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Real Estate
 6 Months Ended
Jun. 30, 2019
Acquisition And Disposition Of Properties And Discontinued Operations [Abstract]  
Real Estate

2. Real Estate

The Company’s consolidated real estate is comprised of the following (in thousands):

 

 

 

June 30,

2019

 

 

December 31,

2018

 

Land

 

$

732,422

 

 

$

710,469

 

Buildings and improvements

 

 

2,638,585

 

 

 

2,594,828

 

Tenant improvements

 

 

170,523

 

 

 

151,154

 

Construction in progress

 

 

36,721

 

 

 

44,092

 

Properties under capital lease (Note 11)

 

 

—

 

 

 

76,965

 

Right-of-use assets - finance leases (Note 11)

 

 

93,796

 

 

 

—

 

Right-of-use assets - operating leases (Note 11)

 

 

56,279

 

 

 

—

 

Total

 

 

3,728,326

 

 

 

3,577,508

 

Less: Accumulated depreciation

 

 

(458,762

)

 

 

(416,657

)

Operating real estate, net

 

 

3,269,564

 

 

 

3,160,851

 

Real estate under development, at cost

 

 

211,199

 

 

 

120,297

 

Net investments in real estate

 

$

3,480,763

 

 

$

3,281,148

 

 

Acquisitions and Conversions

During the six months ended June 30, 2019 and the year ended December 31, 2018, the Company acquired the following consolidated retail properties (dollars in thousands):

 

Property and Location

 

Percent

Acquired

 

 

Date of

Acquisition

 

Purchase

Price

 

2019 Acquisitions

 

 

 

 

 

 

 

 

 

 

Core

 

 

 

 

 

 

 

 

 

 

Soho Portfolio - 41, 51 and 53 Greene Street - New York, NY (a)

 

100%

 

 

Mar 15, 2019

Mar 27, 2019 May 29, 2019

 

$

49,569

 

Subtotal Core

 

 

 

 

 

 

 

 

49,569

 

 

 

 

 

 

 

 

 

 

 

 

Fund V

 

 

 

 

 

 

 

 

 

 

Palm Coast Landing - Palm Coast, FL

 

100%

 

 

May 6, 2019

 

 

36,644

 

Lincoln Commons - Lincoln, RI

 

100%

 

 

June 21, 2019

 

 

54,299

 

Subtotal Fund V

 

 

 

 

 

 

 

 

90,943

 

Total 2019 Acquisitions

 

 

 

 

 

 

 

$

140,512

 

 

 

 

 

 

 

 

 

 

 

 

2018 Acquisitions and Conversions

 

 

 

 

 

 

 

 

 

 

Core

 

 

 

 

 

 

 

 

 

 

Bedford Green Land Parcel - Bedford Hills, NY

 

100%

 

 

Mar 23, 2018

 

$

1,337

 

Subtotal Core

 

 

 

 

 

 

 

 

1,337

 

 

 

 

 

 

 

 

 

 

 

 

Fund IV

 

 

 

 

 

 

 

 

 

 

Broughton Street Partners I - Savannah, GA (Conversion) (Note 4)

 

100%

 

 

Oct 11, 2018

 

 

36,104

 

Subtotal Fund IV

 

 

 

 

 

 

 

 

36,104

 

 

 

 

 

 

 

 

 

 

 

 

Fund V

 

 

 

 

 

 

 

 

 

 

Trussville Promenade - Trussville, AL

 

100%

 

 

Feb 21, 2018

 

 

45,259

 

Elk Grove Commons - Elk Grove, CA

 

100%

 

 

Jul 18, 2018

 

 

59,320

 

Hiram Pavilion - Hiram, GA

 

100%

 

 

Oct 23, 2018

 

 

44,443

 

Subtotal Fund V

 

 

 

 

 

 

 

 

149,022

 

Total 2018 Acquisitions and Conversions

 

 

 

 

 

 

 

$

186,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

The Soho Portfolio is a collection of six properties located in New York, NY with an aggregate purchase price of approximately $96.0 million. The acquisitions of the remaining three properties are expected to be finalized through early 2020.

 

The 2019 Acquisitions and 2018 Acquisitions and Conversions were considered asset acquisitions based on accounting guidance effective as of January 1, 2018. For the six months ended June 30, 2019 and 2018, the Company capitalized $0.6 million and $0.1 million, of acquisition costs. No debt was assumed in any of the 2019 Acquisitions or 2018 Acquisitions or Conversions.

Purchase Price Allocations

The purchase prices for the 2019 Acquisitions and the 2018 Acquisitions and Conversions were allocated to the acquired assets and assumed liabilities based on their estimated fair values at the dates of acquisition. The following table summarizes the allocation of the purchase price of properties acquired during the six months ended June 30, 2019 and the year ended December 31, 2018 (in thousands):

 

 

 

Six Months Ended June 30,

2019

 

 

Year Ended December 31,

2018

 

Net Assets Acquired

 

 

 

 

 

 

 

 

Land

 

$

35,865

 

 

$

38,086

 

Buildings and improvements

 

 

92,468

 

 

 

129,586

 

Acquisition-related intangible assets (Note 6)

 

 

17,355

 

 

 

26,693

 

Acquisition-related intangible liabilities (Note 6)

