v3.19.3.a.u2
Acquisitions
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Acquisitions

4. Acquisitions

The Company closed on the following acquisitions during the year ended December 31, 2019:

 

 

 

 

 

 

 

 

 

Real Estate

 

 

(in thousands, except number of properties)

 

 

 

Number of

 

 

Acquisition

 

 

Date

 

Property Type

 

Properties

 

 

Price

 

 

January 31, 2019

 

Healthcare

 

 

1

 

 

$

4,747

 

 

March 12, 2019

 

Industrial

 

 

1

 

 

 

10,217

 

 

March 15, 2019

 

Retail

 

 

10

 

 

 

13,185

 

 

March 19, 2019

 

Retail

 

 

14

 

 

 

19,128

 

 

March 26, 2019

 

Industrial

 

 

1

 

 

 

25,801

 

 

April 30, 2019

 

Industrial

 

 

1

 

 

 

76,000

 

(a)

May 21, 2019

 

Retail

 

 

2

 

 

 

6,500

 

 

May 31, 2019

 

Retail

 

 

1

 

 

 

3,192

 

 

June 7, 2019

 

Office

 

 

1

 

 

 

30,589

 

 

June 26, 2019

 

Industrial

 

 

2

 

 

 

11,180

 

 

July 15, 2019

 

Restaurant

 

 

1

 

 

 

3,214

 

 

July 15, 2019

 

Industrial

 

 

1

 

 

 

11,330

 

 

July 31, 2019

 

Healthcare

 

 

5

 

 

 

27,277

 

 

August 27, 2019

 

Industrial

 

 

1

 

 

 

4,404

 

 

August 29, 2019

 

Industrial/Office

 

 

23

 

 

 

735,740

 

 

September 17, 2019

 

Industrial

 

 

1

 

 

 

11,185

 

 

October 31, 2019

 

Retail/Healthcare

 

 

3

 

 

 

12,922

 

 

November 7, 2019

 

Restaurant

 

 

1

 

 

 

3,142

 

 

November 20, 2019

 

Retail

 

 

1

 

 

 

7,385

 

 

November 22, 2019

 

Industrial

 

 

1

 

 

 

6,500

 

 

November 27, 2019

 

Retail

 

 

2

 

 

 

8,243

 

 

 

 

 

 

 

74

 

 

$

1,031,881

 

(b)

 

(a)

In conjunction with this acquisition, the Company assumed a mortgage with a principal balance of $49,782 with an interest rate at 4.92% and a maturity date of February 2028 (see Note 10).

 

(b)

Acquisition price does not include capitalized acquisition costs of $17,631.

 

 

The Company closed on the following acquisitions during the year ended December 31, 2018:

 

 

 

 

 

 

 

 

 

Real Estate

 

 

(in thousands, except number of properties)

 

 

 

Number of

 

 

Acquisition

 

 

Date

 

Property Type

 

Properties

 

 

Price

 

 

March 27, 2018

 

Industrial

 

 

1

 

 

$

22,000

 

 

March 30, 2018

 

Industrial/Retail

 

 

26

 

 

 

78,530

 

 

April 30, 2018

 

Other

 

 

1

 

 

 

16,170

 

(c)

June 6, 2018

 

Industrial

 

 

1

 

 

 

8,500

 

 

June 14, 2018

 

Industrial

 

 

1

 

 

 

39,700

 

 

June 14, 2018

 

Retail

 

 

6

 

 

 

14,479

 

 

June 21, 2018

 

Retail

 

 

1

 

 

 

20,231

 

 

June 21, 2018

 

Industrial

 

 

1

 

 

 

38,340

 

(d)

June 29, 2018

 

Industrial

 

 

1

 

 

 

10,400

 

 

June 29, 2018

 

Retail

 

 

2

 

 

 

6,433

 

(e)

July 12, 2018

 

Industrial

 

 

1

 

 

 

11,212

 

