
	December 31,
	2024		2023
Land	$	104,076	$	104,156
Building and improvements	375,430		372,399
Tenant improvements	16,629		16,286
Construction in progress	140,046		76,110
Total cost	636,181		568,951
Less accumulated deprecation	(78,793)		(67,365)


Total real estate	$	557,388	$	501,586

Construction in progress consists of the development of Windmill Farms and the costs associated with our ground-up development projects.

Windmill Farms is a collection of freshwater districts ("Districts") in Kaufman County Texas that is being developed into single family lots, multifamily properties and retail properties. In connection with the project, we develop the infrastructure in Windmill Farms in order for the land to appreciate and to sell to home builders land units (“lots”) designated for residential construction of single family homes according to the land use. The infrastructure costs (See Note 11 – Other Assets) are reimbursed by the Districts through the issuance of municipal bonds in accordance with various indemnity agreements.

We currently have agreements to develop two parcels of land in Windmill Farms. The agreements provide for the development of 125 acres of raw land into approximately 470 land lots to be used for single family homes for a total of $24,279. During 2024, we spent $3,616 on reimbursable infrastructure investments.

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 12 – 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 December 31, 2024, we have incurred a total of $36,583 in development costs, including $1,172 in development fees.

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 12 – 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 December 31, 2024, we have incurred a total of $24,828 in development costs, including $1,029 in development fees.

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 12 – 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 December 31, 2024, we have incurred a total of $26,273 in development costs, including $684 in development fees.

On October 21, 2024, we entered into a development agreement with Pillar to build a 234 unit multifamily property in Dallas, Texas ("Mountain Creek") that is expected to be completed in 2026 for a total cost of approximately $49,791. The cost of construction will be funded in part by a $27,500 construction loan (See Note 12 – Mortgages and Other Notes Payable). The development agreement provides for a $1,574 fee that will be paid to Pillar over the construction period. As of December 31, 2024, we have incurred a total of $5,037 in development costs.

We incurred depreciation expense of $11,662, $12,887 and $8,962 for the years ending December 31, 2024, 2023 and 2022, respectively.


	For the Year Ended December 31,
	2024		2023		2022
Land(1)	$	1,095	$	188	$	4,752
Residential properties(2)	—		—		83,758
Commercial properties(3)	—		—		686
Other(4)	(1,684)		(2,079)		—
	$	(589)	$	(1,891)	$	89,196

(2)On January 14, 2022, we sold Toulon, a 240 unit multifamily property in Gautier, Mississippi for $26,750, resulting in a gain on sale of $9,364. We used the proceeds to pay off the $14,740 mortgage note payable on the property and for general corporate purposes.

On September 16, 2022, in connection with the sale of the VAA Sale Portfolio by VAA (See Note 10 - Investment in Unconsolidated Joint Ventures), we sold Sugar Mill Phase III, a 72 unit multifamily property in Baton Rouge, Louisiana for $11,800, resulting in a gain on sale of $1,871. We used the proceeds from the sale to pay off the $9,551 mortgage note payable on the property and for general corporate purposes.

On November 1, 2022, we acquired control of the VAA Holdback Portfolio from VAA (See Note 10 - Investment in Unconsolidated Joint Ventures), which resulted in a $73,187 gain on remeasurement of assets.

(3)On May 17, 2022, we sold Fruitland Park, a 6,722 square foot commercial building in Fruitland Park, Florida for $750, resulting in a gain on sale of $667. We used the proceeds from the sale for general corporate purposes.