XML 25 R11.htm IDEA: XBRL DOCUMENT
v3.3.1.900

REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | 12 Months Ended
--- | ---
Dec. 31, 2015
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS |
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | NOTE 3—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS Real Estate Acquisitions The following charts detail the Company's acquisitions of real estate and an interest in a joint venture during 2015 and 2014 (amounts in thousands):
Description of Property |  | Date Acquired |  | Contract Purchase Price |  | Terms of Payment(a) |  | Third Party Real Estate Acquisition Costs(b) |
Marston Park Plaza retail stores, Littleton, Colorado(c) |  | February 25, 2015 |  | $ | 17,485 |  | Cash and $11,853 mortgage(d) |  | $ | 184 |
Interline Brands distribution facility, Louisville, Kentucky |  | March 18, 2015 |  |  | 4,400 |  | Cash and $2,640 mortgage(e) |  |  | 48 |
Land—The Meadows Apartments, Lakemoor, Illinois(f) |  | March 24, 2015 |  |  | 9,300 |  | All cash |  |  | — | (g)
Joint venture interest—Shopko retail store, Lincoln, Nebraska(h) |  | March 31, 2015 |  |  | 6,300 |  | All cash(h) |  |  | 12 |
Archway Roofing industrial facility, Louisville, Kentucky(i) |  | May 20, 2015 |  |  | 300 |  | All cash |  |  | 15 |
JCIM industrial facility, McCalla, Alabama |  | July 28, 2015 |  |  | 16,618 |  | All cash |  |  | 45 |
Fedex & CHEP USA distribution facility, Delport (St. Louis), Missouri |  | September 25, 2015 |  |  | 19,050 |  | Cash and $12,383 mortgage(j) |  |  | 81 |
Other costs(k) |  |  |  |  | — |  |  |  |  | 64 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Totals for 2015 |  |  |  | $ | 73,453 |  |  |  | $ | 449 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Description of Property |  | Date Acquired |  | Contract Purchase Price |  | Terms of Payment(a) |  | Third Party Real Estate Acquisition Costs(b) |
Total Wine and More retail store, Greensboro, North Carolina |  | January 21, 2014 |  | $ | 2,971 |  | All cash |  | $ | 20 |
Chuck E Cheese restaurant, Indianapolis, Indiana |  | January 23, 2014 |  |  | 2,138 |  | All cash |  |  | 10 |
Savers Thrift Superstore, Highlands Ranch, Colorado |  | May 7, 2014 |  |  | 4,825 |  | All cash |  |  | 83 |
Hobby Lobby retail store, Woodbury, Minnesota |  | May 21, 2014 |  |  | 4,770 |  | All cash |  |  | 46 |
Land—River Crossing Apartments, Sandy Springs, Georgia(f) |  | June 4, 2014 |  |  | 6,510 |  | All cash |  |  | — | (l)
Noxell Corporation industrial building, Joppa, Maryland(m) |  | June 26, 2014 |  |  | 11,650 |  | All cash |  |  | — | (l)
Regal Cinemas theater, Indianapolis, Indiana |  | October 2, 2014 |  |  | 9,000 |  | All cash |  |  | 78 |
Vacant (former Pathmark supermarket), Philadelphia, Pennsylvania(n) |  | October 21, 2014 |  |  | 7,729 |  | Cash and $4,635 mortgage(o) |  |  | 162 |
Progressive Converting distribution facility, New Hope, Minnesota |  | November 21, 2014 |  |  | 7,200 |  | All cash |  |  | 38 |
Other(p) |  |  |  |  | — |  |  |  |  | 42 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Totals for 2014 |  |  |  | $ | 56,793 |  |  |  | $ | 479 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(a) | All of the mortgages listed in this column were obtained simultaneously with the acquisition of the applicable property.
(b) | Included as an expense in the accompanying consolidated statements of income.
(c) | Represents 100% of the consolidated joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.
(d) | The new mortgage debt bears interest at 4.12% per annum and matures February 2025.
(e) | The new mortgage debt bears interest at 3.88% per annum and matures February 2021.
