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Real Estate Assets and Lease Intangibles | 6 Months Ended
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Jun. 30, 2013
Real Estate and Accumulated Depreciation Disclosure [Abstract] |
Real Estate and Accumulated Depreciation Disclosure [Text Block] |
3. REAL ESTATE ASSETS AND LEASE INTANGIBLES
A summary of the properties owned by the Company as of June 30, 2013 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 |  |  | 5,130.7
| Garden Gateway Plaza |  | March 2007 |  | Colorado Springs, Colorado |  | 115,052 |  | Office |  |  | 12,260.5
| World Plaza |  | September 2007 |  | San Bernardino, California |  | 55,098 |  | Retail |  |  | 6,741.4
| Regatta Square |  | October 2007 |  | Denver, Colorado |  | 5,983 |  | Retail |  |  | 1,955.4
| Sparky’s Palm Self-Storage |  | November 2007 |  | Highland, California |  | 50,250 |  | Self-Storage |  |  | 4,431.6
| Sparky’s Joshua Self-Storage |  | December 2007 |  | Hesperia, California |  | 149,750 |  | Self-Storage |  |  | 6,901.4
| Executive Office Park |  | July 2008 |  | Colorado Springs, Colorado |  | 65,084 |  | Office |  |  | 8,462.3
| Waterman Plaza |  | August 2008 |  | San Bernardino, California |  | 21,170 |  | Retail |  |  | 6,203.6
| Pacific Oaks Plaza |  | September 2008 |  | Escondido, California |  | 16,000 |  | Office |  |  | 4,377.2
| Morena Office Center |  | January 2009 |  | San Diego, California |  | 26,784 |  | Office |  |  | 6,040.9
| Fontana Medical Plaza |  | February 2009 |  | Fontana, California |  | 10,500 |  | Office |  |  | 2,014.9
| Rangewood Medical Office Building |  | March 2009 |  | Colorado Springs, Colorado |  | 18,222 |  | Office |  |  | 2,294.6
| Sparky’s Thousand Palms Self-Storage |  | August 2009 |  | Thousand Palms, California |  | 113,126 |  | Self-Storage |  |  | 5,616.8
| Sparky’s Hesperia East Self-Storage |  | December 2009 |  | Hesperia, California |  | 72,940 |  | Self-Storage |  |  | 2,675.0
| Sparky’s Rialto Self-Storage |  | May 2010 |  | Rialto, California |  | 101,343 |  | Self-Storage |  |  | 4,830.5
| Genesis Plaza |  | August 2010 |  | San Diego, California |  | 57,685 |  | Office |  |  | 8,927.5
| Dakota Bank Buildings |  | May 2011 |  | Fargo, North Dakota |  | 119,749 |  | Office |  |  | 9,483.6
| Yucca Valley Retail Center |  | September 2011 |  | Yucca Valley, California |  | 103,596 |  | Retail |  |  | 7,331.8
| Sparky’s Sunrise Self-Storage |  | December 2011 |  | Hesperia, California |  | 93,851 |  | Self-Storage |  |  | 2,180.7
| Port of San Diego Complex |  | December 2011 |  | San Diego, California |  | 146,700 |  | Industrial |  |  | 14,231.3
| Shoreline Medical Building |  | May 2012 |  | Half Moon Bay, California |  | 93,851 |  | Office |  |  | 6,200.6
| The Presidio |  | November 2012 |  | Aurora, Colorado |  | 146,700 |  | Office |  |  | 7,006.3
| Sparky’s Lancaster Self-Storage |  | May 2013 |  | Lancaster, California |  | 71,000 |  | Self-Storage |  |  | 3,649.2
| NetREIT, Inc properties |  |  |  |  |  |  |  |  |  |  | 138,947.8
|  |  |  |  |  |  | Homes |  |  |  |  |
| Model Home properties |  | Various in |  | CA, AZ, WA, TX, NC |  |  |  |  |  |  |
| held in limited partnerships |  | 2009-2013 |  | FL and NJ |  | 64 |  | Residential |  |  | 18,458.6
| Model Home properties |  | Various in |  |  |  |  |  |  |  |  |
| held in income and investment funds |  | 2003-2008, |  |  |  |  |  |  |  |  |
|  |  | 2010-2013 |  | CA, AZ, TX, SC, PA, NJ |  | 17 |  | Residential |  |  | 6,093.2
| Model Home properties |  |  |  |  |  |  |  |  |  |  | 24,551.8
|  |  |  |  | Total real estate assets and lease intangibles, net |  | $ | 163,499.6
|  | The following table sets forth the components of the Company’s real estate assets:
|  |  |  | June 30, |  |  | December 31,
|  |  |  | 2013 |  |  | 2012
|  | Land | $ | 41,959,869 |  | $ | 41,617,925
|  | Buildings and other |  | 129,971,223 |  |  | 130,471,526
|  | Tenant improvements |  | 7,252,006 |  |  | 7,112,494
|  | Lease intangibles |  | 4,569,854 |  |  | 4,569,854
|  |  |  | 183,752,952 |  |  | 183,771,799
|  | Less: |  |  |  |  |
|  | Accumulated depreciation and amortization |  | (20,253,398) |  |  | (18,133,080)
|  | Real estate assets, net | $ | 163,499,554 |  | $ | 165,638,719
The Company allocated the purchase price of the properties acquired during the six months ended June 30, 2013
| as follows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  | Total |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Buildings | Purchase |  |  |  |  |  |  |  |  |  |  |
|  | Land |  | and other | Price |  |  |  |  |  |  |  |  |  |  |
Sparky's Lancaster |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Self-Storage | $ | 949,000 |  | $ | 2,701,000 |  | $ | 3,650,000 |  |  |  |  |  |  |  |  |  |  |
Model Home |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Properties |  | 181,350 |  |  | 958,365 |  |  | 1,139,715 |  |  |  |  |  |  |  |  |  |  |
The Company allocation of the properties sold during the six months ended June 30, 2013 is as follows:
|  |  |  |  | Buildings |  | Total |  |  |  |  |  |  |  |  |  |  |
