XML 46 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Real Estate Assets and Lease Intangibles (Tables)
 9 Months Ended
Sep. 30, 2012
Real Estate Assets Held for Development and Sale [Abstract]  
Real Estate Properties Owned [Table Text Block]
3. REAL ESTATE ASSETS AND LEASE INTANGIBLES
             
A summary of the properties owned by the Company as of September 30, 2012 is as follows:
  
             
           Real estate
   Date    Square Property assets, net
 Property Name Acquired Location  Footage  Description (in thousands)
 Havana/Parker Complex  June 2006 Aurora, Colorado 114,000 Office   5,268.1
 Garden Gateway Plaza  March 2007 Colorado Springs, Colorado 115,052 Office   12,627.5
 World Plaza  September 2007 San Bernardino, California 55,098 Retail   6,908.1
 Regatta Square  October 2007 Denver, Colorado 5,983 Retail   1,989.0
 Sparky’s Palm Self-Storage  November 2007 Highland, California 50,250 Self-Storage   4,514.6
 Sparky’s Joshua Self-Storage  December 2007 Hesperia, California 149,750 Self-Storage   7,026.5
 Executive Office Park  July 2008 Colorado Springs, Colorado 65,084 Office   8,568.6
 Pacific Oaks Plaza  September 2008 Escondido, California 16,000 Office   4,458.3
 Morena Office Center  January 2009 San Diego, California 26,784 Office   5,935.6
 Fontana Medical Plaza  February 2009 Fontana, California 10,500 Office   2,071.2
 Rangewood Medical Office Building  March 2009 Colorado Springs, Colorado 18,222 Office   2,361.4
 Sparky’s Thousand Palms Self-Storage  August 2009 Thousand Palms, California 113,126 Self-Storage   5,724.6
 Sparky’s Hesperia East Self-Storage  December 2009 Hesperia, California 72,940 Self-Storage   2,703.3
 Sparky’s Rialto Self-Storage  May 2010 Rialto, California 101,343 Self-Storage   5,067.5
 Genesis Plaza  August 2010 San Diego, California 57,685 Office   9,266.8
 Dakota Bank Buildings May 2011 Fargo, North Dakota 119,749 Office   8,823.3
 Yucca Valley Retail Center September 2011 Yucca Valley, California 103,596 Retail   7,591.2
 Sparky’s Sunrise Self-Storage  December 2011 Hesperia, California 93,851 Self-Storage   2,203.3
 Port of San Diego Complex December 2011 San Diego, California 146,700 Industrial   14,351.9
 Shoreline Medical Building May 2012 Half Moon Bay, California 15,335 Office   6,304.0
             
             
  NetREIT, Inc properties           123,764.8
       Homes     
 Model home properties  Various in  CA, AZ, WA, TX, SC,       
  held in limited partnerships 2009-2012 NC and NJ  66 Residential   18,677.1
             
             
 Model home properties  Various in          
  held in income and investment funds 2003-2008, CA, AZ, TX, WA, OH,        
   2010 & 2011 NC, NV, NJ and MI 21 Residential   5,967.5
             
             
  Model home properties           24,644.6
             
     Total real estate assets and lease intangibles, net $ 148,409.4
             

A summary of the properties owned by the Company as of December 31, 2011 is as follows:
  
             
           Real estate
   Date    Square Property assets, net
 Property Name Acquired Location  Footage Description (in thousands)
 Havana/Parker Complex  June 2006 Aurora, Colorado 114,000 Office   5,399.5
 Garden Gateway Plaza  March 2007 Colorado Springs, Colorado 115,052 Office   13,008.6
 World Plaza  September 2007 San Bernardino, California 55,098 Retail   6,933.7
 Regatta Square  October 2007 Denver, Colorado 5,983 Retail   2,027.6
 Sparky’s Palm Self-Storage  November 2007 Highland, California 50,250 Self-Storage   4,598.9
 Sparky’s Joshua Self-Storage  December 2007 Hesperia, California 149,750 Self-Storage   7,155.8
 Executive Office Park  July 2008 Colorado Springs, Colorado 65,084 Office   8,710.1
 Pacific Oaks Plaza  September 2008 Escondido, California 16,000 Office   4,536.2
 Morena Office Center  January 2009 San Diego, California 26,784 Office   5,918.8
 Fontana Medical Plaza  February 2009 Fontana, California 10,500 Office   2,118.4
 Rangewood Medical Office Building  March 2009 Colorado Springs, Colorado 18,222 Office   2,407.3
 Sparky’s Thousand Palms Self-Storage  August 2009 Thousand Palms, California 113,126 Self-Storage   5,832.4
 Sparky’s Hesperia East Self-Storage  December 2009 Hesperia, California 72,940 Self-Storage   2,724.8
 Sparky’s Rialto Self-Storage  May 2010 Rialto, California 101,343 Self-Storage   5,144.7
 Genesis Plaza  August 2010 San Diego, California 57,685 Office   9,428.2
 Dakota Bank Buildings May 2011 Fargo, North Dakota 119,749 Office   9,287.0
 Yucca Valley Retail Center September 2011 Yucca Valley, California 85,996 Retail   6,687.6
 Sparky’s Sunrise Self-Storage  December 2011 Hesperia, California 93,851 Self-Storage   2,207.2
 Port of San Diego Complex December 2011 San Diego, California 146,700 Industrial   14,500.0
             
