Acquisitions

12 Months Ended

Dec. 31, 2020

In 2020, we acquired one retail operating property for $65.3 million. The fair value of the real estate and other assets acquired were primarily determined using the income approach. The income approach required us to make assumptions about market leasing rates, tenant-related costs, discount rates, and disposal rates. The estimates of fair value primarily relied upon Level 2 and Level 3 inputs, as previously defined.

The following table summarizes the estimation of the fair value of assets acquired and liabilities assumed for the property acquired in 2020:


($ in thousands)

Investment properties, net	$	63,570
Lease-related intangible assets, net	2,254
Total acquired assets	65,824

Accounts payable and accrued expenses	280
Deferred revenue and other liabilities	246
Total assumed liabilities	526

Fair value of acquired net assets	$	65,298

The leases at the acquired property had a weighted average remaining life at acquisition of approximately 3.2 years.

The range of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets acquired are as follows:


	Low			High
Net rental rate per square foot - Anchors	$	22.50		$	27.50
Net rental rate per square foot - Small Shops	$	15.00		$	65.00
Discount rate	9.0		%	9.0		%

In 2019, we acquired one retail operating property for $29.0 million and one parking garage for $29.5 million. The fair value of the real estate and other assets acquired were primarily determined using the income approach. The income approach required us to make assumptions about market leasing rates, tenant-related costs, discount rates, and disposal values. The estimates of fair value primarily relied upon Level 2 and Level 3 inputs, as previously defined.

The following table summarizes the estimation of the fair value of assets acquired and liabilities assumed for the properties acquired in 2019:


($ in thousands)

Investment properties, net	$	56,393
Lease-related intangible assets, net	2,458
Other assets	320
Total acquired assets	59,171

Accounts payable and accrued expenses	595
Deferred revenue and other liabilities	371
Total assumed liabilities	966

Fair value of acquired net assets	$	58,205

The leases at the acquired properties had a weighted average remaining life at acquisition of approximately 5.6 years.

The range of the most significant Level 3 assumptions utilized in determining the value of the real estate and related assets acquired are as follows:


	Low			High
Net rental rate per square foot - Anchors	$	11.00		$	12.96
Net rental rate per square foot - Small Shops	$	6.33		$	32.00
Discount rate	9.0		%	9.0		%

The results of operations for each of the properties acquired during the years ended December 31, 2020 and 2019 have been included in operations since their respective dates of acquisition. We did not acquire any properties in 2018.