(f) | The Company's fee interest in the land is collateral for the tenant's mortgage loan secured by the buildings located at this property.
(g) | Transaction costs aggregating $292 incurred with this asset acquisition were capitalized.
(h) | The Company purchased its unconsolidated joint venture partner's 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner's 50% share of the underlying joint venture mortgage.
(i) | This property is adjacent to the Interline Brands distribution facility purchased in March 2015.
(j) | The new mortgage debt bears interest at 3.85% per annum and matures August 2024.
(k) | Costs incurred for properties purchased in 2014, potential acquisitions and transactions that were not consummated.
(l) | Transaction costs aggregating $303 incurred with these asset acquisitions were capitalized.
(m) | Represents 100% of the consolidated joint venture in which the Company has a 95% interest. The non-controlling interest contributed $306 for its 5% interest, which was equal to the fair value of such interest at the date of purchase. The Company also contributed $5,825 to the venture as senior preferred equity.
(n) | Represents 100% of the consolidated joint venture in which the Company has a 90% interest. The non-controlling interest contributed $333 for its 10% interest, which was equal to the fair value of such interest at the date of purchase. This property has been vacant since late September 2015. See Note 5.
(o) | The new mortgage debt bears interest at 3.89% per annum and matures November 2021.
(p) | Costs incurred for properties purchased in 2013 and transactions that were not consummated.
The following charts detail the allocation of the purchase price for the Company's acquisitions of real estate and an interest in a joint venture during 2015 and 2014 (amounts in thousands):
|  |  |  |  |  |  |  | Intangible Lease |  |  |
|  |  |  |  |  | Building Improvements |  |  |
Description of Property |  | Land |  | Building |  | Asset |  | Liability |  | Total |
Marston Park Plaza retail stores, Littleton, Colorado |  | $ | 6,005 |  | $ | 10,109 |  | $ | 700 |  | $ | 1,493 |  | $ | (822 | ) | $ | 17,485 |
Interline Brands distribution facility, Louisville, Kentucky |  |  | 578 |  |  | 3,622 |  |  | 105 |  |  | 95 |  |  | — |  |  | 4,400 |
Land—The Meadows Apartments, Lakemoor, Illinois(a) |  |  | 9,592 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,592 |
Joint venture interest—Shopko retail store, Lincoln, Nebraska(b) |  |  | 3,768 |  |  | 11,262 |  |  | 570 |  |  | 922 |  |  | (3,929 | ) |  | 12,593 |
Archway Roofing industrial facility, Louisville, Kentucky |  |  | 51 |  |  | 221 |  |  | 9 |  |  | 19 |  |  | — |  |  | 300 |
JCIM industrial facility, McCalla, Alabama |  |  | 1,588 |  |  | 14,503 |  |  | 179 |  |  | 470 |  |  | (122 | ) |  | 16,618 |
FedEx & CHEP USA distribution facility, Delport (St. Louis), Missouri |  |  | 3,728 |  |  | 12,456 |  |  | 550 |  |  | 2,777 |  |  | (461 | ) |  | 19,050 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Subtotals |  |  | 25,310 |  |  | 52,173 |  |  | 2,113 |  |  | 5,776 |  |  | (5,334 | ) |  | 80,038 |
Other(c) |  |  | 12 |  |  | 19 |  |  | — |  |  | — |  |  | (31 | ) |  | — |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Totals for 2015 |  | $ | 25,322 |  | $ | 52,192 |  | $ | 2,113 |  | $ | 5,776 |  | $ | (5,365 | ) | $ | 80,038 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total Wine and More retail store, Greensboro, North Carolina |  | $ | 1,046 |  | $ | 1,468 |  | $ | 83 |  | $ | 374 |  | $ | — |  | $ | 2,971 |
Chuck E Cheese restaurant, Indianapolis, Indiana |  |  | 853 |  |  | 1,321 |  |  | 145 |  |  | 94 |  |  | (275 | ) |  | 2,138 |
Savers Thrift Superstore, Highlands Ranch, Colorado |  |  | 2,361 |  |  | 2,644 |  |  | 280 |  |  | 856 |  |  | (1,316 | ) |  | 4,825 |
Hobby Lobby retail store, Woodbury, Minnesota |  |  | 1,190 |  |  | 3,667 |  |  | 335 |  |  | 734 |  |  | (1,156 | ) |  | 4,770 |
Land—River Crossing Apartments, Sandy Springs, Georgia(d) |  |  | 6,516 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,516 |
Noxell Corporation industrial building, Joppa, Maryland(e) |  |  | 3,805 |  |  | 7,991 |  |  | 151 |  |  | — |  |  | — |  |  | 11,947 |
