3. REAL ESTATE ASSETS AND LEASE INTANGIBLES

A summary of the properties owned by the Company as of December 31, 2013 is as follows:

Property Name	Date Acquired	Location	Square Footage		Property Description	Real Estate Assets, Net (in thousands)
Havana/Parker Complex	June 2006	Aurora, Colorado		114,000	Office	$	3,510.2
Garden Gateway Plaza	March 2007	Colorado Springs, Colorado		115,052	Office		12,390.9
World Plaza	September 2007	San Bernardino, California		55,098	Retail		6,700.2
Regatta Square	October 2007	Denver, Colorado		5,983	Retail		1,936.1
Sparky's Palm Self-Storage	November 2007	Highland, California		50,250	Self-Storage		4,376.4
Sparky's Joshua Self-Storage	December 2007	Hesperia, California		149,750	Self-Storage		6,815.3
Executive Office Park	July 2008	Colorado Springs, Colorado		65,084	Office		8,401.3
Waterman Plaza	August 2008	San Bernardino, California		21,170	Retail		6,128.9
Pacific Oaks Plaza	September 2008	Escondido, California		16,000	Office		4,354.9
Morena Office Center	January 2009	San Diego, California		26,784	Office		5,666.6
Fontana Medical Plaza	February 2009	Fontana, California		10,500	Office		1,977.3
Rangewood Medical Office Building	March 2009	Colorado Springs, Colorado		18,222	Office		2,255.8
Sparky's Thousand Palms Self-Storage	August 2009	Thousand Palms, California		113,126	Self-Storage		5,544.9
Sparky's Hesperia East Self-Storage	December 2009	Hesperia, California		72,940	Self-Storage		2,656.4
Sparky's Rialto Self-Storage	May 2010	Rialto, California		101,343	Self-Storage		4,784.3
Genesis Plaza	August 2010	San Diego, California		57,685	Office		8,860.5
Dakota Bank Buildings	May 2011	Fargo, North Dakota		119,749	Office		9,797.9
Yucca Valley Retail Center	September 2011	Yucca Valley, California		103,596	Retail		7,166.1
Sparky's Sunrise Self-Storage	December 2011	Hesperia, California		93,851	Self-Storage		2,165.6
Port of San Diego Complex	December 2011	San Diego, California		146,700	Industrial		14,134.0
Shoreline Medical Building	May 2012	Half Moon Bay, California		15,335	Office		6,131.6
The Presidio	November 2012	Colorado Springs, Colorado		80,800	Office		6,977.2
Sparky's Lancaster Self-Storage	May 2013	Lancaster, CA		71,000	Self-Storage		3,629.5

NetREIT, Inc. properties							136,361.9
			Homes
Model Home properties held in limited partnerships	Various in 2009-2013	CA, AZ, WA, TX, SC, NC and NJ		61	Residential		17,150.0

Model Home properties held in income and investment funds	Various in 2003-2008, 2010 - 2013	CA, AZ, TX, SC, PA, NJ		16	Residential		5,943.3

Model Home properties							23,093.3

		Total real estate assets and lease intangibles, net				$	159,455.2

A summary of the properties owned by the Company as of December 31, 2012 is as follows:

Property Name	Date Acquired	Location	Square Footage		Property Description	Real Estate Assets, Net (in thousands)
Casa Grande Apartments	April 1999	Cheyenne, Wyoming		29,250	Residential	$	1,381.4
Havana/Parker Complex	June 2006	Aurora, Colorado		114,000	Office		5,262.9
Garden Gateway Plaza	March 2007	Colorado Springs, Colorado		115,052	Office		12,507.2
World Plaza	September 2007	San Bernardino, California		55,098	Retail		6,852.5
Regatta Square	October 2007	Denver, Colorado		5,983	Retail		1,977.6
Sparky's Palm Self-Storage	November 2007	Highland, California		50,250	Self-Storage		4,486.8
Sparky's Joshua Self-Storage	December 2007	Hesperia, California		149,750	Self-Storage		6,983.5
Executive Office Park	July 2008	Colorado Springs, Colorado		65,084	Office		8,544.2
Waterman Plaza	August 2008	San Bernardino, California		21,170	Retail		6,280.3
Pacific Oaks Plaza	September 2008	Escondido, California		16,000	Office		4,430.2
Morena Office Center	January 2009	San Diego, California		26,784	Office		5,887.0
Fontana Medical Plaza	February 2009	Fontana, California		10,500	Office		2,052.5
Rangewood Medical Office Building	March 2009	Colorado Springs, Colorado		18,222	Office		2,335.1
Sparky's Thousand Palms Self-Storage	August 2009	Thousand Palms, California		113,126	Self-Storage		5,688.7
Sparky's Hesperia East Self-Storage	December 2009	Hesperia, California		72,940	Self-Storage		2,693.6
Sparky's Rialto Self-Storage	May 2010	Rialto, California		101,343	Self-Storage		4,882.0
Genesis Plaza	August 2010	San Diego, California		57,685	Office		9,161.5
Dakota Bank Buildings	May 2011	Fargo, North Dakota		119,749	Office		8,732.6
Yucca Valley Retail Center	September 2011	Yucca Valley, California		103,596	Retail		7,503.1
Sparky's Sunrise Self-Storage	December 2011	Hesperia, California		93,851	Self-Storage		2,195.8
Port of San Diego Complex	December 2011	San Diego, California		146,700	Industrial		14,275.1
Shoreline Medical Building	May 2012	Half Moon Bay, California		15,335	Office		6,269.6
The Presidio	November 2012	Aurora, Colorado		80,800	Office		7,237.8

