Real Estate Investments

12 Months Ended

Dec. 31, 2021

As of December 31, 2021, the Company owned or had investments in 328 properties, including nine properties under development. The gross real estate investment portfolio, including properties under development, totaled approximately $1.05 billion and consisted of the gross acquisition cost of land, buildings, improvements, and lease intangible assets and liabilities. The investment portfolio is geographically dispersed throughout 41 states with gross real estate investments in Illinois and Texas representing 11.3% and 11.2%, respectively, of the total gross real estate investment of the Company’s entire portfolio.

Acquisitions

During the year ended December 31, 2021, the Company acquired 124 properties, for a total purchase price of $441.3 million, including $4.2 million of capitalized acquisition costs.

During the year ended December 31, 2020, the Company acquired 124 properties, for a total purchase price of $408.6 million, including $4.7 million of capitalized acquisition costs.

The acquisitions were all accounted for as asset acquisitions. An allocation of the purchase price and acquisition costs paid for the completed acquisitions is as follows (in thousands):


	Successor
	Year Ended December 31,
	2021		2020
Land	$	116,056	$	124,998
Buildings	241,930		205,157
Site improvements	29,137		27,571
Tenant improvements	5,965		7,066
In-place lease intangible assets	48,484		53,743
Above-market lease intangible assets	7,904		5,673
Assumed receivables	44
Construction-in-progress assets	52		270
Fuel equipment	—		156
	449,572		424,634
Liabilities assumed
Below-market lease intangible liabilities	(8,244)		(14,157)
Accounts payable, accrued expense and other liabilities	—		(1,893)
Purchase price (including acquisition costs)	$	441,328	$	408,584

On December 23, 2019, the Company contributed the proceeds of the Private Offering to the Operating Partnership, and the Operating Partnership acquired the Predecessor for a combination of OP Units and $256.3 million in cash. The Operating Partnership issued 8,860,760 Class A OP Units to the Company for its contribution and 4,449,019 OP Units (3,652,149 Class A OP Units and 796,870 Class B OP Units) to the Predecessor's owners for the acquisition. The acquisition was accounted for as an asset acquisition and included $0.5 million of acquisition fees incurred in connection with the acquisition. An allocation of the purchase price and acquisition costs paid for the completed acquisition is as follows (in thousands):


	December 23, 2019
Land	$	83,744
Buildings	125,140
Site improvements	8,152
Tenant improvements	5,969
In-place lease intangible assets	20,665
Above-market lease intangible assets	7,286
Properties held for sale	8,343
Other assets	3,486
	262,785
Liabilities assumed
Below-market lease intangible liabilities	(4,649)
Other liabilities	(1,851)
Purchase price (including acquisition costs)	$	256,285

Development

During the year ended December 31, 2021, the Company invested a total of $20.8 million, including total purchase price of $12.0 million, in ten properties, including one that contains a non-binding purchase option to acquire the property upon completion. Upon acquisition or investment in these properties, the Company commenced or assumed development of build-to-suit projects. As of December 31, 2021, the Company completed development on one of the projects and reclassified approximately $2.9 million from property under development to land, building, and improvements in the accompanying consolidated balance sheets. The remaining developments are expected to be substantially completed with rent commencing at various points throughout 2022. The purchase price, including acquisitions costs, and subsequent development are included in property under development in the accompanying consolidated balance sheets as of December 31, 2021.

During the year ended December 31, 2020, the Company invested a total of $5.4 million, including the purchase price of $3.5 million, in two properties. Upon acquisition in these properties, the Company commenced development of build-to-suit projects which were completed in July and December 2020, respectively. Rent commenced in July 2020 and January 2021, respectively. These amounts were included in buildings and improvements in the accompanying consolidated balance sheets as of December 31, 2020.

Dispositions

During the year ended December 31, 2021, the Company sold nine properties for a total sales price, net of disposal costs of $31.1 million, recognizing a net gain of $3.0 million on the sales.

During the year ended December 31, 2020, the Company sold 15 properties for a total sales price, net of disposal costs of $48.1 million, recognizing a net gain of $6.2 million on the sales.

For the period from December 23, 2019 to December 31, 2019, the Company had no dispositions.

For the period from January 1, 2019 to December 22, 2019, the Company sold 30 properties for a total sales price, net of disposal costs of $77.6 million, recognizing a net gain of $5.6 million on the sales.

Loss on Damages and Other Items

The Company incurred significant damages to a property in Houma, Louisiana as a result of Hurricane Ida making landfall in August 2021. As of December 31, 2021, the Company recorded a loss based on estimated damages of $0.5 million in the accompanying consolidated statements of operations and comprehensive income (loss), which has been fully offset by insurance proceeds specific to capitalized building and improvement costs of $0.9 million. Total repair and replacement costs are expected to be approximately $1.1 million which is covered by insurance, less the Company’s $0.1 million deductible. The Company expects construction to be completed in the first quarter of 2022. During the construction period, customer rental payments will continue to be abated, with the lost rent covered by the Company’s insurance policy.

During 2019, the Company entered into an agreement to sell one property to a third-party and received a nonrefundable $0.3 million earnest money deposit which, upon the third-party’s failure to perform under the purchase and sale agreement in the first quarter of 2020, was recognized as a gain.