REAL ESTATE ASSETS

9 Months Ended

Sep. 30, 2020

In conjunction with Diamondback’s contribution of Tall Towers, the Predecessor allocated the $110.0 million purchase price between real estate assets and intangible lease assets related to in-place and above-market leases. During the three months ended March 31, 2019, as part of the Energen contribution, Diamondback contributed an office building located in Midland Texas with a value of $9.2 million. The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Partnership’s real estate assets and intangible lease assets:


		As of
	Estimated Useful Lives	September 30, 2020		December 31, 2019
	(Years)	(In thousands)
Buildings	20-30	$	102,553	$	102,375
Tenant improvements	15	4,506		4,501
Land	N/A	2,437		2,437
Land improvements	15	484		484
Total real estate assets		109,980		109,797
Less: accumulated depreciation		(12,165)		(8,681)
Total investment in real estate, net		$	97,815	$	101,116


		As of
	Weighted Average Useful Lives	September 30, 2020		December 31, 2019
	(Months)	(In thousands)
In-place lease intangibles	45	$	11,275	$	11,389
Less: accumulated amortization		(7,687)		(5,927)
In-place lease intangibles, net		3,588		5,462

Above-market lease intangibles	45	3,623		3,623
Less: accumulated amortization		(1,466)		(1,015)
Above-market lease intangibles, net		2,157		2,608
Total intangible lease assets, net		$	5,745	$	8,070

Depreciation and amortization expense for real estate assets was $1.7 million and $1.9 million for the three months ended September 30, 2020 and 2019, respectively. Depreciation and amortization expense for real estate assets was $5.2 million and $5.8 million for the nine months ended September 30, 2020 and 2019, respectively.

The following table presents the Partnership’s estimated amortization expense related to lease intangibles for the periods indicated (in thousands):


Remainder of
2020		2021		2022		2023		2024		Thereafter
$	583	$	1,779	$	663	$	728	$	814	$	1,178