Investments in Real Estate

6 Months Ended

Jun. 30, 2020

Investments, All Other Investments [Abstract]

Acquisitions

The following table summarizes the wholly-owned industrial properties we acquired during the six months ended June 30, 2020:



Property	Submarket	Date of Acquisition	Rentable Square Feet	Number of Buildings	Contractual Purchase Price⁽¹⁾ (in thousands)
701-751 Kingshill Place⁽²⁾	Los Angeles - South Bay	3/5/2020	169,069	6	$	33,251
2601-2641 Manhattan Beach Boulevard⁽²⁾	Los Angeles - South Bay	3/5/2020	126,726	6	39,481
2410-2420 Santa Fe Avenue⁽²⁾	Los Angeles - South Bay	3/5/2020	112,000	1	35,737
11600 Los Nietos Road⁽²⁾	Los Angeles - Mid-Counties	3/5/2020	103,982	1	16,626
5160 Richton Street⁽²⁾	San Bernardino - Inland Empire West	3/5/2020	94,976	1	15,653
2205 126th Street⁽²⁾	Los Angeles - South Bay	3/5/2020	63,532	1	17,712
11832-11954 La Cienega Boulevard⁽²⁾	Los Angeles - South Bay	3/5/2020	63,462	4	19,664
7612-7642 Woodwind Drive⁽²⁾	Orange County - West	3/5/2020	62,377	3	13,780
960-970 Knox Street⁽²⁾	Los Angeles - South Bay	3/5/2020	39,400	1	9,939
25781 Atlantic Ocean Drive⁽²⁾	Orange County - South	3/5/2020	27,960	1	5,516
Brady Way⁽³⁾	Orange County - West	4/1/2020	—	—	874
720-750 Vernon Avenue	Los Angeles - San Gabriel Valley	4/3/2020	71,692	3	15,515
6687 Flotilla Street	Los Angeles - Central	5/5/2020	120,000	1	21,000
1055 Sandhill Avenue	Los Angeles - South Bay	5/28/2020	—	—	14,453
22895 Eastpark Drive⁽²⁾	Orange County - North	6/19/2020	34,950	1	6,844
8745-8775 Production Avenue	San Diego - Central	6/19/2020	46,820	2	7,850
15580 Slover Avenue	San Bernardino - Inland Empire West	6/26/2020	60,127	1	9,958
Total 2020 Wholly-Owned Property Acquisitions			1,197,073	33	283,853


(1)	Represents the gross contractual purchase price before prorations, closing costs and other acquisition related costs.

(2)

On March 5, 2020, we acquired ten properties and on June 19, 2020, we acquired one additional property, from a group of sellers that were not affiliated with the Company (the “Properties”) for an aggregate purchase price of $214.2 million, exclusive of closing costs, including assumed debt of approximately $47.5 million. In consideration for the Properties we (i) paid $60.4 million in cash, including a $10.0 million deposit paid in 2019, (ii) issued 1,406,170 common units of limited partnership interests in the Operating Partnership and (iii) issued 906,374 4.00% Cumulative Redeemable Convertible Preferred Units of partnership interest in the Operating Partnership (the “Series 2 CPOP Units”). See Note 5 and Note 11 for further details regarding the assumption of debt and Series 2 CPOP Units, respectively.


(3)	Brady Way is a one-acre parcel of land adjacent to our property located at 12821 Knott Street.

The following table summarizes the fair value of amounts allocated to each major class of asset and liability for the acquisitions noted in the table above, as of the date of each acquisition (in thousands):



	2020 Acquisitions
Assets:
Land	$	201,145
Buildings and improvements	79,948
Tenant improvements	1,789
Acquired lease intangible assets⁽¹⁾	10,645
Other acquired assets⁽²⁾	3,082
Total assets acquired	296,609

Liabilities:
Acquired lease intangible liabilities⁽³⁾	7,487
Notes payable⁽⁴⁾	48,759
Other assumed liabilities⁽²⁾	1,352
Total liabilities assumed	57,598
Net assets acquired	$	239,011


(1)	Acquired lease intangible assets is comprised of $10.4 million of in-place lease intangibles with a weighted average amortization period of 4.5 years and $0.2 million of above-market lease intangibles with a weighted average amortization period of 7.9 years.


(2)	Includes other working capital assets acquired and liabilities assumed at the time of acquisition. In addition, it also includes personal property that we acquired as part of the acquisition of 1055 Sandhill Avenue that we are currently in the process of selling.


(3)	Represents below-market lease intangibles with a weighted average amortization period of 5.8 years.

(4)

In connection with the acquisition of the Properties, we assumed ten mortgage loans from the sellers. At the date of acquisition, the loans had an aggregate fair value of $48.8 million and an aggregate principal balance of $47.5 million.