REAL ESTATE HELD FOR INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2016

The following table summarizes the Company’s real estate held for investment as of September 30, 2016 and December 31, 2015, respectively (in thousands):



	September 30, 2016			December 31, 2015
Land	$	321,226		$	223,201
Buildings and improvements	849,496			646,979
Tenant origination and absorption costs	52,297			43,894
Total real estate, cost	1,223,019			914,074
Accumulated depreciation and amortization	(113,594		)	(91,560		)
Total real estate, net	$	1,109,425		$	822,514

The following table provides summary information regarding the Company’s real estate held for investment as of September 30, 2016 (in thousands):



Property	Date Acquired or Foreclosed on	City	State	Property Type	Land		Building and Improvements		Tenant Origination and Absorption Costs		Total Real Estate at Cost		Accumulated Depreciation and Amortization			Total Real Estate, Net		Ownership %
Northridge Center I & II	03/25/2011	Atlanta	GA	Office	$	2,234	$	7,477	$	—	$	9,711	$	(2,309	)	$	7,402	100.0	%
Iron Point Business Park	06/21/2011	Folsom	CA	Office	2,671		19,629		—		22,300		(4,707		)	17,593		100.0	%
Richardson Portfolio:
Palisades Central I	11/23/2011	Richardson	TX	Office	1,037		10,268		657		11,962		(2,463		)	9,499		90.0	%
Palisades Central II	11/23/2011	Richardson	TX	Office	810		18,066		749		19,625		(4,806		)	14,819		90.0	%
Greenway I	11/23/2011	Richardson	TX	Office	561		2,287		—		2,848		(631		)	2,217		90.0	%
Greenway III	11/23/2011	Richardson	TX	Office	702		3,698		559		4,959		(1,399		)	3,560		90.0	%
Undeveloped Land	11/23/2011	Richardson	TX	Undeveloped Land	3,134		—		—		3,134		—			3,134		90.0	%
Total Richardson Portfolio					6,244		34,319		1,965		42,528		(9,299		)	33,229
Park Highlands ⁽¹⁾	12/30/2011	North Las Vegas	NV	Undeveloped Land	33,284		—		—		33,284		—			33,284		⁽¹⁾
Bellevue Technology Center	07/31/2012	Bellevue	WA	Office	25,506		56,647		3,813		85,966		(10,480		)	75,486		100.0	%
Powers Ferry Landing East	09/24/2012	Atlanta	GA	Office	1,643		8,016		99		9,758		(2,185		)	7,573		100.0	%
1800 West Loop	12/04/2012	Houston	TX	Office	8,360		60,546		5,079		73,985		(12,623		)	61,362		100.0	%
West Loop I & II	12/07/2012	Houston	TX	Office	7,300		31,535		1,864		40,699		(5,439		)	35,260		100.0	%
Burbank Collection	12/12/2012	Burbank	CA	Retail	4,175		10,229		725		15,129		(1,591		)	13,538		90.0	%
Austin Suburban Portfolio	03/28/2013	Austin	TX	Office	8,288		68,990		2,709		79,987		(11,239		)	68,748		100.0	%
Westmoor Center	06/12/2013	Westminster	CO	Office	10,058		65,240		5,671		80,969		(11,881		)	69,088		100.0	%
Central Building	07/10/2013	Seattle	WA	Office	7,015		26,942		1,914		35,871		(4,141		)	31,730		100.0	%
50 Congress Street	07/11/2013	Boston	MA	Office	9,876		41,090		2,439		53,405		(6,255		)	47,150		100.0	%
1180 Raymond	08/20/2013	Newark	NJ	Apartment	8,292		37,445		136		45,873		(3,730		)	42,143		100.0	%
Park Highlands II ⁽²⁾	12/10/2013	North Las Vegas	NV	Undeveloped Land	23,065		—		—		23,065		—			23,065		100.0	%
Maitland Promenade II	12/18/2013	Orlando	FL	Office	3,434		24,995		3,757		32,186		(4,585		)	27,601		100.0	%
Plaza Buildings	01/14/2014	Bellevue	WA	Office	53,040		138,468		7,523		199,031		(17,065		)	181,966		100.0	%
424 Bedford	01/31/2014	Brooklyn	NY	Apartment	8,860		25,408		—		34,268		(1,862		)	32,406		90.0	%
Richardson Land II	09/04/2014	Richardson	TX	Undeveloped Land	3,422		—		—		3,422		—			3,422		90.0	%
Westpark Portfolio	05/10/2016	Redmond	WA	Office/Flex/Industrial	36,085		82,355		8,913		127,353		(2,805		)	124,548		100.0	%
353 Sacramento	07/11/2016	San Francisco	CA	Office	58,374		110,165		5,690		174,229		(1,398		)	172,831		100.0	%
					$	321,226	$	849,496	$	52,297	$	1,223,019	$	(113,594	)	$	1,109,425

_____________________

⁽¹⁾On March 18, 2016, the Company increased its membership interest in the Park Highlands joint venture from 50.1% to 51.58% by acquiring an additional 1.48% membership interest from one of the joint venture partners. On June 6, 2016, the Company increased its membership interest in the Park Highlands joint venture from 51.58% to 97.62% by acquiring an additional 46.04% membership interest from one of the joint venture partners. On June 25, 2016, the Company increased its membership interest in the Park Highlands joint venture from 97.62% to 100% by acquiring the remaining 2.38% membership interest from the remaining joint venture partner. On September 7, 2016, a subsidiary of the Company that owns a portion of Park Highlands, sold 820 units of 10% Class A non-voting preferred membership units for $0.8 million to accredited investors. The amount of the Class A non-voting preferred membership units raised, net of offering costs, is included in other liabilities on the accompanying consolidated balance sheets.

⁽²⁾ On March 18, 2016, the Company increased its membership interest in the Park Highlands II joint venture from 99.5% to 100% by acquiring the remaining 0.5% membership interest from its joint venture partner.

Schedule of Future Minimum Rental Income for Company's Properties

As of September 30, 2016, the future minimum rental income from the Company’s properties, excluding apartment leases, under non-cancelable operating leases was as follows (in thousands):



October 1, 2016 through December 31, 2016	$	24,511
2017	97,632
2018	82,183
2019	66,784
2020	51,453
Thereafter	114,798
	$	437,361

Schedules of Concentration of Risk, by Risk Factor

As of September 30, 2016, the Company’s commercial real estate properties were leased to approximately 600 tenants over a diverse range of industries and geographic areas. The Company’s highest tenant industry concentrations (greater than 10% of annualized base rent) were as follows:



Industry	Number of Tenants	Annualized Base Rent ⁽¹⁾ (in thousands)		Percentage of Annualized Base Rent
Computer System Design & Programming	56	$	11,502	11.0	%
Finance	55	11,236		10.7	%
		$	22,738	21.7	%

_____________________

⁽¹⁾Annualized base rent represents annualized contractual base rental income as of September 30, 2016, adjusted to straight-line any contractual tenant concessions (including free rent), rent increases and rent decreases from the lease’s inception through the balance of the lease term.