|  |  | Land |  | and other |  | Cost |  |  |  |  |  |  |  |  |  |  |
Model Home |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Properties | $ | 365,140 |  | $ | 3,085,260 |  | $ | 3,450,400 |  |  |  |  |  |  |  |  |  |  |
Casa Grande |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Apartments |  | 220,572 |  |  | 1,190,822 |  |  | 1,411,394 |  |  |  |  |  |  |  |  |  |  |
The Company allocated the purchase price of the properties acquired during the year ended December 31, 2012
| as follows: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | Tenant |  |  |  |  |  |  | Total |
|  |  |  |  | Buildings |  | Improve- | In-place | Leasing |  | Purchase |
|  |  | Land |  | and other |  | ments | 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 |  |
The Presidio |  | 1,325,000 |  |  | 4,969,400 |  |  | 816,500 |  |  | 27,400 |  |  | 136,700 |  |  | 7,275,000 |  |
Model Home |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Properties |  | 1,923,852 |  |  | 15,214,443 |  |  | - |  |  | - |  |  | - |  |  | 17,138,295 |  |
The Company allocation of the properties sold during the year ended December 31, 2012 is as follows:
|  |  |  |  | Buildings |  | Total |  |  |  |  |  |  |  |  |  |  |
|  |  | Land |  | and other |  | Cost |  |  |  |  |  |  |  |  |  |  |
Model Home |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Properties | $ | 1,213,417 |  | $ | 8,196,975 |  | $ | 9,410,392 |  |  |  |  |  |  |  |  |  |  |
Rialto land |  | 159,775 |  |  | - |  |  | 159,775 |  |  |  |  |  |  |  |  |  |  |
7-Eleven |  | 553,359 |  |  | 714,680 |  |  | 1,268,039 |  |  |  |  |  |  |  |  |  |  |
Lease Intangibles
The following table summarizes the net value of other intangible assets and the accumulated amortization for each
class of intangible asset:
|  |  | June 30, 2013 |  |  | December 31, 2012
|  |  |  |  |  |  |  |  | Lease |  |  |  |  |  |  |  |  | Lease
|  |  | Lease |  |  | Accumulated |  |  | intangibles, |  |  | Lease |  |  | Accumulated |  |  | intangibles,
|  |  | intangibles |  |  | amortization |  |  | net |  |  | intangibles |  |  | amortization |  |  | net
In-place leases | $ | 2,015,459 |  | $ | (1,373,591) |  | $ | 641,868 |  | $ | 2,015,459 |  | $ | (1,229,792) |  | $ | 785,667
Leasing costs |  | 1,448,985 |  |  | (913,003) |  |  | 535,982 |  |  | 1,448,985 |  |  | (807,816) |  |  | 641,169
Tenant |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| relationships | 332,721 |  |  | (332,721) |  |  | - |  |  | 332,721 |  |  | (332,721) |  |  | -
Below-market |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| leases | (841,425) |  |  | 51,439 |  |  | (789,986) |  |  | (841,425) |  |  | 37,415 |  |  | (804,010)
Above-market |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| leases | 1,614,114 |  |  | (924,676) |  |  | 689,438 |  |  | 1,614,114 |  |  | (821,947) |  |  | 792,167
|  | $ | 4,569,854 |  | $ | (3,492,552) |  | $ | 1,077,302 |  | $ | 4,569,854 |  | $ | (3,154,861) |  | $ | 1,414,993
As of June 30, 2013, the estimated aggregate amortization expense for
each of the five succeeding fiscal years and thereafter is as follows:
|  |  | Estimated
|  |  | Aggregate
|  |  | Amortization
|  |  | Expense
Six month period ending December 31, 2013 |  | $ | 286,473
2014 |  |  | 532,314
2015 |  |  | 388,282
2016 |  |  | 157,215
2017 |  |  | 53,591
Thereafter (principally below market rent amortization) |  |  | (340,573)
|  | $ | 1,077,302
The weighted average amortization period for the intangible assets, in-place leases, leasing costs, tenant
relationships and below-market leases acquired as of June 30, 2013 was 13.9 years.

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- Definition The entire disclosure for real estate and accumulated depreciation. This may include a schedule that describes the property and lists the initial cost of land, buildings and improvements, improvements and carrying costs capitalized after acquisition, and the total carrying cost for land, buildings and improvements for each property and in aggregate. The schedule also lists the accumulated depreciation for each property and in aggregate, the date each property was constructed and acquired, the useful life used to calculate depreciation and any encumbrances on the properties. The entity provides a reconciliation of the carrying amount of real estate from the beginning of the period to the end of the period. Any real estate investments that have been written down or reserved against are described, including the basis of the write-down. A material amount of intercompany profit in the total carrying amount of real estate is disclosed. The aggregate cost of all real estate investments for federal income tax purposes is also disclosed. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule III -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 28 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -SubTopic 360 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-28) -URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule III) -URI http://asc.fasb.org/extlink&oid=6882300&loc=d3e5864-122674 + Details
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