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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2019
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The Company is required to disclose fair value information about all financial instruments, whether or not recognized in the consolidated balance sheets, for which it is practicable to estimate fair value. The Company measures and discloses the estimated fair value of financial assets and liabilities utilizing a fair value hierarchy that distinguishes between data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities, (ii) "significant other observable inputs," and (iii) "significant unobservable inputs." "Significant other observable inputs" can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. "Significant unobservable inputs" are typically based on an entity’s own assumptions, since there is little, if any, related market activity. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers between the levels in the fair value hierarchy during the six months ended June 30, 2019 and the year ended December 31, 2018. The following tables set forth the assets and liabilities that the Company measures at fair value on a recurring basis by level within the fair value hierarchy as of June 30, 2019 and December 31, 2018:
Assets/(Liabilities) |  | Total Fair Value |  | Quoted Prices in Active Markets for Identical Assets and Liabilities |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs
June 30, 2019 |  |  |  |  |  |  |  |
Interest Rate Swap Asset |  | $ | 704 |  |  | $ | — |  |  | $ | 704 |  |  | $ | — |
Interest Rate Swap Liability |  | $ | (23,245 | ) |  | $ | — |  |  | $ | (23,245 | ) |  | $ | — |
Earn-out Liability (due to affiliates) |  | $ | (4,380 | ) |  | $ | — |  |  | $ | — |  |  | $ | (4,380 | )
Corporate Owned Life Insurance Asset |  | $ | 2,024 |  |  | $ | — |  |  | $ | 2,024 |  |  | $ | — |
Mutual Funds Asset |  | $ | 6,406 |  |  | $ | 6,406 |  |  | $ | — |  |  | $ | — |
Deferred Compensation Liability |  | $ | (8,570 | ) |  | $ | — |  |  | $ | (8,570 | ) |  | $ | — |
December 31, 2018 |  |  |  |  |  |  |  |
Interest Rate Swap Asset |  | $ | 5,245 |  |  | $ | — |  |  | $ | 5,245 |  |  | $ | — |
Interest Rate Swap Liability |  | $ | (6,962 | ) |  | $ | — |  |  | $ | (6,962 | ) |  | $ | — |
Earn-out Liability (due to affiliates) |  | $ | (29,380 | ) |  | $ | — |  |  | $ | — |  |  | $ | (29,380 | )
Earn-outs As part of the Self Administration Transaction, the Current Operating Partnership paid GC LLC in operating units earn-out consideration of $25.0 million upon completion of the Mergers. In addition, the Current Operating Partnership will pay GCC in cash earn-out consideration ("Cash Earn-Out") equal to (i) 37.25% of the amounts received by the Company's advisor as advisory fees pursuant to the Company's advisory agreement with respect to the incremental common equity invested in the Company's follow-on public offering from April 30, 2019 through the termination of the Company's follow-on public offering, plus (ii) 37.25% of the amounts that would have been received by the Company's advisor as performance distributions pursuant to the operating partnership agreement of the Company, with respect to assets acquired by the Company from April 30, 2019 through the termination of the follow-on public offering. The Cash Earn-Out consideration will accrue on an ongoing basis and be paid quarterly; provided that such cash earn-out consideration will in no event exceed an amount equal to 2.5% of the aggregate dollar amount of common equity invested in the Company pursuant to its follow-on public offering from April 30, 2019 through the termination of such follow-on public offering. The Company estimates the fair value of the Cash Earn-Out liability using a discounted cash flow. The estimate requires the Company to make various assumptions about future equity raised, capitalization rates and annual net operating income growth. The liability is considered a Level 3 input in the fair value hierarchy. As of June 30, 2019, the fair value of the liability was estimated to be $4.4 million. Financial Instruments Disclosed at Fair Value Financial instruments as of June 30, 2019 and December 31, 2018 consisted of cash and cash equivalents, restricted cash, accounts receivable, accrued expenses and other liabilities, and mortgage payable and other borrowings, as defined in Note 5, Debt. With the exception of the mortgage loans in the table below, the amounts of the financial instruments presented in the consolidated financial statements substantially approximate their fair value as of June 30, 2019 and December 31, 2018. The fair value of the six mortgage loans in the table below is estimated by discounting each loan’s principal balance over the remaining term of the mortgage using current borrowing rates available to the Company for debt instruments with similar terms and maturities. The Company determined that the mortgage debt valuation in its entirety is classified in Level 2 of the fair value hierarchy, as the fair value is based on current pricing for debt with similar terms as the in-place debt.
| June 30, 2019 |  | December 31, 2018
| Fair Value |  | Carrying Value (1) |  | Fair Value |  | Carrying Value (1)
Samsonite | $ | 22,627 |  |  | $ | 21,626 |  |  | $ | 22,440 |  |  | $ | 22,085 |
Highway 94 loan | $ | 15,490 |  |  | $ | 16,058 |  |  | $ | 15,601 |  |  | $ | 16,497 |
AIG Loan II | $ | 121,336 |  |  | $ | 126,970 |  |  | $ | — |  |  | $ | — |
BOA Loan | $ | 369,054 |  |  | $ | 375,000 |  |  | $ | 361,917 |  |  | $ | 375,000 |
BOA/KeyBank Loan | $ | 264,824 |  |  | $ | 250,000 |  |  | $ | — |  |  | $ | — |
AIG Loan | $ | 104,172 |  |  | $ | 106,673 |  |  | $ | 108,032 |  |  | $ | 107,562 |
(1) | The carrying values do not include the debt premium/(discount) or deferred financing costs as of June 30, 2019 and December 31, 2018. See Note 6, Debt, for details.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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