XML 37 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Real Estate Assets and Lease Intangibles (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2014
Real Estate Assets and Lease Intangibles [Abstract] |
Real Estate Properties Owned | A summary of the properties owned by the Company as of September 30, 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 |  | $ | 2,329.6 |
Garden Gateway Plaza | March 2007 | Colorado Springs, Colorado |  |  | 115,052 |  | Office |  |  | 12,208.8 |
World Plaza | September 2007 | San Bernardino, California |  |  | 55,098 |  | Retail |  |  | 6,564.8 |
Regatta Square | October 2007 | Denver, Colorado |  |  | 5,983 |  | Retail |  |  | 1,907.3 |
Sparky's Palm Self-Storage | November 2007 | Highland, California |  |  | 60,865 |  | Self-Storage |  |  | 4,293.7 |
Sparky's Joshua Self-Storage | December 2007 | Hesperia, California |  |  | 151,000 |  | Self-Storage |  |  | 6,696.1 |
Executive Office Park | July 2008 | Colorado Springs, Colorado |  |  | 65,084 |  | Office |  |  | 8,296.1 |
Waterman Plaza | August 2008 | San Bernardino, California |  |  | 21,170 |  | Retail |  |  | 6,029.5 |
Pacific Oaks Plaza | September 2008 | Escondido, California |  |  | 16,000 |  | Office |  |  | 4,315.2 |
Morena Office Center | January 2009 | San Diego, California |  |  | 26,784 |  | Office |  |  | 5,514.2 |
Fontana Medical Plaza | February 2009 | Fontana, California |  |  | 10,500 |  | Office |  |  | 1,920.9 |
Rangewood Medical Office Building | March 2009 | Colorado Springs, Colorado |  |  | 18,222 |  | Office |  |  | 2,374.9 |
Sparky's Thousand Palms Self-Storage | August 2009 | Thousand Palms, California |  |  | 113,126 |  | Self-Storage |  |  | 5,401.4 |
Sparky's Hesperia East Self-Storage | December 2009 | Hesperia, California |  |  | 73,640 |  | Self-Storage |  |  | 2,385.5 |
Sparky's Rialto Self-Storage | May 2010 | Rialto, California |  |  | 101,359 |  | Self-Storage |  |  | 4,707.5 |
Genesis Plaza | August 2010 | San Diego, California |  |  | 57,685 |  | Office |  |  | 8,711.8 |
Dakota Bank Buildings | May 2011 | Fargo, North Dakota |  |  | 119,749 |  | Office |  |  | 10,064.0 |
Yucca Valley Retail Center | September 2011 | Yucca Valley, California |  |  | 103,596 |  | Retail |  |  | 7,283.8 |
Sparky's Sunrise Self-Storage | December 2011 | Hesperia, California |  |  | 93,851 |  | Self-Storage |  |  | 2,149.1 |
Port of San Diego Complex | December 2011 | San Diego, California |  |  | 146,700 |  | Industrial |  |  | 13,893.5 |
Shoreline Medical Building | May 2012 | Half Moon Bay, California |  |  | 15,335 |  | Office |  |  | 6,028.2 |
The Presidio | November 2012 | Colorado Springs, Colorado |  |  | 80,800 |  | Office |  |  | 6,752.9 |
Sparky's Lancaster | May 2013 | Lancaster, CA |  |  | 71,000 |  | Self-Storage |  |  | 3,626.5 |
Bismarck | April 2014 | Bismarck, ND |  |  | 93,000 |  | Office |  |  | 5,082.7 |
Union Terrace | August 2014 | Lakewood, CO |  |  | 84,000 |  | Office |  |  | 9,261.5 |
NetREIT, Inc. properties |  |  |  |  |  |  |  |  |  | 147,799.5 |
|  |  |  | Model Homes |  |  |  |  |  |
Model Home properties held in limited partnerships | Various in 2009-2014 | CA, AZ, WA, TX, SC, NC and NJ |  |  | 41 |  | Residential |  |  | 10,390.1 |
Model Home properties held in income and investment funds | Various in 2010-2014 | CA, AZ, TX, SC, PA, NJ |  |  | 14 |  | Residential |  |  | 4,089.3 |
Model Home properties |  |  |  |  | 55 |  |  |  |  | 14,479.4 |
Total real estate assets and lease intangibles, net |  |  |  | $ | 162,278.9 |
The following table sets forth the components of the Company's real estate assets:
Components of Real Estate Assets |
|  | September 30, 2014 |  |  | December 31, 2013 |
Land |  | $ | 42,758,064 |  |  | $ | 41,882,217 |
Buildings and other |  |  | 128,861,514 |  |  |  | 128,085,648 |
Tenant improvements |  |  | 10,740,256 |  |  |  | 7,344,151 |
Lease intangibles |  |  | 5,595,554 |  |  |  | 4,569,854 |
|  |  | 187,955,388 |  |  |  | 181,881,870 |
Less: |  |  |  |  |  |  |  |
