3. REAL ESTATE ASSETS AND LEASE INTANGIBLES

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:

	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

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

Recent Acquisitions

In August 2014, the Company acquired The Union Terrace Office building for the purchase price of approximately $9.4 million plus closing costs. The Property is a four-story office building with approximately 84,000 rentable square feet located in Lakewood, Colorado. The Company acquired the property with a cash payment of approximately $2.8 million and an interest only fixed rate mortgage note $6.6 million that bears interest 4.5% per annum and is due in August 2024.

In August 2014, the Company, through certain subsidiaries, acquired three Model Home properties in Arizona and leased them back to the home builder. The purchase price for the properties was $1.0 million. The purchase price paid was through a cash payment of $0.4 million and a promissory note $0.6 million.

In April 2014, the Company acquired The Bismarck Office Building for the purchase price of approximately $5.4 million plus closing costs. The property is a six-story office building with of approximately 93,000 rentable square feet located in Bismarck, North Dakota. The Company acquired the property with cash of approximately $2.2 million and a $3.2 million fixed rate mortgage note that bears interest at 6.12% per annum and is due in October 2016.

In February 2014, the Company, through certain subsidiaries, acquired six Model Home properties in Pennsylvania and leased them 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.

The Company disposed of the following properties in the nine months ended September 30, 2014:

During the nine months ended September 30, 2014, NetREIT Dubose and the other Model Home entities disposed of thirty-two model home properties. The sales price, net of selling costs, aggregated approximately $13.5 million and approximately $5.6 million in mortgage notes payable were retired in connection with these sales. The Company recognized a gain of approximately $2.4 million related to the sale of these Model Homes.

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

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

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

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, 2014 was approximately 16.0 years.