Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'REXR | ' |
Entity Registrant Name | 'Rexford Industrial Realty, Inc. | ' |
Entity Central Index Key | '0001571283 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 43,478,233 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Land | $325,284 | $216,078 | ||
Buildings and improvements | 449,566 | 311,118 | ||
Tenant improvements | 19,186 | 13,239 | ||
Furniture, fixtures, and equipment | 188 | 188 | ||
Total real estate held for investment | 794,224 | 540,623 | ||
Accumulated depreciation | -71,535 | -58,950 | ||
Investments in real estate, net | 722,689 | 481,673 | ||
Cash and cash equivalents | 60,541 | 8,997 | ||
Restricted cash | 307 | 325 | ||
Notes receivable | 13,138 | [1] | 13,139 | [1] |
Rents and other receivables, net | 1,738 | 917 | ||
Deferred rent receivable, net | 4,420 | 3,637 | ||
Deferred leasing costs, net | 3,275 | 2,153 | ||
Deferred loan costs, net | 2,995 | 1,597 | ||
Acquired lease intangible assets, net | 23,558 | 13,508 | ||
Acquired indefinite-lived intangible | 5,271 | 5,271 | ||
Other assets | 4,552 | 2,309 | ||
Acquisition related deposits | ' | 1,510 | ||
Investment in unconsolidated real estate entities | 5,744 | 5,687 | ||
Assets associated with real estate held for sale | ' | 13,952 | ||
Total Assets | 848,228 | 554,675 | ||
Liabilities | ' | ' | ||
Notes payable | 269,811 | 192,491 | ||
Accounts payable, accrued expenses and other liabilities | 9,620 | 5,783 | ||
Dividends payable | 5,191 | 5,368 | ||
Acquired lease intangible liabilities, net | 1,921 | 1,143 | ||
Tenant security deposits | 7,927 | 6,099 | ||
Prepaid rents | 1,329 | 1,426 | ||
Liabilities associated with real estate held for sale | ' | 596 | ||
Total Liabilities | 295,799 | 212,906 | ||
Rexford Industrial Realty, Inc. stockholders' equity | ' | ' | ||
Common Stock, $0.01 par value 490,000,000 authorized and 43,257,883 and 25,559,886 outstanding at September 30, 2014 and December 31, 2013, respectively | 431 | 255 | ||
Additional paid in capital | 538,248 | 311,936 | ||
Cumulative distributions in excess of earnings | -16,574 | -5,993 | ||
Accumulated other comprehensive income | 158 | ' | ||
Total stockholders' equity | 522,263 | 306,198 | ||
Noncontrolling interests | 30,166 | 35,571 | ||
Total Equity | 552,429 | 341,769 | ||
Total Liabilities and Equity | $848,228 | $554,675 | ||
[1] | This is a mortgage loan secured by 32401-32803 Calle Perfecto. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Common stock, shares outstanding | 43,257,883 | 25,559,886 |
CONSOLIDATED_AND_COMBINED_STAT
CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | |
Predecessor | Predecessor | ||||
RENTAL REVENUES | ' | ' | ' | ' | ' |
Rental revenues | $7,640,000 | $15,516,000 | $39,917,000 | $2,384,000 | $19,206,000 |
Tenant reimbursements | 828,000 | 2,052,000 | 5,244,000 | 254,000 | 2,212,000 |
Management, leasing and development services | 281,000 | 171,000 | 654,000 | 13,000 | 444,000 |
Other income | 40,000 | 16,000 | 73,000 | 20,000 | 187,000 |
TOTAL RENTAL REVENUES | 8,789,000 | 17,755,000 | 45,888,000 | 2,671,000 | 22,049,000 |
Interest income | 191,000 | 281,000 | 835,000 | 63,000 | 698,000 |
TOTAL REVENUES | 8,980,000 | 18,036,000 | 46,723,000 | 2,734,000 | 22,747,000 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Property expenses | 2,527,000 | 4,879,000 | 12,905,000 | 690,000 | 5,924,000 |
General and administrative | 2,500,000 | 3,273,000 | 8,658,000 | 1,885,000 | 4,420,000 |
Depreciation and amortization | 3,025,000 | 8,032,000 | 20,165,000 | 887,000 | 7,022,000 |
TOTAL OPERATING EXPENSES | 8,052,000 | 16,184,000 | 41,728,000 | 3,462,000 | 17,366,000 |
OTHER (INCOME) EXPENSE | ' | ' | ' | ' | ' |
Acquisition expenses | 119,000 | 426,000 | 1,411,000 | 7,000 | 724,000 |
Interest expense | 717,000 | 1,957,000 | 4,745,000 | 1,233,000 | 9,395,000 |
Gain on mark-to-market of interest rate swaps | ' | ' | ' | ' | -49,000 |
TOTAL OTHER EXPENSE | 836,000 | 2,383,000 | 6,156,000 | 1,240,000 | 10,070,000 |
TOTAL EXPENSES | 8,888,000 | 18,567,000 | 47,884,000 | 4,702,000 | 27,436,000 |
Equity in income (loss) from unconsolidated real estate entities | 83,000 | 2,000 | -4,000 | 9,000 | -915,000 |
Gain from early repayment of note receivable | ' | ' | ' | ' | 1,365,000 |
Loss on extinguishment of debt | ' | ' | ' | -3,918,000 | -3,955,000 |
Loss on sale of real estate | ' | -150,000 | -150,000 | ' | ' |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 175,000 | -679,000 | -1,315,000 | -5,877,000 | -8,194,000 |
DISCONTINUED OPERATIONS | ' | ' | ' | ' | ' |
Income (loss) from discontinued operations before gain on sale of real estate and loss on extinguishment of debt | 120,000 | ' | 21,000 | 26,000 | -809,000 |
Loss on extinguishment of debt | ' | 0 | ' | -17,000 | -267,000 |
Gain on sale of real estate | ' | 0 | 2,125,000 | ' | 4,989,000 |
INCOME FROM DISCONTINUED OPERATIONS | 120,000 | 0 | 2,146,000 | 9,000 | 3,913,000 |
NET INCOME (LOSS) | 295,000 | -679,000 | 831,000 | -5,868,000 | -4,281,000 |
Net (income) loss attributable to noncontrolling interests | -39,000 | 80,000 | -80,000 | 3,559,000 | 15,000 |
NET INCOME (LOSS) ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC. STOCKHOLDERS AND PARTICIPATING SECURITIES | $256,000 | ($599,000) | $751,000 | ($2,309,000) | ($4,266,000) |
Income (loss) from continuing operations available to common stockholders per share - basic and diluted | $0.01 | ($0.02) | ($0.04) | ' | ' |
Net income (loss) available to common stockholders per share - basic and diluted | $0.01 | ($0.02) | $0.02 | ' | ' |
Weighted average shares of common stock outstanding - basic and diluted | 24,574,432 | 33,527,183 | 28,151,818 | ' | ' |
Dividends declared per common share | ' | $0.12 | $0.36 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | |
Predecessor | Predecessor | ||||
Net income (loss) | $295,000 | ($679,000) | $831,000 | ($5,868,000) | ($4,281,000) |
Other comprehensive income: cash flow hedge adjustment | ' | 626,000 | 167,000 | ' | ' |
Comprehensive (loss) income | 295,000 | -53,000 | 998,000 | -5,868,000 | -4,281,000 |
Less: comprehensive loss (income) attributable to noncontrolling interests | -39,000 | 22,000 | -89,000 | 3,559,000 | 15,000 |
Comprehensive (loss) income attributable to common stockholders | $256,000 | ($31,000) | $909,000 | ($2,309,000) | ($4,266,000) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Cumulative Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | Noncontrolling Interest |
In Thousands, except Share data | |||||||
Beginning Balance at Dec. 31, 2013 | $341,769 | $255 | $311,936 | ($5,993) | ' | $306,198 | $35,571 |
Beginning Balance, shares at Dec. 31, 2013 | 25,559,886 | 25,559,886 | ' | ' | ' | ' | ' |
Issuance of common stock | 232,875 | 172 | 232,703 | ' | ' | 232,875 | ' |
Issuance of common stock, shares | ' | 17,250,000 | ' | ' | ' | ' | ' |
Offering costs | -11,326 | ' | -11,326 | ' | ' | -11,326 | ' |
Share-based compensation | 897 | ' | 897 | ' | ' | 897 | ' |
Share-based compensation, shares | ' | 91,693 | ' | ' | ' | ' | ' |
Repurchase of common shares | -98 | ' | -98 | ' | ' | -98 | ' |
Repurchase of common shares, shares | ' | -6,928 | ' | ' | ' | ' | ' |
Conversion of common units to common stock | 4,100 | 4 | 4,136 | ' | ' | 4,140 | -4,140 |
Conversion of common units to common stock, shares | 363,232 | 363,232 | ' | ' | ' | ' | ' |
Dividends | -11,332 | ' | ' | -11,332 | ' | -11,332 | ' |
Distributions | -1,354 | ' | ' | ' | ' | ' | -1,354 |
Net income | 831 | ' | ' | 751 | ' | 751 | 80 |
Other comprehensive income | 167 | ' | ' | ' | 158 | 158 | 9 |
Ending Balance at Sep. 30, 2014 | $552,429 | $431 | $538,248 | ($16,574) | $158 | $522,263 | $30,166 |
Ending Balance, shares at Sep. 30, 2014 | 43,257,883 | 43,257,883 | ' | ' | ' | ' | ' |
CONSOLIDATED_AND_COMBINED_STAT1
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (USD $) | 2 Months Ended | 9 Months Ended | 7 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | |
Predecessor | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income (loss) | $295,000 | $831,000 | ($4,281,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Equity in (income) loss of unconsolidated real estate entities | -83,000 | 4,000 | 915,000 |
Depreciation and amortization | 3,025,000 | 20,165,000 | 7,022,000 |
Depreciation and amortization included in discontinued operations | 37,000 | 7,000 | 776,000 |
Amortization of above (below) market lease intangibles, net | 122,000 | 305,000 | 256,000 |
Accretion of discount on notes receivable | -33,000 | -195,000 | -94,000 |
Loss on extinguishment of debt | ' | ' | 4,222,000 |
Loss on sale of real estate | ' | 150,000 | ' |
Gain on sale of real estate included in discontinued operations | ' | -2,125,000 | -4,989,000 |
Amortization of loan costs | 93,000 | 478,000 | 784,000 |
Gain on mark-to-market of interest rate swaps | ' | ' | -49,000 |
Accretion of premium on notes payable | ' | -127,000 | ' |
Deferred interest expense | ' | ' | 573,000 |
Equity based compensation expense | 382,000 | 791,000 | 985,000 |
Gain from early repayment of notes receivable | ' | ' | -1,365,000 |
Change in working capital components: | ' | ' | ' |
Rents and other receivables | -20,000 | -809,000 | -161,000 |
Deferred rent receivable | -285,000 | -806,000 | -263,000 |
Change in restricted cash | ' | ' | 1,137,000 |
Leasing commissions | -224,000 | -1,873,000 | -980,000 |
Other assets | -752,000 | -675,000 | -1,172,000 |
Accounts payable, accrued expenses and other liabilities | 616,000 | 1,935,000 | 942,000 |
Tenant security deposits | 72,000 | 841,000 | 507,000 |
Prepaid rent | 272,000 | -996,000 | -172,000 |
Net cash provided by operating activities | 3,517,000 | 17,901,000 | 4,593,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Acquisition of investments in real estate | -13,924,000 | -248,472,000 | -73,332,000 |
Capital expenditures | -617,000 | -8,776,000 | -1,439,000 |
Consolidation of La Jolla Sorrento | ' | ' | 373,000 |
Acquisition related deposits | -1,235,000 | 1,510,000 | 50,000 |
Contributions to unconsolidated real estate entities | ' | -105,000 | ' |
Distributions from unconsolidated real estate entities | ' | 44,000 | 271,000 |
Change in restricted cash | -9,000 | 18,000 | 408,000 |
Principal repayments of notes receivable | 39,000 | 196,000 | 5,516,000 |
Disposition of investment in real estate | ' | 15,410,000 | 21,537,000 |
Net cash used in investing activities | -15,746,000 | -240,175,000 | -46,616,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Issuance of common stock, net | 208,280,000 | 221,773,000 | ' |
Proceeds from private placement | 47,016,000 | ' | ' |
Proceeds from notes payable | 80,875,000 | 209,000,000 | 55,590,000 |
Repayment of notes payable | -311,848,000 | -142,118,000 | -21,135,000 |
Deferred loan costs | -1,702,000 | -1,876,000 | -812,000 |
Prepaid offering costs | ' | ' | -1,504,000 |
Capital contributions from Predecessor members | ' | ' | 1,156,000 |
Distributions to Predecessor members | ' | ' | -6,825,000 |
Reimbursements due to Predecessor members | ' | ' | -1,221,000 |
Distributions due to Predecessor members related to formation transactions | -4,953,000 | ' | -26,773,000 |
Repurchase of interests from unaccredited investors | -1,040,000 | ' | ' |
Dividends paid to common stockholders | ' | -11,509,000 | ' |
Distributions paid to common unitholders | ' | -1,354,000 | ' |
Repurchase of common shares | ' | -98,000 | ' |
Change in restricted cash | ' | ' | 48,000 |
Net cash provided by (used in) financing activities | 16,628,000 | 273,818,000 | -1,476,000 |
Increase (Decrease) in Cash and Equivalents | 4,399,000 | 51,544,000 | -43,499,000 |
Cash and cash equivalents, beginning of period | ' | 8,997,000 | 43,499,000 |
Cash and cash equivalents, end of period | 4,399,000 | 60,541,000 | ' |
Contribution of Rexford Sponsor V LLC and Rexford Industrial Fund V REIT, LLC: | ' | ' | ' |
Investments in real estate and acquired intangibles | ' | ' | -35,532,000 |
Investment in unconsolidated real estate entities | ' | ' | -6,131,000 |
Notes receivable | ' | ' | -5,305,000 |
Predecessor equity and noncontrolling interests | ' | ' | 46,968,000 |
Acquisition of tenant-in-common interest in La Jolla Sorrento and consolidation of property previously accounted for under the equity method of accounting: | ' | ' | ' |
Investments in real estate and acquired intangibles | ' | ' | -8,369,000 |
Investment in unconsolidated real estate entities | ' | ' | 8,654,000 |
Rexford Industrial Realty, Inc. Predecessor equity and noncontrolling interests | ' | ' | 48,000 |
Rexford Industrial Realty, Inc. noncontrolling interests | ' | ' | 40,000 |
Assumption of loan in connection with acquisition of real estate | ' | $10,257,000 | ' |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2014 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | |
Organization | ' | |
1 | Organization | |
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (“REIT”) focused on owning and operating industrial properties in Southern California infill markets. We were formed as a Maryland corporation on January 18, 2013 and Rexford Industrial Realty, L.P. (the “Operating Partnership”), of which we are the sole general partner, was formed as a Maryland limited partnership on January 18, 2013. Through our controlling interest in our Operating Partnership and its subsidiaries, we own, manage, lease, acquire and develop industrial real estate primarily located in Southern California infill markets. As of September 30, 2014, our consolidated portfolio consisted of 86 properties with approximately 8.6 million rentable square feet. We also own a 15% interest in a joint venture that owns three properties with approximately 1.2 million square feet, which we also manage. In addition, we currently manage an additional 20 properties with approximately 1.2 million rentable square feet. | ||
We did not have any meaningful operating activity until the consummation of our initial public offering (“IPO”) and the related acquisition of certain assets of our predecessor as part of our formation transactions on July 24, 2013. The historical financial results in these financial statements for periods prior to July 24, 2013 relate to our accounting predecessor. Our Predecessor is comprised of Rexford Industrial, LLC (“RILLC”), Rexford Sponsor V, LLC (“Sponsor”), Rexford Industrial Fund V REIT, LLC (“RIF V REIT”) and their consolidated subsidiaries, which consist of Rexford Industrial Fund I, LLC (“RIF I”), Rexford Industrial Fund II, LLC (“RIF II”), Rexford Industrial Fund III, LLC (“RIF III”), Rexford Industrial Fund IV, LLC (“RIF IV”), Rexford Industrial Fund V, LP (“RIF V”) and their subsidiaries (collectively the “Predecessor Funds”). The entities comprising Rexford Industrial Realty, Inc. Predecessor are combined on the basis of common management and common ownership. | ||
The terms “us,” “we,” “our,” and the “Company” as used in these financial statements refer to Rexford Industrial Realty, Inc. and its subsidiaries (including our Operating Partnership) subsequent to our IPO on July 24, 2013 and our predecessor prior to that date (“Predecessor” or “Rexford Industrial Realty, Inc. Predecessor”). | ||
Basis of Presentation | ||
As of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014, and the period from July 24, 2013 to September 30, 2013, the financial statements presented are the consolidated financial statements of Rexford Industrial Realty, Inc. and its subsidiaries, including our Operating Partnership. The financial statements presented for the periods prior to July 24, 2013 are the combined financial statements of our Predecessor. All of the outside ownership interests in entities that our Predecessor consolidates are included in non-controlling interests. All significant intercompany balances and transactions have been eliminated in the consolidated and combined financial statements. | ||
The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. The interim financial statements should be read in conjunction with the combined and consolidated financial statements in our 2013 Annual Report on Form 10-K and the notes thereto. Any references to the number of properties and square footage are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board. | ||
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated and combined financial statements and accompanying notes. Actual results could differ from those estimates. | ||
We consolidate all entities that are wholly owned and those in which we own less than 100% but control, as well as any variable interest entities in which we are the primary beneficiary. We evaluate our ability to control an entity and whether the entity is a variable interest entity and we are the primary beneficiary through consideration of the substantive terms of the arrangement to identify which enterprise has the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Investments in entities in which we do not control but over which we have the ability to exercise significant influence over operating and financial policies are presented under the equity method. Investments in entities that we do not control and over which we do not exercise significant influence are carried at the lower of cost or fair value, as appropriate. Our ability to correctly assess our influence and/or control over an entity affects the presentation of these investments in our consolidated and combined financial statements. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Cash and Cash Equivalents | ||
Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments. | ||
Discontinued Operations | ||
On April 14, 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 further expands the disclosure requirements for disposals that meet the definition of a discontinued operation, and requires entities to disclose information about disposals of individually significant components. ASU 2014-08 will be applied prospectively and is effective for annual periods and interim periods within those years, beginning after December 15, 2014 with early adoption permitted. We elected to adopt ASU 2014-08 early, beginning in the fiscal quarter ended September 30, 2014. The adoption of ASU 2014-08 will likely result in fewer property sales being classified as discontinued operations. | ||
For assets held for sale or sold prior to the adoption of ASU 2014-08, the revenue, expenses, impairment and/or gain on sale of operating properties that meet the applicable criteria are reported as discontinued operations in the consolidated and combined statements of operations for all periods presented. A gain on sale, if any, is recognized in the period during which the property is disposed. In addition, all amounts for all prior periods presented are reclassified from continuing operations to discontinued operations. | ||
In determining whether to report the results of operations, impairment and/or gain on sale of operating properties as discontinued operations, we evaluate whether we have any significant continuing involvement in the operations, leasing or management of the property after disposition. If we determine that we have significant continuing involvement after disposition, we report the revenue, expenses, impairment and/or gain on sale as part of continuing operations. See Note 13. | ||
Held for Sale Assets | ||
We classify properties as held for sale when certain criteria set forth in the Long-Lived Assets Classified as Held for Sale Subsections of ASC Topic 360: Property, Plant, and Equipment, are met. At that time, the assets and liabilities of the property held for sale are presented separately in the consolidated balance sheets, which includes the reclassification of the assets and liabilities for all comparative periods. In addition, we cease recording depreciation and amortization expense at the time a property is classified as held for sale. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. See Note 13. | ||
Investment in Real Estate | ||
Acquisitions | ||
When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year. | ||
We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use, such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information. | ||
In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property, that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred. | ||
The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. | ||
For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs. | ||
Capitalization of Costs | ||
We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize insurance, real estate taxes and certain general and administrative costs of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets. | ||
Depreciation and Amortization | ||
Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regards to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized. | ||
The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements. | ||
As discussed above, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term. | ||
Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. | ||
Impairment of Long-Lived Assets | ||
In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. | ||
Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. In order to review real estate assets for recoverability, we consider current market conditions, as well as our intent with respect to holding or disposing of the asset. The intent with regard to the underlying assets might change as market conditions change, as well as other factors. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. | ||
Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with regard to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties. | ||
At September 30, 2014 and December 31, 2013, our investment in real estate has been recorded net of a cumulative impairment of $18.6 million as of the end of both periods. | ||
Acquired Indefinite-Lived Intangibles | ||
Acquired indefinite-lived intangibles represent the fair value of the management contracts in-place at the time of the contribution of Sponsor, RIF V REIT and their consolidated subsidiaries to the Operating Partnership as part of our formation transactions. The asset has an indefinite life, and, accordingly, is not amortized. | ||
Income Taxes | ||
We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. | ||
In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three and nine months ended September 30, 2014 and for the period from July 24, 2013 through September 30, 2013. | ||
Each of RIF I, RIF II, RIF III and RIF IV are limited liability companies but have elected to be taxed as a partnership for tax purposes. As such, the allocated share of net income or loss from the limited liability companies is reportable in the income tax returns of the respective partners and investors. Accordingly, no income tax provision is included in the accompanying combined financial statements. | ||
RIF V REIT has elected to be taxed as a REIT under the Code, commencing with its tax period ended December 31, 2010. We believe that RIF V REIT met all of the REIT distribution and technical requirements for the period from July 1, 2013 to July 23, 2013 and the period from January 1, 2013 to July 23, 2013, and accordingly, has not recognized any provision for income taxes. | ||
We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of September 30, 2014 and December 31, 2013, we have not established a liability for uncertain tax positions. | ||
Derivative Instruments and Hedging Activities | ||
FASB ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. | ||
As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 8. | ||
Revenue Recognition | ||
We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. | ||
Estimated reimbursements from tenants for real estate taxes, common area maintenance and other recoverable operating expenses are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. Lease termination fees, which are included in rental revenues in the accompanying consolidated and combined statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant. | ||
Revenues from management, leasing and development services are recognized when the related services have been provided and earned. | ||
The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions. | ||
Valuation of Receivables | ||
We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We had a $0.9 million and $0.5 million reserve for allowance for doubtful accounts as of September 30, 2014 and December 31, 2013, respectively. | ||
Equity Based Compensation | ||
We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation, which requires us to recognize an expense for the fair value of equity-based compensation awards. The estimated fair value of shares of restricted stock are amortized over their respective vesting periods. See Note 14. | ||
Earnings Per Share | ||
We calculate earnings per share (“EPS”) in accordance with ASC 260 – Earnings Per Share (“ASC 260”). Under ASC 260, shares of unrestricted stock that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. | ||
Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted EPS is computed using the weighted average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15. | ||
Segment Reporting | ||
Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. | ||
Recently Issued Accounting Pronouncements | ||
Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. | ||