 

July 17, 2018

 

Retail

 

 

5

 

 

 

14,845

 

 

July 17, 2018

 

Office

 

 

1

 

 

 

34,670

 

 

August 6, 2018

 

Industrial

 

 

2

 

 

 

4,802

 

 

August 10, 2018

 

Retail

 

 

20

 

 

 

44,977

 

 

October 11, 2018

 

Healthcare

 

 

4

 

 

 

17,448

 

 

October 26, 2019

 

Industrial

 

 

1

 

 

 

8,816

 

 

October 31, 2018

 

Retail

 

 

1

 

 

 

2,016

 

 

November 30, 2018

 

Retail

 

 

3

 

 

 

5,357

 

 

December 4, 2018

 

Retail

 

 

2

 

 

 

6,036

 

 

December 6, 2018

 

Healthcare

 

 

6

 

 

 

46,100

 

 

December 12, 2018

 

Healthcare

 

 

1

 

 

 

20,312

 

 

December 20, 2018

 

Industrial

 

 

1

 

 

 

18,250

 

 

December 20, 2018

 

Healthcare

 

 

18

 

 

 

93,129

 

 

December 28, 2018

 

Industrial

 

 

1

 

 

 

10,035

 

 

December 28, 2018

 

Healthcare

 

 

5

 

 

 

14,037

 

 

 

 

 

 

 

113

 

 

$

606,825

 

(f)

 

(c)

In conjunction with this acquisition, the Company settled a note receivable with the seller in the amount of $3,700, in exchange for a reduction in the cash paid for the transaction (see Note 8).

(d)

In conjunction with this acquisition, the Company assumed a mortgage with a principal balance of $20,845 with an interest rate at 4.36% and a maturity date of August 2025 (see Note 10).

(e)

In conjunction with this acquisition, the Company settled a note receivable with the seller in the amount of $2,827, in exchange for a reduction in the cash paid for the transaction (see Note 8).

(f)

Acquisition price does not include capitalized acquisition costs of $12,643.

The Company closed on the following acquisitions during the year ended December 31, 2017:

 

 

 

 

 

 

 

 

 

Real Estate

 

 

(in thousands, except number of properties)

 

 

 

Number of

 

 

Acquisition

 

 

Date

 

Property Type

 

Properties

 

 

Price

 

 

January 18, 2017

 

Retail

 

 

1

 

 

$

2,520

 

 

March 1, 2017

 

Retail

 

 

9

 

 

 

87,196

 

 

April 28, 2017

 

Retail

 

 

25

 

 

 

48,898

 

 

June 2, 2017

 

Healthcare

 

 

2

 

 

 

13,300

 

 

June 15, 2017

 

Retail

 

 

2

 

 

 

2,700

 

 

June 30, 2017

 

Industrial

 

 

2

 

 

 

12,250

 

 

June 30, 2017

 

Healthcare

 

 

7

 

 

 

25,989

 

 

July 7, 2017

 

Office

 

 

1

 

 

 

32,210

 

 

August 4, 2017

 

Healthcare

 

 

3

 

 

 

11,732

 

 

August 31, 2017

 

Healthcare

 

 

3

 

 

 

16,700

 

 

August 31, 2017

 

Industrial

 

 

2

 

 

 

6,148

 

 

September 13, 2017

 

Retail

 

 

5

 

 

 

4,994

 

 

September 29, 2017

 

Industrial/Retail

 

 

7

 

 

 

30,012

 

 

September 29, 2017

 

Industrial

 

 

1

 

 

 

57,372

 

 

October 13, 2017

 

Healthcare

 

 

1

 

 

 

10,000

 

(g)

November 1, 2017

 

Other

 

 

4

 

 

 

15,693

 

(h) (i)

December 7, 2017

 

Office

 

 

2

 

 

 

19,295

 

 

December 7, 2017

 

Healthcare

 

 

1

 

 

 

