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REAL ESTATE INVESTMENTS | 12 Months Ended
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Dec. 31, 2022
REAL ESTATE INVESTMENTS |
REAL ESTATE INVESTMENTS | NOTE 4—REAL ESTATE INVESTMENTS ​ Acquisitions ​ The following table details the Company’s real estate acquisitions during 2022 and 2021 (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 Industrial Property |  | Acquired |  | Price | Payment |  | Costs
Conditioned Air Company of Naples LLC | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fort Myers, Florida | ​ | January 5, 2022 | ​ | $ | 8,100 | All cash (a) | ​ | $ | 66
Q.E.P. Co., Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dalton, Georgia | ​ | May 12, 2022 | ​ | ​ | 17,000 | All cash (a) | ​ | ​ | 330
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Hillside, Illinois | ​ | May 16, 2022 | ​ | ​ | 5,770 | All cash | ​ | ​ | 112
Curaleaf, Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lexington, Kentucky | ​ | June 17, 2022 | ​ | ​ | 8,430 | Cash and $5,480 mortgage (b) | ​ | ​ | 80
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Northwood, Ohio | ​ | November 15, 2022 | ​ | ​ | 8,629 | Cash and $6,034 mortgage (c) | ​ | ​ | 87
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Northwood, Ohio | ​ | November 15, 2022 | ​ | ​ | 8,561 | Cash and $6,034 mortgage (c) | ​ | ​ | 86
TOTALS FOR 2022 | ​ | ​ | ​ | $ | 56,490 |  | ​ | $ | 761
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pureon, Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Monroe, North Carolina | ​ | May 27, 2021 | ​ | $ | 7,000 | Cash and $4,500 mortgage (d) | ​ | $ | 60
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lehigh Acres, Florida | ​ | September 29, 2021 | ​ | ​ | 9,355 | Cash and $6,100 mortgage (d) | ​ | ​ | 77
Home Depot USA, Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Omaha, Nebraska | ​ | November 12, 2021 | ​ | ​ | 7,975 | All cash | ​ | ​ | 67
TOTALS FOR 2021 | ​ | ​ | ​ | $ | 24,330 |  | ​ | $ | 204
(a) | Subsequent to the acquisitions of the Fort Myers, Florida and Dalton, Georgia properties, the Company obtained new mortgage debt of $4,860 and $10,000, bearing interest rates of 3.09% and 3.50% and maturing in 2031 and 2032, respectively.
(b) | Simultaneously with the acquisition of this property, the Company obtained new mortgage debt of $5,480, bearing an interest rate of 3.85% and maturing in 2047.
(c) | Simultaneously with the acquisition of these properties, the Company assumed a $6,034 mortgage encumbering both properties, bearing an interest rate of 3.57% and maturing in 2030.
(d) | 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.
