Investments in Real Estate and Real Estate Under Construction

9 Months Ended

Sep. 30, 2011

Investments in Real Estate and Real Estate Under Construction [Abstract]

Investments in Real Estate and Intangibles

Investments in Real Estate and Real Estate Under Construction

The Company, through property owner subsidiaries, acquired the following operating properties in separate transactions during the nine months ended September 30, 2011:

										Lease Intangibles
Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value		Customer Relationships Value
Industrial	Byhalia, MS	May 2011	$	27,492	03/2026	$	1,005	$	21,483	$	4,097	$	907
Office	Rock Hill, SC	May 2011	$	7,395	08/2021	$	551	$	4,313	$	1,853	$	678
Office (1)	Allen, TX	May 2011	$	36,304	03/2018	$	5,591	$	21,607	$	5,127	$	3,979
Industrial (2)	Shelby, NC	June 2011	$	23,470	05/2031	$	1,421	$	18,917	$	2,712	$	420
Office	Columbus, OH	July 2011	$	6,137	07/2027	$	433	$	2,773	$	2,205	$	726
			$	100,798		$	9,001	$	69,093	$	15,994	$	6,710

(1)     The Company acquired the property from Net Lease Strategic Assets Fund L.P. pursuant to a purchase option.

(2)     The Company funded the construction of the property commencing in 2010.

The Company recognized aggregate acquisition expenses of $314 for the nine months ended September 30, 2011, which are included as operating expenses within the Company's unaudited condensed consolidated statements of operations.

During the nine months ended September 30, 2011, the Company, through lender subsidiaries and property owner subsidiaries, entered into three acquisition, development and construction arrangements whereby the lender subsidiaries agreed to lend funds to construct build-to-suit properties and the property owner subsidiaries agree to purchase the properties upon completion of construction and commencement of a tenant lease. When the Company anticipates that it will indirectly participate in residual profits through the loan provisions and other contracts, the Company records the loan as an investment in real estate under construction. In addition, the Company hired developers to construct two office buildings, which will be leased to single-tenants upon completion. As of September 30, 2011, the Company had the following development arrangements outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution		Estimated Purchase Price/Completion Cost		Lease Term (Years)	Estimated Completion Date
Saint Joseph, MO(1)	Office	99,000	$	17,991	$	17,991	15	2Q 12
Huntington, WV(1)	Office	70,000	$	11,826	$	13,000	15	4Q 11
Shreveport, LA(1)	Industrial	257,000	$	2,520	$	13,064	10	2Q 12
Florence, SC	Office	32,000	$	5,128	$	5,128	12	1Q 12
Long Island City, NY(2)	Industrial	143,000	$	46,728	$	55,524	15	1Q 13
Jessup, PA	Office	150,000	$	20,780	$	20,780	15	2Q 12
		751,000	$	104,973	$	125,487

(1) Acquisition, development and construction arrangement.

(2) Joint venture investment. The Company has guaranteed completion to the ground owner. The guarantee obligation was valued at $1,500 and is included in accounts payable and other liabilities in the unaudited condensed consolidated balance sheet. In addition, the Company may loan a maximum of $4,398 to the joint venture under certain circumstances. The difference between the Company's expected contribution and the estimated completion cost represents the joint venture partner's equity.

The Company has variable interests in certain developer entities constructing the facilities but is not the primary beneficiary of the entities as the Company does not have a controlling financial interest. As of September 30, 2011, the Company's aggregate investment in development arrangements is $22,403, which includes $221 of interest capitalized during the nine months ended September 30, 2011, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

In February 2010, the Company, through a property owner subsidiary, purchased an adjacent land parcel and parking lot in a sale/leaseback transaction with an existing tenant, Nevada Power Company, for $3,275. The Company's property owner subsidiary financed the purchase of the parking lot with a $2,450 non-recourse mortgage note that matures in September 2014 and bears interest at 7.5%. In connection with the transaction, the Nevada Power Company's lease on the existing property was extended from January 2014 to January 2029.