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Rental Property
 6 Months Ended
Jun. 30, 2021
Real Estate [Abstract]  
Rental Property Rental Property
The following table summarizes the components of rental property as of June 30, 2021 and December 31, 2020.

Rental Property (in thousands)June 30, 2021December 31, 2020
Land$510,413 $492,783 
Buildings, net of accumulated depreciation of $366,571 and $327,043, respectively
3,306,299 3,195,439 
Tenant improvements, net of accumulated depreciation of $25,078 and $24,891, respectively
41,000 43,684 
Building and land improvements, net of accumulated depreciation of $161,318 and $143,414, respectively
278,759 275,433 
Construction in progress4,765 18,052 
Deferred leasing intangibles, net of accumulated amortization of $260,893 and $258,005, respectively
482,672 499,802 
Total rental property, net$4,623,908 $4,525,193 

Acquisitions

The following table summarizes the acquisitions of the Company during the three and six months ended June 30, 2021. The Company accounted for all of its acquisitions as asset acquisitions.

Market (1)
Date AcquiredSquare FeetNumber of BuildingsPurchase Price
(in thousands)
Omaha/Council Bluffs, NE-IAJanuary 21, 2021370,000 1 $24,922 
Minneapolis/St Paul, MNFebruary 24, 202180,655 1 10,174 
Long Island, NYFebruary 25, 202164,224 1 8,516 
Sacramento, CAFebruary 25, 2021267,284 1 25,917 
Little Rock/N Little RockMarch 1, 2021300,160 1 24,317 
Cleveland, OHMarch 18, 2021170,000 1 6,382 
Three months ended March 31, 20211,252,323 6 100,228 
Indianapolis, INMay 17, 2021154,440 1 13,655 
Baltimore, MDMay 17, 202146,851 1 6,228 
Detroit, MIJune 1, 2021248,040 1 23,786 
Green Bay, WIJune 7, 2021152,000 1 7,249 
Phoenix, AZJune 14, 202141,504 1 8,670 
Cleveland, OHJune 17, 2021179,577 1 19,602 
Reno/Sparks, NVJune 30, 2021183,435 1 13,892 
Washington, DCJune 30, 2021193,420 1 17,521 
Stockton/Modesto, CAJune 30, 2021150,000 1 16,118 
Three months ended June 30, 20211,349,267 9 126,721 
Six months ended June 30, 20212,601,590 15 $226,949 
(1) As defined by CoStar Realty Information Inc (“CoStar”). If the building is located outside of a CoStar defined market, the city and state is reflected.

The following table summarizes the allocation of the consideration paid at the date of acquisition during the six months ended June 30, 2021 for the acquired assets and liabilities in connection with the acquisitions identified in the table above.

Acquired Assets and LiabilitiesPurchase Price (in thousands)Weighted Average Amortization Period (years) of Intangibles at Acquisition
Land$21,844 N/A
Buildings165,549 N/A
Tenant improvements1,575 N/A
Building and land improvements9,435 N/A
Deferred leasing intangibles - In-place leases20,206 8.5
Deferred leasing intangibles - Tenant relationships9,761 11.4
Deferred leasing intangibles - Above market leases2,279 13.8
Deferred leasing intangibles - Below market leases(3,861)6.4
Below market assumed debt adjustment161 18.8
Total purchase price$226,949  
Less: Mortgage notes assumed(5,103)
Net assets acquired$221,846 
On February 25, 2021, the Company assumed a mortgage note of approximately $5.1 million in connection with the acquisition of the property located in Long Island, NY. For a discussion of the method used to determine the fair value of the mortgage note, see Note 4.

The following table summarizes the results of operations for the three and six months ended June 30, 2021 for the buildings acquired during the six months ended June 30, 2021 included in the Company’s Consolidated Statements of Operations from the date of acquisition.

Results of Operations (in thousands)Three months ended June 30, 2021Six months ended June 30, 2021
Total revenue$2,219 $3,506 
Net income$284 $307 

Dispositions

During the six months ended June 30, 2021, the Company sold six buildings to third parties comprised of approximately 0.9 million rentable square feet with a net book value of approximately $27.2 million. These buildings contributed approximately $0.2 million, $0.5 million, $1.1 million and $2.1 million to revenue for the three and six months ended June 30, 2021 and 2020, respectively. These buildings contributed approximately $0.1 million, $0.1 million, $0.5 million and $0.8 million to net income (exclusive of gain on the sales of rental property, net) for the three and six months ended June 30, 2021 and 2020, respectively. Net proceeds from the sales of rental property were approximately $39.6 million and the Company recognized the full gain on the sales of rental property, net, of approximately $12.4 million for the six months ended June 30, 2021.

Assets Held for Sale

As of June 30, 2021, the related land, building and improvements, net, and deferred leasing intangibles, net, of approximately $0.8 million, $1.9 million, and $0, respectively, for one building located in Charlotte, NC were classified as assets held for sale, net on the accompanying Consolidated Balance Sheets. This building contributed approximately $0.1 million, $0.3 million, $0.2 million and $0.3 million to revenue for the three and six months ended June 30, 2021 and 2020, respectively. This building contributed approximately $0.1 million, $0.2 million, $0.1 million and $0.1 million to net income for the three and six months ended June 30, 2021 and 2020, respectively.

Gain on Involuntary Conversion

During the three and six months ended June 30, 2021, the Company did not recognize any gain on involuntary conversion. During the three and six months ended June 30, 2020, the Company recognized a gain on involuntary conversion of approximately $0.7 million related to an eminent domain taking of a portion of a parcel of land.

Deferred Leasing Intangibles

The following table summarizes the deferred leasing intangibles on the accompanying Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020.

June 30, 2021December 31, 2020
Deferred Leasing Intangibles (in thousands)GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Above market leases$86,466 $(31,194)$55,272 $92,125 $(33,629)$58,496 
Other intangible lease assets657,099 (229,699)427,400 665,682 (224,376)441,306 
Total deferred leasing intangible assets$743,565 $(260,893)$482,672 $757,807 $(258,005)$499,802 
Below market leases$50,439 $(17,510)$32,929 $48,521 $(15,759)$32,762 
Total deferred leasing intangible liabilities$50,439 $(17,510)$32,929 $48,521 $(15,759)$32,762 
The following table summarizes the amortization expense and the net decrease to rental income for the amortization of deferred leasing intangibles during the three and six months ended June 30, 2021 and 2020.

 Three months ended June 30,Six months ended June 30,
Deferred Leasing Intangibles Amortization (in thousands)2021202020212020
Net decrease to rental income related to above and below market lease amortization$330 $1,174 $1,810 $2,164 
Amortization expense related to other intangible lease assets$21,422 $21,076 $43,869 $41,378 

The following table summarizes the amortization of deferred leasing intangibles over the next five calendar years beginning with 2021 as of June 30, 2021.

YearAmortization Expense Related to Other Intangible Lease Assets (in thousands)Net Decrease to Rental Income Related to Above and Below Market Lease Amortization (in thousands)
Remainder of 2021$38,884 $283 
2022$68,917 $327 
2023$60,313 $820 
2024$51,203 $1,286 
2025$43,445 $1,164