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 establishes principles for reporting the nature, amount, timing and uncertainty of revenues and cash flows arising from an entity's contracts with customers. The core principle of the new standard is that an entity recognizes revenue to represent the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us in the first quarter of 2017 and will replace most existing revenue recognition guidance within GAAP. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating ASU 2014-09 to determine its impact on our consolidated financial statements and related disclosures, as well as the transition method to apply the new standard. | ||
Investments_in_Real_Estate
Investments in Real Estate | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Investments in Real Estate | ' | ||||||||||||||||||||||||||||||||||
3 | Investments in Real Estate | ||||||||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||||||
On January 15, 2014, we acquired the property located at 7110 Rosecrans Avenue located in Paramount, CA for a contract price of $4.969 million using proceeds from our revolving credit facility. The property consists of one industrial building totaling 72,000 square foot situated on 3.25 acres of land. | |||||||||||||||||||||||||||||||||||
On January 22, 2014, we acquired the property located at 14723-14825 Oxnard Street in Van Nuys, CA for a contract price of $8.875 million using proceeds from our revolving credit facility. The property consists of a six-building multi-tenant industrial business park totaling 78,000 square feet situated on 3.25 acres of land. | |||||||||||||||||||||||||||||||||||
On February 12, 2014, we acquired the property located at 845, 855, and 865 Milliken Avenue and 4317 and 4319 Santa Ana Street in Ontario, CA for a contract price of $8.55 million as part of a 1031 exchange using proceeds from the disposition of our property located at 1335 Park Center Drive. The property consists of a five-building multi-tenant industrial business park totaling 113,612 square feet situated on 5.74 acres of land. | |||||||||||||||||||||||||||||||||||
On February 25, 2014, we acquired the property located at 1500-1510 W. 228th Street in Los Angeles, CA for a contract price of $6.6 million. A portion of the acquisition was funded with the remaining proceeds from the disposition of 1335 Park Center Drive, and the remainder of the funding was provided from availability under our revolving credit facility. The property consists of a six-building multi-tenant industrial complex totaling 88,330 square feet situated on 3.9 acres of land. | |||||||||||||||||||||||||||||||||||
On March 20, 2014, we acquired the property located at 24105 and 24201 Frampton Avenue in Los Angeles, California for a contract price of $3.93 million using proceeds from our revolving credit facility. The property consists of one single-tenant building totaling 47,903 square feet situated on 2.07 acres of land. | |||||||||||||||||||||||||||||||||||
On April 17, 2014, we acquired the property located at 1700 Saturn Way in Seal Beach, California for a contract price of $21.1 million using proceeds from our revolving credit facility. The property consists of one single-tenant building totaling 170,865 square feet situated on 9.25 acres of land. | |||||||||||||||||||||||||||||||||||
On May 30, 2014, we acquired the property located at 2980 and 2990 N. San Fernando Boulevard in Burbank, California for a contract price of $15.425 million. We funded the acquisition in part by assuming a $10.3 million first mortgage loan secured by the property and used proceeds from our revolving credit facility to fund the remaining purchase price. The property consists of one single-tenant building totaling 130,800 square feet situated on 5.86 acres of land. | |||||||||||||||||||||||||||||||||||
On May 30, 2014, we acquired the property located at 20531 Crescent Bay Drive in Lake Forest, California for a contract price of $6.48 million using proceeds from our revolving credit facility. The property consists of one single-tenant building totaling 46,178 square feet situated on 2.47 acres of land. | |||||||||||||||||||||||||||||||||||
On June 5, 2014, we acquired the property located at 2610 and 2701 S. Birch Street in Santa Ana, California for a contract price of $11.0 million using funds from our revolving credit facility. The property consists of two single-tenant buildings totaling 98,105 square feet situated on 7.9 acres of land. | |||||||||||||||||||||||||||||||||||
On June 24, 2014, we acquired the property located at 4051 Santa Ana Street and 701 Dupont Avenue in Ontario, California for a contract price of $10.2 million using funds from our revolving credit facility. The property consists of a two-building multi-tenant industrial business park totaling 111,890 square feet situated on 5.66 acres of land. | |||||||||||||||||||||||||||||||||||
On June 27, 2014, we acquired an industrial portfolio consisting of nine properties located in the San Gabriel Valley, Orange County, and San Diego submarkets of California for a contract price of $88.5 million. We partially funded the acquisition with a new $48.5 million term loan secured by certain properties in the portfolio. The remaining purchase price was funded by using proceeds from our revolving credit facility. The portfolio consists of four single-tenant properties and five multi-tenant properties totaling 817,166 square feet situated on an aggregate 43.6 acres of land. | |||||||||||||||||||||||||||||||||||
On July 8, 2014, we acquired the property located at 3116 W. Avenue 32 in Los Angeles, California for a contract price of $11.0 million using funds from our revolving credit facility. The property consists of one two-tenant building totaling 100,500 square feet situated on 2.62 acres of land. | |||||||||||||||||||||||||||||||||||
On July 23, 2014, we acquired the Chatsworth Industrial Park located at 21019-21051 Osborne St., 9035 Independence Ave. and 21026-21040 Nordhoff St. in Chatsworth, California for a contract price of $16.8 million using funds from our revolving credit facility. The property consists of seven buildings totaling 153,212 square feet situated on 7.4 acres of land. | |||||||||||||||||||||||||||||||||||
On July 25, 2014, we acquired the property located at 24935 and 24955 Avenue Kearney in Santa Clarita, California for a contract price of $11.5 million using funds from our revolving credit facility. The property consists of two single-tenant building totaling 138,980 square feet situated on 6.0 acres of land. | |||||||||||||||||||||||||||||||||||
On August 26, 2014, we acquired the property located at 605 8th Street located in San Fernando, California for a contract price of $5.075 million using cash on hand. The property consists of one two-tenant building totaling 55,516 square feet situated on 2.75 acres of land. | |||||||||||||||||||||||||||||||||||
On September 12, 2014, we acquired the property located at 9120 Mason Avenue in Chatsworth, California for a contract price of $30.5 million using cash on hand. The property consists of one building totaling 319,348 square feet situated on 11.82 acres of land. | |||||||||||||||||||||||||||||||||||
During the period from July 24, 2013 to September 30, 2013, we acquired two properties consisting of two buildings and approximately 124,000 square feet. The properties are located in Southern California. The total contract price for those acquisitions was $14.0 million. | |||||||||||||||||||||||||||||||||||
During the period from January 1, 2013 to July 23, 2013 our predecessor acquired four properties consisting of 17 buildings and approximately 741,000 square feet. The properties are located throughout Southern California. The total contract price for those acquisitions was $73.8 million. | |||||||||||||||||||||||||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. | |||||||||||||||||||||||||||||||||||
Real estate assets: | Acquisition-related intangibles | ||||||||||||||||||||||||||||||||||
Address | Acquisition Date | Land | Buildings and | In-place Lease | Net Above (Below) | Total Purchase | Other Assets | Notes Payable, | Net Assets | ||||||||||||||||||||||||||
Improvements | Intangibles (1) | Market Lease | Price | Accounts Payable, | Acquired | ||||||||||||||||||||||||||||||
Intangibles (2) | Accrued Expenses | ||||||||||||||||||||||||||||||||||
and Tenant | |||||||||||||||||||||||||||||||||||
Security Deposits | |||||||||||||||||||||||||||||||||||
2014 Acquisitions | |||||||||||||||||||||||||||||||||||
7110 Rosecrans Avenue(3) | 1/15/14 | $ | 3,117,000 | $ | 1,894,000 | $ | - | $ | - | $ | 5,011,000 | $ | - | $ | (321,000 | ) | $ | 4,690,000 | |||||||||||||||||
14723-14825 Oxnard Street | 1/22/14 | $ | 4,458,000 | $ | 3,948,000 | $ | 490,000 | $ | (21,000 | ) | $ | 8,875,000 | $ | - | $ | (117,000 | ) | $ | 8,758,000 | ||||||||||||||||
845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street | 2/12/14 | $ | 2,260,000 | $ | 6,043,000 | $ | 431,000 | $ | (184,000 | ) | $ | 8,550,000 | $ | 2,000 | $ | (116,000 | ) | $ | 8,436,000 | ||||||||||||||||
1500-1510 West 228th Street(4) | 2/25/14 | $ | 2,428,000 | $ | 4,271,000 | $ | 205,000 | $ | (304,000 | ) | $ | 6,600,000 | $ | 1,180,000 | $ | (1,214,000 | ) | $ | 6,566,000 | ||||||||||||||||
24105 & 24201 Frampton Avenue | 3/20/14 | $ | 2,315,000 | $ | 1,553,000 | $ | 62,000 | $ | - | $ | 3,930,000 | $ | 22,000 | $ | (64,000 | ) | $ | 3,888,000 | |||||||||||||||||
1700 Saturn Way | 4/17/14 | $ | 7,935,000 | $ | 10,525,000 | $ | 2,259,000 | $ | 381,000 | $ | 21,100,000 | $ | 76,000 | $ | (73,000 | ) | $ | 21,103,000 | |||||||||||||||||
20531 Crescent Bay Drive | 5/30/14 | $ | 2,181,000 | $ | 4,012,000 | $ | 389,000 | $ | (102,000 | ) | $ | 6,480,000 | $ | 4,000 | $ | (2,000 | ) | $ | 6,482,000 | ||||||||||||||||
2980 & 2990 N. San Fernando Blvd.(5) | 5/30/14 | $ | 6,373,000 | $ | 7,356,000 | $ | 1,276,000 | $ | 728,000 | $ | 15,733,000 | $ | - | $ | (10,572,000 | ) | $ | 5,161,000 | |||||||||||||||||
2610 & 2701 S. Birch Street(6) | 6/5/14 | $ | 9,305,000 | $ | 2,114,000 | $ | - | $ | - | $ | 11,419,000 | $ | 5,000 | $ | (299,000 | ) | $ | 11,125,000 | |||||||||||||||||
4051 Santa Ana St. & 701 Dupont Ave. | 6/24/14 | $ | 3,725,000 | $ | 6,145,000 | $ | 524,000 | $ | (194,000 | ) | $ | 10,200,000 | $ | 1,000 | $ | (90,000 | ) | $ | 10,111,000 | ||||||||||||||||
9755 Distribution Avenue | 6/27/14 | $ | 1,863,000 | $ | 3,211,000 | $ | 451,000 | $ | (100,000 | ) | $ | 5,425,000 | $ | 2,000 | $ | (97,000 | ) | $ | 5,330,000 | ||||||||||||||||
9855 Distribution Avenue | 6/27/14 | $ | 2,733,000 | $ | 5,041,000 | $ | 621,000 | $ | 130,000 | $ | 8,525,000 | $ | 5,000 | $ | (39,000 | ) | $ | 8,491,000 | |||||||||||||||||
9340 Cabot Drive | 6/27/14 | $ | 4,311,000 | $ | 6,126,000 | $ | 538,000 | $ | - | $ | 10,975,000 | $ | 2,000 | $ | (54,000 | ) | $ | 10,923,000 | |||||||||||||||||
9404 Cabot Drive | 6/27/14 | $ | 2,413,000 | $ | 3,451,000 | $ | 346,000 | $ | 190,000 | $ | 6,400,000 | $ | 1,000 | $ | (6,000 | ) | $ | 6,395,000 | |||||||||||||||||
9455 Cabot Drive | 6/27/14 | $ | 4,423,000 | $ | 6,799,000 | $ | 851,000 | $ | 27,000 | $ | 12,100,000 | $ | 1,000 | $ | (13,000 | ) | $ | 12,088,000 | |||||||||||||||||
14955-14971 E. Salt Lake City | 6/27/14 | $ | 5,126,000 | $ | 5,009,000 | $ | 800,000 | $ | (85,000 | ) | $ | 10,850,000 | $ | 3,000 | $ | (119,000 | ) | $ | 10,734,000 | ||||||||||||||||
5235 E. Hunter Avenue | 6/27/14 | $ | 5,240,000 | $ | 5,065,000 | $ | 866,000 | $ | 158,000 | $ | 11,329,000 | $ | 15,000 | $ | (76,000 | ) | $ | 11,268,000 | |||||||||||||||||
3880 W. Valley Blvd. | 6/27/14 | $ | 3,982,000 | $ | 4,796,000 | $ | 566,000 | $ | 287,000 | $ | 9,631,000 | $ | 1,000 | $ | (119,000 | ) | $ | 9,513,000 | |||||||||||||||||
1601 Alton Parkway | 6/27/14 | $ | 7,638,000 | $ | 4,946,000 | $ | 419,000 | $ | 273,000 | $ | 13,276,000 | $ | 1,000 | $ | (52,000 | ) | $ | 13,225,000 | |||||||||||||||||
3116 West Avenue 32(7) | 7/8/14 | $ | 3,761,000 | $ | 6,730,000 | $ | 503,000 | $ | 61,000 | $ | 11,055,000 | $ | - | $ | (121,000 | ) | $ | 10,934,000 | |||||||||||||||||
21026-21040 Nordhoff Street, 9035 Independence Avenue, & 21019, 21021, 21025, 21029, 21045-21051 Osborne Street | 7/23/14 | $ | 7,229,000 | $ | 9,058,000 | $ | 650,000 | $ | (137,000 | ) | $ | 16,800,000 | $ | 1,000 | $ | (164,000 | ) | $ | 16,637,000 | ||||||||||||||||
24935 & 24955 Avenue Kearny | 7/25/14 | $ | 4,773,000 | $ | 5,970,000 | $ | 767,000 | $ | - | $ | 11,510,000 | $ | - | $ | (95,000 | ) | $ | 11,415,000 | |||||||||||||||||
605 8th St.(8) | 8/26/14 | $ | 2,393,000 | $ | 2,742,000 | $ | - | $ | - | $ | 5,135,000 | $ | - | $ | (88,000 | ) | $ | 5,047,000 | |||||||||||||||||
9120 Mason Avenue & 20355 Corisco Street | 9/12/14 | $ | 9,224,000 | $ | 19,346,000 | $ | 1,620,000 | $ | 310,000 | $ | 30,500,000 | $ | - | $ | (348,000 | ) | $ | 30,152,000 | |||||||||||||||||
Total | $ | 109,206,000 | $ | 136,151,000 | $ | 14,634,000 | $ | 1,418,000 | $ | 261,409,000 | $ | 1,322,000 | $ | (14,259,000 | ) | $ | 248,472,000 | ||||||||||||||||||
2013 Acquisitions: | |||||||||||||||||||||||||||||||||||
8101-8117 Orion Avenue | 7/30/13 | $ | 1,389,000 | $ | 3,872,000 | $ | 327,000 | $ | 12,000 | $ | 5,600,000 | $ | 19,000 | $ | (55,000 | ) | $ | 5,564,000 | |||||||||||||||||
18310-18330 Oxnard Street | 8/7/13 | $ | 2,498,000 | $ | 5,493,000 | $ | 435,000 | $ | (1,000 | ) | $ | 8,425,000 | $ | 4,000 | $ | (69,000 | ) | $ | 8,360,000 | ||||||||||||||||
$ | 3,887,000 | $ | 9,365,000 | $ | 762,000 | $ | 11,000 | $ | 14,025,000 | $ | 23,000 | $ | (124,000 | ) | $ | 13,924,000 | |||||||||||||||||||
2013 Predecessor Acquisitions: | |||||||||||||||||||||||||||||||||||
18118-18120 S. Broadway | 4/4/13 | $ | 3,013,000 | $ | 2,161,000 | $ | 274,000 | $ | - | $ | 5,448,000 | $ | 16,000 | $ | (57,000 | ) | $ | 5,407,000 | |||||||||||||||||
8900-8980 Benson Ave., 5637 Arrow Highway | 4/9/13 | $ | 1,817,000 | $ | 4,590,000 | $ | 552,000 | $ | 191,000 | $ | 7,150,000 | $ | 20,000 | $ | (104,000 | ) | $ | 7,066,000 | |||||||||||||||||
3350 Tyburn St., 3332, 3334, 3360, 3368, 3370, 3378, 3380, 3410, 3424 N. San Fernando Rd. | 4/17/13 | $ | 26,423,000 | $ | 25,795,000 | $ | 2,568,000 | $ | 1,414,000 | $ | 56,200,000 | $ | 168,000 | $ | (500,000 | ) | $ | 55,868,000 | |||||||||||||||||
1661 240th St. | 5/31/13 | $ | 3,464,000 | $ | 1,498,000 | $ | 38,000 | $ | - | $ | 5,000,000 | $ | 8,000 | $ | (17,000 | ) | $ | 4,991,000 | |||||||||||||||||
$ | 34,717,000 | $ | 34,044,000 | $ | 3,432,000 | $ | 1,605,000 | $ | 73,798,000 | $ | 212,000 | $ | (678,000 | ) | $ | 73,332,000 | |||||||||||||||||||
-1 | The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 3.4 years as of September 30, 2014. | ||||||||||||||||||||||||||||||||||
-2 | The weighted average amortization period of net above (below) market leases for our 2014 acquisitions was 3.5 years as of September 30, 2014. | ||||||||||||||||||||||||||||||||||
-3 | As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation includes $42,000 of capitalized acquisition costs. | ||||||||||||||||||||||||||||||||||
-4 | As part of the acquisition of 1500-1510 West 228th Street, we recorded a contingent liability in the amount of $1.2 million, related to the estimated cost to remediate potential environmental liabilities that existed at the acquisition date. Additionally, we recorded an indemnification asset for the same amount as the seller has placed $1.3 million into an escrow account to be used by us toward the payment of these remediation costs. See Note 11. | ||||||||||||||||||||||||||||||||||
-5 | In connection with the acquisition of 2980 and 2990 N. San Fernando Blvd. acquisition, we assumed debt with an outstanding principal balance of $10.3 million and an initial fair value premium of $308,000. | ||||||||||||||||||||||||||||||||||
-6 | As the purchase of 2610 and 2701 S. Birch Street was accounted for as an asset acquisition, the total purchase price allocation includes $121,000 of capitalized acquisition costs. Additionally, as part of the purchase price allocation, $299,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the six-months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||
-7 | The purchase price allocation for the acquisition of 3116 West Avenue 32 includes $54,000 in deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||
-8 | As part of the purchase price allocation of 605 8th St., $60,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||
The preliminary allocation of the purchase price is based upon a preliminary valuation and our estimates and assumptions are subject to change within the purchase price allocation period (generally one year from the acquisition date). | |||||||||||||||||||||||||||||||||||
The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period: | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||
Revenues | $ | 4,310,000 | $ | 6,004,000 | |||||||||||||||||||||||||||||||
Net Income | $ | 161,000 | $ | 420,000 | |||||||||||||||||||||||||||||||
The following table presents unaudited pro-forma financial information as if the closing of our 2014 acquisitions had occurred on January 1, 2013. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions, and increased interest expense for borrowings associated with our 2014 acquisitions. These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2013 and may not be indicative of future operating results. | |||||||||||||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||||||||||||
Revenues | $ | 18,717,000 | $ | 12,695,000 | $ | 3,972,000 | $ | 55,420,000 | $ | 12,695,000 | $ | 33,732,000 | |||||||||||||||||||||||
Net operating income | $ | 13,264,000 | $ | 8,788,000 | $ | 2,904,000 | $ | 38,995,000 | $ | 8,788,000 | $ | 23,979,000 | |||||||||||||||||||||||
Net income | $ | 549,000 | $ | 115,000 | $ | (5,928,000 | ) | $ | 3,191,000 | $ | 115,000 | $ | (6,671,000 | ) | |||||||||||||||||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
4 | Intangible Assets | ||||||||||||||||||||||||
The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows: | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Acquired Lease Intangible Assets: | |||||||||||||||||||||||||
In-place lease intangibles | $ | 30,475,000 | $ | 16,112,000 | |||||||||||||||||||||
Accumulated amortization | (10,391,000 | ) | (4,201,000 | ) | |||||||||||||||||||||
In-place lease intangibles, net | 20,084,000 | 11,911,000 | |||||||||||||||||||||||
Above-market tenant leases | 4,458,000 | 1,881,000 | |||||||||||||||||||||||
Accumulated amortization | (984,000 | ) | (284,000 | ) | |||||||||||||||||||||
Above-market tenant leases, net | 3,474,000 | 1,597,000 | |||||||||||||||||||||||
Acquired lease intangible assets, net | $ | 23,558,000 | $ | 13,508,000 | |||||||||||||||||||||
Acquired Lease Intangible Liabilities: | |||||||||||||||||||||||||
Below-market tenant leases | (2,191,000 | ) | (1,055,000 | ) | |||||||||||||||||||||
Accumulated accretion | 523,000 | 189,000 | |||||||||||||||||||||||
Below-market tenant leases, net | (1,668,000 | ) | (866,000 | ) | |||||||||||||||||||||
Above-market ground lease | (290,000 | ) | (290,000 | ) | |||||||||||||||||||||
Accumulated accretion | 37,000 | 13,000 | |||||||||||||||||||||||
Above-market ground lease, net | (253,000 | ) | (277,000 | ) | |||||||||||||||||||||
Acquired lease intangible liabilities, net | $ | (1,921,000 | ) | $ | (1,143,000 | ) | |||||||||||||||||||
The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the reported periods noted below: | |||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
In-place lease intangibles(1) | $ | 2,641,000 | $ | 1,084,000 | $ | 174,000 | $ | 6,552,000 | $ | 1,084,000 | $ | 1,238,000 | |||||||||||||
Above-market tenant leases(2) | $ | 340,000 | $ | 152,000 | $ | 49,000 | $ | 700,000 | $ | 152,000 | $ | 258,000 | |||||||||||||
Below-market tenant leases(3) | $ | (182,000 | ) | $ | (31,000 | ) | $ | (5,000 | ) | $ | (371,000 | ) | $ | (31,000 | ) | $ | (19,000 | ) | |||||||
Above-market ground lease(4) | $ | (8,000 | ) | $ | - | $ | - | $ | (24,000 | ) | $ | - | $ | - | |||||||||||
-1 | The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-2 | The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-3 | The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-4 | The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
Notes_Receivable
Notes Receivable | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Notes Receivable | ' | ||||||||
5 | Notes Receivable | ||||||||
On February 8, 2013, the mortgage note borrower for the 2824 E. Foothill Blvd. loan repaid, ahead of schedule, the outstanding principal in full. Our Predecessor received gross proceeds from this payoff of $5.4 million, including $6,310 in per diem interest, of which $2.5 million was used to repay the loan secured by this note. The remaining proceeds were paid as a distribution to investors in RIF V. Our Predecessor recorded a $1.4 million gain on collection of notes receivable during the period from January 1, 2013 to July 23, 2013. | |||||||||
The following table summarizes the balance of our notes receivable: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Face Amount | $ | 13,965,000 | $ | 14,161,000 | |||||
Unrecognized Accretable Yield | (827,000 | ) | (1,022,000 | ) | |||||
Note Receivable(1) | $ | 13,138,000 | $ | 13,139,000 | |||||
-1 | This is a mortgage loan secured by 32401-32803 Calle Perfecto. |
Notes_Payable
Notes Payable | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Notes Payable | ' | |||||||||||||||
6 | Notes Payable | |||||||||||||||
The following table summarizes our notes payable: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | Contractual | Interest Rate | |||||||||||||
Maturity Date | ||||||||||||||||
Fixed Rate Debt | ||||||||||||||||
RIF V - Jersey, LLC | $ | 5,058,000 | -1 | $ | 5,189,000 | -1 | 1/1/15 | 5.45 | % | -2 | ||||||
The Park | 3,089,000 | -3 | 3,177,000 | -3 | 3/1/31 | 5.125 | % | -4 | ||||||||
2980 San Fernando | 10,414,000 | -5 | - | 7/1/15 | 5.088 | % | -2 | |||||||||
Variable Rate Debt | ||||||||||||||||
RIF V - Glendale Commerce Center, LLC | 42,750,000 | 42,750,000 | 5/1/16 | -6 | LIBOR + 2.00% | |||||||||||
Term Loan (7) | 60,000,000 | 60,000,000 | 8/1/19 | -10 | LIBOR + 1.90% | |||||||||||
Term Loan(8) | 48,500,000 | - | 6/24/17 | -9 | LIBOR + 1.55% | |||||||||||
$100M Term Loan Facility | 100,000,000 | - | 6/11/19 | LIBOR + 1.35% | ||||||||||||
Unsecured Credit Facility | ||||||||||||||||
$200M Revolving Facility | - | 81,375,000 | 6/11/18 | -10 | LIBOR + 1.40% | -11 | ||||||||||
Total | $ | 269,811,000 | $ | 192,491,000 | ||||||||||||
-1 | Includes unamortized debt premium of $12,000 at September 30, 2014 and $50,000 at December 31, 2013. | |||||||||||||||
-2 | Monthly payments of interest and principal based on 30-year amortization table. | |||||||||||||||
-3 | Includes unamortized debt discount of $115,000 at September 30, 2014 and $118,000 at December 31, 2013. | |||||||||||||||
-4 | Monthly payments of interest and principal based on 20-year amortization table. | |||||||||||||||
-5 | Includes unamortized debt premium of $215,000 at September 30, 2014. | |||||||||||||||
-6 | Two additional one year extensions available at the borrower’s option. | |||||||||||||||
-7 | Loan is secured by six properties. | |||||||||||||||
-8 | Loan is secured by eight properties. | |||||||||||||||
-9 | One additional two-year extension available at the borrower’s option. | |||||||||||||||
-10 | One additional one-year extension available at the borrower’s option. | |||||||||||||||
-11 | The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the revolver, if the balance is under $100 million or over $100 million, respectively. | |||||||||||||||
On May 30, 2014, in connection with the acquisition of the property located at 2980 San Fernando, we assumed a first mortgage loan that is secured by the property. The assumed mortgage had a principal balance of $10.3 million at the acquisition date and was recorded at fair value at the date of acquisition resulting in an initial debt premium of $308,000. The loan, which was put in place in 2005 by the seller, bears interest at a fixed rate of 5.088% with amortization over 30 years, and has a maturity date of July 1, 2015. | ||||||||||||||||
On June 24, 2014, we entered into a $48.5 million term loan which bears interest at LIBOR plus 1.55% that matures on June 24, 2017, with one additional two-year extension at our option. The loan proceeds were used to partially fund the acquisition of a portfolio of nine properties. The loan is secured by the first priority deed of trust on eight of these nine properties. Additionally, the loan includes a series of customary covenants that we must comply with, in addition to a performance covenant that is tested annually and requires the achievement of a minimum in-place debt yield of 9.25% by the properties securing the loan. | ||||||||||||||||
The following table summarizes the stated debt maturities and scheduled amortization payments, excluding debt discounts and premiums, as of September 30, 2014 and does not consider extension options available to us as noted above: | ||||||||||||||||
October 1, 2014 - December 31, 2014 | $ | 110,000 | ||||||||||||||
2015 | 15,294,000 | |||||||||||||||
2016 | 42,885,000 | |||||||||||||||
2017 | 48,642,000 | |||||||||||||||
2018 | 150,000 | |||||||||||||||
Thereafter | 162,618,000 | |||||||||||||||
Total (1) | $ | 269,699,000 | ||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of the $112,000 net debt premium. | |||||||||||||||
Amended Facility | ||||||||||||||||
On June 11, 2014, we amended our existing revolving credit facility by entering into an Amended and Restated Credit Agreement (the “Amended Facility”). The Amended Facility, among other matters, adds a five-year $100.0 million term loan to the existing $200.0 million revolving credit facility. | ||||||||||||||||
