Real Estate Acquired

12 Months Ended

Dec. 31, 2017

Real Estate [Abstract]

Real Estate Acquired

REAL ESTATE ACQUIRED

700, 726, 730 and 750 N. Glebe Road

In August 2014, the Company purchased for $40.0 million, 750 N. Glebe Road and incurred acquisition costs of $0.4 million. In December 2014, the Company purchased for $2.8 million730 N. Glebe Road and incurred acquisition costs of $40,400. In September 2015, the Company purchased for $4.0 million726 N. Glebe Road and incurred acquisition costs of $0.1 million. In August 2016, the Company purchased for $7.2 million, including acquisition costs, 700 N. Glebe Road. These properties are contiguous and are located in Arlington, Virginia.

Westview pad

In February 2015, the Company purchased for $0.9 million including acquisition costs, a 1.1 acre retail pad site in Frederick, Maryland, which is contiguous with and an expansion of the Company's other Westview asset.

Thruway pad

In August 2016, the Company purchased for $3.1 million, a retail pad site with an occupied bank building in Winston Salem, North Carolina, and incurred acquisition costs of $60,400. The property is contiguous with and an expansion of the Company's Thruway asset.

Beacon Center

In the fourth quarter of 2016, the Company purchased for $22.7 million, including acquisition costs, the land underlying Beacon Center. The land was previously leased by the Company with an annual rent of approximately $60,000. The purchase price was funded in part by an $11.25 million increase to the existing mortgage collateralized by Beacon Center and in part by the Company’s revolving credit facility.

Southdale

In the fourth quarter of 2016, the Company purchased for $15.3 million, including acquisition costs, the land underlying Southdale. The land was previously leased by the Company with an annual rent of approximately $60,000. The purchase price was funded by the Company’s revolving credit facility.

Burtonsville Town Square

In January 2017, the Company purchased for $76.4 million, including acquisition costs, Burtonsville Town Square located in Burtonsville, Maryland.

Olney Shopping Center

In March 2017, the Company purchased for $3.1 million, including acquisition costs, the land underlying Olney Shopping Center. The land was previously leased by the Company with an annual rent of approximately $56,000. The purchase price was funded by the revolving credit facility.

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 relative fair values. See Note 2. Summary of Significant Accounting Policies-Real Estate Investment Properties.

During 2017, the Company purchased one property, Burtonsville Town Square, at a cost of $76.4 million, including acquisition costs. Of the total acquisition cost, $28.4 million was allocated to land, $45.8 million was allocated to buildings, $2.2 million was allocated to in-place leases, $0.6 million was allocated to above-market rent, and $(0.6) million was allocated to below-market rent, based on their relative fair values.

During 2016, the Company purchased two properties at an aggregate cost of $10.3 million, and incurred acquisition costs totaling $60,400. The purchase price was allocated to the assets acquired and liabilities assumed based on their fair value as shown in the following table.

(in thousands)	700 N. Glebe Road		Thruway Pad			Total
Land	$	7,236	$	2,196		$	9,432
Buildings	—		874			874
In-place Leases	—		93			93
Above Market Rent	—		—			—
Below Market Rent	—		(63		)	(63		)
Total Purchase Price	$	7,236	$	3,100		$	10,336

During 2015, the Company purchased one property, 726 N. Glebe Road, at a cost of $4.0 million and incurred acquisition costs of $0.1 million. Of the total purchase price, $3.9 million was allocated to land and $0.1 million was allocated to building. No amounts were allocated to in-place, above-market or below-market leases.

The gross carrying amount of lease intangible assets included in deferred leasing costs as of December 31, 2017 and 2016 was $12.3 million and $10.1 million, respectively, and accumulated amortization was $7.5 million and $6.4 million, respectively. Amortization expense totaled $1.1 million, $1.0 million and $1.3 million, for the years ended December 31, 2017, 2016, and 2015, respectively. The gross carrying amount of below market lease intangible liabilities included in deferred income as of December 31, 2017 and 2016 was $25.1 million and $25.1 million, respectively, and accumulated amortization was $11.8 million and $10.6 million, respectively. Accretion income totaled $1.7 million, $1.8 million, and $1.8 million, for the years ended December 31, 2017, 2016, and 2015, respectively. The gross carrying amount of above market lease intangible assets included in accounts receivable as of December 31, 2017 and 2016 was $0.6 million and $10,200, respectively, and accumulated amortization was $39,500 and $7,800, respectively. Amortization expense totaled $31,600, $1,500 and $1,500, for the years ended December 31, 2017, 2016 and 2015, respectively. The remaining weighted-average amortization period as of December 31, 2017 is 4.6 years, 5.8 years, and 8.8 years for lease acquisition costs, above market leases and below market leases, respectively.

As of December 31, 2017, 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
2018	$	982	$	33	$	1,652
2019	780		33		1,515
2020	653		33		1,433
2021	530		33		1,409
2022	390		33		1,306
Thereafter	1,547		409		6,029
Total	$	4,882	$	574	$	13,344