 

 

(5,176

)

 

 

(7,902

)

Net assets acquired

 

$

140,512

 

 

$

186,463

 

 

 

 

 

 

 

 

 

 

Consideration

 

 

 

 

 

 

 

 

Cash

 

$

138,716

 

 

$

147,985

 

Liabilities assumed

 

 

1,796

 

 

 

2,597

 

Existing interest in previously unconsolidated investment

 

 

—

 

 

 

35,881

 

Total consideration

 

$

140,512

 

 

$

186,463

 

 

Dispositions

During the six months ended June 30, 2019 and the year ended December 31, 2018, the Company disposed of the following consolidated properties (in thousands):

 

Property and Location

 

Owner

 

Date Sold

 

Sale Price

 

 

Gain

on Sale

 

2019 Dispositions

 

 

 

 

 

 

 

 

 

 

 

 

3104 M Street - Washington, DC (Note 4)

 

Fund III

 

Jan 24, 2019

 

$

10,500

 

 

$

2,014

 

210 Bowery - 1 Residential Condo - New York, NY

 

Fund IV

 

May 17, 2019

 

 

2,700

 

 

 

—

 

Total 2019 Dispositions

 

 

 

 

 

$

13,200

 

 

$

2,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018 Dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Sherman Avenue - New York, NY

 

Fund II

 

Apr 17, 2018

 

$

26,000

 

 

$

33

 

Lake Montclair - Dumfries, VA

 

Fund IV

 

Aug 27, 2018

 

 

22,450

 

 

 

2,923

 

1861 Union Street - San Francisco, CA

 

Fund IV

 

Aug 29, 2018

 

 

6,000

 

 

 

2,184

 

210 Bowery - 4 Residential Condos - New York, NY

 

Fund IV

 

Nov 30, 2018, Dec 10, 2018, Dec 17, 2018, Dec 21, 2018

 

 

12,050

 

 

 

—

 

Total 2018 Dispositions

 

 

 

 

 

$

66,500

 

 

$

5,140

 

 

The aggregate rental revenue, expenses and pre-tax income reported within continuing operations for the aforementioned consolidated properties that were sold during the three months ended June 30, 2019 and year ended December 31, 2018 were as follows (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

$

10

 

 

$

772

 

 

$

53

 

 

$

1,564

 

Expenses

 

 

(180

)

 

 

(947

)

 

 

(257

)

 

 

(1,691

)

Gain on disposition of properties

 

 

—

 

 

 

33

 

 

 

2,014

 

 

 

33

 

Net (income) loss attributable to noncontrolling interests

 

 

9

 

 

 

496

 

 

 

154

 

 

 

395

 

Net income attributable to Acadia

 

$

(161

)

 

$

354

 

 

$

1,964

 

 

$

301

 

 

Properties Held for Sale

At June 30, 2019, the Company had one property in Fund IV classified as held-for-sale, JFK Plaza, with total assets of $6.3 million. The property had insignificant net income for the six months ended June 30, 2019 and 2018.

Real Estate Under Development and Construction in Progress

Real estate under development represents the Company’s consolidated properties that have not yet been placed into service while undergoing substantial development or construction.

Development activity for the Company’s consolidated properties comprised the following during the periods presented (dollars in thousands):

 

 

 

December 31, 2018

 

 

Six Months Ended 2019

 

 

June 30, 2019

 

 

 

Number of

Properties

 

 

Carrying

Value

 

 

Transfers In

 

 

Capitalized

Costs

 

 

Transfers Out

 

 

Number of

Properties

 

 

Carrying

Value

 

Core

 

 

1

 

 

$

7,759

 

 

$

57,342

 

 

$

5,382

 

 

$

—

 

 

 

2

 

 

$

70,483

 

Fund II

 

 

—

 

 

 

7,462

 

 

 

—

 

 

 

1,254

 

 

 

—

 

 

 

—

 

 

 

8,716

 

Fund III

 

 

1

 

 

 

21,242

 

 

 

12,313

 

 

 

1,446

 

 

 

—

 

 

 

1

 

 

 

35,001

 

Fund IV

 

 

1

 

 

 

83,834

 

 

 

9,166

 

 

 

3,999

 

 

 

—

 

 

 

2

 

 

 

96,999

 

Total

 

 

3

 

 

$

120,297

 

 

$

78,821

 

 

$

12,081

 

 

$

—

 

 

 

5

 

 

$

211,199

 

 

The number of properties in the table above refers to projects comprising the entire property; however, certain projects represent a portion of a property. During the six months ended June 30, 2019, the Company placed the following projects into development:

 

 

•

a portion of City Center (Core)

 

•

a portion of Cortlandt Crossing (Fund III)

 

•

its 1238 Wisconsin Avenue property (Core, Note 11)

 

•

a portion of 110 University Place (Fund IV, Note 11)

 

No projects were placed into service during the six months ended, June 30, 2019. Fund II amounts relate to the City Point Phase III project. 

 

During the year ended December 31, 2018, the Company placed one Core development project into service. In addition to the consolidated projects noted above, the Company had one unconsolidated project in development at December 31, 2017, which it placed into service during the year ended December 31, 2018.

Construction in progress pertains to construction activity at the Company’s operating properties which are in service and continue to operate during the construction period.