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Real Estate Assets and Lease Intangibles | 3 Months Ended
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Mar. 31, 2014
Real Estate Assets and Lease Intangibles [Abstract] |
Real Estate Assets and Lease Intangibles | 3. REAL ESTATE ASSETS AND LEASE INTANGIBLES A summary of the properties owned by the Company as of March 31, 2014 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 |  | $ | 3,435.0 |
Garden Gateway Plaza | March 2007 | Colorado Springs, Colorado |  |  | 115,052 |  | Office |  |  | 12,408.1 |
World Plaza | September 2007 | San Bernardino, California |  |  | 55,098 |  | Retail |  |  | 6,649.1 |
Regatta Square | October 2007 | Denver, Colorado |  |  | 5,983 |  | Retail |  |  | 1,926.5 |
Sparky's Palm Self-Storage | November 2007 | Highland, California |  |  | 50,250 |  | Self-Storage |  |  | 4,348.8 |
Sparky's Joshua Self-Storage | December 2007 | Hesperia, California |  |  | 149,750 |  | Self-Storage |  |  | 6,772.4 |
Executive Office Park | July 2008 | Colorado Springs, Colorado |  |  | 65,084 |  | Office |  |  | 8,360.0 |
Waterman Plaza | August 2008 | San Bernardino, California |  |  | 21,170 |  | Retail |  |  | 6,092.3 |
Pacific Oaks Plaza | September 2008 | Escondido, California |  |  | 16,000 |  | Office |  |  | 4,355.6 |
Morena Office Center | January 2009 | San Diego, California |  |  | 26,784 |  | Office |  |  | 5,619.6 |
Fontana Medical Plaza | February 2009 | Fontana, California |  |  | 10,500 |  | Office |  |  | 1,958.5 |
Rangewood Medical Office Building | March 2009 | Colorado Springs, Colorado |  |  | 18,222 |  | Office |  |  | 2,282.4 |
Sparky's Thousand Palms Self-Storage | August 2009 | Thousand Palms, California |  |  | 113,126 |  | Self-Storage |  |  | 5,473.2 |
Sparky's Hesperia East Self-Storage | December 2009 | Hesperia, California |  |  | 72,940 |  | Self-Storage |  |  | 2,647.1 |
Sparky's Rialto Self-Storage | May 2010 | Rialto, California |  |  | 101,343 |  | Self-Storage |  |  | 4,758.6 |
Genesis Plaza | August 2010 | San Diego, California |  |  | 57,685 |  | Office |  |  | 8,766.1 |
Dakota Bank Buildings | May 2011 | Fargo, North Dakota |  |  | 119,749 |  | Office |  |  | 10,078.4 |
Yucca Valley Retail Center | September 2011 | Yucca Valley, California |  |  | 103,596 |  | Retail |  |  | 7,273.2 |
Sparky's Sunrise Self-Storage | December 2011 | Hesperia, California |  |  | 93,851 |  | Self-Storage |  |  | 2,158.0 |
Port of San Diego Complex | December 2011 | San Diego, California |  |  | 146,700 |  | Industrial |  |  | 14,051.7 |
Shoreline Medical Building | May 2012 | Half Moon Bay, California |  |  | 15,335 |  | Office |  |  | 6,097.2 |
The Presidio | November 2012 | Colorado Springs, Colorado |  |  | 80,800 |  | Office |  |  | 6,898.1 |
Sparky's Lancaster Self-Storage | May 2013 | Lancaster, CA |  |  | 71,000 |  | Self-Storage |  |  | 3,640.7 |
NetREIT, Inc properties |  |  |  |  |  |  |  |  |  | 136,050.6 |
|  |  |  | Homes |  |  |  |  |  |
Model Home properties held in limited partnerships | Various in 2009-2013 | CA, AZ, WA, TX, SC, NC and NJ |  |  | 63 |  | Residential |  |  | 16,878.8 |
Model Home properties held in income and investment funds | Various in 2010 - 2013 | CA, AZ, TX, SC, PA, NJ |  |  | 18 |  | Residential |  |  | 5,836.0 |
Model Home properties |  |  |  |  |  |  |  |  |  | 22,714.8 |
|  | Total real estate assets and lease intangibles, net |  | $ | 158,765.4 |
The following table sets forth the components of the Company's real estate assets:
|  | March 31, 2014 |  |  | December 31, 2013 |
Land |  | $ | 41,785,890 |  |  | $ | 41,882,217 |
Buildings and other |  |  | 128,524,460 |  |  |  | 128,085,648 |
