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Real Estate (Tables) | 3 Months Ended
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Mar. 31, 2021
Real Estate [Abstract] |
Schedule of Consideration Transferred | Upon the effective time of the CCIT II Merger on March 1, 2021, each of CCIT II's 67.1 million issued and outstanding shares of common stock were converted into the right to receive 1.392 newly issued shares of the Class E common stock of the Company (approximately 93.5 million shares). Total consideration transferred is calculated as such:
| As of March 1, 2021
CCIT II's common stock shares prior to conversion | 67,139,129 |
Exchange ratio | 1.392
Implied GCEAR common stock issued as consideration | 93,457,668 |
GCEAR's Class E NAV per share in effect at March 1, 2021 | $ | 8.97 |
Total consideration | $ | 838,315 |
Schedule of Asset Acquisition | 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:
| March 1, 2021
Assets: |
Cash assumed | $ | 2,721 |
Land | 141,892 |
Building and improvements | 992,779 |
Tenant origination and absorption cost | 152,793 |
In-place lease valuation (above market) | 11,591 |
Intangibles | 27,788 |
Other assets | 3,522 |
Total assets | $ | 1,333,086 |
Liabilities: |
Debt | $ | 415,926 |
In-place lease valuation (below market) | 10,026 |
Lease liability | 4,616 |
Accounts payable and other liabilities | 20,604 |
Total liabilities | 451,172 |
Fair value of net assets acquired | 881,914 |
Less: GCEAR's CCIT II Merger expenses | 43,599 |
Fair value of net assets acquired, less GCEAR's CCIT II Merger expenses | $ | 838,315 |
Schedule of Costs Incurred | The following is a breakdown of the Company's costs incurred during 2020 and three months ended March 31, 2021 related to the CCIT II Merger:
| Amount
Termination fee of the CCIT II advisory agreement | $ | 28,439 |
Advisory and valuation fees | 4,699 |
Legal, accounting and tax fees | 5,115 |
Other fees | 5,346 |
Total CCIT II Merger-related fees | $ | 43,599 |
Schedule of Property Acquisition | The following table summarizes the purchase price allocation of the properties acquired during the three months ended March 31, 2021:
Acquisition |  | Land |  | Building |  | Improvements |  | Tenant origination and absorption costs |  | Other Intangibles |  | In-place lease valuation - above/(below) market |  | Financing Leases |  | Total (1)
CCIT II Properties |  | $ | 141,892 |  | (2) | $ | 958,166 |  |  | $ | 34,613 |  |  | $ | 152,793 |  |  | $ | 27,788 |  |  | $ | 1,565 |  |  | $ | (3,681) |  |  | $ | 1,313,136 |
(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)Approximately $5.6 million includes land allocation related to the Company's finance leases.
Schedule of In-Place Lease Valuation and Tenant Origination and Absorption Cost | March 31, 2021 and December 31, 2020:
| March 31, 2021 |  | December 31, 2020
In-place lease valuation (above market) | $ | 54,545 |  |  | $ | 43,576 |
In-place lease valuation (above market) - accumulated amortization | (36,963) |  |  | (35,604) |
In-place lease valuation (above market), net | $ | 17,582 |  |  | $ | 7,972 |
Ground leasehold interest (below market) | 2,254 |  |  | 2,254 |
Ground leasehold interest (below market) - accumulated amortization | (198) |  |  | (191) |
Ground leasehold interest (below market), net | 2,056 |  |  | 2,063 |
Intangibles - other | 32,028 |  |  | 4,240 |
Intangibles - other - accumulated amortization | (4,367) |  |  | (4,240) |
Intangible assets, net | $ | 47,299 |  |  | $ | 10,035 |
In-place lease valuation (below market) | $ | (77,862) |  |  | $ | (68,334) |
Land leasehold interest (above market) | (3,072) |  |  | (3,072) |
Intangibles - other (above market) | (387) |  |  | — |
In-place lease valuation & land leasehold interest - accumulated amortization | 45,372 |  |  | 44,073 |
Intangible liabilities, net | $ | (35,949) |  |  | $ | (27,333) |
Tenant origination and absorption cost | $ | 888,291 |  |  | $ | 740,489 |
Tenant origination and absorption cost - accumulated amortization | (423,868) |  |  | (412,462) |
Tenant origination and absorption cost, net | $ | 464,423 |  |  | $ | 328,027 |
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, other intangibles, and other leasing costs as of March 31, 2021 for the next five years:
Year |  | In-place lease valuation, net |  | Tenant origination and absorption costs |  | Ground leasehold interest |  | Other intangibles |  | Other leasing costs
2021 |  | $ | (1,464) |  |  | $ | 61,186 |  |  | $ | (218) |  |  | $ | 1,125 |  |  | $ | 4,702 |
2022 |  | $ | (2,339) |  |  | $ | 76,904 |  |  | $ | (290) |  |  | $ | 1,495 |  |  | $ | 5,769 |
2023 |  | $ | (2,845) |  |  | $ | 69,849 |  |  | $ | (290) |  |  | $ | 1,495 |  |  | $ | 5,637 |
2024 |  | $ | (1,803) |  |  | $ | 54,791 |  |  | $ | (291) |  |  | $ | 1,499 |  |  | $ | 5,412 |
2025 |  | $ | (1,331) |  |  | $ | 43,007 |  |  | $ | (290) |  |  | $ | 1,495 |  |  | $ | 5,386 |
2026 |  | $ | (1,156) |  |  | $ | 38,348 |  |  | $ | (290) |  |  | $ | 1,495 |  |  | $ | 4,761 |
Components of Assets and Liabilities Related to Real Estate Held for Sale | The following summary presents the major components of assets and liabilities related to the real estate held for sale as of March 31, 2021:
|  | Balance as of March 31, 2021
Land |  | $ | 1,710 |
Building |  | 15,043 |
Building improvements |  | 493 |
Total real estate |  | 17,246 |
Less: Accumulated Depreciation |  | (6,194) |
Total real estate, net |  | $ | 11,052 |
Accrued Expenses and other liabilities |  | $ | 964 |
Total liabilities |  | $ | 964 |
Restrictions on Cash | Additionally, an ongoing replacement reserve is funded by certain tenants pursuant to each tenant’s respective lease as follows:
| Balance as of
| March 31, 2021 |  | December 31, 2020
Cash reserves | $ | 15,545 |  |  | $ | 20,385 |
Restricted lockbox | 11,770 |  |  | 13,967 |
Total | $ | 27,315 |  |  | $ | 34,352 |

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- Definition Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760 Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760 Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760 Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760 + Details
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