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REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables)
 12 Months Ended
Dec. 31, 2021
Real Estate [Abstract]  
Schedule of real estate properties by category
The following tables present additional detail related to our real estate portfolio, net ($ in thousands):
December 31, 2021December 31, 2020
Land$186,940 $220,511 
Building765,690 838,542 
In-place leases and other intangibles142,335 157,176 
Undepreciated real estate and related lease intangibles1,094,965 1,216,229 
Less: Accumulated depreciation and amortization(229,271)(230,925)
Real estate and related lease intangibles, net$865,694 $985,304 
Below market lease intangibles, net (other liabilities)(1)$(33,203)$(36,952)
(1) Below market lease intangibles, net is inclusive of $12.8 million and $12.0 million of accumulated amortization as of December 31, 2021 and 2020, respectively.
Schedule of depreciation and amortization expense recorded
The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands):
 Year Ended December 31,
 202120202019
Depreciation expense(1)$30,659 $32,383 $30,421 
Amortization expense7,142 6,696 7,991 
Total real estate depreciation and amortization expense$37,801 $39,079 $38,412 
(1)Depreciation expense on the consolidated statements of income also includes $99 thousand, $99 thousand and $99 thousand of depreciation on corporate fixed assets for the years ended December 31, 2021, 2020 and 2019, respectively.
Schedule of lease intangible assets
The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands):
 December 31, 2021December 31, 2020
Gross intangible assets(1)$146,593 $157,176 
Accumulated amortization67,500 66,014 
Net intangible assets$79,093 $91,162 
(1)Includes $3.8 million and $4.2 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of December 31, 2021 and December 31, 2020, respectively.
The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands):

 Year Ended December 31,
 202120202019
Reduction in operating lease income for amortization of above market lease intangibles acquired$(367)$(367)$(819)
Increase in operating lease income for amortization of below market lease intangibles acquired2,255 2,601 2,178 
Total$1,888 $2,234 $1,359 
Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned
The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of December 31, 2021 ($ in thousands):
Period Ending December 31,Adjustment to Operating Lease IncomeAmortization Expense
2022$891 $6,820 
2023891 5,241 
2024891 5,241 
2025891 5,241 
2026891 5,241 
Thereafter24,948 46,012 
Total$29,403 $73,796 
Schedule of contractual future minimum rent under leases
The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at December 31, 2021 ($ in thousands):
 
Period Ending December 31,Amount
2022$70,760 
202361,388 
202456,422 
202555,110 
202652,825 
Thereafter394,979 
Total$691,484 
Schedule of real estate properties acquired
During the year ended December 31, 2021, the Company acquired the following properties ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureOwnership Interest (1)
Purchases of real estate
August 2021ApartmentsStillwater, OK20,452 80.0%
Aggregate purchases of real estate$20,452 
Real estate acquired via foreclosure
February 2021(2)HotelMiami, FL$43,750 100.0%
December 2021(3)HotelSchaumburg, IL38,000 100.0%
Total real estate acquired via foreclosure81,750 
Total real estate acquisitions$102,202 
(1)Properties were consolidated as of acquisition date.
(2)In February 2021, the Company acquired a hotel in Miami, FL via foreclosure, recognizing a $25.8 thousand loss, which is included in its consolidated statements of income. The property previously served as collateral for a mortgage loan receivable held for investment with a basis of $45.1 million, net of an asset-specific loan loss provision of $1.2 million recorded in the three months ended December 31, 2020. In February 2021, the foreclosed property was sold without any gain or loss. The Company recorded no revenues from its 2021 acquisitions for the year ended December 31, 2021.
(3)In December 2021, the Company acquired a hotel in Schaumburg, IL via foreclosure. The property served as collateral for a mortgage loan receivable held for investment with a basis of $38.0 million. The Company obtained a third-party appraisal of the property. The $38.0 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 8.0% and a discount rate of 10.0%. There was no gain or loss resulting from the foreclosure of the loan.
During the year ended December 31, 2020, the Company acquired the following properties ($ in thousands):
Acquisition DateTypePrimary Location(s)Purchase Price/Fair Value on the Date of ForeclosureGain/(Loss) on Loan ForeclosureOwnership Interest (1)
Aggregate purchases of net leased real estate$7,440 100.0%
Real estate acquired via foreclosure
March 2020(2)LandLos Angeles, CA21,535 — (2)100.0%
June 2020(3)HotelWinston-Salem, NC3,900 — 100.0%
December 2020(4)HotelSouth Bend, IN3,875 — 100.0%
Total real estate acquired via foreclosure29,310 $— 
Total real estate acquisitions$36,750 
(1)Properties were consolidated as of acquisition date.
