Investments in Real Estate and Real Estate Under Construction (Notes)

3 Months Ended

Mar. 31, 2014

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 three months ended March 31, 2014:

Property Type	Location	Acquisition/Completion Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Industrial	Rantoul, IL	January 2014	$	41,277	10/2033	$	1,304	$	32,562	$	7,411
Office	Parachute, CO	January 2014	$	13,928	10/2032	$	1,400	$	10,751	$	1,777
Office	Rock Hill, SC	March 2014	$	24,350	03/2034	$	1,601	$	18,989	$	3,760
			$	79,555		$	4,305	$	62,302	$	12,948

The Company recognized aggregate acquisition expenses of $308 and $193 for the three months ended March 31, 2014 and 2013, 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) lend funds to construct build-to-suit projects subject to a single-tenant lease and agree to purchase the properties upon completion of construction and commencement of a single-tenant lease, (2) 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 single-tenant lease agreements or (4) enter into purchase and sale agreements with developers to acquire single-tenant build-to-suit properties upon completion.

As of March 31, 2014, the Company had the following development arrangements outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution ($ millions)		Lease Term (Years)	Estimated Completion Date
Bingen, WA	Industrial	124,000	$	18.9	12	2Q 14
Las Vegas, NV	Industrial	180,000	$	29.6	20	3Q 14
Richmond, VA	Office	279,000	$	98.6	15	3Q 15
Lake Jackson, TX	Office/R&D	664,000	$	166.2	20	4Q 16
		1,247,000	$	313.3

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 March 31, 2014 and December 31, 2013, the Company's aggregate investment in development arrangements was $79,940 and $74,350, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets. The Company capitalized interest of $530 and $833 during the three months ended March 31, 2014 and 2013, respectively, relating to build-to-suit activities.

In addition, the Company has commitments to acquire the following properties:

Location	Property Type	Estimated Acquisition Cost ($000)		Estimated Acquisition Date	Lease Term (Years)
Lewisburg, TN	Industrial	$	13,320	2Q 14	12
Auburn Hills, MI	Office	40,025		1Q 15	14
		$	53,345

The Company can give no assurances that any of these acquisitions under contract or build-to-suit transactions will be consummated.