ACQUISITIONS

6 Months Ended

Jun. 30, 2014

ACQUISITIONS

ACQUISITIONS

4. ACQUISITIONS

        The fair value of real estate acquired is recorded to (1) the acquired tangible assets, consisting of land; land improvements; building and improvements; furniture, fixtures, and equipment; tenant improvements; and (2) identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and tenant relationships, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate. Above-market ground leases are recorded based on the respective fair value of the ground leases.

        During the six months ended June 30, 2014, we acquired a 100% fee-simple interest in an office building located in Los Angeles from an unrelated third party. Built in 1984, the building has approximately 143,000 square feet of rentable space and is located in the Mid-Wilshire submarket of Los Angeles. The acquisition was funded with proceeds from a drawdown on one of CIM Urban's unsecured credit facilities.

Property	Asset Type	Date of Acquisition		Number of Buildings		Rentable Square Feet		Purchase Price
								(in thousands)
4750 Wilshire Blvd., Los Angeles, CA	Office		April 18, 2014		1		143,000	$	44,936

        The results of the operations of the property acquired have been included in the consolidated statements of operations from the date of acquisition. The fair value of the assets acquired and liabilities assumed for the above-noted acquisition during the six months ended June 30, 2014 are as follows:

	2014 Acquisition
	(in thousands)
Land	$	16,633
Land improvements		348
Building and improvements		27,947
Tenant improvements		691
Acquired in-place leases(1)		1,087
Acquired below-market leases(2)		(1,770	)
Net assets acquired	$	44,936

(1)

In-place leases have a weighted average amortization period of 5.0 years.

(2)

Below-market leases have a weighted average amortization period of 5.0 years.

        Acquisition related expenses of $32,000 associated with the acquisition of real estate in 2014 were expensed as incurred during the six months ended June 30, 2014, respectively. No acquisitions of real estate were made during the six months ended June 30, 2013.