Intangible Assets

3 Months Ended

Mar. 31, 2014

Intangible Assets

4. Intangible Assets

The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows:

	March 31, 2014			December 31, 2013
Acquired Lease Intangible Assets:
In-place lease intangibles	$	17,886,000		$	16,321,000
Accumulated amortization		(6,200,000	)		(4,296,000	)
In-place lease intangibles, net		11,686,000			12,025,000
Above-market tenant leases		1,937,000			1,881,000
Accumulated amortization		(449,000	)		(284,000	)
Above-market tenant leases, net		1,488,000			1,597,000
Acquired lease intangible assets, net	$	13,174,000		$	13,622,000
Acquired Lease Intangible Liabilities:
Below-market tenant leases		(1,547,000	)		(1,081,000	)
Accumulated accretion		263,000			198,000
Below-market tenant leases, net		(1,284,000	)		(883,000	)
Above-market ground lease		(290,000	)		(290,000	)
Accumulated accretion		21,000			13,000
Above-market ground lease, net		(269,000	)		(277,000	)
Acquired lease intangible liabilities, net	$	(1,553,000	)	$	(1,160,000	)

The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014			2013
In-place lease intangibles(1)	$	2,086,000		$	400,000
Above-market tenant leases(2)	$	165,000		$	51,000
Below-market tenant leases(2)	$	(77,000	)	$	(8,000	)
Above-market ground lease(3)	$	(8,000	)	$	-

(1) The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented.

(2) The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented.

(3) The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented.

(4) The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented.