Real Estate Investments

6 Months Ended

Jun. 30, 2013

Real Estate Investments

4. Real Estate Investments

Armada Hoffler’s real estate investments comprised the following as of June 30, 2013 and December 31, 2012 (in thousands):

	June 30, 2013			December 31, 2012
	(Unaudited)
Land	$	32,217		$	24,511
Land improvements		12,544			11,543
Buildings and improvements		363,015			316,596
Development costs		2,089			2,090
Construction in progress		10,422			—
		420,287			354,740
Accumulated depreciation		(98,612	)		(92,454	)
Net real estate investments	$	321,675		$	262,286

As of June 30, 2013 and December 31, 2012, land includes $1.8 million related to the Main Street development project.

In January 2013 Armada Hoffler began construction on the Main Street Office Tower and Main Street Apartments, which Armada Hoffler expects to place into service in July 2014. Development and construction costs capitalized in connection with the Main Street Office Tower and Main Street Apartments are presented as construction in progress as of June 30, 2013.

As discussed in Notes 1 and 9, the Operating Partnership acquired a controlling interest in Bermuda Crossroads and Smith’s Landing on May 13, 2013.

On June 4, 2013, Armada Hoffler purchased the Jackson Street Apartments land for $2.6 million.