REAL ESTATE INVESTMENTS

6 Months Ended

Apr. 30, 2018

(2) REAL ESTATE INVESTMENTS

In October 2017, the Company purchased a promissory note secured by a mortgage on 470 Main Street in Ridgefield, CT ("470 Main"), which comprises part of the Yankee Ridge retail and office mixed-use property. The note was purchased from the existing lender. In January 2018, the Company completed foreclosure of the note and became the owner of 470 Main. Total consideration paid for the note, including costs, totaled $3.1 million. 470 Main is a 24,200 square foot building with ground and first floor retail and second floor office space. The Company funded the note purchase with available cash.

In March 2018, the Company, through a wholly-owned subsidiary, purchased for $13.1 million, a 27,000 square foot shopping center located in Yonkers, NY ("Tanglewood"). The Company funded the purchase with available cash, borrowings on its unsecured revolving credit facility and the issuance of $11.0 million in unsecured promissory notes to the seller (see note 3).

The Company accounted for the purchase of 470 Main and Tanglewood as asset acquisitions and allocated the total consideration transferred for the acquisitions, including transaction costs, to the individual assets and liabilities acquired on a relative fair value basis.

The financial information set forth below summarizes the Company's purchase price allocation for the properties acquired during the six months ended April 30, 2018 (in thousands).

	470 Main		Tanglewood
Assets:
Land	$	293	$	7,525
Building and improvements	$	2,786	$	5,920
In-place leases	$	68	$	147
Above market leases	$	25	$	81

Liabilities:
In-place leases	$	-	$	-
Below Market Leases	$	43	$	396

The value of above and below market leases are amortized as a reduction/increase to base rental revenue over the term of the respective leases. The value of in-place leases described above are amortized as an expense over the terms of the respective leases.

For the six month periods ended April 30, 2018 and 2017, the net amortization of above-market and below-market leases was approximately $265,000 and $95,000, respectively, which is included in base rents in the accompanying consolidated statements of income.