NOTE 4—REAL ESTATE INVESTMENTS (CONTINUED) The following table details the allocation of the purchase price and capitalized transaction costs for the Company’s acquisition of real estate during 2022 and 2021 (amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Building & | ​ | Intangible Lease | ​ | Mortgage | ​ | ​ | ​ | ​
Description of Industrial Property |  | Land |  | Improvements |  | Asset |  | Liability | ​ | Intangible | ​ | Total | ​
Conditioned Air Company of Naples LLC | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fort Myers, Florida | ​ | $ | 991 | ​ | $ | 6,876 | ​ | $ | 568 | ​ | $ | (269) | ​ | $ | — | ​ | $ | 8,166 | ​
Q.E.P. Co., Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Dalton, Georgia | ​ | ​ | 547 | ​ | ​ | 15,836 | ​ | ​ | 1,223 | ​ | ​ | (276) | ​ | ​ | — | ​ | ​ | 17,330 | ​
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Hillside, Illinois | ​ | ​ | 2,560 | ​ | ​ | 2,975 | ​ | ​ | 539 | ​ | ​ | (192) | ​ | ​ | — | ​ | ​ | 5,882 | ​
Curaleaf, Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lexington, Kentucky | ​ | ​ | 1,558 | ​ | ​ | 6,881 | ​ | ​ | 486 | ​ | ​ | (415) | ​ | ​ | — | ​ | ​ | 8,510 | ​
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Northwood, Ohio | ​ | ​ | 181 | ​ | ​ | 8,306 | ​ | ​ | 747 | ​ | ​ | (854) | ​ | ​ | 336 | ​ | ​ | 8,716 | ​
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Northwood, Ohio | ​ | ​ | 171 | ​ | ​ | 7,383 | ​ | ​ | 759 | ​ | ​ | — | ​ | ​ | 334 | ​ | ​ | 8,647 | ​
TOTALS FOR 2022 | ​ | $ | 6,008 | ​ | $ | 48,257 | ​ | $ | 4,322 | ​ | $ | (2,006) | ​ | $ | 670 | ​ | $ | 57,251 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pureon, Inc. | ​ |  |  |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​
Monroe, North Carolina | ​ | $ | 897 | ​ | $ | 5,106 | ​ | $ | 1,057 | ​ | $ | — | ​ | $ | — | ​ | $ | 7,060 | ​
Multi-tenant | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lehigh Acres, Florida | ​ | ​ | 1,934 | ​ | ​ | 7,393 | ​ | ​ | 701 | ​ | ​ | (596) | ​ | ​ | — | ​ | ​ | 9,432 | ​
Home Depot USA, Inc. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Omaha, Nebraska | ​ | ​ | 1,001 | ​ | ​ | 6,547 | ​ | ​ | 530 | ​ | ​ | (36) | ​ | ​ | — | ​ | ​ | 8,042 | ​
TOTALS FOR 2021 | ​ | $ | 3,832 | ​ | $ | 19,046 | ​ | $ | 2,288 | ​ | $ | (632) | ​ | $ | — | ​ | $ | 24,534 | ​
​ The following table details the market capitalization and discount rates associated with the assessment of the fair value of the related lease and mortgage intangibles for the Company’s acquisition of real estate:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Discount Rate (a)
Year | ​ | ​ | ​ | Market Cap | ​ | Lease | ​ | Mortgage
Acquired | ​ | Description of Industrial Property | ​ | Rate (a) | ​ | Intangible | ​ | Intangible
2022 | ​ | Conditioned Air Company of Naples LLC | ​ | 5.50% | ​ | 5.60% | ​ | —
​ | ​ | Fort Myers, Florida | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ | Q.E.P. Co., Inc. | ​ | 5.00% | ​ | 5.69% | ​ | —
​ | ​ | Dalton, Georgia | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ | Multi-tenant | ​ | 6.25% | ​ | 6.63% | (b) | —
​ | ​ | Hillside, Illinois | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ | Curaleaf, Inc. | ​ | 5.25% | ​ | 5.88% | ​ | —
​ | ​ | Lexington, Kentucky | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ | Multi-tenant | ​ | 6.75% | ​ | 5.60% | ​ | 5.75%
​ | ​ | Northwood, Ohio | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ | Multi-tenant | ​ | 6.75% | ​ | 5.60% | ​ | 5.75%
​ | ​ | Northwood, Ohio | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2021 | ​ | Pureon, Inc. | ​ | 7.00% | ​ | 6.08% | ​ | —
​ | ​ | Monroe, North Carolina | ​ | ​ | ​ | ​ | ​ | ​
2021 | ​ | Multi-tenant | ​ | 6.75% | ​ | 5.60% | ​ | —
​ | ​ | Lehigh Acres, Florida | ​ | ​ | ​ | ​ | ​ | ​
2021 | ​ | Home Depot USA, Inc. | ​ | 6.25% | ​ | 6.16% | ​ | —
​ | ​ | Omaha, Nebraska | ​ | ​ | ​ | ​ | ​ | ​
(a) | The fair value of the tangible and intangible leases and mortgage was assessed as of the acquisition date using an income approach and estimated cash flow projections which utilize an appropriate market capitalization rate and discount rate which is categorized as a Level 3 unobservable input in the fair value hierarchy (as defined in Note 2).