Regal Cinemas theater, Indianapolis, Indiana |  |  | 3,087 |  |  | 5,000 |  |  | 225 |  |  | 1,575 |  |  | (887 | ) |  | 9,000 |
Vacant (former Pathmark supermarket), Philadelphia, Pennsylvania |  |  | 1,793 |  |  | 5,396 |  |  | 244 |  |  | 440 |  |  | (144 | ) |  | 7,729 |
Progressive Converting distribution facility, New Hope, Minnesota |  |  | 881 |  |  | 6,033 |  |  | 30 |  |  | 757 |  |  | (501 | ) |  | 7,200 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Subtotals |  |  | 21,532 |  |  | 33,520 |  |  | 1,493 |  |  | 4,830 |  |  | (4,279 | ) |  | 57,096 |
Other(f) |  |  | 74 |  |  | 70 |  |  | 18 |  |  | (59 | ) |  | (97 | ) |  | 6 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Totals for 2014 |  | $ | 21,606 |  | $ | 33,590 |  | $ | 1,511 |  | $ | 4,771 |  | $ | (4,376 | ) | $ | 57,102 |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(a) | Includes capitalized transaction costs of $292 incurred with this asset acquisition.
(b) | Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of its purchase of its partner's 50% interest on March 31, 2015.
(c) | Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.
(d) | Includes capitalized transaction costs of $6 incurred with this asset acquisition.
(e) | Includes capitalized transaction costs of $297 incurred with this asset acquisition.
(f) | Adjustments to finalize the purchase price allocations relating to properties purchased in 2013.
With the exception of the Littleton, Colorado and the Delport, Missouri properties, the properties purchased by the Company during the year ended December 31, 2015 are each net leased and occupied by a single tenant pursuant to leases that expire between 2017 through 2032. The Littleton, Colorado property has 29 retail tenant spaces and, at December 31, 2015, is 92.0% occupied with leases expiring between 2017 and 2032. The Delport, Missouri property has two industrial tenant spaces and, at December 31, 2015, is 100% occupied with leases expiring in 2022 and 2024. Other than the Joppa, Maryland and Philadelphia, Pennsylvania properties, all of the properties purchased in 2014 are net leased by a single tenant pursuant to a lease that expires between 2017 through 2027. The lease of the tenant at the Joppa, Maryland property expired on December 31, 2015 and the property was subsequently leased to a new tenant in January 2016. See Note 5 regarding the former Pathmark property in Philadelphia, Pennsylvania where Pathmark filed for Chapter 11 bankruptcy protection, rejected the lease, and in late September 2015, vacated the property. As a result of the Company's purchase on March 31, 2015 of its partner's 50% interest in an unconsolidated joint venture that owns a property in Lincoln, Nebraska, the Company obtained a controlling financial interest. In accordance with U.S. GAAP, the Company had presented the investee in accordance with the equity method for the periods prior to gaining control and ceased the equity method of accounting and consolidated the investment at March 31, 2015, the date on which 100% control was obtained. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statement of income, representing the difference between the book value of its preexisting equity investment on the March 31, 2015 purchase date and the fair value of the net assets acquired. As a result of the 2015 and 2014 purchases, including adjustments in 2014 to finalize certain 2013 purchases, the Company recorded intangible lease assets of $5,776,000 and $4,771,000, respectively, and intangible lease liabilities of $5,365,000 and $4,376,000, respectively, representing the value of the origination costs and acquired leases. As of December 31, 2015, the weighted average amortization period for the 2015 and 2014 acquisitions is 6.8 years and 9.3 years, respectively, for the intangible lease assets, and 6.4 years and 9.1 years for the intangible lease liabilities, respectively. At December 31, 2015 and 2014, accumulated amortization of intangible lease assets was $12,392,000 and $9,170,000, respectively, and accumulated amortization of intangible lease liabilities was $5,091,000 and $3,928,000, respectively. For the years ended December 31, 2015, 2014 and 2013, the Company recognized net rental income of $723,000, $267,000 and $160,000, respectively, for the amortization of the above/below market leases. For the years ended December 31, 2015, 2014 and 2013, the Company recognized amortization expense of $3,467,000, $2,430,000 and $1,647,000, respectively, relating to the amortization of the origination costs, which is included in Depreciation and amortization expense. The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2015 will be deducted from rental income through 2032 as follows (amounts in thousands):