Accumulated depreciation and amortization |  |  | (25,676,481 | ) |  |  | (22,426,708 | )
Real estate assets, net |  | $ | 162,278,907 |  |  | $ | 159,455,162 |
Properties Acquired and Sold | The Company allocated the purchase price of the properties acquired during the nine months ended September 30, 2014 as follows:
|  | Land |  |  | Buildings and other |  |  | Tenant Improvements |  |  | In-place Leases |  |  | Leasing Costs |  |  | Total Purchase Price |
Model Home Properties |  | $ | 371,300 |  |  | $ | 1,410,000 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 1,781,300 |
Bismarck Office Building |  |  | 413,000 |  |  | $ | 4,233,700 |  |  | $ | 474,400 |  |  | $ | 164,300 |  |  | $ | 64,600 |  |  | $ | 5,350,000 |
Union Terrace |  | $ | 1,717,000 |  |  | $ | 5,267,900 |  |  | $ | 1,643,300 |  |  | $ | 370,100 |  |  | $ | 426,700 |  |  | $ | 9,425,000 |
Net Value of Other Intangible Assets | 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, 2014 |  |  | December 31, 2013 |
|  | Lease intangibles |  |  | Accumulated amortization |  |  | Lease intangibles net |  |  | Lease intangibles |  |  | Accumulated amortization |  |  | Lease intangibles net |
In-place leases |  | $ | 2,549,859 |  |  | $ | (1,737,418 | ) |  | $ | 812,441 |  |  | $ | 2,015,459 |  |  | $ | (1,493,808 | ) |  | $ | 521,651 |
Leasing costs |  |  | 1,940,285 |  |  |  | (1,149,492 | ) |  |  | 790,793 |  |  |  | 1,448,985 |  |  |  | (999,444 | ) |  |  | 449,541 |
Tenant relationships |  |  | 332,721 |  |  |  | (332,721 | ) |  |  | - |  |  |  | 332,721 |  |  |  | (332,721 | ) |  |  | - |
Below-market leases |  |  | (841,425 | ) |  |  | 86,499 |  |  |  | (754,926 | ) |  |  | (841,425 | ) |  |  | 65,463 |  |  |  | (775,962 | )
Above-market leases |  |  | 1,614,114 |  |  |  | (1,156,745 | ) |  |  | 457,369 |  |  |  | 1,614,114 |  |  |  | (1,018,516 | ) |  |  | 595,598 |
|  | $ | 5,595,554 |  |  | $ | (4,289,877 | ) |  | $ | 1,305,677 |  |  | $ | 4,569,854 |  |  | $ | (3,779,026 | ) |  | $ | 790,828 |
Estimated Aggregate Amortization Expense for Five Succeeding Fiscal Years and Thereafter | As of September 30, 2014, the estimated aggregate net amortization expense for each of the five succeeding fiscal years and thereafter is as follows:
|  | Estimated Aggregate Net Amortization Expense |
Three months remaining in 2014 |  | $ | 212,224 |
2015 |  |  | 611,168 |
2016 |  |  | 250,315 |
2017 |  |  | 130,380 |
2018 |  |  | 81,797 |
Thereafter |  |  | 19,793 |
|  | $ | 1,305,677 |

X
- Definition Tabular disclosure of all information related to any significant acquisition and disposal. Disclosure may include methodology and assumptions, type of asset, asset classification, useful life, useful purpose, acquisition cost, method of acquisition or disposal, depreciation method, gain (loss) on disposal pretax and net of tax, date of acquisition or disposal and restrictions on amount of proceeds from donated assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 + Details
Name: | us-gaap_PropertyPlantAndEquipmentScheduleOfSignificantAcquisitionsAndDisposalsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_RealEstateAndAccumulatedDepreciationDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a -Article 5 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 28 -Article 12 Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Subparagraph 4 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 11 -Article 9 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 + Details
Name: | us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance with a finite life, by either major class or business segment. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 + Details
Name: | us-gaap_ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of real estate properties and units in those properties that are included in the discussion of the nature of an entity's operations. + References No definition available. + Details
Name: | us-gaap_ScheduleOfRealEstatePropertiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration