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 June 30, 2017 and December 31, 2016:


	As of
	June 30, 2017		December 31, 2016
Intangible Lease Assets:
Value of In-Place Leases	$	34,382,237	$	30,978,776
Value of Above Market In-Place Leases		2,976,322		2,905,624
Value of Intangible Leasing Costs		8,480,647		7,010,192
Sub-total Intangible Lease Assets		45,839,206		40,894,592
Accumulated Amortization		(8,692,626)		(6,168,770)
Sub-total Intangible Lease Assets—Net		37,146,580		34,725,822
Intangible Lease Liabilities (included in accrued and other liabilities):
Value of Below Market In-Place Leases		(34,882,965)		(33,370,217)
Sub-total Intangible Lease Liabilities		(34,882,965)		(33,370,217)
Accumulated Amortization		4,179,822		2,852,166
Sub-total Intangible Lease Liabilities—Net		(30,703,143)		(30,518,051)
Total Intangible Assets and Liabilities—Net	$	6,443,437	$	4,207,771

Total net amortization related to intangible lease assets and liabilities was approximately $639,000 and $(50,000) for the three months ended June 30, 2017 and 2016, respectively. During the three months ended June 30, 2017 and 2016, approximately $1.2 million and $506,000, respectively, was included in depreciation and amortization while approximately $550,000 and $556,000, respectively, was included as an increase to income properties revenue in the consolidated statements of operations.

Total net amortization related to intangible lease assets and liabilities was approximately $1.2 million and $(74,000) for the six months ended June 30, 2017 and 2016, respectively. During the six months ended June 30, 2017 and 2016, approximately $2.3 million and $1.1 million, respectively, was included in depreciation and amortization while approximately $1.1 million and $1.2 million, respectively, 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 2017	$	3,603,948	$	(1,656,675)	$	1,947,273
2018		4,805,264		(2,218,524)		2,586,740
2019		4,691,030		(2,212,206)		2,478,824
2020		3,911,362		(2,167,289)		1,744,073
2021		2,564,441		(2,300,005)		264,436
2022		2,105,594		(2,371,166)		(265,572)
Thereafter		13,109,846		(15,422,183)		(2,312,337)
Total	$	34,791,485	$	(28,348,048)	$	6,443,437