  NetREIT, Inc properties           118,626.8
             
 Model home properties  Various in    Homes     
  held in limited partnerships 2009, 2010  CA, AZ, OR, WA, TX, SC, 59 Residential   10,027.9
   & 2011 NC, ID and FL       
             
 Model home properties  Various in          
  held in income and investment funds 2003-2008, TX, WA, OH, NC,       
   2010 & 2011 NV, CA, NJ and MI 19 Residential   4,681.5
             
             
  Model home properties           14,709.4
             
     Total real estate assets and lease intangibles, net $ 133,336.2
             
Real Estate Disclosure [Text Block]
  The following table sets forth the components of the Company’s real estate assets:
        
    September 30,  December 31,
    2012  2011
  Land $ 37,075,489 $ 34,330,356
  Buildings and other   117,245,115   102,090,547
  Tenant improvements   6,025,708   5,547,091
  Lease intangibles  4,088,501   3,869,501
     164,434,813   145,837,495
  Less:     
  Accumulated depreciation and amortization   (16,025,374)   (12,501,281)
  Real estate assets, net $ 148,409,439 $ 133,336,214
Real Estate By Major Property Class [Table Text Block]
The Company allocated the purchase price of the properties acquired during the nine months ended September 30, 2012.
as follows:
              Total    
     Buildings In-placeLeasing Purchase     
  Land and other Leases Costs Price     
                     
Rite Aid$ 366,000 $ 759,000 $ - $ - $ 1,125,000     
                     
Shoreline                   
 Medical Building  1,820,000   4,311,000   83,000   136,000   6,350,000     
                     
Model Home                    
 Properties  1,146,525   12,430,993   -   -   13,577,518     
                     
                     
The Company allocation of the properties sold during the nine months ended September 30, 2012 as follows:
                     
                    
     Buildings Total           
   Land and other  Cost           
                     
Model Home                    
 Properties$ 892,563 $ 6,100,079 $ 6,992,642           
                     
                     
The Company allocated the purchase price of the properties acquired during the year ended December 31, 2011 as follows:
 
                 Above  
        Tenant       and BelowTotal
     Buildings Improve-  In-place Leasing Market Purchase
   Land and other  ments  Leases  Costs  LeasesPrice
                     
Dakota Bank                    
 Buildings$ 832,000 $ 8,123,461 $ - $ 131,982 $ 45,186 $ 442,371$ 9,575,000
                     
Yucca Valley                    
 Retail Center  2,445,331   3,549,162   520,485   819,979   -   (567,257)  6,767,700
                     
Sparky’s Sunrise                    
 Self-Storage   1,123,000   1,077,000   -   -   -   -  2,200,000
                     
Port of San Diego                   
  Complex  9,613,000   4,078,816   141,373   29,470   128,448   508,893  14,500,000
                     
Model Home                    
 Properties  2,012,217   9,633,813   -   -   -   -  11,646,030
                     
The Company allocation of the properties sold during the year ended December 31, 2011 as follows:
 
                    
     Buildings Total           
   Land and other  Cost           
                     
Model Home                    
 Properties$ 1,094,267 $ 7,331,915 $ 8,426,182           
                     
ScheduleOfPropertySubjectToOrAvailableForOperatingLeaseTextBlock
Lease Intangibles
                   
The following table summarizes the net value of other intangible assets and the accumulated amortization for each
class of intangible asset:
   September 30, 2012  December 31, 2011
         Lease        Lease
   Lease  Accumulated  intangibles,  Lease  Accumulated  intangibles,
   intangibles   amortization   net   intangibles   amortization   net
In-place leases $ 1,852,897 $ (1,074,925) $ 777,972 $ 1,769,897 $ (786,690) $ 983,207
Leasing costs   1,130,184   (668,909)   461,275   994,184   (274,414)   719,770
Tenant                 
 relationships 332,721   (332,721)   -   332,721   (332,721)   -
Below-market                 
 leases (841,425)   30,403   (811,022)   (841,425)   9,296   (832,129)
Above-market                 
 leases 1,614,124   (721,206)   892,918   1,614,124   (347,317)   1,266,807
                   
  $ 4,088,501 $ (2,767,358) $ 1,321,143 $ 3,869,501 $ (1,731,846) $ 2,137,655
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
As of September 30, 2012, the estimated aggregate amortization expense for three months ending
December 31, "&L15&"" and each of the five succeeding fiscal years and thereafter is as follows:
   Estimated
   Aggregate
   Amortization
   Expense
Three month period ending December 31, 2012 $ 238,741
2013   589,536
2014   512,357
2015   363,586
2016   107,636
Thereafter (principally below market rent amortization)   (490,713)
  $ 1,321,143
    
The weighted average amortization period for the intangible assets, in-place leases, leasing costs, tenant
relationships and below-market leases acquired as of September 30, 2012 was 19.5 years.