Investments in Real Estate and Real Estate Under Construction

9 Months Ended

Sep. 30, 2015

Investments in Real Estate and Real Estate Under Construction

The Company, through property owner subsidiaries, completed the following acquisitions, each of which is subject to a lease having a term in excess of ten years (an “LTL”), during the nine months ended September 30, 2015:



Property Type	Location	Acquisition/Completion Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
LTL - Land/Infrastructure	Venice, FL	January 2015	$	16,850	01/2055	$	4,696	$	11,753	$	401
LTL - Office	Auburn Hills, MI	March 2015	$	40,025	03/2029	$	4,416	$	30,012	$	5,597
LTL - Industrial	Houston, TX	March 2015	$	28,650	03/2035	$	4,674	$	19,540	$	4,436
LTL - Industrial	Brookshire, TX	March 2015	$	22,450	03/2035	$	2,388	$	16,614	$	3,448
LTL - Industrial	Canton, MS	March 2015	$	89,300	02/2027	$	5,077	$	71,289	$	12,934
LTL - Industrial	Thomson, GA	May 2015	$	10,144	05/2030	$	909	$	7,746	$	1,489
LTL - Industrial	Oak Creek, WI	July 2015	$	22,139	06/2035	$	3,015	$	15,300	$	3,824
			$	229,558		$	25,175	$	172,254	$	32,129

The Company recognized aggregate transaction costs of $1,119 and $1,509 for the nine months ended September 30, 2015 and 2014, respectively, which are included as property 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, 2015, the Company had the following development arrangements outstanding:



Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution		Lease Term (Years)	Estimated Completion/Acquisition Date
Richmond, VA	LTL - Office	330,000	$	110,137	15	4Q 15
Anderson, SC	LTL - Industrial	1,325,000	$	70,012	20	2Q 16
Lake Jackson, TX	LTL - Office	664,000	$	166,164	20	4Q 16
		2,319,000	$	346,313

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 in such entities. As of September 30, 2015 and December 31, 2014, the Company's aggregate investment in development arrangements was $155,546 and $106,238, respectively, which includes $6,359 and $2,828 of capitalized interest, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

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



Location	Property Type	Estimated Acquisition Cost		Estimated Acquisition Date	Lease Term (Years)
Richland, WA	LTL - Industrial	$	152,000	4Q 15	20
Detroit, MI	LTL - Industrial	$	29,680	1Q 16	20
		$	181,680

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