The Amended Facility has an initial principal amount of $300.0 million comprised of a senior unsecured revolving credit facility (the “Revolver”) in an initial principal amount of $200.0 million, and a senior unsecured term loan facility (the “Term Loan Facility”) in the principal amount of $100.0 million. The maturity date of the Revolver was extended to June 11, 2018 (previously July 24, 2016), with one 12-month extension option available, subject to certain conditions, and the Term Loan Facility has a maturity date of June 11, 2019. The aggregate principal amount of the Amended Facility may be increased to a total of up to $600.0 million, which may be comprised of additional revolving commitments under the Revolver or an increase to the Term Loan Facility, or any combination of the foregoing, subject to the satisfaction of specified conditions and the identification of lenders willing to make available such additional amounts. | ||||||||||||||||
Interest on the Amended Facility is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) the applicable base rate which is the greater of (a) the federal funds rate plus 0.50%, (b) the administrative agent’s prime rate or (c) the thirty-day LIBOR plus 1.00%, plus the applicable base rate margin. Until we attain an investment grade rating, the applicable LIBOR margin will range from 1.30% to 1.90% (previously 1.35% to 2.05%), for the Revolver and 1.25% to 1.85% for the Term Loan Facility, depending on the our Leverage Ratio (as defined in the Amended Facility). The Amended Facility requires quarterly payments of an annual unused facility fee in an amount equal to 0.20% or 0.30% depending on the undrawn amount of the Revolver. | ||||||||||||||||
The Amended Facility is guaranteed by the Company and by substantially all of the current and future subsidiaries of the Operating Partnership that own an unencumbered property. The Amended Facility is not secured by the Company’s properties or by equity interests in the subsidiaries that hold such properties. | ||||||||||||||||
The Amended Facility includes a series of financial and other covenants that we must comply with in order to borrow under the Amended Facility, including: | ||||||||||||||||
· | Maintaining a ratio of total indebtedness to total asset value of not more than 60%; | |||||||||||||||
· | Maintaining a ratio of secured debt to total asset value of not more than 45%; | |||||||||||||||
· | Maintaining a ratio of total recourse debt to total asset value of not more than 15%; | |||||||||||||||
· | Maintaining a minimum tangible net worth of at least the sum of (i) $283,622,250, and (ii) an amount equal to at least 75% of the net equity proceeds received by the Company after March 31, 2014; | |||||||||||||||
· | Maintaining a ratio of adjusted EBITDA to fixed charges of at least 1.50 to 1.0; | |||||||||||||||
· | Maintaining a ratio of total unsecured debt to total unencumbered asset value of not more than 60%; and | |||||||||||||||
· | Maintaining a ratio of unencumbered NOI to unsecured interest expense of at least 1.75 to 1.0. | |||||||||||||||
The Revolver and the Term Loan Facility may be voluntarily prepaid in whole or in part at any time without premium or penalty. Amounts borrowed under the Term Loan Facility and repaid or prepaid may not be reborrowed. | ||||||||||||||||
The Amended Facility contains usual and customary events of default including defaults in the payment of principal, interest or fees, defaults in compliance with the covenants set forth in the Amended Facility and other loan documentation, cross-defaults to certain other indebtedness, and bankruptcy and other insolvency defaults. If an event of default occurs and is continuing under the Amended Facility, the unpaid principal amount of all outstanding loans, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable. We believe we are currently in compliance with all of the financial covenants required by our loan agreements. | ||||||||||||||||
On August 22, 2014, we paid down the outstanding balance of $137.5 million on our Revolver, leaving $200.0 million available for additional borrowings as of September 30, 2014. |
Operating_Leases
Operating Leases | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases Operating [Abstract] | ' | ||||
Operating Leases | ' | ||||
7 | Operating Leases | ||||
We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses. Operating expense reimbursements are reflected in the consolidated and combined statements of operations as tenant reimbursements. | |||||
Future minimum base rent under operating leases as of September 30, 2014 is summarized as follows: | |||||
Twelve months ending September 30: | |||||
2015 | $ | 57,703,000 | |||
2016 | 45,147,000 | ||||
2017 | 30,232,000 | ||||
2018 | 20,722,000 | ||||
2019 | 15,429,000 | ||||
Thereafter | 25,722,000 | ||||
Total | $ | 194,955,000 | |||
The future minimum base rent in the table above excludes tenant reimbursements, amortization of adjustments for deferred rent receivables and the amortization of above/below-market lease intangibles. | |||||
Interest_Rate_Contracts
Interest Rate Contracts | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Interest Rate Contracts | ' | ||||||||||||||||||||||||
8 | Interest Rate Contracts | ||||||||||||||||||||||||
Risk Management Objective of Using Derivatives | |||||||||||||||||||||||||
We are exposed to certain risk arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings. | |||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||
Our objectives in using interest rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, we primarily use interest rate swaps as part of our interest rate risk management strategy. Interest rate swaps involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. We do not use derivatives for trading or speculative purposes. | |||||||||||||||||||||||||
The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. For a derivative that is designated and that qualifies as a cash flow hedge, the effective portion of the change in fair value of the derivative is initially recorded in accumulated other comprehensive income (“AOCI”). Amounts recorded in AOCI are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. | |||||||||||||||||||||||||
On February 4, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our existing $60.0 million variable-rate term loan. Each of the two swaps has a notional value of $30.0 million, which will be in effect beginning in 2015. We are required to make certain monthly fixed rate payments calculated on notional amounts of $30.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount. The first forward swap will effectively fix the annual interest rate payable on $30.0 million of debt at 3.726% for the period from January 15, 2015 to February 15, 2019. The second forward swap will effectively fix the annual interest rate payable on the other $30.0 million of debt at 3.91% for the period from July 15, 2015 to February 15, 2019. | |||||||||||||||||||||||||
On August 19, 2014, we executed two forward-starting interest rate swap transactions to hedge the variable cash flows associated with our $100.0 million Term Loan Facility. Each of the two swaps has a notional value of $50.0 million. The first swap has an effective date of August 14, 2015 and a maturity date of December 14, 2018. The second swap has an effective date of February 16, 2016 and a maturity date of December 14, 2018. We are required to make certain monthly fixed rate payments calculated on notional amounts of $50.0 million for each of the swaps, while the applicable counterparty is obligated to make certain monthly floating rate payments based on LIBOR to us referencing the same notional amount. The interest rate swaps will effectively fix the annual interest rate payable on our Term Loan Facility at 1.79% for the first swap and 2.005% for the second swap, plus an applicable margin under the terms of the Amended Facility. | |||||||||||||||||||||||||
Prior to our IPO, our predecessor was party to an interest rate swap that was not designated as a hedge, and as such, the changes in its fair value were recognized in earnings. This interest rate swap reached its natural termination on March 15, 2013. As of September 30, 2014 and December 31, 2013, we do not have any derivatives that are not designated as hedges. | |||||||||||||||||||||||||
The following table presents a summary of our derivative instruments designated as hedging instruments. We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. | |||||||||||||||||||||||||
Fair Value | Notional Amount in Effect as of | ||||||||||||||||||||||||
Derivative Instrument | Effective Date | Maturity Date | Interest Strike Rate | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap(1) | 8/14/15 | 12/14/18 | 1.79 | % | $ | 209,000 | $ | - | $ | - | $ | - | |||||||||||||
Interest Rate Swap(1) | 2/16/16 | 12/14/18 | 2.005 | % | $ | 187,000 | $ | - | $ | - | $ | - | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap(2) | 1/15/15 | 2/15/19 | 1.826 | % | $ | 132,000 | $ | - | $ | - | $ | - | |||||||||||||
Interest Rate Swap(2) | 7/15/15 | 2/15/19 | 2.01 | % | $ | 97,000 | $ | - | $ | - | $ | - | |||||||||||||
-1 | The fair value of this interest rate swap is included in the line item “Other assets” on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||
-2 | The fair value of this interest rate swap is included in the line item “Accounts payable, accrued expenses and other liabilities” on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||
The following table presents the impact of our derivative instruments on our consolidated and combined statement of operations for the periods presented: | |||||||||||||||||||||||||
. | Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | |||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
Interest Rate Swaps in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||
Amount of gain recognized in AOCI on derivatives (effective portion) | $ | 626,000 | $ | - | $ | - | $ | 167,000 | $ | - | $ | - | |||||||||||||
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion) | - | - | - | - | - | - | |||||||||||||||||||
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing) | - | - | - | - | - | - | |||||||||||||||||||
Interest Rate Swaps Not in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps" | - | - | - | - | - | 49,000 | |||||||||||||||||||
Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments and accruals are made on our variable-rate debt. During the next twelve months, we estimate that an additional $504,000 will be reclassified as an increase to interest expense. | |||||||||||||||||||||||||
Credit-risk-related Contingent Features | |||||||||||||||||||||||||
Certain of our agreements with our derivative counterparties that contain a provision where if we default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender within a specified time period, then we could also be declared in default on its derivative obligations. | |||||||||||||||||||||||||
Certain of our agreements with our derivative counterparties contain provisions where if a merger or acquisition occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. | |||||||||||||||||||||||||
As of September 30, 2014, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was $245,000. As of September 30, 2014, we have not posted any collateral related to these agreements. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
9 | Fair Value Measurements | ||||||||||||||||||||
We have adopted FASB Accounting Standards Codification Topic 820: Fair Value Measurements and Disclosure (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. | |||||||||||||||||||||
ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). | |||||||||||||||||||||
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||||||
Recurring Measurements – Interest Rate Swaps | |||||||||||||||||||||
Currently, we use interest rate swap agreements to manage our interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. | |||||||||||||||||||||
To comply with the provisions of ASC 820, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | |||||||||||||||||||||
Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by ourselves and our counterparties. However, as of September 30, 2014, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, we have determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | |||||||||||||||||||||
The table below sets forth the estimated fair value of our interest rate swaps as of September 30, 2014, which we measure on a recurring basis by level within the fair value hierarchy. There were no assets or liabilities that we measure at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
At September 30, 2014 | Total Fair Value | Quoted Price in Active | Significant Other | Significant | |||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets and Liabilities | (Level 2) | (Level 3) | |||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Interest Rate Swap Assets | $ | 396,000 | $ | - | $ | 396,000 | $ | - | |||||||||||||
Interest Rate Swap Liabilities | $ | (229,000 | ) | $ | - | $ | (229,000 | ) | $ | - | |||||||||||
Financial Instruments Disclosed at Fair Value | |||||||||||||||||||||
The carrying amounts of cash and cash equivalents, restricted cash, rents and other receivables, other assets, accounts payable, accrued expenses and other liabilities, and tenant security deposits approximate fair value because of their short-term nature. Additionally, we believe the carrying value of notes receivable approximates fair value. | |||||||||||||||||||||
The fair value of our secured notes payable was estimated by calculating the present value of principal and interest payments, using currently available market rates, adjusted with a credit spread, and assuming the loans are outstanding through maturity. | |||||||||||||||||||||
The table below sets forth the carrying value and the estimated fair value of our notes payable as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
Liabilities | Total Fair Value | Quoted Price in Active | Significant Other | Significant | Carrying Value | ||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets and Liabilities | (Level 2) | (Level 3) | |||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Notes Payable at: | |||||||||||||||||||||
30-Sep-14 | $ | 269,754,000 | $ | - | $ | - | $ | 269,754,000 | $ | 269,811,000 | |||||||||||
31-Dec-13 | $ | 192,492,000 | $ | - | $ | - | $ | 192,492,000 | $ | 192,491,000 | |||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |
Sep. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions | ' | |
10 | Related Party Transactions | |
Howard Schwimmer | ||
We engage in transactions with Howard Schwimmer, our Co-Chief Executive Officer, earning management and development fees and leasing commissions from entities controlled individually by Mr. Schwimmer. Fees and commissions earned from these entities are included in “Management, leasing and development services” in the consolidated and combined statements of operations. We recorded $46,000 for the three months ended September 30, 2014, $30,000 for the period from July 24, 2013 to September 30, 2013, $8,000 for the period from July 1, 2013 to July 23, 2013, $162,000 for the nine months ended September 30, 2014 and $87,000 for the period from January 1, 2013 to July 23, 2013, in management, leasing and development services revenue. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
11 | Commitments and Contingencies | ||||||||
Legal | |||||||||
From time to time, we are subject to various legal proceedings that arise in the ordinary course of business. | |||||||||
On October 3, 2013, two pre-IPO investors filed a putative class action purportedly brought on behalf of the investors in RIF III in the Los Angeles County Superior Court. On February 14, 2014, a First Amended Complaint was filed adding an additional individual pre-IPO investor and putative class claims on behalf of investors in RIF IV. This complaint also alleged that the communication of the proposed accommodation (in which Messrs. Schwimmer, Frankel and Ziman, together with certain other pre-IPO owners of the pre-IPO management companies agreed to return up to $32.1 million that they received in connection with our IPO and formation transactions) was materially misleading by not including disclosures regarding the lawsuit and claims asserted by plaintiffs. On July 15, 2014, a Second Amended Complaint was filed withdrawing the class action allegations and the allegations concerning communication of the accommodation, and adding four additional plaintiff investors. During the third quarter of 2014, the Company entered into settlement agreements with three of these four additional plaintiffs. The aggregate amounts paid by the Company in these settlements was not material. Plaintiffs assert claims against the Company, RIF III, RIF IV, RILLC and Messrs. Schwimmer, Frankel and Ziman for breach of fiduciary duty, violation of certain California securities laws, negligent misrepresentation, and fraud. Plaintiffs allege, among other things, that the terms of the Company’s formation transactions were unfair to investors in RIF III and RIF IV, that the consideration received by investors in RIF III and RIF IV in the formation transactions was inadequate, that the pre-IPO management companies were allocated unfair value in the formation transactions and that the disclosure documents related to the formation transactions were materially misleading. Plaintiffs also request to inspect the books and records of RIF III and RIF IV, which entities no longer exist, and further seek declaratory relief, unspecified recessionary damages, disgorgement, compensatory, punitive and exemplary damages, an accounting for unjust enrichment, and an award of costs including pre-judgment interest, attorneys’ and experts’ fees, and other unspecified relief. Defendants have answered the Second Amended Complaint denying all allegations and asserting affirmative defenses. While we believe that the action is without merit and intend to defend the litigation vigorously, we expect to incur costs associated with defending the action. At this early stage of the litigation, the ultimate outcome of the action is uncertain and we cannot reasonably assess the timing or outcome, or estimate the amount of loss, if any, or its effect, if any, on our financial condition. | |||||||||
Environmental | |||||||||
We generally will perform environmental site assessments at properties we are considering acquiring. After the acquisition of such properties, we continue to monitor the properties for the presence of hazardous or toxic substances. From time to time, we acquire properties with known adverse environmental conditions. If at the time of acquisition, losses associated with environmental remediation obligations are probable and can be reasonably estimable, we record a liability. | |||||||||
On February 25, 2014, we acquired the property located at West 228th Street. Before purchasing the property, during the due diligence phase, we engaged with a third party environmental consultant to perform various environmental site assessments to determine the presence of any environmental contaminants that might warrant remediation efforts. Based on their investigation, they determined that hazardous substances existed at the property and that additional assessment and remediation work would likely be required to satisfy regulatory requirements. The total remediation costs were estimated to be $1.3 million. | |||||||||
To address the estimated costs associated with the environmental issues at the West 228th Street property, we entered into an Environmental Holdback Escrow Agreement (the “Holdback Agreement”) with the seller, whereby $1.3 million of the purchase price, which would have otherwise been paid to the seller, was to be placed into an escrow account to be used to pay remediation costs. In addition, we have also funded $100,000 into the escrow account. According to the Holdback Agreement, the seller has no liability or responsibility to pay for remediation costs in excess of $1.3 million. | |||||||||
As part of the purchase price allocation, we have recorded a contingent liability in the amount of $1.2 million in the line item Accounts payable, accrued expenses and other liabilities on the balance sheet, related to the estimated cost to remediate potential environmental liabilities that existed prior to the acquisition date. Based on the Holdback Agreement, we have recorded a corresponding $1.2 million indemnification asset in the line item Other assets on the balance sheet. We expect that resolution of the environmental matters relating to the above will not have a material impact on our consolidated financial condition, results of operations or cash flows. | |||||||||
Rent Expense | |||||||||
As of September 30, 2014, we lease a parcel of land that is currently being sub-leased to a tenant for a parking lot. The ground lease is scheduled to expire on June 1, 2062. | |||||||||
The future minimum commitment under our ground lease and corporate office lease as of September 30, 2014 is as follows: | |||||||||
Office Lease | Ground Rent | ||||||||
October 1, 2014 - December 31, 2014 | $ | 100,000 | $ | 36,000 | |||||
2015 | 434,000 | 144,000 | |||||||
2016 | 520,000 | 144,000 | |||||||
2017 | 542,000 | 144,000 | |||||||
2018 | 559,000 | 144,000 | |||||||
Thereafter | 337,000 | 6,252,000 | |||||||
Total | $ | 2,492,000 | $ | 6,864,000 | |||||
Tenant Related | |||||||||
As of September 30, 2014, we had commitments of $1.0 million for tenant improvement and construction work under the terms of leases with certain of our tenants. |
Investment_in_Unconsolidated_R
Investment in Unconsolidated Real Estate | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Schedule Of Investments [Abstract] | ' | ||||||||||||||||||||||||
Investment in Unconsolidated Real Estate | ' | ||||||||||||||||||||||||
12 | Investment in Unconsolidated Real Estate | ||||||||||||||||||||||||
We currently manage and hold a 15% equity interest in a joint venture (“the JV”) that indirectly owns three properties located at 3001-3233 Mission Oaks Boulevard in Ventura County. We account for this investment under the equity method of accounting (i.e., at cost, increased or decreased by our share of earnings or losses, less distributions, plus contributions and other adjustments required by equity method accounting, such as basis differences from other-than-temporary impairments, if applicable). The carrying value of our JV investment includes a gross $2.8 million basis adjustment resulting from the contribution of our equity interest as part of the formation transactions that occurred on July 24, 2013. The basis adjustment is being amortized over the estimated useful life of the underlying assets. | |||||||||||||||||||||||||
Our Predecessor owned a 70% interest in a property located at 10439-10477 Roselle Street. This was a tenancy-in-common interest in which control was shared equally with the other 30% tenant-in-common partner. As part of the formation transactions, on July 24, 2013, we acquired the 30% interest not previously owned by us in exchange for 2,828 common units in our Operating Partnership. Before this transaction, this investment was accounted for under the equity method of accounting. | |||||||||||||||||||||||||
The following tables present combined summarized financial information of our equity method investment properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Assets | $ | 63,054,000 | $ | 61,422,000 | |||||||||||||||||||||
Liabilities | (42,834,000 | ) | (42,475,000 | ) | |||||||||||||||||||||
Partners'/members' equity | $ | 20,220,000 | $ | 18,947,000 | |||||||||||||||||||||
Three Months Ended September 30, 2014(1) | Period From July 24, 2013 to September 30, 2013(1) | Period From July 1, 2013 to July 23, 2013(2) | Nine Months Ended September 30, 2014(1) | Period From July 24, 2013 to September 30, 2013(1) | Period From January 1, 2013 to July 23, 2013(2) | ||||||||||||||||||||
Revenues | $ | 2,123,000 | $ | 5,946,000 | $ | 2,270,000 | $ | 5,856,000 | $ | 5,946,000 | $ | 6,516,000 | |||||||||||||
Expenses | (1,920,000 | ) | (5,001,000 | ) | (1,928,000 | ) | (5,283,000 | ) | (5,001,000 | ) | (7,296,000 | ) | |||||||||||||
Net income (loss) | $ | 203,000 | $ | 945,000 | $ | 342,000 | $ | 573,000 | $ | 945,000 | $ | (780,000 | ) | ||||||||||||
(1)Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard. | |||||||||||||||||||||||||
(2)Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St. | |||||||||||||||||||||||||
Our unconsolidated real estate entities incurred management, leasing and development fees, which were payable to us, of $103,000 for the three months ended September 30, 2014, $86,000 for the period from July 24, 2013 to September 30, 2013, $24,000 for the period from July 1, 2013 to July 23, 2013, $291,000 for the nine months ended September 30,2014, and $218,000 for the period from January 1, 2013 to July 23, 2013. | |||||||||||||||||||||||||
We recognized management, leasing and development revenue of $97,000 for the three months ended September 30, 2014, $222,000 for the period from July 24, 2013 to September 30, 2013, $0 for the period from July 1, 2013 to July 23, 2013, $366,000 for the nine months ended September 30, 2014, and $207,000 for the period from January 1, 2013 to July 23, 2013, which has been recorded in management, leasing and development services. | |||||||||||||||||||||||||
Discontinued_Operations_and_Pr
Discontinued Operations and Properties Held for Sale | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||||||||||
Discontinued Operations and Properties Held for Sale | ' | ||||||||||||||||||||||||
13 | Discontinued Operations And Properties Held For Sale | ||||||||||||||||||||||||
Dispositions | |||||||||||||||||||||||||
