Investments in Real Estate and Real Estate Under Construction

9 Months Ended

Sep. 30, 2016

Real Estate [Line Items]

Investments in Real Estate and Real Estate Under Construction

Investments in Real Estate and Real Estate Under Construction

The Company completed the following consolidated acquisition and build-to-suit arrangements during the nine months ended September 30, 2016:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible		Below Market Lease Intangible
Industrial	Detroit, MI	January 2016	$	29,697	10/2035	$	1,133	$	25,009	$	3,555	$	—
Industrial	Anderson, SC	June 2016	61,347		06/2036	4,663		45,011		11,673		—
Industrial	Wilsonville, OR	September 2016	43,100		10/2032	6,815		32,380		5,920		(2,015		)
			$	134,144		$	12,611	$	102,400	$	21,148	$	(2,015	)

The Company recognized aggregate transaction costs of $329 and $1,119 for the nine months ended September 30, 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 a build-to-suit project subject to a single-tenant lease with an agreement to purchase the property upon completion of construction and commencement of the single-tenant lease, (2) hire a developer to construct a built-to-suit project on owned property leased to a single tenant, (3) fund the construction of a build-to-suit project on owned property pursuant to the terms of a single-tenant lease or (4) enter into a purchase and sale agreement with a developer to acquire a single-tenant build-to-suit property upon completion of construction and commencement of a single-tenant lease.

As of September 30, 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	GAAP Investment Balance as of 9/30/2016
Lake Jackson, TX(1)	Office	664,000	$	166,164	20	4Q 16/1Q 17	$	101,203
Charlotte, NC	Office	201,000	62,445		15	1Q 17	32,613
Opelika, AL	Industrial	165,000	37,000		25	2Q 17	3,760
		1,030,000	$	265,609			$	137,576

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

As of September 30, 2016 and December 31, 2015, the Company's aggregate investment in development arrangements was $137,576 and $95,402, respectively, which included $5,180 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.

LCIF [Member]

Real Estate [Line Items]

Investments in Real Estate and Real Estate Under Construction

Real Estate and Real Estate Under Construction

As of September 30, 2016, the Partnership had the following development arrangement outstanding:

Location	Property Type	Square Feet	Expected Maximum Commitment		Lease Term (Years)	Estimated Completion Date	GAAP Investment Balance as of 9/30/16(1)
Charlotte, NC	Office	201,000	$	62,445	15	1Q 17	$	32,613

(1)    Includes $654 of capitalized interest.

The Partnership can give no assurances that this development arrangement will be consummated or, if consummated, will perform to the Partnership's expectations.

During the nine months ended September 30, 2016, the Partnership sold its interest in certain properties, including land investments for an aggregate gross sale price of $445,565. During the nine months ended September 30, 2016, the Partnership recognized aggregate gains on sales of properties of $16,029, aggregate impairment charges of $67,935 and aggregate debt satisfaction charges of $7,388 relating to sold properties. The aggregate impairment charges recorded during the nine months ended September 30, 2016, related primarily to the sale of the three land investments in New York, New York. The land investments were subject to 99-year leases with annual escalations and the deferred rent receivable balance at the date of sale of $91,213 was written off. As of September 30, 2016, the Partnership had one property classified as held for sale. As of September 30, 2016, the held for sale property consisted of real estate and intangible assets, net, of $9,714, rent receivable - deferred of $1,304, deferred expenses, net, of $610, other assets of $9 and other liabilities of $2,206.

The Partnership assesses on a regular basis whether there are any indicators that the carrying value of its real estate assets may be impaired. Potential indicators may include an increase in vacancy at a property, tenant financial instability and the potential sale or transfer of the property in the near future. An asset is determined to be impaired if the asset's carrying value is in excess of its estimated fair value.