Investments in Real Estate and Real Estate Under Construction

12 Months Ended

Dec. 31, 2017

Investments in Real Estate and Real Estate Under Construction [Line Items]

Investments in Real Estate and Real Estate Under Construction

The Company's real estate, net, consists of the following at December 31, 2017 and 2016:



	2017			2016
Real estate, at cost:
Buildings and building improvements	$	3,476,022		$	3,050,082
Land, land estates and land improvements	456,134			472,394
Fixtures and equipment	84			5,577
Construction in progress	4,219			5,119
Real estate intangibles:
In-place lease values	461,624			436,185
Tenant relationships	97,223			113,839
Above-market leases	40,244			47,270
Investments in real estate under construction	—			106,652
	4,535,550			4,237,118
Accumulated depreciation and amortization⁽¹⁾	(1,225,650		)	(1,208,792		)
Real estate, net	$	3,309,900		$	3,028,326


(1)	Includes accumulated amortization of real estate intangible assets of $334,681 and $363,861 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $31,401 in 2018, $26,578 in 2019, $23,360 in 2020, $22,211 in 2021 and $20,951 in 2022.

The Company had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $23,308 and $28,416, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $1,526 in 2018, $1,261 in 2019, $1,235 in 2020, $1,143 in 2021 and $1,113 in 2022.

The Company completed the following acquisitions and build-to-suit transactions during 2017 and 2016:

2017:



										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Office	Lake Jackson, TX⁽¹⁾	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
Industrial	Opelika, AL	July 2017	37,269		05/2042	134		33,183		3,952		—
Industrial	McDonough, GA	August 2017	66,700		01/2028	5,441		52,762		8,497		—
Industrial	Byhalia, MS	September 2017	36,590		09/2027	1,751		31,236		3,603		—
Industrial	Jackson, TN	September 2017	57,920		10/2027	1,454		49,026		7,440		—
Industrial	Smyrna, TN	September 2017	104,890		04/2027	1,793		93,940		9,157		—
Industrial	Lafayette, IN	October 2017	17,450		09/2024	662		15,578		1,210		—
Industrial	Romulus, MI	November 2017	38,893		08/2032	2,438		33,786		2,669		—
Industrial	Warren, MI	November 2017	46,955		10/2032	972		42,521		3,462		—
Industrial	Winchester, VA	December 2017	36,700		12/2031	1,988		32,501		2,211		—
			$	727,581		$	31,930	$	625,933	$	72,508	$	(2,790	)

Weighted-average life of intangible assets (years)										12.2		14.9


(1)	Completed the construction of the final building of a four-building project. Initial cost basis excludes developer partner payout of $7,951 (see Note 2)

2016:



										Real Estate Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value		Below Market Lease
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555	$	—
Industrial	Anderson, SC	June 2016	61,347		06/2036	4,663		45,011		11,673		—
Industrial	Wilsonville, OR	September 2016	43,100		10/2032	6,815		32,380		5,920		(2,015		)
Office	Lake Jackson, TX	November 2016	78,484		10/2036	4,357		74,127		—		—
Industrial	Romeoville, IL	December 2016	52,700		10/2031	7,524		40,167		5,009		—
Industrial	Edwardsville, IL	December 2016	44,800		09/2026	4,593		34,251		5,956		—
			$	310,128		$	29,085	$	250,945	$	32,113	$	(2,015	)

Weighted-average life of intangible assets (years)										16.6		16.1

The Company recognized aggregate acquisition and pursuit expenses of $2,171 and $836 in 2017 and 2016, respectively, which are included in property operating expenses within the Company's Consolidated Statements of Operations.

From time to time, the Company is engaged in various forms of build-to-suit development activities. As of December 31, 2017, the Company had no development arrangements outstanding. As of December 31, 2016, the Company's aggregate investment in development arrangements was $106,652, which included $3,442 of capitalized interest and is presented as investments in real estate under construction in the accompanying Consolidated Balance Sheets. During 2017, the Company recognized $3,922 in non-operating income on the Company's Consolidated Statement of Operations due to the write-off of contingent consideration relating to a 2015 build-to-suit project that was not required to be paid by the Company.

LCIF [Member]

Investments in Real Estate and Real Estate Under Construction [Line Items]

Investments in Real Estate and Real Estate Under Construction

The Partnership's real estate, net, consists of the following at December 31, 2017 and 2016:



	2017			2016
Real estate, at cost:
Buildings and building improvements	$	705,565		$	644,173
Land, land estates and land improvements	88,589			86,120
Fixtures and equipment	84			84
Construction in progress	4			825
Real estate intangibles:
In-place lease values	95,166			82,190
Tenant relationships	19,067			19,943
Above-market leases	2,628			2,628
Investment in real estate under construction	—			40,443
	911,103			876,406
Accumulated depreciation and amortization⁽¹⁾	(233,121		)	(236,930		)
Real estate, net	$	677,982		$	639,476


(1)	Includes accumulated amortization of real estate intangible assets of $54,745 and $54,425 in 2017 and 2016, respectively. The estimated amortization of the above real estate intangible assets for the next five years is $5,307 in 2018, $4,557 in 2019, $4,445 in 2020, $4,431 in 2021 and $4,431 in 2022.

In addition, the Partnership had below-market leases, net of accumulated accretion, which are included in deferred revenue, of $32 and $64, respectively as of December 31, 2017 and 2016. The estimated accretion for the next five years is $32 in 2018, $0 in 2019, $0 in 2020, $0 in 2021 and $0 in 2022.

The Partnership, through property owner subsidiaries, completed the following build-to-suit transaction/acquisitions during 2017:



Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	Apr-17	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	Jun-17	24,317		03/2037	3,166		17,985		3,166
Industrial	Warren, MI	Nov-17	46,955		10/2032	972		42,521		3,462
			$	132,611		$	7,909	$	107,570	$	17,132

Weighted-average life of intangible assets (years)										15.9

The Partnership, through property owner subsidiaries, completed the following acquisition during 2016:



Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estates		Building and Improvements		Lease in-place Value Intangible
Industrial	Romeoville, IL	Dec-16	$	52,700	10/2031	$	7,524	$	40,167	$	5,009

Life of intangible asset (years)										14.9

The Partnership recognized aggregate acquisition and pursuit expenses of $343 and $359 in 2017 and 2016, respectively.