
	June 30, 2026		December 31, 2025
Land	$	117,513	$	113,357
Building and improvements	496,516		500,292
Tenant improvements	20,399		20,388
Construction in progress	63,501		56,163
Total cost	697,929		690,200
Less accumulated depreciation	(94,712)		(87,769)
Total real estate	$	603,217	$	602,431

We incurred depreciation expense of $3,501 and $2,880 for the three months ended June 30, 2026 and 2025, respectively, $6,943 and $5,601 for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, construction in progress includes $46,480 of land lot development costs related to Windmill Farms and $17,021 of costs related to the construction of Mountain Creek, a 234 unit multifamily property in Dallas, Texas, which we expect to complete in 2027. We have entered into a development agreement with Pillar (See Note 12 – Related Party Transactions) to develop the property, which is being funded in part by a construction loan (See Note 11 – Mortgages and Other Notes Payable).

Gain on sale or write down of assets, net for the three and six months ended June 30, 2026 and 2025 consists of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Land (1)	$	814	$	947	$	1,412	$	4,092
Multifamily Properties (2)	—		—		(213)		—

Other	—		—		—		746
Total	$	814	$	947	$	1,199	$	4,838

(1)Includes the gain on dispositions of land from our investment in Windmill Farms and other land holdings.

(2)This represents additional costs associated with Villas at Bon Secour, a 200 unit multifamily property in Gulf Shores, Alabama, which we sold on October 10, 2025.