Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

NOTE 8. INTANGIBLE ASSETS

Intangible assets consist of the in-place lease value associated with single-tenant income properties acquired by the Company. This in-place lease value was determined by estimating the cost of replacing the lease should it not be in-place as of the date of the acquisition of the property. Factors, such as foregone rent and leasing commissions among others, are taken into account to determine the in-place lease value. This value is amortized over the remaining term of the lease at the time the properties are purchased. At December 31, 2013, the in-place lease value totaled $6,359,438, net of amortization of $2,979,156. At December 31, 2012, the in-place lease value totaled $4,527,426, net of amortization of $2,877,412.

During the year ended December 31, 2013, the intangible in-place lease value increased by approximately $2.9 million due to the acquisition of nine income properties. During the year ended December 31, 2013, the intangible in-place lease value decreased by approximately $416,000 due to the sale of four income properties. The net intangible in-place lease value related to the PNC Bank property located in Alpharetta, Georgia, which was sold in February 2013, was included in Assets Held for Sale on the consolidated balance sheet as of December 31, 2012.

Amortization expense was $672,501, $411,309, and $423,989 for the years ending December 31, 2013, 2012, and 2011, respectively. The estimated amortization expense for each of the calendar years 2014–2018 is as follows:

Year Ending December 31,	Amount
2014	$	676,518
2015		676,518
2016		638,430
2017		547,676
2018		539,988
Thereafter		3,280,308
Total	$	6,359,438

As of December 31, 2013, the weighted average amortization period of the in-place lease value is 16 years.