ACQUISITIONS AND DISPOSITIONS

3 Months Ended

Mar. 31, 2020

Acquisitions

During the three months ended March 31, 2019, no acquisitions were completed by the Company. During the three months ended March 31, 2020, we closed on the following acquisitions:

Date Purchased

Property Name

City

State

Square Feet

Purchase Price

(in thousands)

February 12, 2020

Kingswood Center

Brooklyn

130,000

90,212

February 12, 2020

Kingswood Crossing

Brooklyn

110,000

77,077

2020 Total

167,289

⁽¹⁾

⁽¹⁾ The total purchase price for the properties acquired during the three months ended March 31, 2020 includes $2.5 million of transaction costs incurred related to the transactions.

During the quarter, the Company acquired Kingswood Center and Kingswood Crossing for $167.3 million, including transaction costs. The properties are located along Kings Highway in the Midwood neighborhood of Brooklyn, NY and were funded via 1031 exchanges using cash proceeds from dispositions. Additionally, as part of the acquisition of Kingswood Center, the Company assumed a $65.5 million mortgage, which matures in 2028.

A portion of the acquisition of Kingswood Crossing was completed as a reverse Section 1031 like-kind exchange. We entered into a reverse Section 1031 like-kind exchange agreement with third-party intermediaries, which, for a maximum of 180 days, allowed us to defer for tax purposes, gains on the sale of other properties identified and sold within the period. Until the earlier of the termination of the exchange agreements or 180 days after the respective acquisition dates, the third-party intermediaries are the legal owner of the properties; however, we controlled the activities that most significantly impact each property and retained all of the economic benefits and risks associated with each property. Therefore, at the date of acquisition, we determined that we were the primary beneficiary of these variable interest entities and consolidated the properties and their operations as of the acquisition date.

The aggregate purchase price of the above property acquisitions has been allocated as follows:



Property Name	Land		Buildings and improvements		Identified intangible assets⁽¹⁾		Identified intangible liabilities⁽¹⁾			Debt premium			Total Purchase Price
(in thousands)
Kingswood Center	$	15,690	$	76,766	$	9,263	$	(4,534	)	$	(6,973	)	$	90,212
Kingswood Crossing	8,150		64,159		4,768		—			—			77,077
2020 Total	$	23,840	$	140,925	$	14,031	$	(4,534	)	$	(6,973	)	$	167,289

⁽¹⁾ As of March 31, 2020, the remaining weighted average amortization periods of the identified intangible assets and identified intangible liabilities acquired were 8.9 years and 11.3 years, respectively.

Dispositions

During the three months ended March 31, 2020, we disposed of three properties and received proceeds of $58.1 million, net of selling costs, resulting in a $39.8 million net gain on sale of real estate. The sale of all three dispositions were completed as 1031 exchanges with Kingswood Crossing as a result of the sales occurring within 180 days of the Company’s acquisition.

On March 15, 2019, we completed the sale of our property in Chicopee, MA for $18.2 million, net of selling costs, resulting in a $17.0 million gain on sale of real estate recognized during the three months ended March 31, 2019.