3.	Investments in Real Estate

Acquisitions

On January 15, 2014, we acquired the property located at 7110 Rosecrans Avenue located in Paramount, CA for a contract price of $4.969 million using funds from our revolving credit facility. The property consists of one industrial building totaling 72,000 square foot situated on 3.25 acres of land.

On January 22, 2014, we acquired the property located at 14723-14825 Oxnard Street in Van Nuys, CA for a contract price of $8.875 million using funds from our revolving credit facility. The property consists of a six-building multi-tenant industrial business park totaling 78,000 square feet situated on 3.25 acres of land.

On February 12, 2014, we acquired the property located at 845, 855, and 865 Milliken Avenue and 4317 and 4319 Santa Ana Street in Ontario, CA with a contract price of $8.55 million as part of a 1031 exchange using proceeds from the disposition of our property located at 1335 Park Center Drive. The property consists of a five-building multi-tenant industrial business park totaling 113,612 square feet situated on 5.74 acres of land.

On February 25, 2014, we acquired the property located at 1500-1510 W. 228th Street in Los Angeles, CA for a contract price of $6.6 million. A portion of the acquisition was funded with the remaining proceeds from the disposition of 1335 Park Center Drive, and the remainder of the funding was provided from availability under our revolving credit facility. The property consists of a six-building multi-tenant industrial complex totaling 88,330 square feet situated on 3.9 acres of land.

On March 20, 2014, we acquired the property located at 24105 and 24201 Frampton Avenue in Los Angeles, California for a contract price of $3.93 million using funds from our revolving credit facility. The property consists of one single-tenant building totaling 47,903 square feet situated on 2.07 acres of land.

Our predecessor did not acquire any properties during the three months ended March 31, 2013.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.

		Real estate assets:				Acquisition-related intangibles
Address	Acquisition Date	Land		Buildings and Improvements		In-place Lease Intangibles ⁽¹⁾		Net Above (Below) Market Lease Intangibles ⁽²⁾			Total Purchase Price		Other Assets		Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits			Net Assets Acquired
2014 Acquisitions
7110 Rosecrans Avenue⁽³⁾	1/15/2014	$	3,117,000	$	1,894,000	$	-	$	-		$	5,011,000	$	-	$	(321,000	)	$	4,690,000
14723-14825 Oxnard Street	1/22/2014	$	4,373,000	$	3,873,000	$	650,000	$	(21,000	)	$	8,875,000	$	-	$	(117,000	)	$	8,758,000
845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street	2/12/2014	$	2,440,000	$	5,588,000	$	616,000	$	(94,000	)	$	8,550,000	$	2,000	$	(116,000	)	$	8,436,000
1500-1510 West 228th Street	2/25/2014	$	2,609,000	$	3,879,000	$	419,000	$	(307,000	)	$	6,600,000	$	-	$	(33,000	)	$	6,567,000
24105 & 24201 Frampton Avenue	3/20/2014	$	2,315,000	$	1,553,000	$	62,000	$	-		$	3,930,000	$	22,000	$	(64,000	)	$	3,888,000
Total		$	14,854,000	$	16,787,000	$	1,747,000	$	(422,000	)	$	32,966,000	$	24,000	$	(651,000	)	$	32,339,000

(1)	The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 1.9 years as of March 31, 2014.

(2)	The weighted average amortization period of net below market leases for our 2014 acquisitions was 2.6 years as of March 31, 2014.

(3)	As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation of includes $42,000 of capitalized acquisition costs.

The preliminary allocation of the purchase price is based upon a preliminary valuation and our estimates and assumptions are subject to change within the purchase price allocation period (generally one year from the acquisition date).

The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period:

	Three Months Ended March 31, 2014
Revenues	$	371,000
Net loss	$	(76,000	)

The following table presents unaudited pro-forma financial information as if the closing of our 2014 acquisitions had occurred on January 1, 2013. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions. These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2013 and may not be indicative of future operating results.

	Three Months Ended March 31,
	2014		2013
Revenues	$	13,992,000	$	9,659,000
Net operating income	$	9,251,000	$	6,767,000
Net income	$	1,707,000	$	1,593,000