Real Estate Investments

Acquisitions

The following table presents the allocation of real estate assets acquired and liabilities assumed during the years ended December 31, 2018 and 2016. There were no acquisitions during the year ended December 31, 2017.



	Year Ended December 31,
(Dollar amounts in thousands)	2018			2016
Real estate investments, at cost:
Land	$	4,730		$	—
Building and improvements	9,245			148,647
Total tangible assets	13,975			148,647
Acquired intangibles:
In-place leases	2,166			27,433
Above-market lease assets	165			5,230
Below-market lease liabilities	(292		)	(5,277		)
Below-market ground lease asset	—			2,482
Total intangible assets, net	2,039			29,868
Total assets acquired, net	16,014			178,515
Mortgage notes payable used to acquire real estate investments	(10,000		)	(99,000		)
Other liabilities assumed	(66		)	(353		)
Cash paid for acquired real estate investment	$	5,948		$	79,162
Number of properties purchased	1			1

Future Minimum Base Cash Rental Payments

The following table presents future minimum base cash rental payments due to the Company over the next five years and thereafter. These amounts exclude contingent rent payments, as applicable, that may be collected based on provisions related to sales thresholds and increases in annual rent based on exceeding certain economic indexes, among other items.



(In thousands)	Future Minimum Base Rent Payments
2019	$	53,347
2020	51,404
2021	47,237
2022	44,018
2023	35,920
Thereafter	150,226
	$	382,152

Significant Tenants

As of December 31, 2018 and 2017 there were no tenants whose annualized rental income on a straight-line basis, based on leases commenced, represented greater than 10% of total annualized rental income for all portfolio properties on a straight-line basis.

Intangible Assets and Liabilities

Acquired intangible assets and lease liabilities consisted of the following as of December 31, 2018 and 2017:



	December 31, 2018						December 31, 2017
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Intangible assets:
In-place leases	$	59,542	$	27,535	$	32,007	$	62,142	$	22,147	$	39,995
Other intangibles	31,447		4,932		26,515		31,447		3,767		27,680
Below-market ground lease	2,482		126		2,356		2,482		76		2,406
Above-market leases	9,815		4,160		5,655		9,883		2,955		6,928
Acquired intangible assets	$	103,286	$	36,753	$	66,533	$	105,954	$	28,945	$	77,009
Intangible liabilities:
Below-market lease liabilities	$	33,397	$	11,883	$	21,514	$	34,068	$	9,315	$	24,753

The following table discloses the amounts recognized within the consolidated statements of operations and comprehensive loss related to amortization of in-place leases and other intangibles and amortization and accretion of above- and below-market lease assets and liabilities, net, for the periods presented:



	Year Ended December 31,
(In thousands)	2018			2017			2016
Amortization of in-place leases and other intangibles ⁽¹⁾	$	11,319		$	12,669		$	13,247
Amortization and (accretion) of above- and below-market leases, net ⁽²⁾	$	(2,094	)	$	(2,296	)	$	(2,403	)
Amortization of below-market ground lease ⁽³⁾	$	50		$	49		$	27

________________

⁽¹⁾ Reflected within depreciation and amortization expenses.

⁽²⁾ Reflected within rental income.

⁽³⁾ Reflected within property operating expenses.

The following table provides the projected amortization expenses and adjustments to revenues for the next five years as of December 31, 2018:



(In thousands)	2019			2020			2021			2022			2023
In-place leases	$	8,510		$	6,759		$	5,549		$	4,163		$	2,924
Other intangibles	1,165			1,165			937			708			708
Total to be included in depreciation and amortization	$	9,675		$	7,924		$	6,486		$	4,871		$	3,632

Above-market lease assets	$	1,283		$	1,164		$	1,091		$	874		$	725
Below-market lease liabilities	(3,082		)	(2,669		)	(2,339		)	(1,798		)	(1,597		)
Total to be included in rental income	$	(1,799	)	$	(1,505	)	$	(1,248	)	$	(924	)	$	(872	)

During the second quarter of 2018, the sole tenant in the Company’s 421 W. 54th Street property terminated its lease early and vacated the space. As a result, the Company accelerated the amortization expense on the in-place lease intangible asset associated with this tenant and recorded additional amortization expense of $0.3 million for the year ended December 31, 2018.