Investments in Real Estate and Real Estate Under Construction

6 Months Ended

Jun. 30, 2017

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 acquisition and build-to-suit transactions during the six months ended June 30, 2017:

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
Office	Lake Jackson, TX(1)	January 2017	$	70,401	10/2036	$	3,078	$	67,323	$	—	$	—
Industrial	New Century, KS	February 2017	12,056		01/2027	—		13,198		1,648		(2,790		)
Industrial	Lebanon, IN	February 2017	36,194		01/2024	2,100		29,443		4,651		—
Office	Charlotte, NC	April 2017	61,339		04/2032	3,771		47,064		10,504		—
Industrial	Cleveland, TN	May 2017	34,400		03/2024	1,871		29,743		2,786		—
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166		—
Industrial	San Antonio, TX	June 2017	45,507		04/2027	1,311		36,644		7,552		—
			$	284,214		$	15,297	$	241,400	$	30,307	$	(2,790	)

(1) Completed the construction of the final building of a four-building project. Initial basis excludes estimated developer partner payout of approximately $8,000.

The Company recognized aggregate transaction costs of $488 and $214 for the six months ended June 30, 2017 and 2016, 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 June 30, 2017, the Company had the following development arrangement outstanding:

Location	Property Type	Square Feet (000's)	Maximum Commitment/Estimated Completion Cost		Lease Term (Years)	Estimated Completion/Acquisition Date	GAAP Investment Balance as of 6/30/2017
Opelika, AL	Industrial	165	$	37,370	25	3Q 17	$	29,442

As of June 30, 2017 and December 31, 2016, the Company's aggregate investment in development arrangements was $29,442 and $106,652, respectively, which included $458 and $3,442 of capitalized interest, respectively, and is presented as investments in real estate under construction in the accompanying unaudited condensed consolidated balance sheets.

In addition, as of June 30, 2017, the Company had the following forward purchase commitments:

Location	Square Feet (000's)	Property Type	Maximum Acquisition Cost		Estimated Acquisition Date	Approximate Lease Term (Yrs)
Warren, MI(1)	260	Industrial	$	47,000	3Q 17	15
Romulus, MI	500	Industrial	39,330		3Q 17	15
	760		$	86,330

(1) A $4,600 letter of credit secures the Company's obligation to purchase the property.

The Company can give no assurances that any of these development arrangements or forward purchase commitments 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

Investment in Real Estate and Real Estate Under Construction

The Partnership completed the following acquisitions and build-to-suit arrangements during the six months ended June 30, 2017:

Property Type	Location	Acquisition Date	Initial Cost Basis		Lease Expiration	Land and Land Estate		Building and Improvements		Lease in-place Value Intangible
Office	Charlotte, NC	April 2017	$	61,339	04/2032	$	3,771	$	47,064	$	10,504
Industrial	Grand Prairie, TX	June 2017	24,317		03/2037	3,166		17,985		3,166
			$	85,656		$	6,937	$	65,049	$	13,670

During the six months ended June 30, 2017, the Partnership sold its interest in two vacant office properties for an aggregate gross sale price of $7,591 and recognized aggregate impairment charges of $5,259. During the six months ended June 30, 2016, the Partnership sold its interest in certain properties, including land investments, for an aggregate gross sale price of $103,265. The Partnership recognized aggregate gains on sales of properties of $16,029 and aggregate debt satisfaction charges of $1,615 relating to sold properties during the six months ended June 30, 2016.

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. During the six months ended June 30, 2016, the Partnership recognized impairment charges of $2,426. The Partnership determined that the expected undiscounted cash flows based upon the revised estimated holding period of a held for sale asset were below its carrying value.