Investments in Real Estate

9 Months Ended

Sep. 30, 2018

The Company completed the following acquisition transactions during the nine months ended September 30, 2018:



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	Olive Branch, MS	April 2018	$	44,090	07/2029	$	1,958	$	38,687	$	3,445	$	—
Industrial	Olive Branch, MS	April 2018	48,575		06/2021	2,500		42,538		5,151		(1,614		)
Industrial	Edwardsville, IL	June 2018	44,178		05/2030	3,649		41,292		3,467		(4,230		)
Industrial	Spartanburg, SC	August 2018	27,632		07/2024	1,447		23,744		2,441		—
Industrial	Pasadena, TX	August 2018	23,868		08/2023	4,057		17,810		2,001		—
Industrial	Carrollton, TX	September 2018	19,564		03/2025	3,228		15,766		1,247		(677		)
			$	207,907		$	16,839	$	179,837	$	17,752	$	(6,521	)

LCIF [Member]

Real Estate [Line Items]

Investments in Real Estate

Investment in Real Estate

The Partnership completed the following acquisitions during the nine months ended September 30, 2018:



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	Edwardsville, IL	June 2018	$	44,178	05/2030	$	3,649	$	41,292	$	3,467	$	(4,230	)
Industrial	Pasadena, TX	August 2018	23,868		08/2023	4,057		17,810		2,001		—
			$	68,046		$	7,706	$	59,102	$	5,468	$	(4,230	)

During the nine months ended September 30, 2018, the Partnership disposed of its interest in eight properties for a gross disposition price of $283,228, including the disposition of five properties to a newly-formed joint venture with an unaffiliated third-party, NNN Office JV L.P (“NNN JV”). See note 3. The Partnership recognized aggregate gains on sales of properties of $78,459 and $832 of debt satisfaction charges in connection with the dispositions. As of September 30, 2018, $80,137 of the 2018 sale proceeds, including interest thereon, were held in an EAT and are included in restricted cash on the Partnership's consolidated balance sheet. During the nine months ended September 30, 2017, the Partnership sold its interest in two vacant office properties for an aggregate gross sale price of $7,591. The Partnership had no properties classified as held for sale at September 30, 2018 and December 31, 2017.

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, change in the estimated holding period of the asset 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 and the Partnership estimates that its cost will not be recovered. During the nine months ended September 30, 2018 and 2017, the Partnership recognized aggregate impairment charges on real estate properties of $23,938 and $12,061, respectively. Included in the impairment charges recognized during the nine months ended September 30, 2018, is an impairment charge of $17,906 recognized on an office property in Overland Park, Kansas. The office property was encumbered at September 30, 2018 by a $32,297 non-recourse mortgage loan, which is $19,072 in excess of the property's estimated impairment date fair value.