The table below summarizes the properties sold during the nine months ended September 30, 2014 and 2013. The results of operations and the gain or loss on sale of the property are reported under Discontinued Operations in the Consolidated and Combined Statements of Operations. | |||||||||||||||||||||||||
Address | Location | Date of | Rentable | Sales Price | Debt | Gain (Loss) | |||||||||||||||||||
Disposition | Square Feet | Satisfied (1) | Recorded | ||||||||||||||||||||||
2014 Dispositions: | |||||||||||||||||||||||||
1335 Park Center Drive | Vista, CA | 1/29/14 | 124,997 | $ | 10,103,000 | $ | - | $ | 2,262,000 | ||||||||||||||||
2900 N. Madera Road | Simi Valley, CA | 3/13/14 | 63,305 | $ | 4,350,000 | $ | - | $ | (137,000 | ) | |||||||||||||||
2013 Dispositions: | |||||||||||||||||||||||||
4578 Worth Street | Los Angeles, CA | 1/31/13 | 79,370 | $ | 4,100,000 | $ | 2,500,000 | $ | 2,410,000 | ||||||||||||||||
1950 E. Williams Drive | Oxnard, CA | 4/4/13 | 161,682 | $ | 8,542,000 | $ | 2,993,000 | $ | 415,000 | ||||||||||||||||
9027 Glenoaks Blvd. | Los Angeles, CA | 5/10/13 | 14,700 | $ | 1,727,000 | $ | 1,625,000 | $ | 234,000 | ||||||||||||||||
2515, 2507, 2441 W. Erie Dr. & 2929 S. Fair Lane | Tempe, AZ | 5/28/13 | 83,385 | $ | 5,003,000 | $ | 3,531,000 | $ | 1,015,000 | ||||||||||||||||
1255 Knollwood Circle | Anaheim, CA | 6/14/13 | 25,162 | $ | 2,768,000 | $ | 2,630,000 | $ | 915,000 | ||||||||||||||||
-1 | Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan. | ||||||||||||||||||||||||
On August 29, 2014, we sold our property located at 500-560 Zenith Drive (37,992 square feet) for $1,822,000 and recognized a loss on sale of $150,000. The results of operations and loss on sale for the property sold during the period are reported as part of Net Income (Loss) from Continuing Operations in the Consolidated and Combined Statements of Operations. | |||||||||||||||||||||||||
Discontinued Operations | |||||||||||||||||||||||||
Income from discontinued operations includes the results of operations (prior to disposition) and the gain on sale of real estate attributable to the seven properties in the table above. Their consolidated results of operations for the three and nine months ended September 30, 2014, and the period from July 24, 2013 to September 30, 2013, and combined results of operations for the period from July 1, 2013 to July 23, 2013, and the period from January 1, 2013 to July 23, 2013, are summarized in the table below. | |||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
Revenues | $ | - | $ | 193,000 | $ | 87,000 | $ | 85,000 | $ | 193,000 | $ | 604,000 | |||||||||||||
Operating expenses | - | (36,000 | ) | (10,000 | ) | (57,000 | ) | (36,000 | ) | (312,000 | ) | ||||||||||||||
Interest expense | - | - | (37,000 | ) | - | - | (325,000 | ) | |||||||||||||||||
Depreciation and amortization expense | - | (37,000 | ) | (14,000 | ) | (7,000 | ) | (37,000 | ) | (776,000 | ) | ||||||||||||||
Loss on extinguishment of debt | - | - | (17,000 | ) | - | - | (267,000 | ) | |||||||||||||||||
Gain on sale of real estate | - | - | - | 2,125,000 | - | 4,989,000 | |||||||||||||||||||
Income from discontinued operations | $ | - | $ | 120,000 | $ | 9,000 | $ | 2,146,000 | $ | 120,000 | $ | 3,913,000 | |||||||||||||
Properties Held for Sale | |||||||||||||||||||||||||
As of September 30, 2014, we did not have any properties classified as held for sale. Our properties located at 1335 Park Center Drive, 2900 N. Madera Road and 500-560 Zenith Drive were sold during 2014 and classified as held for sale at December 31, 2013. | |||||||||||||||||||||||||
The major classes of assets and liabilities associated with real estate classified as held for sale are summarized in the table below: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Investment in real estate, net | $ | 12,861,000 | |||||||||||||||||||||||
Other | 1,091,000 | ||||||||||||||||||||||||
Assets associated with real estate held for sale | $ | 13,952,000 | |||||||||||||||||||||||
Mortgage loan | $ | - | |||||||||||||||||||||||
Accounts payable and other liabilities | 596,000 | ||||||||||||||||||||||||
Liabilities associated with real estate held for sale | $ | 596,000 | |||||||||||||||||||||||
Equity
Equity | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
Equity | ' | ||||
14 | Equity | ||||
Common Stock | |||||
On August 19, 2014, we completed a public follow-on offering of 17,250,000 shares of our common stock at a price of $13.50 per share. The net proceeds of the follow-on offering were approximately $221.8 million, after deducting the underwriting discount and offering costs of approximately $11.1 million. On August 19, 2014, we contributed the net proceeds of the offering to our Operating Partnership in exchange for 17,250,000 common units of partnership interests in the Operating Partnership (“OP Units”). | |||||
Noncontrolling Interests | |||||
Noncontrolling interests in our Operating Partnership relate to interests in the partnership that are not owned by us. Noncontrolling interests consisted of 2,646,027 OP Units and represented approximately 5.8% of our Operating Partnership as of September 30, 2014. OP Units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis. | |||||
During the three and nine months ended September 30, 2014, 363,232 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $4.1 million of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders equity. | |||||
2013 Incentive Award Plan | |||||
In July 2013, we established the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which we may make grants of stock options, restricted stock, long term incentive plan units in our Operating Partnership and other stock based and cash awards to our non-employee directors, employees and consultants. The maximum number of shares of our common stock that may be issued or transferred pursuant to the Plan is 2,272,689 shares (of which 2,040,528 shares of common stock remain available for issuance as of September 30, 2014). | |||||
Shares of our restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent or the administrator of the Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions generally expire upon vesting. Shares of our restricted common stock have full voting rights and rights to dividends. During the three and nine months ended September 30, 2014 and the period from July 24, 2013 to September 30, 2013, we recognized net equity compensation expense of $340,000, $791,000 and $382,000, respectively, related to the restricted common stock grants ultimately expected to vest. Equity compensation expense is included in general and administrative and property expenses in the accompanying consolidated statements of operations. Certain amounts of equity compensation expense are capitalized for employees who provide leasing and construction services. During the three and nine months ended September 30, 2014, and the period from July 24, 2013 to September 30, 2013, we capitalized $36,000, $106,000 and $14,000 respectively, related to these employees. | |||||
The following is a table summarizing our unvested restricted stock activity for the three months ended September 30, 2014: | |||||
Number of Unvested Shares of Restricted Common Stock | |||||
Balance at January 1, 2014 | 140,468 | ||||
Granted | 121,357 | ||||
Forfeited | -29,664 | ||||
Vested(1) | -34,020 | ||||
Balance at September 30, 2014 | 198,141 | ||||
-1 | 6,928 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum tax withholding requirements related to the shares of restricted common stock that have vested. We accept the return of shares at the current quoted closing share price of the Company's common stock on the NYSE to satisfy tax obligations. | ||||
The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of September 30, 2014: | |||||
Shares | |||||
October 1, 2014 - December 31, 2014 | - | ||||
2015 | 72,640 | ||||
2016 | 56,542 | ||||
2017 | 53,713 | ||||
2018 | 15,246 | ||||
198,141 | |||||
ASC Topic 718: Compensation - Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We have estimated a forfeiture rate of 5.3% for unvested restricted stock as of September 30, 2014. As of September 30, 2014, there was $1.8 million of total unrecognized compensation expense related to the unvested shares of our restricted common stock assuming the forfeiture rate noted above, of which $0.2 million will be capitalized for employees who provide leasing and construction services. As of September 30, 2014, this expense is expected to be recognized over a weighted average remaining period of 23 months. | |||||
Changes in Accumulated Other Comprehensive Income | |||||
The following table summarizes the changes in our Accumulated Other Comprehensive Income balance for the nine months ended September 30, 2014, which consists solely of adjustments related to our cash flow hedges: | |||||
Accumulated Other | |||||
Comprehensive Income | |||||
Balance at January 1, 2014 | $ | - | |||
Other comprehensive income before reclassifications | 167,000 | ||||
Amounts reclassified from accumulated other comprehensive income to interest expense | - | ||||
Net current period other comprehensive income | 167,000 | ||||
Less other comprehensive income attributable to noncontrolling interests | (9,000 | ) | |||
Other comprehensive income attributable to common stockholders | 158,000 | ||||
Balance at September 30, 2014 | $ | 158,000 | |||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
15 | Earnings Per Share | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Three Months | Nine Months | Period from July 24, 2013 to September 30, 2013 | |||||||||||
Ended September 30, 2014 | Ended September 30, 2014 | ||||||||||||
Numerator: | |||||||||||||
Net income (loss) from continuing operations | $ | (679,000 | ) | $ | (1,315,000 | ) | $ | 175,000 | |||||
Net (income) loss from continuing operations attributable to noncontrolling interests | 80,000 | 127,000 | (23,000 | ) | |||||||||
Income from continuing operations attributable to participating securities | (24,000 | ) | (64,000 | ) | (5,000 | ) | |||||||
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc. | $ | (623,000 | ) | $ | (1,252,000 | ) | $ | 147,000 | |||||
Income from discontinued operations | $ | - | $ | 2,146,000 | $ | 120,000 | |||||||
Income from discontinued operations attributable to noncontrolling interests | - | (207,000 | ) | (16,000 | ) | ||||||||
Income from discontinued operations attributable to participating securities | - | - | (4,000 | ) | |||||||||
Income from discontinued operations attributable to Rexford Industrial Realty, Inc. | $ | - | $ | 1,939,000 | $ | 100,000 | |||||||
Net income (loss) attributable to Rexford Industrial Realty, Inc. and participating securities | $ | (599,000 | ) | $ | 751,000 | $ | 256,000 | ||||||
Net income attributable to participating securities | (24,000 | ) | (64,000 | ) | (9,000 | ) | |||||||
Net income (loss) attributable to Rexford Industrial Realty, Inc. | $ | (623,000 | ) | $ | 687,000 | $ | 247,000 | ||||||
Denominator: | |||||||||||||
Weighted average shares of common stock outstanding - basic and diluted | 33,527,183 | 28,151,818 | 24,574,432 | ||||||||||
Earnings per share - Basic and Diluted: | |||||||||||||
Net income (loss) from continuing operations available to common stockholders | $ | (0.02 | ) | $ | (0.04 | ) | $ | 0.01 | |||||
Net income from discontinued operations available to common stockholders | $ | - | $ | 0.07 | $ | - | |||||||
Net income (loss) available to common stockholders | $ | (0.02 | ) | $ | 0.02 | $ | 0.01 | ||||||
Participating securities include 198,141 and 920,734 shares of unvested restricted stock outstanding at September 30, 2014 and 2013, respectively, which participate in non-forfeitable dividends of the Company. As participating security holders are not obligated to share in losses of the Company, participating securities have been allocated earnings, in proportion to total weighted average shares outstanding, based upon the greater of net income or common dividends declared. | |||||||||||||
The effect of including unvested restricted common stock using the treasury stock method was excluded from our calculation of weighted average shares of common stock outstanding – diluted, as its inclusion would have been antidilutive. As such, the number of weighted average shares of common stock outstanding, both basic and diluted, are the same for the three and nine months ended September 30, 2014 and for the period from July 24, 2013 to September 30, 2013. |
Predecessor_Equity
Predecessor Equity | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Line Items] | ' | ||||
Equity | ' | ||||
14 | Equity | ||||
Common Stock | |||||
On August 19, 2014, we completed a public follow-on offering of 17,250,000 shares of our common stock at a price of $13.50 per share. The net proceeds of the follow-on offering were approximately $221.8 million, after deducting the underwriting discount and offering costs of approximately $11.1 million. On August 19, 2014, we contributed the net proceeds of the offering to our Operating Partnership in exchange for 17,250,000 common units of partnership interests in the Operating Partnership (“OP Units”). | |||||
Noncontrolling Interests | |||||
Noncontrolling interests in our Operating Partnership relate to interests in the partnership that are not owned by us. Noncontrolling interests consisted of 2,646,027 OP Units and represented approximately 5.8% of our Operating Partnership as of September 30, 2014. OP Units and shares of our common stock have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to redeem any or all of their units in our Operating Partnership for an amount of cash per unit equal to the then current market value of one share of common stock, or, at our election, shares of our common stock on a one-for-one basis. | |||||
During the three and nine months ended September 30, 2014, 363,232 OP Units were converted into an equivalent number of shares of common stock, resulting in the reclassification of $4.1 million of noncontrolling interest to Rexford Industrial Realty, Inc.’s stockholders equity. | |||||
2013 Incentive Award Plan | |||||
In July 2013, we established the Rexford Industrial Realty, Inc. and Rexford Industrial Realty, L.P. 2013 Incentive Award Plan (the “Plan”), pursuant to which we may make grants of stock options, restricted stock, long term incentive plan units in our Operating Partnership and other stock based and cash awards to our non-employee directors, employees and consultants. The maximum number of shares of our common stock that may be issued or transferred pursuant to the Plan is 2,272,689 shares (of which 2,040,528 shares of common stock remain available for issuance as of September 30, 2014). | |||||
Shares of our restricted common stock generally may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent or the administrator of the Plan, a domestic relations order, unless and until all restrictions applicable to such shares have lapsed. Such restrictions generally expire upon vesting. Shares of our restricted common stock have full voting rights and rights to dividends. During the three and nine months ended September 30, 2014 and the period from July 24, 2013 to September 30, 2013, we recognized net equity compensation expense of $340,000, $791,000 and $382,000, respectively, related to the restricted common stock grants ultimately expected to vest. Equity compensation expense is included in general and administrative and property expenses in the accompanying consolidated statements of operations. Certain amounts of equity compensation expense are capitalized for employees who provide leasing and construction services. During the three and nine months ended September 30, 2014, and the period from July 24, 2013 to September 30, 2013, we capitalized $36,000, $106,000 and $14,000 respectively, related to these employees. | |||||
The following is a table summarizing our unvested restricted stock activity for the three months ended September 30, 2014: | |||||
Number of Unvested Shares of Restricted Common Stock | |||||
Balance at January 1, 2014 | 140,468 | ||||
Granted | 121,357 | ||||
Forfeited | -29,664 | ||||
Vested(1) | -34,020 | ||||
Balance at September 30, 2014 | 198,141 | ||||
-1 | 6,928 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum tax withholding requirements related to the shares of restricted common stock that have vested. We accept the return of shares at the current quoted closing share price of the Company's common stock on the NYSE to satisfy tax obligations. | ||||
The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of September 30, 2014: | |||||
Shares | |||||
October 1, 2014 - December 31, 2014 | - | ||||
2015 | 72,640 | ||||
2016 | 56,542 | ||||
2017 | 53,713 | ||||
2018 | 15,246 | ||||
198,141 | |||||
ASC Topic 718: Compensation - Stock Compensation, requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. We have estimated a forfeiture rate of 5.3% for unvested restricted stock as of September 30, 2014. As of September 30, 2014, there was $1.8 million of total unrecognized compensation expense related to the unvested shares of our restricted common stock assuming the forfeiture rate noted above, of which $0.2 million will be capitalized for employees who provide leasing and construction services. As of September 30, 2014, this expense is expected to be recognized over a weighted average remaining period of 23 months. | |||||
Changes in Accumulated Other Comprehensive Income | |||||
The following table summarizes the changes in our Accumulated Other Comprehensive Income balance for the nine months ended September 30, 2014, which consists solely of adjustments related to our cash flow hedges: | |||||
Accumulated Other | |||||
Comprehensive Income | |||||
Balance at January 1, 2014 | $ | - | |||
Other comprehensive income before reclassifications | 167,000 | ||||
Amounts reclassified from accumulated other comprehensive income to interest expense | - | ||||
Net current period other comprehensive income | 167,000 | ||||
Less other comprehensive income attributable to noncontrolling interests | (9,000 | ) | |||
Other comprehensive income attributable to common stockholders | 158,000 | ||||
Balance at September 30, 2014 | $ | 158,000 | |||
Predecessor | ' | ||||
Equity [Line Items] | ' | ||||
Equity | ' | ||||
16 | Predecessor Equity | ||||
Controlling interests in our Predecessor include the interests owned by partners of RILLC, and Rexford Sponsor V LLC, and any interests held by their spouses and children (“RILLC and Affiliates”). Noncontrolling interests relate to all other interests not held by RILLC and Affiliates. Noncontrolling interests also includes the 27.76% interest of 10 investors in RIF I—Walnut, LLC, and the 3.23% interest of one investor in RIF IV—Burbank, LLC, both consolidated subsidiaries in our Predecessor’s financial statements during the period from January 1, 2013 to July 23, 2013. | |||||
Equity distributions by our Predecessor Funds are allocated between the general partner and limited partners (collectively “Partners”) in accordance with each fund’s operating agreements. Generally this provides for distributions to be allocated to Partners, pari passu, in accordance with their respective percentage interests. After Partners have exceeded certain cash distribution thresholds, as defined in each Predecessor Fund’s operating agreement, then the general partner may receive incentive promote cash distributions commensurate with the cash return performance hurdles also detailed in the Predecessor Fund’s operating agreement. Each fund’s operating agreement generally provides for income, expenses, gains and losses to be allocated in a manner consistent with cash distributions described above. | |||||
During November and December 2012, our predecessor granted to its employees a 9.0% equity interest in Rexford Fund V Manager, LLC’s (“Fund V Manager”) profits interest in RIF V. An additional 2.0% equity interest was granted in January 2013. Fund V Manager is the controlling member of RIF V and is a wholly-owned subsidiary of Sponsor. The fair value of these interests was estimated to be approximately $1.0 million at the time they were granted. The equity interests are considered performance-based equity interests and are subject to graded vesting over the shorter of a 7-year period or the dissolution date of Fund V Manager. On July 24, 2013, the day we consummated our IPO, Fund V Manager was dissolved. | |||||
Our Predecessor expensed $899,000 and $985,000 during the period from July 1, 2013 to July 23, 2013 and the period from January 1, 2013 to July 23, 2013, respectively, related to these equity awards. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
17 | Subsequent Events | |
On October 1, 2014, we repaid the $5.0 million outstanding balance on our loan secured by the property located at 10700 Jersey Boulevard. We repaid the balance using available cash on hand and did not incur any prepayment penalties for repaying in advance of the maturity date of January 1, 2015. | ||
On October 23, 2014, 59,282 shares of restricted common stock were granted to each of our named executive officers (Messrs. Frankel and Schwimmer). These shares will vest 25%, 25% and 50% on each of the first, second and third anniversaries of the date of grant. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include all cash and liquid investments with an initial maturity of three months or less. The carrying amount approximates fair value due to the short term maturity of these investments. | |
Discontinued Operations | ' |
Discontinued Operations | |
On April 14, 2014, the FASB issued ASU 2014-08: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”). Under ASU 2014-08, only disposals that represent a strategic shift that has (or will have) a major effect on the entity’s results and operations would qualify as discontinued operations. ASU 2014-08 further expands the disclosure requirements for disposals that meet the definition of a discontinued operation, and requires entities to disclose information about disposals of individually significant components. ASU 2014-08 will be applied prospectively and is effective for annual periods and interim periods within those years, beginning after December 15, 2014 with early adoption permitted. We elected to adopt ASU 2014-08 early, beginning in the fiscal quarter ended September 30, 2014. The adoption of ASU 2014-08 will likely result in fewer property sales being classified as discontinued operations. | |
For assets held for sale or sold prior to the adoption of ASU 2014-08, the revenue, expenses, impairment and/or gain on sale of operating properties that meet the applicable criteria are reported as discontinued operations in the consolidated and combined statements of operations for all periods presented. A gain on sale, if any, is recognized in the period during which the property is disposed. In addition, all amounts for all prior periods presented are reclassified from continuing operations to discontinued operations. | |
In determining whether to report the results of operations, impairment and/or gain on sale of operating properties as discontinued operations, we evaluate whether we have any significant continuing involvement in the operations, leasing or management of the property after disposition. If we determine that we have significant continuing involvement after disposition, we report the revenue, expenses, impairment and/or gain on sale as part of continuing operations. See Note 13. | |
Held for Sale Assets | ' |
Held for Sale Assets | |
We classify properties as held for sale when certain criteria set forth in the Long-Lived Assets Classified as Held for Sale Subsections of ASC Topic 360: Property, Plant, and Equipment, are met. At that time, the assets and liabilities of the property held for sale are presented separately in the consolidated balance sheets, which includes the reclassification of the assets and liabilities for all comparative periods. In addition, we cease recording depreciation and amortization expense at the time a property is classified as held for sale. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. See Note 13. | |
Investment in Real Estate | ' |
Investment in Real Estate | |
Acquisitions | |
When we acquire operating properties, with the intention to hold the investment for the long-term, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component. The components typically include land, building and improvements, intangible assets related to above and below market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial allocation of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price allocation are made within the allocation period, which typically does not exceed one year. | |
We allocate the purchase price to the fair value of the tangible assets by valuing the property as if it were vacant. We consider Level 3 inputs, which are unobservable inputs based on the Company’s assumptions about the assumptions a market participant would use, such as the replacement cost of such assets, appraisals, property condition reports, comparable market rental data and other related information. | |
In determining the fair value of intangible lease assets or liabilities, we also consider Level 3 inputs. Acquired above and below market leases are valued based on the present value of the difference between prevailing market rates and the in-place rates measured over a period equal to the remaining term of the lease for above market leases and the initial term plus the term of any below market fixed rate renewal options for below market leases, if applicable. The estimated fair value of acquired in-place at-market tenant leases are the costs that would have been incurred to lease the property to the occupancy level of the property at the date of acquisition. Such estimates include the value associated with leasing commissions, legal and other costs, as well as the estimated period necessary to lease such property, that would be incurred to lease the property to its occupancy level at the time of its acquisition. Acquisition costs associated with the business combination are expensed in the period they are incurred. | |
