During the year ended December 31, 2024, we acquired nine operating properties in asset acquisitions, ICE – Dallas, HSI – Orlando, ICE – Orlando, Northrop Grumman – Dayton, Northrop Grumman – Aurora, IRS – Ogden, and a three building portfolio in Cary, NC, for an aggregate purchase price of $184.9 million. During the year ended December 31, 2023, we acquired three operating properties in asset acquisitions, CA – Anaheim, DHS – Atlanta and JUD – Newport News, for an aggregate purchase price of $63.1 million.

We allocated the aggregate purchase price of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities as follows (amounts in thousands):



	December 31, 2024			December 31, 2023
Real estate
Land	$	41,591		$	8,407
Building		104,618			37,328
Acquired tenant improvements		9,794			4,283
Total real estate		156,003			50,018
Intangible assets
In-place leases		24,552			9,538
Acquired leasing commissions		9,842			3,919
Total intangible assets		34,394			13,457
Intangible liabilities
Below-market leases		(5,469	)		—
Total intangible liabilities		(5,469	)		—
Prepaid expenses and other assets
Contingent consideration		—			41
Accounts payable, accrued expenses and other liabilities
Contingent consideration		—			(388	)
Purchase price		184,928			63,128

In addition to the above operating property activity, we acquired one land parcel for development, JUD – Flagstaff, during the year ended December 31, 2024.

No debt was assumed on acquisitions made during the years ended December 31, 2024 and 2023. The intangible assets and liabilities of the acquired operating properties have an aggregate weighted average amortization period of 9.12 years and 10.46 as of December 31, 2024 and 2023, respectively.

During the year ended December 31, 2024, we included $7.2 million of revenues and $2.9 million of net income in our Consolidated Statement of Operations related to the operating properties acquired. Additionally, we incurred $1.9 million of acquisition-related costs primarily consisting of internal costs associated with the property acquisitions.

During the year ended December 31, 2023, we included $1.5 million of revenues and $0.4 million of net income in our Consolidated Statement of Operations related to the operating properties acquired. Additionally, we incurred $1.7 million of acquisition-related costs primarily consisting of internal costs associated with the property acquisitions.

In July 2024, we entered into an agreement to sell a land parcel located in Lincoln, Nebraska for $2.3 million. The land parcel had a carrying value of $2.0 million. On October 3, 2024, we sold the land parcel for a gross sales price of $2.3 million and we recognized a gain on the sale of approximately $0.2 million for the year ended December 31, 2024.

No operating properties were disposed of during the year ended December 31, 2023.

Real estate and intangibles on our consolidated balance sheets consisted of the following (amounts in thousands):


	December 31, 2024			December 31, 2023
Real estate properties, net
Land	$	267,543		$	221,999
Building		2,490,330			2,349,846
Acquired tenant improvements		94,894			85,949
Construction in progress		184,512			52,426
Accumulated depreciation		(465,184	)		(391,077	)
Total Real estate properties, net	$	2,572,095		$	2,319,143
Intangible assets, net
In-place leases		302,302			280,604
Acquired leasing commissions		81,915			72,560
Above market leases		14,620			14,620
Payment in lieu of taxes		6,394			6,394
Accumulated amortization		(243,806	)		(225,725	)
Total Intangible assets, net	$	161,425		$	148,453
Intangible liabilities, net
Below market leases		(77,029	)		(72,037	)
Accumulated amortization		62,144			59,557
Total Intangible liabilities, net	$	(14,885	)	$	(12,480	)

During the third quarter of 2022, we recognized an impairment loss totaling approximately $5.5 million for its ICE – Otay property and reduced its carrying value to its estimated fair value, which declined due to changes in expected cash flows related to the tenant’s lease expiration in 2022. ICE – Otay is a 47,919 rentable square foot office building located in San Diego, California. See Note 8 for additional information.

Amortization of intangible assets within Depreciation and amortization expense was $20.3 million, $21.1 million and $25.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The projected amortization of total intangible assets and intangible liabilities as of December 31, 2024 are as follows (amounts in thousands):


	Total
Intangible assets
2025	$	21,499
2026		20,380
2027		18,453
2028		15,589
2029		12,342
Thereafter		73,162
	$	161,425
Intangible liabilities
2025	$	(2,931	)
2026		(2,693	)
2027		(2,469	)
2028		(1,924	)
2029		(1,238	)
Thereafter		(3,630	)
	$	(14,885	)

The following table summarizes the scheduled amortization of our acquired above- and below-market lease intangibles for each of the five succeeding years as of December 31, 2024 (amounts in thousands):


	Acquired Above-Market Lease Intangibles		Acquired Below-Market Lease Intangibles
2025	$	1,097	$	(2,931	)
2026		1,096		(2,693	)
2027		1,096		(2,469	)
2028		725		(1,924	)
2029		193		(1,238	)
Thereafter		641		(3,631	)

Above-market lease amortization reduces Rental income on our Consolidated Statements of Operations and below-market lease amortization increases Rental income on our Consolidated Statements of Operations. Amortization of above- and below-market lease intangibles increased Rental income by $1.9 million, $2.7 million and $3.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.