Real Estate (Tables)

9 Months Ended

Sep. 30, 2020

The purchase price and other acquisition items for the property acquired during the nine months ended September 30, 2020 are shown below:

Property

Location

Tenant/Major Lessee

Acquisition Date

Purchase Price

Square Feet

Acquisition Fees and Expenses

Year of Lease Expiration

Pepsi Bottling Ventures

North Carolina

PepsiCo

2/5/2020

$34,937

526,320

$386

2032

Schedule of Asset Acquisition

The following table summarizes the purchase price allocation of the property acquired during the nine months ended September 30, 2020:


Property	Land	Building	Improvements	Tenant origination and absorption costs	In-place lease valuation - (below) / market	Debt discount / (premium)	Total (1)
Pepsi Bottling Ventures	$3,407	$26,813	$954	$4,970	$(712)	$(109)	$35,323

(1)The allocations noted above are based on a determination of the relative fair value of the total consideration provided and represent the amount paid including capitalized acquisition costs.

Schedule of In-Place Lease Valuation and Tenant Origination and Absorption Cost

The Company allocated a portion of the acquired and contributed real estate asset value to in-place lease valuation, tenant origination and absorption cost, and other intangibles, net of the write-off of intangibles, as of September 30, 2020 and December 31, 2019:

3. Real Estate (continued)


	September 30, 2020		December 31, 2019
In-place lease valuation (above market)	$	43,605	$	44,012
In-place lease valuation (above market) - accumulated amortization	(35,024)		(33,322)
In-place lease valuation (above market), net	$	8,581	$	10,690

Ground leasehold interest (below market)	2,254		2,254
Ground leasehold interest (below market) - accumulated amortization	(184)		(164)
Ground leasehold interest (below market), net	2,070		2,090
Intangible assets, net	$	10,651	$	12,780

In-place lease valuation (below market)	$	(68,334)	$	(67,622)
Land leasehold interest (above market)	(3,073)		(3,073)
In-place lease valuation & land leasehold interest - accumulated amortization	42,859		38,890
Intangible liabilities, net	$	(28,548)	$	(31,805)

Tenant origination and absorption cost	$	745,039	$	744,773
Tenant origination and absorption cost - accumulated amortization	(399,005)		(354,379)
Tenant origination and absorption cost, net	$	346,034	$	390,394

Schedule of Estimated Annual Amortization (Income) Expense

The following table sets forth the estimated annual amortization (income) expense for in-place lease valuation, net, tenant origination and absorption costs, ground leasehold improvements, and other leasing costs as of September 30, 2020 for the next five years:


Year	In-place lease valuation, net		Tenant origination and absorption costs		Ground leasehold interest		Other leasing costs
Remaining 2020	$	(525)	$	14,870	$	(73)	$	1,372
2021	$	(2,118)	$	57,846	$	(290)	$	6,057
2022	$	(2,518)	$	54,744	$	(290)	$	6,063
2023	$	(2,465)	$	50,184	$	(290)	$	5,934
2024	$	(1,648)	$	38,006	$	(291)	$	5,700
2025	$	(1,186)	$	27,450	$	(290)	$	5,580

Restrictions on Cash

Additionally, an ongoing replacement reserve is funded by certain tenants pursuant to each tenant’s respective lease as follows:


	Balance as of
	September 30, 2020		December 31, 2019
Cash reserves	$	22,909	$	48,129
Restricted lockbox	12,922		10,301
Total	$	35,831	$	58,430