Real Estate (Tables)

12 Months Ended

Dec. 31, 2021

Upon the effective time of the CCIT II Merger on March 1, 2021, each of CCIT II's 67.1 million issued and outstanding shares of common stock were converted into the right to receive 1.392 newly issued shares of the Class E common stock of the Company (approximately 93.5 million shares). Total consideration transferred is calculated as such:


	As of March 1, 2021
CCIT II's common stock shares prior to conversion	67,139,129
Exchange ratio	1.392
Implied GRT common stock issued as consideration	93,457,668
GRT's Class E NAV per share in effect at March 1, 2021	$	8.97
Total consideration	$	838,315

Schedule Of Asset Acquisition

The following table summarizes the final purchase price allocation based on a valuation report prepared by the Company's third-party valuation specialist that was subject to management's review and approval:


	March 1, 2021
Assets:
Cash assumed	$	2,721
Land	143,724
Building and improvements	992,779
Tenant origination and absorption cost	152,793
In-place lease valuation (above market)	11,591
Intangibles	27,788
Other assets	1,690
Total assets	$	1,333,086
Liabilities:
Debt	$	415,926
In-place lease valuation (below market)	10,026
Lease liability	4,616
Accounts payable and other liabilities	20,604
Total liabilities	$	451,172
Fair value of net assets acquired	881,914
Less: GRT's CCIT II Merger expenses	43,599
Fair value of net assets acquired, less GRT's CCIT II Merger expenses	$	838,315

The following table summarizes the purchase price allocation of the properties acquired during the year ended December 31, 2021:


Acquisition	Land		Building	Improvements	Tenant origination and absorption costs	Other Intangibles	In-place lease valuation - above/(below) market	Financing Leases	Total (1)
CCIT II Properties	$143,724	(2)	$958,166	$34,613	$152,793	$27,788	$1,565	$(3,681)	$1,314,968

(1)The allocations noted above are based on a determination of the relative fair value of the total consideration provided and represent the amount paid including capitalized acquisition costs.

(2)Approximately $5.6 million includes land allocation related to the Company's finance leases.

Schedule Of Costs Incurred

The following is a breakdown of the Company's costs incurred related to the CCIT II Merger:


	Amount
Termination fee of the CCIT II advisory agreement	$	28,439
Advisory and valuation fees	4,699
Legal, accounting and tax fees	5,115
Other fees	5,346
Total CCIT II Merger-related fees	$	43,599

Schedule of Company's Intangibles

The Company allocated a portion of the acquired and contributed real estate asset value to in-place lease valuation, tenant origination and absorption cost, and other intangibles, net of the write-off of intangibles for the years ended December 31, 2021 and 2020:


	December 31,
	2021		2020
In-place lease valuation (above market)	$	49,578	$	43,576
In-place lease valuation (above market) - accumulated amortization	(35,049)		(35,604)
In-place lease valuation (above market), net	14,529		7,972

Ground leasehold interest (below market)	2,254		2,254
Ground leasehold interest (below market) - accumulated amortization	(219)		(191)
Ground leasehold interest (below market), net	2,035		2,063

Intangibles - other	32,028		4,240
Intangibles - other - accumulated amortization	(5,492)		(4,240)
Intangibles - other, net	26,536		—
Intangible assets, net	$	43,100	$	10,035

In-place lease valuation (below market)	$	(77,859)	$	(68,334)
Land leasehold interest (above market)	(3,072)		(3,072)
In-place lease valuation & land leasehold interest - accumulated amortization	50,634		44,073
Intangibles - other (above market)	(329)		—
Intangible liabilities, net	$	(30,626)	$	(27,333)

Tenant origination and absorption cost	$	876,324	$	740,489
Tenant origination and absorption cost - accumulated amortization	(473,893)		(412,462)
Tenant origination and absorption cost, net	$	402,431	$	328,027

Schedule of Estimated Annual Amortization (Income) Expense

The amortization of the intangible assets and other leasing costs for the respective periods is as follows:


	Amortization (income) expense for the year ended December 31,
	2021		2020		2019
Above and below market leases, net	$	(1,323)	$	(2,292)	$	(3,201)
Tenant origination and absorption cost	$	78,389	$	62,459	$	69,502
Ground leasehold amortization (below market)	$	(349)	$	(291)	$	(52)
Other leasing costs amortization	$	6,209	$	4,908	$	3,581

The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, net, tenant origination and absorption costs, ground leasehold interest, and other leasing costs as of December 31, 2021 for the next five years:


Year	In-place lease valuation, net		Tenant origination and absorption costs		Ground leasehold interest		Other leasing costs
2022	$	(1,954)	$	76,375	$	(290)	$	6,123
2023	$	(2,618)	$	68,638	$	(290)	$	6,197
2024	$	(1,768)	$	54,990	$	(291)	$	6,060
2025	$	(1,297)	$	43,368	$	(290)	$	6,007
2026	$	(1,151)	$	38,702	$	(290)	$	5,290

Restrictions on Cash and Cash Equivalents

Additionally, an ongoing replacement reserve is funded by certain tenants pursuant to each tenant’s respective lease as follows:


	Balance as of December 31,
	2021		2020
Cash reserves	$	15,234	$	20,385
Restricted lockbox	2,288		13,967
Total	$	17,522	$	34,352