2016 |  | $ | 569 |
2017 |  |  | 520 |
2018 |  |  | 445 |
2019 |  |  | 369 |
2020 |  |  | 352 |
Thereafter |  |  | 1,571 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 3,826 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2015 will be added to rental income through 2055 as follows (amounts in thousands):
2016 |  | $ | 1,220 |
2017 |  |  | 1,223 |
2018 |  |  | 1,259 |
2019 |  |  | 1,289 |
2020 |  |  | 1,268 |
Thereafter |  |  | 8,262 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 14,521 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
The unamortized balance of origination costs associated with in-place leases at December 31, 2015 will be charged to amortization expense through 2055 as follows (amounts in thousands):
2016 |  | $ | 3,125 |
2017 |  |  | 2,999 |
2018 |  |  | 2,799 |
2019 |  |  | 2,621 |
2020 |  |  | 2,567 |
Thereafter |  |  | 11,041 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 25,152 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
Minimum Future Rents The minimum future contractual rents (without taking into consideration straight-line rent or amortization of intangibles) to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2015 are as follows (amounts in thousands):
2016 |  | $ | 56,883 |
2017 |  |  | 54,011 |
2018 |  |  | 51,743 |
2019 |  |  | 48,342 |
2020 |  |  | 46,255 |
Thereafter |  |  | 186,250 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 443,484 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
The rental properties owned at December 31, 2015 are leased under operating leases with current expirations ranging from 2016 to 2033, with certain tenant renewal rights. Substantially all lease agreements are net lease arrangements which require the tenant to pay rent and substantially all the expenses of the leased property including maintenance, taxes, utilities and insurance. For certain properties, the tenants pay the Company, in addition to the contractual base rent, their pro rata share of real estate taxes and operating expenses. Certain lease agreements provide for periodic rental increases and others provide for increases based on the Consumer Price Index. Unbilled Rent Receivable At December 31, 2015 and 2014, the Company's unbilled rent receivables aggregating $13,577,000 and $12,815,000, respectively, represent rent reported on a straight-line basis in excess of rental payments required under the respective leases. The unbilled rent receivable is to be billed and received pursuant to the lease terms during the next 18 years. During the years ended December 31, 2015 and 2014, the Company wrote off $120,000 and $2,417,000, respectively, of unbilled straight-line rent receivable related to the New Jersey properties sold during such years, which reduced the gain on sale reported on the consolidated statements of income (see Note 4). During the years ended December 31, 2015 and 2014, the Company wrote off $477,000 and $79,000, respectively, of unbilled straight-line rent receivable related to lease termination fees (see Note 7). During the year ended December 31, 2015, the Company wrote off $89,000 of unbilled straight-line rent receivable related to the Philadelphia property (see Note 5).

X
- References No definition available. + Details
Name: | olp_RealEstateInvestmentsAndMinimumFutureRentalsDisclosureAbstract
Namespace Prefix: | olp_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of real estate acquisitions, minimum future rentals, unbilled rent receivables and lease termination fee income of the reporting entity. + References No definition available. + Details
Name: | olp_RealEstateInvestmentsAndMinimumFutureRentalsDisclosureTextBlock
Namespace Prefix: | olp_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration