XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.19.1

REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | 12 Months Ended
--- | ---
Dec. 31, 2018
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS |
REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS | NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS Real Estate Acquisitions The following charts detail the Company’s acquisitions of real estate during 2018 and 2017 (amounts in thousands):
|  |  |  |  |  |  |  |  | Capitalized
|  |  |  | Contract |  |  |  | Third Party
|  | Date |  | Purchase |  | Terms of |  | Real Estate
Description of Property |  | Acquired |  | Price |  | Payment |  | Acquisition Costs
Campania International/U.S. Tape industrial facility, |  |  |  |  |  |  |  |  |  |
Pennsburg, Pennsylvania |  | March 28, 2018 |  | $ | 12,675 |  | All cash (a) |  | $ | 226
Plymouth Industries industrial facility, |  |  |  |  |  |  |  |  |  |
Plymouth, Minnesota |  | June 7, 2018 |  |  | 5,500 |  | All cash (b) |  |  | 50
Applied Control industrial facility, |  |  |  |  |  |  |  |  |  |
Englewood, Colorado |  | October 19, 2018 |  |  | 12,800 |  | All cash |  |  | 62
Xerimis industrial facility, |  |  |  |  |  |  |  |  |  |
Moorestown, New Jersey |  | November 1, 2018 |  |  | 7,350 |  | All cash (c) |  |  | 147
Multi-tenant industrial facility, |  |  |  |  |  |  |  |  |  |
Moorestown, New Jersey |  | November 28, 2018 |  |  | 13,498 |  | All cash |  |  | 110
Men’s Warehouse industrial facility, |  |  |  |  |  |  |  |  |  |
Bakersfield, California |  | December 6, 2018 |  |  | 10,850 |  | All cash |  |  | 63
Dufresne Spencer Group industrial facility, |  |  |  |  |  |  |  |  |  |
Green Park, Missouri |  | December 11, 2018 |  |  | 10,000 |  | All cash |  |  | 63
Transcendia industrial facility, |  |  |  |  |  |  |  |  |  |
Greenville, South Carolina |  | December 21, 2018 |  |  | 6,830 |  | All cash |  |  | 66
Totals for 2018 |  |  |  | $ | 79,503 |  |  |  | $ | 787
Forbo industrial facility, |  |  |  |  |  |  |  |  |  |
Huntersville, North Carolina |  | May 25, 2017 |  | $ | 8,700 |  | Cash and $5,190 mortgage(d) |  | $ | 72
Saddle Creek Logistics industrial facility, |  |  |  |  |  |  |  |  |  |
Pittston, Pennsylvania |  | June 9, 2017 |  |  | 11,750 |  | All cash (e) |  |  | 199
Corporate Woods industrial facility, |  |  |  |  |  |  |  |  |  |
Ankeny, Iowa |  | June 20, 2017 |  |  | 14,700 |  | All cash (f) |  |  | 29
Dufresne Spencer Group industrial facility, |  |  |  |  |  |  |  |  |  |
Memphis, Tennessee |  | October 10, 2017 |  |  | 8,000 |  | All cash |  |  | 87
Totals for 2017 |  |  |  | $ | 43,150 |  |  |  | $ | 387
| (a) |  | In July 2018, the Company obtained new mortgage debt of $8,238.
| (b) |  | In September 2018, the Company obtained new mortgage debt of $3,325.
| (c) |  | In November 2018, the Company obtained new mortgage debt of $4,000.
| (d) |  | New mortgage debt was obtained simultaneously with the acquisition of the property.
| (e) |  | In August 2017, the Company obtained new mortgage debt of $7,200.
| (f) |  | In July 2017, the Company obtained new mortgage debt of $8,820.
The Company determined that with respect to each of these acquisitions, the gross assets acquired are concentrated in a single identifiable asset. Therefore, these transactions do not meet the definition of a business and are accounted for as asset acquisitions. As such, direct transaction costs associated with these asset acquisitions have been capitalized to real estate assets and depreciated over their respective useful lives. The following charts detail the allocation of the purchase price for the Company’s acquisitions of real estate during 2018 and 2017 (amounts in thousands):
|  |  |  |  |  |  |  | Building |  | Intangible Lease |  |  |
Description of Property |  | Land |  | Building |  | Improvements |  | Asset |  | Liability |  | Total
Campania International/U.S. Tape industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pennsburg, Pennsylvania |  | $ | 1,776 |  | $ | 10,398 |  | $ | 727 |  | $ | — |  | $ | — |  | $ | 12,901
Plymouth Industries industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plymouth, Minnesota |  |  | 1,121 |  |  | 4,306 |  |  | 123 |  |  | — |  |  | — |  |  | 5,550
Applied Control industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Englewood, Colorado |  |  | 1,562 |  |  | 11,027 |  |  | 273 |  |  | — |  |  | — |  |  | 12,862
Xerimis industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Moorestown, New Jersey |  |  | 1,822 |  |  | 4,899 |  |  | 157 |  |  | 707 |  |  | (88) |  |  | 7,497
Multi-tenant industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Moorestown, New Jersey |  |  | 1,443 |  |  | 10,670 |  |  | 228 |  |  | 1,469 |  |  | (202) |  |  | 13,608
Men’s Warehouse industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bakersfield, California |  |  | 1,988 |  |  | 9,696 |  |  | 300 |  |  | 1,127 |  |  | (2,198) |  |  | 10,913
Dufresne Spencer Group industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Green Park, Missouri |  |  | 1,420 |  |  | 7,696 |  |  | 137 |  |  | 810 |  |  | — |  |  | 10,063
Transcendia industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greenville, South Carolina |  |  | 186 |  |  | 6,337 |  |  | 70 |  |  | 322 |  |  | (19) |  |  | 6,896
