
	March 31, 2026		December 31, 2025
Land	$	117,513	$	113,357
Building and improvements	495,682		500,292
Tenant improvements	20,388		20,388
Construction in progress	59,288		56,163
Total cost	692,871		690,200
Less accumulated depreciation	(91,211)		(87,769)
Total real estate	$	601,660	$	602,431

We incurred depreciation expense of $3,442 and $2,721 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, construction in progress includes $46,689 of land lot development costs related to Windmill Farms and $12,599 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 months ended March 31, 2026 and 2025 consists of the following:


	Three Months Ended March 31,
		2026		2025
Land (1)		$	598	$	3,145
Multifamily Properties (2)		(213)		—

Other		—		746
Total		$	385	$	3,891

(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.