NetREIT, Inc. properties							137,621.0
			Homes
Model Home properties held in limited partnerships	Various in 2009-2012	CA, AZ, WA, TX, SC, NC and NJ		74	Residential		21,552.2

Model Home properties held in income and investment funds	Various in 2003-2008, 2010 & 2011	CA, AZ, TX, SC, PA, NJ		18	Residential		6,465.5

Model Home properties							28,017.7

		Total real estate assets and lease intangibles, net				$	165,638.7

The following table sets forth the components of the Company's real estate assets:

	December 31, 2013			December 31, 2012
Land	$	41,882,217		$	41,617,925
Buildings and other		128,085,648			130,471,526
Tenant improvements		7,344,151			7,112,494
Lease intangibles		4,569,854			4,569,854
		181,881,870			183,771,799
Less:
Accumulated depreciation and amortization		(22,426,708	)		(18,133,080	)
Real estate assets, net	$	159,455,162		$	165,638,719

Operations from each property are included in the Company's consolidated financial statements from the date of acquisition.

The Company acquired the following properties in the year ended December 31, 2013:

In January 2013, NetREIT Dubose and Dubose Model Home Investors #201 LP acquired 4 Model Home properties in Texas and leased them back to the home builder. The purchase price for the properties was approximately $1.1 million. The purchase price paid was through a cash payment of approximately $0.5 million and promissory notes totaling approximately $0.6 million.

In May 2013, the Company acquired a self-storage facility in Lancaster, CA for the purchase price of approximately $3.7 million dollars. The purchase price was paid in cash. The facility is comprised of approximately 71,000 square feet of rentable area consisting of approximately 608 self-storage units. The facility was built in 1990 and was approximately 65 percent occupied at acquisition. The results of operations for the year ended December 31, 2013 includes approximately seven months of operations related to this property.

In July 2013, NetREIT Dubose acquired 1 Model Home property in Texas and leased it back to the home builder. The purchase price for the properties was approximately $0.5 million. The purchase price paid was through a cash payment of approximately $0.2 million and promissory note of approximately $0.3 million.

In October 2013, NetREIT Dubose acquired 2 Model Home properties in Texas and leased them back to the home builder. The purchase price for the properties was approximately $0.6 million. The purchase price paid was through a cash payment of approximately $0.2 million and promissory note of approximately $0.4 million.

In December 2013, NetREIT Dubose acquired 7 Model Home properties in Pennsylvania and leased them back to the home builder. The purchase price for the properties was approximately $2.0 million. The purchase price paid was through a cash payment of approximately $0.9 million and promissory note of approximately $1.1 million.

The Company disposed of the following properties in the year ended December 31, 2013:

NetREIT Dubose and the other Model Home entities disposed of 32 Model Home properties. The sales price, net of selling costs, aggregated approximately $9.8 million and approximately $3.5 million in mortgage notes payable were retired in connection with these sales. The Company recognized a gain of $1,297,753 related to the sale of these Model Homes.

In May 2013, the Company sold its Casa Grande Apartments for a sales price of $1.8 million. The sale resulted in mortgage payoff of $1.3 million and a gain of $322,356.

The Company acquired the following properties in the year ended December 31, 2012:

In January 2012, Dubose Model Home Investors #201 LP acquired one Model Home property in Texas and leased it back to the home builder. The purchase price for the property was $0.38 million. The purchase price paid was through a cash payment of $0.15 million and a promissory note $0.23 million.

In April 2012, NetREIT Dubose and Dubose Model Home Investors #201 LP acquired 19 Model Home properties in California and Arizona and leased them back to the home builder. The purchase price for the properties was approximately $8.2 million. The purchase price paid was through a cash payment of approximately $3.7 million and promissory notes totaling approximately $4.5 million.

In May 2012, the Company acquired the former Rite Aid building in Yucca Valley, California. The building adjoins the Company's Yucca Valley Retail Center purchased in September 2011. The building was purchased vacant as a result of the relocation of Rite Aid. However, the property remains under lease to the tenant for several more years. The purchase price was approximately $1.1 million all paid in cash. The building consists of approximately 17,600 rentable square feet.

