859

Capitalized interest	$	87	$	94	$	129	$	132

Real estate assets held for sale consist of:


	May 31, 2019		Nov. 30, 2018
Land	$	30	$	1,645
Development costs		1,007		1,007
	$	1,037	$	2,652

On May 3, 2019, Griffin closed on the sale of approximately 280 acres (the “Simsbury Land Sale”) of undeveloped land in Simsbury, Connecticut. Griffin received cash proceeds of $7,700, before transaction costs, and recorded a pretax gain of $7,349 on the Simsbury Land Sale. The buyer plans to use the land to generate solar electricity. The net cash proceeds, after transaction costs, of $7,626 from the Simsbury Land Sale were deposited into escrow for the acquisition of a replacement property in a like-kind exchange (“1031 Like-Kind Exchange”) under Section 1031 of the Internal Revenue Code of 1986, as amended, for income tax purposes.

On December 26, 2018, Griffin closed on the sale of development rights for approximately 116 acres (the “East Windsor Land”) of undeveloped land in East Windsor, Connecticut. Griffin received cash proceeds of $866, before transaction costs, and recorded a pretax gain of $52 on the sale of the development rights. On April 1, 2019, Griffin closed on the sale of the East Windsor Land for $700, before transaction costs, and recorded a pretax gain of $42 on the sale of the land. The gain on the development rights and the gain on the subsequent sale of the land were not significant as the cost basis of the East Windsor Land was relatively high.

On April 26, 2018, Griffin closed on the sale of approximately 49 acres (the “Southwick Land Sale”) of undeveloped land in Southwick, Massachusetts. Griffin received cash proceeds of $850, before transaction costs, and recorded a pretax gain of $794 on the Southwick Land Sale. The net cash proceeds, after transaction costs, of $847 from the Southwick Land Sale were deposited into escrow for the acquisition of a replacement property in a 1031 Like-Kind Exchange. On July 18, 2018, Griffin closed on the purchase of an approximately 22 acre parcel of undeveloped land in Concord, North Carolina for a purchase price of $2,600, before transaction costs, as a replacement property under a 1031 Like-Kind Exchange.

The decrease in real estate assets held for sale in the 2019 six month period reflected $1,640 related to the land sales that closed, partially offset by $25 that was reclassified from real estate assets to real estate assets held for sale related to those sales.