The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to “interest expense” over the life of the debt assumed. The valuation of assumed liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. | |
For acquisitions that do not meet the accounting criteria to be accounted for as a business combination, we record to land and building the purchase price paid and capitalize the associated acquisition costs. | |
Capitalization of Costs | |
We capitalize costs incurred in developing, renovating, rehabilitating, and improving real estate assets as part of the investment basis. Costs incurred in making repairs and maintaining real estate assets are expensed as incurred. During the land development and construction periods, we capitalize insurance, real estate taxes and certain general and administrative costs of the personnel performing development, renovations, and rehabilitation if such costs are incremental and identifiable to a specific activity to get the asset ready for its intended use. Capitalized costs are included in the investment basis of real estate assets. | |
Depreciation and Amortization | |
Real estate, including land, building and land improvements, tenant improvements, and furniture, fixtures and equipment, leasing costs and intangible lease assets and liabilities are stated at historical cost less accumulated depreciation and amortization, unless circumstances indicate that the cost cannot be recovered, in which case, the carrying value of the property is reduced to estimated fair value as discussed below in our policy with regards to impairment of long-lived assets. We estimate the depreciable portion of our real estate assets and related useful lives in order to record depreciation expense. Our ability to estimate the depreciable portions of our real estate assets and useful lives is critical to the determination of the appropriate amount of depreciation and amortization expense recorded and the carrying value of the underlying assets. Any change to the assets to be depreciated and the estimated depreciable lives of these assets would have an impact on the depreciation expense recognized. | |
The values allocated to buildings, site improvements, in-place leases, tenant improvements and leasing costs are depreciated on a straight-line basis using an estimated remaining life of 10-30 years for buildings, 20 years for site improvements, and the shorter of the estimated useful life or respective lease term for tenant improvements. | |
As discussed above, in connection with property acquisitions, we may acquire leases with rental rates above or below the market rental rates. Such differences are recorded as an intangible lease asset or liability and amortized to “rental revenues” over the reasonably assured term of the related leases. The unamortized balances of these assets and liabilities associated with the early termination of leases are fully amortized to their respective revenue line items in our consolidated financial statements over the shorter of the expected life of such assets and liabilities or the remaining lease term. | |
Our estimate of the useful life of our assets is evaluated upon acquisition and when circumstances indicate a change in the useful life, which requires significant judgment regarding the economic obsolescence of tangible and intangible assets. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
In accordance with the provisions of the Impairment or Disposal of Long-Lived Assets Subsections of ASC Topic 360: Property, Plant, and Equipment, we assess the carrying values of our respective long-lived assets, including goodwill, whenever events or changes in circumstances indicate that the carrying amounts of these assets may not be fully recoverable. | |
Recoverability of real estate assets is measured by comparison of the carrying amount of the asset to the estimated future undiscounted cash flows. In order to review real estate assets for recoverability, we consider current market conditions, as well as our intent with respect to holding or disposing of the asset. The intent with regard to the underlying assets might change as market conditions change, as well as other factors. Fair value is determined through various valuation techniques; including discounted cash flow models, applying a capitalization rate to estimated net operating income of a property, quoted market values and third party appraisals, where considered necessary. The use of projected future cash flows is based on assumptions that are consistent with estimates of future expectations and the strategic plan used to manage our underlying business. If our analysis indicates that the carrying value of the real estate asset is not recoverable on an undiscounted cash flow basis, we will recognize an impairment charge for the amount by which the carrying value exceeds the current estimated fair value of the real estate property. | |
Assumptions and estimates used in the recoverability analyses for future cash flows, discount rates and capitalization rates are complex and subjective. Changes in economic and operating conditions or our intent with regard to our investment that occur subsequent to our impairment analyses could impact these assumptions and result in future impairment of our real estate properties. | |
At September 30, 2014 and December 31, 2013, our investment in real estate has been recorded net of a cumulative impairment of $18.6 million as of the end of both periods. | |
Acquired Indefinite-Lived Intangibles | ' |
Acquired Indefinite-Lived Intangibles | |
Acquired indefinite-lived intangibles represent the fair value of the management contracts in-place at the time of the contribution of Sponsor, RIF V REIT and their consolidated subsidiaries to the Operating Partnership as part of our formation transactions. The asset has an indefinite life, and, accordingly, is not amortized. | |
Income Taxes | ' |
Income Taxes | |
We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with our initial taxable year ended December 31, 2013. To qualify as a REIT, we are required (among other things) to distribute at least 90% of our REIT taxable income to our stockholders and meet the various other requirements imposed by the Code relating to matters such as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. If we fail to qualify as a REIT in any taxable year, and were unable to avail ourselves of certain savings provisions set forth in the Code, all of our taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. | |
In addition, we are subject to taxation by various state and local jurisdictions, including those in which we transact business or reside. Our non-taxable REIT subsidiaries, including our Operating Partnership, are either partnerships or disregarded entities for federal income tax purposes. Under applicable federal and state income tax rules, the allocated share of net income or loss from disregarded entities (including limited partnerships and S-Corporations) is reportable in the income tax returns of the respective partners and stockholders. Accordingly, no income tax provision is included in the accompanying consolidated financial statements for the three and nine months ended September 30, 2014 and for the period from July 24, 2013 through September 30, 2013. | |
Each of RIF I, RIF II, RIF III and RIF IV are limited liability companies but have elected to be taxed as a partnership for tax purposes. As such, the allocated share of net income or loss from the limited liability companies is reportable in the income tax returns of the respective partners and investors. Accordingly, no income tax provision is included in the accompanying combined financial statements. | |
RIF V REIT has elected to be taxed as a REIT under the Code, commencing with its tax period ended December 31, 2010. We believe that RIF V REIT met all of the REIT distribution and technical requirements for the period from July 1, 2013 to July 23, 2013 and the period from January 1, 2013 to July 23, 2013, and accordingly, has not recognized any provision for income taxes. | |
We periodically evaluate our tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of September 30, 2014 and December 31, 2013, we have not established a liability for uncertain tax positions. | |
Derivative Instruments and Hedging Activities | ' |
Derivative Instruments and Hedging Activities | |
FASB ASC Topic 815: Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. | |
As required by ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, and whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or we elect not to apply hedge accounting. See Note 8. | |
Revenue Recognition | ' |
Revenue Recognition | |
We recognize revenue from rent, tenant reimbursements and other revenue sources once all of the following criteria are met: persuasive evidence of an arrangement exists, the delivery has occurred or services rendered, the fee is fixed and determinable and collectability is reasonably assured. Minimum annual rental revenues are recognized in rental revenues on a straight-line basis over the term of the related lease. Rental revenue recognition commences when the tenant takes possession or controls the physical use of the leased space. | |
Estimated reimbursements from tenants for real estate taxes, common area maintenance and other recoverable operating expenses are recognized as revenues in the period that the expenses are incurred. Subsequent to year-end, we perform final reconciliations on a lease-by-lease basis and bill or credit each tenant for any cumulative annual adjustments. Lease termination fees, which are included in rental revenues in the accompanying consolidated and combined statements of operations, are recognized when the related lease is canceled and we have no continuing obligation to provide services to such former tenant. | |
Revenues from management, leasing and development services are recognized when the related services have been provided and earned. | |
The recognition of gains on sales of real estate requires us to measure the timing of a sale against various criteria related to the terms of the transaction, as well as any continuing involvement in the form of management or financial assistance associated with the property. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, profit-sharing or leasing method. If the sales criteria have been met, we further analyze whether profit recognition is appropriate using the full accrual method. If the criteria to recognize profit using the full accrual method have not been met, we defer the gain and recognize it when the criteria are met or use the installment or cost recovery method as appropriate under the circumstances. See Note 13 for discussion of dispositions. | |
Valuation of Receivables | ' |
Valuation of Receivables | |
We are subject to tenant defaults and bankruptcies that could affect the collection of outstanding receivables. In order to mitigate these risks, we perform credit reviews and analyses on prospective tenants before significant leases are executed and on existing tenants before properties are acquired. We specifically analyze aged receivables, customer credit-worthiness, historical bad debts and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. As a result of our periodic analysis, we maintain an allowance for estimated losses that may result from the inability of our tenants to make required payments. This estimate requires significant judgment related to the lessees’ ability to fulfill their obligations under the leases. We believe our allowance for doubtful accounts is adequate for our outstanding receivables for the periods presented. If a tenant is insolvent or files for bankruptcy protection and fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the net outstanding balances, which include amounts recognized as straight-line revenue not realizable until future periods. We had a $0.9 million and $0.5 million reserve for allowance for doubtful accounts as of September 30, 2014 and December 31, 2013, respectively. | |
Equity Based Compensation | ' |
Equity Based Compensation | |
We account for equity-based compensation, including shares of restricted stock, in accordance with ASC Topic 718 Compensation – Stock Compensation, which requires us to recognize an expense for the fair value of equity-based compensation awards. The estimated fair value of shares of restricted stock are amortized over their respective vesting periods. See Note 14. | |
Earnings Per Share | ' |
Earnings Per Share | |
We calculate earnings per share (“EPS”) in accordance with ASC 260 – Earnings Per Share (“ASC 260”). Under ASC 260, shares of unrestricted stock that contain non-forfeitable rights to dividends are participating securities and, therefore, are included in computing basic EPS pursuant to the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends declared (or accumulated) and their respective participation rights in undistributed earnings. | |
Basic EPS is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted EPS is computed using the weighted average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities, including the dilutive effect of unvested restricted common stock using the treasury stock method. See Note 15. | |
Segment Reporting | ' |
Segment Reporting | |
Management views the Company as a single reportable segment based on its method of internal reporting in addition to its allocation of capital and resources. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
Changes to GAAP are established by the FASB in the form of ASUs to the FASB’s Accounting Standards Codification. We consider the applicability and impact of all ASUs. | |
On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 establishes principles for reporting the nature, amount, timing and uncertainty of revenues and cash flows arising from an entity's contracts with customers. The core principle of the new standard is that an entity recognizes revenue to represent the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This standard is effective for us in the first quarter of 2017 and will replace most existing revenue recognition guidance within GAAP. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating ASU 2014-09 to determine its impact on our consolidated financial statements and related disclosures, as well as the transition method to apply the new standard. | |
Investments_in_Real_Estate_Tab
Investments in Real Estate (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||||||||||||
Investments All Other Investments [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||||||||||||||||||||||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. | |||||||||||||||||||||||||||||||||||
Real estate assets: | Acquisition-related intangibles | ||||||||||||||||||||||||||||||||||
Address | Acquisition Date | Land | Buildings and | In-place Lease | Net Above (Below) | Total Purchase | Other Assets | Notes Payable, | Net Assets | ||||||||||||||||||||||||||
Improvements | Intangibles (1) | Market Lease | Price | Accounts Payable, | Acquired | ||||||||||||||||||||||||||||||
Intangibles (2) | Accrued Expenses | ||||||||||||||||||||||||||||||||||
and Tenant | |||||||||||||||||||||||||||||||||||
Security Deposits | |||||||||||||||||||||||||||||||||||
2014 Acquisitions | |||||||||||||||||||||||||||||||||||
7110 Rosecrans Avenue(3) | 1/15/14 | $ | 3,117,000 | $ | 1,894,000 | $ | - | $ | - | $ | 5,011,000 | $ | - | $ | (321,000 | ) | $ | 4,690,000 | |||||||||||||||||
14723-14825 Oxnard Street | 1/22/14 | $ | 4,458,000 | $ | 3,948,000 | $ | 490,000 | $ | (21,000 | ) | $ | 8,875,000 | $ | - | $ | (117,000 | ) | $ | 8,758,000 | ||||||||||||||||
845, 855, & 865 Milliken Avenue and 4317 & 4319 Santa Ana Street | 2/12/14 | $ | 2,260,000 | $ | 6,043,000 | $ | 431,000 | $ | (184,000 | ) | $ | 8,550,000 | $ | 2,000 | $ | (116,000 | ) | $ | 8,436,000 | ||||||||||||||||
1500-1510 West 228th Street(4) | 2/25/14 | $ | 2,428,000 | $ | 4,271,000 | $ | 205,000 | $ | (304,000 | ) | $ | 6,600,000 | $ | 1,180,000 | $ | (1,214,000 | ) | $ | 6,566,000 | ||||||||||||||||
24105 & 24201 Frampton Avenue | 3/20/14 | $ | 2,315,000 | $ | 1,553,000 | $ | 62,000 | $ | - | $ | 3,930,000 | $ | 22,000 | $ | (64,000 | ) | $ | 3,888,000 | |||||||||||||||||
1700 Saturn Way | 4/17/14 | $ | 7,935,000 | $ | 10,525,000 | $ | 2,259,000 | $ | 381,000 | $ | 21,100,000 | $ | 76,000 | $ | (73,000 | ) | $ | 21,103,000 | |||||||||||||||||
20531 Crescent Bay Drive | 5/30/14 | $ | 2,181,000 | $ | 4,012,000 | $ | 389,000 | $ | (102,000 | ) | $ | 6,480,000 | $ | 4,000 | $ | (2,000 | ) | $ | 6,482,000 | ||||||||||||||||
2980 & 2990 N. San Fernando Blvd.(5) | 5/30/14 | $ | 6,373,000 | $ | 7,356,000 | $ | 1,276,000 | $ | 728,000 | $ | 15,733,000 | $ | - | $ | (10,572,000 | ) | $ | 5,161,000 | |||||||||||||||||
2610 & 2701 S. Birch Street(6) | 6/5/14 | $ | 9,305,000 | $ | 2,114,000 | $ | - | $ | - | $ | 11,419,000 | $ | 5,000 | $ | (299,000 | ) | $ | 11,125,000 | |||||||||||||||||
4051 Santa Ana St. & 701 Dupont Ave. | 6/24/14 | $ | 3,725,000 | $ | 6,145,000 | $ | 524,000 | $ | (194,000 | ) | $ | 10,200,000 | $ | 1,000 | $ | (90,000 | ) | $ | 10,111,000 | ||||||||||||||||
9755 Distribution Avenue | 6/27/14 | $ | 1,863,000 | $ | 3,211,000 | $ | 451,000 | $ | (100,000 | ) | $ | 5,425,000 | $ | 2,000 | $ | (97,000 | ) | $ | 5,330,000 | ||||||||||||||||
9855 Distribution Avenue | 6/27/14 | $ | 2,733,000 | $ | 5,041,000 | $ | 621,000 | $ | 130,000 | $ | 8,525,000 | $ | 5,000 | $ | (39,000 | ) | $ | 8,491,000 | |||||||||||||||||
9340 Cabot Drive | 6/27/14 | $ | 4,311,000 | $ | 6,126,000 | $ | 538,000 | $ | - | $ | 10,975,000 | $ | 2,000 | $ | (54,000 | ) | $ | 10,923,000 | |||||||||||||||||
9404 Cabot Drive | 6/27/14 | $ | 2,413,000 | $ | 3,451,000 | $ | 346,000 | $ | 190,000 | $ | 6,400,000 | $ | 1,000 | $ | (6,000 | ) | $ | 6,395,000 | |||||||||||||||||
9455 Cabot Drive | 6/27/14 | $ | 4,423,000 | $ | 6,799,000 | $ | 851,000 | $ | 27,000 | $ | 12,100,000 | $ | 1,000 | $ | (13,000 | ) | $ | 12,088,000 | |||||||||||||||||
14955-14971 E. Salt Lake City | 6/27/14 | $ | 5,126,000 | $ | 5,009,000 | $ | 800,000 | $ | (85,000 | ) | $ | 10,850,000 | $ | 3,000 | $ | (119,000 | ) | $ | 10,734,000 | ||||||||||||||||
5235 E. Hunter Avenue | 6/27/14 | $ | 5,240,000 | $ | 5,065,000 | $ | 866,000 | $ | 158,000 | $ | 11,329,000 | $ | 15,000 | $ | (76,000 | ) | $ | 11,268,000 | |||||||||||||||||
3880 W. Valley Blvd. | 6/27/14 | $ | 3,982,000 | $ | 4,796,000 | $ | 566,000 | $ | 287,000 | $ | 9,631,000 | $ | 1,000 | $ | (119,000 | ) | $ | 9,513,000 | |||||||||||||||||
1601 Alton Parkway | 6/27/14 | $ | 7,638,000 | $ | 4,946,000 | $ | 419,000 | $ | 273,000 | $ | 13,276,000 | $ | 1,000 | $ | (52,000 | ) | $ | 13,225,000 | |||||||||||||||||
3116 West Avenue 32(7) | 7/8/14 | $ | 3,761,000 | $ | 6,730,000 | $ | 503,000 | $ | 61,000 | $ | 11,055,000 | $ | - | $ | (121,000 | ) | $ | 10,934,000 | |||||||||||||||||
21026-21040 Nordhoff Street, 9035 Independence Avenue, & 21019, 21021, 21025, 21029, 21045-21051 Osborne Street | 7/23/14 | $ | 7,229,000 | $ | 9,058,000 | $ | 650,000 | $ | (137,000 | ) | $ | 16,800,000 | $ | 1,000 | $ | (164,000 | ) | $ | 16,637,000 | ||||||||||||||||
24935 & 24955 Avenue Kearny | 7/25/14 | $ | 4,773,000 | $ | 5,970,000 | $ | 767,000 | $ | - | $ | 11,510,000 | $ | - | $ | (95,000 | ) | $ | 11,415,000 | |||||||||||||||||
605 8th St.(8) | 8/26/14 | $ | 2,393,000 | $ | 2,742,000 | $ | - | $ | - | $ | 5,135,000 | $ | - | $ | (88,000 | ) | $ | 5,047,000 | |||||||||||||||||
9120 Mason Avenue & 20355 Corisco Street | 9/12/14 | $ | 9,224,000 | $ | 19,346,000 | $ | 1,620,000 | $ | 310,000 | $ | 30,500,000 | $ | - | $ | (348,000 | ) | $ | 30,152,000 | |||||||||||||||||
Total | $ | 109,206,000 | $ | 136,151,000 | $ | 14,634,000 | $ | 1,418,000 | $ | 261,409,000 | $ | 1,322,000 | $ | (14,259,000 | ) | $ | 248,472,000 | ||||||||||||||||||
2013 Acquisitions: | |||||||||||||||||||||||||||||||||||
8101-8117 Orion Avenue | 7/30/13 | $ | 1,389,000 | $ | 3,872,000 | $ | 327,000 | $ | 12,000 | $ | 5,600,000 | $ | 19,000 | $ | (55,000 | ) | $ | 5,564,000 | |||||||||||||||||
18310-18330 Oxnard Street | 8/7/13 | $ | 2,498,000 | $ | 5,493,000 | $ | 435,000 | $ | (1,000 | ) | $ | 8,425,000 | $ | 4,000 | $ | (69,000 | ) | $ | 8,360,000 | ||||||||||||||||
$ | 3,887,000 | $ | 9,365,000 | $ | 762,000 | $ | 11,000 | $ | 14,025,000 | $ | 23,000 | $ | (124,000 | ) | $ | 13,924,000 | |||||||||||||||||||
2013 Predecessor Acquisitions: | |||||||||||||||||||||||||||||||||||
18118-18120 S. Broadway | 4/4/13 | $ | 3,013,000 | $ | 2,161,000 | $ | 274,000 | $ | - | $ | 5,448,000 | $ | 16,000 | $ | (57,000 | ) | $ | 5,407,000 | |||||||||||||||||
8900-8980 Benson Ave., 5637 Arrow Highway | 4/9/13 | $ | 1,817,000 | $ | 4,590,000 | $ | 552,000 | $ | 191,000 | $ | 7,150,000 | $ | 20,000 | $ | (104,000 | ) | $ | 7,066,000 | |||||||||||||||||
3350 Tyburn St., 3332, 3334, 3360, 3368, 3370, 3378, 3380, 3410, 3424 N. San Fernando Rd. | 4/17/13 | $ | 26,423,000 | $ | 25,795,000 | $ | 2,568,000 | $ | 1,414,000 | $ | 56,200,000 | $ | 168,000 | $ | (500,000 | ) | $ | 55,868,000 | |||||||||||||||||
1661 240th St. | 5/31/13 | $ | 3,464,000 | $ | 1,498,000 | $ | 38,000 | $ | - | $ | 5,000,000 | $ | 8,000 | $ | (17,000 | ) | $ | 4,991,000 | |||||||||||||||||
$ | 34,717,000 | $ | 34,044,000 | $ | 3,432,000 | $ | 1,605,000 | $ | 73,798,000 | $ | 212,000 | $ | (678,000 | ) | $ | 73,332,000 | |||||||||||||||||||
-1 | The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 3.4 years as of September 30, 2014. | ||||||||||||||||||||||||||||||||||
-2 | The weighted average amortization period of net above (below) market leases for our 2014 acquisitions was 3.5 years as of September 30, 2014. | ||||||||||||||||||||||||||||||||||
-3 | As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation includes $42,000 of capitalized acquisition costs. | ||||||||||||||||||||||||||||||||||
-4 | As part of the acquisition of 1500-1510 West 228th Street, we recorded a contingent liability in the amount of $1.2 million, related to the estimated cost to remediate potential environmental liabilities that existed at the acquisition date. Additionally, we recorded an indemnification asset for the same amount as the seller has placed $1.3 million into an escrow account to be used by us toward the payment of these remediation costs. See Note 11. | ||||||||||||||||||||||||||||||||||
-5 | In connection with the acquisition of 2980 and 2990 N. San Fernando Blvd. acquisition, we assumed debt with an outstanding principal balance of $10.3 million and an initial fair value premium of $308,000. | ||||||||||||||||||||||||||||||||||
-6 | As the purchase of 2610 and 2701 S. Birch Street was accounted for as an asset acquisition, the total purchase price allocation includes $121,000 of capitalized acquisition costs. Additionally, as part of the purchase price allocation, $299,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the six-months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||
-7 | The purchase price allocation for the acquisition of 3116 West Avenue 32 includes $54,000 in deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||
Proforma Financial Information | ' | ||||||||||||||||||||||||||||||||||
The following table summarizes the combined results from operations of our 2014 acquisitions since the acquisition date, included in the consolidated income statement for the following period: | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||
Revenues | $ | 4,310,000 | $ | 6,004,000 | |||||||||||||||||||||||||||||||
Net Income | $ | 161,000 | $ | 420,000 | |||||||||||||||||||||||||||||||
The following table presents unaudited pro-forma financial information as if the closing of our 2014 acquisitions had occurred on January 1, 2013. These unaudited pro-forma results have been prepared for comparative purposes only and include certain adjustments, such as increased depreciation and amortization expenses as a result of tangible and intangible assets acquired in the acquisitions, and increased interest expense for borrowings associated with our 2014 acquisitions. These unaudited pro-forma results do not purport to be indicative of what operating results would have been had the acquisitions actually occurred on January 1, 2013 and may not be indicative of future operating results. | |||||||||||||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||||||||||||
Revenues | $ | 18,717,000 | $ | 12,695,000 | $ | 3,972,000 | $ | 55,420,000 | $ | 12,695,000 | $ | 33,732,000 | |||||||||||||||||||||||
Net operating income | $ | 13,264,000 | $ | 8,788,000 | $ | 2,904,000 | $ | 38,995,000 | $ | 8,788,000 | $ | 23,979,000 | |||||||||||||||||||||||
Net income | $ | 549,000 | $ | 115,000 | $ | (5,928,000 | ) | $ | 3,191,000 | $ | 115,000 | $ | (6,671,000 | ) | |||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Acquired Lease Intangible Assets and Liabilities | ' | ||||||||||||||||||||||||
The following table summarizes our acquired lease intangible assets, including the value of in-place leases and above-market tenant leases, and our acquired lease intangible liabilities, including below-market tenant leases and above-market ground leases as follows: | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Acquired Lease Intangible Assets: | |||||||||||||||||||||||||
