
June 30, 2025	Cost		Accumulated Depreciation		Investment in Developmental Real Estate, Net

	(in thousands)
Land	$	6,476	$	—	$	6,476
Building	4,936		(185)		4,751
Site improvements	359		(42)		317
Tenant improvements	1,184		(40)		1,144
Construction in progress	3,898		—		3,898
Lease intangibles	81		(3)		78
Total	$	16,934	$	(270)	$	16,664


December 31, 2024	Cost		Accumulated Depreciation		Investment in Developmental Real Estate, Net

	(in thousands)
Land	$	4,557	$	—	$	4,557
Building	4,936		(154)		4,782
Site improvements	359		(30)		329
Tenant improvements	1,182		—		1,182
Construction in progress	3,141		—		3,141
Lease intangibles	41		—		41
Total	$	14,216	$	(184)	$	14,032

For the six months ended June 30, 2025 and 2024, depreciation and amortization expense related to developmental real estate was $0.1 million and $0.1 million, respectively, which is presented in other expenses on the Company’s Condensed Consolidated Statements of Operations. Tenant improvements and other intangibles associated with the tenant began amortizing upon commencement of the lease that occurred in February 2025. Amortization related to tenant improvements and intangibles was $43,000 for the six months ended June 30, 2025 compared to no such amortization for the six months ended June 30, 2024.

Additionally, the Company leases space to a tenant under an operating lease. The lease provides for the payment of fixed base rent payable monthly in advance and periodic step-ups in rent over the term of the lease and a pass through to tenants their share of increases in real estate taxes and operating expenses over a base year. The lease also provides for free rent and a tenant improvement allowance of $2.7 million. The lease commenced February 2025 with a cash rent abatement period of 425 days.


Years Ending December 31,	Amount
	(in thousands)
2025 (remaining six months)	$	—
2026	936
2027	1,267
2028	1,292
2029	1,318
Thereafter	8,852
Total	$	13,665

The Company acquired one property in investment in developmental real estate that was subject to an in place lease. In the purchase price allocation, the Company recorded an acquired below market lease intangible of $0.7 million. The estimated annual amortization of the below market lease intangible is $0.1 million per year.