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Real Estate
 9 Months Ended
Sep. 30, 2024
Real Estate [Abstract]  
Real Estate Real Estate
The following table summarizes the Company’s gross investment in real estate as of:
September 30, 2024December 31, 2023
Land$212,312 $231,175 
Building and improvements1,836,900 1,968,314 
Tenant origination and absorption cost370,946 402,251 
Construction in progress1,017 8,371 
Total real estate$2,421,175 $2,610,111 
Acquisitions of Real Estate
The Company had no acquisitions of real estate during the nine months ended September 30, 2024.
Dispositions of Real Estate
For the nine months ended September 30, 2024, the Company sold nine properties for approximately $128.0 million and recognized a net gain of approximately $25.2 million, detailed in the table below:
Sale DateSegmentLocationGross Disposition PriceGain (Loss)
January 31, 2024OfficeJohnston, Iowa$30,000 $(17)
March 15, 2024OtherColumbia, Maryland15,000 5,326 
March 26, 2024OtherJefferson City, Missouri26,090 4,690 
March 28, 2024OtherHouston, Texas8,435 (822)
Three Months Ended March 31, 202479,525 9,177 
April 30, 2024OtherMechanicsburg, Pennsylvania8,650 (57)
Three Months Ended June 30, 20248,650 (57)
July 9, 2024OfficeSan Antonio, Texas 7,600 4,584 
July 24, 2024OtherConcord, North Carolina8,600 3,422 
September 4, 2024OtherBeavercreek, Ohio19,500 7,562 
September 19, 2024OtherHuntsville, Alabama4,100 557 
Three Months Ended September 30, 202439,800 16,125 
Total for the Nine Months Ended September 30, 2024$127,975 $25,245 
On January 31, 2024, the Company sold an Office segment property located in Johnston, Iowa to an affiliate of the existing tenant for $30.0 million. In connection with the sale, the Company issued a one-year $15.0 million promissory note, guaranteed by the tenant, which maintains an investment-grade credit rating. Because the note does not bear interest, we imputed interest at an annual rate of 5.0% and, therefore, recorded a discount of approximately $0.7 million. For the nine months ended September 30, 2024, the Company recognized $0.5 million of discount amortization related to the imputed interest, which is presented in “Other income (expenses)” on the consolidated statement of operations. As of September 30, 2024, the balance on the note was approximately $14.8 million, which is presented in “Other assets” on the consolidated balance sheets.
Real Estate Held for Sale
As of September 30, 2024, four Other segment properties met the criteria for classification as held for sale.
The following summary presents the major components of assets and liabilities related to the real estate property held for sale as of September 30, 2024:
ASSETSSeptember 30, 2024
Land$4,966 
Building and improvements37,205 
Tenant origination and absorption cost6,357 
Construction in Progress53 
Total real estate48,581 
Less: accumulated depreciation(15,441)
Total real estate, net33,140 
Deferred rent1,794 
Deferred leasing costs, net1,377 
Other assets, net145 
Total real estate and other assets held for sale$36,456 
LIABILITIES
Accrued expenses and other liabilities$1,267 
Liabilities of real estate assets held for sale$1,267 
Real Estate Impairments
Where indicators of impairment exist, the Company evaluates the recoverability of its real estate assets by comparing the carrying amounts of the assets to the estimated undiscounted cash flows. When the carrying amounts of the real estate assets are not recoverable based on the estimated undiscounted cash flows, the Company calculates an impairment charge in the amount the carrying value exceeds the estimated fair value of the real estate asset as of the measurement date.
During the three months ended March 31, 2024, the Company recorded a real estate impairment provision of approximately $1.4 million related to one Other segment property, which met the criteria for classification as held for sale. The impairment resulted from the potential sale and estimated selling price of the property, which impacted the recoverability of the asset.
During the three months ended June 30, 2024, the Company recorded a real estate impairment provision of approximately $6.5 million related to one Other segment property. The impairment resulted from the potential sale and estimated selling price of the property, which impacted the recoverability of the asset.
During the three months ended September 30, 2024, the Company recorded a real estate impairment provision of approximately $42.9 million related to three Other segment properties. The impairment resulted from changes in the current quarter related to potential sales and estimated selling prices of the properties, which impacted the recoverability of the assets.
Refer to Note 8. Fair Value Measurements for additional details regarding the fair value measurements used in determining the real estate impairments.
Real Estate and Acquired Lease Intangibles
The following table summarizes the Company’s allocation of 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, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
In-place lease valuation (above market) $16,674 $22,759 
In-place lease valuation (above market) - accumulated amortization(11,497)(16,616)
In-place lease valuation (above market), net5,177 6,143 
Intangibles - other32,028 32,028 
Intangibles - other - accumulated amortization(9,602)(8,481)
Intangibles - other, net22,426 23,547 
Intangible assets, net$27,603 $29,690 
In-place lease valuation (below market)$(39,205)$(42,534)
Land leasehold interest (above market)(3,072)(3,072)
Intangibles - other (above market)(135)(187)
In-place lease valuation & land leasehold interest - accumulated amortization28,528 29,770 
Intangible liabilities, net$(13,884)$(16,023)
Tenant origination and absorption cost $370,946 $402,251 
Tenant origination and absorption cost - accumulated amortization(214,837)(221,786)
Tenant origination and absorption cost, net$156,109 $180,465 
The amortization of the intangible assets and other leasing costs for the respective periods is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Above and below market leases, net$(269)$(421)$(900)$(834)
Tenant origination and absorption cost$6,836 $8,261 $21,483 $29,651 
Ground lease amortization (below market)$(98)$(98)$(291)$(290)
Other leasing costs amortization$500 $489 $1,471 $1,527