Real Estate Transactions

12 Months Ended

Dec. 31, 2014

3. RECENT REAL ESTATE TRANSACTIONS

During 2014, the Company acquired the following properties:

In May, a 93,000 square foot, multi-tenant office building located in Bismarck, ND for $5.4 million (through a cash payment of $2.0 million and the assumption of the existing loan on the property of $3.4 million), plus closing costs. The property was 85% occupied at acquisition.
In August, a 84,000 square foot, multi-tenant office building located in Lakewood, Colorado for $9.4 million (through a cash payment of $2.8 million and a promissory note totaling $6.6 million), plus closing costs. The property was 82% occupied at acquisition.
In December, a 110,000 square foot, multi-tenant office property located in Colorado Springs, Colorado for $15.5 million (through a cash payment of $5.2 million and a promissory note of $10.3 million), plus closing costs. The property is comprised of two buildings, and was 97% occupied at acquisition.
In December, a 44,000 square foot, multi-tenant retail property located in Colorado Springs, Colorado for $11.2 million (through a cash payment of $2.4 million and a promissory note of $8.4 million) and the payoff of a loan termination fee of $400,000 on behalf of the seller, plus closing costs. The property was 97% occupied at acquisition.
In December, a 79,000 square foot, multi-tenant office property located in Centennial, Colorado for $11.8 million (through a cash payment of $3.3 million and a promissory note of $8.5 million), plus closing costs. The property was 100% occupied at acquisition.

The Model Home Partnerships acquired eighteen (18) Model Home properties in Pennsylvania and Arizona and leased them back to the home builders. The purchase price for the properties totaled $5.7 million (consisting of cash payments of $2.3 million and a promissory note of $3.4 million), plus closing costs.

The Company allocated the purchase price of the properties acquired during 2014 as follows:

				Buildings		Tenant		In-place		Leasing		Purchase
		Land		and other		Improvements		Leases		Costs		Price

Bismarck, ND	$	413,000	$	4,233,700	$	474,400	$	164,300	$	64,600	$	5,350,000
Lakewood, CO		1,717,000		5,267,900		1,643,300		370,100		426,700		9,425,000
Colorado Springs, CO		2,025,000		10,417,901		1,583,869		762,875		710,355		15,500,000
Colorado Springs, CO		1,750,000		8,890,316		153,392		124,974		292,987		11,211,669
Centennial, CO		1,420,000		8,766,628		385,332		993,252		284,788		11,850,000
Model Home		1,023,830		4,702,870		-		-		-		5,726,700
Total	$	8,348,830	$	42,279,315	$	4,240,293	$	2,415,501	$	1,779,430	$	59,063,369


	During the year ended December 31, 2014, the Company sold the following properties:


						Buildings		Total	Total
				Land		and other		Cost	Gain


		Model Homes (1)	$	2,169,560	$	13,887,961	$	16,057,521	3,371,031
		Fontana Medical Center (2)		556,858		1,709,576		2,266,434	1,749,668
		Total	$	2,726,418	$	15,597,537	$	18,323,955	5,120,699

(1)	NetREIT Dubose, Dubose Model Home Investors #201 LP and Dubose Model Home Investors #202 LP sold forty five (45) model home properties upon maturity of the leases for an aggregate slaes price of $20.9 million

(2)	The Fontana Medical Plaza property was acquired in 2009 in a joint venture that the Company had a 51% controlling interest. The property was sold for $4.1 million.

- 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.

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