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		Intangible Lease
Description of Property	Land		Building		Building Improvements		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).