XML 39 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Real Estate Acquisitions
 6 Months Ended
Jun. 30, 2012
Real Estate [Abstract]  
REAL ESTATE ACQUISITIONS
NOTE 4 — REAL ESTATE ACQUISITIONS
2012 Property Acquisitions
During the six months ended June 30, 2012, the Company acquired two commercial properties for an aggregate purchase price of $8.6 million (the “2012 Acquisitions”). The Company purchased the 2012 Acquisitions with net proceeds from the Offering. The Company allocated the purchase price of these properties to the fair value of the assets acquired. The following table summarizes the purchase price allocation:
 
 
June 30, 2012
Land
$
1,552,389

Building and improvements
 
6,001,392

Acquired in-place leases
 
1,042,302

Total purchase price
$
8,596,083


In connection with the purchase of the 2012 Acquisitions, the Company expensed $262,000 of acquisition costs for the three and six months ended June 30, 2012. An additional $43,000 of acquisition costs were expensed as of June 30, 2012 related to one acquisition, which was acquired on July 31, 2012 for a purchase price of $32.6 million. Refer to Note 9 to these condensed consolidated unaudited financial statements for additional information regarding the acquisition.
The Company recorded revenue for the three and six months ended June 30, 2012 of $189,000 and a net loss for the three and six months ended June 30, 2012 of $196,000, related to the 2012 Acquisitions.
The following table summarizes selected financial information of the Company as if all of the 2012 Acquisitions were completed on January 1, 2011 for each period presented below. The table below presents the Company's estimated revenue and net (loss) income, on a pro forma basis, for the three and six months ended June 30, 2012 and 2011:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
Pro forma basis (unaudited):
 
 
 
 
 
 
 
Revenue
$
1,163,890

 
$
241,394

 
$
2,327,778

 
$
482,786

Net (loss) income
$
(953
)
 
$
(528,857
)
 
$
53,163

 
$
(790,569
)

The unaudited pro forma information for the three and six months ended June 30, 2012 was adjusted to exclude $262,000 of acquisition related expenses recorded during the current period relating to the 2012 Acquisitions. These expenses were recognized in the unaudited pro forma information for the six months ended June 30, 2011. The unaudited pro forma information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2011, nor does it purport to represent the results of future operations.
2011 Property Acquisitions
During the six months ended June 30, 2011, the Company acquired one property for an aggregate purchase price of $32.9 million. The Company purchased the property through the use of loan proceeds and proceeds from the Offering. The Company allocated the purchase price of the property to the fair value of assets acquired and liabilities assumed. The following table summarizes the purchase price allocation:
 
 
June 30, 2011
Land
$
3,956,317

Building and improvements
 
27,072,394

Acquired in-place leases
 
3,433,205

Acquired below-market leases
 
(1,611,916
)
Total purchase price
$
32,850,000


The Company recorded revenue of $9,000 and a net loss of $719,000 for the three and six months ended June 30, 2011 related to the property. In connection with the purchase of the property, the Company recorded a payable for an unpaid tenant improvement allowance assumed in the amount of $1.0 million, for which a credit was received at the closing of the acquisition. In addition,the Company incurred $719,000 of acquisition related expenses for the three and six months ended June 30, 2011.