ACQUISITIONS

9 Months Ended

Sep. 30, 2015

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; and 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 nine months ended September 30, 2015, we acquired a 100% interest in a surface parking lot known as Two Kaiser Plaza from an unrelated third party. The parking lot has approximately 44,642 land square feet and is located in Oakland, California. The acquisition was funded with proceeds from a drawdown on our unsecured credit facility, and the acquired property is reported as part of the office segment (see Note 18).

Property	Asset Type	Date of Acquisition		Square Feet		Purchase Price
						(in thousands)
Two Kaiser Plaza, Oakland, CA	Surface parking lot		August 26, 2015		44,642	$	11,143

        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 values of the assets acquired and liabilities assumed for the above-noted acquisition during the nine months ended September 30, 2015 are as follows:

	2015 Acquisition
	(in thousands)
Land	$	10,931
Land improvements		110
Acquired in-place lease(1)		102
Net assets acquired	$	11,143

(1)           In-place lease has an amortization period of 3.0 years.

        Acquisition related expenses of $102,000 and $32,000 associated with the acquisition of real estate were expensed as incurred during the nine months ended September 30, 2015 and 2014, respectively.