Property Acquisitions

12 Months Ended

Dec. 31, 2023

NOTE 13. — PROPERTY ACQUISITIONS

2023

During the year ended December 31, 2023, we acquired fee simple interests in 54 properties with an aggregate purchase price of $248.1 million and allocated the purchase price as follows (in thousands):


					Purchase Price Allocation
Asset Type	Properties		Purchase Price		Land		Buildings & Improve- ments		In-Place Leases		Intangible Market Lease Assets		Intangible Market Lease Liabilities
Express tunnel car washes		26	$	137,827	$	37,198	$	87,113	$	14,540	$	637	$	(1,661	)
Convenience stores (a)		12		74,244		25,283		42,437		6,524		—		—
Auto service centers		13		29,908		6,277		12,498		3,242		8,311		(420	)
Drive-thru QSRs		3		6,093		2,625		2,737		582		149		—
		54	$	248,072	$	71,383	$	144,785	$	24,888	$	9,097	$	(2,081	)

(a)

Purchase price and land allocation include $0.9 million related to the acquisition of a land parcel adjacent to an existing site which was subsequently combined with the existing site into a single property upon redevelopment of the existing site.

In addition, as part of larger sale-leaseback transactions that included certain of the express tunnel car washes referenced above, we acquired 15 express tunnel car washes that were under construction for $45.8 million and committed to provide additional funding to our tenant during the construction period to complete the development of these properties. These 15 properties did not meet the criteria for sale-leaseback accounting and are accounted for as finance receivables. Accordingly, this initial investment and all subsequent fundings made during the construction period are recorded within notes and mortgages receivable on our consolidated balance sheets, and rental payments resulting from these investments are recorded within interest on notes and mortgages receivable on our consolidated statements of operations. At the end of construction period, we will recognize the purchase of the assets, remove the finance receivables from our consolidated balance sheets, and began to record rental income from the operating lease.

During the year ended December 31, 2023, we advanced an additional $15.7 million and, in total, we funded $61.5 million related to these 15 properties. The construction at one property was completed during the year ended December 31, 2023, and at the end of the construction period, we recognized the purchase of the assets, removed the finance receivables of $3.8 million, recorded an acquisition, as reflected in table above, and begin to record rental income from the operating leases.

These transactions also include provisions that require us, upon the achievement by the tenant of certain financial performance targets within a defined period, to pay additional amounts to the tenant. Whether we will have to make any payments under these provisions is not probable or reasonably estimable at this time.

2022

During the year ended December 31, 2022, we acquired fee simple interests in 40 properties for an aggregate purchase price of $137.3 million and allocated the purchase price as follows (in thousands):


					Purchase Price Allocation
Asset Type	Properties		Purchase Price		Land		Buildings & Improve- ments		In-Place Leases		Intangible Market Lease Assets		Intangible Market Lease Liabilities
Convenience stores		16	$	67,528	$	12,727	$	49,871	$	5,545	$	403	$	(1,018	)
Express tunnel car washes		9		43,874		20,573		18,888		4,413		—		—
Auto service centers		14		22,912		2,621		17,516		2,823		—		(48	)
Drive-thru QSRs		1		2,961		702		2,182		77		—		—
		40	$	137,275	$	36,623	$	88,457	$	12,858	$	403	$	(1,066	)