Intangible Lease Assets and Liabilities

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7. INTANGIBLE LEASE ASSETS AND LIABILITIES

Intangible lease assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values.

Intangible lease assets and liabilities consisted of the following as of September 30, 2016 and December 31, 2015:


	As of
	September 30, 2016		December 31, 2015
Intangible Lease Assets:
Value of In-Place Leases	$	28,787,992	$	19,588,642
Value of Above Market In-Place Leases		1,198,228		1,469,143
Value of Intangible Leasing Costs		6,092,040		3,835,158
Sub-total Intangible Lease Assets		36,078,260		24,892,943
Accumulated Amortization		(5,076,176)		(4,805,792)
Sub-total Intangible Lease Assets—Net		31,002,084		20,087,151
Intangible Lease Liabilities (included in accrued and other liabilities):
Value of Below Market In-Place Leases		(33,142,746)		(32,315,741)
Sub-total Intangible Lease Liabilities		(33,142,746)		(32,315,741)
Accumulated Amortization		2,222,773		336,182
Sub-total Intangible Lease Liabilities—Net		(30,919,973)		(31,979,559)
Total Intangible Assets and Liabilities—Net	$	82,111	$	(11,892,408)

Total amortization related to intangible lease assets during the nine months ended September 30, 2016 and 2015 was approximately $1.7 million and $1.2 million, respectively, and was included in depreciation and amortization in the consolidated statements of operations. Total amortization related to intangible lease liabilities during the nine months ended September 30, 2016 was approximately $1.7 million and was included as an increase to income properties revenue in the consolidated statements of operations.

The estimated future amortization and accretion of intangible lease assets and liabilities is as follows:


			Future Accretion		Net Future
	Future		to Income		Amortization of
	Amortization		Property		Intangible Assets
Year Ending December 31,	Amount		Revenue		and Liabilities
Remainder of 2016	$	866,880	$	(572,294)	$	294,586
2017		3,427,929		(2,255,656)		1,172,273
2018		3,424,330		(2,257,688)		1,166,642
2019		3,424,330		(2,258,883)		1,165,447
2020		3,308,655		(2,256,726)		1,051,929
2021		1,918,705		(2,319,993)		(401,288)
Thereafter		13,686,309		(18,053,787)		(4,367,478)
Total	$	30,057,138	$	(29,975,027)	$	82,111