4. Property, Plant and Equipment, Net

Property, plant and equipment, net consisted of the following (in thousands):

 

Upon adoption of ASU 2016-02 (Topic 842), the existing construction-in-progress balance within property and equipment, and the corresponding build-to-suit facility lease financing obligation balance were derecognized, resulting in a reduction to construction-in-progress of $45.1 million (see Note 2).

 

Manufacturing Facility

On July 31, 2018, the Company completed its purchase of a 135,000 square foot manufacturing facility located in Smithfield, Rhode Island for a purchase price of $8.0 million. In August 2018, the Company began renovations to customize this facility to manufacture clinical supply of its product candidates. Of the total purchase price, $1.3 million was allocated to the value of land acquired based on the value of comparable assets, and $6.7 million was allocated to construction in progress, as the building was not ready for its intended use. During the nine months ended September 30, 2019, the Company capitalized approximately $15.3 million in construction-in-progress for design, demolition and construction costs related to the renovation project. Construction-in-progress capitalized to date totaled $17.3 million. During the nine months ended September 30, 2019, the Company capitalized $11.5 million in construction-in-progress for manufacturing equipment to be used in the facility. In addition, the Company capitalized interest of $0.3 million and personnel-related costs of $1.3 million during the nine months ended September 30, 2019 and to date during the construction period.