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Our consolidated balance sheet at December 31, 2004 included $176.8 million related to wholly-owned properties under development. Of this amount, $38.9 million relates to our two projects currently under development, Camden Farmers Market II and Camden Lago Vista. Additionally, at December 31, 2004, we had $137.9 million invested in land held for future development. Included in this amount is $67.6 million related to projects we expect to begin constructing in early 2005. We also had $39.3 million invested in land tracts adjacent to development projects, which are being utilized in conjunction with those projects. Upon completion of these development projects, we expect to utilize this land to further develop apartment homes in these areas. We may also sell certain parcels of these undeveloped land tracts to third parties for commercial and retail development. 

At December 31, 2004 and 2003, our investments in various geographic areas, excluding properties held for sale and investments in joint ventures, were as follows: 

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## Third-Party Construction Services 

Our construction division performs services for our internally developed communities, as well as provides construction management and general contracting services for third-party owners of multifamily, commercial and retail properties. At December 31, 2004, we were under contract on projects ranging from $0.4 million to $19.3 million. We earn fees on these projects ranging from 3% to 12% of the total contracted construction cost, which we recognize as earned. Fees earned from third-party construction projects totaled $3.8 million, $2.7 million and $2.7 million for the years ended December 31, 2004, 2003 and 2002, respectively, and are included in fee and asset management revenues in our consolidated statements of operations. 

During 2004, we recorded cost overruns of $1.0 million, compared with $2.0 million for 2003, on fixed fee projects, which represented the estimate of our remaining costs to complete the projects. These cost overruns are fi rst applied against revenues earned on the project during the period and any excess are included in fee and asset management expenses in our consolidated statements of operations. 