(b) | Represents the weighted average discount rate of the warehouse lease (i.e., 5.77%) and the office lease (i.e., 9.03%).
NOTE 4—REAL ESTATE INVESTMENTS (CONTINUED) ​ The following table details information regarding the acquired intangibles related to the Company’s acquisitions of real estate during the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | December 31, 2022 | ​ | ​ | December 31, 2021
​ | ​ | ​ | Intangible | ​ | ​ | Intangible
​ | ​ | ​ | Lease Assets | ​ | ​ | Mortgage Asset (a) | ​ | ​ | Lease Liabilities | ​ | ​ | Lease Assets | ​ | ​ | Mortgage Asset | ​ | ​ | Lease Liabilities
Weighted average amortization (years) | ​ | ​ | 6.1 | ​ | ​ | 7.1 | ​ | ​ | 8.8 | ​ | ​ | 4.1 | ​ | ​ | n/a | ​ | ​ | 8.2
Accumulated amortization (in thousands) | ​ | $ | 23,506 | ​ | $ | 12 | ​ | $ | 5,061 | ​ | $ | 25,892 | ​ | $ | n/a | ​ | $ | 8,968
​
(a) | In connection with the assumption of a below-market mortgage in 2022 upon the acquisition of the Northwood, Ohio properties (“Northwood mortgage intangible”).
​ The following table details the amortization of acquired intangibles and the classification in the Company’s consolidated statements of income for the periods indicated (amounts in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Year Ended December 31, | ​ | ​
​ | 2022 | ​ | 2021 | ​ | 2020 | ​ | Classification
Intangible lease assets/liabilities | $ | 831 | ​ | $ | 785 | ​ | $ | 780 | ​ | Rental income, net
Tenant origination costs | ​ | 4,722 | ​ | ​ | 4,700 | ​ | ​ | 4,617 | ​ | Depreciation and amortization
Intangible mortgage asset (a) | ​ | 12 | ​ | ​ | n/a | ​ | ​ | n/a | ​ | Interest expense
(a) | In connection with the Northwood mortgage intangible.
​ As of December 31, 2022, the future amortization of the Company’s acquired intangibles are as follows (amounts in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
For the year ended December 31, | ​ | Intangible Lease Assets (a) | ​ | ​ | Tenant Origination Costs (b) | ​ | ​ | Intangible Mortgage Asset (c) | ​ | ​ | Intangible Lease Liabilities (d) | ​
2023 | $ | 286 | ​ | $ | 4,561 | ​ | $ | 93 | ​ | $ | 1,162 | ​
2024 |  | 214 | ​ |  | 3,183 | ​ |  | 93 | ​ |  | 940 | ​
2025 |  | 188 | ​ |  | 2,684 | ​ |  | 93 | ​ |  | 718 | ​
2026 |  | 150 | ​ |  | 2,520 | ​ |  | 93 | ​ |  | 711 | ​
2027 |  | 92 | ​ |  | 1,844 | ​ |  | 93 | ​ |  | 763 | ​
Thereafter |  | 334 | ​ |  | 3,785 | ​ |  | 193 | ​ |  | 6,831 | ​
Total | $ | 1,264 | ​ | $ | 18,577 | ​ | $ | 658 | ​ | $ | 11,125 | ​
(a) | The result of acquired above-market leases and will be deducted from rental income through 2032.
(b) | The result of acquired in-place leases and will be charged to Depreciation and amortization expense through 2055.
(c) | In connection with the Northwood mortgage intangible and will be charged to interest expense through 2030.
(d) | The result of acquired below-market leases and will be added to rental income through 2055.

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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 https://asc.fasb.org/extlink&oid=6911878&loc=d3e8732-128492 + Details
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