REAL ESTATE

9 Months Ended

Sep. 30, 2021

Property Asset Acquisitions

On July 7, 2021, we acquired Eastgate Office Park, consisting of an approximately 280,000 square feet, multi-tenant office campus in Bellevue, Washington. The purchase price was approximately $125 million, excluding closing costs of approximately $0.2 million.

On September 10, 2021, we acquired Corporate Campus East III in Bellevue, Washington, consisting of an approximately 161,000 square feet, multi-tenant office campus. The purchase price was approximately $84 million, less seller credits of (i) approximately $1.1 million of future rent abatement (ii) approximately $2.1 million of contractual tenant improvements and closing costs of approximately $0.1 million.

The properties were acquired with cash on hand.

The financial information set forth below summarizes the Company’s purchase price allocation for Eastgate Office Park and Corporate Campus East III during the nine months ended September 30, 2021 (in thousands):


	Eastgate Office Park		Corporate Campus East III
Land	$	35,822	$	23,203
Building	76,692		52,234
Land improvements	1,740		667
Furniture, fixtures, and equipment	4,305		3,091
Total real estate	118,559		79,195
Lease intangibles	7,023		5,341
Prepaid expenses and other assets	8		13
Assets acquired	$	125,590	$	84,549
Accounts payable and accrued expenses	$	(31)	$	(9)
Security deposits payable	(513)		(310)
Other liabilities and deferred credits	(535)		(3,844)
Liabilities assumed	$	(1,079)	$	(4,163)

The value allocated to lease intangibles is amortized over the related lease term as depreciation and amortization expense in the statement of income. The remaining weighted average amortization period as of September 30, 2021, is 3.5 years and 5.5 years for Eastgate Office Park and Corporate Campus East III, respectively.

The following table summarizes the operating results for Eastgate Office Park and Corporate Campus East III included in the Company's historical consolidated statement of operations for the period of acquisition through September 30, 2021 (in thousands):


	Eastgate Office Park		Corporate Campus East III		Total
Revenues	$	2,432	$	364	$	2,796
Operating expenses	$	(2,572)	$	(483)	$	(3,055)
Operating loss	$	(140)	$	(119)	$	(259)
Net loss attributable to American Assets Trust, Inc.	$	(139)	$	(119)	$	(258)