Investments in Real Estate and Real Estate Under Construction

6 Months Ended

Jun. 30, 2012

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

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Company, through property owner subsidiaries, completed the following acquisition and build-to-suit transactions during the six months ended June 30, 2012:

										Lease Intangibles
Property Type	Location	Acquisition/Completion Date	Initial Cost Basis		Lease Expiration	Land		Building and Improvements		Lease in-place Value		Tenant Relationships Value
Office	Huntington, WV	January 2012	$	12,558	11/2026	$	1,368	$	9,527	$	1,405	$	258
Office	Florence, SC	February 2012	$	5,094	02/2024	$	774	$	3,629	$	505	$	186
Industrial	Missouri City, TX	April 2012	$	23,000	04/2032	$	14,555	$	5,895	$	2,135	$	415
Industrial	Shreveport, LA	June 2012	$	12,941	03/2022	$	1,078	$	10,134	$	1,590	$	139
			$	53,593		$	17,775	$	29,185	$	5,635	$	998

The Company recognized aggregate acquisition expenses of $380 and $124 for the six months ended June 30, 2012 and 2011, respectively, which are included as operating expenses within the Company's unaudited condensed consolidated statements of operations.

The Company is engaged in various forms of build-to-suit development activities. The Company, through lender subsidiaries and property owner subsidiaries, may enter into the following acquisition, development and construction arrangements: (1) the lender subsidiaries agree to lend funds to construct build-to-suit projects subject to a lease and the property owner subsidiaries agree to purchase the properties upon completion of construction and commencement of a single-tenant lease, (2) the property owner subsidiaries hire developers to construct built-to-suit projects on owned properties leased to single-tenants, (3) fund the construction of build-to-suit projects on owned properties pursuant to the terms in the lease agreements or (4) the property owner subsidiaries enter into a purchase and sale agreements with developers to acquire single-tenant build-to-suit properties upon their completion. As of June 30, 2012, the Company had the following development arrangements outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution (million)		Estimated Purchase Price/Completion Cost (million)		Lease Term (Years)	Estimated Completion Date
Saint Joseph, MO(1)	Office	99,000	$	18.0	$	18.0	15	3Q 12
Long Island City, NY(2)	Industrial	143,000	$	46.7	$	55.5	15	1Q 13
Jessup, PA	Office	150,000	$	20.8	$	20.8	15	3Q 12
Eugene, OR	Office	80,000	$	17.6	$	17.6	15	1Q 13
Valdosta, GA	Retail	52,000	$	8.8	$	8.8	15	4Q 12
Denver, CO	Office	163,000	$	37.6	$	37.6	15	2Q 13
		687,000	$	149.5	$	158.3

(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 condensed consolidated balance sheets as of June 30, 2012 and December 31, 2011. 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 June 30, 2012, the Company's aggregate investment in development arrangements was $57,250, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheet. The Company capitalized interest of $1,046 and $717 during the six months ended June 30, 2012 and 2011, respectively, relating to build-to-suit activities.