Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Domain Apartments

In January 2020, the Company sold the Domain Apartments for a contract price of $80.1 million and repaid the associated mortgage loan in full. The Company acquired the Domain Apartments in January 2016 for a purchase price of $58.2 million, excluding transaction costs and working capital reserves. The purchaser is not affiliated with the Company or their affiliates.

The Emerson

In January 2020, the Company acquired The Emerson. The net purchase price was $117.0 million, exclusive of transaction costs and closing prorations. The Emerson is an apartment property located in Centreville, Virginia consisting of 355 units. The newly constructed property currently has a 64% occupancy rate and is expected to stabilize in the next six months. The seller is not affiliated with the Company or their affiliates.

Goodyear Crossing

In February 2020, the Company sold Goodyear Crossing II for a contract price of $72.0 million and repaid the associated mortgage loan in full. The Company acquired Goodyear Crossing II in August 2016 for a purchase price of $56.2 million, excluding transaction costs and working capital reserves. The purchaser is not affiliated with the Company or their affiliates.

Bratzler ABC Westland

In February 2020, the Company acquired Bratzler ABC Westland for a contract price of €11.5 million (approximately $12.5 million assuming a rate of $1.09 per Euro as of the acquisition date), excluding transaction costs and working capital

reserves. Bratzler ABC Westland in an industrial logistics property located in The Hague, Netherlands. Bratzler ABC Westland is an addition to the Company’s existing ownership interest in ABC Westland, an industrial logistics property located in The Hague, Netherlands, previously acquired in May 2019. The seller is not affiliated with the Company or their affiliates.

Coronavirus Outbreak

Subsequent to December 31, 2019, there was a global outbreak of COVID-19 (more commonly referred to as the

Coronavirus), which continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. It has already disrupted global travel and supply chains, adversely impacted global commercial activity, and its long-term economic impact remains uncertain. Considerable uncertainty still surrounds the Coronavirus and its potential effects on the population, as well as the effectiveness of any responses taken on a national and local level by government authorities and businesses. The travel restrictions, limits on hours of operations and/or closures of non-essential businesses and other efforts to curb the spread of the Coronavirus have significantly disrupted business activity globally, including in the markets where the Company invests, and could have an adverse impact on the performance of certain of the Company’s investments. Many of the Company’s tenants are subject to shelter in place and other quarantine restrictions, and the restrictions could be in place for an extended period of time. These restrictions are particularly adversely impacting many of the Company’s retail tenants (other than grocery tenants), as government instructions regarding social distancing and mandated closures have reduced and, in some cases, eliminated customer foot traffic, causing many of the Company’s retail tenants to temporarily close their brick and mortar stores. As of December 31, 2019, the Company owned two retail properties in the U.S., which comprised 17% of the Company’s portfolio, based on the estimated value of its real estate investments as of that date. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. In addition, the rapidly evolving nature of the pandemic makes it difficult to ascertain the long term impact it will have on commercial real estate markets and the Company’s investments. Nevertheless, the Coronavirus presents material uncertainty and risk with respect to the Company’s performance and financial results, such as the potential negative impact to occupancy at its properties, the potential closure of certain of its assets for an extended period, the potential for increased difficulty in obtaining financing, increased costs of operations, decrease in values of its real estate investments, changes in law and/or regulation, and uncertainty regarding government and regulatory policy. The Company is unable to estimate the impact the Coronavirus will have on its financial results at this time.