Tenant improvements |  |  | 7,380,015 |  |  |  | 7,344,151 |
Lease intangibles |  |  | 4,569,854 |  |  |  | 4,569,854 |
|  |  | 182,260,219 |  |  |  | 181,881,870 |
Less: |  |  |  |  |  |  |  |
Accumulated depreciation and amortization |  |  | (23,494,789 | ) |  |  | (22,426,708 | )
Real estate assets, net |  | $ | 158,765,430 |  |  | $ | 159,455,162 |
Operations from each property are included in the Company's condensed consolidated financial statements from the date of acquisition. Recent Acquisitions In February 2014, NetREIT Dubose, Dubose Model Home Investors #201 LP and Dubose Model Home Investors #202 LP acquired six Model Home properties in Pennsylvania and leased it back to the home builder. The purchase price for the properties was $1.8 million. The purchase price paid was through a cash payment of $0.7 million and a promissory note $1.1 million. Recent Dispositions During the three months ended March 31, 2014, NetREIT Dubose and the other Model Home entities disposed of six Model Home properties. The sales price, net of selling costs, aggregated approximately $2.4 million and approximately $1.1 million in mortgage notes payable were retired in connection with these sales. The Company recognized a gain of $425,000 related to the sale of these Model Homes. The Company allocated the purchase price of the properties acquired during the three months ended March 31, 2014 as follows:
|  | Land |  |  | Buildings and other |  |  | Total Purchase Price |
Model Home Properties |  | $ | 371,300 |  |  | $ | 1,410,000 |  |  | $ | 1,781,300 |
The Company allocation of the properties sold during the three months ended March 31, 2014 is as follows:
|  | Land |  |  | Buildings and other |  |  | Total Purchase Price |
Model Home Properties |  | $ | 431,877 |  |  | $ | 1,313,542 |  |  | $ | 1,745,419 |
Lease Intangibles The following table summarizes the net value of other intangible assets and the accumulated amortization for each class of intangible asset:
|  | March 31, 2014 |  |  | December 31, 2013 |
|  | Lease intangibles |  |  | Accumulated amortization |  |  | Lease intangibles net |  |  | Lease intangibles |  |  | Accumulated amortization |  |  | Lease intangibles net |
In-place leases |  | $ | 2,015,459 |  |  | $ | (1,552,356 | ) |  | $ | 463,103 |  |  | $ | 2,015,459 |  |  | $ | (1,493,808 | ) |  | $ | 521,651 |
Leasing costs |  |  | 1,448,985 |  |  |  | (1,040,464 | ) |  |  | 408,521 |  |  |  | 1,448,985 |  |  |  | (999,444 | ) |  |  | 449,541 |
Tenant relationships |  |  | 332,721 |  |  |  | (332,721 | ) |  |  | - |  |  |  | 332,721 |  |  |  | (332,721 | ) |  |  | - |
Below-market leases |  |  | (841,425 | ) |  |  | 72,475 |  |  |  | (768,950 | ) |  |  | (841,425 | ) |  |  | 65,463 |  |  |  | (775,962 | )
Above-market leases |  |  | 1,614,114 |  |  |  | (1,064,592 | ) |  |  | 549,522 |  |  |  | 1,614,114 |  |  |  | (1,018,516 | ) |  |  | 595,598 |
|  | $ | 4,569,854 |  |  | $ | (3,917,658 | ) |  | $ | 652,196 |  |  | $ | 4,569,854 |  |  | $ | (3,779,026 | ) |  | $ | 790,828 |
As of March 31, 2014, the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter is as follows:
|  | Estimated Aggregate Amortization Expense |
Nine months remaining in 2014 |  | $ | 393,674 |
2015 |  |  | 388,282 |
2016 |  |  | 157,215 |
2017 |  |  | 53,591 |
2018 |  |  | 31,265 |
Thereafter (principally below market rent amortization) |  |  | (371,831 | )
|  | $ | 652,196 |
The weighted average amortization period for the intangible assets, in-place leases, leasing costs, tenant relationships and below-market leases acquired as of March 31, 2014 was 14.8 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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