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Investments in Real Estate
 12 Months Ended
Dec. 31, 2019
Real Estate [Abstract]  
Investments in Real Estate

3. Investments in Real Estate

Investments in real estate, net consisted of the following ($ in thousands):

 

 

 

December 31, 2019

 

 

December 31, 2018

 

Building and building improvements

 

$

20,950,147

 

 

$

8,389,864

 

Land and land improvements

 

 

5,639,678

 

 

 

1,961,977

 

Furniture, fixtures and equipment

 

 

377,645

 

 

 

182,418

 

Right of use asset - operating leases(1)

 

 

114,011

 

 

 

—

 

Right of use asset - financing leases(1)

 

 

56,008

 

 

 

—

 

Total

 

 

27,137,489

 

 

 

10,534,259

 

Accumulated depreciation and amortization

 

 

(810,621

)

 

 

(274,572

)

Investments in real estate, net

 

$

26,326,868

 

 

$

10,259,687

 

 

(1) Refer to Note 12 for additional details on the Company’s leases.

 

During the year ended December 31, 2019, the Company acquired interests in 53 real estate investments, which were comprised of 443 industrial, 78 multifamily, 34 hotel, 21 self-storage, four retail, one office and one net lease property.

The following table provides further details of the properties acquired during the year ended December 31, 2019 ($ in thousands):

 

Segment and Investment

 

Number of Transactions

 

 

Number of Properties

 

 

Sq. Feet (in thousands)/ Units/ Keys(1)

 

Purchase Price (2)

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jupiter 12 Industrial Portfolio

 

 

1

 

 

 

316

 

 

63,965 sq. ft.

 

$

5,466,697

 

Other industrial properties

 

 

8

 

 

 

127

 

 

12,927 sq. ft.

 

 

1,118,566

 

Total Industrial properties

 

 

9

 

 

 

443

 

 

76,892 sq. ft.

 

 

6,585,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Roman Multifamily Portfolio

 

 

1

 

 

 

14

 

 

3,743 units

 

 

857,540

 

Other multifamily properties

 

 

31

 

 

 

64

 

 

19,576 units

 

 

3,679,446

 

Total Multifamily properties

 

 

32

 

 

 

78

 

 

23,319 units

 

 

4,536,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Lease:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bellagio

 

 

1

 

 

 

1

 

 

8,507 sq. ft.

 

 

4,265,530

 

Total Net Lease properties

 

 

1

 

 

 

1

 

 

8,507 sq. ft.

 

 

4,265,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel properties

 

 

5

 

 

 

34

 

 

5,826 keys

 

 

1,053,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail properties

 

 

4

 

 

 

4

 

 

750 sq. ft.

 

 

282,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office properties

 

 

1

 

 

 

1

 

 

228 sq. ft.

 

 

123,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other properties

 

 

1

 

 

 

21

 

 

1,347 sq. ft.

 

 

150,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments in Real Estate

 

 

53

 

 

 

582

 

 

 

 

$

16,997,068

 

 

(1)

Multifamily includes various forms of rental housing such as apartments, manufactured and student housing. Multifamily units include manufactured housing sites and student housing beds.

(2)

Purchase price is inclusive of acquisition-related costs.

During the year ended December 31, 2018, the Company acquired interests in 32 real estate investments, which were comprised of 270 industrial, 73 multifamily, 15 hotel, and one retail property.

The following table provides details of the properties acquired during the year ended December 31, 2018 ($ in thousands):

 

Segment and Investment

 

Number of Transactions

 

 

Number of Properties

 

 

Sq. Feet

(in thousands)/

Unit(1)/ Keys

 

Purchase Price(2)

 

 

Industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canyon Industrial Portfolio

 

 

1

 

 

 

146

 

 

21,719 sq. ft.

 

$

1,837,213

 

 

Meridian Industrial Portfolio

 

 

1

 

 

 

106

 

 

14,011 sq. ft.

 

 

962,979

 

 

Other industrial properties

 

 

4

 

 

 

18

 

 

5,563 sq. ft.

 

 

539,195

 

 

Total Industrial

 

 

6

 

 

 

270

 

 

41,293 sq. ft.

 

 

3,339,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multifamily:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EdR Student Housing Portfolio

 

 

1

 

 

 

20

 

 

10,610 units

 

 

1,230,857

 

 

Wave Multifamily Portfolio

 

 

1

 

 

 

6

 

 

2,199 units

 

 

423,135

 

 

Other multifamily properties

 

 

16

 

 

 

47

 

 

10,515 units

 

 

1,302,232

 

 

Total Multifamily

 

 

18

 

 

 

73

 

 

23,324 units

 

 

2,956,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JW Marriott San Antonio Hill Country Resort

 

 

1

 

 

 

1

 

 

1,002 keys

 

 

604,323

 

 

Other hotel properties

 

 

6

 

 

 

14

 

 

1,780 keys

 

 

359,135

 

 

Total Hotel

 

 

7

 

 

 

15

 

 

2,782 keys

 

 

963,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail properties

 

 

1

 

 

 

1

 

 

91 sq. ft.

 

 

34,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investments in Real Estate

 

 

32

 

 

 

359

 

 

 

 

$

7,293,807

 

 

 

(1)

Multifamily includes various forms of rental housing such as apartments, manufactured and student housing. Multifamily units include manufactured housing sites and student housing beds.

(2)

Purchase price is inclusive of acquisition-related costs.

