The activity in real estate facilities for the six months ended June 30, 2019 was as follows (in thousands):



			Buildings and		Accumulated
	Land		Improvements		Depreciation		Total
Balances at December 31, 2018 ⁽¹⁾	$	762,731	$	2,157,407	$	(1,097,748)	$	1,822,390
Acquisition of real estate facility		9,668		3,978		—		13,646
Capital expenditures		—		17,722		—		17,722
Disposals ⁽²⁾		—		(7,184)		7,184		—
Depreciation and amortization expense		—		—		(48,598)		(48,598)
Transfer to properties held for sale		—		(642)		4,055		3,413
Balances at June 30, 2019	$	772,399	$	2,171,281	$	(1,135,107)	$	1,808,573

⁽¹⁾Land, building and improvements, and accumulated depreciation, respectively, totaling $53.9 million, $217.5 million and $143.3 million were reclassified as of December 31, 2018 to “properties held for sale, net” representing 1.3 million rentable square feet of flex and office business parks located in Rockville and Silver Spring, Maryland.

⁽²⁾Disposals primarily represent the book value of tenant improvements that have been removed upon the customer vacating their space.

As of June 30, 2019, we have commitments, pursuant to executed leases throughout our portfolio, to spend $8.9 million on transaction costs, which include tenant improvements and lease commissions.

The purchase price of acquired properties is allocated to land, buildings and improvements (including tenant improvements, unamortized lease commissions, acquired in-place lease values and customer relationships, if any), intangible assets and intangible liabilities (see Note 2), based upon the relative fair value of each component, which are evaluated independently.

We must make significant assumptions in determining the fair value of assets acquired and liabilities assumed, which can affect the recognition and timing of revenue and depreciation and amortization expense. The fair value of land is estimated based upon, among other considerations, comparable sales of land within the same region. The fair value of buildings and improvements, tenant improvements and unamortized lease commissions are based on current market replacement costs and other available market information. The amount recorded to acquired in-place leases is determined based on management’s assessment of current market conditions and the estimated lease-up periods for the respective spaces. Transaction costs related to asset acquisitions are capitalized.

On April 18, 2019, we acquired a multi-tenant industrial park comprised of approximately 74,000 rentable square feet in Signal Hill, California, for a total purchase price of $13.8 million.

On June 8, 2018, we acquired two multi-tenant industrial parks aggregating 1.1 million rentable square feet in Springfield, Virginia, for a purchase price of $143.8 million.

The following table summarizes the assets acquired and liabilities assumed for the six months ended June 30, (in thousands):



	2019		2018
Land	$	9,668	$	25,806
Buildings and improvements		3,978		112,230
Other assets (above-market in-place rents)		—		1,487
Accrued and other liabilities (below-market in-place rents)		(212)		(1,790)
Other assets (in-place lease value)		390		6,033
Total purchase price		13,824		143,766
Net operating assets acquired and liabilities assumed		(88)		(1,367)
Total cash paid	$	13,736	$	142,399

We have a 95.0% interest in a 395-unit multifamily apartment complex on a five-acre site within the Company’s 628,000 square foot office park located in Tysons, Virginia. An unrelated real estate development company (the “JV Partner”) holds the remaining 5.0%. On January 1, 2018, we began to consolidate our joint venture due to changes to the joint venture agreement that gave the Company control of the joint venture.

The following table summarizes the assets acquired and liabilities assumed related to the consolidation of the joint venture, which was accounted for as an asset acquisition, as of January 1, 2018 (in thousands):



	2018
Land	$	21,814
Buildings and improvements		84,903
Other assets (in-place lease value)		1,199
Total consolidated joint venture		107,916
Noncontrolling interest in consolidated joint venture		(4,032)
Net book value of joint venture at consolidation	$	103,884

We plan to sell 1.3 million rentable square feet of flex and office business parks located in Rockville and Silver Spring, Maryland, and expect to complete the sale within the next year. We determined that the sale did not meet the criteria for discontinued operations presentation, as the plan to sell did not represent a strategic shift that will have a major effect on our operations and financial results. As a result of this classification, the assets of the properties are separately presented as held for sale in the consolidated balance sheet as of December 31, 2018.