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REAL ESTATE INVESTMENTS | 12 Months Ended
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Dec. 31, 2021
REAL ESTATE INVESTMENTS |
REAL ESTATE INVESTMENTS | NOTE 4—REAL ESTATE INVESTMENTS Acquisitions ​ The following tables detail the Company’s real estate acquisitions and allocations of the purchase price during 2021 and 2020 (amounts in thousands). 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. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Contract | ​ | ​ | ​ | Capitalized
​ | ​ | Date | ​ | ​ | Purchase | ​ | Terms of | ​ | ​ | Transaction
Description of Property |  | Acquired |  | Price |  | Payment |  | Costs
Pureon, Inc. industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Monroe, North Carolina | ​ | May 27, 2021 | ​ | $ | 7,000 |  | Cash and $4,500 mortgage (a) | ​ | $ | 60
Multi-tenant industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lehigh Acres, Florida | ​ | September 29, 2021 | ​ | ​ | 9,355 | ​ | Cash and $6,100 mortgage (a) | ​ | ​ | 77
Home Depot USA, Inc. industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Omaha, Nebraska | ​ | November 12, 2021 | ​ | ​ | 7,975 | ​ | All cash | ​ | ​ | 67
TOTALS FOR 2021 | ​ | ​ | ​ | $ | 24,330 |  |  | ​ | $ | 204
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Creative Office Environments industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ashland, Virginia | ​ | February 20, 2020 | ​ | $ | 9,100 |  | All cash (b) | ​ | $ | 119
Fed Ex industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lowell, Arkansas | ​ | February 24, 2020 | ​ | ​ | 19,150 | ​ | All cash (b) |  | ​ | 135
TOTALS FOR 2020 | ​ |  | ​ | $ | 28,250 |  |  | ​ | $ | 254
(a) | In 2021, simultaneously with the acquisitions of these properties, the Company obtained new mortgage debt of $4,500 and $6,100, bearing interest rates of 3.25% and 3.17% and maturing in 2027 and 2031, respectively.
(b) | In 2020, subsequent to these acquisitions, the Company obtained new mortgage debt of $5,700 and $12,500, bearing interest rates of 3.54% and 3.63% and maturing in 2035 and 2027, respectively.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Building & | ​ | Intangible Lease | ​ | ​ | ​ | ​ | Market Cap |  | Discount
Description of Property |  | Land |  | Improvements |  | Asset (a) |  | Liability (b) | ​ | Total | ​ | Rate (c) | ​ | Rate (c)
Pureon, Inc. industrial facility, | ​ |  |  |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​
Monroe, North Carolina | ​ | $ | 897 | ​ | $ | 5,106 | ​ | $ | 1,057 | ​ | $ | — | ​ | $ | 7,060 | ​ | 7.00% | ​ | 6.08%
Multi-tenant industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lehigh Acres, Florida | ​ | ​ | 1,935 | ​ | ​ | 7,393 | ​ | ​ | 701 | ​ | ​ | (596) | ​ | ​ | 9,433 | ​ | 6.75% | ​ | 5.60%
Home Depot USA, Inc. industrial facility, | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Omaha, Nebraska | ​ | ​ | 1,000 | ​ | ​ | 6,547 | ​ | ​ | 530 | ​ | ​ | (36) | ​ | ​ | 8,041 | ​ | 6.25% | ​ | 6.16%
TOTALS FOR 2021 | ​ | $ | 3,832 | ​ | $ | 19,046 | ​ | $ | 2,288 | ​ | $ | (632) | ​ | $ | 24,534 | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Creative Office Environments industrial facility, | ​ |  |  |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​
Ashland, Virginia | ​ | $ | 391 | ​ | $ | 7,901 | ​ | $ | 927 | ​ | $ | — | ​ | $ | 9,219 | ​ | 6.50% | ​ | n/a
Fed Ex industrial facility, | ​ | ​ |  | ​ |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  |  | ​ | ​ | ​ | ​
Lowell, Arkansas | ​ | ​ | 1,687 | ​ |  | 15,188 | ​ | ​ | 2,978 | ​ | ​ | (568) | ​ |  | 19,285 | ​ | 6.25% | ​ | 6.16%
TOTALS FOR 2020 | ​ | $ | 2,078 | ​ | $ | 23,089 | ​ | $ | 3,905 | ​ | $ | (568) | ​ | $ | 28,504 | ​ | ​ | ​ | ​
(a) | The weighted average amortization period for the 2021 and 2020 acquisitions is 4.1 years and 8.3 years for the intangible lease assets, respectively.
(b) | The weighted average amortization period for the 2021 and 2020 acquisitions is 8.2 years and 13.7 years for the intangible lease liabilities, respectively.
(c) | The fair value of the tangible and intangible lease assets of each property was assessed as of the acquisition date using an income approach with a market capitalization and discount rate categorized as a Level 3 unobservable input in the fair value hierarchy (as definted in Note 2) .
NOTE 4—REAL ESTATE INVESTMENTS (Continued) 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, 2021 and 2020, accumulated amortization of intangible lease assets was $25,892,000 and $24,530,000, respectively, and accumulated amortization of intangible lease liabilities was $8,968,000 and $8,539,000, respectively. ​ During 2021, 2020 and 2019, the Company recognized net rental income of $785,000, $780,000 and $914,000, respectively, for the amortization of the above/below market leases. During 2021, 2020 and 2019, the Company recognized amortization expense of $4,700,000, $4,617,000 and $4,039,000, respectively, relating to the amortization of the origination costs associated with in-place leases, 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, 2021 will be deducted from rental income through 2032 as follows (amounts in thousands): ​
​ | ​ | ​ | ​
2022 |  | $ | 449
2023 | ​ |  | 256
2024 | ​ |  | 186
2025 | ​ |  | 163
2026 | ​ |  | 125
Thereafter | ​ |  | 425
Total | ​ | $ | 1,604
​ The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2021 will be added to rental income through 2055 as follows (amounts in thousands): ​
​ | ​ | ​ | ​
2022 |  | $ | 1,203
2023 | ​ |  | 961
2024 | ​ |  | 742
2025 | ​ |  | 519
2026 | ​ |  | 512
Thereafter | ​ |  | 6,470
Total | ​ | $ | 10,407
​ The unamortized balance of origination costs associated with in-place leases at December 31, 2021 will be charged to amortization expense through 2055 as follows (amounts in thousands): ​
​ | ​ | ​ | ​
2022 |  | $ | 4,398
2023 | ​ |  | 3,756
2024 | ​ |  | 2,472
2025 | ​ |  | 2,011
2026 | ​ |  | 1,907
Thereafter | ​ |  | 4,546
Total | ​ | $ | 19,090
​ Property Acquisition Subsequent to December 31, 2021 On January 5, 2022, the Company acquired an industrial property located in Fort Myers, Florida for $8,100,000. The initial term of the lease expires in 2030. Subsequent to the acquisition, the Company obtained $4,860,000 of nine-year mortgage debt with an interest rate of 3.09% and amortizing over 25 years.

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- Definition The entire disclosure for asset acquisition. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 50 -Section 15 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6911878&loc=d3e8732-128492 + Details
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