Real Estate Assets

12 Months Ended

Dec. 31, 2021

Real Estate Assets

Real Estate Assets

4. Real Estate Assets

Real estate assets consist of:

	Estimated
	Useful Lives	December 31, 2021		December 31, 2020
Land		$	55,135	$	33,084
Land improvements	10 to 30 years		67,360		45,827
Buildings and improvements	10 to 40 years		311,360		233,250
Tenant improvements	Shorter of useful life or terms of related lease		35,061		34,899
Machinery and equipment	3 to 20 years		—		10,958
Construction in progress			21,137		4,036
Development costs			3,673		5,106
			493,726		367,160
Accumulated depreciation			(99,560)		(124,839)
		$	394,166	$	242,321

Total depreciation expense related to real estate assets was as follows:

					Month Ended
	Year Ended December 31,				December 31,
	2021		2020		2020
Depreciation expense	$	12,944	$	11,930	$	977

On November 12, 2021, INDUS closed on the purchase of 7770 Palmetto Commerce Parkway (“7770 Palmetto”), an approximately 196,500 square foot industrial/logistics building in Charleston, South Carolina for $28,488, including acquisition costs.

On October 12, 2021, INDUS closed on the purchase of 2345 Township Road (“2345 Township”), an approximately 128,000 square foot industrial/logistics building in Charlotte, North Carolina for $14,935, including acquisition costs.

On August 5, 2021, INDUS closed on the purchase of 2850 Interstate Drive (“2850 Interstate”), an approximately 139,500 square foot industrial/logistics building in Lakeland, Florida for $17,859, including acquisition costs.

On June 28, 2021, INDUS, through a consolidated VIE, purchased 7800 Tuckaseegee Road (“7800 Tuckaseegee”), an approximately 395,500 square foot industrial/logistics building in Charlotte, North Carolina for $42,502, including acquisition costs. On May 12, 2021, INDUS, through a consolidated VIE, purchased 6355 Farm Bureau Road (“6355 Farm Bureau”), an approximately 127,500 square foot industrial/logistics building in the Lehigh Valley of Pennsylvania for $11,928, including acquisition costs. For both of these acquisitions, INDUS provided all of the funding to the VIEs for the purchases. The acquisitions of 7800 Tuckaseegee and 6355 Farm Bureau were made utilizing Reverse 1031 Like-Kind Exchanges that were entered into at the time the properties were acquired (see below).

On December 1, 2021, INDUS closed on the sale of 1985 Blue Hills Avenue (“1985 BHA”), an approximately 165,000 square foot industrial/logistics building in Windsor, Connecticut and two adjacent parcels of undeveloped land aggregating approximately 39 acres to the in-place full-building tenant (the “Blue Hills Sale”) for a purchase price of $18,000, before transaction costs, and recorded a gain of $13,271. The proceeds from the Blue Hills Sale were used to complete the Reverse 1031 Like-Kind Exchange on 7800 Tuckaseegee (see above). At the time of closing, INDUS also repaid the mortgage collateralized by 1985 BHA with proceeds from the Blue Hills Sale (see Note 6).

On July 23, 2021, INDUS closed on the sale of approximately 34 acres of undeveloped land in Bloomfield, Connecticut for a purchase price of $600, before transaction costs, and recorded a gain of $504. The proceeds of this sale were used to complete the Reverse Like-Kind Exchange on 6355 Farm Bureau (see above).

On December 10, 2021, INDUS closed on the purchase of two parcels of undeveloped land in Allentown, Pennsylvania for a combined purchase price of $4,229, after transaction and entitlement costs (the “American Parkway Land”). The American Parkway Land totals approximately 23 acres in the Lehigh Valley and INDUS plans to construct an approximately 206,000 square foot industrial/logistics building on this site.

On April 13, 2021, INDUS closed on the purchase of an approximately 14 acre parcel of undeveloped land in Orlando, Florida (the “Jetport Land”) for a purchase price of $5,658, after transaction and entitlement costs. The Jetport Land is a replacement property as part of a 1031 Like-Kind Exchange under the Code. INDUS acquired the Jetport Land utilizing $1,993 of proceeds from the sales of one of its office/flex buildings and two smaller land parcels that were completed in November 2020 (see below). The balance of the purchase price was paid from the Company’s cash on hand and INDUS plans to construct two industrial/logistics buildings totaling approximately 195,000 square feet on the Jetport Land (see above).

