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Acquisitions and Developments in Progress (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of acquisitions

The Company closed on the following acquisitions during the year ended December 31, 2019:

Date

Property Name

Metropolitan
Statistical Area (MSA)

Property Type

Square

Footage

Acquisition

Price

March 7, 2019

North Benson Center

Seattle

Multi-tenant retail

70,500

25,340

June 10, 2019

Paradise Valley Marketplace – Parcel

Phoenix

Land (a)

—

1,343

August 13, 2019

Southlake Town Square – Parcel

Dallas

Single-user parcel (b)

3,100

3,293

73,600

29,976

(c)


(a)	The Company acquired a parcel adjacent to its Paradise Valley Marketplace multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction.


(b)	The Company acquired a single-user parcel at its Southlake Town Square multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction.

(c)

Acquisition price does not include capitalized closing costs and adjustments totaling $316.

The Company closed on the following acquisitions during the year ended December 31, 2017:

Date

Property Name

Metropolitan
Statistical Area (MSA)

Property Type

Square

Footage

Acquisition

Price

January 13, 2017

Main Street Promenade (a)

Chicago

Multi-tenant retail

181,600

88,000

January 25, 2017

Carillon – Fee Interest

Washington, D.C.

Fee interest (b)

—

2,000

February 24, 2017

One Loudoun Downtown – Phase II

Washington, D.C.

Additional phase of multi-tenant retail (c)

15,900

4,128

April 5, 2017

One Loudoun Downtown – Phase III

Washington, D.C.

Additional phase of multi-tenant retail (c)

9,800

2,193

May 16, 2017

One Loudoun Downtown – Phase IV

Washington, D.C.

Development rights (c)

—

3,500

July 6, 2017

New Hyde Park Shopping Center

New York

Multi-tenant retail

32,300

22,075

August 8, 2017

One Loudoun Downtown – Phase V

Washington, D.C.

Additional phase of multi-tenant retail (c)

17,700

5,167

August 8, 2017

One Loudoun Downtown – Phase VI

Washington, D.C.

Additional phase of multi-tenant retail (c)

74,100

20,523

December 11, 2017

Plaza del Lago (d)

Chicago

Multi-tenant retail

100,200

48,300

December 19, 2017

Southlake Town Square – Outparcel

Dallas

Multi-tenant retail outparcel (e)

12,200

7,029

443,800

202,915

(f)


(a)	This property was acquired through two consolidated VIEs and was used to facilitate a 1031 Exchange.

(b)

The multi-tenant retail operating property located in Largo, Maryland was previously subject to an approximately 70 acre long-term ground lease with a third party. The Company completed a transaction whereby it received the fee interest in approximately 50 acres of the underlying land in exchange for which (i) the Company paid $1,939 and (ii) the term of the ground lease with respect to the remaining approximately 20 acres was shortened to nine months. The Company derecognized building and improvements of $11,347 related to the remaining ground lease, recognized the fair value of land received of $15,200 and recorded a gain of $2,524, which was recognized during the three months ended December 31, 2017 upon the expiration of the ground lease on approximately 20 acres. The total number of properties in the Company’s portfolio was not affected by this transaction.


(c)	The Company acquired the remaining five phases under contract, including the development rights for an additional 123 residential units for a total of 408 units, at One Loudoun Downtown. The total number of properties in the Company’s portfolio was not affected by these transactions.


(d)	Plaza del Lago also contained 8,800 square feet of residential space, comprised of 15 multi-family rental units at acquisition, for a total of 109,000 square feet.


(e)	The Company acquired a multi-tenant retail outparcel located at its Southlake Town Square multi-tenant retail operating property. The total number of properties in the Company’s portfolio was not affected by this transaction.

(f)

Acquisition price does not include capitalized closing costs and adjustments totaling $2,506.

Schedule of acquisition date fair values

The following table summarizes the acquisition date values, before prorations, the Company recorded in conjunction with the acquisitions completed during the years ended December 31, 2019, 2018 and 2017 discussed above:



	2019			2018		2017
Land	$	14,819		$	—	$	50,876
Developments in progress	—			25,450		—
Building and other improvements, net	13,667			—		148,108
Acquired lease intangible assets (a)	2,040			—		15,608
Acquired lease intangible liabilities (b)	(234		)	—		(8,095		)
Other liabilities	—			—		(1,076		)
Net assets acquired	$	30,292		$	25,450	$	205,421


(a)	The weighted average amortization period for acquired lease intangible assets is six years and seven years for acquisitions completed during the years ended December 31, 2019 and 2017, respectively.

(b)

The weighted average amortization period for acquired lease intangible liabilities is five years and 13 years for acquisitions completed during the years ended December 31, 2019 and 2017, respectively.

Schedule of developments in progress

The carrying amount of the Company’s developments in progress are as follows:



		December 31,
Property Name	MSA	2019		2018
Active expansion and redevelopment projects:
Circle East (a)	Baltimore	$	33,628	$	22,383
Plaza del Lago (b)	Chicago	—		536
One Loudoun Downtown (c)	Washington, D.C.	27,868		—
Carillon (d)	Washington, D.C.	26,407		—
		87,903		22,919
Land held for future development:
One Loudoun Uptown (e)	Washington, D.C.	25,450		25,450
Total developments in progress		$	113,353	$	48,369


(a)	During the year ended December 31, 2018, the Company received net proceeds of $11,820 in connection with the sale of air rights to a third party to develop multi-family rental units at Circle East, which is shown net in the “Developments in progress” balance as of December 31, 2019 and 2018 in the accompanying consolidated balance sheets.


(b)	During the three months ended September 30, 2019, the Company placed the Plaza del Lago multi-family rental redevelopment project in service and reclassified the related costs from “Developments in progress” into “Building and other improvements” in the accompanying consolidated balance sheets.


(c)	During the three months ended June 30, 2019, the Company commenced the active development of Pads G & H at One Loudoun Downtown, at which time all predevelopment costs related to the development as well as the Company’s historical basis in the pads were reclassified

from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying consolidated balance sheets.

(d)

During the three months ended September 30, 2019, the Company commenced the active redevelopment at Carillon, at which time the Company (i) recorded $26,330 of accelerated depreciation related to the write-off of assets taken out of service due to the demolition of existing structures in connection with the redevelopment and (ii) reclassified all predevelopment costs related to the redevelopment as well as the Company’s historical basis in the phases to be developed from “Other assets, net” and “Investment properties,” respectively, to “Developments in progress” in the accompanying consolidated balance sheets.

(e)

During 2018, the Company acquired One Loudoun Uptown, a 58-acre land parcel that contains 32 acres that are developable.

Schedule of variable interest entities

As of December 31, 2019 and 2018, the Company had recorded the following amounts related to the consolidated joint ventures:



	December 31, 2019								December 31, 2018
	One Loudoun Downtown – Pads G & H		Carillon – Phase One Multi-family Rental		Carillon – Phase One Medical Office		Total		One Loudoun Downtown – Pads G & H		Carillon – Phase One Multi-family Rental		Carillon – Phase One Medical Office		Total
Net investment properties	$	8,830	$	2,940	$	675	$	12,445	$	—	$	—	$	—	$	—
Other assets, net	$	164	$	—	$	—	$	164	$	579	$	685	$	—	$	1,264
Other liabilities	$	1,546	$	32	$	129	$	1,707	$	165	$	263	$	—	$	428
Noncontrolling interests	$	1,869	$	1,454	$	273	$	3,596	$	207	$	211	$	—	$	418

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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