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Investment and Disposition Activity
 6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Investment and Disposition Activity Investment and Disposition Activity

During the six months ended June 30, 2019, the Company completed the acquisitions of 2 operating healthcare properties located in 2 states for an aggregate purchase price of approximately $23.3 million. In addition, the Company purchased a newly-constructed addition to an existing building owned by the Company in Tennessee for $4.3 million. During the six months ended June 30, 2019, the Company also funded $27.1 million of loan transactions, including 2 construction loans with an aggregate commitment amount of $44.3 million with funding to date of $10.3 million, and the Company completed 3 mezzanine loans for an aggregate $16.8 million. The Company also paid $2.5 million of additional purchase consideration on 2 properties under earn-out agreements, as well as $0.5 million under a noncontrolling interest buyout. These investment activities result in total investment activity of approximately $57.6 million for the six months ended June 30, 2019.

Investment activity for the three months ended June 30, 2019 is summarized below:
Property
 
 
 
Location
 
Acquisition
Date
 
Purchase Price
(in thousands)
Doctors United ASC
(1)
 
 
Pasadena, TX
 
April 4, 2019
 
$
14,812

NCI Buyout - MN Portfolio
 
 
 
Various
 
May 6, 2019
 
540

Atlanta Condominium Investments
 
 
 
Atlanta, GA
 
June 28, 2019
 
8,500

Loan Investments
 
 
 
Various
 
Various
 
7,028

Earn-out Investments
(2)
 
 
Various
 
Various
 
2,468

 
 
 
 
 
 
 
 
$
33,348

(1)
The Operating Partnership partially funded the acquisition by issuing an aggregate of 346,989 OP Units valued at approximately $6.5 million on the date of issuance.
(2)
The Company completed the settlement of acquisitions related earn-out payments upon the execution of leases at two properties. One payment valued at $1.9 million at the time of issuance, was funded with the issuance of 8,529 Series A Preferred Units. Both earn-out payments are considered to be additional purchase price upon each respective property.

The following table summarizes the acquisition date fair values of the assets acquired and the liabilities assumed, which the Company determined using Level 2 and Level 3 inputs (in thousands):
 
1st Quarter
 
2nd Quarter
 
Total
Land
$
—

 
$
5,491

 
$
5,491

Building and improvements
7,587

 
16,466

 
24,053

In-place lease intangibles
434

 
4,651

 
5,085

Below market in-place lease intangibles
—

 
(96
)
 
(96
)
Mortgage escrow
(3,718
)
 
—

 
(3,718
)
Issuance of OP Units
—

 
(6,488
)
 
(6,488
)
Issuance of Series A Preferred Units
—

 
(1,862
)
 
(1,862
)
Net assets acquired
$
4,303


$
18,162

 
$
22,465



Dispositions

During the three months ended June 30, 2019, the Company sold two medical office buildings located in 2 states for approximately $12.5 million and recognized a net gain on the sale of approximately $3.0 million.

The following table summarizes revenues and net income related to the disposed properties for the periods presented (in thousands):
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
$
54

 
$
231

 
$
302

 
$
471

 
 
 
 
 
 
 
 
Income before net gain on sale of investment properties
$
55

 
$
40

 
$
100

 
$
80

Gain on sale of investment properties
3,033

 
—

 
3,033

 
—

Net income
$
3,088

 
$
40

 
$
3,133

 
$
80