In-place lease intangibles | $ | 30,475,000 | $ | 16,112,000 | |||||||||||||||||||||
Accumulated amortization | (10,391,000 | ) | (4,201,000 | ) | |||||||||||||||||||||
In-place lease intangibles, net | 20,084,000 | 11,911,000 | |||||||||||||||||||||||
Above-market tenant leases | 4,458,000 | 1,881,000 | |||||||||||||||||||||||
Accumulated amortization | (984,000 | ) | (284,000 | ) | |||||||||||||||||||||
Above-market tenant leases, net | 3,474,000 | 1,597,000 | |||||||||||||||||||||||
Acquired lease intangible assets, net | $ | 23,558,000 | $ | 13,508,000 | |||||||||||||||||||||
Acquired Lease Intangible Liabilities: | |||||||||||||||||||||||||
Below-market tenant leases | (2,191,000 | ) | (1,055,000 | ) | |||||||||||||||||||||
Accumulated accretion | 523,000 | 189,000 | |||||||||||||||||||||||
Below-market tenant leases, net | (1,668,000 | ) | (866,000 | ) | |||||||||||||||||||||
Above-market ground lease | (290,000 | ) | (290,000 | ) | |||||||||||||||||||||
Accumulated accretion | 37,000 | 13,000 | |||||||||||||||||||||||
Above-market ground lease, net | (253,000 | ) | (277,000 | ) | |||||||||||||||||||||
Acquired lease intangible liabilities, net | $ | (1,921,000 | ) | $ | (1,143,000 | ) | |||||||||||||||||||
Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles | ' | ||||||||||||||||||||||||
The following table summarizes the amortization related to our acquired lease intangible assets and liabilities for the reported periods noted below: | |||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
In-place lease intangibles(1) | $ | 2,641,000 | $ | 1,084,000 | $ | 174,000 | $ | 6,552,000 | $ | 1,084,000 | $ | 1,238,000 | |||||||||||||
Above-market tenant leases(2) | $ | 340,000 | $ | 152,000 | $ | 49,000 | $ | 700,000 | $ | 152,000 | $ | 258,000 | |||||||||||||
Below-market tenant leases(3) | $ | (182,000 | ) | $ | (31,000 | ) | $ | (5,000 | ) | $ | (371,000 | ) | $ | (31,000 | ) | $ | (19,000 | ) | |||||||
Above-market ground lease(4) | $ | (8,000 | ) | $ | - | $ | - | $ | (24,000 | ) | $ | - | $ | - | |||||||||||
-1 | The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-2 | The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-3 | The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
-4 | The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||
Notes_Receivable_Tables
Notes Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Receivables [Abstract] | ' | ||||||||
Summary of Notes Receivable | ' | ||||||||
The following table summarizes the balance of our notes receivable: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
Face Amount | $ | 13,965,000 | $ | 14,161,000 | |||||
Unrecognized Accretable Yield | (827,000 | ) | (1,022,000 | ) | |||||
Note Receivable(1) | $ | 13,138,000 | $ | 13,139,000 | |||||
-1 | This is a mortgage loan secured by 32401-32803 Calle Perfecto. |
Notes_Payable_Tables
Notes Payable (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Summary of Notes Payable | ' | |||||||||||||||
The following table summarizes our notes payable: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | Contractual | Interest Rate | |||||||||||||
Maturity Date | ||||||||||||||||
Fixed Rate Debt | ||||||||||||||||
RIF V - Jersey, LLC | $ | 5,058,000 | -1 | $ | 5,189,000 | -1 | 1/1/15 | 5.45 | % | -2 | ||||||
The Park | 3,089,000 | -3 | 3,177,000 | -3 | 3/1/31 | 5.125 | % | -4 | ||||||||
2980 San Fernando | 10,414,000 | -5 | - | 7/1/15 | 5.088 | % | -2 | |||||||||
Variable Rate Debt | ||||||||||||||||
RIF V - Glendale Commerce Center, LLC | 42,750,000 | 42,750,000 | 5/1/16 | -6 | LIBOR + 2.00% | |||||||||||
Term Loan (7) | 60,000,000 | 60,000,000 | 8/1/19 | -10 | LIBOR + 1.90% | |||||||||||
Term Loan(8) | 48,500,000 | - | 6/24/17 | -9 | LIBOR + 1.55% | |||||||||||
$100M Term Loan Facility | 100,000,000 | - | 6/11/19 | LIBOR + 1.35% | ||||||||||||
Unsecured Credit Facility | ||||||||||||||||
$200M Revolving Facility | - | 81,375,000 | 6/11/18 | -10 | LIBOR + 1.40% | -11 | ||||||||||
Total | $ | 269,811,000 | $ | 192,491,000 | ||||||||||||
-1 | Includes unamortized debt premium of $12,000 at September 30, 2014 and $50,000 at December 31, 2013. | |||||||||||||||
-2 | Monthly payments of interest and principal based on 30-year amortization table. | |||||||||||||||
-3 | Includes unamortized debt discount of $115,000 at September 30, 2014 and $118,000 at December 31, 2013. | |||||||||||||||
-4 | Monthly payments of interest and principal based on 20-year amortization table. | |||||||||||||||
-5 | Includes unamortized debt premium of $215,000 at September 30, 2014. | |||||||||||||||
-6 | Two additional one year extensions available at the borrower’s option. | |||||||||||||||
-7 | Loan is secured by six properties. | |||||||||||||||
-8 | Loan is secured by eight properties. | |||||||||||||||
-9 | One additional two-year extension available at the borrower’s option. | |||||||||||||||
-10 | One additional one-year extension available at the borrower’s option. | |||||||||||||||
-11 | The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the revolver, if the balance is under $100 million or over $100 million, respectively. | |||||||||||||||
Summary of Aggregate Future Minimum Payments of Debt | ' | |||||||||||||||
October 1, 2014 - December 31, 2014 | $ | 110,000 | ||||||||||||||
2015 | 15,294,000 | |||||||||||||||
2016 | 42,885,000 | |||||||||||||||
2017 | 48,642,000 | |||||||||||||||
2018 | 150,000 | |||||||||||||||
Thereafter | 162,618,000 | |||||||||||||||
Total (1) | $ | 269,699,000 | ||||||||||||||
-1 | Includes gross principal balance of outstanding debt before impact of the $112,000 net debt premium. |
Operating_Leases_Tables
Operating Leases (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases Operating [Abstract] | ' | ||||
Future Minimum Base Rent Under Noncancelable Operating Leases | ' | ||||
Future minimum base rent under operating leases as of September 30, 2014 is summarized as follows: | |||||
Twelve months ending September 30: | |||||
2015 | $ | 57,703,000 | |||
2016 | 45,147,000 | ||||
2017 | 30,232,000 | ||||
2018 | 20,722,000 | ||||
2019 | 15,429,000 | ||||
Thereafter | 25,722,000 | ||||
Total | $ | 194,955,000 | |||
Interest_Rate_Contracts_Tables
Interest Rate Contracts (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Summary of Interest Rate Swap Agreement | ' | ||||||||||||||||||||||||
The following table presents a summary of our derivative instruments designated as hedging instruments. We record all derivative instruments on a gross basis in the consolidated balance sheets, and accordingly, there are no offsetting amounts that net assets against liabilities. | |||||||||||||||||||||||||
Fair Value | Notional Amount in Effect as of | ||||||||||||||||||||||||
Derivative Instrument | Effective Date | Maturity Date | Interest Strike Rate | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Interest Rate Swap(1) | 8/14/15 | 12/14/18 | 1.79 | % | $ | 209,000 | $ | - | $ | - | $ | - | |||||||||||||
Interest Rate Swap(1) | 2/16/16 | 12/14/18 | 2.005 | % | $ | 187,000 | $ | - | $ | - | $ | - | |||||||||||||
Liabilities: | |||||||||||||||||||||||||
Interest Rate Swap(2) | 1/15/15 | 2/15/19 | 1.826 | % | $ | 132,000 | $ | - | $ | - | $ | - | |||||||||||||
Interest Rate Swap(2) | 7/15/15 | 2/15/19 | 2.01 | % | $ | 97,000 | $ | - | $ | - | $ | - | |||||||||||||
-1 | The fair value of this interest rate swap is included in the line item “Other assets” on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||
-2 | The fair value of this interest rate swap is included in the line item “Accounts payable, accrued expenses and other liabilities” on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||
Summary of Impact of Derivative Instruments on Consolidated and Combined Financial Statements | ' | ||||||||||||||||||||||||
The following table presents the impact of our derivative instruments on our consolidated and combined statement of operations for the periods presented: | |||||||||||||||||||||||||
. | Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | |||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
Interest Rate Swaps in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||
Amount of gain recognized in AOCI on derivatives (effective portion) | $ | 626,000 | $ | - | $ | - | $ | 167,000 | $ | - | $ | - | |||||||||||||
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion) | - | - | - | - | - | - | |||||||||||||||||||
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing) | - | - | - | - | - | - | |||||||||||||||||||
Interest Rate Swaps Not in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps" | - | - | - | - | - | 49,000 | |||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Assets Measures at Fair Vale on a Recurring Basis by Level within Fair Value Hierarchy | ' | ||||||||||||||||||||
The table below sets forth the estimated fair value of our interest rate swaps as of September 30, 2014, which we measure on a recurring basis by level within the fair value hierarchy. There were no assets or liabilities that we measure at fair value on a recurring basis as of December 31, 2013. | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
At September 30, 2014 | Total Fair Value | Quoted Price in Active | Significant Other | Significant | |||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets and Liabilities | (Level 2) | (Level 3) | |||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Interest Rate Swap Assets | $ | 396,000 | $ | - | $ | 396,000 | $ | - | |||||||||||||
Interest Rate Swap Liabilities | $ | (229,000 | ) | $ | - | $ | (229,000 | ) | $ | - | |||||||||||
Carrying Value and Estimated Fair Value of Notes Payable | ' | ||||||||||||||||||||
The table below sets forth the carrying value and the estimated fair value of our notes payable as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
Liabilities | Total Fair Value | Quoted Price in Active | Significant Other | Significant | Carrying Value | ||||||||||||||||
Markets for Identical | Observable Inputs | Unobservable Inputs | |||||||||||||||||||
Assets and Liabilities | (Level 2) | (Level 3) | |||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Notes Payable at: | |||||||||||||||||||||
30-Sep-14 | $ | 269,754,000 | $ | - | $ | - | $ | 269,754,000 | $ | 269,811,000 | |||||||||||
31-Dec-13 | $ | 192,492,000 | $ | - | $ | - | $ | 192,492,000 | $ | 192,491,000 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Future Minimum Commitment Under Ground Lease and Corporate Office Lease | ' | ||||||||
The future minimum commitment under our ground lease and corporate office lease as of September 30, 2014 is as follows: | |||||||||
Office Lease | Ground Rent | ||||||||
October 1, 2014 - December 31, 2014 | $ | 100,000 | $ | 36,000 | |||||
2015 | 434,000 | 144,000 | |||||||
2016 | 520,000 | 144,000 | |||||||
2017 | 542,000 | 144,000 | |||||||
2018 | 559,000 | 144,000 | |||||||
Thereafter | 337,000 | 6,252,000 | |||||||
Total | $ | 2,492,000 | $ | 6,864,000 | |||||
Investment_in_Unconsolidated_R1
Investment in Unconsolidated Real Estate (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Schedule Of Investments [Abstract] | ' | ||||||||||||||||||||||||
Summarized Information of Our Equity Method Investment Properties | ' | ||||||||||||||||||||||||
The following tables present combined summarized financial information of our equity method investment properties. Amounts provided are the total amounts attributable to the entities and do not represent our proportionate share: | |||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||||||
Assets | $ | 63,054,000 | $ | 61,422,000 | |||||||||||||||||||||
Liabilities | (42,834,000 | ) | (42,475,000 | ) | |||||||||||||||||||||
Partners'/members' equity | $ | 20,220,000 | $ | 18,947,000 | |||||||||||||||||||||
Three Months Ended September 30, 2014(1) | Period From July 24, 2013 to September 30, 2013(1) | Period From July 1, 2013 to July 23, 2013(2) | Nine Months Ended September 30, 2014(1) | Period From July 24, 2013 to September 30, 2013(1) | Period From January 1, 2013 to July 23, 2013(2) | ||||||||||||||||||||
Revenues | $ | 2,123,000 | $ | 5,946,000 | $ | 2,270,000 | $ | 5,856,000 | $ | 5,946,000 | $ | 6,516,000 | |||||||||||||
Expenses | (1,920,000 | ) | (5,001,000 | ) | (1,928,000 | ) | (5,283,000 | ) | (5,001,000 | ) | (7,296,000 | ) | |||||||||||||
Net income (loss) | $ | 203,000 | $ | 945,000 | $ | 342,000 | $ | 573,000 | $ | 945,000 | $ | (780,000 | ) | ||||||||||||
(1)Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard. | |||||||||||||||||||||||||
(2)Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St. |
Discontinued_Operations_and_Pr1
Discontinued Operations and Properties Held for Sale (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||||||||||
Summary of the Properties Sold | ' | ||||||||||||||||||||||||
Dispositions | |||||||||||||||||||||||||
The table below summarizes the properties sold during the nine months ended September 30, 2014 and 2013. The results of operations and the gain or loss on sale of the property are reported under Discontinued Operations in the Consolidated and Combined Statements of Operations. | |||||||||||||||||||||||||
Address | Location | Date of | Rentable | Sales Price | Debt | Gain (Loss) | |||||||||||||||||||
Disposition | Square Feet | Satisfied (1) | Recorded | ||||||||||||||||||||||
2014 Dispositions: | |||||||||||||||||||||||||
1335 Park Center Drive | Vista, CA | 1/29/14 | 124,997 | $ | 10,103,000 | $ | - | $ | 2,262,000 | ||||||||||||||||
2900 N. Madera Road | Simi Valley, CA | 3/13/14 | 63,305 | $ | 4,350,000 | $ | - | $ | (137,000 | ) | |||||||||||||||
2013 Dispositions: | |||||||||||||||||||||||||
4578 Worth Street | Los Angeles, CA | 1/31/13 | 79,370 | $ | 4,100,000 | $ | 2,500,000 | $ | 2,410,000 | ||||||||||||||||
1950 E. Williams Drive | Oxnard, CA | 4/4/13 | 161,682 | $ | 8,542,000 | $ | 2,993,000 | $ | 415,000 | ||||||||||||||||
9027 Glenoaks Blvd. | Los Angeles, CA | 5/10/13 | 14,700 | $ | 1,727,000 | $ | 1,625,000 | $ | 234,000 | ||||||||||||||||
2515, 2507, 2441 W. Erie Dr. & 2929 S. Fair Lane | Tempe, AZ | 5/28/13 | 83,385 | $ | 5,003,000 | $ | 3,531,000 | $ | 1,015,000 | ||||||||||||||||
1255 Knollwood Circle | Anaheim, CA | 6/14/13 | 25,162 | $ | 2,768,000 | $ | 2,630,000 | $ | 915,000 | ||||||||||||||||
-1 | Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan. | ||||||||||||||||||||||||
Results of Operations | ' | ||||||||||||||||||||||||
Discontinued Operations | |||||||||||||||||||||||||
Income from discontinued operations includes the results of operations (prior to disposition) and the gain on sale of real estate attributable to the seven properties in the table above. Their consolidated results of operations for the three and nine months ended September 30, 2014, and the period from July 24, 2013 to September 30, 2013, and combined results of operations for the period from July 1, 2013 to July 23, 2013, and the period from January 1, 2013 to July 23, 2013, are summarized in the table below. | |||||||||||||||||||||||||
Rexford Industrial Realty, Inc. | Rexford Industrial | Rexford Industrial Realty, Inc. | Rexford Industrial | ||||||||||||||||||||||
Realty, Inc. Predecessor | Realty, Inc. Predecessor | ||||||||||||||||||||||||
Three Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From July 1, 2013 to July 23, 2013 | Nine Months Ended September 30, 2014 | Period From July 24, 2013 to September 30, 2013 | Period From January 1, 2013 to July 23, 2013 | ||||||||||||||||||||
Revenues | $ | - | $ | 193,000 | $ | 87,000 | $ | 85,000 | $ | 193,000 | $ | 604,000 | |||||||||||||
Operating expenses | - | (36,000 | ) | (10,000 | ) | (57,000 | ) | (36,000 | ) | (312,000 | ) | ||||||||||||||
Interest expense | - | - | (37,000 | ) | - | - | (325,000 | ) | |||||||||||||||||
Depreciation and amortization expense | - | (37,000 | ) | (14,000 | ) | (7,000 | ) | (37,000 | ) | (776,000 | ) | ||||||||||||||
Loss on extinguishment of debt | - | - | (17,000 | ) | - | - | (267,000 | ) | |||||||||||||||||
Gain on sale of real estate | - | - | - | 2,125,000 | - | 4,989,000 | |||||||||||||||||||
Income from discontinued operations | $ | - | $ | 120,000 | $ | 9,000 | $ | 2,146,000 | $ | 120,000 | $ | 3,913,000 | |||||||||||||
Major Class of Assets and Liabilities Associated with Real Estate Held for Sale | ' | ||||||||||||||||||||||||
Properties Held for Sale | |||||||||||||||||||||||||
As of September 30, 2014, we did not have any properties classified as held for sale. Our properties located at 1335 Park Center Drive, 2900 N. Madera Road and 500-560 Zenith Drive were sold during 2014 and classified as held for sale at December 31, 2013. | |||||||||||||||||||||||||
The major classes of assets and liabilities associated with real estate classified as held for sale are summarized in the table below: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Investment in real estate, net | $ | 12,861,000 | |||||||||||||||||||||||
Other | 1,091,000 | ||||||||||||||||||||||||
Assets associated with real estate held for sale | $ | 13,952,000 | |||||||||||||||||||||||
Mortgage loan | $ | - | |||||||||||||||||||||||
Accounts payable and other liabilities | 596,000 | ||||||||||||||||||||||||
Liabilities associated with real estate held for sale | $ | 596,000 | |||||||||||||||||||||||
Equity_Tables
Equity (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Equity [Abstract] | ' | ||||
Schedule of Unvested Restricted Stock Activity | ' | ||||
The following is a table summarizing our unvested restricted stock activity for the three months ended September 30, 2014: | |||||
Number of Unvested Shares of Restricted Common Stock | |||||
Balance at January 1, 2014 | 140,468 | ||||
Granted | 121,357 | ||||
Forfeited | -29,664 | ||||
Vested(1) | -34,020 | ||||
Balance at September 30, 2014 | 198,141 | ||||
-1 | 6,928 shares of the Company’s common stock were tendered in accordance with the terms of the Plan to satisfy minimum tax withholding requirements related to the shares of restricted common stock that have vested. We accept the return of shares at the current quoted closing share price of the Company's common stock on the NYSE to satisfy tax obligations. | ||||
Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding | ' | ||||
The following is a vesting schedule of the total unvested shares of restricted stock outstanding as of September 30, 2014: | |||||
Shares | |||||
October 1, 2014 - December 31, 2014 | - | ||||
2015 | 72,640 | ||||
2016 | 56,542 | ||||
2017 | 53,713 | ||||
2018 | 15,246 | ||||
198,141 | |||||
Summary of the Components of Changes in Accumulated Other Comprehensive Income | ' | ||||
The following table summarizes the changes in our Accumulated Other Comprehensive Income balance for the nine months ended September 30, 2014, which consists solely of adjustments related to our cash flow hedges: | |||||
Accumulated Other | |||||
Comprehensive Income | |||||
Balance at January 1, 2014 | $ | - | |||
Other comprehensive income before reclassifications | 167,000 | ||||
Amounts reclassified from accumulated other comprehensive income to interest expense | - | ||||
Net current period other comprehensive income | 167,000 | ||||
Less other comprehensive income attributable to noncontrolling interests | (9,000 | ) | |||
Other comprehensive income attributable to common stockholders | 158,000 | ||||
Balance at September 30, 2014 | $ | 158,000 | |||
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Three Months | Nine Months | Period from July 24, 2013 to September 30, 2013 | |||||||||||
Ended September 30, 2014 | Ended September 30, 2014 | ||||||||||||
Numerator: | |||||||||||||
Net income (loss) from continuing operations | $ | (679,000 | ) | $ | (1,315,000 | ) | $ | 175,000 | |||||
Net (income) loss from continuing operations attributable to noncontrolling interests | 80,000 | 127,000 | (23,000 | ) | |||||||||
Income from continuing operations attributable to participating securities | (24,000 | ) | (64,000 | ) | (5,000 | ) | |||||||
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc. | $ | (623,000 | ) | $ | (1,252,000 | ) | $ | 147,000 | |||||
Income from discontinued operations | $ | - | $ | 2,146,000 | $ | 120,000 | |||||||
Income from discontinued operations attributable to noncontrolling interests | - | (207,000 | ) | (16,000 | ) | ||||||||
Income from discontinued operations attributable to participating securities | - | - | (4,000 | ) | |||||||||
Income from discontinued operations attributable to Rexford Industrial Realty, Inc. | $ | - | $ | 1,939,000 | $ | 100,000 | |||||||
Net income (loss) attributable to Rexford Industrial Realty, Inc. and participating securities | $ | (599,000 | ) | $ | 751,000 | $ | 256,000 | ||||||
Net income attributable to participating securities | (24,000 | ) | (64,000 | ) | (9,000 | ) | |||||||
Net income (loss) attributable to Rexford Industrial Realty, Inc. | $ | (623,000 | ) | $ | 687,000 | $ | 247,000 | ||||||
Denominator: | |||||||||||||
Weighted average shares of common stock outstanding - basic and diluted | 33,527,183 | 28,151,818 | 24,574,432 | ||||||||||
Earnings per share - Basic and Diluted: | |||||||||||||
Net income (loss) from continuing operations available to common stockholders | $ | (0.02 | ) | $ | (0.04 | ) | $ | 0.01 | |||||
Net income from discontinued operations available to common stockholders | $ | - | $ | 0.07 | $ | - | |||||||
Net income (loss) available to common stockholders | $ | (0.02 | ) | $ | 0.02 | $ | 0.01 | ||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) | Sep. 30, 2014 |
sqft | |
Property | |
Real Estate Properties [Line Items] | ' |
Number of real estate properties | 86 |
Area of real estate property | 8,600,000 |
Number of real estate properties additionally managed | 20 |
Area of real estate property additionally managed | 1,200,000 |
Maximum | ' |
Real Estate Properties [Line Items] | ' |
Ownership Interest | 100.00% |
Joint Venture | ' |
Real Estate Properties [Line Items] | ' |
Area of real estate property | 1,200,000 |
Interest percentage owned in joint venture of real estate properties | 15.00% |
Number of real estate properties owned in joint venture | 3 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Allocation period | ' | ' | '1 year | ' |
Real estate investment cumulative impairment | ' | $18,600,000 | $18,600,000 | $18,600,000 |
REIT annual taxable income distribution requirement percentage | ' | ' | 90.00% | ' |
Income tax provision | 0 | 0 | 0 | ' |
Reserve for allowance for doubtful accounts | ' | $900,000 | $900,000 | $500,000 |
Site Improvements | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated remaining life | ' | ' | '20 years | ' |
Minimum | Building | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated remaining life | ' | ' | '10 years | ' |
Maximum | Building | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Estimated remaining life | ' | ' | '30 years | ' |
Investments_in_Real_Estate_Acq
Investments in Real Estate - Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | 9 Months Ended | 7 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||
Feb. 12, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Jan. 15, 2014 | Sep. 30, 2014 | Jan. 22, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Feb. 25, 2014 | Sep. 30, 2014 | Mar. 20, 2014 | Sep. 30, 2014 | Apr. 17, 2014 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | Jun. 05, 2014 | Sep. 30, 2014 | Jun. 24, 2014 | Sep. 30, 2014 | Jul. 08, 2014 | Sep. 30, 2014 | Jun. 27, 2014 | Jul. 23, 2014 | Jul. 25, 2014 | Aug. 26, 2014 | Sep. 12, 2014 | Sep. 30, 2014 | ||||||
Buildings | Buildings | Predecessor | Rosecrans Avenue | Rosecrans Avenue | Oxnard Street | Oxnard Street | Oxnard Street | West 228th Street | West 228th Street | Frampton Avenue | Frampton Avenue | Saturn Way | Saturn Way | N. San Fernado Blvd. | N. San Fernado Blvd. | Crescent Bay Drive | Crescent Bay Drive | S. Birch Street | S. Birch Street | Santa Ana Street and Dupont Avenue | Santa Ana Street and Dupont Avenue | West Avenue | West Avenue | San Gabriel Valley, Orange County and San Diego Submarkets of California | Chatsworth Industrial Park | Avenue Keamey | 2980 San Fernando | Mason Avenue | Mason Avenue | ||||||||
sqft | Property | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Buildings | Property | Buildings | Buildings | Buildings | Buildings | ||||||||||||||||||||
acre | sqft | Property | sqft | sqft | sqft | acre | sqft | sqft | sqft | sqft | sqft | acre | acre | acre | sqft | sqft | acre | ||||||||||||||||||||
sqft | acre | acre | acre | sqft | acre | acre | acre | acre | acre | sqft | sqft | sqft | acre | acre | sqft | ||||||||||||||||||||||
Disclosure Investment In Real Estate Acquisitions Additional Information Detail [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Purchase Price | $8,550,000 | $14,000,000 | $261,409,000 | $14,025,000 | $73,798,000 | $4,969,000 | $5,011,000 | [1] | $8,875,000 | $8,875,000 | $8,425,000 | $6,600,000 | $6,600,000 | [2] | $3,930,000 | $3,930,000 | $21,100,000 | $21,100,000 | $15,425,000 | $15,733,000 | [3] | $6,480,000 | $6,480,000 | $11,000,000 | $11,419,000 | [4] | $10,200,000 | $10,200,000 | $11,000,000 | $11,055,000 | [5] | $88,500,000 | $16,800,000 | $11,500,000 | $5,075,000 | $30,500,000 | $30,500,000 |
Number of buildings acquired | 5 | 2 | ' | ' | 17 | 1 | ' | 6 | ' | ' | 6 | ' | 1 | ' | 1 | ' | 1 | ' | 1 | ' | 2 | ' | 2 | ' | 1 | ' | ' | 7 | 2 | 1 | 1 | ' | |||||
Square footage of buildings acquired | 113,612 | 124,000 | ' | ' | 741,000 | 72,000 | ' | 78,000 | ' | ' | 88,330 | ' | 47,903 | ' | 170,865 | ' | 130,800 | ' | 46,178 | ' | 98,105 | ' | 111,890 | ' | 100,500 | ' | 817,166 | 153,212 | 138,980 | 55,516 | 319,348 | ' | |||||
Acres of land | 5.74 | ' | ' | ' | ' | 3.25 | ' | 3.25 | ' | ' | 3.9 | ' | 2.07 | ' | 9.25 | ' | 5.86 | ' | 2.47 | ' | 7.9 | ' | 5.66 | ' | 2.62 | ' | 43.6 | 7.4 | 6 | 2.75 | 11.82 | ' | |||||
