Real Estate

3 Months Ended

Mar. 31, 2020

The Company’s real estate assets consisted of the following, in thousands:


	March 31, 2020		December 31, 2019
Land	$	145,050	$	145,050
Buildings and improvements	351,661		348,729
In-place lease value intangible	100,790		100,790
	597,501		594,569
Less: accumulated depreciation and amortization	(124,634)		(117,652)
Total real estate assets	$	472,867	$	476,917

Depreciation expense for the three months ended March 31, 2020 and 2019 was $4,317,000 and $4,313,000, respectively. Amortization expense of in-place lease value intangible was $2,665,000 and $2,717,000 for the three months ended March 31, 2020 and 2019, respectively.

The Company identifies and records the value of acquired lease intangibles at the property acquisition date. Such intangibles include the value of acquired in-place leases and above and below-market leases. Acquired lease intangibles are amortized over the leases' remaining terms. With respect to all properties owned by the Company, we consider all of the in-place leases to be market rate leases.

The amount of total in-place lease intangible asset and the respective accumulated amortization are as follows, in thousands:


	March 31, 2020		December 31, 2019
In-place lease value intangible	$	100,790	$	100,790
In-place leases – accumulated amortization	(71,549)		(68,884)
Acquired lease intangible assets, net	$	29,241	$	31,906

As of March 31, 2020 and December 31, 2019, the Company owned 43 commercial properties comprising approximately 6.7 million square feet plus three pad sites, all located in Texas. As of March 31, 2020, the Company owned 15 properties located in Richardson, Arlington and Dallas, Texas, 25 properties located in Houston, Texas and three properties located in San Antonio, Texas.

Asset management fees incurred and paid to Advisor were $440,000 for the three months ended March 31, 2020 and 2019, respectively. Asset management and acquisition fees are captioned as such in the accompanying consolidated statements of operations.