5,095

 

 

December 7, 2017

 

Healthcare

 

 

1

 

 

 

2,678

 

 

December 8, 2017

 

Industrial/Office

 

 

3

 

 

 

74,200

 

 

December 14, 2017

 

Office

 

 

1

 

 

 

24,500

 

 

December 18, 2017

 

Other

 

 

1

 

 

 

22,585

 

 

December 22, 2017

 

Industrial

 

 

2

 

 

 

19,000

 

 

December 22, 2017

 

Industrial

 

 

1

 

 

 

21,037

 

 

December 27, 2017

 

Retail

 

 

1

 

 

 

1,446

 

 

December 28, 2017

 

Industrial

 

 

1

 

 

 

28,450

 

 

December 29, 2017

 

Retail

 

 

9

 

 

 

28,224

 

 

December 29, 2017

 

Retail

 

 

20

 

 

 

39,552

 

 

December 29, 2017

 

Healthcare

 

 

6

 

 

 

19,868

 

 

 

 

 

 

 

124

 

 

$

683,644

 

(j)

 

(g)

In conjunction with this acquisition, the Company assumed a mortgage with a principal balance of $5,205 with a variable interest rate at one-month LIBOR plus 3.0% and a maturity date of August 2021 (see Note 10). The Company also assumed an interest rate swap with a fixed rate of 1.02% and a maturity date of August 2021 (see Note 11).

(h)

The acquisition was conducted with a related party and approved by the IDC. The fees required under the Asset Management Agreement (see Note 3) were waived by the Asset Manager.

(i)

In conjunction with this acquisition, the Company assumed a mortgage with a principal balance of $6,721 with an interest rate of 3.65% and a maturity date of October 2026 (see Note 10).

(j)

Acquisition price does not include capitalized acquisition costs of $12,349.

The Company allocated the purchase price of these properties to the fair value of the assets acquired and liabilities assumed. The following table summarizes the purchase price allocation for completed acquisitions:

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

 

2017

 

Land

 

$

161,182

 

 

$

72,559

 

 

$

67,945

 

Land improvements

 

 

47,391

 

 

 

32,498

 

 

 

54,804

 

Buildings and improvements

 

 

772,998

 

 

 

454,391

 

 

 

508,541

 

Equipment

 

 

 

 

 

2,892

 

 

 

7,671

 

Acquired in-place leases (k)

 

 

80,952

 

 

 

62,631

 

 

 

77,073

 

Acquired above-market leases (l)

 

 

2,800

 

 

 

5,538

 

 

 

14,905

 

Acquired below-market leases (m)

 

 

(15,811

)

 

 

(11,471

)

 

 

(38,493

)

Direct financing investments

 

 

 

 

 

430

 

 

 

3,546

 

Mortgages payable

 

 

(49,782

)

 

 

(20,845

)

 

 

(11,926

)

Non-real estate liabilities

 

 

 

 

 

(56

)

 

 

(2,777

)

 

 

$

999,730

 

 

$

598,567

 

 

$

681,289

 

 

(k)

The weighted average amortization period for acquired in-place leases is 13 years, 13 years, and 15 years for acquisitions completed during the years ended December 31, 2019, 2018, and 2017, respectively.

(l)

The weighted average amortization period for acquired above-market leases is 18 years, 16 years, and 17 years for acquisitions completed during the years ended December 31, 2019, 2018, and 2017, respectively.

(m)

The weighted average amortization period for acquired below-market leases is 10 years, 13 years, and 19 years for acquisitions completed during the years ended December 31, 2019, 2018, and 2017, respectively.

The above acquisitions were funded using a combination of available cash on hand, borrowings under the Company’s unsecured revolving line of credit and unsecured term loan agreements, and proceeds from equity issuances. All acquisitions closed during the years ended December 31, 2019, 2018 and 2017, qualified as asset acquisitions and, as such, acquisition costs have been capitalized.