Real Estate Acquisitions

3 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Real Estate Acquisitions

Real Estate Acquisitions

Property Acquisitions

During the first quarter of 2017, the Company acquired 10 real estate properties totaling approximately 145,000 square feet for an aggregate purchase price of approximately $28.5 million, including cash consideration of approximately $28.4 million. Upon acquisition, the properties were 95.2% leased in the aggregate with lease expirations ranging from 2018 through 2032. Amounts reflected in revenues and net income for the three months ended March 31, 2017 for these properties was approximately $210,000 and $83,000, respectively. Transaction costs totaling approximately $393,000 related to these acquisitions were capitalized in the period as part of the real estate assets. During the first quarter of 2017, the Company also acquired a property, adjacent to its corporate office, for a cash purchase price of approximately $0.9 million. The property is currently leased to a tenant but the Company intends to use the property for future expansion of its corporate office.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the property acquisitions during the first quarter of 2017.

	Estimated Fair Value			Estimated Useful Life
	(In thousands)			(In years)
Land	$	3,592
Buildings	21,964			20 - 40
Intangibles:
At-market lease intangibles	4,144			1.4 - 4.2
Total intangibles	4,144
Accounts receivable and other assets assumed	16
Accounts payable, accrued liabilities and other liabilities assumed (1)	(192		)
Prorated rent, interest and operating expense reimbursement amounts collected	(213		)
Total cash consideration	$	29,311
(1) Includes security deposits and tenant improvement allowances received.