The following table summarizes the net carrying value of investments in SFR properties:


	March 31, 2023		December 31, 2022
Land	$	175,607	$	175,607
Building	702,427		702,427
Capital improvements	123,606		118,999

Total gross investment in SFR properties	1,001,640		997,033
Accumulated depreciation	(32,653)		(25,720)
Investment in SFR properties, net	$	968,987	$	971,313

Depreciation expense for the three months ended March 31, 2023 and 2022 totaled $6.9 million and $4.1 million, respectively, and is included in Other Income (Loss), Net in the Consolidated Statements of Operations.

As of March 31, 2023 and December 31, 2022, the carrying amount of the SFR properties includes capitalized acquisition costs of $7.1 million and $7.7 million, respectively.

SFR properties held-for-sale are managed for prompt sale and disposition. For the three months ending March 31, 2023, Rithm Capital transferred 30 SFR properties to held-for-sale.

The following table summarizes the activity related to the net carrying value of investments in SFR properties:


	SFR Properties Held-for-Investment		SFR Properties Held-for-Sale		Total

Balance at December 31, 2022	$	971,313	$	—	$	971,313
Acquisitions and capital improvements	4,607		—		4,607
Dispositions	—		—		—
Reclassifications to SFR properties	(9,747)		9,747		—
Write-offs	—		—		—
Accumulated depreciation	(6,913)		(20)		(6,933)
Balance at March 31, 2023	$	959,260	$	9,727	$	968,987

Rithm Capital generally rents its SFR properties under non-cancelable lease agreements with a term of one to two years. The following table summarizes our future minimum rental revenues under existing leases on SFR properties:


	SFR Properties Held-for-Investment	SFR Properties Held-for-Sale	Total
Balance at December 31, 2022	3,731	—	3,731
Acquisition of SFR units	—	—	—
Transfer to held-for-sale	(30)	30	—
Disposition of SFR units	—	—	—

Balance at March 31, 2023	3,701	30	3,731