Investments in Real Estate and Real Estate Under Construction

3 Months Ended

Mar. 31, 2016

Real Estate [Abstract]

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Company completed the following acquisition during the three months ended March 31, 2016:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555

The Company recognized aggregate transaction costs of $146 and $468 for the three months ended March 31, 2016 and 2015, 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 with an agreement 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, 2016, the Company had the following development arrangements outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment/Contribution		Lease Term (Years)	Estimated Completion/Acquisition Date
Anderson, SC	Industrial	1,325,000	$	70,012	20	2Q 16
Lake Jackson, TX(1)	Office	664,000	166,164		20	4Q 16
Charlotte, NC	Office	201,000	62,445		15	1Q 17
		2,190,000	$	298,621

(1)Joint venture arrangement with developer. The Company currently has a 100% interest in the joint venture.

As of March 31, 2016 and December 31, 2015, the Company's aggregate investment in development arrangements was $115,297 and $95,402, respectively, which included $3,734 and $2,726 of capitalized interest, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

The Company can give no assurances that any of these development arrangements will be consummated or, if consummated, will perform to the Company's expectations.