Lease Intangibles, net

9 Months Ended

Sep. 30, 2014

6.	Lease Intangibles, net

The gross carrying amount and accumulated amortization of the Company’s intangible assets as of September 30, 2014 and December 31, 2013 were as follows:


	September 30, 2014			December 31, 2013
In place leases	$	23,869,700		$	23,869,700
Above-market leases		1,634,300			1,634,300

Gross carrying amount		25,504,000			25,504,000
Accumulated amortization		(10,409,448	)		(7,325,901	)

Net book value	$	15,094,552		$	18,178,099

Amortization expense on the Company’s intangibles, net was approximately $1.0 million and $3.1 million for each of the quarters and nine months ended September 30, 2014 and 2013, respectively, of which $0.07 million and $0.2 million, respectively, were treated as a reduction of rental income from operating leases and approximately $1.0 million and $2.9 million, respectively, were included in depreciation and amortization.

The estimated future amortization for the Company’s intangible assets, excluding amounts classified as held for sale, for the remainder of 2014, and each of the next four years, as of September 30, 2014 was as follows:


	In place leases		Above-market leases		Total
2014	$	957,092	$	70,757	$	1,027,849
2015		3,828,369		283,026		4,111,395
2016		3,756,219		283,026		4,039,245
2017		3,695,169		283,026		3,978,195
2018		1,859,439		78,429		1,937,868

	$	14,096,288	$	998,264	$	15,094,552