Assumption of loan in connection with acquisition of real estate | ' | ' | 10,257,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,300,000 | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48,500,000 | ' | ' | ' | ' | ' | |||||
Number of properties acquired | ' | 2 | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | |||||
[1] | As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation includes $42,000 of capitalized acquisition costs. | ||||||||||||||||||||||||||||||||||||
[2] | As part of the acquisition of 1500-1510 West 228th Street, we recorded a contingent liability in the amount of $1.2 million, related to the estimated cost to remediate potential environmental liabilities that existed at the acquisition date. Additionally, we recorded an indemnification asset for the same amount as the seller has placed $1.3 million into an escrow account to be used by us toward the payment of these remediation costs. See Note 11. | ||||||||||||||||||||||||||||||||||||
[3] | In connection with the acquisition of 2980 and 2990 N. San Fernando Blvd. acquisition, we assumed debt with an outstanding principal balance of $10.3 million and an initial fair value premium of $308,000. | ||||||||||||||||||||||||||||||||||||
[4] | As the purchase of 2610 and 2701 S. Birch Street was accounted for as an asset acquisition, the total purchase price allocation includes $121,000 of capitalized acquisition costs. Additionally, as part of the purchase price allocation, $299,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the six-months of free rent provided to the seller as part of the acquisition. | ||||||||||||||||||||||||||||||||||||
[5] | The purchase price allocation for the acquisition of 3116 West Avenue 32 includes $54,000 in deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. |
Investments_in_Real_Estate_Sum
Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2014 | Feb. 12, 2014 | Sep. 30, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2014 | Jan. 15, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jan. 22, 2014 | Jul. 23, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 25, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 20, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 17, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 05, 2014 | Sep. 30, 2014 | Jun. 24, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 08, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | Dec. 31, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Predecessor | In-place Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | Net Above (Below) Market Lease Intangibles | Net Above (Below) Market Lease Intangibles | Rosecrans Avenue | Rosecrans Avenue | Oxnard Street | Oxnard Street | Oxnard Street | Oxnard Street | Oxnard Street | Oxnard Street | Oxnard Street | Oxnard Street | Milliken Avenue and Santa Ana Street | Milliken Avenue and Santa Ana Street | Milliken Avenue and Santa Ana Street | West 228th Street | West 228th Street | West 228th Street | West 228th Street | Frampton Avenue | Frampton Avenue | Frampton Avenue | Saturn Way | Saturn Way | Saturn Way | Saturn Way | Crescent Bay Drive | Crescent Bay Drive | Crescent Bay Drive | Crescent Bay Drive | N. San Fernado Blvd. | N. San Fernado Blvd. | N. San Fernado Blvd. | N. San Fernado Blvd. | S. Birch Street | S. Birch Street | Santa Ana Street and Dupont Avenue | Santa Ana Street and Dupont Avenue | Santa Ana Street and Dupont Avenue | Santa Ana Street and Dupont Avenue | 9755 Distribution Avenue | 9755 Distribution Avenue | 9755 Distribution Avenue | 9855 Distribution Avenue | 9855 Distribution Avenue | 9855 Distribution Avenue | 9340 Cabot Drive | 9340 Cabot Drive | 9404 Cabot Drive | 9404 Cabot Drive | 9404 Cabot Drive | 9455 Cabot Drive | 9455 Cabot Drive | 9455 Cabot Drive | E. Salt Lake City | E. Salt Lake City | E. Salt Lake City | E. Hunter Avenue | E. Hunter Avenue | E. Hunter Avenue | W. Valley Blvd. | W. Valley Blvd. | W. Valley Blvd. | Alton Parkway | Alton Parkway | Alton Parkway | West Avenue | West Avenue | West Avenue | West Avenue | Independence Avenue | Independence Avenue | Independence Avenue | Avenue Kearny | Avenue Kearny | 605 8th St. | Mason Avenue | Mason Avenue | Mason Avenue | Mason Avenue | Orion Avenue | Orion Avenue | Orion Avenue | Orion Avenue | S. Broadway | S. Broadway | S. Broadway | Benson Ave., Arrow Highway | Benson Ave., Arrow Highway | Benson Ave., Arrow Highway | Benson Ave., Arrow Highway | Tyburn St., N. San Fernando Rd. | Tyburn St., N. San Fernando Rd. | Tyburn St., N. San Fernando Rd. | Tyburn St., N. San Fernando Rd. | 240th St. | 240th St. | 240th St. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Predecessor | Predecessor | In-place Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | Predecessor | Predecessor | In-place Lease Intangibles | Predecessor | Predecessor | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | Predecessor | Predecessor | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | Predecessor | Predecessor | In-place Lease Intangibles | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jan-14 | [1] | ' | 7-Aug-13 | 22-Jan-14 | ' | ' | ' | ' | ' | ' | 12-Feb-14 | ' | ' | 25-Feb-14 | [2] | ' | ' | ' | 20-Mar-14 | ' | ' | 17-Apr-14 | ' | ' | ' | 30-May-14 | ' | ' | ' | 30-May-14 | [3] | ' | ' | ' | 5-Jun-14 | [4] | ' | 24-Jun-14 | ' | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 27-Jun-14 | ' | ' | 8-Jul-14 | [5] | ' | ' | ' | 23-Jul-14 | ' | ' | 25-Jul-14 | ' | 26-Aug-14 | [6] | 12-Sep-14 | ' | ' | ' | 30-Jul-13 | ' | ' | ' | 4-Apr-13 | ' | ' | 9-Apr-13 | ' | ' | ' | 17-Apr-13 | ' | ' | ' | 31-May-13 | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land | $109,206 | ' | ' | $3,887 | $34,717 | ' | ' | ' | ' | ' | ' | $3,117 | [1] | ' | ' | $4,458 | ' | $2,498 | ' | ' | ' | ' | $2,260 | ' | ' | $2,428 | [2] | ' | ' | ' | $2,315 | ' | ' | $7,935 | ' | ' | ' | $2,181 | ' | ' | ' | $6,373 | [3] | ' | ' | ' | $9,305 | [4] | ' | $3,725 | ' | ' | ' | $1,863 | ' | ' | $2,733 | ' | ' | $4,311 | ' | $2,413 | ' | ' | $4,423 | ' | ' | $5,126 | ' | ' | $5,240 | ' | ' | $3,982 | ' | ' | $7,638 | ' | ' | $3,761 | [5] | ' | ' | ' | $7,229 | ' | ' | $4,773 | ' | $2,393 | [6] | $9,224 | ' | ' | ' | ' | $1,389 | ' | ' | ' | $3,013 | ' | ' | $1,817 | ' | ' | ' | $26,423 | ' | ' | ' | $3,464 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings and Improvements | 136,151 | ' | ' | 9,365 | 34,044 | ' | ' | ' | ' | ' | ' | 1,894 | [1] | ' | ' | 3,948 | ' | 5,493 | ' | ' | ' | ' | 6,043 | ' | ' | 4,271 | [2] | ' | ' | ' | 1,553 | ' | ' | 10,525 | ' | ' | ' | 4,012 | ' | ' | ' | 7,356 | [3] | ' | ' | ' | 2,114 | [4] | ' | 6,145 | ' | ' | ' | 3,211 | ' | ' | 5,041 | ' | ' | 6,126 | ' | 3,451 | ' | ' | 6,799 | ' | ' | 5,009 | ' | ' | 5,065 | ' | ' | 4,796 | ' | ' | 4,946 | ' | ' | 6,730 | [5] | ' | ' | ' | 9,058 | ' | ' | 5,970 | ' | 2,742 | [6] | 19,346 | ' | ' | ' | ' | 3,872 | ' | ' | ' | 2,161 | ' | ' | 4,590 | ' | ' | ' | 25,795 | ' | ' | ' | 1,498 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Intangibles | ' | ' | ' | ' | ' | 14,634 | [7] | 762 | [7] | 3,432 | [7] | 1,418 | [8] | 11 | [8] | 1,605 | [8] | ' | ' | ' | ' | ' | ' | 490 | [7] | 435 | [7] | -21 | [8] | -1 | [8] | ' | 431 | [7] | -184 | [8] | ' | ' | 205 | [2],[7] | -304 | [2],[8] | ' | ' | 62 | [7] | ' | ' | 2,259 | [7] | 381 | [8] | ' | ' | 389 | [7] | -102 | [8] | ' | ' | 1,276 | [3],[7] | 728 | [3],[8] | ' | ' | ' | ' | 524 | [7] | -194 | [8] | ' | 451 | [7] | -100 | [8] | ' | 621 | [7] | 130 | [8] | ' | 538 | [7] | ' | 346 | [7] | 190 | [8] | ' | 851 | [7] | 27 | [8] | ' | 800 | [7] | -85 | [8] | ' | 866 | [7] | 158 | [8] | ' | 566 | [7] | 287 | [8] | ' | 419 | [7] | 273 | [8] | ' | ' | 503 | [5],[7] | 61 | [5],[8] | ' | 650 | [7] | -137 | [8] | ' | 767 | [7] | ' | ' | ' | 1,620 | [7] | 310 | [8] | ' | ' | 327 | [7] | 12 | [8] | ' | ' | 274 | [7] | ' | ' | 552 | [7] | 191 | [8] | ' | ' | 2,568 | [7] | 1,414 | [8] | ' | ' | 38 | [7] | ||||||
Total Purchase Price | 261,409 | 8,550 | 14,000 | 14,025 | 73,798 | ' | ' | ' | ' | ' | ' | 5,011 | [1] | 4,969 | ' | 8,875 | 8,875 | 8,425 | ' | ' | ' | ' | 8,550 | ' | ' | 6,600 | [2] | 6,600 | ' | ' | 3,930 | 3,930 | ' | 21,100 | 21,100 | ' | ' | 6,480 | 6,480 | ' | ' | 15,733 | [3] | 15,425 | ' | ' | 11,419 | [4] | 11,000 | 10,200 | 10,200 | ' | ' | 5,425 | ' | ' | 8,525 | ' | ' | 10,975 | ' | 6,400 | ' | ' | 12,100 | ' | ' | 10,850 | ' | ' | 11,329 | ' | ' | 9,631 | ' | ' | 13,276 | ' | ' | 11,055 | [5] | 11,000 | ' | ' | 16,800 | ' | ' | 11,510 | ' | 5,135 | [6] | 30,500 | 30,500 | ' | ' | ' | 5,600 | ' | ' | ' | 5,448 | ' | ' | 7,150 | ' | ' | ' | 56,200 | ' | ' | ' | 5,000 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | 1,322 | ' | ' | 23 | 212 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | 2 | ' | ' | 1,180 | [2] | ' | ' | ' | 22 | ' | ' | 76 | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | 5 | [4] | ' | 1 | ' | ' | ' | 2 | ' | ' | 5 | ' | ' | 2 | ' | 1 | ' | ' | 1 | ' | ' | 3 | ' | ' | 15 | ' | ' | 1 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | 16 | ' | ' | 20 | ' | ' | ' | 168 | ' | ' | ' | 8 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Accounts Payable, Accrued Expenses and Tenant Security Deposits | -14,259 | ' | ' | -124 | -678 | ' | ' | ' | ' | ' | ' | -321 | [1] | ' | ' | -117 | ' | -69 | ' | ' | ' | ' | -116 | ' | ' | -1,214 | [2] | ' | ' | ' | -64 | ' | ' | -73 | ' | ' | ' | -2 | ' | ' | ' | -10,572 | [3] | ' | ' | ' | -299 | [4] | ' | -90 | ' | ' | ' | -97 | ' | ' | -39 | ' | ' | -54 | ' | -6 | ' | ' | -13 | ' | ' | -119 | ' | ' | -76 | ' | ' | -119 | ' | ' | -52 | ' | ' | -121 | [5] | ' | ' | ' | -164 | ' | ' | -95 | ' | -88 | [6] | -348 | ' | ' | ' | ' | -55 | ' | ' | ' | -57 | ' | ' | -104 | ' | ' | ' | -500 | ' | ' | ' | -17 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | $248,472 | ' | ' | $13,924 | $73,332 | ' | ' | ' | ' | ' | ' | $4,690 | [1] | ' | ' | $8,758 | ' | $8,360 | ' | ' | ' | ' | $8,436 | ' | ' | $6,566 | [2] | ' | ' | ' | $3,888 | ' | ' | $21,103 | ' | ' | ' | $6,482 | ' | ' | ' | $5,161 | [3] | ' | ' | ' | $11,125 | [4] | ' | $10,111 | ' | ' | ' | $5,330 | ' | ' | $8,491 | ' | ' | $10,923 | ' | $6,395 | ' | ' | $12,088 | ' | ' | $10,734 | ' | ' | $11,268 | ' | ' | $9,513 | ' | ' | $13,225 | ' | ' | $10,934 | [5] | ' | ' | ' | $16,637 | ' | ' | $11,415 | ' | $5,047 | [6] | $30,152 | ' | ' | ' | ' | $5,564 | ' | ' | ' | $5,407 | ' | ' | $7,066 | ' | ' | ' | $55,868 | ' | ' | ' | $4,991 | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation includes $42,000 of capitalized acquisition costs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | As part of the acquisition of 1500-1510 West 228th Street, we recorded a contingent liability in the amount of $1.2 million, related to the estimated cost to remediate potential environmental liabilities that existed at the acquisition date. Additionally, we recorded an indemnification asset for the same amount as the seller has placed $1.3 million into an escrow account to be used by us toward the payment of these remediation costs. See Note 11. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | In connection with the acquisition of 2980 and 2990 N. San Fernando Blvd. acquisition, we assumed debt with an outstanding principal balance of $10.3 million and an initial fair value premium of $308,000. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | As the purchase of 2610 and 2701 S. Birch Street was accounted for as an asset acquisition, the total purchase price allocation includes $121,000 of capitalized acquisition costs. Additionally, as part of the purchase price allocation, $299,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the six-months of free rent provided to the seller as part of the acquisition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | The purchase price allocation for the acquisition of 3116 West Avenue 32 includes $54,000 in deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | As part of the purchase price allocation of 605 8th St., $60,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the two months of free rent provided to the seller as part of the acquisition. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | The weighted average amortization period of acquired in-place lease intangibles for our 2014 acquisitions was 3.4 years as of September 30, 2014. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | The weighted average amortization period of net above (below) market leases for our 2014 acquisitions was 3.5 years as of September 30, 2014 |
Investments_in_Real_Estate_Sum1
Investments in Real Estate - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2014 | Feb. 25, 2014 | Jul. 23, 2013 | Sep. 30, 2014 | 30-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
Rosecrans Avenue | N. San Fernado Blvd. | N. San Fernado Blvd. | West 228th Street | Avenue 32 | 8th St. | S. Birch Street | In-place Lease Intangibles | Net Above (Below) Market Lease Intangibles | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Amortization period of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 3 months 18 days | '3 years 4 months 24 days | ||||
Asset acquisition capitalized acquisition costs | ' | ' | ' | $42,000 | ' | ' | ' | ' | ' | $121,000 | ' | ' | ||||
Unamortized debt premium | ' | ' | ' | ' | ' | 308,000 | ' | ' | ' | ' | ' | ' | ||||
Contingent liability | ' | 1,200,000 | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ||||
Holdback Escrow Seller Funded | ' | 1,300,000 | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ||||
Assumption of loan in connection with acquisition of real estate | 10,257,000 | ' | ' | ' | 10,300,000 | 10,300,000 | ' | ' | ' | ' | ' | ' | ||||
Additional purchase price allocated to liabilities | $14,259,000 | ' | $124,000 | $321,000 | [1] | ' | $10,572,000 | [2] | $1,214,000 | [3] | $54,000 | $60,000 | $299,000 | [4] | ' | ' |
[1] | As the purchase of 7110 Rosecrans Avenue was accounted for as an asset acquisition, the total purchase price allocation includes $42,000 of capitalized acquisition costs. | |||||||||||||||
[2] | In connection with the acquisition of 2980 and 2990 N. San Fernando Blvd. acquisition, we assumed debt with an outstanding principal balance of $10.3 million and an initial fair value premium of $308,000. | |||||||||||||||
[3] | As part of the acquisition of 1500-1510 West 228th Street, we recorded a contingent liability in the amount of $1.2 million, related to the estimated cost to remediate potential environmental liabilities that existed at the acquisition date. Additionally, we recorded an indemnification asset for the same amount as the seller has placed $1.3 million into an escrow account to be used by us toward the payment of these remediation costs. See Note 11. | |||||||||||||||
[4] | As the purchase of 2610 and 2701 S. Birch Street was accounted for as an asset acquisition, the total purchase price allocation includes $121,000 of capitalized acquisition costs. Additionally, as part of the purchase price allocation, $299,000 was allocated to deferred liabilities (located in Accounts payable, accrued expenses and other liabilities on the balance sheet), related to the six-months of free rent provided to the seller as part of the acquisition. |
Summary_of_Combined_Results_fr
Summary of Combined Results from Operations of Acquisitions (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Business Combinations [Abstract] | ' | ' |
Revenues | $4,310 | $6,004 |
Net Income | $161 | $420 |
Investments_in_Real_Estate_Pro
Investments in Real Estate - Proforma Financial Information (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 |
Predecessor | Predecessor | ||||
Business Acquisition Pro Forma Information Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' | ' |
Revenues | $12,695 | $18,717 | $55,420 | $3,972 | $33,732 |
Net operating income | 8,788 | 13,264 | 38,995 | 2,904 | 23,979 |
Net income | $115 | $549 | $3,191 | ($5,928) | ($6,671) |
Intangible_Assets_Summary_of_A
Intangible Assets - Summary of Acquired Lease Intangible Assets and Liabilities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible assets, net | $23,558 | $13,508 |
Acquired lease intangible liabilities, net | -1,921 | -1,143 |
In-place Lease Intangibles | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible assets, gross | 30,475 | 16,112 |
Accumulated amortization | -10,391 | -4,201 |
Acquired lease intangible assets, net | 20,084 | 11,911 |
Above Market Tenant Leases | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible assets, gross | 4,458 | 1,881 |
Accumulated amortization | -984 | -284 |
Acquired lease intangible assets, net | 3,474 | 1,597 |
Below Market Tenant Leases | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible liabilities, gross | -2,191 | -1,055 |
Accumulated accretion | 523 | 189 |
Acquired lease intangible liabilities, net | -1,668 | -866 |
Above Market Ground Lease | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Acquired lease intangible liabilities, gross | -290 | -290 |
Accumulated accretion | 37 | 13 |
Acquired lease intangible liabilities, net | ($253) | ($277) |
Intangible_Assets_Summary_of_A1
Intangible Assets - Summary of Amortization or Accretion Recorded During the Period Related to Acquired Lease Intangibles (Detail) (USD $) | 2 Months Ended | 9 Months Ended | 7 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |||||||||||||||||
Predecessor | In-place Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | In-place Lease Intangibles | Above Market Tenant Leases | Above Market Tenant Leases | Above Market Tenant Leases | Above Market Tenant Leases | Above Market Tenant Leases | Below Market Tenant Leases | Below Market Tenant Leases | Below Market Tenant Leases | Below Market Tenant Leases | Below Market Tenant Leases | Above Market Ground Lease | Above Market Ground Lease | ||||||||||||||||||||
Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | ||||||||||||||||||||||||||||||||
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||
Amortization of in-place lease intangibles | ' | ' | ' | $1,084 | [1] | $2,641 | [1] | $6,552 | [1] | $174 | [1] | $1,238 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Amortization of above (below) market lease intangibles, net | 122 | 305 | 256 | ' | ' | ' | ' | ' | 152 | [2] | 340 | [2] | 700 | [2] | 49 | [2] | 258 | [2] | -31 | [3] | -182 | [3] | -371 | [3] | -5 | [3] | -19 | [3] | ' | ' | |||||||
Accretion Of Above Market Ground Lease Intangible | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($8) | [4] | ($24) | [4] | |||||||||||||||
[1] | The amortization of in-place lease intangibles is recorded to depreciation and amortization expense in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||||||||||||||
[2] | The amortization of above-market tenant leases is recorded as a decrease to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||||||||||||||
[3] | The accretion of below-market tenant leases is recorded as an increase to rental revenues in the consolidated and combined statements of operations for the periods presented. | ||||||||||||||||||||||||||||||||||||
[4] | The accretion of the above-market ground lease is recorded as a decrease to property expenses in the consolidated and combined statements of operations for the periods presented. |
Notes_Receivable_Additional_In
Notes Receivable - Additional Information (Detail) (USD $) | 9 Months Ended | 7 Months Ended |
Sep. 30, 2014 | Jul. 23, 2013 | |
Predecessor | ||
Notes Receivables | ' | ' |
Proceeds from collection of mortgage note | $5,400,000 | ' |
Interest received from mortgage note | 6,310 | ' |
Amount used to repay secured loan | 2,500,000 | ' |
Gain from early repayment of note receivable | ' | $1,365,000 |
Notes_Receivable_Summary_of_No
Notes Receivable - Summary of Notes Receivable (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Notes Receivables | ' | ' | ||
Face Amount | $13,965 | $14,161 | ||
Unrecognized Accretable Yield | -827 | -1,022 | ||
Notes receivable | $13,138 | [1] | $13,139 | [1] |
[1] | This is a mortgage loan secured by 32401-32803 Calle Perfecto. |
Notes_Payable_Summary_of_Notes
Notes Payable - Summary of Notes Payable (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | $269,811 | $192,491 | ||
Maturity Date | 1-Jan-15 | ' | ||
Term Loan One | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt Instrument, description of variable rate basis | 'LIBOR | [1] | ' | |
Term Loan One | LIBOR | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, basis spread on variable rate | 1.90% | [1] | ' | |
Term Loan | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt Instrument, description of variable rate basis | 'LIBOR | [2] | ' | |
Term Loan | LIBOR | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, basis spread on variable rate | 1.55% | [2] | ' | |
Term Loan Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt Instrument, description of variable rate basis | 'LIBOR | ' | ||
Term Loan Facility | LIBOR | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, basis spread on variable rate | 1.35% | ' | ||
RIF V - Glendale Commerce Center, LLC | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt Instrument, description of variable rate basis | 'LIBOR | ' | ||
RIF V - Glendale Commerce Center, LLC | LIBOR | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, basis spread on variable rate | 2.00% | ' | ||
Fixed Rate Debt | RIF V - Jersey, LLC | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 5,058 | [3] | 5,189 | [3] |
Maturity Date | 1-Jan-15 | ' | ||
Fixed interest rate | 5.45% | [4] | ' | |
Fixed Rate Debt | The Park | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 3,089 | [5] | 3,177 | [5] |
Maturity Date | 1-Mar-31 | ' | ||
Fixed interest rate | 5.13% | [6] | ' | |
Fixed Rate Debt | 2980 San Fernando | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 10,414 | [7] | ' | |
Maturity Date | 1-Jul-15 | ' | ||
Fixed interest rate | 5.09% | [4] | ' | |
Variable Rate Debt | Term Loan One | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 60,000 | [1] | 60,000 | [1] |
Maturity Date | 1-Aug-19 | [1],[8] | ' | |
Variable Rate Debt | Term Loan | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 48,500 | [2] | ' | |
Maturity Date | 24-Jun-17 | [2] | ' | |
Variable Rate Debt | Term Loan Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 100,000 | ' | ||
Maturity Date | 11-Jun-19 | ' | ||
Variable Rate Debt | RIF V - Glendale Commerce Center, LLC | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | 42,750 | 42,750 | ||
Maturity Date | 1-May-16 | [9] | ' | |
Revolving Credit Facility | Unsecured Credit Facility | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Notes payable | ' | $81,375 | ||
Maturity Date | 11-Jun-18 | ' | ||
Debt Instrument, description of variable rate basis | 'LIBOR | [10] | ' | |
Revolving Credit Facility | Unsecured Credit Facility | LIBOR | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, basis spread on variable rate | 1.40% | [10] | ' | |
[1] | Loan is secured by six properties. | |||
[2] | (1) Loan is secured by eight properties. | |||
[3] | Includes unamortized debt premium of $12,000 at September 30, 2014 and $50,000 at DecemberB 31, 2013. | |||
[4] | Monthly payments of interest and principal based on 30-year amortization table | |||
[5] | Includes unamortized debt discount of $115,000 at September 30, 2014 and $118,000 at DecemberB 31, 2013. | |||
[6] | Monthly payments of interest and principal based on 20-year amortization table. | |||
[7] | (1) Includes unamortized debt premium of $215,000 at September 30, 2014. | |||
[8] | (1) One additional one-year extension available at the borrowerbs option. | |||
[9] | Two additional one year extensions available at the borrowerbs option. | |||
[10] | The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the revolver, if the balance is under $100 million or over $100 million, respectively. |
Notes_Payable_Summary_of_Notes1
Notes Payable - Summary of Notes Payable (Parenthetical) (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
Variable Rate Debt | Term Loan One | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Number of properties securing loan | 6 | ' |
Variable Rate Debt | Term Loan | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Number of extensions | 1 | ' |
Extension period | '2 years | ' |
Number of properties securing loan | 8 | ' |
Revolving Credit Facility | Unsecured Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Number of extensions | 1 | ' |
Extension period | '1 year | ' |
RIF V - Jersey, LLC | Fixed Rate Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unamortized debt premium | $12,000 | $50,000 |
Amortization period | '30 years | ' |
The Park | Fixed Rate Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Amortization period | '20 years | ' |
Unamortized debt discount | 115,000 | 118,000 |
2980 San Fernando | Fixed Rate Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unamortized debt premium | 215,000 | ' |
RIF V - Glendale Commerce Center, LLC | Variable Rate Debt | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Number of extensions | 2 | ' |
Extension period | '1 year | ' |
Maximum | Revolving Credit Facility | Unsecured Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Additional interest | 0.30% | ' |
Line of credit facility, amount outstanding | 100,000,000 | ' |
Minimum | Revolving Credit Facility | Unsecured Credit Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Additional interest | 0.20% | ' |
Line of credit facility, amount outstanding | $100,000,000 | ' |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||
