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Real Estate (Tables)
 3 Months Ended
Mar. 31, 2020
Real Estate [Abstract]  
Schedule of Property Acquisition
The purchase price and other acquisition items for the property acquired during the three months ended March 31, 2020 are shown below:
Property
 
Location
 
Tenant/Major Lessee
 
Acquisition Date
 
Purchase Price
 
Square Feet
 
Acquisition Fees and Expenses
 
Year of Lease Expiration
Pepsi Bottling Ventures
 
North Carolina
 
PepsiCo
 
2/5/2020
 
$34,937
 
526,320
 
$386
 
2032
Schedule of Asset Acquisition
The following table summarizes the purchase price allocation of the property acquired during the three months ended March 31, 2020.
Acquisition
 
Land Value
 
Building
 
Improvements
 
Tenant origination and absorption costs
 
In-place lease valuation - (below) market
 
Debt discount (premium)
 
Total (1)
Pepsi Bottling Ventures
 
$
3,407

 
$
26,813

 
$
954

 
$
4,970

 
$
(712
)
 
$
(109
)
 
$
35,323

(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.
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, tenant origination and absorption cost, and other intangibles, net of the write-off of intangibles, as of March 31, 2020 and December 31, 2019:
 
March 31, 2020
 
December 31, 2019
In-place lease valuation (above market)
$
44,012

 
$
44,012

In-place lease valuation (above market) - accumulated amortization
(34,011
)
 
(33,322
)
In-place lease valuation (above market), net
10,001

 
10,690

 
 
 
 
Ground leasehold interest (below market)
2,254

 
2,254

Ground leasehold interest (below market) - accumulated amortization
(170
)
 
(164
)
Ground leasehold interest (below market), net
2,084

 
2,090

Intangible assets, net
$
12,085

 
$
12,780

 
 
 
 
In-place lease valuation (below market)
$
(68,335
)
 
$
(67,622
)
Land Leasehold interest (above market)
(3,072
)
 
(3,073
)
In-place lease valuation & land leasehold interest - accumulated amortization
40,420

 
38,890

Intangible liabilities, net
$
(30,987
)
 
$
(31,805
)
 
 
 
 
Tenant origination and absorption cost
$
749,743

 
$
744,773

Tenant origination and absorption cost - accumulated amortization
(371,971
)
 
(354,379
)
Tenant origination and absorption cost, net
$
377,772

 
$
390,394
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 March 31, 2020 for the next five years:
Year
 
In-place lease valuation, net
 
Tenant origination and absorption costs
 
Ground leasehold interest
 
Other leasing costs
Remaining 2020
 
$
(1,386
)
 
$
46,667

 
$
(218
)
 
$
3,994

2021
 
$
(2,119
)
 
$
57,989

 
$
(290
)
 
$
5,923

2022
 
$
(2,519
)
 
$
54,886

 
$
(290
)
 
$
5,911

2023
 
$
(2,466
)
 
$
50,084

 
$
(290
)
 
$
5,783

2024
 
$
(1,649
)
 
$
37,724

 
$
(291
)
 
$
5,514

2025
 
$
(1,182
)
 
$
27,447

 
$
(290
)
 
$
5,397
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
 
March 31, 2020
 
December 31, 2019
Cash reserves(1)
$
34,087

 
$
48,129

Restricted Lockbox
10,677

 
10,301

Total
$
44,764

 
$
58,430


(1) Approximately $13.3 million is held in escrow pending a tax-deferred real estate exchange, as permitted by Section 1031 of the Internal Revenue Code with the sale of 10 Commerce Center Parkway property.