Real Estate Asset Acquisitions

9 Months Ended

Sep. 30, 2023

REAL ESTATE ASSET ACQUISITIONS

During the nine months ended September 30, 2023, the Company acquired one industrial commercial real estate asset for $9.5 million. A portion of the transaction was structured to qualify as a reverse like-kind exchange under Section 1031 of the Internal Revenue Code and accordingly, was acquired by a variable interest entity ("VIE") formed by an exchange accommodation titleholder using funds loaned by the Company. The Company operated the VIE pursuant to a management agreement. Furthermore, as the primary beneficiary with the ability to control the activities that most significantly impacted the VIE's economic performance and all the risks and rewards of ownership, the Company consolidated the VIE. The Company did not relinquish property to close the reverse like-kind exchange within the 180-day timeframe, as such, on October 30, 2023, the ownership of the property was conveyed to the Company in accordance with the terms of the like-kind exchange agreements and therefore is no longer a VIE.

The allocation of purchase price to assets acquired and liabilities assumed is as follows (in millions):


Fair value of assets acquired
Assets acquired:
Land	$	3.0
Property and improvements	6.1
In-place leases	0.4

Total assets acquired	$	9.5

As of the acquisition date, the weighted-average amortization periods of the in-place leases was approximately 10.0 years.