Totals for 2018 |  | $ | 11,318 |  | $ | 65,029 |  | $ | 2,015 |  | $ | 4,435 |  | $ | (2,507) |  | $ | 80,290
Forbo industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Huntersville, North Carolina |  | $ | 1,046 |  | $ | 6,452 |  | $ | 222 |  | $ | 1,052 |  | $ | — |  | $ | 8,772
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
Dufresne Spencer Group industrial facility, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Memphis, Tennessee |  |  | 135 |  |  | 7,750 |  |  | 202 |  |  | — |  |  | — |  |  | 8,087
Totals for 2017 |  | $ | 3,531 |  | $ | 35,297 |  | $ | 858 |  | $ | 4,009 |  | $ | (158) |  | $ | 43,537
As of December 31, 2018, the weighted average amortization period for the 2018 acquisitions is 6.8 years and 11.4 years for the intangible lease assets and intangible lease liabilities, respectively. As of December 31, 2017, the weighted average amortization period for the 2017 acquisitions is 6.8 years and 12.2 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 2) in the fair value hierarchy. At December 31, 2018 and 2017, accumulated amortization of intangible lease assets was $16,503,000 and $17,542,000, respectively, and accumulated amortization of intangible lease liabilities was $7,378,000 and $7,849,000, respectively. During 2018, 2017 and 2016, the Company recognized net rental income of $1,849,000, $897,000 and $712,000, respectively, for the amortization of the above/below market leases. During 2018, 2017 and 2016, the Company recognized amortization expense of $7,175,000, $4,984,000, and $3,612,000, respectively, relating to the amortization of the origination costs associated with in place leases, which is included in Depreciation and amortization expense. Included as an increase to Depreciation and amortization expense during 2018 and 2017 are write-offs of $2,743,000 and $884,000, respectively, related to four properties at which the tenant filed Chapter 11 bankruptcy in 2018 and 2017. The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2018 will be deducted from rental income through 2032 as follows (amounts in thousands):
2019 |  | $ | 677
2020 |  |  | 651
2021 |  |  | 645
2022 |  |  | 479
2023 |  |  | 286
Thereafter |  |  | 956
Total |  | $ | 3,694
The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2018 will be added to rental income through 2055 as follows (amounts in thousands):
2019 |  | $ | 1,668
2020 |  |  | 1,531
2021 |  |  | 1,492
2022 |  |  | 1,380
2023 |  |  | 984
Thereafter |  |  | 6,958
Total |  | $ | 14,013
The unamortized balance of origination costs associated with in‑place leases at December 31, 2018 will be charged to amortization expense through 2055 as follows (amounts in thousands):
2019 |  | $ | 3,733
2020 |  |  | 3,498
2021 |  |  | 3,376
2022 |  |  | 2,919
2022 |  |  | 2,414
Thereafter |  |  | 6,907
Total |  | $ | 22,847
Minimum Future Rents The rental properties owned at December 31, 2018 are leased under operating leases with current expirations ranging from 2019 to 2055, with certain tenant renewal rights. The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles and (ii) rental income which can be deferred under the Company’s ground leases on the basis of the respective property’s operating performance (see Note 7). The minimum future contractual rents to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2018 are as follows (amounts in thousands):
2019 |  | $ | 66,959
2020 |  |  | 66,691
2021 |  |  | 65,130
2022 |  |  | 56,444
2023 |  |  | 47,644
Thereafter |  |  | 208,923
Total |  | $ | 511,791
Unbilled Rent Receivable At December 31, 2018 and 2017, the Company’s unbilled rent receivables aggregating $13,722,000 and $14,125,000, 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 23 years. During 2018 and 2017, the Company wrote off $45,000 and $105,000, respectively, of unbilled straight‑line rent receivable related to the properties sold during such years, which reduced the gain on sale reported on the consolidated statements of income. At September 30, 2018, due to the uncertainty with respect to the collection of the unbilled rent receivable related to a property located in Texas, the Company recorded an allowance of $1,440,000, as a reduction to rental income, representing the entire balance of such receivable. At December 31, 2018, a direct write-down of the entire unbilled straight-line rent receivable was charged against the allowance due to the bankruptcy of the tenant. During 2017 and 2016, the Company wrote off, as a reduction to rent income, $362,000 and $7,000, respectively, of unbilled straight-line rent receivable related to five properties at which the tenant filed for Chapter 11 bankruptcy. During 2018, the Company wrote off the $74,000 balance of the unbilled straight-line rent receivable related to a lease termination effected prior to lease expiration (see below). Lease Termination Fee In July 2018, the Company received a $372,000 lease termination fee from a retail tenant in a lease buy-out transaction. In connection therewith, the Company recorded $804,000 as rental income, representing the write-off of the $878,000 balance of the unamortized intangible lease liability, offset in part by the write-off of the $74,000 balance of the unbilled rent receivable. The Company re-leased this property simultaneously with the termination of the lease.

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