Real Estate Acquired

12 Months Ended

Dec. 31, 2013

Real Estate [Abstract]

Real Estate Acquired

REAL ESTATE ACQUIRED

4469 Connecticut Avenue

In February 2011, the Company purchased for $1.6 million4469 Connecticut Avenue, a vacant one space retail property, located adjacent to Van Ness Square in northwest Washington, DC and incurred acquisition costs of $74,000.

Kentlands Square II

In September 2011, the Company purchased for $74.5 millionKentlands Square II, a retail property located adjacent to the Company’s Kentlands Square I and Kentlands Place shopping centers in Gaithersburg, Maryland, and incurred acquisition costs of $1.1 million.

Severna Park MarketPlace

In September 2011, the Company purchased for $61.0 millionSeverna Park MarketPlace, a retail property located in Severna Park, Maryland, and incurred acquisition costs of $0.8 million.

Cranberry Square

In September 2011, the Company purchased for $33.0 millionCranberry Square, a retail property located in Westminster, Maryland, and incurred acquisition costs of $0.5 million.

1500 Rockville Pike

In December 2012, the Company purchased for $22.4 million1500 Rockville Pike, a retail property located in Rockville, Maryland, and incurred acquisition costs of $0.6 million.

5541 Nicholson Lane

In December 2012, the Company purchased for $11.7 million5541 Nicholson Lane, a retail property located in Rockville, Maryland, and incurred acquisition costs of $0.5 million.

Kentlands pad

In August 2013, the Company purchased for $4.3 million, a retail pad with a 7,100 square feet restaurant located in Gaithersburg, Maryland, which is contiguous with and an expansion of the Company's other Kentlands assets, and incurred acquisition costs of $99,000.

Hunt Club pad

In December 2013, the Company purchased for $0.8 million, including acquisition costs, a retail pad with a 5,500 square foot vacant building located in Apopka, Florida, which is contiguous with and an expansion of the Company's other Hunt Club asset.

Allocation of Purchase Price of Real Estate Acquired

The Company allocates the purchase price of real estate investment properties to various components, such as land, buildings and intangibles related to in-place leases and customer relationships, based on their fair values. See Note 2. Summary of Significant Accounting Policies-Real Estate Investment Properties.

During 2013, the Company purchased one property at a cost of $4.3 million and incurred acquisition costs of $106,000. Of the total purchase price, $2.0 million was allocated to buildings and $2.3 million was allocated to land. No amounts were allocated to in-place, above-market, or below-market leases.

During 2012, the Company purchased two properties at an aggregate cost of $34.1 million and incurred acquisition costs of $1.1 million. Of the total purchase price, $3.8 million was allocated to buildings, $30.4 million was allocated to land, and $0.5 million was allocated to in-place leases and $0.7 million was allocated to below market leases which is included in deferred income and is being accreted to income over the lives of the underlying leases, which is approximately 3.1 years.

During 2011, the Company purchased four properties at an aggregate cost of $170.1 million, and incurred acquisition costs of $2.5 million. Of the total purchase price, $5.5 million was allocated to below market leases which is included in deferred income and is being accreted to income over the lives of the underlying leases, or approximately 10.9 years, and $28,000 was allocated to above market leases, which is included as a deferred asset in accounts receivable and is being amortized against income over the lives of the underlying leases, which is approximately 4.1 years.

The allocation of the purchase prices for Severna Park MarketPlace, Kentlands Square II, and Cranberry Square to the acquired assets and liabilities based on their fair values was as follows:

(In thousands)	Kentlands Square II			Severna Park MarketPlace			Cranberry Square			Three Property Total
Land	$	20,500		$	12,700		$	6,700		$	39,900
Buildings	51,973			50,554			24,878			127,405
In-Place Leases	2,697			2,433			1,499			6,629
Above Market Rents	6			4			18			28
Below Market Rents	(676		)	(4,691		)	(95		)	(5,462		)
Total Purchase Price	$	74,500		$	61,000		$	33,000		$	168,500

The gross carrying amount of lease intangible assets included in deferred leasing costs as of December 31, 2013 and 2012 was $21.9 million and $21.9 million, respectively, and accumulated amortization was $16.7 million and $14.7 million, respectively. Amortization expense totaled $2.0 million, $2.0 million and $1.3 million, for the years ended December 31, 2013, 2012, and 2011, respectively. The gross carrying amount of below market lease intangible liabilities included in deferred income as of December 31, 2013 and 2012 was $24.8 million and $24.8 million, respectively, and accumulated amortization was $10.0 million and $8.3 million, respectively. Accretion income totaled $1.7 million, $1.6 million, and $1.2 million, for the years ended December 31, 2013, 2012, and 2011, respectively. The gross carrying amount of above market lease intangible assets included in accounts receivable as of December 31, 2013 and 2012 was $1.0 million and $1.0 million, respectively, and accumulated amortization was $974,100 and $929,100, respectively. Amortization expense totaled $45,000, $60,000 and $62,000, for the years ended December 31, 2013, 2012 and 2011, respectively.

As of December 31, 2013, scheduled amortization of intangible assets and deferred income related to in place leases is as follows:

(In thousands)	Lease acquisition costs		Above market leases		Below market leases
2014	$	1,066	$	21	$	1,458
2015	721		2		1,203
2016	566		3		1,095
2017	517		1		1,072
2018	480		1		1,044
Thereafter	1,926		—		8,893
Total	$	5,276	$	28	$	14,765