 

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2019 ($ in thousands):

 

 

 

Jupiter 12 Industrial Portfolio

 

 

Bellagio

 

 

Roman Multifamily Portfolio

 

 

All

Other

 

 

Total

 

Building and building improvements

 

$

4,380,115

 

 

$

2,760,936

 

 

$

714,941

 

 

$

4,677,934

 

 

$

12,533,926

 

Land and land improvements

 

 

781,578

 

 

 

1,453,421

 

 

 

110,206

 

 

 

1,358,583

 

 

 

3,703,788

 

Furniture, fixtures and equipment

 

 

—

 

 

 

46,091

 

 

 

8,538

 

 

 

112,401

 

 

 

167,030

 

In-place lease intangibles

 

 

346,492

 

 

 

—

 

 

 

23,855

 

 

 

264,521

 

 

 

634,868

 

Above-market lease intangibles

 

 

14,105

 

 

 

—

 

 

 

—

 

 

 

6,794

 

 

 

20,899

 

Below-market ground lease(1)

 

 

15,985

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,985

 

Below-market lease intangibles

 

 

(71,578

)

 

 

—

 

 

 

—

 

 

 

(33,917

)

 

 

(105,495

)

Other

 

 

—

 

 

 

5,082

 

 

 

—

 

 

 

20,985

 

 

 

26,067

 

Total purchase price

 

$

5,466,697

 

 

$

4,265,530

 

 

$

857,540

 

 

$

6,407,301

 

 

$

16,997,068

 

Assumed mortgage notes(2)

 

 

703,853

 

 

 

—

 

 

 

237,981

 

 

 

260,879

 

 

 

1,202,713

 

Net purchase price

 

$

4,762,844

 

 

$

4,265,530

 

 

$

619,559

 

 

$

6,146,422

 

 

$

15,794,355

 

 

(1)

The below-market ground lease value was recorded as a component of the right of use asset – operating leases on the Condensed Consolidated Balance Sheet.  Refer to Note 12 for additional details on the Company’s leases.

(2)

Refer to Note 6 for additional details on the Company’s mortgage notes.

 

The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, and below-market lease intangibles of the properties acquired during the year ended December 31, 2019 were 3, 6, and 6 years, respectively.

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2018 ($ in thousands):

 

 

 

Canyon Industrial Portfolio

 

EdR Student Housing Portfolio

 

Meridian Industrial Portfolio

 

JW Marriott San Antonio Hill Country Resort

 

Wave Multifamily Portfolio

 

All

Other

 

Total

 

Building and building improvements

 

$

1,362,916

 

$

1,034,732

 

$

736,302

 

$

474,529

 

$

323,954

 

$

1,563,496

 

$

5,495,929

 

Land and land improvements

 

 

376,762

 

 

138,249

 

 

165,881

 

 

84,218

 

 

82,686

 

 

535,141

 

 

1,382,937

 

Furniture, fixtures and equipment

 

 

—

 

 

11,072

 

 

—

 

 

39,979

 

 

5,252

 

 

42,667

 

 

98,970

 

In-place lease intangibles

 

 

109,031

 

 

51,583

 

 

64,623

 

 

597

 

 

11,243

 

 

103,387

 

 

340,464

 

Above-market lease intangibles

 

 

8,459

 

 

—

 

 

2,862

 

 

—

 

 

—

 

 

3,775

 

 

15,096

 

Below-market ground lease(1)

 

 

—

 

 

—

 

 

793

 

 

—

 

 

—

 

 

—

 

 

793

 

Below-market lease intangibles

 

 

(19,955

)

 

(122

)

 

(13,604

)

 

—

 

 

—

 

 

(13,853

)

 

(47,534

)

Above-market ground lease

 

 

—

 

 

(4,657

)

 

—

 

 

—

 

 

—

 

 

—

 

 

(4,657

)

Other

 

 

—

 

 

—

 

 

6,122

 

 

5,000

 

 

—

 

 

687

 

 

11,809

 

Total purchase price

 

$

1,837,213

 

$

1,230,857

 

$

962,979

 

$

604,323

 

$

423,135

 

$

2,235,300

 

$

7,293,807

 

Assumed mortgage notes(2)

 

 

—

 

 

46,070

 

 

11,190

 

 

—

 

 

—

 

 

151,220

 

 

208,480

 

Non-controlling interest

 

 

—

 

 

12,802

 

 

—

 

 

—

 

 

—

 

 

-

 

 

12,802

 

Net purchase price

 

$

1,837,213

 

$

1,171,985

 

$

951,789

 

$

604,323

 

$

423,135

 

$

2,084,080

 

$

7,072,525

 

 

(1)

Refer to Note 6 for additional details on the Company’s mortgage notes.

 

The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market ground lease intangibles, below-market lease intangibles, and above-market ground lease intangibles of the properties acquired during the year ended December 31, 2018 were 4, 5, 65, 7 and 86 years, respectively.

Dispositions

During the year ended December 31, 2019, the Company sold three properties across three separate transactions which resulted in a net gain of $35.0 million which was recorded within Net Gain on Dispositions of Real Estate on the Company’s Consolidated Statements of Operations.

Properties Held for Sale

 

As of December 31, 2019, six properties were classified as held for sale. Subsequent to December 31, 2019, one property was sold. The sale of the remaining five properties is expected to close in the first or second quarter of 2020.

 

The following table is a summary of the assets and liabilities of the Company’s properties classified as held for sale ($ in thousands):

 

 

 

 

 

Assets:

 

December 31, 2019

 

Investments in real estate, net

 

$

141,344

 

Other assets

 

 

2,035

 

Total assets

 

$

143,379

 

 

 

 

 

 

Liabilities:

 

 

 

 

Mortgage notes, term loans, and secured revolving credit facilities, net

 

$

104,314

 

Other liabilities

 

 

4,097

 

Total liabilities

 

$

108,411