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REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables)
 3 Months Ended
Mar. 31, 2023
Real Estate [Abstract]  
Schedule of real estate properties by category
The Company’s real estate assets were comprised of the following ($ in thousands):
March 31, 2023December 31, 2022
Land$158,802 $158,802 
Building626,280 625,655 
In-place leases and other intangibles114,689 114,687 
Undepreciated real estate and related lease intangibles899,771 899,144 
Less: Accumulated depreciation and amortization(206,505)(199,008)
Real estate and related lease intangibles, net(2)$693,266 $700,136 
Below market lease intangibles, net (other liabilities)(1)$(30,369)$(30,892)
(1)Below market lease intangibles is net of $14.2 million and $13.6 million of accumulated amortization as of March 31, 2023 and December 31, 2022, respectively.
(2)There was unencumbered real estate of $170.2 million and $140.3 million as of March 31, 2023 and December 31, 2022, respectively.
Schedule of depreciation and amortization expense recorded
The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):
 Three Months Ended March 31,
 20232022
Depreciation expense(1)$6,200 $7,088 
Amortization expense1,329 2,254 
Total real estate depreciation and amortization expense$7,529 $9,342 
(1)Depreciation expense on the consolidated statements of income also includes $0.1 million and $8 thousand of depreciation on corporate fixed assets for the three months ended March 31, 2023 and March 31, 2022, respectively.
Schedule of lease intangible assets
The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands):
 March 31, 2023December 31, 2022
Gross intangible assets(1)$114,689 $114,687 
Accumulated amortization51,125 49,725 
Net intangible assets$63,564 $64,962 
(1)Includes $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2023 and December 31, 2022.

The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands):
 Three Months Ended March 31,
 20232022
Reduction in operating lease income for amortization of above market lease intangibles acquired$(72)$(76)
Increase in operating lease income for amortization of below market lease intangibles acquired526 520 
Total$454 $444 
Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned
The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of March 31, 2023 ($ in thousands):
Period Ending December 31,Increase/(Decrease) to Operating Lease IncomeAmortization Expense
2023$730 $3,398 
2024973 4,531 
2025973 4,391 
2026976 3,740 
2027976 3,554 
Thereafter22,968 41,179 
Total$27,596 $60,793 
Schedule of contractual future minimum rent under leases
The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at March 31, 2023 ($ in thousands):
Period Ending December 31,Amount
2023$40,682 
202449,994 
202549,801 
202648,424 
202746,267 
Thereafter196,855 
Total$432,023 
Schedule of real estate properties acquired uring the three months ended March 31, 2022 ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
February 2022(2)ApartmentsNew York, NY$15,436 100.0%
Total real estate acquisitions$15,436 
(1)Properties were consolidated as of acquisition date.
(2)In February 2022, the Company acquired, via change in control, a previously held interest in a non-controlling equity investment in a mixed use property with one remaining residential condo unit and one remaining retail condo unit in New York, New York. The carrying value of the property at the time of change in control was $15.4 million, which was determined to be fair value. The fair value of the remaining condo unit was determined based on comparable sales in the building and the value of the remaining retail unit was valued utilizing a direct capitalization rate of 5.5%. The key inputs used to determine fair value were determined to be Level 3 inputs.
Schedule of properties sold
The Company did not have any sales during the three months ended March 31, 2023 and sold the following properties during the three months ended March 31, 2022 ($ in thousands):

Sales DateTypePrimary Location(s)Net Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
March 2022OfficeEwing, NJ$38,652 $24,134 $14,518 1 
March 2022WarehouseConyers, GA40,752 26,116 14,636 1 
Totals(1)$79,404 $50,250 $29,154 
(1)Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income.