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

9 Months Ended

Sep. 30, 2014

Real Estate [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 nine months ended September 30, 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	$	24,715	03/2034	$	1,601	$	18,989	$	4,125
Industrial	Lewisburg, TN	May 2014	$	13,320	03/2026	$	173	$	10,865	$	2,282
Industrial	North Las Vegas, NV	May 2014	$	28,249	09/2034	$	3,244	$	21,444	$	3,561
Industrial	Bingen, WA	May 2014	$	20,391	05/2024	$	—	$	18,075	$	2,316
			$	141,880		$	7,722	$	112,686	$	21,472

The Company recognized aggregate acquisition and pursuit expenses of $1,509 and $657 for the nine months ended September 30, 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 September 30, 2014, the Company had the following development arrangements outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution		Lease Term (Years)	Estimated Completion Date
Oak Creek, WI	Industrial	164,000	$	22,609	20	2Q 15
Richmond, VA	Office	330,000	$	110,137	15	3Q 15
Lake Jackson, TX	Office/R&D	664,000	$	166,164	20	4Q 16
Thomson, GA	Industrial	208,000	$	10,245	15	2Q 15
		1,366,000	$	309,155

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, 2014 and December 31, 2013, the Company's aggregate investment in development arrangements was $86,883 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 $2,236 and $1,597 during the nine months ended September 30, 2014 and 2013, respectively, relating to build-to-suit activities.

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

Location	Property Type	Estimated Acquisition Cost ($000)		Estimated Acquisition Date	Lease Term (Years)
Auburn Hills, MI	Office	$	40,025	1Q 15	14
Richland, WA	Industrial	$	155,000	4Q 15	20
		$	195,025

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