In June 2012, the Company acquired the Shoreline Medical Building for the purchase price of approximately $6.4 million. The Property is a two-story medical office building under a single tenant lease that was built in 1980. The land consists of approximately 38,600 square feet with a building on it of approximately 15,335 rentable square feet in Half Moon Bay, California. Half Moon Bay is approximately 25 miles south of San Francisco and 10 miles west of San Mateo. The Company made a down payment of approximately $2.3 million and financed the remainder of the purchase price through a fixed rate mortgage with interest at 5.1%. The interest rate is subject to change at the third and sixth year anniversaries of the loan.

In June 2012, NetREIT Dubose and Dubose Model Home Investors #201 LP acquired 14 Model Home properties in New Jersey and Pennsylvania and leased them back to the home builder. The purchase price for the properties was approximately $5.0 million. The purchase price paid was through a cash payment of approximately $2.0 million and promissory notes totaling approximately $3.0 million.

In October 2012, Dubose Model Home Investors #201 LP acquired 1 Model Home property in Texas and leased it back to the home builder. The purchase price for the property was approximately $365,000. The purchase price paid was through a cash payment of approximately $146,000 and a promissory note of approximately $219,000. At December 31, 2013, this 1 Model Home is under lease contract.

In November 2012, NetREIT 01 LP acquired The Presidio for the purchase price of approximately $7.3 million. The Property is a four-story office building with of approximately 80,800 rentable square feet. The building is approximately 80,800 rentable square feet located in Colorado Springs, Colorado. The Company made a down payment of approximately $1.6 million and financed the remainder of the purchase price through a fixed rate mortgage with interest at 5.6%.

In December 2012, NetREIT Dubose and Dubose Model Home Investors #201 LP acquired 14 Model Home properties in Texas and leased them back to the home builder. The purchase price for the properties was approximately $3.9 million. The purchase price paid was through a cash payment of approximately $2.0 million and promissory notes totaling approximately $1.9 million. At December 31, 2013, these 14 Model Homes are under lease contract.

The Company disposed of the following properties in 2012:

During the year ended December 31, 2012, NetREIT Dubose and the other Model Home entities disposed of thirty-five Model Home properties. The sales price, net of selling costs, aggregated approximately $8.9 million and approximately $1.5 million in mortgage notes payable were retired in connection with these sales. The Company recognized a gain of $260,360 related to the sale of these Model Homes.

In October 2012, the Company sold approximately 40.0%of land adjacent to the Sparky's Rialto Self-Storage. The sales price was $290,000 and after selling costs and the cost of the land, the Company recognized a gain of approximately $103,500.

In October 2012, NetREIT 01 LP sold the 7-Eleven located in Escondido, California. The sales price was approximately $1.9 million and after selling costs and the net book value of the land and building, the Company recognized a gain of approximately $637,900.

The Company allocated the purchase price of the properties acquired during the year ended December 31, 2013 as follows:

	Land			Buildings and other			Total Purchase Price

Sparky's Lancaster Self-Storage		$	949,000		$	2,701,000		$	3,650,000
Model Home Properties			713,630			345,759			1,059,389

The Company allocation of the properties sold during the year ended December 31, 2013 is as follows:

	Land		Buildings and other		Total Cost

Model Home Properties	$	1,183,379	$	7,743,608	$	8,926,987
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:

	Land		Buildings and other		Tenant Improve-ments		In-place Leases		Leasing Costs		Total Purchase 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:

	Land		Buildings and other		Total 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:

	December 31, 2013									December 31, 2012
	Lease intangibles			Accumulated amortization			Lease intangibles, net			Lease intangibles			Accumulated amortization			Lease intangibles, net
In-place leases	$	2,015,459		$	(1,493,808	)	$	521,651		$	2,015,459		$	(1,229,792	)	$	785,667
Leasing costs		1,448,985			(999,444	)		449,541			1,448,985			(807,816	)		641,169
Tenant relationships		332,721			(332,721	)		-			332,721			(332,721	)		-
Below-market leases		(841,425	)		65,463			(775,962	)		(841,425	)		37,415			(804,010	)
Above-market leases		1,614,114			(1,018,516	)		595,598			1,614,114			(821,947	)		792,167
	$	4,569,854		$	(3,779,026	)	$	790,828		$	4,569,854		$	(3,154,861	)	$	1,414,993

As of December 31, 2013, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows:

	Estimated Aggregate Amortization Expense
2014	$	532,314
2015		388,282
2016		157,215
2017		53,591
2018		31,265
Thereafter (principally below market rent amortization)		(371,839	)
	$	790,828

The weighted average amortization period for the intangible assets, in-place leases, leasing costs, tenant relationships and below-market leases acquired as of December 31, 2013 was 14.8 years.