Sep. 30, 2014 | Jun. 11, 2014 | Sep. 30, 2014 | Jun. 11, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 11, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 24, 2014 | Sep. 30, 2014 | Jun. 11, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jun. 24, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 22, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 30-May-14 | |||
Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Amended Facility | Amended Facility | Amended Facility | Amended Facility | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | Federal Funds Rate Plus | Thirty Day L I B O R Rate | Unsecured Credit Facility | Unsecured Credit Facility | Unsecured Credit Facility | Unsecured Credit Facility | Unsecured Credit Facility | San Fernando Rd | |||||
Minimum | Minimum | Maximum | Maximum | Minimum | Maximum | Property | Minimum | Maximum | LIBOR | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | LIBOR | ||||||||||||||
Minimum | Maximum | Revolving Credit Facility | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Assumption of loan in connection with acquisition of real estate | $10,257,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,300,000 | ||
Initial debt premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 308,000 | ||
Fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.09% | ||
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ||
Maturity Date | ' | ' | 11-Jun-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24-Jun-17 | 11-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jul-15 | ||
Term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, description of variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | [1] | ' | ' | ' | ' | |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | 1.35% | 1.30% | 2.05% | 1.90% | ' | ' | ' | ' | ' | ' | ' | 1.25% | 1.85% | 1.55% | 0.50% | 1.00% | ' | ' | ' | ' | 1.40% | [1] | ' | |
Number of properties securing loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum in-place debt yield | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Current borrowing capacity | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amended facility maximum future borrowing capacity | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Additional interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.30% | ' | ' | ||
Maximum ratio of total indebtedness to total asset value | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum ratio of secured debt to total asset value | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum ratio of recourse debt to total asset | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum tangible net worth required | ' | ' | ' | ' | ' | ' | ' | ' | 283,622,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum debt to tangible net worth ratio required for equity proceeds | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum ratio of EBITDA to fixed charges | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum ratio of unsecured debt to the value of the unencumbered asset pool | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum ratio of NOI unsecured interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of Credit Facility, cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 137,500,000 | ' | ' | ' | ' | ' | ||
Line of Credit Facility, Additional Availability | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | The facility additionally bears interest at 0.30% or 0.20% of the daily undrawn amount of the revolver, if the balance is under $100 million or over $100 million, respectively. |
Notes_Payable_Summary_of_Aggre
Notes Payable - Summary of Aggregate Future Minimum Payments of Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Total | $269,811 | $192,491 | |
With Out Extension Option | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
October 1, 2014 - December 31, 2014 | 110 | ' | |
2015 | 15,294 | ' | |
2016 | 42,885 | ' | |
2017 | 48,642 | ' | |
2018 | 150 | ' | |
Thereafter | 162,618 | ' | |
Total | $269,699 | [1] | ' |
[1] | Includes gross principal balance of outstanding debt before impact of the $112,000 net debt premium. |
Notes_Payable_Summary_of_Aggre1
Notes Payable - Summary of Aggregate Future Minimum Payments of Debt (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Debt instrument, unamortized premium net | $112 |
Operating_Leases_Future_Minimu
Operating Leases - Future Minimum Base Rate for Predecessor Under Operating Leases (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ' |
2015 | $57,703 |
2016 | 45,147 |
2017 | 30,232 |
2018 | 20,722 |
2019 | 15,429 |
Thereafter | 25,722 |
Total | $194,955 |
Interest_Rate_Contracts_Additi
Interest Rate Contracts - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2014 | Aug. 19, 2014 | Sep. 30, 2014 | Aug. 19, 2014 | ||
Swap | Variable Rate Debt | Variable Rate Debt | Variable Rate Debt | Interest Rate Swap 3 | Interest Rate Swap 3 | Interest Rate Swap 4 | Interest Rate Swap 4 | Interest Rate Swap 1 | Interest Rate Swap 1 | Interest Rate Swap 2 | Interest Rate Swap 2 | ||||
Term Loan One | Term Loan One | Term Loan Facility | |||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of derivative instruments | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notes payable | $269,811,000 | $192,491,000 | $60,000,000 | [1] | $60,000,000 | [1] | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap agreement, notional amount | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | 30,000,000 | ' | 50,000,000 | ' | 50,000,000 | ||
Interest rate swap agreement, effective date | ' | ' | ' | ' | ' | 15-Jan-15 | ' | 15-Jul-15 | ' | 14-Aug-15 | ' | 16-Feb-16 | ' | ||
Interest rate swap agreement, termination date | ' | ' | ' | ' | ' | 15-Feb-19 | ' | 15-Feb-19 | ' | 14-Dec-18 | ' | 14-Dec-18 | ' | ||
Interest rate swap, fixed interest rate | ' | ' | ' | ' | ' | 3.73% | ' | 3.91% | ' | 1.79% | ' | 2.01% | ' | ||
Additional amount reclassified from AOCI as an increase to interest expense | 504,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fair value of derivatives in a net liability position | $245,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Loan is secured by six properties. |
Interest_Rate_Contracts_Summar
Interest Rate Contracts - Summary of Interest Rate Swap Agreements (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 19, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Aug. 19, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Feb. 04, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||||||||||||||
Interest Rate Swap 1 | Interest Rate Swap 1 | Interest Rate Swap 1 | Interest Rate Swap 2 | Interest Rate Swap 2 | Interest Rate Swap 2 | Interest Rate Swap 2 | Interest Rate Swap 2 | Interest Rate Swap 3 | Interest Rate Swap 3 | Interest Rate Swap 3 | Interest Rate Swap 3 | Interest Rate Swap 3 | Interest Rate Swap 4 | Interest Rate Swap 4 | Interest Rate Swap 4 | Interest Rate Swap 4 | Interest Rate Swap 4 | ||||||||||||||||
Derivative Financial Instruments, Assets | Derivative Financial Instruments, Assets | Derivative Financial Instruments, Assets | Derivative Financial Instruments, Liabilities | Derivative Financial Instruments, Liabilities | Derivative Financial Instruments, Liabilities | Derivative Financial Instruments, Liabilities | |||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||
Interest rate swap agreement, effective date | ' | 14-Aug-15 | ' | 14-Aug-15 | [1] | 16-Feb-16 | ' | ' | 16-Feb-16 | [1] | ' | 15-Jan-15 | ' | ' | 15-Jan-15 | [2] | ' | 15-Jul-15 | ' | ' | 15-Jul-15 | [2] | ' | ||||||||||
Interest rate swap agreement, termination date | ' | 14-Dec-18 | ' | 14-Dec-18 | [1] | 14-Dec-18 | ' | ' | 14-Dec-18 | [1] | ' | 15-Feb-19 | ' | ' | 15-Feb-19 | [2] | ' | 15-Feb-19 | ' | ' | 15-Feb-19 | [2] | ' | ||||||||||
Interest Strike Rate | ' | ' | ' | 1.79% | [1] | ' | ' | ' | 2.01% | [1] | ' | ' | ' | ' | 1.83% | [2] | ' | ' | ' | ' | 2.01% | [2] | ' | ||||||||||
Interest rate swap, fair value | $396,000 | $209,000 | [1] | ' | ' | $187,000 | [1] | ' | $0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate swap agreement, notional amount | ' | ' | 50,000,000 | ' | ' | 50,000,000 | ' | 0 | [1] | 0 | [1] | ' | 30,000,000 | ' | 0 | [2] | 0 | [2] | ' | 30,000,000 | ' | 0 | [2] | 0 | [2] | ||||||||
Interest rate swap, fair value | $229,000 | ' | ' | ' | ' | ' | ' | ' | ' | $132,000 | [2] | ' | $0 | [2] | ' | ' | $97,000 | [2] | ' | $0 | [2] | ' | ' | ||||||||||
[1] | The fair value of this interest rate swap is included in the line item bOther assetsb on the accompanying consolidated balance sheets. | ||||||||||||||||||||||||||||||||
[2] | The fair value of this interest rate swap is included in the line item bAccounts payable, accrued expenses and other liabilitiesb on the accompanying consolidated balance sheets. |
Interest_Rate_Contracts_Impact
Interest Rate Contracts - Impact of Derivative Instruments on Consolidated and Combined Statement of Operations - (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | |
Predecessor | Predecessor | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' |
Amount of gain recognized in AOCI on derivatives (effective portion) | ' | $626,000 | $167,000 | ' | ' |
Amount of gain (loss) reclassified from AOCI into earnings under "Interest expense" (effective portion) | 0 | 0 | 0 | 0 | 0 |
Amount of gain (loss) recognized in earnings under "Interest expense" (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | 0 |
Interest Rate Swaps Not in Cash Flow Hedging Relationships: | ' | ' | ' | ' | ' |
Amount of realized and unrealized gain recognized in earnings under "Gain on mark-to-market of interest rate swaps" | ' | ' | ' | ' | $49,000 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Measures at Fair Value on a Recurring Basis by Level within Fair Value Hierarchy (Detail) (USD $) | Sep. 30, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' |
Interest rate swap, fair value | $396,000 |
Interest Rate Swap Liabilities | -229,000 |
Significant Other Observable Inputs (Level 2) | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' |
Interest rate swap, fair value | 396,000 |
Interest Rate Swap Liabilities | ($229,000) |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Value and Estimated Fair Value of Notes Payable (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Notes payable, fair value | $269,754 | $192,492 |
Notes payable | 269,811 | 192,491 |
Quoted Price in Active Markets for Identical Assets and Liabilities (Level 1) | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Notes payable, fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Notes payable, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Notes payable, fair value | $269,754 | $192,492 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Chief Executive Officer, USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 2 Months Ended | 7 Months Ended |
In Thousands, unless otherwise specified | Jul. 23, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 23, 2013 |
Predecessor | Predecessor | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Revenue from management, leasing and development services | $8 | $46 | $162 | $30 | $87 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Feb. 25, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Accommodation | $32,100,000 | ' |
Estimated remedian costs | ' | 1,300,000 |
Holdback Escrow Seller Funded | ' | 1,300,000 |
Holdback escrow buyer funded | ' | 100,000 |
Maximum seller liability remedian costs | ' | 1,300,000 |
Contingent liability | ' | 1,200,000 |
Indemnification asset | ' | 1,200,000 |
Ground lease, expiration date | 1-Jun-62 | ' |
Commitments for tenant improvement and construction work | $1,000,000 | ' |
Commitment_and_Contingencies_F
Commitment and Contingencies- Future Minimum Commitment (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Office Lease | ' |
Operating Leased Assets [Line Items] | ' |
October 1, 2014 - December 31, 2014 | $100 |
2015 | 434 |
2016 | 520 |
2017 | 542 |
2018 | 559 |
Thereafter | 337 |
Total | 2,492 |
Ground Rent | ' |
Operating Leased Assets [Line Items] | ' |
October 1, 2014 - December 31, 2014 | 36 |
2015 | 144 |
2016 | 144 |
2017 | 144 |
2018 | 144 |
Thereafter | 6,252 |
Total | $6,864 |
Investment_in_Unconsolidated_R2
Investment in Unconsolidated Real Estate - Additional Information (Detail) (USD $) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 7 Months Ended | 9 Months Ended | 1 Months Ended | ||
Jul. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 24, 2013 | Sep. 30, 2014 | Jul. 24, 2013 | Jul. 23, 2013 | |
Property | Property | Predecessor | Operating Partnership | Mission Oaks Boulevard | Roselle Street | Roselle Street | |||
Property | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership Interest | ' | ' | ' | ' | ' | ' | 15.00% | ' | 70.00% |
Number of real estate properties | ' | ' | 86 | 86 | ' | ' | 3 | ' | ' |
Carrying value of JV investment gross basis adjustment | ' | ' | ' | ' | ' | ' | $2,800,000 | ' | ' |
Issuance of Operating Partnership Units | ' | ' | ' | ' | ' | 2,828 | ' | ' | ' |
Acquired tenancy-in-common interest not previously owned | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' |
Management, leasing and development fees payable | 24,000 | 86,000 | 103,000 | 291,000 | 218,000 | ' | ' | ' | ' |
Management, leasing and development fees | $0 | $222,000 | $97,000 | $366,000 | $207,000 | ' | ' | ' | ' |
Investment_in_Unconsolidated_R3
Investment in Unconsolidated Real Estate - Combined Financial Information of Predecessor's Equity Method Investment Properties (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |||||
Predecessor | Predecessor | Predecessor | Predecessor | |||||||||
Schedule Of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Assets | ' | ' | ' | ' | ' | $63,054 | $61,422 | |||||
Liabilities | ' | ' | ' | ' | ' | -42,834 | -42,475 | |||||
Partners'/members' equity | ' | ' | ' | ' | ' | 20,220 | 18,947 | |||||
Revenues | 5,946 | [1] | 2,123 | [1] | 5,856 | [1] | 2,270 | [2] | 6,516 | [2] | ' | ' |
Expenses | -5,001 | [1] | -1,920 | [1] | -5,283 | [1] | -1,928 | [2] | -7,296 | [2] | ' | ' |
Net income (loss) | $945 | [1] | $203 | [1] | $573 | [1] | $342 | [2] | ($780) | [2] | ' | ' |
[1] | Includes summarized financial information for our equity method investment property located at 3001-3233 Mission Oaks Boulevard. | |||||||||||
[2] | Includes summarized financial information for properties located at 3001-3233 Mission Oaks Boulevard and 10439-10477 Roselle St. |
Discontinued_Operations_and_Pr2
Discontinued Operations and Properties Held for Sale - Summary of the Properties Sold (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 7 Months Ended | 9 Months Ended | |||||||||||
Aug. 29, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||||
sqft | Predecessor | 2014 Dispositions | 2014 Dispositions | 2013 Dispositions | 2013 Dispositions | 2013 Dispositions | 2013 Dispositions | 2013 Dispositions | ||||||||
Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | ||||||||||
Park Center Drive | N. Madera Road | Worth Street | E. Williams Drive | Glenoaks Blvd | W. Erie Dr. & S. Fair Lane | Knollwood Circle | ||||||||||
sqft | sqft | sqft | sqft | sqft | sqft | sqft | ||||||||||
Property Dispositions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Location | ' | ' | ' | ' | 'Vista, CA | 'Simi Valley, CA | 'Los Angeles, CA | 'Oxnard, CA | 'Los Angeles, CA | 'Tempe, AZ | 'Anaheim, CA | |||||
Date of disposition | ' | ' | 29-Aug-14 | ' | 29-Jan-14 | 13-Mar-14 | 31-Jan-13 | 4-Apr-13 | 10-May-13 | 28-May-13 | 14-Jun-13 | |||||
Rentable square feet | 37,992 | ' | ' | ' | 124,997 | 63,305 | 79,370 | 161,682 | 14,700 | 83,385 | 25,162 | |||||
Sales price | $1,822,000 | ' | ' | ' | $10,103,000 | $4,350,000 | $4,100,000 | $8,542,000 | $1,727,000 | $5,003,000 | $2,768,000 | |||||
Debt Satisfied | ' | ' | ' | ' | ' | ' | 2,500,000 | [1] | 2,993,000 | [1] | 1,625,000 | [1] | 3,531,000 | [1] | 2,630,000 | [1] |
Gain on sale of real estate | ' | $0 | $2,125,000 | $4,989,000 | $2,262,000 | ($137,000) | $2,410,000 | $415,000 | $234,000 | $1,015,000 | $915,000 | |||||
[1] | Amount represents the principal paid back to the lender to release the property from a larger pool of properties serving as collateral for the respective portfolio loan. |
Discontinued_Operations_and_Pr3
Discontinued Operations and Properties Held for Sale - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
Aug. 29, 2014 | Sep. 30, 2014 | |
sqft | ||
Investment In Real Estate [Abstract] | ' | ' |
Date of disposition | ' | 29-Aug-14 |
Rentable square feet | 37,992 | ' |
Sales price | $1,822,000 | ' |
Loss on sale of property | $150,000 | ' |
Discontinued_Operations_and_Pr4
Discontinued Operations and Properties Held for Sale - Results of Operations (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 7 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 23, 2013 | Jul. 23, 2013 | |
Predecessor | Predecessor | ||||
Disclosure Investment In Real Estate Discontinued Operations Detail [Line Items] | ' | ' | ' | ' | ' |
Revenues | $193,000 | $0 | $85,000 | $87,000 | $604,000 |
Operating expenses | -36,000 | 0 | -57,000 | -10,000 | -312,000 |
Interest expense | ' | 0 | ' | -37,000 | -325,000 |
Depreciation and amortization expense | -37,000 | 0 | -7,000 | -14,000 | -776,000 |
Loss on extinguishment of debt | ' | 0 | ' | -17,000 | -267,000 |
Gain on sale of real estate | ' | 0 | 2,125,000 | ' | 4,989,000 |
INCOME FROM DISCONTINUED OPERATIONS | $120,000 | $0 | $2,146,000 | $9,000 | $3,913,000 |
Discontinued_Operations_and_Pr5
Discontinued Operations and Properties Held for Sale - Major Class of Assets and Liabilities Associated With Real Estate Held for Sale (Detail) (USD $) | Dec. 31, 2013 |
Discontinued Operations And Disposal Groups [Abstract] | ' |
Investment in real estate, net | $12,861,000 |
Other | 1,091,000 |
Assets associated with real estate held for sale | 13,952,000 |
Mortgage loan | 0 |
Accounts payable and other liabilities | 596,000 |
Liabilities associated with real estate held for sale | $596,000 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended |
Aug. 19, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of common stock, shares | 17,250,000 | ' | ' | ' |
Common stock share price | $13.50 | ' | ' | ' |
Issuance of common stock, net | $221,800,000 | $208,280,000 | ' | $221,773,000 |
Underwriting discount and offering costs | 11,100,000 | ' | ' | 11,326,000 |
Net proceeds from public offering used in exchange for common units of partnership interests in OP Units | 17,250,000 | ' | ' | ' |
Conversion of common units to common stock, shares | ' | ' | 363,232 | 363,232 |
Conversion of common units to common stock | ' | ' | ' | 4,100,000 |
2013 Incentive Award Plan | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock and/or LTIP units available for issuance | ' | ' | 2,272,689 | 2,272,689 |
Common stock, shares reserved for future issuance | ' | ' | 2,040,528 | 2,040,528 |
Recognized equity compensation expense related to restricted common stock | ' | 382,000 | 340,000 | 791,000 |
Capitalized compensation expense related to restricted common stock | ' | 14,000 | 36,000 | 106,000 |
Forfeiture rate for non-vested restricted stock | ' | ' | 5.30% | 5.30% |
Unrecognized compensation expense related to non-vested shares | ' | ' | 1,800,000 | 1,800,000 |
Employee service share based compensation nonvested awards total compensation cost not yet capitalized | ' | ' | ' | 200,000 |
Weighted average remaining vesting period | ' | ' | ' | '23 months |
Noncontrolling Interest | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Conversion of common units to common stock | ' | ' | ' | ($4,140,000) |
Operating Partnership | Noncontrolling Interest | Equity | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' |
Issuance of operating partnership units | ' | ' | 2,646,027 | 2,646,027 |
Noncontrolling interest percentage ownership in Operating Partnership | ' | ' | 5.80% | 5.80% |
Equity_Schedule_of_Unvested_Re
Equity - Schedule of Unvested Restricted Stock Activity (Detail) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | ||
Equity [Abstract] | ' | ' | |
Balance at January 1, 2014 | 140,468 | 920,734 | |
Granted | 121,357 | ' | |
Forfeited | -29,664 | ' | |
Vested | -34,020 | [1] | ' |
Balance at September 30, 2014 | 198,141 | 920,734 | |
[1] | 6,928 shares of the Companybs common stock were tendered in accordance with the terms of the Plan to satisfy minimum tax withholding requirements related to the shares of restricted common stock that have vested. We accept the return of shares at the current quoted closing share price of the Company's common stock on the NYSE to satisfy tax obligations. |
Equity_Schedule_of_Unvested_Re1
Equity - Schedule of Unvested Restricted Stock Activity (Parenthetical) (Detail) (Common Stock) | 9 Months Ended |
Sep. 30, 2014 | |
Common Stock | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Shares tendered for tax withholding requirements | 6,928 |
Equity_Vesting_Schedule_of_the
Equity - Vesting Schedule of the Unvested Shares of Restricted Stock Outstanding (Detail) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 198,141 | 140,468 | 920,734 |
October 1, 2014 - December 31, 2014 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 0 | ' | ' |
2015 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 72,640 | ' | ' |
2016 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 56,542 | ' | ' |
2017 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 53,713 | ' | ' |
2018 | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Non-vested shares | 15,246 | ' | ' |
Equity_Summary_of_the_Componen
Equity - Summary of the Components of Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Equity [Abstract] | ' | ' |
Balance at January 1, 2014 | ' | ' |
Other comprehensive income before reclassifications | ' | 167,000 |
Amounts reclassified from accumulated other comprehensive income to interest expense | ' | 0 |
Net current period other comprehensive income | 626,000 | 167,000 |
Less other comprehensive income attributable to noncontrolling interests | ' | -9,000 |
Other comprehensive income attributable to common stockholders | ' | 158,000 |
Balance at September 30, 2014 | $158,000 | $158,000 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 2 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Numerator: | ' | ' | ' |
Net income (loss) from continuing operations | $175,000 | ($679,000) | ($1,315,000) |
Net (income) loss from continuing operations attributable to noncontrolling interests | -23,000 | 80,000 | 127,000 |
Income from continuing operations attributable to participating securities | -5,000 | -24,000 | -64,000 |
Income (loss) from continuing operations attributable to Rexford Industrial Realty, Inc. | 147,000 | -623,000 | -1,252,000 |
Income from discontinued operations | 120,000 | 0 | 2,146,000 |
Income from discontinued operations attributable to noncontrolling interests | 16,000 | ' | 207,000 |
Income from discontinued operations attributable to participating securities | -4,000 | ' | ' |
Income from discontinued operations attributable to Rexford Industrial Realty, Inc. | 100,000 | ' | 1,939,000 |
Net income (loss) attributable to Rexford Industrial Realty, Inc. and participating securities | 256,000 | -599,000 | 751,000 |
Net income attributable to participating securities | -9,000 | -24,000 | -64,000 |
Net income (loss) attributable to Rexford Industrial Realty, Inc. | $247,000 | ($623,000) | $687,000 |
Denominator: | ' | ' | ' |
Weighted average shares of common stock outstanding - basic and diluted | 24,574,432 | 33,527,183 | 28,151,818 |
Earnings per share - Basic and Diluted: | ' | ' | ' |
Net income (loss) from continuing operations available to common stockholders | $0.01 | ($0.02) | ($0.04) |
Net income from discontinued operations available to common stockholders | ' | $0 | $0.07 |
Net income (loss) available to common stockholders | $0.01 | ($0.02) | $0.02 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' |
Unvested resticted stock | 198,141 | 140,468 | 920,734 |
Predecessor_Equity_Additional_
Predecessor Equity - Additional Information (Detail) (USD $) | 1 Months Ended | 2 Months Ended | 9 Months Ended | 1 Months Ended | 2 Months Ended | 7 Months Ended | ||
Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jul. 23, 2013 | Dec. 31, 2012 | Jul. 23, 2013 | Jul. 23, 2013 | Jul. 23, 2013 | |
Predecessor | Predecessor | Predecessor | RIF I - Walnut, LLC | RIF IV - Burbank, LLC | ||||
Investor | Investor | |||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest percentage ownership in Operating Partnership | ' | ' | ' | ' | ' | ' | 27.76% | 3.23% |
Number of investors included in noncontrolling interest | ' | ' | ' | ' | ' | ' | 10 | 1 |
Equity interest granted to employees | ' | ' | ' | ' | 9.00% | ' | ' | ' |
Additional equity interest granted | 2.00% | ' | ' | ' | ' | ' | ' | ' |
Fair value of equity interest | ' | ' | $1,000,000 | ' | ' | ' | ' | ' |
Performance-based equity interest, vesting period | ' | ' | '7 years | ' | ' | ' | ' | ' |
Equity based compensation expense | ' | $382,000 | $791,000 | $899,000 | ' | $985,000 | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 9 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 01, 2014 | Oct. 23, 2014 | Oct. 23, 2014 | Oct. 23, 2014 |
First Anniversary from Grant Date | Second Anniversary from Grant Date | Third Anniversary from Grant Date | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||
Frankel | Schwimmer | Restricted Stock | ||||||
Messrs | ||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Amount used to repay secured loan | $2.50 | ' | ' | ' | $5 | ' | ' | ' |
Maturity date | 1-Jan-15 | ' | ' | ' | ' | ' | ' | ' |
Granted | 121,357 | ' | ' | ' | ' | 59,282 | 59,282 | 59,282 |
Percentage of shares vested | ' | 25.00% | 25.00% | 50.00% | ' | ' | ' | ' |