(2)In March 2020, the Company acquired a development property in Los Angeles, CA, via foreclosure. This property previously served as collateral for a mortgage loan receivable held for investment with a basis of $21.6 million, net of an asset-specific loan loss provision of $2.0 million. The Company obtained a third-party appraisal of the property. Substantially all of the fair value was attributed to land. The $21.5 million fair value was determined using the sales comparison approach to value. Using this approach, the appraiser developed an opinion of the fee simple value of the underlying land by comparing the property to similar, recently sold properties in the surrounding or competing area. The Company recorded a $0.1 million loss resulting from the foreclosure of the loan. In December of 2021, the Company sold this property and recorded a $2.0 million loss on sale. Refer to “Sales” below.
(3)In June 2020, the Company acquired a hotel in Winston-Salem, NC via foreclosure. This property previously served as collateral for a mortgage loan receivable held for investment with a net basis of $3.8 million. The Company obtained a third-party appraisal of the property. The $3.9 million fair value was determined using the ground lease approach and the income approach to value. The appraiser utilized a terminal capitalization rate of 9.50% and a discount rate of 13.50%. There was no gain or loss resulting from the foreclosure of the loan. In September 2020, the foreclosed property was sold for a gain of $0.8 million.
(4)In December 2020, the Company acquired a hotel in South Bend, IN, via foreclosure. The property previously served as collateral for a mortgage loan receivable held for investment with a basis of $4.1 million, net of an asset-specific loan loss provision of $0.5 million. The Company recorded a gain of $0.1 million resulting from the foreclosure of the loan. In December 2020, the foreclosed property was sold without any gain or loss.
Schedule of properties sold The Company sold the following properties during the year ended December 31, 2021 ($ in thousands):
Sales DateTypePrimary Location(s)Net Sales ProceedsNet Book ValueRealized Gain/(Loss)Properties
February 2021HotelMiami, FL$43,750 $43,750 $— 1 
June 2021Net LeaseNorth Dartmouth, MA38,732 19,343 19,389 1 
August 2021Net LeasePittsfield, MA18,651 10,564 8,087 1 
August 2021Net LeaseAnkeny, IA19,021 13,341 5,680 1 
August 2021ApartmentsArlington/Fort Worth, TX26,496 22,498 3,998 2 
November 2021Net LeaseBessemer City, NC33,447 21,333 12,114 1 
December 2021LandLos Angeles, CA19,469 21,452 (1,983)1 
December 2021Net LeaseSnellville, GA9,695 5,483 4,212 1 
December 2021Net LeaseColumbia, SC9,941 5,674 4,269 1 
Totals$219,202 $163,438 $55,766 
The Company sold the following properties during the year ended December 31, 2020 ($ in thousands):
Sales DateTypePrimary Location(s)Net Sales ProceedsNet Book ValueRealized Gain/(Loss)PropertiesUnits SoldUnits Remaining
VariousCondominiumMiami, FL$1,832 $1,821 $11 — 6 — 
March 2020OfficeRichmond, VA22,527 14,829 7,698 7 — — 
March 2020OfficeRichmond, VA6,932 4,109 2,823 1 — — 
August 2020Net LeaseBellport, NY19,434 15,012 4,422 1 — — 
September 2020WarehouseLithia Springs, GA39,491 23,187 16,304 1 — — 
September 2020HotelWinston Salem, NC4,647 3,803 844 1 — — 
December 2020HotelSouth Bend, IN3,875 3,875 — 1 — — 
Totals$98,738 $66,636 $32,102 
The Company sold the following properties during the year ended December 31, 2019 ($ in thousands):
Sales DateTypePrimary Location(s)Net Sales ProceedsNet Book ValueRealized Gain/(Loss)PropertiesUnits SoldUnits Remaining
November 2019CondominiumLas Vegas, NV$809 $415 $394 — 1 — 
VariousCondominiumMiami, FL4,715 4,282 433 — 16 6 
April 2019OfficeWayne, NJ1,729 4,799 (3,070)1 — — 
May 2019OfficeGrand Rapids, MI10,019 8,254 1,765 1 — — 
August 2019IndustrialGrand Rapids, MI6,970 4,920 2,050 1 — — 
Totals$24,242 $22,670 $1,572 
(1) Realized gain (loss) on the sale of real estate, net on the consolidated statements of income also includes $1.4 million of realized loss on the disposal of fixed assets for the year ended December 31, 2019.