Real Estate Activity

6 Months Ended

Jun. 30, 2024

Below is a summary of our real estate as of June 30, 2024 and December 31, 2023:


	June 30, 2024		December 31, 2023
Land	$	104,156	$	104,156
Building and improvements	373,803		372,399
Tenant improvements	16,336		16,286
Construction in progress	92,167		76,110
Total cost	586,462		568,951
Less accumulated depreciation	(73,135)		(67,365)
Total real estate	$	513,327	$	501,586

On March 15, 2023, we entered into a development agreement with Pillar to build a 240 unit multifamily property in Lake Wales, Florida ("Alera") that is expected to be completed in 2025 for a total cost of approximately $55,330. The cost of construction will be funded in part by a $33,000 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,637 fee that will be paid to Pillar over the construction period. As of June 30, 2024, we have incurred a total of $25,144 in development costs.

On November 6, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in McKinney, Texas ("Merano") that is expected to be completed in 2025 for a total cost of approximately $51,910. The cost of construction will be funded in part by a $25,407 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,551 fee that will be paid to Pillar over the construction period. As of June 30, 2024, we have incurred a total of $11,841 in development costs.

On December 15, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in Temple, Texas ("Bandera Ridge") that is expected to be completed in 2025 for a total cost of approximately $49,603. The cost of construction will be funded in part by a $23,500 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,607 fee that will be paid to Pillar over the construction period. As of June 30, 2024, we have incurred a total of $6,220 in development costs.

Construction in progress includes the cost of development of Windmill Farms and the costs associated with our multifamily development projects.

We incurred depreciation expense of $2,986 and $3,030 for the three months ended June 30, 2024 and 2023, respectively, and $6,004 and $5,965 for the six months ended June 30, 2024 and 2023, respectively.