XML 69 R11.htm IDEA: XBRL DOCUMENT v2.4.1.9
Real Estate Acquired
 12 Months Ended
Dec. 31, 2014
Real Estate [Abstract]  
Real Estate Acquired
REAL ESTATE ACQUIRED
1500, 1580, 1582 and 1584 Rockville Pike
In December 2012, the Company purchased for $22.4 million 1500 Rockville Pike, and incurred acquisition costs of $0.6 million. In January 2014, the Company purchased for $8.0 million 1580 Rockville Pike and incurred acquisition costs of $0.2 million. In April 2014, the Company purchased for $11.0 million 1582 Rockville Pike and incurred acquisition costs of $0.2 million. In December 2014, the company purchased for $6.2 million 1584 Rockville Pike and incurred acquisition costs of $0.2 million. These retail properties are contiguous with each other and are located in Rockville, Maryland.
730 and 750 Glebe Road
In August 2014, the Company purchased for $40.0 million, 750 N. Glebe Road and incurred acquisition costs of $0.4 million. In December 2014, the Company purchased for $2.8 million 730 N. Glebe Road, and incurred acquisition costs of $40,400. These retail properties are contiguous and are located in Arlington, Virginia.
5541 Nicholson Lane
In December 2012, the Company purchased for $11.7 million 5541 Nicholson Lane, a retail property located in Rockville, Maryland, and incurred acquisition costs of $0.5 million.
Kentlands pad
In August 2013, the Company purchased for $4.3 million, a retail pad with a 7,100 square foot restaurant located in Gaithersburg, Maryland, which is contiguous with and an expansion of the Company's other Kentlands assets, and incurred acquisition costs of $106,000.
Hunt Club pad
In December 2013, the Company purchased for $0.8 million, including acquisition costs, a retail pad with a 5,500 square foot vacant building located in Apopka, Florida, which is contiguous with and an expansion of the Company's other Hunt Club asset.
Allocation of Purchase Price of Real Estate Acquired
The Company allocates the purchase price of real estate investment properties to various components, such as land, buildings and intangibles related to in-place leases and customer relationships, based on their fair values. See Note 2. Summary of Significant Accounting Policies-Real Estate Investment Properties.
During 2014, the Company purchased five properties at an aggregate cost of $68.0 million, and incurred acquisition costs of $0.9 million. The purchase prices were allocated to the assets acquired and liabilities assumed based on their fair value as shown in the following table.
(in thousands)
1580
Rockville Pike
 
1582
Rockville Pike
 
750 N.
Glebe Road
 
730 N.
Glebe Road
 
1584
Rockville Pike
 
Total
Land
$
9,600

 
$
9,742

 
$
38,224

 
$
2,683

 
$
5,798

 
$
66,047

Buildings
2,200

 
828

 
1,327

 
78

 
440

 
4,873

In-place Leases
513

 
849

 
449

 
39

 
249

 
2,099

Above Market Rent
—

 
—

 
—

 
—

 
—

 
—

Below Market Rent
(4,313
)
 
(419
)
 
—

 
—

 
(337
)
 
(5,069
)
Total Purchase Price
$
8,000

 
$
11,000

 
$
40,000

 
$
2,800

 
$
6,150

 
$
67,950

 
 
 
 
 
 
 
 
 
 
 
 


During 2013, the Company purchased two properties at a cost of $5.1 million and incurred acquisition costs of $106,000. Of the total purchase price, $2.0 million was allocated to buildings and $3.1 million was allocated to land. No amounts were allocated to in-place, above-market, or below-market leases.
During 2012, the Company purchased two properties at an aggregate cost of $34.1 million and incurred acquisition costs of $1.1 million. Of the total purchase price, $3.8 million was allocated to buildings, $30.4 million was allocated to land, and $0.5 million was allocated to in-place leases and $0.7 million was allocated to below market leases which is included in deferred income and is being accreted to income over the lives of the underlying leases, which is approximately 3.1 years.
The gross carrying amount of lease intangible assets included in deferred leasing costs as of December 31, 2014 and 2013 was $24.0 million and $21.9 million, respectively, and accumulated amortization was $18.0 million and $16.7 million, respectively. Amortization expense totaled $1.3 million, $2.0 million and $2.0 million, for the years ended December 31, 2014, 2013, and 2012, respectively. The gross carrying amount of below market lease intangible liabilities included in deferred income as of December 31, 2014 and 2013 was $29.9 million and $24.8 million, respectively, and accumulated amortization was $11.9 million and $10.0 million, respectively. Accretion income totaled $1.9 million, $1.7 million, and $1.6 million, for the years ended December 31, 2014, 2013, and 2012, respectively. The gross carrying amount of above market lease intangible assets included in accounts receivable as of December 31, 2014 and 2013 was $1.0 million and $1.0 million, respectively, and accumulated amortization was $996,700 and $974,100, respectively. Amortization expense totaled $23,000, $45,000 and $60,000, for the years ended December 31, 2014, 2013 and 2012, respectively.
As of December 31, 2014, scheduled amortization of intangible assets and deferred income related to in place leases is as follows:
(In thousands)
Lease acquisition costs
 
Above market leases
 
Below market leases
2015
$
1,252

 
$
2

 
$
1,787

2016
988

 
1

 
1,722

2017
796

 
1

 
1,701

2018
737

 
1

 
1,617

2019
550

 
—

 
1,473

Thereafter
1,739

 
—

 
9,670

Total
$
6,062

 
$
5

 
$
17,970