Real Estate Assets

12 Months Ended

Dec. 31, 2018

4. REAL ESTATE ASSETS

The Company owns a diverse portfolio of real estate assets. The primary types of properties the Company invests in are office, industrial, retail, and NNN leased model home properties located primarily in Southern California and Colorado, with four properties located in North Dakota. Our model home properties are located in ten states. As of December 31, 2018, the Company owned or had an equity interest in:

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Fourteen office buildings and one industrial buildings (“Office/Industrial Properties”) which total approximately 1,300,653 rentable square feet,

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Four retail shopping centers (“Retail Properties”) which total approximately 131,010 rentable square feet,

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One hundred forty-four model homes owned by our affiliated limited partnerships and one limited liability company (“Model Home Properties”).

The Company’s real estate assets consisted of the following as of December 31, 2018 and 2017:

			Real estate assets, net (in thousands)
Property Name	Acquired	Location	2018		2017
Garden Gateway Plaza	March 2007	Colorado Springs, Colorado	$	11,166	$	11,434
World Plaza	September 2007	San Bernardino, California		6,180		5,743
Executive Office Park	July 2008	Colorado Springs, Colorado		7,976		8,076
Waterman Plaza	August 2008	San Bernardino, California		4,977		5,624
Pacific Oaks Plaza (2)(3)	September 2008	Escondido, California		-		4,040
Morena Office Center (1)	January 2009	San Diego, California		4,716		4,870
Genesis Plaza	August 2010	San Diego, California		8,449		8,609
Dakota Center	May 2011	Fargo, North Dakota		9,139		9,635
Yucca Valley Retail Center (2)(4)	September 2011	Yucca Valley, California		-		6,605
Port of San Diego Complex (2)(5)	December 2011	San Diego, California		-		13,888
The Presidio	November 2012	Aurora, Colorado		6,499		6,415
Grand Pacific Center	March 2014	Bismarck, North Dakota		5,814		5,854
Union Terrace	August 2014	Lakewood, Colorado		7,983		8,287
Centennial Tech Center	December 2014	Colorado Springs, Colorado		12,960		13,431
Arapahoe Center	December 2014	Centennial, Colorado		10,251		10,638
Union Town Center	December 2014	Colorado Springs, Colorado		9,904		10,209
West Fargo Industrial	August 2015	Fargo, North Dakota		7,243		7,455
300 N.P.	August 2015	Fargo, North Dakota		3,543		3,636
Research Parkway	August 2015	Colorado Springs, Colorado		2,589		2,686
One Park Centre	August 2015	Westminster, Colorado		8,453		8,514
Highland Court	August 2015	Centennial, Colorado		11,845		12,287
Shea Center II	December 2015	Highlands Ranch, Colorado		22,658		23,352
Office/Industrial and Retail Properties				162,345		191,288
Model Home Properties	2011-2018	AZ, CA, FL, IL, NC, NJ, PA, SC, TX, UT		48,763		43,246
	Total real estate assets and lease intangibles held for investment, net		$	211,108	$	234,534

(1)	Property held for sale as of December 31, 2018 and sold for $5.6 million on January 15, 2019.

(2)	Property held for sale as of December 31, 2017.

(3)	Pacific Oaks Plaza was sold on December 27, 2018.

(4)	Yucca Valley Retail Center was sold on December 31, 2018.

(5)	Port of San Diego Complex was sold on December 20, 2018.

The Company’s commercial properties are leased to tenants under non-cancelable operating leases for which terms and expirations vary. Future minimum rental revenues under existing leases on Office/Industrial and Retail Properties as of December 31, 2018 are expected to be as follows:


2019	$	16,810,794
2020		14,429,223
2021		10,649,516
2022		7,425,332
2023		4,178,058
Thereafter		4,615,807
Totals	$	58,108,730

The Company generally rents Model Home Properties to homebuilders under non-cancelable lease agreements with a term of 18 months with an option to extend in six month increments. Future minimum rental revenues under existing leases on Model Home Properties as of December 31, 2018 are expected to be as follows:


2019	$	2,716,596
2020		1,421,568
	$	4,138,164