In 2021 and 2020, INDUS recorded impairment losses of $3,000 and $2,085, respectively, to reduce the carrying value of 5 and 7 Waterside Crossing, the Company’s two multi-story office buildings in Griffin Center in Windsor, Connecticut aggregating approximately 161,000 square feet. On November 16, 2021, the Company completed the sale (the “5&7 WSC Sale”), for a price of $5,200, before transaction costs of: (a) 5 and 7 Waterside Crossing (“5&7 WSC”); (b) 21 Griffin Road North, an approximately 48,000 square foot office/flex building; and (c) 25 Griffin Road North, an approximately 8 acre parcel of undeveloped land. INDUS recorded a loss of $158 on the 5&7 WSC Sale. At the time of closing, INDUS also repaid the mortgage collateralized by 5&7 WSC with proceeds from the 5&7 WSC Sale (see Note 6).

On December 29, 2021, INDUS closed on the sale of all of the assets, including approximately 670 acres of land in Granby and East Granby, Connecticut, that were previously leased to a third-party nursery operator for a purchase price of $10,300, before transaction costs, and recorded a gain of $9,331. The net proceeds of $10,091 were deposited into escrow for the potential acquisition of a replacement property as part of a 1031 Like-Kind Exchange. On January 19, 2022, INDUS closed on the purchase of an approximately 217,000 square foot industrial/logistics building in the Charlotte, North Carolina market as a replacement property under this 1031 Like-Kind Exchange (see Note 12).

On November 5, 2021, INDUS closed on the sale of all of the assets, including approximately 1,066 acres of land in Quincy, Florida, that were previously leased to a third-party operator for a purchase price of $1,000, before transaction costs, and recorded a gain of $430.

On March 9, 2020, INDUS, through a consolidated VIE, purchased 170 Sunport Lane (“170 Sunport”), an approximately 68,000 square foot industrial/logistics building in Orlando, Florida, for $5,749, including acquisition costs. INDUS provided all of the funding to the VIE to purchase 170 Sunport.

On February 18, 2020, INDUS, through a consolidated VIE, purchased 3320 Maggie Boulevard (“3320 Maggie”), an approximately 108,000 square foot industrial/logistics building in Orlando, Florida, for $7,921, including acquisition costs. INDUS provided all of the funding to the VIE to purchase 3320 Maggie.

The acquisitions of 170 Sunport and 3320 Maggie were each made utilizing a Reverse 1031 Like-Kind Exchange. As the Company did not complete the sale transactions contemplated under the Reverse 1031 Like-Kind Exchanges within the required time, the legal titles of 170 Sunport and 3320 Maggie were transferred from the qualified intermediary to INDUS.

On November 17, 2020, INDUS closed on the sale (the “55 GRS Sale”) of 55 Griffin Road South, its approximately 40,000 square foot office/flex building in Griffin Center South in Bloomfield, Connecticut. INDUS received cash proceeds of $1,400, before transaction costs and reimbursements, and recorded a pretax gain of $982 on the 55 GRS Sale. The net cash proceeds of $1,409 from the 55 GRS Sale were deposited into escrow for the potential acquisition of a replacement property as part of a 1031 Like-Kind Exchange under the Code. In November 2020, $587 of proceeds from two smaller land sales were also deposited into escrow for the potential acquisition of a replacement property as part of a 1031 Like-Kind Exchange. The combined proceeds from these sales were used to purchase the Jetport Land (see above) and complete the 1031 Like-Kind Exchanges.

INDUS allocated the purchase price to the real estate assets and intangible assets (see Note 9) on a relative fair value basis. Real estate assets are being depreciated over ten to forty years and intangible assets and intangible liabilities are being amortized over the term of the associated lease. The intangible assets are included in other assets and the intangible liabilities are included in other liabilities on INDUS’ consolidated balance sheet.

The purchase prices for acquisitions were allocated as follows:

2021	7770 Palmetto		2345 Township		2850 Interstate		7800 Tuckaseegee		6355 Farm Bureau			Jetport Land		American Pkwy Land	Total
Land	$	3,166	$	1,197	$	2,369	$	4,606	$	2,163	$	5,658	$	4,229	$	23,388
Land improvements		4,182		671		2,832		3,526		388		—		—		11,599
Buildings and improvements		20,077		12,337		12,280		33,348		10,036		—		—		88,078
Tenant improvements		113		20		48		200		132		—		—		513
Intangible assets		950		710		558		1,462		918		—		—		4,598
Intangible liabilities		—		—		(228)		(640)		(1,709)		—		—		(2,577)
	$	28,488	$	14,935	$	17,859	$	42,502	$	11,928	$	5,658	$	4,229	$	125,599
2020	170 Sunport		3320 Maggie												Total
Land	$	1,407	$	1,555											$	2,962
Land improvements		523		390												913
Buildings and improvements		3,748		5,887												9,635
Tenant improvements		—		109												109
Intangible assets		71		770												841
Intangible liabilities		—		(790)												(790)
	$	5,749	$	7,921											$	13,670

On December 31, 2021, there were no real estate assets held for sale. On December 31, 2020, real estate assets held for sale, net consisted of:

Land	$	505
Land improvements		269
Development costs		6,028
	$	6,802