NOTE 8.

INTANGIBLE ASSETS AND LIABILITIES

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

Intangible assets and liabilities consisted of the following as of December 31, 2015 and 2014:

	As of
	December 31, 2015			December 31, 2014
Intangible Lease Assets:
Value of In-Place Leases, net	$	15,212,652		$	9,043,617
Value of Above Market In-Place Leases, net		1,291,560			330,424
Value of Intangible Leasing Costs, net		3,582,939			978,082
Sub-total Intangible Lease Assets		20,087,151			10,352,123
Intangible Lease Liabilities:
Value of Below Market In-Place Leases, net		(31,979,559	)		(669,693	)
Sub-total Intangible Lease Liabilities		(31,979,559	)		(669,693	)
Total Intangible Assets—Net	$	(11,892,408	)	$	9,682,430

During the year ended December 31, 2015, the value of in-place leases increased by approximately $8.1 million, the value of above-market in-place leases increased by approximately $1.1 million, the value of intangible leasing costs increased by approximately $2.9 million, and the value of below-market in-place leases increased by approximately $31.6 million due to the acquisition of three income properties offset by the disposal of approximately $526,000 due to the sale of six income properties and amortization of approximately $1.5 million for a net decrease during 2015 of approximately $21.5 million.

Approximately $31.6 million of the total below market in-place lease value is related to the Wells Fargo property located in Raleigh, North Carolina which was acquired on November 18, 2015.

NOTE 8.

INTANGIBLE ASSETS AND LIABILITIES (continued)

Total amortization of intangible assets and liabilities was approximately $1.5 million, $768,000, and $673,000 for the years ending December 31, 2015, 2014, and 2013, respectively. During the year ended December 31, 2015, approximately $1.7 million of the total amortization expense was included in depreciation and amortization expense while approximately $200,000 was included as an increase to income properties revenue in the consolidated statements of operations. During the years ended December 31, 2014 and 2013 total amortization expense was included in depreciation and amortization expense.

The estimated future amortization expense (income) related to net intangible assets and liabilities is as follows:

Year Ending December 31,	Amount
2016	$	101,183
2017		22,354
2018		3,813
2019		(12,217	)
2020		(239,230	)
Thereafter		(11,768,311	)
Total	$	(11,892,408	)

As of December 31, 2015, the weighted average amortization period of the total intangible assets and liabilities is 20 years.