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Real Estate (Tables) | 6 Months Ended
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Jun. 30, 2019
Real Estate [Abstract] |
Schedule of Consideration Transferred | As the Mergers were accounted for as a reverse acquisition, the total consideration transferred was computed by dividing the Company's outstanding shares as of April 30, 2019 by the exchange ratio of 1.04807 and multiplied by EA-1’s estimated value per share of $10.02 (including transaction costs) as of April 30, 2019. Consideration transferred is calculated as such (in thousands except share and per share data):
GCEAR's common shares outstanding as of April 30, 2019 | 78,054,934 |
Exchange ratio | 1.04807 |
Implied EA-1 common stock issued in consideration | 74,474,924 |
GCEAR's operating partnership units outstanding as of April 30, 2019 | 527,045 |
Exchange ratio | 1.04807 |
Implied EA-1 operating partnership units issued in consideration | 502,872 |
EA-1's net asset value per share as of April 30, 2019 | $ | 10.02 |
Total consideration | $ | 751,278 |
Schedule Of Asset Acquisition | The following summarizes the purchase price allocations of the properties acquired during the six months ended June 30, 2019:
Acquisition |  | Land |  | Building |  | Improvements |  | Tenant origination and absorption costs |  | In-place lease valuation - above market |  | In-place lease valuation - (below) market |  | Total (1) |  | 2019 Revenue (2)
Mergers |  | $ | 135,875 |  |  | $ | 849,236 |  |  | $ | 62,928 |  |  | $ | 214,428 |  |  | $ | 3,627 |  |  | $ | (12,476 | ) |  | $ | 1,253,618 |  |  | $ | 16,493 |
(1) | The allocations noted above are based on a determination of the relative fair value of the total consideration provided and represent the amount paid including capitalized acquisition costs.
(2) | The operating results of the properties acquired in the Mergers have been included in the Company's consolidated statement of operations since the acquisition date of April 30, 2019.
The following table summarizes the final purchase price allocation based on a valuation report prepared by the Company's third-party valuation specialist that was subject to management's review and approval:
| Amount
Assets: |
Cash assumed | $ | 35,659 |
Land | 135,875 |
Building and improvements | 912,164 |
Tenant origination and absorption cost | 214,428 |
Intangibles | 3,627 |
Construction in progress | 263 |
Other assets | 8,188 |
Total assets | 1,310,204 |
Liabilities: |
Debt (net of $1.1 million premium) | 498,906 |
Below market leases | 12,476 |
Due to Affiliates | 8,804 |
Distribution payable | 1,854 |
Restricted reserves | 11,050 |
Accounts payable and other liabilities | 15,498 |
Total liabilities | 548,588 |
Fair value of net assets acquired | 761,616 |
Less: EA-1's Merger expenses | 10,338 |
Fair value of net assets acquired, less EA-1's Merger expenses | $ | 751,278 |
Schedule of Merger Related Costs Incurred | The following is a breakdown of the Company's costs incurred during the six months ended June 30, 2019 related to the Mergers:
| Amount
Advisory and valuation fees | $ | 8,592 |
Legal, accounting and tax fees | 1,384 |
Other fees | 362 |
Total Merger-related fees | $ | 10,338 |
Schedule of in-place lease valuation and tenant origination and absorption cost | The Company allocated a portion of the acquired and contributed real estate asset value to in-place lease valuation and tenant origination and absorption cost, net of the write-off of intangibles, as of June 30, 2019 and December 31, 2018:
| June 30, 2019 |  | December 31, 2018
In-place lease valuation (above market) | $ | 46,363 |  |  | $ | 42,736 |
In-place lease valuation (above market) - accumulated amortization | (33,639 | ) |  | (31,995 | )
In-place lease valuation (above market), net | 12,724 |  |  | 10,741 |
Ground leasehold interest (below market) | 2,254 |  |  | 2,255 |
Ground leasehold interest (below market) - accumulated amortization | (150 | ) |  | (137 | )
Ground leasehold interest (below market), net | 2,104 |  |  | 2,118 |
Intangibles - other | — |  |  | 4,240 |
Intangible assets, net | $ | 14,828 |  |  | $ | 17,099 |
In-place lease valuation (below market) | $ | (67,622 | ) |  | $ | (55,147 | )
In-place lease valuation (below market) - accumulated amortization | 35,444 |  |  | 32,032 |
In-place lease valuation (below market), net | $ | (32,178 | ) |  | $ | (23,115 | )
Tenant origination and absorption cost | $ | 744,610 |  |  | $ | 530,181 |
Tenant origination and absorption cost - accumulated amortization | (326,520 | ) |  | (296,201 | )
Tenant origination and absorption cost, net | $ | 418,090 |  |  | $ | 233,980 |
Schedule of estimated annual amortization (income) expense | The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, net, tenant origination and absorption costs, ground leasehold improvements, and other leasing costs as of June 30, 2019 for the next five years:
Year |  | In-place lease valuation, net |  | Tenant origination and absorption costs |  | Ground leasehold improvements |  | Other leasing costs
Remaining 2019 |  | $ | (1,872 | ) |  | $ | 35,936 |  |  | $ | 27 |  |  | $ | 4,496 |
2020 |  | $ | (1,813 | ) |  | $ | 68,322 |  |  | $ | 27 |  |  | $ | 5,837 |
2021 |  | $ | (1,952 | ) |  | $ | 60,341 |  |  | $ | 27 |  |  | $ | 6,446 |
2022 |  | $ | (2,434 | ) |  | $ | 57,000 |  |  | $ | 27 |  |  | $ | 6,414 |
2023 |  | $ | (2,441 | ) |  | $ | 51,692 |  |  | $ | 27 |  |  | $ | 6,351 |
Restrictions on cash and cash equivalents | Additionally, an ongoing replacement reserve is funded by certain tenants pursuant to each tenant’s respective lease as follows:
| Balance as of
| June 30, 2019 |  | December 31, 2018
Cash reserves | $ | 27,535 |  |  | $ | 12,945 |
Restricted lockbox | 5,916 |  |  | 2,862 |
Total | $ | 33,451 |  |  | $ | 15,807 |

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