Note 4 — Real Estate Acquisitions

In January 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires an entity to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, and if that requirement is met, the asset group is not a business. The Company analyzed the real estate acquisitions made during the nine months ended September 30, 2017 and determined the gross assets acquired are concentrated in a single identifiable asset. Therefore, the transactions do not meet the definition of a business and are accounted for as asset acquisitions. In accordance with this guidance, direct transaction costs associated with these asset acquisitions have been capitalized to real estate assets and depreciated over the respective useful lives.

The following chart details the Company’s acquisitions of real estate during the nine months ended September 30, 2017 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)
Forbo industrial facility,				Cash and $5,190
Huntersville, North Carolina	May 25, 2017	$	8,700	mortgage (b)	$	65
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania	June 9, 2017	11,750		All cash (c)	199
Corporate Woods industrial facility, Ankeny, Iowa	June 20, 2017	14,700		All cash (d)	29

Totals		$	35,150		$	293

(a)

Transaction costs incurred with these asset acquisitions were capitalized.

(b)

The new mortgage debt was obtained simultaneously with the acquisition of the property.

(c)

In August 2017, the Company obtained new mortgage debt of $7,200.

(d)

In July 2017, the Company obtained new mortgage debt of $8,820.

The following chart details the allocation of the purchase price for the Company’s acquisitions of real estate during the nine months ended September 30, 2017 (amounts in thousands):

					Building		Intangible Lease
Description of Property	Land		Building		Improvements		Asset		Liability			Total
Forbo industrial facility,
Huntersville, North Carolina	$	1,045	$	6,446	$	222	$	1,052	$	—		$	8,765
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania	999		9,675		247		1,028		—			11,949
Corporate Woods industrial facility, Ankeny, Iowa	1,351		11,420		187		1,929		(158		)	14,729

Totals	$	3,395	$	27,541	$	656	$	4,009	$	(158	)	$	35,443

As of September 30, 2017, the weighted average amortization for the 2017 acquisitions is 7.0 years and 12.4 years for the intangible lease assets and intangible lease liabilities, respectively. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 14) in the fair value hierarchy.

Property Acquisition Subsequent to September 30, 2017

On October 10, 2017, the Company acquired, in a sale-leaseback transaction, a distribution facility/corporate headquarters, located in Memphis, Tennessee for $8 million. The initial term of the lease is ten years.