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Real Estate Investments
9 Months Ended
Sep. 30, 2011
Real Estate Investments
Real Estate Investments
 
The Company did not acquire any properties during the three months ended September 30, 2011 or 2010. The following table presents the allocation of the assets acquired and liabilities assumed during nine months ended September 30, 2011 and 2010 (amounts in thousands):
 
 
 
Nine Months Ended September 30,
 
 
 
2011
 
2010
Real estate investments, at cost:
 
 
 
 
 
Land
 
 
$
2,753

 
$
11,243

Buildings, fixtures and improvements
 
 
7,390

 
20,675

Total tangible assets
 
 
10,143

 
31,918

Acquired intangibles:
 
 
 

 
 

In-place leases
 
 
1,424

 
1,426

Below-market lease liabilities
 
 
—

 
(588
)
Total acquired intangibles
 
 
1,424

 
838

Total assets acquired, net
 
 
11,567

 
32,756

Mortgage notes payable
 
 
(6,250
)
 
(14,221
)
Cash paid for acquired real estate investments
 
 
$
5,317

 
$
18,535

Number of properties purchased
 
 
2

 
1

 

The Company acquires and operates commercial properties. All such properties may be acquired and operated by the Company alone or jointly with another party.  The Company’s portfolio of real estate properties is comprised of the following properties as of September 30, 2011 (net operating income and base purchase price in thousands):
Portfolio Property
 
Acquisition
Date
 
Number of
Properties
 
Square
Feet
 
Occupancy
 
Remaining
Lease
Term (1)
 
Net
Operating
Income (2)
 
Base
Purchase
Price (3)
 
Capitalization
Rate (4)
 
Annualized
Rental
Income (5)
per Square
Foot
Interior Design Building
 
Jun. 2010
 
1
 
81,082

 
85.4
%
 
3.8

 
$
2,214

 
$
32,250

 
6.9
%
 
$
43.15

Bleecker Street (6)
 
Dec. 2010
 
5
 
9,724

 
100.0
%
 
8.4

 
2,451

 
34,000

 
7.2
%
 
262.65

Foot Locker
 
Apr. 2011
 
1
 
6,118

 
100.0
%
 
14.3

 
455

 
6,167

 
7.4
%
 
74.37

Regal Parking Garage
 
Jun. 2011
 
1
 
12,856

 
100.0
%
 
22.8

 
405

 
5,400

 
7.5
%
 
31.50

 
 
 
 
8
 
109,780

 
89.2
%
 
7.8

 
$
5,525

 
$
77,817

 
7.1
%
 
$
62.74

______________________________
(1)
Remaining lease term in years as of September 30, 2011, calculated on a weighted-average basis.
(2)
Annualized net operating income for the nine months ended September 30, 2011 for the leases in place in the property portfolio.  Net operating income is rental income on a straight-line basis, which includes tenant concessions such as free rent, as applicable, plus operating expense reimbursement revenue less property operating expenses.  Reflects adjustments for lease terminations and lease amendments with tenants, as applicable.
(3)
Contract purchase price, excluding acquisition related costs.
(4)
Net operating income divided by base purchase price.
(5)
Annualized rental income as of September 30, 2011 for the property portfolio on a straight-line basis, which includes tenant concessions such as free rent, as applicable.
(6)
Non-controlling interest holders contributed $13.0 million to purchase this portfolio.

The following table presents pro forma information as if the acquisitions during the nine months ended September 30, 2011 had been consummated on January 1, 2011 and as if acquisitions during the nine months ended September 30, 2010 had been consummated on January 1, 2010 (amounts in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2011
 
2010
 
2011
 
2010
Pro forma revenues
 
$
1,787

 
$
1,031

 
$
5,608

 
$
4,934

Pro forma net loss attributable to stockholders
 
$
(561
)
 
$
(374
)
 
$
(2,406
)
 
$
(944
)
Pro forma basic and diluted net loss per share
 
$
(0.26
)
 
NM

 
$
(1.79
)
 
NM

____________________________
NM – not meaningful
(1) Based on the basic and diluted weighted shares outstanding for the three and nine months ended September 30, 2011 and September 30, 2010, as presented on the consolidated statements of operations.

The following table presents future minimum base rent cash payments due to the Company subsequent to September 30, 2011.  These amounts exclude contingent rental payments, as applicable, that may be collected from certain tenants based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes among other items (amounts in thousands): 
 
Future Minimum
Base Rent Payments
October 1, 2011 – December 31, 2011
$
1,379

2012
5,371

2013
5,523

2014
5,403

2015
5,069

Thereafter
26,308

 
$
49,053


The following table lists the tenants whose annualized rental income on a straight-line basis represented greater than 10% of total annualized rental income for all portfolio properties on a straight-line basis as of September 30, 2011 and 2010:
 
 
 
 
 
September 30,
Property Portfolio
 
Tenant
 
2011
 
2010
Bleecker Street
 
Burberry Limited
 
16.8
%
 
—
%
Bleecker Street
 
Michael Kors Stores, LLC
 
10.1
%
 
—
%
Interior Design Building
 
Rosselli 61st St., LLC
 
*

 
19.8
%
Interior Design Building
 
Bunny Williams Incorporated
 
*

 
13.9
%
Interior Design Building
 
AP Antiques Corp.
 
*

 
13.7
%
Interior Design Building
 
Doris Leslie Blau, Ltd.
 
*

 
11.3
%
 ___________________________________
* Tenant’s annualized rental income on a straight-line basis was not greater than 10% of total annualized rental income for all portfolio properties as of the period specified.

The termination, delinquency or non-renewal of one of the above tenants may have a material adverse effect on revenues. No other tenant represents more than 10% of annualized rental income as of September 30, 2011 and 2010.