Deferred Costs, Acquired Lease Intangibles and Goodwill

9 Months Ended

Sep. 30, 2019

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred Costs, Acquired Lease Intangibles and Goodwill

Deferred costs, net, consisted of the following as of September 30, 2019 and December 31, 2018 (amounts in thousands):  

	September 30, 2019			December 31, 2018
Leasing costs	$	185,698		$	178,120
Acquired in-place lease value and deferred leasing costs	206,026			214,550
Acquired above-market leases	49,906			52,136
	441,630			444,806
Less: accumulated amortization	(222,651		)	(209,839		)
Total deferred costs, net, excluding net deferred financing costs	$	218,979		$	234,967

At September 30, 2019 and December 31, 2018, $4.7 million and $6.3 million, respectively, of net deferred financing costs associated with the unsecured revolving credit facility was included in deferred costs, net on the condensed consolidated balance sheet.    

Amortization expense related to deferred leasing costs and acquired deferred leasing costs was $6.2 million and $6.3 million for the three months ended September 30, 2019 and 2018, respectively, and $18.3 million and $18.4 million for the nine months ended September 30, 2019 and 2018, respectively. Amortization expense related to acquired lease intangibles was $2.4 million and $2.9 million for the three months ended September 30, 2019 and 2018, respectively, and $8.2 million and $9.3 million for the nine months ended September 30, 2019 and 2018, respectively.

Amortizing acquired intangible assets and liabilities consisted of the following as of September 30, 2019 and December 31, 2018 (amounts in thousands):

	September 30, 2019			December 31, 2018
Acquired below-market ground leases	$	396,916		$	396,916
Less: accumulated amortization	(42,392		)	(36,518		)
Acquired below-market ground leases, net	$	354,524		$	360,398

	September 30, 2019			December 31, 2018
Acquired below-market leases	$	(113,625	)	$	(118,462	)
Less: accumulated amortization	70,970			66,012
Acquired below-market leases, net	$	(42,655	)	$	(52,450	)

Rental revenue related to the amortization of below-market leases, net of above-market leases, was $1.7 million and $1.7 million for the three months ended September 30, 2019 and 2018, respectively, and $5.8 million and $4.4 million for the nine months ended September 30, 2019 and 2018, respectively.

As of September 30, 2019, we had goodwill of $491.5 million. Goodwill was allocated $227.5 million to the observatory reportable segment and $264.0 million to the real estate segment.